Ron Strider
Well-Known Member
The Thousand Oaks City Council has approved a comprehensive process by which the city can select operators for one medical marijuana dispensary and one marijuana testing facility in an industrial part of town.
"This process will identify the businesses that are the most qualified and the best fit for the city," stated a staff report from Thousand Oaks Finance Director John Adams to City Manager Andrew Powers.
The process was approved by the council at its Dec. 12 meeting.
At its Nov. 28 meeting, the council adopted an ordinance allowing the dispensary and testing facility in an industrial-zoned part of town. The testing facility is believed to be the first one planned in Ventura County.
The California Medical Marijuana Regulation and Safety Act, which went into effect Jan. 1, 2016, established state licensing for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery and testing of medical marijuana. But it is up to local jurisdictions to decide whether to allow or ban medical marijuana dispensaries within their borders.
Under Proposition 64, the Adult Use of Marijuana Act that was approved by California voters in the Nov. 6, 2016, general election, all products sold at medical marijuana or recreational marijuana dispensaries must be tested for quality control at a state-licensed laboratory starting next year.
Adams' staff report said that city staff, with the assistance of Los Angeles County-based HdL Companies, a consultant the city has contracted with since January, has developed the thorough application and selection process by which an operator can obtain a commercial cannabis business permit.
According to the report, it's anticipated that applications for potential operators will be available online in mid-January for submission to the city from Feb. 13 to March 8. The council is expected to approve the two applicants in July.
Thousand Oaks Community Development Director Mark Towne said last month there had been "a lot" of interest from potential applicants even before the selection process had been fully developed.
It now is developed and comes in four phases.
Phase one is the determination of eligibility, including a background check, the completeness of the application and the proposed location of the business.
Phase two will be an in-depth review of the application package by HdL Companies. Applicants who score at least 1,200 of 1,500 possible points in phase two will move on to phase three.
Points will be based on the proposed location of the business, a business plan, a neighborhood compatibility plan, a safety and security plan and the qualifications of the principals.
Phase three will consist of the applicant being interviewed by a city selection committee and a site inspection.
The selection committee will be formed by Powers and could include Adams, Towne, Police Chief Tim Hagel and others.
Phase three applicants can score up to 2,500 points based on the location, a business plan, community benefits, enhanced product safety, environmental benefits, labor and employment, how local the applicant is, a neighborhood compatibility plan, qualifications of principals and a safety and security plan.
The phase two and three scores will be combined to establish a new ranking. The top applicants will then move on to phase four.
In that phase, the rankings will be presented to the City Council by the selection committee and the top candidates will attend a council meeting and be available for questions. The council can then select an operator for the dispensary and one for the testing facility.
At the Dec. 12 meeting, the council approved various fees for the application process.
A determination of eligibility will cost an applicant $3,919. An initial ranking will cost an additional $2,973. An interview and inspection will cost $2,473. The fourth, final approval phase will cost $3,142.
The actual business permit will cost $5,308. A permit renewal will cost $6,416.
"You're only paying for the processes that you actually participate in," said Melissa Hurtado, the city's revenue operations manager, who prepared Adams' staff report. "If you're not invited to the next process, you will not pay that fee. You're just charged as you go."
The council also approved paying HdL $55,000 for additional consulting and audit services. The fees the applicants pay will go toward the consultant's contract fees, Hurtado said.
Next year, the council might consider placing on the November ballot a measure that, if approved by voters, would levy a higher business tax rate on cannabis businesses than other businesses in the city pay, according to the staff report.
Under the city's current business tax schedule, a medical marijuana dispensary that annually grosses $2 million to $4 million, would pay the city $790 to $950 a year, a mere fraction of 1 percent, Hurtado said.
