Pause on cannabis ordinance in Chico is a good move

Just as when the Chico City Council created a temporary committee to hammer out the commercial cannabis ordinance, there still are questions about the ordinance.

So it made sense for the council to halt the process earlier this month, although it had adopted the ordinance.

While a temporary committee took a number of months and great detail to create the ordinance, it was missing an element that the community expected: Revenue to the city.

The ordinance includes eight fees including initial application fee, background fees and permitting fees, but those were designed to cover costs. There was nothing about getting revenue from the transactions other than the state-required sales tax. City fees have been based on cost recovery, but there was elbow room to talk about what more could be required, such as extra policing or covering the appeals process.

Councilor Sean Morgan — who had voted in favor of the ordinance originally — asked for reconsideration of his vote and more discussion about fees.

Assistant City Manager Chris Constantin told the council that reconsideration of fees means the activity would be put on hold. Constantin noted that the city has received one application, but there has been much interest in establishing stores that the ordinance allows.

The city has already established a page on its website with details for applicants.

As for that one application, the council decided to let that individual decide between refunding the fees paid or just waiting to see what the council eventually decides.

The city’s attorney’s office will be following up with more information to guide the council, including details on additional fees and possible taxes.

If cannabis can be a revenue generator for the city, it should be pursued.

It will be interesting to see what this new council’s take will be as the discussion progresses.