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Council also votes to place cannabis tax on ballot


By Miriam Raftery


July 14, 2020 (Lemon Grove) – By a unanimous vote, Lemon Grove’s City Council on July 7 approved a staff proposal for allocation of federal CARES Act funding. The city will receive $480,774 through the county and another $334,243 through the state. The lion’s share will be spent to help small businesses. A substantial portion will also offset city costs related to COVID-19, while a small sliver of the funds will be spent on homeless services.


Of those funds, $650,000 is allocated for a Small Business Emergency Relief Fund to help small businesses impacted by the pandemic. Eligible businesses can receive up to $10,000. The business must have a physical location in Lemon Grove with a valid business license (home offices are not eligible).  The business must have between 1 and 20 employees as of March 1, 2020.  


Franchises, chain stores, nonprofit groups, corporations, government organizations, school districts and private community organizations are not eligible.


Examples of businesses that are eligible include restaurants, bars, breweries, gyms, spas, salons, mechanics and small retail outlets. 


Funding can be used to cover COVID-19 related expenses such as back rent, outdoor dining or sales plans, unemployment insurance costs, test employees, personal protective equipment, sanitizing and other costs to enforce health regulations, expenses due to remote working, payroll l and health insurance, care of homeless individuals and more. 


An estimated $150,000 will be allocated to cover costs for keeping city employees safe from the coronavirus through personal protection equipment, remote working equipment, childcare for essential workers, sanitation, employee tests.


A very minimal amount of CARES Act funds, $15,000, is also allocated for homeless outreach and help through the city’s nonprofit partner, Home Start.


The City Council also voted unanimously to put a cannabis gross retail sales tax on the ballot in an effort to help balance the city’s budget. Although only medical marijuana is currently legal in Lemon Grove, approved by voters under Prop V, the initiative would also authorize the tax on other forms of cannabis if uses such as recreational marijuana, cultivation or manufacturing are ever legalized.




Meeting Audio Recording https://www.lemongrove.ca.gov/city-hall/city-council/city-council-meeting-audio-recordings


Item #5 – CARES ACT –CRF Grant https://www.lemongrove.ca.gov/Home/ShowDocument?id=9290 Vote was 5-0 to pass as recommended by staff.


Item #6 – Proposed Cannabis Business Gross Receipts Tax – Vote was 5-0 to pass as recommended by staff.



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