View Report And Attachment A — Community & Economic Development Committee, March 28, 2023

Community & Economic Development Committee
March 28, 2023

AGENDA REPORT
TO: Steven Falk FROM: Sofia Navarro
Interim City Administrator Interim Director,
Department of Economic
and Workforce
Development
SUBJECT: Governor’s Office of Business and
Economic Development and Local
Jurisdiction Assistance Grants for
Cannabis Program
DATE: March 8, 2023
City Administrator Approval Date:

RECOMMENDATION
Staff Recommends That The City Council Adopt The Following Pieces Of Legislation:

Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 2
Community Economic Development Committee
March 28, 2023
And Fifty Thousand Dollars ($250,000) Per Grant, By Authorizing The City Administrator To:
(1) Reallocate Any Available Local Jurisdiction Assistance Grant Program Funds In the Form Of Grants For The Purpose Of Bringing The Business Facilities Of Provisionally Licensed Cannabis Applicants Into Compliance With Building, Fire, And Health Code Requirements; And
(2) Award Said Grants In An Amount Not To Exceed Two -Hundred And Fifty Thousand Dollars ($250,000) Per Grant To Provisionally Licensed Cannabis Applicants To Be Determined And Without Return to Council In A Cumulative Amount Not To Exceed Four Million Five-Hundred Thousand Dollars ($4,500,000)

EXECUTIVE SUMMARY
The City Council established the nation’s first Cannabis Equity Program (Equity Program) in the spring of 2017 following a race and equity analysis that identified strategies to promote equitable ownership and employment opportunities in the cannabis industry to address the disproportionate impacts of the war on drugs in marginalized communities of color. This City of Oakland (City) action led to the creation of California’s Cannabis Equity Grants Program for Local Jurisdictions administered by the Governor’s Office of Business and Economic Development (Go-Biz) that has made funding available on an annual basis for local jurisdictions with cannabis equity programs. On February 9, 2023, Go-Biz awarded the City $1,996,487.50, the largest share of the $15 million available statewide this funding cycle, to support the City’s Equity Program over the next year.1
Although the latest Go-Biz grant is not as large as prior years, this funding offers an opportunity to continue building upon the foundation the City has established for its Equity Program.

Specifically, Go-Biz funds will provide equity applicants with capital via grants and no-interest revolving loans to support their businesses’ start-up and ongoing costs as well as a portion of the costs of administering the Equity Program.

In addition to accepting and appropriating the latest Go-Biz grant, staff recommends re- allocating unspent Local Jurisdiction Assistance Grant funds received from the Department of Cannabis Control in 2022 towards cannabis operators with a provisional state license to assist them in bringing their facilities into compliance with building, fire and health code requirements.

This re-structuring will ensure funds are utilized and that provisionally licensed operators have the capital needed to obtain a state annual license, thus fulfilling the intent of the Local Jurisdiction Assistance Grant.
1 For a full list of Fiscal Year 2022-2023 Go-Biz Grant Recipients please visit here:
https://business.ca.gov/wp-content/uploads/2023/02/CEG-Program-Grant-Recipients-2022-23.pdf Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 3
Community Economic Development Committee
March 28, 2023

BACKGROUND / LEGISLATIVE HISTORY

Federal Cannabis Policy

Cannabis remains a Schedule One controlled substance under federal law, however, since the 2013 Department of Justice “Cole Memorandum”2 and the 2015 Fahr-Rohrbacher federal budget amendment,3 state compliant medical cannabis facilities have generally been shielded from federal prosecution. The Trump Administration threatened to interrupt this status quo by rescinding the Cole Memorandum. Nonetheless, Congress has consistently extended the Fahr- Rohrbacher amendment and the federal government has not prioritized cannabis prosecutions.

Additionally, in October 2022 President Biden directed the Secretary of Health and Human services and the Attorney General to initiate the process to review how cannabis is scheduled under federal law.

