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A G E N D a Thursday, August 22, 2019 7:00 Pm Riverside Township Hall – Room 30 27 Riverside Road, Riverside, IL 60546

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A G E N D a Thursday, August 22, 2019 7:00 Pm Riverside Township Hall – Room 30 27 Riverside Road, Riverside, IL 60546 LEGAL NOTICE: SPECIAL MEETING OF THE VILLAGE OF RIVERSIDE ECONOMIC DEVELOPMENT COMMISSION Notice is hereby given that the Economic Development Commission of the Village of Riverside, Cook County, Illinois, will hold a Special Meeting commencing at the hour of 7:00 p.m. on Thursday, August 22, 2019 in Room 30 of the Riverside Township Hall, 27 Riverside Road, Riverside, Illinois, for the purpose of reviewing the economic impact and other effects of allowing recreational use cannabis businesses and making a recommendation to the Village Board. The Agenda for the Special Meeting follows: SPECIAL MEETING A G E N D A Thursday, August 22, 2019 7:00 pm Riverside Township Hall – Room 30 27 Riverside Road, Riverside, IL 60546 1. Call to Order 2. Roll Call Chairperson Kristine Herbst Commission Members Jack Buoscio Brian Plain Suzanne Kahle Jennifer Fournier Bridget Doherty 3. Public Comment: 4. Discussion and recommendations to Staff and Village Board on the economic impact and other effects of allowing recreational use cannabis businesses in Riverside. 5. Adjournment: Residents and visitors are welcome to all meetings of the Economic Development Commission. Public comments are welcome on any topic related to the business of the Public Body at Regular and Special Meetings. Comments may be made at any time. Individuals who wish to comment must be recognized by the Chairperson and then speak at the podium, beginning by identifying themselves by name and address. Any individual with a disability requiring a reasonable accommodation in order to participate in the meeting should contact Village Manager Jessica Frances at least five working days in advance of the next scheduled meeting at (708) 447-2700 ext. 254. cc: Village Manager Jessica Frances, Village Trustee Elizabeth Peters, Landmark and Website MEMORANDUM—COMMUNITY DEVELOPMENT DEPARTMENT To: Chairperson Herbst & Members of the Economic Development Commission From: Sonya Abt, AICP, Community Development Director Re: Discussion and recommendation to Staff and Village Board on the economic COMMUNITY impact and other effects of allowing recreational cannabis businesses in DEVELOPMENT Riverside Date: August 13, 2019 Background Public Act 101-0027, which creates the Cannabis Regulation and Tax Act (the “Act”), was signed into law on June 25, 2019. By legalizing the sale of recreational cannabis in Illinois effective January 1, 2020, the Act will have immediate and significant impacts on local governments. The Village Board has begun discussing the topic and has directed the Economic Development Commission to make a recommendation on the economic impact of allowing recreational cannabis businesses in Riverside. Specifically, concern was raised whether having a recreational cannabis dispensary or other cannabis use would be consistent with the Village’s brand. Discussion 1. The Village’s brand begins with our Positioning Statement and Brand Manifesto. These were created in 2016. Positioning Statement: As one of the nation’s first planned suburban communities, and one of only two villages in the state designated an arboretum, Riverside is truly the hidden gem of suburban Cook County. Its incomparable design, pastoral setting and unparalleled small-town ambiance offers its residents, business owners and visitors alike the chance to experience the kind of safe, neighborly, American small-town life that has all but disappeared in today’s modern world. Brand Manifesto: There was a time when the word community was more than just a place, it was a feeling, a sense of belonging to something that was truly special and all your own. In the Village of Riverside that sense of community is still alive and well in the winding streets and the green open spaces first laid out by Fredrick Law Olmsted over 140 years ago. From its unique architectural heritage to its warm, neighborly small-town ambiance, everything about this truly unique community tells its residents, business owners and visitors alike that they are experiencing something that is truly one of a kind. 2. Based on these, the Village went through a process to articulate the brand which included creating a logo and tagline. MEMORANDUM—COMMUNITY DEVELOPMENT DEPARTMENT 3. The duties of the Economic Development Commission are: (A) To examine the retail businesses and the business districts within the village and to determine the best uses for retail spaces. (B) To prepare and recommend to the village board a plan accomplishing the two (2) goals of encouraging commercial development within the village and improving the village's tax base and sales tax revenue. (C) To serve as the primary business conduit for the village by encouraging residents and nonresidents to shop in Riverside, and to develop plans for attracting business and patrons to the village through use of fairs, exhibitions, advertising, external improvements to the business districts, and other activities. (D) To prepare and recommend to the village board, from time to time, ordinance changes involving zoning, parking restrictions, licensing, or other changes which will enhance or otherwise benefit the commercial districts and activities within the village. (E) To work closely with the chamber of commerce to coordinate cooperative ventures and activities to benefit the business districts and commercial activities within the village. (F) To undertake such further studies and projects regarding economic development within the village as may be referred to it, from time to time, by the village board. 