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TPOPICAHMA wages,etc.will only serve to confuse the situation,hurt your stakeholders,the employees of stakeholders,and your entire cannabis community. The taxes should be cleanly separated and voted on immediately. Any other considerations can be discussed after the resolution is completed. Most importantly,if Santa Ana continues to delay voting on lowering cannabis tax,emerging markets will gain our customer loss to lower taxes. If taxes were lowered to 5%,we believe we would retain 90%to 95%of our customer base for a loss of 5%to 10%of our customers.This could be offset by potentially acquiring 5%to 10%new customers because of being able to offer lower tax rates to consumers compared to neighboring cities. In the worst-case scenario, 10%of our customers leave and we see 5%of new customers which would equate to a loss of only$2,146,303.10 in gross revenue per year,offset by 5%new customers we would earn$21,463,031 for the year.The City would still receive$1,019,493 while we retain 90%or more of our customers and acquire 5% new customers. In the optimal scenario,a 5%loss of customers with a 10%acquisition of new customers,we would exceed our projections and we could potentially earn$21,463,031 for the year.The City would receive$1,126,809.00 in tax revenue. While we would still lose 5%of our existing base,we have the potential to acquire new loyal customers by beating other cities. If taxes remain the same or anything above 8%for retail,I can guarantee you that we will lose 40%of our customer base to neighboring cities. We hope you take swift action to lower taxes so we can help bring the city tax revenue.Failing to lower taxes to 5% indicates you have decided to not listen to your stake holders,and you do not want to place Santa Ana as a non- competitive cannabis location.If this is the case,I am respectfully asking for an answer so that I can make informed business decisions on how to run my business to survive. Thank you for your attention and expediency on this matter. Sincerely Rouzbeh Vandatpour Owner,Tropicanna SENT VIA EMAIL Vicente Sarmiento Phil Bacerra Thai Viet Phan Mayor Mayor Pro Tern Council Member 22 Civic Center Plaza, Santa 22 Civic Center Plaza, Santa 22 Civic Center Plaza, Santa Ana, Ana, CA 92701 Ana, CA 92701 CA 92701 vsarmientogsanta-ana.org pbacerragsanta-ana.org TPhanksanta-ana.org