HomeMy WebLinkAbout10-16-2018 Item 20 - Cannabis permit application requirements, ranking, submittal period Meeting Date: 10/16/2018
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
SUBJECT: CANNABIS OPERATOR PERMIT APPLICATION REQUIREMENTS ,
RANKING CRITERIA, AND ANNUAL APPLICATION SUBMITTAL
PERIOD
RECOMMENDATION
Adopt a resolution (Attachment A) approving the Cannabis Operator Permit Ranking Criteria
(Exhibit A) and the Annual Application Submittal Period.
DISCUSSION
Background
On May 15, 2018, the City Council adopted Ordinance 1647 (2018 Series) establishing overall
regulations fo r cannabis businesses in the City and identifying the zones where various business
types are allowed (see Attachment D). The regulations establish a two -step process that first
requires certification of eligible business operators, and then approval of a land use permit for the
specific site. The overall cannabis ordinance will not go into effect unless the residents of the
City approve a revenue measure on the November 2018 election ballot that provides for the
taxation of various cannabis business activit ies.
During the discussion regarding the adoption of new cannabis regulations for the City of San
Luis Obispo, staff discussed coming back to City Council with the application requirements and
the evaluation criteria that would be used to rank any proposed cannabis business, in particular,
storefront retailers.
Application Requirements
Applications for new cannabis business operator permits require a substantial amount of
information to be provided and reviewed by City staff. The City Council included t hese
requirements with its adoption of Ordinance 1647, which was consistent with public comment
from potential business operators and members of the public. At least initially, the City will also
be using a consultant to support this review as a strategy t o manage the workload and to benefit
from the consultant’s prior experience. As identified on the application form, the following plans
and informational items are required for a complete application. It should be noted that the
application form is consist ent with Ordinance 1647 and the application itself does not require
approval by the City Council - it is being provided for informational purposes and is subject to
modification depending on the needs of the program.
• Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its
intent to local hiring and community support.
• Education Plan: A plan describing the type of cannabis education and abuse prevention
efforts that will be provided by the business to the community.
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• Safety and Security Plan: A detailed safety and security plan outlining the measures that will
be taken to ensure the safety of persons and property on the business site. The safety and
security plan must be prepared by a qualified professional.
• Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior
lights that will provide adequate security lighting for the business site.
• Site Plan: A scaled site plan of the business site, including all buildings, structures,
driveways, park ing lots, landscape areas and boundaries. The site plan must be professionally
prepared by a licensed civil engineer or architect.
• Floor Plan: A scaled floor plan for each level of each building that makes up the business
site, including the entrances, exits, walls and cultivation areas, if applicable. The floor plan
must be professionally prepared by a licensed civil engineer or architect.
• Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that
sufficient water supply exists and that appropriate conservation measures for the use will be
implemented.
• Wastewater Plan: The applicant shall demonstrate to the satisfaction of the City that
wastewater is minimized through, but not limited to, water efficient processes, recircula tion,
and recycling.
• Air Quality Plan: When deemed necessary by the City staff for purposes of compliance with
CEQA or state cannabis regulations, the applicant shall provide a calculation of the
businesses anticipated emissions of air pollutants and green house gas. The applicant shall
also provide assurance that the business will comply with all Best Management Practices
established by the San Luis Obispo County Air Pollution Control District.
• Odor Control Plan: A detailed plan describing how the applicant will prevent all odors
generated from the cultivation, manufacturing and storage of cannabis from escaping from
the buildings on the business site, such that the odor cannot be detected by a reasonable
person of normal sensitivity outside the buildings.
• Hazardous Materials Plan: To the extent that the applicant intends to store or use any
hazardous materials in its operations, the applicant shall provide a hazardous materials
management plan that complies with all federal, state and local requirements for management
of such substances.
• Energy Efficiency Plan: Documentation that the applicant has identified the best way,
including carbon free power sources to provide reliable and efficient energy solutions for
their business.
• Business Operations Plan:
o Business Plan: A plan describing how the cannabis cultivation business will operate
in accordance with City code, state law, and other applicable regulations. The
business plan must include plans for handling cash and transporting cannabis and
cannabis product s to and from the cultivation site.
o Community Relations Plan: A plan describing who is designated as being responsible
for outreach and communication with the surrounding community, including the
neighborhood and businesses, and how the designee can be contacted.
o State Licenses: Copies of the state licenses relating to the commercial cannabis
business licenses, the applicant holds (when available).
