Foster City officials have approved the first cannabis-testing laboratory in the city.
The Planning Commission earlier this month unanimously granted Rhine Laboratories a conditional use permit to test cannabis at its headquarters at 3400 E. Third Ave. The company said it plans to “develop best practices” for producing marijuana products including gummies and beverages, according to a staff report.
“I look forward to new diversity in our economy,” Planning Commissioner Evan Adams said during a meeting Nov. 7.
The permit was approved about a year after officials decided to allow cannabis-testing laboratories in the city’s light industrial and commercial mix zoning districts, but just about every other type of cannabis business is banned in the city. Only delivery operations located outside city limits are allowed to deliver to residents if they obtain a business license with the city.
The city’s ban on commercial cannabis originally applied to labs as well, but an exception was later granted for those businesses at the request of Quantum Analytics, a distributor of laboratory equipment that is the parent company of Rhine Laboratories.
“Thank you to the city of Foster City and the Planning Commission for putting in the time and effort to pass these regulations and help us explore these new business ventures and expand our current capabilities,” said Daniel Brown, vice president at Rhine Laboratories.
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The company is one of two tenants in a 22,540-square-foot building adjacent to the San Francisco Bay, the city’s Corporation Yard and Gilead Sciences.
As required by state law, Rhine Laboratories will have to install an extensive security system: the marijuana will be secured by three separate locked access points, visitors will have to provide identification and be accompanied by trained staff while in the building and of course a video surveillance and alarm system will be running at all times.
Rhine also has to obtain a testing laboratory license from the state, which prohibits the company from having a stake in any other type of cannabis company, and the company also has to actively participate in a state-mandated track and trace system. That program is used to record the inventory and movement of cannabis products.
There will be no on-site cultivation of the plant. After the cannabis is tested, it will be mixed with sawdust to render it unusable and then picked up for disposal about once a month.
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