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We also envision our consumption lounge to be located in Downtown Santa Ana (DTSA) instead of the industrial zones (M1 or M2). We do not see the need to limit the locations of consumption lounges to such zones, especially when bars and tattoo parlors (not to disparage these businesses) are permitted in DTSA. Santa Ana, known as "A Place for The Arts," is flourishing in the arts when it comes to DTSA, which is home to the DTSA Artwalk, the Orange County Center for Contemporary Art, Grand Central Art Center, and much more, including numerous art galleries. Since the vision of our consumption lounge includes local arts and entertainment, culinary arts, and the promotion of social equity, the only appropriate location for such an endeavor would be the Special Development Zones in DTSA. This would be somewhat in line with comments by City Councilmember Thai Viet Phan at the July 29, 2022 City Council meeting where she supported opening up commercial zones to cannabis retail businesses. Consequently, a potential solution to this problem would be to reduce the buffer to 600 feet and allow cannabis consumption lounges to operate — and add to the arts and culture — in DTSA. 3. Lowering Retail Taxes at Lounges & Special Events Under CANAM section 9 (amending SAMC § 21-133(d)), consumption lounges and temporary consumption/special events would be subject to an eight percent (8%) gross receipts tax rate and a zero -dollar ($0.00) gross square footage tax rate. Adult -use cannabis retail businesses would continue to be subject to an eight percent (8%) gross receipts tax rate and a twenty-five dollar ($25.00) gross square footage tax rate, without any reductions. (Id.) Under CANAM section 6 (amending SAMC § 40-7(l l)(j)), cannabis could only "be smoked within the enclosed portion(s) of a temporary consumption site ... Open-air smoking is prohibited." We also envision our consumption lounge not only as a place to enjoy cannabis and the local arts in all its forms, but as a partner with the City in holding special events. It would be a pleasure to partner with Santa Ana in, say, organizing a "420 event" as envisioned in the comments by City Councilmember Johnathan Hernandez at the July 29, 2022 City Council meeting. However, in order for consumption lounges and special events to be profitable, the gross receipts tax rate would have to be lowered below the proposed eight percent (8%). One reason is because the California cannabis excise tax is extremely high at fifteen percent (15%). In contrast to the high eight percent (8%), according to a Leafly article dated May 24, 20211, both San Francisco and Sacramento "have a 5% local cannabis business tax" and Fresno "actually offers a better local rate (4%) than the progressive metros." A lower retail tax rate would be in line with the comments at the Julty 29, 2022 City Council meeting by City Councilmembers Thai Viet Phan (6-7%), Nelida Mendoza (apparently 1%), Jessie Lopez, Phil Bacerra (5.5-5.75%), Johnathan Hernandez (5-7%), David Penaloza (5-7%), and likely Mayor Vicente Sarmiento. For such special events to be feasible, open-air smoking would also have to be permissible. Consequently, a potential solution to these problems would be to competitively lower the gross receipts tax rate for consumption lounges and temporary consumption/special events and allow open-air smoking and simply require appropriate outdoor air filtration systems. In Sum, we commend you for leading our City with the proposed Cannabis Amendments and opening up these issues for discussion. However, in order for Santa Ana to be "the capital of cannabis in Orange County" (in the words of Councilmember Thai Viet Phan) and "the hub" of 1 l�ll::ls v v lF asp"l;y.c�rl��haF;wsdifi.,, lF /�a;�firornia: weed c� l;<;�x 4