(A) Maximum number. The maximum number of commercial cannabis permits for each type of commercial cannabis business that are available for issuance within the city shall be as follows:
(1) Storefront retailer and/or storefront retail microbusiness:
(a) The maximum shall be calculated using a formula of one storefront retailer and/or storefront retail microbusiness per 15,000 city residents, as determined by the California Department of Finance and set forth in the E-1 report, rounded-up to the next whole number, or as established by City Council resolution pursuant to § 5.36.060(E) ("Storefront Maximum Number"). As of the date of adoption of the ordinance establishing this section in 2020, the storefront maximum number is 12.
(b) Notwithstanding (a) above, when considering applicants for provisional approval, as described in the rules and regulations adopted pursuant to § 5.36.040(A)(1), if there is a tie in the merit based review score given to the two or more applicants that could receive the permit representing the storefront maximum number ("tied applicants"), then the storefront maximum number shall be increased to accommodate all such tied applicants. For example, since the current storefront maximum number is 12, if there is a tie between two applicants who could both receive the 12th provisional approval, then those two applicants shall both be considered for provisional approval. If there is a tie between 3 applicants who could both receive the 12th provisional approval, then those three applicants shall be considered for provisional approval. All applicants that receive provisional approval shall have the opportunity to obtain final approval.
(c) Notwithstanding (b) above, in no event shall applicants with a merit-based review score lower than tied applicants be considered for provisional approval, unless the total number of applicants granted provisional and/or final approval drops below the storefront maximum number. Accordingly, in the event any of the applicants who are granted provisional approval are denied final approval or otherwise fail to obtain final approval for any reason, or in the event that any applicant granted final approval has its permit revoked or forfeited for any reason, as further provided in Chapter 5.36 or the rules and regulations adopted pursuant to § 5.36.040(A)(l), the storefront maximum number shall not be increased to accommodate any applicants who are not tied applicants.
(2) Non-storefront retailer: No numerical limit.
(3) Manufacturer: No numerical limit.
(4) Distribution: No numerical limit.
(5) Testing laboratory: No numerical limit.
(6) Non-storefront retail microbusiness: No numerical limit.
(B) No other commercial cannabis businesses permitted. A commercial cannabis permit shall not be issued for any type of business involving a commercial cannabis activity other than those identified in subsection (A) above.
(C) Multiple retail locations prohibited. A retail commercial cannabis business shall not be permitted to operate at multiple locations in the city. A commercial cannabis permit shall not be issued for a retail commercial cannabis business to any person who is the owner of, or has a financial interest in, another retail commercial cannabis business that is operating in the city or that has obtained a commercial cannabis permit to operate a retail commercial cannabis business in the city. Notwithstanding the foregoing, if the maximum number of commercial cannabis permits authorized by subsection (A) above have not been issued by January 1, 2023, this subsection's prohibition on permitting any person who is the owner of, or has a financial interest in, a retail commercial cannabis business from obtaining a commercial cannabis permit for another retail commercial cannabis business within the city shall no longer apply.
(D) Increase or decrease of maximum number. The City Council reserves the right at any time to consider whether the city should increase or decrease the maximum number of commercial cannabis permits available for issuance within the city for any or all types of commercial cannabis activities, or to impose a cap on previously uncapped commercial cannabis activities. If the City Council proceeds with a decrease in the total number of commercial cannabis permits for any or all types of commercial cannabis activities within the city, any such action shall include provisions for determining which, if any, existing commercial cannabis permits shall be eliminated and when operations for eliminated commercial cannabis permits shall cease.
(E) Resolution required. The City Council shall increase or decrease the maximum number of commercial cannabis permits available for issuance for any or all commercial cannabis activities by resolution.
(Ord. 3351 § 2, 2022; Ord. 3350 § 3, 2022; Ord. 3321 § 3, 2020)