2026 Special Meeting - City Council / Lincoln Redevelopment Successor Agency / Lincoln Public Financing Authority - Work Study Session

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[0:04] Speaker 3 (logitech): study session, september 1st, 2026.
[0:08] logitech: ears… oh, next door.
[0:12] logitech: thank you, good evening, welcome to the city of wisconsin.
[0:15] logitech: special meeting from city council. Tonight's meeting will be.
[0:19] speaker 1 (logitech): televised and available on google channel 18, youtube, and zoom. Those wishing to address city council will be followed up on at the appropriate time. Those who submitted a speaker card will be called first. No speaker cards tonight, followed by those in the audience, and finally those attending from zoom.
[0:35] speaker 1 (logitech): for those participating through zoom that wish to provide public comment, please use the raise your hand feature, or press star 9 if you are calling in.
[0:45] speaker 1 (logitech): very good, thank you very much, and I would call the roll, please.
[0:48] speaker 1 (logitech): thank you. Councilmember andrea? Present. Councilmember reedy?
[0:53] speaker 1 (logitech): not here for the moment, en route, okay. Councilmember brown? Here. Mayor pro tem eklund? En route. En route. Perfect. And mayor pearl? Here.
[1:02] speaker 1 (logitech): thank you very much. Jason, would you listen…
[1:10] logitech: I pledge allegiance to the flag.
[1:12] speaker 2 (logitech): of the united states of america, and to the republic for which it stands, one nation, under god, indivisible, with liberty.
[1:21] logitech: interest or something like that.
[1:23] speaker 2 (logitech): thank you very much.
[1:25] logitech: I don't search for anything.
[1:27] logitech: okay, perfect time. Go ahead and redo the pledge?
[1:34] logitech: have them stand there, do it by themselves. Very good. Public comment on non-agenda item?
[1:40] speaker 2 (logitech): within the subject matter jurisdiction. Council speaker's time will be limited to 3 minutes, unless extended by the mayor. All comments and questions should be addressed to the mayor, and in most cases, the city council is prohibited from discussing.
[1:50] speaker 3 (logitech): or taking.
[1:52] speaker 3 (logitech): action on any item not appearing on the posted agenda may engage in brief discussion, provide direct city staff, or schedule items for future meetings. All right. We have thoughts? Anyone?
[2:05] speaker 3 (logitech): speakers.
[2:06] speaker 1 (logitech): we do not have speaker cards tonight. Is there anyone in the audience that would like to provide public comment?
[2:13] speaker 1 (logitech): see no one. Switching over to zoom, if there's anyone on zoom that would like to provide public comment, please raise your hand.
[2:21] speaker 1 (logitech): I see no hands raised.
[2:24] speaker 3 (logitech): thank you very much. In that case, we'll move on to item 5, discussions of retail and industrial cannabis land use.
[2:31] speaker 3 (logitech): this is the city manager. Thank you very much, mayor. Good afternoon, city council. So,
[2:37] speaker 3 (logitech): we have a slide deck for you.
[2:39] speaker 2 (logitech): and, maybe a couple little housekeeping items.
[2:44] speaker 3 (logitech): before we get started into the mute.
[2:46] speaker 2 (logitech): of this. So, first off, just so it's in the record.
[2:50] speaker 3 (logitech): in late june, city council had a strategic planning session, and established a number of ongoing.
[2:55] speaker 4 (logitech): and new priorities to focus for our upcoming work year.
[2:59] speaker 4 (logitech): which we're a few months into now. And, one of the items that was added to the priority list was the exploration of additional revenue generation, including, but not necessarily limited to, exploration of a program to zone for a permit, and regulate retail and wholesale cannabis activities in lincoln.
[3:18] speaker 4 (logitech): so I'm gonna go through a bunch… there's quite a bit to discuss today, and a lot to think about. You may not cover it all, and that's okay. One other little tidbit that,
[3:30] speaker 4 (logitech): it's a little strange about this, is…
[3:35] speaker 4 (logitech): a few of us here, doug and myself and hope.
[3:39] speaker 4 (logitech): I think I'm safe to say that none of the three of us, when we got into our very different careers, thought that we would be working on cannabis in our careers, and all three of us have spent significant time periods of our careers working on cannabis programs.
[3:52] speaker 4 (logitech): so, although, like I said, it wasn't really something that I, ever thought was gonna come up, for… really since about…
[4:02] speaker 4 (logitech): the mid-teens. It's been an issue, or a concept, or a prohibition, or an accepting community.
[4:11] speaker 4 (logitech): sort of over and over and over again during all those years. So I wouldn't say that we're necessarily, like, the full subject matter experts, but I think the three of us, we've probably administered every version of program that, you're going to discuss today at some point.
[4:26] speaker 4 (logitech): so, maybe we'll go with the deck here.
[4:29] speaker 4 (logitech): and… oof.
[4:31] speaker 4 (logitech): I know. That angle. Okay, so I'm gonna cover some of this, doug's gonna cover some of it as well. We're gonna talk about…
[4:45] speaker 4 (logitech): how… a little bit of the history of how we're here today, regulatory environment, we're here at a state and federal level.
[4:52] speaker 4 (logitech): we're gonna talk about revenue, which is,
[4:55] speaker 4 (logitech): it was, for a long time, the sole reason that most communities even considered this. Business and operator selection, if you work at staps or program, how does that work? City operating regulations, and then,
[5:08] speaker 4 (logitech): hopefully, some direction from somebody else will work together.
[5:12] speaker 4 (logitech): so…
[5:14] speaker 4 (logitech): you could go back, actually, prior to the 2017 recreational, legislation, all the way back to 96, and up to 15 passes.
[5:27] speaker 4 (logitech): it's called the compassionate use act, and essentially, this was the medical marijuana bill. And, you may recall that there was a period of time in california from about 97 through…
[5:39] speaker 4 (logitech): oh, probably early, now, probably through about 2017, where, people could go to a physician and receive a, essentially a prescription, a card to, get cannabis for, for medical, use. And for a really long time in california,
[5:59] speaker 4 (logitech): there were… there were medical dispensaries that kind of operated in the gray area of the lot. Local land use, some places permitted them, many places they just kind of popped up. This happened in sacramento, actually, quite a bit in the late 90s and early 2000s.
[6:15] speaker 4 (logitech): where they were kind of businesses that were allowed to operate and ignored otherwise. That tightens up a lot during the, like, late 2000, you know, 00s.
[6:26] speaker 4 (logitech): and then into the teens, cities start to really look at it as an economic development driver and a retail, possibility.
[6:34] speaker 4 (logitech): fast forward to 2017, the, ballot initiative passes in that year that, basically sets up the framework for a medicinal and a recreational adult use regulation.
[6:51] speaker 4 (logitech): department of cannabis control is, was, at that time, was referred to as the bureau of cannabis control, was a… the state agency that was responsible for licensing, and… and regulation at a… at a business level.
[7:04] speaker 4 (logitech): one of the cool things that the 2017 law did, that the league fought for, was it, it,
[7:12] speaker 4 (logitech): it would have been possible for the state to just say, hey, we view this as a normal retail activity, and cities will treat it as such. The league lobbied pretty heavily to retain local control on a jurisdictional level, to make sure that cities had a choice about whether they wanted this type of use in their community or not.
[7:31] speaker 4 (logitech): things have changed since that time. There have been, have been a few different trailers that have tightened regulations on operators.
[7:40] speaker 4 (logitech): there's… there's been… the department of cannabis control has grown as an organization. They have enforcement agents now, they have, what they call seed sale, where they track every single plant from its…
[7:54] speaker 4 (logitech): beginnings to its harvest. They, have very strict rules about how things are packaged and the safety,
[8:06] speaker 4 (logitech): tops that we have on any of the…
[8:08] speaker 4 (logitech): things you may purchase, primarily to try to limit it from children.
[8:14] speaker 4 (logitech): and… but essentially what we have now in california is a dual licensing system. So if you want to start a business in california that's cannabis-related on any level, you gotta get a series of state licenses, and then you have to get local approval.
[8:27] speaker 4 (logitech): which is really what we're here to talk about today.
[8:32] speaker 4 (logitech): so, as I mentioned, broad local authority. If you're interested, I was curious, because it's always changing.
[8:41] speaker 4 (logitech): but in california at the moment, this is not an exact figure, but it's close, there's roughly 486 cities in california. Of those, 300 are still… it's still prohibited inside their jurisdiction. So about a little more than one-third now have some allowances.
[8:59] speaker 4 (logitech): you see that primarily in the central valley south of about merced. From about merced down to, essentially, the inland empire, it's a…
[9:09] speaker 4 (logitech): cannabis desert. North of here, you'd think that would be similar, but actually there's a number of allowances as you go north county and up. And then there's some communities that, are coastal in nature that have kind of stayed away from the time being, and it's… but it seems to change, every year.
[9:29] speaker 4 (logitech): yeah, so go ahead. So on this one, one thing that's kind of interesting is, so, when the state was going to.
[9:35] speaker 5 (logitech): through when they were creating what has evolved now into the department of cannabis control.
[9:40] speaker 5 (logitech): they took an interpretation of prop 60, prop 64, which basically was trying to take away, any kind of local control. So what they were basically saying is, let's say that you got licensed in oakland, then you could deliver to any community in the state in that community, because it had… it had…
[10:00] speaker 5 (logitech): an official license in oakland, every city was being charged with having to recognize that. So our firm actually took the lead in litigation and brought together, I think it was
[10:14] speaker 5 (logitech): 30 different, cities and counties sued the state, and got the state… so it never got to trial, because they mooted it out, because they came back with an interpretation that actually preserved local control, which was a big… which was a big, big…
[10:30] speaker 5 (logitech): and said that, no, there's self-determination with each city, and things… and with each local jurisdiction, recognizing the language that was in the local control measure that was in prop 64, that was somewhat key to its passage and how they sold it to the jurisdictions.
[10:46] speaker 5 (logitech): which is why even, like, folks who are decorative into communities, they're supposed to have business licenses, even if they have a… let's say we allow it.
[10:56] speaker 5 (logitech): you're still supposed to have a business license in a place that you're selling, just like I have to have a business license when I provide legal services in lincoln. So, this would be important, it kind of factors into the discussion, but, but local control
[11:11] speaker 5 (logitech): the state was forced to recognize local control kind of hesitantly, but it remains in a very effective sense today.
[11:19] speaker 4 (logitech): it actually operates, if you think about it, it's a more…
[11:23] speaker 4 (logitech): intensive process, but it's very similar to how abc licenses work today, where, I don't know, zach may do this now, but…
[11:33] speaker 4 (logitech): either myself or the chief sign off on an abc license, whether it be just for an event or for a bar.
[11:40] speaker 4 (logitech): you can't get that license without one or both of our signatures. So it's the one way where the state and cities do actually work fairly well together, where they will not issue anything. It's kind of like, you know, sending off the torpedo. You both gotta turn the keys at the same time.
[11:57] speaker 4 (logitech): sean, did you say your, your stats, did you say 300… about 300?
[12:02] speaker 6 (logitech): 100 other cities don't allow, but if you look at all the numbers in california, about a third of them do have allowance? Yes. Okay.
[12:09] speaker 4 (logitech): 486 or so, what the internet tells me is that 300 or so have either not taken a position on them yet, or have outright prohibited them.
[12:21] speaker 3 (logitech): what's the difference, then, between outright fraction.
[12:24] speaker 5 (logitech): pivoting, and just not taking…
[12:28] speaker 4 (logitech): it's less now, and doug might be able to speak to this, because he works in more communities, but there used to be a time where you would have dispensaries that were sort of
[12:38] speaker 4 (logitech): viewed as retail, but not necessarily approved as cannabis. Like, so they operated in a pseudo-legal
[12:45] speaker 4 (logitech): spot where the city could shut them down, but they chose to sort of just
[12:50] speaker 4 (logitech): you know, essentially look the other way. Some communities are much more serious about it. It sort of depends on, we'll get into the… what's really important about this discussion is we're really going to be talking about three very distinct and different things. We're going to be talking about retail, which is one thing.
[13:08] speaker 4 (logitech): we're going to be talking about manufacturing, which is another, and… and then wholesale or distribution, which could be viewed as sort of,
[13:15] speaker 4 (logitech): and so some… the stats I'm giving you are retail-related. There are likely far more cities that have allowed manufacturing and other kind of pseudo-industrial uses, because they just view them differently.
[13:30] speaker 4 (logitech): and we'll get into that.
[13:33] speaker 5 (logitech): gonna address the question. So, like, one of our clients is city of newton.
