OFFICE OF THE CITY MANAGER

AGENDA MARIJUANA LOCAL LICENSING AUTHORITY

REGULAR MEETING JANUARY 24, 2017

Immediately following the City Council Meeting

1. CALL TO ORDER - Members of the Authority

2. ROLL CALL

3. APPROVAL OF THE AGENDA

4. BUSINESS

A. A motion adopting the point assessments.

B. A motion selecting the applicant with the highest point total in Quadrant 1 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan.

C. A motion selecting the applicant with the highest point total in Quadrant 2 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan.

D. A motion selecting the applicant with the highest point total in Quadrant 3 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan.

E. A motion selecting the applicant with the highest point total in Quadrant 4 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan.

5. OTHER MATTERS

6. ADJOURNMENT

......

red by Nancy A. Vincent, City Clerk dge, City Manager

MARIJUANA AUTHORITY COMMUNICATION Meeting Date: Agenda Item: Agenda Location : Work Plan#

January 24, 2017 Business N/A

Subject: A motion adopting the point assessments. [220-GE]

Recommended by: Robb Kolstad

Presenter(s): Nancy Vincent, City Clerk

SYNOPSIS:

Approved by: Jack Ethredg

_1 51 Reading _2nd Reading

Applications for licenses for marijuana stores pursuant to City Code Section 42-716 are awarded by a competitive three-stage review process, comprised of an initial review of completeness and compliance with state and city requirements, a secondary review consisting of a point assessment, and a public hearing held to review the applicant's Community Engagement Plan.

During Stage 2 of the process, the City Clerk's Office compiled the total amount of points for each applicant based on the criteria outlined in Section 42-716(c)(1-9) and Section 42-716(c)(10&11). The marijuana licensing process states that the applicant with the highest number of points assessed in each quadrant will move forward to the public hearing process.

Section 42-716(c) also states that should the Authority award points differently than the City Clerk, the Authority must state those reasons on the record. In the event that two or more applicants applying for a license in one geographical quadrant receive the same total point assessment, the Authority shall, by random drawing, select the applicant that will move forward to a public hearing.

The Final Staff Recommended Point Assessment by Quadrant is attached for the Authority's reference in selecting the top applicant.

RECOMMENDATION:

Staff recommends Alternative No. 1, that the Authority make and approve the following motion: Move to adopt the point assessments as stated in the document titled Final Staff Recommended Point Assessment by Quadrant.

BUDGET/STAFF IMPLICATIONS:

None

ALTERNATIVES:

1. Approve a motion adopting the point assessments as stated and as recommended by staff for each application in Quadrants 1 - 4.

2. Approve a motion to reassess the total points assigned for ("state applicant") to (points __ ) for __ (state reason for reassessed points). Following any action to reassess points for any nurpb'er,-of applications, approve: _/

MARIJUANA LICENSING AUTHORITY PAGE2

A motion to approve the total points assessed, as amended, for all applications.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

The City Clerk's office began accepting marijuana applications on October 14, 2016. Prior to acceptance, applicants were required to meet zoning requirements and setback distances. Once all applications were reviewed and deemed complete, the City Clerk's office scanned and placed them on the SharePoint site for reviewers to access and provide input on the point assessment. A three­person panel was contracted to review the Business Plans and Operating Plans for each application.

Staff reviewed all completed applications and scored the applications according to the criteria outlined in the licensing ordinance. Points were awarded for the following criteria:

• Experience operating a licensed marijuana business in Colorado (up to 3 points) • Experience and Lack of Administrative Penalties (up to 3 points) • Thornton residency for prior 12 months (1 point) • No prior felony convictions (2 points) • No prior misdemeanor convictions (2 points) • No pending criminal charges (2 points) • Certification that applicant will not employ a person with a felony in last 10 years, any drug

felony ever, or a drug misdemeanor in the last 5 years (4 points) • Air filtration system prior to opening which filters air so as to prohibit odor outside the licensed

premise (3 points) • Security plan demonstrating implementation of security measures above minimum state and

local requirements (2 points) • Operating Plan (from 1 to 10 points) • Business Plan (from 1 to 10 points)

Once the Authority has selected the top four point-receiving applicants, those applicants will then move to the final phase of the licensing process, the public hearing. The public hearing must be held within 60 days of the Authority's selection. The purpose of the public hearing is for the applicant to present a Community Engagement Plan, and demonstrate how that plan will interface with the submitted application and supplemental materials.

