HomeMy WebLinkAboutItem No. 01 - Required Annual Commercial Cannabis Business Permit Update
Staff Report
City of San Bernardino
Request for Council Action
Date: June 17, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By:Michael Huntley, Community & Economic Development Director
Subject: Required Annual Commercial Cannabis Business Permit
Update
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino,
California:
1. Accept the annual commercial cannabis business permit update and litigation
update; and
2. Discuss and provide direction to staff on whether to increase or modify permit
categories and the number of permits, and direct staff to prepare a possible
ordinance to increase the total number of permits and/or prepare a resolution to
either adjust the distribution of permits by type or to eliminate the restriction
altogether; and
3. Discuss and provide feedback on recommended amendments to the proposed
commercial cannabis business permit application review criteria, procedures and
fees; and
4. Adopt Resolution 2020-148 authorizing the transition of two current open and
operating commercial cannabis businesses to alter their existing permits to
transition to two commercial cannabis microbusiness permits.
Discussion
Annual Commercial Cannabis Business Permit Update
San Bernardino Municipal Code Chapter 5.10 establishes the regulations and standards
for Commercial Cannabis Business (CCB) activities in the City. The Mayor and City
Council initially adopted Chapter 5.10 through Ordinance MC-1464 in March 2018. In
October 2018, the Mayor and City Council amended Chapter 5.10 with Ordinance MC-
1503. The Mayor and City Council then adopted Resolution 2018-227 to place
Ordinance MC-1503 on the November 2018 ballot for voter approval. In November
2018, the voters approved Ordinance MC-1503 as Measure X.
Chapter 5.10 requires the Mayor and City Council to set forth procedures to govern the
Page 1
6776
application process for CCB permits (SBMC, § 5.10.090 (a)). In April 2018, the Mayor
and City Council adopted Resolution 2018-102, establishing the review criteria for CCB
applications and authorizing the City Manager to prepare the necessary forms, establish
the application process, solicit applications, conduct the initial evaluation, and ultimately
provide a recommendation to the Mayor and City Council. The current Procedures and
Guidelines, issued by the City Manager, are attached hereto (Attachment 1).
Regulations and Process
Under Chapter 5.10, to operate a commercial cannabis business in the City, a person
must obtain a valid CCB Permit from the City and a valid license for the cannabis
operation from the State (SBMC, § 5.10.060). The City offers six types of permits:
cultivation, distribution, manufacturing, microbusiness, retail, and testing (SBMC, §
5.10.060). Chapter 5.10 currently initially caps the number of commercial cannabis
business permits that the City may issue to one permit for every 12,500 residents based
on population reports from the State Department of Finance (SBMC, § 5.10.080). The
total cap is presently 17 permits, based on a January 2017 population report. This cap
may be increased by Ordinance of the Mayor and City Council (SBMC, § 5.10.080).
History and Current Status of Permits
The application period for commercial cannabis business permits was open from May
2018 to June 2018. The City processed the applications and awarded sixteen permits in
February 2019.
As of the time this report was written, the status of the awarded permits is as follows:
Currently the City has two open and operating commercial cannabis businesses, one
retail business, and one distribution business, with a second retail business close to
Page 2
6776
opening. Additionally, there are 9 businesses in various categories in the plan check
process and two preparing to submit by the end of July. Staff has communicated with
the last two applicants who have indicated that they are not ready to proceed to the next
step and have not submitted for plan check.
Various Recommendations: Permit Processing, Microbusinesses, and Relocations
Under Chapter 5.10, the application process may be changed from time-to-time. Staff is
recommending amending the application process to address modifications, changes or
additions to existing license types and the expansion of an existing business footprint
and preparations.
This proposed expansion will allow for the two current operators (distribution and retail)
to consider a transition to Microbusiness (Attachment 2). This will also allow for
awarded but not yet operating and future cannabis businesses to modify their awarded
permits to expand their operations and generate additional revenue. Staff is also
recommending these amendments be processed administratively as part of the overall
application process streamlining.
As referenced in Section 5.10.200, awarded cannabis businesses may apply for
relocation within the City using the established application process set forth in Section
5.10.090. The application process is currently set up in four phases consisting of an
application submittal, review of the application, applicant interviews, and Mayor and City
Council consideration. There are set fees established for each phase. Staff is
recommending streamlining this process by combining Phase 1 and 2, eliminating
Phase 3, and keeping Phase 4. As outlined in the proposed guidelines (see Attachment
4), the proposed process will consist of three steps: (1) application submittal; (2) staff
review; and (3) Mayor and City Council consideration. By streamlining the process, an
applicant wanting to relocate will be able to move forward in a simplified manner to the
Mayor and City Council for consideration.
Pursuant to Section 5.10.320 (Other Operational Requirements), as part of the Mayor
, or his/her designee, has the ability
to develop other commercial cannabis business operational requirements or regulations
as are determined to be necessary to protect the health, safety, and welfare of the
public.
Staff would like direction from the Mayor and City Council on whether to require
applicants to provide a Lease Agreement or Purchase Agreement as an additional
operational requirement during the application process. If this is desired, staff will
application.
If, instead, it is preferred that such evidence be provided upon approval, staff will require
the applicant to provide such documentation within 60 days as a condition of approval.
Permit Processing Deadlines
As illustrated in the Current Status table above, staff believes that it is in the best
interest of the City and other perspective applicants to establish and impose deadlines
on applicants who were awarded a permit, but who have been slow to establish their
Page 3
6776
business. There may be various reasons why some of the permittees have been slow
to proceed; however, staff contends that a performance provision should have been
rrent applicants that were awarded a CCB in February 2019
of three (3) months from the time any ordinance expanding the number of permits goes
into effect. If the awarded applicant is not able to secure a location and submit tenant
improvement plans to the City for review within the allotted time frame, the applicant will
forfeit their permit. The intent of this proposed provision is to move stalled applicants
along, and if they cannot proceed in a reasonable time frame, open the available
permits up to other prospective applicants who have the ability to secure a location and
establish a commercial cannabis business.
