PREPARED BY: Mel Mackson DATE OF MEETING: 01/27/2026
SUBJECT:
TITLE
CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW A RETAIL CANNABIS USE AT AN EXISTING COMMERCIAL BUILDING LOCATED IN THE MIXED USE CENTER NORTH DISTRICT IN THE SAN PABLO AVENUE SPECIFIC PLAN (SP-2) AT 14501 SAN PABLO AVENUE, (APN: 413-352-017).
Label
Location: 14501 San Pablo Avenue, formerly a 7-Eleven Convenience Store
APN: 413-352-017
PLAN No: PLAN2509-0004
Zoning: SP2- Mixed Use Center North
CEQA: Exempt under Section 15301. Existing Facilities
Owner: San Pablo Economic Development Corporation
Applicant: Embarc
Staff Contact: Mel Mackson, Associate Planner
Recommendation
Conduct public hearing; adopt Resolution
Body
REQUESTED ACTION
A request for approval of a Conditional Use Permit to allow a new Retail Cannabis Use in an existing multi-suite commercial building located at 14501 San Pablo Avenue (APN: 413-352-017). The Parcel is designated Mixed Use Center North in the San Pablo General Plan and it is zoned Mixed Use Center North in the San Pablo Avenue Specific Plan. It has been determined that the proposed project is exempt from CEQA under Section 15301, Existing Facilities, Class 1.
The hearing for this application was opened during the October 28, 2025 Planning Commission meeting and continued at the request of the applicant. The November 25, 2025 meeting was cancelled and the item was continued to December 9, 2025. At the December 9 meeting, the item was continued to the January 27, 2026 meeting.
Surrounding Zoning and Land Uses:
The project site is currently occupied by a commercial pad building with four suites. The suite proposed for the cannabis use was formerly occupied by a 7-Eleven convenience store. The other occupied suites in the building include a nail salon (Modern Nails) and a karate studio (Ed Hernandez Karate). There is also another smaller commercial pad building occupied by Pizza Hut. The site is one of four parcels on a triangular-shaped lot that is surrounded by San Pablo Avenue, Broadway Avenue, and Rumrill Boulevard. Other businesses occupying the adjacent parcels include A Plus Smog and Bargain City. On another portion of the lot that is currently paved with no structures, a four-suite commercial building has recently received Planning Entitlements. Surrounding Zoning and Land Uses are as follows:
North: SP2 - Mixed Use Center North; retail and minor auto repair/smog check; paved lot with no structures (planning entitlements obtained for an additional 4-suite commercial building)
South: SP2 - Residential Mixed-Use; donut shop, fast service restaurant (McDonalds)
East: SP2 - High Density Residential; Church
SP2 - Mixed Use Center North; Bakery/Deli, laundromat, retail
West: I - Institutional; Church
ENVIRONMENTAL REVIEW
The proposed use is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15301, Existing Facilities. Section 15301 exempts permitting or minor alteration of existing structures where there is little or no expansion of use. The site is currently occupied by other retail businesses and the suite to be occupied by Embarc was previously occupied by a similar retail use. There is no proposed expansion to the building or facility and the minor alterations and tenant improvements imposed are expressly exempted pursuant to Section 15301(a).
PUBLIC HEARING NOTICE
Notices regarding the December 9th public hearing were mailed to owners of properties within a 300-foot radius of the site on November 24, 2025. A Public Hearing Notice was published in the West County Times newspaper (West Contra Costa edition of the East Bay Times) on Saturday, October 18, 2025. The Planning Commission continued the hearing at their December 9th meeting and the public hearing remained opened for the January 27th meeting.
