Attachment C - VPC Summary - Z-TA-4-20.pdf

City of Phoenix — Formal (2020-11-04)

Extracted text (via pymupdf) 98593 characters

Village
Date
Recommendations
Vote
Maryvale
7/8/20
Approval
6-4
Encanto
7/13/20
Approval
9-0
Rio Vista
7/14/20
Approval
4-0
North Mountain
7/15/20
Approval
11-5
Deer Valley
7/16/20
Approval
6-2
Estrella
7/21/20
Approval
6-0-1
Ahwatukee Foothills
7/27/20
Approval
14-0
Alhambra
7/28/20
Approval
7-5
Paradise Valley
8/3/20
Approval
9-2
Desert View
8/4/20
Approval
7-0
Camelback East
8/4/20
Approval
18-0
Laveen
8/10/20
Approval
8-0
Central City
8/10/20
Approval
15-0
South Mountain
8/11/20
Approval
11-2
North Gateway
8/13/20
Approval
6-0
TA-4-20: Medical Marijuana Dispensary Size Expansion
-
Village Planning Committee Summary Results
8/27/2020
Attachment C

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 8, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval, per the staff recommendation
VPC Vote
6-4

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Mike Weber joined the meeting during this item and Zeke Valenzuela left during
this item, bringing the quorum to 10.

Sarah Stockham, staff, explained that the text amendment will increase the
permitted size of not-for-profit medical marijuana dispensaries from 2,000 to
5,000 square feet. The current 2,000 square foot maximum includes the retail
area and all back-of-house operations such as storage, hallways, and bathrooms
which leaves approximately 700 to 900 square feet for patient area. The text
amendment responds to a sustained increase in the demand for medicine, will
improve patient privacy, and will align the limitation with other jurisdictions and
previous zoning approvals. The text amendment is being presented to all of the
Village Planning Committees for recommendation and is projected to be
considered by the City Council in October 2020. Staff is recommending approval
of the text amendment.

Lindsay Schube, of Gammage & Burnham, representing the applicant,
reiterated and expanded upon the staff presentation, highlighting the following:

Scope of amendment: The amendment is narrowly focused to expand the
maximum floor area for dispensaries from 2,000 square feet to 5,000 square feet.
The amendment does not modify any other restrictions on medical marijuana
facilities. New facilities and those wishing to expand will require a use permit and
be subject to separation requirements such as one mile from other dispensary
facilities.

Response to demand: Since 2011, the number of cardholders increased from
16,000 to 245,000 which is a 1,400 percent increase. During this same time, the

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
number of cardholders per dispensary changed from 1 per 126 to 1 per 953
cardholders indicating the demand far exceeds the current supply.

Demand for customer privacy and retail space: The origin of the 2,000 square
foot maximum was a conservative estimate of retail demands, but the estimate
did not account for the sheer demand for medicine, the specificity of medical
consultations, and the array of different products. Dispensaries can serve 600-
700 patients per day with 50 or more patients in a dispensary at a given time.

Significant regulation: Medical marijuana dispensaries are highly regulated by the
State of Arizona and by the City of Phoenix. They are the only use in the
ordinance that is size restricted (except for outdoor merchandise display and
outdoor garden centers) and are required to maintain a security plan on file with
the city.

Ms. Schube concluded the presentation by quoting a 2018 staff report for a text
amendment which highlighted how dispensaries do not produce significant public
safety issues or detrimental effects. Ms. Schube then thanked the committee and
invited questions.

Vice Chair Gene Derie shared that there has been a sizable number of
variances to reduce the distancing requirements for dispensaries. Ms. Schube
responded that there are requests for variances, some of which get denied and
some get approved. Ms. Schube continued that the request does not change the
separation requirements and that it is hard to find sites that meet the separation
requirements and do not cluster dispensaries close together.

Sarah Gonzalez asked if there is an increased demand for medical marijuana in
Maryvale, how the tax income from dispensaries is being reinvested in Maryvale,
how does medical marijuana help health disparities for people in Maryvale, and
the location of the three dispensaries in Maryvale. Ms. Schube responded that
the data regarding an increased demand for medical marijuana is sent out by the
state of Arizona and due to HIPPA, the data is aggregated at the county level.
Ms. Schube continued that the Arizona Department of Health Services is working
on distributing tax funds, and medical marijuana can help with seizures and it can
change people’s lives, and the dispensaries are located at 2175 N. 83rd Ave,
4120 W. Indian School Road and 2330 N 75th Ave, which was approved for a
size increase by the Board of Adjustments.

Brandon Sirochman asked Ms. Schube to expand on how patients meet with a
doctor to receive their card and shared concern with how many licenses
Curaleaf, located next to Ak-Chin Pavilion has, and concern with the request to
expand the retail area for dispensaries. Ms. Schube explained that the patients
will meet with a doctor who will determine if they are eligible to receive a card,
and the patient will apply for their card with the State. She explained that the
doctor is not prescribing a specific product when they are evaluating if the patient
is eligible to apply for a card and that there is a doctor on site in the dispensary
who can meet with patients and patient consultants who can answer specific
questions. Ms. Schube added it is challenging when there are a lot of people in
the store at the same time and the doctor comes to the counter to help with
questions. Ms. Schube shared that are 130 licenses in the state and there are no

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
more available, none of the dispensaries will be able to expand automatically,
and that with an increased demand there is an increase for more parking and
due to the pandemic, more space to practice social distancing. Ms. Schube
speculated that Curaleaf has around 14 licenses.

Viri Hernandez asked what sort of impacts the request will have especially
regarding increased criminalization. Ms. Schube answered that most
dispensaries work with communities such as the Boys and Girls Club but she
does not represent the three dispensaries in Maryvale so she cannot speak to
specific community engagement in Maryvale.

Chair Jeff Armor stated that engaging the dispensary owners has been difficult,
and while the idea of increasing the allowable retail space may sound good now,
there could be problems in the future. Chair Armor added that the privacy at
pharmacies such as CVS is lacking. Chair Armor asked how many patients on
average visit a dispensary per day, what the time frame is for when a patient can
return to the dispensary and how factors such as traffic are considered. Ms.
Schube answered that it is unlikely the number of licenses will go up, there is
always the opportunity to apply for a text amendment to change the standards
back, the request is seeking to get to at least the same level of privacy as a CVS,
dispensaries see on average 400-500 people a day and there is a limit on how
much you can purchase every two weeks, and that traffic impacts are considered
by the Zoning Adjustment Hearing Officer when applying for a use permit.

Jeff O’Toole stated that this request is less about increasing privacy and more
about stocking more product but the request to increase the retail area is rational.

Ken DuBose shared that he has seen many people from the Cancer Institute
who cannot eat or sleep and can see how medical marijuana is expanding, and
2,000 square feet for any retailer isn’t enough.

Alvin Battle asked what the criteria is for the on-site doctor. Ms. Schube
explained that the doctor must have a medical degree and a valid medical
license, they do not give prescriptions on site, and shared that one doctor she
knows works as an ER doctor and another is a family practitioner.

Motion:
Mike Weber motioned to recommend approval per the staff recommendation.
Jeff O’Toole seconded the motion.

Vote:
6-4, Motion to recommend approval passes with committee members Armor,
Derie, Battle, DuBose, O’Toole and Weber in favor and committee members
Demarest, Gonzalez, Hernandez and Sirochman opposed.

STAFF COMMENTS REGARDING VPC RECOMMENDATION & STIPULATIONS:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 13, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
9-0

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Rick Mahrle announced that, as an employee of Gammage and Burnham, he is
declaring a conflict of interest and will be leaving the meeting until the item has been
concluded.

At this time, Rick Mahrle left the meeting reducing the quorum to nine members (eight
being required for a quorum).

Nick Klimek, staff, explained that the text amendment will increase the permitted size
of not-for-profit medical marijuana dispensaries from 2,000 to 5,000 square feet. The
current 2,000 square foot maximum includes the retail area and all back-of-house
operations such as storage, hallways, and bathrooms which leaves approximately 700
to 900 square feet for patient area. The text amendment responds to a sustained
increase in the demand for medicine, will improve patient privacy, and will align the
limitation with other jurisdictions and previous zoning approvals. The text amendment is
being presented to all of the Village Planning Committees for recommendation and is
projected to be considered by the City Council in October 2020. Staff is recommending
approval of the text amendment.

