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Home My WebLink AboutD-1 Staff Report - Vape and Tobacco ShopsSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, ECONOMIC & COMMUNITY DEVELOPMENT DIRECTOR DATE: OCTOBER 19, 2020 SUBJECT: DISCUSSION AND DIRECTION REGARDING VAPE SHOPS, TOBACCO STORES, HOOKAH LOUNGES AND OTHER SIMILAR USES IN THE CITY OF AZUSA BACKGROUND: The City of Azusa Municipal Code (AMC) does not explicitly address vape shops, tobacco stores, hookah lounges, and other similar uses. Rather, they have been generally categorized as retail uses. Over the last few years, the City has experienced a high level of interest in this type of business. Currently, there are thirteen active or pending business licenses for smoke and/or vape shops in the City. Eight of these businesses are located along Azusa Avenue two are located along Citrus Avenue, and three along Arrow Highway. There are currently no licensed hookah lounges in the City. On October 5, 2020, the City Council requested that this item be placed on their next agenda for discussion. This report will provide an overview of the following topics related to the subject uses: 1. Current City regulations 2. Previous efforts to regulate the subject uses 3. Options for future regulation RECOMMENDATION: Receive a presentation from staff and provide appropriate direction on the subject matter. ANALYSIS: Current City Regulations As discussed in the Background section of this report, the AMC does not explicitly address vape shops, tobacco stores, hookah lounges, or other similar uses. In the past they have been classified as retail uses, and have therefore been licensed as such. In many areas of the City, retail uses are generally permitted by right, as long as basic standards such as parking are met. Additionally, the Azusa TOD Specific Plan does list prohibited uses in each plan district, however vape shops, tobacco stores, and hookah lounges are not listed as such. Therefore, just like in other areas of the City, these uses have been considered APPROVED CITY COUNCIL 10/19/2020 Direction Provided DISCUSSION AND DIRECTION REGARDING VAPE SHOPS, TOBACCO STORES, HOOKAH LOUNGES AND OTHER SIMILAR USES IN THE CITY OF AZUSA October 19, 2020 Page 2 retail uses within the Specific Plan area. As previously stated, there eight active or pending business licenses for the subject uses along Azusa Avenue, four of them are within the boundaries of the Specific Plan. Previous Efforts to Regulate the Subject Uses On June 19, 2017 the City Council adopted an interim urgency ordinance temporarily prohibiting the establishment of hookah lounges and tobacco stores. This included the sale of any electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah. Then, on July 17, 2017, the City Council extended the moratorium for a period of ten months and fifteen days, which is a standard practice in these situations. At the time of the extension, Staff had undertaken the following actions: According to the moratorium extension report, the following actions had been taken since the moratorium was enacted: (1) The City’s Police Department has contacted other law enforcement agencies in Southern California regarding their approach to regulating hookah lounges and tobacco stores. (2) The City’s Planning Department has begun the process of reviewing the City’s Zoning Code and identifying which zones might be appropriate for hookah lounges and tobacco stores and whether additional planning tools (such as separation from sensitive land uses) might be appropriate. (3) Staff had begun the process of determining appropriate standards for hookah lounges and tobacco stores within the City. (4) Staff had reviewed whether the moratorium must continue to affect cigar lounges and determined that it need not because such facilities are not a common source of the impacts which prompted the initial moratorium. However, there is no record of new provisions being developed and codified. Moreover, according to state law (Government Code, 65858), the City cannot adopt another moratorium addressing the same event, occurrence, or set of circumstances that led to the adoption of the prior interim ordinance. Thus, the City will need to adopt its permanent regulations – either as a regular ordinance or urgency ordinance (to take effect immediately). Options for Future Regulations Local cities regulate these uses in different ways. For example, Covina requires approval of a Conditional Use Permit, Duarte allows them with approval of a Minor Use Permit, and Glendora permits them by right. The City of Azusa therefore has options (or variations thereof) for regulating the subject uses, and they include, but are not limited to the following: • Prohibit the subject uses throughout the City – while rare and potentially difficult, the City can ban the