Additionally, staff is also proposing a new 12-month deadline for new applicants
awarded a permit by Mayor and City Council. The 12-month deadline begins from the
date the permit is awarded. This is intended to provide ample time for a permittee to
proceed with securing a location and submitting for their tenant improvements as
outlined in the proposed guidelines (see Attachment 4). Moreover, the timeframe
emphasizes to applicants that they must diligently pursue the establishment of their
commercial cannabis business, or risk losing their permit. The lack of a performance
provision has impacted the projected cannabis tax revenue that the City was expecting
to receive as a result by permitting commercial cannabis businesses in the City.
Award Existing Operators the Opportunity to Operate as Microbusinesses
The City awarded five microbusiness permits in February 2019. To date, not a single
microbusiness is in operation. One microbusiness applicant experienced a delay due to
relocation and is now in plan check. The two operators who are open for business and
generating tax revenue (distribution & retail) have demonstrated the ability to open,
operate, and do business. The City can further its goals by offering each of the two
businesses the opportunity to operate as microbusinesses.
The City has awarded a total of 16 commercial cannabis business permits in various
categories so expanding this one category will require the adoption of a Resolution
pursuant to Chapter 5.10 of the Municipal Code. The Mayor and City Council will also
need to adopt an administrative process to facilitate the changes should the operators
desire to take advantage of the opportunity. The operators would be required to pay a
$4,618 Application Submittal and Review Fee, but will not go through an entirely new
the full formal review process.
Should the Mayor and City Council desire to move forward with the various policy
recommendations set forth in this report, it will need to adopt a resolution updating the
Procedures and Guidelines. Some of those policy amendments are set forth in the
attached draft Guidelines (Attachment 4).
The City can further the goal of implementing the voters desire to see cannabis
businesses operating in the City by providing greater flexibility to make changes to the
various categories and for the maximum number of permits. Under Chapter 5.10, some
of these changes must be adopted by resolution and others by ordinance. The voter
Page 4
6776
approved Chapter 5.10 provides that the City will start with one cannabis permit for
every 12,500 in population, but it also authorizes the City to increase the number of
permits by ordinance. For various reasons, it can take many months for operators to
open for business. The City may want to consider increasing the number of permits,
realizing that ultimately there will be fewer operators than the number of awarded
permits. Increasing the number of permits will also be essential to resolving litigation as
discussed in the litigation section below.
Commercial Cannabis Litigation Update and Recommendations
Below is a brief summary with expenses, to date, of each of the cases involving San
itting of commercial cannabis businesses:
A. Washington, et al. (CIVDS 1905710, filed 2/25/2019)
Opposing Counsel: Ben Eilenberg (Please note: though the court has
suspended)
Plaintiffs: Washington, LLC (microbusiness applicant, denied); MTV
Holdings, LLC (affiliation unknown); Bubba Likes Tortillas, LLC (affiliation
unknown)
Defendants: City; Andrea Miller
Format of Complaint: Complaint and Petition for Writ of Mandate
(Government Waste/Government Corruption)
Allegations: Issuance of permits to groups without approved Zoning
Verification Letters and to groups whose projects conflict with the SB General
Plan was illegal; all permits were issued illegally because Phase III interviews
constitute meetings in violation of the Brown Act; all permits were issued illegally
procedures; all permits were issued illegally because the process was tainted by
illegal campaign contributions.
Application Problems/Score: Phase 2: 67.07% (15th out of 17 for
microbusiness); Phase 3: 77.92% (17/17); Combined: 73.85% (16/17).
$141,704.35 (Please note: all work
applicable to all cases jointly-including creation of the administrative record-has
been billed to this matter)
B. EEL Holdings, LLC (CIVDS 1906467, filed 3/1/2019)
Opposing Counsel: Jeff Augustini
Plaintiff: EEL Holdings, LLC (Elliot Lewis with Connected Cannabis Co.,
Page 5
6776
retail applicant, denied)
Defendants: City; Andrea Miller
Format of Complaint: Verified Petition for Writ of Mandamus and
Complaint for Peremptory Writ of Mandate and Injunctive Relief
Allegations: The City violated 5.10.090, 180, 250(c), and Resolution
2018-102 by permitting applicants whose application did not comply with the
General Plan, by altering adopted application procedures of May 2018 without a
Resolution as required by 5.10.090(a) and 5.10.180(a), by failing to apply and
assess objective review criteria as required by 5.10.090(a) and Resolution 2018-
102 and by abusing discretion under 5.10.090(a) to formulate and implement
criteria, and by permitting a late-filed application to proceed and ultimately to
award that applicant a license in violation of 5.10.090(d).
The City also cost Plaintiff at least $100,000 in failing to permit the
Connected Cannabis Co.
Application Problems/Score: Phase 2: 82.73% (Tied 8th out of 18 for
retail); Phase 3: 82.32% (13/18); Combined: 82.48% (12/18).
$92,186.17
C. Ashe Society SB LLC (CIVDS 1911952, filed 4/19/2019)
Opposing Counsel: Tin Westen of Westen Law
Plaintiff: Ashe Society SB LLC (two permit applications: 590 S. E St
(retail) and 785 S. Lugo Ave (retail), both denied)
Defendants: City; Andrea Miller
Format of Complaint: Verified Petition for Peremptory Writ of Mandate
and Complaint for Declaratory Relief
Allegations: The City violated 5.10.180, among other sections, in failing
to adhere to requirements to select applicants who would move forward with the
permitting process at a public hearing. The City published the May 21, 2018
guidelines without adoption by Resolution as required. Scoring was inconsistent,
Approving permits on February 21, 2019 represents a misinterpretation and
failure to comply with the mandates of 5.10.
