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File Number: 25-220 Harborside San Leandro. Based upon City Council direction provided at subsequent Council meetings in 2015 and 2016, the City Council later adopted various amendments to the dispensary ordinance, including provisions that allow for the issuance of up to three total dispensary permits, the latter two of which were ultimately awarded by the City Council to Davis Street Wellness Center (now known as NUG) and Blum San Leandro. All three businesses identified locations for their proposed dispensaries and ultimately received approval of separate Conditional Use Permits from the City of San Leandro Board of Zoning Adjustments and commenced operations at the following locations: ·NUG Wellness, 3089 Teagarden Street ·Harborside San Leandro, 1965 Marina Blvd. ·Blum San Leandro, 1911 Fairway Drive Analysis According to the attached letter from the property owner of 1911 Fairway Drive (Fairway Medical Plaza, LLC hereafter referred to as “Fairway”), which was the previously approved location for Blum San Leandro, the prior lease between Fairway and Blum was terminated and all business operations ceased as of approximately December 31, 2024. As a result, Blum San Leandro is no longer in operation at the 1911 Fairway Drive location. Nevertheless, the associated Conditional Use Permit (CUP) that authorized that particular property for use as a retail cannabis dispensary remains in effect. As with all CUPs, the specific land use that is authorized by such an entitlement runs with the land, irrespective of the specific entity that operates the authorized land use. Notably, NUG also successfully entered into a new lease agreement with the property owner, which became effective on December 24, 2024. If the City Council were to adopt the draft ordinance amendment and resolution that are included as part of this agenda item, it would enable NUG to open a second dispensary location in San Leandro at the 1911 Fairway Drive location that was formerly operated by Blum San Leandro. NUG Wellness has demonstrated itself to be a competent operator that has maintained compliance with the various State and local regulations that are applicable to retail cannabis dispensaries. NUG has also complied with the City’s local gross receipts tax, which is currently set at 5% of gross receipts, thereby significantly contributing to the City’s General Fund each year. For context, the three dispensaries in San Leandro collectively contribute approximately $1 million per year in gross receipts taxes, which are deposited into the City’s General Fund. NUG Wellness also pays its annual business license and annual regulatory fee each year as well. NUG has affirmed in writing that if it were awarded the permit to operate at the 1911 Fairway Drive location, that it would maintain full compliance with all the conditions of approval associated with the existing City-issued entitlements associated with the property. According to NUG’s attached application letter, this second dispensary location would serve as a “satellite” or “express” retail facility that would primarily fulfill online orders and offer an “express” in-store experience. The addition of this facility would also seek to alleviate customer traffic from their current primary facility at 3089 Teagarden Street and allow a renewed focus on a personal in-store experience at that primary facility. Page 2 City of San Leandro Printed on 9/4/2025