DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: PROPOSED CANNABIS STOREFRONT RETAIL LICENSING PROGRAM
RECOMMENDATION
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Staff recommends the City Council:
1) Introduce an ordinance amending the Oceanside City Code (OCC) to allow up to four cannabis storefront retail licenses;
2) Introduce an ordinance amending the Oceanside Zoning Ordinance (OZO) specifying which districts would allow storefront retailers;
3) Adopt a resolution establishing new cannabis business fees and endorsing the proposed application materials, procedures, and format; and,
4) Adopt a resolution granting license priority to the City's two existing operators.
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BACKGROUND AND ANALYSIS
The City of Oceanside's Cannabis Program was established in 2018 when the City Council adopted Ordinance 18-R0199-1 to allow medical cannabis businesses, including nurseries, cultivation, manufacturing, distribution, and testing labs within City limits, subject to certain restrictions. Subsequently, on September 5, 2018, the City Council adopted Ordinance 18-OR0449-1 to allow no more than two medical cannabis non-storefront delivery licenses. On August 5, 2020, the City Council adopted Ordinance 20-OR0463-1 removing the medical-only restriction on cultivation licenses. The medical-only restriction was lifted for the balance of the allowable cannabis uses on June 16, 2021, thereby allowing businesses to grow, process, transport, or deliver cannabis for adult use.
To date, the City has issued 20 cannabis local licenses, of which three are currently active between two companies.
TABLE 1: SUMMARY OF LOCAL LICENSES
Business Type
# Licenses Allowed
# Licenses Issued
# Active Licenses
Manufacturing
No limit|101010|Distribution
No limit|101010|Cultivation
12
10|10 10|Non-storefront Retail (Type 9)|10101010|Testing Lab
No limit|10 10 10|TOTAL
-
20|1010|
In November 2020, voters approved Measure M allowing the City to impose use tax...
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