DATE: May 20, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: CONSIDERATION OF A CONDITIONAL USE PERMIT (CUP25-00003) FOR A CANNABIS CULTIVATION FACILITY WITHIN 25 HOOPHOUSE STRUCTURES LOCATED AT 1319 SLEEPING INDIAN ROAD - SOUTH MORRO HILLS 47 - APPLICANT: SOUTH MORRO HILLS 47, LLC
RECOMMENDATION
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Staff and the Planning Commission recommend that the City Council confirm issuance of a Class 1 "Existing Facilities" Categorical Exemption per the California Environmental Quality Act (CEQA); and adopt a resolution approving CUP25-00003 to allow an indoor, mixed-light cannabis cultivation facility within 25 hoop house structures at 1319 Sleeping Indian Road.
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BACKGROUND AND ANALYSIS
The project site is a 1.88-acre portion of the Campbell Ranch property, comprised of four parcels totaling 78.61 acres, located at 1319 Sleeping Indian Road in the South Morro Hills Neighborhood Planning Area. The property has a General Plan land use and zoning designation of Agricultural (A). Surrounding properties are zoned Agricultural and are primarily used for agricultural and/or single-family residential purposes. A map of the project site is provided in Attachment 1.
The project site currently hosts a variety of agricultural operations, including production of industrial hemp, ornamental plants, succulents, and box-trees. Armstrong Growers is the main tenant of the property and occupies existing greenhouse structures on a separate portion of the property. Lusso-Adelanto, which shares much of the same ownership as South Morro Hills 47 (Applicant), conducts hemp cultivation within twenty-five existing hoop houses which total 43,375 square feet. There are no residential uses on the property.
All cannabis facilities allowed inside city limits (cultivation, nursery, testing lab, manufacturing, distribution, retail) are subject to a dual-licensing process. First, an applicant must secure a local license pursuant to Chapter ...
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