San Jose City Council
June 13, 2023

[External Email]
FW: 6/12/23 Council Meeting / Agenda Item 4.1 - Cannabis Regulatory Program (Written Public Comment)
City Clerk <[email protected]>
Tue 6/13/2023 7:45 AM
To:Agendadesk <[email protected]>

From: Fernando E. Alvarez >
Sent: Tuesday, June 13, 2023 7:32 AM
To: City Clerk <[email protected]>
Cc: Fernando E. Alvarez <[email protected]>
Subject: 6/12/23 Council Meeng / Agenda Item 4.1 - Cannabis Regulatory Program (Wrien Public Comment)

Dear Honorable Mayor and City Council,

My name is Fernando Esequiel Alvarez, a San Jose resident, former 20+ year tech professional, and Founder of VaporTent Lounges, LLC - State Licensed Cannabis & Social Consumpon Events — California's Department of Cannabis Control LIC # CEO14-0000005-LIC.

I want to thank the city for being forward-thinking and innovave toward the Cannabis industry over the years, such as allowing dispensaries to operate four years before legalizaon, creang a cannabis equity assistance program, and approving addional retail locaons throughout San Jose.

However, I sincerely believe there is a significant opportunity the city is overlooking, and that is to embrace cannabis tourism and allow for State Licensed Cannabis & Social Consumpon Events. Now, when I say "Cannabis Events', I'm not talking about the large-scale sgmazed Fest, Con, or Expo. I envision small-scale social consumpon events that would posion our small businesses and local arts community to take full advantage of the emerging market of Cannabis Tourism, as consumers are interested in parcipang in licensed cannabis acvies produced in a public or social seng.

VaporTent Lounges, LLC - Company Advocacy: (2014 - 2023)

In 2014, aer witnessing how forward-thinking & innovave San Jose was toward Cannabis. That was the creave spark with which I founded VaporTent Lounges and told myself, "I'm geng into the cannabis industry!" From 2014 through 2017, I produced a series of private social consumpon events throughout the city at venues such as Cine Arts Santana Row, The Improv, Jazz Beyond, The Tech Interacve & the San Jose Museum of Art, to name a few.

In 2018, California's Department of Cannabis Control created a licensing structure regarding commercial cannabis acvies, including "Temporary Cannabis Events," and VaporTent Lounges was one of the first businesses licensed by the State as a "Cannabis Event Organizer." I received my temporary license (CEO14-18-00000026-TEMP) in February and my annual license (CEO14-0000005-LIC) in May 2018.

Once I became licensed by the State, I no longer produced private events and focused solely on Social Consumpon Policy.

November 2018: Leafly arcle - Governor OK's Way More Cannabis Events. hps://www.leafly.com/news/polics/california-governor-oks-way-more-cannabis-events

In 2018, the Cannabis Publicaon Leafly interviewed me for the 2018 arcle highlighng the passing of Assembly Bill 2020. The bill expanded the type and number of venues that can host licensed cannabis events. As of January 2019, State-Licensed Cannabis Event Organizers can host Licensed Social Consumpon events at public and private venues, outdoor spaces, art galleries, museums, movie theaters, performing arts theaters, parks, and urban streets. Essenally, any venue local officials allow them to be held.

Quotes from the 2018 Leafly Arcle:
"Alvarez said he's approaching museums and jazz fesvals in the San Francisco Bay Area and envisions highly curated events for smaller audiences, a fracon of the size of The Emerald Cup or High Times' Cannabis Cups." "The possibilies are endless," Fernando E. Alvarez, Founder of VaporTent Lounges, said. "Brand-name comedians want to work with us. Grammy Award-winning arsts want to work with us. Execuve chefs want to work with us. We're just trying to land a venue."
"Cannabis events support local economies and small businesses. The passing of AB2020 remedies that gap by allowing local governments to approve temporary cannabis event licenses at any venue they wish to permit." - Assembly Member Quirk, Author of AB2020.
2019 January - SF & SJ Consideraon for Cannabis Events.

San Jose & San Francisco were simultaneously interested in what the event license could do. In San Jose, a memo was draed by former councilmembers Peralez & Carrasco to discuss the opportunity for San Jose. Unfortunately, the topic did not earn enough consideraon for that year's priority seng.

With San Francisco, I was invited to work with their Entertainment Commission, Office of Cannabis, Board of Supervisors, Cannabis Legalizaon Task Force, and the Chamber of Commerce, contribung to the development & passing of their Cannabis Event Pilot Program. In August 2019, in a historic first, San Francisco's "Outside Lands" Music Fesval was the first in the United States to have legal sales & consumpon of cannabis.
(See Slide: San Francisco Adopts Cannabis Event Ordinance - Aug 2019) That experience and lessons learned in San Francisco gave me the confidence to take the entrepreneurial leap. I le my day job to focus 100% of my me on expanding opportunies in California. Unfortunately, shortly aer that, the pandemic hit, and I've since entered the gig economy as a ridesharing driver to keep the company & vision alive.

Stockton, CA. 2020 - 2023 (See Slide: Stockton Adopts Cannabis Event Ordinance - July 2020) June 2020: Stockton adopted ordinance #2020-06-23-1103, amending Title 12, Chapter 12.72, special events related to temporary cannabis events. Signed by the Mayor of Stockton, Michael D. Tubbs, the program was effecve 7/23/2020.

This is a deeply personal achievement for me because not only is it my city of birth. It is the city that arrested my family due to the war on drugs, and it was those arrests in 1983 that sent me to San Jose as a kid to meet & live with my father. So, to come full circle and successfully advocate city officials about the economic, entertainment, and tourism opportunies that social consumpon events would bring to the city is deeply personal for me.