Stephen Anderson and Lindsay Schube, of Gammage & Burnham, introduced
themselves as representing the applicant. Reiterating and expanding upon the staff
presentation, they highlighted the following:
• Scope of amendment. The amendment is narrowly focused to expand the
maximum floor area for dispensaries from 2,000 square feet to 5,000 square feet.
The amendment does not modify any other restrictions on medical marijuana
facilities. New facilities and those wishing to expand will require a use permit and
be subject to separation requirements such as one mile from other dispensary
facilities.

Z-TA-4-20
Page 2 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
• Response to demand. Since 2011, the number of cardholders increased from
16,000 to 245,000 which is a 1,400 percent increase. During this same time, the
number of cardholders per dispensary changed from 1 per 126 to 1 per 953
cardholders indicating the demand far exceeds the current supply.
• Demand for customer privacy and retail space. The origin of the 2,000 square
foot maximum was a conservative estimate of retail demands, but the estimate
did not account for the sheer demand for medicine, the specificity of medical
consultations, and the array of different products. Dispensaries can serve 600-
700 patients per day with 50 or more patients in a dispensary at a given time.
• Significant regulation. Medical marijuana dispensaries are highly regulated by the
State of Arizona and by the City of Phoenix. They are the only use in the
ordinance that is size restricted (except for outdoor merchandise display and
outdoor garden centers) and are required to maintain a security plan on file with
the city.

They concluded their presentation by quoting a 2018 staff report for a text amendment
which highlighted how dispensaries do not produce significant public safety issues or
detrimental effects. They then thanked the committee and invited questions.

Brent Kleinman noted the recreational marijuana ballot initiative and asked whether
5,000 square feet would be sufficient to address the increased demand. Anderson and
Shube responded that the text amendment applies only to medical marijuana
dispensaries and if the ballot initiative passes then the city will likely initiative a new text
amendment to govern non-medical dispensaries.

Aaron Searles inquired regarding how facilities would be able to expand noting the site
constraints at locations such as the dispensaries near Central Avenue and Thomas
Road. Anderson and Schube responded that the text amendment does not permit
expansions by right and would instead require existing facilities to modify their use
permit and would require new facilities to obtain a use permit which would be subject to
separation requirements. Many dispensaries are tenants rather than property owners so
it is more likely that facilities will expand through relocation rather than through physical
development.

Drew Bryck expressed concerns regarding the potential for cultivation operations to
expand in C-1 and C-2 zones. Anderson and Schube responded that cultivation is only
permitted in industrial zones and the text amendment does not change that.

Chairman Jake Adams asked if all dispensaries are not-for-profits. Anderson and
Schube responded that by law all dispensaries in Arizona must have not-for-profit
status.

Motion
Brent Kleinman motioned to approve per staff recommendation and Aaron Searles
seconded.

Vote
9-0; motion passed with members Adams, Cothron, Benjamin, Bryck, Kleinman,
Matthews, Procaccini, Ressler, and Searles in favor; none in dissent or abstention.

Z-TA-4-20
Page 3 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Staff comments regarding VPC Recommendation & Stipulations:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 14, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum net
floor area for nonprofit medical marijuana dispensaries.
VPC Recommendation
Approval, as recommended by staff.
VPC Vote
4-0

VPC DISCUSSION:

Samantha Keating provided a staff overview of the request. The text amendment
would increase the permitted size of non-profit medical marijuana dispensaries from
2,000 to 5,000 square feet. The current 2,000 square foot maximum includes the
retail area and all back-of-house operations such as storage, hallways, and
bathrooms. Staff is recommending approval of the text amendment.

Chair Massimo Sommacampagna asked if other jurisdictions also had non-profit
medical marijuana operations. Samantha Keating responded that it was a state
requirement, but the applicant could explain further.

Lindsay Schube and Nick Sobraske, of Gammage & Burnham, the applicant,
provided additional information regarding the request. The scope of the amendment
is narrowly focused. The amendment does not modify any other restrictions on
medical marijuana facilities.

Ozzie Virgil commented that he was involved at the beginning. There was to be a
certain number of dispensaries for the state. He is concerned with expansion and it
leading to other expansion efforts. In regard to patient privacy, vets currently have
people wait in cars. Is this an option for dispensaries?

Lindsay Schube explained that pre-covid the average dispensary had a waiting
room with up to 50 people. A patient was brought into a separate area for
consultation and point-of-sale. The request for 5,000 square feet is still modest and
an appropriate request.

Ozzie Virgil asked about the non-profit nature of the business. Is the organization a
charity or privately-owned? Where is the money going? How much does the state
have? Lindsay Schube responded that the current state laws require owners to be
registered as a non-profit entity. The businesses are very capital-intensive. The

Rio Vista Village Planning Committee Meeting Summary
July 14, 2020
Page 2 of 2

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
state has approximately $50 million to disperse. Ozzie Virgil responded he was not
happy that nothing was being done with the state money.

Vice Chair Steven Scharboneau asked if manufacturing was permitted and inquired
about security. Lindsay Schube explained the three different medical marijuana
categories in Phoenix, noting that dispensaries were only permitted to sell product.
Infusion and cultivation were only permitted in industrial zoning districts. In terms of
security, ADHS requires a single secure entrance into the facility. Cameras are
installed and annual reports are provided to the city.

Ozzie Virgil explained that he has been involved in discussions since the first text
amendment and was concerned with what was happening in Colorado. He asked
how many robberies had occurred and how much revenue was brought in per year.
Lindsay Schube answered that she was aware of three robberies but did not know
about revenue.

Loyd Nygaard thanked the presenters for their information and commented they had
justified their request. He was surprised with the increase in card holders and
assumed further requests in the future. He asked about how the local regulations
compared to other states. Lindsay Schube responded that Colorado allows both
recreational and medical marijuana. If recreational use passes in Arizona, the city
will be able to make new regulations for the use.

Ozzie Virgil commented that 5,000 square feet is quite large. He sees the industry
continuing to grow and he does not want to see things get out of control.

Vice Chair Steven Scharboneau commented that he heard Committee Member
Virgil’s concerns but thought that the request was not extremely large. The request is
evidence based and is a fair request.

Chair Massimo Sommacampagna echoed the Vice Chair’s comments and added
that this is one of the only retail uses with size limitations. To him, violence was not a
concern.

MOTION: Vice Chair Steven Scharboneau made a motion to approve per the staff
recommendation. The motion was seconded by Chair Massimo Sommacampagna.

VOTE: 4-0, with Committee Members Sommacampagna, Scharboneau, Nygaard and
Virgil in favor.

Discussion: Ozzie Virgil commented that he has concerns regarding the request but
is voting in favor because the additional size is needed now. He has concerns with
driving under the influence and does not want to see a free for all.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 15, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
11-5

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Nicholas Sobraske and Lindsay Schube, of Gammage & Burnham, introduced
themselves as representing the applicant. Reiterating and expanding upon the staff
presentation, they highlighted the following:
• Scope of amendment. The amendment is narrowly focused to expand the
maximum floor area for dispensaries from 2,000 square feet to 5,000 square feet.
The amendment does not modify any other restrictions on medical marijuana
facilities. New facilities and those wishing to expand will require a use permit and
be subject to separation requirements such as one mile from other dispensary
facilities.
• Response to demand. Since 2011, the number of cardholders increased from
16,000 to 245,000 which is a 1,400 percent increase. During this same time, the
number of cardholders per dispensary changed from 1 per 126 to 1 per 953
cardholders indicating the demand far exceeds the current supply.
• Demand for customer privacy and retail space. The origin of the 2,000 square
foot maximum was a conservative estimate of retail demands, but the estimate
did not account for the sheer demand for medicine, the specificity of medical

Z-TA-4-20
Page 2 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
consultations, and the array of different products. Dispensaries can serve 600-
700 patients per day with 50 or more patients in a dispensary at a given time.
• Significant regulation. Medical marijuana dispensaries are highly regulated by the
State of Arizona and by the City of Phoenix. They are the only use in the
ordinance that is size restricted (except for outdoor merchandise display and
outdoor garden centers) and are required to maintain a security plan on file with
the city.

Jason Barraza asked who is the client? Sobraske and Schube responded that they
are not representing the Arizona Dispensary Association. They stated that several
dispensaries had sought a variance for to exceed the 2,000 square foot maximum but
that this is not the right approach because a variance must prove a hardship; several
dispensaries are supportive of this text amendment which will resolve the matter fairly,
correctly, and without requiring individual variances.

