NEDERLAND - The Planning Commission met on Wednesday, June 25, 2025, to give their final vote on Ordinance 876, which amends municipal code to formally adopt regulations on the use of natural medicines and the operation of licensed health centers within the Town of Nederland. 

Ordinance 876 was written to adhere to the Natural Medicine Health Act (NMHA), which was approved by the State of Colorado in 2022 and includes term definitions for related psilocybin-administering centers and cultivation businesses. It also relates to Proposition 122, which decriminalizes the use, possession, and growth of certain natural medicines. 

The ordinance also amends Chapter 16 of Nederland Municipal Code (NMC) to allow for “Cultivation, Product Manufacturing, and Testing facilities to be constructed in Central Business District (CBD) General Commercial (GC), and Industrial zones.” Medical clinics are also allowed in Neighborhood Commercial, CBD, GC, and Public zones by a Special Review Use process.

The specific businesses and facilities involved in natural medicine must be licensed with the State of Colorado and are expected to operate within state law. Any cultivation has to be performed in an enclosed space that is imperceptible from the outside of the property. 

Approval of Ordinance 876 will also automatically repeal Ordinance 871, a temporary moratorium of the use of “natural medicine,” pertaining specifically to psilocybin, and the establishment of natural medicine services in Nederland. The moratorium was established by the Board of Trustees (BOT) on January 21, 2025.

Town Attorney Jennifer Madsen detailed to the Commission the one change made since the last reviewed draft of the ordinance, which regards the change of term definitions in order to conform with their uses as detailed in Section 16-32 of the ordinance.  

After some reiteration about the allowed uses in certain property zones and the effect of  the Town’s own business licensing process on natural medicine services discussed during their May meeting, the Commission unanimously approved Ordinance 876, establishing regulations for natural medicine services and repealing the moratorium on those practices. 

Zoning and land use

Commissioners received an update regarding zoning and land use recommendations from the 2025 Comprehensive Plan and the recently adopted Downtown Subarea Plan that are to be introduced for discussion during the next meeting on July 23.  

A full staff report will be presented in July, with the intention of detailing each of the zoning and land use recommendations and developing strategies for implementation.

These recommendations are relevant to setting new regulations for Planned Unit Developments, integrating split commercial and residential developments, and developing design standards for downtown Nederland. Many of the recommendations include seeking resolution through the creation of “overlay districts.”  

Commissioners previously discussed a Downtown Overlay Zoning District back in April. Town Administrator Jonathan Cain explained how overlay districts could have additional regulations that complement the existing zoning designations in the area, and could be designed to affect focused areas of Nederland’s downtown. 

“I think the rubber is really going to hit the road next month,” Commission Chair Jim Reis said, noting that the design standards for East 1st Street are going to lead to big and impactful discussions, particularly regarding the recommendation of an increase in building height from 35 to 43 feet. 

“I think the decision of an overlay district is a critical one,” Commission Vice Chair Steven Williams said, stating his belief that the particular discussion should take precedence over other matters, as it could involve complicated changes to NMC. 

 Affordable housing variance  

The Commission also discussed Ordinance 856, which regulates the Yard and Bulk requirements on affordable housing. The draft ordinance includes specific criteria for developers who are seeking up to a 50% yard and bulk variance on deed-restricted affordable housing developments and establishes a minimum of 30 years for deed restrictions on affordable properties.

Community Planner Britt DeMinck introduced additional staff recommendations for amendments to Ordinance 856, which include a definition of the term "housing development" in Section 16-322 and language in Section 16-323 to clarify that “all dwelling units within the proposed development must be designated as affordable housing and subject to the required deed restrictions in order to qualify for an affordable housing development variance.”

There was a question as to whether the 30-year minimum for deed restrictions could be amended and changed by future administrations, to which DeMinck replied that the minimum could be changed. He explained that the amount had been changed from 20 years due to objection from Mayor Billy Giblin and Trustee Tania Corvalan. 

Commissioners asked DeMinck to return in July with additional clarification on the exclusion of certain language from Section 16-323, pertaining to single family homes. The Commission will also be expected to discuss the Town of Nederland’s Area Median Income and the definition of “affordable” in relation to housing. 

The Nederland Planning Commission meets on the fourth Wednesday of every month. Their next meeting is scheduled for Wednesday, July 23, 2025, at 6 p.m. Meetings can be attended online via WebEx. 

For more information: https://townofnederland.colorado.gov/planning-commission.