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Redwood City’s Legal Cannabis Strategy: Lessons for Other California Cities

February 23, 2026

Summary 

  • How Redwood City structured its cannabis ordinance using a phased rollout 
  • Why the 600-foot vs. 1,000-foot buffer debate matters for zoning feasibility 
  • What statewide cannabis regulation data reveals about local trends 
  • The legal risks cities face when drafting cannabis ordinances 
  • Practical steps municipalities can follow to build a defensible cannabis policy 

Why Redwood City’s Cannabis Policy Deserves Attention 

When California legalized adult-use cannabis under Proposition 64, the state allowed cities to decide how or whether to regulate commercial cannabis activity. That local control created a patchwork system across the state. 

A peer-reviewed study analyzing 539 California jurisdictions found that only 276 allow some form of retail cannabis, covering about 58% of the state’s population. That means nearly half of the state still restricts or bans local sales altogether.  

Redwood City took a different approach. Instead of rushing into retail storefronts or issuing broad bans, the city built a phased cannabis strategy focused on zoning control, compliance safeguards, and gradual expansion. For municipalities across the U.S. especially in California this model offers practical lessons. 

A Phased Cannabis Rollout Instead of a Sudden Opening 

One reason Redwood City stands out is its structured rollout. 

Phase 1: Controlled Entry 

The city began by allowing limited cannabis activity, including delivery services and personal cultivation. It avoided opening walk-in retail storefronts immediately. This gave regulators time to understand operational challenges and community concerns. 

Phase 2: Licensing and Tax Infrastructure 

Next, Redwood City requires delivery operators to obtain business licenses and comply with tax regulations. This step established oversight before expanding access. 

Phase 3: Regulated Expansion 

The city later permitted nursery operations but with limits. Nurseries could grow and sell immature starter plants, not full-scale mature cultivation. Retail expansion remained cautious and conditional. 

This staged approach reduced political pressure and allowed policymakers to adjust rules as issues surfaced. For cities drafting cannabis ordinances today, a phased strategy can lower legal risk and build public trust. 

The 600-Foot vs. 1,000-Foot Buffer Debate 

Zoning plays a central role in municipal cannabis regulation. In Redwood City, one of the most debated issues involved buffer zones between cannabis businesses and schools. 

Some community groups pushed for a 1,000-foot separation requirement. State law sets a minimum of 600 feet. The city ultimately adopted the 600-foot standard. 

Why does that matter? 

Buffer distances directly affect how much viable property exists for cannabis businesses. When cities adopt larger buffer zones without mapping eligible parcels first, they may eliminate nearly all available commercial locations. 

Before setting zoning rules, cities should: 

  1. Map industrial and commercial parcels 
  1. Apply proposed buffer distances 
  1. Calculate how many properties remain eligible 
  1. Evaluate vacancy rates and lease availability 

Overly restrictive zoning often creates unintended consequences, including limited competition and potential litigation from denied applicants. 

Delivery-Only Cannabis Models: A Practical Middle Ground 

The statewide data reveals another important pattern114 California jurisdictions allow delivery-only retail, while prohibiting storefront dispensaries. Some jurisdictions prohibit delivery altogether. 

Redwood City initially leaned toward delivery models before expanding retail access. Delivery-only frameworks reduce neighborhood visibility and foot traffic, which often addresses community resistance. 

For cities hesitant about full retail storefronts, delivery-only models provide a middle path. They allow regulated access while limiting the physical presence of cannabis businesses. 

What the Statewide Data Tells Us About Local Cannabis Regulation 

Redwood City’s approach fits within broader statewide trends. 

According to the same peer-reviewed study: 

  • Only 9 jurisdictions-imposed product restrictions stricter than state law 
  • Retail access expanded modestly in the first two years after legalization 
  • Local policies vary widely on delivery, storefront licensing, and zoning 

This data shows that local governments still experiment with regulatory models. There is no single template. Cities that build defensible, transparent policies reduce exposure to lawsuits and regulatory reversals. 

Legal Risks Cities Should Not Ignore 

Municipal cannabis ordinances often face legal scrutiny. Redwood City’s debate highlighted several areas of risk. 

Zoning and Land Use Challenges 

Conditional Use Permits (CUPs) often trigger appeals. If application scoring lacks transparency, denied applicants may claim unfair treatment. 

Clear evaluation criteria reduce these risks. 

Environmental Review (CEQA) 

Cannabis projects may require environmental review under the California Environmental Quality Act (CEQA). Delays can occur if documentation lacks thorough analysis. 

Cities should involve environmental counsel early in the drafting stage. 

Privacy and Data Concerns 

During council discussions, concerns surfaced about collecting medical patient information and ensuring cybersecurity protections. Even when cannabis is legal locally, sensitive data must remain protected. 

Litigation From Denied Applicants 

Competitive licensing systems can spark administrative law challenges. Objective scoring and documented review processes help defend city decisions. 

Hidden Barriers Cannabis Businesses Face 

Municipalities often focus on compliance but overlook market feasibility. 

In Redwood City, operators raised concerns about: 

  • Limited industrial-zoned land 
  • Landlords unwilling to lease to cannabis businesses 
  • High security costs 
  • Criminal background checks for all employees 

If legal frameworks unintentionally block viable operators, illicit markets may persist. Cities should evaluate whether regulations align with realistic business conditions. 

A Practical Cannabis Ordinance Playbook for Cities 

Municipalities across California and other U.S. states can apply the following steps when drafting cannabis ordinances: 

Step 1: Conduct a Community Impact Assessment 

Engage residents early. Gather public input before drafting final rules. 

Step 2: Map Zoning Feasibility 

Use geographic mapping tools to calculate viable parcels under proposed buffer rules. 

Step 3: Establish Transparent Scoring Criteria 

Define application categories, scoring weights, and evaluation processes in writing. 

Step 4: Set Clear Compliance Standards 

Outline security requirements, employee background checks, and operational limits. 

Step 5: Plan for Litigation 

Anticipate administrative appeals and document decisions thoroughly. 

Step 6: Review Annually 

Cannabis policy evolves quickly. Schedule regular ordinance reviews to address emerging issues. 

What Cannabis Operators Can Learn 

Business owners preparing municipal cannabis applications should: 

  • Understand local zoning maps before signing leases 
  • Prepare for detailed background checks 
  • Budget for compliance and security costs 
  • Engage legal counsel early 

Cities may cap permits, require public hearings, and enforce strict documentation standards. A strong application reflects both regulatory compliance and community benefit. 

Why This Matters for Other California Cities 

Redwood City demonstrates that cannabis legalization does not require extremes. Cities do not need to choose between prohibition and uncontrolled retail expansion. 

A phased rollout, clear zoning standards, and transparent licensing create a framework that balances public safety and economic opportunity. 

For municipalities navigating cannabis legalization, careful drafting can prevent costly disputes and policy reversals. For operators, understanding local rules can mean the difference between approval and denial. 

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FAQs

Here are some answers to some commonly asked questions.

Yes. Cities retain authority to prohibit commercial cannabis activity within their jurisdiction.

There is no fixed statewide number. Cities may cap permits based on local policy goals.

Common restrictions include buffer zones from schools, parks, and residential areas.

It allows cannabis sales via delivery without storefront retail locations.

Applicants may pursue administrative appeals or legal action depending on local rules.
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