Elizabeth Perez asked if it is possible to obtain a map of all dispensaries in the North
Mountain Village. Nick Klimek responded that the data is likely mapped because the
zoning ordinance requires separation requirements but that he will need to research
whether a map is available for the committee. Sobraske and Schube responded that
the information is not readily available due to potential HPPA issues.

Nadine Alauria, citing the dispensary near Metrocenter Mall, asked what the maximum
amount of medical marijuana that a cardholder can obtain daily/weekly and why all
facilities seem to have armed guards if security is not an issue. Sobraske and Schube
responded there is a maximum amount that each cardholder can obtain within any two
week period. When a cardholder makes a purchase, they scan their card which brings
up a history in the State of Arizona history which provides and up-to-date summary of
purchases which is used to enforce maximum per person allowances. Regarding
security, dispensaries are nor required to have a security guard however many do use
guards as a deterrent to bad decisions and to protect their valuable medicine.

Ryan O’Connor asked if they had considered 3,000 square feet because the more
modest increase would better align with the size of typical retail bay configurations.
Sobraske and Schube responded that they had explored many alternatives and had
landed on 5,000 square feet as a maximum which does not preclude a dispensary from
seeking a smaller size facility. Because the State of Arizona places strict requirements
on the configuration such as requiring a single point of ingress, many of the operations
also tend to occupy non-traditional retail space; therefore, the typical retail bay
configurations are less relevant to dispensary size.

Mike Krentz stated that due to privacy issues, he feels 5,0000 square feet is
reasonable especially with the required security measures.

Patricia Ford noted that she is concerns with security.

Z-TA-4-20
Page 3 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Elizabeth Perez stated that she does not believe Phoenix needs to lead on this issue
and will be voting no on the request.

Jason Barraza stated that he will be abstaining from voting on the request as he is a
lobbyist and regularly represents clients on related matters. He is not declaring a conflict
of interest because his is not aware of who the client is behind the text amendment and
therefore does not know if a conflict exists.

MOTION:

Mike Krentz motioned to approve the request per staff recommendation. Gabriel
seconded the motion.

VOTE:

11-5, motion passes with, Argiro, , Church, Ford, Jaramillo, Larson, Magallanez,
Sommacampagna, Whitney, Krentz, Wiedoff, and Carrell in favor, with Alauria,
Viedmark, Perez, Herrera, O’Connor in dissent, and Barraza in abstention.

Staff comments regarding VPC Recommendation & Stipulations:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 16, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
6-2

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Mr. David Simmons, staff, provided an overview of the request. He explained
that the text amendment will increase the permitted size of not-for-profit medical
marijuana dispensaries from 2,000 to 5,000 square feet. The current 2,000
square foot maximum includes the retail area and all back-of-house operations
such as storage, hallways, and bathrooms which leaves approximately 700 to
900 square feet for patient area. The text amendment responds to a sustained
increase in the demand for medicine, will improve patient privacy, and will align
the limitation with other jurisdictions and previous zoning approvals. The text
amendment is being presented to all of the Village Planning Committees for
recommendation and is projected to be considered by the City Council in October
2020. Staff is recommending approval of the text amendment.

Michael Merowitz and Lindsay Shube, of Gammage & Burnham, introduced
themselves as representing the applicant. Reiterating and expanding upon the
staff presentation, the amendment is narrowly focused on the maximum size and
is intended to respond to increased demand for medicine.

The representatives noted that the amendment is narrowly tailored to only
increase the maximum size of dispensaries including that all operations and
expansions will also need to secure a use permit that is subject to separation
requirements. Further, dispensaries are the only businesses regulated by the
City, the State, and required to maintain a security plan.

Medical marijuana was approved in Arizona in 2010 and there are currently 38
dispensaries in the Phoenix-areas. The Arizona Department of Health Services is
the regulating agency and maintains records based on “Community Health

Z-10-20-1
Page 2 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Analysis Areas” (CHAAs) which are also used for other public health statistics;
geographically, the CHAAs in Phoenix are closely aligned with the Urban
Villages.

The proposed size maximum is comparable to the area under-roof for a QuikTrip.
Since 2011 when the regulation was passed, the number of cardholders has
increased 1,400 percent, 1 dispensary for every 953 cardholders. Dispensaries
can serve 600-700 patients per day with 50 or more patients in a dispensary at a
given time.

In conclusion, the amendment is narrowly focused and, if approved, dispensaries
will require a use permit to expand, locate, or relocate

The current maximum of 2,000 square feet cannot accommodate the increased
patient volume, product offerings, nor privacy and social distancing.

Ms. Michelle Gardner asked if the increase in size includes the total floor area
or the actual lot size.

Ms. Shube shared that the increase in size is for the total floor area.

Chairman Joseph Grossman asked what activities are permitted.

Ms. Shube stated that the use is limited to retail sales. Sampling the product is
not permitted on the premises.

Chairman Grossman asked if an existing facility was wanting to expand, what
would the process entail.

Mr. Matthew Kenney was dropped from the meeting at 6:55, bringing quorum
down to 8.

Ms. Shube shared that the applicant would have to check separation
requirements just like a new facility and go through the required plan review and
permitting process. Also, a use permit or variance may be required as well.

Chairman Grossman asked why the need for the increase in size.

Ms. Shube shared that the primary reasoning is to provide more floor space due
to COVID and to create a sense of privacy for customers when speaking to
employees about medical conditions.

Chairman Grossman asked what would constitute a sensitive medical
discussion.

Ms. Shube stated that in order to buy from a dispensary a consumer would need
a patient card. Different product strands treat different ailments. Discussion range
depending on the medical condition. She shared that reducing seizures in
children was one example.

Z-10-20-1
Page 3 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Chairman Grossman asked how many dispensaries currently exist statewide.

Ms. Shube shared that around 140 licenses have been issued by the state.
The City of Phoenix has 38 licenses.

Chairman Grossman asked if the medical conversations have to do with various
strands of the products.

Ms. Shube stated this was indeed the case.

Mr. Mark Lewis asked if the recreation medical marijuana initiative passed,
would additional licenses be issued.

Ms. Shube shared that this will be mandated by the City of Phoenix in a different
section of the code.

Mr. Bill Levy shared that he has carried his medical marijuana card for nine
years. He stated that the dispensaries that he has been to are always very busy
and an increase in floor area would help to alleviate the overcrowding. He stated
that he is in support of this proposal.

Mr. Ozzie Virgil stated that he knows these businesses need more room.
However, 5Ksquare feet seems like a lot. He isn’t too keen on these businesses
coming back and asking for more floor area. He stated that if this were to be
granted the industry would continue to come back and ask for even more in the
future.

Chairman Grossman shared that he is opposed to this request. He stated that
the smells generated from these businesses are a nuisance. He shared that he
has concerns.

MOTION: Mr. Bill Levy motioned to approve Z-TA-4-20. Committee member
Mr. Keith Greenberg seconded the motion.

VOTE: 6-2, motion to approve passed, with Committee Members Gardner,
Greenberg, Levy, Lewis, Romero and Virgil in favor. Committee members
Grossman, and O’Brien in opposition.

Staff comments regarding VPC Recommendation & Stipulations:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 21, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum net
floor area for nonprofit medical marijuana dispensaries.

VPC Recommendation
Approval, per the staff recommendation.
VPC Vote
6-0-1

VPC DISCUSSION & RECOMMENDATION:

At 7:23pm, Mr. Cardenas recused himself and left the virtual meeting for the rest of
the evening, bringing the quorum to 6 members.

Mr. Bojorquez, staff, introduced himself and provided a presentation on the
proposed text amendment case. Staff recommends approval, per the Exhibit A
language included in the staff report.

Mr. Nicholas Sobraske, with Gammage and Burnham, introduced himself and went
over the current Zoning Ordinance requirements pertaining to medical marijuana
facilities.

Ms. Schube provided a description of a dispensary’s floor area and discussed a
floor area comparison table with different uses.

Mr. Sobraske further discussed the dispensary’s size and made a comparison with
a Subway shop’s floor area.

Ms. Schube described the need for this request as it pertains to demand and how
the request would improve patient privacy. She explained an increase in medicine
variety over the years and discussed a comparison table on size limitations for

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
medical marijuana facilities with other jurisdictions. She described the zoning
requirements for medical marijuana facilities, adding that there were three
dispensaries in the Estrella Village CHAA and concluded her presentation
requesting a recommendation of approval.

