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File Number: 16-231 <br />number of items to go on the ballot, she would like to assure that the verbiage and Council's <br />directions are clear. <br />Councilmember Lee is interested in final language. <br />Mayor Cutter asked if we are trying to differentiate between nonprofit cannabis and for-profit <br />cannabis. <br />City Attorney Pio Roda stated not at this time. State law does allow for "for profit" <br />dispensaries however the City is still analyzing whether to change the current ordinance to <br />eliminate the non-profit designation, or to keep non-profit only and see what the advantages <br />vs. disadvantages are. A lot of other jurisdictions are allowing for "for profit" to comply with <br />new state law. <br />Deputy City Manager Engelbart stated the proposed ordinance is crafted for a cannabis <br />business in general and therefore it will pertain to medical cannabis and potentially <br />recreational marijuana if it were to be legalized in November and subsequently permitted by <br />the City Council. <br />Mayor Cutter asked if there is a thought to tax recreational marijuana at a higher rate and <br />would the ballot measure, as written, limit us to this rate and would the City have to go back to <br />voters. <br />Deputy City Manager Engelbart stated only if the City wanted to charge higher than 10% [the <br />rate currently being considered for the Cannabis Tax]. The draft measure permits a tax up to <br />10%. <br />City Attorney Pio Roda stated that currently we have required Harborside to provide a <br />community benefits plan to contribute directly to certain non-profit business as well as back to <br />the City, a percentage of their net income. There is a clause in their agreement with the City if <br />a cannabis tax were passed, those conditions would be eliminated. Harborside would pay the <br />tax and the City would have full discretion on how to use the gross receipts tax revenue. Both <br />aspects are covered so that if the tax did not pass, Harborside would continue to contribute to <br />the community benefits plan. <br />Mayor Cutter asked why the Cannabis Tax and Business License tax are combined in the <br />same tax measure and can it be divided. <br />City Manager Zapata stated the more tax measures may diminish the likelihood of them <br />passing but it can be separated if that is the desire of the Committee. <br />Councilmember Prola also believes it should be separated and does not feel the City would <br />receive a 2/3 vote but the poll will guide us in making the best decision. <br />Mayor Cutter asked if certain questions can be added to the poll that would help us determine <br />if we should separate and/or give an idea on what taxes may pass. <br />Deputy City Manager Engelbart indicated that Godbe will look at each question and will make <br />recommendations on what questions should be asked. <br />City of San Leandro Page 3 Printed on 5110/2016 <br />