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Bellflower council opens March window for cannabis CUPs, approves one‑year guarantee and deposit rules
Summary
The council voted 5–0 to authorize staff to accept cannabis conditional‑use permit (CUP/CVP) applications during a March 1–31 window, requiring new applicants to prepay an initial deposit equal to one quarter of estimated cannabis taxes and to provide a one‑year guaranteed revenue figure; staff will audit quarterly reports and council retains renewal discretion.
Bellflower — The City Council adopted Resolution No. 026‑05 on Feb. 17, authorizing the city manager to begin accepting and processing cannabis‑related conditional‑use permits and related CBP/CVP applications between March 1 and March 31. The motion, made by Council member Dutton and seconded by Council member Coops, passed on a roll‑call vote of 5–0 (ayes: Mayor Pro Tem Sanchez; Council members Dutton, Coops, Morse; Mayor Sanchez).
Under the adopted framework staff described at the meeting, new applicants must submit a sealed pro forma bidding a 12‑month revenue estimate and prepay an initial deposit equal to one quarter of the pro‑jected cannabis tax the city expects to collect on that estimate prior to issuance of a CBP/CVP. The deposit and the one‑year guarantee are intended as safeguards against speculative or inflated bids and to help the city identify the most viable operator for limited permit slots.
City staff said permits would be issued on an annual cycle (renewable in December) and that the council could withhold renewal if an operator failed to meet performance expectations tied to its pro forma. Operators will report taxable gross receipts to the city on a quarterly basis and staff will conduct periodic audits to ensure reported sales align with remittances.
Councilors debated whether to expand the minimum separation between dispensaries from the existing 1,000‑foot rule to 3,000 feet; staff said a code amendment would be required for a permanent change but advised the council it could impose a 3,000‑foot condition for the current round if desired. The council did not adopt a 3,000‑foot municipal‑code change at the meeting and agreed to proceed under the present code while staff returns with further analysis.
Council members and staff emphasized that the deposit and first‑year guarantee are limited to the initial award period and that subsequent years would be governed by the operator’s actual quarterly reports and any audit adjustments. Staff also said the initial deposits apply only to new CUP/CVP issuances and serve to discourage "pie‑in‑the‑sky" estimates from applicants.
Next steps: staff will publish application materials and a one‑ or two‑page summary on the city website, reach out to existing regional operators, and accept applications in the March window described in the resolution. The council voted to adopt the resolution as amended with supplemental material and authorized the city manager to proceed.
