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care facilities for the elderly or residential hospice or home health <br />agencies <br />Option #3 — City Initiative to Regulate <br />• Propose a ballot measure that permits medical marijuana collectives, <br />but with additional regulations not contained in the collective -backed <br />initiative: <br />• Limit permitted zones to industrial only (M1, M2) <br />• Set a maximum number of dispensaries (8) <br />• Establish distance / separation requirements from sensitive uses <br />and residential properties <br />• Establish certain operational requirements (security, signage, <br />lighting, hours of operation, etc.) <br />• Establish Business License Tax, licensing, registration and <br />minimum basic tax amount <br />• Would not prohibit medical marijuana from being prescribed and/or <br />distributed by State -licensed clinics, health care facilities, residential <br />care facilities for the elderly or residential hospice or home health <br />agencies <br />Fiscal Implications <br />• City sponsored initiative would: <br />• Include sufficient definitions to address the variety of medical <br />marijuana business models (Non-profit, LLC, etc.) <br />• Include definition and tax rate for cultivation (although not <br />permitted) <br />• Include a scalable gross receipts tax rate that could be modified by <br />the City Council <br />• Require monthly remittance of business tax rather than quarterly <br />Revenue Projections <br />• The following projections are estimates based on the experiences of <br />other California cities that currently permit, but regulate, collectives. <br />Planning Annual <br />Planning Permit <br />BusinessLicense& <br />Business License Tax <br />Local State Sales <br />Total <br />Compliance <br />pea ICUPI <br />State <br />Registration &Stara Fee <br />Minimum Basic Tax <br />lax ($�Y%* <br />hued <br />Ravenna <br />Inspection <br />Amount <br />2,000 <br />$10,000 <br />$33 <br />2,000 <br />15,000 <br />$29,033 <br />Gross Receipts Tax Revenue* <br />1% <br />$15,000 <br />2% <br />$30,000 <br />3% <br />$45,000 <br />4% <br />$60,000 <br />6% <br />$90,000 <br />7% <br />$105,000 <br />8% <br />$120,000 <br />9% <br />$135,000 <br />10% <br />$150,000 <br />°Based on estimated annual gross sales of $1.5 mllllon <br />Staff Recommendation <br />Subtotal Per Dispensary $104,033 <br />x 8 Dispensaries <br />Total $632,264 <br />CITY COUNCIL MINUTES 16 JUNE 3, 2014 <br />