Santa Rosa’s need for more housing edged out any chance of future cannabis businesses in a small industrial neighborhood near downtown and the SMART railroad tracks.
The City Council Tuesday unanimously passed a temporary ban on additional marijuana companies operating in the 30-acre industrial area, one viewed by planners and elected council members as ideal for the type of high-density, transit-oriented housing developments Santa Rosa wants to attract. The decision carves out less than a half percent of the total 10.3 million square feet of industrial space where cannabis businesses are allowed in the city.
It comes less than a month after the council, over the objection of housing developers, approved a medical marijuana cultivation project in the same area, off Maxwell Court near the city’s West End neighborhood.
Speaking in support of the ban, Councilwoman Julie Combs said Santa Rosa needed to “close a gap we created in our haste” in adopting rules that allow the newly regulated marijuana industry to get its start in the city.
“This market is changing rapidly, and I want to make sure this takes care of it, that there aren’t any other areas designated as future housing” that could be taken up by marijuana businesses, Combs said.
Clare Hartman, deputy director of planning, assured Combs the area in question along Maxwell Court was the only one of its kind — an industrial area slated to eventually become residential.
Hartman said the ban — in the form of an urgency ordinance that takes effect immediately and will be revisited in July — was needed because of how quickly industrial buildings in the city are being bought up by cannabis companies. Commercial cannabis operations are allowed within city limits only in places zoned for industry.
The city’s vacancy rate for industrial space has dropped to 5 percent, and real estate agents are telling city officials industrial properties are “selling for two to three times the market value,” Hartman said.
“There’s a great deal of excitement in the cannabis industry,” she said.
California’s push to create long-needed rules allowing an open and robust marijuana industry has fueled a profound growth in the once-illicit trade and pushed local governments to make quick decisions about whether and where to allow cannabis businesses to take root.
Late last year, Sonoma County supervisors chose to prohibit marijuana cultivation in rural residential areas, causing an outcry from marijuana growers who said it would displace 2,000 farmers. The move was favored by some unincorporated county residents who asked officials to shield rural neighborhoods from commercial cannabis cultivation.
Other cities are making similarly tough choices. Petaluma and Cloverdale officials have prohibited commercial marijuana operations in their cities. Sonoma and Rohnert Park ban all outdoor marijuana cultivation.
Other cities, like Windsor and Healdsburg, have banned manufacturing but allow limited amounts of marijuana grown indoor for personal use.
Santa Rosa took a stand last year to welcome the industry, moving quickly to craft rules governing cannabis manufacturing, cultivation and other related businesses.
But the initial rules failed to account for the city’s long-range vision for the Maxwell Court area, which sits between the BoDean Co. asphalt plant and the downtown SMART station at Railroad Square.