Home Grown: Wineries, Distilleries, and Marijuana S583 DAVID KUHL, AICP AMERICAN PLANNING ASSOCIATION NATIONAL CONFERENCE

Transcription

1 Home Grown: Wineries, Distilleries, and Marijuana S583 DAVID KUHL, AICP AMERICAN PLANNING ASSOCIATION NATIONAL CONFERENCE

2 What we will cover today Review history of wine in Woodinville Look at challenges of spirits regulation Land-use and business regulations

3 What we will cover today Evolving community values and their influence on regulations Similarities/differences on these uses and standards for industrial zones

4

5 Woodinville Seattle Walla Walla

6 Woodinville

7 Woodinville

8 Wineries 30 Tasting rooms representing wineries from outside of town

9 Hollywood District Several tasting rooms in the Hollywood District

10

11

12 Future Projects in Hollywood District Woodinville Wine Village in the Hollywood District $200,000,000 mixed-use project with wineries, hotel, retail Proposed by Tom Ellison of Savers Corp. Long History recession led to foreclosure on land Probable start in 2016

13 Breweries and Distilleries Redhook and a half dozen other breweries Located in Industrial zone with Tourist District Overlay The overlay allows restaurants and retail sales in Industrial Zone

14 Tools Use either Industrial Zone or Commercial Zone for possible downtown re-development downtown Use Consider either an re-development Industrial overlay Zone district or to Commercial allow restaurants Zone for in the possible industrial zone Consider an overlay district to allow restaurants in the industrial zone With downtown consider a Conditional Use Permit and include conditions for noise, odor, operating hours and size limitations

15

16 Future Land Use Map Proposed overlay in Industrial Zone 16

17 Regional Retail Overlay 17

18

19 N Warehouse District 19

20 Warehouse District This is the area where many wineries start out Desire for larger restaurants in Industrial Zone Fear of competition rents could rise with more non-industrial activity

21 Pressure on Rents Rental rates are around $8 to 9.00 per square foot per year for industrial space Rental rates have gone up from $18.00 to per square foot per year in the last three years for retail space Rates are going up all over the Puget Sound it may become difficult for smaller scale operations to operate

22 Other Types of Alcohol Absinthe is produced in the Warehouse District ( proof) Grappa is a vodka made out of grape skins (produced in the former location of Woodinville Whiskey)

23 Things that are important to wineries A-frame signs help direct traffic to your door Restaurants can help augment wine tasting Pick the grapes knowing when the big guys do Use refrigerated trucks to get the grapes here by tomorrow Work cooperatively with other wineries and businesses use the same bottling truck, refer business to others such as food outlets

24 Tourism City Initiated Efforts Include: Banners Wayfinding Signs Summer Concert Series in Wilmot Park Live music, beer and wine garden New hotel 102 room Hampton Inn

25 Community Values City Council enjoys the wineries Locals enjoy the concert series Many people want to encourage development downtown so far no desire to develop wineries, breweries or distilleries downtown

26 Community Issues DUI is not a problem, most people use shuttle services and DD s Most people are into wine tasting, meeting the wine maker Safe environment

27 Marijuana Marijuana was approved for recreational use through I-502 All precincts in Woodinville approved I-502 City Council unanimously decided to prohibit all forms of marijuana through zoning

28 Thank you

29 APPLYING THE ZONING TOOL KIT TO MARIJUANA USES 2015 APA NATIONAL CONFERENCE - APRIL 17, 2015 W. SCOTT SNYDER

30 BLACK, GRAY AND WHITE MARKETS

31 BLACK MARKET Marijuana is a Schedule I drug under the Federal Controlled Substances Act (CSA). Schedule I drugs are those with: a high potential for abuse, and a lack of any accepted medical use in the absence of any accepted safety for use in medically supervised treatment. 31 USC Section 815(b)(1) 3

32 REALITY Twenty and the District of Columbia have decriminalized marijuana to some extent, and recognize a legitimate use for medical marijuana. Four states (Colorado, Washington, Oregon, and Alaska) have decriminalized the use of marijuana and recognized it as a recreational substance.

33 MEDICAL USE OF MARIJUANA Enacted by initiative in November of 1998, Initiative # 692 permits qualifying patients with terminal or debilitating illnesses who, in the judgment of their physicians, would benefit from the medical use of marijuana, an affirmative defense to criminal prosecution for marijuana possession. Nothing in the law shall be construed to supersede Washington state law prohibiting the acquisition, possession, manufacture, sale, or use of marijuana for non-medical purposes.

34 REALITY I-692 (Medical Use of Marijuana Act) created a gray market with the legal fiction of collective garden distribution points. This legal fiction continues to undercut the state-regulated system adopted by I-502. Seattle alone has over 200 medical marijuana distribution points and three licensed, open I-502 retailers.

35 I-502 Decriminalizes the possession of marijuana Provides for a state-regulated system of production, processing and retailing Taxation but local government currently receives none of the tax revenue

36 REALITY The continued existence of the black market, the gray market, and the newly initiated state system present an unstable structure that must be reconciled in order for the state of Washington and its local jurisdictions to comply with the directives the Department of Justice.

