The city of Redwood City will have four new stores among its various establishments for the sale of cannabis - marijuana - and products related to or derived from the plant, where users and consumers will be able to purchase the product directly, without waiting for it to be sent to their homes.
On March 28, City Manager Melissa Stevenson Diaz issued permits for four cannabis retail businesses in Redwood City.
They are Juva Retail RWC Inc, located at 2301 Broadway, Responsible and Compliant Retail Redwood City LLC, at 1870 Broadway, Runway Services Inc, at 928 Whipple Ave, and MMD Redwood City Inc, at 1764 Broadway.
The permits were issued after a multi-year process to develop local regulations for cannabis businesses in Redwood City.
In November 2020, the City Council authorized the City Manager to issue cannabis business permits to up to six retail businesses. City regulations allow businesses in Redwood City's general commercial use zoning districts.
The City Council approved a rigorous, staff-led, merit-based cannabis application licensing process to ensure that high-quality cannabis retail business operators are thoroughly reviewed and sufficiently qualified before being issued permits.
All applications for in-store cannabis retail sales were required to provide relevant information, including neighborhood compatibility, safety and security plans, and community benefit plans.
“After a thorough review of the 28 applications received, these top candidates meet the established criteria for operating cannabis retail businesses in Redwood City,” Stevenson Diaz said.
“The City carefully designed the cannabis program to incorporate best practices and community feedback. We have seen strong community support through voter approval of cannabis-related tax measures, a citywide survey, and public input as we developed the program. I believe these businesses will be assets to the Redwood City business community,” he added.
In addition to providing much-needed additional revenue as the City faces projected budget deficits, each business will contribute to local organizations.
All cannabis retail businesses in Redwood City must fund a 4.0 percent general tax on gross receipts paid directly to the City – this is in addition to the 15 percent state tax and the city’s nearly 10 percent sales tax.
Retail cannabis store businesses in Redwood City are expected to generate between $500,000 and $750,000 in revenue to fund city services in the first full year of operation.
Additionally, selected permit holders will provide a robust community benefits package in their first year of operation, including approximately $600,000 in community monetary contributions annually to a variety of Redwood City groups and organizations and more than 4,000 hours of volunteer service.
The City Manager may issue up to two additional permits, for a total of six permits, under the City's program.
All cannabis operators in Redwood City are subject to regular inspections, audits, and monitoring.
In turn, all security surveillance videos and footage are made available to the Police Department to monitor business activity and deter any potential criminal action.
All cannabis retailers in Redwood City must check identification and ensure customers are 21 or older – 18 or older if a medical patient.
Additionally, cannabis retail businesses must be located a minimum of 600 feet from existing and licensed schools, daycare centers, public parks, youth centers, and libraries.
The city allowed cannabis for medical use with delivery starting in 2015.
Following state legislation permitting and regulating adult-use cannabis, Redwood City began developing the City’s cannabis program in 2017. The program was developed over many years, with multiple opportunities for the community and residents to provide feedback.
Since 2019, cannabis businesses in Redwood City without a storefront ‒ delivery ‒ have been permitted within City limits.
There are currently three delivery businesses operating, and the city said in a statement that it has not experienced any complaints or observed an increase in criminal activity related to these operations.
For more information on cannabis regulations in Redwood City, interested parties can visit the website www.RedwoodCity.org/Cannabis.
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