BACKGROUND
In order to strengthen the city’s economic base, on July 15, 2024, the City Council adopted Resolution 2024-105 placing a measure seeking to impose a cannabis business license tax on the ballot for the General Municipal Election. During the November 5, 2024, General Municipal Election, the City of San Pablo voters passed Measure M, which imposed a cannabis business license tax. On January 28, 2025, the Planning Commission approved Resolution PC25-01, recommending that the City Council approve revisions to existing regulations to establish land use standards applicable to certain permitted commercial cannabis businesses in the City. These new standards allowed for the establishment of the cannabis retail business use in the city. The ordinance containing these changes was introduced to the City Council on February 18, 2025, and adopted on March 3, 2025.
After establishing the standards for regulating the commercial cannabis business use in the City, the City Council adopted Resolution 2025-047 on April 21, 2025, authorizing the release of a Request for Qualifications (RFQ) process to select up to three (3) businesses to obtain Cannabis Operator Permits. The Economic Development and Housing division released the RFQ on April 22, 2025, inviting qualifying firms, partnerships, corporations, associations, persons or professional organizations to respond to the RFQ to be eligible to apply for such a Cannabis Operator Permits in the City of San Pablo. After receiving six (6) RFQ responses, The City Council approved Resolution 2025-114 on September 2, 2025, establishing a ranked eligibility list pursuant to the RFQ, and the top three (3) ranked applicants were then invited to proceed with a formal Cannabis Operator Permit application.
The applicant for this Conditional Use Permit, Embarc, is one of the top three ranked applicants for a Cannabis Operator Permit. On September 18, 2025, Embarc submitted a formal Cannabis Operator Permit application, which was approved on October 23, 2025. The Operator Permit was reviewed by the Planning Division, the Police Department and the City Attorney and was approved by the Zoning Administrator pursuant to Section 17.62.130(H)(9) of the Zoning Ordinance. The Operator Permit contains conditions of approval and performance standards. An overview of the Operator Permit regulations and performance standards is included in the Zoning Conformance section below. The applicant must also obtain an approved Conditional Use Permit before starting operations of the retail cannabis use.
The public hearing was noticed for October 28, 2025. The applicant requested that the hearing be continued in order to have more time to review the conditions of approval. At the October 28 Planning Commission meeting, 11 speakers gave public comment about the project, all in opposition. All speakers were either members or clergy of local churches near the project site. Their concerns included safety, the proximity of the site to their churches, as well as residences and schools in the neighborhood. They were also concerned about the influence a cannabis retail business could have on the local youth. After hearing these comments, the Planning Commission voted to continue the hearing, and the motion passed.
The item was continued to the Planning Commission meeting on November 25, 2025. This meeting was cancelled and a special meeting was held on December 9, 2025. Sixteen (16) speakers gave public comment about the project, all in opposition. Their concerns echoed the public comment that was given at the October 28 meeting. The item was continued again, at the applicant’s request, to the January 27, 2026 meeting.
SITE LOCATION AND PROJECT DESCRIPTION
The subject site is located at 14501 San Pablo Avenue in a small shopping plaza at the corner of Broadway Avenue and San Pablo Avenue. The plaza contains two commercial pad buildings, as shown on the site plan (attachment B). One building is occupied by a Pizza Hut, while the other building, constructed in 1983, contains four suites. Two of the four suites are currently occupied by a nail salon and a karate studio. The existing vacant suite, where the new use is proposed, is 2,120 square feet in size. This suite was previously occupied by 7-Eleven, and has been vacant since 2024.
The proposed business plan for this use includes utilizing the existing tenant space to conduct the retail sale of cannabis. The tenant space will undergo tenant improvements to retrofit the space to the needs of the new proposed use. The proposed floor plan includes a public entrance on the southeast side of the building, leading to a lobby with a security counter. Customers will be required to check-in when entering the building to ensure that all customers are verified by a sales specialist before entering the sales floor. The plans also show a small storage room accessible from the lobby. The lobby would lead to a retail area featuring a display counter and a cashier counter. Behind the counter would be a staff-only sales area, with a door leading to a break room. The break room would include a counter with a sink and a refrigerator. From the break room there would be a door to a secure product storage room, and another door leading to an intake area. The intake area would provide access to a vendor entrance along the southwest side of the building. It would also lead to single stall restroom, which would remain unchanged from what is existing, and an office. The office would have access to the vault/IT room. An exhibit of the proposed floor plan included in the application materials (Attachment B) is shown below:
Exhibit 1: Proposed floor plan
Exterior improvements would include new exterior lighting and business signage.
