Commercial Cannabis

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While California legalized cannabis (marijuana) with the passage of Proposition 64 in 2016, it is up to each municipality to decide if and how commercial cannabis retail, manufacturing, cultivation, events, and testing should be conducted in their communities. To date, the City of Monterey has not allowed for commercial cannabis retail, manufacturing, or cultivation. In our region, the cities of Seaside, Del Rey Oaks, and Marina, and the County of Monterey (unincorporated areas of Carmel, Big Sur, Moss Landing, et al.) have allowed commercial cannabis operations. In 2020, the City of Monterey began to consider a change in policy that

While California legalized cannabis (marijuana) with the passage of Proposition 64 in 2016, it is up to each municipality to decide if and how commercial cannabis retail, manufacturing, cultivation, events, and testing should be conducted in their communities. To date, the City of Monterey has not allowed for commercial cannabis retail, manufacturing, or cultivation. In our region, the cities of Seaside, Del Rey Oaks, and Marina, and the County of Monterey (unincorporated areas of Carmel, Big Sur, Moss Landing, et al.) have allowed commercial cannabis operations. In 2020, the City of Monterey began to consider a change in policy that could allow commercial cannabis activity.

At the December 1, 2020 City Council Meeting, staff provided a Roadmap to Cannabis, with the goal of "Getting it Right the First Time." The sections and links on this page provide an outline for commercial cannabis in the City of Monterey and are based on the road map foundation.

On December 15, 2020, the City Council passed a new ordinance amending the City Code to allow agricultural testing laboratories (including cannabis testing) as a conditionally permitted use in the I-R Zoning District. Basically, this will allow prospective testing laboratories to apply for a conditional use permit for cannabis testing labs. The City Planning Commission reviews use permits through a public hearing process that includes public noticing and meetings. This new law is effective on January 14, 2021.

For more background on California Cannabis Legislation, please visit the California Cannabis Portal at https://cannabis.ca.gov/ While the legislation begins at the state level, each City has the opportunity to enact its own Cannabis laws and regulations based on many factors, including what's the best for a particular community as a whole. The City of Monterey began this process in 2018.

  • Council Approves Selection Committee Recommendation of Four Permits

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    At the May 21, 2024 Monterey City Council Meeting, Council approved the selection committee recommendation to issue storefront retail cannabis business permits, contingent upon successful obtainment of a zone clearance. The four businesses are: 1) Monterey Responsible and Compliant Retail LLC, 2) Element 7 SF4 LLC, 3) Monterey Pacific Retail Holdings, Inc., and 4) OTC Monterey, LLC. Adopted Resolution are Nos. 24-083, 24-084, 24-085, 24-086, and 24-087 C.S. Staff also conducted a random drawing through which applicants selected zones as follows: Element 7 SF4 LLC selected the Downtown zone (CB2); OTC Monterey LLC selected the Lighthouse zone (CB1); Monterey Pacific Retail Holdings, Inc. selected the Cannery Row zone (CB3); and Monterey Responsible and Compliant Retail LLC selected the North Fremont zone (CB4). The business applicants will now go through the zone clearance process, and find properties within their zone. The

    Recording (start at 3:15:12) of the May 21, 2024 Monterey City Council Meeting Agenda Item #15 and Agenda Item #16. Details of the application process will be posted at monterey.gov/cannabis.

  • Storefront Retail Application Update and May 21, 2024 City Council Meeting

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    Phase 3 of the storefront retail application process concluded on Friday, May 3, 2024, when the Selection Committee completed their interviews with the top 8 applicants. The Selection Committee, consisting of the Mayor and Vice Mayor, selected the 4 applicants they will recommend for approval to City Council. The remaining 4 applicants will be placed on the waitlist.

    The top 4 and the waitlist will be presented to City Council for approval at the May 21, 2024 regular meeting. The ranking will be available in the agenda report published before the meeting. Once available, this may be found at monterey.gov/agendas.

    At the May 21, 2024 meeting, a drawing will be held to determine which zones the selected cannabis businesses will operate in. These zones include the areas of Lighthouse Avenue, Cannery Row, Downtown (Old Monterey), and North Fremont Street. This topic will come up at the 7:00 p.m. session. Information on how to participate can be found at monterey.gov/meetings.

  • February 6, 2024 City Council Meeting and Application Process Timeline

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    On February 6, 2024, City Council had the opportunity to receive an update on the applications received so far, as well as current crime and revenue trends related to the cannabis industry. Council decided to move forward with the application process according to schedule.

    The timeline for the Storefront and Non-Storefront retail application process is as follows (subject to change):

    Phase 1: Completion Check/Determination of Eligibility
    January 29 - February 14
    Phase 2: Application Evaluation and Review
    February 14 - March 29
    Phase 3: Interviews
    March 29 - April 12
    Phase 4 - Final Recommendation and Award of Permits
    April 12 - May 10



  • Storefront Retail Application Update and February 6, 2024 City Council Meeting

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    The application window for Storefront Retail Cannabis Business Permits officially closed on January 29, 2024. The City received 13 applications from a diverse group of applicants that includes experienced cannabis retailers with multiple locations throughout California, regional cannabis retailers, and independent cannabis retailers.

