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HomeMy WebLinkAboutPhase 1 hypothetical examples and explanation for mm provisioning scoringExamples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 1 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 1.Marketing, Advertising and Promotion Applicant provides several marketing, advertising, and minor minimization examples. (1)State the packaging will be child-proof and (2)not include any cartoon-like images, and they will (3)not advertise in public spaces, such as billboards or bus stops, in order to avoid exposing minors. All advertisements will be through WeedMaps, opt-in SMS messaging and emails, Leafy, and relying on word-of-mouth. Would also be focusing on community education to help spread the word. Want to educate citizens, especially minors, about drugs and prevention. • 4 = More than two Marketing, Advertising and Promotion and minor minimization (MM) examples provided; with comparatively excellent detail; Beyond the minor minimization the applicant would include the demographics that they would be advertising, and marketing to, along with through details as to how the intend to advertise, and market their company. How and why the applicant is choosing this strategy and how they intended to implement it. • 2 = One MAP and MM example provided (satisfactory detail); Only one example was included with the application with details on how, and why this strategy will be utilized. Page Length of High Quality Plan Typically 4 or more pages. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 2 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 2.Tangible Capital Investment in the City of Lansing Will be purchasing several, or have already purchased, building for their provisioning center and 2 grows totaling $672,000. Will be updating and improving each building for $412,000 altogether. Provides addresses, square-footage, and purchase agreements for each building. Has information on local companies they will be using to aid in improving the buildings. States that money will coming from personal accounts and business accounts for each center • 15 = Excellent: applicant states they will own the facility or leased property is owned by member(s) of the application team, robust discussion of sister companies, capital amount, tax revenue, complete support documentation. At least $1 million in TCI; 3 points will be deducted for the following: • Investing less than $1 million in the City between this provisioning center and other businesses. • Leasing building instead of owning • No discussion of a grow or processor • Lack of detail Because of the City’s declared interest in promoting economic development, including job creation and training, Tangible Capital Investment shall include proposed medical marihuana establishments. Factual data must be presented to support each claimed proposed medical marihuana establishment. Based upon the information provided by the applicant, the City may consider whether the proposed medical marihuana establishment is definite, feasible, or speculative. The Clerk’s Office defines a tangible capital investment as an asset that has a physical form. Page Length of High Quality Plan Length will vary depending on length of purchase agreements or leases. Actual TCI narrative usually 3-4 pages in length. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 3 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 3.Job Creation (Integrated System) Overall number of jobs created 25 jobs at each provisioning center with 12 being part-time at each center. 180 jobs at two grow facilities. Totaling 205 jobs between this center and grows. Grows will be 1,500 plants each. Includes information on employee benefits. (Vacation and sick days, health insurance, and bonuses). Has employee training manual and handbook. Plan to advertise about jobs specifically within Lansing. States there will be General Managers, Assistant Manager Shift Leaders, Inventory Manager, Quality Assurance Manager, and Sales Associates. • Example of Job description: GM oversees provisioning center operations, and ensuring that the company policies are being followed. Coordinates the hiring of all employees and maintains the paperwork. Works with other • 5 = More than 200 City, Region, and State (CRS) jobs, comparatively excellent detail provided about job types, local hiring priority, shifts, etc.; Constructions, tradesmen, and other temporary jobs do not count toward this total. Lists each job type, along with a description of the duties, and the salary or dollar amount per hour. • 4 = > 100 jobs, good detail, or > 200 jobs but lacking detail • 3 = 20 to 100 CRS jobs, comparatively good detail provided about jobs; If the application has through detail as shown above, but will be creating < 100 jobs. Based upon the information provided by the applicant, the City may consider whether the proposed medical marihuana establishment is definite, feasible, or speculative. Page Length of High Quality Plan Could be anywhere from 5-15 pages depending on how many different types of positions are being created. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 4 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx managers to ensure that departments are preforming to top standards, and if not works with them to bring them back up to top performance. They are expected to maintain a professional demeanor and have the ability to work in an inclusive environment. The qualifications are listed below. If hired the compensation will be a yearly salary of $50,000. