EMBARC SAN BRUNO
APPLICATIONS
CITY COUNCIL MEETING
MAY 14, 2024
ELISEO AMAYA, PETER GILLI
COMMUNITY DEVELOPMENT
AGENDA
I. Objective
II. Background
III. Application
IV. Tonight’s Recommended Action
V. Questions
2 OBJECTIVE
• Hold Public Hearing
• Consider Adoption of a Resolution Approving an Architectural Review Permit and Conditional Use Permit to Establish and Operate a Cannabis Retail Store at 120-124 El Camino Real • Consider Adoption of a Resolution Authorizing the Installation of a Loading Zone Located in Front of 120 El Camino Real
3 BACKGROUND
4 FY23-24
5 City Council Priority Focus Area
Grow City Revenues to Assure On-Going Fiscal Stability and Economic Vitality
Strategic Initiative
9.1 Cannabis Regulations and Permitting
COMMERCIAL CANNABIS REGULATIONS
October 21, 2022
• Council adopted Commercial Cannabis Ordinances
• Council adopted Application Procedures and Guidelines for Commercial Cannabis Operator Permits (CCOP)
April 11, 2023
• Council adopted amended Commercial Cannabis Ordinance 6 APPLICATION PHASES
• Phase I – Determination of Eligibility
• Phase II – Application Completeness Determination
• Phase III – Application Evaluation and Scoring
• Phase IV – Selection by the City Council (August 22, 2023) • Phase V – City Final Determination and Issuance of CCOP License (April 16, 2024, Planning Commission Public Hearing) 7 APPLICATION
8 EMBARC
SAN BRUNO
Hours of Operation:
9 AM to 9 PM seven
days a week
(cannabis retail
storefront & deliveries
to customers)
9 Located at 120-124 El Camino Real
PROJECT
SITE PLAN
Improvements:
Renovate Interior/Exterior
Shorten Driveway
4 Parking Spaces
Bike Rack
Trash Enclosure
22-foot Loading Zone
10 EXTERIOR IMPROVEMENTS
11 Existing Proposed
NEXT STEPS
12 Upcoming Milestones
City Council Public Hearing – final action on CUP
City Manager issues Commercial Cannabis Operators Permit (CCOP) Applicant submits Building Permits
City issues Building Permits (Summer 2024)
City issues Certificate of Occupancy (Potentially end of 2024)
COMPLIANCE
13 • Annual Renewal
• The city manager has authority to decide on renewals and may impose additional conditions.
• Renewal applications can be rejected for reasons such as late submission, permit suspension or revocation, non-compliance with regulations or conditions of approval, failure to renew state license, or violations of state or local laws.
CEQA EXEMPTION
14 • Proposed commercial cannabis retail store will not result in a significant environmental impact pursuant to the California Environmental Quality Act (CEQA), as
outlined in CEQA Guidelines Section 15301.
REVENUE PROJECTIONS
15 • Cannabis Business Tax: February 28, 2023, Council increased the tax rate to 6%. Budget is projecting $700,000 in cannabis tax revenue for FY24-25
o Will adjust projections in future budget years based on actual sales
• City Share of Sales Tax: 0.95% of Sales Tax + 0.50%
Transactions & Use Tax (Measure G) remitted to city
• Community Investment Fund: Embarc will designate an
additional 1% of gross receipts to this fund for community benefits TONIGHT’S
RECOMMENDED
ACTION
16 TONIGHT’S RECOMMENDED
ACTION
17 • Receive Applicant Presentation
• Hold Public Hearing
• Consider Adoption of a Resolution Approving an Architectural Review Permit and Conditional Use Permit to Establish and Operate a Cannabis Retail Store at 120-124 El Camino Real • Consider Adoption of a Resolution Authorizing the Installation of a Loading Zone Located in Front of 120 El Camino Real
18 San Bruno City Council MeetingMay 14, 2024
2 •Currently operating in 15 California communities, including in nearby Redwood City and Alameda•Consistently first-to-market, demonstrating a commitment to execution•Opened five new locations since January 1, 2024•Paid more than $15m in taxes and $10m in wages last year•Proven and profitable to ensure staying power—on track to be one of California’s largest cannabis retail operators Meet EmbarcA Proven Retail Operator
3 Leaders within the industry and beyond:More than a decade of cannabis regulatory and policy experience Retail team led by former CEO of the Gap
Security overseen by former law enforcement officer with significant cannabis security experience A proud Union partner and significant employer:Meaningful employer with approx. 400 employees Partner to the UFCW across all stores statewide
Member of the UFCW’s Apprenticeship Task Force
Meet EmbarcA Proven Team
4 •Fully compliant location per the City’s ordinance and code•Standalone building—looks like a palace but functions as a fortress•100 feet from the nearest bus stop for accessibility•Site plan features bicycle parking•Rehabilitation of an underutilized parcel (vacant for approx. 5 years) into a thriving retail store 120–124 El Camino RealA Fully Vetted Location
5 A History of RedevelopmentA proven track record of transforming underutilized sites into attractive and highly secure cannabis retail storefronts.
SOUTH LAKE TAHOE BEFORE
SOUTH LAKE TAHOE AFTER
VENTURA INTERIOR RENOVATIONSFONTANA BEFORE
FONTANA AFTER
6 Adds 24/7 security and surveillance measures to the area•Onsite patrolling security guards and offsite live monitoring including direct feed•Will include the installation of dozens of security cameras Repairs and improvements to both the interior and exterior of the site•Addition of lighting, landscaping, and more to beautify the parcel•Security to proactively address vagrancy, loitering, and other perceived issues in the vicinity Includes a voluntary Good Neighbor Policy to address a variety of considerations•Voluntary street team for regular beautification•Employees provided paid volunteerism to ensure we are contributing to the community Neighborhood CompatibilityThe Right Neighborhood Partner 7 Supported by Many NeighborsLocal Partnership
8 The Right Community PartnerLocalism at the Forefront of Community Investment Community Benefits & Investment Plan:Empowers local leaders to drive community engagement through a Community Advisory Board Addresses needs through our Community Investment Fund, which receives 1% of gross receipts in perpetuity Provides 40 hours of paid volunteerism per team member each year to roll up our sleeves in the community Deploys a third-party, accredited youth drug prevention and education campaign to address one of the community’s primary concerns through non-profit partners WHAT EMBARC & ALL RESPONSIBLE OPERATORS ARE DOING:Paid staff volunteerism Executive volunteerism Community education Informational workshops Non-profit partnership events Veteran discount Addiction resourcesSenior outreach Scholarship program Financial literacy workshops Local business partnerships Compassionate use program Senior discount Resident discount B2B discounts Service industry discountSocial equity partnershipsLocal sourcing and cross promotions
9 Pro Forma -Revenue Scenario Y1
Pro Forma Target City Revenue100% $1,491,34375% $1,118,50760% $896,605 Addressable Market•10 mi population –1,136,364 •5 mi population –195,047•SFO 47mm passengers 10 Thank you!