[13:38] speaker 5 (logitech): it's prohibited. It's in the municipal code, it's a violation of the municipal code. There's penalties associated with delivering there.
[13:47] speaker 5 (logitech): you know, and there's no retail locations that are allowed… prohibited. Then there's places like angel's camp, right? So angel's camp, has taken more of a laissez-faire approach. They haven't prohibited, they haven't allowed it.
[14:00] speaker 5 (logitech): they're not preventing from people from doing it. Now, they would probably…
[14:04] speaker 5 (logitech): that has more to… and a lot of this is what we're going to talk about, is, like, your brick and mortars versus, like, delivery services. So they don't allow any brick and mortars to open up. That's what sean was hearkening back to, the medical marijuana, or medical cannabis days.
[14:19] speaker 5 (logitech): where people would just kind of, like, treat it like it was a smoke shop and pretend it's something that it's different. So, but today, when… when somebody… when we talk about taking place there, it's really just people allowing deliveries and…
[14:32] speaker 5 (logitech): not having ordinances on the books, and they just say it's fine, right? Unless you get pulled over because you're, you know, you have another issue. And then you have the third category, which is the groups who explicitly allow it, and then it's… and then there's the different categories of allowing it. And again, even in retail, again.
[14:49] speaker 5 (logitech): when you look at retail, well, we'll go over this, there's subcategories within it.
[14:53] speaker 5 (logitech): just to be clear, even though.
[14:55] speaker 3 (logitech): so, as an example, woodland prohibits.
[14:58] speaker 5 (logitech): retail establishment coming in. They can't stop their citizens from getting doordash to deliver it.
[15:04] speaker 5 (logitech): coming from a licensed place.
[15:06] speaker 5 (logitech): so no, they can… so technically, if they prohibit deliveries within the community, they can… they could technically do it. They couldn't prohibit somebody from going to a neighboring community.
[15:15] speaker 5 (logitech): acquiring it, and then bringing… and then bringing it into woodland and consuming it, right? But you could have a prohibition… you could have a prohibition on delivery. That was the whole case that we had against the bureau… except for medical, right?
[15:31] speaker 6 (logitech): which is what I just read on your screen, that sends them with medical delivery. Is that true?
[15:37] speaker 6 (logitech): or… I thought I read that on your screen.
[15:40] speaker 5 (logitech): there's nuances to it, right? Like, so you can't prevent people from growing it, right? And you can't prevent access to it. So then it gets into some… now we get into the whole caretaker law, if you have a caretaker going to pick it up, and then is the person delivering it your caretaker, or…
[15:58] speaker 5 (logitech): again, this gets really nuanced and stuff like that. Let's just say if it's medical cannabis, there's ways to get access to it through delivery that the city wouldn't be able to prohibit, but… but you have to have… in order for that person to be legally compliant, they have to have certain paperwork filled out, they have to carry that paperwork with them.
[16:14] speaker 4 (logitech): it ends up being kind of… like, it's actually more of a practical issue than a legal one, right? Like, if we said… if I called zach tomorrow and said.
[16:22] speaker 4 (logitech): no… no marijuana delivery link in them.
[16:26] speaker 4 (logitech): he'd probably be like, okay, how am I supposed to tell who's doing that? Because it's not like they have 1-800-weed-for-you or whatever on the side of their truck. It's just people in normal vehicles, typically, a lot doordash, a lot, you know, any of these other kinds of things. And so, you know, the amount of delivery traffic we have, whether it be in amazon carriers, or doordash or any of the other things.
[16:50] speaker 4 (logitech): it's practically impossible, I would say.
[16:55] speaker 4 (logitech): and, you know, zach would probably also say, hey, we actually have some serious offenses we'd like to enforce today, so… so that… so, in general, there are some cities that take a pretty hard line on that, but is it… is it practically enforceable? Not… not really.
[17:14] speaker 4 (logitech): so,
[17:16] speaker 4 (logitech): why? That's really an answer, or a question for you to answer. One of the things I put in the report that I thought might help frame your discussion, which is kind of this idea I've been having about policy, that, like, when you're thinking about something.
[17:31] speaker 4 (logitech): think about the… what's the problem we're trying to solve, if there is one. And so, some other communities frame it this way. It could be about consumer access. You might be a free market person and just say, hey, I think people should have access to things that are illegal in california, and
[17:49] speaker 4 (logitech): and we want to be part of that free market, and have our residents accessing what they want here versus elsewhere. Revenue was the driving force for the first number of years, no question. It was…
[18:04] speaker 4 (logitech): it was the wild west for a while, and there were tremendous opportunities and revenue sharing agreements in those days, where essentially the, the industry was.
[18:17] speaker 4 (logitech): I don't think this sounds right, but, like, essentially buying their way into communities on some level.
[18:23] speaker 4 (logitech): and by that, I mean… and you saw all kinds of crazy agreements. We've seen things… we've seen tax rates as high as 10%, just on a local level, not including excise tax and all the other things.
[18:33] speaker 4 (logitech): and then you have other models where it was percent of revenues, it was, you know.
[18:40] speaker 4 (logitech): based on the amount sold,
[18:45] speaker 4 (logitech): and that doesn't just mean retail, it also expanded to the other uses.
[18:51] speaker 4 (logitech): so some communities decided to use that as a way to plug significant deficits. Some communities, for example, where I came from, we decided to use it, much like we used the arpa funds.
[19:02] speaker 4 (logitech): the concept was only for stuff we can't otherwise afford. We're not going to use this to run our business off of, this is to well-love the community.
[19:13] speaker 4 (logitech): economic development has increasingly become a thing as this… the industry started off with a lot of what I would call independent folks that had an idea and wanted to start a business. What's happened as it's become a real serious industry is corporations
[19:28] speaker 4 (logitech): large alcohol companies, corporate entities that are even listed on the stock exchange were starting to buy up and corporatize, essentially, the industry. I haven't followed it since I've come to lincoln, because we haven't really been involved in that, but I assume that's only increased over time.
[19:47] speaker 4 (logitech): probably thousands of small businesses has probably shrunk down to hundreds of large media businesses.
[19:53] speaker 5 (logitech): can I expand on that? Please, yes. So, one of the things that has come in is… so we'll talk about vertical integration, right? So that's when, you know, one company controls basically almost all of the levels. So the retail is how you get access to
[20:08] speaker 5 (logitech): you know, somebody who wants to buy, whether it's a medical patient or whether or not it's a recreational person.
[20:16] speaker 5 (logitech): and from there, you have two different channels, you know, through delivery or through the brick and mortar, right?
[20:22] speaker 5 (logitech): so… so what you sell, the score becomes… so if you control.
[20:28] speaker 5 (logitech): cultivation, so how things are grown. So if you cultivate it.
[20:32] speaker 5 (logitech): and then you process it, so that's your distribution, right? And then, you know, and then you manufacture it, that's the people who make, like, the oils of the vapes, you know, the equivalent of cannabis vapes.
[20:44] speaker 5 (logitech): and other, other products that, that are plant-based.
[20:48] speaker 5 (logitech): and then you sell it all in your store, and everything else you're selling in your store. Randy cookies is a really famous ranch. Snoop dogg or somebody's like…
[20:58] speaker 5 (logitech): and so you'll have brands around the stores in terms of, hey, we sell only, like, cookies and processed foods and stuff like that.
[21:09] speaker 5 (logitech): and so… and so what it has done is people… started off, you had a lot of people who were in the black market who were trying to convert over to the legal market. It has pushed those people out. Percentage of those people, and it's not a small percentage, because of taxes, have gone back to the… to the black market. And part of it is, some of these folks just weren't
[21:31] speaker 5 (logitech): suited… well-suited to being business people, and all the regulatory compliance issues and things that came up, or it was just a better business model for them for a lot of reasons.
[21:41] speaker 5 (logitech): and so… and so what sean's alluding to is because of that, and because of the investment that's come from it, even through, like, hedge funds that will open up specific funds to kind of invest in cannabis, you'll see large-scale investments in it that
[21:56] speaker 5 (logitech): like a mom and pop couldn't keep… compete with, so it's like when blackrock tries to come in and buy a home.
[22:02] speaker 5 (logitech): right? They're offering all cash, they're offering 20% of upmarket sometimes, and then they'll buy up a neighborhood, and then they'll sell a quarter of the neighborhood and twice the value to their… to another fund that they own, and it drives up the price of the homes, and then soon people can't afford it, and everybody's…
[22:20] speaker 5 (logitech): so it's not… that's not unsimilar to what happens to the business when the big boys come in with more money than can do. They'll buy out.
[22:27] speaker 5 (logitech): the people who engine it, right? Or convert them into employees, have them work with them if they make good product.
[22:32] speaker 5 (logitech): and then it gets all consolidated, so you're seeing a market consolidation right now.
[22:37] speaker 4 (logitech): so, the other, thoughts, as you're kind of thinking through, so we went through consumer access, revenue, and economic development, and there was a time, although I think the argument's less valid today.
[22:50] speaker 4 (logitech): where cities were really considering this as a way to address some public health and safety concerns about the black market, so there was this kind of free market concept that, you know, you could go all the way back to prohibition with, I suppose, where is it better, if folks are going to participate in this activity, is it better to have it regulated and…
[23:10] speaker 4 (logitech): monitored, versus the alternative on the black market side. As doug mentioned,
[23:16] speaker 4 (logitech): I'm not sure that that has worked out the way that they thought it was going to, because it's different than beer or liquor, right? It's not easy to make those things.
[23:25] speaker 4 (logitech): you have to know how to do stuff. If you know how to plant a plant and generally keep it, you know, watered and in the right environment, you're probably going to have a yield. And fun fact, in california, although we can prohibit almost everything else, what we cannot prohibit is, I think under our code.
[23:44] speaker 4 (logitech): in california, you can grow your own, I forget the number of plants, 6, 6, as long as it's in an enclosed structure, and there's some small permitting authority that you have to get. And then the last one is local control, which is just, you know, this kind of bedrock concept of, you know.
[24:02] speaker 4 (logitech): in other communities that have considered this, the question they've asked themselves is.
[24:08] speaker 4 (logitech): when is the, legislative landscape gonna change where we lose that control and it just happens? And wouldn't you like to make sure that you've defined what's okay here first, before… you saw this with massage parlors years and years ago, where…
[24:24] speaker 4 (logitech): massage parlors used to be super highly regulated during the schwarzenegger administration. The camt got to… lobby got to him, I think, or at least lobbied for a change, and there was a law passed that basically said cities, you can't shoot… you can't…
[24:39] speaker 4 (logitech): treat a massage establishment any different than a hair salon, or a nail salon, or aesthetician, or anything like that. It's the same personal service in their mind. So what did you see?
[24:49] speaker 4 (logitech): overnight, in certain communities, hundreds of these places open up its trip halls, right? So that's one other consideration, as to what kind of problems we face.
[25:00] speaker 5 (logitech): just add one more on there, too? Yeah, yeah. So, I mean, one of the biggest things is to basically have a record of who's
[25:06] speaker 5 (logitech): involved in the industry and your community. It's never going to be 100%, but it can be better than zero, right? And so, I think that has the potential of helping… like, in the cities that I work in, law enforcement likes to know who's licensed to be not licensed, so that they know across it, they know what to expect.
[25:22] speaker 5 (logitech): so there is some value in just in the knowledge and being able to separate out people who are trying to do it legally versus people who potentially aren't.
[25:31] speaker 5 (logitech): I have a quick question. I missed the, the connector between.
[25:38] speaker 1 (logitech): I mean, if we… if we did this, and then, like, with a massage.
[25:44] logitech: analogy, how does…
[25:46] speaker 7 (logitech): just do it ahead of time? Prevent…
[25:49] speaker 7 (logitech): when it's changed, or the regulations change, that everything comes in?
[25:53] speaker 4 (logitech): it doesn't necessarily prevent it, but if you already have an established market in your community, then it's already established versus… it's more of, like, a need. The door is open, and you have no control.
[26:04] speaker 5 (logitech): can I add to this? So, sb330 is a law that passed in 2018. It's in the development world, and it's about, you know, basically limitations that you can put on housing.
[26:16] speaker 5 (logitech): on new housing development. The rule was that if you had a law in the books like davis did, that you would have to go to any kind of development.
[26:25] speaker 5 (logitech): it has to go to voter… voter and voter approval. Since it existed before 2018,
[26:31] speaker 5 (logitech): it could stay on the books, right?
[26:34] speaker 5 (logitech): but after 218, you couldn't add anything. So, laws take effect in two different ways. Sometimes they recognize and grandfather in rules that were in place. So, if you have some rules in place.