California Statewide Cannabis Regulation

Although medical cannabis has been legal in California longer than anywhere in the country, until the passage of the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015, California’s system of medical cannabis was one of the least structured regulatory frameworks in the United States. MCRSA created a comprehensive regulatory framework for the cultivation, production, transportation and sale of medical cannabis in California, all overseen by a new state bureau. In November 2016, the people of California enacted the Adult-Use of Marijuana Act (AUMA) or Proposition 64, which among other actions, established a licensing and taxation scheme for the non-medical adult-use of cannabis in California. Then in June 2017, the state legislature consolidated the MCRSA and AUMA into the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). State agencies have been implementing MAUCRSA ever since, including through the issuance of multiple sets of regulations governing cannabis operations.

Oakland’s Cannabis Regulatory History

The City has been a leader in regulating cannabis. In 2004, following the federal closure of the Oakland Cannabis Buyers Club, the City’s initial medical cannabis provider under Oakland Municipal Code (OMC) 8.46, the City enacted OMC 5.80, which established the nation’s first permitting process for medical cannabis dispensaries. In 2011 the City expanded the number of available dispensary permits from four to eight and attempted to establish a permitting process for the cultivation of medical cannabis under OMC 5.81, however, threats of federal intervention and the lack of comprehensive state law prevented implementation of OMC 5.81.

2 The Cole Memorandum can be found here:
https://www.justice.gov/iso/opa/resources/3052013829132756857467.pdf 3 The Fahr-Rohrbacher amendment states: “None of the funds made available in this Act to the Department of Justice may be used, with respect to the States of… California…to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.

Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 4
Community Economic Development Committee
March 28, 2023

Oakland Examines Equity Within Cannabis Industry

In anticipation of state legalization of the cannabis industry’s supply chain and the adult use of cannabis, in 2015 and 2016, the City began exploring approaches to legalizing the cannabis industry within Oakland. Discussions at the City Council centered around one question: Who benefits from cannabis legalization?

This inquiry led the City Council in the fall of 2016 to adopt the goal of promoting equitable ownership and employment opportunities in the cannabis industry to address the disproportionate impacts of the war on drugs in marginalized communities of color and to direct the City Administration to conduct a race and equity analysis of proposed medical cannabis regulations.

In March 2017, staff returned with a race and equity analysis4 that identified barriers to achieving a more equitable cannabis industry and strategies to remove those barriers. For example, the analysis found disparities within the cannabis industry in access to capital and real estate as well as disparities in operators’ familiarity with the “red tape” involved in governmental processes and operating a compliant cannabis business. In response, the analysis recommended the creation of several measures to prioritize lower-income Oakland residents that either had a cannabis conviction arising out of Oakland or had lived in areas of Oakland that experienced disproportionately higher levels of cannabis enforcement.5 Strategies identified to prioritize equity applicants included:

• Free industry-specific and business ownership technical assistance; • A no-interest revolving loan program funded by new cannabis tax revenue; • A phased permitting process whereby the City Administrator must issue half of all permits under OMC 5.80 and 5.81 to equity applicants during the initial phase; • An incubator program that prioritizes general applicants who provide three years of free space and security to equity applicants; and
• Application and permit fee exemptions for equity applicants.

In the Spring of 2017, the City Council passed a legislative package (Ordinance No. 13424 C.M.S. and Resolution No. 86633 C.M.S.) enacting these recommendations and the City Administrator’s Office began accepting applications for non-dispensary permits in May of 2017.

Growth of a Larger Movement and State Grant Awards for Equity Program

Oakland’s pioneering race and equity analysis of the cannabis industry and creation of an Equity Program inspired jurisdictions across the country to pursue and support similar

4 https://cao-94612.s3.amazonaws.com/documents/Equity-Analysis-and-Proposed-Medical-Cannabis- Amendments.pdf
5 OMC 5.80.010 and OMC 5.81.020 define an “Equity Applicant” as “an Applicant whose ownership/owner: 1. Is an Oakland resident; and 2. In the last year, had an annual income at or less than 80 percent of Oakland Average Medium Income (AMI) adjusted for household size; and 3. Either (i) has lived in any combination of Oakland police beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X, and 35X for at least ten of the last twenty years or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland, California.” Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 5
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programs. Then starting in 2019 the State of California has set aside annual grant funding to support local jurisdictions’ cannabis equity programs. Table 1 outlines the amount of funding the City has received from the State of California, Oakland’s ranking among local jurisdictions each year, and the total amount of funding set aside by the State of California that year.

