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File Number: 16-371 <br />Boulevard, within the City’s automotive dealer row, and in close proximity to other prominent <br />retail uses. In 1997, the City established the Marina Boulevard Special Overlay District, which <br />includes additional criteria for evaluating new uses in this area. The Marina location is part of <br />the Regional Retail/Auto Mall area, which provides that new uses should fall into one of the <br />following three categories: regional retail, new auto sales, or other uses that are compatible <br />with regional retail or auto sales uses. The proposed medical cannabis dispensary use does <br />not meet these criteria. <br />Based on the factors detailed above, staff does not see sufficient evidence to support a <br />finding by the City Council that a dispensary at this location “will not impact the peace, order <br />and welfare of the public.” <br />The alternative Doolittle location complies with the setback requirements contained within the <br />ordinance. Under the Zoning Code, the 2,600 square foot facility would be required to provide <br />a minimum of 10 parking spaces. Although the application materials state that the proposed <br />site provides 17 on-site spaces, staff is unable to verify these figures because the application <br />materials do not provide a traditional site plan demarcating where those spaces would be <br />located. This site appears small for the proposed level of activity and the parking appears <br />insufficient to meet the needs of the 17 full-time employees and anticipated 250 customers <br />per day upon start up, which will increase to 22 employees and 765 customers per day by the <br />fourth quarter of Year 3 according to the applicant’s projections. Parking is a concern since <br />there is no on-street parking near the proposed location at the southeast corner of Davis <br />Street and Doolittle Drive. <br />Nevertheless, if the City Council were to issue the dispensary permit to DSWC at the Doolittle <br />location, the Council would retain the authority to impose a condition of approval on the permit <br />stating that the applicants would be required to mitigate any parking issues that might arise, or <br />identify an alternative location that fully complies with the dispensary ordinance. <br />Finances <br />Blum SL and DSWC use different approaches in their financial projection models. <br />Blum SL uses a “bottom-up” approach for its financial modeling, based on current registered <br />Blum Oakland patients who live in San Leandro or nearby communities. Using this approach, <br />Blum SL conservatively expects to begin serving approximately 60 patient visits per day in the <br />first quarter of operations, gradually increasing over the next three years to approximately 300 <br />patient visits per day. According to its pro forma, Blum SL will generate approximately $2.6 <br />million in revenue in its first full year of operation; approximately $5.4 million in Year 2, and <br />approximately $7.3 million in Year 3. <br />DSWC uses a “top-down” approach that projects its patient base assuming the potential <br />patient pool to be 3% of the total population who lives within a 30-minute drive of San <br />Leandro. Further assuming a 50% share of San Leandro’s market, DSWC’s application <br />predicts approximately 250 patients per day on average upon initial start-up during its first <br />quarter of operations, with 15% quarterly growth. This methodology results in DSWC <br />forecasting significantly larger annual revenues than Blum SL. More specifically, according to <br />its pro forma, DSWC forecasts that it will generate approximately $1.27 million in revenue in <br />Year 1 (assuming operations for only the 4th quarter), approximately $6.94 million in year 2, <br />and approximately $11.67 million in Year 3. <br />Page 5 City of San Leandro Printed on 7/13/2016 <br />404