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6A.B. - Page 2 <br />ALTERNATIVES <br />1. Adopt the ordinances with changes, which will require an additional reading of <br />the ordinances and could require additional environmental review. <br />2. Do not adopt the ordinances. <br />FISCAL IMPACT <br />To date, the City has enacted fees to cover the cost of regulating cannabis businesses, <br />so any fee revenue received from cannabis businesses locating in the CO Zoning <br />District would be offset by the cost of regulation. Should voters approve an excise tax <br />on cannabis businesses, the City potentially could receive a modest increase in revenue <br />as additional cannabis businesses could locate in Redwood City. Given low vacancy <br />rates, the fiscal impact is expected to be limited. <br />ENVIRONMENTAL REVIEW <br />The proposed amendments are statutorily exempt from the requirements of CEQA <br />because the delivery center and nursery uses would require a Conditional Use Permit <br />(Bus. & Prof. Section 26055(h)). This section states that CEQA does not apply to the <br />adoption of an ordinance, rule or regulation by a local jurisdiction that requires <br />discretionary review and approval of other permits or licenses. To qualify for this <br />exemption, environmental review must be performed as part of the discretionary permit. <br />DIANA O'DELL <br />PRINCIPAL PLANNER <br />AARON J. AKNIN <br />ASSISTANT CITY MANAGER AND DIRECTOR OF COMMUNITY DEVELOPMENT <br />