37 OGDEN LETTER August 29, DOJ Memo to all US Attorneys. As long as states adopting laws governing marijuana have sufficiently robust regulatory and enforcement systems (on paper and in practice) to address the federal government s identified enforcement priorities, then enforcement of state laws by state and local enforcement and regulatory bodies should remain the primary means of addressing marijuanarelated activities.

38 ENFORCEMENT PRIORITIES 1. Prevent the distribution of marijuana to minors. 2. Prevent revenue from the sale of marijuana from reaching criminal enterprises. 3. Prevent the diversion of marijuana from states, where it is legal, to other states. 4. Prevent state-authorized marijuana activity from being used as a cover for illegal drug trafficking. 5. Address violence and the use of firearms in the cultivation and distribution of marijuana. 6. Prevent drugged driving and the exacerbation of other adverse public health consequences. 7. Prevent growing marijuana on public lands. 8. Prevent marijuana use or possession on federal property.

39 As usual, the burden falls on local government to resolve a complicated situation between conflicting state and federal law, and in Washington, two very different initiatives.

40 APPLYING THE ZONING TOOL BOX: WHO, WHAT, WHERE, AND WHEN.

41 WHO - DEFINING THE USE Production, processing and retail Special overlays versus zoning by analogy

42 Pick the drug dealer:

43

44

45 WHAT - BULK REGULATIONS Address the perceived negative impacts of marijuana processing such as: smell electricity consumption security issues and crime CONCENTRATION VERSUS DISBURSAL

46 WHERE - 1,000-foot buffers under I-502. Importance of GIS mapping and understanding the impact on cityzoning Distancing from schools, parks, and other perceived uses - is 1,000 feet enough? Is it too much? Local considerations: a. Historic districts b. Preservation of commercial and industrial zoning

47 WHEN 1. The controversial use of moratoria. 2. Timing and the response of the federal government. Regime Change: Potential two-year window on federal forbearance leads to local caution. Reasonable Fear: Accepting marijuana uses when surrounding communities prohibit.

48 THE LOCAL OPTION Should cities and counties have the option to prohibit marijuana usage? I no express preemption. IN SUPPORT a. Washington Attorney General. Bob Ferguson b. Five superior and Court of Appeals decisions c. Ultimately to be resolved by: The Washington Supreme Court The Washington State legislature

49 W. Scott Snyder OGDEN MURPHY WALLACE OMWLAW.COM

50 Home Grown: Wineries, Distilleries, and Marijuana S583 DAVID KUHL, AICP AMERICAN PLANNING ASSOCIATION NATIONAL CONFERENCE

51 What we will cover today Review history of wine in Woodinville Look at challenges of spirits regulation Land-use and business regulations

52 What we will cover today Evolving community values and their influence on regulations Similarities/differences on these uses and standards for industrial zones

53

54 Woodinville Seattle Walla Walla

55 Woodinville

56 Woodinville Woodinville population is 11,000 State of Washington is 7,000,000 people City of Seattle is 650,000 Residents within 1 hour of Woodinville 2,000,000

57 Wineries 108 total Wineries and tasting rooms in Woodinville 78 Wineries producing in Woodinville 30 Tasting rooms representing wineries from outside of town

58 Hollywood District Several tasting rooms in the Hollywood District

59

60

61 Future Projects in Hollywood District Woodinville Wine Village in the Hollywood District $200,000,000 mixed-use project with wineries, hotel, retail Proposed by Tom Ellison of Savers Corp. (Value Village) Long History recession led to foreclosure on land

62 Breweries and Distilleries Redhook and a half dozen other breweries Located in Industrial zone with Tourist District Overlay The overlay allows restaurants and tourist related retail sales in Industrial Zone

63 Other Tools Downtown area could be enhanced with small scale alcohol production With downtown consider a Conditional Use Permit and include conditions for noise, odor, operating hours and size limitations Consider an overlay district to allow additional uses in the area you are attempting to develop

64

65 Future Land Use Map Proposed overlay in Industrial Zone 16

66 Regional Retail Overlay 17

67

68 N Warehouse District 19

69 Warehouse District This is the area where many wineries start out Desire for larger restaurants in Industrial Zone Fear of competition rents could rise with more non-industrial activity

70 Pressure on Rents Rental rates are around $8 to 9.00 per square foot per year for industrial space Rental rates have gone up from $18.00 to per square foot per year in the last three years for retail space Rates are going up all over Woodinville it may become difficult for smaller scale operations to operate

71 Things that are important to wineries A-frame signs help direct traffic to your door Restaurants can help augment wine tasting Work cooperatively with other wineries and businesses, refer business to others such as hotels and retailers

72 Other Types of Alcohol Absinthe is produced in the Warehouse District ( proof) Grappa is a vodka made out of grape skins

73 Tourism City Initiated Efforts Include: Banners Wayfinding Signs Summer Concert Series in Wilmot Park Live music, beer and wine garden New hotel 102 room Hampton Inn

