Loading...
HomeMy WebLinkAbout22 CROSS SOUND LAW GROUP n®ss uN Shane Seaman,Attorney t,'N, 47.m.--. Dee Boughton,Attorney GROUP 18887 St Hwy 305 NE Suite 1000 Poulsbo,WA 98370 360-598-2350 Ilk 0 June 27, 2017 Jefferson County DCD SEPA Responsible Official 621 Sheridan Street Port Townsend, WA 98368 RE: Response to Staff Comments; Objection to SEPA Exemption&Request for Environmental Review; Objection to purported compliance to cottage industry standards; and Objection to recommendation of approval for Conditional Use Permit Application: MLA 17-00019: ZON17-00002—ZON17-00003 —BLD 17-00093 Dear Mr. Hopper, SEPA Responsible Official, and Hearings Examiner, On behalf of the Marrowstone Island Preservation Committee, a committee of Marrowstone Island residents who will be impacted by a proposed industrial building to be sited at 9272 Flagler Road,Nordland, WA, a property zoned RR 1-10 located on Marrowstone Island, the following objections are entered into the public hearing record. This committee includes, but is not limited to, Cheryl Brunette, John and Jo Ann Comstock, Laurel Burik, Amy and Lee Does, Linda and Glenn Gately, Dave and Marsha Fitzpatrick, Patricia Earnest, Ken and Rosa Larson, and Laurie Tillman. I. ENVIRONMENT REVIEW AND A THRESHOLD DETERMINATION UNDER SEPA ARE REQUIRED BEFORE A CONDITIONAL USE PERMIT CAN BE CONSIDERED. First, we are requesting that the SEPA responsible official engage in environmental review of this proposed project and make a threshold determination as required by State Law and the Jefferson County Code. The staff report submitted by Jefferson County DCD simply and briefly analyzes the applicability of SEPA as follows: "The Proposal is SEPA exempt under Page 1 of 15 ORIGINAL WAC 197-11-800(1)(d) for a commercial structure under 12,000 square feet." However, this analysis falls far short. The above cited section, WAC 197-11-800(1)(d), is actually a table which describes the maximum exemption levels described in WAC 197-11-800 (1)(c). It is not applicable here. It appears that the inclusion above was likely a mistake or a scriveners error. We assume that the staff report should have included references to one or more categorical exemption found in WAC 197-11-800(1)(b). At the very least, it should be made clear which categorical exemptions are being recognized by Jefferson County DCD to apply to this project so that the parties can adequately respond. Regardless of the stated exemption, an analysis of WAC 197-11-800 alone is simply inadequate. A. The exemptions listed in WAC 197-11-800 are not automatically applicable when the proposed land use action is to occur on land which contains critical areas. The above discussed code is located within part nine of the SEPA rules and contains descriptions of the categorical exemptions recognized under SEPA. WAC 197-11-800. The exemptions themselves are authorized in WAC 197-11-305. This section states: If a proposal fits within any of the provisions in Part Nine of these rules, the proposal shall be categorically exempt from threshold determination requirements (WAC 197-11-720) except as follows: (a) The proposal is not exempt under WAC 197-11-908, critical areas. WAC 197-11-305(1)(a). WAC 197-11-908 allows city and county jurisdictions to make choices regarding which, if any, exemptions found in WAC 197-11-800 shall be applicable within their local jurisdiction. WAC 197-11-908(1). The scope of review of the exemptions chosen by the local jurisdiction requires documenting whether the proposal is consistent with the requirements of the critical areas ordinance, and also requires evaluating potentially significant impacts on the critical area Page 2 of 15 resources not adequately addressed by GMA planning documents and regulations and must include any additional mitigation measures needed to protect the critical areas consistent with the requirements of SEPA. Id. at(1)(b). Jefferson County has codified SEPA procedures which are subject to the provisions of WAC 197-800 and WAC 197-11-908 and subject to the limitations in WAC 197-11-305. B. A threshold determination is required under SEPA because the county cannot authorize an exemption for an action which is not exempt. Categorically exempt levels for Jefferson County, are described in the Jefferson County Code. JCC 18.40.750. The categorically exempt actions described in this section are generally exempt and do not require review under SEPA. JCC 18.40.750(2). However all code recognized exemptions are subject to the provisions of WAC 197-11-305 and subsection(3) of JCC 18.40.750. Id. Jefferson County may not authorize the use of an exemption for actions that are not exempt, nor for any action that would have a probable significant adverse environmental impact. JCC 18.40.750(3)(d)(i) & (ii). Jefferson County DCD states in the staff report submitted for this project that subject property for this proposed permit contains a Type F stream - Fish and Wildlife Habitat Conservation Area, a Special Aquifer Recharge Protection Area, and an At-Risk Seawater Intrusion Protection Zone. WAC 197-11-305 specifically removes properties containing critical areas from those which may be considered categorically exempt. WAC 197-11-305(1)(a). For this reason alone, a threshold determination under SEPA should be required, and performed. In addition to the fact that there are numerous critical areas affecting the subject property, it should be abundantly clear that the proposed action will have a probable significant adverse environmental impact. Jefferson County has already made this determination in another context, Page 3 of 15 and should apply their analysis to this issue. In the context of determining whether this project would be determined to be a Type II or a Type III application, the staff made the following recommendation, as stated in the staff report which has been submitted for review herein. Because this application involves potentially significant impacts to the surrounding properties and the community, as well as size, design and location concerns, staff concludes that the above criteria under JCC 18.40.520(2)(a)(i) apply and therefore recommends that MLA1700019 be processed as a Type III Conditional "C"Use Permit with a Public Hearing and Decision by the Jefferson County Hearings Examiner. The administrator made the following finding. 18.40.520(2)(a)(i): In the exclusive, discretionary judgment of the Administrator, the application involves potentially significant issues relating to location, design, configuration, and potential impacts to surrounding properties and the community that can be more appropriately considered and addressed through an open record hearing before the Jefferson County Hearing Examiner. Based upon the above finding, there should be little question that not only is there the possibility of significant adverse environmental impact, Jefferson County was and is aware of those potential adverse impacts. Because of the obvious potential adverse environmental impact,this project is not exempt from environmental review. JCC 18.40. 750(3)(d)(i) &(ii). This permit should be remanded back to the administrator for environmental review and a threshold determination. C. Even if this action were exempt,the Jefferson County Code requires environmental review and a threshold determination. Even if the above restrictions did not apply under WAC 197-11-305, all exemptions are additionally subject to section (3) of JCC 18.40.750. Specifically, categorical exemption listed in WAC 197-l 1-800 shall not apply when undertaken wholly or partly on lands covered by water. In this instance,the property in question is partly covered by water as it contains a Type F stream. Page 4 of 15 Additionally, Jefferson County code states that all proposals in areas which contain critical areas SHALL require environmental review and a threshold determination, and further states that they may be conditioned or denied under the relevant section. JCC 18.40.750(3)(g). This requirement is consistent with WAC 197-11-908 which requires the local agency perform the following: (a)Documenting whether the proposal is consistent with the requirements of the critical areas ordinance; and (b)Evaluating potentially significant impacts on the critical area resources not adequately addressed by GMA planning documents and development regulations, if any, including any additional mitigation measures needed to protect the critical areas in order to achieve consistency with SEPA and other applicable environmental review laws. WAC 197-11-908(1)(a)&(b) Both the Jefferson County Code and the Washington Administrative Code require environmental review in situations such as the present permit proposal. In other words, when a categorically exempt action is located in an environmentally sensitive area, then it is subject to the requirements of both the WAC and the Jefferson County Code. In such a situation, the code requires environmental review and a threshold determination. JCC 18.40.750(3)(g). For these reasons, this matter should be remanded back to the SEPA responsible official for environmental review and a threshold determination. II. THE PROPOSED ACTION IS INCONSISTENT WITH THE JEFFERSON COUNTY COMPREHENSIVE PLAN, FAILS TO SATISFY THE CRITERIA FOR A CONDITIONAL USE PERMIT, AND DOES NOT QUALIFY AS A COTTAGE INDUSTRY. The Jefferson County Comprehensive Plan has many goals and policies, among which is the clear goal to preserve the rural character of rural residential property. Thus, LNG 3.0 states that the goal is to "Ensure that rural residential development preserves rural character,protects Page 5of15 rural community identity, is compatible with surrounding land uses, and minimizes infrastructure needs." Jeff. Co. Comp. Plan LNG 3.0, at 3-47. A. The proposed action will not preserve the rural character and community identity of Marrowstone Island. Rural character is reflected by patterns of land use and development: (a) In which open space, the natural landscape, and vegetation predominate over the built environment; (b) That foster traditional rural lifestyles, rural-based economies, and opportunities to both live and work in rural areas; (c) That provide visual landscapes that are traditionally found in rural areas and communities; (d) That are compatible with the use of the land by wildlife and for fish and wildlife habitat; (e) That reduce the inappropriate conversion of undeveloped land into sprawling, low-density development; (f) That generally do not require the extension of urban governmental services; and (g) That are consistent with the protection of natural surface water flows and groundwater and surface water recharge and discharge areas. RCW 36.70A.030 Even within the above statute there are tensions between the natural landscape and opportunities to both live and work in rural areas. It is therefore also a stated goal to establish land use goals and policies within the Jefferson County Comprehensive Plan that are internally consistent with, and reflective of,the goals and policies of all other elements of the Plan. Jeff Co. Comp. Plan LNG 2.0, at 3-47 It is this stated goal to require consistency,that tempers other goals. It is true that there is a goal to foster home-based businesses or cottage industries in order to provide economic and employment opportunities outside rural village centers. LNG 6.0, at 3-51. This stated goal is expounded upon and limited by policies in LNP 6.1 and 6.2. As such both policies promote home based business and cottage industry, but at the same time limit application to businesses which are accessory to the single family residential use of the property. See particularly LNP Page 6 of 15 6.2, at 3-52. Thus the overarching goal and policy is to protect the rural residential character of land that is so designated as "Rural Residential". Upon a close review of Staff's comments regarding compliance with the comprehensive plan, at least two things should be apparent. First, conclusory statements are not helpful in determining compliance with the Comprehensive Plan, and second,the proposed action is actually inconsistent with the Comprehensive Plan. The following are specific responses to staff comments analyzing consistency with the Comprehensive Plan (beginning page 5 of staff report): 2(a). The described public process for the initial adoption of development regulations for recreational marijuana is not relevant to the issue. Production and Processing of marijuana in rural residential zones is only permittable with a conditional use permit. These uses are not permittable outright in a rural residential zone and are subject to the CUP process because they inherently present impacts that are not consistent with the policies creating and protecting rural residential zones. The staff report should provide an analysis of how the proposed project preserves the rural character and community identity, and is compatible with surrounding land use. Its failure to do so suggests that it is difficult, even for planning staff, to describe how a nearly 11,000 square foot greenhouse for an industrial use preserves the rural character and community identity of Marrowstone Island. 