    On February 6, 2024, City Council will receive an update on the application process, as well as an update on cannabis industry revenue and crime trends. Council will then have the opportunity to consider a 180 day pause on processing Storefront Retail Cannabis Business Permits. Council will also consider adopting a resolution to authorize the use of Live Scan technology to assist the City in implementing its cannabis business permit regulations.

    The agenda for the February 6, 2024 City Council meeting may be found at: https://isearchmonterey.org/OnBaseAgendaOnline/Meetings/ViewMeeting?id=5796&doctype=1

  • Updated Application Procedure Guidelines Document Published

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    The Storefront & Non-Storefront Retail Cannabis Business Permit Application Procedure Guidelines and Review Criteria document has been updated to reflect new language pertaining to PDF File #5. This update may be found on page 5 of the document in the subsection titled "Flash Drive Content."

    The previous language stated the following:

    "PDF File #5 – Documents relating to other licensed cannabis facilities operated by the applicant, including copies of active state cannabis business license(s), tax compliance documentation (i.e. City business license tax certificates, State sales tax seller’s permits, and recent financial statements and tax returns), annual budget of operations, and list of current prices for all products and services provided, as may be applicable."

    The updated language states:

    "PDF File #5 – [UPDATED 1/26/2024] Documents relating to other licensed cannabis facilities operated by the applicant, including copies of active state and local cannabis business license(s), local business license tax certificates, State sales tax seller’s permits, and a list of current prices for all products and services provided, as may be applicable."

    The updated document may be found at monterey.org/cannabis. Please note that additional questions and answers have been added to the FAQ document as well.

  • Live Scan Deadline To Be Extended

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    The City is aware of an issue with the Live Scan process that is preventing applicants from adequately completing this requirement. Due to the delay caused by this issue, the deadline for completing the Live Scan requirement is being extended to a date that will be announced soon. This does not affect the deadline for any other Storefront and Non-Storefront Retail Cannabis Business Permit application materials. That deadline is still 4:00p.m. on 1/29/2024. A solution and more details will be provided soon.

    Updates will be provided on haveyoursaymonterey.org/cannabis and monterey.org/cannabis when available.

  • Updates to the Cannabis Ordinance, Live Scan process, and FAQ

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    A few updates to the ongoing cannabis business permit process:

    • On January 16, 2024, City Council adopted an update to the Cannabis Business Ordinance. This includes clarifying information about the zone clearance and zone of preference selection process, a statement of "No physical address for the proposed cannabis business shall be listed on the retail permit application,” and an update to the definition of "Youth Center."
    • There has been an update to the Live Scan process. All Live Scans must include both the DOJ and FBI portions to be considered in compliance with the Live Scan application requirement. Unfortunately, MPD will not be able to conduct Live Scans for this application process prior to the 1/29/2024 deadline. All applicants should visit https://oag.ca.gov/fingerprints/locations to find a DOJ-approved Live Scan facility where they can accomplish this task (some of these locations may not be able to conduct the FBI portion of the Live Scan, so please verify that your agency of choice is able to do so in advance). The Live Scan form provided on this page has been updated to include additional prefilled information.
    • The FAQ section of the webpage is updated weekly and may be found at https://files.monterey.org/Document%20Center/CommDev/Planning/Cannabis/Cannabis-FAQ.pdf.

    For the most up to date information including links to all of the above, please be sure to visit monterey.org/cannabis.

  • City of Monterey Now Accepting Applications for Commercial Cannabis Business Permits!

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    The City of Monterey is pleased to announce that the application window for Commercial Cannabis Business Permits has officially launched. If you or your party is interested in applying for a Storefront or Non-Storefront Retail Permit, Temporary Cannabis Event Permit, Testing Laboratory Permit, or Out-of-City Retail and Distribution Permit, you will find all required forms and pertinent information at https://monterey.org/cannabis.

  • December 15, 2023 City Council Special Meeting

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    On December 15, 2023, City Council will hold a Special Meeting from 2:00pm to 5:00pm. The agenda includes a minor update to the Commercial Cannabis Ordinance. Two (2) amendments are being proposed by staff. One amendment will include a change to the definition of "Youth Centers" to exclude video arcades and similar amusement park facilities in an effort to expand opportunities for commercial cannabis businesses in the available zones. The other amendment clarifies that after the City Council has selected the top four (4) proposals that the City would conduct a lottery to identify the order by which the top four commercial cannabis business applicants choose their preferred zone from the available zone(s).

    The agenda report on this topic provided by City Staff may be found here: December 15, 2023 Agenda Report

    The ordinance update may be found here: December 15, 2023 Ordinance Update

  • City Council Adopts Cost Recovery Ordinance and Resolution Updating Master Fee Schedule

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    At the December 5, 2023 meeting, City Council passed the second reading of an ordinance to amend Monterey City Code section 19-103, the Schedule of Fees and Services Charges, to fully recover the cost of administering the Cannabis Business Ordinance and Rental Inventory Ordinance, as well as a resolution to amend the City's 2023-2024 Master Fee Schedule. These changes will be effective beginning January 4, 2024.

    The list of fees for all commercial cannabis business permits can be found in the City's updated FY23-24 Master Fee Schedule located here: FY2324 Master Fee Schedule.

Page last updated: 22 May 2024, 02:36 PM