Table 1: Oakland’s Receipt of Local Equity Grant Funding

State Funding
Agency

Fiscal Year
(FY)

Amount of
Funding
Received
Oakland's
Ranking
Among Local
Jurisdictions
Total Amount
of Funding
Available
Statewide
BCC6 FY 2019-2020 $1,657,201.65 2nd $10 million
Go-Biz FY 2019-2020 $6,576,705.76 1st $30 million
Go-Biz FY 2020-2021 $2,434,712.51 1st $15 million
Go-Biz FY 2021-2022 $5,435,140.82 2nd $35 million
Go-Biz FY 2022-2023 $1,996,487.50 1st $15 million

Challenges with Local Cannabis Permitting Process

Oakland’s cannabis permitting process requires operators to obtain approvals from different City and County agencies to ensure the businesses locate in an appropriate zone and operate safely. The largest obstacle facing cannabis applicants within the City’s permitting processes is compliance with building and fire permitting requirements, particularly for cultivators and manufacturers upgrading buildings without fire sprinkler systems and in need of electrical system upgrades. These obstacles require applicants to hire architects, engineers, and licensed contractors, all while waiting for heavily burdened City engineers and inspectors to review their plans and inspect their facilities, respectively.

ANALYSIS AND POLICY ALTERNATIVES

Approval of the requested action advances the Citywide priority of housing, economic, and cultural security by promoting business ownership opportunities for historically marginalized entrepreneurs.

Challenges Facing Equity Applicants

As noted in prior reports, the Equity Program does not exist in a vacuum. Equity applicants face many of the same challenges that confront entrepreneurs seeking to establish any business, such as securing sufficient capital, bringing a facility into compliance with building and fire codes, legal issues, scaling a business, as well as securing sales. Further, equity applicants encounter many of the same challenges that cannabis businesses face operating in the infancy of cannabis legalization, such as market uncertainty, regulatory compliance, inadequate access

6 Initially the Bureau of Cannabis Control, the predecessor to the Department of Cannabis Control, dispersed Local Equity Grant funding.

Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 6
Community Economic Development Committee
March 28, 2023

to banking, and security concerns. While the challenges faced by equity applicants may not be unique, these challenges likely have a disproportionate impact on equity applicants due to a web of past and present policies and actions of institutions that have resulted in disparities in business ownership and access to venture capital. For an overview of current challenges facing equity applicants, please see Attachment A, 2023 Cannabis Equity Program Survey.

Strategies for Utilizing Go-Biz Funds

The Go-Biz grant offers an opportunity to address the number one challenge confronting equity applicants, access to capital. Table 2 offers a summary of the proposed uses of Go-Biz funds and the level of funding proposed for each use.

Table 2: Proposed Use of 2023-2024 Go-Biz Grant Funds

Proposed Use
Amount of
Funds
A. Grants/Loans to Operators For Start-Up and Ongoing Costs $1,796,838.75 B. Half of a City Administrator Analyst $120,669.00
C. Administering of Grant/Loan Programs $78,979.75
TOTAL $1,996,487.50

A. Grants and/or Loans to Operators to Assist with Start-Up and Ongoing Costs

Staff recommends that the largest tranche of funds - approximately $1.8 million - be committed to grants and/or loans to operators for start-up and ongoing costs. Grants and loans to equity operators provide access to capital, the fundamental barrier confronting equity applicants as they seek to gain entry and successfully operate in the state’s regulated cannabis marketplace.

In a recent survey (see Attachment A), equity applicants identified lack of capital as the principal barrier to establishing a compliant cannabis business. Grants and loans address this barrier and provide operators with flexibility to cover the variety of expenses they encounter initiating and growing their business, from completing construction, to purchasing insurance, to covering state licensing fees.

