Title
Consideration of a Resolution Recommending that the City Council Adopt an Ordinance Amending Various Sections of the Zoning Code to Modify Regulations Pertaining to the Sale of Tobacco-Related Products and E-cigarette-Related Products within City Limits.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff is proposing Zoning Code amendments to update regulations related to the sale of tobacco-related products and e-cigarette-related products within City limits.
Staff previously presented recommended code amendments to the Planning Commission on May 1, 2025. The Planning Commission held a public hearing and voted to recommend City Council adoption of the proposed amendments. The City Council later directed staff to perform additional community engagement with stakeholders (including local Convenience Store owners) prior to returning for adoption. Staff performed additional engagement, and based on the feedback that was received, made minor amendments to the proposal. Those minor amendments are being presented to the Planning Commission for recommendation to the City Council.
Staff recommends that the Planning Commission adopt a Resolution recommending City Council adoption of the proposed Zoning Code amendments, as shown in Attachment 1, Exhibit A.
BACKGROUND AND ANALYSIS
Purpose
In recent years, staff has observed the establishment of a number of unpermitted Tobacconist/Cigarette Stores (businesses devoted primarily to the sale of tobacco-related and e-cigarette-related products) in violation of the City’s Zoning Code. Under the City’s current Zoning Code, a Tobacconist/Cigarette Store is defined by: (1) devoting 20% or more of total floor area or display area to; or (2) deriving 75% or more of gross sale receipts from, the sale or exchange of tobacco-related products.” The Zoning Code limits Tobacconist/Cigarette stores to three zoning districts (CC, SA-1, SA-3) as a conditionally permitted use. Additionally, the Zoning Code requires Tobacconist/Cigarette stores to be located at least 1,500 feet from certain sensitive uses like schools and parks, as well as other Tobacconist/Cigarette stores.
Under the City’s current Zoning Code, businesses may sell tobacco-related products within the City of San Leandro without being classified as a Tobacconist/Cigarette store so long as the percentage of the business dedicated to tobacco products is less than the thresholds referenced above. This is significant because it allows a business to be legally established without complying with the separation requirements or more stringent Conditional Use Permit review process applicable to Tobacconist/Cigarette stores. Some of these businesses are legitimate businesses, such as Convenience Stores or Supermarkets. However, other businesses may initially abide by the limit on a maximum of 20-percent of the total floor area or display area for tobacco products, only to later easily, but illegally, expand the percentage of the business dedicated to tobacco products. This loophole enables the easy establishment of illegal smoke shops.
On June 3, 2024, the City Council enacted a Zoning Moratorium to prohibit the sale of tobacco related products or electronic-cigarette-related products in new locations (excepting premium cigar retailers and supermarkets greater than 20,000 square feet) and prohibit the establishment of new Tobacconist/Cigarette stores. On July 1, 2024, City Council extended that 45-day Zoning Moratorium to a full two years to allow staff the time to study the issue and prepare code amendments.
Initial Proposal
In April 2025, staff released draft Zoning Code amendments for public review. Key provisions included:
• Prohibition of new tobacco retailing, except as an accessory use to:
o Drugstores
o Beer and wine stores
o Liquor stores
o Supermarkets greater than 20,000 square feet
o Premium cigar retailers
• Limits on accessory tobacco retailing, including:
o Maximum 10% of gross floor area used for tobacco-related products
o Maximum 10 linear feet of display area for tobacco-related products
o Maximum 25% of gross receipts derived from tobacco-related products
Previous Planning Commission Action
On May 1, 2025, the Planning Commission held a public hearing and voted to recommend City Council adoption of the draft amendments.
Previous City Council Action
On July 7, 2025, the City Council held a public hearing to consider the recommended amendments and directed staff to conduct additional community engagement, particularly with convenience store owners, before bringing the amendments back for adoption.
Public Engagement
In response to Council direction, staff conducted additional outreach in August 2025:
• August 5: Online Zoom meeting with 11 participants
• August 20: In-person office hours with one participant
• August 28: In-person outreach meeting with four participants
At these meetings, staff clarified that the new limitations would apply only to new retailers, not existing permitted retailers. Participants were able to ask questions and suggest revisions.
Based on stakeholder feedback, staff proposes the following revisions to the recommended Zoning Code amendments:
1. Allow tobacco retailing at new Convenience Stores as an accessory use. Add Convenience Stores to the list of primary uses that could accommodate tobacco retailing as an accessory use.
2. Require a Conditional Use Permit for new Convenience Stores in the Bay Fair Transit Oriented Development (B-TOD) zoning district. This would align B-TOD requirements with other zoning districts and ensure public review and Planning Commission oversight for all new Convenience Stores selling tobacco products.
3. Increase maximum tobacco display area from 10 linear feet to 15 linear feet. Convenience Store owners advocated for this revision to match standard shelving configurations. Staff finds this adjustment reasonable.
These revisions are reflected in the proposed Zoning Code amendments attached to this report.
GENERAL PLAN CONFORMANCE
The proposal is consistent with numerous policies and actions in the City’s General Plan, including:
Policy LU-1.2: Code Enforcement. Maintain aggressive code enforcement and nuisance abatement programs to ensure that San Leandro’s neighborhoods remain attractive and free of public nuisances.
Action LU-7.3.A: Zoning Review. Regularly review the Zoning Code to respond to real estate market and development trends, as well as changes in technology.
ENVIRONMENTAL REVIEW
The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project that has the potential for causing a significant effect on the environment under CEQA Guidelines Section 15061(b)(3). No further environmental review is necessary.
PUBLIC OUTREACH
A notice of public hearing was published for this project in the East Bay Times Daily Review newspaper and at City Hall. Additionally, interested parties and businesses that recently sold or currently sell tobacco products were sent written notices.
RECOMMENDATION
Staff recommends that the Planning Commission adopt Resolution 2025-XX recommending that the City Council approve the proposed amendments to the Zoning Code.
ATTACHMENTS
Attachment 1: Planning Commission Resolution 2025-XX
Exhibit A: Zoning Code Amendments (Clean Version)
Attachment 2: Zoning Code Amendments (Redline-Strikethrough Version)
PREPARED BY:
Wayland Li, AICP, Planning Manager
Community Development Department