[26:47] speaker 5 (logitech): then you might get grandfathered in, then sometimes they just obliterate them, and then… but everybody's playing in the same market at that point in time. But you'll have built-in… but you will have established rules in your… let's say you approved it, right? You'd have built-in retailers that have some market advantage, because they have not been established at that point. Right, okay.
[27:05] speaker 7 (logitech): so…
[27:07] speaker 4 (logitech): this is an important slide, because I think that the… what people might generally think, and what I would have thought before I got into all this, was.
[27:17] speaker 4 (logitech): well, you know, council passes a…
[27:19] speaker 4 (logitech): go change, and it finds its way under our zoning book, and people come in and start a business. The end. There's a lot to it. So, if you want to exert the right kind of control, and most communities want to make sure that if they're going to make this work, it is something that they feel pretty strongly isn't going to…
[27:39] speaker 4 (logitech): blow up in their face later.
[27:42] speaker 4 (logitech): we always recommend that, and, you know, council's done this for a long time here, that anything that you do starts under a pilot format, where you're testing out these rules and making sure that it works, so the program can wind down and
[27:57] speaker 4 (logitech): no longer be in place if it's not working, or if we have problems, it can be changed and amended easily so that you're not setting up something that may or may not work here. The program itself is… there's a lot to it, right? So, first steps would be developing an ordinance
[28:13] speaker 4 (logitech): we're gonna get into it later, but that ordinance is going to have to define the where, the how many, the what.
[28:21] speaker 4 (logitech): there will be application materials. We… doug and I have administered programs in the past where we're not talking about development application planning's used to, where, you know, it's… you fill out a couple pages and some plans, and we review it. This is deep. It's backgrounds on operators, it's pro formas, it's…
[28:40] speaker 4 (logitech): details of what you're gonna do, how you're gonna do it, where you're procuring it, how, you know, to the extent you're paying taxes or fees to us as a result of this, how are you paying those? In the early days, cannabis businesses didn't have banking.
[28:55] speaker 4 (logitech): they couldn't get into any fdic-insured bank for a really long time, so this was a cash operation. They would bring to cities, I mean, quite literally, hundreds of thousands of dollars in cash, and you'd have to figure out how you were going to, you know, 100 grand in cash is a lot of money, depending on the denomination.
[29:12] speaker 4 (logitech): so, all of that's included in, kind of, the program development. The entitlement is a whole other part, which falls more into nita's department, where this goes, you know, through… this is a pretty standard and typical use permit process, where
[29:25] speaker 4 (logitech): it'd be similar to a barg or any other kind of use that the community's gonna have interest in. You'll have that normal back and forth between the people that live in the area, different opinions for and I guess.
[29:37] speaker 4 (logitech): planning commission has to… has to rule on those.
[29:40] speaker 4 (logitech): ongoing administration, so…
[29:42] speaker 4 (logitech): inspections, compliance. The state takes care of a lot of the inside-the-building compliance. Ours is typically related to any kind of problems that may exist outside.
[29:53] speaker 4 (logitech): or, as we were talking about before the meeting, you know, some of… that doesn't happen very often because this is so highly regulated, and they have to spend so much money to get out of the ground, but you do periodically have bad actors that sell more than just cannabis, like we've had in some of our smoke shops recently.
[30:13] speaker 4 (logitech): specialized consultants, so, like, you know, obviously, the key issues that are brought up during the land use process are security, you know, is this going to cause additional crime issues in the area? We can…
[30:25] speaker 4 (logitech): get into this later as you explore more, but we… I have generally found that I have not seen…
[30:32] speaker 4 (logitech): significant changes depending on siting and the quality of the operator in terms of just spillover crime problems, like you'd have in a bar. Bar is, like.
[30:41] speaker 4 (logitech): way worse, typically.
[30:44] speaker 4 (logitech): because most of these places, remember, you're showing up, you're buying whatever you're getting, and you're going home, or you're going wherever you're going.
[30:50] speaker 5 (logitech): and they typically have a car. Right.
[30:52] speaker 4 (logitech): odor.
[30:54] speaker 4 (logitech): it's one that always is a big deal. That's kind of material, like, changed over time. There's all kinds of technologies they use now, carbon filters and others, to limit that, but that's a common problem. And then extraction safety review.
[31:10] speaker 4 (logitech): enforcement, so you have investigations if you have bad actors, you have administrative processes for hearings about revocation of
[31:19] speaker 4 (logitech): licenses, and then, of course, lawsuits, either the financial component of it, or them not acting the way that they should. Sean, what is an extraction safety review?
[31:30] speaker 4 (logitech): well, speaking.
[31:31] speaker 5 (logitech): yeah, so it's typically in the manufacturing process, so the process, I mean, they may have different machines now, because I haven't looked at it in a couple years, but it's very similar to how you extract olive oil. Okay.
[31:43] speaker 5 (logitech): but, depending on what technology you're using, some will use gas. So buyer's really involved in making sure that what you're gonna do is not gonna blow up.
[31:53] speaker 4 (logitech): butane in many of those kind of oil extractions, and so there's concern sometimes that, you know, it lights up, and it does. Not in a fun way.
[32:04] speaker 5 (logitech): the litigation component, typically… so we'll get into this a little bit more, but it's typically people who quit paying.
[32:12] speaker 5 (logitech): right, they're struggling, they get behind in what they owe the city.
[32:17] speaker 4 (logitech): what's happening for a long time is that businesses were coming in, and they were agreeing to, I think, objectively absurd agreements with cities, and…
[32:27] speaker 5 (logitech): some of us might just have been good negotiators.
[32:30] speaker 4 (logitech): it only works if we get paid, though. But to that end,
[32:38] speaker 4 (logitech): what's changed is a lot. A lot has changed. What used to be, sort of tell us what you want when you do it has really changed over time, because… gotta remember, like, 10 years, less than 10 years ago, there was maybe
[32:52] speaker 4 (logitech): 25 cities in california that had considered this. Now, quite a bit more, and more every year, and so it's not as scarce a resource. Although, one interesting thing, and I didn't mention it, it's not in the slide deck, but interesting thing about placer county
[33:09] speaker 4 (logitech): and this isn't,
[33:11] speaker 4 (logitech): this is just what I've heard through the grapevine. There was a push at one time many years ago on the cultivation side of placer county, and my understanding is that the county at that time kind of took a…
[33:22] speaker 4 (logitech): no prohibition sort of perspective on that use, and this would have been many years ago. That sort of continues in placer county, not consciously, necessarily. So right now, there's one… there is one dispensary in placer county, it's in colfax. It's a small little house.
[33:39] speaker 4 (logitech): and, but other than that,
[33:44] speaker 4 (logitech): there's… there's nothing in our immediate geographic region, and the closest locations that you… that our residents would have to go to would be north sac county, probably.
[33:57] speaker 4 (logitech): but, what we've also learned
[34:00] speaker 4 (logitech): doug mentioned this, is that it's… your local taxation structure is one thing. There are so many add-on taxes at a state level that I think what happened was, for a while, the people that were going to these establishments were simply going to pay, because
[34:17] speaker 4 (logitech): where else are you going, right? And over time, as the market has become more competitive.
[34:22] speaker 4 (logitech): businesses that can't absorb all of that cost, or pass most of it on to their consumers, die. And so you've seen a constriction in sort of what, what,
[34:33] speaker 4 (logitech): revenue is available at the local level.
[34:36] speaker 4 (logitech): and then.
[34:37] speaker 5 (logitech): and that happens when… because I've had to enforce this, sometimes they'll sell to somebody else, and they won't have gone through the process, or you'll find out about the sell after the fact, and so then you have to go through the process of shutting them down. Yep.
[34:51] speaker 4 (logitech): so, this last bullet's really important, because,
[34:56] speaker 4 (logitech): you'd have to have… we'd have to have… if the council is interested, we'd have to have reasonable expectations about what kind of positivity from a revenue perspective you could get out of this. I don't think it's inconsequential, I think it's pretty significant, just because the market here is so quiet.
[35:12] speaker 4 (logitech): but the bigger question you'll need to get to later, if you ever want to really seriously consider this, is what do you use that money for?
[35:20] speaker 4 (logitech): just dropping it as a general fund would not be recommended. What many places have done is they've upstaffed police departments, they've
[35:28] speaker 4 (logitech): funded, like, captain eaton has a special response team, they've done more of that, so try to address more community issues. Some of them poured money into, kind of, drug, education, communities I was part of, we, we would have recreation programs be essentially free for most of the community. Some value-add stuff like that.
[35:50] speaker 4 (logitech): so, doug's gonna speak to this, because this is really his world.
[35:55] speaker 5 (logitech): okay, so… when… I'm gonna… let's… maybe we should do…
[36:03] speaker 5 (logitech): can I go to the next slide? No, no, man, it's… I was… I'm gonna talk a little bit about the entitlements in order to kind of give a… a… don't go that. Yeah, maybe go the route. Just go to the… let's just go to the…
[36:15] speaker 4 (logitech): he went the wrong way. There you go.
[36:18] speaker 5 (logitech): so, just logistically speaking, for the revenues, you know, you could consider this a special revenue fund, so it's not…
[36:24] speaker 8 (logitech): going into the general fund, it goes into its place for a specific use. Yep.
[36:29] speaker 8 (logitech): yep.
[36:30] speaker 5 (logitech): I mean, the biggest mistake I will say, from a revenue standpoint that I've seen is folks who started paying ongoing salaries and use it to meet mou contracts.
[36:40] speaker 5 (logitech): because whenever there's a reduction, or when these guys
[36:44] speaker 5 (logitech): have a dip in business where they come in and say, we can't pay x amount, we have to pay a lesser amount, and you may agree that the market doesn't support them staying, you know, a higher amount, and you'd rather have them viable than go away.
[37:00] speaker 5 (logitech): then it just puts a lot of stress on your general fund. So it's… I think you treat pilot programs
[37:07] speaker 5 (logitech): as pilot programs, and then, you know, once you… once you… once five years has gone by, or something like that, then you can kind of reevaluate, but we do recommend, and my personal experience has been, you're best off using it for one-time expenses, or non-general fund expenses, and not just for yourself.
[37:25] speaker 6 (logitech): it's kind of like education and the lottery money. Instead of being just for extra stuff, like you said, school districts are already budgeting it. And then when it's not there, then they don't have it, and then, oh, where's our lottery money? Well… yeah, exactly.
[37:38] speaker 5 (logitech): yup.
[37:39] speaker 5 (logitech): so… so… I have done this…
[37:44] speaker 5 (logitech): somewhat differently than a lot of people.
[37:47] speaker 5 (logitech): I will say probably the most of the state knows copied what we did, so we were the first ones to ever put this program together.
[37:55] speaker 5 (logitech): it started… so idleton started off with just doing the development agreements, both the first ones, and they had a whole bunch of problems just with the development agreements, because
[38:05] speaker 5 (logitech): development agreements are not, you know, really designed for this use.
[38:11] speaker 5 (logitech): and the bigger problem with contracts is their contracts. If something goes wrong and somebody violates them, you've got to go litigate it, and litigation can take 2-3 years from right now. So you can be going through a litigation process.
[38:25] speaker 5 (logitech): that you, like, you have a bad operator, and their goal is to stall you out.
[38:30] speaker 5 (logitech): and 3 years, you have bad things going on in your community that you're having to deal with, and you can negate some stuff.
[38:36] speaker 5 (logitech): so it really started off in, like, oakland and berkeley, in parts of la. There wasn't a whole lot of, agreements or anything formalized, because that could be used as evidence in federal cases against them in prosecutions.
[38:51] speaker 5 (logitech): when ilden came around, they did the first development agreement, and then after that, we added the conditional use permit. And then, once you get to legitimizing it, the business permit just kind of comes in. So let's go through each of them. So, I look at cannabis in my way of protecting my clients and cities.
[39:08] speaker 5 (logitech): like an onion. So you peel back one, and there's another layer of protection that's underneath it, right?
[39:15] speaker 5 (logitech): so, so let's talk about why we use the different tools, why the different tools exist.
[39:20] speaker 5 (logitech): so I want to go to the development agreement, just because we've already kind of talked about it. The development agreement is the method in which I use to negotiate what we'll call public benefits amounts, because you can't really, like, do a classic tax, right? And so you negotiate. You're going to have this impact on the community that's unique.
[39:38] speaker 5 (logitech): and we're going to have to offset that impact if you want to do business here by giving back to the community in a particular way. So we're going to negotiate what we believe
[39:47] speaker 5 (logitech): that impact is. So if you think about it as land development, it's kind of mitigation, right? So mitigation of the impact. Because there will absolutely be
[39:55] speaker 5 (logitech): more, police involvement, there'll be more staff involvement, there's going to be time spent, and somehow, we're not in the business of losing money, particularly for businesses that you're not otherwise required to allow to operate, and so you've got to recapture that. And again, if you're going to allow something, we don't need to allow… part of the philosophy is it should add benefit to the community.
