The city of Santa Barbara has awarded two non-storefront marijuana retailer permits.
Matt Fore, senior assistant to the city administrator, said Wednesday at a public hearing that the permits go to Coastal Manufacturing, LLC, to operate at 819 Reddick St., and Santa Barbara Manufacturing and Supply Company, LLC, at 400 East Gutierrez St.
The permit is for manufacturing, distributing and delivery service — which allows a retailer to sell and deliver cannabis products to paying customers.
“This authorization that we are giving to these companies does not mean they can go out to their building today, unlock the door and start the business,” Fore told about 14 people gathered inside the Santa Barbara Public Library’s Faulkner Gallery. “The city’s work and oversight as it pertains to these operations have just begun.”
The permits are valid for 12 months, Fore said. There’s an annual review to ensure business plans and performance have complied with the local and state regulations.
The Santa Barbara City Council adopted an ordinance to regulate and permit commercial cannabis-related businesses and established the application process and criteria to be used for any permitted commercial cannabis business.
Santa Barbara allows for three retail storefront commercial dispensaries within the city, Fore said, but “there is no limit” to the number of non-storefront retailers.
Applicants for non-storefront retail underwent a competitive permit process, which was open from February to April, Fore said.
Applicants were measured based on a scoring system and evaluation criteria, including 400 points for the business plan, 25 points for its labor and employment plan, 75 points for the air quality plan, 300 points for its safety and security plan, and 200 points for the neighborhood integration plan.
“We as a city scored these applications twice, and we used the same criteria each time,” he said. “For the applicants, they are simply competing against a scoring system.”
Fore said non-storefront retailers must be located at least 600 feet away from a K-12 school or “certain types of” daycare centers, and applicants had to pass criminal history background checks.
City Administrator Paul Casey convened an interdepartmental team comprised of the city attorney’s office, a land-use planner, the fire and police department, as well as the finance department to review and score the applicants.
As of Wednesday, a total of 14 non-storefront permit applications had been received by city staff. Of those cannabis-related businesses, six were asked to interview in a public meeting in Santa Barbara.
“Our goal at Coastal is to be friendly neighbors,” said Julian Michalowski, representing Coastal Dispensary. “We are aware of some of the issues in the neighborhood.”
Clay Becker, representing Santa Barbara Manufacturing & Supply Company, echoed Michalowski’s thanks to the city.
“It was a real challenge, and we are happy to meet that challenge,” Becker said. “We are excited to be working here.”
Regulatory Oversight and Next Steps
New permit holders may not begin operation until the city administrator determines that all conditions have been met. Fore stressed that the businesses must implement the design and operation commitments stated in their applications and subsequent submittals.
“If they pledge to have 35 cameras in or around the building, we will make sure there are 35 cameras,” Fore said. “City staff will be at these places all of the time, making sure that what is submitted on the plan is actually built.”
In addition to obtaining a city business tax certificate and paying the commercial cannabis permit fee, the company must comply with all relevant state and local laws and regulations.
“Even after operations commence, city staff will still be overseeing the locations,” Fore said.
California voters legalized adult-use cannabis by approving Proposition 64 in 2016.
— Noozhawk staff writer Brooke Holland can be reached at bholland@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.
