Council weighs zoning options for cannabis distribution, considering B3 commercial sites

The committee considered a planning-commission recommendation on zoning for cannabis distribution and cultivation. John Gabriel summarized three options: do nothing (leave current rules in place), treat distribution as a conditional use within an existing B3 commercial zoning district, or create a new zoning district specifically for distribution.

Councilmembers expressed differing views. One member said designating distribution from the bridge east to the waterfront could place controversial uses in predominantly residential areas and unfairly concentrate them in Wards 4 and 5. Another member argued the market-entry costs and licensing barriers make it unlikely a dispensary would locate in the city, and favored leaving regulation to the market or permitting distribution in B3 commercial spaces. Staff and council asked that an earlier $35,000 zoning study commissioned in 2018 be located and reviewed before taking action; a council member requested the study’s recommendations be shared.

Discussion touched on distinguishing distribution (retail) from cultivation (grow facilities), noting grow operations are large, secure, and often sited in agricultural or industrial areas. If council moves to permit distribution, members suggested prioritizing freestanding commercial buildings that are currently vacant rather than creating a special district that would concentrate outlets near neighborhoods.

No formal vote was taken; councilmembers asked staff to provide the 2018 study and additional analysis to inform a future decision.