Redwood City issues 4 storefront cannabis permits

Redwood City issues 4 storefront cannabis permits

in Community

In a first for Redwood City, storefront cannabis permits were issued to four businesses on Monday.

Permitted businesses include:

  • Juva Retail RWC Inc, located at 2301 Broadway;
  • Responsible and Compliant Retail Redwood City LLC, located at 1870 Broadway;
  • Runway Services Inc, located at 928 Whipple Ave;
  • MMD Redwood City Inc, located at 1764 Broadway.

In November 2020, the City Council authorized permitting for up to six retail cannabis storefront businesses in zoning districts of the city that already permit general retail uses. Twenty-eight applications were received.

Till this week, only non-storefront cannabis delivery businesses have been permitted to operate in the city.

The new businesses will bring revenue to a city facing projected budget deficits, officials said. Cannabis storefront retail businesses are expected to generate between $500,000 to $750,000 in revenue to fund city services in the first full year of operation, according to the city.

“All cannabis storefront retail businesses are required to fund a 4 percent general tax on gross receipts paid directly to the City (this is in addition to the State’s 15 percent tax and the City’s almost 10 percent sales tax),” the city said.

The businesses that received permits will also provide “a robust Community Benefits package in their first year of operation, which includes about $600,000 in monetary community contributions annually to a variety of Redwood City groups and organizations and more than 4,000 hours of volunteer service,” the city said.

The City Manager may issue up to two additional permits, for a total of six permits, under the city’s program.

“After meticulous review of all 28 applications received, these top candidates satisfy the established criteria to operate storefront retail cannabis businesses in Redwood City,” said City Manager Melissa Stevenson Diaz.

All applicants for storefront cannabis permits were required to provide information such as neighborhood compatibility, security and safety plans, and community benefits plans. Retailers are required to check ID and ensure customers are at least 21 years old, or at least 18 years old if they’re a medical patient. They must not be located less than 600 feet from existing and entitled schools childcare facilities, public parks, youth centers and libraries.

“Permits are renewable on an annual basis and can be revoked if the business does not conform to the terms of their permit,” the city said.

In 2015, the city allowed cannabis for medical use on a delivery basis. Since 2019, Redwood City has permitted cannabis non-storefront (delivery) businesses within city limits. Three delivery businesses currently operate without community complaints, the city said.

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