Legal Ruling Could Slow Commercial Zoning Changes in California: In Medical Marijuana Case, Supreme Court Says Cities Can’t Skip Environmental Review

CoStar (September 5, 2019) A California Supreme Court ruling could lengthen the amount of time it takes for cities to approve cannabis-related projects, but the implications could also extend to other types of developments by adding an extra layer of review to the approval process. The state Supreme Court found that the city of San Diego failed to consider state environmental-quality guidelines before approving new zoning for medical marijuana dispensaries and should have done a formal assessment to determine if the new ordinance was exempt from California Environmental Quality Act guidelines, overturning a decision by a lower Superior Court following an appeal. The court's decision might affect existing zoning or future consideration of marijuana sales and production licenses, especially now that San Diego is among several California cities processing permits for recreational cannabis sales. But lawyers contacted by CoStar News said the Supreme Court ruling has statewide implications for passage of all types of ordinances that allow for new uses in a zoning jurisdiction. "It could add a few pages or a few weeks to an approval process on projects," said Heather Riley, partner in the land-use practice of law firm Allen Matkins. "But it’s certainly not going to stop cities from making zoning changes." Riley said this decision has the potential to impact, for instance, steps being taken by San Diego and other cities to lessen zoning restrictions in some neighborhoods, in order to get more affordable housing built. The extra required review steps could slow completion of future projects under such targeted zoning.