A communication transmitted from Yi-An Huang, City Manager, relative to Awaiting Report Item Number 22-51, regarding Cannabis Industry Information

C I T Y O F C A M B R I D G E Community Development Department IRAM FAROOQ Assistant City Manager for Community Development SANDRA CLARKE Deputy Director Chief of Administration KHALIL MOGASSABI Deputy Director Chief Planner 344 Broadway Cambridge, MA 02139 Voice: [phone removed] Fax: [phone removed] TTY: [phone removed] www.cambridgema.gov To: Yi-An Huang, City Manager From: Iram Farooq, Assistant City Manager for Community Development Date: September 9, 2022 Re: Policy Order #9, dated August 1, 2022, regarding Cannabis Industry Information In response to the above referenced policy order, we submit the following. Subsequent to the legalization of non-medical cannabis in Massachusetts, the City Council amended the Cambridge Zoning Ordinance in December 2018 to expand previous provisions for medical marijuana dispensaries and establish a system of rules for establishments selling cannabis for medical use, non-medical use, or both. The Cannabis Business Permitting Ordinance, Chapter 5.50 of the Cambridge Municipal Code, adopted by the City Council in September 2019, created a local permitting requirement for cannabis businesses, including cannabis retail stores, cannabis cultivators, cannabis product manufacturers, cannabis microbusiness, cannabis courier establishments, cannabis delivery operator establishments. The goal was to ensure that the public interest was protected and to prioritize cannabis businesses owned by communities disproportionately harmed during the war on drugs. Priority A Applicants Through the Cannabis Business Permitting Ordinance, the City Council provided initial permitting preference for cannabis businesses to certain priority applicants. For a two- year period, the only applicants eligible for a Cannabis Business Permit were Priority A, Economic Empowerment (EE) applicants. On September 23, 2021, the City Council voted to extend the permitting preference for EE applicants for an additional year and to also provide a one year permitting preference period for the three other Priority A applicants: • Social Equity (SE) applicants • Women or Minority Owned Businesses (as certified by the Commonwealth and/or by the City of Cambridge) • Cambridge residents earning less than fifty percent (50%) of Area Median Income (AMI) EE and SE are designations created under the Commonwealth of Massachusetts Cannabis Control Commission (CCC) Equity Programs. Both are designed to assist applicants from communities that have been disproportionately harmed by the criminalization of marijuana and are designed to positively impact those communities. The CCC’s EE program is presently closed. The SE program is open and accepting applications for one of four training tracks -- Entrepreneur, Core, Entry, and Ancillary.

Page 2 of 4 More information on the EE and SE programs and how individuals or businesses can apply for these designations is available through the CCC at https://masscannabiscontrol.com/equity-programs/#for-more-Information Priority B Applicants Registered Medical Dispensaries (RMDs) within Cambridge that were licensed or registered by the Massachusetts Department of Public Health to sell cannabis products in a Cannabis Retail prior to July 1, 2017, constitute Priority B applicants under the Cannabis Business Permitting Ordinance. Priority B applicants will be eligible for a Cannabis Business Permit when the extended priority period expires on September 23, 2022. Overview of the Local Approval Process The process for opening a Cannabis Business requires three City approvals: • Local Approval 1 (CBP) – Cannabis Business Permit • Local Approval 2 (SP) – Planning Board Special Permit1 • Local Approval 3 (HCA) – Host Community Agreement Review & Execution2 In addition, applicants need approvals from the Massachusetts Cannabis Control Commission (MACCC). More information on the State marijuana license process is available at: https://www.cambridgema.gov/iwantto/applyforacannabisbusinesspermit Cannabis Business Applicants Thirteen EE applicants have either received or have applied for their Cambridge Cannabis Business Permit. Five additional applicants have applied for a Cannabis Business Permit. The status of all applications, accurate through August 22, 2022, is provided on the next page in Table-1, Cannabis Business Applicants List. 1 A Cannabis Courier Establishment use does not require a special permit 2 Host Community Agreements are required by State law

Page 3 of 4 Business Assistance Community Development Department, in collaboration with the Inspectional Services Department, Law Department, and City Manager’s Office, provide the following support to cannabis business permit applicants: • Pre-application meetings with CDD staff to provide a single point of contact who can guide applicants through the various steps of the City permitting process • Guidance on applying to the Cannabis Business Permit, including a Cannabis Business Permit Timeline and Permit Process Guide. This information is available at https://www.cambridgema.gov/iwantto/applyforacannabisbusinesspermit • Waiver of Retail Cannabis Business Permit fee ($350) for EE applicants for the first year after the application is approved. Business Name Location Local Approval Status In Construction In Operation CBP SP HCA Economic Empowerment (Priority A) Yamba Market Central Square X X X X Western Front Central Square X X X X Blue River Terps East Cambridge X X X X The Boston Garden East Cambridge X X X X Green Soul Organics Central Square X X X X KG Collective North Cambridge X X X X Yamba Boutique Harvard Square X X X X Cookies Harvard Square Harvard Square X X X Sankofa East Cambridge X X X Western Front Harvard Square X X X Green Republic Inman Square X Under review Healing Greene Porter Square X Under review 130 Mass. Ave. Porter Square Under review Social Equity (Priority A) None Cambridge Residents (Priority A) None MWBE-owned (Priority A) Bhari, Inc. (MWBE) Alewife X X Under review Herbwell (MWBE) Porter Square X X Porter Square Remedies (MWBE) Porter Square X X X Priority B Applicants Revolutionary Clinics II (RMD) Alewife Not eligible until priority period expires Other Wellman Farm East Cambridge Not eligible Table-1: Cannabis Business Applicants List

Page 4 of 4 • One-on-one technical assistance to applicants Local Tax Revenue The FY23 Adopted Budget includes $500,000 in anticipated tax revenue related to the current and anticipated establishments to be opened in FY23. The first full quarter tax payment will be received at the end of September.