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HomeMy WebLinkAboutMinutes - 09/17/2014 - Planning and Zoning Commission (2)City of McHenry Planning and Zoning Commission Minutes September 17, 2014 Chairman Strach called the September 17, 2014 regularly scheduled meeting of the City of McHenry Planning and Zoning Commission to order at 7:30 p.m. In attendance were the following: Vallez, Bromley, Nadeau, Sobotta, Strach, and Thacker. Absent: Doherty. Also in attendance were: Deputy City Administrator Martin and Planning, City Attorney Kelly Cahill, and Zoning Secretary Wolf. Approval of Minutes Motion by Sobotta, seconded by Bromley, to approve the minutes of the Planning and Zoning Commission Meeting as presented: August 20, 2014 regularly scheduled meeting. Voting Aye: Bromley, Vallez, Nadeau, Sobotta, Strach and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Doherty. Motion carried 6-0. Public Hearing: PolyOne Corp. File No. Z-844 921 Ridgeview Drive Conditional Use Permit to allow outdoor storage tanks/silos and dust collectors and any variances required to effectuate the aforementioned request Chairman Strach called the Public Hearing to order at 7:35 p.m. regarding File No Z-844 an application for a conditional use permit to allow outdoor storage tanks/silos and dust collectors and any variances required to effectuate the aforementioned request as submitted by James Albert, PolyOne Corp. for the property located at 921 Ridgeview Drive, McHenry, IL. Chairman Strach stated Notice of the Public Hearing was published in the Northwest Herald on September 2, 2014. Notices were mailed to all abutting property owners of record as required by ordinance. The subject property was posted. A Certificate of Publication and Affidavit of Compliance with notice requirements are on file in the City Clerk’s Office. In attendance was James Albert, 1126 Tyme Court, Gurnee, IL 60031, representing PolyOne Corp., 833 Ridgeview Dr., McHenry, IL 60050 who was sworn in by Chairman Strach and provided a summary of the request before the Commission at this Hearing stating he is here to request a conditional use permit for resin and silo storage behind the PolyOne facility at 921 Ridgeview Dr. Planning and Zoning Commission August 20, 2014 Page 2 Deputy City Administrator Martin provided the Commission with the Staff Report regarding this matter stating the applicant is requesting a conditional use permit to allow outdoor storage tanks/silos and dust collectors and any variances required to effectuate the aforementioned request. PolyOne is a manufacturer of thermoplastic pellets for the plastic injection molding industry. The plastic pellets are used in common household products including: handles on toothbrushes, razors and hand and power tools. Currently, PolyOne operates their thermoplastic manufacturing at 833 Ridgeview Drive in the Inland Business Park but wants to expand this operation to include 921 Ridgeview Drive, located immediately south of 833 Ridgeview Drive. As part of their manufacturing process at 833 Ridgeview Drive, PolyOne utilizes four silos to store a raw powder material which is then extracted to manufacture finished plastic products. A cooling tower and dust collector are also utilized as part of the manufacturing of raw material at 833 Ridgeview Drive. Currently the building at 921 Ridgeview Drive is utilized for professional/engineering offices, warehousing and distribution of thermoplastic material for PolyOne. PolyOne is interested in expanding their manufacturing operation at 921 Ridgeview Drive similar to the operation currently being conducted at 833 Ridgeview Drive, and is requesting a conditional use permit to allow four silos, a dust collector and a cooling tower to facilitate the operation. All of these structures would be located to the west of the building and immediately adjacent to the Union Pacific Railroad Tracks as depicted on the site plan. The silos would be placed on concrete pads, two on the north side of the building and two on the south side of the building, and a dust collector and cooling tower would be constructed to the west of the building in- between the silos on the north and south sides. A six-foot high chain link fence would enclose the silos, dust collector and cooling tower primary for security purposes. The height of these structures has not been determined as of yet, however the existing silos at 833 Ridgeview Drive are approximately 45’ tall. The proposed silos, cooling tower and dust collector would not increase traffic, would not have any adverse impact on the environment (noise generated from the silos, cooling tower and dust collector is minimal) and the structures back-up to the Union Pacific Railroad, therefore there would be no impact on neighborhood character or adjacent residential to the west. There is a great deal of mature vegetation west of 