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Agenda Item - 2024-07-16 - Number 10.3 - Resolution 24-17, Referral to Voter's a Measure Prohibiting Psilocybin Facilities within the City 10.3 E 0 COUNCIL REPORT � o OREGO\-\ Subject: Resolution 24-17, Referral of Psilocybin Facility Ban to Voters Meeting Date: July 16, 2024 Staff Member: Martha Bennett, City Manager Ellen Osoinach, City Attorney Report Date: July 8, 2024 Department: City Manager's Office City Attorney's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑x Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Adopt Resolution 24-17. Recommended Language for Motions: Move to adopt Resolution 24-17. Project/ Issue Relates To: City Council enacted Ordinance 2903 in December 2022, temporarily prohibiting psilocybin facilities in the City until the general election of November 2024. In December 2023, Council enacted Ordinance 2928 imposing local time, place and manner restrictions on psilocybin facilities beyond those in state statute and administrative rule. Issue before Council (Highlight Policy Question): Shall the City Council refer Resolution 24-17 to the November 2024 ballot for voter approval? ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑x Not Applicable Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND In 2020, Oregon voters approved Measure 1091, which legalized and regulated psilocybin in Oregon. The Oregon Health Authority (OHA) began accepting license applications on January 2, 2023, but cities could opt-out, requiring any ban to be voted on in the next general election. On December 6, 2022, the City Council adopted Ordinance 2903 (Attachment 2), temporarily banning psilocybin facilities and mandating a vote on the ban at the next statewide general election on November 5, 2024. The Council also asked the Planning Commission and staff to recommend additional local restrictions on psilocybin facilities—as allowed by ORS 475A.530— which would only apply if the voters decide to allow psilocybin facilities in Lake Oswego. On December 5, 2023, the Council adopted Ordinance 2928, adding local restrictions (Attachment 3). Proposed Resolution 24-17 (Attachment 1) refers to the November 5, 2024 election, a ballot measure proposing the prohibition of psilocybin facilities in Lake Oswego and certifies for filing the associated ballot title (i.e. Caption, Question, and Summary). DISCUSSION ELECTION DEADLINES The election filing deadlines for a city-referred measure to the November 5, 2024 election are as follows: • August 16th— last day a City may file a ballot title for publication of notice. • Electors have seven (7) days to challenge a ballot title in circuit court. • August—Submit communications material to the Secretary of State for "Safe Harbor" review. • September 5th—last day a City may file a notice of measure election, which contains the ballot title and an explanatory statement. The notice may only be filed upon completion of the ballot title challenge process. • September 9th—last day to file arguments for inclusion in the county voters' pamphlet. City staff may not file or assist in the filing of arguments in support or opposition. • September to November— public information distribution • November 5th— Election Day So long as the City adopts Resolution 24-17 in July, City staff will be able to meet these deadlines. SUMMARY OF LOCAL REGULATIONS In adopting Ordinance 2928, Council noted that the land use impacts of psilocybin facilities were not known due to Oregon being the first in the nation to legalize psilocybin, and OHA had 1 Now codified in ORS Chapter 475A. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 only granted a few licensee2. Although the City's local regulations are "on the books," they will not apply to psilocybin facilities unless the voters decide at the November 2024 election to allow psilocybin facilities within the City. If the voters decide to allow psilocybin facilities, Council intends to review the adopted psilocybin time, place and manner (TPM) restrictions three years from the effective date of Ordinance 2928 in order to notify psilocybin licensees that local regulations are intended to be re-examined in three years with the purpose of assessing whether the regulations are effective in addressing impacts and to determine if more, or less local regulations are appropriate. Lake Oswego's local regulations are intended to address the following issues/impacts: • Protection of children: State rules require a buffer from service centers to public and private schools, but do not afford the same protection to licensed childcare facilities. • Proximity and access of the use to marijuana retail: proximity of psilocybin facilities to marijuana retail could provide an easy opportunity for a person that will be or was administered psilocybin to conveniently obtain marijuana, which would further impair the individual. • Incompatibility with residential use: State rules prohibit psilocybin service centers in an area zoned