CALIFORNIA CANNABIS CPA

  • Home
  • Services
  • Blog
  • Get Started
  • Home
  • Services
  • Blog
  • Get Started

Cannabis Business Opportunities in Desert Hot Springs, CA

11/14/2017

 
Picture
Currently, the City of Desert Hot Springs is accepting applications for temporary marijuana facilities.  These temporary options allow facilities in the City Desert Hot Springs to begin operation while the state develops the appropriate regulations for  Proposition 64 (Prop 64), the “Control, Regulate and Tax Adult Use of Marijuana Act”. 

Proposition 64 was designed to reshape the use and taxes of marijuana in the state including designating specific agencies to regulate and licenses of the marijuana industry in California.  As the state works to create licensing procedures that meet the new law by January 1, 2018, cities like Desert Hot Springs have decided to implement temporary processes to cover businesses in the interim. 

Anyone interested in submitting a temporary marijuana facility application must go through the process outlined below:

Step 1:  Select A Temporary Facility Option

Step 2:  Obtain Appropriate Permits

Step 3:  Submit Application to Initiate the Approval Process

_____________________________________________


Step 1: Select A Temporary Facility Option

The City of Desert Hot Springs is offering three options for temporary marijuana facilities.  Marijuana businesses must determine the best temporary option based on business needs.  Below are three options outlined by the City:

  • Option 1: Conditional Use Permit (CUP): This option works for marijuana businesses that do not have a facility. Under this option the City allows the marijuana business to submit an “Amendment (pursuant to the Desert Hot Springs Municipal Code) to an existing Conditional Use Permit” to add a “Temporary Interim Phase”.  This phase allows for the construction of “temporary medical marijuana facilities”.  During this phase approved businesses will be issued a Temporary Certificate of Occupancy and Temporary Regulatory Permit by the City. 
 
  • Option 2: Minor Modification Permit: This option works for marijuana businesses who already have been approved for construction but need to make changes to the existing project.   Marijuana business can “construct a portion of the already approved project” under an existing CUP.  The marijuana business should submit an application for Minor Modification to the CUP.  This will allow the construction of a portion of an already approved project under the existing CUP.  If approved the City will issue a Temporary Certificate of Occupancy and Temporary Regulatory Permit.
 
  • Option 3:  Temporary Permit for Approval: This option offers a place for cultivation and manufacturing while the rest of the project is under construction.  According to the City of Desert Hot Springs, the marijuana business “may submit an application for a Temporary Permit to the approved Conditional Use Permit (pursuant to the Desert Hot Springs Municipal Code Chapter 17.136) to allow 1 (One) Administrative Trailer and 1(One) Shipping Container that may be used for Temporary Indoor Cultivation, to allow the issuance of a Temporary Certificate of Occupancy and Temporary Regulatory Permit while the rest of the project is under construction.”

Step 2:  Obtain Appropriate Permits 

All marijuana businesses must complete the Marijuana Facility Regulatory Permit application.  Marijuana businesses who want to open prior to the state issuing permits will be required to complete a Conditional Use Permit application.  This permit covers each of the three options for temporary facilities outlined by the City.  Each option has its own requirements, process and fees for a temporary facility approval.

The City encourages that businesses seeking temporary facilities meet with the Community Development Director in advance of submitting an application.  To schedule an appointment, contact Daniel Porras at (760) 329-6411 or dporras@cityofdhs.org.  

Step 3:  Submit Application to Initiate the Approval Process

Each option has its own application process.  Since each permit is temporary, the City is requiring that progress is shown on the project once Temporary Certificate of Occupancy has been issued. This progress can be demonstrated by documentation from the developer to the Community Development Director at the City.  The Temporary Certificate of Occupancy will become void in 180 days if the project fails to show progress.

All fess must be paid in advance.  

Option 1:  Conditional Use Permit

To obtain a temporary permit under Option 1, a “noticed” hearing is required with the City’s Planning Commission.  The Planning Commission will decide on issuing the temporary permit and the following will be issued upon approval: 1) Temporary Interim Phase; 2) Temporary Certificate of Occupancy; and 3) Temporary Regulatory Permit. 

