Chapter 19.08
SELECTION CRITERIA
Sections:
19.08.010 Selection criteria.
A. General Eligibility Review. In the event that an applicant is unable to meet the following minimum eligibility criteria, their application shall be denied. Applicants will be evaluated on the following:
1. Live Scan Fingerprint Results. Applicant must not have any criminal convictions that would result in ineligibility as defined in SMC 19.02.020.
2. Application must be complete to be evaluated. Incomplete applications will be denied but may be resubmitted. New application fees must be paid for resubmittal.
3. Proposed location of business and proof of property owner’s approval of use must be supplied.
4. Applicant must agree to enter into a cannabis development/operating agreement with the city which is subject to annual review and approval which shall be discretionary with the city.
B. Initial Ranking. The city shall open an application period of not less than thirty days to allow prospective permittees to submit applications. Applicants will be evaluated on the following criteria:
1. Location of Business. Locations north of Gigling Road, within the Broadway Urban Village plan area and/or within two thousand five hundred feet of Highway 1 will receive ten points. Locations outside these areas will receive one point.
2. Business Plan. A business plan that demonstrates prior successful business operations (which need not be cannabis business related) at a similar scale of annual revenue for at least two years and/or capitalization sufficient to insure at least one year of operation will receive five points as a base, with one additional point for every two hundred fifty thousand dollars of projected annual revenue. Annual projected revenue should be derived from a market study that includes trade area analysis, actual sales of local similar businesses and should be based on a reasonably sized market area. Revenues and capitalization submitted will be reviewed for reasonableness and scores may be adjusted to meet a reasonableness test. A business plan without such demonstration will receive one point.
3. Local Enterprise. Applicants will receive two points for each principal employee that can demonstrate residency in the city of Seaside. A maximum of six points may be awarded in this category.
4. Community Benefit. Community benefit may include commitment to employing Seaside residents, commitment to working with Seaside-located businesses (including capital), commitment to sponsoring nonprofits and/or other similar specific commitments within the Seaside community. A maximum of eight points will be awarded, with one point for every Seaside resident employee or specified annual commitment of the applicant’s choice to any nonprofit within the community.
5. Neighborhood Compatibility. Applicants which demonstrate neighborhood support with a majority of property owners within two hundred fifty feet will receive three points. Applicants that demonstrate neighborhood support from a majority of tenants, residents and businesses within two hundred fifty feet will receive two points. Applicants which do not demonstrate neighborhood support with a majority of property owners and tenants, residents and businesses within two hundred fifty feet will receive zero points.
6. Security Plan. The Seaside police department will review the security plan and classify the plan as inadequate, adequate or exemplary. Plans classified as inadequate will not be permitted to proceed. Plans classified as adequate will receive ten points. Plans classified as exemplary will receive twenty points. An adequate plan must demonstrate that all requirements in SMC 19.02.070 as well as any additional requirements that may be required by the State of California Bureau of Cannabis Control have been met. Exemplary plans must demonstrate all requirements for an adequate plan plus additional measures as determined by the chief of police or designee.
7. Safety Plan. The Seaside police department will review the applicant’s safety plan and classify the plan as inadequate, adequate or exemplary. Plans classified as inadequate will not be permitted to proceed. Plans classified as adequate will receive ten points. Plans classified as exemplary will receive twenty points. Adequate plans will meet all requirements of the State of California Bureau of Cannabis Control for reducing harm and avoiding underage access. Exemplary plans must demonstrate all requirements for an adequate plan plus additional measures as determined by the chief of police or designee.
8. From the initial ranking, up to twice as many qualified applicants as there are available licenses will be eligible for final testing and ranking as determined by the aggregate scores of the initial ranking.
C. Final Ranking. The qualified applicants after the initial ranking will be further rated on the following matters:
1. Cannabis Knowledge Test. All principal employees of the cannabis related use must take a cannabis knowledge test to demonstrate knowledge of state and local compliance standards.
2. The top applicants equal to the number of licenses available will be eligible to apply for a use permit and development/operating agreement to engage in a commercial cannabis business. Qualified applicants from the initial ranking may amend and combine their applications to optimize their scores. If following the opportunity to optimize scores, two or more applicants are tied, both applicants will proceed to the next step.
D. Use Permit. Applicants shall complete phases 1 through 3 prior to applying for a use permit and development/operating agreement.
1. At the next available planning commission meeting, allowing time for staff review, a public hearing for each top application shall be held to consider the application for a use permit for the proposed business location.
2. Members of the public, adjacent property owners and other interested parties will be given the opportunity to present concerns or support, and provide additional consideration for potential permit conditions.
3. Planning commission will make a recommendation to city council, including any conditions requested for final decision on awarding use permits and the development/operating agreement.
4. At the next available city council meeting, planning commission and staff recommendations will be presented at a public hearing before the city council for a final decision.
5. If an available permit is not filled for any reason and a business that qualified under phases 1 through 3 but was not selected to move forward in the process requests consideration for phase 4, consideration shall be granted in order of ranking.
E. State cannabis licenses and local cannabis development/operating agreements are annual in nature and may be revoked at any time for cause, subject to the appeals process outlined in Chapter 19.10 SMC for failure to comply with all state laws and requirements and local ordinances and requirements, or for failure to comply with conditions in the development/operating agreement. Cannabis development/operating agreements may automatically renew as long as the business has complied with all state and local ordinances and with conditions of approval, including the timely payment of all fees and taxes, in the sole discretion of the city. (Ord. 1047 § 2, 2018; Ord. 1043, 2017)