Loading...
HomeMy WebLinkAbout13587Amended as of 12/27/2016 RESOLUTION NO. 13587 A RESOLUTION AMENDING A FEE SCHEDULE FOR LICENSING AND OPERATING FEES FOR RETAIL MARIJUANA FACILITIES WHEREAS, Sections 11-11-304(C) of the Pueblo Municipal Code provide that City Council may approve increases or decreases in the fees by Resolution; and, WHEREAS, the Pueblo City Council hereby finds and determines that the following fee schedule is fair and reasonable in relation to the cost and expense, both direct and indirect, in providing the identified services and processing the application; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The fees set forth in Section 11-11-304(b) of the Pueblo Municipal Code as amended, are hereby increased as provided in Section 11-11-304(c) as follows: (b) Operating fees and all other fees necessary for the administration, regulation, and implementation of this Chapter are as follows and are to be paid to the City of Pueblo, in addition to any fees payable to the State: 1. Initial Operating Fees are to be paid upon issuance of the initial license by the Authority: \[ (A) Retail Marijuana Cultivation Facility: $5,000.00 plus $.50 per square foot of the portion of the licensed premises in which plants are \] located but said Initial Operating Fee shall not exceed a total of $15,000.00. \[\] (B) Retail Marijuana Product Manufacturing Facility: $6,000.00. $15,000.00. \[\] $5,000.00. (C) Retail Marijuana Testing Facility: $1,500.00. 2. Administrative Operating Fees: \[\] $1,500.00. (A) Transfer of location: $750.00. \[\] $1,500.00. (B) Change of principals or ownership: $300.00. (C) Change in operational plan: $300.00. (D) Registration of manager: $100.00. \[\] 1,000.00 (E) Modification of premises: $400.00.$ (F) Report of minor change: $100.00. \[\] $5,000. (G) Late renewal fee: $500.00. (H) License extension fee: $150.00 for each 30 day period or portion thereof. 3. Annual Operating Renewal Fees are to be paid upon issuance of the annual license renewals by the Authority: \[ (A) Retail Marijuana Cultivation Facility: $5,000.00 plus $.50 per square foot of the portion of the licensed premises in which plants are \] located but said Annual Operating Renewal Fee shall not exceed a total of $15,000.00. \[\] (B) Retail Marijuana Product Manufacturing Facility: $6,000.00. $10,000.00. \[\] $5,000.00. (C) Retail Marijuana Testing Facility: $1,500.00. SECTION 2. The fees set forth in Section 11-11-304(b) and stated in Section 11-11-317(b)(2) of the Pueblo Municipal Code as amended, are hereby increased as provided in Section 11-11-304(c) as follows: Sec. 17-4-317. Renewal of license . . . (a) A licensee may renew a license that has expired if: (1) The license has expired less than ninety (90) days; and (2) The licensee pays the annual operating renewal fee and an additional \[\]thousand \[\]($5,000.00) five hundred dollars ($500.00) . . . . SECTION 3. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution to effectuate the transactions described herein. SECTION 4. This Resolution shall become immediately effective upon passage and approval. INTRODUCED: December 27, 2016 BY: Robert Schilling City Clerk’s Office Item # Q-1 BACKGROUND PAPER FOR PROPOSED RESOLUTION COUNCIL MEETING DATE: December 27, 2016 TO: President Stephan G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Steven Meier, Director Planning and Community Development Department SUBJECT: A RESOLUTION ADOPTING A FEE SCHEDULE FOR LICENSING OF RETAIL MARIJUANA ESTABLISHMENTS SUMMARY: This Resolution amends and adopts a new fee schedule for the licensing of retail marijuana stores. PREVIOUS COUNCIL ACTION: On June 23, 2014 City Council approved Ordinance No. 8750 creating a fee schedule for applications for licensing and operating fees of retail marijuana facilities. BACKGROUND: The amendment of fees for the licensing of retail marijuana stores is requested because the fees that were established in 2014 do not cover the costs for the City to process these applications and administer the licensing Ordinance. FINANCIAL IMPLICATIONS: The current fees do not cover the cost of reviewing and processing the applications; therefore, the City has effectively been subsidizing these applications. The proposed fee increase for retail marijuana license applications and operating fees will reasonably cover the cost of reviewing and processing the application. By not charging a fee that is reasonably related to the cost of processing the applications, the City is losing money with every application filed. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: There are two options for the City regarding the amendment to the fees: Option 1 would be to leave the fees as they were established in 2014. This option would cause the City to continue to subsidize applications for retail marijuana licenses. Option 2 would be to amend the fees to a different amount. RECOMMENDATION: Approve the Resolution. Attachments: None