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USE PERMIT TO ESTABLISH A CANNABIS RETAIL STOREFRONT AND A NON-STOREFONT RETAIL (DELIVERY ONLY) BUSINESS AT 4895 STATE ROUTE 99 FRONTAGE ROAD, SUITE C (APN 179-260-52) (APPLICATION NO. P24-0214)
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution:
1. Finding that the project is categorically exempt from the CEQA, pursuant to CEQA Guidelines Section 15301(a) (Existing Facilites), since the project will occupy an existing building and no expansion is proposed.
2. Approving a Commission Use Permit to allow the establishment of a proposed cannabis retail storefront business within an existing building, in accordance with the findings and subject to the conditions found in the Proposed Resolution.
3. Approve an Administrative Use Permit to allow the operation of a retail non-storefront cannabis retail (delivery only) business within an existing building, in accordance with the findings and subject to the conditions found in the Proposed Resolution.
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Summary
The applicant, Stockton Highway 99, LLC/Macy Newell, submitted an application to establish a cannabis retail storeront with a non-storefont (delivery) business at 4895 South State Route 99 East Frontage Road, Suite C. The project site is located in the Commercial, General (CG) zoning district. The proposed cannabis business would occupy an existing 1,160 square foot vacant suite in a commercial building.
The applicant participated in the 2024 Commercial Cannabis Lottery program and was awarded the opportunity to apply for the one annual Cannabis Retail Storefront CUP as a general pool applicant (CL24-00001). Participation in the lottery is not required for the non-storefront retail (delivery only) portion of this application.
This application was thoroughly evaluated pursuant to the City’s Cannabis Ordinance, more specifically Stockton Municipal Code (SMC) Section 16.80.195. This includes location restrictions to ensure separation from residential zones or uses, public parks, schools, and other sensitive uses identifiedin SMC Section 16.80.195(A)(6), and with all applicable provisions of the Municipal Code. Staff concluded, as conditioned in the accompanying Resolution, that the project complies with all applicable provisions of the Municipal Code.
Further, the proposed project aligns with the following General Plan 2040 goals and policies:
• Goal LU-6: To provide for orderly, well-planned, and balanced development.
• Goal CH-3: Expand opportunities for local enterprise, entrepreneurship, and gainful employment.
• Policy LU-4.2: Attract employment and tax-generating businesses that support the economic diversity of the city.
As mentioned above, the Project is consistent with the City’s development standards for Cannabis business types (SMC 16.80.195), meets General Plan policies, and all required findings for a Use Permit can be made in the affirmative. Therefore, staff recommends the Planning Commission approve the requested Use Permits, subject to conditions.
DISCUSSION
Background
Pursuant to SMC Section 16.80.195(K)(5), prior to applying for a Commission Use Permit, a Commercial Cannabis storefront retail applicant shall apply for the Lottery System. Lottery applicants can apply as general pool or equity applicants and shall sucessfully satisfy all applicable requirements in SMC Section 16.80.195(K). Where a general pool applicant is open to any individual, the equity component enables Stockton residents from disadvantaged areas to obtain cannabis business permits. To qualify as an equity applicant, greater than 50% of the ownership, as determined by equity sharing, for the permit must be a resident of Stockton for five years and either live in the SB 535 disadvantaged area, or “Kelly Drive Neighborhood” as defined by the City Council or demonstrate low-income status.
On July 31, 2024, the applicant (“Macy Newell”), was declared a 2024 Commecial Cannabis lottery winner, as a general pool applicant, by sucessfully satisfying the eligibility requirements described in SMC Section 16.80.195(K) for a cannabis retail storefront business (CL24-0001). As a winner of the 2024 lottery, the applicant is required to apply for a necessary Commission Use Permit (CUP) by October 29, 2024, 90 days of award date per SMC 16.80.195.(K)(5)(a).
Pursuant to SMC Section 16.80.195(A)(3), and in accorance with SMC Section 5.100.080, the City of Stockton shall not allow the operation of more than 14 storefront retailer cannabis businesses. At the time of writing this report, there are eight (8) approved storefront retail locations, of which six (6) have obtained their operating and city business liceneses. active storefront retailer operators with business licenses in the City of Stockton.
