Planning Commission — Thursday, May 9, 2024

The Project proposes Four (4) A- Type 3 "outdoor cultivation" permits consisting of 174,240-sf of outdoor canopy at 11615 and 11625 Seigler Springs North Road, Kelseyville, as described further below in the Project Description section of this Staff Report. The project proposal was presented to the Planning Commission on October 26, 2023, and during the hearing, the Commissioners raised some concerns that required attention. Firstly, the Commissioners highlighted that there was a proposal to remove trees for the project, and it would be ideal to submit a Tree Mitigation Plan to address this issue. Secondly, the Grading Plans were not uploaded as an attachment, which is a requirement. Lastly, the Commission was informed that there could potentially be Tribal Cultural Resources on the property and noted that Staff should work with the applicant and local Tribe(s) to address this matter. Due to these issues, the public hearing was continued to a date and time uncertain. As summarized below, Staff has worked with the applicant to address the Commissioners' concerns that were raised on October 26, 2023. * The applicant has conducted a tree study and submitted an Oak Mitigation Plan (Attachment 8), which outlines how they plan to plant native oak trees at a 3:1 ratio of trees. * Staff contacted the local Tribe(s) and Tribal Consultation took place with the Middletown Rancheria on February 28, 2024. As a part of consultation, a site visit was conducted, and Tribal Cultural Resources were found within the vicinity. Staff have included mitigation measures to protect the resources and sent the mitigation to the Tribe(s). Tribal consultation was concluded on April 09, 2024. * The applicant has already provided the Grading Plans (Attachment 2) and the grading has been analyzed in the Mitigated Negative Declaration (Attachment 5).The October 26 ,2023 Planning Commission Staff Report and related documents may be accessed online at: https://countyoflake.legistar.com/View.ashx?M=A&ID=1161643&GUID=B39BBCAF-C9AE-44DD-A082-39D56BCA63FB. All public comments received for the hearing are included in Attachment 12.

Staff recommends the Planning Commission take the following actions: A. Adopt Mitigated Negative Declaration (IS 21-18) for Major Use Permit (UP 21-17) with the following findings: 1. Potential environmental impacts related to Aesthetics can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1 through AES-3. 2. Potential environmental impacts related to Air Quality can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1 through AQ-6. 3. Potential environmental impacts related to Biological Resources can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1 through BIO-6. 4. Potential environmental impacts related to Cultural and can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 through CUL-3. 5. Potential environmental impacts related to Noise can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1 through NOI-2. 6. Potential environmental impacts related to Tribal Cultural Resources can be mitigated to less than significant levels with the inclusion of mitigation measures TCR-1 through TCR-6. 7. Potential environmental impacts related to Wildfire can be mitigated to less than significant levels with the inclusion of mitigation measures WDF-1 through WDF-4. B. Approve Major Use Permit UP 21-17 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not under the circumstances, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use or be detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. The site is adequate in size, shape, locations, and physical characteristics to accommodate the type of use and level of development proposed. 3. The streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the proposed use. 4. There are adequate services to serve the project. 5. This project is consistent with the Lake County General Plan, Middletown Area Plan, and Lake County Zoning Ordinance. 6. No violation of Chapter 5, 17, 21, 23 or 26 of the Lake County Code currently exists on this property, with a condition of approval implemented. 7. The proposed use complies with all development standards described in Chapter 21, Article 27, Section 1.i. 8. The applicant is qualified to make the application described in Chapter 21, Article 27, Section 1.ii.(g). 9. The application complies with the qualifications for a permit described in Chapter 21, Article 27, Section 1.ii.(i).

