To: Zoning Administrator
From: Planning and Building Department
Agenda Section: Consent
SUBJECT:
title
CannaDreams, LLC; Special Permits
Assessor Parcel Numbers (APN) 108-026-006
Record No.: PLN-12088-SP
Ettersburg area
A Special Permit for the continued operation of an existing cannabis cultivation site consisting of 9,500 square feet of outdoor cannabis cultivation in greenhouses and 950 square feet of ancillary nursery space, a Special Permit to reduce the setback to BLM public land, and a Special Permit for reduction of the Streamside Management Area setback to allow for a hydroelectric facility on the onsite stream and for the point of diversion. Irrigation water is sourced from a point of diversion and is subject to forbearance. There will be 171,000 gallons of water storage on the parcel designated for cannabis irrigation and 6,500 gallons reserved for fire suppression. The applicant’s estimated annual water use is approximately 88,700 gallons. Drying will occur onsite and other processing will occur offsite at a licensed third-party facility. Power is provided by a solar array with a generator used to supply supplemental power. There will be two employees on site at peak.
end
RECOMMENDATION(S):
Recommendation
That the Zoning Administrator:
1. Adopt resolutions (Resolution 24-__) (Attachments 1) which does the following:
a. Finds the Zoning Administrator has considered the Mitigated Negative Declaration previously adopted for the Commercial Medical Marijuana Land Use Ordinance and the Addendum that was prepared for the CannaDreams, LLC project (Attachment 3); and
b. Finds the proposed project complies with the General Plan and Zoning Ordinance; and
c. Approves the CannaDreams, LLC Special Permits subject to the recommended conditions of approval (Attachments 1A).
Body
DISCUSSION:
Project Location:
The project is located in the Ettersburg area, on the west side of Kings Peak Road, approximately 2.4 miles south from the intersection of Wilder Ridge Road and Kings Peak Road, on the property known as 8700 Kings Peak Road.
Present General Plan Land Use Designation:
Residential Agriculture (RA), 2017 General Plan, Density: 160 acres per unit, Slope Stability: Moderate Instability (2) & High Instability (3).
Present Zoning:
Unclassified (U)
Environmental Review:
An Addendum to a previously adopted Mitigated Negative Declaration has been prepared for consideration per §15164 of CEQA Guidelines.
State Appeal:
The proposed project is NOT appealable to the California Coastal Commission.
Major concerns:
None.
Executive Summary:
CannaDreams, LLC seeks a Special Permit for the continued operation of an existing cannabis cultivation site consisting of 9,500 square feet of outdoor cannabis cultivation in greenhouses and 950 square feet of ancillary nursery space, a Special Permit to reduce the setback to BLM public land, and a Special Permit for reduction of the Streamside Management Area setback to allow for a hydroelectric facility on the onsite stream and for the point of diversion. Irrigation water is sourced from a point of diversion and is subject to forbearance. There will be 171,000 gallons of water storage on the parcel designated for cannabis irrigation and 6,500 gallons reserved for fire suppression. The applicant’s estimated annual water use is approximately 88,700 gallons. Drying will occur onsite and other processing will occur offsite at a licensed third-party facility. Power is provided by a solar array with a generator used to supply supplemental power. There will be two employees on site at peak.
Water Resources:
Annual water usage for irrigation is estimated to be roughly 88,700 gallons, or 9.3 gallons per square foot per year. Existing water storage totals 89,500 gallons of water tanks available for irrigation. The applicant intends to install additional tanks to increase that total to 171,000 gallons. Water for irrigation is sourced by a stream diversion. As noted in the Cultivation and Operations Plan (Attachment 1B), irrigation is performed by hand and via drip irrigation. Irrigation will occur early morning or late evening in order to reduce evaporation. The project’s conditions require the applicant to monitor water use from the point of diversion and the storage tanks annually to demonstrate there is sufficient water available to meet operational needs (Conditions A.2 & C.17).
The applicant’s Waste Discharger Identification (WDID) on the Notice of Applicability to the Waste Discharge Requirements Water Quality Order WQ-2017-0023-DWQ is WDID:1_12CC404168. The applicant has provided the site management plan (SMP) that was submitted to the North Coast Regional Water Quality Control Board (NCRWQCB). The applicant shall adhere to the measures and ongoing recommendations within the final SMP (Condition C.29).
The project was referred to the Environmental Health Division (DEH) on September 27, 2017, and response was received on May 31, 2018. DEH requested evidence verifying sufficient use of portable toilets to serve staff or a written assessment from a qualified septic consultant confirming a Tier 0 status for the existing onsite waste treatment serving the dwelling (Condition C.21).
