A legal cannabis economy could bring jobs and increased economic activity to San Rafael, the citys economic development director said in a presentation to the City Council.
Proposition 64 has made recreational marijuana legal throughout California, and cannabis businesses will need everything from lawyers and architects to builders and marketers, Danielle OLeary, San Rafaels economic development director, said at an informational meeting Tuesday.
Its unique, said OLeary, who was economic development manager for the city of Santa Rosa for seven years until leaving in July to come to San Rafael. Its rare that we get to see this kind of economic activity across all sectors.
Watching this industry come online, Ive seen a multiplier effect through job creation, said OLeary, who co-led Santa Rosas medical cannabis committee with the citys planning department. Santa Rosa has been active in the cannabis business space, and OLeary helped the city develop its regulatory process.
Cities across California are exploring how to handle regulation of marijuana. State licensing of retail outlets isnt slated to begin until 2018, and the new law allows local jurisdictions to ban sales in their communities.
In November, Novatos City Council temporarily halted outdoor cultivation and restricted indoor growing, and in December the council extended the moratorium for the maximum period allowed under the law 10 months and 15 days past Dec. 30, 2016.
The moratorium buys the city time while it considers how to regulate recreational marijuana.
There are no legal medical marijuana storefronts in Marin at present, though there are delivery services. The county is in the process of determining four spots where medical cannabis will be allowed to be sold.
No decisions were made at the meeting. After OLearys presentation, City Council members shared their thoughts.
Ive talked with people in the community. They have concerns, said Mayor Gary Phillips.
I share your concern. Its one thing to look at the voting statistics, but what does it mean to voters to have these businesses residing in the community? said Councilman Andrew McCullough. If they are mixed in with downtown retail, is this the kind of business we want?
MARIN SUPPORT
In the Nov. 8 election, 69.6 percent of Marin voters supported Prop. 64. Marin was one of the top three counties supporting the measure, along with San Francisco and Santa Cruz counties.
Addressing Councilman McCulloughs comment, perhaps the council could consider not a retail outlet on Fourth Street, but a low-impact option such as manufacturing of chocolates or distribution, said Joanne Webster, the chief executive of the San Rafael Chamber of Commerce.
Perhaps the council would consider the low-impact options and ask people in the community their opinions as to such businesses, Webster said.
The county has already looked at this, so I would like to know what they have weighed back and forth, said Councilwoman Kate Colin. We often depend on them for insights into these big issues.
Councilwoman Maribeth Bushey said, From what I heard from constituents, the status quo is acceptable. I dont see a lot of people asking to make changes to it. I dont hear a big economic development reason to do this. Whats wrong with the status quo?
OLeary responded, I would say there is a big economic development reason. In the previous community I worked for, it was significant.
TAX REVENUES
The city could collect tax revenues from any or all of the six licensure categories in the General Cannabis Business Tax. These categories are cultivation, distribution, transportation, testing, manufacturing and retail. Possible gross receipt tax options are 5 percent, 10 percent or 15 percent, OLeary said.
Retail dispensaries can bring in $2 million to $18 million in annual sales per dispensary. This would mean possible sales tax revenue to the city of $20,000 to $180,000.
A chief concern expressed by council members was not having downtown San Rafael become known as a place to buy marijuana.
My issue is the consequence to the community, Phillips said.
Why not define the rules and regulate, as opposed to letting it happen to you? Create the landscape you want to operate in and monitor, said Kim Kaselionis.
Kaselionis, the former chief executive of Circle Bank, is the founder of Sausalitos Breakaway Funding, a hybrid crowd-funding platform that helps companies raise money so they can expand and create jobs.
Somebody has to have the will to be first, Kaselionis said.
News Moderator: Katelyn Baker
Full Article: Legal Cannabis Could Spur Economy, San Rafael Official Says
Author: Janis Mara
Contact: 415-883-8600
Photo Credit: Keith Birmingham
Website: Marin Independent Journal
