Katelyn Baker
Well-Known Member
Pendleton is open for marijuana businesses. But it will be a while before any marijuana businesses actually open in town.
The city council Tuesday night approved provisions to regulate the sale of marijuana on a 6-2 vote, with councilors Paul Chalmers and Tom Young opposing. Two issues drew the most discussion before the vote: city licensing fees for pot businesses and background checks.
Small businesses in Pendleton pay $100 a year for a city license. But the city will charge recreational marijuana business owners $1,550 for the initial business license application and a $950 renewal fee. Non-retail pot business, such as grow operations, have to pay $1,000 for the license and $500 to renew. And the license for medical marijuana business costs $600 with a renewal fee of $300.
City attorney Nancy Kerns told the council the higher fees were so the city could recoup what the Oregon Department of Revenue will charge the city to collect taxes.
Brandon Krenzler during the public hearing portion told the council he was "95 percent" in favor of the city's proposal. He and potential business partner Brad Olson, owner of Cadillac Jack's Saloon & Grill, Pendleton, plan to open a recreational marijuana shop at 1733 S.W. Court Ave. Krenzler suggested the city "dramatically" increase its fees for marijuana businesses while being more specific in the criteria that could disqualify someone from having a license.
Kerns in response said she drafted the language to allow for "local discretion" when it comes to background checks rather than list all the crimes that would signal red flags.
"I think it needs to be short and require the application of a little subjectivity," she said.
Pendleton resident Erin Purchase added the city should only conduct background checks of the business owners and not every employee, which the provision calls for. Employees come and go, she said, and the constant checks would burden the city and businesses.
"That seems like a waste of resources," she said.
Chalmers also challenged the notion of so many background checks
"I don't think it's the city's responsibility to validate employees," he said. "I think we're dabbling in an area that I don't think we need to be dabbling in."
Councilor Chuck Wood said he was on board with the checks, which Pendleton police chief Stuart Roberts considers a good idea.
"These guys are going to pay $4,600 for a license to the state and another $1,500 to us," Wood said. "... I think they're going to want to do it right."
Young said marijuana remains illegal under federal law, so he would vote no.
"You have not given me a new oath that Oregon trumps federal law," he said.
Some councilors emphasized reviewing the law in a year, and Wood encouraged the council to look at the state's system of fees to fit different types and sizes of businesses.
And the council also voted 8-0 for the agreement to allow the state revenue department to collect marijuana sales tax. The state will collect its own taxes and the city's, Kerns said, and charge 4 percent of the city's 3 percent local tax.
"We're going to make a lot of money on this deal," councilor Becky Marks quipped.
Young, though, said he had no problem passing this because "the state is the one getting its hands dirty."
Kerns after the meeting said while the city now can accommodate a marijuana business, operators first need a license from the state and a conditional use permit from the city planning commission. The city has a couple of those applications in the hopper, she said.
Mayor Phillip Houk after the meeting said while he disagreed with using marijuana, the citizens spoke and the council listened.
"We're trying to put together the process so it works, and works in a safe manner," Houk said.
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The council unanimously voted for changes to the city's nuisance law. The city no longer has to use certified mail to send nuisance notices to property owners. And the penalty for a chronic nuisance property jumped from $100 per day to $500.
Kerns said she has worked for the city for 10 years and is not aware of the city using the law. She said she tried once and traded the fine for a conviction in circuit court.
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The meeting was the last for out-going councilors Wood and Young and for most purposes for Houk, who served on the council for 23 years. While he will have to open the council's first meeting of 2017, he then turns over the gavel to Mayor-elect John Turner.
He expressed confidence in the council, gave one more plug for Pendleton as a great city to live in, and turned to look at his wife, Kathy Houk, sitting in the small audience. The mayor choked up and said she was by him through his whole political career.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Pendleton City Council Gives OK To Pot Businesses
Author: Phil Wright
Contact: 1-800-522-0255
Photo Credit: David McNew
Website: East Oregonian
The city council Tuesday night approved provisions to regulate the sale of marijuana on a 6-2 vote, with councilors Paul Chalmers and Tom Young opposing. Two issues drew the most discussion before the vote: city licensing fees for pot businesses and background checks.
