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Lake Elsinore Council moves to ease some cannabis rules, approves changes to development agreements for six businesses
Summary
The council introduced an ordinance amending zoning rules for cannabis uses and approved amendments to development agreements for six existing cannabis businesses to revise community benefit fees and payment timing; planning commission had recommended approval and council votes were unanimous.
The Lake Elsinore City Council introduced by title an ordinance amending Chapter 17.156 of the Lake Elsinore Municipal Code governing cannabis uses and approved amendments to development agreements for six existing cannabis businesses.
Community Development Director Abraham and staff member Demar Sabrahim told the council the 2017 ordinance had limited cannabis businesses to M1 and M2 manufacturing zones, capped permits at 10 total (5 in each zone) and limited retail to accessory use not exceeding 25% of floor area. Since then the city has issued 20 facility approvals (15 currently operational, four expired and one in permit processing). Planning staff reported compliance issues related to cultivation and retail — for example unpermitted signage, special events and hours exceedances — and also said operators raised concerns about the size of the annual community benefit fee (CBF), the number of permits, and hours of operation.
The proposed zoning amendment would consolidate the permit cap to a maximum of five combined across both M1 and M2 (reducing the prior split), remove the public‑convenience finding needed to exceed the cap, extend operating hours from 9 p.m. to 10 p.m., and remove the 25% accessory retail‑space limitation while allowing retail only in conjunction with other cannabis uses such as cultivation, distribution or manufacturing. Planning Commission reviewed the amendments on May 20, 2025, and recommended approval to the council.
Separately, staff presented proposed amendments to the development agreements for six existing businesses — Modern Leaf (Modern Leaf Culture, 31877 Bridal Road), Alba Systems (31879 Cordon Road), LE Investment Group/ Mister Nice Guy (31311 West Minthorn Street), Green Origins LE/ The Syndicate (504 Central Avenue), The Syndicate (31885 Cordon Road) and The Healing Tree (480 Third Street). Principal Planner Nancy Winn said the DA amendments would: set separate CBF rates for retail versus non‑retail uses; cap retail CBF at $25 per square foot (ceasing the 4% annual escalation when the cap is reached); reduce the non‑retail CBF to $5 per square foot with no annual increase; allow monthly CBF payments rather than an annual lump sum; and refine the definition of floor area to distinguish retail and non‑retail uses.
Councilmember Sheridan praised the subcommittee and staff work; Councilman Sherry (Sheridan) and Councilwoman Johnson each thanked staff for their work. No members of the public spoke at either hearing.
The council voted to introduce the zoning ordinance amendment (motion by Councilwoman Johnson, second by Councilman Sheridan) and to introduce and waive further readings for the six DA amendment ordinances (motion by Councilman Sheridan, second by Councilwoman Johnson). Meeting minutes record the ordinance introductions and waivers as passing 5–0.
What this changes: the ordinance amendments remove a numeric split between M1 and M2 permits, reduce some regulatory restrictions on hours and retail configuration, and eliminate the public‑convenience finding for exceeding permit limits. The DA changes lower and restructure community benefit fees and allow monthly payments, measures staff said were intended to improve business viability while strengthening code clarity and enforcement.
Next steps: introduction by title means the council scheduled ordinance readings; staff also noted development‑agreement amendments will be processed under the ordinances and returned for final readings and any required findings.
