Loading...
Agenda Item - 2023-12-05 - Number 8.1 - Ordinance 2928, Amending LOC Chapter 50 Establishing Psilocybin Time, Place, and Manner Land Use Regulations (LU 23-0001) 8.1 D�t'p` E � COUNCIL REPORT r 11 o OREGO� Subject: Ordinance 2928, Psilocybin time, place and manner regulations, LU 23-0001 Meeting Date: December 5, 2023 Staff Member: Jessica Numanoglu, Director Report Date: November 22, 2023 Department: Community Development Action Required Advisory Board/Commission Recommendation ❑X Motion ❑X Approval ❑ Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation based on Council discussion on October 17, 2023: Adopt Ord. 2928 (Exhibit A-1.2), which establishes time, place, and manner (TPM) regulations for psilocybin facilities, and leave in place Ord. 2903, which prohibits the Oregon Health Authority (OHA) from licensing psilocybin facilities in Lake Oswego and automatically refers the matter to the voters at the November 2024 election. The effect of this option would be to retain the temporary prohibition of psilocybin facilities in the City and let the voters decide at the November 2024 election if the prohibition should be repealed. If Ord. 2903 is repealed by voters, City TPM regulations would be in effect and would apply in addition to State statute and OHA rules. Recommended Language for Motion: Move to enact Ordinance 2928 and adopt findings. Project/ Issue Relates To: City Council enacted Ordinance 2903 in December 2022, temporarily prohibiting psilocybin facilities in the City. Council also directed the Planning Commission and staff to develop local TPM restrictions that go beyond those in statute or administrative rule (Oregon Health Authority rules; OAR Division 333-333). Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 ISSUE BEFORE COUNCIL Consider adoption of Ordinance 2928, the Psilocybin TPM regulations recommended by the Planning Commission, with certain provisions removed as directed by the Council at its October 17 meeting. If Council approves Ordinance 2928 and does not repeal Ordinance 2903—the temporary prohibition on psilocybin facilities—the question of whether to repeal the temporary prohibition will be included on the ballot at the November 5, 2024 election1. EXECUTIVE SUMMARY The proposed text amendments to the Lake Oswego Community Development Code (CDC) (LOC Chapter 50) are for the purpose of regulating psilocybin facilities, which are currently not addressed in the Code. If adopted, the regulations would be in addition to those already imposed by state law and OHA rules. ORS 475A.530 authorizes cities to impose certain types of "reasonable regulations" for psilocybin facilities beyond those imposed by state law. The Planning Commission ("Commission") recommendation to the Council was the adoption of two ordinances establishing TPM restrictions: one to address land use impacts (Ord. 2928), and one to address non-land use operating procedures that are related to public safety generally (Ord. 2933). The Council considered the recommendation at a public hearing in July 2023, and tentatively voted to approve the Commission's recommendation. The Council also voted to direct staff to prepare an ordinance repealing Ordinance 2903, the temporary prohibition on psilocybin facilities in the City. Prior to scheduling a final vote on the July 2023 package of ordinances, the Mayor consulted with the full Council on October 17. At that meeting, Council unanimously approved a motion directing staff to bring forward an alternative to the ordinance package tentatively approved by the Council on July 18.The motion directed staff to prepare revisions to Ord. 2928 for consideration at its December 5 meeting. The Council also directed staff to not bring forth an ordinance repealing Ord. 2903.2 Ordinance 2928, with revisions, is included as Exhibit A-1.2. BACKGROUND Measure 1093, approved by voters in 2020, legalized and regulated the manufacture, sale and administration of psilocybin in Oregon. OHA began taking license applications on January 2, 2023; however, cities are permitted to opt-out of licenses being issued for manufacturers and service centers, subject to the requirement that any local ordinance banning psilocybin facilities is referred to the voters at the next general statewide election. 1 Per Measure 109/ORS Ch.475A.718(2), before local TPM regulations can become effective,any previous ban must be repealed either by Council or the voters at the next statewide election which in this case would be November 5, 2024. 2 Keeping Ordinance 2903 in place will have the effect of referring the matter of whether to remove the temporary prohibition on psilocybin facilities to the voters at the November 2024 election. 3 Now codified in ORS Chapter 475A. Respect. Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 On December 6, 2022, the City Council adopted Ordinance 2903 temporarily prohibiting psilocybin facilities in the City, subject to Section 3's Referral provision: "unless sooner repealed by subsequent ordinance by the City Council, this Ordinance shall be referred to the electors ... at the next statewide general election on Tuesday, November 5, 2024." The Council also directed the Planning Commission and staff to consider whether local TPM restrictions that go beyond those in statute (ORS Ch. 475A) and rules (OAR Ch. 333-333) should be adopted in the event the prohibition is repealed. The Planning Commission held three public work sessions on January 23, February 27, and April 24, 2023, and held a public hearing on June 12, 2023, voting 4:1 to recommend approval of Ordinance 2928, adopting Psilocybin TPM land use regulations as reflected in the Findings, Conclusion and Order for LU 23-0001 (Exhibit B-1).4 The Commission also voted 4:1 to recommend