establishment of the subject uses throughout the entire city. • Allow the subject uses only in select areas – the City can choose to allow the subject uses in select areas of the City. For example, the City Council may determine the subject uses are DISCUSSION AND DIRECTION REGARDING VAPE SHOPS, TOBACCO STORES, HOOKAH LOUNGES AND OTHER SIMILAR USES IN THE CITY OF AZUSA October 19, 2020 Page 2 inconsistent with the vision of the TOD Specific Plan, or certain districts created therein. So, the City Council could choose to prohibit these uses within the boundaries of the entire Specific Plan project area, or only in those areas where the Council determines the uses would be inconsistent with the Plan. For example, the Council could choose to prohibit these uses in the Gold Line, Downtown, and Downtown Expansion Districts, while allowing them in the other three districts of the Plan. The Council could additionally determine that the City’s industrial areas are the most appropriate to accommodate such uses, and therefore they would only be permissible in them either as a permitted use or via approval of a use permit, or minor use permit. The City could further regulate them by including a standard requiring a minimum separation distance of 500 feet (or more or less) between each industrial zoned parcel containing one such shop and limiting the number of shops to one per parcel. Alternatively, standards could be adopted that forbid such uses from being located within 500 feet of sensitive uses/receptors (Example: schools, parks, churches, or residential neighborhoods). • Amortization schedule – standard zoning ordinances or development codes include sections related to nonconforming uses, parcels, and structures. Codes are written to discourage the long term continuation of these nonconformities. Should the City Council choose to prohibit the subject uses throughout the City or in certain areas thereof, these uses would have to be subject to an amortization schedule and effect of termination requirement. Section 88.54.100 of the Azusa Municipal Code addresses the required termination of nonconforming uses, structures, or site improvements. Its sets forth an amortization schedule that requires a nonconforming use, structure, or site improvement to be discontinued or brought into conformity within the specific time frames listed below: a. A nonconforming land use located on a site within the TOD Specific Plan District - 20 years. b. Adult business—Six months, or as extended in compliance with Chapter 88.40 (Adult Business Regulations). c. Auto wrecking and/or scrap yard—20 years. d. Contractor's storage yard—20 years e. Outdoor shooting range—18 months; provided that the amortization period may be replaced by an executed development agreement. f. Surface mining operation—Five years, except where a vested right exists. g. Mobile recycling—Six months. h. Trash enclosure—One year. The City Council may consider a term pursuant to this list or establish an alternative term, as long as the term is long enough for the existing business to amortize any improvements they may have made to the building/structure they occupy. DISCUSSION AND DIRECTION REGARDING VAPE SHOPS, TOBACCO STORES, HOOKAH LOUNGES AND OTHER SIMILAR USES IN THE CITY OF AZUSA October 19, 2020 Page 2 NEXT STEPS: Future standards or regulations related to the subject uses will require amendments to the AMC (and possibly the TOD Specific Plan). The time line for developing these amendments depends on their depth and complexity. Amendments related to the subject uses would first require review by the City’s Planning Commission prior to a related public hearing before the City Council. A simple code amendment can be developed and prepared for review by the Planning Commission within approximately one month’s time (depending on meeting schedule, etc.). A more complex set of amendments could be developed within a 2 to 4 month timeframe. Upon receipt of direction on the subject matter, staff will work with legal counsel to develop amendments to be brought forth to the City’s Planning Commission and City Council. However, the Council may also direct staff to prepare an urgency ordinance containing the same development standards so that it takes effect immediately. The regular version of the ordinance would then replace the urgency ordinance. FISCAL IMPACT: Staff is only seeking direction at this time from the City Council. Therefore, there are no fiscal impacts associated with Council’s review of the matter. Prepared by: Reviewed and Approved: Matt Marquez Sergio Gonzalez Economic & Community Development Director City Manager Attachment: 1) TOD Specific Plan Boundary/District Map DISCUSSION AND DIRECTION REGARDING VAPE SHOPS, TOBACCO STORES, HOOKAH LOUNGES AND OTHER SIMILAR USES IN THE CITY OF AZUSA October 19, 2020 Page 2