FINAL STAFF RECOMMENDED POINT ASSESSMENT BY QUADRANT

Application Total Number Business Name Address Quadrant Type of License Points

AJS Thornton, LLC dba

3 Sweet Leaf 9191 Huron Drive 1 Retail 38 Futurevision 2020,LLC dba

6 Medicine Man Thornton 130 W. 84th Ave 1 Retail 38 The Green Solution, LLC dba

7 The Green Solution 9162 Huron Street 1 Retail 37 Co-located

27 Abree LLC 130 W . 84th Avenue 1 Retail/Medical 37

17 TW, LLC dba MiNDFUL 8551 Washington Street 1 Retail 36 Co-located

31 Kind Love 130 W. 84th Avenue 1 Retail/Medical 36 GGT LLC dba Green Grass

10 Thornton 1 0258 Ura Lane 1 Retail 35 Gamma Holdings Inc dba Co-located

11 Terrapin Care Station 130 W. 84th Ave 1 Retail/Medical 34 Cannabis Corp dba the Joint

13 by Cannabis 8551 Washington Street 1 Retail 34 Thornton Wellness LLC dba Co-located

1 Golden Meds 10300 Washington St. 1 Retail/Medical 33 Co-located

14 Trill Evolutions 8551 Washington Street 1 Retail/Medical 32 Alternative Medicine on the Co-located

28 Mall, LLC dba Native Roots 690 E. 104th Avenue 1 Retail/Medical 31 MMJ Thornton LLC dba Co-located

16 America Thornton 130 W. 84th Ave 1 Retail/Medical 30 Thornton Retail Group dba

25 Fatto 130 W . 84th Ave 1 Retail 27 The Green Solution, LLC dba

8 The Green Solution 9651 Welby Road 2 Retail 37 Rocky Road Remedies, LLC

20 dba Rocky Road Thornton 3901 E. 112th Avenue Unit G 2 Retail 37 Cannabis Corp dba the Joint

12 by Cannabis 10376 N. Colorado Blvd. 2 Retail 34 Alternative Medicine on the Co-located

29 Mall, LLC dba Native Roots 10374 Colorado Boulevard 2 Retail/Medical 31 Cannabis King LLC dba

5 Green Dragon Colorado 5823 E. 128th Ave 3 Retail 34 Alternative Medicine on the Co-located

30 Mall, LLC dba Native Roots 12720 Colorado Boulevard 3 Retail/Medical 31 AJS Thornton, LLC dba

4 Sweet Leaf 2551 E. 120th Ave 4 Retail 38 136 Denver Developer LLC

18 dba Euflora 13621 Washington 4 Retail 35

MARIJUANA AUTHORITY COMMUNICATION Meeting Date: Agenda Item: Agenda Location:

January 24, 2017 Business

Work Plan#

N/A _1st Reading _2nd Reading

Subject: A motion selecting the applicant with the highest point total in Quadrant 1 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan. [220-GE]

Recommended by: Robb Kolsta

Presenter(s): Nancy Vincent, Cit

SYNOPSIS:

Approved by: Jack Ethredge

Pursuant to Section 42-716(c), after the Authority has reviewed each application and points have been assessed and adopted by the Authority, the Authority is to select the applicant with the highest number of points assessed in Quadrant 1. Those four applicants will then move to Stage 3, the final phase of the licensing process, the public hearing on the applicant's Community Engagement Plan.

If there is a tie, a random drawing between the applicants tied for the highest number of points will be required, and the winner of the random drawing will be selected to move forward to the Stage 3 public hearing.

RECOMMENDATION:

Staff recommends Alternative No. 1, that the Authority make and approve a motion selecting the applicant who will move forward to the public hearing process, as follows: Move to select applicant #_, (name of applicant)( doing business as), who has the highest amount of points in Quadrant 1 ,to proceed to Stage 3 of the marijuana licensing process.

