HomeMy WebLinkAboutIntro Only - MOM Retail Permit ApplicationCity of San Luis Obispo
Cannabis Business Operators Permit Application
Retailer Storefront (Adult-use and Medical)
January 26, 2019
January 26, 2019
City of San Luis Obispo
ATTN: Community Development
919 Palm Street, CA 93401
Phone: (805) 781-7100
RE: Cover Letter to Commercial Cannabis Operations Permit Application by MOM SLO,
LLC., d.b.a., Megan’s Organic Market to Operate a Cannabis Retail Store at 280 Higuera
Street, San Luis Obispo, CA 93401.
Dear City of San Luis Obispo, Community Development Department,
The Megan’s Organic Market team is pleased to submit this application and looks forward to
becoming one of the first retail cannabis businesses in the City of San Luis Obispo.
Officially called MOM SLO, LLC DBA Megan’s Organic Market (MOM), we are a California
limited liability company, owned by Megan Souza, Eric Powers, Lindsey Law, Keith Sweeney,
Melissa Seligman, Levi Seligman, and Amanda Valena. This application seeks approval from
the City of San Luis Obispo to operate a cannabis retail shop at 280 Higuera Street, San Luis
Obispo, CA 93401. Accordingly, team MOM respectfully submits this application for Commercial
Cannabis Business Operations Permit (the “Permit Application”).
MOM SLO, LLC and its owners are a thoughtfully assembled team of 100% local, best-in-class
professionals. We are experienced and knowledgeable in our trade, excited about what this new
industry will bring to San Luis Obispo, and appreciate the opportunity to present this application
for consideration.
Having never earned above San Luis Obispo’s median household income level, winning a
commercial cannabis business operations permit would be a life-changing opportunity for Eric
Powers and me, Megan Souza, as primary principals of MOM SLO, LLC. We’re grateful to have
found a group of locals who appreciate our talent and believe in our vision: longtime SLO
County residents Lindsey, Keith, Melissa and Levi, who have the financial means to help us
pursue our dream of dispensary ownership.
Our team of 100% local business owners is prepared to open and operate a truly exemplary
cannabis retail shop in San Luis Obispo. As you will see in reviewing our application, our
venture meets – and exceeds – all criteria specified in the City’s cannabis ordinance,
regulations and beyond.
To assist the City in its review of the Commercial Cannabis Operations Permit Application,
please see the following for a breakdown of the requirements contained in the City of San Luis
Obispo’s Cannabis Business License Scoring Guide, as well as the corresponding locations in
the Commercial Cannabis Operations Permit Application where the requirement is addressed
by MOM SLO, LLC:
Retail Evaluation Criteria
Merit Criteria 1.0 - Community Benefit
1.1A – 100% of MOM SLO’s employees are SLO County residents – some born and raised here
their families having lived here for generations. Others moved to the area as young children
and have now lived in the county for decades. We also commit to hiring 100% SLO County
residents as new employees, with a preference for SLO City residents. See Section 2:
Community Benefit (10/10 pts.)
1.2A – More than 80% of the group’s supply and equipment expense will be sourced from
businesses within 90 miles. See Section 2: Community Benefit (10/10 pts.)
Total Community Benefit (A): 20/20 pts.
1.1B - MOM SLO will provide at least 40 hours per month of community support in the form of
company-sponsored employee volunteer service for such activities as trail maintenance,
highway cleanups, blood drives, etc. See Section 2: Community Benefit (5/5 pts.)
1.2B - MOM SLO will provide at least $2,000 per month in community support. This support will
include sponsorship of San Luis Obispo Chamber of Commerce’s Leadership SLO class
members, educational scholarships for Cal Poly and Cuesta students, donations to Community
Action Partnership and its affiliated organizations, etc. See Section 2: Community Benefit (5/5
pts.)
1.3B - MOM SLO’s team members have been actively engaged in the community and have
supported local community programs for years. We have maintained our adopted highway
section of Highway 1, organized educational events, hosted breast milk donation drives and
blood donation drives, and supported the community in a variety of other ways. See Section 2:
Community Benefit (5/5 pts.)
