Santee outlines local retail cannabis permit process; council to interview 16 applicants in July

Santee City Council held a special meeting June 11, 2025, for a staff presentation on the city’s Cannabis Business Permit Ordinance and the retail application process, including timelines, local standards and how city review will interact with state licensing.

City staff said the city received 16 retail permit applications during the Sept. 10–Oct. 24, 2024 application period and that those applications have progressed through three of four evaluation phases; Phase 4 interviews are expected in early July and the council will make final permit awards at its discretion. “The city council has full discretion over which applicants, if any, will be awarded a permit,” a city staff member said during the presentation.

The ordinance, adopted after staff work beginning in March 2021 and additional work by a council ad hoc subcommittee through March 2024, creates a one‑year cannabis business permit with annual renewal and allows up to four retail permits, including microbusinesses with storefront retail. City staff emphasized that the local permitting framework is intended to “set standards that reflect our community's values and priorities” and to be applied alongside state Department of Cannabis Control (DCC) requirements.

Why this matters: the local ordinance sets operating standards, buffer distances and community benefit expectations that affect where and how retail cannabis businesses can operate in Santee. Because both city and state approvals are required, applicants must satisfy two separate processes before opening.

Key details from the presentation

• Application and review timeline: Phase 1 (eligibility review) ran Oct. 2024–Jan. 2025; Phase 2 was merit scoring; Phase 3 began April 2025 with applicant interviews; Phase 4 (council interviews/awards) is scheduled for late June/early July 2025. The council will also review the Phase 4 process at its June 25 meeting.

• Number of applications and potential awards: 16 applications were received; up to four retail permits may be issued.

• Local requirements and limits: the ordinance limits retail operating hours to 9 a.m.–9 p.m. daily, requires a one‑year permit with annual renewal, mandates background checks for owners and employees, requires security plans prepared by qualified security professionals, and requires a 3‑year pro forma in the business plan submission.

• Buffer distances: cannabis businesses must be at least 900 feet from parcels designated as sensitive uses within the city (schools, day cares, religious institutions, youth centers) and 600 feet from sensitive uses located outside the city whose buffers extend into Santee.

• Community benefits and fees: applications included a community benefits and investment plan and proposed direct fees to the city; staff said 5% of gross receipts was anticipated and specified in the application procedures as the expected direct fee rate in the application materials.

• Approvals and inspections: selected applicants will coordinate with the city attorney to finalize a community benefits agreement, obtain applicable planning and building permits, coordinate with the DCC for state licensing, and obtain a city business license. Staff said inspections and audits will occur annually or as necessary and that the city manager may revoke a cannabis business permit for violations of state or local law or the community benefits agreement. Staff also said renewal applications must be filed at least 90 days before permit expiration.

Council questions and staff follow‑up

Council members asked about how the city and state processes would interact, state processing times and fees, enforcement and the risk of false complaints, and whether the city could limit sales to those 21 and older (as opposed to allowing medical purchases at 18). “Are there two processes that go on at the same time?” the Mayor asked during the question period. City staff and the DCC representative explained some components can proceed concurrently, but the state will verify a city’s approval as part of its licensing review.

Councilmember Rob asked about state timelines and was told that, even for complete applications, state processing can take months. Councilmember Rob also pressed whether state licensing fees apply per retail location or per business entity; staff said they would provide exact fee details after the meeting. The Mayor asked staff to follow up about whether the city can or should impose penalties when a competitor files a demonstrably false complaint; staff agreed to report back with more information.

On the 18‑vs‑21 question, city staff noted the ordinance currently allows age‑restricted access consistent with state rules (21 for recreational sales; 18 with a valid physician’s recommendation where medical sales are permitted) and that the ordinance did not currently preclude medical‑card purchases; the council discussed whether to address that in ordinance language going forward.

No formal votes or permit awards were taken at the June 11 meeting; the presentation concluded and no public speaker slips were received. The next formal steps are the June 25 City Council item on the Phase 4 process and the scheduled council interviews in late June/early July, when the council may award permits.