[40:15] speaker 5 (logitech): so we memorialize in the development agreements the public benefit amounts and things of that nature, and ultimately, what's not represented on this is we would probably recommend, if you want to have a program like this, you backstop it with a valid measure that allows you to tax up to 15%.
[40:30] speaker 5 (logitech): right? So what happens is, if anybody ever gets out of this development agreement, or they try to sue to invalidate it, then you, then you default.
[40:38] speaker 5 (logitech): into a 15% tax, and I'll… I'll talk about how the tax fits in later on with compliance.
[40:45] speaker 5 (logitech): so this is… so the development agreement is how we memorialize our arrangement, right? But again, there's complications with speedily being able to enforce it.
[40:56] speaker 5 (logitech): so, what can I do if I am a bad actor? That's where the conditional use permit comes in, and that's kind of what we added to the equation that a lot of cities have now adopted.
[41:04] speaker 5 (logitech): so, the conditional use permit, so you have two different approvals that you're required to have. If somebody now is not operating in a way that's lawful, or a way that they're allowed to do, consistent with our code, and with their agreement, it allows us to go in and pull their conditional use permit and to shut them down as quick as, like, 30 days.
[41:20] speaker 5 (logitech): there's absolutely a process that we still have to follow, but it's a public process. And even if they're in breach of contract, we have a remedy of getting somebody who's a bad operator to stop sooner rather than later.
[41:33] speaker 5 (logitech): because I can… as somebody who's had to enforce people who quit paying, for people who just decide to sell on the black market, for people who
[41:42] speaker 5 (logitech): lost their state license, you know, the state is still very slow in enforcing, and in fact, as you'll find out, they're gonna expect us to do all of the hard work. They're just gonna say, yeah, you're good to do it. So,
[41:57] speaker 5 (logitech): the conditional use permit is our vehicle to go in, shut them down, and then we can go through our legal mechanisms to be able to
[42:04] speaker 5 (logitech): to… to get them to quit operating if they don't comply with the replication of a conditional use permit.
[42:10] speaker 5 (logitech): and then, every business that does business in the city of lincoln is required to have a business license, and cannabis are no different, so… and we want to know who's operating here, and we want to know that they're in this lineup of work.
[42:25] speaker 5 (logitech): information is very helpful to police, at least in my experience, and so them knowing who's doing business here is really, really helpful.
[42:33] speaker 5 (logitech): and so that's how we get them registered. And that's where you'll have to look at, are you only going to issue licenses for people who have brick and mortars here, or are you allowing delivery? Which is another component of retail. And that will dictate who can get a license and who can't. Why is that important?
[42:53] speaker 5 (logitech): because you can get in big trouble and you can get fined if you start engaging in businesses in a city that you don't have a permit… business license to permit in.
[43:01] speaker 5 (logitech): so you can have elevated fine schedules for people who are, for instance, maybe… I mean, let's say that you decided that only folks who have brick and mortar in lincoln are able to deliver in lincoln. And let's say… while I think…
[43:14] speaker 5 (logitech): compliance is very difficult.
[43:17] speaker 5 (logitech): some cities have chosen to use part of the money to do stings, like, once a year or a couple times a year, or randomly, right? Maybe every three years.
[43:25] speaker 5 (logitech): and so you'll bring people in, and you can fine them not doing. So what happens? Everybody goes and gets a business license all of a sudden, because they hear in the community that, you know, somebody got a zap, and so the people who are delivering now go get business licenses, and you know who they're off.
[43:39] speaker 5 (logitech): who they are, and you can figure out whether or not they're legitimate or not. And the ones who don't are the black… are typically the black market operators that are, you know.
[43:50] speaker 5 (logitech): using counterfeit numbers and stuff like that to look like they're… that they're lawful operators.
[43:55] speaker 4 (logitech): I'm not.
[43:56] speaker 7 (logitech): would that potentially, or inadvertently.
[43:59] speaker 7 (logitech): increase success of the business in town, because you're kind of also eliminating some of their competition, and
[44:07] speaker 7 (logitech): and nasally enough to do better to maybe be more sustainable.
[44:11] speaker 5 (logitech): only if you're doing periodic stings. It's only effective in… I've only found it to be effective in cities that do periodic stings. Because people, particularly in the cannabis industry, we found… and some of it's an education aspect on their part, they're not really thinking about it, but once they see people get zapped, you know, if they go in… and business licenses are…
[44:31] speaker 5 (logitech): in the context of this, this is still very affordable. Yep.
[44:35] speaker 4 (logitech): and it really is a good analogy to use an abc license as a comparative, because
[44:42] speaker 4 (logitech): those are… much like those, these are such expensive licenses to receive from the state and require so much work and money. Losing them is really serious. We had an issue with the bar very close to here a couple years ago, and it was a big deal.
[45:00] speaker 4 (logitech): especially when, you know, an abc license on the open market is selling for $400,000 or $500,000 in some cases.
[45:06] speaker 5 (logitech): well, and the same applies here, because if somebody comes here and they get violated for not having a business license, and we report that to the bureau of cannabis control, it can jeopardize their license that they're delivering from.
[45:20] speaker 7 (logitech): to get more sales tax if the purchase is happening here in the delivery side. Correct.
[45:25] speaker 5 (logitech): well, you get to point-of-sale stuff, but yes. Right. Yeah. So the business license text is the most reliable when we talk about things that could potentially go away in the future. This is something that we'll never…
[45:34] speaker 5 (logitech): because it's still a discretionary act, there are ways to set the appropriate business license tax that's been there, but there's a lot of… it's not as straightforward as, we're just gonna have a business license tax. It's got… you really have to figure out who you're going to make it eligible for.
[45:49] speaker 5 (logitech): so that's the first thing. The most important thing is the public benefit fee, which is typically negotiated in the development agreement. And the backstop against that is about where a tax is approved. And again, the number we've used in every single city is 15%.
[46:06] speaker 5 (logitech): now, we've never had to invoke it, right? Because when you get the development agreement, it takes you… the public benefit fee exempts you from having to pay the default tax.
[46:18] speaker 5 (logitech): but what we also can potentially use it is the people who are delivering in the community who don't have a business license, who don't have a permit, who haven't paid the fee. You can potentially get them for tax evasion. You know, so,
[46:34] speaker 4 (logitech): and all this… all these products are also taxed at the normal sales tax rate, or whatever you have in your community.
[46:41] speaker 6 (logitech): just a quick reminder that we don't.
[46:43] speaker 8 (logitech): currently have a business license tax. We have a registration fee, so this would be an approved program.
[46:50] speaker 5 (logitech): I didn't think we did, yeah. And then cost recovery is, generally speaking, just like in land development, we make those who are trying to go through the process pay for the cost of the process, right? That's going to be less easy to pull off today than it was when we used to do it. So, for instance, one of the main ways originally that we went through is…
[47:10] speaker 5 (logitech): we would get so many… so I'll give you an example of the city of turlock, which we ran the program from. We ran a request for qualifications.
[47:18] speaker 5 (logitech): and to even apply and have us review your thing, you had to pay $25,000 non-refundable, because we were just trying to figure out a way to not have 200
[47:27] speaker 5 (logitech): applications to go through, and really get people who were serious, and we still got 28 to 30 that paid $25,000 for us to review and do our iq process. That process, I don't think could happen today.
[47:41] speaker 5 (logitech): so, but you could certainly make sure that the cost recovery for those who are approved, that they pay for it, just like plan development would, is part of it. But that's more of one-time cost recovery, as opposed to ongoing revenue.
[47:55] speaker 6 (logitech): I don't know if it was… zach, you might know this.
[47:59] speaker 6 (logitech): sacramento, or… I don't know, somewhere nearby, when this became a thing.
[48:04] speaker 6 (logitech): they opened it up for all these cannabis companies to go through the process, and they paid, like, thousands of dollars to apply, and then the county or the city, whichever it was, I forget, denied all of them, and they got to keep all that money. And I'm like, what a racket.
[48:21] speaker 5 (logitech): that was very early in the process.
[48:23] speaker 6 (logitech): so, to your point, like, you couldn't do that now, because now, but it's like, that's how… no, I mean… I mean, it's good, good work if you can get it, right? Like, to keep that going, but…
[48:34] speaker 5 (logitech): this is where you talk about, kind of, comparing, like, 2018 to 2026, or 2027. The landscape here has changed.
[48:43] speaker 6 (logitech): okay. Was that sacramento, zach, or was that… it wasn't the city. The city's been pretty much open arms to us since I'm gonna ask you questions about that in a minute.
[48:52] speaker 5 (logitech): it was accounting. So, that's what I thought.
[48:55] speaker 4 (logitech): back… back to types of business, and this will be something, when we stop talking here very shortly, you'll need to focus on a little bit, which is these various different types of things. Each one is unique and different.
[49:06] speaker 4 (logitech): some of them are very low impact. You know, if you go by most cultivation places, there's a lot of them in los angeles.
[49:13] speaker 4 (logitech): you don't have any idea what's going on in there. It just looks like a nondescript industrial building for all you, though. They could be making a widget of any kind.
[49:22] speaker 4 (logitech): that kind of… and these days, cultivation doesn't really exist very often, except for in rural areas outdoors. It's primarily hydroponic inside.
[49:32] speaker 4 (logitech): similar situation, you never… they don't want you to know what's going on in there.
[49:37] speaker 4 (logitech): and then, then there's these interesting businesses, which are not really related to the, supply chain in the same way. They're, they're, you know, there's rigorous testing requirements of labs.
[49:49] speaker 4 (logitech): those are interesting economic development opportunities, because they're usually high-paying jobs, and… and,
[49:55] speaker 4 (logitech): and typically, the entry point for kind of low-skill deployment is a higher dollar value for an entry-level person than it would be for other kinds of similar businesses.
[50:06] speaker 7 (logitech): falls under… this license agreement.
[50:12] speaker 4 (logitech): anything that the product's good touches, essentially.
[50:16] speaker 4 (logitech): so, as doug mentioned, mobile program is required.
[50:21] speaker 4 (logitech): we bear the cost and risk for enforcement, so the idea is that we're going to try to pass that cost on to anybody that may be interested.
[50:28] speaker 4 (logitech): we talked about the we love pilot program, we love them here at lincoln, because if they fail, we were just trying it out. If they are successful, then we just delete the word pilot.
[50:39] speaker 4 (logitech): and, and then, of course, you know, the way we design it, if you guys wanted to move forward, we design something that covers the cost of all of these
[50:49] speaker 4 (logitech): criteria here, entitlements, operating standards, and enforcement.
[50:53] speaker 4 (logitech): we talked about that.
[50:55] speaker 4 (logitech): doug touched on this, so there's a number of different ways that you regulate it.
[51:03] speaker 5 (logitech): but in each… I think the key there is you can start to get a sense of just how many decisions you actually have to make. It's not just, like, we're going to allow it. It's like, okay, what does enforcement look like?
[51:15] speaker 4 (logitech): and then, this is the last slide, which is kind of just a start for your discussion. So do you want us to continue on this path and start to frame some things for you to actually review, I.e. Standards, codes, etc?
[51:33] speaker 4 (logitech): should we preserve the option of a tax measure for a future ballot down the road? What business types have interested? And the most important thing, especially on a pilot program, in my… our kind of joint recommendation would be that you're really careful about limiting the number.
[51:49] speaker 4 (logitech): so, you know, I don't think there's any kind of theory as to what makes sense, but in a community of lincoln size, given that we don't really have anything else regionally, you know, I don't see a reason for you to consider anything over two
[52:05] speaker 4 (logitech): retail establishment the most, and…
[52:08] speaker 5 (logitech): at least two, though, because you… at least two, right? Because we've had bad experiences when… when just one has been there.
[52:15] speaker 5 (logitech): effectively, the second one tends to… one tends to police the other one. Right. So your best source of information is usually their compensation. Businesses of all.
[52:24] speaker 4 (logitech): times do that, by the way. And then,
[52:28] speaker 4 (logitech): what business types are of interest, and should the number be capped? So we talked about that, and then, what resources should be committed to developing costs and revenue projections on this, because the good news about having doug on board as city attorney now is that,
[52:44] speaker 4 (logitech): he has real-world, real-time experience of what the market looks like elsewhere, so we're having these discussions, we can…
[52:51] speaker 4 (logitech): I think it's going to be really interesting if we go down this road, because it's a little different than… if you're in berkeley, for example, where there's plenty of this all over the bay area, different negotiation.
