Local delivery-only cannabis operator urges Avalon to allow adult-use deliveries; council asks staff to return with options

Founders of Urba/Erba Catalina presented to the council a request to expand the city's existing medical cannabis delivery license to permit adult‑use (recreational) delivery, arguing the change would curb an active street‑level black market and bring local revenue. Alexander Wenger and Jay Handel, who said they operate medical delivery on the island, asked staff to review an amended ordinance and a sample development agreement that would provide the city 5% of gross receipts for a one‑year trial.

Handel told the council that limiting delivery to medical cards is driving customers to unregulated sellers. "By not allowing us to do, adult, you're basically propping up the black market in your city because they'll thrive," he said, urging the city to consider a short pilot to evaluate impacts. He and Wenger said regulated delivery provides seed‑to‑sale tracking, age verification and tested products, and would capture tax or fee revenue that now leaves the local economy.

Council members pressed staff and the city attorney on legal and operational questions: whether a development‑agreement fee equals a special tax and thus requires voter approval, delivery logistics (deliveries must be to a brick‑and‑mortar address under current law), and whether opening the permit would require a new competitive process. City Attorney Scott said a special tax would need voter approval but a development agreement can be structured to avoid going to voters; he also noted the municipal code allows the council to increase the number of licenses if the council finds community benefit.

Public safety officials and council members raised concerns about tourists and cruise‑ship visitors who lack a local address and about possible increases in calls for service. Sheriff’s Captain Matthew King and the fire chief described response patterns and cautioned the council to consider enforcement and public‑safety mitigation. The applicant offered to work with law enforcement on compliance and suggested restricting purchases to residents or people with a demonstrable delivery address.

After extended Q&A, the council directed staff to return with a menu of options: draft ordinance language, explanations of procurement or RFP alternatives, the prior ballot history and vote counts, potential tax or development‑agreement structures, and public‑safety mitigation measures. The council did not take immediate action to change the ordinance; the direction was to bring the options back for deliberation and public posting so the community can review proposed text.