B. Administration of Equity Grant/Loan Program

Go-Biz funds also offer an opportunity to cover a portion of staff costs administering the various components of the Equity Program plus the costs of a consultant administering loan and grant programs for equity applicants. Specifically, staff recommends directing Go-Biz funds towards half of the cost of a City Administrator Analyst who is responsible for tracking use of Go-Biz funds and compiling quarterly and annual reports to Go-Biz. In addition to funding City staff’s oversight of these programs, staff recommends allocating approximately $80,000 for 4Front Partners, the City’s existing consultant, to administer the grant and loan programs for equity operators. The City selected 4Front Partners via a competitive Request for Proposals process in 2022 and this Go-Biz funding is in addition to funding identified in the Local Jurisdiction Assistance Grant to account for the large volume of work involved in distributing capital to Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 7
Community Economic Development Committee
March 28, 2023

hundreds of eligible equity applicants. Increased funding will allow consultants to fund sufficient staff for timely responses and monitor appropriate uses of state funds.

Adjustments to Local Jurisdiction Assistance Grant

In 2022 the City Council adopted Resolution No. 89064 C.M.S. to receive the Local Jurisdiction Assistance Grant from the Department of Cannabis Control. This grant provided funding for key staff positions, needed technology, targeted support to equity applicants, operator security upgrades, and consultants to provide technical and legal assistance to equity applicants.

Since accepting the Local Jurisdiction Assistance Grant last year, staff has noted the challenges in spending funds budgeted towards City resources. The large amount of time required to recruit a staffing position and the limited grant time-period has made adding positions impractical. Additionally, many existing building and fire department staff are already overburdened and not available to work substantial overtime on this project.

On the other hand, cannabis operators need resources to bring their facilities into compliance with building, fire, and health code requirements. Accordingly, staff proposes making any unspent Local Jurisdiction Assistance Grant funds available to provisionally licensed cannabis operators in the form of grants to cover the costs associated with bringing their facilities into compliance. Table 3 outlines below the original proposed uses of the Local Jurisdiction Assistance Grant from which staff proposes redirecting unspent funds to operators.

Table 3- Original Proposed Use of Local Jurisdiction Assistance Grant

LOCAL JURISDICTION ASSISTANCE GRANT BUDGET

PROPOSED USE

COST IN YEAR
ONE

COST OVER THREE
YEARS
Grants to Provisionally Licensed Equity
Applicants

$574,218.50

$1,722,655.50
Special Activity Permit Technician $166,810 $500,430
Planning CEQA Review $9,237 $27,710
Program Analyst for Processing Grants $198,640 $595,920 Process Coordinator II in Building Bureau $175,696 $527,088 Overtime for Civil Engineers to Review Plans $591,075 $1,773,224 Overtime for Code Enforcement $78,115.80 $234,347
Hazardous Materials Inspector II $193,546 $580,638
Overtime for Fire Plan Engineers to Review Plans $73,760 $221,280 Overtime for Fire Code Enforcement $61,824.00 $185,472
Overtime for Municipal Code Enforcement
Officers for Security Inspections

$50,000

$150,000
Annual CPTED Training for Municipal Code
Enforcement Officers

$1,200

$3,600
Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 8
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Establishing/Maintaining Accela Module for
Cannabis Permit Tracking

$310,000

$430,000
Grants to Meet Security Requirements $574,218.50 $1,722,655.50 Consultant TBD to Administer Loan/Grant
Programs

$160,000

$480,000
Consultant TBD to Provide Legal Assistance to
Equity Applicants

$125,000

$375,000
Consultant TBD to Provide Technical Assistance
to Equity Applicants

$125,000

$375,000
TOTAL $3,468,341 $9,905,020

FISCAL IMPACT

Staff recommends the acceptance and appropriation of the Go-Biz grant of $1,996,487.50 to continue the City’s support of cannabis equity operators. The purpose and requirements of the Go-Biz grant require that almost all of the funding be distributed externally. Accordingly, only $120,669.00 of the Go-Biz grant will go towards City expenses, and the City Administrator Analyst position has always been funded via grants, so none of the Go-Biz grant will replace existing City costs or funding of the Equity Program. The Go-Biz grant funds will be deposited in the State of California Fund (2159), Cannabis Organization (85621), Miscellaneous State Grant Revenue Account (46229), in Go Biz 4 Project (1006980).

