Petaluma’s potential first legal pot dealer steps forward

The city is considering proposals for the first cannabis delivery services to operate in Petaluma.|

Editor’s note: This is part two in a series about Petaluma cannabis entrepreneurs.

A Casa Grande High School graduate has high hopes of becoming the first local entrepreneur to open a cannabis delivery service in Petaluma.

Jay Donnellan, 25, is poised to submit an application to score a place as one of two delivery-only services allowed to operate inside the city limits under the Petaluma’s new regulations. Since December 2016, he’s co-owned and operated Napa-based Wine Country Cannasseurs, a medical cannabis delivery service supplying flowers, topicals, tinctures, pre-rolled joints, edibles, vape cartridges and other products that he’s working to relocate to the city where he was raised.

“Sonoma County in general has been a huge supporter of the cannabis movement, and a lot of the cannabis industry has formed around Sonoma County, especially Santa Rosa, and we feel like Petaluma is doing a great job by opening the door,” the Napa resident said.

The city council spent eight months shaping its cannabis policies before landing on a conservative approach in which brick and mortar dispensaries would be banned, but an unlimited number of businesses that manufacture edible and topical cannabis products and test quality as well as two delivery services would be allowed.

The city has also adopted a set of regulations governing cannabis, including charting out six business parks where those ventures could be located, and setting a $3,500 initial permit fee. Businesses interested in breaking into Petaluma’s nascent market will need to apply, pay fees for permits and background checks and obtain a state cannabis license, the city’s Economic Development Manager Ingrid Alverde said. The state is currently issuing temporary licenses good for 120 days with proof of a permit or license from the corresponding local jurisdiction, according to the California Bureau of Cannabis Control.

Delivery services will be selected through a request for proposals process, and a call for submissions was issued March 12. As of Monday evening, the city had received no proposals for delivery services or applications for manufacturing businesses, but the request for proposals packet had been downloaded about a dozen times, Alverde said. Proposals are due April 3, and after an interview process scheduled for the week of April 9 to 13, business could be chosen by April 19, according to the city’s timeline.

“We’re hoping to find an experienced business with a high likelihood of success in meeting security requirements, delivering quality products and staying in business for the long term,” Alverde said.

Donnellan hopes his business will be just that. He has a background in the hospitality and hotel sector, as well as the music industry.

He partnered with 24-year-old Napa native Preston Bruner, who had been operating a delivery business “in the gray area” prior to legalization of recreational cannabis after the November passage of Prop. 64. The two obtained a lawyer, began to pay taxes, established their brand and quickly grew their customer base and menu of cannabis offerings, he said.

“Being from Sonoma County, I grew up with a lot of people that decided to choose growing and all that as a career, and I was able to network through a circle of friends to meet some really good growers,” he said. “Quality has been my No. 1 focus - whatever is the highest quality product on the market, we try to grab that and we’re really good at working with other big name brands.”

The company has about 10 drivers and several managers, and during the summer, drivers made an average of 70 deliveries a day, with the average order totaling between $100 and $150, Donnellan said. They have about 1,800 patients on file, though some of those are tourists seeking cannabis locally while in town, he said.

The team is in the process of leasing an 8,000-square-foot building in northeast Petaluma, a facility that could potentially be converted to a public retail space for cannabis if the city changes its rules, Donnellan said. For now, the business is focused on medical cannabis, Donnellan said. He’s waiting to ink the lease before submitting a proposal to the city.

“We started this business not really knowing how many people relied on cannabis for everyday needs, and the more we got involved the more we started realizing that for a lot of patients, cannabis really helps and improves their quality of life,” he said.

Moving from Napa to Petaluma would also pave the way for growth, with the potential to bring on several more employees, Donnellan said. The team hopes to cross-promote products with high-end restaurants and wineries, highlighting the coupling of quality food, beverages and cannabis.

The city’s cannabis sector is heating up on the heels of home invasions, where eight masked robbers last week burst into Eugenia Drive homes in the early morning hours seeking marijuana. Though that cannabis-related violence sent a shock wave through the city, Donnellan said he’s taking all possible precautions to make sure his business is secure.

There would be no signage on the building and drivers will make deliveries in unmarked cars with small amounts of cannabis and cash, he said. The facility, which would not be open to the public, would have secured entry, cameras and shatter-proof windows.

Police Chief Ken Savano, who will also review the applications, said he’s looking for businesses that fit with the community. He said that cannabis businesses are “no different in many ways” than other potential high-value targets for criminals, like banks and convenience stores.

“The community should realize that we’re obviously present, we’re proactive about having a presence on the street to deter crime and we’re proactive working with the businesses community, regardless of the nature of the business to make sure safety measures are in place,” he said.

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