South City cannabis distribution industry grows

The decision makes Green Light the second commercial cannabis company allowed in South San Francisco, as officials agreed to embrace segments of the recreational marijuana market in the wake of state legalization.

In advance of the approval vote, most commissioners asked questions regarding the safety protocol to assure the company is not a threat to public health. And while a majority of the officials seemed comfortable that the necessary safeguards were in place, Commissioner Michele Evans said she did not support the business.

“I personally do not like the idea of a distribution center at all, and that’s my personal opinion and I consider it a slippery slope that any city, not just South City, enters into,” she said, according to video of the meeting.

Ultimately, her opinion was outweighed by her fellow commissioners, who were satisfied after asking detailed questions about the amount of money to be stored at the facility, the process for deliveries and other business operations.

Applicant John Poletti shared his business plan to deliver cannabis to other distribution facilities or brick-and-mortar stores across the Bay Area. No retail deals will be allowed at the South San Francisco location, and customers would be discouraged from visiting the site, he said.

The business will operate from an industrial location east of Highway 101 in the area zoned to allow commercial cannabis companies by the South San Francisco City Council last year. The area is at least 600 feet from schools, child care centers or other potentially sensitive locations.

Officials endorsed the marijuana industry in advance of voters agreeing to tax the revenue generated by the businesses. According to Measure LL, companies will be mandated to pay the new tax rate of between 1 percent and 5 percent of gross tax receipts.

Green Light also agreed to pay roughly $5,000 annually into a fund sponsoring drug and alcohol awareness campaigns at local schools.

The fee is similar to one agreed to by The Loaded Bowl, which last year became the first commercial cannabis company to be accepted in South San Francisco.

Unlike its predecessor though, Green Light will only operate as a provider for businesses testing and manufacturing marijuana products, while The Loaded Bowl delivers to customers. Neither company will allow retail sales, as such business is disallowed in South San Francisco.

Poletti said his company will essentially operate as a 4,000-square-foot warehouse from where packaged orders will be distributed to other businesses. The company will conduct minimal cash transactions, and all material must be certified by a testing facility in advance of making it to the market, Poletti said.

To assure all transactions are legal and traceable, Poletti said the company established a thorough tracking system designed to follow materials from order through delivery.

Under the commission’s approval, Poletti is free to seek a permit from the state which will be the final green light needed to begin operations. He said he is hopeful to get the company up and running as soon as possible.

For his part, Commissioner Sam Shihadeh lauded the detailed groundwork laid in advance of seeking approval from officials.

“You did a great job with planning,” he said.

Commissioner Alex Tzeng abstained from voting and Chair JulieAnn Murphy was absent and did not vote.

austin@smdailyjournal.com

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