The Williams City Council last week introduced an ordinance that could pave the way for retail cannabis storefronts and delivery services to operate within the city limits.
City officials said they hope to generate about $1.3 million in new revenue each year by allowing pot shops to sell legal, state-regulated marijuana – hopefully by catching motorists traveling up and down Interstate 5.
While Williams previously embraced cannabis cultivation and manufacturing after voters legalized the use of maijuana for recreational purposes in 2016, none of the large projects, such as the proposed Canna-Hub business park ever materialized.
However, City Administrator Frank Kennedy said he has spoken with two prospective business owners who believe a retail marijuana store or two would be very successful in Williams.
“Just one store in the right location could bring total sales of $18 to $20 million,” Kennedy said.
While the City Council waived the first reading of an ordinance that would permit and regulate retail cannabis stores and delivery services, city officials said they would still like to hear more from the public before finalizing a new ordinance.
The City Council will hold a public open house/workshop at 6 PM at City Hall on April 5 to pitch the idea to the public and answer questions about retail cannabis.
The ordinance, which largely mirrors other cities, will allow the city to collect 5 percent of the gross revenue from a store’s marijuana sales, along with 1.5 percent in sales tax.
“If retail sales reached $20 million, the city would raise $1.3 million in revenue,” said Kennedy, although skeptical to some degree of that level of success.
The ordinance, if the City County approves it at their April 12 meeting, would take effect 30 days later.
Kennedy said the ordinance is just the first step in a lengthy process that will give the city latitude in selecting just the right businesses.
Developer agreements, store locations (zoning), and limitations on the number of cannabis businesses allowed would first be taken to the Planning Commission.
Williams officials said cannabis growers have made promises in the past that cities can get rich off of the legal market, although home grows and illegal cannabis trafficking have drastically cut into the legal market statewide.
However, if one retail store makes the city half the revenue expected, it would more than make up for the revenue missed out because of the failure of Measure C, which would have added a half-cent to the sales taxes citywide if it had passed, Kennedy said.
“We know these are not easy decisions; we don’t want to sell our soul,” he added.
Kennedy said the ordinance is sound, calling for prospective businesses owners to first talk to the police department.
There was no opposition from the public, and turnout for the March 15 meeting was lower than usual.
Councelman Roberto Mendoza and Alfred Sellers were the dissenters in the 3-2 decision.
Mendoza said he made promises when the city agreed to allow cultivation that he would never vote for retail cannabis.
“I said that during my campaign,” Mendoza said. “People said no (retail) cannabis in town and I said no cannabis in town. I’m not going to agree to it.”
Sellers, a drug counselor, said he believes open pot shops would have a bad influence on Williams youth and young adults, voting no until he could hear more from the public.
“When we tried to pass this (cultivation and manufacturing) before, the public came in here and were adamantly opposed to dispensaries,” Sellers said. “They made it quite clear. They said no, no, no…If they want it, fine. We work for the will of the people…but there is a lot to be considered here.”
Those in favor of introducing the ordinance, Mayor Don Parsons, Maria Leyva, and Kate Dunlap, said allowing retail cannabis is no different than allowing any other legal industry.
Parson and Leyva said she hopes a legal option will cut down on the use of illegally-sold marijuana, which is now more dangerous because it is being laced with fentanyl to make it more addictive to ensure repeat customers.
Parson agreed for similar reasons.
“As far as the legalization of marijuana, it is over and done with; end of discussion,” Parsons said. “We, as the council, can’t change that. We can’t change that at all. But we can give people the options for things like quality – if they choose to.”
While the first reading of the ordinance passed, retail stores will not be allowed until 30 days after final adoption.
Officials said they would like to hear from the public and retail cannabis distributors to discuss what a retail pot shop would look like in Williams.
Kennedy said Williams police will enforce loitering laws and prohibit open, outdoor smoking of marijuana, which is not enforced in some towns that he has visited.
For the most part, city officials said the shops they have visited were well managed, secure, and safe.
The ordinance will cover both permitted retail cannabis stores and delivery services originating in the city. ■