Could South Lake Tahoe become the Napa Valley of cannabis?

Could South Lake Tahoe become the Napa Valley of cannabis? Could a new slogan be "Made in Tahoe, Enjoyed in California?" Or will Tahoe weed be world famous?

These are all possible, and the desire of many entrepreneurs, but the South Lake Tahoe City Council wants regulations around the cannabis industry to be done correctly, and thus slowly, to prevent unseen issues that could arise as they develop the first ordinance for adult use cannabis in South Lake Tahoe.

Other states have found that the impact of legal marijuana sales had greater impact on communities and residents than they prepared for, and as Councilman Tom Davis says, its easier to add elements than to take them away from licensed businesses.

Step by step the council worked out aspects of a cannabis ordinance and a draft version will back to the council on May 1 for a vote. They gave staff direction on types of licenses that could soon be available to those wishing to get into the pot business.

The passage of Prop. 64 gave cities and counties the right to have stronger controls than the general ones California has put in place.

There will be six licenses that people could have: two for retail sales, two for cultivation, and two for micro-businesses.

Cultivations will most likely only be up to 5,0000 square feet and will be limited to areas zoned for that type of business.

Director of Development Services Kevin Fabino presented Council with maps of area that will allow the three types of businesses, and those areas will be even more limited with areas not allowed per the ordinance, such as proximity to schools and parks.

At this time, there will be no licenses for manufactures and distributors alone, unless they are micro-businesses. The City will allow the two micro-business licenses which means between three and four business types can be conducted under one roof: cultivation, retail sales, manufacturing and/or distribution. Tahoe Wellness Collective (TWC) is an example of a micro-business.

Also not defined yet will be the development agreements, a way the City can have revenue from the new industry without having to go to the voters for a sales tax ballot measure. A business would be required to sign a development agreement and agree to the terms, which haven't been set yet. They will also have to pay fees at the state level. As with all other City fees, the set amount will be as a 'cost for service' fee to recoup expenses.

Council wants to see a local preference for the issuance of development agreements.

They also are unsure of what to do with TWC, the lone medical marijuana dispensary in South Lake Tahoe for the last nine years. His operation is a micro-business in an area where it may not be allowed in the new ordinance.

Councilmembers Brooke Laine and Austin Sass have been appointed as the City's committee to research and work on more details for the Council.

Sergio Rudin, the City Attorney for the day from the law firm of Burke, Williams and Sorensen, will take the direction from the council on all points and bring back an ordinance for vote, most likely at the May 1 meeting.

He also stressed the need for a development agreement in place before the ordinance takes place. That can happen if both are completed at the May meeting as it gives them until the second reading where it becomes valid.