The applicant, Rancho Lake, LLC, is requesting a major use permit proposed Major Use Permit (UP 21-15), and Mitigated Negative Declaration (IS 21-16), for commercial cannabis cultivation including twenty (20) A-Type 3 "Medium Outdoor" licenses for 19.6 acres of outdoor canopy (within a 34-acre cultivation area), located at 19955 Grange Road, Middletown (APNs 014-290-08; 014-300-02, 03, & 04). The proposed cultivation (Project) would occur on APN 014-290-08 ("Project parcel"), while APNs 014-300-02, 03, and 04 will be used for clustering. The proposed cultivation operation would be established in areas of the Project parcel that have been used to farm oats and hay, as well as for cattle grazing, since at least the early 1900s. Cannabis cultivated on-site would be dried within the proposed Harvest Storage and Staging Areas, then transported to State of California-licensed processing and manufacturing facilities for processing and/or extraction. The parcel is accessed via Grange Road, a paved and County Maintained roadway. Grange Road connects to Highway 29 approximately 1 1/2 miles west of the Project Property. The Project parcel is accessed via Comstock Ranch Road, a graveled road off of Grange Road. Locking metal gates across Grange and Comstock Ranch roads control access to the parcel.

Staff recommends the Planning Commission take the following actions: A. Adopt Mitigated Negative Declaration (IS 21-16) for Major Use Permit (UP 21-15) with the following findings: 1. Potential environmental impacts related to Aesthetics can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1 through AES-2. 2. Potential environmental impacts related to Air Quality can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1 through AQ-6. 3. Potential environmental impacts related to Biological Resources can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1 through BIO-5. 4. Potential environmental impacts related to Cultural Resources can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 through CUL-2. 5. Potential environmental impacts related to Hazards and Hazardous Materials can be mitigated to less than significant levels with the inclusion of mitigation measures HAZ-1 through HAZ-8. 6. Potential environmental impacts related to Hydrology can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1 through BIO-3, HAZ-1 through HAZ-8, and HYD-1 through HYD-2. 7. Potential environmental impacts related to Noise can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1 through NOI-2. 8. Potential environmental impacts related to Tribal Cultural Resources can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 through CUL-2, and TCR-1. 9. Potential environmental impacts related to Utilities can be mitigated to less than significant levels with the inclusion of mitigation measures HYD-1 and HYD-2. B. Approve Major Use Permit UP 21-15 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not under the circumstances, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use or be detrimental to property and improvements in the neighborhood or the general welfare of the County. UP 21-15 Rancho Lake, LLC - IS 21-16 29 2. The site is adequate in size, shape, locations, and physical characteristics to accommodate the type of use and level of development proposed. 3. The streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the proposed use. 4. There are adequate services to serve the project. 5. This project is consistent with the Lake County General Plan, Middletown Area Plan, and Lake County Zoning Ordinance. 6. No violation of Chapter 5, 17, 21, 23 or 26 of the Lake County Code currently exists on this property, with a condition of approval implemented. 7. The proposed use complies with all development standards described in Chapter 21, Article 27, Section 1.i. 8. The applicant is qualified to make the application described in Chapter 21, Article 27, Section 1.ii.(g). 9. The application complies with the qualifications for a permit described in Chapter 21, Article 27, Section 1.ii.(i).

