Planning commission resists adding cannabis cultivation and processing to city code

North Bend planning staff presented a draft zoning text amendment during a Nov. 17 work session that would allow marijuana cultivation and processing in the heavy industrial zone by conditional use review and add standards for odor control, security, waste management and separation from sensitive uses.

City planner Palak Pande told the commission the draft was prepared after city council asked staff to explore whether the city could receive additional state shared marijuana tax revenue by permitting cultivation or processing. “The amendment that I have presented in the staff report would allow cultivation and processing facilities in the heavy industrial zone only with a conditional use code,” Pande said, adding the draft also contemplated consolidating existing dispensary language into a single chapter and specifying operational standards.

Commission input focused on two issues: the state regulatory distinction between medical and recreational marijuana, and whether the city wants to permit cultivation/processing at all. One commissioner (identified in the transcript as Laurie) recommended preserving distinctions because state licensing remains separate: “The state law still recognizes two different types of marijuana, medical and recreational,” she said, noting different state agencies historically handled medical (OHA) and recreational (OLCC) licensing.

Several commissioners expressed reservations about allowing cultivation or processing within city limits. Chair Ron Koach said he was opposed to permitting cultivation and processing in the city; another commissioner raised concerns about odors and impacts if large‑scale production were allowed. Commissioners also questioned whether the limited number of heavy industrial sites in the city would realistically host such facilities and whether the modest state tax revenue would justify the change.

After discussion and questions about potential locations shown on staff’s map, commissioners signaled a working consensus to leave the code as drafted (dispensaries only) and not pursue language to permit cultivation/processing. Staff said they would not move forward with amendments to allow cultivation and processing unless the commission directed further work. The session closed with no formal action and the commission asked staff to return with clarifications or other code cleanups as needed.

The work session was intended to gather input rather than produce a final recommendation; if the commission later directs a formal text amendment, it would return for public hearings and formal votes.