approval of Ordinance 2933, which contains additional non-land use regulations pertaining to psilocybin facilities.5 On July 18, 2023, the City Council held a public hearing and tentatively voted 4:3 to adopt Ordinances 2928 and 2933 as recommended by the Commission. The Council also voted 5:16 to direct staff to return with a draft ordinance repealing Ordinance 2903, the temporary prohibition on psilocybin facilities in the City. The final vote on Council's tentative decisions was initially scheduled for August 1, 2023, but was removed from the agenda because not all of the Councilors were able to attend that meeting in person. The item was not discussed again until October 17, 2023. DISCUSSION During Council business at the October 17 meeting, the Mayor noted that the Council had not yet made a final decision on the psilocybin ordinances recommended by the Commission. He acknowledged that psilocybin is a challenging community issue and that a slim majority of the Council had voted in July to tentatively approve the Commission's recommendation. He suggested that the Council consider an alternative path forward in an effort to garner support from a stronger majority of the Council, and put forward a motion that the Council give 4 Measure 109/ORS 475A.530 authorize cities to adopt time, manner and place restrictions through additional local ordinances.That statutory authorization does not categorize all restrictions as"land use regulations."Some of these restrictions would not be"land use regulations" under ORS 197.015(11)and are not a "Legislative Decision" under the Community Development Code because they do not amend "the policies, procedures,standards,criteria or map designations of the Comprehensive Plan,and this Community Development Code." LOC 50.07.003.16.a.i. There are different procedural effects as to whether a restriction is a land use regulation or not, i.e., land use regulations require written findings and appeal is to the Land Use Board of Appeals. 5 Four Commissioners voted to recommend each proposed form of ordinance to the Council by a vote upon the entire package of proposed regulations within the proposed ordinance.Thus,while a specific Commissioner that voted in the affirmative may not have been in favor of each and every regulation within the package,there was a majority of Commissioners in favor of each regulation and each Commissioner voting in the affirmative was agreeable to recommending approval of the package.The minutes reflect each Commissioner's discussion regarding each regulation Commissioner Rigby voted "No"on each ordinance,stating that he found that provisions in state law and OHA rules are sufficient and no additional local regulations were necessary. 6 Councilor Corrigan,who was participating remotely at the July 18 Council meeting,was unable to vote on this motion due to connectivity issues. Respect. Excel'erce. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 direction to staff to return with a different ordinance package for the Council's consideration at its December 5 meeting, as follows: • Bring forth Ord. 2928 as recommended by the Commission, with two modifications ("removed provisions"): o Do not require a buffer between psilocybin facilities or from tenant spaces occupied by businesses with a liquor license; and o Do not prohibit psilocybin facilities from locating in the same building as health care facilities as defined by ORS 442.015(12)(a). These revisions would address concerns by some councilors that that the collective locational restrictions for psilocybin facilities as recommended by the Commission would effectively ban or severely limit the areas where facilities could be located; • Do not bring forth Ord. 2933, non-land use psilocybin regulations, for adoption. This addresses concerns by some that the proposed regulations—which require release of clients to a sober adult at least 21 years old, restricts possession of weapons, and requires liability insurance—could invite legal challenges, would be difficult to enforce, and could be adopted at a later time if circumstances warrant; and • Do not bring forth an ordinance to repeal the temporary prohibition on psilocybin facilities in the City (Ord. 2903). This would retain the temporary prohibition and let voters decide whether to allow psilocybin facilities in the City at the November 5, 2024, election. If voters do not repeal the temporary ban, psilocybin facilities will not be allowed in the City. If voters repeal the ban, Ord. 2928 would be in effect and would ensure local TPM regulations apply in addition to State statute and OHA rules. The motion passed 6:0. As directed by the Council, Ord. 2928, with the removed provisions above, is included in Exhibit A-1.2. This version of the ordinance retains the original staff and Commission commentary for background and shows the removed provisions in track changes for ease of review. For more background information, including individual Commissioner positions on each provision, alternatives considered by the Planning Commission, and discussion of compliance of the proposed code amendments with all applicable regulations, please refer to the July 7, 2023 Council Report; Exhibit D-3 Planning Commission Staff Memo, April 13, 2023; and, Exhibit D-4 Planning Commission Staff Report, May 17, 2023. Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 ALTERNATIVES OR ADVANTAGES AND DISADVANTAGES Alternatives include: Alternative 1 -Adopt Ord. 2928 establishing TPM Regulations and Repeal Ordinance 2903 which prohibits psilocybin facilities: The effect of this alternative would be to repeal the temporary prohibition on psilocybin facilities and allow the use in the City, subject to the TPM regulations in Ord. 2928, state law, and OHA rules. There would be no psilocybin measure on the ballot at the November 2024 election because Council would have repealed the prohibition on psilocybin facilities. Alternative 2 - Decline to adopt Ord. 2928 and Leave in Place Ordinance 2903 which prohibits psilocybin facilities: The effect of this option would retain the temporary prohibition on psilocybin facilities until the November 2024 election. If voters repeal the prohibition, psilocybin facilities would be allowed without any additional City TPM regulations (State statute and OHA rules would still apply). Alternative 3 -Adopt regulations that are more or less restrictive than the proposal: If the City adopts regulations that are overly restrictive to the extent that they are considered 'unreasonable', those regulation(s) could be found outside of the City's adoption authority under ORS 475A.530(1,2). FISCAL IMPACT None. RECOMMENDATION Approval of Ordinance 2928, with the removed provisions, for LU 23-0001. EXHIBITS A. Draft Ordinance A-1.2 Draft Ordinance 2928, December 5, 2023 (supersedes version dated June 22, 2023) Attachment A: City Council Findings and Conclusions, December 5, 2023 Attachment B: Proposed Amendments to Community Development Code, December 5, 2023 (supersedes version dated June 22, 2023) (with staff and Planning Commission findings) B. Findings, Conclusion and Order B-1 Planning Commission Findings, Conclusion and Order, June 26, 2023 Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 C. Minutes C-1 Minutes, January 23, 2023 C-2 Minutes, February 27, 2023 C-3 Minutes, April 24, 2023 C-4 Minutes, June 12, 2023 C-5 Minutes (Draft), June 26, 2023 C. Staff Reports D-1 Staff Memo, dated January 6, 2023 for Work Session-1 on January 23, 2023 D-2 Staff Memo, dated February 15, 2023 for Work Session-2 on February 27, 2023 D-3 Staff Memo, dated April 13, 2023 for Work Session-3 on April 24, 2023 D-4 Staff Report, dated May 17, 2023 for Public Hearing on June 12, 2023 E. Graphics/Plans E-1 Map of 1,000 ft. Buffers from Schools and Licensed Child Care Facilities F. Written Materials F-1 FAQ Sheet with Answers Updated May 15, 2023 G. Letters G-1 Email from Chair Helen Leek May 30, 2023 G-2 Email from Metro (Glen Hamburg)July 6, 2023 BACKGROUND MATERIAL AND REFERENCES Staff reports, staff memos and other materials that were prepared for prior Planning Commission work sessions can be viewed at the webpage for LU 23-0001. Use the link below to visit the City's "Project" page. In the "Search" box enter LU 23-0001, then press "Submit": https://www.ci.oswego.orus/all-projects Respect. Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT A-1 ORDINANCE 2928 AN ORDINANCE OF THE CITY OF LAKE OSWEGO AMENDING LOC 50.03.002, 50.03.003,50.03.004, and 50.10.003 OF CHAPTER 50 (COMMUNITY DEVELOPMENT CODE) ESTABLISHING PSILOCYBIN TIME, PLACE AND MANNER LAND USE REGULATIONS;AND ADOPTING FINDINGS(LU 23-0001). WHEREAS, Measure 109 legalized and regulates the manufacture, sale, and administration of Psilocybin in Oregon, and authorizes cities to impose certain types of"reasonable regulations" beyond those imposed by state law; and WHEREAS, the City Council enacted Ordinance 2903 temporarily prohibiting Psilocybin facilities and the temporary ban must be referred to the City's voters at the next statewide general election (November 5, 2024) unless the City Council adopts an ordinance repealing the prohibition before the election; and WHEREAS, the City Council has directed the Planning Commission to recommend reasonable Psilocybin "Time, Place and Manner" regulations in Lake Oswego; and WHEREAS, the proposed Psilocybin Time, Place, and Manner regulations are in addition to those already imposed by state law (2020 Measure 109, now codified in ORS 475A.200 - .586) and rules (OAR Division 333-333), and are necessary to protect public health, safety, and welfare; and WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the manner required by law; and WHEREAS, a public hearing before the Planning Commission was held on June 12, 2023, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, the Planning Commission has recommended to the Council the adoption of certain time, manner and place land use restrictions as set forth in its Findings, Conclusions and Order for LU 23-0001; and WHEREAS, a public hearing on LU 23-0001 was held before the City Council of the City of Lake Oswego on July 18, 2023, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, • The manufacture of psilocybin and the administration of psilocybin to the public through service centers is a new use in Oregon, having been authorized by initiative measure in 2020; and • To date, the only other state that has authorized the administration of psilocybin to the public is Colorado; however, Colorado has not yet issued any licenses for the manufacture of psilocybin or for administration of psilocybin in mental healthcare and Ordinance 2928 PAGE 1 OF 3 therapeutic settings; and • The Oregon Health Authority issued a license for the first service center on May 5, 2023; and • The impacts of psilocybin manufacturers and service centers cannot yet be fully quantified or analyzed, as to whether more -- or less --time, place and manner restrictions would be appropriate for their compatibility to surrounding businesses and nearby residences; and • Some cities and counties in Oregon are not imposing any time, place and manner restrictions above those promulgated by the Oregon Health Authority, while other cities and counties are imposing some additional restrictions, but to-date only a few licenses have been issued at this time; and • Therefore, the Council finds it is appropriate to state an intention to review these time, place and manner restrictions three years from the effective date of this ordinance, provided however, this statement of intent does not preclude the Council from reviewing these restrictions sooner—or later--than three years. The City of Lake Oswego ordains as follows: Section 1. The City Council hereby adopts the Findings and Conclusions (LU 23-0001), attached as Attachment A. Section 2. The Lake Oswego Code is hereby amended by adding the new text shown in double underlined type and deleting text shown in strikcthrough type in Attachment B, dated December 5, 2023. Section 3. