OCEANSIDE — The city of Oceanside is expected to finalize its storefront cannabis licensing program in August, potentially allowing up to four dispensaries to open over the next three years.
The City Council approved a staff recommendation by a 3-2 vote to introduce an ordinance that would amend the city’s municipal code and zoning regulations to permit up to four cannabis storefronts.
The ordinance also establishes application procedures, fees, and priority licensing for the city’s two existing operators — MedLeaf and Left Coast.
The vote included several modifications, including the removal of a property location requirement from the evaluation criteria. The council also added a provision giving preference to applicants who include a collective bargaining agreement, signaling support for unionization.
Current city code prohibits cannabis operations within 349 feet of residential zones, 549 feet of elementary and middle schools, and 999 feet of high schools. The updated ordinance replaces the hardline buffer with one primarily addressed during the conditional use permit phase.
Mayor Esther Sanchez, who voted against the ordinance, pushed for a greater distance between dispensaries and schools.
“We really need these protections for the youth,” Sanchez said.
City Planner Sergio Madera said stricter restrictions could make it nearly impossible for operators to find suitable locations.
“We want the program to be successful,” he said, while acknowledging council members’ concerns about proximity to youth gathering areas.
Councilmember Peter Weiss, who also voted no, said he preferred to keep locational criteria in the scoring process rather than delay it to the permitting stage.
If finalized, the new ordinance would eliminate one vacant non-storefront delivery license and clarify that any inactive non-storefront licenses would be forfeited. It also restricts license ownership transfers during the first four years of operation and establishes deadlines for businesses to become operational.
Zoning updates prohibit drive-thru and curbside services and block dispensaries from opening in the Mission San Luis Rey Historic Area’s commercial village.
Applicants will be required to submit background checks, architectural and security plans, legal disclosures, business plans, and proof of capitalization. To qualify for a license, applicants must score at least 90 percent on the evaluation criteria.
While MedLeaf and Left Coast will undergo the application and scoring process, they will bypass interviews with the city manager, streamlining their review. The two businesses are the city’s only current operators and hold active delivery-only licenses.
Associate Planner Dane Thompson said applications could open this fall, with licenses issued over the winter. Conditional use permit hearings are scheduled to follow in the fall of 2026, and operational deadlines are projected to occur between 2027 and 2028.
Councilmember Rick Robinson advocated for an expedited process for the current operators.
“They have been waiting patiently,” he said.
Karen Hannawi, co-owner of MedLeaf, emphasized the urgency of a faster timeline, ensuring both operators could open their storefronts by 2026.
“This moment has been almost three years in the making, and I can’t express now how important it is for our company, for our employees, and for the viability of our company here in the community,” Hannawi said.
MedLeaf has operated for five years as a delivery-only business and has previously expressed concerns about the business’s long-term viability due to its limited operations. For several years, the company’s owners and employees have repeatedly urged the city to authorize storefront locations.
The City Council initially directed staff in April 2023 to develop a two-storefront licensing program, which was later expanded to four following advocacy from MedLeaf and Left Coast. In 2023, the city hired Rincon Consultants, Inc., to assist with cannabis regulatory development.
Earlier this year, the council approved a final program framework. In March, the Planning Commission unanimously supported the proposal and expressed interest in future programs, including potential retail cannabis sales tied to a cultivation site in South Morro Hills.
To date, Oceanside has issued 20 local cannabis licenses, with three currently active, held by MedLeaf and Left Coast.
