HomeMy WebLinkAbout04-09-2025 PC Agenda Packet
Planning Commission
AGENDA
Wednesday, April 9, 2025, 6:00 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
Planning Commission meetings can be viewed remotely on Channel 20, the City’s YouTube Channel,
and on the City’s website under the Public Meeting Agendas web page. Attendees of City Council or
Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply,
visit Parking for Public Meetings for more details.
INSTRUCTIONS FOR PUBLIC COMMENT:
Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):
Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990
Palm Street, San Luis Obispo, California, 93401.
Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your
email, please include the date of the meeting and the item number (if applicable). Emails will not
be read aloud during the meeting.
Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the
agenda item number you are calling about, and leave your comment. Verbal comments must be
limited to 3 minutes. Voicemails will not be played during the meeting.
*All correspondence will be archived and distributed to members, however, submissions received
after the deadline may not be processed until the following day.
Public Comment during the meeting:
Meetings are held in-person. To provide public comment during the meeting, you must be
present at the meeting location.
Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy,
Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire
to utilize electronic visual aids to supplement their oral presentation must provide display-ready
material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's
Office at cityclerk@slocity.org or (805) 781-7114.
Pages
1.CALL TO ORDER
Chair Cooley will call the Regular Meeting of the Planning Commission to order.
2.ELECTION OF CHAIR AND VICE CHAIR
Recommendation:
As required by the Planning Commission Bylaws, hold the annual election of
Chair and Vice Chair to a one-year term.
3.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
At this time, people may address the Commission about items not on the
agenda. Comments are limited to three minutes per person. Items raised at this
time are generally referred to staff and, if action by the Commission is
necessary, may be scheduled for a future meeting.
4.CONSENT
Matters appearing on the Consent Calendar are expected to be non-
controversial and will be acted upon at one time. A member of the public may
request the Planning Commission to pull an item for discussion. The public may
comment on any and all items on the Consent Agenda within the three-minute
time limit.
4.a CONSIDERATION OF MINUTES - MARCH 12, 2025 PLANNING
COMMISSION MINUTES
5
Recommendation:
To approve the Planning Commission Minutes of March 12, 2025.
4.b REQUEST TO ABANDON A 10-FOOT-WIDE PUBLIC RIGHT-OF-WAY
BETWEEN 1998 AND 2006 SAN LUIS DRIVE IN THE R-1 ZONE
(STAB-0759-2024)
9
Recommendation:
Adopt a Draft Resolution which finds that the abandonment of a 10-foot-
wide public right of way between 1998 and 2006 San Luis Drive is in
conformity with the General Plan and recommend that the City Council
approve the abandonment by adopting a Resolution of Vacation.
5.PUBLIC HEARING
Note: Any court challenge to the action taken on public hearing items on this
agenda may be limited to considering only those issues raised at the public
hearing or in written correspondence delivered to the City of San Luis Obispo at,
or prior to, the public hearing. If you wish to speak, please give your name and
address for the record. Please limit your comments to three minutes; consultant
and project presentations limited to six minutes.
5.a REVIEW OF TEXT AMENDMENTS TO MUNICIPAL CODE SECTION
17.86.080 (CANNABIS) OF TITLE 17 (ZONING REGULATIONS)
(CODE-0051-2025)
23
Recommendation:
Adopt a Resolution recommending the City Council introduce and
approve an Ordinance to amend Section 17.86.080 (“Cannabis”) of Title
17 (“Zoning Regulations”) of the Municipal Code to clarify specific land
use and operational requirements for commercial cannabis activity.
6.COMMENT AND DISCUSSION
6.a STAFF UPDATES AND AGENDA FORECAST
Receive a brief update from Deputy Community Development Director
Tyler Corey.
7.ADJOURNMENT
The next Regular Meeting of the Planning Commission is scheduled for April 23,
2025 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm Street, San
Luis Obispo.
LISTENING ASSISTIVE DEVICES for the hearing impaired--see the Clerk
The City of San Luis Obispo wishes to make all of its public meetings accessible
to the public. Upon request, this agenda will be made available in appropriate
alternative formats to persons with disabilities. Any person with a disability who
requires a modification or accommodation in order to participate in a meeting
should direct such request to the City Clerk’s Office at (805) 781-7114 at least
48 hours before the meeting, if possible. Telecommunications Device for the
Deaf (805) 781-7410.
Planning Commission meetings are televised live on Charter Channel 20 and on
the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda
related writings or documents provided to the Planning Commission are
available for public inspection on the City’s website:
https://www.slocity.org/government/mayor-and-city-council/agendas-and-
minutes.
1
Planning Commission Minutes
March 12, 2025, 6:00 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
Planning
Commissioners
Present:
Commissioner Bob Jorgensen, Commissioner Steve Kahn,
Commissioner Eric Tolle, Vice Chair Dave Houghton, Chair
Justin Cooley
Planning
Commissioners
Absent:
Commissioner Sheryl Flores, Commissioner Juan Munoz-Morris
City Staff Present: Deputy Community Development Director Tyler Corey, Deputy
City Attorney Sadie Symens, Megan Wilbanks, Deputy City Clerk
_____________________________________________________________________
1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Planning Commission was called to
order on March 12, 2025 at 6:00 p.m. in the Council Chambers at City Hall, 990
Palm Street, San Luis Obispo, by Chair Cooley.
2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public Comment:
David West
--End of Public Comment--
3. CONSENT
3.a CONSIDERATION OF MINUTES - FEBRUARY 26, 2025 PLANNING
COMMISSION MINUTES
Motion By Commissioner Kahn
Second By Commissioner Jorgensen
To approve the Planning Commission Minutes of February 26, 2025.
Ayes (4): Commissioner Jorgensen, Commissioner Kahn, Vice Chair
Houghton, and Chair Cooley
Abstained* (1): Commissioner Tolle (*Per the Bylaws, abstentions without
a conflict of interest are counted as a “Yes” vote)
Absent (2): Commissioner Flores, and Commissioner Munoz-Morris
CARRIED (5 to 0)
Page 5 of 54
2
4. PUBLIC HEARING
4.a CONSIDERATION OF THE 2024 GENERAL PLAN ANNUAL REPORT
Assistant Planner Ethan Estrada presented the staff report and responded
to Commission inquiries. Additionally, Homeless Services Manager Daisy
Wiberg, Utilities Special Projects Manager Shawna Scott, Fire Chief Todd
Tuggle, and Transportation Manager Luke Schwartz responded to
Commission inquiries.
Chair Cooley opened the Public Hearing
Public Comment:
None
--End of Public Comment--
Chair Cooley closed the Public Hearing
Motion By Commissioner Kahn
Second By Vice Chair Houghton
Receive and file the 2024 General Plan Annual Report for final review and
acceptance by the City Council.
Ayes (5): Commissioner Jorgensen, Commissioner Kahn, Commissioner
Tolle, Vice Chair Houghton, and Chair Cooley
Absent (2): Commissioner Flores, and Commissioner Munoz-Morris
CARRIED (5 to 0)
5. COMMENT AND DISCUSSION
5.a STAFF UPDATES AND AGENDA FORECAST
Deputy Community Development Director Tyler Corey provided the
following update of upcoming projects:
The March 26, 2025 meeting will be cancelled due to lack of items.
A Notice of Cancellation will be published one week p rior to the
meeting date.
Tentatively scheduled for the April 9, 2025 meeting, is review of
proposed amendments to the City's Cannabis Regulations and a
proposed abandonment of a 10 foot public right-of-way between
1998 and 2006 San Luis Drive.
Page 6 of 54
3
Vice Chair Houghton, who also serves on the Diablo Canyon
Decommissioning Engagement Panel, expressed a desire to work with staff
to brainstorm ways to engage with San Luis Obispo community members
and provide accurate information about the decommissioning process.
6. ADJOURNMENT
The meeting was adjourned at 7:00 p.m. The next Regular Meeting of the
Planning Commission is scheduled for March 26, 2025 at 6:00 p.m. in the
Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY PLANNING COMMISSION: XX/XX/2025
Page 7 of 54
Page 8 of 54
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REQUEST TO ABANDON A 10-FOOT-WIDE PUBLIC RIGHT-OF-WAY
BETWEEN 1998 AND 2006 SAN LUIS DRIVE IN THE R-1 ZONE (STAB-0759-2024)
BY: Ivana Gomez, Cannabis Business
Coordinator FROM: Tyler Corey, Deputy Director
Phone Number: (805) 781-7147 Phone Number: (805) 781-7169
Email: igomez@slocity.org Email: tcorey@slocity.org
APPLICANT: Ben Kulick REPRESENTATIVE: MBS Land Surveys
RECOMMENDATION
Adopt a Draft Resolution which finds that the abandonment of a 10-foot-wide public right
of way between 1998 and 2006 San Luis Drive is in conformity with the General Plan and
recommend that the City Council approve the abandonment by adopting a Resolution of
Vacation.
1.0 COMMISSION'S PURVIEW
California Streets and Highway Code (CSHC) § 8313 requires the local planning agency
to review and determine whether the location, purpose, and extent of a propose d street
vacation or abandonment, conforms to the adopted General Plan and to make a
recommendation to the City Council. The City Council will consider whether to adopt a
Resolution of Vacation abandoning the right of way, recorded with the County Recorder.