4. Cannabis Taxes. In addition to the State Cannabis Purchaser Excise Tax, the Act allows municipalities to, by ordinance, impose a “municipal cannabis retailers occupation tax”. This tax shall not exceed 3% of the purchase price and if imposed the tax shall only be imposed in 0.25% increments. This additional municipal sales tax will NOT apply to medical cannabis sales. This tax will be collected in addition to all other occupation, privilege or excise taxes. So this new cannabis retailers tax would be in addition to the state sales tax, and the Village’s Non Home Rule (NHR) Sales Tax and the Village’s Additional 1% Business District Sales Tax if the retailer is located within the BD. The total sales tax to the Village on recreational cannabis sales could be 5-6% depending on if the Village opts for the max local cannabis tax of 3% and if the dispensary is located within the Harlem BD. MEMORANDUM—COMMUNITY DEVELOPMENT DEPARTMENT 5. Anticipated Revenues: Village Revenue The Village’s average 1% municipal sales tax revenue collected annually over the past 3 years has been $259,739. The Village’s largest sales tax revenue generator paid $50,623 in the 1% municipal sales tax in 2018. (The next largest paid $34,887.) Based on the tax paid we can estimate that the largest generator’s revenue was approximately $5 million in 2018. The next largest about $3.5 million. National Retailer Revenue The average sales of a Starbucks or Dunkin Donuts store is about $900,000 per year. The Village’s sales tax revenue from a national brand store like this would be $27,000. Cannabis Revenue In 2018 medical marijuana sales in IL were $91.1 million with only 55 dispensaries statewide. An analysis by the Illinois Economic Policy Institute estimates $1.62 billion in sales if recreational cannabis in Illinois if legalized and regulated at levels similar to Colorado. Other sources estimate that IL medical dispensaries are averaging $2 million + in sales annually in the Chicago region. Nationally the average dispensary’s annual sales revenue is about $3 million; in more urban areas, the revenue can be upwards of $10 million annually. Based on a more conservative number of $2 million in sales, the Village could take in approximately $100,000 in sales/cannabis tax revenue (5%) from one dispensary. Annual Sales: $2,000,000 Municipal Cannabis tax (3%) $60,000 Municipal sales tax (1%) $20,000 NHR Sales tax (1%) $20,000 Total Potential Tax $100,000 ($120,000 if located in BD) 6. Location. The Act restricts that dispensaries may not be located closer than 1,500 ft. to the property line of an existing dispensary. Riverside shares borders with North Riverside (north of 26th Street) and Berwyn (east side of Harlem). The Village’s major commercial zoning district (B1) is located along our borders with these municipalities. These communities also have commercial areas adjacent to our border. If a dispensary were to locate on Harlem Ave. in either of these municipalities it could limit or prohibit a future dispensary from being able to locate within Riverside. MEMORANDUM—COMMUNITY DEVELOPMENT DEPARTMENT The Village has three (3) commercially zoned areas along Harlem Ave.: 26th Street to Longcommon, Addison to Lawton and Blackhawk to Ogden. There is 2,100 ft. between B1 district at Longcommon and B1 district at Addison. There is 1,600 ft. between the B1 district at Lawton and B1 district at Blackhawk. The central business district (B2) encompasses the north and south sides of the BNSF tracks and extends approximately 1,500 feet from east to west. MEMORANDUM—COMMUNITY DEVELOPMENT DEPARTMENT The B2 includes Forest Ave. from Kimbark east to Longcommon. East Ave., E. Burlington from Longcommon east to St. Mary’s/Green Parking Lot and E. Quincy from Riverside Rd. east to 54 E. Quincy as well as the Metra Station, Township Hall and the Library. 7. Jobs/Economy. According to the Illinois Economic Policy Institute’s study, they anticipated 19,500 jobs would be created as part of legalizing cannabis; this new industry would then create an additional 4,100 jobs at restaurants, stores and other local businesses. They estimate the states’ economy would grow by an estimated $1 billion annually from the legalization of cannabis. 8. Additional information: • Zoning action needs to be taken by the Village Board one way or the other regarding permitting or not permitting recreational cannabis businesses.
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