The adjustments to the Local Jurisdiction Assistance Grant have no fiscal impact on the City as they do not alter the overall grant amount and the proposed external disbursement of funds to cannabis operators to bring their facilities into compliance will utilize unspent City funds. Local Jurisdiction Assistance Grant funds are deposited in State of California Fund (2159), Cannabis Organization (85621), Miscellaneous State Grant Revenue Account (46229), Local Jurisdiction Grant Project (1006359).

PUBLIC OUTREACH / INTEREST

Staff conducted public outreach regarding how best to utilize the Go Biz funds at the February 2023 Cannabis Regulatory Commission (CRC) during which the CRC approved staff’s recommendation.

COORDINATION

The Special Activity Permits Division in the Economic and Workforce Development Department (EWDD) consulted with the Planning and Building Department, Oakland Fire Department, the Budget Bureau, the Department of Race and Equity, and the Office of the City Attorney in preparation of this report.

Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 9
Community Economic Development Committee
March 28, 2023

SUSTAINABLE OPPORTUNITIES
Economic: Establishing a pathway to equitable cannabis industry growth will generate economic opportunities for Oakland residents.

Environmental: Encouraging local employment and business ownership can reduce commutes and related greenhouse gas emissions.

Race and Equity: Promoting equitable ownership and employment opportunities in the cannabis industry can decrease disparities in life outcomes for marginalized communities of color and address disproportionate impacts of the war on drugs in those communities.

ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt The Following Pieces Of Legislation:

A Resolution Authorizing The City Administrator To:
(1) Apply For And Accept One Million Nine Hundred And Ninety -Six Thousand Four Hundred And Eighty -Seven Dollars And Fifty Cents ($1,996,487.50) In State Of California, Governor’s Office Of Business And Economic Development (GO-BIZ) Equity Act Grant Funds; And (2) Appropriate The GO-BIZ GRANT Funds By:
(A) Providing Grants And/Or No-Interest Loans In An Amount Not To Exceed Two-Hundred And Fifty Thousand Dollars ($250,000) Per Grant Or Loan For Cannabis Equity Applicants And Licensees, To Be Determined And Without Return To Council, For Businesses, Start -Up And Ongoing Costs In A Cumulative Amount Not To Exceed One-Million Seven Hundred And Ninety- Six Thousand Eight Hundred And Thirty-Eight Dollars And Seventy-Five Cents ($1,796,838.75); And
(B) Funding Administration Of The Cannabis Equity Program In An Amount Not To Exceed One Hundred And Ninety -Nine Thousand, Six Hundred And Forty -Eight Dollars And Seventy -Five Cents ($199,648.75); And
(3) Increase The Amount Of The Existing Three -Year Professional Services Agreement With 4front Partners To Administer Cannabis Equity Grant and Loan Programs By Seventy -Eight Thousand Nine Hundred And Seventy-Nine dollars And Seventy-Five Cents ($78,979.75); And (4) Waive The Request For Proposals/Qualifications Process For The Amended Professional Services Agreement With 4Front Partners;
And A Resolution Amending Resolution No. 89064 C.M.S., Which Among Other Things Authorized The City Administrator To Award Grants For Business Security Purposes To Provisionally Licensed Cannabis Applicants In An Amount Not To Exceed Two- Hundred And Fifty Thousand Dollars ($250,000) Per Grant, By Authorizing The City Administrator To:
(1) Reallocate Any Available Local Jurisdiction Assistance Grant Program Funds In the Form Of Grants For The Purpose Of Bringing The Business Facilities Of Provisionally Licensed Cannabis Applicants Into Compliance With Building, Fire, And Health Code Requirements; And (2) Award Said Grants In An Amount Not To Exceed Two -Hundred And Fifty Thousand Dollars ($250,000) Per Grant To Provisionally Licensed Cannabis Applicants To Be Determined And Steven Falk, Interim City Administrator
Subject: Go-Biz and Local Jurisdiction Assistance Grants for Cannabis Program Date: March 8, 2023 Page 10
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Without Return to Council In A Cumulative Amount Not To Exceed Four Million Five-Hundred Thousand Dollars ($4,500,000)
For questions regarding this report, please contact Greg Minor, Deputy Director, Economic and Workforce Development Department, at (510) 238-6370.