Chairwoman Perez asked if all medical marijuana dispensaries were considered
non-profit entities and who is the client that Ms. Schube is representing.

Ms. Schube responded that yes, medical marijuana dispensaries are non-profit
entities. She is representing three clients who have not been disclosed and named
several companies that she is not representing.

Chairwoman Perez opened the public comment portion of this agenda item, but no
requests to comment from the public were submitted.
MOTION

Ms. Cartwright made a motion to approve the item per the staff recommendation.
Ms. Ademolu seconded the motion.

VOTE:

6-0-1 Motion passed; Member Cardenas abstained.

STAFF COMMENTS REGARDING VPC RECOMMENDATION:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 27, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum net
floor area for nonprofit medical marijuana dispensaries.
VPC Recommendation
Approval, per the staff recommendation
VPC Vote
14-0

VPC DISCUSSION:

Mr. Bojorquez, staff, introduced himself and provided a presentation on the
proposed text amendment case. Staff recommends approval, per the Exhibit A
language included in the staff report.

Ms. Lindsay Schube, with Gammage and Burnham, introduced herself as the
applicant and went over a presentation regarding the proposed text amendment.
She discussed the increase in floor area requested from 2,000 square feet to 5,000
square feet and the reasons for this request. She added that her original application
request was to increase the floor space to 6,000 square feet, but this was amended
to 5,000 square feet. She also discussed the Zoning Ordinance requirements
pertaining to medical marijuana facilities.

Ms. Schube described the increase in medicine variety over the years and
discussed a comparison table on size limitations for medical marijuana facilities with
other jurisdictions. She described the zoning requirements for medical marijuana
facilities, adding that there is one dispensary in the Ahwatukee Foothills Village
boundaries within unincorporated Maricopa County and concluded her presentation
requesting a recommendation of approval.

At 7:10pm, Ms. Elena Pritchette joined the meeting, bringing the quorum to 14
members.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Mr. Michael Hinz asked on the number of medical marijuana dispensaries across
the City of Phoenix and if the number of these facilities could be increased.

Mr. Maerowitz responded that there are presently 38 dispensaries across the city.

Ms. Schube added that the number of medical marijuana dispensary licenses is
controlled by the State of Arizona and that there is presently a cap on licenses.

Chairman Elliott opened the public comment portion of this agenda item.

Ms. Sandy Grunow, resident and member of the Phoenix Mid-Century Modern
Neighborhood Association, introduced herself and stated that she was in opposition
to this text amendment request. Her opposition was due to the percentage of
increased floor area while there is no concurrent increase in the protections for
neighborhoods and other protected uses. She discussed the zoning ordinance
separation requirements for medical marijuana facilities and the importance to
enhance safety zones around neighborhoods.

MOTION

Mr. Max Masel made a motion to approve the item per the staff recommendation.
Mr. Mike Schiller seconded the motion.

VOTE:

14-0 Motion passed; no members abstained or dissented.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
July 28, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
7-5-0

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Applicant Presentation

Z-TA-4-20
Page 2 of 4

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
did not account for the sheer demand for medicine, the specificity of medical
consultations, and the array of different products. Dispensaries can serve 600-
700 patients per day with 50 or more patients in a dispensary at a given time.
• Significant regulation. Medical marijuana dispensaries are highly regulated by the
State of Arizona and by the City of Phoenix. They are the only use in the
ordinance that is size restricted (except for outdoor merchandise display and
outdoor garden centers) and are required to maintain a security plan on file with
the city.

Questions from the Committee

Tracey Adams inquired regarding the source and validity of the statistics cited in the
applicant presentations, expressed skepticism regarding the argument regarding patient
privacy as rationale for the request, and cited a Colorado Study which identified
marijuana dispensaries as increasing crime up to 17 percent.
• Schube and Sobraske responded that the statistics come from their three
clients and explained the operational characteristics of a dispensary wherein an
individual is issued a medical marijuana card from a physician and then can
access a dispensary where obtain a medicinal product with the assistance of an
advisor. Unlike a Walgreens, a patient is not given a prescription for a specific
product but is instead granted access to dispensaries where they can seek
guidance from an advisor. They noted the existence of the Colorado study,
however, Arizona did not see the same trend, likely due to the stringent
oversight, reinforced by the findings of city staff and local law enforcement which
indicates that crime actually decreased due to the numbers of camera.

Keith Ender asked who is requesting the text amendment and whether the sales
volume justify the need for the expansions. In traditional businesses, such as CVS, all
expansions are justified by studies that examine sales volume and market trends.
• Schube and Sobraske responded that they are not disclosing their clients but
that the city has seen projects requesting variances to justify expansions but that
a text amendment is the appropriate way to examine the issue fairly across the
industry within the City of Phoenix. Regarding whether a thorough-analysis has
been completed in the same way it would be conducted by the likes CVS, they
noted that the industry is comprised mostly of local businesses and is therefore
does not have such a corporate culture; however, the rapid increase in the
number of cardholders of 1600% compared to the relatively stable number of
dispensaries demonstrates strong and sustained demand.

Keith Ender asked if the industry is cash-only and whether it is possible to increase
separation distances required by the ordinance.
• Schube and Sobraske responded that while the industry was mostly cash due
to a variety of reasons, many operations accept alternative platforms such as
Venmo and that many have relationships with lending institutions. Regarding
changing separation distances, the Phoenix Zoning Ordinance is already very

Z-TA-4-20
Page 3 of 4

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
stringent with regard to separation requirements restricting the placement of
facilities from like-facilities, from churches, schools, and residential areas.

Jonathan Ammon opined on the potential impact of the Board of Adjustment, a quasi-
judicial body, approving expansions for certain facilities without being able to
demonstrate a hardship or unique condition. He asked whether there would be a
precedent for allowing expansions if this text amendment were to fail.
• Schube and Sobraske responded that the correct way of handling the issue is
through a text amendment and that staff would have likely initiated the request if
they had sufficient time. If the text amendment fails, they anticipate that individual
operators will begin initiating variance requests.
• Jonathan Ammon noted that the Board of Adjustment is quasi-judicial which
means they must look at the precedent of past decisions. He reinforced that the
City should be a welcoming and predictable place for investment and
development and that this is an opportunity for the Village Planning Committee to
support a streamlined process and efficient government

Public Comments

Mary Crozier introduced herself as a member of the North Central Phoenix
Neighborhood Association and stated that there are three dispensaries within walking or
bicycling of her neighborhood and that she is concerned with issues such as crime,
negative impacts on the areas, and parking. Tempe recently increased the maximum
size of dispensaries but, with the increase also increased the separation requirements;
Chandler and Scottsdale have not followed suit. She asked why it is reasonable to
increase the size of a detrimental use that stresses neighborhoods, schools, and
churches.

John Hathaway introduced himself as a statistician and stated that it is ridiculous to
evaluate this request as case with all benefit and no risk; the associated risk is
documented by the Colorado study and acknowledged by the industry which requires
security cameras and often places security guards on patrol outside facilities. The
increased risk, acknowledged by the above points, should come with measures to
mitigate the increased risk inherent with the size increase in pursuit of homeostasis.

Mary Mulligan agreed with the comments made by John Hathaway and noted that she
is confused by the applicant’s insinuation that there is no risk associated with these
operations. Further, she does not appreciate the threat that if the text amendment fails
that the Board of Adjustment will be forced to approve all variances. If approved, the
increased size should come with increased separation distances.

Sandy Grunow stated that the request is to increase the maximum size by 250 percent
and that the separation distances should be increased proportionately. The presence of
cameras and security guards and the existence of regulating provisions such as
separation distances acknowledge the inherent risks in a dispensary use. The required
separation distances provide a safety zone from schools and neighborhoods so
individuals will be safe when the bullets start flying.

Applicant Response

Z-TA-4-20
Page 4 of 4

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Lindsay Schube addressed the committee to respond to the public comments.
• Regarding crime and negative impacts, all dispensaries are required to renew
their use permits annually including a review of crime incident reports; law
enforcement agencies in the region have reported that it is very rare for these
uses to increase crime and often crime actually decreases due to the additional
police presence.
• Regarding separation requirements, the City of Phoenix currently has very
stringent separation requirements and the communities referenced that
increased size and separation in the same text amendment likely did so to bring
their requirements closer to that already required by Phoenix.
• Regarding comments about the industry being cash-only, most dispensaries
accept alternatives to cash such as Venmo and most operators now have
relationships with lenders.

