Cannabis Regulatory Permit and Associated Fees
City Council Meeting
January 23, 2024
CANNABIS REGULATORY FRAMEWORK
2 • Overlay Zone created in November 2023
Does not authorize cannabis uses, even within identified area Creates the regulatory framework to allow for consideration • Proposed business is required to apply for discretionary action for the location to be rezoned to the S-3 Overlay and for Conditional Use Permit • Maximum of 2 retail cannabis storefronts and 1 distribution business allowed – not required to approve maximum number
• Businesses must go through prequalification process in order to apply – currently underway
• Regulatory Permit also required – item for introduction tonight
CANNABIS REGULATORY PERMIT
3 • Issued by the Police Department
• Permits are valid for up to 2 years – businesses must apply for renewal • Regulations include:
• Identification of disqualifying criminal backgrounds for owners, operators, and employees
• Operating standards for security cameras, alarms, and other building security measures
• Restricts persons on premises to those 18 and over for medical cannabis dispensaries and those 21 or older for non-medical cannabis businesses • Provisions for the suspension of operating permits
• Requirements for record keeping
CANNABIS REGULATORY PERMIT
4 • Permit submittal requirements include:
• Evidence of State licenses for cannabis business operations • Background checks for all owners, operators, and employees • Site plans
• Security plans
• Payment of fees for permit application, inspections, fingerprinting, and background checks
• Businesses required to have periodic inspections by the Police Department
PROPOSED ORDINANCE
5 • Reorganizes the City Code for Regulated Businesses – Includes both Cannabis and Massage Businesses
• Some provisions apply to both business types
• Separate code sections for regulations specific to each business type • No significant changes were made to the massage regulations
PROPOSED CANNABIS PERMIT FEES
6 Fees based on estimates of staff time and expenses:
Proposed Fee Amount
Cannabis Business Permit Processing Fee $2,500
Cannabis Business Annual Inspection Fee $1,500
Background Check Processing Fee $500
CANNABIS PREQUALIFICATION PROCESS UPDATE
7 • Request for submittals released on December 11, 2023 • Proposal due date is January 25, 2024
• Multiple business operators have made inquiries and are undergoing required Background checks
• To date interest has been solely from retail cannabis operators • Proposal “pre-qualification” process will allow most feasible candidates to proceed with extensive process for approvals • Staff will review proposals and make determination
• No more than 2 retail cannabis operators will be invited to apply for entitlements
CANNABIS REGULATORY PROCESS TIMELINE
8 Process to apply for Rezoning, CUP, Regulatory Permit anticipated to take 6 months
Requires a community meeting
Requires Planning Commission public hearing
Requires City Council public hearing and approval
ACTIONS REQUESTED OF THE CITY COUNCIL
9 1) Introduce an Ordinance to amend regulations in the Belmont City Code to allow and regulate commercial cannabis businesses and reorganize massage business regulations
2) Adopt a Resolution making Fiscal Year 2023-24 amendments to the Master Revenue Schedule for cannabis business permitting fees
THANK YOU!
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