When marijuana was made legal in California in 2016, San Bruno kept its stance on commercial prohibition until the City Council this week approved opening the door for three storefronts and a distribution center in specific locations.
On Monday, the council discussed commercial cannabis tax rates, zoning, the continuation of prohibiting specific cannabis activities, and adding an operator’s permit requirement. The city made clear that no cannabis operations will be allowed within 600 feet of schools, youth centers, parks, pocket parks, recreation facilities and day care centers. An additional amendment was made during the meeting that would add the public library to the list of sensitive areas.
The City Council voted 3-2 with councilmembers Tom Hamilton, Linda Mason and Marty Medina in favor, while Mayor Rico Medina and Councilmember Michael Salazar opposed.
Hamilton advocated for the change as long as the application process is strict and there is an emphasis on security and safety.
“It’s critical that we thoroughly vet the applicants to ensure that we end up selecting a high-end retailer that is committed to security and safety and we’ll be able to continually adhere to the many requirements we will set out for operating these businesses,” he said.
During a Feb. 8 study session, it was determined that portions of San Bruno Avenue and El Camino Real and The Shops at Tanforan would be appropriate locations for storefronts. Additionally, the council recommended the regulations accommodate no more than one distribution center and would zone it to be in the industrial district north of Interstate 380. However, cultivation, manufacturing, on-site consumption, processing, lab testing and wholesale distribution would still be prohibited.
Hamilton said he doesn’t use cannabis but understands that it has benefits for other people, which he compared to a nail salon.
“I don’t patronize nail salons, they don’t sell any services or products that are useful to me, but of course, I wouldn’t advocate banning nail salons, that’s ridiculous, instead when I encounter a nail salon when I walk down a San Bruno street, I just keep walking,” Hamilton said.
Jeremy Sarnecky, a District 1 City Council candidate, said he supports the proposed permitting and emphasized in 2020 the city’s residents overwhelmingly in favor of a tax on cannabis products.
“I am pleased to see the council is finally moving forward with this proposal to bring welcomed revenue to fund city services and infrastructures improvements,” Sarnecky said. “I respect the fact that we must consider the sensibilities of our residents and address their concerns, but we cannot ignore the clear directive of the people any longer.”
For those against this proposal, a casino, gun store and bar within a five minute walk of the proposed site on San Bruno Avenue, he added.
In November 2020, San Bruno voters approved a 10% tax rate on gross revenue of any commercial cannabis sales that the city allows. Retail cannabis sales are subject to a 15% state excise tax and the city’s 9.875% sales tax. The City Council has the authority to adjust the business tax rate with a municipal code amendment, according to the staff report.
Ultimately, the city recommended a 5% tax rate to be fair because it was slightly more than the county’s average tax rate but less than neighboring cities Half Moon Bay and Pacifica. The new tax rate would begin on Jan. 1 next year, according to the report.
One resident, who identified herself as Anna Villalobos, said she has serious concerns about bringing cannabis storefronts to the city and felt officials failed to be transparent about the ordinances by not sending out enough notices.
“This proposal should be on a measure placed on the ballot for everyone to vote on, this type of business will have many negative impacts on our community,” she said, adding that cannabis storefronts add unnecessary risks to children and the seniors around the city.
San Bruno Police Chief Ryan Johansen said that extensive outreach was conducted in which he solicited information regarding crime associated with cannabis businesses, security requirements and background security checks for the owners.
Hamilton asked Johansen if neighboring cities that allow commercial cannabis sales have seen meaningful upticks in crime.
“The chiefs that I have spoken to have reported very few calls for service regarding these businesses at all and the calls for service that they have reported have been what we would determine as low level,” Johansen said.
Generally, the complaints are regarding parking and marijuana consumption in vehicles or outside storefronts.
Assistant City Manager Darcy Smith said the ordinance would be in effect by mid-November, then the Commercial Cannabis Operator Permit guidelines process would take place and the screening process for applicants would begin by early 2023. Smoking cannabis is prohibited anywhere smoking tobacco is prohibited.
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