Encinitas will select four winning cannabis retail business license applicants in an Oct. 10 televised draw. On the 21st, the city manager reported to the city council last week.
City manager Pamela Antil said the draw will take place at City Hall at 1pm and eligible applicants will be notified about the event.
However, applicants and anyone who wants to witness the process cannot do so in person – they have to watch it on TV.
“There’s really no opportunity to watch. It’s very tightly regulated,” Antiil said.
After the draw closes, the names of the four winners will be posted on the city’s website:
In 2020, Encinitas voters approved a civic initiative — Measure H — to allow cannabis retail, cultivation, manufacturing, kitchen, distribution, and personal use cultivation, subject to certain regulations and restrictions. In the case of retail, four business licenses will be issued.
Proposed retail marijuana businesses must be at least 1,000 feet away from “sensitive uses” such as schools, day care centers and playgrounds, according to rules set out in the Citizenship Initiative. They can work between 7am and 9pm and must be equipped with security cameras, sirens and 24-hour security.
Applicants who want to obtain one of the four retail business licenses must submit their proposal to the city by February 2. 18. The city received 200 applications and began ranking. Preference is given to applicants with at least 12 months of experience as a cannabis business owner, 36 months as a pharmaceutical business owner and 18 months as an Encinitas business owner. Applicants who meet all criteria are eligible for the highest level of eligibility in the lottery process, the city’s website shows.
Selecting four business license recipients is only part of the process. There is also the issue of taxing new business. Encinitas voters will have their say on a proposed tax on marijuana businesses on Nov. 1. 8 elections. Called Measure L on the ballot, it requires cannabis retailers to face a 4% to 7% tax rate on their gross revenue, and it also sets a tax rate for cultivation companies.
If the measure is approved, the city could collect between $800,000 and $1.4 million in annual taxes, a consulting firm hired by the city predicts.