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A REQUEST FOR A COMMISSION USE PERMIT TO TRANSFER AN APPROVED CANNABIS RETAILER STOREFRONT AND AN ADMINISTRATIVE USE PERMIT TO ESTABLISH A CANNABIS RETAILER NON-STOREFRONT (DELIVERY ONLY) BUSINESS USE AT 4975 WEST LANE (APN 104-160-28) (APPLICATION NO. P26-0125)
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution:
1. Approving a Commission Use Permit to transfer an approved cannabis retailer storefront and approve an Administrative Use Permit to establish a cannabis retailer non-storefront (delivery only) business use at 4975 West Lane (APN 104-160-28), in accordance with the findings and subject to the conditions in the Proposed Resolution.
2. Finding that the project is categorically exempt from the CEQA, pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities), as the project will occupy an existing building and no expansion is proposed.
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Summary
Lauren Carpenter on behalf of Embarc Stockton LLC (“Applicant”) submitted an application for a Commission Use Permit to transfer an approved Cannabis retailer storefront, and an Administrative Use Permit to establish a cannabis retailer non-storefront (delivery only) business at 4975 West Lane (“Project”). The Project site is located within an established integrated commercial development in the Commercial, General (CG) zoning district.
The Applicant was the 2023 Commercial Cannabis Lottery program winner. On April 11, 2024, they successfully obtained a Commission Use Permit (CUP) for a Cannabis retailer storefront at 1137 South Stockton Street (P23-0255). Although the use has not been initiated as no building permits have been applied for or issued at the approved location, the Use Permit remains valid because the Applicant filed two 12-month extensions (P25-0066 and P26-0109) to maintain their approved Use Permit, which extended the expiration date to April 21, 2027.
Pursuant to Stockton Municipal Code (SMC) Section 16.80.195(A)(14) Transferability of Land Use, an approved operator may request to transfer their existing Cannabis Retailer Storefront use to another location by applying for new CUP. The SMC requirements for approval of such a transfer include the property owner of the original site voluntarily surrendering the previously approved Use Permit as a condition of approval. It does not require a cannabis retailer storefront operator seeking to transfer locations to participate in a new lottery cycle.
This Project also requests an Administrative Use Permit (AUP) for a cannabis retailer non-storefront (delivery only) use to operate along with the cannabis retailer storefront use.
Staff evaluated this Project for conformance with the City’s Cannabis Ordinance under SMC Section 16.80.195 (Cannabis business types-Commission use permitting), and with all applicable provisions of the SMC, including the location requirements mandating separation from residential zones or uses, public parks, schools, and other sensitive uses identified in subsection 16.80.195(A)(6) and (B)(4). The proposed project meets the location requirements in Subsection 16.80.195(A)(6) and (B)(4).
Further, the 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.
Pursuant to SMC Section 16.80.195(A)(3), and in accordance with SMC Section 5.100.080, the City shall not allow the operation of more than 14 cannabis retailer storefront businesses. There are currently nine (9) approved cannabis retailer storefront locations, six (6) of which are operating. If approved, the Project will not result in an increase of approved locations as the Project will be conditioned to voluntarily surrender the approved Use Permit (P23-0255) at 1137 South Stockton Street.
As mentioned above, the Project is consistent with the City’s development standards for Cannabis business types (SMC 16.80.195) and meets General Plan policies; therefore, staff recommends the Planning Commission approve the requested CUP and AUP as all required findings can be made in the affirmative, as evidenced in the proposed resolution, and subject to conditions. If the proposed Project application were to be denied, then the approved Use Permit (P23-0255) for cannabis retailer storefront at 1137 South Stockton Street remains in place, subject to initiation of use prior to the expiration date.
DISCUSSION
Background
On August 17, 2023, Lauren Carpenter on behalf of Embarc Stockton LLC was selected as the winner of the 2023 Commercial Cannabis lottery (CL23-00009). On September 15, 2023, a complete application was submitted for a Cannabis retailer storefront CUP at 1137 South Stockton Street (P23-0255). On April 11, 2024, the Planning Commission approved the CUP, which became effective on April 21, 2024.
On April 11, 2025, the Community Development Director administratively approved a 12-month time extension request for the approved Use Permit (P25-0066). The extension was requested to allow additional time to complete architectural plans and coordination with regulatory bodies. On April 27, 2026, the Community Development Director approved a second 12-month time extension request (P26-0109) for the approved Use Permit. The second extension was granted to allow the applicant additional time to coordinate site improvements and ongoing site acquisition negotiations. With the second extension, the approved Use Permit under P23-0255 is set to expire on April 21, 2027. The SMC does not allow any further extensions. As of the writing of this report, the approved Use Permit at 1137 South Stockton Street (P23-0255) has not been initiated as no building permit has been applied for or issued for site improvements.