Per Humboldt County Code Section 314-61.1.7.6.3, the streamside management area (SMA) may be reduced or eliminated when the County determines, based on specific factual findings, one of the following: the mapping of the SMA is not accurate, there are no in-channel wetland characteristics or off-channel riparian vegetation, or the reduction will not significantly affect the biological resources of the SMA on the property. The aspects of the project that require the reduction of the SMA are the continued use and maintenance of the point of diversion and the installation, use, and maintenance of a new hydroelectric system, neither of which should significantly affect the biological resources of said SMA. The hydroelectric system is dependent on permitting by CDFW and will be required to continuously meet CDFW’s requirements to protect biological resources, if approved by CDFW. The hydroelectric system would also be installed on an intermittent stream, sourced from a spring, and does not provide connectivity for aquatic wildlife. The initial disturbance of the point of diversion for irrigation is limited. The diversion is subject to a Streambed Alteration Agreement (LSAA) with CDFW and the watercourse has a water right. The existing LSAA onsite expired September 16, 2024, so in order to allow for continued diversion, the applicant must work with CDFW to obtain a new LSAA prior to cultivating in 2025 (Condition A.2). Additionally, diversion quantity is reported to and limited by the State Water Resources Control Board (SWRCB).
Public Trust Analysis:
The common law Public Trust Doctrine protects sovereign lands, such as tide and submerged lands and the beds of navigable waterways, for the benefit, use and enjoyment of the public. These lands are held in trust by the State of California for the statewide public and for uses that further the purposes of the trust. The hallmark of the Public Trust Doctrine is that trust lands belong to the public and are to be used to promote publicly beneficial uses that connect the public to the water. The spring that this project diverts from provides water to a Class II watercourse which is tributary to North Fork Bear Creek, which itself is a tributary to Bear Creek, a tributary to Mattole River. These streams provide water to support the health of this River. Bear Creek provides habitat for sensitive aquatic species including Coastal Rainbow Trout. Class II streams, however, have limited value as fisheries and generally occur upstream of migration barriers, or have other habitat features that prevent their use by migratory fish. The Mattole River is used for recreation and supplies water for agricultural, public, and industrial uses. Mattole River consists of a combination of navigable sections and whitewater rapids.
The watercourse has a water right and is pumped to storage outside of the forbearance period for use during the forbearance period. The applicant reports irrigation water usage and diversion to the State Water Resources Control Board (SWRCB) annually and is conditioned to have a Streambed Alteration Agreement (LSAA) established with the California Department of Fish and Wildlife (CDFW). The SWRCB prohibits diversion for cannabis activities during the forbearance period of April 1 through October 31 to protect water bodies during dry seasons. By performing the improvements required by the LSAA, forbearing according to SWRCB’s requirements, and adhering to the standards in the Site Management Plan, the project’s water use should have a less than significant impact on the Public Trust resources.
The proposed hydroelectric system would be installed on an intermittent stream that is tributary to North Fork Creek and is sourced from a spring. The stream does not provide connectivity for aquatic wildlife and there will be no net loss of water removed from the stream for the hydroelectric system, therefore the hydroelectric system should have no impact on the Public Trust resources.
Biological Resources:
The nearest Northern Spotted Owl activity center is approximately 0.8 miles from the cultivation sites. Marbled murrelet habitat is approximately 88 feet from the nearest cultivation area. A foothill yellow-legged-frog specimen was collected in 1956, and the location is mapped as being somewhere within an area approximately 1.2 miles in diameter. Portions of the property, including the cultivation areas, fall within this 1.2 mile diameter area.
To determine project impacts on these species, as well as other species potentially in the vicinity of the project, the applicant submitted a Preliminary Biological Resource Report prepared by Olofson Environmental, Inc. and Emerald Hills Environmental, LLC. The Report found that twelve sensitive species had the potential to occur in the study area, however only two of the twelve had the potential to be impacted be the cannabis operation, namely the Northern Spotted Owl (NSO) and Marbled Murrelet. The Biological Report indicated that provided the project is compliant with noise standards, compliant with dark sky standards, and rodenticides are prohibited, potential negative impacts to NSO and Marbled Murrelet are low and no further action should be required.
The study further found that seven sensitive plant species had the potential to occur in the study area, however project activities would not occur within potential sensitive habitat. The study recommended if new development were proposed in wooded areas on the parcel or within riparian habitat, protocol level botanical surveys should be completed. Ongoing requirements/development restrictions require the applicant to adhere to all recommendations included in the Biological Report.
