AgdaPkt 2020-10-26 Joint SA PFA - Laserfiche WebLink

Browse Search

8.B. - Page 2 of 48 On January 1, 2018, the state began issuing state licenses allowing businesses to sell cannabis products for medical use to individuals who are at least 18 and have a valid physician's recommendation and adult use to adults 21 or over. In response to these statewide changes, the City Council of Redwood City approved a phased approach to implement local medical and adult use cannabis regulations. The phased approach includes: • Phase 1 (Completed): In November 2017, the City Council adopted a Zoning Code amendment regulating personal cultivation of cannabis and banning commercial cannabis -related activities including commercial cultivation, manufacturing, testing, retail, and distribution, except for deliveries of medicinal and adult use cannabis by cannabis retailers located outside Redwood City. This step maintained local land use control and allowed city staff more time to analyze other potential allowed uses. • Phase 2 (Completed): Delivery operators who may be delivering cannabis products in the City were notified that they needed to obtain a business license and pay the business license tax. Cannabis regulatory fees to offset staff costs involved with permitting and regulating cannabis activity and regulations associated with deliveries were developed in Phase 2 and adopted in Phase 3. • Phase 3 (Completed): The City Council adopted regulations to allow cannabis delivery from non - storefront retail (e.g., delivery only) facilities located in the City and to allow cannabis nurseries. Non -storefront retail facilities are permitted by right in the Industrial Restricted (IR), Light Industrial Incubator (LII), Industrial Park (IP), and General Industrial (GI) and conditionally permitted in the Commercial Office (CO) zoning districts. Indoor nurseries are conditionally permitted in the CO, IR, LII, IP, and GI zoning districts. All commercial cannabis activity is subject to the minimum distance requirements of 600 feet from certain uses as well as requiring a Cannabis Business Permit pursuant to Municipal Code Chapter 32, Article V, Division 7. Furthermore, the City Council placed a cannabis tax measure on the November 6, 2018 Gubernatorial Election Ballot. The tax measure was approved by 78.69% of Redwood City voters. • Phase 4 (Current): Consideration and implementation of policy and program recommendations to allow retail storefront (walk in) cannabis businesses to operate in designated zoning districts of the City. On August 15, 2019, the City Council Finance/Audit Sub -Committee (FAC) discussed options for increasing General Fund revenues as part of a strategy to address projected operating budget deficits over the next decade. On October 14, 2019, City staff presented the FAC with initial research on the potential new City revenue generation from permitting retail cannabis storefront businesses. The Sub -Committee recommended further analysis of this option and staff reconvened the City's cannabis inter -departmental staff team to explore options for allowing cannabis retail storefront businesses. To analyze options and understand the experience of other communities, the City engaged the services of HdL, a recognized local government consulting firm with expertise in cannabis permitting policy. HdL Page 2 of 12 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 475