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File Number: 25-220 According to its application letter, NUG has also been a strong partner to the San Leandro community. For example, they state that they have developed strategic relationships with other San Leandro businesses to help drive NUG customers to shop at local businesses, engaged in San Leandro Chamber of Commerce activities, and contributed to support their local community benefits partner, the Davis Street Community Center. Although the former tenant Blum San Leandro is no longer in operation at the 1911 Fairway Drive location, at this time the company continues to maintain rights to its former City Council-issued dispensary operating permit. More specifically, when the City Council issued the operating permit to Blum in 2016, that permit (like the other two dispensary operating permits) was not tied to a specific location and was therefore deemed to be a portable operating permit that could be used at any Zoning-compliant site in San Leandro that complied with the City’s various codified requirements including setbacks from sensitive uses (such as schools, houses of worship, residential areas, and youth centers), through a Conditional Use Permit. By allowing NUG to commence operations at 1911 Fairway Drive via issuance of a fourth permit, such an approach would potentially enable Blum San Leandro (the former occupant at the Fairway site) to seek out an alternative code-compliant site in order to re-establish its operations through the issuance of a new Conditional Use Permit, which would be subject to review and approval at a public hearing by the City of San Leandro Planning Commission. It should also be noted that per Sections 4-33-700 and 5-24-108 of the San Leandro Municipal Code, both dispensary operating permits as well as conditional use permits are each separately eligible for suspension or revocation by the City Council or the Planning Commission & Board of Zoning Adjustments, respectively at a noticed public hearing if there has been a discontinuance of the exercise of the entitlement granted by the permit for 180 days. In this instance, both the dispensary operating permit as well as the Conditional Use Permit would each be separately eligible for such actions by either body beginning after June 30, 2025. Fiscal Impacts If the fourth operating permit is authorized, the City will collect a $35,000 annual dispensary regulatory permit fee from the permit holder. In addition, like all the other dispensaries, NUG’s proposed satellite dispensary would be required to contribute 5% of its annual gross receipts to the City of San Leandro General Fund. ATTACHMENTS ·A) Proposal from NUG Wellness ·B) Letter from Fairway Medical Plaza, LLC ·C) Draft Ordinance ·D) Resolution Awarding Fourth Cannabis Dispensary Operating Permit to NUG PREPARED BY: Eric Engelbart, Deputy City Manager, City Manager’s Office Page 3 City of San Leandro Printed on 9/4/2025