(1) Accept the $75,000 public safety contribution from RD Canyon Lake LLC (“Higher Ground”); and (2) adopt Resolution No. 2026-31 allocating the funds to the Police Department budget for public safety purposes.

On January 5, 2026, the City issued a Letter of Intent identifying RD Canyon Lake LLC (“Higher Ground”) as the preferred applicant for the City’s available commercial cannabis retail permit pursuant to Canyon Lake Municipal Code Chapter 4.20.

The determination was based upon the City Manager’s finding that Higher Ground’s proposal provided the “best value” to the City, including the applicant’s operational experience in multiple jurisdictions and the proposed location within the Canyon Lake Towne Center.  Additionally, as part of their proposal, Higher Ground proposed a $75,000 contribution to support public safety services within the City to assist in addressing public safety needs associated with the administration and oversight of commercial cannabis operations and to support ongoing law enforcement services within the community.

Staff recommends that the City Council formally accept the contribution and allocate the funds to the Police Department budget for public safety-related expenditures.