At this time, Tanairi Ochoa-Martinez left the meeting dropping the quorum to 12
members.

Floor Closed: Discussion, Motion, and Vote

MOTION:
Jonathan Ammon motioned to approve the request per the staff recommendation.
Christian Solorio seconded the motion.

DISCUSSION:

Hal Becker asked how many times a cardholder can visit a dispensary per week.
Lindsay Schube responded that there is a maximum allowance that a cardholder can
purchase in a rolling two week period and that some patients visit multiple times every
two weeks for a fresher product.

Jak Keyser noted that the separation requirement is lower for neighborhoods because
most commercial zoned parcels are surrounded by residential zones and it is illegal to
zone-out a particular use. The increased size will bring the use into consistency with
some similar uses such as liquor stores and compounding pharmacies which offer
additional retail in addition to the pharmacy area.

VOTE: 7-5-0, motion passes with members LeBlanc, Solorio, Ammon, Krietor, Keyser,
Sanchez, and Shore in favor; D. Smith, Fitzgerald, Ender, Becker, T. Smith in dissent;
and none in abstention.

Staff comments regarding VPC Recommendation & Stipulations:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
August 3, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
9-2

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

3 speaker cards were submitted in opposition, wishing to speak

Mr. David Simmons, staff, provided an overview of the request. He explained
that the text amendment will increase the permitted size of not-for-profit medical
marijuana dispensaries from 2,000 to 5,000 square feet. The current 2,000
square foot maximum includes the retail area and all back-of-house operations
such as storage, hallways, and bathrooms which leaves approximately 700 to
900 square feet for patient area. The text amendment responds to a sustained
increase in the demand for medicine, will improve patient privacy, and will align
the limitation with other jurisdictions and previous zoning approvals. The text
amendment is being presented to all of the Village Planning Committees for
recommendation and is projected to be considered by the City Council in
October 2020. Staff is recommending approval of the text amendment.

Mr. Robert Goodhue asked why the use was limited to 2,000 square feet
initially.

Mr. Simmons stated that he did not know the exact reasoning behind the floor
area restrictions and will have to look into this.

Mr. Goodhue shared that he thinks the floor area restriction was put into place
as a discouragement.

Mr. Alex Popovic stated that this industry is not going anywhere. He shared that
he is not opposed to the request to increase floor area.

Z-TA-4-20
Page 2 of 4

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Chairwoman Jennifer Hall asked staff how many variances have been granted
requesting an increase in floor area.

Mr. Simmons stated that he did not know the exact number but would look into
this.

Medical marijuana was approved in Arizona in 2010 and there are currently 38
dispensaries in the Phoenix-area. The Arizona Department of Health Services is
the regulating agency and maintains records based on “Community Health
Analysis Areas” (CHAAs) which are also used for other public health statistics;
geographically, the CHAAs in Phoenix are closely aligned with the urban villages.

The proposed size maximum is comparable to the area under-roof for a QuikTrip.
Since 2011 when the regulation was passed, the number of cardholders has
increased 1,400 percent, one dispensary for every 953 cardholders.
Dispensaries can serve 600-700 patients per day with 50 or more patients in a
dispensary at a given time.

In conclusion, the amendment is narrowly focused and, if approved, dispensaries
will require a use permit to expand, locate, or relocate.

The current maximum of 2,000 square feet cannot accommodate the increased
patient volume, product offerings, nor privacy and social distancing.

Mr. Robert Goodhue stated that the applicant can’t compare this use to a
Walgreens or CVS. He shared that the current code requirements of 2,000
square feet of floor area is sufficient for a use such as this, therefore, there is no
need for a change to the code.

Public Comment:

Mr. John Hathaway stated that when a business proposes something like this a
cost benefit analysis should be conducted highlighting cost and benefits to
surrounding neighbors. He has concerns about an increase in crime and an
increase in traffic volumes. He shared that most medical marijuana businesses
have armed guards. He also stated that the applicant failed to mention

Z-TA-4-20
Page 3 of 4

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
separation requirements. He shared that he is not in favor and asked that the
applicant come back with a cost benefit analysis.

Ms. Mary Mulligan shared that she agrees with Mr. Goodhue in regard to
comparing this use to other retail uses like Walgreens, etc. She also stated that
the applicant has consistently failed to mention separation requirements for
medical marijuana facilities.

Ms. Sandy Grunow asked why separation requirements are not included in the
amendment language. She went over existing separation requirements in the
code. She voiced concerns about increases in crime. She also mentioned that
other cities have increased separation requirements with the increase in size
requests. She asked Ms. Shube to reveal who she is representing. She stated
that she is opposed to this request.

Applicants Response:

Ms. Lindsay Schube shared crime statistics and crime calls to the police
departments in various municipalities. She highlighted the City of Tempe’s crime
statistics that revealed that medical marijuana facilities have a much lower crime
rate than other types of retail businesses. She highlighted that the lower crime
rates probably are a result of having security guards located at the medical
marijuana facilities because they are a deterrent. She also shared that this
application was submitted prior to the COVID epidemic and the request is not
taking advantage of a global pandemic in order to gain square footage.

Mr. Michael Merowitz explained that just because the square footage of a
building is increased for this specific use does not mean the separation
requirements are changing. He iterated that separation requirements stay the
same. He shared that if an existing medical marijuana facility wants to expand
their tenant space beyond what is currently required, upon the approval of this
request, then the business will have to request yet another use permit and meet
separation requirements. This request, by no means, is meant to adjust
separation requirements for medical marijuana establishments.

Ms. Sandy Grunow stated that the Federal Government views marijuana as an
illegal drug so customers can’t use their credit/debit cards if they are with a
Federally insured bank. Therefore, these businesses deal in a large amount of
cash, which makes them more susceptible to crime.

Mr. Schube shared that medical marijuana businesses do accept credit and
debit cards from Federally insured banks.

Mr. Alex Popovic stated they the applicant is not requesting a use that is not
already allowed by code.

Mr. Joe Lesher stated that medical marijuana has a stigma to it to some in the
community. However, it is not the committee’s responsibility to judge marijuana.
He stated that he is in support of the request.

Z-TA-4-20
Page 4 of 4

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Mr. Bob Enright shared that he has worked with four medical marijuana
businesses and they do need larger cash handling rooms that can accommodate
accountant employees. However, many of these types of businesses are moving
to delivery service so there may not be a need to increase the floor areas. For
this reason, he is not in support of the request.

Mr. Robert Goodhue stated that the existing code requirement of 2,000 square
feet is adequate for this type of use and that a larger floor area is an old way of
looking at things in a post COVID world.

Chairwoman Jennifer Hall shared that she deals with medical marijuana
facilities as part of her profession. She stated that it is hard for operators of these
businesses to find locations limited to 2,000 square feet coupled with separation
requirements. She believes that current regulations are too restrictive. She
shared that crime does not increase with these types of businesses. She is in
support of the request.

MOTION:

Mr. Alex Popovic made a motion to recommend approval of Text Amendment
Case No. Z-TA-4-20 per the staff recommendation.

Mr. Alan Sparks seconded the motion.

VOTE:

9-2 with committee members Hall, Belous, Cantor, Lesher, Popovic, Severs,
Sparks, Stewart and Ulibarri in favor. Committee members Enright and Goodhue
opposed.

Staff comments regarding VPC Recommendation & Stipulations:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
August 4, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
7-0

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Kristi Trisko, staff, explained that the text amendment will increase the permitted size
of not-for-profit medical marijuana dispensaries from 2,000 to 5,000 square feet. The
current 2,000 square foot maximum includes the retail area and all back-of-house
operations such as storage, hallways, and bathrooms which leaves approximately 700
to 900 square feet for patient area. The text amendment responds to a sustained
increase in the demand for medicine, will improve patient privacy, and will align the
limitation with other jurisdictions and previous zoning approvals. The text amendment is
being presented to all of the Village Planning Committees for recommendation and is
projected to be considered by the City Council in October 2020. Staff is recommending
approval of the text amendment. There were no Commission questions of staff.