921 Ridgeview Drive backing-up and adjacent to the Union Pacific Railroad Tracks. Finally, the proposed conditional use will have no additional impact to public service and facilities or public safety and health. Staff believes the proposed conditional use is crucial to maintaining an existing growing business, allowing expansion of their manufacturing operation to a second building. The business has been an asset to the City for 17 years and the proposed expansion will facilitate economic growth for the company, the City and surrounding region. Staff has no concerns with Planning and Zoning Commission August 20, 2014 Page 3 this request and recommends approval of a Conditional Use Permit to allow four outdoor storage tanks/silos, a cooling tower and a dust collector and any variances required to effectuate the aforementioned request for the property located at 921 Ridgeview Drive. The location of the aforementioned structures shall be in substantial conformance with the site plan as submitted and include a minimum six-foot high security fence as indicated in the applicant’s narrative. Staff finds that the requirements in Table 31 of the Zoning Ordinance have been met. Chairman Strach invited questions and/or comments from the Commission. Commissioner Nadeau asked, from a public safety standpoint, if there is any possibility of the silos exploding. Mr. Albert replied the product kept in the silos is not technically explosive. Mr. Albert also stated he has been in this business for 25 years and there have been no issues with explosion at any facility of this type to his knowledge. Commissioner Nadeau inquired if there is any concern with the cooling towers freezing. Mr. Albert stated the water is heated in the plant; the towers simply try to lower the temp in the water so it can be reused in the facilities. The water in the cooling towers is nowhere close to freezing points and the water is moving through the towers. Fans control temperatures in the towers. Commissioner Sobotta asked if the pipes to the cooling towers are insulated. Mr. Albert stated they were not, but the plant does not shut down and all preventive measures are taken to be sure everything runs smoothly so in his opinion the pipes don’t need to be insulated. Chairman Strach opened the floor to questions and comments from the audience. There was nobody in attendance who wished to address the Commission regarding this matter. Chairman Strach closed the public comment portion of the hearing at 7:40 p.m. Commissioner Nadeau commended the report and photos presented by Deputy City Administrator Martin stating they made the presentation very easy to visualize and follow. Motion by Nadeau, seconded by Thacker, to recommend to the City Council with regard to File No. Z-844, an application for a conditional use permit to allow four outdoor storage tanks/silos, a cooling tower and a dust collector and any variances required to effectuate the aforementioned request on the property located at 921 Ridgeview Drive as presented by applicant PolyOne Corp, conditioned on the location of the aforementioned structures being in substantial conformance with the site plan as-submitted and including a minimum six-foot high security fence as indicated in the applicant’s narrative, be granted, and that Table 31, of the Zoning Ordinance, has been met. Planning and Zoning Commission August 20, 2014 Page 4 Voting Aye: Bromley, Vallez, Nadeau, Sobotta, Strach, and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Doherty. Motion carried 6-0. Chairman Strach closed the Public Hearing regarding File No. Z-844 at 7:42 p.m. Public Hearing: Phoenix Farms of Illinois, LLC File No. Z-843 1515 Miller Parkway Use variance to allow the construction of a medical cannabis cultivation center under the Compassionate Use of Medical Cannabis Pilot Program Act and any other Variances required to effectuate the aforementioned request Chairman Strach called the Public Hearing to order at 7:44 p.m. regarding File No Z-843 an application for a use variance to allow the construction of a medical cannabis cultivation center under the Compassionate Use of Medical Cannabis Pilot Program Act and any other variances required to effectuate the aforementioned request as submitted by Phoenix Farms of Illinois, LLC, for the property located at 1515 Miller Parkway, McHenry, IL. Chairman Strach stated Notice of the Public Hearing was published in the Northwest Herald on September 2, 2014. Notices were mailed to all abutting property owners of record as required by ordinance. The subject property was posted. A Certificate of Publication and Affidavit of Compliance with notice requirements are on file in the City Clerk’s Office. In attendance was Stephen Morrill, attorney and registered lobbyist for Phoenix Farms of Illinois, who provided a summary of the request before the Commission at this