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A REQUEST FOR A COMMISSION USE PERMIT TO ESTABLISH A CANNABIS RETAIL STOREFRONT AND AN ADMINISTRATIVE USE PERMIT FOR A NON-STOREFRONT RETAIL (DELIVERY ONLY) BUSINESS AT 4895 STATE ROUTE 99 FRONTAGE ROAD, SUITE C (APN 179-260-52) (APPLICATION NO. P25-0184)
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 Facilities), 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, Dustin Moore (Embarc Stockton II LLC), submitted an application for a Commission Use Permit to establish a Cannabis Retail Storefront and an Administrative Use Permit for a non-storefront (delivery only) business in a 1,160± square-foot commercial suite at 4895 South State Route 99 East Frontage Road, Suite C. The project site is located within an established commercial development in the Commercial, General (CG) zoning district.
The applicant was the winner of the 2025 Commercial Cannabis Lottery program and was awarded the opportunity to apply for a Cannabis Retail Storefront Commission Use Permit (CUP) as a general pool applicant (CL25-00002). Participation in the lottery is only required for retail storefronts and not for non-storefront retail (delivery only) land use.
Prior to declaring the applicant as a lottery winner, the applicant was made aware of the denial of a similar project at the same proposed location by the Planning Commission on April 10, 2025. The applicant was offered an opportunity to select another location; however, they chose to continue with the same location. As required by the Stockton Municipal Code (SMC) Section 16.168.050, the applicant is responsible for and has presented in their application compelling evidence in support of making all required findings of fact for approval of the project, attached to this report as Attachment A.
This application was evaluated 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 Municipal Code as described in this report. The evaluation included 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). As further described in this report, staff can confirm that the proposed project meets the location requirements in Subsection 16.80.195(A)(6).
Although the Planning Commission denied a similar proposed use at this same location on April 10, 2025, the Planning Commission must fairly and impartially consider this newly proposed project application based on all information that is provided in this staff report and presented in the public hearing. 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 the applicant has submitted evidence demonstrating that 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 retail storefront applicant shall apply for the Lottery System. Lottery applicants can apply as general pool or equity applicants and shall successfully 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.
On July 28, 2025, as shown in Attachment B (Cannabis Lottery win letter), the applicant, Dustin Moore of Embarc Stockton II LLC, was declared a 2025 general pool Commercial Cannabis lottery winner by successfully satisfying the eligibility requirements described in SMC Section 16.80.195(K) for a cannabis retail storefront business at 4895 South State Route 99 East Frontage Road, Suite C, Stockton, CA 95215. Prior to the official lottery award, the applicant was informed that on April 10, 2025, the Planning Commission denied a similar project at the proposed project location and was offered the opportunity to find a different location. The applicant chose to continue with the proposed project site location.
As a winner of the 2025 lottery, the applicant is required to apply for a necessary Commission Use Permit (CUP) within 90-days of lottery award date per SMC 16.80.195.(K)(5)(a), here, by October 28, 2025. The applicant met this requirement through the submission of their application on September 9, 2025. Said submittal also included a proposed Administrative Use Permit for a cannabis non-storefront delivery only use (not subject to a lottery process).
Pursuant to SMC Section 16.80.195(A)(3), and in accordance 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, and as shown in Attachment C (Approved Retail Storefront Cannabis Locations), there are eight (8) approved storefront locations and only six (6) are currently in operation.
For informational purposes, on March 27, 2025, the Planning Commission considered a Commission Use Permit and Administrative Use Permit for a similar, unrelated, Cannabis Retail Storefront and Non-Storefront (delivery only) business request at the proposed project location. Staff proposed a recommendation for approval of the project based on required findings; however, the Planning Commission was unable to make all required findings of fact for approval citing incompatibility with surrounding family oriented uses and proximity to freeway onramps as a potential hazard. The Planning Commission formally denied the project on April 10, 2025.
Present Situation
On September 9, 2025, the applicant, 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 ±6,707 square-foot commercial building at 4895 South State Route 99 Frontage Road (Attachment D - Location Map). The site has a General Plan designation of Commercial (Attachment E - General Plan Land Use Map) and a zoning designation of Commercial, General (CG) (Attachment F - Zoning Map).