The applicant, Meili Liu/ Liu Farms, is requesting discretionary approval from the County of Lake for Major Use Permit (UP 20-33), for commercial cannabis cultivation at 8531 High Valley Road, Clearlake Oaks (APN 006-003-34). The application, as proposed, would include cultivation of 304,710-sf (7 Acres) of outdoor canopy with seven (7) A-Type 3 licenses, and one (1) A-Type 13 Self-Distribution License. The zoning is "RL-WW-SC" - Rural Lands, Waterway Combining District, and Scenic Combining District. The total acreage of the parcel is approximately 158.22 acres. On March 14, 2024, the Planning Commission reviewed the project and moved to continue the item to the March 28 agenda to give Staff and the applicant further time to update the Property Management Plan and Site Plans to reflect the current proposal. Additionally, the Commission recommended that Staff review and address tribal cultural resources, hydrology, and biological resources further. As a result of these concerns, the public hearing was continued to March 28, 2024, and subsequently continued again to May 9, 2024, to allow additional time to address the Commissioner's concerns. As summarized below, Staff has worked to address the Commissioners' concerns that were raised on March 14, 2024. * Tribal Cultural Resources o Staff contacted the local Tribe(s) and a Tribal Consultation with took place with Elem Colony on March 19, 2024. o The Tribal Historic Preservation Officer conducted a site visit with the applicant on April 1, 2024, and noted they had no concerns with the project moving forward, with the implementation of Tribal Cultural Resources Mitigation Measures (TCR-1 and TCR-2). o Tribal Consultation formally concluded on April 10, 2024. * Property Management Plan and Site Plans o Updated site plans (reducing the size of the solar array) are required to be submitted prior to the permit being issued (see Condition of Approval No. 2). o On March 29, 2024, the applicant provided an updated Property Management Plan that reflects the applicant removing the nursery, manufacturing facility from the scope and reducing the size of the solar array (see Attachment 3). * Biological Resources and Hydrology o Three (3) reports were prepared for the project: a Biological Resources Assessment (BA) (Natural Investigations Company, 2020); a Plant Survey (Huffman-Broadway Group, 2021); and a Wetland Site Assessment (Huffman-Broadway Group, 2021). Staff conducted site visits on April 1 and April 2, 2024, and noted that environmental site conditions have not changed since the reports were prepared. o Specific to wetlands and water resources, the Wetland Site Assessment identified approximately 0.11 acres of palustrine emergent wetlands in two areas within the parcel, and approximately 0.10 acres of riverine/intermittent creeks (south of the proposed cultivation area). The cultivation development would be set back greater than 100 feet from any identified aquatic resource, including intermittent creeks and wetlands. Additionally, the project proponent must file a Notice of Intent and enroll in Cannabis Cultivation Order WQ 2019-0007-DWQ. Compliance with this Order will ensure that cultivation operations will not significantly impact water resources by using a combination of Best Management Practices (BMPs), buffer zones, sediment and erosion controls, site management plans, inspections and reporting, and regulatory oversight. The March 14, 2024 Planning Commission Staff Report and related documents may be accessed online at: https://countyoflake.legistar.com/View.ashx?M=A&ID=1148456&GUID=C37B066A-5FF7-4550-A1BA-33C27A60FC25. All public comments received for the March 14 hearing are included in Attachment 10.

Staff recommends the Planning Commission take the following actions: A. Adopt Mitigated Negative Declaration (IS 20-39) for Major Use Permit (UP 20-33) with the following findings: 1. Potential environmental impacts related to Aesthetics can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1 through AES-4. 2. Potential environmental impacts related to Air Quality can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1 through AQ-6. 3. Potential environmental impacts related to Biological Resources can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1 through BIO-3. 4. Potential environmental impacts related to Cultural Resources can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 through CUL-3. 5. Potential environmental impacts related to Geology and Soils can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-3 and GEO-1 through GEO-7. 6. Potential environmental impacts related to Hydrology and Water Quality can be mitigated to less than significant levels with the inclusion of mitigation measures HAZ-1 through HAZ-7. 7. Potential environmental impacts related to Hydrology and Water Quality can be mitigated to less than significant levels with the inclusion of mitigation measures HYD-1 through HYD-3. 8. Potential environmental impacts related to Noise can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1 and NOI-2. 9. Potential environmental impacts related to Tribal Cultural Resources can be mitigated to less than significant levels with the inclusion of mitigation measures TCR-1 and TCR-2. 10. Potential environmental impacts related to Wildfire can be mitigated to less than significant levels with the inclusion of mitigation measures WLD-1 through WLD-4. B. Approve Major Use Permit UP 20-33 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not under the circumstances, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use or be detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. The site is adequate in size, shape, locations, and physical characteristics to accommodate the type of use and level of development proposed. 3. The streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the proposed use. 4. There are adequate services to serve the project. 5. This project is consistent with the Lake County General Plan, Shoreline Communities Area Plan, and Lake County Zoning Ordinance. 6. No violation of Chapter 5, 17, 21, 23 or 26 of the Lake County Code currently exists on this property, with a condition of approval implemented. 7. The proposed use complies with all development standards described in Chapter 21, Article 27, Section 1.i. 8. The applicant is qualified to make the application described in Chapter 21, Article 27, Section 1.ii.(g). 9. The application complies with the qualifications for a permit described in Chapter 21, Article 27, Section 1.ii.(i).

