Ron Strider
Well-Known Member
In a unanimous vote during a special budget meeting this past Monday, the Patterson City Council moved a step closer to allowing certain types of cannabis-related businesses to operate within the city. The item passed on a 4-0 vote, with council member McCord having been excused from the meeting.
Deputy city attorney Doug White made the presentation, pointing out that the city has held workshops and gotten feedback from the community over the past several months. Seeking a qualified business owner to participate in a pilot program is the next step in the process.
A Request for Qualifications (RFQ), which will allow the city to choose a qualified candidate for a pilot cannabis-related business, is the next step.
Conflicting legislation
State and federal laws regarding cannabis remain in conflict. However, the passage of state Proposition 64 last November, which opens the door for local agencies to gain significant tax revenue, has spurred many local government entities to move toward allowing such businesses. While cannabis businesses in California are now legal from the state's perspective, they are also heavily regulated and taxed, and cities can add additional taxes and fees.
Request for Qualifications (RFQ)
The resolution passed Monday night authorized city staff to release a Request for Qualifications (RFQ), which is essentially a call for those who would like to conduct a cannabis-related business within city limits to submit a business proposal for the city's approval.
No obligation to allow cannabis businesses
White pointed out that cannabis-related businesses remain illegal within city limits, and passage of this authorization to seek RFQs from interested business owners does not obligate the city to allow such businesses.
It does give potential applicants the right to submit an application for the city's consideration, which would provide city staff with an idea of the potential cannabis-related businesses in the area.
"Rather than speculate on what people would like to do and where they would like to do it," White said, "we felt it would be best to... put a face to a proposal and... evaluate the proposal in totality, in terms of licenses they would like to operate with at state level and local level."
Eliminate unqualified businesses
White pointed out that this approach would also eliminate potential business whose owners lack the ability and "sophistication to operate in a highly-regulated environment."
According to the City Council Agenda Report, "applicants must demonstrate knowledge and experience in developing successful businesses. Applicants must include a proposal... addressing the potential adverse impacts of commercial cannabis within... city limits and the applicant's proposal to mitigate any negative effects."
$5,000 application fee
The application fee, which must be paid when the application is submitted, is $5,000.
According to the report, this fee is necessary "to cover city staff time and attorneys' fees associated with reviewing, evaluating and processing the application."
Thirty-day application window
The RFQ will be released this Friday, June 30. Completed applications are due by the close of business on Monday, July 31.
White and his team recently assisted the city of Oakdale in a similar process, which he said had 14 applicants. Due to Patterson's geographic location and industrially-zoned property, White said Patterson is likely to have more than that.
'Pre-conferences' for applicants to be held
Two pre-conferences were held in Oakdale, White noted, with attendance of about 70 people each. White encouraged city staff to also hold two; one in week two of the application period, and the second during the fourth week.
Potential revenue, crime increases
While the potential for significant revenue exists for agencies who allow marijuana businesses in their jurisdictions, there is also serious concern on the part of law enforcement due to the substantial amount of cash such businesses generate. (As marijuana is still classified as an illegal Schedule I narcotic, business owners are prohibited from holding bank accounts to manage their business transactions.)
November ballot
The sense of urgency expressed during the recent workshops remains, as the city could potentially impose a tax on cannabis-related businesses or products, which would need to appear on the ballot this November. If deadlines to facilitate this are not met, the city could either hold a costly special election, or would miss out potential revenue until the next regularly-scheduled election, which would not occur until November, 2018.
Curiously, the new state law requires that cannabis-related businesses be licensed by their local jurisdictions, and up and operating, by December 31, 2017, in order to apply for a state license after January 1, 2018 (which is required in order for a cannabis-related business to operate in the state).
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: City one step closer to allowing cannabis businesses - Golden State Newspapers: Patterson Irrigator News
Author: Jenifer West
Contact: Patterson Irrigator - Contact Us - Golden State Newspapers: Patterson Irrigator
Photo Credit: AP
Website: Golden State Newspapers: Patterson Irrigator
Deputy city attorney Doug White made the presentation, pointing out that the city has held workshops and gotten feedback from the community over the past several months. Seeking a qualified business owner to participate in a pilot program is the next step in the process.
A Request for Qualifications (RFQ), which will allow the city to choose a qualified candidate for a pilot cannabis-related business, is the next step.
Conflicting legislation
State and federal laws regarding cannabis remain in conflict. However, the passage of state Proposition 64 last November, which opens the door for local agencies to gain significant tax revenue, has spurred many local government entities to move toward allowing such businesses. While cannabis businesses in California are now legal from the state's perspective, they are also heavily regulated and taxed, and cities can add additional taxes and fees.
Request for Qualifications (RFQ)
The resolution passed Monday night authorized city staff to release a Request for Qualifications (RFQ), which is essentially a call for those who would like to conduct a cannabis-related business within city limits to submit a business proposal for the city's approval.
No obligation to allow cannabis businesses
White pointed out that cannabis-related businesses remain illegal within city limits, and passage of this authorization to seek RFQs from interested business owners does not obligate the city to allow such businesses.
It does give potential applicants the right to submit an application for the city's consideration, which would provide city staff with an idea of the potential cannabis-related businesses in the area.
"Rather than speculate on what people would like to do and where they would like to do it," White said, "we felt it would be best to... put a face to a proposal and... evaluate the proposal in totality, in terms of licenses they would like to operate with at state level and local level."
Eliminate unqualified businesses
White pointed out that this approach would also eliminate potential business whose owners lack the ability and "sophistication to operate in a highly-regulated environment."
According to the City Council Agenda Report, "applicants must demonstrate knowledge and experience in developing successful businesses. Applicants must include a proposal... addressing the potential adverse impacts of commercial cannabis within... city limits and the applicant's proposal to mitigate any negative effects."
$5,000 application fee
The application fee, which must be paid when the application is submitted, is $5,000.
According to the report, this fee is necessary "to cover city staff time and attorneys' fees associated with reviewing, evaluating and processing the application."
Thirty-day application window
The RFQ will be released this Friday, June 30. Completed applications are due by the close of business on Monday, July 31.
White and his team recently assisted the city of Oakdale in a similar process, which he said had 14 applicants. Due to Patterson's geographic location and industrially-zoned property, White said Patterson is likely to have more than that.
'Pre-conferences' for applicants to be held
Two pre-conferences were held in Oakdale, White noted, with attendance of about 70 people each. White encouraged city staff to also hold two; one in week two of the application period, and the second during the fourth week.
Potential revenue, crime increases
While the potential for significant revenue exists for agencies who allow marijuana businesses in their jurisdictions, there is also serious concern on the part of law enforcement due to the substantial amount of cash such businesses generate. (As marijuana is still classified as an illegal Schedule I narcotic, business owners are prohibited from holding bank accounts to manage their business transactions.)
November ballot
The sense of urgency expressed during the recent workshops remains, as the city could potentially impose a tax on cannabis-related businesses or products, which would need to appear on the ballot this November. If deadlines to facilitate this are not met, the city could either hold a costly special election, or would miss out potential revenue until the next regularly-scheduled election, which would not occur until November, 2018.
Curiously, the new state law requires that cannabis-related businesses be licensed by their local jurisdictions, and up and operating, by December 31, 2017, in order to apply for a state license after January 1, 2018 (which is required in order for a cannabis-related business to operate in the state).
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: City one step closer to allowing cannabis businesses - Golden State Newspapers: Patterson Irrigator News
Author: Jenifer West
Contact: Patterson Irrigator - Contact Us - Golden State Newspapers: Patterson Irrigator
Photo Credit: AP
Website: Golden State Newspapers: Patterson Irrigator
