CALIFORNIA CITY — The City Council, today, will consider some changes to its regulations for commercial cannabis businesses in the city.
The Council meeting begins at 6 p.m. at City Hall, 21000 Hacienda Blvd.
To participate remotely via Zoom, the link is https ://us06web .zoom .us/j/84743196869, or participants may call in to (669) 900-9128, meeting ID 847 4319 6869.
Among the changes under discussion are reductions in the taxes the city charges large commercial cannabis businesses as an incentive for these businesses.
According to the staff report by Deputy City Attorney Russ Hildebrand, city staff has been approached by one such business that is proposing to make large investments in the city in terms of property and improvements for such incentives.
With relatively few such large businesses anticipated, the city could potentially freeze the scheduled cannabis tax increases for such entities as an incentive, according to the staff report.
Defining what qualifies as a “large” cannabis would require more analysis, and could be based on parameters such as the amount of taxes paid, or the cost or size of constructed improvements, according to the staff report.
These tax incentives could also be offered on a tiered basis, reducing the rates owed based on facility size and type for the largest facilities. This option would follow the existing code for how the taxes are determined, but would change the rates for the largest businesses.
Another options would work on a year-to-year basis, offering a break to businesses that reach a certain threshold of taxes paid the prior year.
The Council will also discuss adding a microbusiness permit to the city code. This type of permit, defined by the state, would allow for a single entity with a smaller-sized cultivation to grow and distribute, manufacture and sell its products. Businesses must have three of the four activities in order to qualify for the microbusiness permit, according to the staff report.
The city has been approached by at least two developers interested in pursuing microbusiness permits, but the current city code does not recognize these types of businesses, according to the staff report.
Additionally, the Council will discuss a zoning amendment for the Silver Saddle Ranch and surrounding area that would allow cannabis businesses there.
The city has a request to rezone approximately 155 acres in the area from a cannabis developer who purchased the ranch and would like to develop a large cannabis microbusiness with multiple types of uses on that property, according to the staff report.
The developer is also attempting to purchase the surrounding 900 acres, and would like similar zoning to apply.
The items are for discussion only on Tuesday, and for staff to receive direction from the Council as to whether or not such actions such be pursued. If so, any necessary ordinances or other regulations would be brought back at a later time.