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8.B. - Page 3 of 48 <br />has assessed the revenue potential, industry trends, best practices, and regional developments for the <br />City's exploration of establishing retail cannabis storefronts in Redwood City. The company represents <br />over 175 cities and counties in California for cannabis related services. HdL's Cannabis Management Team <br />of professionals has over 46 years of direct experience establishing and implementing cannabis regulatory <br />and taxation programs, including establishing land -use regulations, permit processes, staffing plans, cost <br />recovery fees, regulatory compliance, financial audits and staff training. Furthermore, their staff has <br />conducted over 16,000 cannabis compliance inspections and investigations in California, Colorado, and <br />Nevada. In addition, HdL staff has reviewed, scored and processed over 2,200 cannabis business <br />applications for California cities and counties in the last five years, which included reviewing pro -formas <br />and other financial documents. Most recently, HDL assisted City staff with drafting the City's 2018 <br />cannabis tax measure. <br />On December 9, 2019, with the assistance of HdL, staff presented a fiscal analysis report to the Finance <br />and Audit Committee (FAC). The FAC members recommended staff undertake further public outreach to <br />determine public opinion about allowing cannabis retail storefronts in the City. The Committee also asked <br />staff to present a report to the City Council that identified potential impacts, policy issues, and the merits <br />of allowing cannabis storefront retail operations. <br />On August 24, 20201 City Council held a study session to receive information and provide staff with <br />feedback on whether to develop zoning and Municipal Code ordinance amendments to allow for cannabis <br />storefront retails. Staff asked Council for input on five questions: <br />1. Should the City permit up to six cannabis retail storefront businesses? <br />2. Should cannabis retail storefront businesses be permitted to conduct delivery services as part of <br />their cannabis business permit? <br />3. Should cannabis storefront retailers be permitted in all zoning districts allowing general retail? <br />4. Should retail storefront cannabis businesses be subject to the same city requirements established <br />for non -storefront retail cannabis businesses? <br />5. Should retail storefront cannabis business applications be processed using a merit -based application <br />process conducted by staff, or should the City Council be involved in the final decision or any appeal? <br />Members of the City Council provided their thoughts on these five questions which responses are <br />incorporated into the ordinance amendments under consideration and detailed below. <br />There was support for amending City ordinances to permit retail cannabis storefront businesses in certain <br />zoning districts in Redwood City, including the following recommendations: <br />• Allow up to six storefront cannabis retailers <br />• Allow storefront cannabis retailers to conduct deliveries <br />• Classify storefront retail cannabis similarly to general retail. This approach would allow these <br />businesses to be located in Redwood City's Zoning Districts in the same manner that general retail <br />uses are allowed. In some situations, a Conditional Use Permit would be required if certain square <br />footage thresholds are met, as identified elsewhere in this report. <br />• Continue the 600 -foot buffer from sensitive uses <br />Page 3 of 12 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />476 <br />