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• . • During this phase, City staff also plans to develop a cannabis business regulatory fee by conducting a nexus study to determine potential staff costs involved with licensing, regulating, and enforcing cannabis activity. At the same time, staff will review and finalize options for taxing local cannabis sales. If the City Council decides to pursue a cannabis excise tax, the proposal would need voter approval and could potentially be placed on the November 2018 election ballot. 3. Phase 111 — Delivery -Only Retail - January 2019 In Phase III, staff recommends that the City implement regulations to allow cannabis delivery from warehouses/facilities located in Redwood City. These warehouse facilities would act as distribution centers, with no direct customer access or pick-up. Drivers would pick-up cannabis from these facilities, and deliver it directly to customers in Redwood City and other nearby cities. These facilities would still follow the State regulations and licensing process for a retail business. Therefore, for the purposes of this report, these facilities are referred to as "delivery -only retail facilities." Appropriate zoning regulations would need to be developed in order to allow delivery -only retail facilities. As is the case with other land -uses, the City can decide where cannabis businesses can locate. Furthermore, the City can determine whether the uses are permitted by -right or are "conditional" uses. Conditional uses require further review and findings to be made on an application by application basis. In addition to local land -use regulations, there are State level land -use regulations. State law requires that cannabis businesses be at least 600' away from schools, daycares and youth centers. The City may expand this radius requirement to 1000', or any distance the City deems appropriate. For example, the City Council may find that the delivery -only retail facilities (which operate like other distribution centers) are most appropriately located in industrial -related zoning districts. Within these Industrial Districts, cannabis -related uses would still be prohibited near schools, daycares, and youth centers. The map in Attachment F shows the potential sites for delivery -only retail facilities. For the purposes of this map, City staff assumed that these businesses would be most appropriate in industrial related zoning districts. Using the City's GIS system, a 600' radius buffer from all known schools, daycares and youth centers was applied. If the City were to move in this direction, a more detailed site analysis would be conducted, to make certain all schools, daycares and youth centers were captured. E3