Present Situation
On May 14, 2026, the Applicant submitted a complete application for a new CUP to transfer their existing Cannabis Retailer Storefront use from 1137 South Stockton Street to 4975 West Lane to be in a more central location on a main thoroughfare. Additionally, the Application requested an AUP to add a cannabis retailer non-storefront (delivery only) use at the West Lane location. Pursuant to SMC Section 16.80.195(A)(14), the application to transfer an approved Cannabis retailer storefront does not require participation in the City’s Commercial Cannabis Lottery and the lottery does not apply to AUP applications for cannabis retailer non-storefront (delivery only) uses.
The Project site is located on the eastern side of Palm Plaza fronting West Lane. It is surrounded by commercial uses to the north and south (PepBoys Auto Service and Outdoor Sportsman) and a Self-storage use to the west (Attachment A- Vicinity Map). The Project site has a General Plan designation of Commercial (Attachment B - General Plan Land Use Map) and a zoning designation of Commercial, General (CG) (Attachment C - Zoning Map).
The Project will occupy a ±3,744 square foot vacant standalone building, as shown in Exhibit 1 of the proposed resolution. As described in Attachment D - Statement of Use, deliveries including drop-off/pick-up and the retailer storefront will operate between 7:00 a.m. and 8:00 p.m. Monday through Sunday, pursuant to SMC Section 5.100.280. The Applicant will employ approximately 10 full-time employees.
If the Project is approved, a formal security plan and lighting plan will be submitted and reviewed by the Stockton Police Department as part of the required Operators Permit application process to ensure safe operations. At a minimum, at least one security guard will monitor the facility during operating hours, with additional guards as needed, and there will be 24-hour on-site surveillance.
Pursuant to SMC Section 16.64.040, Table 3-9 (Parking Requirements by Land Use), cannabis retailer storefront uses are required to provide 1 parking space per 250 square feet (sf) of gross floor area and 1 additional space for every 2,000 sf of ancillary spaces Accordingly, the Project would be required to provide 10 parking spaces; 9 spaces for gross retail area (± 2,200 SF) plus 1 for ancillary areas (±1,545 SF). However, pursuant to Government Code Section 65863.2, because the Project site is located within one-half (½) mile of a high frequency transit corridor (West Lane), the City cannot enforce the minimum parking requirements. Despite that, the Project voluntarily proposes 13 parking spaces.
The proposed Project is consistent with cannabis retailer storefront and retailer non-storefront requirements in accordance with SMC Section 16.80.195(A) and (B) and all applicable Development Code Standards.
Staff Analysis
A CUP and AUP are required for the proposed cannabis business types. Staff analysis is provided below for the Planning Commission’s consideration.
Location Requirements
Per SMC 16.80.195(A)(6) and 16.80.195(B)(4), the following location requirements apply to all cannabis retailer storefront and non-storefront (delivery only) operators:
a. Shall not 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 E - Proximity Map.
b. Shall not 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 E- Proximity Map.
c. In addition to section a and b above, a retailer storefront operator shall not establish or locate within 1,000 feet of any of the following: Existing cannabis storefront retailer operator; Existing RDC (Retail, Distributor, Cultivation), RDM (Retail, Distributor, Manufacturer), and/or RCM (Retail, Cultivation, Manufacturer) microbusiness operator. The term “Existing” as referenced in the Code 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 site. The closest approved cannabis retail storefront operation is at 7840 West Ln #F (P20-673), approximately 1.3 miles north of the site. Attachment F includes a map of the approved Cannabis Storefront Locations.
Surrender of Use
Pursuant to SMC Section 16.80.195(A)(14) (Transferability of Land Use), any existing cannabis retailer may transfer from one location to another if they meet the requirements, including that the property owner of the previously approved location voluntarily surrenders the approved use permit(s) for the existing location.
Should this Project be approved by the Planning Commission, the previously approved Use Permit at 1137 South Stockton Street (P23-0255) will be automatically surrendered by the property owner. While the voluntary surrender of the existing Use Permit will be a condition of approval, to ensure that such action occurs upon the approval of the Project, the property owner has submitted to staff a notarized “Surrender of Use” form that states the owner is voluntarily surrendering the CUP for cannabis retail operations at 1137 S Stockton Street, P23-0255, effective upon final approval of the Project.
Use Permits
A CUP is required for a cannabis retailer storefront business, and an Administrative Use Permit is required for a cannabis retailer non-storefront (delivery only) business. The following analysis addresses the proposed land uses.
SMC Section 16.168.050(A) requires seven (7) general findings of fact shall be made to grant a Use Permit (Commission or Administrative). Staff’s analysis of each finding, based on the evidence provided by the Applicant and conformance with the SMC, is 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.
Analysis: The proposed cannabis retailer storefront and retailer non-storefront (delivery only) uses are conditionally allowed in the CG Zone with approval of Commission and Administrative Use Permits, respectively. The Project meets the requirements for both the required Commission and Administrative Use Permit. Specifically, the Project meets the location requirements set forth in SMC Section 16.80.195(A)(6) and (B)(4); it is not located within 300-feet of any existing residential zone or use; 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 (Attachment E); and is not located within 1,000 feet of another retail operator (Attachment F). As conditioned, the Project will conform with all applicable development standards in Title 16 of the Stockton Municipal Code.