exclusively residential and prohibits the interior and exterior areas of both service centers and manufacturing businesses from overlapping with a residence (OAR 333-333-4300), but does not address proximity of residences to these uses in mixed- used commercial/residential zones. Psilocybin Service Centers Psilocybin service centers are businesses licensed by OHA for the administration of psilocybin mushrooms and products to members of the public by licensed facilitators. The City Council adopted the following local regulations for service centers: • Prohibit the use in residential zones (R-zones) and as a home occupation; • Allow the use in all commercial and industrial zones in the City, except that a conditional use permit would be required for the use in the NC, WLG OC, and WLG RMU zones; • Require a 1,000-ft. buffer from registered childcare facilities3 (this is in addition to the 1,000-ft. buffer from public and private schools required by the statute) and; • Prohibit any psilocybin service center from being in the same building as marijuana businesses and residences. 2 The first license for a psilocybin service center was issued about May 5,2023,and by July 2, 2023 OHA had only issued five licenses. OHA Press Release. As of July 8, 2024, OHA had issued about forty-three(43) licenses for psilocybin facilities. 3 The Oregon Dept.of Education licenses child care facilities and maintains a database. Not all child care facilities are required to be licensed;for instance, no license is required for the care of three or fewer children. Licensed Child Care I Early Learning Division,OR(oregonearlylearning.com). Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 Psilocybin Production Psilocybin production is a business licensed by the OHA for the growing, production and testing of psilocybin mushrooms and products. The City Council adopted the following local regulations for service centers: • Allow the use only in the Industrial (I) and Industrial Park (IP) zones; • Prohibit the use in residential zones (R- zones) and as a home occupation; • Require a 1,000-ft. buffer from registered childcare facilities (this is in addition to the 1,000-ft. buffer from public and private schools required by the statute); • Prohibit any psilocybin facility from being in the same building as marijuana businesses and residences (to address mixed-use zones) and; • Require the use to be within a fully enclosed facility. FISCAL IMPACT None. RECOMMENDATION Staff recommends adoption of Resolution 24-17. ATTACHMENTS 1. Resolution 24-17 2. Ordinance 2903 (enacted December 2022) 3. Ordinance 2928 (enacted December 2023) BACKGROUND MATERIAL AND REFERENCES Staff reports, staff memos and other materials that were prepared for prior Planning Commission work sessions related to local psilocybin regulations 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.or.us/all-projects Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 24-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO SUBMITING A MEASURE TO THE VOTERS AT THE NOVEMBER 5, 2024 GENERAL ELECTION PROHIBITING PSILOCYBIN FACILITIES WITHIN THE CITY. WHEREAS, Ballot Measure 109, known as the Oregon Psilocybin Services Act, which passed in November 2020, required the Oregon Health Authority (OHA) to begin accepting applications for licenses to manufacture, deliver and administer psilocybin on January 2, 2023; and WHEREAS, Ballot Measure 109 also allows local governments to prohibit psilocybin service centers and the manufacture of psilocybin products (collectively "psilocybin facilities") by referring an ordinance to the voters at a statewide general election; and WHEREAS, the City Council of the City of Lake Oswego adopted Ordinance No. 2903 which prohibits psilocybin facilities in the area subject to the jurisdiction of the City and refers the matter to the electors of the City; and WHEREAS, Ballot Measure 109 also allows local governments to adopt reasonable time, place, and manner restrictions for psilocybin facilities in addition to those found in state statutes (ORS. Ch. 475A) and administrative rules (Oregon Health Authority, OAR Div 333-333)—regardless of whether the local government also adopted an Ordinance prohibiting such facilities in the areas subject to the jurisdiction of the City; and WHEREAS, on December 5, 2023 the City Council of the City of Lake Oswego adopted Ordinance No. 2928 imposing local time, place, and manner restriction on psilocybin facilities; NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Council refers to the November 5, 2024 election a ballot measure proposing the prohibition of psilocybin-facilities in Lake Oswego. Section 2. The Clackamas, Multnomah and Washington County Elections Offices will conduct the election. The precincts for said election shall be and constitute all of the territory included within the corporate limits of the City of Lake Oswego. Section 3. The ballot title certified and filed by the City Council shall be as follows: Caption: Prohibits psilocybin