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o Tax Compliance: A current copy of the applicant’s City business operations tax
certificate, state sales tax seller’s permit, and the applicant’s most recent year’s
financial statement and tax returns (for first time applicants, the business operations
tax account will be set up in-house after the application has been submitted).
o Insurance: The applicant’s certificate of commercial general liability insurance and
endorsements and certificates of all other insurance related to the operation of the
cultivation business.
o Budget: A copy of the applicant’s most recent annual budget for operations (if
available)
o Financial Capacity: Financial information such as bank balances, available loans and
other sources of funding for the enterprise.
o Price List: A list of the most recent or expected prices for all products and services
provided by the applicant.
Ranking Criteria
With the above information in hand, the team reviewing applications will be able to rank
applications based on specific criteria, which have points assigned based on how those criteria
should be valued. Staff is proposing that these criteria be adopted by the City Council via a
resolutio n, and that the Council authorizes the City Manager to modify the criteria in the future
as may be needed to facilitate implementation of the program. The City Council should discuss
both the criteria and the points availa ble under each category to ensure that the system
appropriately reflects community values and interests.
The following is an overview of the criteria proposed for evaluat ion of commercial cannabis
business operator permits. Exhibit A includes more detail for each of the line items summarized
below.
1.0 Community Benefit (Up to 20 points)
1.1 Local hiring and sourcing practices (Up to 10 points)
1.2 Continued support of approved community programs in San Luis Obispo (i.e. park
cleanups, facility improvements, donating supplies/equipment to youth programs (Up
to 10 Points)
2.0 Record of Compliance (Up to 20 points)
3.0 Local experience (Up to 10 points)
4.0 Equity and Labor Criteria (Up to 30 points)
5.0 Responsible Use Messaging (Up to 10 points)
6.0 Medical Retail Commitment (Up to 10 points)
7.0 Control of Business Location (Up to 10 points)
8.0 Sustainable and Environmental Practices (Up to 20 points)
9.0 Beneficial Uses (Up to 20 points)
10.0 Land Development (Up to 10 points)
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Applying the Two-Step Process
The application process to become a certifie d cannabis business operator is the first of two steps
that a potential business must complete before it can begin operations. This agenda report and the
resolution recommended for approval pertain to the first step. Ordinance 1647, approved by the
City Co uncil in May 2018, includes all of the standards and requirements that pertain to the
second step of obtaining land use approval.
According to Section 9.10.070.B of the City’s Municipal Code (Ordinance 1647), the City
Council will establish an application period for operator permits by resolution. The
recommended resolution included as Exhibit A establishes the first application period to coincide
with the first three weeks of 2019 (January 1 through close of business on January 22, 2019).
Following this initial application period, staff is recommending that the City Council delegate its
authority to the City Manager to open up new application periods on an as needed basis to
include July 1 through July 31 of each calendar year.
Issuance of Cannabis Business Operator Permits
City staff will issue cannabis business operator permits to the top three applicants for storefront
retail sales. Operator permits for cultivators are also limited to no more than 10,000 square feet
of canopy each, and 70,000 square feet cumulatively. As a result, operator permits will not be
issued for more than 70,000 square feet of canopy in total. Operator permits will be issued to all
other cannabis business types that meet minimum scoring criteria as noted in Exhibit A.
CONCURRENCES
The proposed Cannabis Operator Permit Application Requirements and Ranking Criteria has
been reviewed by staff within the Planning Division, Police Department, Fire Department,
Utilities Department, Administration and the City Attorney’s Office . Staff comments provided
during review of the proposed project are incorporated into the application requirements and
ranking criteria (Exhibit A) outlined in the resolution.
ENVIRONMENTAL REVIEW
Business and Professions Code section 26055, subdivision (h), as amended by SB 94 (otherwise
known as the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA)),
provides that the California Environmental Quality Act (“CEQA”) does not apply to the adoption
of an ordinance, rule, or regulation by a local jur isdiction that requires discretionary review and
approval of permits, licenses, or other authorizations to engage in commercial cannabis activity,
so long as the discretionary review includes any applicable environmental review pursuant to
CEQA. Future app lications for commercial cannabis business activities in the City will be
subject to CEQA, per the normal environmental review process.