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Enacted at the meeting of the Lake Oswego City Council of the City of Lake Oswego held on the 5th day of December, 2023. AYES: NOES: ABSENT: ABSTAIN: EXCUSED: Ordinance 2928 PAGE 2 OF 3 Joseph M. Buck, Mayor Dated: ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Ordinance 2928 PAGE 3 OF 3 ATTACHMENT A 1 BEFORE THE CITY COUNCIL 2 OF THE CITY OF LAKE OSWEGO 3 A REQUEST FOR LEGISLATIVE TEXT LU 23-0001 AMENDMENTS TO THE COMMUNITY CITY OF LAKE OSWEGO 4 DEVELOPMENT CODE FOR REGULATING PSILOCYBIN FACILITIES. FINDINGS AND CONCLUSIONS 5 6 NATURE OF PROCEEDINGS 7 This matter came before the Lake Oswego City Council on the recommendation of the 8 Planning Commission for legislative amendments to the Community Development Code (CDC) 9 (LOC 50.03.002, 50.03.003, 50.03.004, and 50.10.003) for the purpose of establishing psilocybin 10 time, place and manner land use regulations. 11 HEARINGS 12 The Planning Commission ("Commission") held a public hearing and considered this 13 application at its meeting on June 12, 2023. The Commission adopted its Findings, Conclusion 14 and Order recommending approval of LU 23-0001 on June 26, 2023. 15 The City Council held a public hearing and considered the Commission's 16 recommendation on July 18, 2023. 17 CRITERIA AND STANDARDS 18 A. City of Lake Oswego Comprehensive Plan 19 20 Land Use Planning 21 Policies A-1, B-2, C-1 22 Inspiring Spaces and Places Goal 1 - Policy 1.b 23 24 Economic Vitality Policy B-1 25 Community Health and Public Safety 26 Public Safety, Police and Fire Protection Section, Policies 1-4 ATTACHMENT A/PAGE 1— FINDINGS AND CONCLUSIONS (LU 23-0001) 1 B. City of Lake Oswego Community Development Code 2 LOC 50.07.003.16 Legislative Decisions (includes Required Notice to DLCD; Planning Commission Recommendation Required; and City 3 Council Review and Decision) 4 C. Metro Urban Growth Management Functional Plan 5 Title 4: Protection of Employment Areas, Metro Code Section 3.07.440 6 FINDINGS AND REASONS 7 The City Council incorporates the Commission Staff Report dated May 17, 2023 (Exhibit 8 D-4)for LU 23-0001, with all exhibits, the Findings, Conclusions and Order approved on June 26, 9 2023 (Exhibit B-1), and the staff Council Report dated July 7, 2023, as support for the Council's 10 decision, supplemented by the following further findings and conclusions, except as to those 11 proposed sections that the Council has declined to adopt, which findings are set forth below. In 12 the event of any inconsistency between the Council's supplemental findings and conclusion and 13 the incorporated materials, the supplemental findings and conclusions control. Following are 14 the supplemental findings and conclusions of this Council. 15 The Council finds that, as proposed, the collective regulations in the Commission's 16 proposed time, place and manner restrictions recommended in LU 23-0001 for Ordinance 2928 17 would effectively prohibit or severely limit the locations where psilocybin facilities could be 18 sited. For these reasons, the Council finds that the Commission's recommendations for 19 Ordinance 2928 should be revised as follows (the "removed provisions"): 20 • Do not require a buffer between psilocybin facilities or from tenant spaces 21 occupied by businesses with a liquor license; and 22 • Do not prohibit psilocybin facilities from locating in the same building as health 23 care facilities as defined by ORS 442.015(12)(a). 24 The Council finds that the revisions to the Commission's recommendation continue to 25 comply with all applicable Comprehensive Plan policies because the purpose of the applicable 26 policies is to provide for compatible uses. The Council finds: • Psilocybin manufacturing and service center uses are new for all jurisdictions in ATTACHMENT A/PAGE 2— FINDINGS AND CONCLUSIONS (LU 23-0001) 1 Oregon and the potential impacts are unknown at this time; 2 • The Measure 109 provisions (now codified as ORS 475A.200- .586) and Oregon 3 Health Authority rules (OAR Division 333-333) regulate the broad spectrum of 4 the manufacturing and administration of psilocybin, and have time, place and 5 manner restrictions to be applied statewide; 6 • The Oregon Health Authority has issued few licenses for psilocybin facilities since 7 it was eligible to do so beginning on January 1, 2023; and 8 • The Commission forecasted the theoretical impacts of the use as best they could 9 based on the information and testimony presented to them, and the 10 Commission's recommendations regarding the removed provisions were 11 necessarily based on conjecture rather than evidence of incompatibility. 12 The Council finds that it can always reconsider--either before the November 2024 13 election or later-- if evidence from other Oregon jurisdictions show that there is, in fact, a basis 14 to find incompatibility to warrant adoption of the removed provisions from the Commission's 15 recommendations. 