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Planning commission recommends new non‑retail cannabis overlay (CCNR) for Mission and Geneva corridors

City of Daly City Planning Commission · February 4, 2026
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Summary

Commissioners recommended a zone change to create a Commercial Cannabis Non‑Retail combining district (CCNR) that would allow non‑retail cannabis uses — manufacturing, distribution, and office-like operations — on select parcels along Mission Street and Geneva Avenue; staff said the rezoning is proposed to be added to chapter 5 of the Daly City Municipal Code and will go to council.

The Daly City Planning Commission recommended that the City Council approve a zone change creating a new Commercial Cannabis Non‑Retail (CCNR) combining district for parcels fronting Mission Street (between Crocker Avenue and Templeton Avenue) and portions of Geneva Avenue (between Talbot Street and Bayshore Boulevard, and between Castillo Street and Calgary Street).

Staff said the CCNR concept responds to prior council direction after public testimony and would allow non‑retail cannabis operations — such as manufacturing, distribution and office‑type uses involving cannabis products — but would not permit storefront retail sales in those overlay parcels. "The new overlay zoning district would be called CCNR — commercial cannabis, but not retail," a staff presenter said, and explained that detailed permitted uses would be adopted in Chapter 5 of the Daly City Municipal Code if the council approves the zone change.

Staff told commissioners the proposal includes public-noticing to property owners within 300 feet on both the San Mateo and San Francisco sides; only one resident inquiry had been received before the meeting. Commissioners asked whether there is demand for non‑retail cannabis uses; staff said anecdotal indicators suggest demand for cannabis-related uses generally and that demand for non‑retail uses is plausible but outside the planning division's purview to market.

The commission moved, seconded and passed a recommendation to find the rezoning exempt from CEQA review (staff cited applicable CEQA guidance) and to forward the zone change to City Council for action. The staff report included the proposed overlay map and suggested text to add to the municipal code; the council would adopt the chapter‑5 regulatory language governing allowed uses, operational standards and any conditional‑use or permit requirements.

If the council approves the zone change and the municipal-code updates, the CCNR overlay would expand opportunities for cannabis manufacturing, distribution and other non‑retail uses in targeted commercial corridors while continuing to prohibit storefront retail on those parcels.