City Council Postpones Cannabis Permit Process for Further Review

Concerns over dispensary concentration prompt 90-day delay.

City Council Postpones Cannabis Permit Process for Further Review
3666 Van Buren Blvd and the property next to it, 3652 Van Buren Blvd, are two of the preferred locations for the 14 top-ranked Cannabis Business Permit Applicants.

City Council voted Tuesday night to postpone the cannabis retail permit process for 90 days, citing concerns over the concentration of proposed dispensaries in certain areas and the need to further study health and safety impacts.

The decision came after a lengthy debate about the distribution of cannabis businesses across the city's seven wards, with particular focus on Ward 5, which was slated to have five of the 14 proposed dispensary locations.

Councilmember Sean Mill, who represents Ward 5, expressed strong opposition to the concentration in his area.

"It's not fair that one community is oversaturated with one particular type of business," Mill said. "I can't in good conscience sit here and allow that to happen in my area."

The council voted 4-3 to approve a motion by Councilmember Jim Perry directing staff to research several aspects of the cannabis ordinance, including:

  • Instituting a two-cannabis permit per ward limit
  • Exploring cannabis uses within industrial and manufacturing zones
  • Establishing minimum distance requirements between cannabis storefronts
  • Evaluating new or additional sensitive use categories and associated distance requirements
  • Reviewing the permit transfer process

The motion also calls for a crime analysis related to the research.

The decision puts a hold on the current process, which had advanced to the point where 14 applicants had been selected to move forward with obtaining permits. Some applicants expressed frustration with the delay, noting they had already made significant investments.

"We've spent well into six figures on this project and even had to sell one of my businesses in Palm Desert just to have the opportunity to open a business here," said Kenneth Churchill, CEO of Riverside West Coast Retail.

The postponement comes amid revelations that some of the previously selected applicants may be attempting to sell their permit rights before even obtaining them. Councilmember Steven Robillard presented a flyer advertising a "Riverside retail storefront license for sale" with an asking price of $850,000.

"That is just beyond disturbing to me," Robillard said.

Several council members expressed a desire to revisit the original intent of having two dispensaries per ward, which was changed late in the previous council's process.

The Riverside Police Department will play a key role in the review. Capt. Frank Assumma said the department would gather information on "the good, bad and the ugly" of cannabis impacts in other communities.

"We want to be able to gather it all, and we want to be able to adequately present all the adverse effects on the community," Assumma said.

The council's decision disappointed many cannabis industry representatives who attended the meeting. They argued that legal, regulated dispensaries would help combat the illegal market and bring economic benefits to the city.

"By allowing legal storefronts to operate in Riverside, we create a controlled environment where safety, equality, and accountability are prioritized," said Blanca, a dispensary manager from San Bernardino.

The council is expected to receive a report and recommendations within 90 days. The review process will likely involve individual meetings between staff and council members to discuss concerns and preferences for each ward.

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