businesses within the City of Lake Oswego. Question: Shall the City of Lake Oswego prohibit psilocybin service centers and the manufacture of psilocybin products within the City? Summary: State law authorizes the manufacturing, transportation, delivery, sale, and purchase of psilocybin, the psychedelic drug found in certain mushrooms, in Oregon. A city may "opt- out" by adopting an ordinance prohibiting the establishment of licensed psilocybin product Resolution 24-17 Page 1 of 2 manufacturers and/or psilocybin service centers within their boundaries. A city that "opts-in" may also adopt local time, place, and manner restrictions on psilocybin product manufacturers and/or psilocybin service centers that are in addition to those already imposed by state law. The City adopted an ordinance prohibiting the establishment of psilocybin product manufacturers and psilocybin service center operators (collectively, "psilocybin facilities") within the City. State law requires that this ordinance must be approved by the voters before it may take effect. The City Council also adopted an ordinance imposing local time, place, and manner restrictions on psilocybin facilities in addition to those already imposed by state law. Approval of this measure would prohibit psilocybin facilities within the City. Rejection of the measure would allow psilocybin facilities within the City subject to state and local restrictions. Section 4. The City Manager, City Attorney, and City Recorder shall take all steps on behalf of the City as necessary to carry out the intent and purposes of this resolution in compliance with state and local law including but not limited to publishing the ballot title as provided by state law, publishing notice of the measure as required, submitting an explanatory statement, and filing this measure with the appropriate County Elections Divisions. Section 5. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 17th day of July, 2024. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Resolution 24-17 Page 2 of 2 ATTACHMENT 2 Effective Date: January 5, 2023 ORDINANCE 2903 AN ORDINANCE OF THE CITY OF LAKE OSWEGO DECLARING A TEMPORARY PROHIBITION ON PSILOCYBIN-RELATED BUSINESSES WITHIN THE CITY. WHEREAS,the City Council of the City of Lake Oswego finds that: A. The Oregon Psilocybin Services Act, through Measure 109, was submitted to the voters of the State of Oregon at the November 2020; B. The voters adopted Measure 109, which directs the Oregon Health Authority("OHA") to license the manufacture, delivery, administration of psilocybin (psychoactive mushroom) at supervised, licensed facilities; C. Measure 109 provides that OHA shall begin accepting applications for licenses to manufacture, deliver and administer psilocybin on January 2, 2023; D. Section 128 of Measure 109, now codified as ORS 475A.718, provides that a city council may adopt an ordinance prohibiting psilocybin-related businesses (Psilocybin service centers and Psilocybin product manufacturers) in the area subject to the jurisdiction of the city, and that the city council "shall submit the measure of the ordinance" to the electors of the city at the next statewide general election for approval following adoption of the ordinance; E. Upon receiving notice of adoption of an ordinance prohibiting psilocybin-related businesses in the area subject to the jurisdiction of the city, ORS 475A.718(4) provides that OHA shall discontinue licensing those premises to which the prohibition applies until the next statewide general election; F. The City Council desires to temporarily prohibit psilocybin-related businesses in Lake Oswego in order to allow the City Council to consider adoption of an ordinance setting forth reasonable time, place and manner regulations for psilocybin-related businesses and repeal of this Ordinance; and G. If a reasonable time, place and manner ordinance is not sooner adopted and this Ordinance repealed, then to prohibit psilocybin-related businesses within Lake Oswego until such time as the voters of Lake Oswego are able to vote to either continue or discontinue the prohibition of psilocybin-related business to the voters of Lake Oswego, and in that case, the Council desires to refer the question of whether to prohibit psilocybin-related businesses to the voters of Lake Oswego at the next statewide general election. The City of Lake Oswego ordains as follows: Section 1. DEFINITIONS: The definitions of ORS 475A.220 are hereby adopted and incorporated herein. ORDINANCE 2903 Page 1 of 2 PROHIBITION DECLARED. As described in ORS 476A.718(1),the City of Lake Oswego hereby prohibits the establishment and operation of the following in the area subject to the jurisdiction of the City: (a) Psilocybin product manufacturers that hold a license issued under ORS 475A.290; (b) Psilocybin service center operators that hold a license issued under ORS 475A.305; or (c) Any combination of the entities described above; until such time as either this Ordinance is repealed by the