The applicant is requesting a major use permit for one (1) A-Type 3 "Medium Outdoor" licenses, two (2)A-Type 3B "mixed-light" licenses, and one (1) A-Type 13 Self-Distribution license. The property is located 3681 Benmore Valley Road, Lakeport (APN 007-002-27) within three cultivation areas. The site is accessed via deeded access driveway that connects with Benmore Valley Road, private native soil shared-access road. One intermittent channel (Class II watercourse) and three ephemeral channels (Class III watercourses) are located on the property. Historical land uses include animal grazing and legacy cannabis operations. Total acreage is approximately63.03 acres.

Staff recommends the Planning Commission take the following actions: A. Adopt Mitigated Negative Declaration (IS 20-74) for Major Use Permit (UP 20-60) with the following findings: 1. Potential environmental impacts related to Aesthetics (AES) can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1. 2. Potential environmental impacts related to Air Quality (AQ) can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1 through AQ-6. 3. Potential environmental impacts related to Biological Resources (BIO) can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1 through BIO-6. 4. Potential environmental impacts related to Cultural Resources (CUL) can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 through CUL-2. 5. Potential environmental impacts related to Geology and Soils (GEO) can be mitigated to less than significant levels with the inclusion of mitigation measures GEO-1. 6. Potential environmental impacts related to Noise (NOI) can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1 through NOI-2. 7. Potential environmental impacts related to Tribal Cultural Resources (TCR) can be mitigated to less than significant levels with the inclusion of mitigation measures TCR-1 through TCR-2. UP 20-60 Lakeport Farms/ Ricardo de Mello- IS 20-74 8. Potential environmental impacts related to Wildfire (WDF) can be mitigated to less than significant levels with the inclusion of mitigation measures WDF-1 through WDF-5. B. Approve Major Use Permit UP 20-60 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not under the circumstances, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use or be detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. The site is adequate in size, shape, locations, and physical characteristics to accommodate the type of use and level of development proposed. 3. The streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the proposed use. 4. There are adequate services to serve the project. 5. This project is consistent with the Lake County General Plan, Lakeport Area Plan, and Lake County Zoning Ordinance. 6. No violation of Chapter 5, 17, 21, 23 or 26 of the Lake County Code currently exists on this property, with a condition of approval implemented. 7. The proposed use complies with all development standards described in Chapter 21, Article 27, Section 1.i. 8. The applicant is qualified to make the application described in Chapter 21, Article 27, Section 1.ii.(g). 9. The application complies with the qualifications for a permit described in Chapter 21, Article 27, Section 1.ii.(i).