[53:04] speaker 4 (logitech): here in south placer county, where your closest competitor would be, if you don't count colfax.
[53:11] speaker 4 (logitech): would be a 40-minute drive or so, maybe more.
[53:16] speaker 4 (logitech): this is a market that I think probably has some real interest,
[53:21] speaker 4 (logitech): tried to guess from the industry, and so I think the negotiation will look a little bit different. To wrap up, in your agenda packets, I included links to some code sections that other communities have used.
[53:34] speaker 4 (logitech): for you to look at sometime at your leisure. You can just sort of see how detailed they get and how specific they are about what's allowed and where. A really big question, and you may not want to talk about it today, but at some point, the most important thing is the where.
[53:50] speaker 4 (logitech): so…
[53:51] speaker 4 (logitech): yeah, so, like, this is the classic land use discussion. There's two philosophies. Some places have decided that retail and every other use should be in light industrial areas that are generally away from stuff.
[54:07] speaker 4 (logitech): and that was sort of a cautious way that we administered programs early on, because we just didn't know. Fast forward a number of years, there are,
[54:19] speaker 4 (logitech): there are establishments that you can go to that feel more like a apple store when you walk in than they do a cd, sketchy
[54:31] speaker 4 (logitech): spot that you're thinking of in your mind that I am, too. And so, what you've seen in communities… in fact, nita and I were in, indian wells.
[54:39] speaker 4 (logitech): would it be wells or palm springs? I forget. That was palm springs. Palm springs.
[54:43] speaker 4 (logitech): and we were in a very, bougie.
[54:46] speaker 4 (logitech): area, palm springs having dinner, and we noticed that a number of retail strip malls in this area, which had really expensive
[54:57] speaker 4 (logitech): furniture stores and nice restaurants.
[54:59] speaker 4 (logitech): had a cannabis place right next to it that matched the kind of style and quality that you would have seen of the other businesses. So it's sort of changed over time, where they've ended up in retail locations. The only area restriction, and I didn't check this before the meeting, you might remember off the top of your head, doug, is
[55:18] speaker 4 (logitech): the state does have one rule, which is, I believe, you cannot be within 1,000 feet of a school? You can make certain findings.
[55:26] speaker 5 (logitech): you have to make certain findings.
[55:27] speaker 4 (logitech): yeah, but the standard is the standard 600 feet from a school or daycare, I believe, facility. Or a place where children congregate. So parks, etc, right?
[55:37] speaker 5 (logitech): games. We got into a big flop with somebody of whether or not a vaskin robin is constituted, you know? Yeah, yeah, yeah.
[55:44] speaker 4 (logitech): so, you know, that is self-limiting in a way, but 600 feet isn't as far as you think it is. And to use councillor reed's comment about the discussion we had at smoke shops a long time ago, is that if a
[55:58] speaker 4 (logitech): if a minor is going to go 600 feet to a cannabis dispenser, they'll probably go 1,200 or 1,800 or 2400, so I don't know that that…
[56:06] speaker 4 (logitech): I think it would… the idea was to try to at least not have them hanging out around our schools, or, etc. So,
[56:14] speaker 4 (logitech): that's, in a nutshell, a very complex issue that, you know, may take a couple times of us chatting about for you to reach some sort of step forward or backwards, but that's generally the landscape of cannabis today.
[56:28] speaker 5 (logitech): so just, just to add on,
[56:31] speaker 5 (logitech): let's just say today you said, want to do everything.
[56:35] speaker 5 (logitech): go forward and make it happen as quickly as possible. You're still looking for about a 6-month to year long process to get everything to the point where you've got people opening up any food source and stuff like that.
[56:45] speaker 8 (logitech): probably longer.
[56:46] speaker 6 (logitech): so it's gonna take.
[56:47] speaker 8 (logitech): I guess…
[56:48] speaker 6 (logitech): probably…
[56:49] speaker 8 (logitech): close to a year to just get to the point where we could…
[56:52] speaker 8 (logitech): start entertaining the conditional use permit, which takes.
[56:56] speaker 9 (logitech): several months to get through.
[56:58] speaker 9 (logitech): so, this is…
[56:58] speaker 5 (logitech): I want to be realistic, too, about just, it's not like, having gone through this a lot, you know? It's not a… it's not a quick process, at least not unless you want to take a lot of shortcuts, and this, generally speaking, in my experience, is not besides shortcuts on it.
[57:14] speaker 10 (logitech): I have two questions.
[57:17] speaker 10 (logitech): number one, when you mentioned you want to have two…
[57:20] speaker 10 (logitech): operations. Is that two separate businesses, or is that two separate storefronts, or what…
[57:26] speaker 5 (logitech): two different businesses, two different sets of callers.
[57:28] speaker 5 (logitech): people who are not friends.
[57:30] speaker 5 (logitech): okay. You know, so you don't want one to really just be the sister of the…
[57:36] speaker 5 (logitech): right. Of the person's environment.
[57:38] speaker 9 (logitech): to each other. Gosh, worse.
[57:39] speaker 10 (logitech): absolutely, but then the second question, probably more for sean, or else can answer it. What sort of revenue are we talking about here? Well, it depends.
[57:49] speaker 8 (logitech): depends on the type of part, in part by the type of business that you want, you know?
[57:53] speaker 9 (logitech): I want that.
[57:54] speaker 8 (logitech): retail dispensary that's high-scale.
[57:56] speaker 11 (logitech): you're possibly looking at more revenue.
[57:59] speaker 8 (logitech): than, like, the motto.
[58:01] speaker 9 (logitech): building.
[58:02] speaker 11 (logitech): or if you're looking at, deliveries only, is that gonna.
[58:06] speaker 8 (logitech): to be more or less.
[58:07] speaker 11 (logitech): revenue than a storefront retail.
[58:10] speaker 5 (logitech): I mean, look, most of the revenue's gonna come on the retail side, so we're gonna have a disproportionate amount of conversation about that. It also tends to be the only one that ever the public would ever have any interaction with.
[58:24] speaker 5 (logitech): the other interaction's pretty, pretty minimal, it's vendors, it's people picking up, it's people leaving, it's deliveries, it's, you know, you know…
[58:32] speaker 5 (logitech): stuff to either come in to make the product, or sending the product.
[58:36] speaker 4 (logitech): maybe… I know what you're seeking, mayor. It's… give me an idea. Here's an idea. In riverbank, for a period of time,
[58:47] speaker 4 (logitech): I'll have to go back and double-check this, but we… we were receiving somewhere in the neighborhood of $80,000 to $90,000 per month from our two retail
[58:58] speaker 4 (logitech): it's higher now. Is it? Okay. So, one of them was a really big operation that had a huge following, and they probably paid
[59:07] speaker 4 (logitech): 85% of that, and another was a smaller shop that maybe $10,000 or $15,000 was their public benefit fee that they paid the city. Separate of that, we also had
[59:19] speaker 4 (logitech): a cultivation, industrial, that was a whole other thing that, it's more difficult to come up with a number that makes sense, because it's not retail, but,
[59:30] speaker 4 (logitech): depending on the scale of the operation, you could… you know, there are some communities that have… that generate millions of dollars. I mean, I don't know what sac generates, but I'm sure it's tens of millions of dollars.
[59:38] speaker 10 (logitech): thank you, buddy.
[59:39] speaker 5 (logitech): so, dixon and riverbank today, right, probably make between $1.2 and $1.6 million per year from just two retail businesses.
[59:52] speaker 5 (logitech): for cities that are… that have lots of competition around them, there are about 20,000 people each. So you can extrapolate through, you know, from that as to what that would mean. You don't have a lot of competition here. You have a higher population.
[1:00:08] speaker 5 (logitech): one thing that we'll talk about when you take into your direction is delivery is going to be a huge topic of conversation, and how much you allow delivery can also affect your relationship with your neighbors. So let's say roseville doesn't want it, doesn't have it, they can get mad if you're…
[1:00:25] speaker 5 (logitech): if they find out somebody from here starts delivering there, you'll get… I mean, I know because I get the calls, right? They may come and
[1:00:33] speaker 5 (logitech): have not nice words with you, because, hey, you got your operators delivering here, and you don't want it.
[1:00:39] speaker 11 (logitech): well, what do they do on sacramento?
[1:00:40] speaker 6 (logitech): delivers. I mean, the lender delivers here. Yeah, that's what I'm saying.
[1:00:44] speaker 5 (logitech): I just prepare you for the conversation.
[1:00:47] speaker 6 (logitech): yeah, no, I understand that.
[1:00:50] speaker 7 (logitech): the other cities in western counties…
[1:00:53] speaker 4 (logitech): as far as I can tell, there's no active
[1:00:58] speaker 4 (logitech): prohibition or enforcement of delivery in plasma.
[1:01:02] speaker 5 (logitech): roseville was the most active in terms of shutting down people who would just open up storefronts. Deliverings are harder to…
[1:01:10] speaker 11 (logitech): and…
[1:01:11] speaker 6 (logitech): this isn't my judgment one way or the other, but… but deliveries, I mean, on my street alone, fedex, ups, all the other deliveries, doordash, like, nobody knows who… you know, there's so many different types of deliveries. Somebody walks up to your door with a bag of product, like, nobody… they're gonna go, oh, okay, well, that guy's the…
[1:01:28] speaker 6 (logitech): coming from mcdonald's, but that guy's coming from the dispatcher. Nobody knows, right? So, like you said earlier, it would be really hard to…
[1:01:35] speaker 6 (logitech): to enforce that, and to know who's
[1:01:38] speaker 6 (logitech): yeah. You wouldn't want to know that either. No, you wouldn't.
[1:01:41] speaker 5 (logitech): I like that.
[1:01:41] speaker 6 (logitech): that's the point, right? You wouldn't quite… so…
[1:01:45] speaker 6 (logitech): can I ask a question now, mayor, where you're done? Okay, I want to know from… from zach, like, what kind of…
[1:01:50] speaker 6 (logitech): issues, because I've seen… I know we're one of the places in sacramento, there's a lot… I mean, it's, like, very nondescript, it's, like, high security, and there's not a lot of riff-raff standing around, but, like, what kind of, things have you seen that might be problems in… when you were in sac?
[1:02:08] speaker 6 (logitech): well, I mean, you gotta get the full spectrum. I've seen murders happen at these things, where you have.
[1:02:13] speaker 12 (logitech): I have asian gang members who decide to hit a same location over on 43rd avenue, but the couple murders that I've been to are literally at the same location.
[1:02:21] speaker 12 (logitech): so, I think it comes down to, one, the conditions that you impose upon the locations, because I can tell you there's other dispensaries that are in downtown sacramento that have never been hit before, and they don't even have problems from cultural service at them, right? So, it's really dependent upon the conditions, the security measures that are put in, how hardened the locations are themselves.
[1:02:41] speaker 12 (logitech): I do think there's some more issues that come with marked delivery service that we just talked about, where you get crews who will follow these cars, and they'll follow them home, and you'll have robberies of,
[1:02:53] speaker 12 (logitech): weed product, but that's where things are on… they're very well advertised. There's a specific location right off of,
[1:03:02] speaker 12 (logitech): highway 160, just after you pass el camino, and you're coming into downtown, it's right there on your right. Doug probably knows the name, but I do. It's a very nice building, and there's technically two. We don't have issues there at all.
[1:03:13] speaker 6 (logitech): I'm talking about, I've seen that multiple times, right?
[1:03:16] speaker 12 (logitech): I've never been or even, controlled a call for service at that location, so my opinion is that as long as it's set up correctly and the proper boundaries are put on them, that's what controls the problems that you have on them. Okay. Just in my experience.
[1:03:31] speaker 6 (logitech): right, okay, because that would be my next question to you.
[1:03:34] speaker 6 (logitech): seeing that, you know, you're gonna be the head of the police here, and all the things. And so, I know, talking to
[1:03:43] speaker 6 (logitech): doug, right? Our friend who wants to… dave. David, david. He was telling me, and I won't say a word, but one of his friends who's a police chief, who says in public, oh no, I'm not for it, but then they'll tell him behind the scenes, like, look, I don't care, you know, but I just can't say that publicly.
[1:03:57] speaker 6 (logitech): so I'm not trying to put you on the spot. That's my job, right? I really want to know what you feel about it. Like, do you think, based on your experience… now, that's not sacramento, right? And what you just said is very true, depends on what kind of restrictions we put, what kind of
[1:04:17] speaker 6 (logitech): please permit, all of the security, all that. Like, like they just said, it's gonna take a year to get this thing ready to go.
