Nevada County Sets Minimum Scores for Cannabis Store Applicants

NEVADA COUNTY – Businesses seeking to open cannabis stores in North San Juan or Soda Springs will have to average at least 85 out of 100 points in the county’s competitive selection process, under requirements supervisors approved unanimously Tuesday, October 20.

Applicants must also receive an average score of at least 70 percent in each of seven evaluation categories. The two requirements work together: a business with a strong overall application would be disqualified if, for example, its security plan fell below the category minimum.

The 5–0 vote sets the standard for choosing which businesses may seek approval for a store location. The county’s framework allows up to one dispensary in each of the two unincorporated communities. Selected applicants then face a separate land-use review, public hearing, and county and state permit requirements before opening.

The decision follows the board’s October 6 approval of the application process. At that meeting, supervisors questioned how the county would handle a lone applicant—or the highest-ranked applicant—whose proposal earned a low score.

At the October 6 hearing, Soda Springs property owner Dennis Carroll asked the board to pause. A full-time resident who identified herself as Colette questioned how neighborhood compatibility could be scored before a site was chosen and raised concerns about security, winter access, parking, and law enforcement response.

Supporters at that hearing argued that stores could provide year-round jobs and a local market for cannabis farms. Patricia Rockwell, co-owner of Green Gift Gardens in Penn Valley, described difficulty getting her family’s crop onto retail shelves.

A Minimum in Every Category

Matt Kelley, the county’s director of code and cannabis compliance, returned Tuesday with a staff recommendation of 70 points overall. Under that proposal, stronger scores in some categories could offset a weak showing in another.

District 5 Supervisor Hardy Bullock sought both a higher overall threshold and a minimum in each category. He pointed to security measures such as controlling access to restricted areas, training employees, and handling cash as matters a neighborhood should be able to count on. He also argued that applicants should score well on basic business and ownership information, making 85 points an achievable standard.

Board Chair Lisa Swarthout supported the increase, citing safety, security, and financial stability. Recalling her review of cannabis applications in Grass Valley, she said the three leading applicants had all scored above 80 percent.

The scorecard submitted for Tuesday’s meeting gives the greatest weight to neighborhood compatibility and enhancement, worth 25 points. That category considers community fit, communication with neighbors, community benefits, youth protections, and access to locally grown or produced cannabis.

Business qualifications and owner/operator qualifications are worth 20 points apiece. Financial disclosures, operations, and labor and employment plans are worth 10 each; security is worth five. Tuesday’s motion directs staff to adjust the scorecard’s “proficient” benchmark to reflect the new 70-percent minimum in each category.

Members of the county’s seven-member evaluation committee score applications independently, and their scores are averaged for each applicant. The highest-ranked eligible applicant for each community may advance, provided it meets both minimums and the county’s other eligibility requirements. The thresholds apply even when only one business submits an application.

Industry Support and Small-Business Concerns

During public comment on October 20, Diana Gamzon, executive director of the Nevada County Cannabis Alliance, supported raising the overall minimum to 85 percent. She said the local licensed industry wanted competent operators and high standards for businesses serving the public.

“I believe that that can strengthen the public confidence in this selection process, which I know is very important,” Gamzon said.

She also described new retail outlets as part of a local chain connecting rural cannabis farms with manufacturing, distribution, and sales within the community.

District 1 Supervisor Heidi Hall questioned the additional burden on an already heavily regulated industry.

“I think we’re asking too much,” Hall said. She said she favored a level playing field for small businesses, but would defer to her colleagues and the Cannabis Alliance.

District 4 Supervisor Susan Hoek said the lower threshold could have given a smaller operator room to develop its proposal and secure resources during the later approval process. She nevertheless supported moving forward with the higher scores.

District 2 Supervisor Robb Tucker reiterated his reservations about the broader dispensary program, but supported the stricter requirements as the process proceeded. Bullock moved approval, Hoek seconded, and all five supervisors voted yes.

What Happens Next

Tuesday’s action authorizes staff to release the revised application package for a period of at least 30 days. Applicants must identify their proposed community and describe their business, finances, operations, security, employment practices, and approach to the neighborhood. They can enter the competition before securing a particular property.

If no applicant qualifies in a community, the county will select no operator there during that round. The Community Development Agency director or a designee may open another application period and must consider at least annually whether to offer another round while selections remain to be made.

A selected applicant must obtain a use permit—a county land-use approval—for a property within the designated rural center. Eligible sites must have light industrial, business park, neighborhood commercial, or community commercial zoning.

The permit process involves site-specific environmental review and a publicly noticed Planning Commission hearing. Required development permits, an annual county cannabis permit, and state licensing also must be obtained before the store opens.

Residents can participate during the evaluation committee’s public meetings and the later hearing on a proposed location. The county posts committee agendas and supporting materials on its cannabis selection webpage.