Michael Maerowitz and Nicholas Sobraske, of Gammage & Burnham, introduced
themselves as representing the applicant. Reiterating and expanding upon the staff
presentation, they highlighted the following:
 Scope of amendment. The amendment is narrowly focused to expand the
maximum floor area for dispensaries from 2,000 square feet to 5,000 square feet.
The amendment does not modify any other restrictions on medical marijuana
facilities. New facilities and those wishing to expand will require a use permit and
be subject to separation requirements such as one mile from other dispensary
facilities.
 Response to demand. Since 2011, the number of cardholders increased from
16,000 to 245,000 which is a 1,400 percent increase. During this same time, the
number of cardholders per dispensary changed from 1 per 126 to 1 per 953
cardholders indicating the demand far exceeds the current supply.
 Demand for customer privacy and retail space. The origin of the 2,000 square
foot maximum was a conservative estimate of retail demands, but the estimate
did not account for the sheer demand for medicine, the specificity of medical

Z-TA-4-20
Page 2 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
consultations, and the array of different products. Dispensaries can serve 600-
700 patients per day with 50 or more patients in a dispensary at a given time.
 Significant regulation. Medical marijuana dispensaries are highly regulated by the
State of Arizona and by the City of Phoenix. They are the only use in the
ordinance that is size restricted (except for outdoor merchandise display and
outdoor garden centers) and are required to maintain a security plan on file with
the city.

Discussion:

Rick Nowell asked what the background was for the previous dispensary cases and if
they might also have been to make those requests more consistent with other
jurisdictions.

Michael Maerowitz was not aware of the details of these cases.

Nicholas Sobraske shared that the cases were both requesting a variance to obtain a
larger building.

Rick Nowell asked if the other jurisdictions listed in the presentation have a working
dispensary ordinance.

Michael Maerowitz shared that all the jurisdictions, shown in the presentation, have
ordinances.

Steve Bowser asked if all dispensary uses that request a permit or an expansion need
to go through a public process and if there are limitations on dispensaries state-wide?

Michael Maerowitz stated, yes, all other jurisdictions shown in the presentation, have
ordinances and yes, the state Health Services runs the licensing program for
dispensaries and the cap for total state licenses is around 150 for the entire state.

Rick Powell asked if the Governor had closed down dispensaries during the Covid 19
crisis.

Michael Maerowitz shared that dispensaries are considered an emergency service but
have had to manage with the same health protocols that we have encountered in all
other health businesses state-wide.

Jill Hankins asked if dispensaries must be in standalone buildings or if they can be part
of a suite of businesses.

Michael Maerowitz shared that dispensaries need to be in an enclosed building. No
other regulations are listed.

Z-TA-4-20
Page 3 of 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Steve Bowser wanted to confirm that dispensary uses are not allowed in C-1.

Michael Maerowitz stated that they are not allowed in C-1.

Rick Nowell asked what percentage of dispensaries are located in standalone buildings
are in a suite.

Michael Maerowitz stated that he did not know.

Public Comment:

John Hathaway shared that the maximum size of a dispensary is one of many issues
that should be reviewed. He is not opposed to increasing the size of dispensaries, but
his recommendation would be to deny the application at hand and ask staff to research
the entire ordinance and then make all necessary changes in one edit.

Sandy Grunow shared via a statement read by Mary Mulligan that the expansion of
dispensaries is growing by 150 percent and that the distancing of neighboring uses
should be proportionate. She recommended that the expansion be denied until other
edits to the ordinance can be accommodated.

Michael Maerowitz responded to the resident’s comments by stating that all
dispensaries require an annual status report which helps assure neighbors on a yearly
basis that there are no concerns.

Lou Lagrave shared that dispensaries were looked at in 2010 and that he didn’t feel
like we needed to research the entire ordinance at this time.

Motion
Louis Lagrave motioned to approve per staff recommendation and Rick Nowell
seconded.

Vote
7-0; motion passed with members Dickson, Hankins, Nowell, Powell, Younger, Lagrave,
and Bowser in favor; none in dissent or abstention.

Staff comments regarding VPC Recommendation & Stipulations:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
August 4, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum net
floor area for nonprofit medical marijuana dispensaries.
VPC Recommendation
Approval, per the staff recommendation
VPC Vote
18-0

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Ms. Sofia Mastikhina, staff, provided an overview of the request. She explained that
the text amendment will increase the permitted size of not-for-profit medical marijuana
dispensaries from 2,000 to 5,000 square feet. The current 2,000 square foot maximum
includes the retail area and all back-of-house operations such as storage, hallways, and
bathrooms which leaves approximately 700 to 900 square feet for patient area. The text
amendment responds to a sustained increase in the demand for medicine, will improve
patient privacy, and will align the limitation with other jurisdictions and previous zoning
approvals. The text amendment is being presented to all Village Planning Committees
for recommendation and is projected to be considered by the City Council in October
2020. Staff is recommending approval of the text amendment, per Exhibit A of the staff
report.

Ms. Lindsay Schube and Mr. Stephen Anderson introduced themselves as the
applicants’ representatives. Mr. Anderson reiterated and expanded upon staff’s
presentation, stating that this text amendment is a direct response to the increased
demand for medical marijuana, it will improve patient privacy so that patients can be
spaced out from each other when discussing their medical needs, and it will better align
the City of Phoenix’s size limitation with what is permitted in other local jurisdictions. He
stressed that no other changes are proposed to the use, separation, or operation
requirements of medical marijuana dispensaries. He provided an overview of the
existing regulations regarding medical marijuana in the City of Phoenix, explaining that
dispensaries were added as a permitted use into the Zoning Ordinance in 2010, they
are only permitted in the C-2, C-3, A-1 and A-2 zoning districts, they are always
required to obtain a Use Permit through the hearing process, and they are the only use
in the Zoning Ordinance that is size restricted. He then noted that the current 2,000-
square-foot size limitation includes all under-roof floor area, which includes ancillary
spaces such as storage rooms, bathrooms, hallways, and so on. Even with an efficient

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
floor plan, this leaves 700-900 square feet for the patient consultant area. He added that
the COVID-19 pandemic has changed how medical marijuana dispensaries operate. He
explained that, to follow social distancing guidelines, the dispensaries can’t admit as
many cardholders into their store, and individuals have been required to line up outside
of the dispensaries, which is another reason to allow for a larger square footage.

Ms. Schube compared the floor area sizes of typical retail stores, which range from a
1,200-square-foot Subway restaurant to a 180,000-square-foot Walmart Supercenter, to
illustrate the need for more floor area in dispensaries to allow for ample spacing
between patients. She reiterated that there has been a significant increase in demand
for medical marijuana dispensaries. Since 2011, the first year of the medical marijuana
program, there has been an increase of over 1,400 percent of medical marijuana card
holders, yet the 2,000-square-foot size limitation for dispensaries has remained the
same. Phoenix dispensaries are unable to effectively treat such an increase in demand
with the current size limitations. She then presented an overview of the size limitations
in other jurisdictions in Arizona, noting that many of them do not have a maximum size
limitation at all, and reminded the committee that the text amendment proposes a 5,000-
square-foot maximum, which is similar to the City of Tempe’s regulations. She then
explained to the committee that this text amendment will not result in all dispensaries in
Phoenix automatically increasing in size. As each dispensary was required to obtain a
Use Permit to operate, they are also bound to a specific legal description that outlines
the boundaries of their floor areas so, to increase the floor area, they will be required to
obtain a new Use Permit and go through a public hearing process. She concluded the
presentation by stating that staff’s recommendation for this text amendment is for
approval, and that all the Village Planning Committees that have heard this request so
far have approved it.

Ms. Barry Paceley asked what percentage within a dispensary is general retail, and
what percentage is akin to a pharmacy. Ms. Schube replied that there are 38
dispensaries in Phoenix, and they function similarly to a hybrid between a doctor’s office
and a pharmacy. Prior to entering a dispensary, individuals must show that they have a
patient card. Once inside, they wait in a lobby until they are called into the main area of
the store to be assisted by a patient consultant. Instead of filling a prescription for a
specific type of medication, as one would at a pharmacy, cardholders have a certain
amount of product that they are allowed to purchase every two weeks. The patient
consultant helps them determine which products are best for them, as there are many
different forms of medical marijuana available. Mr. Paceley asked if a cardholder can
go to multiple dispensaries in one day and purchase more than the permitted amount of
that two-week period. Ms. Schube explained that every dispensary is connected to the
Arizona Department of Health Services database, where every cardholders’ purchases
are inputted and tracked, so any dispensary would be able to see if a cardholder has
already reached their permitted limit. Mr. Paceley asked if the 1,400 percent increase in
number of medical marijuana cardholders was for the city of Phoenix or the entire state.
Ms. Schube replied that it is for the entire state, and that, due to patient privacy rights,
she does not know how many of those are located within the city of Phoenix.

