The Coachella City Council recently approved changes to the city's cannabis regulations, removing a 5-acre requirement -- which was often contested -- and cutting down on permit paperwork.
The changes are geared toward manufacturing, testing, distribution and cultivation aspects of the business but will not impact cannabis retail sites, since the council did not approve a proposal for expanded dispensary locations.
The Desert Sun reported that the city would be changing some of its rules and regulations for the cannabis industry, which were first adopted in 2016. Previously, commercial cannabis businesses needed at least 5 acres to operate. The city council voted 3-0 last week to lift that requirement.
"None of those standards made sense to staff at this time, because we just had a lot of people that were applying for variances of those standards," Development Services Director Gabriel Perez told the Desert Sun. "So it doesn't make sense for us to keep having to approve variances (because) if we're approving them, we're basically saying we are okay with the exceptions."
In addition to the 5-acre rule, the requirement for cannabis businesses to have a conditional-use permit was also lifted by the same 3-0 vote. The conditional-use permit clashed with another rule the city has, which is that commercial cannabis businesses are only able to operate in industrial zone areas. This conflict of interest has resulted in excessive paperwork, Perez told the Desert Sun.
Casting the three unanimous votes were Mayor Steven Hernandez and Council members Neftali Galarza and Denise Delgado. Mayor Pro Tem Josie Gonzalez and Council member Beaman Jacinto weren't present for the vote.
There was no approval, however, for a third proposed change that would have impacted retail zoning by expanding cannabis sales beyond Coachella's current "sub-zones." Opening the door to dispensaries outside the sub-zones would allow the cannabis industry to expand onto Cesar Chavez Boulevard and other main areas of the city. However, the council considered such a change unfair to current businesses that may feel pressured to relocate to maintain high visibility.
City Manager Gabriel Martin said that the proposed zoning changes were to allow for more opportunities and more competition. This is partly due to Indio City Council's recent vote to allow cannabis retail in parts of the city that are marked as "commercial use." Currently, Coachella has four dispensaries, and the city has defined a maximum cap of 10.
Perez said a total of seven dispensaries are anticipated in Coachella next year.