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1 COMMUNITY & ECONOMIC
DEVELOPMENT DEPARTMENT
Economic Development, Placemaking and
Branding/Marketing Committee
August 17, 2023
Cannabis Business Permit Application
Review Process and Review Criteria
RiversideCA.gov
2 • February 28, 2023 - City Council
• Adopted:
• Ordinance 7628 Replacing Chapter 5.77 (Cannabis Business Activities) of the RMC in its entirety;
• Ordinance 7629 Amending Title 9 (Peace, Safety and Morals) of the RMC; and
• Ordinance 7630 Amending Title 19 (Zoning) of the RMC
• Directed Staff to:
• Implement a Cannabis Permit Program
• Develop a Cannabis Equity Program
BACKGROUND
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3 PERMITTED BUSINESS TYPES
Prohibited Business Types:
• Commercial Cultivation
• Microbusinesses
Business Type Maximum Number
Storefront Retail 14
Manufacturing/Distribution No Limit
Testing Laboratories No Limit
RiversideCA.gov
4 • Cannabis Business Permit
• Background Checks
• Community Benefits
• Business Tax Certificate
• Operational Requirements
• Security Requirements
• Compliance with Zoning
TITLE 5 REQUIREMENTS
• Location Restrictions:
• 600 feet from:
• Commercial Daycare
Centers
• Community Centers
• 1,000 feet from:
• K-12 Public/Private
Schools
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6 PROPOSED APPLICATION REVIEW PROCESS
• RMC 5.77 Requires Resolution adopting Application
Procedure Guidelines and Application Review Criteria
Application Period
Phase 1 – Application Clearance, Preliminary
Qualifications and Selection of Finalists
Phase 2 –S i t e Review and Final Vendor
Selection Process
Phase 3 – Final Administrative Approval
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7 APPLICATION PERIOD
• Limited Application Window for Storefront
Retail
• Manufacturing/Distribution & Testing
Laboratories Can Apply at Any Time
• Cannabis-Specific Web Portal Go-Live
Prior to Application Window
– Application Forms and Guidelines
– Reference Documents
– Frequently Asked Questions
?
? = Decision Point
RiversideCA.gov
8 APPLICATION SUBMITTAL REQUIREMENTS
• Application Form
– Applicant/Owner Information
– Business Entity Status
– Cannabis Experience
– Criminal Convictions
– State Law Compliance
– Insurance Compliance
– Labor Peace Agreement
– Defense and Indemnification
• Business Plan
– Estimated Revenue and Expenses
– Financial Plan/Budget
– Funding/Proof of Capitalization
• Operations Plan
– Schedule for opening
– Staffing, Training & Education
– Standard Operating procedures
– Air Quality Control
• Safety Plan
• Security Plan
• Labor and Employment Plan
• Live Scan/Background Check
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9 PHASE 1 –CLEARANCE, QUALIFICATIONS & SELECTION
• Step 1: Application Clearance
– Initial Application Completeness Review
– Review of Clearance Requirements
• Step 2: Initial Ranking
– Points assigned based on the following Criteria:
• Owner Qualifications and Experience
• Business Plan
• Safety Plan
• Security Plan
• Labor and Employment Plan
• Step 3: Interview Ranking
– Points assigned based on same Criteria as above plus:
• Community Benefits
• Step 4: City Council Authorization?
?
RiversideCA.gov
10 PHASE 2 – SITE REVIEW AND FINAL VENDOR SELECTION
• Preferred Premises Location(s)
– Property Owner Information
– Property Owner Affidavit
– Cannot be same location as a higher ranked
applicant
• Proof of Premises Control
– Lease Agreement or Deed
• Zoning Verification and Location/Separation
Review
• Floor Plan & Site-Specific Operational Plan Review
• Presentation, Tour and Site Package
?
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11 PHASE 3 – FINAL ADMINISTRATIVE APPROVAL
• State License
• City Business Tax Certificate
• Building & Fire Permitting & Occupancy
• 12 Months to Exercise Approved Cannabis
Business Permit
• Cannabis Operational Agreement
– Insurance
– Indemnification
– Operating Fee (if adopted)
– Community Benefits
– Local Hiring Practices
– Local Sourcing Practices
RiversideCA.gov
12 MERIT-BASED EVALUATION CRITERIA
• Required to be adopted with Procedure Guidelines
• Used in Phase I – Preliminary Approval for Storefront Retail • Sample Criteria from Other Jurisdictions
– As little as 6 criteria and 100 points
– As many as 58 criteria and 2,500 points
• Generally fall within 7 topic areas
– Qualifications of Owners/Operators
– Business Plan/Financial Investment
– Operations Plan
– Safety/Security Plan
– Community Benefit
– Location/Design Concept
– Labor and Employment Plan
?
