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Santa Monica City Council
June 13, 2023

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Written Comments
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June 13, 2023
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Santa Monica City Council
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Text extracted from the city's file for reading and search. Open the original on santamonicacityca.iqm2.com. That file is the official record.

Mental health: Studies link marijuana use to depression, anxiety, suicide planning, and psychotic episodes. It is not known, however, if marijuana use is the cause of these conditions.

Athletic Performance: Research shows that marijuana affects timing, movement, and coordination, which can harm athletic performance.

Driving: People who drive under the influence of marijuana can experience dangerous effects:
slower reactions, lane weaving, decreased coordination, and difficulty reacting to signals and sounds on the road.

Baby’s health and development: Marijuana use during pregnancy may cause fetal growth restriction, premature birth, stillbirth, and problems with brain development, resulting in hyperactivity and poor cognitive function. Tetrahydrocannabinol (THC) and other chemicals from marijuana can also be passed from a mother to her baby through breast milk, further impacting a child’s healthy development.

Daily life: Using marijuana can affect performance and how well people do in life. Research shows that people who use marijuana are more likely to have relationship problems, worse educational outcomes, lower career achievement, and reduced life satisfaction.” From: Peter Borresen
To: councilmtgitems
Subject: Public comment. June 13th meeting. Item 7a.

Date: Monday, June 12, 2023 10:28:34 AM

EXTERNAL
Dear City Council,
Our city should demand large and assertive health warnings regarding the risks caused by marijuana, at the point of sale, on storefronts, and on all retail packaging.

And the city should ban the sale of marijuana products that encourage under-age use, such as flavored products, and candy-style packaging – just as California has banned flavored tobacco products.

The National Institutes of Health has stated:
“…early, frequent cannabis use is associated with an increased risk of developing schizophrenia…”
It is surely more than coincidental that the legalization of marijuana has coincided with the seeming increase in mental illness and homelessness on our streets.

For every dollar our city will take from marijuana taxes, far more may be lost from lessened tourism due to the homeless crisis in our city, and far more may have to be spent on homelessness, crime and mental health services.

Furthermore, peer-reviewed studies have shown other serious and very real harms from marijuana use. The US Department of Health and Human Services says:
“Brain health: Marijuana can cause permanent IQ loss of as much as 8 points when people start using it at a young age. These IQ points do not come back, even after quitting marijuana.

We require health warnings for tobacco, but not marijuana, which is absurd.

Our city should demand LARGE and ASSERTIVE health warnings regarding all the above harms, both at the point of sale, on storefronts, and on all retail packaging. And the city should ban the sale of flavored products, and candy-style packaging.

To not do so is to commit a grievous harm on our children and society. (And a recent National Academy of Sciences study finds that claims that marijuana use reduces opioid deaths are "spurious".)
Peter Borresen,
Santa Monica.

From: Joshua Canter
To: councilmtgitems
Subject: Cannabis License
Date: Monday, June 12, 2023 12:46:56 PM

EXTERNAL
Hello,
As a homeowner and voter in Santa Monica, I strongly recommend you vote to allow adult-use cannabis business licenses within the city of Santa Monica.

While I support the freedom of choice within adults, I do ask that you severely limited the number of licenses, following in the same guidance as medicinal cannabis.

We have clearly seen the economic benefit to other cities, with none of the negative impact some people have associated with
Again, please support adult-use cannabis business licenses.

Thank you,
Joshua Canter
From: Howard Keum
To: councilmtgitems
Cc: Tony Kim; Phil Brock; Christine Parra; Jesse Zwick; Caroline Torosis; Oscar de la Torre; Erin Carachilo; [email protected]
Subject: Study Session Letter Staff Report 5674 (Agenda 7A) to Councilmembers from Santa Monica’s Cannabis Dispensary Operator CPC Compassion, Inc.

Date: Monday, June 12, 2023 2:05:05 PM
Attachments: image001.png

EXTERNAL
Dear City Councilmembers,
I am writing to you as one of the managers and owners of CPC Compassion, Inc., a minority-owned and womanrun medical cannabis dispensary located at 925 Wilshire Blvd. I aim to present hard data to eliminate any speculation and provide valuable insights to help the city make informed decisions.

