The Arcata City Council moved to reduce the existing cap on licenses granted for local cannabis businesses during this week’s regular meeting.
An amendment to the city’s commercial cannabis retailer permit regulations unanimously approved by all four council members brought down the originally issued limit of 15 permits granted by city down to 10.
At the time of the meeting, the city’s planning commission had granted a total of 10 permits. However, only six businesses holding permits from the planning commission, all dispensaries, currently do business in Arcata. Three of the non-operational dispensaries are still in the process of securing other local and state permits, while the other inoperant permit holder has not begun to file for local or state permits. To open up shop in Arcata, a prospective cannabis business needs approval from the planning commission, a commercial cannabis activity permit from the city manager’s office and a state license from the department of cannabis control.
The goal of the original cap of 15 was to prevent local businesses being displaced during a time of highly speculative rushes to market while also allowing market forces to determine a limit on retailers of this type.
“We didn’t want to really get