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6.D. - Page 2 of 39 ANALYSIS This month, staff will be working on the application process, timeline and outreach to potential cannabis retail businesses that have shown an interest in applying for a permit to operate a cannabis storefront retail location. The ordinances to allow and regulate cannabis storefront retail will go into effect 30 days (December 9, 2020) after the second reading. City staff plans to make materials available following the ordinances going into effect with the application process to start in early January 2021. More information on the ordinances is available in the October 26, 2020 staff report, which can be found here. FISCAL IMPACT There will be some additional impact to City resources (primarily staff time) to expand the cannabis program but with the assistance of the consultant, this impact can be minimized, and costs can be recouped through the application fee. Permit fees can also cover staff time involved in ongoing monitoring of business operations. To date the City has spent significant staff resources to bring this City Council initiative forward. Permit application fees for potential businesses will cost $22,604. City staff plans to revisit the City' cannabis business permit fees in the spring of 2021. ENVIRONMENTAL REVIEW Two CEQA exemptions relate to the proposed ordinance amendments. It can be seen with certainty that the proposed ordinances as it relates to retail cannabis use permitted by right do not have the potential to cause a significant impact on the environment (CEQA Guidelines Section 15061(b)(3)). Retail uses are currently permitted by right in those particular zoning districts. Any potential impacts, including traffic, water, energy or air pollution are substantially similar to what is currently permitted by right. In addition, conditionally allowing retail uses in the Industrial Zoning Districts are statutorily exempt from the requirements of CEQA (Bus. & Prof. Section 26055(h)) because they will require a Conditional Use Permit. This section states that CEQA does not apply to the adoption of an ordinance, rule or regulation by a local jurisdiction that requires discretionary review and approval of other permits or licenses. To qualify for this exemption, environmental review must be performed as part of the discretionary permit. PUBLIC NOTICE Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. Page 2 of 3 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 94