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Cannabis Facilities (CDD)

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1. Is there a limit on the number of facilities allowed in the City?

Yes.  The number and types of cannabis businesses allowed in the City are outlined below:

• 6 cultivation permits (up to 22,000 sf, indoor)
• 15 manufacturing permits
• 3 processing permits
• 3 retail dispensary permits
• 2 distribution permits
• Testing permits
• Up to 7 non-storefront delivery permits for cultivator/manufacturer/processors

2. How many permits are available at this time?

License Type	Cultivation	Manufacturing	Distribution	Processing	Retail	Testing	Non-storefront delivery*
# open market	0	14	1	1	2	Unlimited	6
# equity set-aside	1	1	1	1	1	1	1

* Non-storefront delivery permits may only be obtained as an add-on permit to a permitted cultivation, manufacturing, or processing facility in good standing within the City of Watsonville.  

3. Do I need to make an appointment to submit my application?

No. Because of COVID-19 Shelter in Place Orders, the Community Development Department is not open to the public. All applications are required to be submitted via mail.  Applications must be postmarked by 4:00 p.m. Thursday, October 1, 2020.

4. What form of payment will the City accept?

The City will only accept payment by certified check, cashier’s check, or money order made payable to The City of Watsonville.

5. Where do I mail my completed application?

Please send your application and payment to:

City of Watsonville

Community Development Department

250 Main Street

Watsonville, CA 95076

6. I do not want to send my application through the mail. Is there a more secure way to submit my application?

Yes.  We have a utility payment drop box behind our building on Union Street in which you may drop off your application if you do not want to put it in the mail.  The utility payment drop box is checked by staff daily.  Be sure to address the application to the Community Development Department.

7. Are there separation requirements for cannabis facilities from residential and other uses?

There are separation requirements for all cannabis facilities.  The table is listed below:

Separation Requirements
	Cultivation	Manufacture	Distribution	Testing	Retail
School (K-12)*	600’	600’	600’	600’	600’
Park	600’	600’	600’		600’
Residential zone	250’	250’	250’		250’
Legal residential use	100’	100’	100’		100’
Faith based facility, licensed daycare, preschool or library	600’	600’	600’		600’

* Separation distance from K-12 schools shall be measured from property line to property line. Separation distance for cultivation facilities shall be measured from parcel line of sensitive use to nearest wall of cultivation facility. Separation distance for all other cannabis facilities shall be measured by path of travel from nearest parcel line of sensitive use to the front door of the facility. Separation distance from K-12 schools shall be measured from property line to property line. 

8. How do I find out if a potential business location meets the ordinance requirements?

You must submit an application for a Zoning Verification Letter to determine whether the potential business location meets ordinance requirements, including required separation from sensitive uses.

To download an application for a Zoning Verification Letter, click here.

9. Is there a map showing potentially eligible sites?

The separation requirements are different for cultivation, processing, distribution, testing, manufacturing, and retail sales of cannabis. Maps showing potentially eligible cannabis facility locations are listed below. Please note that determination of eligibility can only be obtained through a Zoning Verification Letter.

• Cultivation/Processing
• Retail
• Manufacture/Distribution
• Testing

10. What is the application process for a cannabis facility?

Pre-Application.  All applicants must submit a Pre-Application during the identified application period on forms provided by the City.  A physical location is not required to be identified during the Pre-Application process, but will focus on the qualifications of the applicant team, general security requirements, and operations plan, among other things. 

Interview. The City will interview up to 3 more applicants than the number of available permits for each business category.  The applicants invited to interview will be those with the most competitive Pre-Application package.  Business invited to interview must pay the additional interview fee within 5 business days of notification of interview.

Conditional Use Permit. The most competitive applicants after the interviews will be invited to apply for a Conditional Use Permit to establish a cannabis business.  The applicant will have 6 months to secure a physical location and obtain approval of all required local and state permits.

11. Can I apply for a cannabis permit at anytime?

The City will only accept applications for cannabis permits during specific application periods.

12. Do all owners, managers and employees need a criminal background check?

The revised ordinance only requires background checks for owners and managers.