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FISCAL IMPACT
As legal cannabis sales and production is an emerging industry, staff has worked with two
different consultants, HdL and MuniServices, to develop an estimated amount of revenue to
expect from a cannabis business tax. Optimistically, cannabis business activities would begin at
the earliest in February or March 2019. However, it is expected to take some time for the City to
establish its permitting and regulatory protocols, and for businesses to find appropriate properties
and obtain the necessary permits to operate. As a result, tax revenues from Cannabis are
anticipated to increase through the next several years as businesses mature. The annual projected
revenue from cannabis related businesses is expected to increase over the next several years to an
estimate of $1,500,000. Cannabis business tax revenue estimates have been included in the
City’s Fiscal Health Response Plan presented to Council on April 17, 2018. The plan includes an
estimate of $100,000 in FY 2018-2019 in cannabis tax revenue. According to City budget
policies for cost recovery, these activities will also include fees that will be based on 1 00% cost
recovery. In November, City staff will return to the City Council with a proposed fee schedule to
accomplish this.
ALTERNATIVES
1. Modify the Proposed Resolution. The City Council is free to make modifications to the
Cannabis Operator Permit Application Requirements and Ranking Criteria. The Council has
the ability to make modifications during the meeting.
2. Continue Consideration of the Resolution to a Future Date. The City Council could direct
staff to conduct additional research or outreach on mo re or more components of the
recommended resolution. If this alternative is taken, the Council should provide direction to
staff regarding additional information needed to move forward.
Attachments:
a - Draft Resolution
b - Exhibit A - Ranking Criteria
c - Application Requirements
d - O-1647 Zoning Amendments for Cannabis Business and Personal Cultivation
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING CANNABIS OPERATOR PERMIT
RANKING CRITERIA AND THE ANNUAL APPLICATION SUBMITTAL
PERIOD (CODE-1058-2017)
WHEREAS, in 2017, the California legislature passed, and Governor Brown signed
Senate Bill 94, which enacted the Medicinal and Adult -Use Cannabis Regulation and Safety Act
(“MAUCRSA”), repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”) but
incorporated certain provisions of MCRSA into the licensing provisions established by Proposition
64; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 15,
2018 and adopted Ordinance 1647 that amended Title 17 (Zoning Regulations) of the Municipal
Code to establish land use regulations for the operation of commercial cannabis businesses, and
repealed and replaced Title 9, Public Peace, Morals and Welfare (Chapter 9.10.) of the Municipal
Code related to cannabis regulation; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on October 16, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of establishing the Cannabis Operator Permit Ranking Criteria (Exhibit
A); and
WHEREAS, the City Council of the City of San Luis Obispo conduct ed a public hearing
on October 16, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of establishing the annual application submittal period.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings.
1. The proposed Cannabis Operator Permit Ranking Criteria (Exhibit A) establishes the
ranking criteria for individuals who apply for a Cannabis Operator Permit to operate a
cannabis business activity in the City consistent with Municipal Code Chapter 9.10,
Section 9.10.070 (A).
2. The proposed timeframe in which applications are submitted annually is consistent with
Municipal Code Chapter 9.10, Section 9.10.070 (B).
SECTION 2. Environmental Review. The project is exempt from environmental review
per the Business and Professions Code (Section 26055(h)) because the project includes the
adoption of ordinances, rules, or regulations for the purpose of regulating cannabis business
activity in the City. The City’s cannabis business regulations require discretionary review and
approval of permits, licenses, or other authorizations to engage in commercial cannabis activity.
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Resolution No. _____ (2018 Series) Page 2
R ______
Future applications for commercial cannabis business activities in the City will be subject t o
CEQA, per the normal environmental review process.
SECTION 3. Action. The City Council hereby approves Cannabis Operator Permit
Ranking Criteria (Exhibit A) and annual application submittal timeframe subject to the following
conditions:
1. All Cannabis Businesses shall be evaluated by the Cannabis Operator Permit Ranking
Criteria at outlined in Exhibit A.
2. The first annual application submittal period shall coincide with the first three weeks
of 2019 (January 1 through close of business on January 22, 2019). Following this
initial application period, the City Council delegates its authority to the City Manager
to open up new application periods on an as needed basis to include July 1 through July
31 of each calendar year.