2.0 SITE DATA
Adjacent Property Owners Ben Kulick (Applicant), Michael Copeland
Property Owner City of San Luis Obispo
Representative MBS Land Surveys
Adjacent Zoning Right-of-way adjacent to R-1 (Low-Density
Residential) and C/OS (Conservation/Open Space)
Zones
Adjacent General Plan Land
Use
Right-of-way adjacent to Low Density Residential
(LDR) Zone
Site Area Right-of-way abandonment area is 1,667 sq. ft.
Adjacent Parcels APN 001-251-009 (R-1) and APN 001-251-010 (R-1)
Environmental Status Categorically exempt under Class 1, Existing
Facilities (Section 15301(c) of the CEQA Guidelines)
Meeting Date: 4/9/2025
Item Number: 4b
Time Estimate: N/A
Page 9 of 54
Item 4b
STAB-0759-2024
Planning Commission Report – 4/9/2025
2
Figure 1: Zoning Map Image Showing Project Site and Neighboring Properties
3.0 PROJECT INFORMATION
3.1 Background
The City Planning Commission approved the acceptance of the 10-foot public way
between 1998 and 2006 San Luis Drive on January 7, 1947, as shown in the Map of Tract
No. 43 (Attachment B). The City Clerk recorded this acceptance on January 10, 1947,
dedicating the land for public use. According to the Preliminary Title Report, the easement
was originally intended to provide public access to San Luis Obispo Creek for recreational
activities such as boating, fishing, swimming, and hunting.
However, the City has not utilized the public way for its intended purpose for at least five
consecutive years, qualifying it for summary abandonment under California Streets and
Highways Code (CSHC) § 8333. This means the easement may be abandoned by
resolution of the Council without holding a public hearing on the abandonment.
Additionally, in accordance with CSHC § 8334.5, there are no in-place public utility
facilities in use that would be affected by the abandonment.
Page 10 of 54
Item 4b
STAB-0759-2024
Planning Commission Report – 4/9/2025
3
3.2 Project Description
The City of San Luis Obispo Public Works and Community Development Departments
have received a request from adjacent property owners to abandon the public way to
facilitate a lot line adjustment between their properties, subject to the City Council’s
approval of the abandonment. The new lot line, as proposed, would better align with
existing site improvements, including a standing 6-foot-tall fence, as described in SLOMC
§ 16.18.040(B).
The area proposed for abandonment is approximately 167 feet by 10 feet, comprising a
1,667 square foot area. Located within the R-1 Zone, the public way was dedicated over
70 years ago but has never been used by the public, nor has the City made any
improvements to the site. Instead, the area has been utilized by the adjacent property
owners, who have installed fencing, landscaping, and trees.
If approved, the abandonment would result in one-half (five feet) of the easement
reverting to each adjacent property owner (1998 and 2006 San Luis Drive), enabling them
to proceed with a lot line adjustment application. The proposed abandonment would not
alter the visual or functional use of the area as seen from the street or surrounding
properties.
Before the City finalizes the right-of-way abandonment, any easements necessary for
access or drainage must be recorded to ensure continued functionality and legal access.
This condition (Attachment A) ensures that critical infrastructure and property rights are
preserved before the right-of-way is officially abandoned. City staff and utility providers
have confirmed that no public utilities or infrastructure exist within the right -of-way, and
there are no identified private access concerns. As a result, no easements are expected
to be required in this case. However, it is considered best practice to include this condition
in the resolution as a safeguard, in case any unforeseen issues arise before finalizing the
abandonment.
Page 11 of 54
Item 4b
STAB-0759-2024
Planning Commission Report – 4/9/2025
4
Figure 2: Google Map Image of 10-Foot Way to be Abandoned
4.0 PROJECT ANALYSIS
4.1 Consistency with the General Plan
San Luis Obispo Creek Protection (Land Use Element Policy 4.15)
The General Plan prioritizes the protection and restoration of San Luis Obispo Creek
while minimizing human impact on creek life. W hile the General Plan encourages walking
paths along the creek within the Downtown core, this segment is not within an area
planned for such a connection. The subject public way was originally intended to provide
access to the creek but has not been utilized for this purpose. Its abandonment will not
introduce new disturbances to the creek and will allow for continued preservati on of the
riparian ecosystem, aligning with the City’s goal to protect creek life.
Creek and Wetlands Management (Land Use Element Policy 6.6.1 & 6.6.3)
The General Plan emphasizes maintaining and restoring natural conditions while
balancing public access where feasible. Since this segment has never functioned as a
formal access point, its abandonment and reversion to private property aligns with the
City’s objective to minimize human impact on sensitive creek areas.
Street Network Changes (Circulation Element Policy 9.1.5)
The Circulation Element requires the City to reserve rights -of-way to ensure future
transportation improvements are preserved. The subject public way does not serve an
essential transportation function, and its abandonment does not impede future street
network expansion, making it consistent with this policy.
Page 12 of 54
Item 4b
STAB-0759-2024
Planning Commission Report – 4/9/2025
5
Pedestrian Network and Public Access (Circulation Element Policy 5.1.2 and 5.1.4)
The City aims to maintain a continuous pedestrian network, prioritizing high-traffic areas
for funding and infrastructure improvements. The public way in question has not been
used for pedestrian access, and there is no planned connection to a larger trail system.
Therefore, its abandonment does not conflict with pedestrian access goals.
Based on this analysis, the proposed abandonment of the 10 -foot public way is in
conformance with the City’s General Plan as it:
Does not negatively impact the San Luis Obispo Creek environment.
Does not impede planned or feasible future public access.
It does not impact planned rights-of-way or street network expansions.
It does not remove a critical pedestrian connection.
The area is not identified for future public transportation or access improvements.
4.2 Public Utilities
The Survey Map provided with the application (Attachment C) states that Spectrum,
PG&E, AT&T, and Southern Cal Gas all have utilities within the abandonment area. The
Engineering Division has reached out to these utility companies to confirm if they have
in-place facilities that would be impacted by the abandonment.
Spectrum has arterial facilities that cross the public way; however, these facilities do not
depend on the existence of the public way and will not be impacted by the abandonment.
AT&T similarly has facilities that are at the rear of each property owners’ home that will
not be affected by the abandonment. PG&E and SoCal Gas do not have any facilities in
the project area.
5.0 ENVIRONMENTAL REVIEW
The proposed abandonment of the 10 -foot public way is exempt from environmental
review under the California Environmental Quality Act (CEQA) pursuant to Class 1
(Existing Facilities) exemption (§15301), as it involves a minor right-of-way abandonment
with no significant impact on land use or the environment. The site does not function as
an active transportation corridor, and its abandonment will not affect public access,
circulation, or creek restoration efforts. No physical changes or development are
proposed, and the project is consistent with the General Plan.
6.0 OTHER DEPARTMENT COMMENTS
The proposed abandonment of the 10-foot-wide public right-of-way between 1998 and
2006 San Luis Drive has been reviewed by various City departments including
Community Development, Public Works, Utilities and Fire. These departments have
confirmed that there is no current or intended future use of the public way. Additionally,
the City Biologist has confirmed that the easement has not been used in the last five
consecutive years and that no future use is intended.
Page 13 of 54
Item 4b
STAB-0759-2024
Planning Commission Report – 4/9/2025
6
7.0 ALTERNATIVES
1. The Planning Commission may recommend that the abandonment be denied,
based on findings that the abandonment is inconsistent with the General Plan. The
abandonment has been found to be in conformance with the City’s General Plan and
with the California Streets and Highway Code , and the abandonment area has not
been utilized for its intended purpose for the entirety of its existence.
2. The Planning Commission may continue the request. If the Planning Commission
continues action, then specific direction should be given to staff and the applicant
regarding further information needed.
8.0 ATTACHMENTS
A - Draft PC Resolution recommending the City Council abandon a 10-foot-wide public
right of way between 1998 and 2006 San Luis Drive.
B - Map of Tract No. 43 showing acceptance of a 10-foot-wide public right of way
between 1998 and 2006 San Luis Drive.
C - Survey Map 1998 and 2006 San Luis Drive (STAB-0759-2024)
Page 14 of 54
RESOLUTION NO. PC-XXXX-25
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING
COMMISSION FINDING THE PROPOSED STREET ABANDONMENT IN
CONFORMITY WITH THE GENERAL PLAN AND RECOMMENDING THE
CITY COUNCIL ADOPT A RESOLUTION OF VACATION ABANDONING
A 10-FOOT-WIDE PUBLIC RIGHT OF WAY BETWEEN 1998 AND 2006
SAN LUIS DRIVE. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL
REVIEW (CEQA) AS REPRESENTED IN THE PLANNING COMMISSION
AGENDA REPORT AND ATTACHMENTS DATED APRIL 9, 2025 (STAB-
0759-2024)
WHEREAS, at a regular meeting of the Planning Commission of the City of San
Luis Obispo, conducted in the Council Chamber of City Hall, 990 Palm Street, San Luis
Obispo, California on April 9, 2025, the Planning Commission considered application
STAB-0759-2024, a request to abandon a 10-foot-wide public right-of-way between 1998
and 2006 San Luis Drive; and
WHEREAS, at said meeting, the Planning Commission reviewed the proposed
abandonment for conformity with the City’s General Plan per State Law and considered
recommendation of summary abandonment to the City Council of San Luis Obispo; and
WHEREAS, the Planning Commission has duly considered all evidence, including
the application, the testimony of interested parties and the evaluation and
recommendations provided by staff.
NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City
of San Luis Obispo as follows:
SECTION 1. Findings. Based upon all evidence, the Planning Commission makes
the following findings:
1. The proposed right-of-way abandonment is in conformity with the City's General
Plan and any applicable Specific Plans or Zoning Regulations. The proposed
abandonment does not conflict with long-term land use, circulation, or
infrastructure plans, and the street is not identified as a key access route or
planned improvement area.
2. The proposed right-of-way abandonment is not required for public vehicular or
pedestrian access at present or in the foreseeable future. Based on a review of the
City's traffic circulation plans, public infrastructure needs, and adjacent property
access, it has been determined that the right -of-way serves no essential function
in the City’s transportation network.
3. The proposed right-of-way abandonment will not negatively impact public interest
Page 15 of 54
Planning Commission Resolution No. PC-XXXX-2025
STAB-0759-2024 (1998 & 2006 San Luis Drive)
Page 2
or safety, including emergency vehicle access, utilities, or other critical public
services.
4. The City has not utilized the public way for its intended purpose for at least five
consecutive years, qualifying it for summary vacation under California Streets and
Highways Code (CSHC) § 8333. The right-of-way proposed for abandonment has
never been improved or used for its intended purposes of boating, fishing,
swimming, hunting, and other recreational uses within the San Luis Obispo Creek,
and no public funds have been expended over the last five years for its
improvement.
5. Utility companies with easement rights in the area have been provided notice of
the proposed abandonment and have confirmed that the abandonment will not
impact any existing utility infrastructure. No easements are required to be reserved
for public utilities, as there are no active facilities within the public way. Therefore,
the proposed abandonment meets the criteria set forth in California Streets and
Highways Code § 8334.5.
SECTION 2. Environmental Determination. The proposed abandonment of the
10-foot public right-of-way is exempt from environmental review under the California
Environmental Quality Act (CEQA) pursuant to Class 1 (Existing Facilities) exemption
(§15301), as it involves a minor right-of-way abandonment with no significant impact on
land use or the environment. The site does not function as an active transportation
corridor, and its abandonment will not affect public access, circulation, or creek
restoration efforts. No physical changes or development are proposed, and the project is
consistent with the General Plan.
SECTION 3. Action. The Planning Commission hereby finds the proposed street
abandonment in conformance with the General Plan and recommends the City Council
adopt a Resolution of Intention to abandon a 10-foot-wide public right of way between
1998 and 2006 San Luis Drive subject to the following conditions:
1. Any required easements for purposes of access and drainage shall be recorded
concurrent with or prior to recordation of a City Council resolution vacating
previous offers of dedication.
2. All required pictorial exhibits and/or legal descriptions necessary to complete the
abandonment process shall be provided by the project applicant to the satisfaction
of the Public Works Director. All exhibits and/or legal descriptions shall be
prepared by a Licensed Land Surveyor or Civil Engineer who is authorized to
practice Land Surveying, in accordance with the California Business and
Professions Code Section 8700 et seq.
Page 16 of 54
Planning Commission Resolution No. PC-XXXX-2025
STAB-0759-2024 (1998 & 2006 San Luis Drive)
Page 3
3. The abandonment results in additional property to be deeded back to adjacent
contiguous properties but does not constitute creation of a new parcel or lot.
Upon motion of ______________________, seconded by __________________ and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 9th day of April 2025.
___________________
Tyler Corey, Secretary
Planning Commission
Page 17 of 54
Page 18 of 54
Page 19 of 54
Page 20 of 54
Page 21 of 54
Page 22 of 54
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REVIEW OF TEXT AMENDMENTS TO SECTION 17.86.080 (“CANNABIS”)
OF TITLE 17 (“ZONING REGULATIONS”) OF THE MUNICIPAL CODE TO CLARIFY
SPECIFIC LAND USE AND OPERATIONAL REQUIREMENTS FOR COMMERCIAL
CANNABIS ACTIVITY [CITYWIDE] (CODE-0051-2025)
BY: Ivana Gomez, Cannabis Business
Coordinator FROM: Tyler Corey, Deputy Director
Phone Number: (805) 781-7147 Phone Number: (805) 781-7169
Email: igomez@slocity.org Email: tcorey@slocity.org
APPLICANT: City of San Luis Obispo REPRESENTATIVE: Ivana Gomez
RECOMMENDATION
Adopt a Resolution recommending the City Council introduce and approve an Ordinance
to amend Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the
Municipal Code to clarify specific land use and operational requirements for commercial
cannabis activity.
1.0 COMMISSION'S PURVIEW
Pursuant to the City of San Luis Obispo Municipal Code (“SLOMC”) Chapter 17.124
(Amendments – Zoning Regulations and Zoning Map) and California Government Code
Section § 65854, the Planning Commission’s role is to review the proposed amendments
to the City’s Zoning Regulations for consistency with the City’s General Plan and State
Law and provide a recommendation to the City Council.
2.0 SUMMARY
On behalf of the City of San Luis Obispo, the Community Development Director has
initiated a text amendment in accordance with SLOMC § 17.124.020(B) (Authority to
Initiate an Amendment to the Zoning Regulations) to Section 17.86.080 (“Cannabis”) of
Title 17 (“Zoning Regulations”) of the City of San Luis Obispo Municipal Code. The
proposed amendments clarify specific land use and operational requirements for
commercial cannabis activities consistent with the legislative intent of the currently
adopted Zoning Ordinance and State Law. Specifically, the proposed amendments will
clarify buffer requirements for retail storefronts, clarify hours of operation for
microbusinesses that conduct retail storefront activity as party of their operations, and
remove repetitive verbiage.
3.0 BACKGROUND
Meeting Date: 4/9/2025
Item Number: 5a
Time Estimate: 45 minutes
Page 23 of 54
Item 5a
CODE-0051-2025
Planning Commission Report – April 9, 2025
3.1 City Council Action
Cannabis Regulations and Cannabis Zoning Regulations
On May 15, 2018, the City Council adopted Ordinance No. 1647 (2018 Series), amending
the Municipal Code to establish regulations for commercial cannabis activity, including
adoption of SLOMC Chapter 9.10 (Cannabis Regulations) and SLOMC § 17.86.080
(Cannabis Zoning Regulations), f ormerly Chapter 17.99. On March 21, 2023, the City
Council adopted Ordinance No. 1725 (2023 Series) modifying specific rules for
commercial cannabis retail storefront operations including expansion of hours of
operation and allowing access to medicinal cannabis customers 18 to 20 years of age
with a valid physician’s recommendation.
Cannabis Business Overlay Zones and Zoning Map
On September 18, 2018, the City Council adopted Ordinance No. 1653 (2018 Series),
amending the City’s Zoning Regulations and Zoning Map to designate seven areas of the
City as Cannabis Business Overlay Zones (“CBZ Overlay Zones”) where cannabis
businesses may be located. Then, on May 16, 2023, the City Council adopted Ordinance
No. 1727 (2023 Series), amending the Zoning Map to expand the CBZ Overlay Zones to
include recently annexed areas of the City, including the Fiero Lane -Clarion Court and
East Airport Areas1,2.
3.2 Cannabis Business (CBZ) Overlay Zones and Buffers
CBZ Overlay Zones are indicated on the City Zoning Map and establish locations in the
City where cannabis businesses may operate. Allowed uses are further controlled by
zoning and required buffers within those overlay zones. Table 2-1 (Uses Allowed by Zone)
within SLOMC § 17.10.020 shows the permitting requirements per land use and zoning
district. The CBZ overlay zones were carefully and deliberately proposed and adopted,
taking into consideration state law buffer requirements, proximity to certain land uses
such as schools and residentially zoned areas beyond and within the boundary lines,
existing zoning, adjacency to arterial roads and other barriers within the built environment,
and other land use suitability characteristics.
Retail storefronts must be located at least one thousand (1,000) feet from any preschools,
elementary schools, junior high schools, high schools, and public parks or playgrounds,
six hundred (600) feet from licensed daycare centers, whether these uses are located in
the CBZ overlay or not. In addition, retail storefronts must be three hundred (300) feet
from residentially zoned areas within CBZ Overlay Zones (SLOMC § 17.86.080; see
further discussion in Section 4.1 below). Retail storefronts are also required to be located
at least one thousand (1,000) feet from other cannabis retail storefronts.
4.0 PROJECT ANALYSIS
4.1 Land Use Requirements for Retail Storefronts
1 City of San Luis Obispo Zoning Map
2 The term “CBZ Overlay” is also referred to as “CAN Overlay” in SLOMC § 17.86.080(E)(5)(b).
Both terms are interchangeable and refer to the same zoning designation.
