The Town of Saugerties is considering a new zoning amendment that would allow indoor agricultural operations, including cannabis cultivators, to seek special use permits in five districts.
The town board held its first public hearing on the draft law Wednesday, Sept. 2. The proposal follows a dispute over whether a cannabis cultivation facility should be permitted in the Highway Business district and comes amid disagreement over where indoor growing operations belong.
The law would permit indoor agriculture in the Industrial, General Business, Highway Business, Office Light Industrial, and Low-Density Residential districts. It is now permitted only in the Industrial district.
The proposal defines indoor agriculture as the cultivation of “field crops, fruits, vegetables, horticultural specialties, aquaculture, cannabis and plants used for fiber or medicinal purposes.”
The amendment wouldn’t approve any particular facility. Instead, it would allow prospective indoor growers to seek special use permits and undergo site plan review in four additional zoning districts.
The proposal also comes as Saugerties weighs its role in New York’s legal cannabis industry. The town opted out of allowing adult-use dispensaries and on-site consumption businesses in 2021, and the state Office of Cannabis Management’s online directory lists no licensed adult-use dispensaries with a Saugerties address.
Municipalities couldn’t opt out of cannabis cultivation or other license categories, although they may use zoning to regulate where those businesses operate.
In May, the Zoning Board of Appeals upheld a determination that a proposed DIYDS LLC cannabis facility constituted indoor agriculture and therefore wasn’t permitted in the Highway Business district.
DIYDS proposed operating the facility in existing buildings on a 1.2-acre parcel at 1776 Route 212. No new construction or retail sales were planned, according to testimony before the board in April.
Evan Seplow, the applicant, said DIYDS held a state cannabis microbusiness license and expected to employ fewer than 10 people. Cannabis grown at the facility would be supplied to retailers elsewhere in New York, he said.
The company estimated that the operation would use 94 gallons of water per day and recycle much of it. Some neighbors questioned that estimate and raised concerns about groundwater contamination, septic capacity, electricity consumption, odor, and the facility’s proximity to their homes.
Seplow didn’t respond to a request for comment.
“This specific use is not appropriate for this site,” said Arefa Mohamed, who told the board that her parcel is directly above the proposed facility and comes within about 20 feet of it. “Placing a high intensity commercial use is not compatible in a residential area.”
The property is zoned Highway Business, although several homes are nearby.
DIYDS argued that its operation qualified as a “horticultural specialty,” a use permitted in the district. The board concluded that it constituted indoor agriculture, which the zoning code permits only in the Industrial district.
Building Inspector Sean Weaver said he initially classified the proposal as a horticultural specialty because that designation would require Planning Board review. An outdoor cannabis operation on Blue Mountain Road had been allowed without such a review under the town’s right-to-farm law, he said.
“I have already brought my concerns to the Town Board regarding where indoor growth of cannabis will fit with Planning Board oversight,” Weaver said. “Outdoor growth has no oversight because of right to farm laws.”
Samantha Dederich, who participated in the committee that helped develop the existing rules, said its members initially wanted indoor cultivation to be permitted throughout town. The committee limited it to the Industrial district after concerns were raised about large factory-farming operations.
“There is an inconsistency between the use table and the right to farm law, which allows all crops to be grown outdoors, but not indoors,” Dederich said.
Town Councilman Mike Ivino said a possible discrepancy in the zoning code was brought to the town board’s attention in July, although he said he wasn’t aware of the business whose proposal had been rejected.
Ivino said he supported allowing indoor cannabis cultivation in additional zoning districts. The change would provide a framework for future discussions about cannabis regulation and whether Saugerties should be a “cannabis-friendly town,” he said.
Town Councilwoman Leanne Thornton said the proposed zoning changes would support existing farms and encourage economic development in districts near major roads.
“It’s basically allowing agricultural production to be expanded,” Thornton said.
Indoor agriculture in Low-Density Residential districts would be limited to parcels of at least 15 acres with frontage on a state or county road. Ivino said the acreage requirement would provide a buffer between indoor growing operations and neighboring homes.
At Wednesday’s public hearing, Dederich, a fourth-generation vegetable farmer who lives on Old Kings Highway, supported expanding indoor agriculture zoning, saying the change would benefit more than cannabis growers.
“Indoor Ag is by no means limited to a large cannabis operation,” Dederich told the board. “Please don’t base your decisions on cannabis.”
She also urged the town to permit indoor growing in Moderate-Density Residential districts, which she said have greater access to state and county highways than Low-Density Residential districts.
Indoor agriculture can provide a cost-effective and sustainable way for farmers to grow microgreens and other specialty products, Dederich said.
“Most, if not all water is recycled and reused, which is not the case with field crops,” she said.
Thornton said the board plans to hold another public hearing before preparing a final version of the law for consideration. The date is yet to be determined.
Isabella Schoonover is a staff reporter for The Overlook covering Woodstock, Saugerties, Hurley, and surrounding Ulster County communities. Send correspondence to isabella@theoverlooknews.com.
