75E-3 - IN-LIEU FEE AGMT COMMERCIAL CANNABIS

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Approve an In -Lieu Fee Agreement template and Merit Criteria draft for Commercial Cannabis November 7, 2017 Page 2 local, qualified Santa Ana residents and to use reasonable efforts to retain the services of qualified, local contractors and suppliers located in Santa Ana. Utilizing in -lieu fee agreements with commercial cannabis businesses is anticipated to result in an increase in General Fund revenue. Estimates currently range from $9.1 million to $20.25 million per fiscal year. The merit -based criteria will be used to evaluate applications for commercial cannabis businesses. Each criteria is designed to promote sustainable community -benefiting practices, including: community safety, youth, education, and recreation; economic development; and community health, livability, engagement, and sustainability. Criteria will also address medical marijuana collectives/cooperatives currently operating in Santa Ana, as well as those on the "selected" or wait lists (Exhibit 2). As such, staff recommends approval of the in -lieu fee agreement and merit -based criteria. The City has identified a preliminary implementation timeline in order to comply with the AUMA and process applications in a timely manner. The timeline is outlined below: • December 2017: Finalize applications and procedures • January 2018: Open registration application period for 30 days and review applications for completeness and eligibility • February: Open Regulatory Safety Permit (RSP) application period for 30 days • March: Review RSP applications and determine eligibility • April: Score RSP applications using merit -based criteria and award permits. City Manager's Office to execute in -lieu fee agreements STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), and Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). FISCAL IMPACT There is no fiscal impact associated with this action. Candida Neal, AICP Acting Executive Director Planning & Building Agency AP: rb S:IRFCA111-07-17-171PBA In Lieu Fee and Merit Catena RFCA Exhibits: 1. In -lieu fee agreement template 2. Merit -based criteria 75E-3-2