Over the past year, the City engaged in a process to select applicants to operate two commercial cannabis retail businesses and one manufacturing business. In response to a request for applications, the City received 14 applications for retail businesses and one application for a manufacturing business. This report presents the retail applications to the Council. The manufacturing application will be presented to the Council at a subsequent meeting.

In accordance with the adopted “Application Procedures & Guidelines for A Commercial Cannabis Business Permit”, applicants went through a 4-step process.

Phase 1 – Determination of Eligibility: City staff reviewed applications for completeness and deemed all applications complete and eligible to move forward.

Phase 2 – Criteria Evaluation and Scoring: The City’s consultant, HdL Companies, reviewed and scored applications. Those scores are included in Attachment 1. Applications which scored a minimum of 80% (1,280 points out of a possible 1,600 points) in Phase 2 moved on to Phase 3, Interview and Second Ranking.

Phase 3 – Interview and Second Ranking: The City’s Selection Committee conducted interviews with the applicants January 6-8, 2021. The City’s Selection Committee included three City staff members: Amy Kreimeier, Senior Planner; Emily Combs, Director of Finance; and Josiah Jacobson, Police Lieutenant. Matthew Eaton of HdL Companies moderated the interviews. The Selection Committee scored each applicant following their interview, with scores compiled by HdL Companies. HdL combined scores for the Phase 3 interviews with Phase 2 evaluations. These scores are contained in Attachments 2 and 3. The top five applicants that maintained a combined score of at least 80% (3,200 points out of a possible 4,000 points) advanced.

Phase 4 - Public Comment Period: A public comment period for the top five applicants ran for 15 days beginning on Monday, January 25, 2021 and ending on Monday, February 8, 2021. The City sent Notice of the public comment period to all property owners located within 600 feet of each proposed business location. The City received nine (9) public comment letters during this phase. Attachment 6 includes public comments received for each applicant, arranged in alphabetical order. General public comments received outside of the public comment period are summarized in the public contact section of this agenda report and attached as Attachment 7.

Phase 5 – City Council Final Determination: At the March 2, 2021 meeting, the City Council will consider which applicants to award the two commercial cannabis retail permits in the City. The top five retail applicants are:

Staff and HdL Companies extensively reviewed each of the top five applications. Staff created applicant information packets for all five which include:

1. A summary of the information provided on the business owners, business location, and proposed community relations plan;
2. The Phase 2 Criteria Evaluation Report prepared by HdL Companies for each of the top five applicants; and
3. Public comment letters received. Taken together, these packets provide a summary of each applicant’s responses to each of the seven review criteria. Information packets are included in Attachment 6.

The applications all score highly for their proposed business plans, labor and local enterprise plans, neighborhood compatibility plans, safety plans, and security plans. Each of the top five applicants proposed locations are properly zoned to permit cannabis retail uses and meets the separation requirements from K-12 schools, commercial day cares, and youth centers pursuant to Fairfield Municipal Code Chapter 10E. Although the specifics may differ slightly, each of the top five applicants have demonstrated, in both the responses in their application and during the interview capability to successfully operate a commercial cannabis retail business within the City of Fairfield that satisfies City and State requirements.

The applications do vary greatly in their proposals for the required community relations plan. Each application includes a proposal for a public outreach and educational program. Programs are for youth organizations and/or to education institutions in the community related to the risks of youth addiction to cannabis and available resources related to drugs, drug addiction, and prevention. The specifics of the educational programs, available resources, and identified community partners are unique to each application. Each application also proposes to offer additional community benefits should they be awarded a permit to operate by the City. The significant components of each applicant’s proposed community relations plan and proposed additional community benefits are summarized in the applicant information packets.

At the March 2 City Council meeting, the Council will hear a fifteen-minute presentation from each of the top five applicants in alphabetical order. The presentations will focus on the applicant’s responses to three review criteria: business plan, labor and local enterprise plan, and community relations plan. Following each presentation, the Council may ask questions of each of the applicants regarding such things as their business qualifications and experience, their safety plan, security plan, neighborhood compatibility plan, community benefits, or other items specific to their application and presentation.

Following all presentations and public comment, the City Council will be asked:

1. To identify which applicants will be awarded preliminary approval to receive one of the two commercial cannabis business retail permits available; and
2. What additional conditions of approval, if any, should be included. At a minimum, the community benefits offered in the selected applicants’ application will be included as a condition of approval by staff.

The decision of the City Council to award a commercial cannabis business retail permit to a chosen applicant will be preliminary and no permit will be issued at this meeting.

A resolution that sets forth the findings of the City Council and the final conditions of approval will be brought back to the Council for approval at a subsequent meeting. This resolution will also authorize the City Manager to issue a commercial cannabis business permit to each of the chosen applicants upon successful completion and satisfaction of the remaining requirements of Fairfield Municipal Code Chapter 10E and conditions of approval.

Fairfield Municipal Code Chapter 10E outlines additional requirements that a successful applicant must satisfy prior to the issuance of the permit and start of operations which includes livescan fingerprinting by all owners, building inspections, execution of a community relations agreement with the City, and other similar requirements.