HomeMy WebLinkAbout11/4/2015 - STAFF REPORTS - 00 Dear Mayor, City Council and Staff, November 3, 2015
It has come to my attention that approval of the sixth Medical Marijuana
Collective / Cooperative permit for Palm Springs may not be on the agenda for
the November 181h, 2015 City Council Meeting. I believe that this would be ill
advised and have taken the time to show cause along with good reason for why
this should be addressed. I am certain you will see the positive value created for
all and the disadvantages which can be eliminated or reduced.
1. The current Palm Springs Comprehensive Medical Cannabis Code calls for a
60 day application period followed by a 30 day period for the City Council
to complete the reviews. That time frame ends on November 18`h and it
would appear to require City Council approval for an extension.
""Application Period" means a sixty (60) day period commencing on a date
approved by the City Council (or such period of time as the Council may
establish) plus an additional thirty (30) days (or such period of time as the
City Council may establish) to complete the reviews and the preparation of
the reports called for in Section 5.35.210."
2. During the pendency of the approval process 7 commercial properties
totaling 23,734 square feet are being held off market. Needlessly
extending the approval process is unfair to these landlords and/or owners.
Additionally, it hinders or delays other economic development in Palm
Springs and the tax revenues that that activity will generate.
3. Newly passed state legislation AB-266 provides for preferential treatment
for MCCCs permitted by local cities and in operation before January 1,
2016. Delaying the approval decision to December 2"d or later would make
it almost impossible for the permittee to be operational within this time
frame. Obviously this would put that permittee at a disadvantage in the
future. o
z
:z'' o
n
m MK 2t
S cnm
''ttr ro0
tp
.P��jlii✓ �*�nnevL"r
"19321. (c) Notwithstanding subdivision (a) of Section 19320, a facility or
entity that is operating in compliance with local zoning ordinances and
other state and local requirements on or before January 1, 2018, may
continue its operations until its application for licensure is approved or
denied pursuant to this chapter. In issuing licenses, the licensing authority
shall prioritize any facility or entity that can demonstrate to the
authority's satisfaction that it was in operation and in good standing with
the local jurisdiction by January 1, 2016."
4. Only when a permit is approved and the MCCC is in operation, does Palm
Springs begin to collect Sales Tax, Measure J Tax and Cannabis Tax. These
taxes should be well in excess of$400,000 for the first year of operation.
(Based on 100 patients a day spending $100 each and a total tax rate of
12%). For each month of delay, the city will lose $30,000 in taxes per
month.
5. Most importantly, November 18th is presumptively the last date for the
current City Council to consider approval. On December 2nd the new City
Council will convene with potentially 3 new members who will be largely
unfamiliar with the history and progress on medical cannibals in Palm
Springs. They certainly will not be familiar with past applicants and the
application process. It would be unfair to both the new City Council
members and the applicants for this decision to be brought before the City
Council on day 1 of their new terms.
On a closing note, I would like to say that the items cited above are solid business
and legal reasons for moving expeditiously. It is worth noting that the patients
will benefit in a medical and humanitarian way as well.
Thank you for your consideration.
Rick Pantele