Costa Mesa residents are raising concerns that cannabis shops could be oversaturating the city after planning commissioners approved another retailer, inching the city closer to its 35-store limit.
While the permit passed, discussions arose about the potential oversaturation of cannabis stores in the city and concerns about other issues that could result from more marijuana retailers in the area.
Now, city council members are expected to consider the new business at Tuesday’s city council meeting after nearby property owners filed an appeal to deny the approval.
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According to the appeal application , nearby property owners are concerned about traffic and parking issues, delivery logistics and problems with the design and operation that’s incompatible with the surrounding area.
Council members are slated to either uphold the planning commission’s approval for the new retailer and grant the permit or reverse the commissioners’ decision during Tuesday night’s meeting.
Costa Mesa has been grappling with cannabis shop limits since 2020, when it became one of the first Orange County cities to legalize cannabis sales.
For years, there was no cap , until the city council voted in 2024 to set a 35-store limit. Since then, the city has been cautious about avoiding oversaturation.
“Like city council has said, we’re going to go up to 35, so you have to go by what they’re saying, so it’s fine,” Commissioner Davis Martinez said during the Feb. 24 meeting.
Cannabis sales can provide cities with tax revenue to boost a host of quality-of-life issues.
In some Orange County cities, millions of dollars from cannabis taxes have been put towards public safety, youth programs and libraries.
[Read A Look at What Cannabis Taxes Fund in Orange County ]
“I will be supporting the motion because I don’t have a lot of alternatives,” Commissioner Jon Zich said at the planning commission meeting. “The residents voted; they wanted retail cannabis in the city, the city put together an ordinance (and) your application complies with that.”
Commissioners Johnny Rojas and Angely Andrade Vallarta both voted against the permit application.
Rojas had no comment on his vote.
Vallarta, however, said the city’s land use policy calls for the balance of residential, business and employment developments.
She emphasized how a section of the policy is meant to protect existing residential areas from “the encroachment of incompatible or potentially disruptive land uses and/or activities,” according to the city’s General Plan .
There are currently 26 approved permits for cannabis retailers and four that are in progress, Green Mart included, according to the staff presentation. Of these, 12 storefronts are currently open.
This adds up to 30 potential permits for cannabis stores out of the city’s maximum allowed amount of 35.
The new project application was filed by Keith Scheinberg on behalf of RDK Group Holdings, LLC.
“We understand the importance of responsible cannabis consumption and are dedicated to setting a high standard for other operators in the city,” the application letter states. “By offering a professionally run dispensary, we aim to be a reliable cannabis retailer that prioritizes the safety and well-being of our customers and the broader community.”
The project zone was previously occupied by a barbecue equipment distributor, but it is no longer in use. Green Mart would revamp the building and surrounding areas to build its cannabis storefront and delivery services, according to the project report .
Neighboring businesses include other retail stores, such as carpet and flooring, dog grooming, coffee shop, hair salon, cupcakes and massage services. There are also business and medical offices, car dealerships, residences and another cannabis store in the area.
During his presentation at the Feb. 24 meeting, Scheinberg told the commissioners that he presented all residents and businesses within a 500-foot radius with a detailed notification packet.
He also met with some of these neighbors, and he said that the response was “overwhelmingly positive” with no issues brought up.
Jill Welton, a director of leasing and property management for Flinn West, which owns buildings surrounding the cannabis store location, pointed out that there are several other similar businesses nearby.
“There is a huge cannabis retail store directly across the street from this location, not to mention three or four more located within a quarter of a mile of this proposed location,” she said during the meeting. “Are there not enough of these in a small area?”
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