Item #11
Date: June 7, 2022
To: Mayor and City Council
From: Christian S. Sachs, Chief of Police
Jim Schaad, City Manager
Subject: Amendment to the Number of Cannabis Businesses Recommendation:
Pass a Motion to approve Resolution No. 2022- XX, amending the number of cannabis businesses, specifically authorizing one (1) Non-Store Front Retail (Delivery) License for Cannabis and amending the manufacturing license options to include Type N (infusion) Manufacturing and removing Type 7 Volatile Manufacturing.
Rationale for Recommendation:
Establishing the quantity of businesses by type in accordance with Marysville Municipal Code will provide the Cannabis Review Committee with direction needed for future issuance of additional cannabis related business licenses. Staff is requesting to amend the resolution as there is interested business opportunities.
Background:
On November 5, 1996, State Proposition 215, or the Compassionate (Marijuana) Use Act was enacted, making the use of Cannabis legal for medicinal purposes. On November 8, 2016, State Proposition 64, to control, regulate, and tax adult use of marijuana, making use of cannabis for adult recreational use legal.
On November 8, 2016, local tax Measure F was passed setting tax rates for various cannabis business types. On November 3, 2020, local tax Measure N was passed setting revised rates for various cannabis businesses. Tax revenue from Cannabis related businesses within Marysville was $978,500in FT2020-21.
On April 3, 2019, City Ordinance 1404 revised Chapter 5.10 of the Marysville Municipal Code and established a maximum number of two Cannabis dispensaries within the City of Marysville (Section
5.10.190) Maximum quantities for other Cannabis business types were not documented in the legislation.
On November 5, 2019, City Ordinance 1419 repealed and replaced the entire content of Ordinance 1404, revising language of the municipal code, stating the number of each type of cannabis business permitted to operate shall be established by resolution. It also gave council discretion to adjust these quantities on an ongoing basis (reference section 5.10.080 of the municipal code).
Item #11
On November 5, 2019, Ordinance 1420 revised Chapter 18.67 of the municipal code, aligning business types of classifications with section 26050 of the California Business and Professions Code. Current municipal code currently lists 16 cannabis business types under section 18.67.030.
On November 2, 2021, Council approved Resolution No 2021-48, establishing the quantities of licenses to be allowed in the City of Marysville.
Discussion & Analysis:
The current municipal code states the number of each type of cannabis business permitted to operate shall be established by resolution of the City Council. There has been significant interest in establishing additional cannabis related business. Of particular interest is a non-store front retail (delivery) license.
The interested business currently has an approved distribution license within the city. Additional cannabis related taxes from additional businesses have a direct, positive effect to the City’s general fund.
Staff is also requesting to amend the manufacturing license options by removing Type 7 Volatile manufacturing and add Type N (infusion) manufacturing.
Staff is recommending allowing one (1) non-store front retail (delivery only) license to the approved structure and amending the manufacturing license options as listed below. (1) Type 1A—Cultivation, specialty indoor, small.
0 total
(2) Type 1B—Cultivation, specialty mixed-light, small.
(3) Type 1C—Cultivation, specialty cottage (indoor only), small. (4) Type 2A—Cultivation, indoor, small.
(5) Type 2B—Cultivation, mixed-light, small.
(6) Type 3A—Cultivation, indoor, medium.
(7) Type 3B—Cultivation, mixed-light, medium.
(8) Type 4—Nursery. 0
(9) Type 5A—Cultivation, indoor, large.
1 total
(10) Type 5B—Cultivation, mixed-light, large.
(11) Type 6—Manufacture 1. (Does not use Volatile Chemicals) 1 total
(12) Type N (Infusion of products)
(13) Type 8—Testing laboratory 1
(14) Type 10—Retailer (only with M-license) Storefront 2 (14) Type 10—Retailer (only with M-license) Delivery Only 1 (15) Type 11—Distributor 1
(16) Type 12—Microbusiness (only with M-license) 0
The approval of this resolution will supersede resolution 2021-48.
Item #11
Alignment with City Council Goal(s):
Goal #2: Expand Economic Development, by being able to add local growth and dollars spent within the City.
Fiscal Impact:
Any additional cannabis related business will generate additional tax revenue that contributes to the General Fund. However, the exact amount is unknown at this time.
Attachment:
1) Resolution 2022-XX