CDFW inspected the property in October 2024 and identified unused waterline scattered throughout the parcel, uncontained compost, and the potential for impact to Northern Spotted Owls. CDFW recommended conditions to mitigate these potential issues (Conditions A.2, A.7, A.12-A.14, C.7, C.8, C.15, & C.16)
Energy:
The applicant has proposed to utilize an existing solar array and a hydroelectric system which is pending California Department of Fish and Wildlife (CDFW) approval. The applicant has identified an additional area targeted for installation of solar arrays in the event hydroelectric power is not approved by CDFW. The area targeted is in close proximity to cultivation areas and does not require removal of trees and does not encroach in any riparian areas.
The project is not expected to require significant power, as the project is entirely light deprivation cannabis cultivation, and trimming occurs offsite at a licensed third-party processing facility. The aspects of the operation that utilize electricity include water pumps, fans, dehumidifiers, and nursery space. The project has been conditioned to avoid use of the backup generator except in emergency situations (Condition C.7).
Access:
The project is located in the Ettersburg area. The property is accessed via a private driveway from Kings Peak Road, which is a County-maintained road. The private drive trends south and west to the project site. Kings Peak Road is accessed from Shelter Cove Road. The applicant has submitted a road evaluation report prepared by a licensed engineer identifying that a three mile portion of Kings Peak Road, beginning from its intersection with the private access road, is not developed to the equivalent of a Category 4 road standard. However, if the engineer recommendations in the Roadway Evaluation are completed, the road can accommodate the traffic associated with this cannabis operation and all known cannabis operations utilizing the road (Condition A.11). The project proposes the use of two employees who are expected to be onsite at different times of the year and the owner/operator lives onsite. The proposed project is not anticipated to generate significant additional vehicle trips or road use.
Referral responses from the Bureau of Land Management (BLM) indicated that the applicant has not demonstrated they have a legal right-of-way to cross BLM land and are therefore not legally able to access the subject property. The applicant submitted a right-of-way application to BLM and received confirmation of the application submittal on September 26, 2023, and the Planning Division received documentation of the right of way grant which was signed on June 27, 2024.
Public Land:
The subject property is an inholding surrounded by land owned and managed by the Bureau of Land Management (BLM). The project was referred to BLM, who provided comments dated June 26, 2023, which indicated concerns regarding legal access to the property across BLM lands, sediment and nutrient delivery to adjacent water courses, and proximity to Northern Spotted Owls. BLM requested that any permitting be conditioned to avoid impacts to federally threatened coho salmon, Chinook salmon, and steelhead. The project has been conditioned to demonstrate ongoing enrollment with the State Water Resources Control Board and adhere to the requirements of the General Order and the prepared Site Management Plan (Condition C.29). The project is required to properly store any fertilizers, nutrients, pesticides, fuels, and any other regulated products utilized for the cannabis operation. Cultivation areas and cannabis infrastructure have all demonstrated adherence to the required setbacks to riparian areas, and the applicant has indicated irrigation will occur in a manner that will minimize the risk of runoff, thereby reducing the risk of nutrient or sediment delivery to any nearby watercourses.
BLM additionally requested that the project be conditioned to avoid impacts to Northern Spotted Owl. The project has been conditioned to limit project related noise to 50 decibels at the forest edge or 100 feet from the noise source, whichever is more restrictive, and the project has also been conditioned to meet dark sky standards. The project has additionally been conditioned to prohibit the use of anticoagulant rodenticides. No lights are proposed for use in cultivation areas, except for the ancillary propagation area, and the applicant has proposed to utilize solar and hydroelectric systems to supply power for the project, with a generator onsite for emergency backup use only. Recommended conditions of approval also include a requirement for the applicant to demonstrate compliance with light and noise standards prior to use of the nursery or backup generator (Conditions C.6, 8, & 24).
Consistency with BLM Land Management Plan
The adjacent public lands are subject to the 2005 King Range National Conservation Area Resource Management Plan (RMP). The public lands adjacent to the project site are designated Frontcountry Zone in the RMP, and management activities in that zone include forest stand restoration, fuel reduction, timber production, fire break construction, transportation network maintenance, and habitat and watershed protection and restoration. Use of light deprivation greenhouses is consistent with the goal of the RMP because no artificial lighting is allowed in the outdoor greenhouse and project conditions require verification from staff before the use of fans. The project is consistent with the RMP because the cultivation activities will protect fisheries and aquatic habitat on forest lands by restoring and maintaining buffers from streams and by placing controls on the storage and use of pesticides, rodenticides, and fertilizers. The project is also consistent with the RMP because the cultivation activities will be minimizing risk from wildfire by adhering to the County’s Fire Safe Regulations and requiring adequate road access. The RMP’s provisions for protection of heritage resources has been met through the project consultation with Tribal Historic Preservation Officers. The project is consistent with recreational use on public lands by maintaining a minimum 600 buffer separation from developed campgrounds and trails.