[1:04:24] speaker 6 (logitech): what is your actual opinion? Do you think that… that lincoln can handle that if we set it up right, and it really won't be that much of an issue, and it's worth the extra revenue that we could get for things? Or do you… your honest opinion is just, like, you would rather just not deal with it?
[1:04:38] speaker 12 (logitech): no, I mean, I think the mayor and, the advisor actually asked me this question at lunch, and I told him that I was in support of it, provided that the proper regulations are put in place, and provided that the pd has
[1:04:50] speaker 12 (logitech): input in the process.
[1:04:52] speaker 6 (logitech): I'm sure we would.
[1:04:54] speaker 12 (logitech): yes. But…
[1:04:56] speaker 6 (logitech): no, I mean, somebody has input. Okay, no, I'm just kidding. I don't.
[1:04:59] speaker 12 (logitech): if you asked me that question 20 years ago, I would have said something completely different, but the reality is, is the state has taken a stance
[1:05:07] speaker 12 (logitech): towards marijuana, where it is regulated much like alcohol, just like sean said. And so, I think the whole country is starting to move that way a little bit. I know they've even recognized some of that at the federal level. There's been discussions for that.
[1:05:20] speaker 12 (logitech): so I just think it's more of a 21st century stance, of where we want to develop that from, and as long as it's controlled properly, and we…
[1:05:28] speaker 12 (logitech): we will need to do compliance checks, and you can't do that using patrol officers. Right. So, you have to have a unit that can stand up, like srt, who does the tobacco enforcement and stuff like that.
[1:05:39] speaker 6 (logitech): I think it's really ironic to use the drug money to have the law enforcement to enforce the drug… I think it's funny.
[1:05:45] speaker 12 (logitech): it's no different than, I know.
[1:05:50] speaker 6 (logitech): no, 100%, yes, I get it, I get it. Yeah, totally. Yeah. Okay, I appreciate that.
[1:05:56] speaker 4 (logitech): that is sort of hitting the news these days, and I don't really know where it leads, although I think I do, is…
[1:06:02] speaker 4 (logitech): the trump administration sort of made this push to reschedule cannabis from schedule 1, which is up there with the worst of the worst.
[1:06:10] speaker 4 (logitech): down to schedule 3.
[1:06:12] speaker 4 (logitech): many levels below. And that sort of sent janina signal that eventually, on the federal level, they were going to make… they were going to sooner or later make a policy change.
[1:06:23] speaker 12 (logitech): the question that I.
[1:06:24] speaker 4 (logitech): I've asked elected officials in the past as a good thought experiment, is.
[1:06:28] speaker 4 (logitech): you know, old enough here. 25 years ago, when medical was approved, it was kind of shocking and crazy, and…
[1:06:37] speaker 4 (logitech): you know, different, and then…
[1:06:41] speaker 4 (logitech): recreational sort of happened again when that one passed. The question I have to ask myself is, if that's going to eventually happen at a federal level, what does this look like in 24 years?
[1:06:51] speaker 4 (logitech): I mean, walking into an albertsons or safeway, or something like that, and there's a special area you go to? Yeah. I don't know. I suspect. So,
[1:07:01] speaker 4 (logitech): and so the only idea is that if there's…
[1:07:05] speaker 4 (logitech): there's plenty of con arguments. If there's a pro-argument, you at least have some modicum of control for now.
[1:07:11] speaker 10 (logitech): yeah. What's the situation with the banking? Are they able to do regular banking?
[1:07:17] speaker 12 (logitech): or is it still a cash business?
[1:07:20] speaker 12 (logitech): okay, just muted. Are you talking… say that and say that one more time?
[1:07:23] speaker 5 (logitech): thank you.
[1:07:24] speaker 10 (logitech): maggie's standpoint. Oh, yeah, yeah.
[1:07:26] speaker 12 (logitech): you can take credit cards. Yeah, it's just like any business. Yeah, you're not dealing in cash. That's… they moved away from dealing in cash for specifically the reason… so they don't give… it's a legitimate business. It's a license. It's legal.
[1:07:38] speaker 5 (logitech): so, I mean, realistically, 60% of the fastest growing population is the 55 and older population.
[1:07:46] speaker 5 (logitech): and, 60% of adults over into years of 21 have, used
[1:07:52] speaker 5 (logitech): cannabis, either for medical reasons or for recreational reasons. Yeah, but I never nails. Just like a cigar. And then, that doesn't count for animals. Yeah.
[1:08:05] speaker 5 (logitech): and so, when you… so it's not a question of whether or not it's happening, it's just a question of whether or not you want to regulate it.
[1:08:13] speaker 12 (logitech): I will add one other thing on that, too, is, if you compare just anecdotally in my experience in law enforcement.
[1:08:20] speaker 12 (logitech): how much violence we have at a bar that over-serves compared to a marijuana dispensary, the bar all day long is by far the higher, location and stats than a dispensary ever would be. So, you know, we talk about… I think I've seen maybe 3 murders at the same
[1:08:39] speaker 12 (logitech): weed dispensary in a, high-crime area in sacramento, whereas, you know, you pick any bar that, is a historical trouble location, I mean, the list goes on and on about violent crimes at that location, so…
[1:08:52] speaker 7 (logitech): we kind of touched on what, that there's a difference between the ones that get hit frequently, and so there's reasons.
[1:09:01] speaker 7 (logitech): can you share what some of those are, why they're targeted more?
[1:09:07] speaker 7 (logitech): and, and then my second thought is, I think,
[1:09:12] speaker 7 (logitech): goes without saying that it would be…
[1:09:15] speaker 7 (logitech): it would be great if you had a report. I mean, I would imagine that you would put together, like, a list of all the things that would
[1:09:24] speaker 7 (logitech): be, recommended for us to implement if we were to do this on your side, and public safety, and setting us up to be not that.
[1:09:35] speaker 12 (logitech): yep. Yeah, I mean, I think just in my experience seeing the one I'm talking about specifically, it's in a very dark area. It's in an industrial area. It's really kind of on its own, tucked away, where there's not a lot of public view to it.
[1:09:48] speaker 12 (logitech): they didn't necessarily… do you know what crime prevention through environmental design is. Basically, it's lit properly, you don't have a lot of bushes around it where people can conceal themselves. So it's a… it's a myriad of factors, basically, of why this location, in my opinion, continued to get hit.
[1:10:03] speaker 12 (logitech): because I can tell you one that's 4 miles away, I've never been to a call service there. So,
[1:10:09] speaker 5 (logitech): cash payments. Yeah, exactly.
[1:10:12] speaker 12 (logitech): yeah, so there's a… there's a whole host, I think, between the experience that these gentlemen have, obviously, and then some of the things that I've seen in my career, I think that we can get to a place where we could, you know, if you choose to run a pilot, that we would put some good safeguards in place to give it a fair shot to make sure we keep our community safe.
[1:10:32] speaker 4 (logitech): one thing that we did, the program when we established.
[1:10:37] speaker 4 (logitech): my last city, because it was a very controversial decision at the time, like…
[1:10:44] speaker 4 (logitech): I felt the heat under my seat the entire meeting. I'm not sure… remember until I done it, I don't know if I was surprised. And, so the… and it was sited in an area of the community that was, the median income was very high, it was a very wealthy neighborhood, and…
[1:11:01] speaker 4 (logitech): so, what we agreed to do was monitor and report back to the city council for, like, I think it was on a quarterly basis for a while, any… any… even if there's small-scale crime issues that we had that were associated with the business. Whether it be, like zach said.
[1:11:16] speaker 4 (logitech): undesirables hanging out outside doing things they shouldn't be. Breaking and entering, theft.
[1:11:22] speaker 4 (logitech): violence, whatever. And what we actually found was that because of the security requirements that we layered on top of them,
[1:11:31] speaker 4 (logitech): crime actually reduced year over year in that area, and for the first couple years, we had zero issues. The first one we had was some lady went in to go make a purchase, and…
[1:11:42] speaker 4 (logitech): someone smashed her car window, stole a purse, which could happen anywhere, obviously. Well, don't leave your person near.
[1:11:47] speaker 6 (logitech): correct, yeah.
[1:11:48] speaker 4 (logitech): and then one other little funny thing, I don't know if I ever shared this publicly, but it's been a cares, was we start this program, right, and it's very controversial, and the women's club advised me to come do a speech to them, and an update, and…
[1:12:03] speaker 4 (logitech): that particular women's club, they're generally pretty elderly ladies, and so they're asking, they're very curious about it, and it had started, it opened, and they said, you know, it's a little weird, but we'd really love to have a tour. Would you arrange that for us? So I called the owner, I said, sure. He said, yeah, bring them down. So they come down, I couldn't make it.
[1:12:20] speaker 4 (logitech): calls me afterwards, I said, how'd it go? He's like, oh, they're really interested in how we've set everything up, and they're really curious about all the different kinds of products we had, and he goes, you know what? Almost every single one of those little old ladies bought something in lexi.
[1:12:34] speaker 4 (logitech): that's just crazy to read.
[1:12:36] speaker 7 (logitech): so sun city might be the best location.
[1:12:39] speaker 12 (logitech): facts that…
[1:12:40] speaker 4 (logitech): that is a… would you find it there.
[1:12:45] speaker 6 (logitech): yeah, so here's… here's my thought. I…
[1:12:48] speaker 6 (logitech): what I struggle with right now is we're a long ways away from, you know, coming before us with a conditional use and deciding yes or no, do we actually want to put this in our community?
[1:12:58] speaker 6 (logitech): if the council feels like it's a priority for staff to continue working on it, then that's their… that's the council's decision. I struggle in the moment right now to be like, we have so many big projects that we're dealing with, I don't… I don't know if this is something that I feel comfortable with devoting a lot of staff time to right now.
[1:13:17] speaker 6 (logitech): but I mean, I just… that's… I just want to say that. I just… I don't know where I am with that.
[1:13:22] speaker 12 (logitech): it would kind of depend.
[1:13:22] speaker 4 (logitech): on how you want to prioritize its expediency. So, the good news is that
[1:13:28] speaker 4 (logitech): we don't have to make up anything. I mean, it's already kind of been made up. The process part of it, where the real work comes in is, like, when you put out an rfp or rfq,
[1:13:40] speaker 4 (logitech): you know, depending on how you want to structure it. Some… doug would probably recommend that in other situations like this, we usually have two council members that are part of that process. In this instance, I don't know whether your opinion's changed, doug, we… generally, that's not a good idea.
[1:13:54] speaker 4 (logitech): because what was happening in the early days is the lobbying efforts that were happening were…
[1:14:01] speaker 4 (logitech): in some places, we're crossing our lines, into places we do not want to be. Most of the work ends up being kind of on our side, negotiating with the party, trying to make sure we're packaging together a product that is
[1:14:16] speaker 4 (logitech): a project that's going to look nice for the community, it's not going to make people feel comfortable. Maybe the council, you know, look, we have a couple members here that are going to have perspectives. Maybe the council wants us to go have some discussions more broadly with the community about this. Hey, what do you think? What's been interesting about it is, you mentioned it's strategic planning.
[1:14:36] speaker 4 (logitech): no one really says much.
[1:14:37] speaker 4 (logitech): it comes up numerous times at city council meetings with numerous people in room.
[1:14:42] speaker 12 (logitech): that's all.
[1:14:42] speaker 10 (logitech): tray.
[1:14:43] speaker 5 (logitech): we have two people here.
[1:14:44] speaker 10 (logitech): straight.
[1:14:45] speaker 4 (logitech): I don't know how much people care about it.
[1:14:47] speaker 12 (logitech): but that's true.
[1:14:48] speaker 6 (logitech): I guess once we do… once we do the rfp or rfq, whatever, and then applicants are paying for the process.
[1:14:55] speaker 6 (logitech): that's different than right now, like, we're paying for you to do the work when there's other priorities, and I'm saying…
[1:15:01] speaker 6 (logitech): I'm not saying absolutely just forget about it, don't do anything. I'm just saying, right now, if they're paying for the process, great, like, go through it. If… if… but if we're expending a lot of energy, but like you just said, you don't have to reinvent the wheel. I don't know. I just…
[1:15:16] speaker 6 (logitech): I just feel like there's really big priorities in front of us right now, and… but that's just my…
[1:15:22] speaker 12 (logitech): you bring up a good point.
[1:15:23] speaker 10 (logitech): one of the reasons I asked how much revenue we're talking about, because if we're talking about $100,000, $200,000, okay, then you're absolutely right. But if we're talking now into seven figures, okay, maybe… that, to me, that tilts the discussion, because, okay, that raises… to me, that raises things up, because the magnitude of what we could do with it, that's… that's not…
[1:15:49] speaker 10 (logitech): so I'm…
[1:15:51] speaker 5 (logitech): I'm with both of you, because… I… I'm pretty reserved.
