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RE: July 29, 2022 <br /> Special City Council Meeting Agenda <br /> Item#1, Municipal Code Changes Related to Cannabis <br /> Dear City Council and City Staff: <br /> My name is Ken Hwang from KGJMK Opco Inc. dba My Green Network and we are a licensed cannabis <br /> manufacturing and distribution facility in the City of Santa Ana. <br /> As a licensed manufacturer, I am respectfully requesting the following regarding municipal code changes <br /> 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% /$12.50 sgft. <br /> Distribution 6%/$4 sgft. 1% /$2 sgft. <br /> Manufacturing 6%/$10 sgft. 1% /$5 sqft. <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 stores <br /> with manufacturing and distribution services. When negotiating with the local stores,they <br /> 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 /> Ken Hwang <br />