MOVING ON UP

Medical cannabis has been regulated in the city of Berkeley for over a decade now. The City Council first ruled to allow three collectives in the city in 2004. Four years later, Measure T increased the number of allowed medical cannabis collectives to four, although it took six years for the council to grant the fourth business necessary approval. Now, six years later, the City Council has not only named the fourth cannabis business who could open a collective, but they have also approved an increased number of collectives.

On July 12, Berkeley City Council increased the permitted number of cannabis collectives to allow two more than previously allowed by the city. Before May, Berkeley had only granted three licenses of the four allowed within Berkeley’s Municipal Code to operate within city limits—Berkeley Patients Group, Cannabis Buyers Club of Berkeley (CBCB) and Berkeley’s Patient Care Collective (PCC).

In a release by City Manager Dee Williams-Ridley, the first step toward making the change was outlined, “On May 10, 2016 the Council directed the City Manager to draft amendments to Municipal Code Section 12.26. 130 to increase the number of permitted dispensaries from four to six.”

Now with up to six collectives permitted in Berkeley, potential cannabis businesses will have to wait until September 20 for the council to announce who will receive approval to operate.

The city clearly sees an opportunity for increased profits, considering how much money the three operating collectives brought the city last year. A release by City Manager Williams-Ridley stated, “Increasing the number of dispensaries would generate additional revenue through sales tax. In 2015, the existing three dispensaries and their providers (businesses that sell product through the dispensaries) paid a total of $978,686 in City business license fees. The amount to be expected from additional dispensaries would depend on the size of the new businesses.”

“Increasing the number of dispensaries would generate additional revenue through sales tax. In 2015, the existing three dispensaries and their providers (businesses that sell product through the dispensaries) paid a total of $978,686 in City business license fees.”

The vote on July 12 was not a surprise. In May, the fourth and final cannabis franchise was determined to be iCANN Health Center on Sacramento Street. There were two other finalists competing with iCANN for approval.

One of the cannabis collectives competing for approval was Berkeley Innovative Health, which hoped to be located on San Pablo Avenue. The other was Berkeley Compassionate Care Center (BCCC), which hopes to operate on Telegraph Avenue next to Amoeba Music. The owners of BCCC also own Amoeba, and they believe that selling cannabis will support the operations of their record stores.

While there is a team of people working feverishly to get Amoeba approved to run a collective, they have received unlikely opposition from another cannabis collective, Berkeley Patients Care Collective (PCC). The Co-Founder and President PCC, Martin O’Brien, wrote a letter to Mayor Tom Bates of Berkeley, explaining why Amoeba opening a cannabis collective could destroy their business. In his letter, O’Brien explained how PCC is the oldest collective operating in Berkeley, and they are only 612 feet away from Amoeba. The collective is already struggling, and he claimed Amoeba opening a collective nearby would be disastrous. His letter read, “Locating BCC in Amoeba Music is analogous to a new Walmart opening a few hundred feet from a mom and pop retailer.”

An announcement by Berkeley City Council on September 20 will decide whether or not Amoeba and other businesses will get their chance to run a cannabis collective.