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1 COMMUNITY & ECONOMIC
DEVELOPMENT DEPARTMENT
City Council
October 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
Maximum NumberBusiness Type
14Storefront Retail
No LimitManufacturing/Distribution
No LimitTesting Laboratories
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
• Resolution to adopt Application Procedure Guidelines
and Application Review Criteria
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5 PROPOSED APPLICATION REVIEW PROCESS
• August 17, 2023 –Economic Development, Placemaking, Branding and Marketing Committee provided direction on Draft Procedure Guidelines and Evaluation Criteria:
1. Limit the application period to 30 days
2. Allow concurrent review of application and proposal;
3. Amend time to secure a property to 180 days;
4. Review Panel comprised of City Manager, Fire, Police, and CEDD;
5. Remove the design and location requirement from the scoring criteria;
6. Remove City Council from selection of finalists;
7. Return with additional information in support of request for 5 staff positions;
8. Consider the process for non-retail cannabis uses at a later time; and
9. Issue all 14 permits at this time, without equity set-aside.
RiversideCA.gov
6 PEER ANALYSIS
• Staff researched 12 cities with established cannabis programs:
• Peer Research Topics:
– Application Period
– Application Review/Evaluation Process
– Staffing Needs and Time Commitment
– Timing and Duration of Each Step
– Review Panel Members
– Equity Programs
• Stanton• Sacramento• Modesto• Corona
• Stockton• San Bernardino• Moreno Valley• Costa Mesa
• West Hollywood• Santa Ana• Oakland• Long Beach
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7 PROPOSED APPLICATION REVIEW PROCESS
Application Period –3 0 Days
Phase 1 – Application Clearance, Merit‐Based
Evaluation, and Ranking of Applicants
• Step 1.1: Application Clearance
• Step 1.2: Merit‐Based Evaluation
Phase 2 – Application Final Approval
• Step 2.1: Location Selection
• Step 2.2: Zoning Verification Letter
• Step 2.3: Site Submittal and Review
• Step 2.4: final Permit Approval
RiversideCA.gov
8 APPLICATION PERIOD
• 30-day Application Window
• Cannabis-Specific Web Portal Go-Live
Prior to Application Window
– Application Forms and Guidelines
– Reference Documents
– Frequently Asked Questions
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9 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 Proposal
– Qualifications of Owners and
Operators
– Business Plan/Financial Investment
• Operations Plan
– Staffing, Training & Education
– Standard Operating procedures
– Air Quality Control
• Safety/Security Plan
• Labor, Employment, and Local
Sourcing Plan
RiversideCA.gov
10 PHASE 1 – CLEARANCE, MERIT-BASED EVALUATION, AND RANKING • Step 1.1: Application Clearance
– Initial Application Completeness Review
– Review of Clearance Requirements
• Step 1.2: Merit-Based Evaluation (Ranking)
– Points assigned based on the following Criteria:
• Owner Qualifications and Experience
• Business Plan/Financial Investment
• Operations Plan
• Safety/Security Plan
• Labor, Employment, and Local Sourcing Plan
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11 PHASE 2 – APPLICATION FINAL APPROVAL
• Step 2.1: Location Selection
– Preferred Location Submittal
• Preferred Location Information (Address, etc.)
• Property Owner Information
• Property Owner Affidavit
• Cannot be same location as a higher ranked applicant
– Review and Verification of Preferred Location
• Step 2.2: Zoning Verification Letter
– Zoning Compliance
– Location/Separation Review
• Step 2.3: Site Submittal and Review
– Site Details
– Business Plan, Operational Plan, and Safety/Security Plan RiversideCA.gov
12 PHASE 2 – APPLICATION FINAL APPROVAL
• Step 2.4: Final Permit Approval
– Conditions of Final Approval
• Proof of Property Control
• State License
• City Business Tax Certificate
• Entitlements
• Building, Fire and Occupancy Permits
• Commercial Cannabis Operational Agreement
– Insurance
– Indemnification
– Community Benefits
– Local Hiring Practices
– Labor Peace Agreement
– Local Sourcing Practices
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13 TENTATIVE PROCESS SCHEDULE
Application Period
Nov. 15 –D e c . 15, 202330 DaysApplication Period
Phase 1 – Clearance, Merit‐Based Evaluation, and Ranking Nov. 2023 –D e c . 20247 Calendar Days (max) Step 1.1: Application Clearance Dec. 2023 –J a n . 202445 Calendar DaysStep 1.2: Merit‐Based Evaluation Phase 2 – Application Final Approval
Jan. 2024 –M a r . 2024Due within 30 Calendar Days 7
Calendar Day ReviewStep 2.1: Location Selection
Jan. 2024 –A p r . 202414 Calendar DaysStep 2.2: Zoning Verification Letter Jan. 2024 –M a y 2024Due 90 Days from ZVL
30 Calendar Day ReviewStep 2.3: Site Submittal and Review Mar . 2024 –M a y 2025 Varies – Applicant Must Meet
All Conditions of ApprovalStep 2.4: Final Permit Approval RiversideCA.gov
14 STAFFING NEEDS
• Five positions identified to support cannabis program:
– Community and Economic Development - $319,886
1. Facilitator/Project Manager - $101,539
2. Senior Planner - $114,330
3. Building Inspector I-II - $104,017
– Police Department - $138,809
4. Detective
– Finance Department - $121,170
5. Principal Management Analyst
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15 CANNABIS EQUITY PROGRAM
Cannabis Equity Program Timeline
Procurement Process
October 2023Issue RFP for cannabis equity consultant
November 2023Consultant selected
January 2024Council considers consultant agreement
Cannabis Equity Assessment
January 2024Consultant begins equity assessment report
August 2024Consultant concludes assessment report (earliest) September 2024Committee receives update on assessment report October 2024Council receives update on assessment report Program Development Framework
October 2024Consultant begins program development framework February 2025Consultant finishes program development framework (earliest) March 2025Committee and Council consider approval of the program April 2025Establishment of Cannabis Equity Program
RiversideCA.gov
16 CANNABIS APPLICATION FEES
Two-Stage Fee Structure – To be considered October 24, 2023 • Application Fee
– All applicants must pay concurrent with application.
– Covers staff costs to perform application clearance and merit-based evaluation by review panel.
• Site Review Fee
– Top 14 ranked applicants must submit this fee with the preferred site information.
– Covers cost of preparing Zoning Verification Letter,
negotiation/preparation of Operational Agreement, and detailed review of site plan, operational plan, business plan, safety/security, and other required documents.
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17 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
RiversideCA.gov
18 RECOMMENDATIONS
Staff recommends that the City Council:
1.Adopt a Resolution to adopt the Storefront Retail Commercial Cannabis Business Permit Procedure Guidelines and Application Review Criteria; and
2.With at least five affirmative votes authorize an increase of five (5) Full Time Equivalent (FTEs) in the General Fund for the purpose of Cannabis Permit Review Guidelines
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19 COMMUNITY & ECONOMIC
DEVELOPMENT DEPARTMENT
City Council
October 17, 2023
Cannabis Business Permit Application
Review Process and Review Criteria
RiversideCA.gov
20 REFERENCE SLIDE
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