Planning Commission — Thursday, September 28, 2023

The project for Reynold Systems consists of a General Plan Amendment and Rezone of a portion of 18649 Hwy 175, Middletown. The purpose of this project is to correct an erroneously recorded Rezone and General Plan designation and broaden the heavy industrial zoning on the Reynolds site. Presently the parcel has a split-zoning designation, consisting of "RL-SC-WW" Rural Lands - Scenic Combining - Waterway Combining District and "M2-DR-SC-WW" Heavy Industrial - Development Review - Scenic Combining - Waterway. The Reynolds System manufacturing facility was built on the portion of land zoned "RL". In 1983, the Lake County Board of Supervisors issued a Special Zoning Exception "SPE-83-1" (Attachment 6) to legitimize a manufacturing facility on the "RL" portion of the property. The applicant now seeks to extend the section of heavy industrial zoning to enable the existing manufacturing facility and all future expansions of the existing manufacturing use on the property to be included within the "M2" Heavy Industrial zoning district. The applicant intends to expand the manufacturing zoning for future development while preserving the undeveloped of containing rural lands to maintain the natural beauty of the location. The General Plan and the Zoning designations will remain the same, however the mapping for the General Plan and Zoning boundary locations would change with this request.

Staff recommends that the Planning Commission take the following actions: A. Recommend that the Board of Supervisors adopt a negative declaration (IS 23-03) for GPAP 23-01 and RZ 23-01 with the following findings: 1. This rezoning is consistent with the Lake County General Plan, Middletown Area Plan and Zoning Ordinance. 2. That the uses intended on the subject site is compatible with the existing zoning. 3. This project will not result in the conversion of agricultural lands into a land use designation that precludes agricultural uses. 4. This project will not result in the need for increased public services. 5. This rezoning will not result in any significant adverse environmental impact and a negative declaration with no new mitigation measures is recommended. B. Recommend that the Board of Supervisors approve GPAP 23-01 for the following reasons: 1. This amendment is consistent with the Lake County General Plan, Middletown Area Plan and Zoning Ordinance. 2. This project will not result in the conversion of agricultural lands into a land use designation that precludes agricultural uses. 3. This project will not result in any significant adverse environmental impact, and a negative declaration with no new mitigation measures is recommended. 4. All existing General Plan designations will remain unchanged. C. Recommend that the Board of Supervisors approve RZ 23-01 for the following reasons: 1. This rezoning is consistent with the Lake County General Plan, Middletown Area Plan and Zoning Ordinance. 2. The That the use intended on the subject site is compatible with the existing zoning. 3. This project will not result in the conversion of agricultural lands into a land use designation that precludes agricultural uses. 4. All existing combining districts will remain unchanged. 5. This project will not result in any significant adverse environmental impact, and a negative declaration with no new mitigation measures is recommended.

On September 28, 2022, Staff performed an annual compliance monitoring inspection of Legendary Farms (UP 19-15). This permit was approved on May 27, 2021, for one (1) A Type 3 (medium outdoor) cultivation license for a total area consisting of 43,560 sf of cultivation within 65,000 square feet (sq. ft.) of outdoor cultivation area; and (1) Type 13 Self Distribution license. During the inspection, Staff found a second area of unpermitted outdoor cultivation, outside of and in addition to the area approved in the use permit and containing approximately 3,300 cannabis plants. According to Ordinance 3112 (2021, relating to Administrative Fines and Penalties), cannabis cultivation without proper licensure constitutes a High Severity violation, with considerable environmental impact at the time it first occurs, and which impact will be greatly acerbated by its continuing to occur (Attachment 1). Section 21-60.11(a) allows for the Planning Commission or Board of Supervisors to consider the revocation of a major use permit based on certain criteria. Section 21-60.12 allows for initiation of this consideration by the deciding body upon the request of the Planning (Community Development) Director (Attachment 2). The Community Development Director recommends the Planning Commission revoke Major Use Permit (UP 19-15) for high severity violations, based on the findings in the Staff Memorandum, dated September 28, 2023.

Community Development Director Turner recommends the Planning Commission take the following actions: Revoke Major Use Permit (UP 19-15) for Legendary Farms, including deeming Responsible Person(s): Permittee: Legendary Farms/Melissa Smith, Property Owner: United Investment Ventures, LLC/Justin Smith, former Legendary Farms Agent Michael Wegner, adjacent Property Owner Roberto Estrada and Joint Tenants Karl and Lelani Kohlruss; Located at 2290 Soda Bay Road (APN 008-010-29), for high severity violations with the following findings: 1. Based on Article 60.12 (Attachment 10) of the Lake County Zoning Code, a hearing to revoke a use permit may be initiated by request of the Planning Director. 2. Engaging in cannabis operations beyond the scope of an existing county permit creates the possibility of substantial jeopardy to the environment and impacts the safety of all County residents. 3. Failure to obtain the necessary permits to engage in cannabis cultivation legally in Lake County is a fraud against the County, depriving the County of the tax to which it is lawfully due, and constitutes an unlawful business practice which puts those engaged in permitted cannabis cultivation operations at a distinct and significant disadvantage." 4. The approximately 3,340 cannabis plants found outside the approved canopy area, and the cultivation activities taking place within the two unpermitted structures, are high severity violations of the Lake County Code. Additional unpermitted cannabis cultivation and processing taking place in the unpermitted structures was supported by electrical power coming from the adjacent parcel, owned by Roberto Estrada, with Joint Tenants Karl and Lelani Kohlruss.