BUDGET/STAFF IMPLICATIONS:

None

ALTERNATIVES:

1. That the Authority select the applicant for Quadrant 1 who will move forward to the final phase of the licensing process.

2. Do not select the applicant to move forward in this process.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

Applications for licenses for marijuana stores pursuant to City Code Section 42-716 are awarded by a competitive three-stage review process, comprised of an initial review designed to ensure completeness of applications and compliance with state and city requirements, a secondary review of all applications meeting the initial review requirements whereby each application will be subject to a Point System review, and finally, a public hearing held to review the applicant's Community Engagement Plan.

MARIJUANA LICENSING COMMUNICATION PAGE 2

The City Clerk's Office accepted marijuana applications from September 1, 2016 to October 14, 2016. Prior to acceptance, applicants were required to meet zoning requirements and setback distances. Once all applications were reviewed and deemed complete, staff reviewed the application and assessed the points based on the adopted ordinance. An independent three-person panel was contracted to review the Business Plans and Operating Plans for each application.

Points were awarded for the following criteria: • Experience operating a licensed marijuana business in Colorado (up to 3 points) • Experience and Lack of Administrative Penalties (up to 3 points) • Thornton residency for prior 12 months (1 point) • No prior felony convictions (2 points) • No prior misdemeanor convictions (2 points) • No pending criminal charges (2 points) • Certification that applicant will not employ a person with a felony in last 10 years, any drug

felony ever, or a drug misdemeanor in the last 5 years (4 points) • Air filtration system prior to opening which filters air so as to prohibit odor outside the licensed

premise (3 points) • Security plan demonstrating implementation of security measures above minimum state and

local requirements (2 points) • Operating Plan (from 1 to 10 points) • Business Plan (from 1 to 10 points)

Once the Authority has selected the top four point-receiving applicants, those applicants will then move to the final phase of the licensing process, the public hearing. The public hearing must be held within 60 days of the Authority's selection. The purpose of the public hearing is for the applicant to present a Community Engagement Plan, and demonstrate how that plan will interface with the submitted application and supplemental materials.

MARIJUANA AUTHORITY COMMUNICATION Meeting Date: Agenda Item: Agenda Location:

January 24, 2017 Business

Work Plan#

N/A _ 181 Reading _2nd Reading

Subject: A motion selecting the applicant with the highest point total in Quadrant 2 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan. [220-GE]

Recommended by: Robb Kolstad f.­Presenter(s): Nancy Vincent, City Clerk

SYNOPSIS:

Approved by: Jack Ethredge

Pursuant to Section 42-716(c), after the Authority has reviewed each application and points have been assessed and adopted by the Authority, the Authority is to select the applicant with the highest number of points assessed in Quadrant 2. Those four applicants will then move to Stage 3, the final phase of the licensing process, the public hearing on the applicant's Community Engagement Plan.

If there is a tie, a random drawing between the applicants tied for the highest number of points will be required, and the winner of the random drawing will be selected to move forward to the Stage 3 public hearing.

RECOMMENDATION:

Staff recommends Alternative No. 1, that the Authority make and approve a motion selecting the applicant who will move forward to the public hearing process, as follows: Move to select applicant #_, (name of applicant)( doing business as), who has the highest amount of points in Quadrant 2, to proceed to Stage 3 of the marijuana licensing process.

BUDGET/STAFF IMPLICATIONS:

None

ALTERNATIVES:

1. That the Authority select the applicant for Quadrant 2 who will move forward to the final phase of the licensing process.

2. Do not select the applicant to move forward in this process.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

Applications for licenses for marijuana stores pursuant to City Code Section 42-716 are awarded by a competitive three-stage review process, comprised of an initial review designed to ensure completeness of applications and compliance with state and city requirements, a secondary review of all applications meeting the initial review requirements whereby each application will be subject to a Point System review, and finally, a public hearing held to review the applicant's Community Engagement Plan.

