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North Bend reviews draft ordinance to allow regulated marijuana manufacturing in a narrow heavy-industrial area
Summary
City staff previewed a proposed ordinance to permit regulated marijuana cultivation and manufacturing in a tightly defined heavy-industrial zone to recapture lost state-shared revenue; planners stressed setback, odor-control and OLCC requirements and said only two properties are in the affected area.
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City planning staff on Tuesday walked the North Bend City Council through a proposed ordinance that would allow regulated marijuana cultivation and manufacturing in a narrowly defined heavy-industrial zone.
Staff said the change aims to recover an estimated roughly $15,000 in annual state-shared marijuana revenue that the city currently loses because its ordinances do not list certain uses. The ordinance would not permit retail dispensaries on site; rather, it would add manufacturing and cultivation as potential industrial uses subject to conditional-use review.
City Planner Palak said the area under consideration is small — two properties currently fall inside the mapped heavy-industrial zone — and stressed multiple constraints: floodplain and tsunami-zone limitations, a 1,000-foot buffer from schools and roughly 900 feet from residential areas, and required odor-control, security and waste-management measures. Palak also noted that OLCC (Oregon Liquor and Cannabis Commission) rules impose further standards.
Councilors asked whether there were identified businesses ready to locate in the zone; staff said no existing applicants have applied but that adding the zoning option expands property owners’ choices and would require conditional-use review and planning-commission approval before any operation could locate there.
No ordinance vote was taken at the work session; staff framed the item as a public-hearing discussion and said any changes would return on the council agenda after planning commission processes and public notice.

