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Hayward council approves Fino’s (Phenos) dispensary CUP after heated hearing, 5–2
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Summary
After a lengthy hearing with more than 100 public speakers, the Hayward City Council approved a conditional use permit for Finos (Phenos) to operate a cannabis dispensary at 21463 Foothill Blvd.; vote passed 5–2 amid neighbor concerns about clustering, traffic and proximity to a martial-arts studio.
The Hayward City Council voted 5–2 on Dec. 16 to approve a conditional use permit (CUP UP‑25‑0011) allowing Finos Hayward (operated by Esther Lopez with partner Engelbert/Bert Sarkis) to open a cannabis retail dispensary in roughly a 14,928‑square‑foot tenant space at 21463 Foothill Boulevard.
Staff presentation and council questioning: Senior Planner Steve Kowalski and planning manager Jeremy Lekirco laid out the city’s regulatory history (a 2017 ordinance that capped dispensaries and a later 2020 update that adjusted zoning) and explained that the applicants hold one of the city’s limited business permits and needed a new CUP for this location. Staff recommended approval, saying the application met the municipal code’s requirements and proposing conditions including extensive security, annual inspections and the ability to revoke the CUP if calls for service or compliance failures rose.
Applicant commitments and community benefits: The applicants proposed multiple security measures — two professional guards during hours of operation, an Internet‑protocol camera system covering interior and exterior, 24‑hour monitoring, bollards at the storefront and ID scanners — and a community benefits package including charitable contributions and an advance payment of $1,000,000 in projected first‑year cannabis tax revenue. In rebuttal, the applicant agreed to post a community hotline and to continue proactive outreach to neighbors and local groups.
Public reaction: The hearing drew intense turnout: about 57 in‑room cards plus dozens of callers and over 50 additional in‑person speakers in a largely split record. Neighbors living adjacent to the site, parents and dojo representatives urged denial, citing traffic and parking concerns, proximity (about 150 feet from the dojo entrance, staff said), multiple nearby cannabis outlets and potential impacts on children and neighborhood character. Opponents cited the planning commission’s prior 5–1 recommendation to deny. Supporters — including medical users, veterans and industry representatives — argued the proposal would move sales out of the unregulated market, create jobs, and generate local tax revenue and charitable contributions.
Council deliberation and vote: Council members split along competing priorities. Supporters said the application complied with the city’s mapping and zoning rules, pointed to the security plan and community‑benefits commitments, and emphasized the city’s need for revenue; opponents cited the planning commission denial and neighborhood impacts. The motion to approve carried 5–2 (yes: 5; no: 2).
What passes with the CUP: the approval was conditioned on the security and operational measures staff recommended, annual inspections and the city’s right to revoke the CUP if compliance failures or elevated calls for service occur. Councilmembers urged neighbors to report problems promptly so staff and police could act under the terms of the CUP.
Provenance: Staff presentation, applicant testimony, hundreds of public comments and the roll‑call vote on the record (Dec. 16, 2025).
