Redmond holds public hearing on retail marijuana rules and a 3% local sales tax; council schedules second readings

The council opened a public hearing on a package of ordinances to allow and regulate retail marijuana dispensaries in Redmond and to impose a 3% local sales tax on retail marijuana items. Staff described draft updates to the city code on time, place and manner (TPM) rules, proposed sign restrictions, business license changes and the mechanics of a local tax modeled on existing room and rental car tax programs.

James Wood, the city finance director, summarized the proposed marijuana tax program: “simply put, the tax program … requires quarterly reporting, payments, and, is similar to the the current room tax, program, as well as the rental car tax program that we have in place now.” He said the draft ordinance includes enforcement tools (interest, penalties, liens, audits, civil judgments), a 2% administrative withholding for retailers and an exemption aligned with state law for Oregon Medical Marijuana Program cardholders.

Planning staff and the planning commission reviewed TPM buffer maps showing restricted areas (schools, parks, treatment centers, shelters) and proposed limits on proximity between dispensaries. The planning commission recommended several changes: narrower buffers near the transit hub (suggested drop to 250 feet in some areas), increasing separation from shelters to 1,000 feet, and allowing a staff‑level variance process for marginal properties. Tobias Colvin, chair of the Urban Area Planning Commission, warned that very large buffers could make it difficult to find suitable sites if the city’s cap (1 dispensary per 10,000 residents, a locally derived limit) leaves only three licenses available.

Representatives of the Oregon Liquor & Cannabis Commission (OLCC) advised that statewide retail rules allow delivery within the licensed jurisdiction but that local TPM ordinances can limit delivery privileges. OLCC staff also described the state’s approach to tax compliance certificates and license renewal when tax obligations are not met.

One public commenter, representing a cannabis operator and commercial real‑estate interests, urged the council to avoid large buffers that would make sites infeasible and said market constraints and landlord restrictions already limit saturation.

Council conducted first readings of four ordinances by title: the 3% marijuana tax (Ordinance 2025‑02), TPM code amendments (2025‑03), sign code amendments (2025‑04) and business license amendments (2025‑05). All were read on first reading and are scheduled for a second reading and final vote on April 8; staff said the ordinances would take effect 30 days after adoption and retailers could start the selection process in May with possible openings later in the summer or early fall.

Councilors discussed further issues staff will resolve before second reading, including the deposit requirement for tax collections, whether to allow delivery inside city limits, and whether a variance process should be required when a buffer circle overlaps a property line by a small margin.