Santa Paula will not be opening its doors to commercial cannabis sales in the near future.
In a special meeting at the Santa Paula Community Center, the City Council voted 4-1 on April 6 against placing a cannabis measure on the November ballot.
Councilmember Pedro Chavez cast the lone vote in favor, saying the decision should be left to the public.
“If this is an issue of morality and conscience, you should be able to make those decisions personally – talk to your neighbors, rally support and do it at the ballot box,” Chavez said. “Ultimately, I strongly feel that the people need to make the decision.”
The other council members voted against the proposal, citing a lack of research on the topic and a deep division within the community.
(This story has been updated with additional information from the city manager.)
“If we have higher priorities that we are not addressing, we need to look at our budget,” said Councilmember Leslie Cornejo. “We don’t need to look at tearing our community apart and having a fight from April until November over this issue.”
Most of the 40-plus people who spoke during public comment were against placing cannabis on the ballot.
“We have children here,” said resident Ruth Anne Nelson. “I’d rather have a poor city with people – with nothing, with barely any cops – than have a rich city with everybody high, having their marijuana on the streets. It’s ridiculous.”
California voters in 2016 approved Proposition 64, which legalized adult-use cannabis and authorized local governments to regulate or prohibit commercial cannabis activity, according to an April 6 staff report. While cities retain control over cannabis regulations, Santa Paula currently prohibits most commercial cannabis activities.
Santa Paula voters approved Measure N in November 2018, authorizing the city to impose a cannabis business tax. The measure allows for a tax of up to 10% of gross receipts for retail and other cannabis businesses and up to $25 per square foot for cultivation or processing space.
The measure passed with about 72% voter approval and was presented as a general tax intended to fund street repairs, police enforcement and other general municipal needs until repealed by voters, according to the report.
Although the city adopted a cannabis business tax ordinance, it has not established the regulatory permitting needed to allow cannabis businesses to operate.
The Cannabis Standing Committee, made up of Mayor Carlos Juarez and Chavez, has been discussing the concept of pursuing a ballot measure for the better part of the past year, City Manager Dan Singer said in an email after the meeting.
The April 6 meeting and recommendations were the culmination of their work and direction after numerous public discussions about the idea, he said.
“I wouldn’t want there to be any perception that this was rushed or sudden,” Singer said. “It was not.”
Ojai, Port Hueneme, Oxnard and Ventura have authorized cannabis dispensaries, according to the report, and state law requires cities to allow cannabis delivery services.
Recent sales tax data from Port Hueneme and Ojai show annual cannabis-related revenues of approximately $1.1 million and $160,000, respectively.
Cannabis markets in Ventura County and statewide have shifted since 2018, with nearby cities such as Ojai and Port Hueneme experiencing reductions in dispensary operations and tax revenue due to increased competition and high tax burdens, according to the report.
If approved by voters, potential benefits of a cannabis ballot measure could include new general fund revenue, occupancy of vacant commercial properties, local job creation and increased regulatory oversight, according to the report.
Potential concerns included impacts on community character, public safety perceptions, youth access and land use compatibility, according to the report.
Projected annual revenue for Santa Paula could range from $300,000 to $600,000 annually, depending on the tax rate.
The cost of pursuing a ballot measure was estimated at $25,000 to $90,000. The city would have faced a late June deadline to submit resolutions and ballot language for the Nov. 3 election.
Wes Woods II covers West County for the Ventura County Star. Reach him at wesley.woodsii@vcstar.com, 805-437-0262 or @JournoWes.
This article originally appeared on Ventura County Star: Santa Paula council rejects cannabis sales ballot measure
Reporting by Wes Woods II, Ventura County Star / Ventura County Star
USA TODAY Network via Reuters Connect
