City Council

EMBARC SAN BRUNO APPLICATIONS CITY COUNCIL MEETING ELISEO AMAYA, PETER GILLI MAY 14, 2024 COMMUNITY DEVELOPMENT AGENDA I. Objective II. Background III. Application IV. Tonight’s Recommended Action V. Questions 2 OBJECTIVE • Hold Public Hearing • Consider Adoption of a Resolution Approving an Architectural Review Permit and Conditional Use Permit to Establish and Operate a Cannabis Retail Store at 120-124 El Camino Real • Consider Adoption of a Resolution Authorizing the Installation of a Loading Zone Located in Front of 120 El Camino Real 3 BACKGROUND 4 FY23-24 City Council Priority Focus Area Grow City Revenues to Assure On-Going Fiscal Stability and Economic Vitality Strategic Initiative 9.1 Cannabis Regulations and Permitting 5 COMMERCIAL CANNABIS REGULATIONS October 21, 2022 • Council adopted Commercial Cannabis Ordinances • Council adopted Application Procedures and Guidelines for Commercial Cannabis Operator Permits (CCOP) April 11, 2023 • Council adopted amended Commercial Cannabis Ordinance 6 APPLICATION PHASES • Phase I – Determination of Eligibility • Phase II – Application Completeness Determination • Phase III – Application Evaluation and Scoring • Phase IV – Selection by the City Council (August 22, 2023) • Phase V – City Final Determination and Issuance of CCOP License (April 16, 2024, Planning Commission Public Hearing) 7 APPLICATION 8 EMBARC Located at 120-124 El Camino Real SAN BRUNO  Hours of Operation: 9 AM to 9 PM seven days a week (cannabis retail storefront & deliveries to customers) 9 PROJECT SITE PLAN Improvements: Renovate Interior/Exterior Shorten Driveway 4 Parking Spaces Bike Rack Trash Enclosure 22-foot Loading Zone 10 EXTERIOR IMPROVEMENTS Existing Proposed 11 NEXT STEPS Upcoming Milestones City Council Public Hearing – final action on CUP City Manager issues Commercial Cannabis Operators Permit (CCOP) Applicant submits Building Permits City issues Building Permits (Summer 2024) City issues Certificate of Occupancy (Potentially end of 2024) 12 COMPLIANCE • Annual Renewal • The city manager has authority to decide on renewals and may impose additional conditions. • Renewal applications can be rejected for reasons such as late submission, permit suspension or revocation, non-compliance with regulations or conditions of approval, failure to renew state license, or violations of state or local laws. 13 CEQA EXEMPTION • Proposed commercial cannabis retail store will not result in a significant environmental impact pursuant to the California Environmental Quality Act (CEQA), as outlined in CEQA Guidelines Section 15301. 14 REVENUE PROJECTIONS • Cannabis Business Tax: February 28, 2023, Council increased the tax rate to 6%. Budget is projecting $700,000 in cannabis tax revenue for FY24-25 o Will adjust projections in future budget years based on actual sales • City Share of Sales Tax: 0.95% of Sales Tax + 0.50% Transactions & Use Tax (Measure G) remitted to city • Community Investment Fund: Embarc will designate an additional 1% of gross receipts to this fund for community benefits 15 TONIGHT’S RECOMMENDED ACTION 16 TONIGHT’S RECOMMENDED ACTION • Receive Applicant Presentation • Hold Public Hearing • Consider Adoption of a Resolution Approving an Architectural Review Permit and Conditional Use Permit to Establish and Operate a Cannabis Retail Store at 120-124 El Camino Real • Consider Adoption of a Resolution Authorizing the Installation of a Loading Zone Located in Front of 120 El Camino Real 17 18 San Bruno City Council Meeting May 14, 2024 A Proven Retail Operator Meet Embarc • Currently operating in 15 California communities, including in nearby Redwood City and Alameda • Consistently first-to-market, demonstrating a commitment to execution • Opened five new locations since January 1, 2024 • Paid more than $15m in taxes and $10m in wages last year • Proven and profitable to ensure staying power—on track to be one of California’s largest cannabis retail operators 2 A Proven Team Meet Embarc Leaders within the industry and beyond: More than a decade of cannabis regulatory and policy experience Retail team led by former CEO of the Gap Security overseen by former law enforcement officer with significant cannabis security experience A proud Union partner and significant employer: Meaningful employer with approx. 400 employees Partner to the UFCW across all stores statewide Member of the UFCW’s Apprenticeship Task Force 3 A Fully Vetted Location 120–124 El Camino Real • Fully compliant location per the City’s ordinance and code • Standalone building—looks like a palace but functions as a fortress • 100 feet from the nearest bus stop for accessibility • Site plan features bicycle parking • Rehabilitation of an underutilized parcel (vacant for approx. 5 years) into a thriving retail store 4 A History of Redevelopment A proven track record of transforming underutilized sites into attractive and highly secure cannabis retail storefronts. SOUTH LAKE TAHOE BEFORE FONTANA BEFORE VENTURA INTERIOR RENOVATIONS SOUTH LAKE TAHOE AFTER FONTANA AFTER 5 The Right Neighborhood Partner Neighborhood Compatibility Adds 24/7 security and surveillance measures to the area • Onsite patrolling security guards and offsite live monitoring including direct feed • Will include the installation of dozens of security cameras Repairs and improvements to both the interior and exterior of the site • Addition of lighting, landscaping, and more to beautify the parcel • Security to proactively address vagrancy, loitering, and other perceived issues in the vicinity Includes a voluntary Good Neighbor Policy to address a variety of considerations • Voluntary street team for regular beautification • Employees provided paid volunteerism to ensure we are contributing to the community 6 Local Partnership Supported by Many Neighbors 7 The Right Community Partner Localism at the Forefront of Community Investment Community Benefits & Investment Plan: WHAT EMBARC & ALL RESPONSIBLE OPERATORS ARE DOING: Empowers local leaders to drive community engagement through Paid staff volunteerism a Community Advisory Board Executive volunteerism Community education Informational workshops Addresses needs through our Community Investment Fund, Non-profit partnership events which receives 1% of gross receipts in perpetuity Veteran discount Addiction resources Senior outreach Provides 40 hours of paid volunteerism per team member each Scholarship program year to roll up our sleeves in the community Financial literacy workshops Local business partnerships Compassionate use program Deploys a third-party, accredited youth drug prevention and Senior discount education campaign to address one of the community’s primary Resident discount concerns through non-profit partners B2B discounts Service industry discount Social equity partnerships Local sourcing and cross promotions 8 Pro Forma - Revenue Scenario Y1 Addressable Market • 10 mi population – 1,136,364 • 5 mi population – 195,047 • SFO 47mm passengers Pro Forma Target City Revenue 100% $1,491,343 75% $1,118,507 60% $896,605 9 Thank you! 10