TO: PLANNING COMMISSION
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: JUNE 3, 2025
SUBJECT:
Title
CONSIDERATION OF AN AMENDMENT TO THE CLAREMONT ZONING CODE TO ALLOW CANNABIS STOREFRONT RETAIL BUSINESSES AS A CONDITIONALLY PERMITTED USE IN SPECIFIC COMMERCIAL, BUSINESS/INDUSTRIAL, AND MIXED-USE ZONES (FUNDING SOURCE: DCC LOCAL JURISDICTION RETAIL ACCESS GRANT)
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SUMMARY
The City of Claremont currently prohibits commercial cannabis businesses, with the exception of deliveries from businesses based outside of the City, as permitted under State law. In November 2022, Claremont voters approved a cannabis business tax measure with 61 percent support. Following this, the City Council directed staff to initiate a public engagement process and explore options for regulating cannabis businesses within Claremont.
In 2023, staff held a series of “Listen and Learn” workshops. During these sessions, staff shared presentations regarding cannabis business types and regulatory options and received input from community members.
In early 2024, the City Council reaffirmed its priority to continue evaluating and securing revenue enhancement opportunities, including the potential regulation of cannabis. During the February 6, 2024 Claremont Planning Commission meeting, the Commission held an information session and regulatory review. The Commission provided input to staff regarding cannabis zoning regulations. Based on that input, staff has prepared a proposed amendment to the Claremont Zoning Code to allow and regulate cannabis storefront retail businesses in specific commercial, business/industrial, and mixed-use zones.
Because these code amendments would require an amendment to the City’s Zoning Code, public hearings are required before the Planning Commission (for a recommendation) and the City Council (for final approval).
RECOMMENDATION
Recommended Action
Staff recommends the Planning Commission adopt A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CLAREMONT, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AMENDMENTS TO TITLE 16 OF THE CLAREMONT MUNICIPAL CODE TO (1) AMEND TABLE 16.051.A IN SECTION 16.051.020 TO ADD A NEW USE “CANNABIS STOREFRONT RETAIL” AS A CONDITIONALLY PERMITTED USE (2) ADD A NEW CHAPTER 16.102 TITLED “CANNABIS BUSINESSES”.
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ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
A. Request changes to the proposed resolution and/or its code amendments, which depending on the extent of the changes, may require the Commission to continue the item.
B. Do not recommend approval of the proposed ordinance and/or resolution.
C. Take no action.
FINANCIAL REVIEW
In June 2023, the City of Claremont was awarded a Local Jurisdiction Retail Access Grant for $195,000 by the California Department of Cannabis Control. The grant program aims to provide California consumers with reliable access to regulated, tested cannabis in the legal market and reduce demand in the illicit market. The funding may be used to support developing and implementing a cannabis licensing program. Therefore, there will be no impact on the General Fund for the development of this program.
Because the City of Claremont does not currently permit cannabis businesses (except cannabis deliveries originating from non-Claremont-based businesses), it is difficult to estimate the tax revenue from cannabis businesses. If the City permits cannabis businesses, tax revenues would vary greatly depending on the number of retail businesses allowed. The City’s previous consultant, HdL, estimated that the City could generate approximately $300,000 per retail store annually in revenue, based on the City’s six percent (6%) cannabis tax and sales tax.
The staff cost to prepare this report and administer the program is estimated at $17,500 and is included in the operating budget of the Community Development Department.
ANALYSIS
Claremont Cannabis History
California’s history of cannabis law spans nearly twenty years of propositions and regulatory actions. The Claremont City Council first adopted a ban on commercial cannabis businesses in 2006. On October 9, 2015, Governor Jerry Brown signed the Medical Marijuana Regulation and Safety Act (MMRSA), which generally authorized local agencies to allow and regulate cannabis businesses. On January 26, 2016, the City Council adopted an ordinance to clarify that, notwithstanding the newly adopted MMRSA, the City’s preexisting ban on cannabis businesses continued to prohibit cannabis dispensaries, cultivation, and delivery services.
Proposition 64, the Adult Use of Marijuana Act (AUMA), was adopted by California voters on November 8, 2016. The AUMA immediately legalized possession, transport, purchase, use, and transfer of recreational marijuana for individuals 21 years of age or older. Beginning in January 2018, the AUMA also established a State regulatory and licensing program for nonmedical commercial cannabis cultivation, testing, distribution, and manufacturing. Proposition 64 stipulated that if a city did not enact local cannabis commercial licensing restrictions or a ban by January 1, 2018, commercial cannabis businesses could operate with a valid State license. Therefore, until local regulations and interests could be analyzed and identified for implementation, the City of Claremont adopted ordinances to regulate the personal use and cultivation of cannabis and restrict commercial cannabis activities in the City.
