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Planning commission approves Blaze Utopia fee changes and allows retroactive shed, patio and setback variance with signage condition
Summary
The Lake Elsinore Planning Commission voted to recommend city council approval of amendments to Blaze Utopia’s development agreement that change community benefit fees, and approved a separate design review and variance to legalize an unpermitted storage shed, add a patio and reduce rear-yard setbacks at 233 West Midthorn Street.
The Lake Elsinore Planning Commission voted to recommend city council approval of amendments to the development agreement for Blaze Utopia, a cannabis business at 233 West Midthorn Street, and to approve a separate minor industrial design review and variance allowing an existing unpermitted storage shed, a new attached employee patio and a small fire riser room.
Staff told commissioners the development-agreement amendments change how community benefit fees (CBF) are calculated and paid. The amendments would separate retail and non-retail space when assessing CBF, cap the retail CBF at $25 per square foot (after which the current 4 percent annual increase would stop), reduce the non-retail fee to 5 percent with no annual increase, and allow monthly rather than annual payments. Planning staff recommended the commission find the amendment exempt from the California Environmental Quality Act under a class 1 existing-facilities exemption and to recommend city council approval.
On the design-review and variance application for the same property, staff presented the project as a minor industrial design review (No. 2025-04) and variance (No. 2025-01) to legalize an unpermitted storage shed, construct a one-story 373-square-foot patio and a 21-square-foot fire riser room, and to reduce rear-yard setbacks. Staff described the shed as intended to house large water tanks to increase building water pressure; because of humidity and electrical-system concerns the tanks could not be accommodated inside the primary structure. The application sought to reduce the rear yard setback for the proposed patio from 15 feet to 9.4 feet and for the storage shed from 15 feet to 3.5 feet. Staff said unusual lot shape and grade differences limit developable area and support the variance findings, and recommended approval, finding the project consistent with the general plan and municipal code. Staff also stated the project is exempt from CEQA under provisions cited in the staff report (identified in the record as municipal code sections 15,303 and 15,305 and the corresponding categorical exemptions referenced therein).
Members of the public did not request to speak on either item and the applicant was not present for the hearings. Commissioners asked staff to clarify how the new structures would be categorized for CBF calculations; staff said the applicant must submit an updated floor plan that explicitly separates retail from nonretail square footage so that the storage shed (water-tank area) would be counted as nonretail space under the amended development agreement.
Commissioner Michael Carroll moved the motion to approve the design review and variance with an added condition requiring removal or bringing into conformance of all nonconforming signage on the building; Commissioner Pease seconded. The commission recorded a final vote of 4–1 on that item with Commissioner DeVore dissenting. The earlier development-agreement amendment was recorded as passing unanimously (5–0).
The approvals are recommendations to city council (for the development-agreement amendment) and, for the design review and variance, approvals subject to the usual building-permit and plan-check process to legalize the previously unpermitted structures. Staff said construction of the unpermitted shed will require submittal to building plan check and inspections before final sign-off.
Why it matters: The development-agreement change alters the business cost structure for a cannabis operator in the city by separating retail and nonretail fees and capping retail CBF increases, which affects local revenue tied to business operations. The design-review and variance outcome allows Blaze Utopia to regularize existing site improvements that staff said were required to address water-pressure and safety concerns but which were previously constructed without permits. The commission’s added signage condition directs staff to ensure the facility’s window and other signage conform to municipal code as part of approval.
Next steps: The development-agreement amendment will be forwarded to the city council for final action; the design-review and variance approvals require submittal to building-plan check, inspections and compliance with the added signage condition.
