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8.A. - Page 15 <br />ALTERNATIVES <br />(1) The Council could choose to implement only Phase I and 11 and adopt only the <br />proposed amendments to Article 59 of the Zoning Code, which limits personal <br />cultivation and bans all commercial cannabis activity in the City except for deliveries. <br />(2) The Council could implement Phase I and II as proposed, but combine Phases III and <br />IV so that one set of regulations is developed at the same time that allows both <br />storefront and delivery only retail businesses to locate in the City. <br />FISCAL IMPACT <br />Depending upon the phases adopted, the City could realize additional revenues to the <br />General Fund. As mentioned above, the City would not recognize any additional <br />revenue if the only adopted regulations are the bans on medicinal and adult use <br />cannabis businesses. <br />Using conservative estimates, an implemented second phase could bring in about <br />$5,000 in additional business license tax revenue. With the adoption of the third phase, <br />the City could receive total new revenues of approximately $125,000, assuming a 5% <br />cannabis tax and using a very conservative estimate of actual sales from cannabis <br />businesses in Redwood City. If all four phases were adopted, the City could potentially <br />see approximately $287,000 in total new annual revenues. <br />City staff anticipates that significant additional staff time will be involved with monitoring <br />and enforcing any new cannabis regulations. It is difficult to determine what the cost of <br />staffing each implementation phase will be, but staff will seek to recover those additional <br />staff costs with a cannabis business regulatory fee. Revenue from this fee is not <br />included in the estimates above. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in CEQA Guidelines, Section <br />15378, because it has no potential for resulting in either a direct or a foreseeable <br />physical change in the environment. <br />KIMBRA MCCARTHY <br />ASSISTANT CITY MANAGER -ADMINISTRATIVE SERVICES <br />MELISSA STEVENSON DIAZ <br />CITY MANAGER <br />15 <br />