Cannabis businesses operating in Redwood City are getting a bit of a financial break.
Changes in the management of the city’s cannabis program is cutting down annual fees for the six business operators by 34%, an adjustment approved by the Redwood City Council at its board meeting May 19.
Previously, cannabis businesses were paying $49,129 in annual fees to maintain and renew their permit to operate in the city. Now, the fees will total $32,496. Business operators shared their support for the reduction in fees through written public comments.
Josh Lewis, government relations manager at Embarc, a retail cannabis business operated at 1870 Broadway, shared his appreciation for the thoughtful updated fees.
“Redwood City continues to set the bar for thoughtful, responsive governance,” Lewis said in a written public comment. “We’re proud to be operating in a city that prioritizes transparency, accountability and effective oversight.”
The cut is a reflection of streamlined procedures, the removal of outdated fees, and a shift in the program’s management, said Economic Development Director Amanda Anthony.
The city will be “serving in more of a support role than a lead role,” and a third-party contracted service provider will be responsible for application review, compliance inspections, audits, and enforcement activities. Shifting the management is to make the business program more efficient, Anthony said.
The Redwood City Police Department previously played a large role in the program’s management, but this will be reduced significantly as the city hasn’t experienced public safety problems with local business operators, Anthony said.
The city will not be considering any new businesses to operate in the city, Anthony added, noting that the Cannabis Business Application Processing Fee will be officially removed from the permit application as well.
Although the contracted service provider will manage the cannabis business program, the city will remain responsible for policy making.
Councilmembers shared a desire for an informational item on fees more frequently.
(650) 344-5200 ext. 106
(65) 344-5200 ext. 106
Daily Journal staff
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