Redwood City Council race 2018

Redwood City’s ongoing construction boom is good news for some and excessive for others, and just about everyone agrees that a lack of affordable housing and projected budget deficits are two of the main challenges moving forward.

That is the backdrop for the City Council race, which features seven candidates competing for three open seats.

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(4) comments

Seasoned Observer

Odd that there was no mention of Ms. Reddy's goal of bringing rent control to Redwood City. Her local rent control agenda coupled with State Proposition 10 would be devastating for any Redwood City homeowner who would ever want to rent out their home.

John Baker

But great to the new renter who can afford to spend more money at Redwood City businesses because they pay a more reasonable portion of their income in rent!

rwc voter

VOTE REDDY, UMHOFER! The only ones who can stop the overdevelopment, grentification of our town!

Redwood City voters passed Proposition 64 in November 2016 with 65% approval. So, it is refreshing to see a number of City Council Candidates supporting the Cannabis Tax. It demonstrates an acknowledgement of the will of the voters and a degree of rational thinking. Having a firm grip on reality is indeed a good trait for a City Council Member to possess.

Regardless of one’s opinion it is a fact that Redwood City has cannabis retail sales taking place everyday. Having leadership that understands this reality is important, especially in a time where facts and reality are blurred as fake and alternate. Supporting a tax along with good public policy means that cannabis businesses in Redwood City can be taxed, licensed and regulated to the high standards that Redwood City residents expect as with any business that wishes to come to their town.

Now, the reality is that retail (storefront and delivery) will generate the most tax revenue not cultivation or nurseries and the ancillary R&D that comes with these nurseries. Frankly, cultivation, nurseries and manufacturing are already locating or relocating to agricultural and manufacturing locales where land is cheap, labor readily available and the cost of housing affordable for its employees. Look to San Carlos which has permitted all aspects of the Cannabis Industry except retail and have collected zero dollars because not a single business has opted to open their doors in San Carlos.

Let’s assume a cultivation facility could find a hundred thousand square feet of available space in Redwood City at a reasonable rent (wishful thinking) a typical tax would be $1 or $2 per square foot or $100,000 to $200,000 a year in tax revenue. On the other hand, one retail storefront with delivery would require five to ten thousand square feet of retail space and would likely generate ten million in annual gross sales. At a conservative 5% gross receipts tax collected by the City that would be $500,000 in annual taxes collected. In the City of San Jose which has sixteen licensed taxed and regulated retail storefronts their combined annual sales for the last year were over One Hundred Million Dollars and the result was $10.5 million that went to the City of San Jose. This year they expect the numbers to be higher.

Without locally licensed, taxed, regulated cannabis retail storefronts and delivery Redwood City would be contributing to the survival of the black market for drug sales. To believe that cannabis sales are not happening in your neighborhood now is an alternate fact. Go online type in Redwood City in the location bar along with cannabis and look at the map, it’s everywhere and so is the associated crime and gangs that thrive in illegal markets.

Finally, it is my opinion that any taxes collected should not just go to the general fund but that organizations like Sequoia Hospital, the School District, First 5 San Mateo and the like should receive some portion of the taxes collected to deal with whatever adverse impact cannabis will bring. Everything has an adverse impact and putting our head in the sand won’t make it go away. Dealing with reality and facts to solve potential issues before they become unmanageable is what leaders are elected to do.

Post script – I would advise reading the following editorial article from Alexandra Gallardo-Rooker, Vice Chair of the California Democratic Party in the August 29, 2018 Sacramento Bee: https://www.sacbee.com/opinion/op-ed/soapbox/article217418345.html

Sincerely,
Sean Kali-rai, President & Founder of the Silicon Valley Cannabis Alliance

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