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Three of the four businesses that won the city lottery and were allowed to open marijuana shops in Encinitas in 2022 have received state permits.
And one of them is nearing completion of construction, Evan Jedinak, the city’s senior planning officer, told the City Council Wednesday.
After his update, City Council members voted unanimously to extend the city’s contract with a consulting firm that manages the cannabis business landscape. HdL Companies, a La Brea-based company that assists cities in various states with marijuana business compliance issues, will continue its contract with Encinitas through June 30, 2025.
Encinitas voters approved a citizen-initiated ballot measure in 2020 that allowed four cannabis retailers and cultivation, manufacturing and distribution operations, subject to certain regulations and restrictions.
The new total cost of the multi-year consulting agreement is expected to be less than $648,400, an increase of $79,500 from the previous arrangement. The move was made to early 2022 after the city received 207 applications for the marijuana business lottery. The number of participants was significantly higher than the 25 people originally expected. City Councilman Bruce Ehlers on Wednesday pointed to the high cost of consulting work and emphasized that all costs associated with cannabis businesses in the city would be borne by the businesses themselves through license fees and sales taxes.
“We have already made progress,” he said, noting that Encinitas has collected $1.35 million in fees from more than 200 applicants who entered the city’s lottery to win one of four business permits. It’s starting,” he said.
The four lottery winners were:
- The Cake House is located at 583 South Coast Highway. City officials said Wednesday this is the closest they are to opening day. The necessary state permits have been obtained and construction work is nearly complete.
- ECR Encinitas4 LLC, 211 North El Camino Real. We obtained a state license and began construction work.
- STIIZY, located at 1030 North Coast Highway. Completed city building plan check. Construction work is “imminent,” but the project has not yet been approved by the state, city officials said.
- Siesta Life Encinitas LLC, 1038 South Coast Highway. Architectural plan review is underway and state permits have been obtained.
City Council members also agreed Wednesday to begin a process that would eventually allow one medical marijuana delivery-only business to open in either the city’s business park or light industrial zone. A new state law that took effect Jan. 1 requires cities to license at least one medical marijuana delivery company, city officials said. City Council member Joy Lindes said she would like to meet the law’s requirements, but only allow one delivery business. Other members of the council agreed.
In other action Wednesday, the council approved:
- An agreement with Retread Incorporated, which operates the Buena Creek Navigation Center, a facility that provides temporary housing and social services to homeless adults. Under the agreement with the city of Vista, Encinitas will receive 25 percent of the beds at the soon-to-open facility and Vista will receive 75 percent. The proposed site includes four buildings, one with 12 beds reserved for use in Encinitas, and South Santa Fe Avenue just outside the Vista city limits. It is located in
- Changes to the city’s playground usage policy. It includes creating a three-strike disciplinary system when stadium lessors violate the city’s stadium use policy by failing to turn off stadium lights or forgetting to relock access gates.
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