City seeks to tax marijuana delivery

Redondo Beach City Hall. Easy Reader file photo

by Garth Meyer

The Redondo Beach city council revisited the subject of retail marijuana before Christmas, approving the hire of a consultant to advise on the application process to open a store, the drafting of an ordinance to set the sales tax rate, and taxing delivery into the city. 

The purpose is largely to avoid lawsuits.

“We feel strongly that the city can benefit from a consultant,” said Mike Witzansky, city manager.

The final motion voted on Dec. 19 also directed City Attorney Mike Webb to write a legal review of the whole process of opening two stores, and for further discussion by the council of the proposed buffer zones.

Witzansky and staff recommended Tierra West Advisors.

Lastly, whether to require an applicant to already have leased or own a local site, Elizabeth Hause assistant to the city manager, reported that, of eight area cities Redondo Beach looked at, it was split 4 to 4 on whether to require it. 

On another note, Witzansky said that, in his discussions with other cities, ”resoundingly there has not been police activity at these licensed retail outlets.”

Councilman Scott Behrendt, an attorney, sought more scrutiny.

“We need a written report from the city attorney,” he said. “Let’s do this right. Let’s not just jump in and get sued.”

“We can move forward in a lot of different areas,” said Councilman Nils Nehrenheim. “I see a huge benefit in a property requirement.”

Nehrenheim supported hiring the consultant, in order to have “built-in knowledge,” he said. 

“We get sued for a lot of things that are worth doing,” said City Attorney Webb. 

He noted that setting the tax rate – recommended at five percent by Witzansky – depends on one’s priorities; whether it be obtaining revenue, being a check for the black market, or to provide a service “that many of your constituents want.”

On the issue of delivery, Witzansky said the city should react to the existing trade. 

“It’s coming. Whether we want it or not,” he said. “It’s here. We should process that, administer that appropriately.”

As of Jan. 1, a new state law prohibits any ban on the delivery of medical marijuana.

Hause described the situation in Pasadena when it legalized marijuana stores. The city drew 122 applicants, with no site required, ending with 21 lawsuits. 

Nehrenheim made a motion to hire Tierra West to review the Redondo application process, to set the retail tax at five percent and work on a permit system for delivery.

“I don’t want a custom program for Redondo Beach. Custom program means custom problems. We want something that’s been battered by the legal system,” he said.

On Jan. 15 staff is set to report back to the council. Webb will submit a written report by March 5. 

The vote passed 4-0, as Councilman Zein Obagi, Jr., was absent. ER

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