Hearing stating he has worked with Phoenix Farms for a year and did extensive research with them learning about the industry and key points in Illinois for this endeavor. Mr. Morrill stated virtually every law firm in Chicago is representing someone who is involved with this industry and it has become very mainstream. The law was amended this past spring session to add the additional medical condition in Illinois of epilepsy for children, which passed almost unanimously. Mr. Morrill stated there are now 22 states allowing medical marijuana and it has become an increasing subject of serious medical acceptance and study. State of Illinois Legislators wanted to make Illinois the strictest regulatory regimen in the country and formed their policy borrowing from all 22 states. The industry is highly regulated by 5 separate state agencies which are directly involved with the daily regulation of this field. Cultivation centers are an innocuous use by design and allows no signage, requires a highly secure facility, is inspected weekly by the state police, and only one facility is allowed in each police district which helps each district in not becoming over-taxed with the inspection process. Mr. Morrill stated Planning and Zoning Commission August 20, 2014 Page 5 McHenry is in state Police District 2 and there is a very competitive application process among the five counties in this district. Phoenix Farms has substantial experience in this area and is highly thought of as professionals in Illinois. The proposal is comprehensive, has an outstanding security plan, well developed staffing and operations plans, and includes a strong community benefit plan. The community benefit plan includes tax revenue to the City and required contributions to important civic organizations including the Riverwalk Foundation, Colby Peterson Farm Foundation and any other organizations deemed by City Council over time. Mr. Morrill stated this is a 4-year pilot program and they hope licenses will be awarded by end of this year. It will possibly take six months to build out facilities to meet the strict requirements in place and then begin getting inventory of product. Subsequently there will be about two years left of the pilot program. At that time the law will expire and the facility will immediately cease operation unless the law is reenacted by the State of Illinois and the process will be evaluated again at the end of that period. Mr. Morrill mentioned a part of the application process requires them as a licensee to support drug abuse prevention efforts statewide and they have an especially strong proposal in that regard. Mr. Morrill further commented the staff report done by Deputy City Administrator Doug Martin was clear and comprehensive. Phoenix Farms has a very strong business plan and strong financial backing and approval of this use will bring a building that has been vacant for three years into useful life, initially providing 35-50 jobs and increasing on up to 150 jobs when the facility is at its full operational peak. Deputy City Administrator Martin provided the Commission with the Staff Report regarding this matter stating the applicant is requesting a use variance to allow the construction of a medical cannabis cultivation center under the Compassionate Use of Medical Cannabis Pilot Program Act and any other variances required to effectuate the aforementioned request. He further stated at the September 8, 2014 the City Council approved a letter of support and a Community and Economic Contribution Agreement with Phoenix Farms of Illinois, however these items are exclusive of zoning consideration. If zoning is not approved the Community and Economic Contribution Agreement would be null and void. Additionally, at the September 8 City Council meeting the Council approved amendments to the zoning ordinance and municipal code regulating medical marijuana dispensaries and cultivation centers. These are the amendments which were presented to the Planning and Zoning Commission in August. In explanation of the agreement and letter of support, Deputy City Administrator Martin stated obtaining a license for a cultivation center is an extremely competitive process and while full zoning approval is not required at time of application to the State it places companies without full approval at a disadvantage. Phoenix Farms requested the City Council consider a Community and Economic Contribution agreement and a letter of support to leverage their opportunity to be awarded a license. Neither the letter of support nor the Community and Economic Contribution Agreement guarantees zoning approval by the City or receipt of a license for a cultivation center from the State but provides strength to Phoenix Farm’s application for a cultivation center license with the State of Illinois. Without some type of Planning and Zoning Commission