In the nine months since Long Beach voters approved the sale and tax of medical marijuana in the city, staff has received more than 240 business license applications related to the marijuana industry.

 

According to Ajay Kolluri, assistant to the city manager, the city received 212 applications for dispensary licenses, the point of sale for customers to purchase marijuana products. Of those applicants, Kolluri said about 150 were complete and moved forward in the process – 22 of which were priority applicants, meaning they won the 2010 lottery and are guaranteed a license.

 

The following is a list of approved priority dispensary applications:

• 562 Discount Med Inc., 5227 2nd St., 90803

• Mattnjeremy Inc., 2767 E. Broadway, 90803

• C & C Wellness Center, 2515 E. Anaheim St., 90804

• The Airport Collective, 3411 E. Anaheim St., 90804

• C.A.R.E. Collective Inc., 2725 South St., 90805

• Cornerstone Health and Wellness, 1147 South St., 90805

• LB Collective Inc., 1731 E. Artesia Blvd., 90805

• Holistic Alternative Herbal Medicine, 6978 Stanley Ave., 90805

• The Airport Collective, 2801 E. Artesia Blvd., 90805

• Emerald Beach Care Inc., 1957 Pacific Ave., 90806

• NHS Collective, 1901 Atlantic Ave., 90806

• Savia Inc., 2760 E. Spring St., #120, 90806

• Alternative Therapeutic Solutions, 3170 Cherry Ave., 90807

• Alternate Health Collective Association, 3428 Long Beach Blvd., 90807

• Cannabis Evaluation Center Inc., 3120 Los Coyotes Dia., 90808

• NLB Collective Inc., 4855 Bellflower Blvd., 90808

• RLB Collective Inc., 3401 Norwalk Blvd., 90808

• 4th Street Collective Inc., 1248 Long Beach Blvd., 90813

• Chronic Pain Releaf Center, 1501 Santa Fe Ave., 90813

• LB Green Room Inc., 1735 E. 7th St., 90813

• CLB Collective, 404 Redondo Ave., 90814

• Avalon Wellness Collective, 1755 Ximeno Ave., 90815

 

The remaining applications were scored and ranked on a 23-point system. Since only 10 spots out of 32 remain after taking into account priority applicants, the 77 applicants that scored 23 points will be entered into a two-round lottery.

 

“There are a number of applications that were submitted for the same address . . . because certain property owners permitted multiple applicants to be submitted from their address. That will not impact our public lottery process because the lottery will be held in two rounds,” Kolluri said. “The first round will be by address, and depending on which address is selected, we may have a second round to determine which of the applicants will receive a license for that address.”

 

The dispensaries located on 2nd Street in Belmont Shore and on 7th Street were the first to work through the permitting process, according to Kolluri. Both locations are currently under construction, with the possibility of opening for business sometime in September or October.

 

Kolluri said staff also has received 25 cultivation applications and five manufacturing applications but has yet to receive any laboratory testing applications. Of the cultivators, only one has submitted a plan for review, with another five having been contacted to sit down with development services in hopes of making a submittal soon. The remaining cultivators, as well as manufacturers, are still in review with business licensing, according to Kolluri.

 

Though no laboratory testing applications have been received, Kolluri noted he is aware of several businesses planning to submit.

 

“There is another category, distribution. We made the application available on August 15, and we will begin accepting applications on September 1,” Kolluri said. “Distribution is sort of the warehousing sector of the industry. They attain product from cultivators and manufacturers, they handle quality control, they coordinate the laboratory testing and then they provide the product to dispensaries.”

 

In preparation of marijuana businesses opening in Long Beach, the city council has taken action to ensure unlicensed marijuana businesses do not operate in the city and to solidify regulations with regard to buffer zones to be in line with state regulations.

 

At its August 22 meeting, the council voted in favor of the city manager drafting an ordinance that would set a 600-foot buffer zone radius for daycare centers but not youth centers. Regulations set by the State of California gave local governments the authority to set buffer zones barring marijuana businesses from certain areas. Other buffer zones in Long Beach include schools, parks, libraries and beaches.

 

The ordinance is expected to return to council within 30 days, according to Kolluri. He added that all applications for a marijuana business license submitted prior to January 1, 2018, will be exempt from the new buffer zone regulations.

 

“We are in the middle of our business licensing process, so in order to be fair to applicants who have acted in good faith, we had to provide fair warning to other applicants who may have taken steps to apply, such as entering into long-term leases or purchasing property,” Kolluri said. “It just gives them a window to adjust to these new requirements.”

 

At the city council’s July 11 meeting, councilmembers voted unanimously to approve an ordinance defining penalties and measures allowed while dealing with illegally operating marijuana businesses. Under the municipal code amendment, the city has the authority to penalize not only those operating the business but the owners of the property. Additionally, the penalties have increased and the city is authorized to shut off utilities of unlicensed marijuana businesses.

 

According to Kolluri, the administrative model for monitoring marijuana businesses includes code enforcement, business licensing, the fire department and, when necessary, police. The city is made aware of most illegal businesses by the public notifying code enforcement or calling the city’s medical marijuana hotline at 562/570-5150.

 

“So far, that action has acted as a strong deterrent for illegal businesses. We haven’t had to actually utilize that authority. We’ve been very effective . . . in identifying unlicensed businesses and getting them to voluntarily shut down.” Kolluri said. “But it is very helpful to have this in our arsenal, and staff is very thankful for city council granting us some of those tools.”

Brandon Richardson is a reporter and photojournalist for the Long Beach Post and Long Beach Business Journal.