Cannabis retail: Monterey City Council seeks additional storefront in project plans

© Provided by Monterey Herald City of Monterey Commercial Cannabis Roadmap as of May 2023 (City of Monterey)

MONTEREY – Cannabis retail in Monterey is making slow progress, with council members voting last week to tweak draft plans for bringing the business to town, delaying next steps to a later date this summer.

At the Monterey City Council’s May 2 meeting, staff brought forward a draft project description for establishing cannabis retail within city limits, for the purpose of reaffirming or revising guidance issued by a previous council before plans are cemented in environmental review.

Going into last week’s meeting, staff’s proposal suggested: three cannabis shops placed throughout the city, each in a different business district; one non-storefront operation for medicinal cannabis delivery only; and an unlimited number of cannabis testing laboratories, among a few other parameters.

For the most part, the City Council didn’t object to staff’s draft project as presented but rather, didn’t think it was exhaustive enough. Instead, council members sought amended plans that allow for a fourth cannabis retail storefront in Monterey, as well as up to five cannabis-related events at the Monterey County Fairgrounds. Staff are poised to bring an updated project description back to the City Council for approval in July.

Per the council’s direction, the revised project will include four cannabis shops in Downtown Monterey (except Alvarado Street), the Lighthouse District, the Cannery Row Business District (except Cannery Row itself) and the North Fremont Business District. North Fremont is the newest addition, considered and backed by the council after coming up in public comment.

“I believe that the city should expand the number of dispensaries allowed in the city of Monterey to include at least one in the North Fremont Business District,” Wendy Brickman, president of the Fisherman’s Wharf Association, implored.

A majority of council members supported the idea, primarily to ensure residents are going to eventual Monterey-based cannabis businesses rather than Seaside establishments close by.

“What improvement would it be to have something within our city where the money we spend stays here,” said Councilman Gino Garcia.

“I think capturing the market to stay in the city of Monterey and offering economic opportunity on that part of town… (is) the right direction to go if we can do it in the right way,” added Monterey Mayor Tyller Williamson.

Bringing cannabis-related events into the project plan fold was less straightforward, with council members more tepid on moving ahead with the venture. When the matter was last brought to the City Council, in December 2021, council members then had expressed an interest in exploring cannabis events at the Monterey County Fairgrounds – once the retail permitting process was complete. Again, at last week’s meeting, the response from council was lukewarm.

“If we’re just starting this (process), I feel like adding more to it is not the answer,” Councilwoman Kim Barber said. “I feel like if we’re here, let’s deal with here. …Let’s crawl before we walk.”

“I’m still not necessarily on board,” said Councilman Alan Haffa. “I’m just a little bit worried that we’d be moving a little too fast for our community.”

Still, Williamson, in favor of at least exploring the idea, pleaded with his fellow council members to keep cannabis-related events on the table.

“If we cut off our hand here at this point, we’re basically saying no to it and it’s probably not going to come back during this council. So I think that the opportunity is in front of us now, it’s presenting itself to us…,” he said.

Ultimately, the council voted 4-1 in support of revised project plans with the possibility of cannabis-related events at the fairgrounds included, after reassurance from staff that retaining the option does not mean the council has to approve cannabis-related events down the line.

Councilman Ed Smith was the lone dissenting vote, maintaining a long standing position against bringing cannabis retail to Monterey.

“I just disagree with the whole premise,” he said. “It’s uncomfortable to continue to be the person of a lone voice that is probably a 4-1 vote. But I’m not going to change my mind. I still think it’s wrong.”

Once the City Council lands on a project scope, staff will move ahead with the next stage in bringing cannabis retail to Monterey: environmental review. The extent of environmental review required, as laid out by the California Environmental Quality Act, will depend on draft project plans approved by the City Council. Staff have stated that the environmental review process could take half a year, at most.

Satisfying CEQA will bring Monterey that much closer to launching cannabis retail in real time, a long-term goal the city has chipped away at for years now.

The process dates back to December 2020, when the City Council put its Commercial Cannabis Roadmap into motion. Phased out years in advance, the roadmap was devised to guide the process of permitting and regulating commercial cannabis operations in Monterey.

The city is currently operating in Step 3, of six, of its cannabis retail rollout: “Prepare to Launch,”  which involves amendment of the city municipal code to allow for cannabis retail permits, cannabis retailer selection and development of a cannabis revenue strategy. Monterey has been chugging through Step 3 since the fall of 2021. Notable progress includes approval of a Cannabis Business License Tax in last fall’s general election.

Garnering more than 65% of the vote, the approved measure made it so cannabis retail businesses in Monterey – if and when they are built – would be taxed at a rate of up to 8%, followed by cannabis testing laboratories at up to 2% and all other cannabis-related businesses at up to 6%.

If implemented, the city estimates that, collectively, the tax measure could generate anywhere from $604,000 to $1.3 million per year.

After Step 3 is completed in full, Monterey’s Commercial Cannabis Roadmap will have reached its long-awaited “Launch” stage. At that point, staff will start issuing permits to selected retailers and operators.