Small businesses in Pendleton pay $100 a year for a city license. But the city will charge recreational marijuana business owners $1,550 for the initial business license application and a $950 renewal fee. Non-retail pot business, such as grow operations, have to pay $1,000 for the license and $500 to renew. And the license for medical marijuana business costs $600 with a renewal fee of $300.
City attorney Nancy Kerns told the council the higher fees were so the city could recoup what the Oregon Department of Revenue will charge the city to collect taxes.
Brandon Krenzler during the public hearing portion told the council he was "95 percent" in favor of the city's proposal. He and potential business partner Brad Olson, owner of Cadillac Jack's Saloon & Grill, Pendleton, plan to open a recreational marijuana shop at 1733 S.W. Court Ave. Krenzler suggested the city "dramatically" increase its fees for marijuana businesses while being more specific in the criteria that could disqualify someone from having a license.
Kerns in response said she drafted the language to allow for "local discretion" when it comes to background checks rather than list all the crimes that would signal red flags.
"I think it needs to be short and require the application of a little subjectivity," she said.
Pendleton resident Erin Purchase added the city should only conduct background checks of the business owners and not every employee, which the provision calls for. Employees come and go, she said, and the constant checks would burden the city and businesses.
"That seems like a waste of resources," she said.
Chalmers also challenged the notion of so many background checks
"I don't think it's the city's responsibility to validate employees," he said. "I think we're dabbling in an area that I don't think we need to be dabbling in."
Councilor Chuck Wood said he was on board with the checks, which Pendleton police chief Stuart Roberts considers a good idea.
"These guys are going to pay $4,600 for a license to the state and another $1,500 to us," Wood said. "... I think they're going to want to do it right."
Young said marijuana remains illegal under federal law, so he would vote no.
"You have not given me a new oath that Oregon trumps federal law," he said.
Some councilors emphasized reviewing the law in a year, and Wood encouraged the council to look at the state's system of fees to fit different types and sizes of businesses.
And the council also voted 8-0 for the agreement to allow the state revenue department to collect marijuana sales tax. The state will collect its own taxes and the city's, Kerns said, and charge 4 percent of the city's 3 percent local tax.
"We're going to make a lot of money on this deal," councilor Becky Marks quipped.
Young, though, said he had no problem passing this because "the state is the one getting its hands dirty."
Kerns after the meeting said while the city now can accommodate a marijuana business, operators first need a license from the state and a conditional use permit from the city planning commission. The city has a couple of those applications in the hopper, she said.
Mayor Phillip Houk after the meeting said while he disagreed with using marijuana, the citizens spoke and the council listened.
"We're trying to put together the process so it works, and works in a safe manner," Houk said.
-
The council unanimously voted for changes to the city's nuisance law. The city no longer has to use certified mail to send nuisance notices to property owners. And the penalty for a chronic nuisance property jumped from $100 per day to $500.
Kerns said she has worked for the city for 10 years and is not aware of the city using the law. She said she tried once and traded the fine for a conviction in circuit court.
-
The meeting was the last for out-going councilors Wood and Young and for most purposes for Houk, who served on the council for 23 years. While he will have to open the council's first meeting of 2017, he then turns over the gavel to Mayor-elect John Turner.
He expressed confidence in the council, gave one more plug for Pendleton as a great city to live in, and turned to look at his wife, Kathy Houk, sitting in the small audience. The mayor choked up and said she was by him through his whole political career.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Pendleton City Council Gives OK To Pot Businesses
Author: Phil Wright
Contact: 1-800-522-0255
Photo Credit: David McNew
Website: East Oregonian