Present Situation
On October 28, 2024, the applicant, pursuant to their lottery award requirements (Attachment A - CL24-00001 Cannabis Lottery Win Letter), submitted an application for a Commission Use Permit to operate a cannabis retail storefront and an Administrative Use Permit for a cannabis non-storefront delivery business within Suite C (1,160 square-feet) of an existing commercial building at 4895 South State Route 99 Frontage Road (Attachment B - Location Map). The site has a General Plan designation of Commercial (Attachment C - General Plan Land Use Map) and a zoning designation of Commercial, General (CG) (Attachment D - Zoning Map). The project is located in a vacant suite of a five (5) suite commercial building consisting of restaurant uses: Starbucks, Subway, Fresh Slices Pizza, and Tacos Chapala. The project site is bound to the west by State Route 99, to the south by the freeway on-ramp/Arch Road, and to the east and north by other commercial uses (gas station and restaurant).
The proposed Project is consistent with cannabis retail storefront requirements in accordance with SMC 16.80.195(A).
The proposed cannabis retail storefront and non-storefront delivery business includes 1,160 square feet (SF), comprised of 650 SF of reception/customer sales floor area, 160 SF of restricted access point-of-sale area, and remaining square footage for office, ancillary use (Attachment E - Project Description and Plans).
The retail and delivery operations will operate between 7:00 a.m. to 8:00 p.m. Monday through Sunday, pursuant to SMC Section 5.100.280, and limited holiday hours between 8:00 a.m. and 6:00 p.m. The applicant will employ up to 20 employees at full capacity, plus one security guard on-site 24 hours a day with additional security guards added as needed. No extraction activities are proposed.
If the Project is approved, a formal security plan and lighting plan will be submitted and reviewed by the Police Department as part of the required Operators Permit application process to ensure safe operations.
Cannabis retail (storefront and delivery only) uses are required to provide 1 parking space per 250 sf of gross floor area and 1 additional space for every 2,000 sf of ancillary spaces, per Table 3-9 (Parking Requirements by Land Use) in SMC Section 16.64.040. Ancillary spaces include storage rooms, break rooms, equipment rooms, offices, and circulation corridors. No designated staff parking is required to be provided. The proposed project would be responsible for providing 4 parking spaces (3.24 spaces for gross retail area (810 SF) plus 1 (ancillary areas). The proposed business is located in a commercial development that includes over 52 shared parking spaces, more than adequate to service the proposed and existing businesses.
Staff Analysis
To permit the proposed uses, the Planning Commission is asked to consider approval of a Commission Use Permit and Administrative Use Permit. The request and staff analysis are provided below.
Location Requirements
Per SMC 16.80.195(A)(6) and 16.80.195(B)(4), the following location requirements apply to all cannabis retail storefront and non-storefront (delivery) operations.
a. No retailer operator shall be established or located within 300 feet, measured from the nearest property lines of each of the affected parcels, of any existing residential zone or use.
Staff has confirmed, to the best of their knowledge, that there are no existing residential zones or uses within 300-feet of the Project property lines, as shown in Attachment B.
b. At the time the Use Permit is issued, no retailer operator shall be established or located within 600 feet of any of the following: A public or private academic school for students in kindergarten through 12th grade, nursery school, preschool, or childcare facility; A public park, playground, recreational area, or youth facility; Religious facilities; or Drug abuse, or alcohol recovery/treatment facility.
Staff has confirmed that, to the best of their knowledge, none of the uses listed above are within 600 feet of the Project property lines, as shown in Attachment B.
c. No retailer operator shall be established or located within 1,000 feet of any of the following: Existing cannabis storefront retailer operator; Existing RDC, RDM, and/or RCM microbusiness operator. Existing indicates the possession of an approved use permit.
Staff has confirmed that none of the above listed cannabis business types are within 1,000 feet of the Project property lines. The closest approved cannabis related businesses are at 1137 South Stockton St (P23-0255; retail storefront, not open) and 678 North Wilson Way #A (P11-078; retail storefront, in operation), both are approximately 4.8 miles from the project site. (Attachment F - Approved Cannabis Locations).
Use Permits
A Commission Use Permit is required for a cannabis retail storefront business and an Administrative Use Permit is required for cannabis non-storefront retail (delivery only) business. The operations of the proposed use would be carried out within the project site. The following analysis addresses the proposed land use.
SMC Section 16.168.050.A requires seven general findings of fact to grant Use Permit approvals. Each finding and staff’s analysis are as follows:
1. Finding: The proposed use is allowed within the subject zoning district with the approval of a use permit and complies with all other applicable provisions of this Development Code and the Municipal Code.
Staff Analysis: The proposed cannabis retail storefront and non-storefront retail (delivery) uses are conditionally allowed in the CG Zone with approval of Commission and Administrative Use Permits. As conditioned, the cannabis operation will be in conformance with the development standards outlined in Title 16 of the Municipal Code. Adequate off-street parking spaces are integrated into the commercial development.
