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1 RiversideCA.gov
1 COMMUNITY & ECONOMIC DEVELOPMENT
DEPARTMENT
City Council
October 17, 2023
Cannabis Business Permit
Application Review Process and Criteria
RiversideCA.gov
2 • February 28, 2023 - City Council
• Ordinance 7628 Replacing Chapter 5.77 in its entirety; • Ordinance 7629 Amending Title 9; and
• Ordinance 7630 Amending Title 19
• Directed Staff to:
• Implement a Cannabis Permit Program
• Develop a Cannabis Equity Program
BACKGROUND
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Date: 10-17-23
Item No.: 08REVISED
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2 RiversideCA.gov
3 CANNABIS USES
Maximum NumberBusiness Type
14Storefront Retail
No LimitManufacturing/Distribution
No LimitTesting Laboratories
ProhibitedCommercial Cultivation
ProhibitedMicrobusinesses
RiversideCA.gov
4 • Cannabis Business Permit
• Background Checks
• Community Benefits
• Business Tax Certificate
• Operational Requirements
• Security Requirements
• Compliance with Zoning
GUIDELINES AND CRITERIA
• Location Restrictions:
• 600 feet from:
• Commercial Daycare
Centers
• Community Centers
• 1,000 feet from:
• K-12 Public/Private Schools
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5 PROPOSED APPLICATION REVIEW PROCESS
• Application period – 30 days
• Concurrent review of application and business proposal; • Time to secure property – 180 days;
• Review Panel comprised of staff representing City Manager, Fire, Police, and CEDD;
• No design and location review as part of scoring criteria; • City Council not involved in selection process;
• Provide additional information regarding 5 staff positions; • Bring process for non-retail cannabis uses at a later time; • Provide additional information on the equity process; and • Issue all 14 permits at this time, without equity set-aside.
RiversideCA.gov
6 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
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7 APPLICATION PROCESS KICK OFF
• 30-day Application Window
• Cannabis-Specific Web Portal Go-Live
Prior to Application Window
– Application Forms and Guidelines
– Reference Documents
– Frequently Asked Questions
RiversideCA.gov
8 APPLICATION REQUIREMENTS
• Application Form
– Applicant/Owner Information
– Business Entity Status
– 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
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9 REVIEW, EVALUATION, AND RANKING
Step 1.1: Immediately Upon Receipt
• Application Checklist Review
Step 1.2: Merit-Based Evaluation
• Application package circulated to Review Panel
• Proposals Reviewed and Scored based on merit-based
criteria
• Points assigned by each reviewer and cumulative score determined
• Top 14 Applicants ranked and receive provisional
approval
RiversideCA.gov
10 PHASE 2 – SITE SELECTION AND FINAL REVIEW
Step 2.1: Preferred Location Selection
Step 2.2: Zoning Verification Letter
• Zoning Compliance
• Location/Separation Review
Step 2.3: Site Submittal and Review
• Site Details
• Business, Operational, and Safety/Security Plans
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11 PHASE 2 – SITE SELECTION AND FINAL REVIEW
Step 2.4: Final Permit 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
RiversideCA.gov
12 TENTATIVE PROCESS SCHEDULE
Application Period
Nov. 15 –D e c . 15, 202330 DaysApplication Period
Phase 1 –R e v i e w , 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 –S i t e Selection and Final Review
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 11 12
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13 CANNABIS APPLICATION FEES
Application Fee
All applicants
Recover cost of facilitator, staff and administrative overhead Site Review Fee
Top 14 ranked applicants
Recover costs to prepare Zoning Verification Letter,
negotiation/preparation of Agreements, Technical review of construction plans, operational plan, business plan,
safety/security measures, and business improvements.
RiversideCA.gov
14 STAFFING NEEDS
Community and Economic Development
1. Facilitator/Project Manager - $101,539
2. Senior Planner - $114,330
3. Building Inspector I-II - $104,017
Police Department
4. Detective- $138,809
Finance Department
5. Principal Management Analyst - $121,170
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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 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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17 RECOMMENDATIONS
The Economic Development, Placemaking and
Branding/Marketing (EDPBM) Committee 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) (Limited Term) Full Time Equivalent (FTEs) in the General Fund for the purpose of Cannabis Permit Review Guidelines.
RiversideCA.gov
18 RECOMMENDATIONS
Councilmember Fierro further recommends that the City Council:
1. Approve as part of the Resolution to adopt the Storefront Retail Commercial Cannabis Business Permit Procedure Guidelines and Application Review Criteria the following modifications not included in the motion of the EDPBM Committee:
a. Require proof of property control wit hin 90 days of receiving Provisional Approval, with a discretionary extension of an additional 90 days, as part of the Preferred Location Submittal in Phase 2 rather than a condition of final approval;
b. Include a merit-based evaluation criteria that provides additional points to those applicants that commit to paying a Living Wage; 17 18
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19 RECOMMENDATIONS
c. Include a merit-based evaluation criteria that provides additional points to those applicants that demonstrate they have previously entered into a collective bargaining agreement at another location under their ownership; and
d. Include a merit-based evaluation criteria that provides additional points to those applicants that describe the process they will follow to ensure the collective bargaining rights of employees who have demonstrated support for a bonafide labor union, i ncluding but not limited to a card check process.
RiversideCA.gov
20 COMMUNITY & ECONOMIC DEVELOPMENT
DEPARTMENT
City Council
October 17, 2023
Cannabis Business Permit
Application Review Process and Criteria
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21 REFERENCE SLIDE
RiversideCA.gov
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