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Home My WebLink About1G1CITY COUNCIL STAFF REPORT DATE: March 25, 2021 CONSENT CALENDAR SUBJECT: ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS TO ENTER INTO AN AGREEMENT WITH THE GOVERNOR'S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING FROM: David H. Ready, City Manager BY: Veronica Goedhart, Department of Special Program Compliance SUMMARY: Staff seeks authorization to enter into an agreement for grant funding in the amount of $869,540.18 through the Governor's Office of Business and Economic Development (GO-BIZ) for State Equity Grant funding. Staff recommends that the City adopt the Resolution authorizing the City Manager to execute the agreement for grant funds authorized by The California Cannabis Equity Act of 2018 established by Senate Bill 1294 and as amended by AB97. RECOMMENDATION: 1. Adopt Resolution No. __ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS TO ENTER INTO AN AGREEMENT WITH THE GOVERNOR'S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING 2. Authorize the City Manager to execute all documents consistent with this Resolution. BACKGROUND: The California Cannabis Equity Act of 2018 (Bradford, 2018) established a Local Equity Grant Program, which provides grant funds for local jurisdictions. The grant provides funds for direct assistance to local jurisdictions' commercial cannabis Social Equity Programs. The City of Palm Springs ("City") adopted a Social Equity Program ("Program") in March 2019. The Program promotes equitable ownership opportunities for those disproportionately impacted by previous cannabis policies to have access to employment and ITEM NO ....... \ ...... G:==--;z ___ _ 2City Council Staff Report March 25, 2021 --Page 2 Social Equity Grant Funding entrepreneurship in the legal cannabis industry. The City's Program is contingent on grant funding. With the recent award of the GO-Biz equity grant, the City has been awarded a total of $1,118,887 in grant funding. • In 2019, the State of California ("State") allocated grant funds for local jurisdictions that have commercial cannabis equity programs. The grant was administered by the Bureau of Cannabis Control ("Bureau"). On October 9, 2019, the Bureau notified the City of their approval to receive funding in the amount of $100,000. Funds were to be used for direct assistance to local equity applicants and licensees. • In 2020, the State allocated additional grant funds for local jurisdictions that have commercial equity programs. The grant was administered by the California Governor's Office of Business and Economic Development ("GO-Biz"). On April 15, 2020 GO-Biz notified the City of their approval of grant funding in the amount of $149,347. The City received Type 1 funding that provided for the City to complete a Cannabis Equity Assessment and Program Development. • On December 1, 2020 the Governor's Office of Business and Economic Development announced the release of the Grant Solicitation for the Cannabis Equity Grants Program for local jurisdictions for the fiscal year 2020-21. The City qualified for Type 2 funding which provides grant funds to assist cannabis equity applicants and licensees. On March 3, 2020 GO-Biz notified the City of their approval of grant funding in the amount of $869,540. The City intends to allocate the Type 2 funds for local equity applicants and licensees to assist with startup and ongoing costs, to provide technical and business development assistance and to provide workforce development assistance. More information about the State's Cannabis Equity Grant may be found at: https://business.ca.gov/cannabis-equity-grants-program-for-local-jurisdictions/ STAFF ANALYSIS: The City will utilize grant funds to provide assistance to communities that have been disproportionately impacted by cannabis prohibition. The goal of the program is to ensure inclusion of members of these communities in the legal cannabis industry. To date, the City has approved two social equity applicants, one has completed the local and state permitting process and operates a 100% equity owned cannabis dispensary. There have been numerous inquiries regarding additional equity assistance and the continued operation of the City's Program. The ability to provide financial assistance to equity applicants and licensees creates a greater opportunity for success in the legalized cannabis marketplace. 3City Council Staff Report March 25, 2021 --Page 3 Social Equity Grant Funding ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: The City's Social Equity Program is solely funded by the grant funds from the State of California. The City will receive grant funds in the amount of $869,540, there is no required City match. SUBMITTED: Veronica Goedhart David H. Ready, Esq.~ Director, Special Program Compliance City Manager Attachments: A. Proposed Resolution 4ATTACHMENT "A" 5Resolution No. __ _ Page 1 RESOLUTION NO. __ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING STATE OF CALIFORNIA CANNABIS EQIOTY ACT GRANT FUNDING THE CITY COUNCIL OF PALM SPRINGS FINDS: WHEREAS, the members of the California Legislature have recognized the need for Cannabis Equity grant funding; WHEREAS, funding has been provided to the Governor's Office of Business and Economic Development to provide grant funds to local governments pursuant to AB 97 (States. 2019, Ch. 40); WHEREAS, the City of Palm Springs has adopted and operates a local equity . program for commercial cannabis activity; WHEREAS, the City of Palm Springs has determined that it will use grants funds from the Governor's Office of Business and Economic Development to assist local equity applicants and licensees through its local equity program for commercial cannabis activity as described in its application for grant funds. NOW, THEREFORE, BE IT RESOLVED, that the City Manager is authorized to execute by electronic signature on behalf of the City of Palm Springs the grant agreement with the Governor's Office of Business and Economic Development, including any extensions or amendments thereof and any subsequent grant agreement with the Governor's Office of Business and Economic Development in relation thereto. IT IS AGREED that any liability arising out of the performance of this grant agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The Governor's Office of Business and Economic Development and the State of California disclaim responsibility for any such liability. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 25TH DAY OF MARCH, 2021. DAVID H. READY, CITY MANAGER 6Resolution No. __ Page2 ATTEST: ANTHONY MEJIA, CMC, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) CERTIFICATION I, ANTHONY MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ___ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on March 25, 2021, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ANTHONY MEJIA, CITY CLERK _City of Palm Springs, California