13. How is the background check conducted?

Background checks will be conducted through a third party consultant during the pre-application process. The fee for each individual is $300 and paid directly to the third party.  The entire process is completed online through a secure portal. Those applicants invited to apply for Conditional Use Permits must then submit for Live Scan background checks.

14. Do all owners, managers and employees need to obtain an identification badge?

Yes, all owners, managers and employees must be issued an identification badge from the Police Department, in accordance with WMC Section 14-53.208. No owner, manager or employee shall engage in any activities associated with a cannabis business without first obtaining a valid identification badge.

15. What is involved with a Live Scan criminal history check?

The Live Scan process involves submitting fingerprints to the DOJ, which will review for criminal offender record information (CORI). CORI reports will be provided to the City of Watsonville for the sole purpose of determining eligibility for operating a cannabis facility. Those who do not meet criminal history eligibility requirements will be disqualified.

To download a request for Live Scan form, please click here.

16. How do I obtain an identification badge?

Here are the steps for obtaining an identification badge:

• Call Angie Jauregui at (831) 768-3386 to schedule an appointment.
• Download an application form.
• Turn in a completed application form to the Police Department located at 215 Union Street. 
• Bring a valid form of ID with you (e.g., driver’s license).
• A picture will be taken of the applicant.
• There is a fee per identification card.  Accepted forms of payment include:
  • Cash
  • Debit / Credit Card (No American Express) 
  • Check (payable to City of Watsonville) 
  • Money Order

17. What are the fees to apply for a Cannabis Use Permit?

The fees for the cannabis application process are:

Application	Fee
Cannabis Pre-Application	$4,200
Cannabis Interview	$3,700
Cannabis Special Use Permit	$3,738
Cannabis Administrative Use Permit	$1,508

18. What is an equity applicant?

The City of Watsonville adopted an ordinance to mitigate the barriers to equity within the commercial cannabis market place for populations that have been negatively or disproportionally impacted by cannabis criminalization and for pursuing aid from compassionate cannabis care programs. The ordinance can be found here. Equity applicants are those that have submitted documentation to the City in compliance with the Equity Ordinance that prove that they have been negatively impacted by cannabis criminalization and from pursuing compassionate care programs.

19. How do I find out if I qualify as an equity applicant?

In order to qualify as an equity applicant or equity business, please refer to the application for equity status. 

20. What benefits will the City provide to equity applicants?

One permit from each cannabis business category is set aside for equity applicants, so that equity applicants will only be competing against other equity applicants for that license.  Equity applicants are exempt from paying application fees. However, any fees associated with Live Scan or background checks are the responsibility of the equity applicant.

21. Can I sell my cannabis use permit to another business?

Cannabis Use Permits are not transferrable. They are issued to a business entity and do not run with the land. If a Cannabis Use Permit is surrendered or revoked, the City may open up an application period for applicants to apply for that permit.

22. I am considering bringing on additional investors. Do I need to contact the City?

The City requires a modification of your Use Permit anytime there is a change in ownership of the business.

23. I have an existing cannabis cultivation business in the City. What permit do I need to expand my cultivation area?

The revised ordinance allows cultivation on up to 2 parcels, up to 22,000 square feet in area.  If the expanded cultivation area or property will be financed with new investors or a new ownership structure, a new Use Permit will be required.  If you are proposing to expand using the same ownership structure and investment group, a Minor Modification to your existing Use Permit will be required.

24. I have an existing cultivation and/or manufacturing business in the City and I want to apply for a non-storefront delivery permit. What do I need to do?

The non-storefront delivery permits will only be processed during the application period and will be competitive.  Permits for non-storefront delivery for existing cultivation/manufacturing businesses will be through a Minor Modification application if the same ownership and financing structure are to be used as the existing cannabis business.

For new manufacturing/cultivation/and or processing businesses that are applying for a permit during the application period, the application must indicate all permits being applied for.

25. I want to apply for multiple permits during the application period. Do I have to pay separate permit fees for each type of permit?

Yes.  A permit application fee is required for each type of cannabis business.