2(c). Austin Smith is the applicant of the proposed cottage industry permit, and is the applicant for the relevant licenses from the liquor and cannabis review board. Mr. Smith has indicated in public forums,that he does not intend to reside at the 9272 Flagler Road property. Based upon his publicly announced intent not to reside on site, it is very clear that neither the production nor processing use is accessory to a residential use—he is, in fact, a business man Page 7 of 15 who has purchased this property to site his commercial business. Additionally, the staff report merely states that the proposed greenhouse is an accessory building to the primary residential use of the property—but provides no analysis of how this is. Just saying it does not make it so. Explanation and analysis of how an 11,000 square foot greenhouse for the purpose of producing and processing a commercial product, is in fact subordinate to a single-family residence is suspect is necessary for the Hearing Examiner to approve the project. 2(d). Environmental quality is critical to the preservation of rural character. What is being proposed here is to tight line the run off from a nearly 11,000 square foot impervious surface, and allow it to sheet flow unchecked and untreated to the Type F stream on the property. This is not consistent with the goal of preserving environmental quality. 2(e). This project does not in any way contribute to long term habitability, nor does it protect the historically significant area of Marrowstone island. Additionally, it detracts from the natural beauty of Jefferson County. The applicant's intentions are less than clear, but what is clear is that there are many long standing farms and farm houses on Marrowstone Island. None of them are made of glass or plastic, and with the exception of historic buildings found on Fort Flagler, there are no other known buildings on the island that even approach the proposed scale and appearance of the building proposed here. 2(h). Much is being made of the economic boon this project will be to Jefferson County and to the Marrowstone Island community. Economic Development Policy 1.1 is meant to support opportunities for retention, and expansion of existing local businesses, employment opportunities, and recruitment of new businesses that provide living-wage jobs. The applicant herein in his application to the Liquor and Cannabis Control board has stated that his proposed business will not provide a living wage jobs to employees. See Application of Austin Smith. Page 8 of 15 Thus, it appears that the proposed business will bring only the burdens associated with an industrial use within a rural residential zone, and will bring no tangible benefits. B. The proposed project fails to meet all of the criteria required for the issuance of a Conditional Use Permit. (1) The county may approve or approve with modifications an application for a conditional use permit (i.e., uses listed in Table 3-1 in JCC 18.15.040 as "C(a)," "C(d)"or"C") if all of the following criteria are satisfied: (a) The conditional use is harmonious and appropriate in design, character and appearance with the existing or intended character and quality of development in the vicinity of the subject property and with the physical characteristics of the subject property; (b) The conditional use will be served by adequate infrastructure including roads, fire protection, water, wastewater disposal, and stormwater control; (c) The conditional use will not be materially detrimental to uses or property in the vicinity of the subject parcel; (d) The conditional use will not introduce noise, smoke, dust, fumes, vibrations, odors, or other conditions or which unreasonably impact existing uses in the vicinity of the subject parcel; (e) The location, size, and height of buildings, structures, walls and fences, and screening vegetation for the conditional use will not unreasonably interfere with allowable development or use of neighboring properties; (f) The pedestrian and vehicular traffic associated with the conditional use will not be hazardous to existing and anticipated traffic in the vicinity of the subject parcel; (g) The conditional use complies with all other applicable criteria and standards of this code and any other applicable local, state or federal law; and more specifically, conforms to the standards contained in Chapters 1&20 and 18.30 JCC; (h) The proposed conditional use will not result in the siting of an incompatible use adjacent to an airport or airfield; (i) The conditional use will not cause significant adverse impacts on the human or natural environments that cannot be mitigated through conditions of approval; (j) The conditional use has merit and value for the community as a whole; (k) The conditional use is consistent with all relevant goals and policies of the Jefferson County Comprehensive Plan; and (1) The public interest suffers no substantial detrimental effect. Consideration shall be given to the cumulative effect of similar actions in the area. JCC 18.40.530 Page 9 of 15 If all of the above criteria are met, then the county MAY issue a conditional use permit, but is not required to do so. Id. The proposed action in this case fails to meet several of the above requirements. First, the project must be harmonious and appropriate in design, character and appearance with the existing or intended character and quality of development in the vicinity of the subject property. JCC 18.40.530(1)(a). There will be great deal of testimony from interested residents who live in the vicinity of the subject property, which will very clearly establish that the design, and character of the proposed building are completely at odds in character and appearance with the existing character and quality of the all other development on Marrowstone Island. Staff has commented in their staff report that the action here is agricultural and that the proposed building is similar in size to other structures in the near vicinity. Both of these assertions are mistaken. First,the action at issue here is not agricultural in nature. It is industrial in nature. Marijuana processing is clearly identified as an industrial use in the county code. See JCC 18.15.040, Table 3-1. Thus, this action is different in nature compared to almost every other type of use on Marrowstone Island. Second, the proposed building at issue here is a green house over 10,000 square feet in size, and standing 23 feet in height. There are no other buildings that are similar in character or size, on the entire island. It should be fairly clear that the first criteria is not met. Section d above requires that the conditional use will not introduce noise, smoke, dust, fumes, vibrations, odors, or other conditions or which unreasonably impact existing uses in the vicinity of the subject parcel. Staff concedes that all of the above impacts are possible but takes the applicant at his word that he will voluntarily use various methods to address each impact. This is not sufficient. There is no indication in the staff report what the required output from Page 10 of 15 fans will be in decibels. There is likewise no indication of the required amount of light that will be allowed to be generated from the projects sodium lights. Likewise,the staff report makes no comment on requirements regarding the level of odor that will be produced by production or processing. Until these variables are known, it will not be possible to determine whether mitigations will be sufficient to address the impact. For that reason alone, this criteria is not met. If the Examiner determines that mitigation can adequately address these impacts then the addition of specific mitigations should be made conditions of approval. Section g above is not met because this action is not consistent with the Jefferson County Comprehensive Plan. The proposed action is industrial in nature and is inconsistent with the rural character of the remainder of Marrowstone Island. Section j above is not met because the proposed action is of limited merit and is of little to no value to the community as a whole. The applicant has stated in his application to the Liquor and Cannabis Control Board that his endeavor will not offer a living wage to employees. Additionally,testimony will show that Jefferson County as a whole stands to obtain almost no tax revenue from this business venture. Additionally, unlike almost all other home occupation, or cottage industry business, this particular business model is entirely extractive. It offers no produce, or completed product for sale to the residents of Marrowstone Island. What it offers is an onerous"big business" model which takes advantage of resources, offers little in the way of wages, and exports product outside the area for sale to the sole benefit of the owner of thebusiness. Section k. See section g above. Section 1, requires that the public interest suffer no substantial detrimental effect with consideration being given to the cumulative effect of similar actions in the area. In this Page 11 of 15 particular case, consideration should be given to both proposed land use actions and the cumulative effect that they have on the public interest. What is being proposed here is for the Marijuana processing business to provide a home for employees to live in so that the processing plant can be sited on the property. All of this is to occur while the owner and operator of the business resides in King County. The residential and rural nature of the other properties on Marrowstone Island will suffer from the industrial nature of the action and the use if permitted. C. The proposed action does not qualify as a cottage industry. The Jefferson County Comprehensive Plan sets forth when and how a cottage industry is to be located within the rural residential zone: POLICY LNP 6.2 Permit cottage industries conducted by the owner or lessee of the property, who shall reside within the dwelling unit, as an accessory use within a single family dwelling or building accessory to a dwelling and which are accessory to the residential use of the property throughout the unincorporated portions of the County, subject to conditional use permit review procedures. This policy has been codified in JCC 18.20.170. However, to understand the full intent and purpose of the cottage industry provisions, one must refer to "Rural Commercial Lands" narrative of the Comprehensive Plan beginning on page 3-7 of the Land Use and Rural Element. The Growth Management Act has afforded very narrow opportunities for commercial uses within rural areas, which this section of the comprehensive plan explains appropriately, and identifies those areas designated as commercial crossroads or commercial village. This section also reviews when and how industrial use can occur within the rural lands. The discussion of non-residential uses in rural lands concludes with the section"Economic Activities Outside of Rural Commercial Areas" (p. 3-22, 3-23). The placement of this section, after the lengthy discussions of rural commercial uses and locations consistent with the Growth Management Act, Page 12 of 15 clearly indicates that these uses must be of such a scale that they cannot be considered a primary commercial use. Indeed, the description of cottage industry here is as follows: "Cottage industries will be reviewed through the conditional use permitting process, and must be clearly incidental and subordinate to the residential use of the property. Cottage industry is defined as limited small-scale commercial or industrial activities, and shall not grow beyond the scale permitted unless it is moved to a location designated for commercial or industrial uses. The limitations provided in land use policies are intended to prevent the activity from detracting from adjacent land uses and the rural character of the area(see LNG 6.0)." (Page 3-23). In keeping with these policies the Jefferson County Code clearly requires that"The cottage industry shall be operated by at least one full-time, bona fide resident in a single-family residence of the parcel on which the proposed use is being requested." JCC 18.20.170 (4)(a). This is subject to the purpose, which is "To provide for