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<br />3089 Teagarden Street <br />San Leandro, CA 94577 <br /> <br /> <br />April 30, 2025 <br /> <br /> <br />VIA EMAIL to eengelbart@sanleandro.org <br /> <br />San Leandro City Manager’s Office <br />835 East 14th Street <br />San Leandro, CA 94577 <br /> <br />RE: Expansion of NUG Wellness’ Operations <br /> <br /> <br />Dear San Leandro City Manager: <br /> <br />I would first like to thank you for the opportunity to conduct business in San Leandro. NUG is <br />fortunate to have such a supportive city. San Leandro has been a great partner in taking a <br />business-friendly approach to regulating its cannabis businesses. <br /> <br />A Good Civic Partner <br /> <br />While much of the California cannabis market is in disarray, NUG has been able to thrive. We <br />currently service over one thousand loyal customers daily from across the East Bay Area at our <br />San Leandro store. These sales have generated significant revenue and community benefits for <br />California and the City of San Leandro (see table below). To-date, NUG has contributed over <br />$5.5M to the San Leandro community in sales tax*, local gross receipts tax, local license fees, <br />and local community benefit contributions. <br /> <br /> <br /> <br />* Total sales tax rate is 10.75% which includes 7.25% ($6.6M est.) to CA, 3.0% ($2.7M est.) to Alameda County and <br />0.5% ($0.5M est.) to San Leandro (source: CDTFA-105 REV. 36 (4-25)). <br />Docusign Envelope ID: DB4F77C5-B1DB-4F04-B30D-261E728806F6