Total Community Benefit (B): 15/15 pts.
TOTAL MERIT CRITERIA 1.0: 35/35 pts.
Merit Criteria 2.0 - Experience
2.1 - 100% of MOM SLO’s primary principals have operated a local compliant cannabis retail
delivery) service for 5 years, with cultivation experience dating back to 2011. See Exhibit G:
Five Years Local Cannabis Experience and Section 1-D: Tax Compliance (35/35 pts.)
TOTAL MERIT CRITERIA 2.0: 35/35 pts.
Merit Criteria 3.0 - Equity and Labor
3.1 - Three principals of MOM SLO hold greater than 2% equity (Amanda Valena = 2%, Eric
Powers = 31.5%, Megan Souza = 31.5%), earn below the median household income at time of
application, and have earned
history. See Section 1-A: Business Plan (8/8 pts.)
3.2 - MOM SLO commits to 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. See Section 1-A: Business Plan (8/8 pts.)
3.3 - At MOM SLO, we believe everyone deserves the right to earn a living-wage salary. Base
wages for our employees will exceed the City’s minimum wage by $4.00/hr, with a base hourly
pay rate of $15.00. See Section 1-A: Business Plan (2/2 pts.)
3.4 - MOM SLO will allow labor peace agreements at 20 or more non-management employees.
See Section 1-A: Business Plan (2/2 pts.)
TOTAL MERIT CRITERIA 3.0: 20/20 pts.
Merit Criteria 4.0 - Messaging
4.1 - There appears to be an error on the posted scoring guidelines document. Section 4.1 has
no points to be awarded with it.
4.2 - Our team is comprised of parents and involved community members who understand the
need to restrict cannabis use to adults only. As such, we have created a comprehensive
strategy to keep cannabis out of the hands of minors. All marketing and communications will be
appropriately target to adult audiences. See Section 1-A: Business Plan and Section 3:
Education Plan (8/8 pts.)
4.3 - All MOM SLO business materials will promote responsible use, including: package
messaging, lower dose THC product options, tracking use via user-determined quotas,
information on cannabis use disorder, and cautions re: development of the adolescent brain.
See Section 1-A: Business Plan, E: Public Messaging, Section 1-H: Products and Services,
Exhibit I: Labeling Requirements Manufactured Cannabis Products, Exhibit J: Chapter 12
Packaging and Labeling, and Section 3: Education Plan (2/2 pts.)
TOTAL MERIT CRITERIA 4.0: 10/10 pts.
Merit Criteria 5.0 - Medical Retail Commitment
5.1 - We commit to providing retail medical cannabis products to our consumers. We began as
a Prop 215 collective offering delivery of medical cannabis to local patients. Products range
from balms and soaks to tinctures and patches. See Section 1-A: Business Plan and Section 1-
H: Products and Services (10/10 pts.)
TOTAL MERIT CRITERIA 5.0: 10/10 pts.
Merit Criteria 6.0 - Property Control
6.1 - The MOM SLO team has majority ownership in site property. See Section 1-A Business
Plan (10/10 pts.)
TOTAL MERIT CRITERIA 6.0: 10/10 pts.
