BLUE FOLDER ITEM
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
DECEMBER 19, 2023
N.2 DISCUSSION AND POSSIBLE ACTION ON THE PROPOSED CANNABIS LICENSING
APPLICATION PROCESS AND ASSOCIATED SALES TAX RATES
CONTACT: ELIZABETH HAUSE, ASSISTANT TO THE CITY MANAGER • UPDATED ATTACHMENT – COMPARATIVE MATRIX
City Outreach Matrix
Updated 12/19/2023
City Consultant #of Licenses # of Applicants # of Permits issued Property Required? Tax Rate Final Selection Litigation? Litigation basis Oxnard HdL
Retail ‐ 16Manufacturing ‐ 8
Distribution ‐ 3
Indoor cultivation ‐ 5Testing ‐ 1
50 with first Program
~50 with New Program
Retail dispensaries
open – 8 as of 12/1/23
Six (6) CCB applicants
have been issued
building permits. Two(2) applicants are
currently in the plan
check process.
Yes 6% Internal Panel, 4 staff, CM
approve the ranking Yes
Letters transmitted to unsuccessful applicants did not
state that the applicants had the right to appeal the City Manager's decision.
Despite lack of notice, four of the unsuccessful
applicants did file an appeal. The appeals highlighted
inconsistencies within the Oxnard City Code, with one
code section authorizingan appeal of the CMs decision
while two other provisions specifically indicating taht the CM's decision was final and this not subject to
appeal.
Pasadena HdL Retail ‐ 6 122 Retail Applicants
Six (6) permits were
approved, though only
4 have found a zone‐
appropriate site, 1 of
which opened and has
already closed again.
No 4%
HdL reviewed and scored all
application. This was the only
score.Followed by an interview for
the top 6 that was not scored.
Yes
There were lawsuits related to attaining property for the six (6) permit awardees. Issues include:
1. Some zones only permitted for specific uses, but the awarded permitees were trying to find flexibility in what certain terms meant. Example provided was the
definition of "library."2. The six (6) awarded permitees needed to identify appropriate properties and then submit a CUP
application. The CUP applications were taken in on a
first‐come, first‐served basis, i.e. if 2 or more awardees submitted a complete application for the same property, the awardee who submitted a complete application first
would be the one processed for the CUP for that site.
Costa Mesa HdL No limit 60 Retail 9 Open Storefronts Yes 6% Planning Commission throughCUP process; then complaince inspection by HdL and planning
staff
Yes
Staff unable to comment other than to state litigation
was not related to application process, including
property requirement.
WestHollywood
SCIConsulting Retail ‐ 40
313 Applicantssubmitted in the
Screening Phase
10 Open Storefronts,14 Pending
Not in Initial
ScreeningApplication, but in
secondary
Evaluation.
7%
City Cannabis ApplicationEvaluation Committeecomprised of 5 individuals hired on to review apps. Top scoring
applicants move on to Business
License Commissions.
Yes
Related to four(4) original medical collectives in WeHo.
They all submitted a Screening Application, though only two of them scored high enough to move forward. The
other two filed a suit ‐ it was settled, and changes were made in the code to address legacy medical operators.
Riverside Tierra West Retail ‐ 14
Application process iscurrently open for
submittals
No
Not yet selected, City
Attorney working on it,
will be on March ballot
City Manager n/a n/a
Montebello Tierra West No Retail No Retail n/a
Ad Hoc Committee, inclusive of
2 Councilmembers, reviewed
applicants.
Chico HdL Retail ‐ 3 29 Retail 3 Open Storefronts Yes 5% City Manager None n/a Culver City None Retail ‐ 3 23 Retail
1 Open, 1 has
approved CUP, 1 in
process of applying for
CUP
Yes
Retail (medicinal): range
of 5 ‐8% with an initial
rate of 5%
Retail (adult‐use): range
of 6‐10% with an initial
rate of 6%
CUP must be approved first
before final City Council
approval of Permit.
Yes Issue settled; no further details available