Council Finalizes Cannabis Rules, Clearing Path for First Retail Dispensaries

The City Council voted 4-1 Tuesday to approve amendments to the city's cannabis ordinance that will limit retail dispensaries to one per ward and clear the way for the first retail cannabis shops to open since the city legalized retail sales in 2023.

The amendments limit retail cannabis dispensaries to one per ward, prohibit dispensaries in Downtown and Midtown areas, and increase the required distance from parks to 1,000 feet. The changes also exempt non-retail cannabis businesses — including manufacturing, distribution, and testing laboratories — from location requirements.

The ordinance represents the culmination of a process that has been active before City Council since 2021. The city initially imposed a moratorium on commercial cannabis operations, then voted 5-2 in February 2023 to allow retail sales. However, implementation has been delayed by ongoing debates over location restrictions and permit allocation.

Councilmember Sean Mill, who represents Ward 5, made the motion to reconsider the ordinance that failed in June due to insufficient councilmembers present to vote. The reconsideration motion passed 4-1, with Councilmember Jim Perry casting the dissenting vote.

"The voters of Riverside spoke and overwhelmingly said they wanted cannabis dispensaries and this can has been kicked for years," Mill said.

Mill emphasized that the changes represent a compromise addressing concentration concerns while honoring voter intent. "My only ask, my only ask I've ever made to my colleagues was, please don't put all the dispensaries in my community," he said.

The original cannabis program, approved by voters in 2016, allowed for up to 14 dispensaries citywide. Under the previous permitting process, five dispensaries were slated to open in Ward 5, with three additional locations on the ward's border.

The concentration issue prompted the council to pause the permitting process in January 2025, leading to the current amendments that reduce the total number of initial permits from 14 to seven — meaning seven applicants who were previously approved will now have to wait for potential future expansion. This marks a significant change from the council's March 2025 vote that first established the one-per-ward limit.

Kyle Worsinski, a senior project manager in the economic development division, presented the amendments to council. The Planning Commission recommended the changes on May 8, with one modification increasing the distance between retail cannabis businesses and parks from 600 feet to 1,000 feet.

"The ordinance updates where and how a cannabis business can operate to ensure they fit well with existing businesses, protect sensitive receptors, avoid over-concentration, and maintain the character of Downtown and Midtown," Worsinski said.

The amendments prohibit commercial cannabis businesses within the Downtown neighborhood as defined in the Riverside General Plan and within the designated Midtown area. Non-retail cannabis businesses, including manufacturing, distribution, and testing laboratories, receive exemptions from the location requirements but must still comply with state minimum requirements of 600 feet from schools, daycares, and youth centers.

Councilmember Clarissa Cervantes, participating virtually due to illness, asked for confirmation that one dispensary location near Sycamore Canyon Park exceeds the new 1,000-foot distance requirement. Staff confirmed the location measures more than 1,000 feet from the park.

Mill defended his role in the ordinance changes, clarifying that he did not write the amendments. "Did I write this ordinance that changed it so that there would only be one dispensary permit? Was it Councilmember Mill that wrote that into the ordinance? Was that my idea?" Mill asked Worsinski, who responded, "No, sir, it was not."

Worsinski explained that staff met individually with all seven council members to gather feedback after the January discussion about concentration concerns. The research and one-on-one meetings informed the recommendations presented at the March 25 meeting, where council directed staff to proceed with the amendments.

"All of the research that was performed by staff, including the police department and those one-on-one meetings with city council members, were used to present the findings of those results at the March 25 meeting," Worsinski said.

The direction from the March 25 meeting included issuing the first seven permits, one per ward, tracking progress and compliance for one year, and returning to council after that period for further direction on whether to issue additional permits within the allowed 14.

During public comment, Dana Susseros, litigation counsel for Artistry Off the Charts, informed council that two lawsuits have been filed against the city regarding the cannabis ordinance.

"The city suspension of the process contravenes established California law which we pointed out numerous times and how to procedurally correct the missteps by the council," Susseros said. "Yet council has done nothing to correct their erroneous actions and instead have left the bottom seven applicants with quite a bill to deal with."

If approved at the second reading scheduled for Aug. 5, the ordinance takes effect Sept. 5. Staff plans to return to council Aug. 19 with recommended changes to storefront retail permitting guidelines, cannabis testing laboratory permitting guidelines, and establishment of related fees including annual renewal, permit transfer, modification, and out-of-town delivery permit fees.

The new preferred site location selection process begins Sept. 5, following the ordinance's effective date. This will allow the first seven dispensaries to move forward with the permitting process that has been stalled since January.

The final vote on the ordinance amendments was 4-1, with Perry casting the lone dissenting vote. Councilmembers Philip Falcone, Cervantes, Steven Robillard, and Mill voted in favor of the amendments. Conder and Hemmenway were absent from the meeting.