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Posted: November 22, 2024
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF112724-08

Agenda Item Title:

Provide Direction Regarding the Moratorium on the Acceptance of Applications for New Cannabis Dispensary Licenses

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
11/27/2024
City Council Hearing Date:
12/02/2024
Agenda Item Summary:
On October 7th of this year the City Council approved a resolution which placed a moratorium on accepting applications for new cannabis dispensary licenses. The City currently has five licenses that are inactive and would be available for distribution based on the previous lottery priority list if the moratorium was not in place. In part, the moratorium allowed the City to maintain the status quo on the number of cannabis dispensaries in the City pending the results of the November 5th election where a measure that would have authorized adult use cannabis was on the ballot. The measure authorizing adult use cannabis was defeated on November 5th. Since the measure was defeated, staff is requesting direction from the Council on how to proceed on the five inactive licenses. Some options the Council has regarding the licenses:

  1. The Council could lift the moratorium and staff will allocate the licenses pursuant to the priority list established in the original license lottery and/or City ordinance.
  2. In conjunction with lifting the moratorium, the Council could announce a plan for how it intends to handle any licenses that are not operational within a year of being issued pursuant to Sec. 5.74.110 of the RCMC.
  3. The Council could leave the moratorium in place and direct staff to bring forward amendments to the existing ordinance which may impact the five inactive licenses. For example:
    • The Council could direct that the ordinance be amended to reduce the number of dispensary licenses in the City.
    • The Council could direct the ordinance be amended to establish a process to prioritize license applications for those who do not already possess a dispensary license in Rapid City.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Notes:
No Recommendation
Published in 2024 - LF Agenda Items
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