Geologic Suitability:
The project parcel is mapped in the County GIS as moderate to high instability. One of the existing cultivation sites is proposed to remain on the high instability portion of the parcel. The existing cultivation appears to be located in areas mapped as 30% to 50% slope, but aerial imagery suggests the graded flats at these cultivation sites have been present since at least 2012. After the fact grading permits are required for the historic grading that had been done previously without permits (Condition of Approval A.8).
Security and Safety:
The project utilizes a locked gate on the only entry road to the property. Security cameras, motion detectors, and dogs are present for additional security. In addition to the 171,000 gallons of water tanks, two separate tanks are designated for emergency fire protection, specifically a 4,000 gallon tank and 2,500.
The project site is within the State Responsibility Area and is mapped as the Telegraph Ridge Fire Protection District response area. Planning staff referred the project to CalFire on September 27, 2017, and received their standard response on October 5, 2017. CalFire provided additional comments on October 3 and November 5, 2017, noting that a harvest permit from CalFire may be required prior to expansion and that any artificial light shall not escape at a level that is visible from neighboring properties. The project does not propose expansion and is conditioned to meet International Dark Skies Standards (Condition C.8). Project conditions require the applicant to obtain a will serve letter from Telegraph Ridge Fire Protection District or record an Acknowledgement of No Available Emergency Response and Fire Suppression Services form for the parcel (Condition A.5).
Employee Housing
The Operations Plan indicates intent to provide employee housing, but insufficient information has been provided to analyze housing as part of the proposal and there is no employee housing on the site plan. If the applicant chooses to add employee housing to the project, a permit modification would be required prior to construction and use (Condition B.2).
Timber Conversion:
The cultivation of cannabis will not result in the net conversion of timberland. Review of aerial imagery dating back to 2004 indicates the site contained existing open areas along the northern and southeastern portions of the property; however, it appears that timber was removed from the site between 2009 and 2015 to accommodate cannabis cultivation infrastructure.
While timber removal prior to 2015 is considered baseline conditions for the purposes of the CMMLUO and CEQA, the applicant has been conditioned to submit a Less than Three Acre Conversion Evaluation prepared by a Registered Professional Forester (RPF) that evaluates the conversion areas on the subject parcel. The report shall include recommendations to bring the site into compliance with the Forest Practices Rules as applicable (Condition A.16).
No additional tree removal is proposed or authorized by this permit.
Tribal Consultation:
The project is located in the Bear River Band of the Rohnerville Rancheria and Intertribal Sinkyone Wilderness Council Aboriginal Ancestral Territories. The Bear River Band referral response recommended a condition of approval that the project adhere to inadvertent discovery protocol to protect cultural resources (Condition C.1).
Consistency with Humboldt County Board of Supervisors Resolution No. 18-43:
The project site is located in the Cape Mendocino Planning Watershed, which under Resolution 18-43 is limited to 650 permits and 223 acres of cultivation. With the approval of this project the total approved permits in this Planning Watershed would be 231 cultivation permits and the total approved acres would be 81 acres of cultivation.
Environmental Review:
Environmental review for this project was conducted and based on the results of that analysis, staff finds that all aspects of the project have been considered in a previously adopted Mitigated Negative Declaration (MND) that was adopted for the Commercial Medical Marijuana Land Use Ordinance and has prepared a site-specific addendum to the MND for consideration by the Planning Commission (See Attachment 3 for more information).
OTHER AGENCY INVOLVEMENT:
The project was referred to responsible agencies and all responding agencies have either responded with no comment or recommended approval or conditional approval. (Attachment 5)
ALTERNATIVES TO STAFF RECOMMENDATIONS:
1. The Zoning Administrator could elect to add or remove conditions of approval; OR
2. The Zoning Administrator could deny approval of the requested permits if unable to make all of the required findings. Planning Division staff is confident that the required findings can be made based on the submitted evidence and subject to the recommended conditions of approval. Consequently, planning staff does not recommend further consideration of this alternatives.
ATTACHMENTS:
1. Resolution
A. Conditions of Approval
B. Cultivation Operations Plan
C. Site Plan
2. Location Maps
3. CEQA Addendum
4. Applicant’s Evidence in Support of the Required Findings
5. Referral Agency Comments and Recommendations
APPLICANT INFORMATION:
Applicant
CannaDreams, LLC
C/O Philip Kreider
31304 42nd Pl. SW
Federal Way, WA 98023
Owner
Philip Kreider
Po Bx 2127
Redway, CA 95560
Agent
N/A
Please contact Augustus Grochau, Planner, at agrochau@co.humboldt.ca.us or 707-441-2626 if you have questions about this item.