P.G. City Council approves regulations for selecting a cannabis retailer.

A little more than two-and-a-half years since a majority of Pacific Grove voters approved bringing a single retail cannabis shop into town, the P.G. City Council brought the town a little closer to that reality on Wednesday, June 18.

Councilmembers voted 7-0 to amend a cannabis ordinance created in 2023 and approved new regulations for reviewing applications and choosing a single operator. 

The council did not approve administrative fees during the meeting. City Manager Matt Mogensen said a proposal for fees would come at a meeting on July 16.

Mogensen said an application period for interested businesses could open as soon as Aug. 5, running through Sept. 4. 

Despite the fact that a majority of P.G. voters approved of California's Proposition 64 in 2016, legalizing recreational cannabis, followed by approving the idea of one retail store in an advisory vote in 2022, detractors have slowed the process.

Some councilmembers noted that P.G. has lost out on sales tax revenue over the past few years because of delays, and pointed out that in that time neighboring Monterey opened its first cannabis store just down the street earlier this year, creating competition.

"It's kind of high time, pardon a phrase," Councilmember Chaps Poduri said. "We are losing revenue by being slow on this process."

Mogensen called the amendments to the existing ordinance minor. They included changing the application period from 60 to 30 days, requiring that a location be specified as part of the application, that a lottery will be used, and added an appeal provision regarding an application's inclusion or exclusion in a lottery. Those appeals will go to the city manager. There is no right to appeal the final results of the lottery.

With the help of consultant HdL Companies, there will be a three-phase application process, which HdL will oversee on behalf of the city. Phase 1 determines if an applicant is eligible. Phase 2 evaluates applicants' business, labor and security plans, as well as neighborhood compatibility. Phase 3 is the lottery.

Councilmember Paul Walkingstick encouraged potential applicants to "raise the bar and show what a high-end dispensary can be."

There were at least a couple of residents who called in protest, saying bringing in a retail cannabis store would change the town's character and bring problems.

"The fact that people are calling up saying we can disregard the will of the voters is the most undemocratic thing I've ever heard," said Councilmember Tina Rau. "Our voters overwhelmingly have approved cannabis on more than one occasion."

The city almost achieved a store five years ago in 2020 when an earlier council voted 4-3 in favor of allowing one, not once but twice.

Opponents challenged the vote with a referendum, which failed by just three signatures of registered voters, but at that point the council decided it was better to put it to a vote of residents and they repealed the vote.