Atascadero City Council to consider allowing cannabis retail stores
October 14, 2025
By KAREN VELIE
The Atascadero City Council is scheduled on Tuesday to discuss permitting retail cannabis stores in the city.
In February, the city council directed staff to bring forward a discussion regarding the potential for retail pot sales within the city. City staff estimates doing so could result in $500,000 to $1 million in tax revenue before expenses.
However, the staff report also warns the council of an unstable marijuana industry.
“In California, the retail cannabis industry is in a state of flux, marked by financial struggles for legal
businesses, intense competition from a thriving illicit market, and shifting tax policies,” according to the staff report. “While the legal market continues to grow in terms of production and units sold, sales revenue is declining, leading to consolidation and business failures.”
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