Sacramento Planning and Design Commission Meeting - January 27, 2022

The Sacramento Planning and Design Commission held a regular meeting on Thursday, January 27, 2022, beginning at 5:30 p.m. via teleconference due to the COVID-19 pandemic. The commission addressed three public hearings: an appeal of the planning director’s determination that a cannabis conditional use permit (CUP) had expired, a conditional use permit for a delivery-only cannabis dispensary, and an amendment to the Gateway Center Planned Unit Development (PUD) to allow multi-unit residential uses. The meeting also included a consent calendar, a director’s report, and commissioner comments. The meeting adjourned at approximately 8:30 p.m.

Consent Calendar

• Approval of January 13, 2022, Minutes (File ID: 2022-00247): The commission unanimously approved the minutes from the previous meeting.
• Teleconferencing Meetings During COVID-19 State of Emergency (30-Day Finding) (File ID: 2022-00269): The commission approved a motion to continue meeting by teleconference pursuant to California Government Code section 54953(e), citing the ongoing emergency and risks to health and safety.

Director’s Report

• Stacia Cosgrove, Principal Planner, reported two updates: (1) the City Council had denied an appeal of the commission’s decision to deny a conditional use permit for off-site alcohol sales at a gas station on West El Camino and Orchard Lane; (2) the Council approved the 2022 Planning and Zoning Work Program on Tuesday, January 25, 2022.

Public Comments & Testimony

• Item 4 – Appeal of Planning Director’s Determination of Expiration (M21-011): One member of the public, Don Carlson, representing the Power and Alliance, spoke in support of staff’s recommendation to deny the appeal. He acknowledged the applicant’s investments but stated that the cap on cannabis cultivation square footage must be upheld and that the project should be denied.
• No public comments were received on Items 5 or 6, or on matters not on the agenda.

Discussion Items

Item 4 – Appeal of Planning Director’s Determination of Expiration (M21-011)

• Location: 5801 & 5811 Alder Avenue (also 8955 & 8951 Osage Avenue), District 6.
• Background: The applicant, Remy Handel, had been granted a conditional use permit (CUP) for cannabis production on January 30, 2019, with a condition that building permits must be obtained and construction commenced by February 5, 2020, or the CUP would expire. This one-year condition was imposed due to a Southeast Area undue concentration ordinance (cap) adopted in June 2018. The applicant did not apply for a building permit or seek an extension before the deadline. A building permit was applied for after expiration, and the planning director issued a formal determination of expiration on September 16, 2021. The applicant appealed.
• Applicant’s Position: The applicant argued that (1) they were not notified of the expiration, (2) they spent significant money on electrical upgrades ($378,000) and site work, and (3) they relied on oral promises from staff (Christian Svensk) that the city would work with them and that progress would suffice. The applicant’s attorney, Jacob Callaghan, emphasized that the city’s internal failure to catch the expiration during plan check (which took over a year) should not penalize the applicant.
• Staff’s Position: Staff argued that the conditions were clear, the applicant was responsible for tracking expiration dates, and that the work done (electrical, roof, trenching) did not constitute “construction” for the cannabis use. Staff also noted that the cap on square footage was intended to ensure fair allocation, and that other applicants were waiting for the square footage to become available. No extension request was ever submitted.
• Commissioner Questions and Deliberation: Several commissioners asked about the clarity of conditions, the city’s intake process, and whether the applicant had been misled. Commissioner Chase expressed concern about the city’s failure to catch the expiration early, noting that the applicant had acted in good faith. Commissioner Wallace suggested revisiting outreach processes to avoid similar issues. The city attorney clarified that the commission could not apply equitable estoppel; the question was whether the building permit was obtained before expiration. The vote was 12 in favor of denial (Commissioner Chase dissenting).

Item 5 – BLK Cannabis Delivery-Only Dispensary CUP (P21-010)

• Location: 700 El Camino Avenue, District 2.
• Proposal: A conditional use permit to establish a delivery-only cannabis dispensary in an existing 5,332-square-foot commercial building, with site plan and design review for exterior renovations. The project was found exempt from CEQA under Guidelines Section 15301 (Existing Facilities).
• Outcome: The commission approved the item without discussion. The motion passed unanimously.

Item 6 – Gateway Center Planned Unit Development Amendment (P21-034)

• Location: Venture Oaks Way, approximately 550 feet east of Gateway Oaks Drive, District 3.
• Proposal: An amendment to the Gateway Centre PUD guidelines and schematic plan to allow multi-unit dwelling uses on a 14.5-acre site currently zoned Office Business (OB-PUD). The amendment would bring the PUD into conformance with the underlying OB zone, which allows multi-unit dwellings by right. No development plans were submitted; future projects would require full review. The applicant held a community outreach meeting with the River Oaks Community Association, which offered no objection.
• Outcome: The commission approved the amendment unanimously. Commissioner Wang Connelly asked about shared parking strategies, and the applicant noted that would be considered at the development stage.

Key Outcomes

• Item 4 (Appeal of Expiration): The commission denied the appeal by a vote of 12–1 (Commissioner Chase dissenting), upholding the planning director’s determination that the CUP had expired. The decision is appealable to the City Council.
• Item 5 (BLK Cannabis Dispensary): Approved unanimously. The conditional use permit, environmental exemption, and site plan/design review were all granted.
• Item 6 (Gateway Center PUD Amendment): Approved unanimously. The resolution adopting findings of fact for the amendment passed, allowing multi-unit residential uses in the OB-PUD zone.
• Commissioner Comments: Commissioner Wallace suggested that the city revisit outreach and engagement processes for CUP expiration conditions, particularly given the pandemic and changes in review procedures. Staff indicated they would work to include clearer guidance in future staff reports.