August 20, 2014 Page 6 support from the City, due to the highly competitive nature associated with obtaining a cultivation license, Phoenix’s application will most likely not be strong enough to obtain a license for a cultivation center in the City of McHenry. Phoenix Farms had to provide public notice for the Planning and Zoning meeting on September 17 prior to the approval of the amendments to the zoning ordinance which were approved by the City Council on September 8; therefore their request is also for a use variance to allow a medical marijuana cultivation center at 1515 Miller Parkway. Cultivation centers are allowed as conditional uses in the I-1 Industrial District and BP Business Park Districts. Deputy City Administrator Martin stated the regulations that City Council approved and commented they are standard in conformance with the state statute. The applicant will also submit an affidavit with the City confirming compliance with our regulations and the requirements of the State Act. Deputy City Administrator Martin summarized the criteria the state takes into consideration in the application process, stating most of the regulatory portion of the process is done by the state. Staff met with Phoenix Farms to discuss their business, operation and security plans for the subject property. Staff was very comfortable with the preliminary discussions with the applicant. From staff’s perspective the proposed use is a tremendous economic development opportunity for the City. The use would fill a 44,000 square-foot building which has been vacant for several years; result in the creation of approximately 25-30 jobs in the short-term with the potential of many more employment opportunities following the establishment of the facility and development of the operation in the long-run. Form E of the City’s zoning ordinance includes approval criteria to be considered when evaluating a request for a use variance. There are five criteria which the applicant must satisfy to receive a positive recommendation for the request: practical difficulties or particular hardship, reasonable return, unique circumstances, not altering local character and consistency with the comprehensive plan. As previously stated the building on the subject property has been vacant for several years. The site is unique for the simple fact that it meets the strict locational requirements outlined in the Act. The proposed use will not alter the character of the area, as it incorporates the following uses which are appropriate for and consistent with a diverse business park, such as the McHenry Corporate Center: warehousing, office, manufacturing, distribution and research and development. The proposal is consistent with the comprehensive and economic development plans and goals for the City. Deputy City Administrator Martin read the security portion of the State Act highlighting the portions discussing the security plans being reviewed by the state police and the facility being accessible to law enforcement agencies and that all distribution must take place in enclosed and locked facilities at the address of the property and only to approved distribution facilities in order to point out the extensive security measures that must be in place for the facilities to operate. Planning and Zoning Commission August 20, 2014 Page 7 Staff recommends approval of a use variance to allow a medical cannabis cultivation center on the subject property and any other variances required to effectuate the aforementioned request in accordance with the Compassionate Use of Medical Cannabis Pilot Program Act subject to the following conditions: • Applicant shall file an affidavit with the City affirming compliance with the setback requirement from the property line of a pre-existing property zoned for residential use, public or private nursery school, preschool, primary or secondary school, day care center, day care home or residential care home and all other requirements of the Act. • No retail sales shall be conducted on the subject property. • Proposed cultivation center must comply with parking and loading requirements as stipulated under “Industrial-Manufacturing, Research, Testing” in Article VII Off-Street Parking & Loading Table 13: Required Parking Spaces for Non-Residential and Non- Lodging Uses. • Applicant shall fully screen and enclose any outdoor dumpster/refuse container in accordance with the Business Park Design Guidelines in the zoning ordinance. • Use Variance for a cultivation center on the subject property shall be null and void if applicant does not secure a license to operate a cultivation center from the Illinois Department of Agriculture by February 15, 2015; and Staff finds all requirements in Table 32(A) of the zoning ordinance have been satisfied. City Attorney Kelly Cahill suggested an additional condition be added stating the applicant