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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />May 7, 2018 <br /> <br />SUBJECT <br />Adoption of an Ordinance Amending Zoning Ordinance Article 59 (Cannabis Cultivation <br />and Commercial Cannabis Activity) Allowing Cannabis Delivery Centers and Indoor <br />Nurseries in Industrial Zoning Districts and an Ordinance Amending Municipal Code <br />Chapter 32 by adding Division 7 (Regulation of Cannabis Businesses) to Article V <br /> <br />RECOMMENDATION <br />Waive the Second Reading and adopt an Ordinance amending Zoning Ordinance <br />Article 59 (Cannabis Cultivation and Commercial Cannabis Activity) and an Ordinance <br />amending Municipal Code Chapter 32 by adding Division 7 (Regulation of Cannabis <br />Businesses) to Article V, and find that projects are exempt from the requirements of <br />California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the CEQA <br />Guidelines and Section 26055(h) of the Business and Professional Code <br /> <br />BACKGROUND <br />On April 9, 2018, the City Council introduced an Ordinance to amend Article 59 of the <br />Redwood City Zoning Ordinance – Cannabis Cultivation and Commercial Cannabis <br />Activity and an Ordinance adding Division 7 to Article V of Chapter 32 of the Municipal <br />Code relating to Regulations of Cannabis Businesses. The City Council held a public <br />hearing and adopted the proposed ordinances with modifications as described below. <br />The staff report from April 9, 2018 is provided as Attachment 1. <br /> <br />ANALYSIS <br />On April 9, 2018, the City Council waived the first reading and introduced ordinances <br />that establish regulations related to Cannabis Businesses. <br /> <br />One proposed Ordinance will amend Article 59 (Cannabis Cultivation and Commercial <br />Cannabis Activity) of the Redwood City Zoning Ordinance. Key provisions found within <br />the Ordinance include: <br />· Allowing delivery centers in the industrial zoning districts of IR, LII, IP, and GI. <br />Delivery centers include storage of cannabis and sales conducted exclusively by <br />delivery; walk-in sales are not allowed. <br />6.4.A. - Page 1