3. The City Manager is authorized to make minor modifications to this evaluation criteria
to ensure that the application process is implemented in a manner that is consistent with
the intent of Ordinance 1647. Any future changes to the criteria outlined in Exhibit A
will be published at least 10 days in advance of the application period opening.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
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Resolution No. _____ (2018 Series) Page 3
R ______
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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Item 20
City of San Luis Obispo
Commercial Cannabis Business Operator Permit
Evaluation Criteria
REVIEWER’S INSTRUCTIONS
1. Applicant will provide an electronic copy of the complete proposal
2. City will compile any additional information related to the applicant for consideration
3. Discussion between the reviewers during the evaluation will be limited to clarification to ensure an
equal understanding of the application.
4. Questions can also be directed to the consultant.
5. Each reviewer will complete a score sheet for each proposal.
6. Each completed score sheet will be given to the consultant.
7. The consultant will review all three score sheets for each proposal.
8. If there is a scoring deviation between reviewers on any scoring criteria of more than 30% the
consultant will discuss this specific score with the reviewers.
9. An adjusted score must be agreed upon by the reviewer and the consultant.
10. Once all criteria scores are reviewed and agreed upon, the total aggregate score for all three reviewers
will be totaled then divided by three to obtain the final score.
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City of San Luis Obispo
Commercial Cannabis Business Operator Permit
Evaluation Criteria
Cannabis Merit-Based Criteria and Possible Points
All applications for a Cannabis Commercial Business Operators Permit will be evaluated using the
merit criteria outlined below. Retail cannabis business applicants will be evaluated based on the
General Merit Criteria. Manufacturing, cultivation and other cannabis businesses will be evaluated
on the General Merit Criteria plus Supplement Merit Criteria. Applicants may provide supplemental
documentation or references with the application to support statements or information in the
application.
MINIMUM SCORING CRITERIA
Applicants must receive a minimum score of 70% of all available points in order to be issued a
Cannabis Operator’s permit.
AUTOMATIC FAIL CRITERIA
• Application received late
• Application incomplete
• Facility does not meet City business licensing standards
GENERAL M ERIT CRITERIA
1.0 Community Benefit
Applicant demonstrates a commitment to City through local hiring and community support. Select all that
apply within each category and total score. (Up to 20 Points – Deviation Threshold 6 Points)
1.1 Local hiring and sourcing practices (Up to 10 Points)
Over 90% of employees will be San Luis Obispo County resident 5 Points
Over 60% of employees will be San Luis Obispo County resident 2 Points
Over 80% of supplies and equipment will be sourced from local businesses 5 Points
Over 50% of supplies and equipment will be sourced from local businesses 2 Points
1.2 Continued support of approved community programs in San Luis Obispo (i.e. park cleanups, facility
improvements, donating supplies/equipment to youth programs (Up to 10 Points)
Providing over 20 hours per month of approved community support 5 Points
Provide 10-20 hours per month of approved community support 2 Points
Provide over $2,000 per month for approved community support 5 Points
Provide up to $500 per month for approved community support 2 Points
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City of San Luis Obispo
Commercial Cannabis Business Operator Permit
Evaluation Criteria
2.0 Record of compliant current or previous business operations
Applicant has previous record of operating a compliant commercial cannabis and/or other commercial
business. A compliant business operation does not have a documented history of local or state level
violations relating, but not limited to: business code, public safety, environmental impacts, employment,
and financial payments. (Up to 20 Points – Deviation Threshold 6 Points)
Applicant has operated a compliant previous commercial cannabis business for
5 or more years 20 Points
Applicant has operated any compliant commercial business for 5 or more years 15 Points
Applicant has operated a compliant commercial cannabis business for
less than 5 years 10 Points
Applicant has operated any compliant commercial business for less than 5 years 5 Points
Applicant has operated any non-compliant commercial cannabis business
and/or other commercial business (Reviewer discretion on severity of
non-compliance) 0 - 5 Points
3.0 Local Experience
San Luis Obispo is a unique business market. Medical cannabis businesses have been operating in San Luis
Obispo County for over 20 years under Proposition 215. The City encourages applicants to utilize the local
knowledge of current and previous cannabis and non-cannabis businesses operators. Majority of
applicant's primary principals reside in the County of San Luis Obispo and the person(s) has been residing
at a primary residence within San Luis Obispo County immediately preceding the date of the application.
A primary principal is defined as an owner with at least a 10% ownership share, officer or director. Select
all that apply and total points (Up to 10 Points – Deviation Threshold 3 Points).