On October 25, 2016, the City Council adopted Ordinance No. 2016-11 prohibiting commercial cannabis operations, including retail dispensaries, cultivation, manufacturing facilities, and delivery services within the City. While Proposition 64 allows cities to ban these commercial enterprises, it is important to note that cities cannot prohibit personal cultivation of six plants or fewer for personal use. Cities cannot prohibit deliveries from other municipalities’ cannabis retail locations to their residents. Any restriction on individual adults from possessing or purchasing certain amounts of cannabis or cannabis products for personal use is unenforceable under AUMA. On February 12, 2019, the City Council adopted Ordinance No. 2019-01 to reaffirm the ban on commercial cannabis operations.
On January 26, 2021, the City Council requested that staff engage the community in a discussion on considering cannabis regulations. The City engaged the services of HdL Companies to assist as a consultant in the community outreach process. In March 2022, staff held two virtual cannabis community workshops. Following those meetings, the City Council directed staff to prepare and place a cannabis business tax on the November 8, 2022, General Election ballot for voter approval. The measure passed with sixty-one percent (61%) support from Claremont voters. In January 2023, the City Council set the cannabis tax rates within the Claremont voter-approved ranges.
In 2024, the City Council reaffirmed its priority to continue evaluating and securing revenue enhancement opportunities, including the potential regulation of cannabis. During the February 6, 2024 Claremont Planning Commission meeting, the Commission held an information session and regulatory review and provided input to staff regarding cannabis zoning regulations.
Community Listen and Learn Sessions
Staff held three “Listen and Learn” community sessions between June and September 2023. During these sessions, staff gave a brief presentation on the history of cannabis regulations in Claremont and California and shared policy options available to cities that permit cannabis businesses. Staff also presented a map illustrating the state’s minimum zoning requirements, including a 1,000-foot buffer from the Pomona-Claremont border. Following the presentation, attendees were invited to provide comments and input regarding cannabis regulations in Claremont.
There was a mixture of perspectives among attendees. Many expressed general support for allowing cannabis retail businesses in Claremont, provided that sufficient regulations and safeguards were in place. Those who were opposed or conditionally supportive of cannabis businesses raised three primary concerns: crime, parking demands, and the potential adverse impacts of cannabis use on the community. Community members from South Claremont, in particular, voiced apprehensions about a possible increase in criminal activity near cannabis establishments. They also cited concerns about strain on local parking resources, referencing high parking demand at cannabis retail stores in nearby Pomona. Additionally, some community members expressed concerns about the perceived negative effects of cannabis use on individual well-being and the overall dynamics of the community.
Claremont Planning Commission Direction
During the February 6, 2024 Planning Commission meeting, staff presented to the Commission regarding cannabis regulatory options. Staff requested input from the Commission regarding a few primary questions. The feedback provided was incorporated into the Ordinance for consideration by the Planning Commission. The Commission’s recommendations are summarized below:
• Specific Location restrictions:
o The Commission recommended that cannabis businesses be prohibited in neighborhood shopping centers with grocery stores. The current grocery stores in Claremont are: Stater Bros. Market, Vons, Trader Joe’s, Sprouts, and Super King Market.
• Buffer Zones
o The Commission recommended maintaining the state-mandated 600-foot radius buffer around schools, daycares, and youth centers.
o When the City of Pomona was developing its cannabis regulations, the City of Claremont requested a 1000-foot buffer from the Claremont-Pomona border, and the City of Pomona accommodated that request. The City of Pomona made a reciprocal request for a 1000-foot buffer from the Claremont-Pomona border. The Commission recommended that the zoning ordinance include Pomona’s requested buffer.
• Type of Cannabis Businesses Permitted
o Staff presented a summary of the various types of cannabis business licenses offered by the State, including retail, manufacturing, indoor/outdoor cultivation, distribution, testing laboratories, and microbusinesses. Staff’s recommendation was to only allow storefront retail cannabis businesses.
o The Commission agreed with staff’s recommendation of only allowing for storefront retail cannabis businesses.
• Number of licenses:
o The Commission was in favor of limiting the number of licenses offered. They recommended setting an initial limit of two storefront retail cannabis business licenses.