MARIJUANA LICENSING COMMUNICATION PAGE2

The City Clerk's Office accepted marijuana applications from September 1, 2016 to October 14, 2016. Prior to acceptance, applicants were required to meet zoning requirements and setback distances. Once all applications were reviewed and deemed complete, staff reviewed the application and assessed the points based on the adopted ordinance. An independent three-person panel was contracted to review the Business Plans and Operating Plans for each application.

Points were awarded for the following criteria: • Experience operating a licensed marijuana business in Colorado (up to 3 points) • Experience and Lack of Administrative Penalties (up to 3 points) • Thornton residency for prior 12 months (1 point) • No prior felony convictions (2 points) • No prior misdemeanor convictions (2 points) • No pending criminal charges (2 points) • Certification that applicant will not employ a person with a felony in last 10 years, any drug

felony ever, or a drug misdemeanor in the last 5 years (4 points) • Air filtration system prior to opening which filters air so as to prohibit odor outside the licensed

premise (3 points) • Security plan demonstrating implementation of security measures above minimum state and

local requirements (2 points) • Operating Plan (from 1 to 10 points) • Business Plan (from 1 to 10 points)

Once the Authority has selected the top four point-receiving applicants, those applicants will then move to the final phase of the licensing process, the public hearing. The public hearing must be held within 60 days of the Authority's selection. The purpose of the public hearing is for the applicant to present a Community Engagement Plan, and demonstrate how that plan will interface with the submitted application and supplemental materials.

MARIJUANA AUTHORITY COMMUNICATION Meeting Date: Agenda Item: Agenda Location :

January 24, 2017 Business

Work Plan#

N/A _ 1st Reading _2nd Reading

Subject: A motion selecting the applicant with the highest point total in Quadrant 3 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan. [220-GE]

Recommended by: Robb Kolstad

Presenter(s): Nancy Vincent, City Clerk

SYNOPSIS:

Approved by: Jack Ethredge

Pursuant to Section 42-716(c), after the Authority has reviewed each application and points have been assessed and adopted by the Authority, the Authority is to select the applicant with the highest number of points assessed in Quadrant 3. Those four applicants will then move to Stage 3, the final phase of the licensing process, the public hearing on the applicant's Community Engagement Plan.

If there is a tie, a random drawing between the applicants tied for the highest number of points will be required, and the winner of the random drawing will be selected to move forward to the Stage 3 public hearing.

RECOMMENDATION:

Staff recommends Alternative No. 1, that the Authority make and approve a motion selecting the applicant who will move forward to the public hearing process, as follows: Move to select applicant #_, (name of applicant)( doing business as), who has the highest amount of points in Quadrant 3, to proceed to Stage 3 of the marijuana licensing process.

BUDGET/STAFF IMPLICATIONS:

None

ALTERNATIVES:

1. That the Authority select the applicant for Quadrant 3 who will move forward to the final phase of the licensing process.

2. Do not select the applicant to move forward in this process.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

Applications for licenses for marijuana stores pursuant to City Code Section 42-716 are awarded by a competitive three-stage review process, comprised of an initial review designed to ensure completeness of applications and compliance with state and city requirements, a secondary review of all applications meeting the initial review requirements whereby each application will be subject to a Point System review, and finally, a public hearing held to review the applicant's Community Engagement Plan.

MARIJUANA LICENSING COMMUNICATION PAGE2

The City Clerk's Office accepted marijuana applications from September 1, 2016 to October 14, 2016. Prior to acceptance, applicants were required to meet zoning requirements and setback distances. Once all applications were reviewed and deemed complete, staff reviewed the application and assessed the points based on the adopted ordinance. An independent three-person panel was contracted to review the Business Plans and Operating Plans for each application.

