Planning commission approves Megan’s Organic Market permit to add cannabis delivery services

The San Luis Obispo Planning Commission on a unanimous vote approved a modification to Megan’s Organic Market’s conditional use permit to add cannabis delivery services at 280 Higuera Street.

The amendment allows the storefront to operate one to two unmarked electric delivery vehicles, requires employees to be at least 21, and imposes conditions on vehicle storage, camera and GPS recording, and delivery hours, staff said.

Planning staff said the requested change implements an ordinance adopted by the City Council on Oct. 1, 2024, that created a zoning pathway for existing retail cannabis storefronts to add delivery. Under state law, retail storefronts are entitled to deliver; the city’s ordinance amended Table 2-1 of the zoning regulations to provide a local process for existing operators to add delivery services.

Ivana Gomez, the city’s cannabis business coordinator, presented the application and recommended approval conditioned on the revised findings and conditions of approval. Gomez said the applicant proposes one to two unmarked electric delivery vehicles equipped with GPS and continuous camera recording during deliveries, plus fully enclosed secure compartments for cannabis storage. Delivery vehicles would be loaded and unloaded in an existing secured delivery bay on site; no physical changes to the site were proposed.

New conditions described by staff include employee requirements (employees must be at least 21 and carry valid photo identification), limits to delivery destinations (no deliveries to schools, day cares, or publicly owned land), retention of camera footage for audit during quarterly compliance inspections, and vehicle parking rules. Condition language limits the default number of vehicles to two; any additional vehicles would require approval by the Community Development Director rather than return to the Planning Commission. One vehicle may be parked overnight in the business parking area to preserve customer parking, staff said. Delivery hours were proposed at 7 a.m. to 9 p.m., consistent with the city’s retail storefront hours.

Commissioners asked staff to clarify whether cameras would record inside vehicles. Gomez said the interior recording was proposed by the applicant and is part of the application; she noted that interior cameras are not a state requirement but were included by the applicant as a safety measure. Commissioners also asked whether transportation staff had concerns about increased vehicle movements at the Diagonal/Higuera intersection. Gomez said Transportation reviewed the request and had no concerns; she added staff expects delivery to reduce the number of customers driving to the store.

There was no public comment. A motion to approve the conditional use permit modification was seconded and passed on a roll call vote with Commissioners Munoz Morris, Flores, Jorgensen and Vice Chair Eric Tolley recorded as voting yes.

The resolution approved by the Planning Commission modifies the site’s conditional use permit to add delivery services subject to the conditions described in staff’s report and the ordinance cited by staff. The approved modifications do not authorize changes to the physical site beyond use of the existing secure delivery bay.