September 2022 - Inagural Event Producon: As soon as the pandemic regulaons opened up, we designed a series of "Proof of Concept" collaborave social consumpon events with businesses in Stockton's downtown core. These events include a 49er Monday Night Football NFL Watch Party, an NBA G-League Basketball Game with courtside seats, and blockbuster movie releases at the Stockton City Center IMAX theater, aka Regal Cinemas. Unfortunately, local crime news of a serial killer had gained naonal aenon, and out of an abundance of cauon from myself and concern from guests & sponsors, I decided to cancel those inaugural events.
2021 San Jose, CA - Spotlight Arcle: San Jose Entrepreneur Pushes City to Allow Cannabis Events. hps://sanjosespotlight.com/san-jose-entrepreneur-pushes-city-to-allow-cannabis-events/ "A San Jose entrepreneur wants the city to expand its horizons and allow special events at museums, concerts, and comedy clubs where adults can smoke, drink or eat cannabis products. Fernando Alvarez, the founder of VaporTent Lounges, said the city is missing out on an economic policy he's helped other California cies cra. One that allows organizers to host special events where people can sell and consume Cannabis."
Sco Knies, (former) execuve director of the San Jose Downtown Associaon, said his organizaon tried to organize a cannabis event at the 2020 Music in the Park Fesval. Airfield Supply & Co. was going to sponsor the event, but the pandemic killed the plan. Knies told San José Spotlight, "It may take me to get the city to develop a policy, but it's worth working on." Sean Kali-rai, a cannabis lobbyist and founder of the Silicon Valley Cannabis Alliance, said, "I think we should be seriously looking at consumpon lounges and these types of licensed, professional events in sanconed areas," Kali-rai told San José Spotlight. "Allow consenng adults to do what they voted for under Prop. 64." Like Alvarez, Kali-rai suggests dollars from cannabis tourism and events could help revitalize the downtown area.
2023 Sacramento, CA - Sacramento to submit Cannabis Event Proposal to City Council (July 2023) hps://sacramentocityexpress.com/2023/05/02/see-how-the-city-is-gathering-feedback-on-social-cannabis-consumpon/ Sacramento's Office of Cannabis Management (OCM) met with local business organizaons to hear their thoughts on possible social consumpon scenarios, such as lounges, cafes, and temporary cannabis events. "The workshops gave parcipants a glimpse on what social consumpon of cannabis looks like in other cies and what it could look like if approved in Sacramento," said Davina Smith, head of the Office of Cannabis Management Working directly with Sacramento's Office of Cannabis Management, I provided them with an overview of best pracces and standards established by the State of California regarding Cannabis & social consumpon events. If considered favorable by the city council, this would be my 4th successful jurisdicon in developing their respecve social consumpon policy.

The Data & Market Validaon vs. Sgma: (See Slide: Market Validaon - Cannabis Tourism is on the Rise)

I invite open dialog to review the data and market validaon. There is significant, well-documented interest in consumers parcipang in cannabis acvies produced in a public or social seng vs. opposing opinions based on Sgma that can prevent progress.

I'd also like to reference Gov. Newsom's September 18th, 2022, press release calling on legislators and other policymakers to redouble efforts to tackle barriers to access while announcing that he had signed several measures to strengthen California’s cannabis laws, expand the legal cannabis market and redress the harms of cannabis prohibion. (See Slide: Governor Newsom Strengthens California Cannabis Laws - Sept 2022) Addionally, I'd like to reference one of the Cannabis Event Bills signed by Governor Newsom, AB 2210 AB2210 expands the opportunity to host Licensed Cannabis Events. It clarifies that Hotels, Bars, and Restaurants or any venue with an alcohol license are eligible to host Social Consumpon Cannabis Events, provided that the State Licensed event organizer meets all the current protocols outlined under exisng law.

This is a game-changer as it expands eligible venues that can host licensed Cannabis Events.

Recommended Next Steps:

As we are looking for innovave ways to build a more vibrant San Jose, the Capital of Silicon Valley, has the opportunity not only to support one of their cannabis entrepreneurs that has demonstrated leadership in this space. We also have the chance to make San Jose a Global Tourism Desnaon for State Licensed Cannabis & Social Consumpon Events focusing on Local Arts, Culture & Educaon. I want to highlight again how policy consideraon would prepare our small businesses & local arts community to take full advantage of the emerging market of cannabis tourism.

Since the State Applicaon requires wrien local approval before issuing a Temporary Event License, consider a "Cannabis & Social Consumpon Event" pilot program authorizing the City of San José Office of Cultural Affairs - Special Events a formal applicaon and review process to evaluate requests for approval and confirm that local rules are followed before the issuance of any wrien authorizaon.

Working under the Department of Cannabis Control - Cannabis Event Regulaons, VaporTent Lounges will collaborate with the Office of Cultural Affairs to design & curate an Adult Only, 21+ State-Licensed Designated Sales & Consumpon area into the overall venue premises such as a closed street, parking lot, or pao or park. Think "Al Fresco" dining meets Cannabis + State Regulaons.

VaporTent Lounges is in our 10th year of operaon and our 6th year of being licensed by the State. I'm happy to connue developing Social Consumpon policies for other cies in California. As a small business, we will embrace every opportunity that presents itself.

However, the spark that created the idea was to execute our vision here, in our home of San Jose, CA, The Capital of Silicon Valley.

All that said, even if we decide not to move forward with any social consumpon policy consideraon, it's important to highlight we will only be encouraging the illicit cannabis event market, as mulple unlicensed & unregulated pop-up events are already being produced in our city.

With our resume and experience in this space... If not us now, then who and when?

For a detailed online version of our proposal, including slide references, please visit hps://vaportent.xtensio.com/SanJose2023.

Sincerely,

Fernando E. Alvarez