Other cities have passed tax measures to implement higher rates on cannabis businesses. The average recommended rate is between 4 percent and 6 percent, according to the staff report.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: T.O. council OKs selection process for commercial marijuana businesses
Author: Mike Harris
Contact: Contact Us | Ventura County Star
Photo Credit: Anne-Marie Weber
Website: Ventura - Home
"This process will identify the businesses that are the most qualified and the best fit for the city," stated a staff report from Thousand Oaks Finance Director John Adams to City Manager Andrew Powers.
The process was approved by the council at its Dec. 12 meeting.
At its Nov. 28 meeting, the council adopted an ordinance allowing the dispensary and testing facility in an industrial-zoned part of town. The testing facility is believed to be the first one planned in Ventura County.
The California Medical Marijuana Regulation and Safety Act, which went into effect Jan. 1, 2016, established state licensing for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery and testing of medical marijuana. But it is up to local jurisdictions to decide whether to allow or ban medical marijuana dispensaries within their borders.
Under Proposition 64, the Adult Use of Marijuana Act that was approved by California voters in the Nov. 6, 2016, general election, all products sold at medical marijuana or recreational marijuana dispensaries must be tested for quality control at a state-licensed laboratory starting next year.
Adams' staff report said that city staff, with the assistance of Los Angeles County-based HdL Companies, a consultant the city has contracted with since January, has developed the thorough application and selection process by which an operator can obtain a commercial cannabis business permit.
According to the report, it's anticipated that applications for potential operators will be available online in mid-January for submission to the city from Feb. 13 to March 8. The council is expected to approve the two applicants in July.
Thousand Oaks Community Development Director Mark Towne said last month there had been "a lot" of interest from potential applicants even before the selection process had been fully developed.
It now is developed and comes in four phases.
Phase one is the determination of eligibility, including a background check, the completeness of the application and the proposed location of the business.
Phase two will be an in-depth review of the application package by HdL Companies. Applicants who score at least 1,200 of 1,500 possible points in phase two will move on to phase three.
Points will be based on the proposed location of the business, a business plan, a neighborhood compatibility plan, a safety and security plan and the qualifications of the principals.
Phase three will consist of the applicant being interviewed by a city selection committee and a site inspection.
The selection committee will be formed by Powers and could include Adams, Towne, Police Chief Tim Hagel and others.
Phase three applicants can score up to 2,500 points based on the location, a business plan, community benefits, enhanced product safety, environmental benefits, labor and employment, how local the applicant is, a neighborhood compatibility plan, qualifications of principals and a safety and security plan.
The phase two and three scores will be combined to establish a new ranking. The top applicants will then move on to phase four.
In that phase, the rankings will be presented to the City Council by the selection committee and the top candidates will attend a council meeting and be available for questions. The council can then select an operator for the dispensary and one for the testing facility.
At the Dec. 12 meeting, the council approved various fees for the application process.
A determination of eligibility will cost an applicant $3,919. An initial ranking will cost an additional $2,973. An interview and inspection will cost $2,473. The fourth, final approval phase will cost $3,142.
The actual business permit will cost $5,308. A permit renewal will cost $6,416.
"You're only paying for the processes that you actually participate in," said Melissa Hurtado, the city's revenue operations manager, who prepared Adams' staff report. "If you're not invited to the next process, you will not pay that fee. You're just charged as you go."
The council also approved paying HdL $55,000 for additional consulting and audit services. The fees the applicants pay will go toward the consultant's contract fees, Hurtado said.
Next year, the council might consider placing on the November ballot a measure that, if approved by voters, would levy a higher business tax rate on cannabis businesses than other businesses in the city pay, according to the staff report.
Under the city's current business tax schedule, a medical marijuana dispensary that annually grosses $2 million to $4 million, would pay the city $790 to $950 a year, a mere fraction of 1 percent, Hurtado said.
Other cities have passed tax measures to implement higher rates on cannabis businesses. The average recommended rate is between 4 percent and 6 percent, according to the staff report.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: T.O. council OKs selection process for commercial marijuana businesses
Author: Mike Harris
Contact: Contact Us | Ventura County Star
Photo Credit: Anne-Marie Weber
Website: Ventura - Home