The proposed Retail Cannabis Business would be known as Embarc San Pablo. The applicant, Dustin Moore, has ownership of and/or operates 18 other Embarc locations in California. The applicant has submitted a business plan (Attachment B) detailing its proposed operations, including the security plan and community benefit programs. The proposed hours of operation would be from 8 a.m. to 10 p.m., seven days a week. The business expects to have a total of 16 full-time employees in year one and 21 employees by year five (see page 10, Attachment B). The cannabis retail business is also in the process of obtaining the required State license to operate. The cannabis retail business is required to obtain a Type 10 Storefront Retail with Delivery license with both Adult Use (A) and Medical (M) designations from the California Department of Cannabis Control (DCC). The business plan also states that Embarc only conducts business with licensed cultivators and manufacturers and sources their products from licensed distributors that operate within the scope of compliance with local and state regulations. The goods that they will offer for retail include the following: cannabis flower, pre-rolls, extract/concentrates, vaporizers, edibles, infused beverages, capsules/tablets/pills, tinctures, topicals, CBD dominant products, medicinal cannabis products, and non-cannabis goods such as branded merchandise and smoking accessories. All cannabis goods would be packaged and labeled in their final form and in compliance with State Law (see business plan included in Attachment B).
GENERAL PLAN CONFORMANCE
The site is designated as Mixed Use Center North in the General Plan. The proposed use is consistent with the following policies:
Land Use & Physical Design Policies:
LU-G-7 Recognize the importance of promoting mixed-use development within Priority Development Areas to the vitality and quality of life in San Pablo.
LU-G-8 Promote site sensitive design and pedestrian-oriented activities in mixed-use developments.
LU-I-25 Integrate a vibrant mix of residential and commercial uses and promote redevelopment within Priority Development Areas to revitalize San Pablo’s commercial corridors, support economic vitality, and foster new uses to serve the community.
LU-I-41 Ensure that noise, traffic, and other potential conflicts that may arise in a mix of commercial and residential uses are mitigated through sensitive site planning, building design, and/or appropriate operational measures.
Economic Development Policies:
ED-G-1 Review, assess, and respond to changing economic conditions.
ED-G-2 Pursue the Major Goals identified in the 2024 Economic Development Strategy, including the following:
• Expand economic opportunities for San Pablo’s resident workforce
• Revitalize and diversify San Pablo’s older commercial and industrial areas
• Promote expanded opportunities for home ownership
• Strengthen the City’s fiscal position
ED-I-1 Annually monitor economic trends and leading indicators to identify emerging industries and new market opportunities, so that City policies and strategies can be proactive and timed to market changes.
The proposed cannabis retail business would be responsive to these General Plan Land Use and Economic Development polices by establishing a new use in an existing commercial shopping site located in the Mixed Use Center North designation. This new use has been reviewed by the San Pablo Police Department to ensure that it incorporates a strong security plan that complies with the newly adopted Regulation of Cannabis Activity Ordinance. In addition, the cannabis retail business would be a new business type for San Pablo that would generate tax revenue for the city and respond to the Economic Development goals and policies of the General Plan.
SAN PABLO AVENUE SPECIFIC PLAN CONFORMANCE
The site falls within he San Pablo Avenue Specific Plan area, which was adopted in September of 2011 to provide a vision, goals, and implementation measure for creating a vibrant, accessible, and sustainable mixed-use corridor. The plan aims to revitalize areas along San Pablo Avenue with higher-intensity development to promote stronger economic activity, street life, and transit ridership, among other goals. On a broader scale, Bay Area Metro (Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) is also focusing on San Pablo Avenue as one of three regional corridors to implement their Plan Bay Area Sustainable Communities Strategy (see <https://www.planbayarea.org/> ). The corridor is designated as a Priority Development Area.
