The following is our latest email to the city council, the city manager, planning director and city attorney. This was also sent separately to the Publishers of the IT and Sonoma Valley Sun:

Sonoma City Council
No. 1 The Plaza
Sonoma, CA 95476


January 18, 2023

Re:    Placing Second Cannabis Dispensary on Agenda

Dear Mayor Lowe and City Council Members,

We are writing because we believe now is the time to move forward with the second dispensary process. Setting this as a high priority will allow the city to receive additional tax revenue sooner than later, as well as provide patients and consumers with fairer, more equitable access to products and services.

Please permit us to quote from the Agenda Report – Second Commercial Cannabis – Procedures & Guidelines contained in item 7.2, November 17, 2021:

“4. RFP. Staff recommends that the City Council consider the second “RFP” process after receiving tax data/reports following a 6-month operational/finance reporting period. This would allow the City Council to not only determine the fiscal benefits of authorizing a second commercial cannabis business to operate in the City, but also provide adequate time to evaluate any communitywide benefits or impacts associated with the use. Staff anticipates being able to report back to the City Council in Fall 2022 regarding any potential impacts and would return to the City Council for direction on the timing of the release of the RFP, ostensibly prior to the end of the calendar year.”

On the evening of November 17, 2021, the city council unanimously adopted two Resolutions. The first approved “Administrative Regulations and Application Procedures and Guidelines”, and the second, “Commercial Cannabis Processing Fees”. These two Resolutions constitute the Request for Proposals document.

Staff anticipated that it would report its findings to the city council in the fall of 2022. We are now three months beyond that 6-month operational/finance reporting period.  The newest city council members all showed their support for a second dispensary at the October 10 candidates forum, so we feel the time is right for the city to consider, discuss and act on opening the Request for Proposal Process (RFP) for a second retail storefront commercial cannabis business in the city and that this be placed on the city council’s agenda in February/March.

We understand that the city currently has an interim city manager and interim planning director. We welcome them to their positions and look forward to working with them. Should they need more background on the issue, we refer them to the same agenda item, 7.2, of November 17, 2021.

Best Regards,

SVCG Executive/Policy Committee

Every new dispensary in California helps the supply chain. The city of Sonoma currently has one retail outlet (Sparc), but a monopoly is not acceptable. The city’s ordinance allows for two dispensaries. All the paperwork including the RFP have been largely concluded, but the issue remains tabled. Our Sonoma Valley Cannabis Group has launched a new campaign to put this issue back on the city council agenda. The following is the first letter of many to the Council:

Dear Mayor Lowe, Vice Mayor Gurney and Council Members,

On behalf of the Sonoma Valley Cannabis Group, we are writing once again to communicate our strong interest in the process to permit a second cannabis dispensary. In support of that, we offer the following:

1)   According to city records, in its first 8 months of operation, Sparc’s gross receipts amount to $2,894,355.41, from which the city of Sonoma received $115,774.22 in Cannabis Business Tax.

2)   Sparc has incurred no negative impacts on the safety, health and welfare of Valley citizens.

3)   Sparc has had ample time to establish itself as a viable business. Assuming the city issues the RFP for a second dispensary in the first quarter of 2023, that store may not open until the first quarter of 2024, by which time Sparc will have been in operation a full two years.

4)   Sonoma’s cannabis consultant HdL noted that the city could support two retailers.

5) The city council understands that permitting a wide variety of retail stores in Sonoma attracts both locals and visitors. The city council has never restricted an individual or group from opening a retail shop in any business category, whether it’s pharmacies, groceries, clothing or book stores.

Understanding that city staff has already generated the RFP and the associated documents, we respectfully request that the city council, at the earliest possible time, place an item on the Agenda to consider, discuss and act to begin the Request for Proposal Process.

Please feel free to contact us with any questions you may have and we thank you for your time and attention.

Best Regards,

SVCG Executive/Policy Committee

Dear Mayor Lowe, Vice Mayor Gurney and Council Members,

I would like to welcome our new city council members and congratulate our new mayor.