small-scale economic development activities on residential parcels, subordinate to the primary residential use." Id. at Sec. (1). Thus, the Code does not allow the cottage industry to be operated by a person who lives in another county while his employees reside in the residence on the property. The plain language of the code clearly states that at least one person who operates the cottage industry must be a bona fide resident in the single family residence. Id. To allow a speculator to purchase, site and operate an industrial business on property zoned rural residential turns the county code,the Comprehensive Plan, and Growth Management planning on its head. The staff report for the Olympus Gardens `greenhouse', addresses this issue by simply saying "The principal use of the property is residential. The proposed greenhouse is clearly secondary to the principal use." (Section 3,page 9, staff comment). This is further reiterated on page 11, criteria(n) staff comment, which states the primary use of the property is residential. While there is some discussion regarding the percentage the proposed building footprint will Page 13 of 15 cover on the 7.3 acre site and that it will be located within previously cleared area—this falls short of explaining how the current residential use of the property will remain primary, and how the 10,000 square foot greenhouse is "clearly incidental and subordinate." It is quite apparent that the opposite is true. The owner and operator did not purchase the property at 9272 Flagler Road to reside there. He purchased the property to site an industrial use there, and the fact that anyone will be residing within the residence is merely incidental and convenient. The code provides a list of uses which are allowable as cottage industries. These uses include: (a) Sales of antiques and collectibles;(b) Art or photography studios; (c) Computer software development;(d) Handicrafts; (e) Ironworking or blacksmith shop;(f) Construction office; (g) Furniture repair or refinishing;(h) Pottery shop; (i) Real estate sales office;(j) Small equipment repair;(k) Woodworking shop; (1) Excavating contractors;(m) Small engine and boat repair; and (n)Auto and truck repair and service (excludes auto and truck sales, fuel stations and heavy equipment repair). JCC 18.20.170(2) All of these allowable uses have one thing in common. The owner and operator resides in the residence to which these uses are subordinate. "Accessory Use"means use of land or of a building or portion thereof incidental and subordinate to the principal use or building and located on the same lot with the principal use. JCC 18.10.010. Based upon this definition, the code and the comprehensive plan sections discussed above, clearly require that home based business and cottage industries be incidental and subordinate to the residential use. This is the very mechanism by which rural and residential character is protected from commercial and industrial usurpation. Webster's dictionary defines incidental as synonymous with"minor" which is defined as "inferior in importance, size, or degree: comparatively unimportant." Webster's defines subordinate as "Placed in or occupying a lower class, rank, or position: inferior." Therefore, the primary use in home business and cottage industry actions must be residential. The commercial or industrial use must be secondary to, and inferior in importance in Page 14 of 15 size or degree when compared to the primary use, which is residential. Thus, conversion of the primary residential use to a primarily commercial or industrial use is specifically not allowed. Yet that is exactly what is being proposed in this case. If permitted, the proposed use of both producer and processor will become the primary use of the property- and the existing residence will become secondary and will be in use only to ostensibly meet the residency requirement of JCC 18.20.120. III. CONCLUSION This action should be remanded back to the SEPA responsible official to perform environmental review and make a threshold determination before further action is taken. Ultimately,this action should be denied because it does not meet all of the requirements for a Conditional Use Permit, and it is inconsistent with the Jefferson County Comprehensive Plan. Additionally,this action should be denied because it is an industrial use which simply does not qualify as a cottage industry. Respectfully submitted this 27th day of June, 2017 L Bert D Boughton WSB A .�►.016 On behalf of the Mame! : one Island Preservation Committee. Page 15 of 15 EXHIBIT A c„gn Envelope ID:1ADD3108.2866-4687-e710-8839FFA3978A tT`{jr:•� Washington State License Number 412943 �Y� 1 Liquor and Cannabis Board UBI Number 6040283380010001 OLYMPUS GARDENS Trade Name Operating Plan Required Elements—Producer/Processor ' , j Submission of an operating plan that demonstrates the applicant is qualified to hold the marijuana license applied for is required as part of the application process listed in Washington Administrative Code (WAC) 314-55-020. This operating plan must include a floor plan and/or site plan which illustrates the entire operation being proposed.(WAC 314.55.020(11)) Please describe how your operating plan complies with the requireSents I sted,in the WACs indicated below. Additional sheets may be attached If necesary:s" ' ` `Et s 1. SECURITY (WAC 314-55-083) e.:-.ANA.,,,, ".,r: " .,- l ` a. Will all employees wear an identification badge? IY Co YES b. Does your location have a security alarm system on all perimeter doors and windows? [E] YES c. Does your video surveillance system and recording device meet the following requirements? YES in Minimum camera resolution of 640 x 470 FE Internet protocol (1P) compatible (`s0 Recorded images clearly and accurately display the time and date 1 r7 Surveillance system storage device is secured on-site in a locked box l Camera recordings must be continuously recorded twenty-four hours a day IL" Surveillance recordings must be kept for a minimum of forty-five days FE System includes image acquisition, video recording, management and monitoring hardware and support systems t 0 Camera placement allows for the clear and certain identification of any individual or activity on the licensed premises including all areas where marijuana is grown, cured or manufactured PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504.3098,(360)664-1600,Icb.wa.gov LIQ1227 06/2016 Page 1 of 7 Envelope ID:1A0D3108.28B6-4687-8710-8639FFA3978A UBI Number 6040283380010001 2. TRACEABILITY (WAC 314-55-083(4)) a. Will you use a third party vendor for your traceability software? E YES x NO If you selected YES, please list the name of the vendor/software: If you selected NO, please describe how you will comply with traceability requirements: USING LCB M3 TRACEABILITY SYSTEM b. Is the system listed above compatible with the LCB's traceability system? [is YES 3. TRANSPORTATION OF PRODUCT (WAC 314.55.085) a. Quarantine: 1. Will all product be placed in quarantine 24 hours prior to transport? 1 YES 2. Will all product be entered into the traceability system? (E YES b. Manifest: 1. Will the manifest be printed and attached to the product during transport? Fri YES c. Will the product be transported in a locked safe and secure storage compartment that is secured to the inside body/compartment of the vehicle? rt YES 4. DESTRUCTION OF WASTE PRODUCT (WAC 314-55-097) a. Will waste be secured on site 72 hours prior to rendering it unuseable? YES b. Will all waste be disposed of in compliance with local and state laws, rules and regulations? cri YES c. Will you grind or chip non-dangerous waste and mix it with 50% non-marijuana waste? 1E YES PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,Icb.wa.gov LIQ1227 06/2016 Page 2 of 7 5;,n Envelope 10:1AOD31D8-2BB6-4687-B710.8839FFA3978A U9(Number 6040283380010001 5. DESCRIPTION OF OPERATION AND PREMISES a. Standardized Scale Will your scale meet the requirements listed below: YES 7 Licensees are required to have at least one scale on the licensed premises for the traceability and inventory of products. 1E1 The scale(s) used must have a National Type Evaluation Program (NTEP) Certificate of Conformance (COC). If a scale meets this requirement it should have an ID name plate on it with the COC number. ( t Licensees must register their scale(s) on a business license application with Business Licensing Services through the Department. b. Marijuana Production YES NO D Indoor Grow C Outdoor Grow c. Size category (plant canopy): Q Tier 1 — Tier Tier 2 a Tier 3 d. List the total square feet you will dedicate to plant canopy for each: Recreational: 10,000 OUTDOOR GREENHOUSES Medical: NA e. Describe the type of eight foot fencing and material used to encompass your outdoor grow or to connect exterior buildings on the licensed premises: CHAIN LINK WITH SCREEN MESH TO BLOCK VISION f. I acknowledge that all soil amendments,fertilizers, pesticides and other crop aids used will be compliant with LCB standards listed in WAC 314-55-084: LE:1 YES PO Box 43098, 3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,tcb.wa.gov LJQ1227 06/2016 Page 3 of 7 n Envelope ID:1A003108-28136-4687.8710-8839FFA3978A UBI Number 6040283380010001 6. PROCESSING OPERATION a. List the types of finished products that will be created on your licensed premises (such as useable marijuana, infused products and edibles): USEABLE MARIJUANA AND DRY SIFTED HASH b. Describe the processing methods and equipment you will use to create the items listed above (WAG 314-55-104): AFTER THE PLANTS HAVE DRIED, THEY WILL BE TRIMMED WITH A SATILLITE SL DRY TRIMMING MACHINE. PROTECTIVE GLOVES AND EYE WEAR IF NECESSARY WORN AT ALL TIMES. THE PRODUCT WILL THAN BE SORTED- USEABLE AND NON-USEABLE MATTER.NON-USEABLE MATERIALS WILL BE COMPOSTED. USUABLE MARIJUANA WILL BE CUT, TRIMMED AND SIFTED WITH SIFT BUCKETS FOR HASH AND PROPERLY WEIGHED AND PACKAGED FOR FLOWER. c. Describe the packaging for all finished products (usable and infused) to include how they will be sealed: HEAT SEALED PLASTIC BAGS AND OR GLASS JARS WITH HEAT SHRINK. d. Describe what information will be listed on labels affixed to your finished products (please indicate any differences between usable marijuana and marijuana-infused products): THE FOLLOWING INFORMATION WILL BE ON EACH PACKAGED ITEM- WARNING, THIS PRODUCT HAS INTOXICATING EFFECTS AND MAY BE HABIT FORMING. SMOKING IS HAZARDOUS TO YOUR HEALTH- THERE MAY BE HEALTH RISKS FOR BREAST FEEDING OR PREGNANT WOMEN- FOR USE BY ADULTS 21 YEARS AND OLDER ONLY- KEEP OUT OF REACH OF CHILDREN-MARIJUANA CAN IMPAIR, CONCENTRATION. COORDINATION AND JUDGMENT- DO NOT OPERATE VEHICLE OR MACHINERY UNDER THE INFLUENCE OF THIS DRUG- ALSO STATEMENTS FOR ALL PESTICIDES APPLIED AND GROWING MEDIUMS DURING PRODUCTION AND PROCESSING. PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,Icb,wa.gov L1Q1227 06/2016 Page 4 of 7 iyn Envelope ID:1A0D31D8-2688-4887-B710.8839FFA3978A UBI Number 6040283380010001 e. Will all soil amendments,fertilizers, pesticides and other crop aids used be compliant with LCB standards listed in WAC 314-55-084: YES 7. QUALITY ASSURANCE PROTOCOLS (WAG 314-55-102) a. Will all quality assurance testing be done by an accredited third party lab approved by the LCB: :71 YES 8. EMPLOYEES COMPENSATION AND BENEFITS DATA (WAC 314-55-020) a. Will you provide a living wage (at least one hundred fifty percent of the state minimum wage) to eighty-five percent or more of your employees? ❑ YES C NO b. Will you provide health insurance to at least eighty-five percent of your hourly employees? C YES Q NO c. Will you provide a defined benefit pension plan to at least eighty-five percent of your hourly employees? [l YES Q NO d. Will you provide five or more paid sick days annually to at least eighty-five percent of your hourly employees? ❑ YES X NO e. Is there a signed labor peace agreement or collective bargaining agreement with a labor organization in place? n YES 7 NO PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,Icb.wa.gov L1Q1227 06/2016 Page 5 of 7 n Envelope ID: 1A0D31D8.2B86-46B7-0710-8839FFA3978A 6040283380010001 USI Number 9. ATTACH FLOOR PLAN / SITE PLAN (architectural plans are accepted but not required). Plans must be drawn to scale. Please ensure your Floor Plan/Site Plan includes a key referencing the specific areas listed below. For your convenience, an example key is attached. a. Physical barrier/perimeter fencing enclosing the licensed premises including ail gates b. Grow area(s) dedicated to medical marijuana c. Grow area(s) dedicated to recreational marijuana d. Processing area(s) e. Quarantine area(s) f. Label all rooms g. Points of ingress/egress to the licensed premises h. Location of all doors and windows i. Location of secured Surveillance System Storage Device j. Location of all cameras and alarms k. Designated Waste area(s) /.