CONSIDERATION OF
CANNABIS ORDINANCE
REVISIONS & PERMIT AWARD
City Council meeting
May 19, 2025
OVERVIEW
Background
Overview of approved locations
Overview of dispensary operators
Recommendation
Q&A
2 Relevant City Council Priority
3 BACKGROUND
Oct. 2010: Council adopts interim ban on cannabis businesses, extended in 2011 & 2012 Feb.12, 2013: Town Hall meeting to discuss medicinal cannabis policy Dec. 16, 2013: Council approves cannabis dispensary ordinance Established local dual-license structure with operating permit from City Council + CUP from Board of Zoning Initially established a limit of 1 permit, later modified to allow 2ⁿᵈ and 3ʳᵈ permits Ordinance referenced possibility of future additional permits Dec. 15, 2014: RFP released for parties interested in serving as dispensary operator Sept. 8, 2015: Council awards 1ˢᵗ permit to Harborside San Leandro July 18, 2016: Council awards 2ⁿᵈ permit to Davis St. Wellness Ctr. (now d.b.a. NUG Wellness) Oct. 17, 2016: Council awards 3ʳᵈ dispensary permit to Blum San Leandro Nov. 8, 2016: San Leandro voters authorize Measure NN (passage rate: ~75%) State voters authorize adult use via Proposition 64
(passage rate of Prop. 64 in San Leandro: ~60%)
2017 & 2018: BZA issues CUPs for dispensaries at three locations 2019: All three dispensaries open doors for business
Present day: Dispensaries contribute approx. $1M in annual gross receipts taxes to the City 4 BOARD OF ZONING ADJUSTMENTS*
CUP-APPROVED LOCATIONS**
1965 Marina Blvd., unit C
Harborside San Leandro
3089 Teagarden Street
NUG (formerly Davis St. Wellness Ctr.)
1911 Fairway Drive
Blum San Leandro
* BZA now reconstituted as Planning Commission/Board of Zoning Adjustments (PC/BZA)
** Validity of CUPs not affected by changes in ownership 5 1911 Fairway Drive
Feb 1, 2018: BZA awards CUP for this location
Jan. 11, 2019: Blum hosts Grand Opening ribbon cutting event Mid 2022: Dispensary use ceases operations for several months Nov. 22, 2022: Blum dispensary re-opens for business
Dec. 31, 2024: Dispensary ends operations at this site
CUP eligible for revocation at noticed public hearing by PC/BZA if use ceases for 180 days
CUP for a cannabis dispensary at the site remains valid until 6/30/2025 6 July 18, 2016: City Council awards 2ⁿᵈ operating permit to Davis St Wellness Ctr (Now NUG)
Nov. 2, 2017: BZA awards CUP for dispensary at 3089 Teagarden Drive 2019: Teagarden dispensary opens for business
2020-present: NUG opens dispensaries in other cities, including:
Sacramento, Oakland, Alameda, El Cerrito, and Yonkers, NY Dec. 2024: NUG secures lease for the 1911 Fairway facility (former site of Blum) Today: NUG is seeking Council approval to open a second retail store at 1911 Fairway, via issuance of a fourth dispensary permit 1911 Fairway site would serve as a satellite “express” store focused on filling online orders
Original 3089 Teagarden Drive location would remain as primary dispensary focused on “in-store” customer experience
Proposed store would fully comply with existing CUP and conditions of approval
Proposed store would be subject to local gross receipts tax 7 OVERVIEW OF NUG WELLNESS
BLUM SAN LEANDRO – STATUS
Blum San Leandro does not retain possession of an approved location Blum San Leandro retains a valid dispensary operating permit Blum’s 2025 annual license fee + prior year gross receipts taxes are paid Operating permits are eligible for suspension or revocation 180 days after the use ceases
Blum operating permit is eligible for suspension or revocation after 6/30/2025 Blum has indicated they entered into tentative sale agreement with another cannabis operator with licensed dispensaries in other jurisdictions Blum is seeking new location at a zoning-compliant site Any new dispensary location would require a new CUP
CUP would be subject to discretionary review, including neighborhood notification and public hearing before BZA/PC
8 Recommendation
9 Consider the following actions:
Conduct first reading of ordinance to:
Allow 4ᵗʰ operating permit
Approve resolution awarding 4ᵗʰ permit to DSWC II, Inc. (dba NUG Wellness)
Questions?
10