Click to HomeClick to Home
Go To Search
Commercial Medical Cannabis Permits

On May 15, 2017 the City Council adopted two ordinances, Ordinance No. 17-05 and Ordinance No. 17-06, that allow commercial medical cannabis uses, including cultivation, manufacturing, distribution, testing laboratories, and two (2) dispensaries. The City began developing these ordinances in 2016 which culminated in the adoption of carefully written regulations to ensure the responsible implementation and operation of commercial medical cannabis businesses. The City does not allow commercial recreational cannabis uses at this time.

The City started accepting Use Permit applications on June 14, 2017 for all commercial medical cannabis uses, except for dispensaries, which required a pre-application process.

On June 5, 2017, the City Council approved a Dispensary Pre-Application process for dispensaries in order to establish an Eligibility Ranking List to determine the two applicants that would be able to proceed with applications for a Use Permit and Commercial Cannabis Permit.

On September 7, 2017, the Council reviewed the 12 dispensary pre-applications and affirmed that seven applicants were qualified to be placed on the eligibility list. On October 16, 2017, the Council determined that the Natural Healing Center was the top ranked applicant and The Milkman, The Monarch, and 805 Beach Breaks were tied as the second ranked applicants and authorized all three to proceed with submitting both a Use Permit and Commercial Cannabis Permit application. Based on the current ordinance allowing a maximum of two dispensaries, consideration of the Use Permit for those applicants in a three-way tie will be based upon the order of submittal of a complete application.

At the October 16, 2017 meeting, the City Council also provided direction for staff to draft an amendment to the cannabis land use ordinance for Council consideration to allow up to four dispensaries and several amendments to the cannabis regulatory ordinance.

At the December 4, 2017 meeting, the City Council introduced and conducted first reading of two separate ordinances to increase the number of allowable commercial medical cannabis retailers and/or microbusinesses with a retailer use (previously referred to as “dispensaries”) from two (2) to up to four (4) allowable permits, revise certain definitions, and make changes consistent with newly established state law. The Ordinances are scheduled for second reading and adoption on January 8, 2018. Additionally, the Council reviewed the eligibility ranking list and provided direction for staff to proceed with processing the top two ranked applications. Once the Ordinance allowing up to four permits becomes effective, the third and fourth ranked applications will be authorized to proceed through the process for a Use Permit. 

At the January 22, 2018 meeting, the City Council approved Development Applications and Commercial Medical Cannabis Permits for The Monarch at 239 South 3rd Street and Natural Healing Center at 998 Huston Street in Grover Beach.

At the March 5, 2018 meeting, the City Council approved Development Applications and Commercial Medical Cannabis Permits for The Milkman at 923 Huber Street and 805 Beach Breaks at 1053 Highland Way, bringing the total number of authorized retailers to the City's maximum limit of four. At this same meeting, the Council approved a commercial medical cannabis permit for a manufacturing firm, The Hive Laboratory at 949 Highland Way. There is no cap on the number of applications that may be considered for the purpose of manufacturing, lab testing, and/or cultivation of commercial medical cannabis.

At the May 7, 2018 meeting, the City Council approved Development Applications and Commercial Medical Cannabis Permits for Mary’s Tech CA, Inc, at 927 South 4th Street; Coastal Business Distribution LLC and BS & RG Holdings LLC at 1141 Highland Way, and  Central Coast Clear Source LLC at 1091 Highland Way. Additionally, the Council adopted a Resolution amending the commercial cannabis tax structure for all permitted commercial cannabis businesses in the city. 

Effective May 7, 2018, the commercial cannabis tax rate in Grover Beach will be 5% gross receipts on retailers, 3% gross receipts on manufacturers, distributors, and other commercial cannabis uses, and a $5 per square foot cultivation tax based on floor area.

At the May 21, 2018 meeting, the City Council adopted amendments to the commercial cannabis ordinance to allow adult-use cannabis uses, authorize the Planning Commission to be the Review Authority for non-retailer commercial cannabis uses, and allow the issuance of local permits that allow State License Type 7 Level Two manufacturing (with volatile solvents), and the establishment of additional regulations related to personal cultivation.

Applications for Commercial Medical Cannabis Uses

An applicant may process the Use Permit and Commercial Cannabis Permit concurrently as shown on the Development Review Process Flowchart. There is no limit on the number of applications the City will accept for commercial medical cannabis manufacturing, cultivation, distribution, and testing laboratory uses.

All commercial medical cannabis businesses will be required to obtain the following permits:
- a Use Permit approved by the City Council establishing the location, size, and types of uses allowed, and
- a Commercial Cannabis Permit to assure that all regulatory requirements are met.
- Businesses must also comply with the City’s commercial cannabis tax approved by voters in November 2016. 

Use Permit Application forms and submittal requirement checklists:
- Development Application Form
- Authorized Agent Form, if applicable
- Commercial Cannabis Indemnification Agreement Form
- Commercial Cannabis Employee/Owner Background Information Form
- Development Permit & Use Permit Submittal Checklist – New Construction
- Cannabis Use Permit Submittal Checklist
- Development Review Process Flowchart
- Environmental Information Form

Applicants may wish to review Fire & Life Safety Requirements at this time to ensure that the proposed use(s) would be able to comply with the requirements. Any information or reports shall be submitted as part of the Building Permit Application process.

Please note: Applications will need to pay an application deposit (ranging from $6,000 to $10,000 depending on the size and scope of the project) to cover the City's cost for reviewing the Use Permit application. Further information about this deposit is included within the Development Application Form listed above.

Commercial Cannabis Permit Application forms and submittal requirement checklists:
- Commercial Cannabis Permit Application Form
- Commercial Cannabis Permit Submittal Checklist
- Commercial Cannabis Employee/Owner Background Information Form

Building Permit Application forms and submittal requirement checklists:
- Building Permit Process Flowchart
- Building Permit Application
       o  Construction Waste Management Plan
       o  Owner Builder Information
       o  Owner Builder Informational Brochure
       o  Sub-Contractor's List
       o  Water Conserving Plumbing Fixtures Affidavit
- Demolition Packet
- Curb, Gutter, and Sidewalk Checklist
- General Building Permit Checklist
- Grading and Drainage Checklist
- Development & Construction Stormwater Requirements
- Fire & Life Safety Requirements

For Additional Information or Answers to Frequently Asked Questions
- Please see our: FAQs - Frequently Asked Questions on Commercial Medical Cannabis in Grover Beach
- Please contact the staff member or department as indicated below:

 Subject  Staff Member or Department Phone and/or email
 Application Process   Janet Reese, Planner II  
 Community Development Department
 (805) 473-4524
  or send an email 
 Building Code Requirements  Janet Reese, Planner II
 Community Development Department
 (805) 473-4524
 or send an email 
 Fire & Life Safety   Five Cities Fire Authority  (805) 473-5490
 or send an email
 Live Scan and Background Checks  Laura Vinnedge, Police Administrative Assistant
 Police Department
 (805) 473-4507
  or send an email
 Water and Sewer Connections or 
  Street Improvements  
 Lynn Pearson, Administrative Analyst
 Public Works Department
 (805) 473-4523 
 or send an email

Join us on TwitterJoin us on FacebookGrover Beach Government Access Local Channel 20
City Hall, 154 S. Eighth Street, Grover Beach, CA 93433 | City Hall Fax: (805) 489-9657
Calendar | Accessibility | Sitemap | Powered by CivicPlus | Copyright Notice