ACTION REQUESTED:
Title
Communication from the City Manager and the Corporation Counsel with a Request to ADOPT an ORDINANCE Creating ARTICLE 19 (OPERATION OF A CANNABIS BUSINESS) of CHAPTER 18 (Licenses and Miscellaneous Business Regulations) of the CODE of the City of Peoria.
Body
BACKGROUND: On October 8, 2019 Council reviewed a first draft of a proposed licensing ordinance for cannabis-based businesses. After council's input, staff has revised the proposed Ordinance with the following changes:
1. The minimum distance limitation remains at 500'. The minimum distance limitation is 350' for tobacco and 100' for retail sale of alcohol. Based on the minimum distance limitations for other adult businesses, 500' appears to be a reasonable restriction. State-licensed day care facilities were added to the definition of schools and houses of worship were added to the areas where the minimum distance limitation applies.
2. The fee schedule was altered to ramp over 3 years for each year the cannabis business is in operation. The fees double from year 1 to year 3. This licensing fee schedule is in spirit with the statue, as the state is rolling out licenses in waves and allows for new entry into the market by not making licensing fees cost prohibitive when initially starting.
3. Any hearing for revocation, suspension or fines will be heard before the Mayor.
4. The fines schedule was amended to be identical to the fine schedule for alcoholic liquor violations.
The amended ordinance does not have a cap on the number of licenses per classification. The state is rolling out licensing in stages, making it difficult to determine what number would be a reasonable cap on licenses. In addition, if a cap was instituted, it could be a barrier to new market entry.
Staff will continue evaluating the legalities of having a site approval process for cannabis based businesses and will report its findings.
FINANCIAL IMPACT: Potential funding increase from licensing fees....
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