Points were awarded for the following criteria: • Experience operating a licensed marijuana business in Colorado (up to 3 points) • Experience and Lack of Administrative Penalties (up to 3 points) • Thornton residency for prior 12 months (1 point) • No prior felony convictions (2 points) • No prior misdemeanor convictions (2 points) • No pending criminal charges (2 points) • Certification that applicant will not employ a person with a felony in last 10 years, any drug

felony ever, or a drug misdemeanor in the last 5 years (4 points) • Air filtration system prior to opening which filters air so as to prohibit odor outside the licensed

premise (3 points) • Security plan demonstrating implementation of security measures above minimum state and

local requirements (2 points) • Operating Plan (from 1 to 10 points) • Business Plan (from 1 to 10 points)

Once the Authority has selected the top four point-receiving applicants, those applicants will then move to the final phase of the licensing process, the public hearing. The public hearing must be held within 60 days of the Authority's selection. The purpose of the public hearing is for the applicant to present a Community Engagement Plan, and demonstrate how that plan will interface with the submitted application and supplemental materials.

MARIJUANA AUTHORITY COMMUNICATION Meeting Date: Agenda Item: Agenda Location:

January 24, 2017 Business

Work Plan#

N/A _1st Reading _2nd Reading

Subject: A motion selecting the applicant with the highest point total in Quadrant 4 to proceed to Stage 3 of the marijuana licensing process, public hearing on the Community Engagement Plan. [220-GE]

Recommended by: Robb Kolstad

Presenter(s): Nancy Vincent, City Clerk

SYNOPSIS:

Approved by: Jack Ethredge

Pursuant to Section 42-716(c), after the Authority has reviewed each application and points have been assessed and adopted by the Authority, the Authority is to select the applicant with the highest number of points assessed in Quadrant 4. Those four applicants will then move to Stage 3, the final phase of the licensing process, the public hearing on the applicant's Community Engagement Plan.

If there is a tie, a random drawing between the applicants tied for the highest number of points will be required, and the winner of the random drawing will be selected to move forward to the Stage 3 public hearing.

RECOMMENDATION:

Staff recommends Alternative No. 1, that the Authority make and approve a motion selecting the applicant who will move forward to the public hearing process, as follows: Move to select applicant #_, (name of applicant)( doing business as), who has the highest amount of points in Quadrant 4, to proceed to Stage 3 of the marijuana licensing process.

BUDGET/STAFF IMPLICATIONS:

None

ALTERNATIVES:

1. That the Authority select the applicant for Quadrant 4 who will move forward to the final phase of the licensing process.

2. Do not select the applicant to move forward in this process.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

Applications for licenses for marijuana stores pursuant to City Code Section 42-716 are awarded by a competitive three-stage review process, comprised of an initial review designed to ensure completeness of applications and compliance with state and city requirements, a secondary review of all applications meeting the initial review requirements whereby each application will be subject to a Point System review, and finally, a public hearing held to review the applicant's Community Engagement Plan.

MARIJUANA LICENSING COMMUNICATION PAGE2

The City Clerk's Office accepted marijuana applications from September 1, 2016 to October 14, 2016. Prior to acceptance, applicants were required to meet zoning requirements and setback distances. Once all applications were reviewed and deemed complete, staff reviewed the application and assessed the points based on the adopted ordinance. An independent three-person panel was contracted to review the Business Plans and Operating Plans for each application.

Points were awarded for the following criteria: • Experience operating a licensed marijuana business in Colorado (up to 3 points) • Experience and Lack of Administrative Penalties (up to 3 points) • Thornton residency for prior 12 months (1 point) • No prior felony convictions (2 points) • No prior misdemeanor convictions (2 points) • No pending criminal charges (2 points) • Certification that applicant will not employ a person with a felony in last 10 years, any drug

felony ever, or a drug misdemeanor in the last 5 years (4 points) • Air filtration system prior to opening which filters air so as to prohibit odor outside the licensed

premise (3 points) • Security plan demonstrating implementation of security measures above minimum state and

local requirements (2 points) • Operating Plan (from 1 to 10 points) • Business Plan (from 1 to 10 points)

Once the Authority has selected the top four point-receiving applicants, those applicants will then move to the final phase of the licensing process, the public hearing. The public hearing must be held within 60 days of the Authority's selection. The purpose of the public hearing is for the applicant to present a Community Engagement Plan, and demonstrate how that plan will interface with the submitted application and supplemental materials.