The subject site is within an opportunity site and focus area identified as the “Mission Plaza” area in the San Pablo Avenue Specific Plan. Opportunity sites are defined in the Plan as vacant or underutilized parcels that have the potential to undergo a land use or intensity change over a near- to long-term horizon. The Focus Areas of the Specific Plan have the greatest opportunities for development and illustrate the buildout opportunities in terms of scale and character. The land use (and zoning) designation for the site is shown as Mixed Use Center North. As identified in the San Pablo Avenue Specific Plan, this designation allows for a range of commercial uses with an emphasis on region-serving uses. The Specific Plan describes the Mission Plaza opportunity site as follows:
This 1.56-acre triangular-shaped block, located at the junction of San Pablo Avenue, Broadway Avenue, and Rumrill Boulevard, is highly visible and accessible, and is located just one block from Contra Costa College and the new College Center Shops development. About half of the block is owned by the San Pablo Redevelopment Agency.
The following guiding (G) and implementing (I) policies of the San Pablo Avenue Specific Plan are relevant to the proposed project:
Guiding Policy for Land Use:
2-G-1 Promote development of San Pablo Avenue as an attractive boulevard, lined with a diverse array of uses that promote vibrant street life, and maintain eyes on the street at all times.
2-G-3 Promote pedestrian- and transit-friendly development that enhances the public realm.
Guiding Policy for Urban Design and Building Development Standards:
4-4-I-11 Ensure that the San Pablo Avenue frontage of the block is lined with commercial space
4-I-12 Capitalize on the block’s narrow corners to maximize visibility of commercial spaces.
The proposed cannabis retail business would be responsive to these San Pablo Avenue Specific Plan policies by establishing a new type of use that would contribute to the diversity of uses along San Pablo Avenue. The proposed use would also activate the ground floor commercial space with visibility from both directions on San Pablo Avenue and Broadway Avenue. It would be compatible with both the other existing uses at the Mission Plaza area as well as with the new commercial building proposed at this general location.
ZONING CONFORMANCE
Section 17.54.030 of the Zoning Ordinance requires the use of Retail Sales, General, to have 1 parking space per 300 square feet of retail area. The proposed tenant space measures 2,120 square feet, which would require the business to provide seven (7) parking spaces. The site has 27 off-street parking spaces that are shared amongst all businesses at 14501 San Pablo Avenue. There are no concerns with parking availability in the proposed location as there is ample parking available to the customers of the proposed retailer.
Regulation of cannabis activity
Section 17.62.130 (Special Nonresidential Uses - Regulation of cannabis activity) of the Zoning Ordinance includes special provisions for new cannabis activity regarding location, distance, operator permit requirements and Use Permit Conditions.
The purpose of Section 17.62.130 is to impose regulatory requirements on personal cannabis cultivation and commercial cannabis uses authorized and licensed by the state of California pursuant to state law and specifically authorized by this section. This section imposes licensing and regulatory requirements on cannabis businesses in addition to any other business license and regulatory requirements imposed on cannabis businesses by applicable state law and by any other provision of the San Pablo Municipal Code. If a cannabis use is not specifically permitted by this section, it is not allowed to operate within the City.
As stated in this section of the Zoning Code, a maximum of three (3) cannabis retail businesses that are conditionally permitted and licensed pursuant to this section and state law are permitted to operate in the City of San Pablo. Cannabis retail business can be located in the following zoning districts:
NC- Neighborhood Commercial; CR- Regional Commercial; CMU- Commercial-Mixed Use; IMU- Industrial Mixed Use Districts; and within the San Pablo Avenue Specific Plan- Neighborhood Commercial, Regional Commercial, Mixed Use Center North, Mixed Use Center South, and Entertainment Overlay Districts, subject to a use permit approved by the Planning Commission.
