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Council previews adult‑use cannabis licensing rules, recommends $10,000 annual fee and lottery selection
Summary
Staff told the council it folded adult‑use licensing into Chapter 14 and land‑use performance standards into Chapter 56, removed proposed impact and financial‑security fees, recommended a $10,000 annual license, and proposed a lottery (not merit) to allocate a limited number of retail licenses.
Danielle, a staff presenter, told the City Council the administration had revised a draft adult‑use cannabis ordinance to fold licensing rules into Chapter 14 and move performance standards into Chapter 56 of the city code, addressing procedural concerns raised by the planning board.
“Our recommendation right now is $10,000 for [the] license,” Danielle said, noting municipalities vary widely and the state provides no fee guidance. She added the fee would be annual.
On selection, staff recommended a lottery rather than a merit‑based system to ensure an equitable process for a limited number of licenses. Danielle said applicants must hold a conditional state license and meet state requirements before entering the local lottery.
Staff also reported removing a prior proposed requirement that applicants show proof of substantial financial investment after planning‑board feedback that the rule unfairly disadvantaged smaller operators. The draft likewise eliminates impact fees that appeared in earlier versions.
On operations, Danielle explained state law limits local control of off‑site deliveries: deliveries must be made by establishment employees, are not allowed when a store is closed and are restricted near drug‑free zones and within the state’s hour‑of‑operation window. Council members discussed whether to align local hours with the state (7 a.m.–10 p.m.) or adopt a shorter local window; the council indicated a preference to align with state hours.
The council discussed whether a longstanding medical caregiver, Cure Leaf, could convert to adult‑use retail outside the lottery. Danielle said conversion would subject that business to the more rigorous adult‑use regulatory and testing regime; council members signaled support for allowing conversion if the operator chooses.
Staff outlined next steps: adoption of the licensing ordinance on the January agenda, planning‑board review of Chapter 56 in February, a zoning overlay mailer and adoption in March, a proposed application window in mid‑April, conditional council approvals in June, and final state active‑license processing subject to the state’s 90‑day review period.
No formal votes were recorded during the workshop; staff said the council will consider a voting draft at upcoming meetings.
