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City Council <br />Meeting Minutes <br />July 23, 2019 <br />Page 4 of 14 <br />could be by voter approval of the second ballot question or by some other Council <br />or voter action in the future <br />• Revenues from the tax can be used for the following purposes (1) to pay or <br />reimburse the City for direct and indirect costs incurred or expended by the City for <br />training, enforcement, and administration of all applicable marijuana laws and <br />regulations, (2) to support local drug and alcohol programs and facilities, and (3) <br />for other general purposes of the City <br />• Staff estimates for the first year revenue would be $100,000 Staff doubled the <br />estimate to avoid underestimation and potential refund and rate reduction under <br />TABOR <br />• Second reading amendments are proposed to revise the ballot title to reflect the <br />basis for the imposition of tax will be the average market rate rather than the price <br />paid by the purchaser Staff proposes some additional second reading <br />amendments to capture the available excise tax revenue for all marijuana <br />transferred by a cultivation facility <br />Cultivation Facility Ordinance No. 1777 <br />The second ordinance addresses retail marijuana cultivation facilities Specifically, it: <br />• Refers to voters the question of whether retail marijuana cultivation facilities should <br />be allowed within the Industrial zone districts of the City <br />• Cultivation facilities will be allowed only if the voters also approve the excise tax on <br />cultivation facilities <br />• Makes corresponding amendments to Titles 5 and 17 of the City Code <br />• The following two changes were made to the ordinance after Council reviewed it <br />on June 11 <br />o Provides that the total combined square footage of all licensed retail <br />marijuana cultivation facilities operating in the City will not exceed 150,000 <br />square feet of building area <br />o Added a requirement that plants be organized in orderly rows and include <br />aisles of sufficient size to provide clear access to exits <br />• Requires cultivation occur within a locked and enclosed space <br />• As part of the license application, a cultivation facility will be required to submit a <br />ventilation plan describing how odors are prevented from leaving the premises <br />• The prohibition against odor emissions City Council adopted as part of Ordinance <br />No 1769 in February, 2019 will also apply to cultivation facilities Specifically, <br />cultivation facilities (along with stores, manufacturers and testing facilities) are <br />prohibited from emitting detectable odors that leave the premises and that interfere <br />with the reasonable and comfortable use and enjoyment of another's property <br />Mayor Muckle opened the public hearing and asked the City Attorney's remarks be <br />included in the public hearing He called for Council questions <br />Mayor Pro Tem Lipton asked if the start date could be extended to April to allow for <br />further regulations being imposed by Council City Attorney Kelly noted Council wanted <br />