Canyon Lake council gives first reading to ordinance cutting commercial cannabis retailer permits to one

Canyon Lake — The Canyon Lake City Council on a unanimous roll-call vote gave first reading to Ordinance No. 269, an amendment to Chapter 4.2 that would reduce commercial cannabis retail permits in the city from two to one and make related ordinance changes. City Manager Aaron Brown said the staff recommendation seeks to affirm prior bid processes and move the city back to the "one permit" model that council originally intended to attract a sustainable operator.

During discussion, one council member said the agenda language and public-safety concerns briefly gave them pause and raised the possibility of prohibiting retail entirely; the speaker emphasized the council's revenue goals but asked whether public safety should override that objective. Another council member asked whether the city's sensitive-use buffers (proximity to schools, libraries and churches) already addressed public-safety concerns.

The City Attorney explained the ordinance's whereas clause as a recitation of the city's police power to protect public health, safety and welfare and said the staff's objective was to create a sustainable business model that produces reliable revenue for the city. "By having a more sustainable business model, we've obviously had some fits and starts with the program," the City Attorney said, and he noted that surrounding jurisdictions already host cannabis retailers, so regional competition would remain.

City Manager Brown added that a smaller market like Canyon Lake is unlikely to support two retail permits sustainably and that a single, well-qualified operator is more likely to provide consistent revenue; he said the council has the ability to increase the number of permits in the future if conditions change. Staff and the City Attorney told council there were no reported public-safety incidents tied to the city's prior operators.

After discussion and lack of public comment on the item, an unnamed council member moved to take staff's recommendation and a second was recorded. The roll-call vote was unanimous (Aye: Mayor Pro Tem Castillo, Council member Smith, Council member Stever, Council member Welty, Mayor Terry) and the motion passed on first reading.

What happens next: The ordinance was introduced and read for the first time; additional readings or formal adoption steps required by the city's rules will follow if the council schedules them.