Adopt an Ordinance Option Amending Title 5, Chapter 5.98, Section 5.98.020, Chapter
5.99, Section 5.99.030, Chapter 5.100, Sections 5.100.080, 5.100.310; & Title 16, Chapter
16.20, Section 16.20.020 & Chapter 16.80, Section 16.80.195 of the Stockton Municipal Code Relating to the Cannabis Regulatory Program Agenda Item 16.1
City Council Meeting
March 1, 2022
Cannabis Program
Ordinance Amendment Goals
• Align program with best practices
• Implement equity assessment recommendation
and address equity program gaps
• Clean‐up and align Code language for consistent
Code application
• Establish balance between geography, resident
quality of life, desired business types, and
economic development
• Improves business license record‐keeping and
timely collection of large sums of tax revenues.
Policy Update
Considerations
Overconcentration concern
Location Waiver seen as arbitrary rather
than flexible
Distance between cannabis retail
establishments
Public safety considerations
Lack of applications for businesses other
than Retail Storefront (dispensary)
Equity concerns: length of residency,
applicant eligibility, procedures
November 8, 2016
Measures P & Q
Passed
June 27, 2017
Senate Bill 94
November 7, 2017
Ord. 2017‐11‐07‐1502
Adopted
2018 – 2019
Updates to Cannabis
Program
June 23, 2020
Cannabis Temporar y
Events allowed
2021
Cannabis Equity Grant
& Assessment
February 2, 2021
Ordinance
Amendment Initiated
March 17, 2021
Legislative Committee
Study Session #1
May 3, 2021
Equity Community
Meeting
June 23, 2021
Legislative Committee
Study Session #2
July 22, 2021
Planning Commission
Study Session #1
September 15, 2021
Legislative Committee
Study Session #3
September 23, 2021
Planning Commission
Study Session #2
November 18, 2021
Present Proposed
Ordinance
Amendment to PC
December 9, 2021
PC Recommended
Ordinance Option 4
TODAY
Present Ordinance
Options to City Council
Background
Cannabis Program Overview –C u r r e n t Process
Land Use
Entitlements
•B y‐Right
•A U P
•C U P
Operator's
Permit
• Building
Permit
Business
License
•F i r e Permit
Lottery
(if applicable)
Council Legislation/Environmental Committee
Direction
4 Ordinance Options:
1. Current Location Requirements with Retail Cap
2. Compilation of Feedback with Retail Cap
3. State Requirements* with Retail Separation and Cap
4. Planning Commission Recommendation
Table 2 in the Staff Report reflects the changes that
apply to all 4 options
A full summary of each option is provided in the
Recommendation Matrix (Attachment C)
Location Requirement Options
Current Option 1O p t i o n 2O p t i o n 3 Option 4 •1,006 parcels
•300’ separation
from residential
zone
•600’ separation:
•Park
•School
•Day care center
•Youth Center
•Childcare center
•Childcare
•In‐home (family
day care home)
•Religious facilities
•Drug abuse or
alcohol recovery/
treatment facility
•Location waiver
•872 parcels
•Eliminate
location waiver
•Cap on
Storefront
Retailers (max.
14)
•Same 300’ and
600’
separations
•759 parcels
•Eliminate location
waiver
•Cap on Storefront
Retailers (max. 14)
•300’ separation from
residential zone or use
•Align 600’ separation
w/ Code language for
alcohol business
location restrictions.
•600’ separation:
oPlaces of Religious
Worship (w/ “I” Zone
exemption)
oDrug abuse/alcohol
recovery/treatment
facility
•1,000’ separation
between cannabis
storefront retailers
and/or
microbusinesses w/
retail
•2,143 parcels
•Eliminate location
waiver
•Cap on Storefront
Retailers (max. 14)
•600’ separation:
•Parks
•K‐12 Schools
•Align 600’
separation
verbiage w/ Code
language for
alcohol business
location
restrictions (parks/
schools only)
•1,000’ separation
from an existing
cannabis
storefront and/or
microbusinesses
w/ retail
•634 parcels
•Retain location
waiver
•Cap on Storefront
Retailers (max. 14)
•300’ separation from
residential zone or
use
•Align 600’ separation
w/ Code language
for alcohol business
location restrictions.