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 5 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 4.Financial Structure and Financing Provides bank statements for business showing $500,000. Provides CPA attestation of net worth for $5 million. Provides proof of liquid assets worth $1 million. If needed they have access to a line of credit for $1.5 million. Already has ownership of the building. Has sufficient money for start-up costs and improvements for the building. Includes estimates from building companies to supplement their improvements. Has all costs outlined within the budget. • 3 = Description details how capital is linked to jobs, net worth, bank/other statements confirming funding availability, complete and clear support documentation; State how they will be funding all operations. Provide proof of where funding is coming from and how much is included. Can include: • Tax returns • Bank statements • CPA attestations • Net Worth Explanations on how this money will be used in conjunction with the business plan, expenses, asset liquidity and other costs. • 1 = Proof provided of capital access but not tied to business plan; Page Length of High Quality Plan 1-2 pages Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 6 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 5.Plans to Integrate Facility with Other Establishments Plan to work with a grow (states business name and location). It is listed to have 1,500 plants. • 2 = Integration with large grower facility (either > 10K sq. ft. or 1,000 plants); Must list who they will be working with, whether it be with themselves, or an outside group. Needs to have either square footage of facility or number of plants. • 1 = Integration with small grower operation (< 1,000 plants or 10K sq. ft.), OR a good plan to get product elsewhere, OR doesn’t specify the number of plants or grower facility square footage; Only state that they will integrate, but do not include business’ details. Such as name, plant amount, or square footage. Page Length of High Quality Plan About 1-2 paragraphs Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 7 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 6.Charitable Plans and Strategies Includes a letter of intent to donate 3% of all sales at the end of the year to the WWF. Includes signed letter of intent to organization. State will get involved with community projects such as food drives, DARE, coat and toy drives. Will encourage all employees to volunteer (give days off to employees). • 4 = At least one targeted charitable organization example, dollar amount $50K or more (or based on % of sales/profits), support documentation (e.g., confirmation of payment, commitment letter signed by organization); Must include either signed confirmation of payment to charity, or a signed letter of intent to donate to the organization. • 3 = At least one organization example, dollar amount between $25k and <$50k (or based on % of sales/profits), no payment confirmation or executed payment agreement; • 2 = Discussion on intent to donate to organizations, but do not include a dollar amount, and payment confirmation or agreement. Page Length of High Quality Plan Usually a few paragraphs to a 1 page, not including any letters or other official documents to show payment or agreement Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 8 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 7. Number of Jobs at the Provisioning Center Category Thresholds: 1 = < 6 jobs, insufficient details; 2 = < 6 jobs, sufficient details; 3 = 6 jobs, sufficient details; 4 = > 6 jobs insufficient details; 5 = > 6 jobs, sufficient/good details. State that there will be 13 total jobs at this location. 5 will be part-time employees. Lists each job type, along with a paragraph or bullet point description of the duties. The lowest paid employee will be paid $17/hour. Includes salary for managers. Includes information on employee benefits such as sick days, bonus’s, vacation days, health and dental insurance for full-time employees. Employee education plan outlining how they will teach employees to safely handle product, interact with the public, and learn about the effects of MM, including the strains they intend to have in stock. Mock shift schedule, employee handbook, and employee expectations. Specific to this center’s application. Other locations are not included. 5 = > 6 jobs, sufficient/good details. Must be at more than 6 full-time positions within that specific center. Must include: • Distinction between full-time and part time • Job titles and duties • Benefits • Salary or amount/hour • Details about training • Hiring practices 2 = < 6 jobs, sufficient details; Page Length of High Quality Plan Varies, and may be part of other materials Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 9 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 8.Amount and Type of Compensation (PC) Applicant indicates all employees will earn at least $20 per hour. Will be paid every two weeks. Included within the budget. • 2 = Higher pay and compensation detail (e.g., % earning at least $15/hour); Must be at $15/hour or above. • 1 = Lower pay and/or compensation detail; Page Length N/A 9.Percent of Employees Earning At Least $15/Hour) (PC) Applicant indicates all provisioning center employees will earn > $15/hour. • 3 = 100%; • 2 = >75% to <100%; • 1 = Up to 75% of