Regarding the six items outlined in Staff Report 5674, Agenda 7A for Tuesday’s June 13, 2023, meeting (Adult Use Cannabis Study), we have data that can greatly assist Santa Monica City in making the best-educated decision on this matter. I will address key topics below:

1. Should consumer access to legal adult-use cannabis in Santa Monica be permitted, or should the City maintain the restriction of medicinal-only cannabis?
We face the risk of going out of business if we are not allowed to convert to Adult-Use. Our store faces a significant disadvantage compared to nearby adult-use options, such as 30 adult-use delivery services and AdultUse stores in Venice Beach, Brentwood, and West LA that already serve Santa Monica. No other store within 30 minutes has the same restrictions of Medical-Only that we do. We are the only store who is not Adult-Use in the entire Los Angeles area. Due to the burdensome process and associated costs of obtaining a medical recommendation card, our store at 925 Wilshire has witnessed 80-90% of potential customers walking out when they discover it is not Adult-Use. Even with substantial coupon codes (up to 50% off), customers opt for adultuse alternatives in Venice & Brentwood/West LA instead versus coming to our store. The current Santa Monica Medical-Only ordinance, established in 2015-2016 when the entire state of CA was medical only, fails to account for the current landscape where adult-use is prevalent. Presently, approximately 30 different adult-use delivery services cater to Santa Monica residents, while our store is limited to addressing only 5-10% of the customer base. In the last full week, our store averaged only about 10 customers per day. We are losing all Santa Monica cannabis revenues to outside adult-use delivery services and neighboring adult-use retailers in Venice Beach and Brentwood/West LA. Santa Monica locals are simply sending their business away to businesses right outside of Santa Monica.

2. What types of cannabis uses should be allowed?
A) Converting the two medical-only stores to Adult-Use is crucial for the survival of our businesses. Our store location on 925 Wilshire, has already invested 6 years and over $1,000,000 in dead rent, operations, and buildout, only to attract about 10 customers per day under the highly restrictive Medical Only setup. Forcing the two stores to remain Medical-Only will cause over $1,000,000 losses per year and eventual failure.

B) Allowing the current two retail operators to obtain a Type-11 Distributor License is important. Presently, we are unnecessarily compelled to pay and use third-party distributors at considerable costs (typically charge 15- 20% of gross value) since we cannot directly receive products from cultivators and other manufacturers of finished products. Retail operators could save costs by directly purchasing products from cultivation and manufacturing companies instead of relying on outside distributors. This is an unnecessary cost placed on our stores.

3. Should the City set a limit to the number of retailers and other uses? Please let the hard data make this decision, not guesswork. There is currently no justification for having more stores in Santa Monica. As the sole operator in Santa Monica, in our last full operating week, we only had on average about 10 customers per day. That is approximately only 1 Customer for every hour of operation. It would be prudent to wait and assess if the demand for Adult-Use cannabis in Santa Monica exceeds the capacity of the two existing store operators to handle it. Understanding the actual demand makes more sense than guessing and subjecting Santa Monica to a time-consuming application and appeals process that took over 8 years from the creation of the ordinance to our opening this year. Having additional stores will not increase the Santa Monica market demand. We are already seeing very low demand due to the unfair advantages that neighboring Adult-Use stores and the approximately 30 Adult-Use delivery businesses already servicing the Santa Monica residents are currently using. It would make no sense to believe that increasing the store count in Santa Monica would increase the market.

4. Should only the two medicinal cannabis retailers be allowed to expand into the adult-use market, or should the City allow new cannabis retailers?
The City needs to permit the two medical-only retailers to convert to Adult Use. If we are forced to remain medical-only, our business will inevitably shut down. The Medical-Only retail model was established in 2015- 2016 when the entire state of CA was medical-only. Since then, the entire state and neighboring cities have transitioned to Adult-Use. Every single retail store in the Los Angeles area has an Adult-Use permit. If we are not allowed to convert to the state-wide industry standard, we will fail.

5. In which areas of the City should cannabis uses be allowed to operate? We have gone through significant financial hardships, paying above-market rents and spending a substantial amount of money (over $1,000,000) to reach this point. This was necessary because we were required to find a location that is not within 600 feet of sensitive areas such as medical treatment centers, parks, or schools, and it had to be on Wilshire or Santa Monica Blvd. We went through a painstaking process to secure a suitable location and were forced to accept significantly higher rental rates. Therefore, it would be appropriate to maintain the current designated areas for cannabis operations.

6. Which land uses, if any, should be recognized as sensitive uses requiring a distance buffer from cannabis uses beyond state requirements?
The state of California's Department of Cannabis Regulations has already established well-thought-out guidelines for sensitive areas. Considering that the two store operators have already secured their locations, it is unclear why the city should invest time and effort in reevaluating this matter unless we specifically request it. We are already committed to our chosen locations and adhering to the state's requirements. --
I thought it would be important for CPC Compassion Inc (Local – Santa Monica) give the City Councilmembers and Staff hard facts as to what is really going on in Santa Monica versus the opinion or hearsay of others. If you have any additional questions, please feel free to call me directly at 917-657-6011 or email at [email protected].