Project Title: Blackwell Management Company LLC Permit Numbers: UP 22-14, IS 22-13 Lead Agency: Lake County Planning, 255 N. Forbes St., Lakeport Applicant Name & Address: Blackwell Capital Management LLC 371 Lakeport Boulevard, #400 Lakeport CA 95453 Property Owner: Same as Applicant Project Location: 22004 Morgan Valley Road, Lower Lake Parcel Number(s) (APN): 012-069-25 Parcel Size: �37.81 acres General Plan Designation: Rural Lands Zoning District(s): "APZ", Agricultural Preserve Flood Zone: "D", Not within a mapped flood zone Existing Features on Site: * (1) Septic system * (1) Groundwater well with a solar pump * (2) Shipping containers * (1) Gravel interior driveway * (1) Security Gate * (1) Portable bathroom Proposed Features on Site: * (3) Outdoor cultivation / canopy areas with a total of 51,060 sf of canopy * (1) 120 sf chemical and fertilizer storage shed * (1) 120 sf security shack * (6) 5,000-gallon water storage tanks * 6-foot galvanized woven wire fencing The cultivation site is accessed by a private dirt road off of Morgan Valley Road, a paved road maintained by the County of Lake. An onsite gravel private driveway averaging 10 feet in width provides access to the cultivation site. Cultivation would occur in ground, using amended native soil mixture at or below grade, composed of native soil and compost. The grow cycle will be from May 15th through November 15th of each year. All cannabis waste generated from the proposed cultivation operation would be chipped and composted on site. Compost cannabis waste would be stored in a designated composting area, until it is incorporated into the growing medium of the cultivation areas, as organic soil amendment. All agricultural chemicals (fertilizers, amendments, pesticides, and petroleum products) will be stored within a proposed 120 sq. ft. wooden shed. The applicant is proposing a total combined of 51,060 sf of outdoor canopy within three gardens on the site plans (Attachment 1); Area D consists of 9,350 sf of canopy, Area E consists of 11,050 sf of canopy, and Area F consists of 30,660 sf of canopy. Two 120 sf sheds are proposed for fertilizers / pesticide storage, and two 8' x 40' shipping containers are proposed for cannabis drying. Blackwell Management Company LLC is also seeking to obtain a Type 13 Cannabis Distributor Transport Only, Self-Distribution license, with registered and insured, unmarked vehicle to transport cannabis to other licensed cannabis processing, distribution, packaging and labeling, and manufacturing facilities. Construction would occur Monday through Friday from 9:00 A.M. to 5:00 P.M. and would include preparation of the cultivation areas, shed installation, fence installation and improvement of the interior driveway. Average vehicle trips during construction would be two to four daily trips over a three-week period, with 30 - 60 total projected construction trips anticipated. Operations would consist of up to two employees during regular operations and up to six employees during harvest season. No grading or tree removal is proposed for the development of the project. The area proposed for cultivation development is a field that is relatively flat. Minor scrapping for the cultivation area, with minor digging for fence installation is required.

Staff recommends the Planning Commission take the following actions: A. Adopt Initial Study (IS 22-13) for Major Use Permit (UP 22-14) with the following findings: 1. Potential environmental impacts related to Air Quality can be mitigated to less than significant levels with the incorporated of Mitigation Measures AQ-1 through AQ-6. 2. Potential environmental impacts related to Air Quality can be mitigated to less than significant levels with the incorporated of Mitigation Measures BIO-1 through BIO-6. 3. Potential environmental impacts related to Cultural can be mitigated to less than significant levels with the incorporated of Mitigation Measures CUL-1 through CUL-3. 4. Potential environmental impacts related to noise can be mitigated to less than significant levels with the incorporated of Mitigation Measures NOI-1 and NOI-2. 5. Potential environmental impacts related to Tribal Cultural Resources can be mitigated to less than significant levels with the incorporated of Mitigation Measures TCR-1 and TCR-2. 6. Potential environmental impacts related to Wildfire can be mitigated to less than significant levels with the incorporated of Mitigation Measures WLD-1 through WLD-4. 7. This project is consistent with land uses in the vicinity. 8. This project is consistent with the Lake County General Plan, Lower Lake Area Plan and Lake County Zoning Ordinance. B. Approve Major Use Permit (UP 22-14) with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not under the circumstances of the particular case, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use or be detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. That the site for the project is adequate in size, shape, location, and physical characteristics to accommodate the type of use and level of development proposed. 3. That the streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the specific proposed use with mitigation measure added. 4. That there are adequate public or private services, including but not limited to fire protection, water supply, sewage disposal, and police protection to serve the project. 5. That the project is in conformance with the applicable provisions and policies of this Code, the Lake County General Plan, the Lower Lake Area Plan and the Lake County Zoning Ordinance. 6. That no violation of Chapters 5, 17, 21, 23 or 26 of the Lake County Code currently exists on the property, unless the purpose of the permit is to correct the violation, or the permit relates to a portion of the property which is sufficiently separate and apart from the portion of the property in violation so as not to be affected by the violation from a public health, safety or general welfare basis. 7. The proposed use complies with all development standards described in Chapter 21, Article 27, Section 1.i. 8. The applicant is qualified to make the application described in Chapter 21, Article 27, Section 1.ii.(g). 9. The application complies with the qualifications for a permit described in Chapter 21, Article 27, Section 1.ii.(i).