Mr. Greg Abbott asked if the proposed 5,000 square feet includes all under-roof square
footage or if it is a net value. Mr. Anderson replied yes, it includes all the space within a
dispensary, including hallways, bathrooms, mechanical rooms, and storage areas, in
addition to the sales floor.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Public Comment

Mr. Wally Gram expressed his opposition to the arbitrary expansion of dispensaries. He
explained that there is not enough data to support such a request, and that Phoenix
should not pass a new regulation simply to be more aligned with other jurisdictions. He
then asked who the Gammage & Burnham attorneys are representing in this case.

Ms. Sandy Grunow, with the Phoenix Midcentury Modern Neighborhood Association,
asked why the text amendment does not include an expansion of the distancing
requirements as well as the floor area. She explained that medical marijuana
dispensaries are required to have an armed security guard at their doors, while places
such as banks do not, and that criminals target places with cash sales. A larger distance
between dispensaries and schools, places of worship, or residential areas, would
ensure a larger distance from stray bullets and criminal activities. She urged the
Committee to vote against this proposal.

Mr. John Hathaway expressed his concern with taking a piece-meal approach to
updating the city’s regulations regarding medical marijuana dispensaries. He explained
that the permitted size of a dispensary is only one small part of a host of other
regulations, and that he would rather see the city take a holistic approach to update all
the standards and regulations at once rather than tackling each regulation individually
over a series of separate text amendments.

Ms. Schube addressed the concerns voiced by the members of the public present. In
regard to this being an arbitrary request, she stated that there are, in fact, numbers to
support this proposed expansion, as the number of medical marijuana cardholders has
grown significantly over the years and the current 2,000 square-foot spaces simply
aren’t enough to support this increase in patients. She then addressed the concern over
criminal activity, explaining that part of the regulatory process for medical marijuana
dispensaries includes an annual review of all police and security activity, which typically
include false alarms and lost personal belongings, and not violent or criminal activities.
As this has been proven to be a safe type of business, they did not deem it necessary to
adjust the spacing requirements in the request. She then explained that the city of
Phoenix created a comprehensive medical marijuana ordinance in 2010, which
addressed all the regulatory standards for all types of medical marijuana facilities at
once. Since then, as demands have changed, amendments have been made to this
ordinance, and will continue to be made, much like with any other regulation in a city
ordinance. Finally, she stated that her firm is representing three dispensaries that are
located in the city of Phoenix, but that they have not yet disclosed who they are during
this process. She assured that they are not representing the Arizona Dispensary
Association or the Marijuana Industry Trade Association.

MOTION:
Vice Chair William Fischbach made a motion to approve per the staff
recommendation. Ms. Dawn Augusta seconded the motion.

VOTE:
18-0, Motion passes with Committee Members Swart, Fischbach, Abbott, Augusta,
Beckerleg Thraen, Crawford, Eichelkraut, Garcia, Grace, McKee, Miller, Nye, O’Malley,
Paceley, Rush, Scher, Sharaby and Tribken in favor.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
STAFF COMMENTS REGARDING VPC RECOMMENDATION & STIPULATIONS:

Staff has no comments.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
August 10, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval, per the staff recommendation
VPC Vote
8-0

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Mr. Stephen Anderson and Mr. Michael Maerowitz introduced themselves as the
applicants’ representatives. Mr. Anderson reiterated and expanded upon staff’s
presentation, stating that this text amendment is a direct response to the increased
demand for medical marijuana, it will improve patient privacy so that patients can be
spaced out from each other when discussing their medical needs, and it will better align
the City of Phoenix’s size limitation with what is permitted in other local jurisdictions. He
stressed that no other changes are proposed to the use, separation, or operation
requirements of medical marijuana dispensaries. He provided an overview of the
existing regulations regarding medical marijuana in the City of Phoenix, explaining that
dispensaries were added as a permitted use into the Zoning Ordinance in 2010, they
are only permitted in the C-2, C-3, A-1 and A-2 zoning districts, they are always
required to obtain a Use Permit through the hearing process, and they are the only use
in the Zoning Ordinance that is size restricted. He then noted that the current 2,000-
square-foot size limitation includes all under-roof floor area, which includes ancillary
spaces such as storage rooms, bathrooms, hallways, and so on. Even with an efficient
floor plan, this leaves 700-900 square feet for the patient consultant area.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Mr. Maerowitz compared the floor area sizes of typical retail stores, which range from a
1,200-square-foot Subway restaurant to a 180,000-square-foot Walmart Supercenter, to
illustrate the need for more floor area in dispensaries to allow for ample spacing
between patients. He reiterated that there has been a significant increase in demand for
medical marijuana dispensaries. Since 2011, the first year of the medical marijuana
program, there has been an increase of over 1,400 percent of medical marijuana card
holders, yet the 2,000-square-foot size limitation for dispensaries has remained the
same. Phoenix dispensaries are unable to effectively treat such an increase in demand
with the current size limitations. He then presented an overview of the size limitations in
other jurisdictions in Arizona, noting that many of them do not have a maximum size
limitation at all, and reminded the committee that the text amendment proposes a 5,000-
square-foot maximum, which is similar to the City of Tempe’s regulations. He also noted
that the initial request was for 6,000 square feet to model what was approved in the City
of Glendale, but that, after several meetings with city staff and with the City Council
officer, it was determined that 5,000 square feet would be more appropriate for Phoenix.
He then explained to the committee that this text amendment will not result in all
dispensaries in Phoenix automatically increasing in size. As each dispensary was
required to obtain a Use Permit to operate, they are also bound to a specific legal
description that outlines the boundaries of their floor areas so, to increase the floor area,
they will be required to obtain a new Use Permit and go through a public hearing
process.

Mr. Anderson noted that the only people permitted to enter the dispensaries are
cardholders and added that the COVID-19 pandemic has changed how medical
marijuana dispensaries operate. He explained that, to follow social distancing
guidelines, the dispensaries can’t admit as many cardholders into their store, and
individuals have been required to line up outside of the dispensaries, which is another
reason to allow for a larger square footage. He concluded the presentation by stating
that staff’s recommendation for this text amendment is for approval, and that all the
Village Planning Committees that have heard this request so far have approved it.

Ms. Cinthia Estela asked if the large square footage could result in more employment
opportunities. Mr. Anderson replied that this is certainly a possibility and explained that
the medical marijuana business has expanded in that there are now many ways to
deliver the medicine, from edibles to tinctures. This means that each client visit
potentially lasts much longer and having more dispensary agents on the floor to help
cardholders would be beneficial.

Public Comment

Mr. Phil Hertel stated that this text amendment is unfair to existing medical marijuana
dispensary business owners, as they will automatically be at a disadvantage if they
don’t have the opportunity to expand their operations.

MOTION
Ms. Jennifer Rouse made a motion to approve per the staff recommendation. Ms.
Stephanie Hurd seconded the motion.

VOTE
8-0 Motion passed, with committee members Abegg, Estela, Flunoy, Hurd, Ortega,
Rouse, Glass, and Branscomb in favor.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

STAFF COMMENTS REGARDING VPC RECOMMENDATION & STIPULATIONS:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Chris Colyer recused himself for this item, bringing quorum to 15.

Sarah Stockham, staff, explained that the text amendment will increase the permitted
size of not-for-profit medical marijuana dispensaries from 2,000 to 5,000 square feet.
The current 2,000 square foot maximum includes the retail area and all back-of-house
operations such as storage, hallways, and bathrooms which leaves approximately 700
to 900 square feet for patient area. The text amendment responds to a sustained
increase in the demand for medicine, will improve patient privacy, and will align the
limitation with other jurisdictions and previous zoning approvals. The text amendment is
being presented to all of the Village Planning Committees for recommendation and is
projected to be considered by the City Council in October 2020. Staff is recommending
approval of the text amendment.

Lindsay Schube and Nick Sobraske, of Gammage & Burnham, representing the
applicant, reiterated and expanded upon the staff presentation, highlighting the
following:

Scope of amendment: The amendment is narrowly focused to expand the maximum
floor area for dispensaries from 2,000 square feet to 5,000 square feet. The
amendment does not modify any other restrictions on medical marijuana facilities. New
facilities and those wishing to expand will require a use permit and be subject to
separation requirements such as one mile from other dispensary facilities. Ms. Schube
quoted a 2018 staff report for a text amendment which highlighted how dispensaries do
not produce significant public safety issues or detrimental effects

Central City Village Planning Committee
Meeting Summary
Z-TA-4-20
August 10, 2020
Page 2

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Response to demand: Since 2011, the number of cardholders increased from 16,000 to
245,000 which is a 1,400 percent increase. During this same time, the number of
cardholders per dispensary changed from 1 per 126 to 1 per 953 cardholders indicating
the demand far exceeds the current supply.

