Commercial Cannabis

At the November 7, 2023 City Council Meeting, the Monterey City Council approved the first reading of the cannabis ordinance. City Council will consider the second reading at the November 21, 2023 City Council Meeting. Staff will recommend adopting a resolution to amend the Master Fee Schedule to add a retail cannabis application on December 5, 2023.

• PDF of the slide presentation from the November 7 meeting
• Watch this Item #23 on the November 7, 2023 agenda

The Planning Commission, on October 24, 2023, adopted a resolution recommending to the Monterey City Council they adopt the draft commercial cannabis ordinance. The ordinance comes before the Monterey City Council for a first reading on Tuesday, November 7, 2023, at the evening session beginning at 7:00 p.m.

Tentative steps following the Tuesday, November 7 City Council Meeting: If City Council approves the first reading, the second reading will come before the Council at the Tuesday, November 21 meeting.

The City Council meeting agenda is available at https://isearchmonterey.org:

See Public Hearing item #23 on the agenda, 1st Reading by Title Only of an Ordinance to Amend the City Zoning Ordinance to Authorize and Regulate a Limited Number and Type of Cannabis Businesses and Rezone Multiple Parcels to Include a Cannabis Business Overlay District; Exempt from CEQA per Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183 - https://isearchmonterey.org/OnBaseAgendaOnline/Meetings/ViewMeeting?id=5742&doctype=1

The Planning Commission on October 24, 2023 adopted a resolution recommending to the Monterey City Council they adopt the draft commercial cannabis ordinance. The ordinance comes before the Monterey City Council for a first reading on Tuesday, November 7, 2023 at the evening session beginning at 7:00 p.m. The agenda report will be available prior to the meeting at https://isearchmonterey.org/.

On Tuesday, October 24, 2023, the Planning Commission will consider updates to the City’s Zoning Map to create Cannabis Business Overlay areas. Updates to the City’s Zoning Map require review through the Planning Commission.

Previously, on June 6, 2023, the City Council decided to approve a project description for cannabis that – in addition to operational regulations – includes four storefront retailers (one in each CB zone), one non-storefront retailer (consistent with Senate Bill 1186), and two temporary events at the Monterey County Fairgrounds. No storefronts would face Alvarado Street, nor cross streets with Lighthouse Avenue, Foam Street, or Wave Street. The associated Cannabis Business Overlay areas are mapped within the following figure for consideration.

Further review by the City Council will occur after the Planning Commission has considered these updates to the latest Zoning Map. A date has not yet been chosen for City Council review.

At the June 6, 2023 City Council meeting, City Council with a 4-1 vote, approved (with one change) the project description for cannabis businesses and temporary cannabis events. The one change is regarding the number of temporary cannabis event permits that may be issued. Per the draft ordinance on page 7, item C7, "No more than five temporary cannabis event permits may be issued by the city
per calendar year. Two of the five event permits shall be designated to occur in connection with the California Roots Festival and the Rebels and Renegades Music Festival. The remaining three permits shall not be for more than one day each." Council changed this by removing the additional three permits, however the two designated events were approved, California Roots Festival and the Rebels and Renegades Music Festival. Both events will have to apply for the permit once that process is open.

The agenda report for last evening's meeting is posted on isearchmonterey.org at https://isearchmonterey.org/OnBaseAgendaOnline/Documents/ViewDocument/AGENDA%20REPORT.DOC.pdf?meetingId=5429&documentType=Agenda&itemId=38190&publishId=24046&isSection=false. The meeting video is set at the 6:26:56 timestamp when this item was discussed.

Here is an updated Cannabis Roadmap Timeline dates, posted May 2, 2023.

Updated Cannabis Roadmap Timeline with adjusted dates

During the 7:00 pm session of the May 2, 2023 City Council meeting, the Monterey City Council will discuss the approval of the project description for Cannabis businesses so that the Community Development Department can start Environmental Review under the California Environmental Quality Act (CEQA).

This item is listed as #7 on the May 2, 2023 City Council Agenda.

Here's an updated Cannabis Roadmap Timeline, posted August 24, 2022.

On June 29, 2022, the Council adopted Resolution No. 22-097 C.S. placing a ballot measure on the November 8, 2022 ballot. The ballot measure will ask the voters: Cannabis Business License Tax. Shall the measure to impose an annual cannabis (marijuana) business license tax of up to 8% of gross receipts from retail businesses, 2% of gross receipts from testing laboratories, and 6% of gross receipts from other cannabis businesses, with an additional tax on highly potent products, generating about $604,000 to $1.3 million a year, with all funds staying local and subject to audit, and effective until repealed by voters, be adopted?

Full Text of the Proposed Ordinance
City Attorney's Impartial Analysis
No primary arguments for or against the measure were received.

Visit monterey.org/cityclerk for more information.

Update on July 25, 2022: Resolution 22-097 at the July 19, 2022 City Council Meeting. This Resolution amended and reinstated Resolution 22-087 to revise the ballot measure questions to reflect the maximum tax rates the City can impose on commercial cannabis activity. READ THE FULL RESOLUTION

Ballot Measure Language: Cannabis Business License Tax. Shall the measure to impose an annual cannabis (marijuana) business license tax of up to 8% of gross receipts from retail businesses, 2% of gross receipts from testing laboratories, and 6% of gross receipts from other cannabis businesses, with an additional tax on highly potent products, generating about $604,000 to $1.3 million a year, with all funds staying local and subject to audit, and effective until repealed by voters, be adopted?

Staff is now working on a regulation ordinance that will be up for review next.

Resolution 22-087 was passed by the City Council at the June 29, 2022 City Council Meeting. The July 19, 2022 City Council will also have a Cannabis item on the agenda to finalize the wording for the ballot measure. The Agenda Report for the July 19 Council Meeting will be posted at least 24 hours prior to the meeting.