Planning Commission — Thursday, July 8, 2021

Memorandum STAFF REPORT TO: Planning Commission FROM: Community Development Department Prepared by: Kimley Horn Edited by: KS/EJP DATE: July 8, 2021 RE: SourzHVR Inc; Major Use Permit (UP 21-10), Initial Study (IS 21-10), Mitigated Negative Declaration Supervisor District 1 ATTACHMENTS: 1. Vicinity Map 2. Property Management Plan 3. Agency and Public Commentary 4. Proposed Conditions of Approval 5. Site Plans 6. Biological Assessment 7. Initial Study (IS 21-10) I. EXECUTIVE SUMMARY The applicant is requesting approval of a Use Permit for commercial cannabis cultivation, distribution, and a nursery located at 11650 High Valley Rd in Clearlake Oaks, CA 95423. The project property includes a total of seven separate parcels, 006-004-07 (649.28 acres), 006-004-24 (429.31 acres), 006-004-25 (10.85), 006-004-06 (39.60 acres), 006-002-04 (321.74 acres), 006-002-09 (103.35 acres), and 006-009-36 (85.83 acres) totaling 1,639.96 acres. The proposed project site is located approximately 7 miles northwest of the City of Clearlake, CA, at 11650 High Valley Road. The proposed cultivation and related activities would occur within APN 006-004-07 (project site). The proposed project includes (80) A-Type 3 "outdoor" licenses for 80 acres of outdoor cannabis cultivation, (1) Type 11 "distribution" license to transport cannabis goods, and (1) A-Type 4 "nursery" license for the propagation of small plants and to conduct research and development in accordance with California Code of regulations Section 8302. The applicant is also proposing construction of 11 buildings totaling 111,000 ft2, including one refrigeration building (Please refer to Attachment 5 for full building design details). These buildings will be utilized for the drying and storage of product and materials and to facilitate overall operations. Lastly, the project includes the use of an existing 13,000 sf conference center for packing, distribution (shipping and receiving), and other ancillary uses such as office space. No internal or external improvements to this structure are proposed. Staff is recommending approval of Major Use Permit UP 21-10, and the adoption of a Mitigated Negative Declaration based on the environmental analysis (Initial Study IS 21-10) with the incorporated Mitigation Measure and Conditions of Approval. II. RECOMMENDATIONS Staff recommends that the Planning Commission: A. Accept the finding of a Mitigated Negative Declaration 1. The project is consistent with CEQA. 2. Potential environmental impacts related to air quality can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1, AQ-2, AQ-3, AQ4, AQ-5, AQ-6, AQ-7 and AQ-8. 3. Potential environmental impacts related to biological resources can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1, BIO-2, and 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, CUL-2, and 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, NOI-2, and NOI-3. 6. This project remains consistent with the Lake County General Plan, Shoreline Communities Area Plan and the Lake County Zoning Ordinance. 7. This project is consistent with land uses in the vicinity. 8. This project will not result in any significant adverse environmental impacts. B. Approve Major Use Permit, UP 21-10 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. 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. This project is consistent with the Lake County General Plan, Shoreline communities Area Plan, and 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. 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, Article27, Section 1.ii.(i). Sample Motions: Mitigated Negative Declaration I move that the Planning Commission find that the Initial study prepared for Major Use Permit (UP 21-10) applied for by SourzHVR Inc on a property located at 11650 High Valley Rd, 4919 New Long Valley Rd, 4963 New Long Valley Rd, 10788 High Valley Rd, 10750 High Valley Rd, 10945 High Valley Rd, 4491 New Long Valley Rd, in Clearlake Oaks, CA 95423, further described as APN: 006-004-06; 006-004-07; 006-004-25; 006-002-04; 006-009-36; 006-004-24; 006-002-09, based on the findings set forth in Staff Report dated July 8, 2021. Major Use Permit (UP 21-10) I move that the Planning Commission find that the Major Use Permit (UP 21-10) prepared for the project proposed by SourzHVR Inc on a property located at 11650 High Valley Rd. Clearlake Oaks, CA, further described as APN: 006-004-06; 006-004-07; 006-004-25; 006-002-04; 006-009-36; 006-004-24; 006-002-09 does meet the requirements of Section 51.4 of the Lake County Zoning Ordinance and the Major Use Permit be granted subject to the conditions and with the findings listed in the staff report dated May 11, 2021. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination.