Application Problems/Score: S. E Street: Phase 2: 81.07% (11th out of
18 for retail); Phase 3: 83.52% (16/18); Combined: 82.60% (11/18)
Atto $6,077.04
Page 6
6776
D. SB Pharma Holdings, Inc. (CIVDS 1914576, filed 5/14/2019)
Opposing Counsel: Nancy Minkler of Ad Astra Law Group
Plaintiff: SB Pharma Holdings, Inc. dba The Row House (retail applicant,
denied)
Defendant: City
Format of Complaint: Petition for Writ of Mandate (CCP §§ 1085,
1094.5) and Complaint for Injunctive Relief
Allegations: The City violated 5.10 and the Application Procedure
Guidelines by allowing applicants who did not comply with the cannabis
Ordinance, comply with the General Plan, pay the required fees, submit required
materials, or obtain the required Zoning Verification Letter to proceed through the
process. Selection was inconsistent with scoring, with the highest scoring
applicants not selected for permits.
Application Problems/Score: Phase 2: 82.73% (Tied 8th out of 18 for
retail); Phase 3: 83.56% (7/18); Combined: 83.25% (9/18).
$32,445.86
E. Kahros, et al. (CIVDS 1830325, filed 11/20/2018)
Opposing Counsel: John Jay Lebron
Plaintiffs: Kostadinos Kahros, Athina Kahros, Leonard Paul Alba
Defendants: City; Jarrod Burguan (Chief of Police); Jeffrey Bloom (Interim
Director of the Community Development Department)
Format of Complaint: Complaint for Declaratory Relief, Inverse
Condemnation, Petition for Writ of Mandate and Injunctive Relief
Allegations:
(1/18/18) and signing the judgment repealing Measure O (2/28/18), Defendants
obtained and served search warrants against all 50 operating marijuana
Department of Building and Safety accompanied police and entered the premises
of cannabis businesses and inspected for compliance with building and safety
hearing is a taking.
What the Plaintiff Wants: Money damages and an order enjoining SB
Page 7
6776
electrical service to close down marijuana businesses.
$2,132.87
F. KP Investment Group, LLC (CIVDS 1909577, filed 3/29/2019)
Opposing Counsel: Robert Freeman
Plaintiffs: KP Investment Group, LLC (microbusiness applicant, denied)
Defendants: City; Andrea Miller
Format of Complaint: Complaint and Petition for Writ of Mandate
Allegations: Businesses which did not receive approved Zoning
Verification Letters improperly received permits (Luke, LLC \[Organtix Orchards\];
AM-PM MGMT, Inc. \[Cold Creek Organics\]; Ashe Society SB, LLC; Red Brick
Industries, LLC). SB failed to provide a full scoring rubric, and certain scores
seem nonsensical; for example, AM-PM was denied a Zoning Verification Letter
and had eight sensitive uses within 600 feet, but received a 165/200
Neighborhood Compatibility score and a 160/200 Location score. Applicants
who were noncompliant with the General Plan received scores higher than those
who were compliant; e.g., Orange Show Cultivators was deemed noncompliant
but received a Neighborhood Compatibility score of 178.75/200 and a Location
score of 167.5/200. Further, SB violated its own procedures and the Municipal
Code.
Application Problems/Score: Phase 2: 73.67% (11th out of 17 for
microbusiness); Phase 3: 82.48% (8/17); Combined: 79.18% (11/17).
$1,659.95
G. Washington II (CIVDS 1922151, filed 7/26/2019)
Opposing Counsel: Ben Eilenberg (Please note: though the court has
suspended)
Plaintiffs: Washington, LLC (microbusiness applicant, denied)
Defendants: City
Format of Complaint: Complaint and Petition for Writ of Mandate
(Government Waste/Government Corruption)
Allegations: The City Council of the City of San Bernardino lacked the
authority to reduce the setback requirement in Section 5.10.250 of the San
Page 8
6776
Bernardino Municipal Code.
Application Problems/Score: Phase 2: 67.07% (15th out of 17 for
microbusiness); Phase 3: 77.92% (17/17); Combined: 73.85% (16/17).
$16,770.78
H. Interveners in Open Litigation
These are businesses which either received a commercial cannabis
business permit or participated in the process, but were not awarded, and are
concerned that the outcome of the lawsuits may adversely impact them.
Name Type Phase 3 Status Counsel
Score
4th Street Microbusiness 2018/2500 Not awarded Unknown
Dispensary (80.72%)
Blunt Brothers, Distribution 2080/2500 Awarded; Open Dana
Inc. (83.20%) Cisneros
Central Avenue Microbusiness 2067/2500 Awarded; In plan James
Nursery, LLC (82.68%) check Penman
ECS Labs, Inc. Microbusiness 2051/2500 Not awarded Matt Harrison
(82.04%)
Nibble This, Microbusiness 2119/2500 Awarded; Permits Jacqueline
LLC (S. E St.) (84.76%) pulled, under Vinaccia
construction
Microbusiness 2121/2500 Awarded; In plan
(S. H St.) (84.84%) check
Orange Show Microbusiness 2223/2500 Awarded; Not Jason
Cultivators, Inc. (88.92%) submitted for plan Thompson
check
I. Captain Jacks - Yi v. City of San Bernardino (Measure O Related
Litigation)
Opposing Counsel: Roger Diamond
The City recently prevailed on an appeal. The Court found the issue of
the validity of Measure O to be moot and ordered the case dismissed. The issue
of the validity of the Measure O permits has not been decided and the attorney
has indicated a willingness to continue to litigate.
Page 9
6776
J. Recommendation
Should these lawsuits proceed to trial (seven trials total as cases have been
consolidated for discovery purposes only), Plaintiffs have expressed great desire to
aggressively pursue discovery, including but not limited to depositions of council
members. We can also anticipate dispositive motions on just about every case, though
as always, summary judgment is a very difficult bar to clear.
Without any settlement, we would estimate each trial to cost approximately
$75,000, for a total of somewhere in the neighborhood of $500,000. Given the
preliminary nature of the cases, however, it is important to remember that this figure is
subject to revision upon learning new information.
Given that all but one applicant (Washington) exceeded the 80% score threshold,
we would recommend engaging in settlement discussions with each viable
applicant/plaintiff to move in the direction of issuing permits where possible.
Regulation of Cannabis Deliveries
Chapter 5.10 that regulates cannabis businesses was adopted by the voters as
Measure X. If the Mayor and City Council desire to formally amend Chapter 5.10, it will
have to propose a new measure to the voters. The City Council does not have the
authority to amend the Ordinance without voter approval.