74 Community Values City Council enjoys the wineries Locals enjoy the concert series Many people want to encourage development downtown so far no desire to develop wineries, breweries or distilleries downtown

75 Community Issues DUI is not a problem, most people use shuttle services and designated drivers Most people are into wine tasting, meeting the wine maker Safe environment

76 Marijuana Marijuana was approved for recreational use through I-502 All precincts in Woodinville approved I-502 City Council unanimously decided to prohibit all forms of marijuana through zoning

77 Thank you

78 APPLYING THE ZONING TOOL KIT TO MARIJUANA USES 2015 APA NATIONAL CONFERENCE - APRIL 17, 2015 W. SCOTT SNYDER

79 BLACK, GRAY AND WHITE MARKETS

80 BLACK MARKET Marijuana is a Schedule I drug under the Federal Controlled Substances Act (CSA). Schedule I drugs are those with: a high potential for abuse, and a lack of any accepted medical use in the absence of any accepted safety for use in medically supervised treatment. 31 USC Section 815(b)(1) 3

81 REALITY Twenty states and the District of Columbia have decriminalized marijuana to some extent, or recognized a legitimate use for medical marijuana. Four states (Colorado, Washington, Oregon, and Alaska) have decriminalized the use of marijuana it as a recreational substance.

82 MEDICAL USE OF MARIJUANA Enacted by initiative in November of 1998, Initiative # 692 permits qualifying patients with terminal or debilitating illnesses who, in the judgment of their physicians, would benefit from the medical use of marijuana in an affirmative defense to criminal prosecution for marijuana possession. Nothing in the law shall be construed to supersede Washington state law prohibiting the acquisition, possession, manufacture, sale, or use of marijuana for non-medical purposes.

83 REALITY I-692 (Medical Use of Marijuana Act) created a gray market with the legal fiction of collective garden distribution points. This legal fiction continues to undercut the state-regulated system adopted by I-502. Seattle alone has over 250 medical marijuana distribution points and three licensed, open I-502 retailers.

84 I-502 Decriminalizes the possession of marijuana Provides for a state-regulated system of production, processing and retailing Taxation but local government currently receives none of the tax revenue

85 REALITY The continued existence of the black market, the gray market, and the newly initiated state distribution system present an unstable structure that must be reconciled in order for the state of Washington and its local jurisdictions to comply with the directives the Department of Justice.

86 OGDEN LETTER August 29, DOJ Memo to all US Attorneys. As long as states adopting laws governing marijuana have sufficiently robust regulatory and enforcement systems (on paper and in practice) to address the federal government s identified enforcement priorities, then enforcement of state laws by state and local enforcement and regulatory bodies should remain the primary means of addressing marijuanarelated activities.

87 ENFORCEMENT PRIORITIES 1. Prevent the distribution of marijuana to minors. 2. Prevent revenue from the sale of marijuana from reaching criminal enterprises. 3. Prevent the diversion of marijuana from states, where it is legal, to other states. 4. Prevent state-authorized marijuana activity from being used as a cover for illegal drug trafficking. 5. Address violence and the use of firearms in the cultivation and distribution of marijuana. 6. Prevent drugged driving and the exacerbation of other adverse public health consequences. 7. Prevent growing marijuana on public lands. 8. Prevent marijuana use or possession on federal property.

88 As usual, the burden falls on local government to resolve a complicated situation between conflicting state and federal law, and in Washington, the structures allowed or created by two very different initiatives.

89 APPLYING THE ZONING TOOL BOX: WHO, WHAT, WHERE, AND WHEN.

90 WHO - DEFINING THE USE Medical vs state-licensed Production, processing and retail Special overlays versus zoning by analogy

91 Pick the drug dealer:

92

93

94 WHAT - BULK REGULATIONS Address the perceived negative impacts of marijuana processing such as: Production smell electricity consumption security issues and crime CONCENTRATION VERSUS DISBURSAL Distribution Crime Public use

95 WHERE - 1,000-foot buffers under I-502. Importance of GIS mapping and understanding the impact on cityzoning Distancing from schools, parks, and other perceived uses - is 1,000 feet enough? Is it too much? Local considerations: a. Historic districts b. Preservation of commercial and industrial zoning c. Churches, synagogues, mosques, and other sensitive uses

96 WHEN 1. The controversial use of moratoria. 2. Timing and the response of the federal government. Regime Change: Potential two-year window on federal forbearance leads to local caution. Reasonable Fear: Accepting marijuana uses when surrounding communities prohibit.

97 THE LOCAL OPTION Should cities and counties have the option to prohibit marijuana usage? I no express preemption. IN SUPPORT IN OPPOSITION a. Washington Attorney General, Bob Ferguson a. ACLU, and b. Five Superior and Court of Appeals decisions b. I-502 sponsors ULTIMATELY TO BE RESOLVED BY The Washington Supreme Court The Washington State legislature

98 W. Scott Snyder OGDEN MURPHY WALLACE OMWLAW.COM