—nocuSvb/:tt by: QU {4iK, SIM 11/28/2016 Signature Date Click 'yes' to attach floor plan fl YES PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504.3098,(360)864.1600,Icb.wa.gov LIQ1227 06/2016 Page 6 of 7 • c=sSicin Envelope ID:1A0D3108-2858-4887-8710-8838FFA3978A UBI Number (EY FOR ALL MARIJUANA FLOOR PLANS 49 Surveillance Camera:You must have 100%camera coverage.if you do not have 360° cameras,you will need a minimum of two cameras in each room.Draw arrows to indicate all directions the camera is capturing. R Retail Display Case POS Retail Point of Sale XXX Sight.Obscured Fencing 11.111 OMNI PIM Fencing * Security Alarm:Sensorthat is required on all exterior doors and windows Surveillance System Storage:Room,Closet,Lockbox or other secured location "'[ ..\ Door or entry into a Retail and Non-Retail Premise W Window:All exterior windows require an alarm ( Gate through fenced area:All gates require an alarm IDENTIFY ALL ROOMS AND AREAS ON THE FLOOR PLAN TO INCLUDE THE FOLLOWING: • Grow Area—Area where marijuana Is grown • ProcessingArea—Areawhereprocessingofanykindwiltoccur • Quarantine Area—Area that marijuana or marijuana Infused products are kept before being removed ortransported • Security Room/Controlled Access Area—All areas restricted to the general public. • Waste Area—Area waste will be held prior to destruction Note:If architectural plans or any otherform of floor plan is submitted,you must provide a key. PO Box 43098,3000 Pacific Ave, SE,Olympia WA 98504-3098, (360)664-1600,lcb.wa.gov L101227 06/2016 Page 7 of 7 = • rt `fiiK :a 4s ' • '1:4; _ hki>sd f's ° 1�AyY ` b a£ $ t k H � ' e - "4 ' �Y x+. w"�" '14:i 3 - :','''-- ,t,- ,,,,,i.,....gts- ,4";--.,:',,,,k..c -. , , ,,tv,,,,,,-4.: tifi,..--a-ti . :,,,,,-,3q @� w", , s.'::•, A 1, 4 16, , t•o,.4%.•„,.;.:77chiros 1.:,,;:** ,',',;,,‘.,,k" ":e.<-4C0:".. AVA,,,4.1,04-.1,,,V.',4 , ,,,..,ti :443 *.c.,;, l''' • itt 4$i ff 4. i iL !� vb.� � Pr,' �4 <i:;1st--:.,7:,-,,,i,;,,-4.ag � a zp >t« t Fgy3 '7 � ti',.?"v' : � ✓ :411'..-11 ��� q a baaQ , 3+. � ��lv'�Yt.;-.1:,,F., "x,e ^ Y -::,,.....!'-, ,,,,,,`,244,i047.-: t ` -,f4 ,,x4xa'< s ... „4.440 44.7,4„..117-1,1, 'If:'3.'":'', 4 ' '4? 'Po"14 ft'ltb N 'Z''' ell 1 ric - .- . 1 tI q� o rF4 ½W*„,I,,,,,;;-,.4-,,,:44.., kL€x` ti ,, � Jn44t 4 ... .„ ,./ ..„, r. ,„,,,,4,a4.. , f '', ! k';: . *. A7 ''8 y �`4 „iIt � ryn .$ d i va + Asas�� 2a r,„ t . A! � �. sk ` �fia e , "� ,,� 4."''''4,4,4,14.4,14..'''' � it � ' � � qm.� w� � , � ea .a � � -' ,;r � � z 'Y *4.41,-„, "i , Vit,, ��w V5_ ✓ ' t4.41'+,4.--i, *i", $ pm ,.7.'e0 _� ?s y-:; ��fpi.i,,,- . ,4IV ,4; Mt & „,,,,,,,,w•,•,,- .;„ F 'ryk•,•,,- 4. tfit�: ,>:' 'IV . y. :c p `E yC ,A,—,`..', A`<9�: • '„ : It %� «� % euq' Afi xi? a », y � � 0esaz� ;4vva � , �r'z,s4xya”yI :fi$ y //;444.,- %1 d + �^a-,!, s F7 „ g s„...,,, � 1-.•:::+*".,‘g� :i {.�? ,,,,,,',,l'')."4`�"� 7s ,.: �� "a r 4�y .4'Wr b : 'fiw� �� +� 1. *4:14,VM*'4,7;314,04' 't/Itt : k. A ik,+zwxz� � ,,,,,,4•7*,, at +� ��46�� � : : fi� i w "3 e ', x"' ..-,-*„ .1:e...— i ''''W * r, ▪ -kr. `.� l',. xf a exs ' p y+xr +r *+g R lv! a ,� ,y& ar X,� . r �¢ rs , .x r � ✓ a 'fic � FMw'' �• ' �$ ` A $ xss „ i °9A `Prp `af"3� • - fi ” ' fi" .. + > rb ,�°':',.:11/4••,1-7,2f , ` fi,„" A ° `' , #'{ ''-',1,,,' "i , e "sl8Y *i .a � ifixaay^. ,' r @ & 1dsw y€2 '+. a 't ° ! 4bs Y� a*v*;, � ^-pc f' 0„,..,,, - ^'' �� a};w r „...„.,..:1„,,,,,.:,,,4.7,,,,,,,..7.:,..14%,,,,,,..,..,\„, a ¢ „ .,1:44,,„,, ,71.,!:..t.,.-,.-..%!-,.- ` l. wyA ▪1 b '"«%dy : ,sa_. ,w! . yt '' spae a :¢ fi a'.1,..t. , itytt. ,7,F.' � mst ' , .: .rs '': ,11 9. EXHIBIT B http://www.ptleader.com/news/marrowstone-marijuana-producer-answers-questions/article_5d4aa8b8- 5608 11 e7-8029-bb899177c45e.html FEATURED) Marrowstone marijuana producer answers questions Kirk Boxleitner kboxleitner@ptleader.com Jun 21, 2017 I i' ,i3O f /Pt i .a . { 5'� . • i'e'S''r'' F f t s+z ra✓/i .'' 't fax le t v t i %oar,� ,� °w P �'wj td''ate' : ' ' 7/ i'.,,.4.-‹*;',,*4*,:,`,41-*'',4r,77.441-.2**,/,7**-7:. '**•*.•' i •/-44'*,,,',7, .-4 ',. ' . . / - */*** / 9 tib,," •1 y /,i , � �:nceuroUnds e; .. & ,+ iso " , �.. iiii. �.�- . .�� . `,-,a , f' , A tallwood fsproperty where Austin Smith hopes to locate ab marijuana- processing business at 9272 Flagler Road on Marrowstone Island. Photo by Allison Arthur Seattle's Austin Smith, who now owns Olympus Gardens LLC, with a Tier 3 marijuana processing operation in Silverlake, on March 7 filed a request with Jefferson County for a cottage-industry permit to process recreational marijuana inside a 10,080-square-foot, 23- foot-tall greenhouse at 9272 Flagler Road in Nordland. After residents of Marrowstone Island voiced displeasure to Jefferson County commissioners during their May 1 board meeting about the prospect of a marijuana- processing business setting up shop in their neighborhood, Jefferson County's Department of Community Development chose to require a public hearing on the proposal. That hearing is set for 1 p.m., Tuesday, June 27 at the Jefferson County Courthouse. The Leader made contact with Smith, through his representative Kevin Coker, and submitted a series of questions to Smith via email. His comments have been edited for Leader style, but not content. Q: What are your history and qualifications in the industry? A: I was an electronic technician with an enlisted surface warfare specialist designation and an enlisted air warfare specialist designation. While on sea duty, I was deployed to the Persian Gulf and participated in Operation Enduring Freedom and Operation Iraqi Freedom. After my sea duty, I was stationed overseas in Italy for three years before I was honorably discharged. I have a background in medical marijuana, extensive knowledge in the field and want to pursue farming in Jefferson County, using sustainable and environmentally responsible methods for a successful business, bringing much-needed tax dollars to our county. What was it about this specific site on Marrowstone that made it best suited for the needs of a marijuana processor, such as what you're looking to set up? First and foremost, the county has a clear and fair ordinance for legal medical/recreational farms. In addition, the people of Jefferson County were heavily in favor of proposition 1-502. The property I was looking to purchase in Jefferson County needed to be a secluded lot, preferably in the heart of the Olympic rain shadow. I wanted a large lot, 8-10 acres, preferably nestled in amongst other famers. In addition, the area seemed very liberal, being that the closest grocery store has a pot shop next door. It's a perfect fit. What were the chief concerns that were expressed by the folks who attended your community meeting (on May 15), and what responses were you able to offer? I think the members of the community responded well to the meeting, in hearing the great lengths I've gone to, to have zero impact on neighbors and a positive impact on the community. Aside from family, we've had multiple people from the island already volunteer to help crop the plants, when they have matured. So, the same people that live on the island would be working with us on the island. Why did you purchase this license from a company, Olympus Gardens, that reportedly had six violations, including two written warnings and four fines? First, I would recommend you do more research on the process with the state. I do not have time to educate you on the specifics, as they are both detailed and lengthy. Licenses don't go up for sale. You have to dig deep to find one. The Washington State Liquor and Cannabis Board had one very small window for producer licenses, and only had a small amount to authorize. It was a two-year process to acquire my license, and when this process started, there was one fine for looking in the quarantine area during the 24-hour period of quarantine. I have no idea why he did that. I'm not Micheal Lavallee. What would you say to folks who still have concerns about the potential environmental and cultural impacts of your business on their neighborhood? There will be zero environmental or cultural impact on the island. As far as environmental goes, our top drip irrigation system has no waste. As far as chemicals go, they are not on the Washington State University [Pesticide Information Center Online] list, and therefore are prohibited. In accordance with the PICOL list, we use mostly organic and natural sprays. Culturally, Marrowstone Island has been farmed since its original homesteading days. Dozens of families have moved here over the last 150 years, cultivating the forest for timber, growing crops, planting orchards, raising livestock, harvesting and planting shellfish, fishing and so on. It seems to me that the addition of a greenhouse to grow another cash crop is only part of the logical progression of utilizing our local resources in a responsible way. On other issues Water: The PUD is providing water, so there is no extraction from the aquifer, and all stormwater that currently falls on the site, to infiltrate and recharge the aquifer, will continue to do so, as shown by the stormwater engineering plan we submitted. The plants are grown in a closed hydroponic system, where the state-approved nutrients feed the plants through a drip system, and there is no runoff. Odor: We are using both a natural biodegradable "fog" system, that molecularly breaks down odor, and then a carbon-scrubbing filtration system, that cleans the air before exhaust. I was told by an independent engineer that you could stand directly outside the exhaust, and you will smell nothing. Neither of these systems are required by regulating agencies. I am doing so at significant additional cost because, in my opinion, it is the right thing to do. 41111#4, Take tle PUD broadband survey! pup � / Ja 1(t^reser C vatx Noise: The fan system being used is state-of-the-art, as are many of the features. Standing outside the building near the fan, two people can carry on a conversation. Anyone beyond a few dozen feet would have difficulty hearing anything from the system. Fans are 48 in the greenhouse. Schaeffer is the brand. They are the best and quietest. Light pollution: A light deprivation system, that is computer-controlled, extends a curtain above and around the interior of the greenhouse, eliminating light. The system cost over $15,000, and was not required by the state or local code. NextGen light deprivation systems keep 100 percent of the light in or out, depending on the light schedule and time of day, eliminating light intrusion. Cameras/security: The infrared cameras are placed as per law, and directed into the fencing area and greenhouse, not out to adjacent areas, and use no additional lighting. There are no armed guards. Processing: No chemicals are used in the processing of the plant material. Mechanical spinning and compression only. Traffic: There will only be two to three vehicles used by my family. There will be small amounts of traffic, as with most businesses, for delivery. Structure: Clearly, the current code allows for home businesses, including ancillary structures such as "barns." Our greenhouse is a single enclosed structure, with two smaller roof lines and two larger roof lines, at only 60 percent of the allowed height. If you look at the county aerial views, you will find what looks like a large chicken house only a mile away to the southeast, it spans over 125 feet in length as a single structure, and homes are far larger with far greater impact. Screening: We are complying with all the required fencing and vegetative screening. We have installed a 6-foot-tall fence at the road, and will be planting native variety trees to infill the few gaps on that property line, and have a full mature forest canopy along the other three edges of our property, that reaches over 50 feet in height. There are many more issues, including public notice and other items, that are squarely in the county and state jurisdiction, and we are complying with them all. The Hearings Examiner will hold an open pubic meeting June 27 at 1 p.m. in the Jefferson County Courthouse, and will review all comments, law and local codes before ruling. We do understand that fear has driven many to false conclusions, and we have tried to get the word out about what we are legally pursuing as a business, and how we have invested tens of thousands dollars in additional costs to mitigate any impact on neighbors, and my own residence on the site. I have stated categorically that we want the business to operate in such a way as to be unnoticeable by our neighbors. CROSS SOUND LAW GROUP n®ss uN Shane Seaman,Attorney t,'N, 47.m.