EXECUTIVE SUMMARY
Staff recommends that the City Council provide policy direction on the City’s Commercial Cannabis Program, and namely to authorize staff to develop administrative procedures to allow any applicants who have previously received an intent to award a retail cannabis permit to apply for a new permit in a new location within the City.
STRATEGIC PLAN ALIGNMENT
This report is in alignment with the following City Council Priority:
Goal A: Financial Stability and Sustainability
Strategy 5: Implement the City’s cannabis program to attain the anticipated new revenue with a commitment to adopting where necessary in light of evolving Statewide trends.
BACKGROUND
On November 14, 2017, the City Council adopted Chapter 5.44 of the Union City Municipal Code (“UCMC”) which established the regulatory framework for commercial cannabis operators within the City. Concurrently, the City Council adopted Resolution No. 5144-17, allowing for up to three commercial cannabis permits in each of the following categories: cultivation, manufacturing, distribution, testing, and retail.
Two retail businesses have opened and are currently in operation since the adoption of the Cannabis Ordinance: Jiva UC LLC located at 30545 and 30547 Union City Boulevard, Union City, CA 94587 and Flor East Bay LLC located at 3100 Courthouse Drive, Union City, CA 94587.
The City Council reopened the cannabis permit process on September 27, 2022, and subsequently, the City Council adopted Resolution No. 6166-23 on July 11, 2023 declaring its intent to award Embarc a cannabis retail permit to operate a dispensary located at 2625 and 2633 Decoto Road, Union City, CA 94587 subject to compliance with all necessary conditions (the “Resolution of Intent”).
DISCUSSION
Since July, staff has been working with Embarc to establish conditions of approval pursuant to the Resolution of Intent for City Council consideration for ultimate award of a retail cannabis permit.
Under the established procedures for this application cycle, applicants who receive a resolution of intent to award a permit have six months to secure a resolution awarding a cannabis permit. The Resolution of Intent will expire on January 10, 2024. Given the approaching deadline, Embarc formally requested a pause on the processing of their permit application to allow them time to evaluate their proposed location and to continue their engagement with the community.
In light of these various considerations and factors, staff is now seeking City Council direction and authorization to develop administrative procedures that would allow any applicants who have previously received an intent to award a retail cannabis permit to apply for a new permit at a new location within the City. This framework would allow for an expedited process as it would only apply to applicants that have been vetted and deemed to be qualified operators. With that direction, staff would return to City Council at its next regularly scheduled meeting on January 9, 2024, seeking approval of administrative procedures that reflect this alternative process.
FISCAL IMPACT
There is no fiscal impact as a result of the City Council taking the recommended action.
RECOMMENDATION
Staff recommends that the City Council provide policy direction on the City’s Commercial Cannabis Program, and namely to authorize staff to develop administrative procedures to allow any applicants who have previously received an intent to award a retail cannabis permit to apply for a new permit in a new location within the City.
Prepared by:
Jennifer Phan, Deputy City Manager
Submitted by:
Jennifer Phan, Deputy City Manager