Equity Dispensary Ordinance and Resolution
City Council Meeting - May 10, 2022
Equity Dispensary Ordinance & Resolution
Background
Equity Dispensary Ordinance & Resolution
On October 12, 2021, the City Council approved a motion to:
• Prepare an Ordinance allowing up to eight (8) new dispensary licenses (20%) to be issued to verified equity applicants • Focus on a merit-based RFP process to select the eight (8) equity applicants eligible for a dispensary license
• Expand the available “Green Zone” for dispensaries in Long Beach 2 Equity Dispensary
Ordinance
3Equity Dispensary Ordinance & Resolution
Preparation and Outreach
Equity Dispensary Ordinance
Equity Dispensary Ordinance & Resolution
• To prepare the Ordinance and Resolution, City staff:
o researched best practices
o consulted other cities
o held internal discussions with key departments
o performed outreach to equity applicants
• Outreach to equity applicants included an online survey, interactive workshop, and town hall meeting
4 Key Provisions
Equity Dispensary Ordinance
Equity Dispensary Ordinance & Resolution
• Adding up to 8 equity dispensary licenses, bringing the total number of dispensaries in the City of Long Beach (City) to 40 o Equity dispensary licenses will be selected using a Request for Proposals (RFP) process
• Equity dispensaries will be allowed to hold both a medical and adult-use license
• Reduced buffers/expanded Green Zone
o 180-day moratorium on existing dispensaries from moving locations to a newly expanded Green Zone location
5 Equity Dispensary Ordinance
Equity Dispensary Ordinance & Resolution
Existing Buffers New Dispensary Buffers
Schools: 1000ft Schools: 600ft
Day Care Centers: 600ft Day Care Centers: 600ft
Parks: 600ft Parks: 0ft
Libraries: 600ft Libraries: 600ft
Beaches: 1,000ft Beaches: 0ft
Playgrounds: 0ft Playgrounds: 600ft
Community Centers: 0ft Community Centers: 600ft
6 Equity Dispensary
Resolution
7Equity Dispensary Ordinance & Resolution
Intent
Equity Dispensary RFP Guidelines
Equity Dispensary Ordinance & Resolution
Allocate 8 new cannabis dispensary business licenses in a fair and equitable manner and ensure that the best qualified Equity Program participants are selected.
The RFP process will utilize criteria to evaluate the ability for an equity applicant or group of equity applicants in the Equity Program to successfully apply for and operate a retail storefront dispensary.
8 Eligibility
Equity Dispensary RFP Guidelines
Equity Dispensary Ordinance & Resolution
A. Current verified equity applicants
B. Individuals that meet the Equity Program eligibility criteria as of the date the RFP is advertised
• Anyone that is not already a verified equity applicant will need to submit documentation providing proof
that they meet the eligibility requirements for the
Equity Program along with their proposal
9 Proposal Submission
Equity Dispensary RFP Guidelines
Equity Dispensary Ordinance & Resolution
A proposal may be submitted
by one equity applicant or a
group of equity applicants.
No individual may be identified
in any capacity in more than
one proposal.
10 A. Have some level of expertise in economic or
business development;
B. Have an active involvement in social equity
matters; or
C. Are cannabis business regulators from another
jurisdiction.
Panel Review
Equity Dispensary RFP Guidelines
Equity Dispensary Ordinance & Resolution
Members will be selected
by staff from the
Economic Development
Department.
Members may not be in
any way affiliated with
the City of Long Beach.
Members of the voluntary
review panel may consist of individuals
who:
11 Evaluation Criteria
Equity Dispensary RFP Guidelines
Equity Dispensary Ordinance & Resolution
Includes but is not limited to the following:
A. Description of the equity applicant’s background and impact from the War on Drugs.
B. Description of the equity applicant’s experience, training, and education completed to prepare the applicant for operating a successful cannabis business in the City of Long Beach.