16 Until some evidence of incompatibility is presented, recognizing the Council can impose 17 restrictions later if such evidence shows incompatibility, the Council finds that the proposed 18 Ordinance 2928, excluding the removed provisions, would reasonably allow potential psilocybin 19 providers to plan for operation (if the voters repeal the ban). Given the barriers to opening a 20 business already (cost and other restrictions), the extensive requirements of ORS 475A.200 21 - .586 and the Oregon Health Authority rules (OAR Division 333-333), and the remaining 22 recommended provisions of Ordinance 2928 (pending evidence from other jurisdictions), the 23 potential for land use incompatibility is low. The Council finds that the removed provisions— 24 and any other potential restrictions—should be considered at a later date when evidence from 25 other jurisdictions is received, so that any additional restrictions are based on evidence of 26 actual impacts and can be tailored to address these impacts, rather than based on speculation of impacts. ATTACHMENT A/PAGE 3— FINDINGS AND CONCLUSIONS (LU 23-0001) 1 Based upon the above findings, the Council further finds that the existing 2 temporary ban on psilocybin facilities (Ordinance 2903) should remain in effect until Ordinance 3 2928, as revised above, is referred to a citywide vote at the next general election on November 4 5, 2024, as required by Measure 109/ORS Ch. 475A.718(2). 5 CONCLUSION 6 The Council concludes that the proposed revised Ordinance 2928, with Attachment B, 7 dated December 5, 2023, complies with all applicable criteria and should be enacted. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTACHMENT A/PAGE 4— FINDINGS AND CONCLUSIONS (LU 23-0001) ATTACHMENT B Ordinance 2928 Psilocybin Time, Place, and Manner- Proposed Community Development Code Amendments The following text is from the Lake Oswego Community Development Code (LOC 50). Proposed additions are shown in bold double-underline text. Removed text is shown with strikeouts. The boxes beneath the code provisions contain explanatory text and issues that the Planning Commission has raised for public input and discussion. {Note: non land use psilocybin time, manner and place regulations will be the subject of a separate ordinance adoption.) // 3. COMMERCIAL, MIXED USE, INDUSTRIAL, AND SPECIAL PURPOSE DISTRICTS USE TABLE 50.03.002 USE TABLE TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P= Permitted Use I Blank= Not Permitted I C =Conditional Use I A=Accessory Use [x]Table notes located at the end of the table Special Use-Specific Commercial, Mixed Use, Industrial Purpose Standards Use NC WLG L1 FMU Use Type Category fg] HC OC EC IP PF GC CR&D MC f4, I CI PNA 19 uuu OCRMUR-2.5 151 L1 1 // COMMERCIAL USES L6l 150.03.003.6 // Lodging Hotels or motels P 1 P P P P Facilities Office, business PPPPP P P P P P P P P 50.03.003.6.p or professional Business or Research and P P Professional development Services laboratories Psilocybin C , P , P , P , P , P , P C C P P P 50.03.003.6.t Service Center Commercial C P P P P P P P P P 50.03.003.5.f Commercial education Services Crematorium P P I DRAFT 12/05/2023 - Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 1 OF 11 TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P= Permitted Use I Blank= Not Permitted I C =Conditional Use I A=Accessory Use [x]Table notes located at the end of the table Special Use-Specific Commercial, Mixed Use, Industrial Purpose Standards Use 1 NC WLG Li] FMU Use Type Category HC OC EC IP PF GC CR&D MC j41, I CI PNA 41 al al al OC RM U R-2.5 U L51 11 1 Mortuary P/ P/ 50.03.003.6.o Cj C Personal PPPPP P PP P jj P WLG OC and services CI zones: 50.03.003.6.r Repair, rental, PPPPP P P P P P 50.03.003.6.tu and service Arcade gaming P/ P P P 50.03.003.6.c C Recreation and Commercial PIP P P P P P P C j5 Entertainme recreational ] nt facility<5,000 sq. ft. gross floor area Commercial P j C P C C C P C recreational facility>_5,000 sq. ft. and Recreation < 20,000 sq. ft. and gross floor area Entertainme Commercial P j C nt recreational (continued) facility>_20,000 sq. ft. gross floor area Fitness and PPPPP P P P P exercise DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 2 OF 11 TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P= Permitted Use I Blank= Not Permitted I C =Conditional Use I A=Accessory Use [x]Table notes located at the end of the table Special Use-Specific Commercial, Mixed Use, Industrial Purpose Standards Use NC WLG Li] Use Type FMU Category HC OC EC IP PF GC CR&D MC [41, I CI PNA ,L alLlLl OCRMUR-2.5 U I1 11 1 facilities, < 5,000 sq. ft. gross floor area Fitness and CPCCC P P C P exercise facilities, >_5,000 sq. ft. and < 20,000 sq. ft. gross floor area Fitness and P C C C P C exercise facilities, >_20,00 0 sq. ft. gross floor area • Theaters, indoor P j P P P P Retail < 10,000 PPPPP P P P P C j5 50.03.003.6.v sq. ft. gross floor 1 w area Retail >_ 10,000 P P P P P P C j5 50.03.003.6.w and <20,000 sq. 1 x Retail Sales ft. gross floor area Retail >_20,000 P/ 50.03.003.6.xy sq. ft. gross floor C area Vehicle and Auto and light PI P P P P P P 50.03.003.6.d Equipment vehicle rental DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 3 OF 11 TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P= Permitted Use I Blank= Not Permitted I C =Conditional Use I A=Accessory Use [x]Table notes located at the end of the table Commercial, Mixed Use, Industrial Special Use-Specific Purpose Standards Use NC WLG Ell Use Type FMU Category al HC OC EC IP PF GC CR&D MC j41, I CI PNA 41 al al al OC RM U R-2.5 al al 1 Sales and Auto and light PI P P P 50.03.003.6.e Services vehicle sales Auto service C P/ P P P P 50.03.003.6.f station and light C j vehicle repair Boat sales and P P boat repair Car wash C j P C P 50.03.003.6.i Heavy vehicle P 50.03.003.6.m repair Parking facilities, C P j P P P P 50.03.003.6.q off-street 10j Towing service P and tow yard Truck and trailer P P rental and sales of accessories INDUSTRIAL/MANUFACTURI 50.03.003.7 