Memorandum STAFF REPORT TO: Planning Commission FROM: Carol Huchingson, Chief Administrative Officer David Boesch, Managing Consultant Prepared by: Eric Porter, Associate Planner DATE: July 8, 2021 RE: Voigt Road Holdings LLC; Major Use Permit (UP 19-41) and Initial Study (IS 19-60) Supervisor District 4 ATTACHMENTS: 1. Vicinity Map 2. Site Plans 3. Property Management Plan 4. Agency Comments 5. Proposed Conditions of Approval 6. Initial Study IS 19-60 7. Public Comments (none submitted) I. EXECUTIVE SUMMARY The applicant is requesting a major use permit for two (2) A-Type 3B "medium mixed light" licenses consisting of 124,800 square feet (sq. ft.) of cultivation area and 44,000 sq. ft. of canopy area to be completed in three phases, and an A-Type 13 Self Distribution license, however the property is located within a mapped Farmland Protection Area which requires greenhouses as the exclusive growing venue for cannabis per County Ordinance No. 3103. The applicant is aware of this and is proposing greenhouse cultivation. The property is located at 425 and 500 Voigt Road, Lakeport, and is APNs: 008-032-65 and 008-043-02. The applicant is proposing: * Phase I: One (1) 240' x 120' greenhouse (28,800 sq. ft.) One (1) 50' x 75' drying building (3,750 sq. ft.) * Phase II: One (1) 240' x 120' greenhouse (28,800 sq. ft.) One (1) 50' x 75' drying building (3,750 sq. ft.) * Phase III: Two (2) 240' x 120' greenhouses (56,600 sq. ft.) Construction * Phased construction of the site would take place over a three year period * Phase I (2021) would consist of a 95' x 50' metal utility building and 30' x 120' greenhouses, and Improvements to interior driveway to meet PRC 4290 and 4291 road standards * Phase II (2022) would consist of a 2nd 95' x 50' metal utility building, 30' x 120' greenhouses, and two blocks of 30' x 120' greenhouses for use as nurseries (immature plants) * Phase III (2023) would consist of two blocks of 30' x 120' greenhouses. * Projected construction-related estimated daily trips would range between four and eight trips per day, primarily to bring construction-related supplies to the site (structures, fencing, restroom items, fabric pots, soil). FARMLAND PROTECTION AREA Post Construction Cultivation Activities * Self-distribution; an A-Type 13 self-distribution is requested * On-site drying, trimming and packaging is proposed * The applicant and has provided well data showing the adequacy of the water table in this location. * Fertilizer is packed in five-gallon, resealable containers and stored in a secondary storage container located in a locked storage shed adjacent to the canopy site. Fertilizer is entirely organic * The remaining containers are returned to the supplier. * The facility is open for delivery and pick-ups Monday through Saturday, 7:00 AM to 7:00 PM, and Sunday 12:00 PM to 5:00 PM. * Up to two employees working on the site during peak harvest times, and between one and two employees working on non-peak harvest times. * Estimated daily vehicle trips would range between two and four following construction. Staff is recommending Approval with Conditions of UP 19-41. II. RECOMMENDATION Staff recommends the Planning Commission: A. Adopt mitigated negative declaration (IS 19-60) for Major Use Permit (UP 19-41) with the following findings: 1. Potential impacts to Aesthetics can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1, AES-2 and 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, AQ-2, AQ-3, AQ-4, AQ-5, AQ-6, and AQ-7. 3. Potential environmental impacts related to Cultural / Geological / Tribal Resources can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 and CUL-2. 4. Potential environmental impacts related to Noise can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1, NOI-2 and NOI-3. 5. As mitigated through specific conditions of approval, this project will result in less than significant environmental impacts. 6. Any changes to the project will require either an amended Use Permit and/or a new Use Permit unless the Community Development Director determines that any changes have no potential increased environmental impacts. B. Approve Major Use Permit UP 19-41 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for with the change to the license type described herein 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. 