Cannabis Industry Analysis Report and Recommendations

1) Direct staff to bring forth an Ordinance to permanently modify the definition of cultivation space, for the purposes of tax collection, to encompass "canopy space" vs. the city's current methodology of taxing the full square footage of "space utilized" in connection with the cultivation process; 2) Direct staff to bring forth an Ordinance to permanently reduce the cannabis cultivation tax rate from $10.20 per sq. ft. of "space utilized" in connection with the cultivation process to $7.50 per sq. ft. of canopy space; 3) Direct staff to bring forth an Ordinance to align the city's security requirements to mirror state law for cultivation, manufacturing, and distribution facilities; and 4) Direct staff to bring forth an Ordinance to allow for a 6-month ramp-up period for new businesses to phase in canopy space, for the purpose of calculating tax liability, as new rooms are brought online within a facility.