CA: Council Says Local Cannabis Policies Are Ready For Prime Time

Ron Strider

Well-Known Member
From outdoor cultivation to research and dispensaries, the city of Davis is ready to open the door to the cannabis industry now after the City Council approved one last policy at its meeting Tuesday night.

The council voted 4-0 to require businesses to pay $8,300 to $42,300 in fees to recover costs for city staff time spent on business applications.

The council also agreed on the criteria that will determine how up to four cannabis dispensaries will be chosen to receive business permits within the city limits.

The council has devoted nine meetings this year to deliberations on cannabis policies.

The next time the issue comes before the council, however, will be this winter, when it will begin judging which dispensary applicants will receive conditional-use permits.

At least eight cannabis dispensaries have indicated interest in opening shop in Davis, but only one official application has been filed in the first 10 days since the window opened. Applications are due by Oct. 13.

Prospective dispensaries will be judged on their business plan, security plan, parking and location, proximity to customers, and their ability to combat potential nuisance problems and adverse health effects.

From there, staffers plan to put together a "narrative" that describes how closely a dispensary application follows these priorities.

"Our expectation is that any business coming into this space will be making contributions to the community," said Mayor Robb Davis.

Local cannabis businesses will see 10 percent of their gross receipts taxed by the city, and 1 percent of their receipts funneled into a community enhancement fund.

Dispensaries and manufacturing businesses are set to pay the highest fees under the new policy, with fees set at $40,600 and $42,300 annually, respectively. Delivery services and research-and-development businesses will be charged about half that amount, $28,000 and $20,800, respectively.

Cannabis delivery businesses based out of town will pay the lowest fee, at $8,300.

The latest costs mark a shift away from the "one size fits all" model that city staffers originally pitched to the council. This time around, businesses also will have the chance to pay their fees in two installments within the year, per the request of the council.

The fees largely cover the costs of anticipated police and firefighter time spent inspecting and working with the future businesses.

"We're going to have a lot of good applications," said Councilman Will Arnold. "I want folks to know that this is the first pass ... and that we will be revisiting it."

Indeed, the first 18 months of cannabis business operations in Davis are intended at a "pilot program," with the option to cut back or expand the number of dispensaries allowed in town.

DWR fate up in the air

As the owners of Davis Waste Removal hope to retire and sell their business to Recology Inc. – a company that operates across entire West Coast – the city of Davis is pressing pause on the transaction.

This brief pause allows the city time to consider its options, as a segment of the contract with DWR gives the city first right of refusal on DWR's assets if the company chooses to sell. The city has until Oct. 18 to make a decision and identify funds.

While DWR has formally requested that the city waive this right, local residents asked the council purchase the property while it still can.

"Public ownership of the facility gives the city ultimate control over who operates its waste management system now and always," said William Schoen, a resident and an engineer who works in the waste industry. " ... They effectively have a lock on the system."

Under the current contract with DWR, the city has the option to trigger a section of the contract that would allow Davis to purchase all or part of DWR's property. This ranges from the property at 2727 Second St., to the business itself and the accompanying buildings and vehicle fleet.

The council met in closed session to discuss the business transaction, and declined to weigh in on the subject at the public hearing on Tuesday night.

The final decision on DWR's property is set to be made public at its Oct. 17 meeting.

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News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Council says local cannabis policies are ready for prime time
Author: Felicia Alvarez
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Photo Credit: David Downs
Website: Davis Enterprise | Yolo County, California
 
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