By way of example only, some cities have enacted cannabis delivery ordinances
containing the following provisions related to cannabis deliveries:
A City Business License is required (and an associated $293 fee);
A Cannabis Delivery Service Permit is required;
Delivery is permitted to residential addresses only;
Delivery is permitted only during the hours of 9:00 a.m. and 9:00 p.m.
Cannabis or cannabis goods delivered to residential properties located
within 600 feet of a public or private K-12 school cannot occur during
school hours (8:00 a.m. to 3:00 p.m. weekdays);
"Dash Cams" are required in delivery vehicles;
Delivery service business must include public education materials (i.e.,
negative health impacts to youth and DUI prevention)
Background checks are required by the City.
If the Mayor and City Council wants to enact similar regulations on cannabis delivery
businesses, staff can prepare a report guiding the Mayor and City Council on the steps
to do so.
In the meantime, staff plans to ensure that the Guidelines make clear that deliveries are
subject to the permitting scheme (all CCBs are) and no delivery service to locations
within the City is permitted absent a permit. Of course, deliveries that simply go through
the City may continue so long as they are not picked up or dropped off within City limits.
Page 10
6776
Financial Impact
Commercial cannabis business permit applicants were required to pay an application
hat
once commercial cannabis business permits are issued and businesses are operating, it
is anticipated the City will receive revenues related to the business activities, however,
maximum revenues have not been achieved, and the City has incurred and will continue
to incur litigation related costs. If the City were to continue with the litigation, costs may
be as high as half a million dollars or more. The City may be able to resolve certain
cases without any monetary payments.
2020-2025 Key Strategic Targets and Goals
The annual commercial cannabis update and proposed changes to the existing
guidelines is consistent with Key Target No 1: Financial Stability. Specifically, improving
the commercial cannabis business procedures and the code provisions that regulate
commercial cannabis, should improve the process thereby allowing the City to capture
cannabis revenue.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California:
1. Receive and file the annual commercial cannabis business permit update and
litigation update; and
2. Discuss and provide direction to staff on whether to increase or modify permit
categories and the number of permits, and direct staff to prepare a possible
ordinance to increase the total number of permits and/or prepare a resolution to
either adjust the distribution of permits by type or to eliminate the restriction
altogether; and
3. Discuss and provide feedback on recommended amendments to the proposed
commercial cannabis business permit application review criteria, procedures and
fees; and
4. Adopt Resolution 2020-148 authorizing the transition of two current open and
operating commercial cannabis businesses to alter their existing permits to
transition to two commercial cannabis microbusiness permits.
Attachments
Attachment 1 Guidelines (Issued by City Manager per Resolution 2018-102)
Attachment 2 Resolution 2020-148
Attachment 3 Draft Resolution to Amend Established Commercial Cannabis
Permit Application Review Criteria, Procedures and Fees
Attachment 4 Draft New Procedures & Guidelines, Application Review Criteria
and Proposed Fees
Ward: All
Page 11
6776
Synopsis of Previous Council Actions:
March 7, 2018 Mayor and City Council Ordinance-1464 Adopting Chapter 5.10 of
the San Bernardino Municipal Code related to the Regulation of
Commercial Cannabis Activities.
April 4, 2018 Mayor and City Council Adopted Resolution 2018-101 Establishing
the Maximum Number of Commercial Cannabis Business Types.
April 4, 2018 Mayor and City Council Adopted Resolution 2018-102 Establishing
Commercial Cannabis Permit Application Review Criteria and
Procedures.
April 4, 2018 Mayor and City Council Adopted Resolution 2018-103 Establishing
Commercial Cannabis Application Review and Appeal Fees.
September 5, 2018 Mayor and City Council Adopted Ordinance-1503 Amending
Chapter 5.10 of the San Bernardino Municipal Code related to the
Regulation of Commercial Cannabis Activities.
Page 12
¸
¸
¸
¸
¸
Dpnnfsdjbm!Dboobcjt!Cvtjoftt!!Hvjefmjoft!Sfwjtfe!1204202:!
.!2!!
¸
p
p
¸
¸
p
¸
p
p
¸
Dpnnfsdjbm!Dboobcjt!Cvtjoftt!!Hvjefmjoft!Sfwjtfe!1204202:!
.!3!!
p
p
p
¸
¸
p
p
¸
¸
p
p
p
p
p
¸
¸
Dpnnfsdjbm!Dboobcjt!Cvtjoftt!!Hvjefmjoft!Sfwjtfe!1204202:!
.!4!!
¸
p
¸
¸
¸
¸
¸
¸
¸
¸
¸
¸
¸
p
p
¸
p
p
Dpnnfsdjbm!Dboobcjt!Cvtjoftt!!Hvjefmjoft!Sfwjtfe!1204202:!
.!5!!
¸
¸
¸
¸
¸
¸
¸
¸
¸
¸
¸
¸
¸
Dpnnfsdjbm!Dboobcjt!Cvtjoftt!!Hvjefmjoft!Sfwjtfe!1204202:!
.!6!!
¸
¸
¸
¸
¸
¸
¸
p
p
p
Dpnnfsdjbm!Dboobcjt!Cvtjoftt!!Hvjefmjoft!Sfwjtfe!1204202:!
.!7!!