Any cannabis retail business must maintain the following land use buffer distances and be located in the following areas:
a. At least seven hundred fifty feet away from any public or private kindergarten, elementary, middle, or junior high school.
b. At least one thousand two hundred fifty feet away from any public or private high school.
c. At least one thousand feet from any other another commercial cannabis business.
d. At least zero feet from any daycare center or youth center.
The distance shall be measured as a straight line, without regard to intervening structures or objects. Distances between cannabis retail businesses and public and private schools shall be measured from the closest property line of the property containing the school to the closest outside wall of the tenant spaces or, for single-occupancy structures, the closest outside wall of the structure containing the cannabis retail business. Distances between cannabis retail businesses shall be measured between the closest outside walls of the tenant spaces or, for single-occupancy structures, the closest outside wall of the structure containing the cannabis retail businesses.
The proposed cannabis retail operation by Embarc, meets the location and distance requirements per Section 17.62.130 and would be able to operate at this location, subject to approval of an Operator Permit and a Conditional Use Permit.
Operator Permit and Performance Standards
An operator permit shall be required for all cannabis retail businesses operating within the City of San Pablo. The Zoning Administrator shall be responsible for the administration and enforcement of operator permits, which shall be issued for a maximum term of three years. The Operator Permit is an extensive application that must include all of the application requirements set forth by Section 17.62.130(G). These application requirements include information regarding the ownership and management of the proposed business, description of the proposed site, conceptual elevations of the proposed building, identifying information for the owners and key employees, a full description of the proposed operation, proof of State license compliance, information regarding other local licenses, disclosure of litigation proceedings, a security plan, certificate of insurance, a community benefits and retail business plan, signatures of applicants and property owners, identification of any hazardous materials, pro forma, and fees. The Zoning Administrator shall have the authority to impose conditions on Operator Permits deemed necessary to maintain the health, safety, and general welfare of the public.
Upon issuance of an Operator Permit, an applicant has nine months to obtain a conditional use permit pursuant to San Pablo Municipal Code Section 17.20.040 <https://ecode360.com/45741886>. If an applicant fails to obtain a conditional use permit or any other necessary state cannabis license or approval within nine months of being granted an operator permit, said Operator Permit shall expire and the city may select another qualified applicant
Section 17.62.130(I) also contains a list of Operator Permit performance standards. These performance standards apply to all cannabis retail businesses and failure to comply with them shall be grounds for suspension or revocation of the permit. These performance standards include limits on hours of operation, which cannot exceed eight a.m. or after ten p.m. on any day of the week, alarm and video surveillance requirements, insurance coverage and ledger requirements, city inspections, restrictions for on-site consumption and deliveries, notification requirements and requests for regular meetings with city officials, among other requirements.
The applicant, Embarc, submitted an Operator Permit application on September 18, 2025, which included all of the information required by Section 17.62.130(G). The Operator Permit application was reviewed by the Planning Division, the Police Department, and the City Attorney and was approved on October 23, 2025 by the Zoning Administrator per Section17.62.130(H)(9) of the Zoning Ordinance. The Operator Permit approval is accompanied by the conditions of approval outlined by the performance standards. Compliance with these performance standards is required in addition to compliance with the conditions of approval set forth by the Conditional Use Permit.
CONDITIONAL USE PERMIT
In addition to the Operator Permit and Performance Standards, The San Pablo Zoning Ordinance Section 17.62.130(K) requires a Conditional Use Permit for cannabis storefront retail businesses. Through this process, the Planning Commission is given an opportunity to review the proposed use, impose conditions of approval, and set terms for revocation. In approving the Conditional Use Permit to allow the new cannabis retail use, Zoning Ordinance Section 17.20.040 requires the Planning Commission to make a finding that the establishment, maintenance, or operation of the use applied for will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, morals, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City.
