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File Number: 16-371 Community Benefits As part of its community benefits program, Blum SL offers to self-impose a five percent (5.0%) gross receipts fee that it will voluntarily provide to the City’s General Fund. Blum SL further states that if and when San Leandro voters adopt a cannabis business tax, that it will fully comply with the tax in lieu of the voluntary gross receipts percentage contribution. Blum SL also offers to create a community grants program that will “provide grants to programs and institutions in which the City of San Leandro has already invested.” Blum SL identifies seven program areas it plans to fund via grants in its first five years of operations. Each individual award will not exceed $25,000 so that Blum SL may “impact as many program areas as possible”. Blum SL also anticipates that grant amounts will increase in the second and subsequent years. As part of its proposal, Blum SL also offers to provide financial support for re-entry and jobs training programs, domestic violence prevention programs, youth development, local community revitalization efforts, substance abuse education, foreclosure prevention, housing rehabilitation, and support for the San Leandro Homeless Compact. Blum SL also offers to subsidize the cost of medical cannabis to qualified low-income patients. DSWC offers to provide a voluntary contribution of 9% of its gross receipts to the City’s General Fund. DSWC further states that if and when San Leandro voters adopt a cannabis business tax, that it will comply with the tax in lieu of the voluntary gross receipts percentage contribution. DSWC also offers to create a community benefits package consisting of several primary elements, which are further augmented through its proposed partnership with the Davis Street Family Resource Center (“DSFRC”). More specifically, DSWC offers to provide a contribution to the DSFRC for its basic needs program that will provide families and seniors with emergency food, clothing and other resources. DSWC estimates approximately $115,000 will be contributed annually as part of this effort, which will “free up funds that can help grow the Bill McCammon Community Health Center Homeless Medical Clinic”. The application materials also highlight various other DSFRC programs that will benefit financially from DSWC, including: community counseling, substance abuse prevention, as well as an annual community dialogue on medical cannabis. DSWC also offers a sliding fee scale to low-income patients and it offers to ask DSFRC to recommend additional benefits partners through an annual vetting process that will donate up to 5% of revenues. During its first year of operations, DSWC commits to providing the following one-time contributions to the City of San Leandro: $50,000 towards the Cherry Festival, $50,000 towards planning and business development, and $50,000 for use by the Arts Commission. These contributions would decrease to $10,000 annually in future years. Future Tax Discussion It is important to note that the City’s first dispensary permit that was awarded to Harborside San Leandro (HSL) contained a provision that HSL’s community benefits commitments would be nullified if San Leandro voters approved a measure to impose a medical cannabis business tax. A similar condition of approval is incorporated into the attached resolution. The permit awarded to HSL also contains a provision that if the City were “to award more than one medical cannabis dispensary permit, all subsequent medical cannabis dispensary permits awarded or approved by the City shall include no less than that which is required or conditioned by this resolution.” Given that both teams offered robust community benefits packages that meet or exceed the community benefits package offered by HSL, this condition is addressed through the following condition of approval that is included in the attached draft resolution: Page 7 City of San Leandro Printed on 7/13/2016 406