RESOLUTION NO. 2020-148
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
AUTHORIZING TWO CURRENT OPEN AND OPERATING
COMMERCIAL CANNABIS BUSINESSES TO ALTER
THEIR EXISTING PERMITS TO TRANSITION TO TWO
COMMERCIAL CANNABIS MICROBUSINESS PERMITS
WHEREAS, Chapter 5.10 (Commercial Cannabis Activities) of the San Bernardino
Municipal Code provides that the various categories of cannabis business types may be set by
Resolution; and
WHEREAS, the Mayor and City Council previously authorized five (5) cannabis
Microbusiness business license types; and
WHEREAS, the Mayor and City Council awarded sixteen (16) commercial cannabis
business (CCB) permits on February 21, 2019 and to date only two (2) of the sixteen (16) are
open and operating; and
WHEREAS, the Mayor and City Council desires to increase revenue from cannabis
operations, as the City had anticipated more cannabis businesses that had been awarded permits
would be operating and generating revenue; and
WHEREAS, the two (2) businesses that are open and operating have demonstrated that
they can professionally manage and operate their businesses and it may be beneficial to the City
to authorize these two (2) operators to alter their existing permits to transition to
Microbusinesses; and
WHEREAS, by allowing the two (2) businesses that are open and operating to alter their
existing permits to provide for Microbusiness, would not allow for the replacement of their
currently held license types; and
WHEREAS, the City Council desires for staff to take all additional actions necessary,
such as amending the cannabis Application Review Criteria and Procedure Guidelines to provide
for a permit fee and processing to accommodate a transition to a Microbusiness should the two
(2) current cannabis business operators desire to apply.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. The City Manager is hereby authorized to permit two (2) additional
cannabis Microbusiness categories and to prepare all necessary amendments to the cannabis
Application Review Criteria and Procedure Guidelines to be adopted by Resolution.
Resolution No. 2020-148
SECTION 3. That the City Council finds this Resolution is not subject to the California
Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA
applies only to projects which have the potential for causing a significant effect on the
environment. Where it can be seen with certainty, as in this case, that there is no possibility that
the activity in question may have a significant effect on the environment, the activity is not
subject to CEQA.
SECTION 4. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 5. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested
by the Acting City Clerk this ___ day of __________ 2020.
John Valdivia, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, Acting City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
Resolution No. 2020-148
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true
copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______
2020 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of
____________ 2020.
Genoveva Rocha, CMC, Acting City Clerk
FOR REVIEW ONLY
Resolution No. ___
RESOLUTION NO.______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
AMENDING ESTABLISHED COMMERCIAL CANNABIS
PERMIT APPLICATION REVIEW CRITERIA,
PROCEDURES, AND FEES PURSUANT TO SAN
BERNARDINO MUNICIPAL CODE SECTIONS 5.10.090
5.10.180, AND 5.10.300.
WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance MC-
1503, thereby adopting Chapter 5.10 (Commercial Cannabis Activities) to the Municipal
Code; and
WHEREAS, on April 4, 2018, the Mayor and City Council adopted Resolution No.
2018-102 and Resolution 2018-103 establishing Application Review Criteria, Procedures,
and Fees for the implementation of Chapter 5.10 (Commercial Cannabis Activities) of the
Municipal Code;
WHEREAS, on February 21, 2018, the Mayor and City Council made a final
selection and awarded sixteen (16) Commercial Cannabis Business (CCB) Permits, pursuant
to section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the
Municipal Code; and
WHEREAS, on June 4, 2020, the Mayor and City Council further reviewed the
Application Review Criteria, Procedures, and Fees and directed City staff to modify the
Application Review Criteria, Procedures, and Fees in order to streamline the application
evaluation, review, selection and determination procedures; and
WHEREAS, pursuant to Section 5.10.090 (Initial Application Procedure) 5.10.180
(Commercial Cannabis Business Permittee Selection Process), and 5.10.300 (Fees and
Charges) the Mayor and City Council may amend by Resolution the Application Review
Criteria, Procedures, and Fees;
WHEREAS, the Mayor and City Council desire to establish modified Application
Review Criteria and Procedures from a policy perspective, and fees reflective the modified
Application Review Criteria and Procedures based upon the best information available such
that the City fully recovers the cost of service.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. The Mayor and City Council authorize the City Manager to amend the
necessary forms, application process and fees, solicit applications, conduct initial review of
FOR REVIEW ONLY
Resolution No. ___
applications for completeness, and to ultimately provide a complete, signed application to the
Mayor and City Council for final consideration, as set forth in the attached Exhibit A.
SECTION 3. The Commercial Cannabis Business Application Review Criteria to be
amended as follows:
A. Qualifications of Owners/Principals: Describe any special business or professional
qualifications or licenses of the Owners/Principals that would add to the number or
quality of services, such as scientific or health care fields.
B. Location: The application should include the following:
Physical address and detailed description of the proposed/final location.
Proof of ownership, or a notarized willingness to lease.
Description of all known nearby sensitive use areas.
C. Neighborhood Compatibility Plan: The application should include the following:
Describe how the business, including its exterior areas and surrounding public
areas, will be managed so as to avoid becoming a nuisance or having impacts on
its neighbors and the surrounding community.
Additional factors for consideration are religious institutions or libraries located
within a six-hundred (600) foot radius of the proposed CCB.
D. Environmental Impact Mitigation:
relating to energy and climate, water conservation, and materials and waste management.
E. Local Enterprise: Describe to what extent the CCB will adhere to heightened pay and
benefits standards and practices. Specific practices that are subject to consideration
include the following:
Providing compensation to and opportunities for continuing education and
training of employees/staff;
The application should state the extent to which the CCB will be a locally
managed enterprise whose Owners/Principals reside within the City and/or within
San Bernardino County.
F. Business Plan: The Business Plan shall be as detailed as necessary to fully describe the
operations, including:
Description of day-to-day operations. SBMC Section 5.10.310.
How the CCB will conform to local and state laws per SBMC Section 5.10.280
Security and Non-Diversion of Marijuana Grown for Medicinal Use.
FOR REVIEW ONLY
Resolution No. ___
How cannabis inventory will be tracked and monitored to preventdiversion.
A schedule for beginning operation, including a narrative outlining any proposed
construction and improvements and a timeline for completion.
A budget for construction, operation, maintenance, compensation of employees,
equipment costs, utility costs, and other operation costs. The budget must
demonstrate sufficient capital in place to pay startup costs and at least three
months of operating costs, as well as a description of the sources and uses of
funds.
Proof of capitalization, in the form of documentation of cash or other liquid assets
on hand, Letters of Credit or other equivalent assets.
A pro forma for at least three years of operation.
Business Purpose Statement
G. Enhanced Product Safety: Describe how the CCB will ensure enhanced consumer
safety as required by State or local law.