Respectfully submitted,

SOFIA NAVARRO
Interim Director, Economic and Workforce
Development Department
Prepared by:

GREG MINOR
Deputy Director, Economic and Workforce
Development Department
Attachment A: 2023 Cannabis Equity Program Survey

3/1/23, 8:35 PM 2023 Oakland Equity Applicant Survey
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1. Are you currently operating?

2. How long have you been operating?
85 Responses
191:55
Average time to complete
Active
Status
Yes 54
No 31
0-6 months 5
7-12 months 5
1-2 years 9
More than 2 years 35
Attachment A
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3. Please select the top reason why you are not operating. If you select "Other," please explain.

4. How many individuals do you currently employ? For this question, an employee is someone who works at least 35 hours a week.

5. Have you added or reduced staff in the last 12 months? Incubation period ended and co… 1
Build-out was too expensive.1
It took too long to generate rev… 4
Burglaries 2
Negative incubation experience.7
Other 16
None. I run my business by mys… 57
1-2 15
3-5 7
6-10 2
More than 10 4
Added staff. 4
Reduced staff. 30
Staffing level has stayed the sa… 51

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6. What barriers are you encountering as you establish a compliant cannabis business (please select all that apply)? If you select "Other," please explain.

7. Have you experienced any barriers with the following City departments/outside agencies?
None 5
Finding a location 26
Slow buildout 19
Obtaining insurance 13
Hiring and training staff 19
State licensing compliance 21
Legal disputes 12
Tax problems 13
Lack of capital 70
Other 16
Special Activity Permits Division 7
Bureau of Planning 6
Bureau of Building 8
Fire Prevention Bureau 4
Oakland Police Department 3
Alameda County Environmental … 2
EBMUD 10
PG&E 4
No, I have not experienced any … 60

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8. Has your business or staff experienced any burglaries or robberies?

9. After the burglary/robbery, did your business do any of the following? Please select all that apply and please describe if you select "other."

10. After the burglary/robbery, did your business file an insurance claim, and if so, did your business receive a payout from your insurance company?
Yes 37
No 48
File a police report 30
Apply for the City of Oakland's … 14
Other 7
No, our business did not file an … 23
Yes, our business filed a claim a… 0
Yes, our business filed a claim a… 4
Our business filed a claim but re… 10

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11. Please rate your business' future outlook.

12. How do you recommend that the City provide capital to operators: grants, interest-free revolving loans, or both? Please note that while loans must be repaid, loans are not taxable and loan repayments provide future funds for equity applicants. On the other hand, grants need not be repaid, but they are taxable and provide no future funds to equity applicants.

13. Should the City Council establish a loan forgiveness program for equity applicants that are behind on loan repayments? Please note, any forgiven loans will be taxable and reduce the amount of funding the City can disperse as new loans to equity applicants.

Very promising 13
Promising 15
Neutral 35
Negative 12
Very Negative 10
Grants only 25
Interest-free revolving loans only 1
Both grants and interest-free re… 59
Yes 65
No 20

3/1/23, 8:35 PM 2023 Oakland Equity Applicant Survey
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14.Should an equity applicant whose unpaid loan is forgiven be eligible for future City loans or grants? And if yes, should they have to wait a period of time before receiving additional funds?

15.What is an appropriate period of time for someone who has had their unpaid loan forgiven to have to wait before receiving additional City funds?

16.Should there be any eligibility criteria before the City forgives an equity applicant's unpaid loan? If you select "Other," please explain.

No, they should not be eligible f… 3
Yes, they should be eligible for f… 35
Yes, they should be eligible for f… 27
6-12 months 11
1 year 8
2-3 years 6
More than 3 years 2
Any loan borrower should be eli… 44
Only loan borrowers that were b… 1
Only loan borrowers that are no… 6
Other 14

3/1/23, 8:35 PM 2023 Oakland Equity Applicant Survey
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17.To lower monthly loan payments, should the City extend all outstanding loan terms to 10 years? Please note that the longer the loan term, the less repayments that will be available in the short term to distribute to equity applicants via new loans.

