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8.B. - Page 9 of 48
<br />Excise Tax Rate Storefront Bradley Burns Measure Total Annual
<br />Retailers Local Sales Tax RR Projected
<br />Projected (1%) Transaction Revenue
<br />Revenue Tax (0.5%)
<br />In addition to the revenue that will be generated from the cannabis storefront retailers, the consultant
<br />estimates that the City will also receive approximately $652,500 in revenues from the non -storefront
<br />retailers in excise, sales and transaction taxes. Non -storefront retailers also contribute $10,000 each as
<br />part of the annual renewal fee that is designated for cannabis drug education for children and youth. This
<br />fee will be collected for the first time in 2021 when non -storefront retailers renew their license. City staff
<br />propose to include the same cannabis drug children and youth education prevention fee for storefront
<br />retailers.
<br />FISCAL IMPACT ON CITY RESOURCES
<br />There will be some additional impact to City resources (primarily staff time) to expand the cannabis
<br />program but with the assistance of the consultant this impact can be minimized and costs can be recouped
<br />through the application fee. Permit fees can also cover staff time involved in ongoing monitoring of
<br />business operations. To date the City has spent significant staff resources to bring this City Council
<br />initiative forward. Permit application fees for potential businesses will cost $22,604. City staff plans to
<br />revisit the City' cannabis business permit fees in the spring of 2021.
<br />COMMUNITY OUTREACH
<br />In addition to recent public comment received at the August 24, 2020 City Council study session and the
<br />September 15, 2020 Planning Commission Meeting, the City Council requested community input to help
<br />guide the retail cannabis discussion. Staff publicized two workshops and solicited the assistance of the
<br />consultant to facilitate and conduct a presentation. Workshops were held on February 18, 2020 at the
<br />Veterans Memorial Senior Center and March 5, 2020 at the Fair Oaks Community Center (in Spanish). The
<br />goal of the workshops was to gauge the community's interest and concerns associated with allowing
<br />cannabis retail storefront businesses to operate in the City.
<br />Page 9 of 12
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcitV.org
<br />482
<br />6 stores
<br />6 stores
<br />6 stores
<br />6 stores
<br />4% (currently
<br />$960,000
<br />$240,000
<br />$120,000
<br />$1,320,000
<br />established, staff
<br />recommendation)
<br />Alternatives:
<br />5%
<br />$1,200,000
<br />$240,000
<br />$120,000
<br />$1,560,000
<br />6%
<br />$1,440,000
<br />$240,000
<br />$120,000
<br />$1,800,000
<br />For illustration
<br />Purposes -not
<br />recommended
<br />10%
<br />$2,400,000
<br />$240,000
<br />$120,000
<br />$2,760,000
<br />In addition to the revenue that will be generated from the cannabis storefront retailers, the consultant
<br />estimates that the City will also receive approximately $652,500 in revenues from the non -storefront
<br />retailers in excise, sales and transaction taxes. Non -storefront retailers also contribute $10,000 each as
<br />part of the annual renewal fee that is designated for cannabis drug education for children and youth. This
<br />fee will be collected for the first time in 2021 when non -storefront retailers renew their license. City staff
<br />propose to include the same cannabis drug children and youth education prevention fee for storefront
<br />retailers.
<br />FISCAL IMPACT ON CITY RESOURCES
<br />There will be some additional impact to City resources (primarily staff time) to expand the cannabis
<br />program but with the assistance of the consultant this impact can be minimized and costs can be recouped
<br />through the application fee. Permit fees can also cover staff time involved in ongoing monitoring of
<br />business operations. To date the City has spent significant staff resources to bring this City Council
<br />initiative forward. Permit application fees for potential businesses will cost $22,604. City staff plans to
<br />revisit the City' cannabis business permit fees in the spring of 2021.
<br />COMMUNITY OUTREACH
<br />In addition to recent public comment received at the August 24, 2020 City Council study session and the
<br />September 15, 2020 Planning Commission Meeting, the City Council requested community input to help
<br />guide the retail cannabis discussion. Staff publicized two workshops and solicited the assistance of the
<br />consultant to facilitate and conduct a presentation. Workshops were held on February 18, 2020 at the
<br />Veterans Memorial Senior Center and March 5, 2020 at the Fair Oaks Community Center (in Spanish). The
<br />goal of the workshops was to gauge the community's interest and concerns associated with allowing
<br />cannabis retail storefront businesses to operate in the City.
<br />Page 9 of 12
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcitV.org
<br />482
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