Monterey council pauses action on two cannabis permits, asks staff to return with options

Monterey — City staff recommended a six‑month pause on awarding two remaining cannabis retail permits because local operators say about 70% of customers at recent openings are residents rather than visitors, raising saturation concerns. The council instead directed staff to bring the two wait‑listed applicants back to a future council meeting for consideration rather than immediately awarding or cancelling the invitations.

Planning and public‑works staffer Mark told the council two previously vetted operators had been unable to get leases and open within the timeframes required; he said the recent opening of an operator on Lighthouse Avenue and a pending Pacific Grove store suggested the market might be closer to saturation than earlier anticipated.

Applicants and retailers addressed the council during public comment; some urged moving forward so vetted applicants could begin operations, while others supported a pause to avoid oversaturating a small retail market. Council members debated whether to protect the ordered wait list, open a new RFP, or wait and collect more data. Rather than adopt a multi‑month moratorium, the council voted to have staff return with the two wait‑listed applicants for council action on whether to grant permits.

The council’s direction preserves the council’s discretion: staff had extended invitations to those applicants before the wait list expired in January but can bring their permit requests back to the council for a resolution to permit them, or the council can later choose to open a broader RFP process.