Agenda

Return

D.6

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	May 18, 2021

Contra

Costa

County

Subject:

Update on Commercial Cannabis Permitting

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/18/2021

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Ruben Hernandez, 925-655-2865

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 18, 2021
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

ACCEPT the update from the Department of Conservation and Development and the Health Services Department on commercial cannabis permitting and other cannabis-related activities in the unincorporated area of the County.

FISCAL IMPACT:

None. Applicants for commercial cannabis businesses pay fees to cover the cost of reviewing their applications. All commercial cannabis uses are required to pay the commercial cannabis tax as approved by County voters in 2016 (Measure R).

BACKGROUND:

DCD Cannabis Update

BACKGROUND: (CONT'D)

This is an update on the status of land use permitting for commercial cannabis in the unincorporated areas of the County.

Since the adoption of the County's cannabis ordinance in June of 2018, a total of 12 commercial cannabis land use permit (LUP) applications have been submitted to the Department of Conservation and Development. A breakdown of the type of applications are as follows:

Four applications for retail storefront (as selected by the Board and invited to apply);
Five applications for commercial cultivation (as selected by the Board and invited to apply);
Two applications for delivery-only retail;
One application for cannabis distribution facility.

Of the 12 LUP applications, three land use permits for commercial cultivation have been approved (one by the Zoning Administrator, one by the Planning Commission on appeal, and one by the Board on appeal); two applications for retail storefront (dispensary) have been approved; and one application for retail delivery-only has been approved. Only the approved retail delivery-only has opened for business.

Retail Storefront LUP Applications

The land use permits for the retail storefront applications in the Pacheco area (Authentic 925) and The Artist Tree (El Sobrante) have been approved by the Zoning Administrator. Both applications are currently undergoing their respective compliance review processes. The applicants are required to provide evidence of compliance with all land use permit conditions of approval prior to operation, which include, among other requirements, proof of issuance of cannabis permit from the Health Department, proof that they have obtained their State cannabis licenses and proof of issuance of a business license from the County Treasurer/Tax Collector. At the time of preparation of this report, neither of the applicants have provided proof of obtaining any of the previously identified approvals.

The land use permit applications for the retail storefronts in Pacheco (EMBARC Contra Costa) and Bay Point (Element 7) are in progress and have been deemed incomplete. Element 7 Bay Point submitted substantial revised plans to the Department of Conservation and Development on May 6 which include plans for a 70-unit multi-family building and two retail spaces, including the proposed dispensary on the 1.77-acre parcel in Bay Point. Updated plans were submitted to the Department by EMBARC on May 12, 2021.

Commercial Cultivation LUP Applications

Of the seven applicants selected by the Board to apply for commercial cultivation permits (where a total of ten permits are allowed per the cannabis ordinance) five land use permit applications were received. To date, three of the LUP applications for cultivation have been approved; Magic Flower in North Richmond was approved by the Zoning Administrator in January of this year; Lifted Spirit Collective in Brentwood was approved by the Planning Commission on appeal also in January; and Diablo Valley Farms was approved by the Board in March on appeal. The land use permit for 703 Chesley, LLC in North Richmond was approved by the Zoning Administrator in February and is currently under appeal to the County Planning Commission. As for the Casa Rasta Farms land use permit application in North Richmond, revised plans have been submitted and are currently under review by the project planner.

Delivery-Only Retail

Two applications for delivery-only retail have been submitted since adoption of the County's Cannabis Ordinance. The land use permit for the delivery business in Pacheco (Shoot the Moon) was approved by the Zoning Administrator in July 2020, and the other land use permit application for delivery in Pacheco (Mountain Remedy, Inc.) was withdrawn. Shoot the Moon has also received a license from the state, a Health Permit (and Business License) and has opened for business.

Cannabis Distribution

One land use permit application for a cannabis distribution facility to be established in conjunction with the Authentic 925 dispensary in Pacheco has been submitted and is currently under review.

Health Services Cannabis Update

The County Services Health Department has also provided an update on cannabis regulation and related issues in the County. The report from the Health Department is attached along with a presentation.

CLERK'S ADDENDUM

ACCEPTED the update on cannabis permitting and other cannabis-related activities in the unincorporated area of the County; and DIRECTED staff to bring the Cannabis Ordinance back to the Board for clearer direction and considerations.

Speakers: Joan Benll, Richmond; Chris Hestor, One Plant, El Sobrante; Jason, Getting it right from the Start Project; Jamie Rich, Center for Human Development; Richmond Resident, Contra Costa Resident.