NG USES Dry cleaning or P P 50.03.003.7.b laundry plant Industrial General storage P P • Service and Lumber yards P Storage Nursery stock P production and wholesale DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 4 OF 11 TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P= Permitted Use I Blank= Not Permitted I C =Conditional Use I A=Accessory Use [x]Table notes located at the end of the table Special Use-Specific Commercial, Mixed Use, Industrial Purpose Standards Use NC WLG Ell FMU Use Type Category al HC OC EC IP PF GC CR&D MC 141, I CI PNA 41 al al al OC RMU R-2.5 al al 1 Wholesale P P distribution Light C C P C P P 50.03.003.7.a manufacturing Manufacturi Heavy P 50.03.003.7.a ng manufacturing Psilocybin P P 50.03.003.7.c Production Self-storage P Storage facility Railroad facilities P Transportati on Transportation P C depot Staff comment: State rules prohibit psilocybin facilities in residential zones. Staff recommends that Psilocybin Service Centers be allowed in all commercial zones, except that a conditional use permit be required in the NC,WLG OC, and WLG RMU zones because the purpose of these zones is to provide land for lower intensity commercial activities that primarily serve the surrounding neighborhood [LOC 50.02.002.1].A conditional use permit is a major development review that requires a neighborhood meeting and public hearing. Conditions of approval can be imposed by the hearing body in order to assure that the functional characteristics of the use are reasonably compatible with the uses in the vicinity[LOC 50.07.005.3a.iv]. Staff recommends that Psilocybin Production use only be permitted in the I and IP zones because the nature of the use and potential impacts of the use are expected to be similar to uses allowed in those zones [e.g., light manufacturing, nursery stock production,wholesale distribution]. PC comment: No changes from recommendation. DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 5 OF 11 // 50.03.003 USE-SPECIFIC STANDARDS // 6. USE-SPECIFIC STANDARDS FOR COMMERCIAL USES // t. Psilocybin Service Center 1. Compliance with Oregon Health Authority(OHA) Rules. Service Centers shall be licensed by the OHA and comply with all applicable regulations and requirements administered by OHA per OAR 333-333 and ORS 475A.310. li. Restrictions on Location. A Psilocybin Service Center shall not locate: (1) Within 1,000 ft., as measured by a straight-line measurement in a radius extending in any direction from the closest point anywhere on the boundary line of the real pro er comprising a school-or registered childcare facilit�C service ^ nter or production facility to the closest point of the licensed premises of a service center, of: (a) A public elementary or secondary school for which attendance is compulsory under ORS 339.020; (b) A private or parochial elementary or secondary school teaching children as described in ORS 339.030; and (c) A childcare facility registered with the Oregon Department of Educationd. (da y Daher psilocybin � nter or psilocybin ...duct... facility EXCEPTION: The 1,000-ft. buffer required by subsection (1)(a)-(c), above, may be reduced to 500 ft. if there is a physical or geographic barrier capable of preventing children from traversing to the premises of the psilocybin service center, such as a body of water, an interstate freeway, or similar barrier that people cannot walk across. A door, fence, wall, or gate is not a physical or geographic barrier for the purpose of this standard. Staff comment: The 1,000-ft. buffer required from public, private, and parochial schools is a state requirement(ORS 475A.904; OAR 333-333-4130(4))and ORS 475A.530(2)permits cities to require up to a maximum separation of 1,000 ft. between service centers.At the April 24,2023 work session,the Commission was split as to whether a 1,000-ft. buffer should also be required from licensed childcare facilities and from other psilocybin facilities, but directed staff to include these buffers in the draft amendments in order to get public feedback for the hearing. DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 6 OF 11 The reduction of the buffer to 500 ft. is allowed by ORS 475A.310 if there is a physical or geographic barrier that prevents children from accessing the premises; however, the state regulations to do not define what a physical or geographic barrier is.The proposed text is drawn from staff conversation with OHA staff.They stated this is how they would interpret"physical or geographical barrier" based on a similar phrase regarding marijuana facility siting restrictions. The proposed code language for this exception, above,would codify what it means. PC comment:The Commission recommends a 1,000 ft. buffer from a service center to a licensed childcare facility be required for the same reasons the state requires a 1,000 ft. buffer from public, private and parochial elementary and secondary schools.The PC also recommends requiring a 1,000 ft. buffer between service centers as allowed by ORS 475A.530(2). (2) Within the same building that contains any of the following uses: Marijuana production, processing, wholesale, laboratory/testing. or retail; health care facilities ac defined by ORc 442 n1 5r1 wa , or a residential unit, liquor license to the closest point of the licensed premisee of a s rvice center EXCEPTION: A psilocybin facility that met the location requirements, above, at the time of the issuance to the Oregon Health Authority of a land use compatibility statement may legally remain at that location if it existed before any of the uses listed in subsections (1)through (2 ). above, later located within a required buffer from the facility or within the same building. Staff comment: OAR 333-333-4300 prohibits the