HomeMy WebLinkAboutPOWERPOINT - 75C - OA NO 2018-02
COMMERCIAL CANNABIS CULTIVATION,
MANUFACTURING, AND DISTRIBUTION
OA NO. 2018-02
75C
1
WHAT WE’VE ACCOMPLISHED
Industry leadership Streamlined review
••
18 operational Non-discretionary
••
retailers
Community Benefits
•
Only LA-OC area
•
city ready to issue
Fair playing field
•
adult-use retail
Code enforcement
•
permits on Jan. 1,
commitment
2018
95% reduction in
•
Testing laboratory
•
illegal dispensaries
licenses under review
2
VERTICAL INTEGRATION
Santa Ana has emerged as an industrial
•
cluster for commercial cannabis
Retail: medicinal and adult-use
•
Laboratory testing to ensure safe, quality products
•
Only LA-OC city ready to offer full vertical
•
integration with all cannabis business types
Attracting creative class, labor pool, suppliers,
•
and other related industrial components
3
LICENSE REQUIREMENTS IN CALIFORNIA
Cultivation
Distribution License
Distribution
Required
License
Required
Distribution
Manufacturing
License
Required
Testing* Required
Retail*
Distribution
License
Required
4
RECOMMENDATIONS -LOCATION
Cultivation, Distribution and
Retail
Manufacturing
Zoning: M-1 & M-2
•
Zoning: M-1 & M-2
•
Sensitive Use Buffer: 1,000
•
Sensitive Use Buffer: 1,000
•
feet
feet
Separation Requirements:
•
Separation Requirements:
•
•Retail –500 feet
None
•Other uses –No separation
Maximum Number: No cap
•
Maximum Number
•
•Retail –30
•Other uses –No cap
5
RECOMMENDATIONS -APPLICATION
Cultivation, Distribution and
Retail
Manufacturing
•
Phase 1: Minimum Requirements
Phase 1: Minimum Requirements
•
•Location
•Required for new locations and new owners
•Not required for existing locations and
•Applicant Background Check
owner
•
Phase 2: Regulatory Safety
Phase 2: Regulatory Safety Permit
•
Permit (RSP)
(RSP)
•Employees Background Checks,
•Required for all
•Existing operators –Live Scan for new
•Building Inspection
employees only
Application filing
•
Phase 1 and 2 Applications
•
•
Retail –filed separately
•May be filed concurrently
Operating agreement and
•
Operating agreement and
•
community benefits plan
community benefits plan
required
required
6
ADDITIONAL USE REQUESTS (CO-LOCATION)
Established Retail Uses –Adding one or more new licenses
•
Existing Location –Submit new RSP for non-retail uses, background check any
•
new employees, then one annual RSP thereafter
Separate Location –New RSP
•
Pending Retail Applicants –Adding one or more new licenses
•
Colocation –Submit separate RSP for non-retail uses, background check any
•
new employees, then one annual RSP thereafter
Separate Location –New RSP
•
New Retail Uses–With one or more new licenses
•
Colocation –Submit separate RSPs for retail and non-retail uses, then one
•
annual RSP thereafter
Separate Location –Distinct RSPs
•
Non-Retail Uses –With one or more new licenses
•
Colocation –Submit single RSP for any/all non-retail uses, then one annual
•
RSP thereafter
Separate Location –Distinct RSPs
•
7
STREAMLINING
Permitting process is streamlined for co-
•
location
Less processing time
•
Reduced long-term costs
•
Ready to meet additional State requirements
•
that will come online July to January
Testing
•
Distribution licenses to move product between
•
business types
8
HOW WE COMPARE
JurisdictionRate
Adelanto
5% or $15 per square foot
Bellflower
5%, increased by 2.5% annually beginning July 1, 2020 until
10% maximum (manufacturing or distribution)
$15 per square foot, up to $25 per square foot (cultivation)
Costa Mesa
6%
Irvine
None; Irvine does not have a businesslicense tax for any
business
Long Beach
6%to 8% for all uses (except cultivation)
$12 to $15 per square foot (cultivation)
Los Angeles (City)
8% to 10%
Oakland
Medicinal -5% or $50 per $1,000 of gross receipts
Adult-use -10% or $100 per $1,000 of gross receipts
San Jacinto
$10per square foot (distribution)
$25 per square foot (cultivation and manufacturing)
15% (retail sales tax)
Santa Ana -Proposed
8% or $10 per square foot fee (cultivation and
manufacturing)
8%or $4 per square foot fee (distribution)
Sonoma (County)
Up to 10%
9
HOW WE COMPARE (CONT.)
Average annual regulatory application fee in
•
CA: $30,000
Range is $2,000 to $61,000 annually
•
Santa Ana’s annual regulatory fee is $12,086
•
for the RSP
Permit fee savings from co-location
•
Streamlined, non-discretionary review
•
10
NEXT STEPS
May 1, 2018 –Second reading
•
June 4, 2018 –Effective date
•
Ready to accept Phase 1 & 2 applications for new
•
facilities
Ready to accept Phase 2 applications to co-locate
•
with existing facilities or pending applications
Late summer 2018
•
New businesses begin opening with required permits
•
11
DISCUSSION
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