Minimum guarantees built into community benefit agreements for three marijuana dispensaries opening in the coming months means the City of Manteca will harvest at least $1 million annually to boost the city’s general fund.
The actual amount beyond minimums the city will receive depends upon sales.
The odds are the city revenue will be significantly higher given the high use of storefront dispensaries in Tracy, a city of similar size and demographics as Manteca.
Late Sunday afternoon, the X1 dispensary that opened in the former In Shape Health Club in the 200 block of West 11th Street on the edge of downtown Tracy had a nearly full parking lot.
Inside, there was a line of 14 customers waiting in the queue while at least six dispensary employees were helping others buyers with their selection.
X1 is part of a group of nine regional dispensaries known as the Premiere Group.
Earlier, a drive by of the Embarc dispensary near the Tracy WinCo had a number of cars in a retail center where other businesses were closed.
Embarc is one of the three dispensaries opening in Manteca.
On Tuesday, the final community benefit agreement for Manteca dispensaries is before the City Council when they meet at 6 p.m.
Off the Charts Manteca’s agreement plus a condition use permit are on the agenda.
The dispensary will be located in a 4,500 square foot space that once housed Main Auto Repair at 2325 West Yosemite Avenue.
The small light industrial park Off the Charts wants to open in is just down the street from the city’s wastewater treatment plant.
The conditional use permit action by the council is basically to double check to make sure all requirements will be addressed.
Highlights of the Off the Charts (OTC) community benefit agreement are:
*OTC Manteca will commit no less than 9% of gross receipts to the City as a direct fee.
*The cannabis dispensary also agrees to commit no less than 1% of gross receipts to local non-profits, community-based organizations, civic organizations, social service organizations and other community and city needs.
*OTC Manteca agrees to a minimum commitment of $600,000 paid to the City annually if 9% of gross receipts all below such number.
*Providing Manteca Police with automatic License Plate Readers to allow the automatic scanning of vehicles in a bit to spot cars wanted in connection with a crime.
The CBA with Nectar Markets of California that is locating in a former physical therapy space at 1519 West Yosemite Ave. includes:
*Donating 1% of gross receipts to local non-profits, community-based organizations, civic organizations, and social services organizations.
*Making a 5% gross receipts contribution paid directly to the City of Manteca or the General Fund via the development agreement until such time that the City of Manteca implements a cannabis tax.
*If 6% of Nectar’s gross receipts falls below $250,000, Nectar shall commit to a total minimum community benefit of $250,000 each tax year. The minimum community benefit contribution will be allocated at 1% of $250,000 to community-based organizations and 5% to the City of Manteca.
*Purchasing automated license plate readers.
The CBA Embarc Manteca that is locating in strip center space behind Dairy Queen at 1140-1142 South Main St. includes:
*Allocating 1% of all cannabis sales to a Community Investment Fund in perpetuity to provide ongoing funding for community organizations. . Key initiatives of the effort will include, without limitation: enriching and empowering youths, supporting healthy and stable households, and creating and maintaining a family friendly environment in the community.
*Remitting 6% of gross receipts as a direct fee to the City.
*Purchasing automated license plate readers.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
