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Correspondence-#25
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09/20/2022 Special and Regular
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Correspondence-#25
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the five (5) new retail locations under the proposed ordinance... [T]hose waitlisted... would <br />receive `bonus' points for having been on the Measure BB Waitlist." (p. 9., emphasis added.) <br />The first problem facing us is the thirty-five (35) RSP cap on commercial cannabis retail <br />businesses. Since the additional five (5) retail RSPB are practically allotted to the five (5) people <br />on the Measure BB Waitlist, we would not even be able to obtain a retail RSP and bring our <br />novel ideas for our consumption lounge to the City. This would be unfortunate given that we are <br />homegrown — both as individuals and as an entity — and would create a grassroots consumption <br />lounge that promotes social equity if given the availability of a retail RSP. One proposed <br />solution to this problem would be to increase the number of additional retail RSPB above five (5) <br />so that we could realistically obtain a retail license. This would be in line with comments by <br />Councilmembers Johnathan Hernandez and Jessie Lopez at the July 29, 2022 City Council <br />meeting where they supported adding more than five (5) retail RSPB so that Santa Ana residents <br />can get involved in spearheading the cannabis industry. Another proposed, albeit less effective, <br />solution would be to grant "bonus" points to longtime residents of the City applying for a retail <br />RSP. Furthermore, however, this problem could be eliminated if the problem and proposed <br />solution in the following paragraph were instead tackled in the Cannabis Amendments. <br />We envision our cannabis consumption lounge as a stand-alone lounge without an <br />ancillary cannabis retail business, i.e., a dispensary. We see no need to tie the two types of <br />business models together. Indeed, it is our view that cannabis consumption lounges would <br />realistically thrive (unlike many in other cities) and thus bring in more tax revenue if <br />consumption lounges were not required to be tied to a dispensary. By creating a separate <br />category of permits for consumption lounges we would be able to enact our novel, homegrown <br />and grassroots ideas that are in line with the City's vision. Similarly, we see no need to limit the <br />smoking of cannabis to the indoor portion(s) of a lounge. We could not even find the rationale <br />for such a limitation when outdoor air filtration systems are readily available. Such restrictions <br />would result in patrons not being able to enjoy cannabis in our outdoor portion(s) while enjoying <br />our culinary arts. This would be in line with comments by Mayor Pro Tem Phil Bacerra at the <br />July 29, 2022 City Council meeting where he supported outdoor cannabis -smoking on lounge <br />rooftops. Consequently, a potential solution to these problems would be to (1) create a distinct <br />category of permits for consumption lounges separate from retail storefronts; and (2) eliminate <br />the indoor cannabis -smoking limitation and simply require appropriate air filtration systems. <br />2. Expanding Commercial Cannabis Business Zoning <br />Under CANAM section 6 (amending SAMC § 40-5), cannabis consumption lounges <br />would be permitted in Zoning Districts M1 and M2, "as [i]ndicated on the Commercial Cannabis <br />Eligible Areas Map...." M1 districts are designated light industrial (SAMC § 41-471) and M2 <br />districts are designated heavy industrial (SAMC § 41-489). Under one of the two proposed 2022 <br />resolutions at issue, the buffer between "commercial cannabis business activity" and "schools, <br />parks, and properties zoned for residential uses" would be reduced from "the 1,000-foot buffer to <br />600 feet...." (§§ 1(G), 1(I).) Furthermore, according to the Staff Report, "[i]n 2021, the State <br />revised its regulations to completely eliminate the default 600-foot buffer." (p. 10.) <br />
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