The proposed project meets the location requirements set forth in SMC 16.80.195(A)(6). The project is not located within 300 feet of any existing residential zone or use. The project is not located within 600 feet of any park, school providing K-12 instruction, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, or drug abuse or alcohol recovery/treatment facility.
2. Finding: The proposed use would maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located.
Staff Analysis: The proposed cannabis business would operate within an established commercial development. The business will occupy the last remaining vacant suite in the building which would strenghten the site’s commercial character. The business would also help strengthen the integrity and security of the area by providing added security due to the nature of the land use. The proposed use would also align with the intent of the general plan to attract employment and tax-generating businesses that support the economic diversity of the city.
3. Finding: The proposed use would be consistent with the general land uses, objectives, policies, and programs of the General Plan and any applicable specific plan or master development plan.
Staff Analysis: The General Plan Land Use Map designates the subject site as Commercial. The Commercial designation is intended to accommodate a wide variety of commercial uses, including, but not limited to, retail, services, and commercial uses; business, medical, and profesional, reudnetial uses, public and quasi-public uses; and other related uses. The proposed use is a cannabis retail storefront and delivery business, which is consistent with the intent described in the General Plan for the Commercial land use designation and the following General Plan goals and policies:
• Goal LU-6: To provide for orderly, well-planned, and balanced development.
• Goal CH-3: Expand opportunities for local enterprise, entrepreneurship, and gainful employment.
• Policy LU-4.2: Attract employment and tax-generating businesses that support the economic diversity of the city.
The proposed use furthers the above goals and policy since it would provide for a business type that generates tax revenue for the City of Stockton’s general fund and expands opportunities for employment and entrepreneurship. The introduction of the proposed cannabis businesses diversifies the types of commercial establishments in surrounding area that consisting primarily of service uses such as fueling stations and fast-food restaurants. The proposed location was chosen as it is not located in an area surrounded by sensitive uses identified in SMC 16.80.195(A) and (B).
4. Finding: The subject site would be physically suitable for the type and density/intensity of use being proposed including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.).
Staff Analysis: The proposed project has been analyzed by all applicable departments, and it has been determined that all existing streets and public accessways are adequate to serve the project. The site will have access to existing City utility services, which are presently available at the site. Further, a Building Permit for a tenant improvement is required for the proposed cannabis facility, and the project will be required to comply with all applicable Building Code standards.
5. Finding: The establishment, maintenance, or operation of the proposed use at the location proposed and for the time period(s) identified, if applicable, would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, peace, or general welfare of persons residing or working in the neighborhood of the proposed use.
Staff Analysis: The proposed land use will require the applicant to adhere to all applicable Building and Fire Codes, and additional requirements established by the State of California, Department of Cannabis Control. The Department of Cannabis Control issues annual licenses and regulates cannabis retail storefront to ensure safe practices. The applicant will also be required to obtain and maintain an Operator’s Permit from the City that requires the business owner to develop and maintain a security and lighting plan that is reviewed annually by the Police Department.
All cannabis operations for the proposed retail storefront will occur indoors. Appropriate security provisions will be incorporated into the project operations plan, including electronic surveillance and on-site security. The site will use an activated carbon filtration system to prevent any odors from spilling outside of the facility.
For the above reasons, the establishment, maintenance, or operation of the proposed land use activity would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use.
6. Finding: The design, location, size, and operating characteristics of the proposed use would be compatible with the existing and future land uses on-site and in the vicinity of the subject property.
Staff Analysis: The proposed cannabis retail storefront business would be located in an existing building in an commercial development and does not raise any potential issues related to parking, as the commercial development has adequate shared parking facilities. The proposed use is commercial and raises no potential issues related to compatibility with the existing and future land uses on-site and in the vicinity of the subject property.
7. Finding: The proposed action would be in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines.
Staff Analysis: The proposed project will occupy an existing building. The project is categorically exempt from the CEQA, pursuant to CEQA Guidelines Section 15301(a) (Existing Facilites) since the project will occupy an existing facility and no expansion of use is proposed.
PUBLIC COMMENT
On March 14, 2025, a public notice of the item and meeting was mailed to all property owners within a 300-foot radius of the project parcel. A notice was also published in The Record Newspaper. At the time of writing this report, no public comments were received.
Attachment A - Cannabis Lottery Win Letter
Attachment B - Location Map
Attachment C - General Plan Land Use Map
Attachment D - Zoning Map
Attachment E - Project Plans
Attachment F - Approved Cannabis Locations
This report was prepared by Arturo Carrasco, Associate Planner, (209) 937-8955 or Arturo.Carrasco@stocktonca.gov.