Jessica Cejnar / Wednesday, April 15 @ 12:45 p.m. / Local Government

City's Commercial Cannabis Regs Take Effect in May Though It's Not Expected to be an Economic Boon

Though commercial cannabis businesses can set up shop in Crescent City next month, officials don't expect a huge economic windfall. LoCO file photo.

A retailer, cultivator or manufacturer of commercial cannabis will be able to set up shop in Crescent City next month.

After several months of discussion, the Crescent City Council adopted the final ordinance last week. However, though 1 percent of the sales tax revenue generated from commercial cannabis retail will be allocated to the city, its Planning Commission doesn’t see the industry as being a large generator for the community, according to Public Works Director Jon Olson.

“But this could help our overall goals of becoming a thriving local economy,” Olson said.

Crescent City’s commercial cannabis ordinance allows indoor cultivation, manufacturing, processing, distribution, micro-businesses, testing and retail in its commercial areas and highway service district.

The commercial cannabis operator must obtain a use permit, a $15,000 surety bond and submit a $1,000 deposit to the city, Olson said. He said the city intends to take a cost-recovery approach to commercial cannabis, only issuing a use permit when all fees associated with “whatever research, planning and meetings that go along with that” have been paid.

Humboldt County, Eureka and Arcata follow the same cost-recovery model with regards to commercial cannabis, Olson told Councilors. Their deposits are $4,500, $1,015 and $4,096 respectively, he said.
Mayor Pro Tem Heidi Kime asked Olson if he feels confident that $1,000 will cover the city’s costs in full.

Olson said called the proposed deposit a good starting point to see what the city’s true costs will be. For “regular businesses,” Crescent City’s fees for a use permit are typically between $500 and $800, Olson said.

Crescent City’s commercial cannabis ordinance restricts indoor cultivation to 2,000 square feet. Retailers cannot operate within a 600-foot radius of a K12 school or daycare center. A commercial cannabis proprietor cannot advertise within 1,000 feet of a playground, daycare center, youth center, community use center or public library, according to the ordinance.

The ordinance also limits a storefront retailers’ operating hours to 6 a.m.-10 p.m. and stipulates that no more than 10 percent of any window or door may be obstructed allowing law enforcement to see inside the public area.

According to Olson, the $15,000 surety bond is to protect the city in case cleanup or law enforcement is required. A business owner must also obtain active enrollment in the state’s track and trace program.


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