will comply with the Community and Economic Development Contribution Agreement Chairman Strach invited questions and/or comments from the Commission. Commissioner Nadeau inquired as to how the facility will be secured. Attorney Morrill stated security will involve 24/7 on-site security personnel, a regimen of security cameras that visually take in every square foot of the interior and perimeter of the facility that are wired into the Illinois State Police and the local police department. Comprehensive background checks will be done on all owners and employees. The State of Illinois has a sophisticated way of monitoring every bit of product that is developed in the facilities with the use of sophisticated RFID tagging. Illinois not in the forefront in this industry and is being very cautious. Security is so important in the application process it is considered the tie-breaker category of all of the evaluation categories for the state in its licensure evaluation. Commissioner Nadeau asked how the garbage generated in the facility is protected. Attorney Morrill stated there are no exterior dumpsters and even refuse containers must be internal to the building. Refuse control takes up an entire segment of the application - even stems must be carefully monitored and accounted for. There is no traditional garbage pickup. Planning and Zoning Commission August 20, 2014 Page 8 Commissioner Nadeau inquired how city tax revenue is generated. Attorney Morrill stated the state statutory imposed tax level was set low at a 7% state excise tax at the wholesale cultivation level. At the retail level the sales tax is at the food and drug level which is a reduced number. Phoenix Farms has signed an operating agreement with McHenry City Council which voluntarily subjects themselves to a substantial tax level on their income and a large percent (about half) goes to the local community. The industry will be competitively neutral for a statewide uniform imposed tax and will partner with communities looking for host community tax revenues. There will be a group of incumbent licensees invested in not seeing an expansion of the number of facilities at the end of the pilot program. Commissioner Nadeau inquired how pickup and delivery of product will be handled and whether or not trucks will be identified. Attorney Morrill stated the State is very clear on the requirement which allows for no signage, logos, diagrams or insignias that even hint to the product. The State requirement isn’t an armored vehicle but a vehicle with a locked separate container in the back. The applicant is, however, looking at non-descript retired armored vehicles as a delivery mechanism and they are looking to hire locally and work often with veteran communities as a feeder for many of the positions in the facility. Commissioner Nadeau asked how many pounds of product might be delivered on a daily basis from the facility. Attorney Morrill stated there are so many variables he cannot answer that question but reiterated again everything is highly regulated again. He stated there won’t be daily shipments in and out. Deputy City Administrator Martin stated he did extensive research and made phone calls to Colorado to understand the production process. Production has a lot to do with the number of lights in the facility and takes into account the harvest, which can take 3-4 months, producing approximately 4-5 harvests per year. It all depends on the facility size, the number of lights and how well the harvest does. Attorney Morrill stated they are required to provide notification to the State police every time product is transported. Commissioner Bromley asked if there are any private day care centers in any of the manufacturing facilities in the industrial area the building is in. Deputy City Administrator Martin stated the necessary public notice was given and he did his own search and did not find any that are within the boundaries of the limitations. Commissioner Thacker inquired what the requirements are if someone would want to establish a new day care center in future in that area. Attorney Morrill stated the law only addresses pre-existing day care centers, schools, etc. but that the City could make that a condition if they wanted to. Commissioner Bromley inquired as to the process that might happen at end of the trial pilot period if this use does not become legal. Attorney Morrill stated the day the trial period ends without an extension they must close but that they will own the facility and will have to cease operations and either sell or find another use for the facility. Planning and Zoning Commission August 20, 2014 Page 9 Chairman Strach opened the floor to questions and comments from the audience. Laura Crain, 800 Roger Rd., Woodstock IL 60098, was sworn in by Chairman Strach prior to addressing the Commission. Ms. Crain stated she wanted