businesses listed in subsection (2), above, in addition to restaurants and areas licensed with a liquor license or retail liquor agent,from overlapping (interior or exterior)with a psilocybin facility.At the April 24 work session, the Commission discussed whether further restrictions should be required from these businesses, such as a minimum setback or prohibiting psilocybin facilities from being in the same building as some or all of these businesses.The Commission directed staff to include a provision in the draft amendments prohibiting a psilocybin facility from being in the same building as all of the listed businesses in subsection (2),as well as restaurants and businesses with liquor licenses, in order to get public feedback for the hearing. Staff noted that this may preclude psilocybin facilities from strip mall style developments in the city since the tenant spaces are often all in one building and most of the zones that would allow service centers allow restaurants. An exception is included because once a psilocybin service center locates at a site that complies with all locational restrictions, it will be difficult to assure that a business that is either restricted from being in the same building or within a certain distance of a service center doesn't later locate too close to a service center or within the same building. OAR 333-333-4110 requires the licensee obtain a land use compatibility statement(LUCS)from the City Planning Dept. before OHA will issue a license. Once issued,the state regulations do not address how the LUCS could be withdrawn.The owner of a school or licensed day care center may ascertain if there is a psilocybin facility nearby by inquiry to the Planning Department if they wish to avoid their students being nearby such facilities, but the owner of a school or day care would not be able to force a licensed psilocybin facility to relocate by opening within the buffer area. DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 7 OF 11 PC Comment—subsection 2: The Commission's public hearing version included the following additional uses as being prohibited in the same building: liquor license or a retail liquor agent, and restaurants, including temporary or seasonal.The Commission recommends that liquor licensed areas not be within 500 ft., per subsection (3), above. The Commission does not recommend that restaurants be excluded as a permissible use within the same building as a service center. PC Comment—subsection 3: The Commission recommends requiring a 500 ft. buffer between a service center and businesses with liquor licenses in order to limit the opportunity for a person that will be or was administered psilocybin to conveniently obtain alcohol,which would further impair the individual. iii. In the HC, MC, CR&D, CI and IP zones, the cumulative square footage of commercial retail businesses, including psilocybin service centers, or buildings on a site shall not exceed 60,000 sq. ft. gross floor area on a single lot or parcel or on adjacent lots or parcels. Staff comment: This provision is added to comply with Metro Code 3.07.440,which states that a city or county shall not approve a commercial retail use in an Employment Area with more than 60,000 square feet of gross leasable area in a single building, or commercial retail uses with a total of more than 60,000 square feet of retail sales area on a single lot or parcel, or on contiguous lots or parcels, including those separated only by transportation right-of-way. While"commercial retail uses"are not specifically defined in the Metro Code, other sections of the Metro code [MC 3.07.420(b)and 3.07.430(a)], refer to"retail commercial uses"as"stores and restaurants-and retail and professional services that cater to daily customers—such as financial, insurance, real estate, legal, medical and dental offices."A psilocybin service center is categorized as a Business or Professional Services in the Use Table[LOC Table 50.03.002-2] and is proposed to be permitted in Employment Areas (HC, MC, CR&D, CI, and IP zones). PC comment: No changes to recommendation. Note to Code Publishing Add following Editor's Note for cross reference; not part of code amendments. Editor's note: See additional psilocybin regulations in LOC Article 20.18. ut. Repair, Rental, Service vu. Restaurant *** wv. Retail, Under 10,000 Sq. Ft. Gross Floor Area xw. Retail, 10,000—20,000 Sq. Ft. Gross Floor Area *** DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 8 OF 11 y[x. Retail, Over 20,000 Sq. Ft. Gross Floor Area *** zy. Social, Recreational, or Cultural Facilities, Non-profit *** a.ax. Veterinary Clinic *** 7. INDUSTRIAL USES // c. Psilocybin Production i. Compliance with Oregon Health Authority(OHA) Rules. Psilocybin Production facilities shall be licensed by the OHA and comply with all applicable regulations and requirements administered by OHA per OAR 333-333 and ORS 475A.310. ii. Restrictions on Location. A Psilocybin Production Facility shall not locate: (1) Within 1,000 ft., as measured by a straight-line measurement in a radius extending in any direction from the closest point anywhere on the boundary line of the real prosy comprising a school or, registered childcare facilit�pr nfh^r production facility n nter to the closest point of the licensed premises of a service center, of: (a) a public elementary or secondary school for which attendance is compulsory under ORS 339.020; (b) A private or parochial elementary or secondary school teaching children as described in ORS 339.030; (c) A childcare facility registered with the Oregon Department of Education; and (�1-A",y oth^r�ciln��h�n_n rn rin4inn f�nili+, n� r ci�ihin cowiino non4^r EXCEPTION: The 1,000-ft. buffer required by(1)(a)-(c), above, may be reduced to 