Page 24 of 54
Item 5a
CODE-0051-2025
Planning Commission Report – April 9, 2025
The first proposed text amendments are to SLOMC §§§ 17.86.080(E)(4)(e),
17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(v) within the Cannabis Zoning
Regulations, which state the buffer requirements for retail storefronts from sensitive uses,
including residentially zoned areas. Residential zones include the following zones: Low-
Density Residential (R-1), Medium-Density Residential (R-2), Medium-High Density (R-
3) and High-Density Residential (R-4). Areas with a Mixed-Use (MU) Overlay are not
considered to be residentially zoned, as the MU designation is an overlay rather than a
base zone that is attached to some commercial zoning districts.
The proposed text amendments clarify that the 300-foot buffer requirement for retail
storefronts from residentially zoned areas applies only within CBZ Overlay Zones,
consistent with the original legislative intent. The 05/01/2018 and 09/04/2018 Council
Agenda Reports explicitly state that residential buffers were intended to apply only within
CBZ Overlay Zones, which were established based on local conditions such as major
roadways and railroads that serve as barriers from sensitive land uses.
The 05/01/2018 Council Agenda Report to establish the City’s Cannabis Regulations,
including the adoption of specific buffer requirements, clearly states that the buffer from
residentially zoned areas was to apply within a CBZ Overlay Zone only. Page 3 of the
report states the Planning Commission’s recommendation that: “Within overlay zones,
sensitive uses like schools and parks should provide 1,000-foot buffers, and residential
zones should provide 300-foot buffers, to retail stores. No other cannabis business activity
should be subject to buffers.”
This is further confirmed in the 09/04/2018 Council Agenda Report to establish the CBZ
Overlay Zones. Page 3 of the report states, “While there is no buffer from residential uses
in state law, the City has established a 300 -foot buffer between residentially zoned land
and retail stores. However, this buffer only applies from residential zoning that
occurs within that same overlay zone. There are two locations where this occurs, one
is in the Broad Street Corridor CBZ, and the other is in the Airport Area CBZ.”3
It is important to note that the May 1, 2018, report established the regulatory foundation
for cannabis buffers, even though the CBZs were not yet formally designated. The buffers
were a key policy decision that directly influenced the later creation of the overlay zones.
When the CBZs were adopted in September 2018, their boundaries were drawn in a way
that accounted for these pre-established buffers. This clearly demonstrates that the
legislative intent was always for the 300-foot buffer from residential zones to apply only
within CBZ Overlay Zones.
3 The area that was previously zoned residential in the Airport Area CBZ has since been rezoned
such that it is now zoned Service Commercial (C-S). There is now only one location in the City
where residential zoning occurs within a CBZ Overlay Zone – the South Broad CBZ Overlay.
Page 25 of 54
Item 5a
CODE-0051-2025
Planning Commission Report – April 9, 2025
The City’s official Zoning Map further reinforces the legislative intent by clearly indicating
that the 300-foot buffer applies to residential zones within the South Broad CBZ (see
Figure 1). As stated above, the staff report from 09/04/2018 to establish CBZ Overlay
Zones notes only two locations in the City where residential zoning occurs within a CBZ.
The need for this clarifying amendment was brought to staff’s attention by an appeal
regarding the Planning Commission’s approval of a Conditional Use Permit (CUP) for a
cannabis retail storefront at 2400 Broad Street. The appeal questioned the project’s
consistency with zoning regulations, including buffer requirements from residentially
zoned areas. The proposed text amendment is declaratory of existing City law in effect
since 2018, ensuring clarity and regulatory consistency for both pending and future
projects. This clarifying text is a statement of what the ordinance has always meant and
is intended to reflect the City’s application of the buffer requirements since their adoption.
Additionally, staff recommends adding specific language to Section
17.86.080(E)(10)(B)(iii) to clarify that land uses established after the approval of a Use
Permit for a retail storefront do not impede the existing use as a cannabis retail storefront.
In other words, a new adjacent sensitive use does not affect the continuation of an existing
use that was issued a Use Permit under the standards of the Municipal Code. This
approach aligns with the principle that legally established land uses, often referred to as
"nonconforming uses," are permitted to continue despite subsequent zoning changes or
the introduction of new adjacent uses. This principle ensures that property owners can
maintain their lawful operations without disruption, even as neighboring properties
undergo changes.
Page 26 of 54
Item 5a
CODE-0051-2025
Planning Commission Report – April 9, 2025
Figure 1: City of SLO Zoning Map and Legend – South Broad CBZ Overlay as Adopted by
Ordinance No. 1727 (2023 Series)
4.2 Commercial Cannabis Development Standards
The term “CBZ Overlay” is referred to as “CAN Overlay” in SLOMC § 17.86.080(E)(5)(b).
Both terms are interchangeable and refer to the same zoning designation. The proposed
amendment to SLOMC § 17.86.080(E)(5)(b) is to replace the term “CAN Overlay” with
“CBZ Overlay,” consistent with the City Zoning Map and Table 1 -1 “Zones Established”
within SLOMC § 17.06.020(D).
4.3 Regulations for Retail Storefronts within a Microbusiness Operation
Hours of Operation for Retail Storefronts Within a Microbusiness Operation
On March 7th, 2023, the City Council adopted Ordinance No. 1725 (2023 Series)
amending Chapter 9.10 (Cannabis Regulations) and Chapter 17.86.080 (Cannabis
Zoning Regulations) of the Municipal Code, modifying specific rules for commercial
cannabis retail storefront operations. The amendments expanded the allowable hours of
operation from 9:00AM and 8:00PM daily to 7:00AM and 9:00PM daily. However, the
Ordinance did not consider microbusiness operations, which are operations that engage
in at least three (3) of the following commercial cannabis activities under one location:
Page 27 of 54
Item 5a
CODE-0051-2025
Planning Commission Report – April 9, 2025
cultivation, manufacturing, distribution, and retail sale (SLOMC § 17.156.028; Cal. Code
Regs., Title 4, §15500.) As currently adopted, SLOMC § 17.86.080(E)(12)(c)(v)(ix)
(Microbusiness Development Standards), states that the hours of retail sales shall be
limited to between 9:00AM and 8:00PM. Under state regulations (Cal. Code Regs., Title
4, § 15500), microbusinesses authorized to engage in retail sale are required to comply
with all rules and requirements applicable to a retailer license. Similarly, SLOMC §
17.86.080(E)(12)(c)(i) requires microbusinesses authorized to engage in retail sales to
comply with the regulations established for retail commercial cannabis activity. Therefore,
staff is recommending updating the hours of operation for retail storefronts within a
microbusiness operation to be consistent with the hours of operation for a retail storefront
only business: between 7:00AM and 9:00PM daily.
Required Signage for Retail Storefronts within a Microbusiness Operation
Ordinance No. 1725, referenced in the preceding section, also modified age restrictions
for retail storefront operations. Specifically, the adopted ordinance allows individuals 18
to 20 years of age who have a valid physician’s recommendation for medicinal cannabis
to enter and access retail storefronts that possess a valid state of California cannabis
retailer license with M-designation (For Medical Use) (Cal. Code Regs., Title 4, §
15000.2). As with the amendment to the hours of operation for retail storefronts, the
Ordinance did not include microbusiness operations that engage in retail storefront sales.
Therefore, staff is recommending an amendment to SLOMC § 17.86.080(E)(12)(c)(v)(x),
which states the entryway signage requirements for retail storefronts associated with a
microbusiness.
4.4 Purpose Statement – Reference to Federal Law
As discussed in the Annual Cannabis Business Program Update in 2024, at a federal
level, there has been discussion of rescheduling cannabis from Schedule I to Schedule
III under the Controlled Substances Act (CSA). However, there is no concrete timeline on
when the U.S. Drug Enforcement Administration (DEA) will take action. Staff recommends
removing the specific CSA classification of marijuana (cannabis) from the Cannabis
Zoning Regulations “Purpose” statement found in SLOMC § 17.86.080(A). Instead, the
proposed amendment will revise the purpose statement to state that the provisions of
Section § 17.86.080 are not intended to affect or alter federal law, regardless of the
classification. This avoids having to update this section whenever the federal government
changes the classification of marijuana while still reinforcing that the provisions of the
cannabis zoning regulations are not intended to affect or alter federal law.
5.0 ENVIRONMENTAL REVIEW
Adoption of the proposed amendments to Section § 17.86.080 of the Municipal Code
have been reviewed in accordance with the California Environmental Quality Act (CEQA)
Guidelines. It has been determined that the amendments are exempt from environmental
review under CEQA Guidelines Section § 15301(b)(3) (General Rule Exemption), which
applies to activities that can be clearly seen to have no potential for significant
environmental impact. Project-specific environmental review will be required for any new
commercial cannabis activity.
Page 28 of 54
Item 5a
CODE-0051-2025
Planning Commission Report – April 9, 2025
6.0 OTHER DEPARTMENT / DIVISION REVIEW
Some of the proposed amendments are declaratory of existing law, ensuring clarity and
regulatory consistency for both pending and future projects, and others are intended to
conform City regulations to allowances under state law. The Director of Community
Development and the City Attorney’s Office have reviewed the proposed amendments to
the City’s Cannabis Zoning Regulations and have found them to be consistent with State
Law and the legislative intent of the adopted Ordinance.