Majority of primary principals have resided in San Luis Obispo County for 5 or more years 5 Points
Majority of primary principals have resided in San Luis Obispo County for less than 5 years 2 Points
Majority of primary principals have operated a business in San Luis Obispo County for
5 or more years 5 Points
Majority of primary principals have operated a business in San Luis Obispo County for
less than 5 years 2 Points
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City of San Luis Obispo
Commercial Cannabis Business Operator Permit
Evaluation Criteria
4.0 Equity and Labor Criteria
Applicant commits to equity ownership and competitive compensation in comparison to other mainstream
commercial businesses. Applicants commitment will be reevaluated during annual permit renewal
process. Select all that apply and total score. (Up to 30 Points – Deviation Threshold 9 Points)
Applicant includes 3 or more primary principals who historically have earned 80%
or less of the median local income 10 Points
Applicant includes 1 or 2 primary principals who historically have earned
80% or less of the median local income 5 Points
Business will have an average pay rate for entry and mid-level positions of at least 40%
more than the median local income for similar positions in other mainstream businesses 10 Points
Business will have an average pay rate for entry and mid-level positions of at least 20%
more than the median local income for similar positions in other mainstream businesses 5 Points
Base wages of employees exceed the minimum wage by a least $ 3.00. 5 Points
Business will allow collective bargaining at 10 or more employees 5 Points
5.0 Responsible Use Messaging
Applicant commits to responsible use messaging practices. Select all that apply and total score. (Up to 10
Points – Deviation Threshold 3 Points)
Business articulates a coherent strategy to keep adult-use cannabis products out
of the hands of consumers under the age of 21 2 Points
Business plans to use “responsible use” language on packaging and messaging 2 Points
Business plans to offer and promote lower THC dose, higher CBD dose
product options 2 Points
Business plans to only advertise in mediums (Radio, print, web) with audience
of 30% or fewer under 18 years of age. 2 Points
Business plans to post notice of availability of local cannabis use disorder
treatment hotline in visible location in shop 1 Points
Business plans to offer “user determined quota” program where customers
can declare planned THC mg consumption for the coming months 1 Points
6.0 Medical Retail Commitment
Applicant commits to provide retail medical cannabis products to consumers. 10 Points
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City of San Luis Obispo
Commercial Cannabis Business Operator Permit
Evaluation Criteria
7.0 Control of business location
Applicant demonstrates control of a site to ensure a successful and timely transition from being awarded
a license to opening the business. Incomplete purchase or lease agreements do not constitute site control.
(Up to 10 Points – Deviation Threshold 3 Points)
Majority ownership in site property 10 Points
Minority ownership in site property 8 Points
10+ Years future lease of site property 8 Points
5-10 Years future lease of site property 5 Points
2-5 Years future lease of site property 3 Points
Less than 2 years future lease of site property 1 Point
No ownership or future lease in place for site property 0 Points
TOTAL GENERAL MERIT CRITERIA AVAILABLE POINTS = 110
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City of San Luis Obispo
Commercial Cannabis Business Operator Permit
Evaluation Criteria
SUPPLEMENTAL MANUFACTURING, CULTIVATION AND OTHER COMMERCIAL CANNABIS BUSINESS
CRITERIA
8.0 Sustainable and Environmental
Applicant demonstrates past experience in and /or commits to sustainable and environmental business or
building practices utilizing recognized industry standards. Applicants actions will be reevaluated during
annual permit renewal process. Select all that apply and total score (Up to 20 Points – Deviation Threshold
6 Points)
Business will recycle waste water (utilize purple pipe when available) 5 Points
Applicant will utilize certified organic practices 3 Points
Business will utilize carbon free power sources for majority of power 1 -5 Points
Business will utilize energy efficient lighting 1 -4 Points
Business will utilize efficiencies to reduce water use 1 -3 Points
9.0 Beneficial Uses
Applicant demonstrates an intent to devote significant resources to pursue or evaluate cannabis products
with a focus on pharmaceutical benefits and limited psychoactive properties. S elect all that apply and total
score (Up to 20 Points – Deviation Threshold 6 Points)
Applicant will devote more than 80 % of its operations to products with beneficial uses 10 Points
Applicant will devote more than 50% of its operations to products with beneficial uses 5 Points
Applicant will devote more than 30% of its operations to products with beneficial uses 3 Points
Applicant will devote more than 80 % of its operations to research and development
of products with beneficial uses 10 Points
Applicant will devote more than 50% of its operations to research and development
of products with beneficial uses 5 Points
