Cannabis Policy
Draft Code Amendments
City Council meeting
September 14, 2026
1 CITY COUNCIL PRIORITY
Slide 2
PREVIOUS COUNCIL & COUNCIL COMMITTEE ACTIONS
May 19, 2025
Council awards 4th operating permit and directs staff to bring to Rules Committee a potential expansion of the number of licenses and the related process for awarding them and to treat other dispensary operators comparably June-December 2025
Rules Committee deliberates on potential code changes
December 10, 2025
Rules Committee directs staff to advance the project forward for full City Council consideration March 9, 2026
Council considers Rules Committee recommendations and directs staff to send topic back to Rules Committee for further discussion and direction April 22, 2026
Item agendized at Rules Committee meeting; Committee continues the topic to May 27, 2026 meeting May 27, 2026
Rules Committee re-considers topic. Directs staff to:
• Share youth center definitions from other jurisdictions • Provide legal analysis regarding potentially limiting cannabis permit awards only to certain City Council districts • Remove downtown from consideration in potential cannabis expansion areas July 22, 2026
• Rules Committee sets aside former proposal to limit permit awards to certain Council districts • One Committee member expresses concerns regarding youth center definitions Slide 3
Slide 4
• Draft distancing provision:
A dispensary must be located at least XXX feet from sensitive receptors as identified in San Leandro Municipal code section 4-33-200(d). The minimum distance may be reduced if the approval authority finds that a significant physical or geographic barrier (e.g., a freeway, waterway, etc.) or site-specific features exist that would block access between the dispensary and the other use. 12/10/25 RULES COMMITTEE RECOMMENDATIONS (CONT’D)
12/10/2025 RULES COMMITTEE RECOMMENDATIONS (CONT’D)
Slide 5
• Allow two additional permits:
DRAFT code provision:
§ 4-33-200DISPENSARY PERMIT REQUIRED AND APPLICATION FOR PERMIT. (c) The City shall issue no more than four six valid permits for the operation of dispensaries in the City. 12/10/25 RULES COMMITTEE RECOMMENDATIONS
Slide 6
• Codify clearer definition of Youth Center, mirroring City of Alameda.
Sample DRAFT definition:
"Youth centers" means any public or private facility that is exclusively used to host recreational or social activities for minors (under eighteen (18) years of age), such as, private youth membership organizations or clubs, social service teenage club facilities, or amusement facilities. "Youth centers" does not include any building, location, or facility where any programs, activities, or services: (a) are offered at private residences, (b) involve martial arts/combat sports, cultural or similar education, or physical fitness, or (c) are offered for fewer than five hours per day each day the building, location, or facility is open. Notwithstanding the foregoing, youth centers shall also mean any facility determined by the Recreation and Parks Department to be a recreation center in a city park.”
REGIONAL CONTEXT &
CURRENT PROPOSAL
Slide 7
San Leandro Zoning Districts that allow
a Cannabis Dispensary with a CUP:
Industrial Zones
• IG - Industrial General
• IG (AU) – Industrial General
(Assembly Overlay)
• IP - Industrial Park
• IT - Industrial Transition
Commercial Zones
• CC - Commercial Community
EXISTING MAP VS. RECOMMENDED MAP COMPARISON*
*viability could be further impacted by individual site constraints; excludes youth center overlay Slide 8
SUMMARY OF ACTIONS
Slide 9
12/10/25 Rules Committee recommendations to City Council:
• Allow for issuance of two additional cannabis operating permits (for a total of 6) • Allow setback modifications to account for physical barriers, such as freeways or waterways • Codify a clearer youth center definition
Lack of Committee consensus as of 12/10/25 and elevated for Council review:
• Sensitive use distancing requirements
• Modified zoning districts
• Whether to allow cannabis retail downtown
3/9/26 City Council Direction:
• Allowing for issuance of two additional cannabis operating permits (for a total of 6) • Allow setback modifications to account for physical barriers Lack of Council consensus as of 3/9/26:
• Sensitive use distancing requirements
• Modified zoning districts
• Cannabis retail downtown
Council direction at conclusion of 3/9/26 meeting:
• Refer matter back to Rules Committee
SUMMARY OF ACTIONS (CONT’D)
Areas of Committee Consensus that remain unchanged since 3/9/26 Council meeting • Allow for issuance of two additional cannabis operating permits (for a total of 6) • Allow setback modifications to account for physical barriers, such as freeways or waterways Areas of Committee Consensus that changed since 3/9/26 Council meeting • Concerns related Youth center definition
• Committee supported excluding DA zoning (downtown area) Areas where there remains a lack of consensus among Rules Committee members as of 7/22/26 • Whether to align sensitive use distancing requirements with 600-foot statewide standards and regional context • Modified zoning districts
Slide 10
DIRECTION NEEDED FROM CITY COUNCIL
Slide 11
Option A (minimal change) - Direct staff to return to Council with ordinance amendments to memorialize the following:
• Allow for the issuance of two additional cannabis operating permits (for a total of 6) • Allow setback modifications to account for physical barriers, such as freeways or waterways Option B (middle path) - In addition to bullet points in Option A, return to Council with Ordinance amendments to memorialize the following:
• Align sensitive use distancing setbacks with 600 foot statewide standard, shown on slide 8 • Incorporate youth center definition as shown on slide 6 Option C (most expansive) - In addition to bullet points in Option B:
• Bring forward to Planning Commission review and then City Council adoption modified zoning code provisions to allow cannabis uses in all commercial and industrial zoning districts, except for DA (Downtown Area)
NOTE: WITHOUT 4 AFFIRMATIVE VOTES FOR ANY ACTION, STAFF WILL CEASE ALL FURTHER EFFORTS ON THIS TOPIC.