PACIFIC GROVE – Pacific Grove city staff are releasing an informational memo outlining questions raised by the public about the city’s cannabis storefront permit process.
Pacific Grove has been in the midst of creating a retail cannabis store for the city, adopting the first amendments to the cannabis ordinance back in June 2025 and opening the application window for a single storefront license from Sept. 15 to Oct. 15.
During that application period, according to Wednesday’s agenda, the city posted responses to frequently asked questions including whether applicants could share ownership ties through other companies or contracts.
According to the memo, after the window closed the property owner of 1169 Forest Avenue sent two letters to the city. The first, dated Oct. 22, 2025, alleged that eight applications for 1157 Forest Avenue appeared to come from one applicant using multiple legal entities and requested an investigation.
A second letter on Oct. 31 cited that the city ordinance did not prohibit related parties from submitting multiple applications but argued the practice should not be permitted and again requested corrective action. City staff responded on Nov. 7, stating that application review was still underway.
HdL, the consultant hired to review the submissions and assist with inspections, determined that all 10 applications met program and administrative requirements. The city notified applicants on Jan. 5, that they were eligible to move to the lottery phase. No appeals were filed during the 10‑day appeal period.
On Jan. 8, the city received another letter from an attorney representing the 1169 Forest Avenue property owner and its applicant, NUG Pacific Grove LLC, repeating concerns about coordinated applications and requesting corrective action. The city responded on Jan. 15, reiterating that the licensing process does not prohibit affiliations among applicants.
The next step in the licensing process is the lottery which city staff say is still being finalized.
The Pacific Grove City Council will meet at 6 p.m. Wednesday at Pacific Grove City Hall, 300 Forest Avenue. The meeting will be streamed online and can be participated in via Zoom at https://www.cityofpacificgrove.org/Zoom_CC