--. Dee Boughton,Attorney GROUP 18887 St Hwy 305 NE Suite 1000 Poulsbo,WA 98370 360-598-2350 Ilk 0 June 27, 2017 Jefferson County DCD SEPA Responsible Official 621 Sheridan Street Port Townsend, WA 98368 RE: Response to Staff Comments; Objection to SEPA Exemption&Request for Environmental Review; Objection to purported compliance to cottage industry standards; and Objection to recommendation of approval for Conditional Use Permit Application: MLA 17-00019: ZON17-00002—ZON17-00003 —BLD 17-00093 Dear Mr. Hopper, SEPA Responsible Official, and Hearings Examiner, On behalf of the Marrowstone Island Preservation Committee, a committee of Marrowstone Island residents who will be impacted by a proposed industrial building to be sited at 9272 Flagler Road,Nordland, WA, a property zoned RR 1-10 located on Marrowstone Island, the following objections are entered into the public hearing record. This committee includes, but is not limited to, Cheryl Brunette, John and Jo Ann Comstock, Laurel Burik, Amy and Lee Does, Linda and Glenn Gately, Dave and Marsha Fitzpatrick, Patricia Earnest, Ken and Rosa Larson, and Laurie Tillman. I. ENVIRONMENT REVIEW AND A THRESHOLD DETERMINATION UNDER SEPA ARE REQUIRED BEFORE A CONDITIONAL USE PERMIT CAN BE CONSIDERED. First, we are requesting that the SEPA responsible official engage in environmental review of this proposed project and make a threshold determination as required by State Law and the Jefferson County Code. The staff report submitted by Jefferson County DCD simply and briefly analyzes the applicability of SEPA as follows: "The Proposal is SEPA exempt under Page 1 of 15 ORIGINAL WAC 197-11-800(1)(d) for a commercial structure under 12,000 square feet." However, this analysis falls far short. The above cited section, WAC 197-11-800(1)(d), is actually a table which describes the maximum exemption levels described in WAC 197-11-800 (1)(c). It is not applicable here. It appears that the inclusion above was likely a mistake or a scriveners error. We assume that the staff report should have included references to one or more categorical exemption found in WAC 197-11-800(1)(b). At the very least, it should be made clear which categorical exemptions are being recognized by Jefferson County DCD to apply to this project so that the parties can adequately respond. Regardless of the stated exemption, an analysis of WAC 197-11-800 alone is simply inadequate. A. The exemptions listed in WAC 197-11-800 are not automatically applicable when the proposed land use action is to occur on land which contains critical areas. The above discussed code is located within part nine of the SEPA rules and contains descriptions of the categorical exemptions recognized under SEPA. WAC 197-11-800. The exemptions themselves are authorized in WAC 197-11-305. This section states: If a proposal fits within any of the provisions in Part Nine of these rules, the proposal shall be categorically exempt from threshold determination requirements (WAC 197-11-720) except as follows: (a) The proposal is not exempt under WAC 197-11-908, critical areas. WAC 197-11-305(1)(a). WAC 197-11-908 allows city and county jurisdictions to make choices regarding which, if any, exemptions found in WAC 197-11-800 shall be applicable within their local jurisdiction. WAC 197-11-908(1). The scope of review of the exemptions chosen by the local jurisdiction requires documenting whether the proposal is consistent with the requirements of the critical areas ordinance, and also requires evaluating potentially significant impacts on the critical area Page 2 of 15 resources not adequately addressed by GMA planning documents and regulations and must include any additional mitigation measures needed to protect the critical areas consistent with the requirements of SEPA. Id. at(1)(b). Jefferson County has codified SEPA procedures which are subject to the provisions of WAC 197-800 and WAC 197-11-908 and subject to the limitations in WAC 197-11-305. B. A threshold determination is required under SEPA because the county cannot authorize an exemption for an action which is not exempt. Categorically exempt levels for Jefferson County, are described in the Jefferson County Code. JCC 18.40.750. The categorically exempt actions described in this section are generally exempt and do not require review under SEPA. JCC 18.40.750(2). However all code recognized exemptions are subject to the provisions of WAC 197-11-305 and subsection(3) of JCC 18.40.750. Id. Jefferson County may not authorize the use of an exemption for actions that are not exempt, nor for any action that would have a probable significant adverse environmental impact. JCC 18.40.750(3)(d)(i) & (ii). Jefferson County DCD states in the staff report submitted for this project that subject property for this proposed permit contains a Type F stream - Fish and Wildlife Habitat Conservation Area, a Special Aquifer Recharge Protection Area, and an At-Risk Seawater Intrusion Protection Zone. WAC 197-11-305 specifically removes properties containing critical areas from those which may be considered categorically exempt. WAC 197-11-305(1)(a). For this reason alone, a threshold determination under SEPA should be required, and performed. In addition to the fact that there are numerous critical areas affecting the subject property, it should be abundantly clear that the proposed action will have a probable significant adverse environmental impact. Jefferson County has already made this determination in another context, Page 3 of 15 and should apply their analysis to this issue. In the context of determining whether this project would be determined to be a Type II or a Type III application, the staff made the following recommendation, as stated in the staff report which has been submitted for review herein. Because this application involves potentially significant impacts to the surrounding properties and the community, as well as size, design and location concerns, staff concludes that the above criteria under JCC 18.40.520(2)(a)(i) apply and therefore recommends that MLA1700019 be processed as a Type III Conditional "C"Use Permit with a Public Hearing and Decision by the Jefferson County Hearings Examiner. The administrator made the following finding. 18.40.520(2)(a)(i): In the exclusive, discretionary judgment of the Administrator, the application involves potentially significant issues relating to location, design, configuration, and potential impacts to surrounding properties and the community that can be more appropriately considered and addressed through an open record hearing before the Jefferson County Hearing Examiner. Based upon the above finding, there should be little question that not only is there the possibility of significant adverse environmental impact, Jefferson County was and is aware of those potential adverse impacts. Because of the obvious potential adverse environmental impact,this project is not exempt from environmental review. JCC 18.40. 750(3)(d)(i) &(ii). This permit should be remanded back to the administrator for environmental review and a threshold determination. C. Even if this action were exempt,the Jefferson County Code requires environmental review and a threshold determination. Even if the above restrictions did not apply under WAC 197-11-305, all exemptions are additionally subject to section (3) of JCC 18.40.750. Specifically, categorical exemption listed in WAC 197-l 1-800 shall not apply when undertaken wholly or partly on lands covered by water. In this instance,the property in question is partly covered by water as it contains a Type F stream. Page 4 of 15 Additionally, Jefferson County code states that all proposals in areas which contain critical areas SHALL require environmental review and a threshold determination, and further states that they may be conditioned or denied under the relevant section. JCC 18.40.750(3)(g). This requirement is consistent with WAC 197-11-908 which requires the local agency perform the following: (a)Documenting whether the proposal is consistent with the requirements of the critical areas ordinance; and (b)Evaluating potentially significant impacts on the critical area resources not adequately addressed by GMA planning documents and development regulations, if any, including any additional mitigation measures needed to protect the critical areas in order to achieve consistency with SEPA and other applicable environmental review laws. WAC 197-11-908(1)(a)&(b) Both the Jefferson County Code and the Washington Administrative Code require environmental review in situations such as the present permit proposal. In other words, when a categorically exempt action is located in an environmentally sensitive area, then it is subject to the requirements of both the WAC and the Jefferson County Code. In such a situation, the code requires environmental review and a threshold determination. JCC 18.40.750(3)(g). For these reasons, this matter should be remanded back to the SEPA responsible official for environmental review and a threshold determination. II. THE PROPOSED ACTION IS INCONSISTENT WITH THE JEFFERSON COUNTY COMPREHENSIVE PLAN, FAILS TO SATISFY THE CRITERIA FOR A CONDITIONAL USE PERMIT, AND DOES NOT QUALIFY AS A COTTAGE INDUSTRY. The Jefferson County Comprehensive Plan has many goals and policies, among which is the clear goal to preserve the rural character of rural residential property. Thus, LNG 3.0 states that the goal is to "Ensure that rural residential development preserves rural character,protects Page 5of15 rural community identity, is compatible with surrounding land uses, and minimizes infrastructure needs." Jeff. Co. Comp. Plan LNG 3.0, at 3-47. A. The proposed action will not preserve the rural character and community identity of Marrowstone Island. Rural character is reflected by patterns of land use and development: (a) In which open space, the natural landscape, and vegetation predominate over the built environment; (b) That foster traditional rural lifestyles, rural-based economies, and opportunities to both live and work in rural areas; (c) That provide visual landscapes that are traditionally found in rural areas and communities; (d) That are compatible with the use of the land by wildlife and for fish and wildlife habitat; (e) That reduce the inappropriate conversion of undeveloped land into sprawling, low-density development; (f) That generally do not require the extension of urban governmental services; and (g) That are consistent with the protection of natural surface water flows and groundwater and surface water recharge and discharge areas. RCW 36.70A.030 Even within the above statute there are tensions between the natural landscape and opportunities to both live and work in rural areas. It is therefore also a stated goal to establish land use goals and policies within the Jefferson County Comprehensive Plan that are internally consistent with, and reflective of,the goals and policies of all other elements of the Plan. Jeff Co. Comp. Plan LNG 2.0, at 3-47 It is this stated goal to require consistency,that tempers other goals. It is true that there is a goal to foster home-based businesses or cottage industries in order to provide economic and employment opportunities outside rural village centers. LNG 6.0, at 3-51. This stated goal is expounded upon and limited by policies in LNP 6.1 and 6.2. As such both policies promote home based business and cottage industry, but at the same time limit application to businesses which are accessory to the single family residential use of the property. See particularly LNP Page 6 of 15 6.2, at 3-52. Thus the overarching goal and policy is to protect the rural residential character of land that is so designated as "Rural Residential". Upon a close review of Staff's comments regarding compliance with the comprehensive plan, at least two things should be apparent. First, conclusory statements are not helpful in determining compliance with the Comprehensive Plan, and second,the proposed action is actually inconsistent with the Comprehensive Plan. The following are specific responses to staff comments analyzing consistency with the Comprehensive Plan (beginning page 5 of staff report): 2(a). The described public process for the initial adoption of development regulations for recreational marijuana is not relevant to the issue. Production and Processing of marijuana in rural residential zones is only permittable with a conditional use permit. These uses are not permittable outright in a rural residential zone and are subject to the CUP process because they inherently present impacts that are not consistent with the policies creating and protecting rural residential zones. The staff report should provide an analysis of how the proposed project preserves the rural character and community identity, and is compatible with surrounding land use. Its failure to do so suggests that it is difficult, even for planning staff, to describe how a nearly 11,000 square foot greenhouse for an industrial use preserves the rural character and community identity of Marrowstone Island. 