Calexico OKs retail cannabis
CALEXICO — Retail cannabis operations will now be permitted in Calexico, following the final approval of a pair of revised ordinances by the City Council on Wednesday.
Individuals interested in operating retail cannabis businesses here will be able to submit applications to do so starting in 30 days.
The city will allow up to five cannabis retail operations, including dispensaries and non-storefront delivery businesses.
“The City is looking to limit retail-type businesses to five at this time to take a conservative approach to these direct-to-consumer business types,” an agenda backup document regarding the proposed resolution stated.
Retail businesses will also be required to abide by a series of conditions established by the city, including a prohibition against being located less than 600 feet from a school, not operating outside of the hours of 6 a.m. and 10 p.m., and providing customers with packaging that conceals its contents.
In January, the council will consider adopting a resolution that will establish the tax rate on gross receipt sales and a tax rate for space used for cannabis businesses, which generally applies to cultivation facilities, said Assistant City Manager Miguel Figueroa in an email.
“The (tax) rates that will be adopted will be based on the current market rates for cannabis in California,” Figueroa stated.
Measure K, the recent voter-approved cannabis tax measure, has already set the ceiling for such tax rates.
It established a 15 percent maximum on the gross receipts of the sale of cannabis and cannabis related products, as well as an additional tax of up to $25 per square foot of space utilized, in the case of cultivation, Figueroa said.
“(Measure K) allows the City Council to adjust tax rates up or down, by ordinance, provided no rate exceeds the maximum without future voter approval,” he said.
The resolutions passed by a 4-0 vote on Wednesday. Councilwoman Maritza Hurtado was absent.
The council’s action on Wednesday comes about a year and a half after it had initially authorized the cultivation, manufacturing, distribution and testing of cannabis and related products within the city’s Cannabis Overlay Zone.
At that time, many council members expressed a reluctance to authorize retail operations such as cannabis dispensaries and delivery businesses.
The council’s approval of the revised ordinances on Wednesday was done without much discussion or fanfare, and represented the second time the council considered and subsequently approved the resolutions.
The resolutions, which revised the city’s cannabis-related zoning and business licensing and regulatory ordinances, had initially come before the council during a Dec. 5 regular meeting.
On Dec. 5, council members and city officials had spoken at length about the resolutions, which had also elicited the support of one member of the Valley community.
That community member had also questioned whether the tax revenues generated by the city’s cannabis industry would support public services in general, or law enforcement and public safety specifically.
In response, Figueroa indicated that the city was considering sharing records of Measure K’s revenues and expenditures with the public to further promote transparency.
“We are looking into establishing a process so there can be accountability on a monthly basis,” he said.
During that meeting, Mayor Lewis Pacheco also said that the authorization and regulation of retail cannabis operations should also allow the city to capitalize on cannabis delivery sales that are already taking place.
“They are coming into the city and delivering cannabis without being taxed,” Pacheco said. “We’re losing out on this revenue stream.”
Under the city’s newly adopted regulations, delivery operators would be required to delivery solely to a physical address, store products in a locked area, not carry products whose total value exceeds $10,000, maintain an inventory ledger and log all deliveries.
The city’s approval of retail operations also allows for the establishment of nurseries, microbusinesses, special event permits and shared-use facilities.
A nursery would be prohibited from selling directly to the public, and would solely produce clones, immature plants, seeds, and other agricultural products used specifically for cultivating cannabis.
A shared-use facility would allow multiple manufacturers to operate at separate times at the site of a registered permittee.
The establishment of a microbusinesses would require the inclusion of three of the following: cultivation, manufacturing, distribution and/or retail. The cultivation and manufacturing would be done on a smaller scale.
Special events would allow for the onsite sale and consumption of cannabis products for those 21 and older, and be limited to four such events a year within the city.