Laserfiche WebLink
File Number: 16-371 <br />“Permittee shall comply with, effect, and further all of the commitments, statements of <br />intent, and promises, including but not limited to its community benefits commitments, <br />contained in its application to operate a medical cannabis dispensary, which are <br />incorporated herein and made a part hereof as an attachment to this resolution.” <br />Additional Considerations <br />At tonight’s Council meeting, the City Council is also considering the placement of a revenue <br />measure on the November 8, 2016 ballot that would ask San Leandro voters to consider a <br />local cannabis business tax of up to 10% of gross receipts. There is also a statewide <br />measure (Proposition 64) that will appear on the November ballot, which could legalize the <br />adult use of cannabis throughout California without the need for a doctor’s recommendation. <br />The approval of this latter measure could have significant impacts upon the industry statewide <br />and in the City because it would open up various opportunities for the expansion of the <br />cannabis industry throughout the state. Additionally, members of both applicant teams <br />currently operate cannabis cultivation, processing and THC extraction facilities in other <br />jurisdictions, which could similarly produce revenue for the City’s General Fund if they were <br />allowed to operate such facilities in San Leandro. <br />Conclusion <br />Both of the applicant teams demonstrate the knowledge, skills, expertise, and access to <br />capital to operate a successful dispensary in San Leandro. In addition, both teams <br />demonstrate a commitment to provide extensive benefits to the San Leandro community. <br />Nevertheless, each application brings its own unique strengths and weaknesses, as outlined <br />above and in the attached documents. <br />Given the rapidly evolving legal and regulatory environment relative to the cannabis industry, <br />coupled with the cannabis industry’s potential to meet medical needs and generate financial <br />benefits for the community, staff recommends that the City Council explore the possibility of <br />allowing additional cannabis dispensaries and/or ancillary cannabis businesses to operate in <br />the City of San Leandro in the future. <br />Fiscal Impacts <br />The City will collect a $60,000 annual dispensary permit fee 30-days after opening. The <br />permit fee is designed to off-set the City’s costs in regulating the dispensary’s operations. <br />The facility will also generate annual sales tax receipts, of which the City will receive 1.5%, as <br />well as voluntary contributions to the City’s General Fund that will vary depending on which <br />applicant team is awarded the permit. <br />ATTACHMENTS <br />·Application Scoring Sheet <br />·Blum San Leandro Application Materials and Overview of Proposal <br />·Davis Street Wellness Center Application Materials <br />·Copy of Request for Applications to Operate the Second Cannabis Dispensary <br />Page 8 City of San Leandro Printed on 7/13/2016 <br />407