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HomeMy WebLinkAboutItem 08 Licensing Fee for Recreational Marijuana Businesses AGENDA ITEM SUMMARY Meeting Date: 4/4/2016 Meeting Type: Regular Meeting Staff Contact/Dept.: Mary Bridget Smith, CAO Staff Phone No: 541-746-9621 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Enhance Public Safety ITEM TITLE: LICENSING FEE FOR RECREATIONAL MARIJUANA BUSINESSES ACTION REQUESTED: Conduct a public hearing and adopt/amend/not adopt the following Resolution: A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD AMENDING THE MASTER FEES AND CHARGES SCHEDULE AS ESTABLISHED BY THE SPRINGFIELD MUNICIPAL CODE TO INCLUDE BUSINESS LICENSE FEES FOR RETAIL AND NON-RETAIL RECREATIONAL MARIJUANA BUSINESSES. ISSUE STATEMENT: Under House Bill 3400 (2015), local governments may pass ordinances relating to and governing the production, use, sale, and licensing of recreational marijuana. The city seeks to adopt a licensing fee applicable to recreational marijuana businesses in the City of Springfield. ATTACHMENTS: Attachment 1 – Proposed Resolution DISCUSSION/ FINANCIAL IMPACT: Medical marijuana dispensaries are currently required to obtain a business license and pay a fee from the City under SMC 7.600 et seq. The City Council has already held a first reading on the business license and associated regulations with recreational marijuana businesses and City staff is proposing a license fee pertaining to those businesses. If this Resolution is adopted, this fee would be incorporated into the City’s Master Fees and Charges Schedule and updated as per Council direction in the future. A staff review of business license fees charged by other cities including Portland, Eugene, Gresham, Corvallis, Bend and Medford for recreational marijuana businesses showed a wide range of fees from zero to $5,000 per year. Springfield currently charges medical dispensaries just over $1,000 per year (recently adjusted for inflation). Council indicated at their November 9, 2015 work session that staff should recommend a fee that distinguishes the production and sales activity of recreational businesses from medical dispensaries and is in line with what other cities charge. Staff recommends a fee of $2,000 annually. Council may adjust this fee as it feels appropriate now and each year thereafter. The financial impact is unknown because it is not currently known how many retail and non-retail recreational marijuana businesses will locate in the City of Springfield. RESOLUTION NO. _______ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD AMENDING THE MASTER FEES AND CHARGES SCHEDULE AS ESTABLISHED BY THE SPRINGFIELD MUNICIPAL CODE TO INCLUDE BUSINESS LICENSE FEES FOR RETAIL AND NONRETAIL RECREATIONAL MARIJUANA BUSINESSES WHEREAS, the Council has determined that retail and nonretail recreational marijuana businesses may conduct business within the Springfield city limits; and WHEREAS, on March 21, 2016, the City Council held a public hearing and first reading adding to the Springfield Municipal Code, Sections 7.1100 through 7.1104 regulating recreational marijuana businesses; and WHEREAS, the Springfield Municipal Code requires specific businesses to obtain a business license; and WHEREAS, Section 7.1102 requires retail and nonretail recreational marijuana businesses to obtain a business license; and WHEREAS, the Council has determined that the license fee for a retail recreational marijuana business shall be $2,000.00; and WHEREAS, the Council has determined that the license fee for a nonretail recreational marijuana business shall be $2,000.00. NOW THEREFORE BE IT RESOLVED as follows: 1. A business license fee of $2,000.00 is required to be paid by all retail recreational marijuana businesses. 2. A business license fee of $2,000.00 is required to be paid by all nonretail recreational marijuana businesses. 3. This resolution shall take effect upon its adoption by the Council and approval by the Mayor. Adopted by the Common Council of the City of Springfield by a vote of ____ for and ____ against. _______________________________ Mayor ATTEST: _____________________________ City Recorder