7.0 ALTERNATIVES
1. Recommend the City Council does not adopt the recommended changes to the
Zoning Regulations. The proposed changes to Sections 17.86.080(E)(4)(e),
17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(vii) are declaratory of existing law,
and without adoption of the recommended changes, unintended ambiguity may persist
regarding existing land use and operational requirements for commercial cannabis
activity. The proposed changes to Section 17.86.080(E)(12)(c)(ix)-(x) are intended to
reflect what is permitted under current state law, and without adoption of the
recommended changes, the City’s cannabis regulations will remain inconsistent
therewith.
2. Modify the recommendation. The Planning Commission may modify the
recommended action prior to adopting the proposed Resolution.
8.0 ATTACHMENTS
A - Draft PC Resolution recommending the City Council introduce and approve an
Ordinance to amend Section 17.86.080 (“Cannabis”) of Title 17 of the Municipal Code
to clarify specific land use and operational requirements for commercial cannabis
activity (CODE-0051-2025).
Page 29 of 54
Page 30 of 54
RESOLUTION NO. PC-XXXX-25
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING
COMMISSION RECOMMENDING THE CITY COUNCIL INTRODUCE
AND ADOPT AN ORDINANCE AMENDING SECTION 17.86.080
(“CANNABIS”) OF TITLE 17 (“ZONING REGULATIONS”) OF THE
MUNICIPAL CODE TO CLARIFY SPECIFIC LAND USE AND
OPERATIONAL REQUIREMENTS FOR COMMERCIAL CANNABIS
ACTIVITY. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL
REVIEW (CEQA) AS REPRESENTED IN THE PLANNING COMMISSION
AGENDA REPORT AND ATTACHMENTS DATED APRIL 9, 2025
(CITYWIDE; CODE-0051-2025)
WHEREAS, on May 15, 2018, the City Council adopted Ordinance No. 1647 (2018
Series), amending the Municipal Code (“SLOMC”) to establish regulations for commercial
cannabis activity, including adoption of SLOMC Chapter 9.10 (Cannabis Regulations) and
SLOMC § 17.86.080 (Cannabis Zoning Regulations), formerly Chapter 17.99 ; and
WHEREAS, on March 21, 2023, the City Council adopted Ordinance No. 1725
(2023 Series) modifying specific rules for commercial cannabis retail storefront operations
including expansion of allowable hours of operation from between 9:00AM and 8:00PM
daily to between 7:00AM and 9:00PM daily and allowing individuals 18 to 20 years of age
who have a valid physician’s recommendation for medicinal cannabis to enter and access
retail storefronts that possess a valid state of California cannabis retailer license with M -
designation (For Medical Use); and
WHEREAS, on September 18, 2018, the City Council adopted Ordinance No.
1653 (2018 Series), amending the City’s Zoning Regulations and Zoning Map to
designate seven areas of the City as Cannabis Business Overlay Zones (“CBZ Ove rlay
Zones”) where cannabis businesses may be located. Then, on May 16, 2023, the City
Council adopted Ordinance No. 1727 (2023 Series), amending the Zoning Map to expand
the CBZ Overlay Zones to include recently annexed areas of the City, including the Fiero
Lane-Clarion Court and East Airport Areas; and
WHEREAS, upon adoption of the initial cannabis regulations on November 17,
2018, the City Council of the City of San Luis Obispo directed staff to return annually with
an update to the City’s Cannabis Business Program, including recommendations for
improvements based on operational and administrative experiences; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on April 9, 2025, for the purpose of recommending an amendment to Section
17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code pursuant
to a proceeding under CODE-0051-2025; City of San Luis Obispo, applicant; and
Page 31 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 2
WHEREAS, notices of said public hearing were made at the time and in the
manner required by the law; and
WHEREAS, the Planning Commission has duly considered all evidence, including
the testimony of interested parties and the evaluation and recommendations provided by
staff, presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City
of San Luis Obispo as follows:
SECTION 1. Findings. Based upon all evidence, the Planning Commission makes
the following findings:
1. The proposed amendments to Municipal Code §§§ 17.86.080(E)(4)(e),
17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(v) are consistent with State Law and are
declaratory of existing City law, ensuring clarity and regulatory consistency for both
pending and future projects. These amendments clarify specific land use requirements
for commercial cannabis activities consistent with the legislative intent of the currently
adopted Zoning Ordinance. These amendments are intended to reflect the City’s
application of the buffer requirements since their adoption.
2. In adopting Municipal Code §17.86.080 (formerly Chapter 17.99) on May
15, 2018, the City Council found that the regulations balance the City’s competing
interests in allowing certain commercial and research -related cannabis activities desired
by the majority of voters, with the public health, welfare, and safety concerns of the City.
The proposed amendments to §§§ 17.86.080(E)(4)(e), 17.86.080(E)(10)(b)(iii), and
17.86.080(E)(12)(c)(v), as declaratory of existing law, accomplish the same.
3. The Council Agenda Report dated May 1, 2018, to establish the City’s
Cannabis Regulations, including the adoption of specific buffer requirements, clearly
indicates that the City Council intended the buffer from residentially zoned areas to apply
to areas within the CBZ Overlay Zones only.
4. The Council Agenda Report dated September 4, 2018, to formally establish
the CBZ Overlay Zones states that the three-hundred-foot buffer requirement between
residentially zoned land and retail storefronts applies from residential zoning that occurs
within a CBZ Overlay Zone. Additionally, the CBZ Overlay Zones were designed to
incorporate natural physical barriers—such as railroads and major roads—that inherently
serve as buffers from sensitive sites, thereby minimizing potential impacts on public
health and safety. Applying the 300-foot buffer requirement outside these overlay zones
would unnecessarily restrict allowable commercial cannabis sites beyond what is
necessary to ensure health and safety, as contemplated by the adoption of the overlay
zones.
Page 32 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 3
5. The terms “CAN Overlay” and “CBZ Overlay” have been used
interchangeably. The proposed amendment to Municipal Code § 17.86.080(E)(5)(b)
replaces “CAN Overlay” with “CBZ Overlay” to align with the adopted Zoning Map and
Table 1‑1 (“Zones Established”) in SLOMC § 17.06.020(D).
6. The proposed amendments to Municipal Code §§ 17.86.080(E)(12)(c)(v)(ix)
and 17.86.080(E)(12)(c)(v)(x) are consistent with State Law and the California
Department of Cannabis Control (“DCC”) Regulations, specifically with DCC Regulations
§§§ 15400, 15403, and 15500, which define regulations for commercial cannabis retail
and microbusiness license holders.
7. The proposed amendments to Municipal Code §§ 17.86.080(E)(12)(c)(v)(ix)
and 17.86.080(E)(12)(c)(v)(x) are consistent with Municipal Code § 17.86.080(E)(12)(c)(i)
which requires microbusinesses authorized to engage in retail sales to comply with the
regulations established for retail commercial cannabis activity.
8. The proposed amendment to Municipal Code § 17.86.080(A) does not alter
or affect federal law, and it revises the purpose statement to remove the specific CSA
classification of cannabis. This change ensures that the regulation remains effective
regardless of any future federal scheduling changes.
SECTION 2. Environmental Determination. The recommended actions were
reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines
and are determined to be exempt from environmental review pursuant to CEQA
Guidelines Section § 15301(b)(3) (General Rule Exemption), which exempts activities
that can be seen with certainty to have no possibility for causing a significant effect on the
environment. Project-specific environmental review will be required for any new
commercial cannabis activity.
Page 33 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 4
SECTION 3. Action. The Planning Commission hereby recommends to the City
Council the introduction and adoption of an ordinance to amend § 17.86.080 (“Cannabis”)
of Title 17 (“Zoning Regulations”) of the Municipal Code to clarify specific land use and
operational requirements for commercial cannabis activity as set forth in Exhibit A and
incorporated herein.
Upon motion of ______________________, seconded by __________________ and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 9th day of April 2025.
___________________
Tyler Corey, Secretary
Planning Commission
Page 34 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 5
EXHIBIT A
DRAFT ORDINANCE NO. ____ (2025 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING SECTION 17.86.080 (“CANNABIS”)
OF TITLE 17 (“ZONING REGULATIONS”) OF THE MUNICIPAL CODE
TO CLARIFY SPECIFIC LAND USE AND OPERATIONAL
REQUIREMENTS FOR COMMERCIAL CANNABIS ACTIVITY. THE
PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA)
WHEREAS, on May 15, 2018, the City Council adopted Ordinance No. 1647 (2018
Series), amending the Municipal Code (“SLOMC”) to establish regulations for commercial
cannabis activity, including adoption of SLOMC Chapter 9.10 (Cannabis Regulations) and
SLOMC § 17.86.080 (Cannabis Zoning Regulations), formerly Chapter 17.99 ; and
WHEREAS, on March 21, 2023, the City Council adopted Ordinance No. 1725
(2023 Series) modifying specific rules for commercial cannabis retail storefront operations
including expansion of allowable hours of operation from 9:00AM and 8:00PM daily to
7:00AM and 9:00PM daily and allowing individuals 18 to 20 years of age who have a valid
physician’s recommendation for medicinal cannabis to enter and access retail storefronts
who possess a valid state of California cannabis retailer license with M -designation (For
Medical Use); and
WHEREAS, on September 18, 2018, the City Council adopted Ordinance No.
