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Council approves conditional CUP for cannabis cultivation at 1319 Sleeping Indian Road

Oceanside City Council · May 21, 2026
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Summary

Council confirmed a Class 1 CEQA exemption and adopted a conditional use permit to convert 25 existing hoop houses at 1319 Sleeping Indian Road to an indoor mixed-light cannabis cultivation facility, adding odor-control conditions; vote was 5-0.

City staff presented CUP 253 for a cannabis cultivation operation at 1319 Sleeping Indian Road, a 1.9-acre portion of an approximately 80-acre agricultural site in the Southmore Hills neighborhood. Senior Planner Dane Thompson said the proposal would repurpose 25 existing hoop houses (about 33,000 square feet) for indoor, mixed-light cultivation with negative air pressure systems, carbon scrubbers, 24-hour armed security and multiple surveillance cameras.

Thompson recommended confirming a Class 1 Existing Facilities CEQA categorical exemption because the project would reuse existing agricultural structures. Staff added language to condition 31 requiring continuous compliance with odor-control provisions, section 3024C of the zoning ordinance, and the operational requirements of a local license.

Applicant Dwayne Delarco (COO/managing member) described the facility's hemp- and breeding-focused operations and said the project aims for LEED-level sustainability; he thanked staff and neighbors for outreach. Public commenters raised concerns about notice, proximity to a large church, and THC levels; others supported hemp cultivation for industrial uses. Councilmember Robinson moved to adopt staff recommendation; the council voted 5-0 to confirm the exemption and approve the CUP with the added odor-control condition.

Staff noted that public access to the site will be prohibited and that additional security and odor-control measures are required under city code.