In addition to the finding required by Section 17.20.040, the Planning Commission may deny, approve, or conditionally approve a Conditional Use Permit for a cannabis retail business upon making the following findings, pursuant to section 17.62,130(K)(3):
a) The proposed use will not cause impacts to the surrounding neighborhood related to noise, blight, criminal activity, parking, or traffic that are greater than any such impacts associated with a different commercial use;
The proposed cannabis retail business has obtained an Operator Permit which includes a security plan, surveillance cameras, and a business plan with approved hours of operation. Embarc has also submitted a site plan and operational plan that demonstrates that the proposed use is consistent with zoning development standards pertaining to traffic circulation and parking. With the proposed site plan and security measures in place, the proposed cannabis retail business will not cause impacts to the surrounding neighborhood that are greater than any impacts of a different commercial use.
b) The proposed use will not place a burden on the provision of public services, including police department resources, that is disproportionate to other commercial uses.
The proposed cannabis retail business has agreed to comply with all performance measures included in the Operator Permit including a security plan, provision of surveillance cameras, quarterly meetings with the Police Department, installation of bollards next to vulnerable areas including entrances, and other requirements to ensure that the proposed will not place a burden on public service resources.
Additional findings to support the granting of a Conditional Use Permit in this case include the following:
A. As required by Section 17.20.040, the establishment, maintenance or operation of the cannabis retail business use will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, morals, comfort and general welfare of persons residing or working the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the city because the use will be unobtrusive and will not generate significant neighborhood impacts due to its modest size and location within an existing commercial site.
B. The proposed cannabis retail business use would serve to re-occupy a commercial building that has been vacant since 2024 and would offer an additional form of retail use in the area.
C. The proposed cannabis retail business use would be responsive to General Plan policies calling for the provision of complementary services within a neighborhood, because it will be of a small scale, located within an established shopping area, and easily accessible to residents in the area. It would also comply with policies calling for use of crime prevention through environmental design strategies to help enhance public safety and reduce calls for service. It also responds to Economic Development policies that call for identifying new market opportunities and economic revenue sources for the city.
D. The proposed cannabis retail business use would be compliant with Zoning Ordinance development regulations pertaining to such uses as it would not result in any changes to the commercial pad building structure at 14501 San Pablo Avenue, would require only minimal parking, which is well provided for at this location, and is not located within any of the land use buffers identified in Section 17.62.130(F)(2).
E. The proposed project has been determined to be categorically exempt from the provisions of the California Environmental Quality Act (CEQA), in accordance with CEQA Guidelines pursuant to Section 15301, Existing Facilities. The project proposes to use existing tenant space and does not involve any new construction.
F. Public notice of hearing has been given by mail to the applicant, local affected agencies and to all property owners within 300 feet of the subject property and has been published in the West County Times (West Contra Costa edition of the East Bay Times) in accordance with the requirements of Government Code Section 65905.
As discussed above, the proposed cannabis retail business use will meet all applicable findings by being consistent with the newly adopted Regulation of Cannabis Activity Ordinance, and will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, morals, comfort and general welfare of persons residing or working the neighborhood. Nor will the use be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the city, and it will not generate significant neighborhood impacts due to its modest size and location within an existing commercial site. The new use will re-tenant a vacant commercial space in an existing commercial building, and it is in compliance with the General Plan and Zoning Ordinance development regulations including parking and location.
ENVIRONMENTAL REVIEW
The proposed use is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15301, Existing Facilities. Section 15301 exempts permitting or minor alteration of existing structures where there is little or no expansion of use. The site is currently occupied by other retail businesses and the suite to be occupied by Embarc was previously occupied by a similar retail use. There is no proposed expansion to the building or facility and the minor alterations and tenant improvements imposed are expressly exempted pursuant to Section 15301(a).
CONCLUSION
Staff recommends approval of the Conditional Use Permit for a new cannabis retail business use, subject to the conditions of approval identified in the attached proposed Resolution (attachment A). Any changes to the approvals must first be submitted to the City of San Pablo for review.
ATTACHMENTS
A. Resolution PC25-18
B. Application materials
C. Site location
D. Proof of Publication from West County Times