Council opts not to move forward on cannabis retail

By Michael Chaldu · Mon Oct 20 2025

City code on marijuana dispensaries to remain unchanged after long discussion at Tuesday’s meeting

ATASCADERO — In its latest regular meeting, on Tuesday, Oct. 14, the Atascadero City Council held a public hearing on the possibility of cannabis dispensaries opening within the city, with staff recommending the council give it direction to drafter an amended code allowing retail stores selling cannabis products to open in the city limits.

However, after a discussion that lasted about 2 hours and 47 minutes, the City Council, by a 3-2 vote, opted not to go forward with that directive.

The hearing, titled Cannabis Land Use Update Discussion, was presented by Community Development Director Phil Dunsmore, who at the start estimated that one or more cannabis stores in the city could bring up to $500,000 in sales tax revenue.

Dunsmore said the current cannabis ordinance, adopted in 2021, can be found in Title 9, Part 17 of the city code. It allows for out-of-town deliveries and testing facilities, but not cannabis stores. He added that a 4 percent tax on cannabis, passed in 2018 and taken effect in 2019, raises an average of $32,000 a year.

Any cannabis stores would be limited to specific zones, and would be required to be 600 feet from schools, daycare facilities, parks, and youth centers.

He added that in San Luis Obispo County, SLO, Grover Beach, and Morro Bay also allow cannabis stores in their city limits and have not reported increases in crime.

In addition to the tax revenue, a potential ordinance allowing cannabis retail would necessitate an increase in security personnel and plans. “Security plans are effective in these places,” Dunsmore said. “They have cameras, secured windows, alarm systems, guards, locked vaults. Local police departments say they’re very effective.”

Mayor Pro Tem Mark Dariz asked about the staffing required and how much it would cost, and the subject was later broached by Atascadero Police Chief Daniel Suttles,who outlined how his officers would be used in the event of cannabis stores opening. “We have regulations businesses have to abide by, and that requires inspections, background checks, all that will fall on the police department,” he said. “It could be outsourced, other cities have, but we’d probably take care of it ourselves.” Lewis said costs for extra security could run “into six figures.”

Public Comment on the item drew 13 speakers, with the majority of them (11) supporting the proposal to varying degrees.

Brett Boyle, who called himself a Central Coast resident and former employee at Atascadero State Hospital said he has suffered from PTSD from that job, and that marijuana helps alleviate his feelings of anxiety. He said he usually goes to San Luis Obispo, more specifically Megan’s Organic Market, but would appreciate having someplace closer.

“I would save time and gas, and that’s good for those of us in North County,” he said. “Why go to the store? I want to see selection, and the delivery fee/tip is expensive. I urge you to approve this project.”

Ron Overacker, president of the Atascadero Police Association, reiterated the contention by others that cannabis stores would not increase crime.

“Others have allowed sales, and have not seen an increase in crime,” he said. “For every DUI I’ve stopped for cannabis, I’ve had 50 for alcohol.”

However, there were two who came out opposing the legalization of cannabis stories, citing both the concept that marijuana is a gateway to harder drugs, and the danger of making pot more accessible to teens and pre-teens.

One of them was Donn Clickard, who spent 50 years with the Atascadero Unified School District as a teacher and is involved in LIGHTHOUSE Atascadero, the nonprofit anti-drug group. He cited tragedies in the past.

“I worked with three kids — Ricky, Jake, and Jeff — in my time with the Greyhound Foundation, who OD’d, and we switched the foundation’s focus on mitigating drug abuse,” Clickard said. “I oppose this because we’ve worked so hard to keep this from happening to kids. We should limit opportunities as we can.”

When the item went back to council, Mayor Charles Bourbeau told the council that he had visited the cannabis stores in Morro Bay and was impressed by the cleanliness, efficiency, and lack of trouble at the establishments.

“I can’t get beyond wanting to treat this like any other business,” Bourbeau said. “I can’t see passing up chance at more revenue over concerns that I think are not borne out by experience of other cities around us. It confuses me, to be honest.”

Councilmember Susan Funk sided with Bourbeau on considering the businesses, but the other three on the council — Dariz, Seth Peek, and Heather Newsom — opposed the idea, citing the “gateway drug” argument, with Dariz in particular becoming emotional when he told of loved ones of his who fell prey to harder drugs.

“I believe it’s a gateway drug; most of the people I know who were on hard drugs started with marijuana. People found in a restroom with a needle in their arm … like my brother,” Dariz said, momentarily coming to tears. “With these things in mind, this is my personal issue with the drug, I can’t be a part of making access easier. I’m pro-business, but there’s better ways to go about it.”

When Peek expressed that the issue was not one that only the five people on the council should be making, Bourbeau and Funk asked City Manager Jim Lewis about costs and the process of putting an ordinance on the ballot. However, Newsom spoke out against that idea.

“With just this item, the staff did a lot of work, and they are busy otherwise,” she said. “I don’t think we want to give them a lot of work to introduce a topic we aren’t on a consensus on.”

Ultimately, Newsom made the motion not to go forward with the retail cannabis issue, with Peek seconding, and the motion passed 3-2, with Bourbeau and Funk dissenting.

The City Council will meet next on Tuesday, Oct. 27, at 6 p.m.