CITY OF FRESNO TO LICENSE CANNABIS
After almost four years since the legalization of recreational cannabis in California, two-thirds of California municipalities ban cannabis facilities within their borders. To date, only 172 of California’s 482 municipalities and 26 of 58 counties allow any form of legal commercial cannabis activity within their borders. Of the municipalities that license commercial cannabis businesses, many of them set up selective regulatory structures to ensure they license only the best-in-class cannabis operators. Due to the resulting legal patchwork across California’s municipalities, Global Go presents this local jurisdiction series to simplify the complicated and take a deeper look at how emerging jurisdictions are structuring their rules for cannabis operations. Today, we take a look at Fresno.
On January 30, 2020, the City of Fresno passed an ordinance to create a licensing process for Adult Use and Medicinal Use cannabis businesses. As City Council continues to deliberate and draft the details of the cannabis licensing program, we’re breaking down what is known about the upcoming licensing opportunities in the city.
The City of Fresno plans to license:
• Up to 14 cannabis retail businesses, with a possibility of an additional 7 storefronts by City Council resolution
• A total of 16 cultivators, distributors, and/or manufacturers, with no individual cap for each subcategory
• An unlimited number of cannabis testing laboratories.
City Council plans on releasing further details for its cannabis program in summer or fall 2020, but the ordinance indicates cannabis business owners will still require a Conditional Use Permit application, as well as permits from city planning and business development departments. The social responsibility portion of the cannabis ordinance indicates that we can expect a competitive, merit-based application, but we are staying tuned with City Council updates for further application details.
As the largest city in central California, with a population of over 500,000, the introduction of recreational cannabis businesses to Fresno will bring an exciting boom of economic development and jobs to the region. We believe Fresno has huge potential for a new cannabis business, especially with its favorable local tax rates:
• Cultivation: $6 annually per square foot of canopy space
• Retail: 4% of gross receipts
• Testing Laboratory: No gross receipts tax
• Distribution: 1% of gross receipts
• Manufacturing: 4% of gross receipts
Although license applications are not yet open, we can help clients take early steps to prepare for a successful application by identifying real estate (in compliance with the city’s zoning restrictions), drafting a business, plan, and creating compliant standard operating procedures. We have a 99% success rate in license applications across 16 states and know exactly what municipalities are looking for when selecting cannabis businesses for their cities.
If you plan on opening a cannabis business in Fresno, learn more about Global Go’s world-class consulting services below and get in touch to start working on your Fresno cannabis business today!
Simone Sandoval
Partner / Director of Licensing and Compliance
Simone focuses on cannabis licensing and compliance and has extensive experience in understanding and deciphering complex cannabis regulations. Prior to entering the cannabis industry, Simone worked in Washington, D.C. as an intern for Congressman Raul Ruiz, M.D. (CA-36). During her time on the Hill, she worked on legislation, and researched policy on renewable energy, healthcare, and tribal relations.
About Global Go
Global Go provides sophisticated consulting services to the global cannabis and hemp industry. In tandem with strategic allies around the world, Global Go serves clients throughout the world from offices in Austin, Bogota, Chicago, Cyprus, Denver, Johannesburg, London, Los Angeles, Mexico City, New York, Palm Springs, Phoenix, Quito, São Paulo, Silicon Valley, Toronto, and Zurich. Powered by a team of cannabis industry pioneers and world-class consultants, Global Go helps leading cannabis funds and companies assess and enter new markets; acquire assets; raise capital; launch new product lines; improve SOPs; comply with regulations; implement technology and security systems; find talent; diagnose and execute solutions to growth obstacles; and apply for cannabis licenses (with a 99% success rate on over 175 cannabis license applications across the United States). Learn more at https://globalgo.consulting.