Summary of Zoning Ordinance
The proposed Cannabis Business Zoning Ordinance introduces a new land use classification, “Cannabis Storefront Retail,” as a conditionally permitted use in several commercial, business and industrial, and mixed-use zones including the following; Commercial Professional (CP), Commercial Limited (CL), Commercial Highway (CH), Claremont Village (CV), Business/Industrial Park (B/IP), Mixed Use 1 (MU1), Mixed Use 2 (MU2), and Mixed Use 3 (MU3) zones. A Conditional Use Permit (CUP) would be required for cannabis retailers operating in any of these zones.
The Ordinance also adds Chapter 16.102 to Title 16 of the Claremont Municipal Code, establishing land use standards for cannabis businesses. Notably, cannabis businesses must be located at least 600 feet from sensitive uses such as K-12 schools, daycare centers, and at least 1,000 feet from the Claremont-Pomona city border. Additionally, cannabis storefronts are prohibited from being located in a shopping center that includes a grocery store.
Like other businesses, cannabis storefront retailers would also need to comply with existing zoning requirements, including standards related to site design, setbacks, signage, and landscaping. Although this is not within the purview of the Planning Commission, the City Council will also consider operational regulations for cannabis businesses, which would be in a new chapter in Title 5 of the Claremont Municipal Code.
Summary of Cannabis Business Regulations Ordinance (For Reference Only)
The Cannabis Business Activities Ordinance, provided for reference, establishes the regulatory framework for permitting and operating cannabis businesses in Claremont. The Planning Commission is not being asked to make a recommendation on this ordinance, but a preliminary draft of this ordinance is provided to the Commission to offer context for how cannabis businesses would be licensed and managed following zoning approval.
Key provisions include:
• Permitted Business Type: Only storefront retail cannabis businesses would be allowed; all other types (e.g., cultivation, manufacturing, testing, distribution, and microbusinesses) are prohibited.
• License Cap: The Ordinance limits the total number of storefront retail cannabis businesses in the City to no more than two.
• Permit and Application Process: Businesses must undergo a multi-phase process including pre-screening, background checks, zoning verification, and a Conditional Use Permit. Final selection of permittees is at the discretion of the City Council following a review and scoring process.
• Operational Requirements: Businesses must comply with extensive security measures, including surveillance, alarm systems, limited access areas, and 24/7 security protocols. Strict odor control measures, labor peace agreements (for employers with 20+ employees), and community benefit agreements are also required.
• Hours of Operation: Storefront cannabis retailers may operate from 9:00 AM to 9:00 PM, seven days a week. Delivery services are permitted during the same hours.
• Prohibited Activities: On-site consumption of cannabis, drive-through or pass-through sales, and any form of advertising visible from outside the premises are prohibited.
• Annual Renewal and Compliance: Permits are valid for one year and must be renewed annually. Renewal is contingent on continued compliance, financial audits, and operational performance.
• City Oversight and Enforcement: The City retains the authority to inspect premises at any time, suspend or revoke permits, and require indemnification and reimbursement for City costs related to enforcement or legal challenges.
This ordinance would be designed to ensure that cannabis businesses in Claremont operate safely, securely, and in a manner consistent with community expectations and state law.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Economic Sustainability Plan, and 2024-26 Budget.
CEQA REVIEW
The proposed code amendments are not subject to environmental review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and section 15060(c)(3) (the activity is not a "project" as defined in Section 15378). CEQA Guidelines section 15378(b)(2) and (5) exclude "[c]ontinuing administrative ... activities" and "administrative activities of governments that will not result in direct or indirect physical changes to the environment" from its definition of "project." In the absence of any pending application for any cannabis storefront retailer, any specific environmental effects would be speculative. The environmental effects of prospective future cannabis storefront retailers will be evaluated on a project-by-project basis by the City during application and permitting processes.
Even if the code amendments were a "project" (as that term is defined in CEQA), they would be exempt from environmental review under CEQA Guidelines Section 15183(a) because they are consistent with the development density established by existing zoning and general plan policies for which an Environmental Impact Report (EIR) was certified. The code amendments would also be exempt from environmental review under CEQA Guidelines Section 1506l(b)(3)'s "general rule" that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Here, it can be seen with certainty that there is no possibility that this item, in and of itself, will have a significant effect on the environment. On its own, this item merely establishes a regulatory framework; it will not directly result in any physical changes to the environment.
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact Nhi Atienza at natienza@claremontca.gov.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Senior Management Analyst
Attachments:
Draft Resolution Recommending City Council Approval
Draft Cannabis Regulatory Ordinance (For Reference Only)