C. Business plan that details a plan to achieve success and sustainability. 12 Ownership Requirements
For a period of five years
from the issuance of the
dispensary business license a
minimum of 51% ownership in
the cannabis retail storefront
dispensary must be held by
equity applicant(s).
Certifications
Equity Dispensary RFP Guidelines
Equity Dispensary Ordinance & Resolution
Deadline to Obtain a License
The dispensary business
license must be obtained
within three years from the
date they are notified of their
eligibility to apply for the
business license.
&
13 Prior to opening the RFP process,
there will be a meeting for
stakeholders to learn about the RFP
process and how to submit proposals
as well as ask questions related to
the RFP.
Step 1: Stakeholder Meeting
Equity Dispensary RFP Process
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The RFP submission period will be
open for 30 days on the City’s new
procurement portal, Long Beach
Buys. The RFP will be similar to a
traditional application with
questions and response fields.
Step 2: Submission Period
Equity Dispensary RFP Process
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Staff from the Office of Cannabis
Oversight will confirm and verify if
an applicant meets the Equity
Program eligibility criteria.
Those who do not meet the
eligibility criteria will be disqualified.
Step 3: Eligibility Verification
Equity Dispensary RFP Process
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The RFP Panel will evaluate and
score the proposals using the
evaluation criteria developed by
staff from the Office of Cannabis
Oversight and approved by the City
Manager, City Attorney, Director of
Financial Management, and Director
of Economic Development
Step 4: Proposal Evaluation & Scoring
Equity Dispensary RFP Process
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The 16 proposals with the highest
scores will be awarded the
opportunity to participate in a virtual
interview with the RFP Panel.
The RFP Panel will select the top 8
equity applicants via a forced
ranking process.
Step 5: Panel Interview
Equity Dispensary RFP Process
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Once the top 8 are selected, the
City will post the intent to award at
least ten days before the award is
made.
Applicants who were not selected
are able to submit a protest with the
City’s Purchasing Agent.
Step 6: Selection
Equity Dispensary RFP Process
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After the protest period has
concluded, the 8 equity applicants
are eligible to apply for a cannabis
dispensary business license.
The business will not be required to
have a location identified when
submitting the business license
application.
Step 7: Award
Equity Dispensary RFP Process
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Equity Dispensary RFP Process
Ordinance
Effective
June 2022
Stakeholder
Meeting
July 2022
RFP Open
July 2022
RFP Close
August 2022
Equity
Verification
August 2022
Proposal
Evaluations
September
2022
Panel
Interviews
September
2022
Selections
Complete
October 2022
Submit
Business License
Application
November 2022
Request for Proposals (RFP) Timeline = 4 to 6 months
Business License Process Timeline = 1-3 years from the time of application submission Timeline
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Equity Program
Updates
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1. Be an individual (not an entity); and
2. Family income below 80% of AMI; and
3. Meet the residency requirement for at least 3 years; or
4. Personal cannabis arrest or conviction.
Current Eligibility Criteria
Strengthening the Equity Program
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Current Eligibility Criteria Statistics
Strengthening the Equity Program
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Proposed Eligibility Criteria
Strengthening the Equity Program
Equity Dispensary Ordinance & Resolution
1. Be an individual (not an entity); and
2. Family income below 80% of AMI; and
3. Meet the residency requirement for at least 5 years; and
4. Personal cannabis arrest or conviction; or
5. Immediate family member (sibling, parent, or child) with cannabis arrest or conviction.
25 All Equity Businesses must remain equity owned for a period of at least 5 years.
Timeline to be Equity Owned
Strengthening the Equity Program
Equity Dispensary Ordinance & Resolution
One Member Per Household Policy
Only one individual from each household will be verified as an equity applicant in the Equity Program moving forward.
Assistance will not be provided to multiple equity applicants living within the same household and/or if the equity applicant is filing jointly on their tax returns.
26 Thank you
Emily Armstrong
Cannabis Program Manager
[email protected]
(562) 570-5250
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