City OKs $300 for cannabis licenses

The Tucumcari City Commission split 3-2 on Thursday while approving a resolution that sets a $300 fee for each cannabis license issued.

The vote on the resolution occurred with little discussion during the regular meeting. Commissioners Christopher Arias, Mike Cherry and Mayor Ruth Ann Litchfield voted to approve the measure. Ralph Moya and Paul Villanueva, who favored a $400 fee instead, voted against it.

Commissioners discussed the fee structure again during a 30-minute work session Thursday before the meeting, but it became apparent minds had been made up well before.

Commissioners had originally considered a $400 fee for a license to sell or produce legal recreational marijuana and related products in Tucumcari for sales expected this spring. Most commissioners lowered that to $300 because of the recommendation of a lawyer who said the city might be vulnerable to lawsuits if cannabis fees were much higher than other business license fees. Commissioners also said they were wary of a higher fee creating an atmosphere of city government not being business-friendly.

City manager Mark Martinez, citing the recommendation of Santa Fe attorney Jared Najjar who recently guided corrections to the city’s flawed cannabis ordinance, urged a $300 fee for such licenses in Tucumcari.

Citing the need for city government to be “fair and equitable,” Najjar had said the fee should not be more than $50 than the most expensive license, which is $250 for selling liquor.

“My goal is to keep the city out of litigation,” Martinez said of his recommendation.

During a previous commission meeting, a cannabis license applicant indicated she would sue if the city adopted a $400 fee.

Martinez pointed out cannabis license fees would have a “minimal” effect on the city’s budget even if it were set at $400. At best, he said, the city might hire one additional part-time employee.

Martinez also disputed the notion cannabis licenses would add to the city employees’ workload.

Answering a question by Villaneuva, City Clerk Anjelica Gray said the city has issued 179 business licenses in the past year, and renewals for them don’t come due all at once. She said the city has received 10 to 12 applications for licenses to sell cannabis products.

During the work session Thursday, Litchfield recommended cannabis license fees be set at “$300, at most.”

Cherry said, “I think it’s fair and equitable at $300.”

Arias, who did not attend the work session, expressed similar sentiments at previous meetings.

Moya, who proposed a $400 fee, insisted the administration and enforcement of cannabis licenses would create more of a workload to understaffed and underpaid city employees.

“This is an industry that’s only going to be flourishing,” Moya said. “Four hundred dollars is nothing. It’s reasonable, and we can justify it.”

Moya also is an applicant for a cannabis license for site on West Tucumcari Boulevard.

Villanueva appeared to waver for his support for a higher fee during the work session, noting “$300 might be fair.” But he sided with Moya during Thursday’s vote.

Other business

• Commissioners officially gave Martinez permission to proceed with hiring a city events coordinator.

Martinez said the position would help organize two events – Tucumcari Rawhide Days and New Mexico Music Showcase – that were in danger of being discontinued due to “burned out” previous organizers.

Martinez said the coordinator also would organize free concerts and events and possibly revive the long-dormant Pinata Festival. It also would promote regular city activities, such as workers patching potholes.

Martinez said other cities, such as Santa Rosa and Silver City, have such a position. He said he would negotiate the salary and draw up the contract. He said he met with several festival organizers and Scott Crotzer, executive director of the Tucumcari/Quay County Chamber of Commerce, about the idea.

Commissioners generally supported the proposal, though Litchfield complained about not hearing about it until shortly before Thursday’s meeting.

• Commissioners approved the use of about $34,000 in lodgers tax funds to pay for 10,000 Tucumcari visitor guides, 30,000 tourism rack cards, billboards and an advertisement in ROUTE Magazine through the city’s tourism marketing director.

• Commissioners approved a contractor agreement with File Construction of Albuquerque for the $1.14 million Hoover water tank project. The work will be paid with the state’s drinking water revolving fund.

• Commissioners approved a task order for design and rehabilitation to a runway at Tucumcari Municipal Airport. The cost is about $41,900, which is expected to be covered by Federal Aviation Administration funds.

• The commission approved the appointment of Charles Benavidez as alternate municipal judge. Gray said he was the only applicant and met its qualifications. Moya abstained from voting because he said Benavidez is married to his niece.

Comments, reports

• Martinez said during his city manager’s report he expressed optimism the New Mexico Legislature would approve a significant hike in law enforcement officer protection funds of $1,500 for each officer and $90,000 per each police station.

• Martinez said the New Mexico Municipal League may hire grant writers, which would help find new funding sources for municipalities.

• Martinez expressed concern about a bill in the legislature that would give automatic pay raises to New Mexico State Police officers. He said that would put municipal police departments at a competitive disadvantage. He urged pay raises for municipal officers, as well.

• Martinez said it appeared the city would receive so-called “junior funds” from the Legislature to replace the roof on the Tucumcari Recreation Center.

• Moya said during commissioner comments he wanted city officials to “get serious” again about finding a use for the long-closed Princess Theatre.

• Moya asked Martinez to look into residents’ complaints about a nuisance property in the 500 block of South Third Street.

• Litchfield asked Martinez to talk to the city’s code enforcer after she received complaints about rudeness.

• Martinez was asked whether it was a conflict of interest for a hired lobbyist to serve both the city and county governments. He said he would check into that. The city and county’s lobbyist is Clovis-based Clinton D. Harden and Associates.