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RiversideCA.gov
Consideration of Amendments to the Municipal Code and Cannabis Business Permit GuidelinesCity Council MeetingMarch 25, 2025Community & Economic Development RiversideCA.gov2
BACKGROUND
2016: Proposition 64 Passed
September 2017: Moratorium on commercial cannabis activities September 2021: Notice of Intent to Circulate Petition
November 2021:EDPBM Committee discussed the need to develop an ordinance 2021-2022: EDPBM Committee and staff work to draft amendments to the RMC March 2023: Ordinance 7628 was adopted by the City Council regulating cannabis business activities October 2023: City Council approves permit guidelines and application review criteria November –December 2023: Phase 1 Application Period
March 2024: Phase 2 Application Period
September 2024: Deadline for 14 preferred site locations; site locations posted January 2025: City Council votes to postpone review process for 90 days March 2025: Staff returns with proposed amendments for cannabis regulations for City Council consideration1 2 3/13/2025
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JANUARY 7TH CITY COUNCIL DIRECTION
POSTPONEMENT
• Postpone the permitting process by up-to 90 daysRESEARCH • Effects of concentration• Proximity to sensitive receptors• Crime impacts• Health and safety concernsPROPOSED AMENDMENT TOPICS • Crime and community safety • Permit transfer/sale process• Allow CCB in Industrial and Manufacturing Zoning Only• Establish New Sensitive Use Categories• Establish a minimum distance between Cannabis Storefronts• Evaluate the total number of Permits per ward• Evaluate the total number of permits within the City RiversideCA.gov4
CRIME & COMMUNITY SAFETY
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CRIME, HEALTH & SAFETY ANALYSIS
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RESEARCH RESULTS
•California’s Regulatory and Quality Control Measures are Inadequate•No Clear Bright Line Division Between Legal and Illegal Cannabis Products/Sales•Increase in Crime and Calls for Service in Neighborhoods Surrounding Businesses Selling Cannabis5 6 3/13/2025
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RESEARCH RESULTS
•Use of Cannabis Leads to Adverse Health Effects•Possible Negative Impact on ABC Licenses of Surrounding Businesses•Cannabis Legalization Fuels the Black Market•Marijuana Use Conflicts with the Stated Goals of the Blue Zone Project RiversideCA.gov8
CRIME, HEALTH & SAFETY ANALYSIS
Legal vs. Illegal Cannabis•232 licensed tobacco retailers operating in Riverside - no licensed cannabis businesses•30 out of 42 tobacco retailers (71%) were illegally selling cannabis products.•Legal cannabis product being sold in both licensed and unlicensed businessesIncrease in Crime and CFS•Studies have shown that crime increased in the neighborhoods surrounding cannabis dispensaries•Cannabis outlets in the City of Riverside showed an average 146% increase in calls for service•Correlation with legalization of cannabis and increase in traffic accidents and deathsAdverse Health Effects•Cannabis Use Disorder (Addiction)•Brain, Lungs, Heart Health•Mental Health•Driving•Unintentional Poisoning•Increase in hospital emergency room visits•Cannabinoid Hypermesis Syndrome (CHS)Impact on Surrounding Businesses•Impact on crime•May impact businesses governed by other state permits (ABC)Black Market•Mexican DTOs•International Crime Groups•Criminal Background•Product cheaper on the Black Market 7 8
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RIVERSIDE PD FINDINGS
Staff Recommendations: 1. Limit the number of permits to one per ward. 2. Due to the increase in crime establish a minimum distance between CCBs of 1,000 feet. Additional Direction Needed: 1. Require cannabis products not to exceed 5 grams and 10% THC concentration. 2. Require Dispensaries to submit to random product testing at their own expense. 3. Universities and colleges as sensitive use.
