11-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Travis Sais, Deputy City Manager
SUBJECT: Consideration and possible action to consider extending Dynasty Alliance Grow Inc.’s Cannabis Business Permits (“CBPs”) to continue operating cultivation and distribution facilities at 8832 Ramona Street through December 31, 2024.
Date: January 22, 2024
EXECUTIVE SUMMARY
On December 14, 2023, the City Council conducted its annual review of all Bellflower Cannabis Business Permits (“CBPs”) at a Special City Council Meeting. All permittees were required to provide certain certifications and operational information, including any calls for service or code enforcement actions over the permitted period, as well as revenue projections for the next three years.
Dynasty Alliance Grow, Inc. (“permittee”) indicated in its application that there was a law enforcement call for service relating to a burglary that occurred on April 21, 2023 – which resulted in the loss of approximately $250,000 worth of product. At the Special City Council Meeting held on December 14, 2023, inquiries were raised by the City Council regarding the permittee's adherence to the security provisions of the permit. Following discussion, the City Council provisionally extended the two CBPs allowing the permittee to continue to operate cannabis cultivation and distribution facilities at 8832 Ramona Street until January 31, 2024, subject to the submission of a new security plan by the permittee, and directed staff to bring the matter back for further Council consideration at the January 22, 2024, City Council Meeting.
The permittee has since provided documentation outlining the new security features recently added to the facility. The permittee clarified that the previously approved security plan remains unchanged with the addition of new measures as well. The applicant also confirmed that there is continuous on-site security, operating 24 hours a day, seven days a week as required by the conditions of the permit. On January 16, 2024, staff conducted an inspection of the facility and reviewed the additional security features along with the existing security plan to ensure compliance with the permittee's security requirements.
Upon reviewing the information provided and conducting the inspection, staff believe the conditions of the permit are satisfied. The security plan was made available for individual City Council Members to review.
Staff Report – Dynasty Alliance Grow, Inc. - CBP Renewals January 22, 2024
RECOMMENDATION TO CITY COUNCIL
1) Consider extending Dynasty Alliance Grow, Inc.’s CBPs for cultivation and distribution uses at 8832 Ramona Street through December 31, 2024; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
CBP permittees are required to pay the Cannabis Tax; Business License Tax; annual permit administration fee (currently $31,385); and the application review fee for CBP renewals ($6,357). Additionally, permittees are required to provide $5,000 annual contribution toward a drug education fund identified by the City. Dynasty Alliance Grow, Inc. has paid the application review fees, as well as a prorated amount for the one-month provisional renewal. If the CBPs are renewed through December 31, 2024, Dynasty Alliance Grow Inc. will be required to pay renewal fees for the remaining eleven months of the 2024 calendar year ($66,706).