Clayton council adopts emergency ordinances banning adult-use cannabis operators

The Clayton City Council on an emergency vote approved two ordinances prohibiting adult-use cannabis cultivators, processors and retail dispensaries within city limits, passing both measures by a 5-0 roll call after a short public hearing.

City staff told the council that a provision in the pending Ohio budget bill would take effect July 1, 2025, and could remove a municipality’s authority to prohibit or limit adult-use cannabis operators unless a prohibition is already in place. Martina (city staff) told council members, “if you don't have a prohibition or restrictions in effect as of July 1, then you're not allowed to prohibit them from coming into your city.”

The vote came after three members of the public urged the council to approve the ban. Linda (school board member) said she and the school board “felt like this was not a good idea in our city” and thanked the council for listening. Chris Poulos, who gave his full name and address during public comment, said state bills under consideration were “stripping away the economic incentive” for cities and urged the council to act now.

Why it matters: council members and staff framed the measure as a protective action ahead of impending state changes. Martina explained two related consequences in the budget bill as presented to the council: it would (1) repeal the Ohio Revised Code provision the city relied on to prohibit adult-use operators and (2) phase out a host-community tax allocation, which staff described as 36% of the special tax collected from dispensaries. Martina cautioned that certain activities would remain allowed under state law even if the ordinances passed: home cultivation is permitted, research activities cannot be prohibited, and holders of state medical licenses who later obtain the state’s adult-use endorsement (a referenced “10B” license) could add adult-use sales where zoning and licensing allow.

Council discussion and options: councilmembers asked whether zoning changes could further limit where medical or adult-use operations might locate in the future (for example, restricting them to the Main Street commercial district rather than mixed-use or other business corridors such as Hooke Road). Martina said the city could pursue a zoning amendment later and refer it to the planning commission for recommendation, but the ordinances before council were narrowly focused on prohibiting adult-use operators under current state rules.

Formal actions: Councilmember Merkel moved to declare the planning-and-zoning ordinance an emergency and to approve it; the motion passed on a roll call vote (Farmer: yes; Merkel: yes; Kelly: yes; Bachman: yes; Stevens: yes). The council then approved the second ordinance, amending the business code chapter, also as an emergency by the same 5-0 tally. Earlier in the meeting council voted to excuse Councilmembers Gorman and Henning (motion by Merkel, second by Kelly) and to open a public hearing (motion by Merkel, second by Bachman). The minutes show motions to open and close public comment, and to close the public hearing, consistent with the council’s standard procedure.

Limitations and remaining authority: Martina and other speakers repeatedly noted limits to local authority under state law. Martina said home grow and research activities are not subject to local prohibition and explained that medical license holders who obtain a state adult-use endorsement could operate adult-use sales if they meet state licensing criteria and are in permitted zoning. Martina also told council that the host-community tax allocation would be phased out over five years if the budget bill becomes law and if the city does not already have dispensaries that qualify for the allocation as of July 1, 2025.

Public comment: three residents spoke in favor of the prohibition. Linda (school board member) referenced a resolution the local school board previously passed opposing adult-use operations in Clayton. Debbie Poulos asked whether any applications for adult-use establishments had been filed recently; a staff reply in the hearing confirmed there had been at least one application in the prior year. Chris Poulos thanked staff for bringing the proposal and reiterated concerns about state actions removing local control and fiscal incentives.

What’s next: the ordinances were adopted as emergencies and took immediate effect per the council’s action. Staff said further zoning refinements could be pursued and referred to planning commission if council wishes, and indicated the city will monitor state legislation and licensing developments that could affect implementation.