500 ft. if there is a physical or geographic barrier capable of preventing children from traversing to the premises of the psilocybin production facility, such as a body of water, an interstate freeway, or similar barrier that people cannot walk across. A door, fence, wall, or gate is not a physical or geographic barrier for the purpose of this standard. DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 9 OF 11 Staff comment: There is not a requirement by the initiative measure or the OHA rules for a 1,000-ft. buffer from public, private, and parochial schools for psilocybin production facilities(the buffer is only required for service centers).At the April 24 work session,there was not consensus from the Commission as to whether the same 1,000-ft. buffers required for service centers should also apply to psilocybin production since psilocybin production facilities do not administer psilocybin to clients; however, the Commission directed staff to include these buffers in the draft amendments in order to get public feedback for the hearing. PC comment:The Commission recommends a 1,000 ft. buffer be required from a psilocybin production facility to a licensed childcare facility for the same reasons the state requires a 1,000 ft. buffer between service centers and public, private and parochial elementary and secondary schools. The PC also recommends requiring a 1,000 ft. buffer from other production facilities and service centers (except those with dual licenses as allowed by state law)because the impacts of production facilities and service centers are not known at this time. (2) Within the same building that contains any of the following uses: Marijuana production, processing, wholesale, laboratory/testing, or retail; health facilities as defined by ORS 442 015(1wa`; or a residential unit. EXCEPTION: A psilocybin production facility that met the location requirements, above, at the time of the issuance to the Oregon Health Authority of a land use compatibility statement may legally remain at that location if it existed before any of the uses listed in subsection (1)-(2), above, later located within a required buffer or within the same building. Staff comment: OAR 333-333-4300 prohibits the businesses listed in subsection (2), above, in addition to restaurants and areas licensed with a liquor license or retail liquor agent,from overlapping (interior or exterior)with a psilocybin facility.At the April 24 work session,the Commission discussed whether further restrictions should be required from these businesses,such as a minimum setback or prohibiting psilocybin facilities from being in the same building as some or all of these businesses. The Commission directed staff to include a provision in the draft amendments prohibiting a psilocybin facility from being in the same building as all of the listed businesses in subsection (2), as well as restaurants and businesses with liquor licenses, in order to get public feedback for the hearing. An exception is included because once a psilocybin production facility locates at a site that complies with all locational restrictions, it will be difficult to assure that a business that is restricted from being within a certain distance of a production facility or in the same building doesn't later locate too close to a production facility. The owner of a school or licensed day care center may ascertain if there is a psilocybin facility nearby by inquiry to the Planning Department if they wish to avoid their students being nearby such facilities, but the owner of a school or day care would not be able to force a licensed psilocybin facility to relocate by opening within the buffer area. OAR 333-333-4110 requires the licensee obtain a land use compatibility statement (LUCS)from the Planning Dept. before OHA will issue a license. Once issued,the state regulations do not address how the LUCS could be withdrawn. PC Comment—subsection 2: The Commission's public hearing version included the following additional uses as being prohibited in the same building: liquor license or a retail liquor agent, and restaurants, including temporary or seasonal. The Commission does not recommend restaurants and businesses with liquor licenses be prohibited from being in same building as a production facility because production facilities don't allow consumption of psilocybin on the premises and because production facilities are limited to the I and IP zones only,which only allow limited restaurant or retail uses. DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 10 OF 11 All manufacturing, growing and testing shall be conducted within a fully enclosed building. Note to Code Publishing Add following Editor's Note for cross reference; not part of code amendments. Editor's note: See additional psilocybin regulations in LOC Article 20.18. 50.03.004 ACCESSORY STRUCTURES AND USES 1. ACCESSORY USES // b. Home Occupations A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: // (6) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited. Staff comment: State rules prohibit psilocybin facilities in residential zones.This code amendment makes it clear that psilocybin services and manufacturing are not allowed as a home occupation. PC comment: No changes from recommendation. // 50.10.003 DEFINITIONS Psilocybin Production A location licensed by the Oregon Health Authority for the growing, production and testing of psilocybin mushrooms and products. Psilocybin Service Center A location licensed by the Oregon Health Authority for the administration of psilocybin mushrooms and products to members of the public by licensed facilitators. - End of code amendments - DRAFT 12/05/2023 -Council Report Version LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 11 OF 11