Commercial Cannabis Permits in the City of Arcata

Currently, the City of Arcata, CA is accepting applications to obtain a permit for Commercial Cannabis Activity permit (CCAP).  This application process began April 1, 2016.

Anyone interested in a medical cannabis business within the City must go through the process outlined below:

Step 1: Identify Permit Type

Step 2: Gather Application Information

Step 3: Write Operational and Logistical Plans

Step 4: Submit Application to Initiate the Approval Process

Step 1: Identify Permit Type: 

There are eight types of permits under the City’s CCAP process defined by the type of medical cannabis business.  The following are the permit types: Cultivation (the chart below outlines the cultivation standards), Manufacturer 1 (nonvolatile solvents), Manufacturer 2 (volatile solvents), Testing Laboratory, Dispensary, Distributer, Transporter and Delivery.  

Cultivation Activities Defined by the Medical Cannabis Regulation and Safety Act 

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​(Note: Permits are for specific locations where the business operates, more than one location for the same business will require separate permits)

Step 2: Application information:  Full Arcata City Applications are available on the city website. The applications must include the following information:

• Applicant information: Applicant’s name, address, and business ownership type (ex: sole proprietor, partnership)
• Electronic Fingerprinting:  All business owners and any employees responsible for operational and/or management decisions for the business must submit fingerprints and other necessary information for a criminal background check required by the City of Arcata Police Department.  The City offers Live Scan fingerprinting services for the CCAP in their offices at a cost of $79 ($30 for City of Arcata, $17 FBI and $32 DOJ).  You can pick up a CCAP live scan form at the police department.  The hours of operation are 9-11:30am and 1-4pm Monday-Friday-you can also make appointments.  For additional information you can contact the police department at (707) 822-2428. 
• Location and Zoning Information:  All businesses must be in the City’s Medical Cannabis Innovation Zone (MCIZ).  MCIZ is comprised of Area 1 and 2.  Area 2 is limited to 20 permits.  You can find additional information on MCIZ in land use code 9.28.130.  The physical address, the contact information for the property owner, and assessor’s parcel number (please note, the minimum lot area on Assessor’s Parcel Number’s 507-081-043, 507-121-013, and 507081-050 shall be reduced to 10,000 square feet)

• Site information:  Applications must include distinguishable differences between existing and proposed improvements including floor, plumbing, mechanical, and electrical plans. to the interior and exterior of the building.  For example, building exterior information like signage height, color, and design should be included in your plans.  According to the City of Arcata’s Building and Planning division, the minimum the plans must include: 
  • (1) Show all fixtures, equipment and building improvements to be utilized for the cultivation, production and processing of medical cannabis;
  • (2) Meet California Code of Regulations Title 24 requirements; 
  • (3) Be reviewed and stamped by an engineer with the appropriate trades (mechanical, plumbing, electrical, etc) as required by the Building Official;
  •  (4) Provide an odor control system that will contain or eliminate associated odors.

Parking compliant with city regulations should be addressed in the site plan as well. 
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• The City has specific land use standards on cultivation outlined below:   
  • Cultivation area shall be limited to no more than 25 percent of the total building floor area per parcel.
  •  Cultivation area shall be no more than 4,000 square feet per lease area or business.
  • Limitations on cultivation area in section a. and b. above may be exceeded through the issuance of a Use Permit.
  • Each parcel shall have at least one independently accessible, occupancy ready, commercial space designed and designated for allowable uses in the base zone or :MMIZ combining zone that is 600 square feet or greater in size, and is not used for cannabis cultivation.  This space must be provided prior to receiving a Certificate of Occupancy for cultivation on a parcel. 

Step 3: Write Operational and logistical plans:  All applications are required to include a full outline regarding how your marijuana business will operate. The following items must be included in your plans:

• State license compliance plan: Starting January 2018, a license to operate a commercial cannabis business will be required. Once a state license is required, Commercial Medical Cannabis Permits will not be approved or renewed without evidence of required a state license.  For information regarding State Licensing, please visit the frequently asked questions on the State of California website: http://www.bmcr.ca.gov/about_us/faq.shtml. The City requires applicants to document the specific license type and the plan to meet the requirements for the state license before the state licensing is in effect.
• Daily operations:  A full description of the following information:
  • Proposed hours of operation (generally 8am-7pm, see permit for exceptions)
  • Odor control such as carbon filtration and ventilation systems (The city can revoke CCAP permits for multiple odor complaints)
  • Ensuring that the interior of your business is not visible to the general public
  • Labeling explaining the contents of your product (tip:  include dosage, THC content and that it is for medical purposes)

Other information including proposed activities, average amount of production and source of cannabis must be included in the operations plan. 

