NATIONAL CITY, Calif. — Sessions by the Bay, a two-story cannabis lounge and dispensary in National City, celebrates its one-year anniversary on Monday while establishing itself as a unique destination that draws visitors from across the globe.

The venue, the first and only cannabis lounge in San Diego County, has attracted an international clientele during its inaugural year. 

“There’s not anywhere else where you can purchase cannabis and consume on site, so we’re getting people from Europe, from Asian countries, from South America, people from all over the country that have never seen anything like this before,” CEO & Cofounder of Sessions by the Bay, Alex Ayon, said.

Ayon expressed that it’s more than what they anticipated during the business’s first year, with the community being appreciative of having a space like this. 

National City projects substantial economic benefits from cannabis-related business. The city told CBS 8 that the initial revenue projections anticipated approximately $500,000 annually, and they note that current data indicates revenues are tracking in line with those early projections. This figure encompasses revenue generated by multiple dispensaries, not solely Sessions by the Bay.

The cannabis industry has delivered significant financial benefits to National City’s municipal services. 

“This has been an asset to the city, this has brought in, this and cannabis have brought in about half a million revenue to the city so that’s important because that’s our police, that’s our fire that goes to our regular fund but we can’t over rely on cannabis or any industry there’s a lot that we’re learning now that we’re experimenting as a city with this,” said National City Councilmember Marcus Bush, who backed the project years ago.

The city told CBS 8 the city has not experienced any significant issues or adverse impacts related to the operation of Sessions by the Bay. They note that the business has operated in compliance with local regulations and has worked collaboratively with the City.

“The City of National City remains committed to fostering responsible economic development while ensuring the safety and well-being of our community,” Mayor Ron Morrison said in an email to CBS 8. 

“Since opening, Sessions by the Bay has operated in compliance with local regulations and has been a cooperative partner. We will continue to monitor operations closely while supporting businesses that contribute positively to our local economy.

California’s cannabis lounges remain limited due to complex regulations and stringent approval processes. Only approximately 32 cannabis lounges operate statewide, according to Jackie Bryant, a journalist and editor at Leaf Magazine and professor at San Diego State University. 

“The laws are very tricky, and it’s very hard to get legal cannabis lounges passed in individual municipalities, so I think that there is a bright future, but policy needs to catch up with what the public wants and lived experience,” Bryant said. 

She attributes National City’s strong cannabis tax performance to competitive pricing advantages over neighboring jurisdictions.

“And part of the reason National City’s taxes [are] doing so well is because the City of San Diego just raised its tax to 10% so there’s a tax arbitrage that I think people if you live close to the San Diego-National City border and your price conscious at all your going to buy your weed in National City,” said Jackie Bryant.

Ayon says they’d like to open more locations, but notes it depends on the cities that are ready for it. As regulations evolve, he says they’ll be looking to see where they can take this model and apply it somewhere else while still catering to their clientele in National City.