HomeMy WebLinkAboutItem 09 Licensing Fee for Medical Marijuana Dispensaries AGENDA ITEM SUMMARY Meeting Date: 5/2/2016
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 MEDICAL MARIJUANA DISPENSARIES
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 AMEND THE BUSINESS LICENSE FEE FOR MEDICAL MARIJUANA
DISPENSARIES.
ISSUE
STATEMENT:
The city seeks to lower the licensing fee applicable to medical marijuana
dispensaries in the City of Springfield.
ATTACHMENTS: Attachment 1 – Proposed Resolution
DISCUSSION/
FINANCIAL
IMPACT:
Medical marijuana dispensaries are currently required to obtain a business license
from the City and pay a fee of $1,092 per year under SMC 7.600 et seq. The City
Council has recently adopted new business license and associated regulations for
recreational marijuana businesses. The Council has set the license fee for
recreational marijuana businesses at $2,000 per year. There are currently 8 medical
marijuana dispensaries located in the City of Springfield, and to date, 7 of those
have applied to OLCC to become licensed as recreational marijuana businesses. If
those facilities become licensed as recreational businesses, they will pay the higher
recreational marijuana license fees and will no longer pay the medical marijuana
dispensary fee. The new proposed fee for medical marijuana dispensaries is $750
per year. If this Resolution is adopted, the medical marijuana dispensary fee will be
lowered in the City’s Master Fees and Charges Schedule and updated as per
Council direction in the future.
The financial impact is unknown because it is not definitely known how many
current medical marijuana dispensaries within the City of Springfield will convert
to recreational marijuana business, and whether any new medical marijuana
dispensaries will locate in the City of Springfield. If 7 out of the 8 existing
dispensaries convert their licenses to recreational marijuana businesses, and no new
medical marijuana dispensaries locate in Springfield, then the financial impact of
this proposed fee decrease would be a loss of $342 per year to the City of
Springfield. This loss from the single remaining dispensary would be offset by
$6,356 in additional revenue from the 7 potential recreational businesses, for a net
gain of $6,014 to the City of Springfield.