Report to Mayor and City Council
Tuesday, September 04, 2018
Discussion
SUBJECT:
Title
CONSIDER APPROVAL OF RESOLUTIONS TO ISSUE COMMERCIAL CANNABIS OPERATION PERMIT NO. 02-18 (17505 S. MAIN STREET) AND COMMERCIAL CANNABIS OPERATION PERMIT NO. 04-18 (2403 E. 223RD STREET) BASED ON THE CANNABIS PERMIT COMMITTEE'S RECOMMENDATIONS AND MERIT LIST CRITERIA; SETTING THE INTEREST RATE ON UNPAID CANNABIS TAXES; AND, SETTING THE TAX RATE ON CANNABIS RELATED BUSINESS ACTIVITIES.
Body
I. SUMMARY
The City's Commercial Cannabis Operation Permit Regulatory Program (Program) as contained in Chapter 15 of Article VI of the Carson Municipal Code authorizes no more than four (4) commercial cannabis centers (Permits). A commercial cannabis center may include indoor cultivation, mixed-light cultivation, manufacturing, testing and/or (wholesale) distribution. Applications for Permits were accepted by the City and subject to a ministerial review for adherence to local and state requirements. City's cannabis consultant reviewed the applications, Exhibit No. 1. Five Permit applications were eligible to be sent to the Cannabis Permit Committee (CPC) for review based on specified criteria (Merit List).
The CPC now recommends two applicants should be issued a Permit, Exhibit No. 2. A resolution to approve the CPC's recommendations based on Merit List criteria is provided for consideration, Exhibit No. 3. The City Council upon receipt of CPC recommendations makes the final determination on whether a Permit shall be issued based on Merit List factors. If the City Council upholds the CPC's recommendations, two (2) Permits will be available at a later date.
The Carson voters by a margin of almost 2:1 at the November 6, 2016 General Municipal Election approved taxes on commercial cannabis activities. A resolution to set the interest rate on unpaid cannabis taxes at 5%, to set commercial cannabis operation tax rates at 18% of proceeds and at $25 per square foot of cultivation, and to se...
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