Belmont OKs 2 cannabis dispensaries

The prospect of allowing dispensaries to operate in the city has been a contentious issue going back to 2017. But at the end of 2023, the city created a zoning district, located on El Camino Real between O’Neill Avenue and F Street, which permits cannabis retail and distribution businesses, however, they’re still subject to council approval. The district allows a maximum of two cannabis businesses, which must be located at least 600 feet from child care facilities or schools. There is also no smoking or loitering allowed outside the stores.

NUG Dispensary stirred more controversy than Canna-Bel, as it’s situated closer to a residential neighborhood, though Community Development Director Carlos de Melo confirmed there is ample buffer between the site and homes, including a fence, a 15- to 20-foot elevation differential and an alleyway.

“It doesn’t directly abut any residential parcel,” he said. “It’s a tremendous separation between properties.”

During the Planning Commission meeting March 12, four commissioners voted against recommending NUG’s approval — two commissioners cited concerns with the specific location and community outreach — while the other two rejected it largely due to a general opposition to having retail cannabis in Belmont.

During the council meeting March 25, Councilmember Gina Latimerlo was the only one on the City Council to vote against the NUG Dispensary in response to neighborhood concern. While some of the planning commissioners “went far beyond the scope of what the City Council instructed them to evaluate,” she said she felt that it was important to give the neighborhood “a little more time to adjust to this new commercial reality and not put something there right now.”Public commenters expressed both support and frustration toward the dispensaries’ proposals. Belmont resident Nicki Fox said she didn’t understand why the city needed two dispensaries, especially in such close proximity, and that it could cut down on retail diversity.

Both Mayor Julia Mates and Councilmember Cathy Jordan countered that, given the uncharted territory the city is in, approving two dispensaries would boost the potential success rate, which includes tax revenue. And in response to community feedback, the city is only allowing retail cannabis to operate along a small section of El Camino Real.

“The two businesses have very different models,” Mates said. “We want to increase our chances of having one of these be successful and not having to choose between them.”

Given the robust security measures, as well as regulations that prohibit loitering or smoking outside, most councilmembers said they were also comfortable with the businesses from a public safety perspective.

“I do not agree that the presence of cannabis will change the fabric of our town. These businesses are highly, highly regulated with security guards on premise,” Jordan said. “There is no loitering allowed. People go to these places … and they leave.”

Mates said the city already has numerous establishments that sell age-restricted items, like tobacco and liquor, which are not always far away from family-focused activities.

“We also have businesses in Belmont that sell liquor that are not far from parks and schools,” Mates said. “We have businesses that sell all kinds of things that someone could smoke or drink, even in our gas stations … which are things that are already in our communities and in our neighborhoods.”

Cannabis operators face a 6% business license tax on gross receipts — compared to 0.4% for other retailers — and as part of the development agreement, both dispensaries will pay an additional 1.5% to 2% of gross receipts toward community benefit funds, such as Parks and Recreation-related programming. NUG will make an additional $50,000 donation to the city’s Parks and Recreation Department.