Cc: Tony Kim (Principal Planner Santa Monica), Phil Brock, Christine Parra, Jesse Zwick, Caroline Torosis, Oscar de la Torre
Many thanks,
Howard Keum
Howard Keum
Co-Founder
Mobile: +1.917.657.6011
Email: [email protected]
www.calyxpeak.com
www.localcannabiscompany.com
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From: Paul Song
To: councilmtgitems
Cc: Phil Brock; Christine Parra; Jesse Zwick; Caroline Torosis; Oscar de la Torre; Tony Kim Subject: Regarding Staff Report 564
Date: Monday, June 12, 2023 9:25:37 PM

EXTERNAL
Dear City Councilmembers,
I am writing to you as the President of CPC Compassion Inc, also known as Local Cannabis, located at 925 Wilshire Blvd. Today, I would like to provide essential insights into the operations of Santa Monica's first functional dispensary. My comments are in reference to Staff Report 5674 (Adult Use Cannabis Study) for Agenda item 7A of the upcoming June 23, 2023 meeting.

Despite being awarded one of two licenses (based on the overall merit and quality of our application) many years ago, our opening was significantly delayed due to unsuccessful appeals by disgruntled applicants and a very difficult overall permitting/inspection process. As a result, we have invested over $1,200,000 in operational costs and rent over the past six years while adhering to the ordinances established during that time.

As a Medical-Only store, our establishment is experiencing a significant disadvantage compared to over 100 nearby Adult-Use delivery and storefronts in neighboring districts. These businesses are not bound by the same restrictions that compel our customers to obtain a medical recommendation card. This requirement is not only costly and timeconsuming but also out of sync with current cannabis regulations in California. However, under the Medical-Only platform, our business is on the brink of failure. In the past week, we have averaged just 10 customers per day, which is clearly unsustainable.

A concerning trend we have observed is that approximately 80-90% of customers who walk into our store leave upon discovering that we are Medical-Only. This means that a significant portion of Santa Monica's local sales revenue is now flowing to businesses located outside of our city. We are witnessing the redirection of revenues and tax dollars to neighborhoods that have no connection to Santa Monica, depriving our community of much-needed economic support.

Additionally, I would like to address the potential consideration of allowing additional cannabis stores in Santa Monica. I strongly advise against speculation or assumptions about the market and instead encourage the use of factual evidence. As previously mentioned, our store currently serves an average of 10 customers per day. Based on this data, there is no justifiable reason to approve more stores in Santa Monica until concrete facts indicate otherwise.

I implore the City of Santa Monica to base its decisions on objective facts and data. It is crucial to ensure fairness and equal treatment for all cannabis businesses operating within our jurisdiction. By doing so, we can foster an environment that supports evidence-based decision making, promoting the success and sustainability of local businesses while maximizing revenue and tax benefits for our community.

Thank you for your attention to this matter. I trust that you will consider the issues raised and take the necessary actions to rectify the disparities faced by Medical-Only establishments like ours. Your commitment to informed decision making will undoubtedly contribute to the progress and prosperity of Santa Monica.

Thank you,
Paul Y. Song
Santa Monica Resident

From: Paul Greaney
To: councilmtgitems
Subject: Cannabis Dispensaries
Date: Tuesday, June 13, 2023 6:42:22 AM

EXTERNAL
Dar City Councilmembers,
As a concerned resident of Santa Monica, I would like to share my thoughts regarding Agenda Item 7A (Adult Use Cannabis Study) scheduled for the June 13th, 2023 meeting.

Firstly, I believe it is crucial for Santa Monica to catch up with the times. There seems to be no valid reason why the two existing stores should not be allowed to convert to Adult-Use. By enabling this conversion, we can align our city's cannabis regulations with the modern standards upheld by other nearby jurisdictions.

Furthermore, I would like to draw attention to the potential consequences of adding more stores at this stage. I have personally observed the sluggish business activity at the store located at 925 Wilshire Blvd (Local Cannabis), where the customer flow appears to be minimal. In light of this observation, I urge caution in contemplating the approval of new dispensaries. It is essential that we first gauge the success and demand generated by the current Adult-Use conversion before making any decisions about further expansion.

I strongly advocate for Santa Monica to transition to Adult-Use cannabis sales. Only by doing so can we accurately assess the market demand and gauge the level of activity it will generate. It is imperative that we base our decisions on factual data rather than speculation when considering the addition of more dispensaries.

Thank you for your attention to this matter, and I urge you to take my comments into serious consideration. Let us ensure that Santa Monica remains competitive and responsive to the needs of our community.

Paul Greaney

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