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Orozco, Norma <br /> From: Kenton Wong <kenton@mygreennetwork.com> <br /> Sent: Friday, July 29, 2022 2:58 PM <br /> To: eComment <br /> Subject: RE: July 29, 2022 Special City Council Meeting Agenda Item #1, Municipal Code <br /> Changes Related to Cannabis <br /> Dear City Council and City Staff: <br /> My name is Kenton Wong from KGJMK Opco Inc. dba My Green Network and we are a licensed <br /> cannabis manufacturing and distribution facility in the City of Santa Ana. <br /> As a licensed manufacturer, I am respectfully requesting the following regarding municipal code <br /> changes related to Cannabis. <br /> 1)Bifurcate the Cannabis Tax resolution and set it for city council meeting on August 2, 2022 to <br /> lower cannabis taxes immediately per proposed OCAA recommendations. <br /> 2)Reduce the gross receipts tax on cannabis retail, manufacturing, and distribution businesses as <br /> follows: <br /> Category Current Rate Future Rate <br /> Adult-use Cannabis Retail Business(including Delivery) 8%/$25 sgft. 5%l$12.50 sqft. <br /> Distribution 6%/$4 sgft. 1%/$2 sgft. <br /> Manufacturing 6%/$10 sgft. 1%/$5 sgft. <br /> Cultivation 6%/$10 sgft. 1%/$5 sgft. <br /> These are the two most important issues facing me as a cannabis operator in the City of Santa Ana. <br /> A) The ability to do business with local Santa ana cannabis retail stores by providing the <br /> stores with manufacturing and distribution services. When negotiating with the local stores, <br /> they rejected our business services due to the 6% City of Santa Ana manufacturing and <br /> distribution tax. <br /> B) Additionally, we had distribution opportunities with licensed third parties, but the third <br /> parties decided to engage other distribution companies in Costa Mesa and Long Beach <br /> because of the 1% distribution tax rate in those cities. <br /> Sincerely, <br /> Kenton Wong <br /> Kenton Wong <br /> Chief Communications Officer <br /> i <br />