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.
Analysis: The Project would operate within an established commercial convenience and service oriented corridor. The Project use will attract a diverse customer base and contribute to increased economic activity which will strengthen the integrity and vitality of the neighborhood. The Project’s required security will bring additional security and surveillance measures to surrounding businesses and will increase safety to the surrounding neighborhood. 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.
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 professional, residential uses, public and quasi-public uses; and other related uses. The proposed use is a cannabis retailer storefront and non-storefront (delivery only) business, which is a retail and commercial use, and is consistent with the General Plan 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.
Policy LU-6.5 Improve and maintain the City’s Fiscal Health
The proposed use furthers the above goals and policies because it would provide a business type that generates tax revenue to support 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 the surrounding area, which consist primarily of service uses such as fueling stations and fast-food restaurants. The proposed location is not located in proximity to 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.).
Analysis: The proposed Project has been analyzed by all applicable departments. City staff has determined that all existing streets and public accessways are adequate to serve the Project. The site has existing City utility services, including sewer and water. Since a Building Permit for a tenant improvement is required for the proposed cannabis facility, 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.
Analysis: The Project will be required to adhere to all applicable local and state Building and Fire Codes, and additional requirements established by the State of California Department of Cannabis Control. The owner, developer, or successor (ODS) will also be required to obtain and maintain an Operator’s Permit from the City of Stockton. The Operator’s permit requires the ODS to develop and maintain a security and lighting plan that is reviewed annually by the Police Department. The security provided by the Project is expected to enhance overall safety and stability to the area as it will introduce a well-regulated and secured business. All cannabis activity will occur entirely indoors, and the premises will be designed with multiple layers of physical security and operational controls that far exceed those required of traditional retail businesses. During operating hours, at least one professional security guard will be on-site, with additional guards as needed, monitoring customer activity, enforcing age restrictions, and performing regular checks throughout the property, including youth deterrence patrols and observation for potential diversions.
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 Project will occupy an existing, developed site, that is consistent with location characteristics of other cannabis retailers operating in the City of Stockton. The Project is in a commercial center surrounded by other retail and service oriented establishments that complement one another. The Project’s proposed business itself will operate within the same parameters as other commercial tenants in the area - adhering to a standardized schedule, providing off-street parking, and generating consistent foot traffic, and will integrate seamlessly into the site without the need for exterior modifications or expansions. Accordingly, the Project is not expected to negatively impact the surrounding uses, existing or future, on-site or in the vicinity of the Project.
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 Project is categorically exempt from the CEQA, pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities) since the project will occupy an existing building and no expansion of the site is proposed. Accordingly, staff has prepared and will file a Notice of Exemption pursuant to CEQA Guidelines Section 15062.
Floodplain Finding (SMC Chapter 16.90)
SMC Chapter 16.90.20 states that the City shall not approve a discretionary permit, such as a CUP or Administrative Use Permit, that would result in an increase in allowed occupancy for an existing building unless, based on substantial evidence, one of six (6) conditions exist. Here, consistent with SMC Section 16.90.020 A(5), based on the current effective 200-Year Floodplain Analysis Map, the property is located in an area of potential flooding of three (3) feet or less from a storm event that has a 1-in-200 chance of occurring in any given year, from sources other than local drainage, in urban and urbanizing areas.
PUBLIC COMMENT
On July 1, 2026, the applicant held a voluntary, duly noticed, neighborhood meeting to present and receive neighborhood input on the proposed Project. Although not required, the meeting was noticed in conformance with the requirements in SMC Section 16.88.025 (Neighborhood meetings). The meeting was held at the Best Western Plus Heritage Inn at 111 East March Lane at 6:00 PM. Six (6) people attended the meeting and none of them expressed opposition to the proposed cannabis business. Staff did receive three (3) email comments from concerned parties opposing the Project. One of those comments came from the business immediately south of the Project site, “Outdoor Sportsman”, at 4969 West Lane. They are concerned with the potential impacts to their business.
On August 28, 2026, a public notice of the item and meeting was mailed to all property owners within a 300-foot radius of the Project parcel and property owner of 1137 South Stockton Street (holder of current Use Permit (P23-0255)). A notice was also published in The Record newspaper. At the time of writing this report, no additional public comments have been received.
ATTACHMENTS
Attachment A - Vicinity Map
Attachment B - General Plan Map
Attachment C - Zoning Map
Attachment D - Statement of Use
Attachment E - Proximity Map
Attachment F - Approved Cannabis Storefront Locations
This report was prepared by Arturo Carrasco, Senior Planner, (209) 937-8955 or Arturo.Carrasco@stocktonca.gov.