Report Prepared by: Michael Hren, Principal Planner, Development Services Department
Title
SUBJECT: Direction on Possible Changes to the Commercial Cannabis Business Permits Ordinance Including, but not limited to, the Merit Based Selection Process, the Current Tax Rates, Inspection Procedures, Labor Peace Agreements, Safety Standards, Allowable Zones and Regulatory Fees
REPORT IN BRIEF
City staff will provide an update on the history and current status of commercial cannabis businesses in Merced. Among other considerations, seeking Council direction on the number of retail permits, local preference, taxes and fees, inspections, possible expansion to other zoning districts, and other items relating to the Ordinance.
RECOMMENDATION
Provide staff with direction on items relating to the cannabis Ordinance and related matters.
Body
AUTHORITY
Section 20.44.170 of the City of Merced Municipal Code addresses Commercial Cannabis Business Permits.
CITY COUNCIL PRIORITIES
FY 2020-21 Council Priority #1 includes Public Safety and Parks, which taxes from the passage of Measure Y can supplement. Council Priority #5 includes Infill Development and Priority #6 includes Industrial Development, both of which cannabis business can significantly impact.
DISCUSSION
The City's Commercial Cannabis Business Ordinance, Merced Municipal Code 20.44.170 (Attachment 1), was first adopted in December 2017, with the passage of Ordinance #2480 and substantially amended in March 2019, with the passage of Ordinance #2498. Since adoption of the Ordinance, 15 total permits have been approved.
Current Status of Permitted Cannabis Businesses
* 3 retailers in operation, 1 completing tenant improvements, 1 expired
* 8 other permits (4 entities) approved but not operational
o 3 Manufacturing
o 3 Distribution
o 2 Cultivation
* 1 Cultivation permit, 1 Distribution permit, 1 Retail permit not renewed
* 1 application for Cultivation pending Phase 2 fee and review
* Under the current code, the...
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