Canyon Lake — The City Council voted unanimously to take the staff recommendation on Ordinance No. 269 on first reading, a measure that would amend Chapter 4.2 governing commercial cannabis businesses and reduce the number of retail permits from two to one.

City Manager Aaron Brown told the council staff sought to "affirm the end of the prior bid process" and to reduce the available permits from two to one to attract a single, sustainable operator. Brown said that model would reduce the risk that a second operator could undercut a primary operator and would make it likelier that sales and tax revenues stay in the city.

An unidentified council member raised public-safety concerns and suggested considering allowing zero retail permits if safety risks were paramount. The City Attorney, who drafted the resolution language, told the council the ordinance’s whereas clause is a recitation of the city's police power to protect public health, safety and welfare and that the principal staff concern was sustainability of revenue: "the revenues that are derived from the operation of cannabis dispensaries ... goes directly to public safety programs within the city." The city attorney and City Manager both said they were not aware of prior public-safety incidents tied to the city's previous cannabis operators; Aaron Brown said, "I can confirm there were 0."

Council members discussed the tension between the earlier stated goal of increasing revenues and the public-safety framing in the ordinance. Several members said a single permit better balances those goals and leaves the council able to add permits later if circumstances change. After brief discussion and no public comments, a motion to take staff's recommendation was seconded and approved on roll call, with all members voting "Aye."

The action was a first reading; it affirms staff’s recommended direction and ordinance language changes but does not constitute final adoption. The council may return for further readings, amendments, or final adoption as required by municipal procedure.