A proposed large-scale cannabis business with indoor cultivation, distribution, manufacturing and a dispensary got the green light to proceed from the Antioch City Council.
The council on Tuesday unanimously approved the proposed use permit and design review application for an independent San Francisco-based company to locate at the site of the former Kmart at 3625 E. 18th St. in northeastern Antioch, one of the city’s two designated overlay districts where such business is allowed.
Rapidx Growth, the proposed cannabis business, is expected to generate needed sales tax revenue and an operating agreement yet to be decided will likely include additional revenue based on the business’ sales, according to Forrest Ebbs, Community development director.
Applicant Hans Benson plans to locate the business, which will include a delivery service, within the current 94,338-square-foot former Kmart building, which has been vacant since 2018.
“This project is a fully vertically integrated cannabis operation that has the ability to greatly benefit the community,” Sufyan Hamouda, a compliance consultant for Rapidx Growth, said.
The applicant plans to conduct cultivation operations entirely indoors, with 87 flower rooms to occupy 47,715 square feet on two floors, for a total of 95,30 square feet of plants. The proposed non-volatile manufacturing operation will occupy some 7,785 square feet, with three shifts operating seven days a week in conjunction with the cultivation operations.
And, because it will operate out of an existing building, no new environmental review is required, according to staff. However, because its large parking lot extends to the street within 600 feet of a residential zone, the business will require a variance from the city, associate planner Kevin Scudero said.
That’s something Councilwoman Lori Ogorchock questioned, noting otherwise she did not object. She pointed out, though, that a new affordable housing complex and senior community are being built nearby and voters have previously objected to such variances.
“That is my concern that it’s within 600 feet because you have the AMCAL (housing) project right across the street,” she said. “… So, at the time when I understood this project is going to come forth, I did not know that their property line went as far as it goes. So, the 600-foot variance is a huge issue, especially for me.”
Although the property line is only 360 feet from the residential units, the proposed project site, in the back of a large parking lot, is more than 700 feet from the cannabis operations will be conducted.
“And that’s kind of why we feel the findings are justified because the business, where the actual use is being conducted, is over 600 feet away, and it just happens at this large parking field is assigned to this parcel,” Scudero said, noting the parking lot serves all the businesses on site.
The only other business currently operating in the shopping center are a gas station and car wash while a fast-food restaurant has long since been boarded up.
About 100 employees are expected to work at the new facility, which will operate seven days a week, with three shifts from 5 a.m. to 10 p.m. In addition, a nursery area will be included to allow for the propagation of immature cannabis plants specifically used for propagation and cultivation of cannabis.
Councilman Mike Barbanica said he wanted to see if the company was committed to hiring locally, including unhoused residents, but City Attorney Thomas L. Smith said that could be included in the operating agreement.
The applicant also said his business will also have two armed guards during business hours and one at night while electronic security, controlled access areas and surveillance cameras are also planned.
Mayor Lamar Thorpe, though, asked about the applicant experience and what equity measures he might take as the city has a clause requiring the any cannabis business to design its own equity program to give back to the community.
“I only asked those questions to distinguish whether you know you’re here for the long haul or you’re just a front man for somebody else to try to, you know, make money on, on these licenses,” Thorpe said.
Benson said he had experience working with cultivation and distribution facilities in Oakland and Mendocino and also has partnered with other large-scale cannabis businesses.
“I intend to work closely with the city, in being able to develop somewhat of a program that will benefit not only the community but also the industry as well,” he said.
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