•600’ separation:
oDrug abuse/alcohol
recovery/treatment
facility
•1,000’ separation:
oBetween cannabis
storefront retailers
and/or
microbusinesses w/
retail
oPlaces of Religious
Worship
Location Requirement Comparison (Table 3)
Requirement Option
1 Option
2 Option
3 Option
4 Elimination of location waiver option
300’ separation from residential zone
300’ separation from residential zone/use
600’ separation from:
Parks
K‐12 School
Day care center
Youth center
Childcare center
Child care
In‐home (family day care home)
Religious facilities
Drug abuse/alcohol recovery/treatment
facility
*
1,000’ separation between storefront
retailers and/or microbusinesses w/ a retail
component
1,000’ separation from Religious facilities
* Excludes religious facilities in IG/IL zones (for business types OTHER than storefront retail & microbusinesses w/ a retail component)
Significant Changes ‐ Applies to All Options
• Elimination of Cultivation and Volatile Manufacturing from Lottery process
• User friendly equity eligibility
• Long term equity ownership requirement
• Improvements to Lottery application process
• Allowance for approved active businesses to relocate
• 1,000 feet minimum between retail storefronts and/or
microbusinesses with a retail component
• Limit of 14 Retail Storefronts City‐wide
Planning Commission Recommendation
12/9/21
Option 4 with the following amendments:
• Limit the number of Storefront Retailers to 14 city-wide • Remove location separation exemption from churches in IL/IG zones • Increase location requirement to 1,000 feet from religious facilities for all cannabis business types
• Keep ability to grant location waivers
• Increase time for Lottery winners to submit their land use application (CUP) from 90 days to 120 days
• Clarify “at time of application” to residential zone or use location separation requirement
• Clarified that a single Use Permit approval cannot authorize multiple Operator’s Permits for the same business type
All these items are included in Option 4 (Attachment B4) Business License Tax Revenue
January 1, 2016 – June 1, 2021
Cannabis
Business Type
Business
License Tax
Rate
(% of gross
receipts)
Amount By Fiscal Year
TOTALS
2015/
2016
2016/
2017
2017/
2018
2018/
2019
2019/
2020
2020/
2021*
Retail Storefront
(dispensary) 5% $91,867 $125,220 $297,648 $662,658 $1,293,297 $1,487,599 $3,958,289 Non‐Storefront
Retail (delivery) 5% $0 $0 $0 $0 $0 $71,226 $71,226
Cultivation 5% $0 $0 $0 $0 $0 $25,224 $25,224
Distribution 1% $0 $0 $0 $0 $0 $6,028 $6,028
TOTALS $91,867 $125,220 $297,648 $662,658 $1,293,297 $1,590,077 $4,060,767 * As of
07/20/2021
Existing & Potential Businesses
If pending applications are approved, 22 cannabis businesses would exist in the City (additional by‐right uses allowed for pre‐existing businesses not included) Commercial Cannabis Business Types (open + pending)
Cultivation Delivery Microbusiness Retail Storefront Manufacturer 54 3 9 1
Existing Business/Pending Application Breakdown
Open Approved,
Not Open
Applications
Processing
Pending Submittal
or Review
1 Cultivation
(by‐right uses 1st)
5 Retail Storefront
2 Delivery
3 Cultivation
2 Retail Storefront
1 Delivery
1 Cultivation
1 Retail Storefront
1 Delivery
2 Microbusiness
1 Volatile
Manufacturer
1 Microbusiness
1 Retail Storefront
Totals
8662
Crime Statistics
Year Total Year Total
2000 122 2011 45
2001 91 2012 99
2002 100 2013 108
2003 76 2014 99
2004 100 2015 107
2005 150 2016 110
2006 141 2017 79
2007 123 2018 66
2008 114 2019 73
2009 108 2020 54
2010 71 2021 25
Cannabis‐Related
Arrests by Year
Calls for Service that Resulted in a Crime Report
Storefront Retailer
Location
Operational
Date
Grand Total
(Before /
After
Operational
Date)
678 N. Wilson Wy, #1A 8/2015 0 / 8
1550 W. Fremont St 10/2016 2 / 12
7840 West Ln 7/2021 1 / 0
7632 Pacific Ave 7/2018 0 / 15
3706 E. Hammer Ln, #6 12/2019 0 / 1
Building addresses are often identifiers for calls for
service – therefore it cannot be surmised that the
address is the cause or involved in the incident.
Staff
Recommendation
Adopt an Ordinance Option
Amending Title 5, Chapter 5.98,
Section 5.98.020, Chapter 5.99,
Section 5.99.030, Chapter
5.100, Sections 5.100.080,
5.100.310; & Title 16, Chapter
16.20, Section 16.20.020 &
Chapter 16.80, Section
16.80.195 of the Stockton
Municipal Code Relating to the
Cannabis Regulatory Program