Demand for customer privacy and retail space: The origin of the 2,000 square foot
maximum was a conservative estimate of retail demands, but the estimate did not
account for the sheer demand for medicine, the specificity of medical consultations,
and the array of different products. Dispensaries can serve 600-700 patients per day
with 50 or more patients in a dispensary at a given time.

Ms. Schube concluded her presentation by stating that to date they had received
recommendations for approval from all Villages and thanked the committee and invited
questions.

Chair Rachel Frazier Johnson asked how many consultations take place at once in
the retail area. Ms. Schube replied that most dispensaries have a one-on-one space for
consultations and see 12-14 patients at once. She expanded that dispensaries see
approximately 600-700 patients a day and have wait times up to 90 minutes to enter
the facilities. She added that some dispensaries have been working on online ordering
and curbside pickup.

Dana Johnson stated that dispensaries are highly regulated and asked staff about
how the text amendment was assigned its number. Ms. Stockham replied that TA-3-20
was an entered as an error, so the next available number was TA-4-20.

Eva Olivas concurred with Mr. Johnson regarding the level of regulation on
dispensaries and asked what reviews are done for dispensaries, does this proposal
impact parking requirements, how will it be determined if a dispensary can expand, and
stated that while this request will improve patient privacy, neighborhoods also want
privacy. Ms. Schube responded that there is an annual review for the use permit where
reports from the Police Department and Neighborhood Services Department are
reviewed and notices are sent out. She continued that any expansion would impact
parking requirements and will have to obtain building permit approval, and some
dispensaries might not be able to expand given the requirements of the Building Code
and distances to protected uses.

Sean Sweat commented that he would have preferred that this request be for no
maximum similar to other jurisdictions and would be voting to recommend approval.

Public Comment:
None.

Motion:

Central City Village Planning Committee
Meeting Summary
Z-TA-4-20
August 10, 2020
Page 3

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882
Dana Johnson motioned to recommend approval per the staff recommendation.
Darlene Martinez seconded the motion.

Discussion:
None.

Vote:
15-0, Motion to approve passed, with Committee Members R. Johnson, Starks, Burns,
Dubasik, Gaona, Johnson, Langley, Lockhart, Martinez, Olivas, Panetta, Rainey,
Sonoskey, Sweat and Uss and in favor.

STAFF COMMENTS REGARDING VPC RECOMMENDATION & STIPULATIONS:

None.

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
August 11, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum net
floor area for nonprofit medical marijuana dispensaries.
VPC Recommendation
Approve per staff recommendation
VPC Vote
11-2 Motion passes; with members Aguilar, Alvarez,
Brownell, Busching, Coleman, Daniels, Holmerud, Monge
Kotake, Shepard, Tunning and Trites in favor; Members
Larios and Said in dissent; none in abstention.

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Mr. Bojorquez, staff, provided a presentation on the proposed text amendment
case. Staff recommends approval, as presented in the staff report. He then
invited the applicant to provide their presentation with the committee.

Ms. Lindsay Schube, with Gammage and Burnham, introduced herself as the
applicant and went over a presentation regarding the proposed text amendment.
She discussed the increase in floor area requested from 2,000 square feet to
5,000 square feet and the reasons for this request. She added that her original
application request was to increase the floor space to 6,000 square feet, but this
was amended to 5,000 square feet. She also discussed the Zoning Ordinance
requirements pertaining to medical marijuana facilities. Lastly, she went over the
2018 text amendment pertaining to medical marijuana facilities.

Mr. Mike Maerowitz, with Gammage and Burnham, introduced himself and
provided a description of a dispensary’s floor area and discussed a floor area
comparison table with different uses. He explained the increase in demand for
medicine over the past few years and how the request would improve patient
privacy. He shared a comparison table on size limitations for medical marijuana
facilities with other jurisdictions. He added that Phoenix has the second highest
number of medical marijuana card holders in the state and the proposed text
amendment is consistent with the sizes granted in past variance applications.

Ms. Schube described the zoning requirements for medical marijuana facilities,
adding that there are two dispensaries in the South Mountain Village boundaries
and concluded her presentation requesting a recommendation of approval.

Ms. Kassandra Alvarez asked how the security for these facilities are selected
and what type of training these companies are required to undergo.

Ms. Schube responded that a security plan is required to be approved by the
City of Phoenix and the State. She added that on site security is optional for each
dispensary owner and that security training is left up to each security company.

Mr. Greg Brownell stated that he is in favor of the expansion proposed and
shared that in the past, the community was concerned that South Phoenix would
be full of dispensaries.

Mr. Lee Coleman stated that he is unsure why a new use permit would be
required in order for an existing facility to expand and discussed an existing
dispensary near the river bottom.

Ms. Busching asked if there was a recent text amendment for the medical
marijuana portion of the Zoning Ordinance. She also inquired on the identity of
the clients who hired the applicant.

Ms. Schube responded that a text amendment had been processed a few years
ago and that she is representing four clients who she convinced to undergo a text
amendment process instead of processing individual variance requests.

Mr. Larios asked if there was an environmental justice assessment conducted.
He added that the medical marijuana industry is predominantly white (non-
minority) and he feels that keeping a smaller building size could allow for smaller
enterprises to be part of the industry.

Mr. Maerowitz responded that the medical marijuana licenses were formerly
issued via a Community Health Assessment Area (CHAA) system. He added that
this considered the health benefits for patients.

Ms. Schube added that the state is presently not issuing any more medical
marijuana dispensary licenses.

Chairwoman Trites opened and closed the public portion of the meeting and
asked for further discussion from committee members. She then closed the
discussion portion of the meeting and asked for a motion.

MOTION
Ms. Shepard made a motion to approve the item per the staff recommendation
presented in the staff report. Mr. Brownell seconded the motion.

VOTE:
11-2 Motion passes; Members Larios and Said voted in dissent.

STAFF COMMENTS REGARDING VPC RECOMMENDATION & STIPULATIONS:

None.

City of Phoenix • Planning & Development Department
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882

Village Planning Committee Meeting Summary
Z-TA-4-20

Date of VPC Meeting
August 13, 2020
Request
Amend Sections 623.D.124.d and 627.D.92.c of the
Phoenix Zoning Ordinance to increase the maximum
net floor area for nonprofit medical marijuana
dispensaries.
VPC Recommendation
Approval
VPC Vote
6-0

VPC DISCUSSION & RECOMMENDED STIPULATIONS:

Stephen Anderson and Lindsay Schube of Gammage & Burnham introduced
themselves as representing the applicant. Reiterating and expanding upon the staff
presentation, they highlighted the following:
• Scope of amendment. The amendment is narrowly focused to expand the
maximum floor area for dispensaries from 2,000 square feet to 5,000 square feet.
The amendment does not modify any other restrictions on medical marijuana
facilities. New facilities and those wishing to expand will require a use permit and
be subject to separation requirements such as one mile from other dispensary
facilities.
• Response to demand. Since 2011, the number of cardholders increased from
16,000 to 245,000 which is a 1,400 percent increase. During this same time, the
number of cardholders per dispensary changed from 1 per 126 to 1 per 953
cardholders indicating the demand far exceeds the current supply.
• Demand for customer privacy and retail space. The origin of the 2,000 square
foot maximum was a conservative estimate of retail demands, but the estimate

Z-TA-4-20
Page 2 of 2

Discussion:

Mr. Jason Stokes wanted to confirm that a use permit will require a hearing.

Ms. Kristi Trisko confirmed that a hearing process will be required.

Mr. Jason Stokes asked if the police had been consulted on this text amendment.

Ms. Lindsay Schube stated that a one-year status update was required by every
dispensary in the city, per ordinance, and that the police have had no significant issues
with any of these yearly updates.

Motion: Committee Member Ms. Shannon Simon moved to approve Z-TA-4-20 per
staff recommendations.

Committee Member Ms. Julie Read seconded the motion.

Vote: The committee voted 6-0 to approve the motion.

Staff comments regarding VPC Recommendation & Stipulations:

None.