workforce would earn at least $15/hour Page Length N/A Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 10 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 10.Projected Annual Budget and Revenue (PC) Includes several pages of projected budget. Has line items of all expenses, and sales (1.4 million in expenses, 1.8 in sales). Explain their numbers have come from previous years of owning a medical marihuana center, and having several small businesses between all stakeholders. • 2 = Response includes specific annual revenue and expense numbers for the provisioning center of interest with some level of line item detail in a clear, understandable, and logical manner; • 1 = Have outline of a budget Does not include detailed list of projected costs and gains, only give a broad overview. No line items. Does not state where they got their numbers from. Page Length Several pages of budget and Pro forma tables and at least a page of explanation. Typically will have at least a year into the future, preferred to have several. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 11 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 11.Sufficient Financial Resources Provides litigation compliance verification forms for all stakeholders. While there were some issues, they have been resolved. Proves they have well over $100,000 in the bank and over $1 million in liquid assets. • 5 = Excellent, high level of detail provided, no money owed to city/bankruptcy history, stable business financially, at least $100k net worth/in bank, litigation compliance verification forms provided for all stakeholders mentioned in the application, and proof of other assets and/or financial support source; Provides bank statement of business, CPA attestation, or any other documentation with proof of financial resources. • 3 = Satisfactory details provided with up to one litigation blemish, and litigation compliance form(s) missing; See #25 Litigation History for more detail on litigation compliance verification. Page length Varies depending on documentation given Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 12 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 12.Business Experience Five stakeholders have several years in the medical marihuana industry, totaling 12 years together. Indicates decades of other applicable experience (retail, real estate, local business management, and legal). • 5 = 10 or more years of team-combined experience in MM industry (e.g., Provisioning Center, Grower, Processor operations); Caregivers experience is discounted 25% because not commercial experience. • 4 = 7 to < 10 years MM industry experience; • 3 = 5 to < 7 years MM industry experience (or 20+ years related industry); Page Length Depend on number of stakeholders and length of their resumes. 13.Content and Sufficiency of Information; Professionalis m of submitted documentation including clear labeling of required items Clear and understandable table of contents. All information is accounted for and easily findable. Found short and long term goals in business plan. • Top Score: 5 Points • Clear and easy to navigate to find criteria information • Inadequate Table of Contents ( 1 pt deduction) • Inadequate Short and Long term goals ( 1 pt deduction) • Letters to cure were sent because application did not fully comply with the Lansing ordinance ( 1 pt deduction) • Incomplete information provided (1 pt deduction) Page Length Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 13 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx N/A 14.Buffering between residential zoned areas and establishment Building is 1542 ft. from residential zoning, includes fencing between their property and those around them. Has landscaping close to fencing. • 5 = Radius of 1320 ft. (1/4 mile) of the facility does not touch any residential zoning • 3 = Residential zoning does not touch the property line of the med marijuana establishment • 1 = Residential Zoning on 2 or more side of the property line By reviewing Zoning Map, and confirmed by using Google maps to determine distance. Page Length N/A Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 14 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 15.Increased traffic on side streets will be scored lower No exit of side streets, signs on driveways indicating traffic, more than enough parking for building Review by Public Service by Traffic Expert ( 5pt weight scale) • Traffic Patterns • Driveways • Adequate Parking • Circulation on/off • ADA Page Length N/A 16.(50%) Entrance and exit on main streets, adequate parking not on residential streets (50%) Quality of Security Plan Offsite video storage, uniformed security guard at entrance, security camera layout included, metal detector upon entering, panic buttons, several safes, and waiting room for patients. Includes safety training for employees Description for all equipment, and security personal Traffic Plan Review by Public Service by Traffic Expert ( 5pt weight scale) • See above, same score used twice Security Plan • TIER 1 = 5 points Well written plan, appears to meet or exceed Lansing City Ordinance requirements • TIER 2 = 2 points Meets minimum requirements, may require some correction. Examples of common missing info Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 15 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx No exit of side streets, signs on driveways indicating traffic, more than enough parking for building = 5 points • Boiler plate not customized • No off-site video storage • No or minimal description of equipment • No safe • Lack of entry barriers Based upon State requirements for a Security Plan, and is reviewed by the Lansing Police Department. Page Length of High Quality Most plans would be above 30 pages. 