H. Safety Plan: The application should include the following:
A detailed safety plan. This plan should describe the fire prevention,
suppression, HVAC and alarm systems the facility will have in place. It
should include an fire safety by a qualified fire
prevention and suppression consultant. An appropriate plan will have
considered all possible fire, hazardous material, and inhalation issues/threats
and will have both written and physical mechanisms in place to deal with each
specific situation.
I. Security Plan: The application should include the following:
A detailed security plan. This plan should include a description and detailed
schematic of the overall facility security. It should have details on operational
security, including but not limited to general security policies for the facility,
employee specific policies, training, sample written policies, transactional
security, visitor security, 3rd party contractor security, and delivery security.
In particular, applications should address ingress and egress access, perimeter
security, product security (at all hours), internal security measures for access
(area specific), types of security systems (alarms and cameras), and security
personnel to be employed. The security plan shall also include an assessment
of site security by a qualified security consultant. Security plans will not be
made public. A floor plan showing existing building conditions. If changes are
proposed as part of the project, then a proposed floor plan should also be
submitted. The floor plan(s) should be accurate, dimensioned and to-scale
FOR REVIEW ONLY
Resolution No. ___
1
(mi/
2
acre parcel but must be printed on not larger than an 11 X 17 sheet of paper.
J. Community Benefits: Describe the benefits that the CCB would provide to the local
community, such as employment for local residents of the City, community contributions, or
economic incentives to the City. Specific items that are subject to consideration include the
following:
How does the type of license requested benefit the community and assure an
appropriate mix of license types Citywide?
Does the applicant provide an effective community outreach plan for nearby
owners and operators?
Does the applicant describe credible benefits to the overall community, local
economy, and any community or non-profit contributions or affiliations?
Does the applicant propose to include one or more of the following business
types:
i. Coffee Shop
ii. Art Studio
iii. Museum
SECTION 3. The amended fees providing services related to the review, evaluation and
final disposition of the Commercial Cannabis Applications, as set forth in the attached Exhibit B.
SECTION 4. The establishment of Application Review Criteria, Procedures, and Fees
related to the provision of City services under the Commercial Cannabis Ordinance MC- 1503 is
exempt under the California Environmental Quality Act (CEQA) and the CEQA Guidelines Section
15061 (b)(3) , 15378, and 15273(a)(1) (Rates, Tolls, Fares and Charges. CEQA only applies to an
activity that there is no possibility for causing a significant effect on the environment. It can be seen
that there is no possibility that this activity will have a significant effect on the environment and it is
therefore exempt from CEQA.
SECTION 6. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 7. Effective Date.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested
by the Acting City Clerk this ___ day of __________ 2020.
John Valdivia, Mayor
City of San Bernardino
Attest:
FOR REVIEW ONLY
Resolution No. ___
Genoveva Rocha, CMC, Acting City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
FOR REVIEW ONLY
Resolution No. ___
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true
copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______
2020 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of
____________ 2020.
Genoveva Rocha, CMC, Acting City Clerk
Exhibit A
Draft Application Procedure Guidelines
Draft Application with Appendix A
Chw w9L9 hb\[
Community & Economic Development Department Planning Division
rd
Office: 201 North E Street, 3 Floor
Mail: 290 North D Street
San Bernardino, CA 92401
P: (909) 384-5357 F: (909) 384-5155
www.sbcity.org
COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
Applications may be filed Monday through Thursday between the hours of 7:30 a.m. and 5:00 p.m. and Friday between the hours of 7:30 a.m. and 4:00 p.m.
Project Address / Location:
Zoning District: General Plan Designation:
APPLICANT NAME:
Address: Phone:
City: State: Zip Code: Email:
PROPERTY OWNER NAME:
Address: Phone:
City: State: Zip Code: Email:
(Note: If the applicant or property owner is a trust, partnership, corporation, or LLC, on a separate sheet, provide a list of
all persons that make up the trust, partnership, corporation, or LLC)
APPLICATION TYPE:
New Business Amended Application Business Renewal
Change of Location Change of Ownership
COMMERCIAL CANNABIS BUSINESS PERMIT TYPE (Please select from one of the following categories):
Cultivation Distribution Manufacturer
Retailer Retailer Non-Storefront Testing
Microbusiness (Please identify all business activities):
DESCRIPTION OF PROJECT:
Commercial Cannabis Business Permit Application 1 06/2020
Chw w9L9 hb\[
PROJECT INFORMATION FORM
Property Information:
Square footage of subject property:
Square footage of building/tenant space:
Hours of operation (proposed):
Total number of employees (proposed):
Business Information:
Business Name:
Business Address:
Website Address (if applicable):
Business E-mail Address (if applicable):
Community Relations Contact:
Name: Phone:
Title: Email:
Environmental Information (Attach additional sheets as necessary):
an
energy and climate, water conservation, and materials and waste management):
Will the project use, store, or dispose of potentially hazardous chemicals, materials, toxic substances, flammables or
explosives:
OFFICE USE ONLY
Date Filed: Previous Case: Case Number:
Receipt Number: Fees Paid: Submitted To:
Commercial Cannabis Business Permit Application 2 06/2020
Chw w9L9 hb\[
PROJECT INFORMATION FORM (Continued)
Other Required Information (Attach additional sheets as necessary):
List any person(s) who will be engaging in the proposed commercial cannabis business that have been convicted of
a felony or have engaged in misconduct that is substantially related to the qualifications, functions or duties of a
commercial cannabis business activity. Please keep in mind that a conviction within this section means a plea or
verdict of guilty, or a conviction following a plea of no contest:
List whether, the applicant(s) has other licenses and/or permits issued to and/or revoked from the applicant, in the
three years prior to the year of the permit application, such other licenses and or permits relating to similar
business activities as in the permit application. If yes, please list the type, current status, issuing/denying for each
license/permit:
Provide the name and address of the closest school(s) to proposed business location:
Provide the name and address of the closest existing alcohol related establishment(s) to proposed business
location:
Description of neighborhood around the proposed location (surrounding uses, nearby sensitive uses (such as
schools, youth centers churches, parks, daycare centers, or libraries), transit access to site, etc.):
Commercial Cannabis Business Permit Application 3 06/2020
Chw w9L9 hb\[
APPLICATION SUBMITTAL REQUIREMENTS