1653 (2018 Series), amending the City’s Zoning Regulations and Zoning Map to
designate seven areas of the City as Cannabis Business Overlay Zones (“CBZ Overlay
Zones”) where cannabis businesses may be located. Then, on May 16, 2023, the City
Council adopted Ordinance No. 1727 (2023 Series), amending the Zoning Map to expand
the CBZ Overlay Zones to include recently annexed areas of the City, including the Fiero
Lane-Clarion Court and East Airport Areas; and
WHEREAS, upon adoption of the initial cannabis regulations on November 17,
2018, the City Council of the City of San Luis Obispo directed staff to return annually with
an update to the City’s Cannabis Business Program, including recommendations for
improvements based on operational and administrative experiences; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on April 9, 2025, for the purpose of recommending an amendment to Section
17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code pursuant
to a proceeding under CODE-0051-2025; City of San Luis Obispo, applicant; and
Page 35 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 6
WHEREAS, notices of said public hearing were made at the time and in the
manner required by the law; and
WHEREAS, the Planning Commission has duly considered all evidence, including
the testimony of interested parties and the evaluation and recommendations provided by
staff, presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San
Luis Obispo as follows:
SECTION 1. Findings. Based upon all evidence, the City Council makes the
following findings:
1. The proposed amendments to Municipal Code §§§ 17.86.080(E)(4)(e),
17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(v) are consistent with State Law and are
declaratory of existing City law, ensuring clarity and regulatory consistency for both
pending and future projects. These amendments clarify specific land use requirements
for commercial cannabis activities consistent with the legislative intent of the currently
adopted Zoning Ordinance. These amendments are intended to reflect the City’s
application of the buffer requirements since their adoption.
2. In adopting Municipal Code § 17.86.080 (formerly Chapter 17.99) on May
15, 2018, this Council found that the regulations balance the City’s competing interests in
allowing certain commercial and research-related cannabis activities desired by the
majority of voters, with the public health, welfare, and safety concerns of the City. The
proposed amendments to Municipal Code §§§ 17.86.080(E)(4)(e),
17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(v), as declaratory of existing law,
accomplish the same.
3. The Council Agenda Report dated May 1, 2018, to establish the City’s
Cannabis Regulations, including the adoption of specific buffer requirements, clearly
indicates that the City Council intended the buffer from residentially zoned areas to apply
within the CBZ Overlay Zones only.
4. The Council Agenda Report dated September 4, 2018, to formally establish
the CBZ Overlay Zones states that the three-hundred-foot buffer requirement between
residentially zoned land and retail storefronts applies from reside ntial zoning that occurs
within a CBZ Overlay Zone. Additionally, the CBZ Overlay Zones were designed to
incorporate natural physical barriers—such as railroads and major roads—that inherently
serve as buffers from sensitive sites, thereby minimizing poten tial impacts on public
health and safety. Applying the 300-foot buffer requirement outside these overlay zones
would unnecessarily restrict allowable commercial cannabis sites beyond what is
necessary to ensure health and safety, as contemplated by the ado ption of the overlay
zones.
Page 36 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 7
5. The terms “CAN Overlay” and “CBZ Overlay” have been used
interchangeably. The proposed amendment to Municipal Code Section §
17.86.080(E)(5)(b) replaces “CAN Overlay” with “CBZ Overlay” to align with the adopted
Zoning Map and Table 1‑1 (“Zones Established”) in SLOMC § 17.06.020(D).
6. The proposed amendments to Municipal Code §§ 17.86.080(E)(12)(c)(v)(ix)
and 17.86.080(E)(12)(c)(v)(x) are consistent with State Law and the California
Department of Cannabis Control (“DCC”) Regulations, specifically with DCC Regulations
§§§ 15400, 15403, and 15500, which define regulations for commercial cannabis retail
and microbusiness license holders.
7. The proposed amendments to Municipal Code §§ 17.86.080(E)(12)(c)(v)(ix)
and 17.86.080(E)(12)(c)(v)(x) are consistent with Municipal Code § 17.86.080(E)(1 2)(c)(i)
which requires microbusinesses authorized to engage in retail sales to comply with the
regulations established for retail commercial cannabis activity.
8. The proposed amendment to Municipal Code § 17.86.080(A) does not alter
or affect federal law, and it revises the purpose statement to remove the specific CSA
classification of cannabis. This change ensures that the regulation remains effective
regardless of any future federal scheduling changes.
SECTION 2. Environmental Determination. The recommended actions were
reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines
and are determined to be exempt from environmental review pursuant to CEQA
Guidelines § 15301(b)(3) (General Rule Exemption), which exempts activities that can be
seen with certainty to have no possibility for causing a significant effect on the
environment. Project-specific environmental review will be required for any new
commercial cannabis activity.
SECTION 3. Action. The City Council hereby adopts an ordinance amending
Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code
to clarify specific land use and operational requirements for commercial cannabis activity.
Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the City of
San Luis Obispo Municipal Code is hereby amended as follows:
17.86.080 Cannabis.
A. Purpose. The purpose of this section is to protect the public health, safety, and
welfare, enact strong and effective regulatory and enforcement controls in compliance
with state of California law, protect neighborhood character, and minimize potential for
negative impacts on people, communities, and the environment within the city of San Luis
Page 37 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 8
Obispo by establishing land use requirements and development standards for cannabis
activities. Cannabis activity, as defined in Section 17.156.008 (C Definitions), includes the
cultivation, possession, manufacturing, processing, storing, laboratory testing, labeling,
transporting, distribution, delivery, or sale of cannabis or a cannabis product for either
personal or commercial use. Therefore, this section recognizes that cannabis activities
require land use controls due to state legal constraints on cannabis activity, and the
potential environmental and social impacts associated with cannabis activity. Not hing in
this section is intended to affect or alter federal law., which identifies marijuana (cannabis)
as a Schedule I controlled substance.
B. Applicability. Nothing in this section shall be construed to allow any conduct or activity
relating to the cultivation, distribution, dispensing, sale, or consumption of cannabis that
is otherwise illegal under local or state law, statute, rule or regulation. It is neither the
intent nor the effect of this chapter to condone or legitimize the illegal use, consumpt ion
or cultivation of cannabis under state or local law and nothing herein is intended to
interpret, alter, interfere with or in any way affect otherwise applicable federal law.
C. Definitions. See Chapter 17.156, Land Use Definitions (Table 2-1: Uses Allowed by
Zone). Terms used in this section that are defined terms under state cannabis statutes or
regulations shall have the same meaning as the respective state definition, as now
defined or as the definition may be amended by the state in the future, except as
otherwise specifically provided in Chapter 17.156, Land Use Definitions (Table 2-1: Uses
Allowed by Zone), or Chapter 9.10, Cannabis Regulations.
D. Personal Cultivation.
1. Indoor Personal Cultivation. Indoor personal cultivation of cannabis does not
require a permit and is allowed in all private residences subject to all the following
minimum performance standards:
a. All indoor personal cultivation shall occur only inside a private residence or
fully enclosed and secure accessory building or structure to a private residence.
Accessory building or structure for indoor personal cultivation of cannabis does
not include a greenhouse or hoop structure.
Page 38 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 9
b. Structures and equipment used for indoor cultivation, such as indoor grow
lights, shall comply with all applicable building, electrical and fire code regulations
as adopted by the city.
c. All accessory buildings and structures used for indoor cultivation shall comply
with the city’s zoning regulations and building codes.
d. Indoor personal cultivation of cannabis may occur inside a dwelling and/or an
accessory building or structure, subject to the following restrictions:
i. The cumulative cultivation for cannabis shall not exceed six cannabis
plants per private residence.
ii. All personal cultivation shall be conducted by persons twenty-one years
of age or older, and the cumulative total of cannabis plants per private
residence, indoor and outdoor, shall not exceed six cannabis plants,
regardless of the number of persons residing on the property.
e. Personal cultivation of cannabis shall not interfere with the primary occupancy
of the building or structure, including regular use of kitchen(s) or bathroom(s).
f. Cannabis cultivation must be concealed from public view at all stages of
growth and there shall be no exterior evidence of cannabis cultivation occurring
at the property visible with normal unaided vision from any pu blic place, or the
public right-of-way. Personal cultivation of cannabis shall be shielded to confine
light and glare to the interior of the structure.
g. Nothing in this section is intended, nor shall it be construed, to preclude any
landlord from limiting or prohibiting personal cultivation of cannabis by tenants.
h. Nothing in this section is intended, nor shall it be construed, to authorize
commercial cultivation of cannabis at a private residence.
i. Personal cultivation of cannabis shall not create : offensive odors or excessive
dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage
of materials, processes, products or wastes, or other unreasonable impacts to
persons of normal sensitivity who are living, working or lawf ully present in the
vicinity of the personal cultivation.
Page 39 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 10
j. Cannabis cultivation areas in a private residence shall be locked at all times
when the cultivator is not present.
