Council introduces commercial cannabis ordinance, limits storefronts to five

The Crescent City Council on Monday introduced Ordinance No. 860 to revise commercial cannabis rules in the city’s zoning code, including a cap of five storefront retailers, a prohibition on new indoor cultivation permits, and expanded enforcement tools.

Planning staff explained the draft ordinance includes required licensing and operational standards: a $15,000 surety bond for commercial cannabis permittees, a requirement that a permitted storefront open within 24 months of issuance, and a provision that a commercial storefront closed for 60 consecutive days be deemed to have surrendered its permit. The planning commission recommended several provisions and staff said the changes were partly motivated by a need to improve enforcement options after odor and other complaints tied to an existing cultivation operation.

Council members debated the need for a cap and the 60-day surrender language. One councilor argued market forces are already limiting storefront growth and moved to remove the cap; other council members and public commenters said the cap helps the planning commission control location and concentration. Several members requested additional wording to allow appeal or extenuating circumstances for businesses that briefly close (for example, a medical emergency). City attorney Rice and staff suggested they could add an appeal mechanism to the ordinance prior to final adoption.

After discussion the council recorded a motion and second to introduce Ordinance No. 860 as presented; staff will return with any clarifying language and the ordinance will come back to council for adoption.

The introduction does not change current storefront counts (staff said five is the current number of active retailers) but establishes regulatory criteria and enforcement mechanisms that will govern future permits.