to commend city of McHenry for doing their homework on this process. Ms. Crain stated she is speaking on behalf of the McHenry County Substance Abuse Coalition and distributed copies of a letter they sent to City Administrator Derik Morefield. Ms. Crain said it sounds like signage has been addressed by Phoenix Farms and their concern is the impression they leave in the community about acceptability. They are on board with the use of medical cannabis but unintentional use by youth is a consequence that needs to be addressed. Everything she has heard at this hearing assures her that Phoenix Farms is intentionally looking at that issue and she appreciates that because this is the Coalition’s major concern. Ms. Crain asked that the City address the issue of fire safety with the fire department to be sure the appropriate equipment and processes are in place for a hazardous material incident. Ms. Crain looks forward to working with the City and the applicant as a coalition. They are not against the cultivation centers or distribution centers but rather just want to make sure everyone is safe. Deputy City Administrator Martin asked for clarification of the signage regulations addressed by the State. Attorney Morrill stated signage is not addressed in the state statutes but it is addressed in the state rules and regulations very clearly: no signage, no words, no photos, no suggestive diagrams are allowed. City Attorney Kelly Cahill suggested adding a condition that the applicant must be in compliance with all state regulations. Laura Crain stated the regulations do not address advertising on social media so the City may want to address that separately. Chairman Strach closed the public comment portion of the hearing at 8:21 p.m. Deputy City Administrator Martin asked City Attorney Kelly Cahill to clarify the additional conditions requested in the motion. Motion by Nadeau, seconded by Bromley, to recommend to the City Council with regard to File No. Z-843, an application for a use variance to allow a medical cannabis cultivation center on the subject property located at 1515 Miller Parkway as presented by applicant Phoenix Farms, LLC, and any other variances required to effectuate the aforementioned request in accordance with the Compassionate Use of Medical Cannabis Pilot Program Act subject to the following conditions: • Applicant shall file an affidavit with the City affirming compliance with the setback requirement from the property line of a pre-existing property zoned for residential use, public or private nursery school, preschool, primary or secondary school, day care center, day care home or residential care home and all other requirements of the Act; • No retail sales shall be conducted on the subject property; • Proposed cultivation center must comply with parking and loading requirements as stipulated under “Industrial-Manufacturing, Research, Testing” in Article VII Off-Street Planning and Zoning Commission August 20, 2014 Page 10 Parking & Loading Table 13: Required Parking Spaces for Non-Residential and Non- Lodging Uses; • Applicant shall fully screen and enclose any outdoor dumpster/refuse container in accordance with the Business Park Design Guidelines in the zoning ordinance; • Use Variance for a cultivation center on the subject property shall be null and void if applicant does not secure a license to operate a cultivation center from the Illinois Department of Agriculture by February 15, 2015; • Applicant shall comply with all terms and conditions of the Community and Economic Contribution Agreement; and • Applicant is required to comply with all state laws, rules and regulations including those for signage. as amended, be granted, and that Table 32(A), of the Zoning Ordinance, has been met. Voting Aye: Bromley, Vallez, Nadeau, Sobotta, Strach, and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Doherty. Motion carried 6-0. Attorney Morrill stated the Staff they have worked with here in the City has been very diligent and professional and they are hopeful they are successful and look forward to years ahead of being a good corporate citizen in the City of McHenry. Chairman Strach closed the Public Hearing regarding File No. Z-843 at 8:26 p.m. Staff Report The next meeting of the Planning and Zoning Commission will be Wednesday October 22, 2014. There is an application for a use variance for a medical marijuana dispensary at 616 S. IL Rt. 31 on file. Adjournment Motion by Nadeau, seconded by Bromley, to adjourn the meeting at 8:30 p.m. Voting Aye: Bromley, Vallez, Nadeau, Sobotta, Strach and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Doherty. Planning and Zoning Commission August 20, 2014 Page 11 Motion carried 6-0. The meeting was adjourned at 8:30 p.m. Respectfully submitted, _____________________________________ Dorothy M. Wolf, Planning & Zoning Secretary City of McHenry