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 can be mitigated to be reasonably adequate to safely accommodate the proposed use. 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 General Plan and any approved zoning or land use plan. 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 Section 1.i 8. The applicant is qualified to make the application described in Section 1.ii.(g) 9. The application complies with the qualifications for a permit described in Section 1.ii.(i) Sample Motions: Mitigated Negative Declaration I move that the Planning Commission find that the Initial Study (IS 19-60) applied for by Voigt Road Holdings LLC on property located at 425 and 500 Voigt Road, Lakeport, and further described as APNs: 008-032-65 and 008-043-02 will not have a significant effect on the environment and therefore a mitigated negative declaration shall be approved with the findings listed in the staff report dated July 8, 2021. Major Use Permit (UP 19-41) I move that the Planning Commission find that the Major Use Permit (UP 19-41) applied for by Voigt Road Holdings LLC on property located at 425 and 500 Voigt Road, Lakeport, and further described as APNs: 008-032-65 and 008-043-02 does meet the requirements of Section 51.4 of the Lake County Zoning Ordinance and the Major Use Permit be granted subject to the conditions and with the findings listed in the staff report dated July 8, 2021. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission's decision, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Planning Commission's final determination.

Memorandum STAFF REPORT TO: Planning Commission FROM: Eric Porter, Associate Planner DATE: July 8, 2021 RE: Coastle LLC; Major Use Permit (UP 21-02) and Initial Study (IS 21-02) Supervisor District 5 ATTACHMENTS: 1. Vicinity Map 2. Site Plans 3. Property Management Plan 4. Agency Comments 5. Proposed Conditions of Approval 6. Initial Study IS 21-02 7. Public Comments I. EXECUTIVE SUMMARY. The applicant is requesting a major use permit for: * Eleven (11) A - Type 3 "medium outdoor" licenses for a 487,922 sq. ft. of outdoor cultivation area contained within a 6' tall fenced enclosure. * One (1) A-Type 13 Self Distribution License. * The proposed cultivation areas will be surrounded by a 6-foot tall wire fence, with privacy mesh to screen the cultivation areas from any view * Nine (9) 2,500 gallon water tanks to be used for irrigation * One (1) 5,000 gallon water tank to be used for fire suppression * One (1) 9,600 sq. ft. barn to be used for drying and packaging (existing) * One (1) Agriculture well (existing) * On-grid power (existing) Staff is recommending Approval with Conditions of UP 21-02 RECOMMENDATION Staff recommends the Planning Commission: A. Adopt mitigated negative declaration (IS 21-02) for Use Permit (UP 21-02) with the following findings: 1. Potential impacts related to aesthetics can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1. 2. Potential environmental impacts related to air quality can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1, AQ-2, AQ-3, AQ-4, AQ-5 and AQ-6. 3. Potential environmental impacts related to Biological Resources can be mitigated to less than significant levels with the inclusion of mitigation measure BIO-1, BIO-2 and BIO-3. 4. Potential environmental impacts related to Cultural / Tribal Resources can be mitigated to less than significant impacts with the inclusion of mitigation measures CUL-1 and CUL-2. 5. Potential environmental impacts related to Geologic Resources can be mitigated to less than significant levels with the inclusion of mitigation measures GEO-1, GEO-2, GEO-3 and GEO-4. 6. Potential impacts related to Hazards can be mitigated to less than significant levels with the inclusion of mitigation measure HAZ-1. 7. Potential impacts related to noise can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1, NOI-2 and NOI-3. 8. As mitigated through specific conditions of approval, this project will result in less than significant environmental impacts. 9. Any changes to the project will require either an amended Use Permit and/or a new Use Permit unless the Community Development Director determines that any changes have no potential increased environmental impacts. B. Approve Use Permit UP 21-02 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. 