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  Public Hearing     3. A.    
Regular BOS Meeting
Meeting Date: 10/15/2019  
Submitted For: Scott Buzan Submitted By: Scott Buzan, Community Development Director
Department: Community Development Division: Planning and Zoning

Information
Request/Subject
The following sections of the Gila County Zoning Ordinance are proposed to be amended:
  • Section 101.3 (Administrative Variance) - pertaining to the mailing of Administrative Variance decision letters;
  • Section 102 (Definitions) – to add definitions regarding the sale of alcoholic beverages (on-site, off-site and remote sales);
  • Section 103.3 (Restriction on Regulating Through Zoning) – to clarify the meaning of “general agricultural purposes” and make clear the meaning and procedures associated with nonconforming uses and structures;
  • Section 104.3 (Transitional Residential Uses);
  • Section 104.4 (Commercial One District, Commercial Two District, and Commercial Three District);
  • Section 104.7 (General Unclassified District) – when sales and consumption of alcoholic beverages are permitted by right and when a Conditional Use Permit is required.
Background Information
Currently, the Zoning Ordinance requires that notices of the Zoning Inspector or Designee decisions regarding Administrative Variance requests are mailed to the applicant and adjoining property owners via U.S. Certified Mail.

The Zoning Ordinance does not currently provide definitions regarding on-site, off-site or the remote sales of alcoholic beverages.

“General agricultural purposes” as defined in Arizona Revised Statutes 11-811 when regulating or restricting the use or occupation of land or improvements if the tract concerned is five or more contiguous commercial acres does not include the cultivation of cannabis or marijuana.
 
There is language in the current Ordinance pertaining to nonconforming uses and structures with respect to when a nonconforming business use can be expanded, circumstances when a nonconforming business use can be discontinued, reconstruction rights when a nonconforming structure is destroyed and the implications of changing a nonconforming business use.  It further states that a 12-month discontinuance of the operation of a non-conforming use shall be deemed as an expiration of non-conforming status.
 
Currently, the on-site sales of alcoholic beverages are only allowed in C1, C2, and C3 zoning districts, while on-site consumption is only allowed in C3.  It is the opinion of staff and the County Attorney’s Office that regulating alcohol through zoning is permitted in A.R.S. § 4-224.
Evaluation
Mailing Administrative Variance decision letters by Certified Mail is not a statutory requirement, is expensive, and involves a significant amount of staff time.  It is also inconvenient for the recipient since they have to go to the post office to take possession of the letter. 

In order to be compliant with A.R.S. § 11-811, the Ordinance requires the wording “does not include the cultivation of cannabis or marijuana” to be added to the definition of “general agricultural purposes” when regulating or restricting the use or occupation of land or improvements if the tract is five or more contiguous commercial acres

Non-conforming pertains to a use or structure that conformed to the Zoning Ordinance in effect at the time the use or structure was originally approved but is now considered non-conforming due to the Ordinance having been amended.  Staff determined that more descriptive language pertaining to nonconforming uses and structures with respect to when a nonconforming business use can be expanded, circumstances when a nonconforming business use can be discontinued, reconstruction rights when a nonconforming structure is destroyed and the implications of changing a nonconforming business would improve its readability.  Furthermore, it was decided that extending the length of time for the discontinuance of an operation before losing their non-conforming status to 18 months from 12 would allow the property owner additional time to locate a new tenant.
 
Staff is proposing to add to certain zoning districts, the ability to sell and consume alcoholic beverages on-site with an approved Conditional Use Permit when rezoning is not a viable option.  In the past, there has been inaccurate interpretations of the Zoning Ordinance regarding the sale and consumption of alcoholic beverages.  This has resulted in numerous establishments that have obtained liquor licenses from the State of Arizona after a recommendation by the County Board of Supervisors, being located in zoning districts which do not currently permit the sale or consumption of alcoholic beverages.  These establishments that meet the definition of having vested rights, may continue to operate in their current zoning districts as long as their operation is not discontinued for a period of 18 months (see proposed language for Section 103.3).
 