17.Plan to meet with neighborhood organizations, Application indicated that they are planning to meet with neighborhood organizations, business association, crime watch, or other neighborhood organizations Detailed Plan: 1 Point Page Length Typically half a page in length. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 16 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 18.Improveme nts made or proposed to building The SEV of the building is $120,000 and list the improvement budget at $500,000. They are investing 417% back into the building. Percentage of the dollar amount invested in upgrading the location in comparison to the SEV (State Equalized Value) of property 3 pt – Investing 125% over the SEV value 1 pt Investing 25%- 74% over the SEV value Usually listed with the budget and explanation of improvements included either after the budget or in the business plan. Doesn’t include furniture, or inventory Improvements made specifically to building or property that cannot be removed. Page Length: N/A 19.Plan to minimize/elimi nate traffic Closing one driveways in order to direct patrons away from heavy traffic. Including signs that direct drivers to turn a specific way when leaving in order to mitigate accidents or traffic back-ups. Detailed Plan: 1 A narrative description to reduce car traffic We did not assess building or floor plans to determine if they had a traffic plan. It had to be included in the narrative. Page Length Varies Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 17 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx 20.Plan to minimize/elimi nate noise Sound-dampening fences between them and other lots. Landscaping separating the lots Disallowing loitering outside of the building or in the parking lot. Any equipment to be used would not be creating loud noise. • Detailed Plan = 2 Points Included information about how they will limit inside AND outside noise. We did not assess building or floor plans to determine if they had a noise plan. It had to be included in the narrative. Page Length Usually about a 1-2 pages. Longer if includes estimates and specs for any equipment. 21.Plan to minimize/elimi nate odor Includes full list of equipment, what it does and how it will be implemented into the building. Has a staff training outline on how to prevent odor and how to respond to any system issues. Has scheduled air quality checks. • Detailed Plan = 3 Points Page Length Typically several pages long with lists of equipment and any supplemental information such as staff training, or odor tracking system. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 18 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx All product will be stored in vault with carbon filters. Packaging will attempt to mitigate odor. A grow is included on site, but access will be through several doors, including one air-tight. 22.LPD Complaints No calls • No calls/new build - 4 pts • 1-5 calls - 3pts Regardless of property ownership, facilities that have a history of police incident are a less desirable location for the City. Page Length N/A 23.Demo of Regulatory Compliance No tax issues, trash and grass fines but were unrelated to center. Max Points: 4 Points Review of individual and business history with Treasury, Building Safety, Code Compliance, Zoning and compliance with MMFLA. • Major tax issue = deduct 2 pts for each issue • Minor tax issue or code compliance = deduct 1 pt for each issue • Insurance submission failure=Missing more than one element=deduct 2 pts Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 19 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx • Missing 1 or more elements = deduct 1 pt Page Length N/A 24.Litigation History Litigation forms were submitted for all stakeholders, some history was disclosed. Suits involved debt collection, and landlord/tenant disputes. All cases were resolved. Full points were awarded. Example of 2 point disclosure: 2pt - All stakeholders have a complete litigation history with no or minimal issue LARA litigation form or application attestation is not sufficient. LARA is not sufficient because it does not go back far enough in history. Can include signed form that states they have no history, or signed form disclosing any issues. Does not have to be notarized or legal form. Examples of High Scores – Phase 1 Category Mocked Up Scoring Insights Examples Comments Pg 20 S:\Clerk_Staff\Med Marihuana Commission\MM Commission Procedures-Support Material\Phase 1 hypothetical examples and explanation for mm provisioning scoring.docx Applicant states that they were involved in a court case, (states name of case), with a previous land-lord over a rent dispute. The case was pertaining to the land-lord stating the tenant had not paid rent in full and was still owing the land-lord. The judge ruled in favor of the applicant and the case was resolved. Example of 1 point disclosure: There is no active business litigation history against the applicant or business, nor has there been in the last 10 years. Must provide something even if there is no history. Needs to be clear and straightforward information about business litigation. Page Length Varies depending on history