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Study session leaves Novato split on storefront cannabis; staff to return with draft ordinance
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Summary
Staff presented a market study and a resident survey showing about two‑thirds support among Novato respondents for storefront retail. Public comment was sharply divided—health advocates warned of youth harms while industry and business supporters cited regulation and revenue—so council continued the study until the next regular meeting with no ordinance adopted.
City staff on April 14 presented results from a community survey (about 800 responses) and a market analysis as part of a study session on whether Novato should allow commercial cannabis storefronts.
Claire Hartman, community development director, summarized engagement work and said the staff‑run survey drew its largest local response ever, with roughly 67% of Novato respondents indicating support for allowing storefront retail. A market study presented to the council estimated the Novato cannabis market at approximately $8.6 million per year; staff projected roughly $172,000 annually in local sales and transaction taxes and studied a potential 3%–6% community benefit fee that could yield an additional $250,000–$500,000 a year depending on the rate and capture.
Staff described policy options common to other cities: setbacks from “sensitive uses” (K–12 schools, youth centers, daycares) consistent with state law; buffer distances between storefronts (e.g., 600–1,000 feet) to avoid overconcentration; and a cap on the number of storefronts (staff noted community interest in limiting the count to one, two, or three). Staff also described operational standards to limit youth exposure and enforcement avenues, and said the police department and county health would be partners on enforcement and health questions.
Public comment filled the meeting. Speakers against storefronts included public‑health groups, parents, educators, and students who cited local data showing high youth use and linked storefront visibility to normalization and increased youth access. “Our eleventh graders use cannabis at 3.6 the statewide average,” a public‑health representative told the council, urging caution. Several speakers disputed the market projections as overly optimistic and flagged enforcement and social‑cost questions.
Industry representatives and other speakers argued that regulated storefronts improve product safety, enable testing, and provide local tax revenue for public services. Mercy Wellness’ CEO described security practices and argued a regulated store reduces unsafe, untested products on the street.
Councilmembers asked for more health and demographic data, and several said they wanted a robust engagement plan with schools and parents. Because the council was split on whether to direct staff to draft an ordinance, the body took no action to adopt any policy at the meeting. Council voted to continue the item to the next regularly scheduled council meeting so the full five‑member council can consider the matter.
Next steps: staff will prepare draft policy language, maps showing possible eligible zoning districts and buffers, and further engagement with public‑health partners, the police department, and the school district before returning to the council.