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2. SALE OF CANNABIS BUSINESSES9
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TRANSFER PROCESS REVIEWED
Operating Period before TransferEvaluation Criteria used in Transfer ReviewLimitations to transfer processProhibition of Permits for sale and to buyCity Council to Approve / DenyPeriodic review of ownership to prevent improper transfers RiversideCA.gov12
TRANSFER PROCESS FINDINGS
Staff Recommendations:1. Adding language to the transfer process to require a new owner to score equal to or higher than the originally proposed team.Additional Direction Needed:1. Consider options related to requiring transfers to include equity qualified businesses.2. Amend the approval authority from City Manager to City Council.11 12 3/13/2025
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3. LOCATIONS
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LOCATIONS
Professional ManufacturingIndustrialRetailCityXXXXCoronaXCosta MesaXJurupa ValleyXLong BeachXXXXMoreno ValleyXXXPerrisXXXXSan BernardinoXXXSanta AnaXWest HollywoodX Riverside13 14 3/13/2025
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INDUSTRIAL ZONES
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COMMERCIAL ZONES
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PLACEMAKING AREAS
Arts & Culture Midtown Arlington VillageDistrict
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4. CONCENTRATION OF CANNABIS STOREFRONTS17
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CONCENTRATION
•New Sensitive Uses•Minimum Distance between CCBs•Maximum Permits per ward•Total number of Permits RiversideCA.gov20
CURRENT SENSITIVE USES
Schools K-12, 1,000 ft.
Daycare, 600 ft.
Community Center, 600 ft.
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POTENTIAL SENSITIVE USES
ParksPlaces of WorshipResidential Zoned PropertiesHospitalsHotelsBusinesses with an ABC License RiversideCA.gov22
SENSITIVE USES BY AGENCY
HospitalYouth CenterResidential LibraryParkPlace of WorshipCommunity CenterDaycareSchoolsCity0'0'1000'0'1000'0'0'1000'1000'Corona0'600'250'0'0'0'0'1000'1000'Costa Mesa0'0'0'0'0'0'0'600'600'Jurupa Valley0'0'0'600'600'0'600'600'600'Long Beach0'600'0'600'0'600'600'600'600'Moreno Valley0'1000'0'0'1000'1000'1000'1000'1000'Perris0'600'600'0'6000'0'600'600'San Bernardino0'0'1000'0'1000'0'0'600'1000'Santa Ana0'600'0'0'0'0'0'600'600'West Hollywood0'0'00'0'0'600'600'600'Riverside21 22 3/13/2025
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RESIDENTIAL ZONES
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ABC LICENSE COMPATIBILITY
Prohibits a cannabis licensee from selling alcohol or tobacco on or at any premises licensed by ABCA “CCB” and ABC Business shall not have a Common Access PointThe code also prohibits drinks or products from one business type being passed to another if they share a common wall.23 24 3/13/2025
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MINIMUM DISTANCE BETWEEN CCBS
Minimum Distance between CCBsCityNoneCoronaNoneCosta Mesa1000 feetLong Beach600 feetMoreno ValleyNonePerrisNoneSan Bernardino500 feetSanta AnaNoneWest HollywoodNoneRiverside RiversideCA.gov26
CONCENTRATION
Maximum Number of Permits Per Ward
City of Los AngelesNo Limit at StartConcentration ConcernsEstablished Limit In AreasCity of RiversideNo Limit CurrentlyConcentration ConcernsStaff Recommends Establishment of a one per ward Limit25 26 3/13/2025
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CONCENTRATION
AreaPermit to Population RatioPopulationMaximum PermitsCity39.96 mi²13,430161,161 12Corona15.81 mi²3,096108,354 35Costa Mesa43.51 mi²15,332107,321 7Jurupa Valley50.7 mi²13,878444,095 32Long Beach51.51 mi²8,568214,196 25Moreno Valley94.98 mi²2,09654,500 26Palm Springs31.68 mi²N/A80,603 No LimitPerris78.15 mi²13,065222,101 17San Bernardino27.52 mi²10,343310,304 30Santa Ana1.88 mi²4,29434,349 8West Hollywood77.99 mi²22,799319,190 14Riverside RiversideCA.gov28
CLEAN UP ITEMS
Resubmittal Process for Zoning FailureFailure to perform in Phase 2, Step 2.327 28 3/13/2025
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CLEAN UP ITEMS
CCB Permit IssuedNew Sensitive UseAnnual RenewalPotential IssueRecommendation: Add an exception for the renewal of an established cannabis business to not subject to the minimum separation distances to sensitive uses established after the CCB Permit was operationalAnnual Renewal ProcessCCB Permit IssuedNew Sensitive UseAnnual Renewal exemptionPermit Renewed RiversideCA.gov30
