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Olivia council adopts zoning clarifications to allow meso and micro cannabis businesses, delegates retailer registration to county

Olivia City Council · November 4, 2024
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Summary

The council approved amendments to Chapter 118 of Olivia city code to delegate retail cannabis registration to the county, add process language to certify zoning compliance for pre-applicants, and explicitly allow meso/micro cannabis businesses in B1, B3 and industrial zones; no public testimony was given at the hearing.

Olivia’s City Council approved amendments to Chapter 118 of the city code on cannabis and related zoning changes after a staff presentation and council discussion.

Pam, a city staff member, told the council the ordinance adds a new Section 118.03 that "gives authority to the city administrator or their designee to certify whether a proposed business complies with our zoning ordinances," a procedural step tied to the state’s pre-application process for social-equity and other license applicants. Because the council declined to maintain a local registration program for retail operators, the ordinance delegates the initial canvas/registration task to the county.

The amendments also clarify how vertically integrated cannabis operations would be treated. Pam described the categories discussed in the draft: a cannabis micro business may cultivate up to 5,000 square feet indoors while larger micro/meso configurations could cultivate up to 15,000 square feet or one acre outdoors; micro businesses may include an on-site consumption component referred to in the draft as a "cannabis lounge." Pam said the zoning sections (through Sec. 152) were updated so pre-applicants can be certified for compliance with local zoning when the state requests local confirmation.

Council members raised operational questions about allowing cannabis lounges in B1/B3 commercial districts, and staff noted some components (manufacturing, cultivation) are more appropriate in industrial districts. After discussion the council directed staff to explicitly add meso and micro businesses to B1 and B3 and to include production/manufacturing in I (industrial) zones. The council moved, amended and approved the ordinance amendment and approved a companion resolution to publish a title-and-summary for print notice due to the ordinance length.

No members of the public came forward during the Chapter 118 public hearing.

The ordinance as amended will allow local officials to certify zoning compliance for pre-applicants and establishes the zoning framework where vertically integrated cannabis businesses may locate; staff will update the ordinance text to reflect the council’s direction and the item will be published as a summary for legal notice.