Promising Practice: Shared-Use Manufacturing Facilities

Adolph Ward is an Oakland native and technical assistance consultant who participated in the drafting of the ordinance that launched Oakland’s Cannabis Equity Program. In 2021, the City of Oakland funded a team of equity applicants, the Oakland Equity Collective (OEC), to purchase a property to advance shared-use manufacturing opportunities for both the OEC team and a rotation of six additional equity manufacturers.

Adolph Ward is an Oakland native and technical assistance consultant who participated in the drafting of the ordinance that launched Oakland’s Cannabis Equity Program. In 2021, the City of Oakland funded a team of equity applicants, the Oakland Equity Collective (OEC), to purchase a property to advance shared-use manufacturing opportunities for both the OEC team and a rotation of six additional equity manufacturers. Mr. Ward, Director and Founding Member of OEC, helps manage the property, cannabis business operations, and staffing at the shared-use manufacturing facility.

In Oakland, shared-use manufacturing facilities are available only to equity applicants. Equity manufacturers wishing to take advantage of Oakland’s shared-use model must enter into a sublease agreement with an approved shared-use equity manufacturer, coordinate a use schedule, and then submit applications for local and State licenses.

California’s state licensing authority originally developed the shared-use manufacturing license to provide additional opportunities for small-scale manufacturers. Shared-use manufacturing facilities expand opportunities in tangible ways, increasing options for both local jurisdictions and cannabis businesses. It’s similar to how commercial kitchens operate. A single, fully equipped kitchen is licensed and maintained by one operator, but multiple small food businesses share the space. This lets each business avoid high startup costs and instead, those expenses are distributed across many users.

“In many cases you’re looking at $100,000 minimum to enter the cannabis space. It could take up to a year to obtain a license if not longer. People want to enter [the cannabis industry] and have no idea how. This model reduces all of that. You don’t need to hold onto a piece of real estate for twelve months, you don’t need to wait a year to obtain a license, and you most certainly do not need $100,000 to start operations.”

There is an appetite among cannabis businesses for a different operational model, one authorized by State regulations that saves money, promotes cooperation, and lives up to the promise of a more equitable cannabis industry. Mr. Ward sees shared-use manufacturing facilities as a perfect opportunity to create a cannabis business that values both equity and community. These facilities have the potential to foster education among business owners and workers, streamline manufacturing operations, and create a real community of like-minded product makers.

“Working in close proximity to other operators affords people the opportunity to learn. Learn how to use different pieces of equipment, different types of cannabis manufacturing, learn about packaging and compliance, and share resources. It’s very important when we’re undercapitalized, we try to come together as much as possible to lower the burdens we all experience and use our collective, limited resources toward the benefit of the greater community.”

The shared-use model is also ideal for jurisdictions who wish to decrease the footprint of cannabis manufacturers while reducing barriers to entry and the timeline for licensure, and for licensees interested in creating a collaborative and equitable businesses.

“The heavy lifting is done. The business model exists. I would like to see other municipalities take advantage of the hard work we’ve done here and copy and paste this model to bring other opportunities to operators across the state and across the country.”

Ultimately, it is up to local jurisdictions to authorize the shared-use manufacturing model. Cities like Sacramento and Long Beach have facilitated shared-use manufacturing facilities by including options for applying for a shared-use license in their Application Checklist or having a separate webpage for details on shared-use facilities with a link to the application for primary licensees.

Additional information about DCC’s Type S license is available in the California Code of Regulations, Title 4, Chapter 8 Article 2.

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