The Zoning Ordinance currently only permits for the on-site consumption of alcoholic beverages in the C-3 zoning district.  With the proposed amendments, on-site consumption would be permitted in the C-1 and C-2 zoning district subject to a Conditional Use Permit and by right (i.e. without the need for a Conditional Use Permit) in the C-3 zoning district.  Opportunities for the on-site sale and consumption of alcoholic beverages are expanded with the proposed amendments to the Transitional Residential and General Unclassified zoning districts with the approval of a Conditional Use Permit.
 
The Conditional Use Permit offers both due process rights to applicants with respect to seeking approval to offer on-site sales or consumption with their business and affords the County the opportunity to review such requests on a site by site basis to determine if the proposed use is appropriate for a property, a neighborhood, the surrounding area or the County as a whole.  Conditions can be added to the permit to help insure compatibility.  Conditional Use Permit process, staff carefully evaluates a request and provides a recommendation to the Planning and Zoning Commission. The Planning and Zoning Commission holds a public hearing in which anyone can attend and make their concerns known on the record.  The decision of the Planning and Zoning Commission can be appealed to the Board of Supervisors.  As such, there are many opportunities for the County to carefully consider all Conditional Use Permit requests to ensure the proposed use or activity is appropriate.
 
The proposed amendments expand opportunities for existing businesses in the County to provide for the sale or on-site consumption of alcohol, subject to obtaining a liquor license from the State and meeting applicable Zoning Ordinance requirements. These amendments also have the opportunity to expand commercial development in areas where that is not currently possible.  An example would be the production and remote sales of alcoholic beverages, such as associated with a craft distillery, farm winery or microbrewery.  Currently, the Zoning Ordinance does not list those as permitted uses. The proposed amendment would allow those uses by right in the C-1, C-2, C-3, and GU zoning districts.  The amendment would now also permit on-site consumption of alcohol when associated with a craft distillery, farm winery or microbrewery in the C-1, C-2, Transitional Residential and General Unclassified zoning districts subject to a Conditional Use Permit.
 
With the proposed amendments, other opportunities would be available for new businesses in the County to operate in an area where it would not currently be permitted.  For example, areas zoned Transitional Residential or General Unclassified located along a highway.  In these areas, uses such as a convenience store or restaurant, may be appropriate and could provide these services where they are not currently available.
Conclusion
Mailing Administrative Variance decision letters by First Class U.S. Mail rather than Certified Mail will reduce postage expense, staff time, and eliminate inconveniencing our customers while still fulfilling the requirements of the Ordinance.

New words included in the Ordinance that require defining, shall be added to the Definitions Section.  Improvement in the description of non-conforming uses and structures will provide the reader a better understanding of the intent of the Section.  Extending the timeframe to 18 months before losing the designation of non-conforming use due to discontinuance will benefit the property owner.

By increasing the number of zoning districts where the on-site sale and consumption of alcoholic beverages is allowed will provide businesses that provide this type of service, additional location choices rather than having to go through the process of rezoning the property.  The added requirement of requiring a Conditional Use Permit insures the property use will be harmonious with the surrounding properties while giving the applicant a fair process to seek approval and County residents an opportunity to voice their concerns.
Recommendation
Staff recommends the Board of Supervisors convene a public hearing to hear citizens who may wish to comment on proposed amendment to the Gila County Zoning Ordinance as presented.
Suggested Motion
Convene a public hearing to hear citizens who may wish to comment on proposed amendments to Section 101.3, 102, 103.3, 104.4, and 104.7 of the Zoning Ordinance of the Unincorporated Areas of Gila County, Arizona, to allow the mailing of administrative variance decision letters by U.S. First Class mail; add definitions regarding the sale of alcoholic beverages; clarify the meaning of “general agricultural purposes"; clarify language pertaining to nonconforming business use; and add language to specific zoning districts when sales and consumption of alcoholic beverages are permitted by right and when a Conditional Use Permit is required.  (Scott Buzan)

Attachments
Amendment to Zoning Ordinance
Affidavit of Publication

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