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