REQUEST FOR CITY COUNCIL ACTION
DATE: 08/21/2024
TO: Honorable Mayor and City Council Members
FROM: Legal & Risk Management Department
SUBJECT:
Title
DISCUSSION REGARDING STATUS OF COMMERCIAL CANNABIS REGULATIONS, INCLUDING: (1) CONSIDERING WHETHER TO ELIMINATE THE MERIT-BASED SELECTION PROCESS FOR STOREFRONT RETAIL PERMITS NOW THAT THE PRIOR RANKING LIST HAS EXPIRED; (2) CONSIDERING WHETHER TO DECREASE THE MAXIMUM NUMBER OF STOREFRONT RETAIL PERMITS; AND (3) PROVIDING DIRECTION ON WHETHER TO RESEARCH THE FOLLOWING: (A) COMMERCIAL CANNABIS TAX RATES; (B) CHANGES TO THE COMMUNITY BENEFITS REQUIREMENTS FOR STOREFRONT RETAIL BUSINESSES; AND (C) CHANGING THE PROHIBITION AGAINST TRANSFERING A PERMIT OR SELLING 50% OR MORE OWNERSHIP OR CONTROL OF THE PERMIT
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EXECUTIVE SUMMARY:
This staff report asks the City Council to consider adopting attached Resolution No. 2024-092 to: (1) amend the City's commercial cannabis rules and regulations to eliminate the merit-based selection process for those storefront retailers and storefront retail microbusinesses allowed to apply for future commercial cannabis business permits; and (2) consider whether to decrease the number of commercial cannabis permits available for storefront retailers and storefront retail microbusinesses from twelve (12) to eight (8) or more. In addition, this staff report asks the City Council to provide direction to staff on whether to research the following: (1) a possible reduction in the commercial cannabis tax rates imposed by CMC Chapter 3.38; (2) a possible change to the community benefit actions or measures that applicants for storefront retailer and storefront retail microbusiness permits have been asked to commit to implement in order to help mitigate the potential adverse impacts to the community resulting from the applicant's business; (3) a possible change to the prohibition against transferring a commercial cannabis permit or selling 50% or more ownership or control of the p...
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