2(c). Austin Smith is the applicant of the proposed cottage industry permit, and is the applicant for the relevant licenses from the liquor and cannabis review board. Mr. Smith has indicated in public forums,that he does not intend to reside at the 9272 Flagler Road property. Based upon his publicly announced intent not to reside on site, it is very clear that neither the production nor processing use is accessory to a residential use—he is, in fact, a business man Page 7 of 15 who has purchased this property to site his commercial business. Additionally, the staff report merely states that the proposed greenhouse is an accessory building to the primary residential use of the property—but provides no analysis of how this is. Just saying it does not make it so. Explanation and analysis of how an 11,000 square foot greenhouse for the purpose of producing and processing a commercial product, is in fact subordinate to a single-family residence is suspect is necessary for the Hearing Examiner to approve the project. 2(d). Environmental quality is critical to the preservation of rural character. What is being proposed here is to tight line the run off from a nearly 11,000 square foot impervious surface, and allow it to sheet flow unchecked and untreated to the Type F stream on the property. This is not consistent with the goal of preserving environmental quality. 2(e). This project does not in any way contribute to long term habitability, nor does it protect the historically significant area of Marrowstone island. Additionally, it detracts from the natural beauty of Jefferson County. The applicant's intentions are less than clear, but what is clear is that there are many long standing farms and farm houses on Marrowstone Island. None of them are made of glass or plastic, and with the exception of historic buildings found on Fort Flagler, there are no other known buildings on the island that even approach the proposed scale and appearance of the building proposed here. 2(h). Much is being made of the economic boon this project will be to Jefferson County and to the Marrowstone Island community. Economic Development Policy 1.1 is meant to support opportunities for retention, and expansion of existing local businesses, employment opportunities, and recruitment of new businesses that provide living-wage jobs. The applicant herein in his application to the Liquor and Cannabis Control board has stated that his proposed business will not provide a living wage jobs to employees. See Application of Austin Smith. Page 8 of 15 Thus, it appears that the proposed business will bring only the burdens associated with an industrial use within a rural residential zone, and will bring no tangible benefits. B. The proposed project fails to meet all of the criteria required for the issuance of a Conditional Use Permit. (1) The county may approve or approve with modifications an application for a conditional use permit (i.e., uses listed in Table 3-1 in JCC 18.15.040 as "C(a)," "C(d)"or"C") if all of the following criteria are satisfied: (a) The conditional use is harmonious and appropriate in design, character and appearance with the existing or intended character and quality of development in the vicinity of the subject property and with the physical characteristics of the subject property; (b) The conditional use will be served by adequate infrastructure including roads, fire protection, water, wastewater disposal, and stormwater control; (c) The conditional use will not be materially detrimental to uses or property in the vicinity of the subject parcel; (d) The conditional use will not introduce noise, smoke, dust, fumes, vibrations, odors, or other conditions or which unreasonably impact existing uses in the vicinity of the subject parcel; (e) The location, size, and height of buildings, structures, walls and fences, and screening vegetation for the conditional use will not unreasonably interfere with allowable development or use of neighboring properties; (f) The pedestrian and vehicular traffic associated with the conditional use will not be hazardous to existing and anticipated traffic in the vicinity of the subject parcel; (g) The conditional use complies with all other applicable criteria and standards of this code and any other applicable local, state or federal law; and more specifically, conforms to the standards contained in Chapters 1&20 and 18.30 JCC; (h) The proposed conditional use will not result in the siting of an incompatible use adjacent to an airport or airfield; (i) The conditional use will not cause significant adverse impacts on the human or natural environments that cannot be mitigated through conditions of approval; (j) The conditional use has merit and value for the community as a whole; (k) The conditional use is consistent with all relevant goals and policies of the Jefferson County Comprehensive Plan; and (1) The public interest suffers no substantial detrimental effect. Consideration shall be given to the cumulative effect of similar actions in the area. JCC 18.40.530 Page 9 of 15 If all of the above criteria are met, then the county MAY issue a conditional use permit, but is not required to do so. Id. The proposed action in this case fails to meet several of the above requirements. First, the project must be harmonious and appropriate in design, character and appearance with the existing or intended character and quality of development in the vicinity of the subject property. JCC 18.40.530(1)(a). There will be great deal of testimony from interested residents who live in the vicinity of the subject property, which will very clearly establish that the design, and character of the proposed building are completely at odds in character and appearance with the existing character and quality of the all other development on Marrowstone Island. Staff has commented in their staff report that the action here is agricultural and that the proposed building is similar in size to other structures in the near vicinity. Both of these assertions are mistaken. First,the action at issue here is not agricultural in nature. It is industrial in nature. Marijuana processing is clearly identified as an industrial use in the county code. See JCC 18.15.040, Table 3-1. Thus, this action is different in nature compared to almost every other type of use on Marrowstone Island. Second, the proposed building at issue here is a green house over 10,000 square feet in size, and standing 23 feet in height. There are no other buildings that are similar in character or size, on the entire island. It should be fairly clear that the first criteria is not met. Section d above requires that the conditional use will not introduce noise, smoke, dust, fumes, vibrations, odors, or other conditions or which unreasonably impact existing uses in the vicinity of the subject parcel. Staff concedes that all of the above impacts are possible but takes the applicant at his word that he will voluntarily use various methods to address each impact. This is not sufficient. There is no indication in the staff report what the required output from Page 10 of 15 fans will be in decibels. There is likewise no indication of the required amount of light that will be allowed to be generated from the projects sodium lights. Likewise,the staff report makes no comment on requirements regarding the level of odor that will be produced by production or processing. Until these variables are known, it will not be possible to determine whether mitigations will be sufficient to address the impact. For that reason alone, this criteria is not met. If the Examiner determines that mitigation can adequately address these impacts then the addition of specific mitigations should be made conditions of approval. Section g above is not met because this action is not consistent with the Jefferson County Comprehensive Plan. The proposed action is industrial in nature and is inconsistent with the rural character of the remainder of Marrowstone Island. Section j above is not met because the proposed action is of limited merit and is of little to no value to the community as a whole. The applicant has stated in his application to the Liquor and Cannabis Control Board that his endeavor will not offer a living wage to employees. Additionally,testimony will show that Jefferson County as a whole stands to obtain almost no tax revenue from this business venture. Additionally, unlike almost all other home occupation, or cottage industry business, this particular business model is entirely extractive. It offers no produce, or completed product for sale to the residents of Marrowstone Island. What it offers is an onerous"big business" model which takes advantage of resources, offers little in the way of wages, and exports product outside the area for sale to the sole benefit of the owner of thebusiness. Section k. See section g above. Section 1, requires that the public interest suffer no substantial detrimental effect with consideration being given to the cumulative effect of similar actions in the area. In this Page 11 of 15 particular case, consideration should be given to both proposed land use actions and the cumulative effect that they have on the public interest. What is being proposed here is for the Marijuana processing business to provide a home for employees to live in so that the processing plant can be sited on the property. All of this is to occur while the owner and operator of the business resides in King County. The residential and rural nature of the other properties on Marrowstone Island will suffer from the industrial nature of the action and the use if permitted. C. The proposed action does not qualify as a cottage industry. The Jefferson County Comprehensive Plan sets forth when and how a cottage industry is to be located within the rural residential zone: POLICY LNP 6.2 Permit cottage industries conducted by the owner or lessee of the property, who shall reside within the dwelling unit, as an accessory use within a single family dwelling or building accessory to a dwelling and which are accessory to the residential use of the property throughout the unincorporated portions of the County, subject to conditional use permit review procedures. This policy has been codified in JCC 18.20.170. However, to understand the full intent and purpose of the cottage industry provisions, one must refer to "Rural Commercial Lands" narrative of the Comprehensive Plan beginning on page 3-7 of the Land Use and Rural Element. The Growth Management Act has afforded very narrow opportunities for commercial uses within rural areas, which this section of the comprehensive plan explains appropriately, and identifies those areas designated as commercial crossroads or commercial village. This section also reviews when and how industrial use can occur within the rural lands. The discussion of non-residential uses in rural lands concludes with the section"Economic Activities Outside of Rural Commercial Areas" (p. 3-22, 3-23). The placement of this section, after the lengthy discussions of rural commercial uses and locations consistent with the Growth Management Act, Page 12 of 15 clearly indicates that these uses must be of such a scale that they cannot be considered a primary commercial use. Indeed, the description of cottage industry here is as follows: "Cottage industries will be reviewed through the conditional use permitting process, and must be clearly incidental and subordinate to the residential use of the property. Cottage industry is defined as limited small-scale commercial or industrial activities, and shall not grow beyond the scale permitted unless it is moved to a location designated for commercial or industrial uses. The limitations provided in land use policies are intended to prevent the activity from detracting from adjacent land uses and the rural character of the area(see LNG 6.0)." (Page 3-23). In keeping with these policies the Jefferson County Code clearly requires that"The cottage industry shall be operated by at least one full-time, bona fide resident in a single-family residence of the parcel on which the proposed use is being requested." JCC 18.20.170 (4)(a). This is subject to the purpose, which is "To provide for small-scale economic development