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An ordinance amendment allowing adult-use retail cannabis sales in Napa is headed toward the final step of Napa City Council approval Tuesday evening.
Napa currently only permits medical sales of cannabis, which means customers are required to have a physician-approved medical card to purchase cannabis products. Under adult-use retail rules, anyone age 21 or older can purchase cannabis products by showing identification.
California legalized recreational cannabis in 2016 after 57% of voters — and 61% of voters in Napa County — voted to approve Proposition 64. But most California cities, like Napa, still don’t allow adult-use cannabis sales.
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Local cannabis retailers say opening up adult-use sales will boost business and increase city tax revenues.
Aimee Henry, an owner of Napa Cannabis Collective, said allowing adult-use sales will essentially allow her business to become sustainable.
“In Napa, there really hasn’t been high enough demand for medical for us to have a sustainable business that’s breaking even, much less reaching profitability,” Henry said.
She added that though getting a medical recommendation for cannabis now takes only about 10 to 15 minutes, the need for a recommendation still serves as a barrier for many people.
One reason for that is that recommendations typically cost $30 to $40, Henry said. People may not want to have a conversation with a doctor about the reason they want to use cannabis. And adult-use cannabis can be bought in nearby cities or delivered without the hassle of needing a medical card, she added.
“The majority of Napa’s potential sales have been going to Vallejo or Fairfield or Santa Rosa or people are ordering delivery from an outside area,” Henry said. “… Really we’re losing significant revenue not only for us as retailers but for the city.”
Riccardo Natoli, president of The Herbivore Cannabis Dispensary, said Napa’s local economy is highly dependent on tourism. In that spirit, Herbivore focuses on a high-end luxury market, he said and expects to see about 30% to 40% more business if the adult-use amendment is approved.
Natoli also recommended a moratorium on new adult-use applications be established to protect Napa’s six current dispensaries from the arrival of new adult-use retailers, particularly large corporate brands.
“For us, it’s a sweet and sour proposal,” Natoli said. “We need to make sure, along with going fully recreational, they also look to protect the existing retail operations.”
A two-year moratorium on new retail cannabis applications, which would apply to outside dispensaries, was proposed by a collation of five dispensaries last year. The retailers argued the moratorium would allow the businesses to stabilize financially from the COVID-19 pandemic, and it would give the city time to figure out how and if to regulate the adult-use market.
“From our perspective, we’re not trying to shut anybody out; we’re not trying to prevent other businesses from opening and getting a piece of the pie,” Henry said. “We want to make sure that our businesses are going to be able to be sustainable.”
But most councilmembers and planning commissioners have not supported the proposed moratorium, and no action to include it has passed.
The amendment to the ordinance was in the works for much of last year.
After prioritizing an update to the ordinance as a policy goal in March 2021, the City Council voted 4-1 in October 2021 for staff to prepare the amendment allowing retail sales of cannabis to anyone age 21 or older. The city’s Planning Commission approved the amendment unanimously in November.
The amendment allowing adult-use sales would come into effect 30 days following Napa City Council approval.
In other news, the City Council will hear an update on the Make it in Napa Initiative — an effort to support the space needs of local creatives — and recommendations on an action plan to carry out the initiative’s goals.
The Make it in Napa survey the action plan is based on, carried out last year, found that space in Napa is generally unaffordable for artists and makers.
The suggested actions include forming a steering committee to continue the initiative; improving communication and raising the visibility of the city’s creative sector; and enhancing city infrastructure and policies to support the initiative, according to the 78-page Creative Space and Local Manufacturing Action Plan.
Additionally, the action plan asks that the city adopt incentive programs to promote Napa as a place for creatives to live; that it creates new, affordable space opportunities; that it explore funding and partnership opportunities and strengthen regional connections; and that it creates a maker-focused district.
The Napa Valley Vine Trail has long had a half-mile gap on Soscol Avenue — until now, with a widened sidewalk solving the problem.
In case you missed it, here is a look at the most-read stories on NapaValleyRegister.com.
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You can reach Edward Booth at (707) 256-2213.
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