The project will be located in a vacant suite (C) of a five (5) suite commercial building. The building is currently occupied by four (4) food establishments (restaurants): Starbucks, Subway, Fresh Slices Pizza, and Tacos Chapala. The project site is bound to the west by State Route 99, to the south by Highway 99 on-ramp/Arch Road, Burger King (restaurant) and 99 Frontage Road to the east, and a gas station with retail to the north (Attachment G - Project Plans).
The proposed cannabis retail storefront and non-storefront delivery business will operate between 7:00 a.m. to 8:00 p.m. Monday through Sunday, pursuant to SMC Section 5.100.280. The applicant will employ up to 10 employees at full capacity, plus, at minimum, one (1) on-site security guard with additional security guards added as needed. Deliveries of product will be accommodated during low-patron traffic periods on weekdays to reduce public interaction.
The existing commercial development accounts for 52 parking spaces in a single parking lot shared by the existing businesses in the building. The parking spaces on the adjacent parcel containing a quick-service restaurant are not being used in this analysis. Pursuant to Table 3-9 (Parking Requirements by Land Use) in SMC Section 16.64.040, 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. 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 existing 6,707 square-foot building would be required to provide 27-34 parking spaces based on a ratio of 1 parking space per 200 and/or 250 square-feet, depending on the use of each suite; therefore, the existing 52 parking spaces on the subject parcel are more than adequate to serve the proposed and existing businesses, being at minimum 18 spaces more than the requirement.
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.
The proposed Project is consistent with all applicable cannabis retail storefront and retail non-storefront delivery requirements in accordance with SMC 16.80.195(A) and (B).
Analysis
A CUP and AUP are required for the proposed cannabis use 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 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 F.
b. 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.
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. 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’s site 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 C)
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 uses would be carried out within the project site. The following analysis addresses the proposed land uses.
SMC Section 16.168.050.A requires seven general findings of fact to grant Use Permit approvals. Staff’s analysis of each finding, based on the evidence provided by the applicant (Attachment A), 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 retail storefront and non-storefront retail (delivery) uses are conditionally allowed in the CG Zone with approval of Commission and Administrative Use Permits. If approved and conditioned, the cannabis operation will comply with the Development Code (Title 16) of the Stockton Municipal Code. The proposed project meets the location requirements set forth in SMC 16.80.195(A)(6). The project is located more than 2,000 feet away from any existing residential zone or use, complying with the minimum 300 foot requirement. The project is not located within 600 feet of any sensitive uses such as a 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. The nearest park is 1,500 feet away, and nearest school providing K-12 instruction is over 3,000 feet away.
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 site is a well-trafficked, convenience-oriented corridor that attracts a diverse customer base and is anchored by fast-casual establishments that support the day-to-day needs of community members. The proposed use will strengthen the integrity and vitality of the neighborhood by introducing increased security, safety, and add economic activity, occupying the last remaining suite in the commercial building.
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 that 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 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.
Policy LU6.5 Improve and maintain the City’s Fiscal Health
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.).
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 and Fire 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 require the applicant 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 applicant or operator 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. Increased security is expected to improve overall safety and stability 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, professional security guards will be on-site, monitoring customer activity, enforcing age restrictions, and performing regular checks throughout the property, including youth deterrence patrols and observation for potential diversions.
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.
Analysis: The project is consistent with location characteristics of other similar cannabis retailers operating in the City of Stockton that are surrounded by retail establishments without negative community impacts. The proposed business itself will operate within the same parameters as other commercial tenants in the center-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.
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 Facilities) since the project will occupy an existing facility and no expansion of use is proposed.
PUBLIC COMMENT
On January 26, 2026, the applicant team sent invite notices to property owners within 300 feet of the site, using a mailing list provided by staff, and held a neighborhood meeting to present and receive comments on the proposed project. The meeting was held at the Hampton Inn (3651 Arch Road) and was attended by eight (8) community members in addition to a City staff person. All attendees expressed support for the project, because the applicant stated, in their presentation, that they will be a unionized business, will hire local, and will provide additional security to the shopping center.
On February 16, 2026, 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.
ATTACHMENTS
Attachment A - Applicant’s evidence in support of positive findings
Attachment B - Cannabis Lottery Win Letter
Attachment C - Approved Retail Cannabis Locations
Attachment D - Location Map
Attachment E - General Plan Land Use Map
Attachment F - Zoning Map
Attachment G - Project Plans
This report was prepared by Arturo Carrasco, Senior Planner, (209) 937-8955 or Arturo.Carrasco@stocktonca.gov.