March 25, 2025
DocID #38314v1
Economic Development
DATE: March 25, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Nannette Beacham, Director of Economic Development
Lizeht Zepeda, Senior Business Assistance Officer
Jesson de Leon, Senior Business Assistance Officer
Kyle Lam, Management Analyst
Junne Garcia, Management Analyst
Subject:
Resolution to Accept and Appropriate the Grant Award for the Cannabis Equity Program
FINANCIAL IMPACT: The City of Richmond has been awarded a $600,000 grant from the Governor’s Office of Business and
Economic Development (GO-Biz) Type II Cannabis
Equity Grant. The grant requires a matching contribution, and the City’s proposed match of $100,000 has been
identified in the approved Fiscal Year (FY) 2024-2025
and 2025-2026 budgets (Account String: 01361165-
400201).
.
PREVIOUS COUNCIL
ACTION:
November 21, 2017
December 7, 2021
March 1, 2022
STATEMENT OF THE
ISSUE:
The Economic Development Department has been
awarded a $600,000 GO-Biz Type II Cannabis Equity
Grant to advance social equity in the cannabis industry.
City staff seeks Council approval to accept the grant
award, which will provide resources, training, direct
grants, and business development support to individuals and communities disproportionately affected by historical cannabis policies.
AGENDA
REPORT
March 25, 2025
DocID #38314v1
RECOMMENDED ACTION:
ADOPT a resolution to accept grant funding from the
California Governor’s Office of Business and Economic
Development, in the amount of $600,000 for the
Cannabis Equity Program; AUTHORIZE the city manager
or their designee to execute the necessary agreements
with GO-Biz to accept the grant funds; and
APPROPRIATE the grant funds in the Fiscal Years 2024-
2025 through 2026-2027 budgets – Economic
Development Department (Nannette Beacham 510-621-
1306/Lizeht Zepeda 510-620-6653/Jesson de Leon 510-
412-2023/Kyle Lam 510-620-6802/Junne Garcia 510-
865-3532).
DISCUSSION:
Background
During the November 21, 2017, Richmond City Council meeting, Councilmembers expressed interest in developing an equity program for commercial cannabis activities.
Economic Development staff partnered with SCI Consulting Group to create an Equity Assessment and Equity Manual, laying the foundation for the Richmond Cannabis Equity Program. This process included multiple community meetings and stakeholder interviews with current and prospective cannabis operators, equity applicants, non- cannabis business leaders, and other key participants. These efforts provided a comprehensive understanding of Richmond's cannabis industry, identifying both opportunities and challenges. On December 7, 2021, the City Council adopted Resolution No. 148-21 officially establishing the Cannabis Equity Program and approving the Equity Assessment and Equity Manual.
In December 2024, the Economic Development Department applied for the Type II Cannabis Equity Grant from the California Governor's Office of Business and Economic Development (GO-Biz), in an amount of $600,000, to further the implementation of the City’s Cannabis Equity Program. This application was developed in partnership with the Economic Development Commission’s Cannabis Subcommittee. On January 23, 2025, the California Governor’s Office of Business and Economic Development (GO-Biz) informed the City of Richmond of its eligibility for the grant award in the amount of $600,000 for the Cannabis Equity Grants Program. To receive grant funding, GO-Biz requires formal authorization for the City Council to enter into a grant agreement with GO-Biz and to designate an official signatory. This grant award builds on the City’s commitment to addressing social and economic inequities by ensuring equitable access to emerging industries, such as the cannabis sector.
Program Overview
The criminalization of cannabis disproportionately impacted communities across California, leaving individuals with convictions and their families facing long-term
March 25, 2025
DocID #38314v1
economic and social disadvantages. Many face barriers to entering the regulated cannabis industry due to limited access to capital, business space, technical assistance, and regulatory compliance support.
The Richmond Cannabis Equity Program is designed to eliminate these barriers and promote equitable industry participation. Guided by the Cannabis Equity Manual, the program defines eligibility criteria and support mechanisms for verified equity applicants.
The GO-Biz grant funding will enable the City to expand direct technical assistance, helping applicants navigate regulatory processes, secure commercial spaces, and establish viable businesses. Additionally, the City will provide direct financial assistance through grants to equity applicants to support business startup costs.
This initiative ensures that the cannabis industry does not replicate historical exclusionary practices but instead fosters economic opportunities for individuals disproportionately impacted by past cannabis policies.
Conclusion
The Economic Development Department requests that the Richmond City Council adopt a resolution authorizing the City Manager or their designee to execute the necessary agreements with GO-Biz, accept the $600,000 in grant funds, and appropriate the funds in the FY 2024-2025 through 2026-2027 budgets. This action represents a key step in Richmond’s broader strategy to promote economic and racial equity through equitable access to emerging industries.
SYNERGISTIC POLICIES:
This grant supports the City’s Economic Development and Community Health and Wellness goals outlined in the General Plan. The Cannabis Equity Program aligns with Policy ED2.1 (Local Employment Base) and Policy HW6.6 (Local Small Businesses) by reducing barriers to industry participation for individuals harmed by cannabis criminalization.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Grant Award Letter