2. Outdoor Personal Cultivation. Outdoor personal cultivation of cannabis does not
require a permit and is allowable at all private residences, subject to all of the following
minimum performance standards:
a. Outdoor personal cultivation of cannabis is not permitted in the front yard
between the public right-of-way and the private residence. Outdoor personal
cultivation is only permitted in a rear or side yard that is entirely enclosed by a
solid, opaque fence that is associated with a private residence used for residential
purposes.
b. The cannabis plants shall be placed at a minimum setback of five feet from
the edge of canopy to the property line.
c. Cannabis cultivation must be concealed from public view at all stages of
growth and there shall be no exterior evidence of cannabis cultivation occurring
at the property visible by normal unaided vision from a public place or the public
right-of-way. Cultivation may occur within a greenhouse or hoop structure (as long
as it complies with the performance standards), but mixed light cultivation is
prohibited.
d. All outdoor personal cultivation shall be conducted by persons twenty-one
years of age or older.
e. The cumulative total of cannabis plants cultivated outdoor shall not exceed
six cannabis plants per parcel containing a private residence, regardless of the
number of persons residing on the property, and regardless of the number of
private residences on the parcel.
f. Nothing in this section is intended, nor shall it be construed, to preclude any
landlord from limiting or prohibiting cannabis cultivation by tenants.
g. Nothing in this section is intended, nor shall it be construed, to authorize
commercial cultivation of cannabis at a private residence outdoors.
h. Outdoor personal cultivation of cannabis shall not create: offensive odors or
excessive dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use
Page 40 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 11
or storage of materials, processes, products or wastes, or other unreasonable
impacts to people of normal sensitivity living, working or lawfully present in the
vicinity of the personal cultivation.
E. Commercial Cannabis Businesses.
1. Commercial Cannabis Operator Permit.
a. No person or entity shall operate or conduct a commercial cannabis activity
or commercial cannabis business without first obtaining both a commercial
cannabis operator permit from the city pursuant to Chapter 9.10, Cannabis
Regulations, and a use permit from the city pursuant to this chapter to conduct
the commercial cannabis activity at a specific location. Any permit authorizing
commercial cannabis activity pursuant to this chapter shall be conditioned upon
the holder obtaining and maintaining a city commercial cannabis operator permit
and the appropriate state license for the activity.
b. A commercial cannabis activity pursuant to this chapter may be transferred,
assigned, or bequeathed, by operation of law or otherwise as described in Section
9.10.120.
c. The commercial cannabis operator permit must be renewed each year.
d. Expiration of the use permit shall be consistent with Section 17.104.070.
2. No Vested Right to Operate. No person shall have any entitlement or vested right
to operate a cannabis business solely by virtue of licensing under these regulations.
Operation of cannabis activity(ies) requires both the approval of a conditional use
permit and a commercial cannabis operator permit under Chapter 9.10, which is a
revocable privilege and not a right in the city. The applicant bears the burden of
proving that all qualifications for licensure have been satisfied and continuously
maintained prior to conducting a cannabis business at an otherwise allowed location
within the city.
3. State Application Required. Filing a local application for cannabis activity(ies) with
the city does not constitute an application with the state of California. A separate state
application and license process must be followed through with the state.
Page 41 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 12
4. Application Requirements. All commercial cannabis activities require qualification
through the commercial cannabis operator selection appro val process in Chapter
9.10, Cannabis Regulations, a state license and a use permit for a specific location
pursuant to this chapter. The application for a use permit shall include the followi ng
information:
a. Site plan, floor plans, and a general description of the nature, square-footage,
parking and type of cannabis activity(ies) being requested.
b. An operations plan including:
i. A security plan to the approval of the chief of police, pursuant to criteria
approved by resolution of the city council, including but not limited to on -site
security measures both physical and operational and, if applicable, security
measures for the delivery of cannabis associated with the commercial
cannabis business and payment of taxes and fees;
ii. Plan for restriction of access by minors;
iii. Employee safety and training plan;
iv. Odor, noise and light management plan;
v. Estimated energy usage and energy efficiency plan;
vi. Estimated water usage and water efficiency plans;
vii. Waste management plan; and
viii. For retail sales, provide an educational material dissemination plan.
c. Proposed signage:
i. Must comply with city’s sign regulations for size, area and type of sign, no
exceptions allowed.
ii. Internal illumination of signs is prohibited.
iii. No portion of the cannabis plant may be used in any sign visible from the
public right-of-way.
Page 42 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 13
iv. Provide sign size, height, colors, and design of any proposed signage at
the site.
v. Must include a sign inside the premises that states: “Smoking, ingesting,
vaping, eating or consuming cannabis or cannabis products on this site or in
a public place is prohibited.”
vi. Must include a sign at each entrance of a retail storefront that prohibits
persons under twenty-one years of age from entering.
d. An analysis that demonstrates neighborhood compatibility and a plan for
addressing potential compatibility issues.
e. Applications for retail storefronts shall include a vicinity map showing at least
one thousand feet of surrounding area and the distances to the following uses: 1)
one thousand feet from any preschool, elementary school, junior high school, high
school, public park or playground, whether located within or outside a CBZ
Overlay Zone; 2) six hundred feet from any licensed daycare center, whether
located within or outside a CBZ Overlay Zone ; and 3) three hundred feet from a
residentially zoned areas located within a CBZ Overlay Zone. Youth centers do
not require a buffer. Distance shall be measured from the nearest point of the
property line of the site that contains the commercial cannabis activity to the
nearest point of the property line of the enumerated use using a direct straight-
line measurement.
f. Proof of ownership, option to purchase, (or lease agreement or option to lease
with landowner’s express written consent to the proposed commercial cannabis
activity(ies) to be conducted on the premises) or othe r proof of right to apply for
the permit at the location.
g. A list of all other uses on the property.
5. Commercial Cannabis Development Standards. Each cannabis business is
required to meet the following standards:
a. Qualification through the Chapter 9.10, Cannabis Regulations, commercial
cannabis operator selection process to apply for a commercial cannabis operator
permit. Submittal of a use permit application to conduct the commercial cannabis
Page 43 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 14
business within the zones specified for each type of commercial activity listed
below.
b. Commercial cannabis facilities shall be allowed in areas demarcated with
CAN CBZ overlay zoning and as allowed in the underlying zone for each type of
commercial cannabis activity.
c. All commercial cannabis facilities shall be sited and/or operated in a manner
that prevents cannabis odors from being detected off site. Commercial cannabis
activities shall not create offensive or excessive odors, dust, heat, noise, light,
glare, smoke, traffic, or hazards due to the use or storage of materials, processes,
products or wastes, or other unreasonable impacts to people of normal sensitivity
living, working or lawfully present in the vicinity of the commercial facility.
d. All commercial cannabis operations must be concealed from public view at all
times and there shall be no exterior evidence of cannabis or cannabis products
occurring at the property visible with normal unaided vision from any public place,
or the public right-of-way. Commercial manufacturing of cannabis or cannabis
products shall be shielded to confine light and glare to the interior of the structure.
e. All commercial cannabis facilities shall include adequate measures that
address enforcement priorities for commercial cannabis activities, including
restricting access to the public and to minors and ensuring that cannabis and
cannabis products are only obtained from and supplied to other permitted
licensed sources within the state and not distribu ted out of state.
f. The use permit to be issued under this chapter shall include, but is not limited
to, the following conditions:
i. The obtaining and maintaining of the commercial cannabis operator permit
and appropriate state license.
ii. Payment of all applicable current and future state and local taxes and all
applicable commercial cannabis fees and related penalties established by the
city council, including but not limited to application, administrative review,
inspection, etc.
Page 44 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 15
iii. The commercial cannabis operator permit or a controlling interest in the
permit may not be assigned, transferred or bequeathed, by operation of law
or otherwise, unless permitted as described in Chapter 9.10, and the permit
shall terminate automatically on such event.
iv. Any commercial cannabis operator permit issued pursuant to this chapter
and Chapter 9.10 expires after one year, unless renewed.
v. Prohibition of on-site consumption of cannabis at: (A) a commercial
cannabis business or commercial cannabis activity location; (B) any other
business, club or cooperative or event, regardless if open to the public or only
to members; and (C) anywhere an entry or other fee is charged to attendees
or the host or thing of value or consideration is received or exchanged.
vi. Prohibition of the possession, storage, sale, distribution or consumption
of alcoholic beverages on the premises, or the holding of license from the
State Division of Alcoholic Beverage Control for the sale of alcoholic
beverages, or operating a business that sells alcoholic beverages on or
adjacent to the commercial cannabis activity site.
vii. No cannabis products or cannabis accessories may be displayed in
windows or visible from the public right-of-way or from places accessible to
the general public.
viii. Prohibition of minors and persons under the age of twenty-one on the
premises, even if accompanied by a parent or guardian, unless the person is
at least eighteen years of age and is also in possession of a valid physician’s
recommendation for medical cannabis.
ix. Outdoor storage of cannabis or cannabis products is prohibited.