SUMMARY
Reduce the total number of permits from 14 to seven
Reduce the total number of permits from 14 to seven
Establish a one permit per ward limit
Establish a one permit per ward limit
Establish Minimum Distance between Cannabis Storefronts: 1,000 feet Establish Minimum Distance between Cannabis Storefronts: 1,000 feet Establish Requirements to comply with ABC rules
Establish Requirements to comply with ABC rules
New Sensitive Use: Parks within 600 feet
New Sensitive Use: Parks within 600 feet Avoid CCB Permit ConcentrationAvoid CCB Permit Concentration29 30 3/13/2025
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Strategic Priority 2 – Community Well-Being•Goal 2.4– Support programs and innovations that enhance communitysafety, encourage neighborhood engagement, and build public trust.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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•A Reduction in the number of permits from 14 to seven could result in a reduction of projected revenue projections.FISCAL IMPACTFY28-29FY27-28FY26-27FY25-26FY24-25$ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 500,000 Budgeted$ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 250,000 Proposed$ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 250,000 Revenue Loss31 32 3/13/2025
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Staff Recommends City Council: 1. Adopt a Resolution postponing the permitting process under RMC 5.77.120 for an additional 30 days; and2. Direct staff to draft an Ordinance amending the RMC to include the following items:a. Amend Section 5.77.100.C to reduce the maximum number ofPermits from 14 to seven, with one Permit maximum per ward.b. Amend Section 5.77.270.A a requirement to operate with the fullownership/team structure as submitted for a minimum of one yearbefore any sale or ownership transfer is considered.RECOMMENDATIONS RiversideCA.gov34
c. Amend Section 5.77.270.A.3 adding language to require the new ownerto score equal to or higher than the current permittee/owner.d. Add Section 5.77.320.A.4 to maintain a minimum distance of 1,000 feetbetween Storefront Retail Commercial Cannabis Business (CCB) Permits.e. Add Section 5.77.320.A.5 to require compatibility with allAlcoholic Beverage Control (ABC) rules and regulations to ensure thelocation and design does not render the previously approved ABCbusiness noncompliant.RECOMMENDATIONS33 34 3/13/2025
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RECOMMENDATIONSf. Amend Section 5.77.320.B.3.d to add A public and private park (600 feet).g. Add Section 5.77.320.B.4.c a renewal for an established cannabis businessis not required to meet the minimum separation distances to sensitive usesafter the CCB Permittee was established.h. Amend Section 5.77.340.D to require a permitted cannabis business toprovide a current ownership register to the City Manager for review onApril 15 and December 15 of each year.
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3. Direct Staff to draft a Resolution to amend the Storefront RetailCommercial Cannabis Business Permit Procedure Guidelines andApplication Review Criteria to include:a. Amend Step 2.2 to clarify the failure to meet Zoning VerificationRequirements requires a full resubmittal as described in Step 2.1.ii.a.b. Amend Step 2.3 to clarify if an applicant fails to meet the submittaldeadline for any of the processes detailed in Step 2.3, the applicantshall be deemed to have forfeited the Storefront Retail CCBapplication and any right to a Storefront Retail CCB permit.RECOMMENDATIONS35 36 3/13/2025
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4. Provide Direction on the following items:a. Consider transfer of sales to equity qualified businesses.b. Prohibit transfers of CCB Permits.c. Amend the final authority to approve or deny the transfer process to theCity Council.DIRECTION/DISCUSSION RiversideCA.gov38
d. Consider amending the Zoning Code to prohibit CCB permits inPlacemaking or Specialty Zone/Areas (i.e. Arts and Culture District,Arlington Village, and Midtown)e. Review Residential Zoned Properties as a sensitive use andcorresponding minimum separation distance.DIRECTION/DISCUSSION37 38