City Council by subsequent ordinance or, upon referral of this ordinance by Measure to the voters of the City at the next statewide general election, the voters vote to repeal this Ordinance and permit the establishment of psilocybin product manufacturers and psilocybin service centers within Lake Oswego. Section 2. Severability. The provisions of this Ordinance are severable. If any portion of this Ordinance is held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. Section 3. Referral. Unless sooner repealed by subsequent ordinance by the City Council, this Ordinance shall be referred to the electors of the City of Lake Oswego at the next statewide general election on Tuesday, November 5, 2024. Section 4. Notice to Oregon Health Authority. Pursuant to ORS 475A.718(3), the City Recorder shall provide notice of adoption of this Ordinance to the Oregon Health Authority promptly following adoption and no later than December 31, 2022. ADOPTED AND ENACTED at the meeting of the Lake Oswego City Council held on the 6th day of December, 2022. AYES: Mayor Buck, Mboup, Wendland, Nguyen, Rapf NOES: None EXCUSED: Verdick, Manz ABSTAIN: None Joseph . Buck, Mayor ATTEST: �r� ' � Kari Linder, City Recorder APPROVED AS TO F•:M: Evan Boone, City Attorney Pro Tem ORDINANCE 2903 Page 2 of 2 ATTACHMENT 3 EFFECTIVE DATE: January 4, 2024 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: Mayor Buck, Mboup, Verdick, Rapf, Afghan, Corrigan, Wendland NOES: None ABSENT: None ABSTAIN: None EXCUSED: None Ordinance 2928 PAGE 2 OF 3 AIL oseph M. :uck, Mayor Dated: lof 9/ 3 ATTEST: 4titz..) Kari Lind , City Recorder APPROVED AS TO FORM: 2-1" _1(s -- — 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 // 50.03.002 USE TABLE // 3. COMMERCIAL, MIXED USE, INDUSTRIAL, AND SPECIAL PURPOSE DISTRICTS 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 14] Use Type FMU Category al HC OC EC IP PF GC CR&D MC 14], I CI PNA 49 11uu OCRMUR-2.5 u 11 1 // COMMERCIAL USES j J I 150.03.003.6 // // // // // // // // // // // // // / // // // // // Business or Professional Psilocybin C , P , P , P , P , P , P , O , C P P P 50.03.003.6.t Services Service Center // // // // // // // // // // // // / // // // // // Commercial Repair, rental, PPPPP P P P P P 50.03.003.6.tu Services and service Retail < 10,000 PPPPP P P P P C j5 50.03.003.6.v sq. ft. gross floor 1 area Retail Sales Retail >_ 10,000 P P P P P P C j5 50.03.003.6.w and < 20,000 sq. 1 x ft. gross floor area 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 1 OF 5 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 l� FMU Use Type Category HC OC EC IP PF GC CR&D MC [41, I CI PNA 41 al al al OC RM U R-2.5 U L51 1 1 1 Retail >_20,000 P/ P P P f 1 50.03.003.6.xy sq. ft. gross floor C area INDUSTRIAL/MANUFACTURI 50.03.003.7 NG USES Manufacturi // // // // // // // // // // // / // // // // // ng Psilocybin P P 50.03.003.7.c Production 50.03.003 USE-SPECIFIC STANDARDS // 6. USE-SPECIFIC STANDARDS FOR COMMERCIAL USES // t. Psilocybin Service Center i. 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. ii. 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 property comprising a school or registered childcare facility to the closest point of the licensedpremises of a service center, of: (a) A public elementary or secondary school for which attendance is compulsory under ORS 339.020; 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 2 OF 5 (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 Education. 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, (2) Within the same building that contains any of the following uses: Marijuana production, processing, wholesale, laboratory/testing, or retail; or a residential unit. 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)-(2), above, later located within a required buffer from the facility or within the same building. 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. 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 *** yx. Retail, Over 20,000 Sq. Ft. Gross Floor Area *** zy. Social, Recreational, or Cultural Facilities, Non-profit 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 3 OF 5 *** aaz. 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 property comprising a school or registered childcare 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; (c) A childcare facility registered with the Oregon Department of Education; and 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 thej,urpose of this standard. (2) Within the same building that contains any of the following uses: Marijuana production, processing. wholesale, laboratory/testing. or retail; 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. 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 4 OF 5 iii. All manufacturing, growing and testing shall be conducted within a fully enclosed building. 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. 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 - 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 5 OF 5