• Waste disposal plan: Waste disposal plan including reduced solid and green waste as well as light bulb recycling policy.
• Sustainability plan:  Calculate the expected electricity use and greenhouse emissions gas with a plan for best practices for energy efficiency.   
• Water infrastructure plan: Identify the expected water source and the level of water use in gallons per day. 
• Security plan: On-site 24 hours/7 days security measures including the proper disposal of cannabis to prevent unlawful use. Below are some tips to secure your CCAP business:
  • Hire a security company with experience and knowledge of the cannabis space. If you cannot find a firm that has experience in the cannabis space use a firm with experience in the banking industry.  The security needs of cannabis and banking businesses are similar.  Just be sure they understand any local, state and federal regulations to maintain compliance.
  • Protect your product as a bank would protect cash and other valuables.  Vaults, safes and alarm systems are excellent ways of protecting your product from theft.  In the case of alarms, it is important to change the codes frequently to reduce the opportunity for an “inside job”.  
  • Purchase the best monitoring system that can adapt as local, state and federal laws change. Cameras should be visible and located in areas covering the whole facility.  This includes the exterior, specifically any doors or windows.    
  • Limit opportunities for employee theft by creating an environment of trust and honesty. Employee training and clearly defining expectations and policies in the beginning is very important to deter theft.  Cash and product policies and procedures should allow you to detect loss and identify the responsible part early. A clearly defined whistle-blower policy can be an effective theft deterrent.  Be sure that the policy includes a confidential way of notifying managing to theft concerns. 
  • Hire security guards as an additional tool to monitor your business. When hiring a guard consider if you they will be armed.   
  • Go beyond the minimum requirement.  It is important that you ensure that maintain a secure environment for your staff and assets.  Implementing systems that go beyond the minimum security requirements can save you headaches in the long run and deter theft.   

Security breaches required to addressed as part of the security plan.  The Arcata Police Department must be notified within 24 hours of noticing a security breach.  In section 6.f of Exhibit A Resolution 167-29, the City defines the following as security breaches:
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1. Diversion, theft, loss, or any criminal activity involving the cannabis or any agent or employee of the permittee. 
2. The loss or unauthorized alteration of records related to Cannabis, registered qualifying patients, primary caregivers, or employees or agents. 
3. Significant discrepancies identified during inventory. 
4. Any other breach of security.

• Inventory tracking plan:  All permit holders must be trained and use BioTrackTHC, the city approved inventory tracking company, to maintain records.  Applications must include names of the system administrator and account users.  The system administrator must stay current on the software.  Ongoing training of the software is recommended for all users as well as the system administrator.

Step 4: Submit Application to Initiate the Approval Process:

• All applications must be signed by the business and property owners. 
• Hard and electronic (ex: CD or flash drive) copies of the application must be hand delivered to the front counter of the Building Division and Planning Division. 
• All applicable application fees must be paid. The cost of a CCAP application is $6,500 ($2,500 for the application and $4,000 for operations).  Costs can increase to include additional fees like zoning clearance and building permits. These additional fees are determined by your project. Please see the chart below for all fees. 
• All applications are reviewed by the following departments or divisions: Building, Engineering, Environmental Services, Finance, Planning, and Police.  Each department will focus on specific portions of the application.  For example, the Environmental Services department will be interested in the waste diversion plan, while Police Department will be interested in security plan.
• The process requires the additional information:
  • A state of California’s Certificate of Good Standing for the business owner
  • List of the business owners including the percentage of ownership
  • City if Arcata License
  • State Seller’s Permit for dispensaries
• Please contact Edie Rosen at (707) 825-2137 should you have any questions about the status of your application.