(Image Credit: IMAGN) Lower-tier shelf flower is seen at Mango Cannabis, a dispensary store at 1051 McNutt Road, Sunland Park, New Mexico, on Wednesday, Jan. 29, 2025.
Oceanside, California – In a move reflecting shifting attitudes and economic pragmatism, the Oceanside City Council has taken a major step toward allowing retail cannabis storefronts within city limits. By a narrow 3-2 vote, the council approved the introduction of an ordinance that would permit up to four licensed cannabis retailers, aiming to finalize the policy by August.
For Oceanside, a city that currently only permits cannabis delivery, this marks a significant shift in approach — one motivated not just by evolving social norms but by fiscal responsibility. Neighboring Vista, which opened its doors to retail cannabis years ago, now generates an estimated $7 million annually in cannabis tax revenue. Oceanside’s staff projections suggest even a modest start with four stores could bring in $1.3 million in new revenue.
Keeping those tax dollars local is a central part of the city’s argument. Residents who already travel to other cities to purchase legal cannabis represent a revenue stream that, until now, has bypassed Oceanside entirely. Legalizing retail operations, city officials say, allows Oceanside to regulate, benefit from, and reinvest the funds in ways that align with community priorities.
City Manager Jonathon Borrego said the expected revenue will be directed toward programs designed to educate and support youth — not only discouraging underage drug use but strengthening existing youth development initiatives. This use of cannabis revenue to support public programs is a model already seen across California, where cities have used similar funds to bolster public health, housing assistance, and education.
Legal cannabis, when properly regulated, can offer more than revenue. It displaces illegal markets, brings transparency to sales, and ensures consumer protections through product testing and tracking. Retail storefronts also create jobs, increase foot traffic for nearby businesses, and contribute to local economic growth.
Applicants vying for one of Oceanside’s storefront licenses will go through a rigorous review process that includes criminal background checks, detailed security plans, and multiple interviews with both the city and police. Candidates must meet a high bar — at least 90% on the city’s evaluation rubric — to qualify for consideration.
Despite broad support, questions remain over how close these stores can be to schools and residential zones. The city has proposed a 1,000-foot buffer from high schools and junior high campuses. Final zoning regulations are expected to be decided alongside the full licensing framework later this summer.
If the ordinance is approved, Oceanside will join a growing list of California cities that have embraced a tightly regulated, community-focused approach to retail cannabis — one that aims not just to legalize, but to legitimize and localize its benefits.
