Title
Consideration of a Resolution Recommending that the City Council Adopt an Ordinance Amending San Leandro Zoning Code to Allow Cannabis Dispensaries, Subject to a Conditional Use Permit, in Commercial and Industrial Zoning Districts Outside the Downtown Area Zoning Districts.
Staffreport
SUMMARY AND RECOMMENDATION
Staff recommends that the Planning Commission adopt a Resolution recommending that the City Council adopt an Ordinance amending the Zoning Code to allow Cannabis Dispensaries, subject to a Conditional Use Permit, in the City’s commercial and industrial zoning districts, excluding the Downtown (DA) zoning districts. On September 14, 2026, the City Council directed staff to prepare the proposed Zoning Code amendments.
BACKGROUND
Cannabis Ordinance
San Leandro adopted a Medical Cannabis Dispensary Ordinance (Ordinance No. 2013-020) in December 2013 to establish a regulatory framework that allowed up to two Medical Cannabis Dispensaries to operate within the City. The Ordinance required the issuance of both a Dispensary Permit and a Conditional Use Permit, established numerous performance standards, and required minimum separations of 1,000 feet from schools, libraries, youth centers, parks, houses of worship, and 500 feet from residential zones.
The Ordinance has since expanded in steps. The cap rose to three Dispensary Permits in 2016. Ordinance No. 2019-004 authorized adult-use sales beginning in January 2020. The cap rose to four Dispensary Permits in 2025. All four Dispensary Permits have been issued. Three dispensaries operate today, all in industrial districts: NUG Wellness at 3089 Teagarden Street and at 1911 Fairway Drive, and Harborside San Leandro at 1965 Marina Boulevard.
Policy Development
Since 2025, the Rules Committee and City Council have met multiple times to discuss potential changes to the City’s cannabis regulations. One of the central discussion topics was whether to expand the number of zoning districts where a Cannab...
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