[1:16:01] speaker 5 (logitech): you know, in that aspect about trend is.
[1:16:05] logitech: hmm.
[1:16:07] speaker 12 (logitech): safety and… I want to keep a community where it can be a community where kids can.
[1:16:16] speaker 5 (logitech): grow up with family-oriented type things, and to me, that…
[1:16:20] speaker 10 (logitech): and that's just… it's just in my own mind, a connotation that's…
[1:16:24] speaker 5 (logitech): just from, from.
[1:16:26] speaker 13 (logitech): growing up kind of thing, right? And, yeah, the whole…
[1:16:29] speaker 13 (logitech): country is kind of moving in that direction, but still, in the back of my mind, this hard-earned rule.
[1:16:35] speaker 5 (logitech): to get matched.
[1:16:38] speaker 13 (logitech): at the same time, with… revenues, probably possibility.
[1:16:45] speaker 10 (logitech): the human revenue.
[1:16:45] speaker 13 (logitech): we just have safety guards and stuff that…
[1:16:48] speaker 13 (logitech): we're presented on how they are running the business, instead of a little of that, at least for me. And then, of course.
[1:16:57] speaker 13 (logitech): because we're facing an issue where we have some
[1:17:02] speaker 13 (logitech): but there's shortfalls and different things. I can be open to it, because I believe that if we're in a…
[1:17:09] speaker 14 (logitech): place where it can be regulated well enough that it keeps the communities family-oriented and safe, then the money can be used for additional public safety things that we need, like fire trucks or…
[1:17:26] speaker 14 (logitech): or different things, like, so…
[1:17:29] speaker 13 (logitech): I've kind of split 50-50, but I agree that I don't think that I want to have our staff spending our time and money on that.
[1:17:36] speaker 14 (logitech): unless it's a, like, a huge…
[1:17:39] speaker 13 (logitech): yeah, we can use somebody for our public.
[1:17:42] speaker 4 (logitech): safety.
[1:17:42] speaker 13 (logitech): well, I mean, I think, like.
[1:17:44] speaker 4 (logitech): if… let's set aside,
[1:17:47] speaker 4 (logitech): when it's right for, like, for one moment, and just, like, talk about money for a second.
[1:17:52] speaker 4 (logitech): I don't know, doug might know better than I do, but… my sense is that
[1:17:59] speaker 4 (logitech): in this particular environment that just happens to be slightly odd in placer county, that we're sort of a canvas desert.
[1:18:06] speaker 4 (logitech): the financial upside for a period of time is significant, because we'll be the only one. And that won't always be the case. I will guarantee you, sooner or later.
[1:18:17] speaker 4 (logitech): other communities in this… I don't know this for sure, but I've heard that other communities are starting to think on it a little bit, at least.
[1:18:25] speaker 4 (logitech): and we found that the ones that establish themselves first are successful, and the ones that are late.
[1:18:32] speaker 4 (logitech): I guess.
[1:18:34] speaker 4 (logitech): the ones that exist in zac's former jurisdiction, zac that have been there a really long time are still there.
[1:18:41] speaker 6 (logitech): so what you're saying is we'd be getting on the ground floor of this? If you want to do it.
[1:18:45] speaker 4 (logitech): if you want to do it for some sort of financial benefit, then that's… then now is the time to really seriously think about it. Delaying is okay, there's just, you know, a risk that.
[1:18:56] speaker 13 (logitech): I'm being honest.
[1:18:57] speaker 14 (logitech): I would be okay with pursuing it.
[1:18:59] speaker 13 (logitech): as long as I feel comfortable that the communities can stay safe.
[1:19:04] speaker 13 (logitech): in the process, because… because I believe the revenue is something new.
[1:19:09] speaker 13 (logitech): be very beneficial to our public safety.
[1:19:12] speaker 13 (logitech): and to our community.
[1:19:15] speaker 10 (logitech): you know, just listening to the level of expertise that we have here, I think is a huge advantage to us, because we're not removing the wheel here at all, right? They've been there, done that, so all they're doing is taking their prior experience, bringing it over here, and saying going, here's the new…
[1:19:34] speaker 3 (logitech): what are the new metrics?
[1:19:35] speaker 10 (logitech): and dynamics, okay, now we're gonna result from here.
[1:19:38] speaker 10 (logitech): but to me, the biggest thing was just figuring out what are we talking about? Are we talking about significant amounts of money, or, you know, or not? And if we are, that's… that's fine. To me, that… that moves.
[1:19:47] speaker 5 (logitech): the needle.
[1:19:48] speaker 4 (logitech): so, like, what you've primarily discussed today is retail, which is always the primary discussion, but the… I mean, setting aside the product itself.
[1:19:57] speaker 4 (logitech): the industrial manufacturing and distribution components are very real economic development options.
[1:20:04] speaker 5 (logitech): almost no… community.
[1:20:07] speaker 13 (logitech): impact.
[1:20:07] speaker 5 (logitech): yeah. They're really just more of a public safety fire, depending on manufacturing, more of a fire thing, and then police can be involved in either… so let me answer your question, then follow up.
[1:20:16] speaker 10 (logitech): when you talk about a million dollars, give or take, whatever, is that just on retail for that layer on top of that, manufacturing and… correct.
[1:20:26] speaker 5 (logitech): you can layer on top, but most of the things… most of the revenues come through there. A lot of the cultivation and manufacturing has gotten consolidated in a few areas, so you could open it up, but we couldn't, like, guarantee that anybody would even take advantage of it. Cultivation's probably the…
[1:20:42] speaker 5 (logitech): most brutal. There's a lot of cultivators who are just going out of business, and then a lot of people are just going into, like.
[1:20:47] speaker 5 (logitech): literally, like, tiered warehouses like amazon. You may have, like, 3 or 4 mezzanines of just, like, hydroponic…
[1:20:54] speaker 10 (logitech): grow operations going. I've talked about this.
[1:20:57] speaker 13 (logitech): few community members about this, and…
[1:21:01] speaker 13 (logitech): they have expressed being in favor of it because of the raptiveness.
[1:21:09] speaker 13 (logitech): and so, not just workshopping it here, but,
[1:21:13] speaker 13 (logitech): getting a real feel for what's the whole community.
[1:21:18] speaker 4 (logitech): the other component that just… since I think councilmember adriana has to be here before she does, I wanted to just get one quick little temperature check, because if we're going to start to put some stuff together for you to look at.
[1:21:33] speaker 4 (logitech): that wear is so important, because it really is sort of a one or the other decision. It's either that you're going to pigeonhole them into pseudo and light industrial areas, which is an easy decision.
[1:21:47] speaker 4 (logitech): or, at least on the retail side, you take this more free market approach that
[1:21:52] speaker 4 (logitech): hey, if the commercial developer is happy to have you, good for me.
[1:21:58] speaker 7 (logitech): but captain aiden was saying that that might be, not an ideal place. If it's, like, an industrial area, then it might be more prone.
[1:22:08] speaker 12 (logitech): yeah, probably. It depends, right? Like, if you have an industrial area that's on a main road that has a lot of vehicle traffic, it's probably going to be fine. If it's tucked back, you know, 4 streets back in an industrial area that doesn't see a lot of traffic, and there's not a lot of surrounding businesses around it, you're only going there for one reason, and that's where you run into problems.
[1:22:28] speaker 6 (logitech): yeah, there's a lot of traffic. I mean, it's a bit.
[1:22:31] speaker 7 (logitech): what about proximity to, like, 65 and commercial?
[1:22:37] speaker 11 (logitech): so we did… we asked jen.
[1:22:39] speaker 8 (logitech): to kind of pull up a map of the city and highlight some of the digital news types that are currently allowed within the city?
[1:22:47] speaker 11 (logitech): provide some visuals for you.
[1:22:50] speaker 5 (logitech): oh, one…
[1:22:52] speaker 10 (logitech): when do you have to go and just removal? That's… I gotta be in.
[1:22:55] speaker 6 (logitech): rockland at 6.30, so…
[1:22:57] speaker 10 (logitech): okay, the only thing I was just thinking of, for you to be here, the sense of the council is, yes.
[1:23:04] speaker 10 (logitech): have the staff continue to explore and bring top-level options for us. I'd like you went on that conversation there.
[1:23:12] speaker 6 (logitech): yeah, I mean, I… thank you for that, mayor, appreciate it. Yeah, I mean, I'm, you know, I'm not gonna be the one to say, just stop talking about it, because that's what I told the residents. I'm like, I don't… I can't tell you how we'll vote in the end, right? I have a very conflicting, like, ben said, like, you know, like, I… I have my thoughts about marijuana, I have my thoughts about all of that, and personal experiences with family members and friends and all of it.
[1:23:35] speaker 6 (logitech): but I'm also not, government big brother, right? And we have… they have the right to… we have the right to go through the process, and have… and this is the first step of the conversation, and then see how our community really feels about it, because the years before this, lincoln has always been absolutely not, absolutely not.
[1:23:52] speaker 6 (logitech): so far, we don't… we're not getting that vibe right now, right? So, the conversation we've had, like, things have changed a little bit, so…
[1:23:58] speaker 6 (logitech): you know, I'm fine with staff going… I just want us to be careful that we're not spending a lot of resources spinning our wheels on things until someone else is paying for the process. But sure, yeah.
[1:24:10] speaker 5 (logitech): and just for your decision-making process, the biggest thing will not be staff time on the front end, it's going to be the time that they have to dedicate to making decisions.
[1:24:19] speaker 5 (logitech): and how much you want to… and how much you want to workshop that and do outreach in the community. That's… that's the first part.
[1:24:27] speaker 6 (logitech): well, I'm definitely for outreach to the community. That's always 100% first thing, so…
[1:24:34] speaker 7 (logitech): yeah, I'll get my two cents really quick. I've done a lot of reading and research on this, and I think that, like captain eaton, if you had asked me about this 10 years ago, I would have had a completely different opinion on it, and I can relate and empathize with
[1:24:52] speaker 7 (logitech): all, sort of variations of, of, acceptance and feelings from, you know,
[1:25:02] speaker 7 (logitech): addiction, to morality, to, free market, and, you know, just being realistic about the world right now, and where we are today, and where it probably will be without knowing for sure, with the crystal ball.
[1:25:18] speaker 7 (logitech): and, the benefits weighing the pros and, and the risks. And, where it stands today, I have also spoke to a lot of people in my district, and,
[1:25:31] speaker 7 (logitech): one person was kind of like, I just don't really like that, but I also get…
[1:25:38] speaker 7 (logitech): similarly to what I just stated, you know, that's the way the world is. And then, most people were like.
[1:25:43] speaker 7 (logitech): yeah, well, like, that's california, it's everywhere, you know? Is this really, like, a thing? Why are you even asking, you know? And it's people that I wouldn't have thought would say that, you know? It's like, moms my age, or, you know, all… it's just… it's different, so…
[1:26:00] speaker 7 (logitech): I think that, if it's done responsibly, it's not… and we're mitigating the amount of risks that we possibly can. It's not having an impact on the community. We're partnering, and we're also, you know, getting feedback from the community. I feel that it's…
[1:26:17] speaker 7 (logitech): probably worth it to, at this point in time, that we might have this opportunity.
[1:26:22] speaker 7 (logitech): because there isn't a lot in our area, but people are still buying it in our area, that, you know, why… why wouldn't we take the opportunity and,
[1:26:34] speaker 7 (logitech): you know, and financially benefit from something that's already happening anyway. We're just not thinking about it the same way. I don't think we're gonna change people's behaviors, necessarily, just…
[1:26:47] speaker 7 (logitech): where the money's going. So, that's kind of where I'm at.
[1:26:52] speaker 6 (logitech): I apologize, I do have to go. Thank you, everybody. Thank you, scott, for all your time. Yes. Thank you. Yeah, thanks, holly.
[1:27:00] speaker 12 (logitech): sure. I think that the,
[1:27:04] speaker 4 (logitech): one, I think…
[1:27:06] speaker 12 (logitech): all four should be on the table, especially
[1:27:09] speaker 12 (logitech): I mean, we may not have an opportunity to capitalize on that, given the market conditions, but I think all four important parts of the building process should be there.
[1:27:17] speaker 15 (logitech): on the retail side, I lean more towards palm springs than fort roseback and industrial park.
[1:27:23] speaker 15 (logitech): I think… and, you know, what I took away from it was the more light, the better, and a high-trafficked
[1:27:30] speaker 15 (logitech): nice retail center seems like pretty high traffic light to avoid the potential downfalls. And I think, to your point, I think there'll be people who will not like it no matter where it is, but also, if you're gonna do it and you're gonna put it in the spot that has the best chance for success.
