A limited number of cannabis dispensaries and cultivation businesses can now set up shop in Pittsburg.
The City Council this week amended its rules to allow a broader range of cannabis businesses — including retail, cultivation and microbusinesses — but also has added a protection for churches, making sure they are at least 600 feet away from such establishments.
The ordinance, which specifies areas where cannabis businesses can locate, also requires a four-fifths’ vote to increase the number of cannabis businesses permitted or expand the locations where they can operate.
Staff anticipates each retail cannabis business would generate between $550,000 and $650,000 annually in combined cannabis business taxes, sales tax, and Measure M sales tax, Jordan Davis, director of community and economic development, said. He also estimated each cultivation, manufacturing, and/or distribution business would generate over $100,000 annually.
“While retail cannabis and its revenues are enticing, they will not alone solve any of the city’s budget challenges although they would help augment programs and infrastructure,” City Manager Garrett Evans noted.
Councilwoman Shanelle Scales-Preston said she hoped the added revenue would go toward youth programs, but Jordan said the money will be added to the general fund and the council can later prioritize where to spend the money.
The city first allowed for cannabis manufacturing, distribution and testing along with up to a 10% tax to be included in the business’ operating agreements in 2018. Since then, more businesses have expressed interest in areas not currently permitted.
Council member Jelani Killings said he was concerned that the city could become oversaturated with retail cannabis businesses on main thoroughfares.
“I understand the economic development and the sales tax generation,” he said. “But I think there’s a larger high level conversation around ultimately, what is the impact that we want the cannabis industry to have in the city of Pittsburg? So, I have a lot more caution around that.”
The ordinance, however, limits the number of commercial cannabis businesses that may be approved within the city to two in each of the four zones, which are currently zoned commercial or light industrial. Under the ordinance, they would only require one business permit even if theory had several uses.
“There are many safeguards in place to make sure we don’t have a sudden rush of retail businesses,” Evans said.
Killings and others also wanted to protect houses of worship by listing them as “sensitive areas” requiring a 600-foot buffer zone between them and the cannabis business. Schools, parks, youth centers, daycares and libraries already have this requirement.
“Right now we’re saying (allow cannabis) just in these four areas, but tomorrow’s council may say, we do want to allow it in these commercial areas, or whatever,” he said. “And if we don’t protect the houses of worship now and call them out as a sensitive use, then they’re going to be overrun when it comes to future decisions.”
Vice Mayor Holland Barrett-White agreed.
“The reality is that our community has a lot of churches, right and so I think the majority of us see them as sensitive uses,” he said. “I’ve been approached by several religious institutions that just don’t see it (cannabis) in line with what they seek to do. And I want to be respectful of that.”
Mayor Merl Craft, however, noted some houses of worship may have less than a handful of members, meet in backyards and don’t have business licenses and shouldn’t be included in the buffer zone.“I’m not really concerned about those; I’m concerned with the existing with the established church,” she said before motioning for the vote. “And so again, we also have to keep in mind that we’re talking about revenues as well. And part of the city and this Council’s business is to bring in revenues to the city. It’s part of economic development.”
The changes were approved on a 4-0 vote, with Councilman Juan Banales recusing himself due to a potential financial conflict of interest.
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