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 can be mitigated to be reasonably adequate to safely accommodate the proposed use. 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 the applicable sections of the Lake County Zoning Ordinance, the General Plan and the Middletown Area Plan. 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 Section 1.i 8. The applicant is qualified to make the application described in Section 1.ii.(g) 9. The application complies with the qualifications for a permit described in Section 1.ii.(i) Sample Motions: Mitigated Negative Declaration I move that the Planning Commission find that the Initial Study (IS 21-02) applied for by Coastle LLC on property located at 6565 Wilkinson Road, 6620 State Route 29, and 6213 Wilkinson Road, Kelseyville; APNs: 007-015-63, 007-015-13 and 007-016-13 will not have a significant effect on the environment and therefore a mitigated negative declaration shall be approved with the findings listed in the staff report dated July 8, 2021. Major Use Permit (UP 21-02) I move that the Planning Commission find that the Use Permit (UP 21-02) applied for by Coastle LLC on property located at 6565 Wilkinson Road, 6620 State Route 29, and 6213 Wilkinson Road, Kelseyville; APNs: 007-015-63, 007-015-13 and 007-016-13 does meet the requirements of Section 51.4 of the Lake County Zoning Ordinance and the Major Use Permit be granted subject to the conditions and with the findings listed in the staff report dated July 8, 2021. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission's decision, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination.

Memorandum STAFF REPORT ADDENDUM TO: Planning Commission FROM: Prepared by: Eric Porter, Associate Planner DATE: July 8, 2021 RE: LDM Operations, Inc.; Major Use Permit (UP 19-20) and Initial Study (IS 19-35). APN: 007-021-23 Supervisor District 4 ATTACHMENTS: 1. Vicinity Map 2. Property Management Plan 3. Public Comments I. ADDENDUM SUMMARY File no. UP 19-20 went before the Planning Commission on June 24, 2021. The question of the name of the company was brought up, and the hearing was continued to July 8, 2021 to give staff an opportunity to confirm the corporate name. The official Incorporated name for the applicant is LDM Operations Inc. However, following the June 24, 2021 Planning Commission hearing, staff received a phone call from Nadia Jammal, one of the original LDM applicants. The call was received on June 25, 2021; Ms. Jammal indicated that LDM Operations Inc. was no longer affiliated with the 7295 Adobe Creek Road site (file no. UP 19-20), and that there 'was no application' due to disagreement with the property owner. About one month earlier, on May 29, 2021, staff received an email from Ms. Jammal requesting that the LDM file (two were submitted by LDM for two different locations) be allowed to continue. The application that Ms. Jammal was referring to was file no. UP 19-16, located at 22700 Morgan Valley Road, Lower Lake, rather than UP 19-20, however this was never stated in the email received by staff who assumed it pertained to UP 19-20, the 7295 Adobe Creek Road (Kelseyville) property. Because there is no longer an applicant for file no. UP 19-20, the application must be denied. Sample Motions: Mitigated Negative Declaration I move that the Planning Commission find that the Initial Study (IS 19-35) originally applied for by LDM Operations Inc. on property located at 7295 Adobe Creek Road, Kelseyville, and further described as APN: 007-021-23 is no longer valid for file no. UP 19-20 because there are no applicants as stated in the staff report addendum dated July 8, 2021. Major Use Permit (UP 19-20) I move that the Planning Commission find that the Use Permit (UP 19-20) originally applied for by LDM Operations Inc. on property located at 7295 Adobe Creek Road, Kelseyville, and further described as APN: 007-021-23 does not meet the requirements of Section 51.4 and Section 27(at) of the Lake County Zoning Ordinance and that the Major Use Permit be denied because there are no applicants as stated in the staff report addendum dated July 8, 2021. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination.