OCEANSIDE — Oceanside will likely see four storefront cannabis dispensaries open over the next four years, including two reserved for businesses already operating in the city.
The Oceanside City Council approved a framework for storefront dispensaries on Feb. 19, significantly altering staff recommendations. The council increased the number of future dispensaries from three to four, allowed another existing business preferential treatment, and replaced a proposed weighted lottery with a merit-based selection process.
Nearly two years ago, the council directed staff to develop a storefront dispensary program initially intended for two businesses. That later increased to three dispensaries, reserving one license for MedLeaf, Oceanside’s sole cannabis delivery service, if it meets evaluation criteria, and selecting two additional businesses through a lottery.
MedLeaf representatives previously argued they deserved to bypass the lottery based on their compliance record over five years of operations.
At the Feb. 19 meeting, Left Coast LLC, the city’s only cannabis business with manufacturing and distribution licenses, successfully lobbied for the same preference.
“We’ve been here since the beginning when cannabis was a new idea to the city, ultimately shaping the framework and stigma that the city has today,” said Left Coast owner Alexandria Kometas.
Kometas argued Left Coast had “proven to be good operators” and deserved a guaranteed dispensary license.
“With cannabis shifting to vertical integration, this will ensure us growth within the city of Oceanside and job stability for our team,” Kometas said.
Several Left Coast employees, including Oceanside residents, supported Kometas’ request.
Councilmember Rick Robinson proposed increasing the dispensary count from three to four to accommodate Left Coast. If they meet city evaluation criteria, both MedLeaf and Left Coast will receive licenses.
Robinson also suggested replacing the lottery for the two remaining licenses with a merit-based scoring system. Licenses would be awarded to the two highest-scoring applicants, with ties broken by a five-member panel using blind, ranked-choice voting.
The council approved Robinson’s amendments by a 4-1 vote, with Mayor Esther Sanchez opposing the increase from three to four dispensaries.
By another 4-1 vote, the council eliminated zoning restrictions that previously limited dispensaries to Mission Avenue, Oceanside Boulevard, and Vista Way corridors. New rules allow dispensaries in neighborhood commercial, community commercial, limited commercial, and special commercial zones, in addition to general commercial and industrial areas.
Sanchez and Councilmember Jimmy Figueroa expressed concerns that dispensaries might concentrate in historically underserved neighborhoods or near schools and youth groups.
City staff clarified that proposed locations near sensitive areas like schools, liquor stores, tattoo parlors, or massage businesses would lose points in the application process.
Staff also recommended limiting historic district restrictions solely to the Historic District Village Commercial Area. Dane Thompson, the city planner overseeing the cannabis program, explained other nearby shopping centers lacked historical connections to Mission San Luis Rey and, therefore, shouldn’t be prohibited.
The city estimates annual tax revenue from four dispensaries to be nearly $1.7 million, based on the current 5% retail tax rate.
City Manager Jonathan Borrego said staff would return with finalized scoring criteria and program rules for council adoption. License selections are anticipated by fall, with businesses expected to begin operating by 2028.