18.Should the City remove matching funds requirements for the rental assistance grant? Please note that the matching funds requirement was established to make sure that a business would be self-sustaining over time, thereby avoiding creating false hope for a business that was ultimately going to close.

19.The City of Oakland currently prohibits equity applicants from transferring their permits to general applicants. This includes prohibiting an equity business from taking on investors that control more than fifty percent of the business. Should the City Council change this policy and allow for equity businesses to transfer their permit(s) to general applicants? Please note, if you answer yes, in the next question you can specify under what conditions the City should allow the transfer of permits to general applicants.

No keep the loan terms as is.33
Yes extend the loan agreements… 35
Extend loan agreements to mor… 17
Yes remove the matching funds … 52
No keep the matching funds re… 33
Yes 60
No 25

3/1/23, 8:35 PM 2023 Oakland Equity Applicant Survey
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20.Under what circumstances should equity applicants be able to transfer their permit(s)?

21.How can the City of Oakland better support your business? 72 Responses
Latest Responses
"Follow up and make sure dispensaries and cannabis business a… "Expediting loan and grant processes"
"I think Oakland does a great job."

22.What else would you like to say about operating a cannabis business in Oakland? 69 Responses
Latest Responses
"Its extremely frustrating jumping through hoops for both the ci… "Too many security breaches."
"Safety is always a concern. "
Whenever they want. 17
1-3 years after they have receive… 30
More than 3 years after they ha… 13

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23.Please select your age or the average age of your business' partners/owners/board members.

24.Please select all gender options below that represent your business' owners/partners/board members.
21-30 3
31-40 25
41-50 31
51-60 16
Over 60 4
Decline to state 5
Male 57
Female 50
Non-binary 3
Transgender 2
Not listed 1
Decline to state 7

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25.Please select all sexual orientation options below that represent your business' owners/partners/board members.

26.Please select all race and ethnicity options below that represent all of your business' owners/partners/board members.

Heterosexual/straight 56
Homosexual/gay 8
Bisexual 7
Not listed 2
Decline to state 25
American Indian/Native American11
Asian 15
Black/African-American 65
Hispanic/Latino 15
Native Hawaiian 3
White 18
Not listed 4
Decline to state 11

3/1/23, 8:35 PM 2023 Oakland Equity Applicant Survey
https://forms.office.com/pages/designpagev2.aspx?lang=en-US&origin=OfficeDotCom&route=Start&sessionid=3a14fcad-f96b-4249-9d64-a2229266… 11/12

27.Please select the level(s) of education that represent(s) all of your business' owners/partners/board members.

28.Does one or more of your business' owners/partners/board members have a disability?

29.Please select the annual personal income level(s) that represent(s) all of your business' owners/partners/board members.

No high school diploma 3
High school diploma 17
Some college, no degree 44
Bachelor's degree 42
Graduate or professional degree23
Decline to state 9
Yes 15
No 59
Decline to state 9
Less than $20,000 19
$20,000-$39,999 11
$40,000-$59,999 20
$60,000-$79,999 8
$80,000-$100,000 5
More than $100,000 0
Decline to state 21

3/1/23, 8:35 PM 2023 Oakland Equity Applicant Survey
https://forms.office.com/pages/designpagev2.aspx?lang=en-US&origin=OfficeDotCom&route=Start&sessionid=3a14fcad-f96b-4249-9d64-a2229266… 12/12

30.Has any owner/partner/board member of your business or any immediate family members (parent, sibling, spouse, child) been convicted of or incarcerated for any cannabis related charges?

31.Has any of your business owners/partners/board members served or are currently active in the military?
Yes 40
No 29
Decline to state 15
Yes 7
No 65
Decline to state 12

Community & Economic Development CommitteeMarch 28, 2023

Community & Economic Development Committee
March 28, 2023