Atascadero City Council votes against permitting cannabis retail stores
October 16, 2025

By KAREN VELIE
The Atascadero City Council on Tuesday voted 3-2 against allowing retail cannabis stores in the city. Council members Seth Peek, Heather Newsom, and Mark Dariz voted to abandon plans to allow local pot shops.
City staff estimated a retail cannabis store could result in $500,000 to $1 million in tax revenue a year before expenses. In addition, the staff report warned the council of an unstable marijuana industry.
Proponents of allowing retail pot shops focused their comments on the possible financial gains the shops could bring the city.
On the other side, opponents of allowing cannabis retail stores voiced concerns regarding risks to young people.
“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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