PREPARED BY: SANDRA CASTANEDA DATE OF MEETING: 10/28/2025
SUBJECT:
TITLE
CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW A RETAIL CANNABIS USE AT AN EXISTING COMMERCIAL SHOPPING CENTER BUILDING LOCATED IN THE COMMERCIAL MIXED USE (CMU) DISTRICT AT 3550 SAN PABLO DAM ROAD, SUITE C, (APN: 420-130-032).
CEQA: This project is categorically exempt under the California Environmental Quality Act Guidelines Section 15301, Existing Facilities, Class 1. This Class applies to continued operation of existing private structures, such as the existing commercial shopping center where the new business proposes to locate, with negligible or no expansion of uses
Label
Location: 3550 San Pablo Dam Road, Suite C, southernmost main building of the Plaza Sobrante shopping center
APN: 420-130-032
PLAN No: PLAN2509-0005
Zoning: Commercial Mixed Use
CEQA: Exempt under Section 15301. Existing Facilities.
Owner: Denis Hill (Hill-Sketchley Properties)
Applicant: Off the Charts (OTC)
Staff Contact: Sandra Castaneda Marquez, Planning Manager
Recommendation
Conduct public hearing; adopt Resolution
Body
REQUESTED ACTION
A request for approval of a Conditional Use Permit to allow a new Cannabis, Retail Business Use in an existing multi-suite shopping center located at 3550 San Pablo Dam Road, Suite C (APN420-130-032). The Parcel is designated Commercial Mixed Use in the San Pablo General Plan and it is zoned CMU, Commercial Mixed Use.
Surrounding Zoning and Land Uses:
The project site is currently occupied by a small shopping center known as Plaza Sobrante. The building within the shopping center in which the retail cannabis operator will be located is the main building in the south end of the shopping plaza with multiple tenant spaces. The suite where the retail cannabis operation is proposed to be located is known as suite C and is currently vacant. The most recent use that occupied this unit was an auto parts store. Other businesses occupying adjacent suites include a pizza restaurant, a car rental company, an Indian restaurant, and a veterinary medical center. Surrounding Zoning and Land Uses are as follows:
North: Unincorporated Contra Costa County (El Sobrante); Residential and vacant commercial.
South: CMU - Commercial Mixed-Use; Plaza Sobrante (shopping center) and R-4 (High Density Residential) vacant parcel behind the shopping center.
East: Unincorporated Contra Costa County (El Sobrante); Church
West: CMU - Commercial Mixed-Use; Plaza Sobrante (shopping center) and a Self-Storage facility adjacent to the shopping center.
ENVIRONMENTAL DETERMINATION
CEQA: This project is categorically exempt under California Environmental Quality Act Guidelines Section 15301, Existing Facilities, Class 1. This Class applies to projects within existing private structures, such as the buildings within the existing commercial shopping center where the new business is proposed to be located, with negligible or no expansion of uses.
PUBLIC HEARING NOTICE
Notices regarding this public hearing were mailed to owners of properties within a 300-foot radius of the site on October 15, 2025. In addition, 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.
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 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 Permit 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, Off the Charts (OTC), is one of the top three ranked applicants for a Cannabis Operator Permit. On September 8, 2025, OTC submitted a formal Cannabis Operator Permit, which was approved by the City 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 per Section17.62.130(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.
SITE LOCATION AND PROJECT DESCRIPTION
The subject site is located at the Plaza Sobrante shopping center at 3550 San Pablo Dam Road. The shopping plaza contains three (3) different parcels as shown on the parcel map in attachment D. The parcel where the vacant suite is located is known as “Parcel C”. Parcel C is the largest parcel located on the south end of shopping plaza, and includes the main commercial pad building with multiple suite spaces. The existing vacant Suite C, where the new use is proposed, is 1,969 square feet in size. This suite was previously occupied by an auto parts store and has been vacant since January of 2024.
The new cannabis retail use is proposing minor tenant improvements to retrofit the space to the needs of the new proposed use and to comply with security measures. The proposed site plan includes a lobby/check-in area when entering the building to ensure that all customers are verified by a sales specialist before entering the sales floor. After the check-in area, there would be a retail floor with display areas for the cannabis products and towards the back of the unit there would be an employee break area, a vault, a storage room, an existing restroom that will remain, and a delivery area with access through the rear of the building. An exhibit of the proposed floor plan included in the application materials (Attachment B) is shown below:
Exhibit 1: Proposed floor plan
The proposed business hours of operation would be Monday through Sunday 8 a.m. - 10 p.m. The business expects to have a total of 19 employee positions in year one and 31 positions by year five. This includes executive and management positions (see page 31, Attachment B). The cannabis retailer is also in the process of obtaining the required State license to operate. They would 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 OTC 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, manufactured cannabis products, including various extracts, rosin, edibles, tinctures, topical products, sublingual tabs, capsules, beverages and non-cannabis merchandise, such as branded clothing and 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 on the General Plan as Commercial Mixed Use. The proposed use is consistent with the following policies of the General Plan:
Land Use & Physical Design Policies:
LU-G-8 Promote site sensitive design and pedestrian-oriented activities in mixed-use developments.
U-G-9 Retain and enhance commercial, industrial, employment, and entertainment land use areas to strengthen San Pablo’s economic base.
LU-I-8 Apply Crime Prevention through Environmental Design principles in the design of new development and encourage the provision of adequate public lighting; windows overlooking streets or parking lots; and paths to increase pedestrian activity within private development projects and public facilities in order to enhance public safety and reduce calls for service.
LU-I-9 Continue to involve the Police Department in the development review process to ensure new buildings are designed with security and safety in mind. The Planning Division will continue to coordinate with the Police Department with respect to reviewing new development proposals. Issues to be considered include the design and location of entries, lobbies, hallways, and parking lots to ensure public safety
LU-I-17 Allow small-scale non-residential uses in neighborhoods that contribute to the residential character of an area or provide complementary services within the neighborhood, such as childcare, neighborhood retail, and other stores.
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 plaza located in the Commercial Mixed Use 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 industry that would generate tax revenue for the city and respond to the Economic Development goals and policies of the General Plan.
ZONING CONFORMANCE
The existing building at 3550 San Pablo Dam Road was constructed in 2006 and no exterior changes are proposed as part of the application. Therefore, there would be no change in terms of the conformance of the project to the development regulations pertaining to the building. Section 17.54.030 of the Zoning Ordinance requires the use of Retail Sales, General, to have one (1) parking space per 300 square feet. of retail area. The proposed tenant space measures 1,969 square feet, which would require the business to provide seven (7) parking spaces. Plaza Sobrante has 180 off-street parking spaces that are shared amongst all businesses in the plaza. 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 operator, OTC, 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 operators 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 submitted an Operator Permit application on September 8, 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, a business plan with approved hours of operation. The applicant has 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.
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. 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 in its and will not generate significant neighborhood impacts due to its modest size and location within an existing shopping plaza.
B. The proposed cannabis retail business use would serve to re-occupy a commercial building that has been vacant since January 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 Plaza Sobrante structure, 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, it will not be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the city, and will not generate significant neighborhood impacts due to its modest size and location within an existing shopping plaza. The new use will re-tenant a vacant commercial space in an existing shopping center, and it is in compliance with the General Plan and Zoning Ordinance development regulations including parking and location. The proposed use is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15301, Existing Facilities and the public hearing for this project was duly noticed as required by Government Code Section 65905.
CONCLUSION
Staff recommends approval of the project, including 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 PC25-17
B. Application materials
C. Site location
D. Parcel Map
E. Operator Permit PLAN2509-0002
F. Proof of Publication from West County Times