[1:27:48] speaker 15 (logitech): and minimal impact of the community, I think that makes a lot of sense.
[1:27:52] speaker 15 (logitech): so, I mean, I would, to kind of holly's point before, I wouldn't say sprint, but I would definitely say, you know, mid-distance, you know?
[1:28:00] speaker 10 (logitech): deliver us all the love.
[1:28:02] speaker 15 (logitech): deliberate walking. Deliberate, yeah, fast walking. Those guys go pretty fast. They do. But that would be my sense.
[1:28:09] speaker 4 (logitech): mayor, before we put the map up, did you want to take a public comment, or do you want to do map first, then public comment? Let's do public comment. There is…
[1:28:22] speaker 1 (logitech): okay, is there anyone in the audience that would like to provide a comment? You'll get 3 minutes!
[1:28:31] speaker 15 (logitech): I mean, hold minutes.
[1:28:33] speaker 13 (logitech): and it's… and you have to use it all.
[1:28:41] speaker 10 (logitech): I didn't write it down this time, so I might have a hard time in 3 minutes. My feelings are not,
[1:28:49] speaker 16 (logitech): they're not a mystery.
[1:28:49] speaker 10 (logitech): I've spoken on this, like, I don't know, 3 or 4 times.
[1:28:52] speaker 10 (logitech): I hear everybody's, you know, the…
[1:28:56] speaker 16 (logitech): like, to holly's point about, you know, family members, you know, I have family members who struggle with alcohol, and you can buy that everywhere in this city.
[1:29:06] speaker 16 (logitech): within 600 feet of a school included. I don't think that… negates…
[1:29:13] speaker 16 (logitech): one, the financial benefit of the city, and two, the… just the fact that people should have… it's legal, it's a legal business, they should be allowed to have it in the city.
[1:29:24] speaker 16 (logitech): it's legal for people to buy it, they should have that option in the city. And I just think it's, from a financial standpoint, I think it's irresponsible to look at the amount of revenue that other cities make. The example I gave before, marysville, 2020-2021 fiscal year is $978,000. They have 12,000 people.
[1:29:42] speaker 16 (logitech): they have 3 quarters the number of police officers we do.
[1:29:45] speaker 16 (logitech): for her, like… biff of the, of the, of the population.
[1:29:51] speaker 16 (logitech): there's a lot of benefits. Are there negatives? Of course. There's negatives to putting a toy store in the… on the corner, you know, so there… that… I don't…
[1:30:02] speaker 16 (logitech): I understand the negatives, and there are… there's always been… there's been a stigma on it for a long time, but, I… I think…
[1:30:12] speaker 16 (logitech): you know, to… I don't know who made the point, might have been sean, that…
[1:30:17] speaker 16 (logitech): that stigma is slowly going away, and while it's too late to get on the ground floor, because the ground floor has been built, but we can still get in one of the prime… the prime suites, before the stigma is completely gone, and the opportunity for
[1:30:32] speaker 16 (logitech): that revenue is going to be gone.
[1:30:35] speaker 16 (logitech): and I understand everybody's, you know, the moral, all that,
[1:30:41] speaker 16 (logitech): I would say that, in my personal opinion, as a city council, it should be more about what's best for the city before your own moral, stance on it.
[1:30:51] speaker 16 (logitech): thank you, jc. Thank you. I was close enough.
[1:30:55] speaker 16 (logitech): I'm alexander.
[1:30:57] speaker 16 (logitech): I could say something else. Like a minute.
[1:31:03] speaker 13 (logitech): we'll give you an extra 30 seconds.
[1:31:04] speaker 10 (logitech): so I'm just…
[1:31:05] speaker 14 (logitech): don't do that. Okay.
[1:31:08] speaker 1 (logitech): anyone else? So, I do see a few people on zoom. If there's anyone on zoom that would like to provide public comment, please raise your hand.
[1:31:19] speaker 1 (logitech): I see no hands raised. Okay.
[1:31:21] speaker 12 (logitech): thank you.
[1:31:22] speaker 10 (logitech): in that case, sean, we'll turn it… jennifer?
[1:31:35] speaker 8 (logitech): so, here we,
[1:31:39] speaker 1 (logitech): the past. This, blue dashed line is the current city limits. The gray areas are our sphere of influence, our areas that would be annexed.
[1:31:51] speaker 8 (logitech): the green tree dots are parks, the purple.
[1:31:56] speaker 1 (logitech): things are schools.
[1:31:57] speaker 7 (logitech): of different kinds, if they're elementary, middle, or… high school or charter schools.
[1:32:04] speaker 1 (logitech): I didn't know about the daycare thing, I could add that later.
[1:32:10] speaker 1 (logitech): but we have,
[1:32:13] speaker 1 (logitech): different types of land use. So, if you look at this, like, I don't know what you want to call it, this salmon.
[1:32:18] speaker 17 (logitech): color. This is commercial. Anything that is, like, a light blue is a public facility. It could be a school facility or city hall, anything that's a public facility.
[1:32:30] speaker 17 (logitech): the, purple is, light industrial. Industrial, is…
[1:32:37] speaker 17 (logitech): I don't know what you want to call this, pink. And,
[1:32:42] speaker 17 (logitech): so, there's areas scattered around the city. If you wanted to zoom in here to, like, toll corda's area first, you see we have, this
[1:32:53] speaker 17 (logitech): area that's, like, in beige. This is, like, an employment center side slash commercial type use.
[1:33:00] speaker 17 (logitech): in that, you'll have, like, regular commercial. This is…
[1:33:04] speaker 17 (logitech): like, the gas… the new gas station is here, and then that's gonna be where the new, retail… colbert's retail center. Colbert's retail center is gonna go, so that's kind of strip molly, kind of…
[1:33:17] speaker 17 (logitech): and then at the same time, you have, you know…
[1:33:22] speaker 17 (logitech): ferrari pavilion commercial here, which is… strip mall was gonna have a daycare, so then that would…
[1:33:31] speaker 11 (logitech): I think they lost that to them. Oh, they did? I think so. Okay.
[1:33:35] speaker 17 (logitech): but that's commercial. So, the difference between the employment center and the commercial so, select your.
[1:33:42] speaker 4 (logitech): commercial corridors that, like, so that 12 bridges retail center, that's probably out of play, at least the one right across the street, that's… high school figure. That roadway is probably…
[1:33:54] speaker 4 (logitech): 220 feet at the end, so you're… you're within. Those… some of those areas that are further down, you know, towards joyner, probably, are… are… would be in play. Most of your lincoln, boulevard commercial corridor, doesn't have much
[1:34:13] speaker 4 (logitech): school or daycare use around it, except for certain key areas. What you probably end up seeing is, we've seen in other places, is you see one smaller mom and pop that ends up in your downtown somewhere.
[1:34:27] speaker 4 (logitech): and then you see one more well-funded corporate entity in one of your retail centers somewhere, usually.
[1:34:35] speaker 4 (logitech): and they… they serve sort of a different clientele. Some of them are more like a walmart of marijuana, and others are more like a boutique, kind of hippie, cool place to go head-cop sort of vibe.
[1:34:48] speaker 4 (logitech): I don't know why I lived that way, but…
[1:34:51] speaker 15 (logitech): oh.
[1:34:52] speaker 10 (logitech): that's a lot.
[1:34:53] speaker 10 (logitech): I'll talk.
[1:34:54] speaker 4 (logitech): that's so wumble.
[1:34:55] speaker 15 (logitech): we've got a lot of good sound heights tonight.
[1:34:59] speaker 4 (logitech): I shouldn't have recorded this, hope.
[1:35:02] speaker 12 (logitech): required.
[1:35:04] speaker 4 (logitech): and then, of course, you have, you have village 5. And what I'll tell you is that the big retail developers,
[1:35:13] speaker 4 (logitech): really, their view of this use has changed over time. It used to be they wanted nothing to do with it.
[1:35:18] speaker 4 (logitech): they didn't want… many of their corporate entities that are their big money makers they lease to don't want to be in the same center as something like this. That's changed.
[1:35:27] speaker 4 (logitech): we're seeing more of that, it's just becoming an integrated thing.
[1:35:34] speaker 5 (logitech): I think they can tell you, please.
[1:35:37] speaker 4 (logitech): you just have to pay a lot more rent.
[1:35:38] speaker 15 (logitech): from the most commonly wine. Exactly.
[1:35:42] speaker 4 (logitech): so, I mean, it sounds to me like the, you know, let's just following up right now, that the council's view of it is to take a broader view of location versus…
[1:35:51] speaker 4 (logitech): pigeonholing it somewhere dark and red.
[1:35:56] speaker 4 (logitech): okay.
[1:35:57] speaker 4 (logitech): we can work with that.
[1:35:59] speaker 4 (logitech): and then, I guess the only other thing related to use would be,
[1:36:05] speaker 4 (logitech): I don't think we need to talk about land use as it relates to the other types of uses, because those, to me, make a lot more sense in light industrial and industrial areas, because it just should be rare anyway, so it'd be pretty simple.
[1:36:16] speaker 4 (logitech): so for next steps…
[1:36:19] speaker 4 (logitech): what we probably would recommend, we'll do some outreach and have some of these discussions just, generally, kind of like they've done with the measure, where we'll just bring it up as we're out there talking to the community.
[1:36:29] speaker 4 (logitech): get generalized feedback. And then, I think what we may do is…
[1:36:36] speaker 4 (logitech): doug and I can work on some very rough drafts of ordinances and pilot programs to present to you. Question for council is, would you rather do it in a workshop setting like this?
[1:36:47] speaker 4 (logitech): which has some advantages, and then it's a little formal. So some disadvantages, because it's more difficult to get people to pay attention and attend.
[1:36:54] speaker 4 (logitech): or would you just rather have this discussion at city council meeting?
[1:37:00] speaker 4 (logitech): it's fine. It'll eventually get to you there.
[1:37:04] speaker 10 (logitech): I'm here for the flexibility.
[1:37:06] speaker 12 (logitech): we're going through…
[1:37:07] speaker 15 (logitech): okay.
[1:37:08] speaker 15 (logitech): built a matrix of those three, you know, ordinances of what was in each or whatever, and that feels like a more informal discussion to kind of go through together those? Yep.
[1:37:18] speaker 15 (logitech): but what we'll do is… and by then, you know, people who are engaged will know.
[1:37:22] speaker 4 (logitech): and we'll do a better job this next time. We'll… just to… I'd rather… I really appreciate holly's comments about, sort of, the load we're carrying at the moment, but I'm kind of of a mind that, like, once we've… we see a path here, which it sounds like we do, I'd rather just knock it out. Next workshop
[1:37:43] speaker 4 (logitech): you know, regularly scheduled one next month, we just come and next meeting, we'll be going through code sections, getting into detail, but it'll be with fully fled… well, pretty fully-fledged documents that you can say, great, and then we'll schedule them for council approvals.
[1:37:58] speaker 7 (logitech): it's easier for people to catch wind of it, I think, when… versus trying to track something that's, like, months apart, too. Like, you know, it's all kind of consecutive, but it's like…
[1:38:09] speaker 5 (logitech): so, I think what we'll probably present is, like, a decision matrix, so it'll be a question, we'll give pros and cons, and then you tell us which direction, because that will ultimately inform the ordinance, so you'll basically be writing the… think of it as a choose-your-own-adventure book, right? Like, you make one decision, and then it takes you to a different page, and then we move on.
[1:38:31] speaker 13 (logitech): okay, good. Any other issues? Thoughts?
[1:38:35] speaker 4 (logitech): no. Our code enforcement officer is here, if you want to add?
[1:38:40] speaker 4 (logitech): she'll be involved in this, I'm sure.
[1:38:42] speaker 5 (logitech): she was presenting. Oh, yeah.
[1:38:49] speaker 7 (logitech): it's easier to chase down somebody, under the influence of marijuana or alcohol?
[1:39:00] speaker 15 (logitech): talk to me!
[1:39:00] speaker 11 (logitech): he's here to make the lead, yes.
[1:39:02] speaker 13 (logitech): it's easier than all.
[1:39:04] speaker 12 (logitech): definitely easier for apple. Oh, okay. Definitely easier for me. Opposite.
[1:39:08] speaker 14 (logitech): I'm gonna be officers.
[1:39:09] speaker 13 (logitech): or the person he's chasing?
[1:39:12] speaker 9 (logitech): thanks for the officer. All right, we're good.
[1:39:16] speaker 10 (logitech): everyone good? Alright.
[1:39:19] speaker 18 (logitech): yeah. Forward.