ITEM NO. 5
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Sheryl Garcia, Administrative Services Director/City Clerk |
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| DATE: |
03/11/2026 |
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| SUBJECT: | Second Reading and Adoption of Ordinance No. 271 - An Ordinance of the City Council of the City of Canyon Lake, California, an Amendment to the Canyon Lake Municipal Code, Chapter 4.20: Commercial Cannabis Businesses, Section 4.20.250, Location And Design of Cannabis Businesses
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Recommendation:
(1) Open the public hearing and take public testimony; and (2) adopt Ordinance No. 271 - An Ordinance of the City Council of the City of Canyon Lake, California, an Amendment to the Canyon Lake Municipal Code, Chapter 4.20: Commercial Cannabis Businesses, Section 4.20.250, Location And Design of Cannabis Businesses.
Background/Analysis:
On October 6, 2021, the City Council adopted Ordinance No. 215 regulating Commercial Cannabis Businesses. The Ordinance was subsequently amended several times (Ordinances Nos. 246 and 269) in response to a number of items, including the number of businesses to be permitted, their security measures, operating procedures, and the processing of subsequent approvals.
The original ordinance specified cannabis businesses would be conducted within the City’s C-1 General Commercial Zone. At one time the C-1 Zone included all three of the City’s commercial areas. In June 2022, the City rezoned the Towne Center to Mixed Use to reflect the General Plan Land Use designation of Mixed Use and implement the Towne Center Specific Plan.
At the February 17, 2026, City Council meeting, the City Council adopted Urgency Ordinance No. 270 and approved the first reading of Ordinance No. 271, amending the Chapter 4.20 of the Canyon Lake Municipal Code to clarify the intent of the City's Cannabis Ordinance to permit cannabis uses in the City’s commercially zoned districts.
The Mixed Use Zone allows all uses permitted within the C-1 Zone. However, the Cannabis Ordinance specifically restricts cannabis businesses to only the C-1 Zone. To reflect the City’s original intent to permit cannabis uses within all commercial areas of the City and properly reflect the applicable zoning categories that now exist, the Cannabis Ordinance is proposed to be amended to add the Mixed Use Zone as provided below (underlined represents additions, strikethrough deletions):
The original ordinance specified cannabis businesses would be conducted within the City’s C-1 General Commercial Zone. At one time the C-1 Zone included all three of the City’s commercial areas. In June 2022, the City rezoned the Towne Center to Mixed Use to reflect the General Plan Land Use designation of Mixed Use and implement the Towne Center Specific Plan.
At the February 17, 2026, City Council meeting, the City Council adopted Urgency Ordinance No. 270 and approved the first reading of Ordinance No. 271, amending the Chapter 4.20 of the Canyon Lake Municipal Code to clarify the intent of the City's Cannabis Ordinance to permit cannabis uses in the City’s commercially zoned districts.
The Mixed Use Zone allows all uses permitted within the C-1 Zone. However, the Cannabis Ordinance specifically restricts cannabis businesses to only the C-1 Zone. To reflect the City’s original intent to permit cannabis uses within all commercial areas of the City and properly reflect the applicable zoning categories that now exist, the Cannabis Ordinance is proposed to be amended to add the Mixed Use Zone as provided below (underlined represents additions, strikethrough deletions):
Sec. 4.20.250. Location and Design of Cannabis Businesses.
Cannabis businesses permitted to engage in Retail subject to the following zoning and locational requirements:
(a) Retail must be in the C-1 General Commercial Zone or Mixed Use Zones and must meet all of the requirements for development in these zones. The cannabis business must also meet all of the following distance requirements:
Cannabis businesses permitted to engage in Retail subject to the following zoning and locational requirements:
(a) Retail must be in the C-1 General Commercial Zone or Mixed Use Zones and must meet all of the requirements for development in these zones. The cannabis business must also meet all of the following distance requirements:
The required public hearing notice was published in the Friday Flyer on February 13, 2026.
- Fiscal Impact Yes/No:
- No