The following items shall be submitted with all applications (1 physical copy and 1 electronic copy):
Copy of the completed Verification of Proposed Cannabis Site (VPC) Form issued by the City
Completed Application Form
Filing Fee
Notice of Intent to Lease / Purchase Property
Site Plan (see below for requirements)
Floor Plan (see below for requirements)
Elevations (photographs may be provided)
Photographs of existing site
Area Map (see below for requirements)
Live Scan Payment
Business Owner(s) Background Information Forms
Supplemental Evaluation Criteria (see below for requirements and Appendix A)
Mailing list identifying all owners of property located within 600 feet of the proposed business location
Mailing labels identifying all owners of property located within 600 feet of the proposed business location
Community Relations submittal requirement: Mailing Labels identifying all businesses and owners of
property located within 100 feet of the proposed business location
(Note: Incomplete applications will not be accepted)
Supplemental Evaluation Criteria (See Appendix A):
(All information shall be provided as required in Application Procedure Guidelines for Commercial Cannabis
Businesses)
Business Plan
Location
Neighborhood Compatibility Plan
Safety Plan
Security Plan
Cultivation and operations plan that meets or exceeds minimum legal standards for water usage,
conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper
storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of
the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and
harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting
(indoor, mixed-light)
Description of a legal water source, irrigation plan, and projected water use
Identification of the source of electrical power and plan for compliance with applicable Building Codes and
other related codes
Plan for addressing odor and other public nuisances that may derive from the cultivation site
Commercial Cannabis Business Permit Application 4 06/2020
Chw w9L9 hb\[
APPLICATION SUBMITTAL REQUIREMENTS (Continued)
Site (shall contain a minimum of the following information):
North arrow, drawing scale, date of preparation and name of plan preparer
Dimensions of subject property including square footage
Dimensions and names of all adjacent streets and public rights-of way
Location and dimensions of all buildings and structures including square-footage
Location and dimensions of landscaped areas
Location of all parking areas and driveways and means of ingress and egress
Location and dimensions of all handicap parking spaces, ramps, curb ramps and signs
Location and dimensions of handicap-accessible Path of Travel to building entrance, sidewalks and interior
walks
Uses for all buildings and structures indicated on the site plan
(shall contain a minimum of the following information):
North arrow, drawing scale, date of preparation and name of plan preparer
Location and dimensions for means of ingress and egress
Square footage of all interior spaces
Proposed uses of all interior spaces
Area Map (shall contain a minimum of the following information):
Location of subject property
Location of all highways, streets and alleys within a distance of 600 feet from the exterior boundaries of the
subject property
Location of all lots and parcels of land within a distance of 600 feet from the exterior boundaries of the
subject property
The Area Map shall identify the existing uses of all lots and parcels of land within a distance of 600 feet from
the exterior boundaries of the subject property on the map
All sets of plans must be collated and no larger than
Commercial Cannabis Business Permit Application 5 06/2020
Chw w9L9 hb\[
AUTHORIZATION FORM
APPLICANT CERTIFICATION
I hereby certify, under penalty of perjury, on behalf of myself and all persons identified in this application that the
statements and information furnished in this application and in the attached exhibits present the data and
information required for this initial evaluation to the best of my ability, and that the facts, statements, and
information presented are true and correct to the best of my knowledge and belief. I understand that a
misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit
issued.
In addition, I understand that the filing of this application grants the City of San Bernardino permission to reproduce
submitted materials, including but not limited to, plans, exhibits, and photographs, for distribution to staff,
Commission, Board, and City Council Members, and other Agencies in order to process the application. Nothing in
this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits and
photographs for any purpose unrelated to the City's consideration of this application.
Furthermore, by submitting this application I understand that agree that any business resulting from an approval
shall be maintained and operated in accordance with requirements of the City of San Bernardino Municipal Code
and state law.
Name Signature
Title Date
Commercial Cannabis Business Permit Application 6 06/2020
AUTHORIZATION FORM (Continued)
PROPERTY OWNER CONSENT
If applicant is other than the property owner(s), the owner(s) must provide a signed and notarized statement
consenting to filing pursuant to Section 5.10.240 of the City of San Bernardino Municipal Code. Additional sheets
may be attached if necessary. Original signatures only.
I/We, as the owner(s) of the subject property, consent to the filing of this application and use of the property for the
purposes described herein. We further consent and hereby authorize City representative(s) to enter upon my
property for the purpose of examining and inspecting the property in preparation of any reports and/or required
environmental review for the processing of the application(s) being filed.
Name Signature
Title Date
A notary public or other officer completing this certificate verifies only the identity of the induvial who signed the
document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Subscribed and Sworn to Before Me This ______ Day of ____________, 20____, proved to me on the basis of satisfactory
evidence to be the person(s) who appeared before me.
Notary Public
Commercial Cannabis Business Permit Application 7 06/2020
FOR REVIEW ONLY
APPENDIX A
DESCRIPTION OF EVALUATION CRITERIA
Location: The application should include the following:
Physical address and detailed description of the proposed/final location.
Proof of ownership, or anotarized willingness to lease.
Description of all known nearby sensitive use areas.
Neighborhood Compatibility Plan: The application should include the following:
Describe how the business, including its exterior areas and surrounding public areas, will be managed so as to
avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.
Additional factors for consideration are religious institutions or libraries located within a six-hundred (600) foot
radius of the proposed CCB.
Business Plan: The Business Plan shall be as detailed as necessary to fully describe the operations, including:
Description of day-to-day operations. SBMC Section 5.10.310.
How the CCB will conform to local and state laws per SBMC Section 5.10.280 and SBMC Section 5.10.420 and the
Non-Diversion of Marijuana Grown for Medicinal Use.
How cannabis inventory will be tracked and monitored to prevent diversion.
A schedule for beginning operation, including a narrative outlining any proposed construction and improvements
and a timeline for completion.