The following information should be included in the application:

  • Approval from utility agencies for permanent and temporary services
  • Easy access for the City of Desert Hot Springs Police and Fire Department (turnaround areas, etc.)
  • A waste disposal plan
  • Building ability to meet Police and Fire Department Codes for all site and structures
  • Any temporary structures must meet all City Building and Safety (structural, HVAC, plumbing, etc.).
  • Security plan (with fencing, cameras, security, etc.)

Application fee:  $3,725

Application Approval Timeline:  Contact City Staff

Option 2: Minor Modification Permit

Minor Modification permits require that the marijuana business have City Staff review and approve the permit prior to making the modifications.  Applications should include the following information:

  • The information physical structure including: exact location, size, shape and color. 
  • A plan for public improvements must be completed prior to issuance of the Temporary Certificate of Occupancy.
  • Storm water and drainage plan
  • The property must contain proper access for Police and Fire Department with proper access to site, entry, and turn-around areas.
  • The temporary facility (proposed portion of construction) must meet all code requirements for occupancy (structural, HVAC, plumbing, etc.).
  • A site security plan with fencing, cameras and guards

Application fee:  $245

Application Approval Timeline:  2-3 weeks

Option 3:  Temporary Permit to the Conditional Use Permit

Temporary Permit to the Conditional Use Permits will only be issued for cultivation and manufacturing. 

Under Option 3, marijuana businesses can a request an extension on temporary facilities.  They must make this request 30 days prior to their 180-day permit’s expiration and it must be in sent to the Community Development Director in writing.  If the permit expires, the business must remove the additional structures within 30 days.

The temporary structure must include the following outlined by the City:

  • A minimum 4 Parking Spaces with 1 space designated as ADA Van accessible.
  • All requirements for National Pollutant Discharge Elimination System (NPDES) and Storm Water On-site Retention apply to the temporary phase.
  • All Building and Safety Codes must be met for Temporary Facilities Structures and for Temporary Certificate of Occupancy (structural, HVAC, plumbing, etc.) 1
  • Corresponding utility agencies must approve the proposed temporary utility services for the Temporary Facilities Structures(s). • All corresponding permitting and associated fees for proposed temporary utilities must be completed.
  • The Applicant/Developer/Contractor shall comply with section 8.08 Recycling and Diversion of Waste from Construction and Demolition of the Municipal Code and file a Plan with the City’s Building Department prior to the start of any construction
  • Provide paved access for Police and Fire Department with property access to site, entry and turnaround areas. • All Police and Fire Department Codes must be met (1) for the site, and (2) for the Temporary Facilities Structure(s). • Site must be secured (with fencing, cameras, security, etc.) pursuant to all Conditional Use Permit approvals. • Adequate lighting must be provided for the entire temporary site.
  •  Any proposed signs shall be reviewed under separate permit under the Sign Ordinance.
  • A site plan showing all improvements proposed with the Temporary Use Permit shall be submitted with the application. 

The City requires additional plans required for this type of temporary permit.  Those requirements include: Grading Plan showing temporary improvements; Hydrology Report and Soils Report.  They also require the following plans:

  • Storm Water Pollution Prevention
  • Water Quality Management
  • PM 10 Dust Mitigation
  • Lighting
  • Security Camera
  • Landscape 

Application fee: $7,986 plus $40,000 cash deposit (returned up project completion or when site is returned to original condition)

Application Approval Timeline:  3-6 weeks

    Categories

    All
    Accounting
    Banking
    Business
    Cannabidiol
    CBD
    Compliance
    Cultivation
    Distribution
    Hemp
    Insurance
    Investing
    IRS
    Licenses
    Manufacturing
    Marketing
    Taxes
    Testing

California Cannabis CPA is owned and operated by GreenGrowth CPAs.
The information contained in this website is meant only for guidance purposes and not as professional legal or tax advice.  Further, it does not give personalized legal, tax, investment or any business advice in general.  For professional consultation, please sign-up for our services. California Cannabis CPA disclaims any and all liability and responsibility for any and all errors or omissions for the content contained on this site. 
*California Cannabis CPA does not provide Audit and Assurance related services directly to its clients - all professional services are provided by GreenGrowth CPAs. 
Please review our privacy policy here. California Cannabis CPA is owned and operated through GreenGrowth CPAs.