Oceanside finalizing dispensary license process for first cannabis storefronts

OCEANSIDE (FOX 5/KUSI) — After years of not permitting storefront cannabis sales, Oceanside is on track to open its first dispensaries.

City Manager Jonathan Borrego said Thursday that staff is currently finalizing the application process after the city council voted last week in favor of a revised proposal first brought up in June.

“Things seem to be going pretty well with those surrounding communities that do have cannabis businesses with very little impact to the community," said Borrego.

Until recently, the city's cannabis licensing program was limited to non-storefront delivery businesses, manufacturing, distribution, and cultivation.

Borrego said two licenses are already reserved for two of the city’s existing cannabis operators: Left Coast and MedLeaf.  

While pot shop locations are still unknown, there will be restrictions once sites are under consideration. 

“They need to be at least 1,000 feet from any high school and 550 [feet] from any junior high school or other elementary type school as well," said Borrego.

Still, some councilmembers expressed concerns about kids and teens having access during the Aug. 6 city council meeting.

“I’ve ran an after school program mentoring program for youth on juvenile probation. They’re not going to get off probation if they test dirty for cannabis, and the last thing I want is to have a dispensary near them tempting them," said District 3 Councilmember Jimmy Figueroa.

Mayor Esther Sanchez, the sole opposing vote, also said she is worried about putting dispensaries in low-income communities. 

“It is unfortunately historically been the real problem with sales and then with more enforcement in these neighborhoods," said Sanchez.

It's too early to estimate how much revenue the city would bring in from storefront cannabis retail sales which are taxed at 5%. Compared to neighboring Vista where the rate is 7%, staff said during the meeting that the city brought in “$7 million in fiscal year 2023.”

The city council will later decide exactly what to do with the revenue that is brought in, but Borrego said, “They would like that revenue to support local charities primarily youth prevention activities.”

He added, applications are set to open later this year and selections will be made sometime early next year.