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US (CA): Banning takes a step towards accepting cannabis microbusinesses

Last November as a couple of outgoing members were finishing up their terms, Banning’s city council requested its staff to see what it would take to allow microbusinesses in the city. Cannabis microbusinesses, specifically, are boutique businesses that provide cultivation, distribution and retail all under one roof, whereas the current three permitted cannabis retailers can only have storefronts. Such microbusinesses are allowed under state law, but there is nothing in Banning’s cannabis ordinance that allows them.

They amount to about a third of such permits issued in the state, according to Mark Teague, an adviser with Sacramento-based planning consultant Placeworks, who provided a virtual presentation on the subject for a workshop prior to the March 23 city council’s meeting. Teague explained that microbusinesses occupy retail space of no greater than 10,000 square feet.

In order for them to operate legally, a municipality has to adjust its zoning to include a definition for microbusinesses. He pointed out that Banning’s municipal code already allows for cannabis cultivation and sales, and though it does not currently specify “microbusiness,” Teague claimed “It is allowed within your code.”

Mayor Pro Tem Dave Happe was curious as to whether large buildings such as the former Kmart building could accommodate a microbusiness. City Manager Doug Schulze told Happe “In order to set up cultivation operation in a building, there’s an extensive process they go through to ensure mold and bacteria is removed from a building, which can require pretty much rebuilding the inside along with improving HVAC — it’s a pretty elaborate process. It’s not like you’re taking an old grocery store and just setting up racks and growing areas. Typically those buildings are quite large, so you’re probably looking at smaller retail operations, or splitting larger facilities that could potentially be attractive locations, but those can be 30, 40,000 square feet.”

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