Solvang Council Tables Zoning Request for Proposed Cannabis Dispensary

Councilmembers want to get more information from Sheriff's Cannabis Compliance Team

By Mike Chaldu michael@santaynezvalleystar.com

The Solvang City Council held its regular meeting on Monday, Feb. 13, and heard an appeal to amend Chapter 5-4 of the city's Municipal Code to allow a cannabis dispensary to open in the city.

However, after hearing a presentation from the owners of the prospective dispensary and then from Sheriff's Lt. and Solvang Police Chief Mark Valencia, the council decided to table the topic to a future meeting with the intent to get more data on the possible crime increase the business may bring about.

Currently, a Solvang city ordinance allows only medicinal cannabis to be sold in the city limits, although state law now considers adult-use (or recreational) cannabis legal. In answering questions from Mayor Mark Infanti and Councilmember Dave Brown, City Counsel Dave Fleishman pointed out that adult-use cannabis can be delivered into Solvang from a nearby town, such as Lompoc, but the tax revenue would be collecting according the the site of sale.

The owners of Megan's Organic Market (MOM), a San Luis Obispo-based dispensary that has several locations in California, have requested the council to amend the ordinance and allow adult-use cannabis to be sold in the city, so that they could open a new location at 1210 Mission Drive, next to the Nielsen Building Materials building.

Megan Souza, the founder and CEO of MOM, gave a presentation of the business along with the business’ chief operating officer, Nick Andre during the public comment portion of the item.

Souza told the council MOM is not a typical dispensary.

"With many dispensaries, they're cold and clinical and many of the products are behind glass," she said. "We're trying to normalize the cannabis shopping experience by making it as much of a regular store as possible."

Andre took over after her time elapsed, telling the coun- cil how an amendment to the ordinance would increase tax revenue.

"With the changes in California, many medicinal users are abandoning their medical cards; there's no use for them anymore," he said. "In 2022, in our store in San Luis Obispo, 200,000 have come in as adult-use customers, and just 1,700 have come in as medicinal users."

Andre told the council allowing their business to sell to adult-use customers would get "over 50 times the tax revenue" if it were to allow adult-use sales.

In council comment, Councilmember Robert Clarke said he would welcome the tax revenue.

"I'm not a big fan of pot, but voters in the state approved it; anyone can get it," he said. "I know people who go to Lompoc to get it. If they're going to Lompoc, we're losing out on tax dollars."

Mayor Pro Tem Elizabeth Orona made a point on how legalizing adult-use sales might be beneficial to a tourist-driven town like Solvang.

"Medicinal usually goes to residents and most of our tax revenue comes from visitors," she said. "Adult-use at a location in town would open up that tax revenue."

However, Orona did have reservations about a possible uptick in crime, and whether some of that revenue would necessitate more sheriff's services.

"Is there any indication suggest that move would increase more service from sheriff’s?" she asked.

"I'm not sure how much tax revenue we’re talking about (pay for increased sheriff's services). I need more data."

Valencia was called up to the speaker's podium and said there would be an increase in sheriff's services (from a resulting crime increase) with adult-use sales in the city. He suggested the councilmembers consult the Sheriff's Cannabis Compliance Team.

"I have experience with narcotics," he continued. "I don't have the numbers in front of me, but with recreational marijuna there is an increase in DUIs, juvenile crimes have gone up, contacts in schools at Cabrillo and Santa Ynez are up. Most of the marijuana we seize comes from dispensaries; it’s not their fault, but it does end up in the hands of juveniles easier than before."

Infanti asked about the possibility of more dispensaries opening up in Solvang if they allowed adult-use sales, buy

Fleishman assured him that the city had the flexibility to say no if someone tried to open a business in an unacceptable location.

Councilmember Claudia Orona was on board with changing the ordinance as long as the location of proposed dispensaries was limited.

"It's a question of whether we're tapping into tax revenue," she said. "I would support amending the code allowing adult use, not open to reviewing more locations or consumption. I wouldn’t be OK with it in the village, near schools or community centers."

After the discussion, Elizabeth Orona moved to table the topic for a future meeting and get more information from the Sheriff's Department at that time.

The motion passed 3-2, with Clarke and Claudia Orona oppposed.

In other business at the meeting:

The council approved the submittal of the Draft General Plan Housing Element for submittal to the state for review. As was the case with the Jan. 23 meeting, much of the public discussion of the Housing Element was focused on Site 3 in Solvang as several residents of the Mission Oaks area warned against the possibility of development on a steep hillside in the area. The plan was to be submitted with a change in required height and a lot line adjustment.

The council approved an Emergency Construction Contract with Hanley General for South Alisal Road Repair for $390,442.44 to fix damage from the January storms; authorize city manager with change orders within $150,000; approve contract with MNS Engineers for oversight, permit compliance and FEMA project reimbursement through FEMA in the amount of $147,678.00. The approval also included a budget amendment for the total of $688,120.44.

Cheryl Shallanberger, marketing manager for the City of Solvang, gave a report on the Julefest celebration during the holiday season (Nov. 26 to July 6). She highlighted the nightly light shows downtown, as well as the Nisser Adventure scavenger hunt (which had 1,800 participants) and live entertainment. She also stated goals the city had for this year's Julefest, including the possibility of adding a New Year's Eve event.

City Council meets next on Monday, Feb. 27, at 6:30 p.m.