These two SLO cannabis businesses were just given the go-ahead to start operations
San Luis Obispo has its first two licensed recreational marijuana operations in town.
And it appears one storefront could be open by springtime.
The SLO City Manager’s Office announced in a news release Friday that it first two commercial cannabis operator permits were given to Megan’s Organic Market SLO and Coastal Delivery SLO.
Both will be the city’s first-ever adult-use cannabis businesses, following what the city calls a “several month vetting process that verified they meet the standards established through a collaborative process with the city and community.”
The two permits are just the first of five total permits the city plans to approve. Three other businesses — Natural Healing Center (which currently operates a dispensary in Grover Beach), Elemental Wellness and Element 7 — are currently going through the vetting process, according to previous Tribune reporting.
Greg Hermann, deputy city manager, wrote in the news release that because legal marijuana operations are “new territory” for California cities, San Luis Obispo has been “thoughtful and deliberate” in the application and review process.
“In the end, the businesses that get permits to operate here will be set up for long-term success while also supporting the community character and quality of life that makes San Luis Obispo such a special place,” Hermann wrote.
In May 2018, the city council approved an ordinance allowing commercial cannabis businesses in the city. The ordinance allows up to three retail storefronts in its cannabis business zones, which are near major arterial roads such as Broad Street, South Higuera Street and Tank Farm Road.
But the city is not limiting the number of delivery, cultivation, manufacturing and other small marijuana and CBD businesses.
The council in late 2018 adopted regulations that established a permitting process for cannabis operators, and the first permit application period opened in January 2019.
The city ultimately received 11 applications, which were scored by city staff on merit-based criteria developed with input from the community.
The criteria included community benefit, experience, equity and labor, financial investment, and a commitment to medical cannabis, according to a news release.
The scores were then reviewed and approved by City Manager Derek Johnson, and contingent operator permits were issued on March 28 for three retail storefronts, one delivery service (without a storefront) and one micro-business (non-storefront).
The five applicants have since been preparing to begin operations as city staff conducts the final step of the screening and approval process, which includes extensive background checks for all partners and principals for each of the businesses.
Coastal Delivery SLO and Megan’s Organic Market SLO are the first two to complete the background process and thus received their operating permits Friday.
A voice message for Megan’s Organic Market was not immediately answered Friday afternoon, but a message on its website read: “Stay tuned for our San Luis Obispo dispensary coming Spring 2020!”
Hermann said Coastal Delivery SLO is expecting to be fully operational around Thanksgiving.
More information about the city’s permitting process for cannabis businesses can be found at slocity.org/cannabis.