Title
Extension of the Opportunity to Apply for and Operate a Storefront Cannabis Dispensary for the Cannabis Opportunity Reinvestment and Equity (CORE) Program
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FileID
File ID: 2026-00585
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Location
Location: Citywide
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Recommendation
Recommendation: Review and provide direction regarding extending the opportunity to apply for and operate a storefront cannabis dispensary (the “opportunity”) from the 2021 Request for Qualifications (RFQ) Process for the CORE Program, which expires on April 1, 2026, by either: 1) taking no action and allowing the opportunity to expire, giving the next highest-scoring RFQ participant the opportunity; or 2) adopt a Resolution: a) extending the opportunity by one year for a new expiration date of April 1, 2027; and b) extending the opportunity for any new applicant from five to six years.
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Contact
Contact: Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org, Department of Finance; Al Romero-Gibu, Cannabis Manager, (916) 808-4772, aromerogibu@cityofsacramento.org; Fiona Mattson, Program Manager, (916) 808-8925, fmattson@cityofsacramento.org; Office of Cannabis Management
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Presenter
Presenter: Al Romero-Gibu, Cannabis Manager, (916) 808-4772, aromerogibu@cityofsacramento.org, Office of Cannabis Management
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - Resolution No. 2020-0338
4-Exhibit B - Resolution No. 2025-0067
5-Resolution No. 2025-0067
6-Ordinance No. 2025-0008
7-Ordinance No. 2020-0035
8-Resolution No. 2020-0338
9-Presentation
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Description/Analysis
IssueDetail
Issue Detail: On March 25, 2025, Council granted three of the highest-scoring participants (awardees) for the 2021 CORE Request for Qualifications (RFQ) with an additional one-year extension to apply for and operate a storefront cannabis dispensary (the opportunity), namely, April 1, 2026. Council also gave any new applicant five years to apply for the opportunity (Attachment 5). Since then, two of the three awardees have become operational.
The remaining awardee has requested an additional one-year extension which can only be granted by Council action. An additional extension would further delay the opportunity for the next highest-scoring CORE Program participant (participant) on the RFQ list. Those next on the RFQ list have been contacting staff in anticipation of the availability of a permit opportunity. If Council does wish to grant the extension for this one opportunity, staff recommends giving all new applicants (including those that are currently in the process of obtaining a permit) with the same amount of time, six years.
Brief History on the CORE Storefront Dispensary Permit Process
In 2021, the City conducted a RFQ Process to offer the opportunity to apply for and operate 10 new storefront cannabis dispensary (storefront) business permits to the highest-scoring CORE Program participants (participants). The 10 top-scoring participants (awardees) were given three years to apply for and operate a storefront. The remaining applicants for the RFQ were placed on a list from the highest to lowest scoring participant. When a permit becomes available to apply for, the next highest-scoring participant on the list is offered the opportunity. The City’s goal, as adopted by Council, is having 50% of all cannabis businesses in Sacramento be majority-CORE owned.
Originally, the top 10 awardees were given until April 1, 2024 to become operational. Since that time, Council has approved two extensions, resulting in a total of five years for participants to become operational, April 1, 2026.
Additional Storefront Permit Opportunities
Since then, four new storefront permit opportunities have become available. First, a permit opportunity became available when an RFQ awardee surrendered their opportunity. The City offered the opportunity to apply for this permit to the 11th highest-scoring participant. This participant is now operational.
Second, a permit opportunity became available when a non-CORE storefront closed. The City offered the opportunity to apply for this permit to the 12th highest-scoring participant. This participant has a deadline of August 29, 2029 to become operational or surrender their opportunity.
In addition, on March 25, 2025, Council directed staff to return with an ordinance to increase the total number of storefront dispensaries from 40 to 43 with the additional opportunities reserved for CORE participants (Attachment 6). The additional three permit opportunities were offered to the next highest-scoring participants and those participants have until May 23, 2030, to become operational.
Current Status of Storefront Permits for CORE
There are currently 14 storefront opportunities that have been afforded to CORE participants:
• Nine are currently operational.
• One has a deadline of April 1, 2026, to become operational or surrender their permit opportunity.
• One has a deadline of August 29, 2029, to become operational or surrender their permit opportunity.
• Three have a deadline of May 23, 2030, to become operational or surrender their permit opportunity.
Status of Permit Process for April 1, 2026, Deadline
On October 14, 2025, Office of Cannabis Management (OCM) reported to Council that the remaining awardee (subject to the April 1, 2026 deadline) experienced significant damage to their proposed facility due to a fire in 2023. The participant subsequently notified OCM that they had secured a lease at a new location in September 2025. However, the Planning Division later informed the participant that the new site does not have zoning entitlement for a cannabis dispensary.
On December 18, 2025, the participant contacted OCM indicating their intent to locate at 135 Main Avenue in District 1. OCM met with the participant to assist with the Business Operating Permit (BOP) process. As of January 7, 2026, the participant reported that they are in the process of applying for a minor modification to an existing conditional use permit for a storefront, a BOP, and a license from the California Department of Cannabis Control (DCC). OCM has not received a BOP application from the participant.
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PolicyConsiderations
Policy Considerations: The deadline associated with the RFQ permit opportunities was included to provide those farther down the list an opportunity if the original awardees could not become operational. The intent of the RFQ process was to ensure that permits are issued to businesses that were most ready to successfully operate within three years of the award. Two extensions have already been granted, resulting in five years to become operational.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The action is an administrative action that would not result in direct or indirect physical changes in the environment and is not a project as defined in CEQA. (CEQA Guidelines sections 15378(b)(4),15060(c)(3)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Council action is required to provide additional time to apply for an operate a store front permit for one of the original awardees from the 2021 RFQ. Staff seeks direction from Council regarding the options outlined above.
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FinancialConsiderations
Financial Considerations: Additional operational cannabis storefronts will generate additional cannabis business operations tax which supports the General Fund and Children’s Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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Background
Background: Storefront dispensaries that were open prior to the development of regulations and who registered with the City in 2009 and 2010 and then applied for and successfully completed a two-part application process between roughly 2011 and 2015 were issued storefront dispensary permits. Changing state laws and federal directives, and the uncertainty created by these accounted for the length of time needed for this application process. The 30 who made it through that process became the only storefronts that were permitted.
In August 2018, the City Council created the CORE Program to address the impacts of disparate enforcement of cannabis offenses in Sacramento by creating resources to reduce barriers to entry into the regulated cannabis industry for the impacted community members. The CORE Guidelines express a goal of having 50% of all cannabis businesses in Sacramento be majority-CORE owned.
On October 13, 2020, the Council adopted an ordinance (Ordinance No. 2020-0035) amending Title 5 to add 10 new storefront dispensary permits through a RFQ Process (Attachment 7). The RFQ process is a competitive procedure wherein CORE participants were required to submit a Statement of Qualification (SOQ). A panel of non-staff scorers with expertise in business finance, cannabis equity, and operating an equity storefront assessed and scored the SOQs using a predefined scoring rubric.
The Council also adopted a resolution (Resolution No. 2020-0338) establishing the RFQ Process for issuing storefront cannabis dispensary permits, which required the 10 CORE storefront dispensary permit holders to have at least 51% of the ownership interest in the storefront cannabis dispensary and receive at least 51% of the storefront cannabis dispensary’s profits for a period of ten years from the issuance of the permit (Attachment 8).
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