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Council reviews proposal to restrict dispensaries, change parking ratios and require state license before local approval
Summary
Staff recommended zoning changes to limit dispensaries and consumption sites to specific commercial and industrial districts, move them off the waterfront, reduce dispensary parking from 1/80 sq ft to 1/300, and require state licensing before local approvals; Council discussed saturation, grandfathering and enforcement.
Planning staff proposed an update to the city's cannabis regulations that would restrict dispensaries and consumption sites to M, C1 and C2 zoning districts (removing the waterfront and C3 areas), lower dispensary parking requirements from 1 per 80 square feet to 1 per 300 (matching retail ratios), and require applicants to have a state license before seeking local approvals.
"We're proposing to keep that parking ratio for consumption sites, but to change the dispensary parking ratio to 1 per 300, which is our underlying retail, parking requirement," staff said. The presentation noted that three approved dispensaries currently sit in C3 districts and would remain as preexisting special permits; vacant or new locations would follow the new zoning rules. Council members raised concerns about market saturation — Peekskill's population relative to the number of approved dispensaries — and asked staff whether the city could cap the total number or use zoning to limit new entries. Legal staff cautioned that absolute caps can be subject to legal challenge and recommended a land‑use rationale for any restrictions.
Council directed staff to draft zoning text that limits locations, refines parking and operational standards, confirms the required sequence of state and local approvals, and returns with proposed language for a public hearing.