6. Commercial Cultivation.
a. Commercial Cannabis Cultivation. Commercial cannabis cultivation may be
conditionally permitted indoors only, subject to the requirements of this section
and the obtaining and maintaining of a commercial cannabis operator permit
pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license,
in the following zones:
Page 45 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 16
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP).
b. A maximum of seventy thousand square feet of cumulative canopy area
(includes total canopy of either horizontal or vertical growing situations) for
cultivation and nurseries shall be allowed for indoor commercial cannabis
cultivation in the city within the zones identified above, including microbusinesses
under subsection (E)(12) of this section.
c. Outdoor commercial cannabis cultivation, including but not limited to
cultivation in greenhouses, hoop structures, and by mixed light (part daylight/part
artificial light), is prohibited. All commercial cannabis cultivation shall be
conducted only inside a fully enclosed, legally permitted structure that meets all
applicable building and other codes.
d. Commercial cannabis cultivation conditional permits include the following:
i. Specialty Cultivator. A maximum of no more than five thousand square
feet of canopy of indoor cultivation (either in horizontal or vertical growing
situations) and includes processing.
ii. Small Cultivator. A maximum of no more than ten thousand square feet of
canopy of indoor cultivation (either in horizontal or vertical growing situations)
and includes processing.
iii. Nursery, Cannabis. A maximum of no more than ten thousand square
feet of indoor propagation area (either in horizontal or vertical growing
situations).
e. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
ii. Canopy areas shall be easily identifiable for inspection and measurement.
Each unique area included in the total canopy calculation shall be separated
Page 46 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 17
by an identifiable boundary such as an interior wall or by at least ten feet of
open space (see “Canopy” definition in Chapter 17.156).
iii. All indoor cannabis cultivation shall be designed to accomplish zero net
energy use from the start of the operation.
iv. Pesticides and fertilizers shall be properly labeled, stored, and applied to
avoid and prevent contamination through erosion, leakage, or inadvertent
damage from rodents, pests, or wildlife.
7. Manufacturing.
a. Manufacturing (Nonvolatile) Permissible. Nonvolatile cannabis or cannabis
products manufacturing may be conditionally permitted indoors only, subject to
the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis
Regulations, and appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP).
b. Manufacturing (Volatile) Prohibited. Cannabis or cannabis products
manufacturing involving volatile solvents, processes, compounds or substances
is prohibited.
c. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
ii. Outdoor manufacturing of cannabis or cannabis products is prohibited.
iii. A complete description of all products used in the manufacturing process
including the cannabis supply chain, liquids, solvents, agents, and processes.
iv. Storage protocol and hazard response plan.
Page 47 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 18
v. Employee safety and training equipment plan, plus materials safety data
sheet requirements, if any.
8. Distribution.
a. Commercial cannabis distribution may be conditionally permitted, subject to
the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis
Regulations, and appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP);
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
9. Testing Laboratory.
a. Commercial cannabis testing may be conditionally permitted, subject to the
requirements of this section and the obtaining and maintaining of a com mercial
cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and
appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP);
iv. Office (O).
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
Page 48 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 19
ii. The cannabis testing laboratory, as proposed, will comply with all the
requirements of the state for the testing of cannabis, including dual licensure
and participation in an authorized track-and-trace program.
iii. The owners, investors, permittees, operators, and employees of the
cannabis testing laboratory will not be associated with, nor have any financial
interest in, any other form of commercial cannabis activity.
iv. The cannabis testing laboratory is accredited by an appropriate
accrediting agency as approved by the state and further described in Health
and Safety Code Section 5238 and as it may be amended.
v. The cannabis testing laboratory operating plan demonstrates proper
protocols and procedures for statistically valid sampling methods and
accurate certification of cannabis and cannabis products for potency, purity,
pesticide residual levels, mold, and other contaminants according to adopted
industry standards.
10. Retail—Storefront.
a. Commercial cannabis storefront retail may be conditionally permitted, subject
to the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit, and the appropriate state license, in the
following zones:
i. Retail commercial (C-R);
ii. Service commercial (C-S).
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
ii. Only three retail storefronts, which must front arterial streets, will be
allowed within the city. Selection of the retail commercial cannabis operator
will be selected from qualified commercial cannabis operators as set forth in
Chapter 9.10, Cannabis Regulations. One of the retail storefronts shall have
a medicinal license and may also have an adult use license.
Page 49 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 20
iii. Retail storefronts shall be located at least: 1) one thousand feet from any
preschool, elementary school, junior high school, high school, public park or
playground, whether located within or outside a CBZ Overlay Zone ; 2) six
hundred feet from any licensed day care center, whether located within or
outside a CBZ Overlay Zone; and 3) three hundred feet from any residentially
zoned area located within a CBZ Overlay Zone. Youth centers do not require
a buffer. Distance shall be measured from the nearest point of the property
line to the nearest point of the property line of the enumerated use using a
direct straight-line measurement. A subsequently established use described
herein shall not affect the continuation of a retail storefront in possession of a
Use Permit issued under the standards of this Section and Chapter 9.10.
iv. Retail storefronts must be separated from each other by at least one
thousand feet.
v. Hours of operation shall be limited between seven a.m. and nine p.m.
vi. Retail storefronts that possess a valid state of California cannabis retailer
license with an A-designation must include a sign at each entrance of a retail
storefront that prohibits persons under twenty-one years of age from entering.
Retail storefronts that possess a valid state of California cannabis retailer
license with an M-designation or both an A-designation and an M-designation
must include a sign at each entrance of the retail storefront that prohibits
persons under twenty-one years of age from entering unless the person is at
least eighteen years of age and is also in possession of a val id physician’s
recommendation for medical cannabis.
11. Retail—Non-Storefront (Delivery Services).
a. Commercial cannabis non-storefront retail may be conditionally permitted,
subject to the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis
Regulations, and the appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
Page 50 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 21
iii. Business park (BP).
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
ii. Hours of delivery shall be limited between six a.m. to ten p.m.
12. Microbusiness.
a. Microbusinesses fall into two groups as described below and may be
conditionally permitted, subject to the requirements of this section and the
obtaining and maintaining of a commercial cannabis operator permit pursuant to
Chapter 9.10, Cannabis Regulations, and the appropriate state license, in the
following zones:
i. Microbusinesses with no more than fifty percent of the gross receipts being
from cultivation, distribution and manufacturing are allowed in the following
zones:
(a) Retail commercial (C-R).
ii. Microbusinesses with no more than fifty percent of the gross receipts
being from storefront retail sales are allowed in the following zones:
(a) Manufacturing (M);
(b) Business park (BP).
iii. Microbusinesses located in the service commercial (C-S) zone are not
limited by gross sales receipts from cultivation, distribution, manufacturing or
retail sales.
b. Microbusinesses are subject to the seventy thousand square feet of canopy
cultivation citywide limitation (either in horizontal or vertical growing situations)
and the limit of three retail storefronts fronting arterial streets citywide set forth in
subsection (E)(10) of this section.
c. Development Standards.
Page 51 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 22
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis
Development Standards.
ii. A maximum of seventy thousand square feet of cumulative canopy for
cultivation and nurseries shall be allowed for indoor cultivation in the city
within the allowed land use zones.
iii. All indoor cannabis cultivation shall be designed to accomplish zero net
energy use from the start of the operation.
iv. Pesticides and fertilizers shall be properly labeled, stored, and applied to
avoid and prevent contamination through erosion, leakage, or inadvertent
damage from rodents, pests, or wildlife.
v. Only three retail storefronts, which must front arterial streets, will be
allowed within the city. Selection of the retail commercial cannabis operator
will be selected from qualified commercial cannabis operators as set forth in
Chapter 9.10, Cannabis Regulations. One of the retail storefronts shall have
a medicinal license and may also have an adult use license.
vi. Any microbusiness with a retail storefront shall require a planning
commission use permit.
vii. Retail storefronts shall be located at least: 1) one thousand feet from any
preschool, elementary school, junior high school, high school, public park or
playground, whether located within or outside a CBZ Overlay Zone ; 2) six
hundred feet from any licensed day care center, whether located within or
outside a CBZ Overlay Zone; and 3) three hundred feet from any residentially
zoned area located within a CBZ Overlay Zone. Youth centers do not require
a buffer. Distance shall be measured from the nearest point of the property
line to the nearest point of the property line of the enumerated use using a
direct straight-line measurement. A subsequently established use described
herein shall not affect the continuation of a retail storefront in possession of a
Use Permit issued under the standards of this Section and Chapter 9.10.
viii. Retail storefronts must be separated from each other by at least one
thousand feet.
Page 52 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 23
ix. Hours of retail shall be limited to between nine seven a.m. to eight nine
p.m. and delivery shall be limited to between six a.m. to ten p.m.
x. Retail storefronts that possess a valid state of California cannabis retailer
license with an A-designation must include a sign at each entrance of a retail
storefront that prohibits persons under twenty-one years of age from entering.
Retail storefronts that possess a valid state of California cannabis retailer
license with an M-designation or both an A-designation and an M-designation
must include a sign at each entrance of the retail storefront that prohibits
persons under twenty-one years of age from entering unless the person is at
least eighteen years of age and is also in possession of a valid physician’s
recommendation for medical cannabis.
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalid or unenforceability shall not affect the validity or
enforcement of the remaining provisions of this Ordinance, or any other provisions of the
City’s rules and regulations. It is the City’s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivision s,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
Page 53 of 54
Planning Commission Resolution No. PC-XXXX-2025
CODE-0051-2025 (Citywide)
Page 24
SECTION 5. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of _____ 2025, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 202 5, on the following
vote:
AYES:
NOES:
ABSENT:
______________________
Mayor Erica A. Stewart
ATTEST:
____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of San Luis Obispo, California, on ______________________.
______________________
Teresa Purrington
City Clerk
END OF DOCUMENT
Page 54 of 54