DATE: August 6, 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
On June 18, 2025, staff presented a proposed cannabis storefront retail licensing program to the City Council for adoption. The proposed licensing program would allow up to four cannabis storefront retail licenses in various commercial and industrial districts across the City; additionally, the City's two existing cannabis operators would be granted preference for licenses and offered a streamlined review process upon meeting minimum qualifications.
The City Council voted 3 - 2 (Sanchez, Weiss - no) to modify the proposed program. Specifically, the City Council requested that staff:
1. Eliminate the requirement to retain a location in the local licensing process;
2. Institute strict separations of cannabis storefront retailers from schools; and
3. Reward businesses with a proven track record of abiding by collective bargaining agreements (CBAs) in the local license evaluation criteria.
Further background on the cannabis storefront retail licensing program, as well as the City's Cannabis Program as a whole, can be found in the June 18, 2025 staff report (Attachment 5).
To implement a cannabis storefront retail licensing program with the above modifications, staff proposes five related actions ("Storefront Package") for City Counc...
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