The application period for commercial cannabis operations opened July 1 in the city of San Luis Obispo. This means a third cannabis store could open within the city.

“The city does have a three-permit cap that applies only to retail storefronts,” said Ivana Gomez, the San Luis Obispo cannabis business coordinator.

Currently, two of the three permits are already in use by Megan’s Organic Market and SLO Cal Roots.

“As a local operator here, we’re all SLO Cal Roots thrives off competitions, so we’re not necessarily afraid of that,” said Austen Connella, the owner of SLO CAL ROOTS. “But the industry overall has been struggling.”

“It’s not the most ideal timing since we’re in a statewide industry downturn right now,” said Megan Souza, the owner of Megan’s Organic Market.

The city is accepting applications through July 31, and if a permit is issued, there are rules on where it can be located.

“There are requirements for retail store fronts, including land use and operational requirements,” said Gomez. “So land use-wise, retail storefronts are required to be in retail commercial zones or service commercial zones, as well as are required to be located within what we call cannabis business overlay zones, which are designated areas in the city where all cannabis businesses are located.”

The two current cannabis dispensaries in the city are working on getting an amendment to their current permits that will allow deliveries, to help them compete with other dispensaries across the Central Coast.

“We’re hoping to launch in just a matter of weeks, actually,” said Souza, “We’re so excited to be able to make it more convenient for our customers who live here in SLO but also better serve our customers who live outside the SLO.”

During this application period, applications are also being accepted for cultivation, delivery-only retail, manufacturing, testing labs, and distribution.

You can find more information on the city’s website.