A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs,
and other operation costs. The budget must demonstrate sufficient capital in place to pay startup costs and at
least three months of operating costs, as well as a description of the sources and uses of funds.
Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or
other equivalent assets.
A pro forma for at least three yearsof operation.
Business Purpose Statement
Safety Plan: The application should include the following:
Adetailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems
the facility will have in place. It should include an fire safety by a qualified fire
prevention and suppression consultant. An appropriate plan will have considered all possible fire,
hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to
deal with each specific situation.
FOR REVIEW ONLY
Security Plan: The application should include the following:
Adetailed security plan. This plan should include adescription and detailed schematic of the overall facility
security. It should have details on operational security, including but not limited to general security policies for
the facility, employee specific policies, training, sample written policies, transactional security, visitor security,
3rd party contractor security, and delivery security. In particular, applications should address ingress and
egress access, perimeter security, product security (at all hours), internal security measures for access (area
specific), types of security systems (alarms and cameras), and security personnel to be employed.The security
plan shall also include an assessment of site security by a qualified security consultant. Security plans will not
be made public.
A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed
floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale (minimum
1
smaller if it exceeds more than a / acre parcel but must be printed on not
2
larger than an 11 X 17 sheet of paper.
FOR REVIEW ONLY
Community Development Department - Planning Division
rd
Office: 201 North E Street, 3 Floor
Mail: 290 North D Street
San Bernardino, CA 92401
P: (909) 384-7272 F: (909) 384-5155
www.sbcity.org
APPLICATION PROCEDURE
COMMERCIAL CANNABIS BUSINESS (CCB)
The City reserves the right to reject any and/or all applications, with or without cause or reason. The City may also
modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any
party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from
any candidate submitting an application. Late or incomplete applications MAY BE REJECTED. Furthermore, an
application RISKS BEING REJECTED for the following reasons:
1.It is considered not fully responsive to this request for a permit application.
2.It contains excess or extraneous material not called for in the request for CCB permit application.
3.Being awarded a CCBpermit does not constitute a land use entitlement and does not waive or remove the
requirements of applying for and receiving permits for any and all construction including electrical, plumbing,
fire, planning permits or reviews, and any other permits, licenses, or reviews as may be necessary by the
relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans
submitted via the CCB application process meet the standards or requirements of those permitting departments. All
permit awardees will still be required to complete all the permitting processes for the proposed construction or
occupation of the facility.
Prior to submitting a CCB application:
Verification of Proposed Commercial Cannabis Site (VPC), or MCC Prefer: Cannabis Zoning Verification Letter (ZVL)
o The Business Owner must obtain an approved Verification of Proposed Commercial Cannabis Site (VPC)
from the Community & Economic Development Department, located at 201 North E Street, prior to
submitting a CCBapplication, to ensure that the proposed CCB
requirements pursuant to Section 5.10.025 of the Municipal CodeVPC
takes approximately ten (10) working days and will not be completed over the counter since it may
require additional research and review.
Application Submittal and Evaluation (Fee: $5,915 + $600 Background Check per Business Owner + $132
LiveScan per Business Owner) ($2,647 + $2,034 + $1,237 = Application Fee including evaluation and Mayor and City
Council (MCC) selection and determination.)
An Application shall be required for a new business, business renewal, and new location (i.e. relocation to
a new property/site/address)
o The Application has an outline of all the submittal requirements, review the application to include
Appendix A and submit a complete, signed application.
o Application will be evaluate based on completeness of Application and the identified items in
Appendix A.
o Those applicants that submit a complete, signed application and meet all the submittal
requirements as identified in the Application and Appendix A, will move to the Mayor and City
Council for Consideration.
MCC Selection and Consideration
o Mayor and City Council will consider every application and determine which applicants will be awarded
CCB permit.
FOR REVIEW ONLY
o Prior to MCC meeting or immediately after MCC determination (if awarded), the applicant shall submit
the following (What does MCC Prefer?):
Proof of property ownership or lease agreement.
o Pursuant to Section 5.10.080 of the Municipal Code and as established by Resolution, MCC may select
applicants for permits, depending on the number of permits provided for in each category.
o If awardeda CCB Permit by MCC, the applicant shallcomplete and submit theIndemnification
Agreementas provided.
Deadline to Complete
Commercial Cannabis Businesses awarded February 21, 2019
Any Commercial Cannabis Business that has been granted approval pursuant to (Section 5.10.180), but is not in operation prior to
the effective date of adopted Resolution 20-XXX, shall be granted a period not to exceed three months from the effective date of
the Resolution to secure a final business location and submit plans to the City for improvements. These Improvements may
include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary
by the relevant departments or government entities in charge of said permits.
New Commercial Cannabis Business Applicants
For all business granted approval after the effective date of Resolution 20-XXX, a final business location shall be secured and
submittal of improvement plans shall occur within a period not to exceed twelve months from the date of approval. These
Improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as
may be necessary by the relevant departments or government entities in charge of said permits.
Amendments to Applications (Fees: 4,681) ($2,647 + $2,034 = Amendment Fee)
Amendments to applications must be submitted using the application submittal process and will be reviewed administratively
by city staff.Amendments to applications may include but are not limited to a Modification,Change or Addition to aLicense
Type or Expansion of Existing Business Footprint & Operations.
Exhibit B
Application Fees
Chw w9L9 hb\[
EXHIBIT B
COMMERCIAL CANNABIS APPLICATION REVIEW AND APPEAL FEES
PURSUANT TO SBMC CHAPTER 5.10
Service Provided: Required Fee:
1. Zoning Verification Letter $183.00
2. Live Scan $132.00/Owner (SBMC 5.10.050)
3. Background Review $600.00/Owner (SBMC 5.10.050)
4. Commercial Cannabis Application
a. Application Submittal Fee $2,647.00
b. Application Review Fee $2,034.00
c. Mayor and City Council Consideration $1,237.00
5. Appeal Fee $3,217.00
All fees are non-refundable and are due and payable at the time the application or similar request is
submitted to the City