activities on residential parcels, subordinate to the primary residential use." Id. at Sec. (1). Thus, the Code does not allow the cottage industry to be operated by a person who lives in another county while his employees reside in the residence on the property. The plain language of the code clearly states that at least one person who operates the cottage industry must be a bona fide resident in the single family residence. Id. To allow a speculator to purchase, site and operate an industrial business on property zoned rural residential turns the county code,the Comprehensive Plan, and Growth Management planning on its head. The staff report for the Olympus Gardens `greenhouse', addresses this issue by simply saying "The principal use of the property is residential. The proposed greenhouse is clearly secondary to the principal use." (Section 3,page 9, staff comment). This is further reiterated on page 11, criteria(n) staff comment, which states the primary use of the property is residential. While there is some discussion regarding the percentage the proposed building footprint will Page 13 of 15 cover on the 7.3 acre site and that it will be located within previously cleared area—this falls short of explaining how the current residential use of the property will remain primary, and how the 10,000 square foot greenhouse is "clearly incidental and subordinate." It is quite apparent that the opposite is true. The owner and operator did not purchase the property at 9272 Flagler Road to reside there. He purchased the property to site an industrial use there, and the fact that anyone will be residing within the residence is merely incidental and convenient. The code provides a list of uses which are allowable as cottage industries. These uses include: (a) Sales of antiques and collectibles;(b) Art or photography studios; (c) Computer software development;(d) Handicrafts; (e) Ironworking or blacksmith shop;(f) Construction office; (g) Furniture repair or refinishing;(h) Pottery shop; (i) Real estate sales office;(j) Small equipment repair;(k) Woodworking shop; (1) Excavating contractors;(m) Small engine and boat repair; and (n)Auto and truck repair and service (excludes auto and truck sales, fuel stations and heavy equipment repair). JCC 18.20.170(2) All of these allowable uses have one thing in common. The owner and operator resides in the residence to which these uses are subordinate. "Accessory Use"means use of land or of a building or portion thereof incidental and subordinate to the principal use or building and located on the same lot with the principal use. JCC 18.10.010. Based upon this definition, the code and the comprehensive plan sections discussed above, clearly require that home based business and cottage industries be incidental and subordinate to the residential use. This is the very mechanism by which rural and residential character is protected from commercial and industrial usurpation. Webster's dictionary defines incidental as synonymous with"minor" which is defined as "inferior in importance, size, or degree: comparatively unimportant." Webster's defines subordinate as "Placed in or occupying a lower class, rank, or position: inferior." Therefore, the primary use in home business and cottage industry actions must be residential. The commercial or industrial use must be secondary to, and inferior in importance in Page 14 of 15 size or degree when compared to the primary use, which is residential. Thus, conversion of the primary residential use to a primarily commercial or industrial use is specifically not allowed. Yet that is exactly what is being proposed in this case. If permitted, the proposed use of both producer and processor will become the primary use of the property- and the existing residence will become secondary and will be in use only to ostensibly meet the residency requirement of JCC 18.20.120. III. CONCLUSION This action should be remanded back to the SEPA responsible official to perform environmental review and make a threshold determination before further action is taken. Ultimately,this action should be denied because it does not meet all of the requirements for a Conditional Use Permit, and it is inconsistent with the Jefferson County Comprehensive Plan. Additionally,this action should be denied because it is an industrial use which simply does not qualify as a cottage industry. Respectfully submitted this 27th day of June, 2017 L Bert D Boughton WSB A .�►.016 On behalf of the Mame! : one Island Preservation Committee. Page 15 of 15 EXHIBIT A c„gn Envelope ID:1ADD3108.2866-4687-e710-8839FFA3978A tT`{jr:•� Washington State License Number 412943 �Y� 1 Liquor and Cannabis Board UBI Number 6040283380010001 OLYMPUS GARDENS Trade Name Operating Plan Required Elements—Producer/Processor ' , j Submission of an operating plan that demonstrates the applicant is qualified to hold the marijuana license applied for is required as part of the application process listed in Washington Administrative Code (WAC) 314-55-020. This operating plan must include a floor plan and/or site plan which illustrates the entire operation being proposed.(WAC 314.55.020(11)) Please describe how your operating plan complies with the requireSents I sted,in the WACs indicated below. Additional sheets may be attached If necesary:s" ' ` `Et s 1. SECURITY (WAC 314-55-083) e.:-.ANA.,,,, ".,r: " .,- l ` a. Will all employees wear an identification badge? IY Co YES b. Does your location have a security alarm system on all perimeter doors and windows? [E] YES c. Does your video surveillance system and recording device meet the following requirements? YES in Minimum camera resolution of 640 x 470 FE Internet protocol (1P) compatible (`s0 Recorded images clearly and accurately display the time and date 1 r7 Surveillance system storage device is secured on-site in a locked box l Camera recordings must be continuously recorded twenty-four hours a day IL" Surveillance recordings must be kept for a minimum of forty-five days FE System includes image acquisition, video recording, management and monitoring hardware and support systems t 0 Camera placement allows for the clear and certain identification of any individual or activity on the licensed premises including all areas where marijuana is grown, cured or manufactured PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504.3098,(360)664-1600,Icb.wa.gov LIQ1227 06/2016 Page 1 of 7 Envelope ID:1A0D3108.28B6-4687-8710-8639FFA3978A UBI Number 6040283380010001 2. TRACEABILITY (WAC 314-55-083(4)) a. Will you use a third party vendor for your traceability software? E YES x NO If you selected YES, please list the name of the vendor/software: If you selected NO, please describe how you will comply with traceability requirements: USING LCB M3 TRACEABILITY SYSTEM b. Is the system listed above compatible with the LCB's traceability system? [is YES 3. TRANSPORTATION OF PRODUCT (WAC 314.55.085) a. Quarantine: 1. Will all product be placed in quarantine 24 hours prior to transport? 1 YES 2. Will all product be entered into the traceability system? (E YES b. Manifest: 1. Will the manifest be printed and attached to the product during transport? Fri YES c. Will the product be transported in a locked safe and secure storage compartment that is secured to the inside body/compartment of the vehicle? rt YES 4. DESTRUCTION OF WASTE PRODUCT (WAC 314-55-097) a. Will waste be secured on site 72 hours prior to rendering it unuseable? YES b. Will all waste be disposed of in compliance with local and state laws, rules and regulations? cri YES c. Will you grind or chip non-dangerous waste and mix it with 50% non-marijuana waste? 1E YES PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,Icb.wa.gov LIQ1227 06/2016 Page 2 of 7 5;,n Envelope 10:1AOD31D8-2BB6-4687-B710.8839FFA3978A U9(Number 6040283380010001 5. DESCRIPTION OF OPERATION AND PREMISES a. Standardized Scale Will your scale meet the requirements listed below: YES 7 Licensees are required to have at least one scale on the licensed premises for the traceability and inventory of products. 1E1 The scale(s) used must have a National Type Evaluation Program (NTEP) Certificate of Conformance (COC). If a scale meets this requirement it should have an ID name plate on it with the COC number. ( t Licensees must register their scale(s) on a business license application with Business Licensing Services through the Department. b. Marijuana Production YES NO D Indoor Grow C Outdoor Grow c. Size category (plant canopy): Q Tier 1 — Tier Tier 2 a Tier 3 d. List the total square feet you will dedicate to plant canopy for each: Recreational: 10,000 OUTDOOR GREENHOUSES Medical: NA e. Describe the type of eight foot fencing and material used to encompass your outdoor grow or to connect exterior buildings on the licensed premises: CHAIN LINK WITH SCREEN MESH TO BLOCK VISION f. I acknowledge that all soil amendments,fertilizers, pesticides and other crop aids used will be compliant with LCB standards listed in WAC 314-55-084: LE:1 YES PO Box 43098, 3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,tcb.wa.gov LJQ1227 06/2016 Page 3 of 7 n Envelope ID:1A003108-28136-4687.8710-8839FFA3978A UBI Number 6040283380010001 6. PROCESSING OPERATION a. List the types of finished products that will be created on your licensed premises (such as useable marijuana, infused products and edibles): USEABLE MARIJUANA AND DRY SIFTED HASH b. Describe the processing methods and equipment you will use to create the items listed above (WAG 314-55-104): AFTER THE PLANTS HAVE DRIED, THEY WILL BE TRIMMED WITH A SATILLITE SL DRY TRIMMING MACHINE. PROTECTIVE GLOVES AND EYE WEAR IF NECESSARY WORN AT ALL TIMES. THE PRODUCT WILL THAN BE SORTED- USEABLE AND NON-USEABLE MATTER.NON-USEABLE MATERIALS WILL BE COMPOSTED. USUABLE MARIJUANA WILL BE CUT, TRIMMED AND SIFTED WITH SIFT BUCKETS FOR HASH AND PROPERLY WEIGHED AND PACKAGED FOR FLOWER. c. Describe the packaging for all finished products (usable and infused) to include how they will be sealed: HEAT SEALED PLASTIC BAGS AND OR GLASS JARS WITH HEAT SHRINK. d. Describe what information will be listed on labels affixed to your finished products (please indicate any differences between usable marijuana and marijuana-infused products): THE FOLLOWING INFORMATION WILL BE ON EACH PACKAGED ITEM- WARNING, THIS PRODUCT HAS INTOXICATING EFFECTS AND MAY BE HABIT FORMING. SMOKING IS HAZARDOUS TO YOUR HEALTH- THERE MAY BE HEALTH RISKS FOR BREAST FEEDING OR PREGNANT WOMEN- FOR USE BY ADULTS 21 YEARS AND OLDER ONLY- KEEP OUT OF REACH OF CHILDREN-MARIJUANA CAN IMPAIR, CONCENTRATION. COORDINATION AND JUDGMENT- DO NOT OPERATE VEHICLE OR MACHINERY UNDER THE INFLUENCE OF THIS DRUG- ALSO STATEMENTS FOR ALL PESTICIDES APPLIED AND GROWING MEDIUMS DURING PRODUCTION AND PROCESSING. PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,Icb,wa.gov L1Q1227 06/2016 Page 4 of 7 iyn Envelope ID:1A0D31D8-2688-4887-B710.8839FFA3978A UBI Number 6040283380010001 e. Will all soil amendments,fertilizers, pesticides and other crop aids used be compliant with LCB standards listed in WAC 314-55-084: YES 7. QUALITY ASSURANCE PROTOCOLS (WAG 314-55-102) a. Will all quality assurance testing be done by an accredited third party lab approved by the LCB: :71 YES 8. EMPLOYEES COMPENSATION AND BENEFITS DATA (WAC 314-55-020) a. Will you provide a living wage (at least one hundred fifty percent of the state minimum wage) to eighty-five percent or more of your employees? ❑ YES C NO b. Will you provide health insurance to at least eighty-five percent of your hourly employees? C YES Q NO c. Will you provide a defined benefit pension plan to at least eighty-five percent of your hourly employees? [l YES Q NO d. Will you provide five or more paid sick days annually to at least eighty-five percent of your hourly employees? ❑ YES X NO e. Is there a signed labor peace agreement or collective bargaining agreement with a labor organization in place? n YES 7 NO PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504-3098,(360)664-1600,Icb.wa.gov L1Q1227 06/2016 Page 5 of 7 n Envelope ID: 1A0D31D8.2B86-46B7-0710-8839FFA3978A 6040283380010001 USI Number 9. ATTACH FLOOR PLAN / SITE PLAN (architectural plans are accepted but not required). Plans must be drawn to scale. Please ensure your Floor Plan/Site Plan includes a key referencing the specific areas listed below. For your convenience, an example key is attached. a. Physical barrier/perimeter fencing enclosing the licensed premises including ail gates b. Grow area(s) dedicated to medical marijuana c. Grow area(s) dedicated to recreational marijuana d. Processing area(s) e. Quarantine area(s) f. Label all rooms g. Points of ingress/egress to the licensed premises h. Location of all doors and windows i. Location of secured Surveillance System Storage Device j. Location of all cameras and alarms k. Designated Waste area(s) /.