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13 CONCURRENT AND NEXT STEPS
• Finalize Procedure Guidelines and Develop Evaluation Criteria – Stakeholder Engagement
– Prepare Resolution to Adopt
• Engage Evaluation Consultant (if directed)
• Prepare Public-Facing Content and Website
• Complete Cannabis Fee Study
– Prepare Resolution to Adopt
• Initiate Cannabis Tax Measure
– Prepare Fiscal Impact Analysis
– Draft Ballot Language
• Commence Equity Grant Effort
– Prepare/Release RFP for Consultant
– Initiate Project
• Initiate Authorization for Dedicated Staff Recruitment ?
?
?
RiversideCA.gov
14 PROPOSED APPLICATION AND REVIEW PROCEDURE
Application Period 30 Calendar Days November 1‐30, 2023 Application Period
Phase 1 – Application Clearance, Preliminary Qualifications and Selection Application Clearance 20‐30 Business Days
Merit Process Jan. 15 –M a r . 15, 202445‐60 Calendar Days Dec. 1, 2023 –J a n . 12, 2024
Preferred Premises
Phase 2 –S i t e Review and Final Vendor Selection Process 14 Business Days (x 14)
March –M a y 2024
Operational Agreement 14 Calendar Days (x 14)
Premises Control 3 Business Days (x 14)
State License
Phase 3 –F i n a l Administrative Approval
1‐12 Months June 2024 ‐ May 2025
Permitting & Occupancy At least 60 days 2024 ‐ 2025
City Business Tax Certificate 5 Business Days Based Upon Submittal *All Dates Tentative
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15 DECISION POINT TOPIC OVERVIEW
1. Application Period
2. Review Panel
3. Evaluation Criteria
4. City Council Authorization
5. Site Tours & Presentations
6. Equity Permit Set-Aside
7. Create New Dedicated Staff Positions
8. Process: Storefront Retail vs. Other Uses
RiversideCA.gov
16 DECISION POINTS
1. Application Period
– Duration
• 30 to 45 days typical when limited number of permits
2. Review Panel
– Who is on the Panel?
• Staff only;
• Third-Party Consultant only;
• Community Representatives; or
• Combination any of the above.
– Include Independent Facilitator?
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17 DECISION POINTS
3. Evaluation Criteria
– Scoring/Points System
• Simple; or
• Comprehensive/Extensive
– Weighting of Evaluation Criteria
• Most important factors when evaluating applications
• Factors that should not be considered
4. City Council Authorization Following Evaluation?
RiversideCA.gov
18 DECISION POINTS
5. Site Tours and Presentations from Permittees
During Site Review?
6. Equity Permit Set-Aside
– Title 5 limits Storefront retailers to no more than 14 • Should a certain number be set aside for Equity-eligible applicants?
• Should more permits be considered following Equity analysis and findings?
– Would require an amendment to RMC Title 5
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19 DECISION POINTS
7. Create up to 5 New Dedicated Staff Positions
– Economic Development – Cannabis Program Manager
– Finance
– Police
– Building and Safety
– Planning
– CEDD Support Staff Member
8. Process: Storefront Retail vs. Other Uses
– Same process and criteria for Manufacturing/Distribution and Testing Laboratories?
RiversideCA.gov
20 STRATEGIC PLAN ALIGNMENT
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
#5 High Performing Government
#3 Economic Opportunity
Envision Riverside 2025 Strategic Plan Priorities
Cross-Cutting Threads
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21 RECOMMENDATIONS
Staff recommends that the Economic Development, Placemaking and Branding/Marketing Committee:
1. Review and provide direction on the proposed Cannabis Business Permit Application Review Process and Review Criteria;
2. Direct Staff to initiate the procurement process for a third-party consultant to assist with Cannabis Business Permit Application Review Process; and
3. Direct Staff to initiate the process to request th at City Council approve the addition of up to 5 staff members to support the City’s Cannabis Program.
RiversideCA.gov
22 COMMUNITY & ECONOMIC
DEVELOPMENT DEPARTMENT
Economic Development, Placemaking and
Branding/Marketing Committee
August 17, 2023
Cannabis Business Permit Application
Review Process and Review Criteria
21 22