Applicant will devote more than 50% of its operations to research and development
of products with beneficial uses. 3 Points
10.0 Land Development
Applicant commits to develop raw land for commercial cannabis business facility 10 Points
SUPPLEMENTAL MERIT CRITERIAL TOTAL AVAILABLE POINTS = 50
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CITY OF SAN LUIS OBISPO
(Receiving Department)
(Address of Receiving Department)
(Phone Number)
Commercial Cannabis Business Operators Permit Application
A. Business Information
Business Name:
Property Address:
Assessor Parcel Number:
Zoning Designation:
B. Business Type (Check all that apply)
Cultivation - Specialty (Up to 5,000
Sq. Ft. Max)
Cultivation - Small (5,001 - 10,000
Sq. Ft. Max)
Cultivation – Nursery (Up to 10,000
Sq. Ft. Max)
Manufacture (Non-volatile Raw
Product Extraction)
Manufacture (Cannabis Infusion)
Manufacture (Itinerant – No
permanent facility)
Manufacturer (Research and
Development)
Distributor
Testing Laboratory
Retailer Storefront (Adult-use)
Retailer Storefront (Medical)
Retailer Storefront (Adult-use and
Medical)
Retailer Non-storefront (Adult-use)
Retail Non-Storefront (Medical)
Retail Non-storefront (Adult-use and
Medical
Transporter
Microbusiness (No more than 50%
GR from cultivation, distribution and
manufacturing)
Microbusiness (More than 50% GR
from cultivation, distribution and
manufacturing)
C. Applicant Information
Name of Primary Responsible Party Completing the Application:
Title:
DOB:
Social Security No:
If applicant is a not for profit, corporation, partnership or other business entity, please identify:
Name of Business Entity:
Type of Ownership:
Federal Tax Id:
Start Date:
Mailing Address:
Primary Phone No:
Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
*Primary Principal, are all persons with at least 10%interest in the cannabis business, which includes partners, officers, directors, and
stockholders of every corporation, limited liability company, or general limited partnership that owns at least 10% of the stock, capital, profits,
voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business;
the managers of the commercial cannabis business.
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D. Additional Responsible Party Information
Name:
Title:
DOB:
Social Security No:
Mailing Address:
Primary Phone No:
Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
Please attach additional sheets if there are more than 2 Responsible Parties.
E. Information on Property Owner or Landlord
Name:
Mailing Address:
Primary Phone No:
Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s Statement
of Consent to operate a commercial cannabis business on the property.
F. Related License Information
The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years.
Yes No (If yes, please provide the following information)
Name:
City or County:
Start Date: End Date:
Business Name:
Business Type:
Please attach additional sheets if necessary.
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Required Submissions (Please check the box for each attachment)
Please attach the following documents to your application:
Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and
community support.
Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by the
business to the community.
Safety and Security Plan: A detailed safety and security plan outlining the measures that will be taken to ensure the
safety of persons and property on the business site. The safety and security plan must be prepared by a qualified
professional.
Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate
security lighting for the business site.
Site Plan: A scaled site plan of the business site, including all buildings, structures, driveways, parking lots, landscape areas
and boundaries. The site plan must be professionally prepared by a licensed civil engineer or architect.
Floor Plan: A scaled floor plan for each level of each building that makes up the business site, including the entrances,
exits, walls and cultivation areas, if applicable. The floor plan must be professionally prepared by a licensed civil engineer or
architect.
Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists for
the use.
Wastewater Plan: The applicant shall demonstrate to the satisfaction of the City that wastewater is minimized through, but
not limited to, water efficient processes, recirculation, and recycling.
Air Quality Plan: When deemed necessary by the City staff for purposes of compliance with CEQA or state cannabis
regulations, the applicant shall provide a calculation of the businesses anticipated emissions of air pollutants and greenhouse
gas. The applicant shall also provide assurance that the business will comply with all Best Management Practices established
by the San Luis Obispo County Air Pollution Control District.
Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the cultivation,
manufacturing and storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be
detected by a reasonable person of normal sensitivity outside the buildings.
Hazardous Materials Plan: To the extent that the applicant intends to use any hazardous materials in its operations, the
applicant shall provide a hazardous materials management plan that complies with all federal, state and local requirements
for management of such substances.
Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free power sources
to provide reliable and efficient energy solutions for their business.
Business Operations Plan
• Business Plan: A plan describing how the cannabis cultivation business will operate in accordance with City code, state
law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis
and cannabis products to and from the cultivation site.
• Community Relations Plan: A plan describing who is designated as being responsible for outreach and communication
with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted.
• State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds
(when available).
• Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s permit,
and the applicant’s most recent year’s financial statement and tax returns (for first time applicants, the business operations
tax account will be set up in-house after the application has been submitted).
• Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all
other insurance related to the operation of the cultivation business.
• Budget: A copy of the applicant’s most recent annual budget for operations (If available)
• Financial Capacity: Financial information such as bank balances, available loans and other sources of funding the
enterprise.
• Price List: A list of the most recent or expected prices for all products and services provided by the applicant.
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G. City Authorization
I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification
of the information contained on this application.
H. Indemnification
I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee
under the City of San Luis Obispo regulations for Commercial Cannabis Businesses, shall not become a personal
liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall
defend (with counsel acceptable to the City), indemnify and hold harmless the City of San Luis Obispo, the San Luis
Obispo City Council, and its respective officials, officers, employees, representatives, agents and volunteers from
any liability, damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedings,
or judgments (including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time,
expenses or costs) against the City to attach, set aside, void or annul, any cannabis-related approvals and actions
and strictly comply with the conditions under which such permit is granted, in any. The City may elect, in its sole
discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable
legal costs and attorneys’ fees.
I. Nonrefundable Filing Fee
I, the applicant, understand and accept that the nonrefundable filling fee of $(XXX) must be submitted with the
competed Commercial Cannabis Business Operators Permit Application and will be retained by the city regardless of
the out-come of the application review.
Background – Request for Live Scan Services
I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California
Form BCIA 8016, as determined by the City of San Luis Obispo, by a duly authorized business must be provided for
the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and
interested parties.
J. Applicant’s Certification
I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis Obispo Municipal Code
pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the approval of the
Commercial Cannabis Business Operators Permit shall, in no way, permit any activity contrary to the San Luis Obispo Municipal
Code, or any activity which is in violation of any applicable law.
I certify under penalty of perjury under the laws of the State of California, that I have personal knowledge of the information
contained in this application, and that the information contained herein is true and correct.
Signature:
Date:
The information contained on this document is subject to disclosure under the Public Records Act.
Applicants providing false or misleading information in the permitting process will result in rejection of the application an d/or
nullification or revocation of any issued permit. All commercial cannabis permits must be approved by the City Council. The City
may attach conditions to the permit. A commercial cannabis permit may be denied if any of the following findings are made:
(i) The application does not meet all requirements of the commercial cannabis ordinance; or
(ii) Approval would very likely result in harm to public safety, health, or welfare; or
(iii) Potential negative impacts of the use cannot be mitigated with conditions or through the ordinance requirements.
Applicants will be notified regarding application completeness
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COMMERCIAL CANNABIS BUSINESS OPERATORS PERMIT APPLICATION
OWNER’S STATEMENT OF CONSENT
If the applicant is not the owner of record of the subject site, the following Statement of Consent
must be completed by the owner or the owner’s authorized representative, granting the applicant
permission to apply for a cannabis cultivation business permit. This form must be notarized.
To: City of San Luis Obispo
(Department)
(Address)
San Luis Obispo, CA 93401
I, the undersigned legal owner of record, hereby grant permission to:
Applicant: ___________________________________ Phone:___________________________
Mailing Address: ________________________________________________________________
To operate a commercial cannabis business on the property described below. I agree to abide
by and conform to the conditions of the permit and all provisions of the San Luis Obispo
Municipal Code pertaining to the establishment and operation of the commercial cannabis
business. I acknowledge that the approval of the Commercial Cannabis Business Operator
Permit shall, in no way, permit any activity contrary to the San Luis Obispo Municipal Code, or
any activity which is in violation of any applicable law.
The subject property is located at: _________________________________________________
Assessor’s Parcel Number: ________________________________________________________
Printed Name of Owner of Record: _________________________________________________
Address of Owner of Record: ______________________________________________________
Phone: __________________________Email address: _________________________________
Signature of Owner of Record: _______________________________Date: ________________
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