8 companies submit applications to open a cannabis dispensary in Healdsburg

Eight companies have submitted applications — at the cost of $9,647.31 per application — to obtain one of two available permits that would allow two cannabis dispensaries to open and operate in in Healdsburg.

“Overall, I think the application process went really smoothly. We received most of the applications at the very end of the application window (which closed at the end of July),” said Andrew Sturmfels, Healdsburg’s assistant city manager. “It was a little bit of a race to the finish line, which I think is to be expected because folks wanted to submit their best application possible.“

The eight applicants are: Flora Terra, Jane Dispensary, Kure Wellness, Mercy Wellness, Off The Charts, Solful, SPARC and Thi Wellness.

Flora Terra, Jane Dispensary, Mercy Wellness, Solful and SPARC have other Sonoma County locations. All but Thi Wellness have dispensaries in various areas of California.

The cost each applicant paid covers background checks and staff and consultant time for interviews and technical scoring, Sturmfels said.

Brandon Levine, founder and CEO of Mercy Wellness, which has locations in Cotati and Santa Rosa, said the process was well thought out and detailed. He’s a co-applicant for a Dry Creek Road location with Felicia Accomazzo, a longtime Mercy Wellness employee.

“(It) looks like Healdsburg has had the opportunity to watch the other jurisdictions and they crafted a well-written ordinance with a speedy process,” Levine said.

The application review process is divided into four parts, with the first phase — the determination of eligibility — ending Monday, Sturmfels said.

The application evaluation and review portion in phase two is expected to begin Tuesday and continue until Sept. 11. Phase three, interviews of the potential dispensary owners and operators, will take place on Oct. 11 and 12.

The “discretionary merit-based” interviews will be conducted by a staff-selection committee designated by the city manager,” according to the application procedure guidelines. The staff who will be part of the committee are yet to be determined.

City Council will make its final decision at an upcoming council meeting in phase four of the process. That date is yet to be determined, but likely will happen in early November, Sturmfels said.

The decision to allow dispensaries here was made after Healdsburg voters OK’d Measure M last November. The measure established a cannabis business tax and paved the way for the ongoing permit process, which will allow two dispensaries to open in the city.

Healdsburg became the seventh city in the county to allow cannabis businesses within city limits after it ended its moratorium in March. On May 1, the City Council approved the city’s cannabis tax rates: 4% on recreation retail, 2% on manufacturing, 2% on testing and 0% on both medical and distribution.

Ahead of the vote during the May meeting, potential applicants voiced there concerns that building owners would raise their rents for dispensary operators and there were too few places to rent from.

However, city staff saw otherwise.

“We didn't get multiple applicants on any single site, which we thought would be the case and which would make things a little bit more challenging. That didn't bear itself out. It was encouraging,” said Scott Duiven, community development director.

During the process, applicants were required to submit a zoning verification letter from the city’s Community Development Department to make sure the proposed site met all zoning laws, Duiven said.

Russell Green, founder, CEO and sole owner of Kure Wellness, said it is “incredibly hard” to find a landlord and that banks and insurers are averse to renting to a cannabis business. His business has four existing locations in Lake and Mendocino counties, he added.

Despite those concerns, he said operating in Healdsburg seems like a natural expansion for him.

"The consumer local population base and the tourism potential make Healdsburg an attractive location. Also the fact that they are only issuing two means that whoever wins will have a high likelihood of success,“ Green said.

You can reach Staff Writer Jennifer Sawhney at 707-521-5346 or jennifer.sawhney@pressdemocrat.com. On Twitter @sawhney_media.