Table of Contents
01. Business Operations Plan 9
01-A. Business Plan 11
Who We Are 12
Organizational Chart 16
Megan’s Markets 17
Our Mission 18
Our Values 18
Proposed Location 19
Ownership 21
Experience 46
Operation Details 47
Training 50
Advertising and Messaging 51
Social Commitments 52
Environmental Commitments 52
01-B. Community Relations Plan 53
01-C. State Licenses 55
01-D. Tax Compliance 57
Seller’s Permit 59
2014-2018 Sales Tax Returns 60
2014-2018 Employer Payroll Tax Returns 98
2014-2018 IRS Corporate Tax Returns 114
2017 IRS Personal Tax Returns 262
2018 Financial Statements 268
01-E. Insurance 279
01-F. Budget 285
01-G. Financial Capacity 287
01-H. Products & Services 305
02. Community Benefit 309
03. Education Plan 315
04. Security Plan 327
05. Lighting Plan 341
06. Site and Floor Plans 345
07. Water Efficiency Plan 359
08. Odor Control Plan 361
09. Hazardous Materials Plan 365
10. Energy Efficiency Plan 379
11. Exhibits 383
Exhibit A: Standard Operating Procedures 384
Exhibit B: Health and Safety Plan 408
Exhibit C: Example Employee Evaluation Test 419
Exhibit D: Job Specific Performance Evaluation 423
Exhibit E: Public Messaging 432
Exhibit F: Retail Employee Handbook 438
Exhibit G: Further Evidence of Compliance 470
Exhibit H: Training Manual 524
Exhibit I: Labeling Requirements 544
Exhibit J: CA Chapter 12 Packaging and Labeling 548
Exhibit K: Caldwell Signed Settlement 551
Exhibit L: Filed Request for Dismissal 553
Exhibit M: Petition Signature and Comments 556
Exhibit N: Cannabis and Me FAQs for Customers and The Public 594
8 MOM SLO LLC
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MOM SLO LLC 9
01. Business Operations Plan
Improving the
health of our
community with
access to quality,
organic cannabis.
This section provides a complete overview of the Megan’s Organic
Market proposal for San Luis Obispo.
01.
BUSINESS
OPERATIONS
PLAN
KEY TAKEAWAYS
Trusted Local Cannabis Operators (5+ Years)
Revitalization of an Underutilized Property
Removal of a Billboard
A Team Who Values the Environment and Community
10 MOM SLO LLC
Business Operations Plan
delivering the best customer service in the industry, MOM quickly became one of the most respected
cannabis companies on the Central Coast.
MOM has also been cultivating cannabis in SLO County since 2010 using organic, sustainable agricultural
practices that align with its core value of responsible stewardship. Well before there were regulations
governing the cannabis industry, MOM committed to using only Organic Materials Review Institute (OMRI)
certified pest control and disease management products and fertilizers. At a time when most retailers
bought from numerous growers who too often used hazardous fungicides, miticides, pesticides, and
petroleum derived fertilizers—almost 100% of the cannabis flowers sold through MOM’s delivery service
were cultivated by MOM, thereby ensuring customer safety and product quality.
Community involvement has been a central part of MOM’s company culture since its founding. From
adopting a two-mile stretch of Highway 1, to sponsoring community workshops and blood drives,
and even hosting a local radio show, MOM has a exemplary track record of responsible community
stewardship. Additionally, Megan and Eric’s commitment to community development has led them to
serve on multiple boards of directors of local non-profit organizations.
The knowledge and experience Megan and Eric accumulated through their entrepreneurial cannabis
projects provides MOM SLO cannabis storefront with a skilled management team that can guaranteed
success. Their extensive commercial cannabis cultivation and retail delivery experience is complemented
their retail storefront experience gained from Megan’s CBD Market--a shop in Morro Bay selling hemp-
derived products.
MOM wants to continue growing our local brand that can help form the foundation of SLO County’s
cannabis industry: MOM is pursuing licenses for 5-acres of outdoor cannabis cultivation in unincorporated
SLO County, a cannabis storefront and delivery service in Morro Bay, and a cannabis storefront in the
City of SLO.
For its SLO cannabis storefront project, MOM has assembled a completely local team, with truly local
funding, which can offer the City of San Luis Obispo a world-class cannabis retail establishment. A solid
track record of tax compliance, community involvement, and environmental stewardship, make MOM
and the City of San Luis Obispo, the perfect match. The details of our proposal are outlined in the
following application and we hope to work alongside the City as we embark on this new venture.
Executive Summary
Megan’s Organic Market (MOM) delivery
service was founded in 2013 by Megan
Souza and Eric Powers in response to the
lack of verifiably organic medicine available
to local medical cannabis patients. For
5 years, MOM delivery service worked
hard to improve the health of SLO County
residents by providing safe and reliable
access to quality organic medical cannabis.
With its iconically apron-clad staff