Cannabis shops get OK in Redwood City

Permits were issued on Monday, March 28, to four businesses, Juva Retail RWC Inc. at 2301 Broadway; Responsible and Compliant Retail Redwood City LLC at 1870 Broadway; Runway Services Inc. at 928 Whipple Ave.; and MMD Redwood City Inc. at 1746 Broadway.

The shops are the first of possibly six storefronts councilmembers agreed could be welcomed to the city, having adopted an ordinance with specific parameters in 2020. Under the ordinance, brick and mortar cannabis stores are limited to areas where general retail is currently permitted and must comply with additional restrictions such as being at least 600 feet away from existing sensitive areas including schools, child care facilities, public parks, youth centers and libraries.

City staff and the firm contracted to assist in the permitting process, Hinderliter, de Llamas & Associates, reviewed 28 applications which included information around neighborhood compatibility, security and safety plans and community benefits plans, according to the press release.

Councilmembers directed staff to only interview applicants who received a 90% score in their review and Stevenson Diaz had the final call on which applicants would receive permits. Juva Retail received a score of 96%, Responsible and Compliant Retail nearly a 94.91%, Runway Services Inc. a 94.44% and MMD Redwood City a 94.38%.

“After meticulous review of all 28 applications received, these top candidates satisfy the established criteria to operate storefront retail cannabis businesses in Redwood City,” Stevenson Diaz said.

Once open to the public, which Assistant City Manager Alex Kojikian has previously stated could take eight to 12 months after receiving all necessary permits, the operators will be subject to routine inspections, audits and oversights, according to the release. Given that cannabis sales are limited to people ages 21 and older or 18 and older for medical patients, according to state law, shops are also expected to implement strict ID checking procedures.

Public use of cannabis is illegal and punishable by fine, law enforcement officials have noted during multiple city-hosted meetings on the issue. City ordinance also requires that cannabis shop operators make security camera footage available to law enforcement to assist the agency in deterring criminal behavior and to monitor business activity.

Shops could also lose their permit, which is required to be renewed annually, if the city finds they have not fully complied with the parameters of the city ordinance. A $29,530 permit renewal fee would help cover consulting costs while also reserving $10,000 for cannabis drug education prevention for children and youth.

In addition to a 15% state tax and nearly 10% city sales tax, the shops will also be charged a 4% general tax on gross receipts by the city. In total, staff anticipate the businesses will generate between $500,000 and $750,000 of revenue for city services in the first full year of operation, according to the release.