—nocuSvb/:tt by: QU {4iK, SIM 11/28/2016 Signature Date Click 'yes' to attach floor plan fl YES PO Box 43098,3000 Pacific Ave.SE,Olympia WA 98504.3098,(360)864.1600,Icb.wa.gov LIQ1227 06/2016 Page 6 of 7 • c=sSicin Envelope ID:1A0D3108-2858-4887-8710-8838FFA3978A UBI Number (EY FOR ALL MARIJUANA FLOOR PLANS 49 Surveillance Camera:You must have 100%camera coverage.if you do not have 360° cameras,you will need a minimum of two cameras in each room.Draw arrows to indicate all directions the camera is capturing. R Retail Display Case POS Retail Point of Sale XXX Sight.Obscured Fencing 11.111 OMNI PIM Fencing * Security Alarm:Sensorthat is required on all exterior doors and windows Surveillance System Storage:Room,Closet,Lockbox or other secured location "'[ ..\ Door or entry into a Retail and Non-Retail Premise W Window:All exterior windows require an alarm ( Gate through fenced area:All gates require an alarm IDENTIFY ALL ROOMS AND AREAS ON THE FLOOR PLAN TO INCLUDE THE FOLLOWING: • Grow Area—Area where marijuana Is grown • ProcessingArea—Areawhereprocessingofanykindwiltoccur • Quarantine Area—Area that marijuana or marijuana Infused products are kept before being removed ortransported • Security Room/Controlled Access Area—All areas restricted to the general public. • Waste Area—Area waste will be held prior to destruction Note:If architectural plans or any otherform of floor plan is submitted,you must provide a key. PO Box 43098,3000 Pacific Ave, SE,Olympia WA 98504-3098, (360)664-1600,lcb.wa.gov L101227 06/2016 Page 7 of 7 = • rt `fiiK :a 4s ' • '1:4; _ hki>sd f's ° 1�AyY ` b a£ $ t k H � ' e - "4 ' �Y x+. w"�" '14:i 3 - :','''-- ,t,- ,,,,,i.,....gts- ,4";--.,:',,,,k..c -. , , ,,tv,,,,,,-4.: tifi,..--a-ti . :,,,,,-,3q @� w", , s.'::•, A 1, 4 16, , t•o,.4%.•„,.;.:77chiros 1.:,,;:** ,',',;,,‘.,,k" ":e.<-4C0:".. AVA,,,4.1,04-.1,,,V.',4 , ,,,..,ti :443 *.c.,;, l''' • itt 4$i ff 4. i iL !� vb.� � Pr,' �4 <i:;1st--:.,7:,-,,,i,;,,-4.ag � a zp >t« t Fgy3 '7 � ti',.?"v' : � ✓ :411'..-11 ��� q a baaQ , 3+. � ��lv'�Yt.;-.1:,,F., "x,e ^ Y -::,,.....!'-, ,,,,,,`,244,i047.-: t ` -,f4 ,,x4xa'< s ... „4.440 44.7,4„..117-1,1, 'If:'3.'":'', 4 ' '4? 'Po"14 ft'ltb N 'Z''' ell 1 ric - .- . 1 tI q� o rF4 ½W*„,I,,,,,;;-,.4-,,,:44.., kL€x` ti ,, � Jn44t 4 ... .„ ,./ ..„, r. ,„,,,,4,a4.. , f '', ! k';: . *. A7 ''8 y �`4 „iIt � ryn .$ d i va + Asas�� 2a r,„ t . A! � �. sk ` �fia e , "� ,,� 4."''''4,4,4,14.4,14..'''' � it � ' � � qm.� w� � , � ea .a � � -' ,;r � � z 'Y *4.41,-„, "i , Vit,, ��w V5_ ✓ ' t4.41'+,4.--i, *i", $ pm ,.7.'e0 _� ?s y-:; ��fpi.i,,,- . ,4IV ,4; Mt & „,,,,,,,,w•,•,,- .;„ F 'ryk•,•,,- 4. tfit�: ,>:' 'IV . y. :c p `E yC ,A,—,`..', A`<9�: • '„ : It %� «� % euq' Afi xi? a », y � � 0esaz� ;4vva � , �r'z,s4xya”yI :fi$ y //;444.,- %1 d + �^a-,!, s F7 „ g s„...,,, � 1-.•:::+*".,‘g� :i {.�? ,,,,,,',,l'')."4`�"� 7s ,.: �� "a r 4�y .4'Wr b : 'fiw� �� +� 1. *4:14,VM*'4,7;314,04' 't/Itt : k. A ik,+zwxz� � ,,,,,,4•7*,, at +� ��46�� � : : fi� i w "3 e ', x"' ..-,-*„ .1:e...— i ''''W * r, ▪ -kr. `.� l',. xf a exs ' p y+xr +r *+g R lv! a ,� ,y& ar X,� . r �¢ rs , .x r � ✓ a 'fic � FMw'' �• ' �$ ` A $ xss „ i °9A `Prp `af"3� • - fi ” ' fi" .. + > rb ,�°':',.:11/4••,1-7,2f , ` fi,„" A ° `' , #'{ ''-',1,,,' "i , e "sl8Y *i .a � ifixaay^. ,' r @ & 1dsw y€2 '+. a 't ° ! 4bs Y� a*v*;, � ^-pc f' 0„,..,,, - ^'' �� a};w r „...„.,..:1„,,,,,.:,,,4.7,,,,,,,..7.:,..14%,,,,,,..,..,\„, a ¢ „ .,1:44,,„,, ,71.,!:..t.,.-,.-..%!-,.- ` l. wyA ▪1 b '"«%dy : ,sa_. ,w! . yt '' spae a :¢ fi a'.1,..t. , itytt. ,7,F.' � mst ' , .: .rs '': ,11 9. EXHIBIT B http://www.ptleader.com/news/marrowstone-marijuana-producer-answers-questions/article_5d4aa8b8- 5608 11 e7-8029-bb899177c45e.html FEATURED) Marrowstone marijuana producer answers questions Kirk Boxleitner kboxleitner@ptleader.com Jun 21, 2017 I i' ,i3O f /Pt i .a . { 5'� . • i'e'S''r'' F f t s+z ra✓/i .'' 't fax le t v t i %oar,� ,� °w P �'wj td''ate' : ' ' 7/ i'.,,.4.-‹*;',,*4*,:,`,41-*'',4r,77.441-.2**,/,7**-7:. '**•*.•' i •/-44'*,,,',7, .-4 ',. ' . . / - */*** / 9 tib,," •1 y /,i , � �:nceuroUnds e; .. & ,+ iso " , �.. iiii. �.�- . .�� . `,-,a , f' , A tallwood fsproperty where Austin Smith hopes to locate ab marijuana- processing business at 9272 Flagler Road on Marrowstone Island. Photo by Allison Arthur Seattle's Austin Smith, who now owns Olympus Gardens LLC, with a Tier 3 marijuana processing operation in Silverlake, on March 7 filed a request with Jefferson County for a cottage-industry permit to process recreational marijuana inside a 10,080-square-foot, 23- foot-tall greenhouse at 9272 Flagler Road in Nordland. After residents of Marrowstone Island voiced displeasure to Jefferson County commissioners during their May 1 board meeting about the prospect of a marijuana- processing business setting up shop in their neighborhood, Jefferson County's Department of Community Development chose to require a public hearing on the proposal. That hearing is set for 1 p.m., Tuesday, June 27 at the Jefferson County Courthouse. The Leader made contact with Smith, through his representative Kevin Coker, and submitted a series of questions to Smith via email. His comments have been edited for Leader style, but not content. Q: What are your history and qualifications in the industry? A: I was an electronic technician with an enlisted surface warfare specialist designation and an enlisted air warfare specialist designation. While on sea duty, I was deployed to the Persian Gulf and participated in Operation Enduring Freedom and Operation Iraqi Freedom. After my sea duty, I was stationed overseas in Italy for three years before I was honorably discharged. I have a background in medical marijuana, extensive knowledge in the field and want to pursue farming in Jefferson County, using sustainable and environmentally responsible methods for a successful business, bringing much-needed tax dollars to our county. What was it about this specific site on Marrowstone that made it best suited for the needs of a marijuana processor, such as what you're looking to set up? First and foremost, the county has a clear and fair ordinance for legal medical/recreational farms. In addition, the people of Jefferson County were heavily in favor of proposition 1-502. The property I was looking to purchase in Jefferson County needed to be a secluded lot, preferably in the heart of the Olympic rain shadow. I wanted a large lot, 8-10 acres, preferably nestled in amongst other famers. In addition, the area seemed very liberal, being that the closest grocery store has a pot shop next door. It's a perfect fit. What were the chief concerns that were expressed by the folks who attended your community meeting (on May 15), and what responses were you able to offer? I think the members of the community responded well to the meeting, in hearing the great lengths I've gone to, to have zero impact on neighbors and a positive impact on the community. Aside from family, we've had multiple people from the island already volunteer to help crop the plants, when they have matured. So, the same people that live on the island would be working with us on the island. Why did you purchase this license from a company, Olympus Gardens, that reportedly had six violations, including two written warnings and four fines? First, I would recommend you do more research on the process with the state. I do not have time to educate you on the specifics, as they are both detailed and lengthy. Licenses don't go up for sale. You have to dig deep to find one. The Washington State Liquor and Cannabis Board had one very small window for producer licenses, and only had a small amount to authorize. It was a two-year process to acquire my license, and when this process started, there was one fine for looking in the quarantine area during the 24-hour period of quarantine. I have no idea why he did that. I'm not Micheal Lavallee. What would you say to folks who still have concerns about the potential environmental and cultural impacts of your business on their neighborhood? There will be zero environmental or cultural impact on the island. As far as environmental goes, our top drip irrigation system has no waste. As far as chemicals go, they are not on the Washington State University [Pesticide Information Center Online] list, and therefore are prohibited. In accordance with the PICOL list, we use mostly organic and natural sprays. Culturally, Marrowstone Island has been farmed since its original homesteading days. Dozens of families have moved here over the last 150 years, cultivating the forest for timber, growing crops, planting orchards, raising livestock, harvesting and planting shellfish, fishing and so on. It seems to me that the addition of a greenhouse to grow another cash crop is only part of the logical progression of utilizing our local resources in a responsible way. On other issues Water: The PUD is providing water, so there is no extraction from the aquifer, and all stormwater that currently falls on the site, to infiltrate and recharge the aquifer, will continue to do so, as shown by the stormwater engineering plan we submitted. The plants are grown in a closed hydroponic system, where the state-approved nutrients feed the plants through a drip system, and there is no runoff. Odor: We are using both a natural biodegradable "fog" system, that molecularly breaks down odor, and then a carbon-scrubbing filtration system, that cleans the air before exhaust. I was told by an independent engineer that you could stand directly outside the exhaust, and you will smell nothing. Neither of these systems are required by regulating agencies. I am doing so at significant additional cost because, in my opinion, it is the right thing to do. 41111#4, Take tle PUD broadband survey! pup � / Ja 1(t^reser C vatx Noise: The fan system being used is state-of-the-art, as are many of the features. Standing outside the building near the fan, two people can carry on a conversation. Anyone beyond a few dozen feet would have difficulty hearing anything from the system. Fans are 48 in the greenhouse. Schaeffer is the brand. They are the best and quietest. Light pollution: A light deprivation system, that is computer-controlled, extends a curtain above and around the interior of the greenhouse, eliminating light. The system cost over $15,000, and was not required by the state or local code. NextGen light deprivation systems keep 100 percent of the light in or out, depending on the light schedule and time of day, eliminating light intrusion. Cameras/security: The infrared cameras are placed as per law, and directed into the fencing area and greenhouse, not out to adjacent areas, and use no additional lighting. There are no armed guards. Processing: No chemicals are used in the processing of the plant material. Mechanical spinning and compression only. Traffic: There will only be two to three vehicles used by my family. There will be small amounts of traffic, as with most businesses, for delivery. Structure: Clearly, the current code allows for home businesses, including ancillary structures such as "barns." Our greenhouse is a single enclosed structure, with two smaller roof lines and two larger roof lines, at only 60 percent of the allowed height. If you look at the county aerial views, you will find what looks like a large chicken house only a mile away to the southeast, it spans over 125 feet in length as a single structure, and homes are far larger with far greater impact. Screening: We are complying with all the required fencing and vegetative screening. We have installed a 6-foot-tall fence at the road, and will be planting native variety trees to infill the few gaps on that property line, and have a full mature forest canopy along the other three edges of our property, that reaches over 50 feet in height. There are many more issues, including public notice and other items, that are squarely in the county and state jurisdiction, and we are complying with them all. The Hearings Examiner will hold an open pubic meeting June 27 at 1 p.m. in the Jefferson County Courthouse, and will review all comments, law and local codes before ruling. We do understand that fear has driven many to false conclusions, and we have tried to get the word out about what we are legally pursuing as a business, and how we have invested tens of thousands dollars in additional costs to mitigate any impact on neighbors, and my own residence on the site. I have stated categorically that we want the business to operate in such a way as to be unnoticeable by our neighbors.