I have been involved for the last few years in working to get a cannabis dispensary in the Sonoma Valley. In the beginning, I advocated for two dispensaries to be permitted and the consultants hired by the city, HDL, agreed. They stated that the city and the valley could easily support two. In the end one, SPARC, was permitted. But, in working very hard with the last city council, the ordinance was changed to permit a second dispensary.

I am writing, because now is the time to move forward and begin the process to issue a permit to a second dispensary applicant.

For me it is a bit personal. I use a product that has been a life saver. In the beginning SPARC, our one dispensary told me they would carry products other than what they currently do, if requested. I tried and no they will not carry my product, unless I buy it by the case. I am still driving to Santa Rosa. But, beyond the personal, there are so many benefits to having a second dispensary in Sonoma. Looking at SPARC’s numbers they have been incredibly successful financially, and the city is benefiting from the taxes and economic benefits they provide. The city will benefit and the community will benefit greatly by moving forward with permitting a second dispensary.

Economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation. Competition thus stimulates growth and generates substantial benefits for the community.

While the cannabis industry is a challenging one for all operators across the supply chain (cultivators, manufacturers, distributors, retailers, etc.), retailers with strong business acumen are running profitable operations and will continue to do so.

The economic pie is growing. It is safe to assume that an additional dispensary would create an increase in revenue for Sonoma, as it would be impossible for one dispensary to capture 100% of the market. Additionally, the market is seeing year-over-year growth, so it’s definitely not a zero-sum game. Well-run dispensaries continue to experience growth despite an increase in competition.

According to local industry experts, there would be a number of applicants for a second dispensary permit. Typically, limited license jurisdictions like Sonoma are receiving significant interest in demand for licenses if/when they become available. There are many examples across the state for this (i.e. Cotati, Sausalito, Healdsburg, Concord, Fairfield, etc.).

The increased demand for cannabis solutions requires greater accessibility to a variety of products. However, not all dispensaries carry all products and limiting ready, local access to medication impedes individuals from obtaining the necessary provisions for their health and well-being. In the case of SPARC, they are vertically integrated, with an emphasis on selling the products they grow and manufacture. We really need product choice, and responsiveness to consumer’s needs.

Please agendize moving forward on putting out at RFP for another dispensary. It will be a great benefit to the community and to the city.

Sincerely,

Josette Brose-Eichar

This is a first of several emails to be sent in the next 3 weeks regarding the second dispensary process. It outlines the primary reasons why the city should issue the Request for Proposal (RFP).

Sonoma City Council

No. 1 The Plaza

Sonoma, CA 95476

January 5, 2023


Re: Placing Second Cannabis Dispensary on Agenda


Dear Mayor Lowe, Vice Mayor Gurney and Council Members,

On behalf of the Sonoma Valley Cannabis Group, we are writing once again to communicate our strong interest in the process to permit a second cannabis dispensary. In support of that, we offer the following:

1) According to city records, in its first 8 months of operation, Sparc’s gross receipts amount to $2,894,355.41, from which the city of Sonoma received $115,774.22 in Cannabis Business Tax.

2) Sparc has incurred no negative impacts on the safety, health and welfare of Valley citizens.

3) Sparc has had ample time to establish itself as a viable business. Assuming the city issues the RFP for a second dispensary in the first quarter of 2023, that store may not open until the first quarter of 2024, by which time Sparc will have been in operation a full two years.

4) Sonoma’s cannabis consultant HdL noted that the city could support two retailers.1

5) The city council understands that permitting a wide variety of retail stores in Sonoma attracts both locals and visitors. The city council has never restricted an individual or group from opening a retail shop in any business category, whether it’s pharmacies, groceries, clothing or book stores.

Understanding that city staff has already generated the RFP and the associated documents, we respectfully request that the city council, at the earliest possible time, place an item on the Agenda to consider, discuss and act to begin the Request for Proposal Process.

Please feel free to contact us with any questions you may have and we thank you for your time and attention.

Best Regards,

SVCG Executive/Policy Committee

__________________________________________________________________________

1HdL Companies (August 21, 2018), “Elections Code Section 9212 Report Regarding an Initiative Measure to Permit Personal Cannabis Cultivation and Commercial Cannabis Businesses within the City of Sonoma”, City of Sonoma Agenda Item Summary.