The city selected the locally owned dispensaries as part of its Retail Cannabis Pilot Program.
Last June, the Petaluma City Council voted to allow three brick-and-mortar cannabis dispensaries as part of a pilot program, marking an expansion of allowable commercial cannabis in the city.
This month, following “an extensive evaluation process,” the city has picked the three pot purveyors: Farmhouse Artisan Market, Down Under Industries and Solful.
“The selected operators exemplify a balanced mix of experience, community investment, and strategic vision,” the city said in a Dec. 10 statement announcing the selections.
In the statement, the city lauded Solful and Down Under Industries’ “proven track records” in cannabis retail, as well as Farmhouse Artisan Market’s “history of community engagement, providing quality jobs and fostering local partnerships.”
Out of nine applicants, five continued to the interview process “based on their alignment with the city’s program goals, operational readiness, and potential community impact,” the city said – but it also acknowledged all the applicants’ “strength and potential” and said it will maintain applications from qualified businesses on file, which may be revisited for future phases of the program.
The announcement marks the culmination of a process years in the making after California voters legalized recreational cannabis sale and cultivation in November 2016, followed by the city’s cautious approach to cannabis when it allowed delivery-only retail, manufacturing and testing in December 2017.
With just three operators set for this program, it “is positioned for measured growth” as the city monitors implementation and alignment with community expectations.
Operators will next secure retail licenses and necessary permits to develop the new storefronts’ locations, according to the statement.
Petaluma-area residents can already get their THC-laden flower, gummies and the like delivered by Farmhouse Artisan Market and Down Under Industries. But the new storefronts will expand consumer options by allowing in-person purchases.
Farmhouse Artisan Market is currently the only delivery-only retailer regulated by Petaluma’s municipal government. Down Under Industries operates just outside of city limits and already offers in-person, online and phone ordering, however it is regulated by Sonoma County.
Solful runs dispensaries in Sebastopol, San Francisco and Healdsburg, its newest store.
Not everyone was happy with the selections, as one nearby cannabis retailer voiced displeasure with the outcome at Monday night’s City Council meeting.
Brandon Levine, founder and CEO of Mercy Wellness, along with the company’s legal counsel and others, spoke out against the city’s licensing process, saying it lacked transparency and fairness.
“As a board member of the state’s Department of Cannabis Control, I have never seen a local permitting process shrouded in such secrecy,” Levine said in a company statement released Dec. 12. “Other cities like Healdsburg and Santa Rosa have shared their scoring matrix with applicants to ensure fairness. The city of Petaluma has inexplicably decided to make this major permitting decision behind closed doors.”
Mercy Wellness, which currently runs dispensaries in Cotati and Santa Rosa, filed a lawsuit against Healdsburg last February contending that city’s dispensary permitting process was flawed.
Petaluma’s selected retailers may only operate in areas zoned for business park, industrial, commercial 1 and commercial 2. Most or all of them will be situated on N. McDowell Boulevard, according to an interactive map on the city’s website.
Around the county, different jurisdictions have taken various approaches to legal sales of marijuana and other cannabis products. Currently, Sonoma County, Cloverdale, Cotati, Healdsburg, Santa Rosa, Sebastopol and Sonoma allow dispensaries. Windsor and Rohnert Park do not allow retail sales.
Commercial cultivation is still not allowed in city limits, however Petaluma residents may grow up to six plants on their own property for personal use, according to city code.
The city “will carefully evaluate” the pilot program’s “progress and impact, engaging the community and City Council in discussions about potential program expansion in late 2025,” according to the statement.
For more on the program, visit cityofpetaluma.org/cannabis-business-information.
You can reach Staff Writer Jennifer Sawhney at 707-521-5346 or jennifer.sawhney@pressdemocrat.com. On X (Twitter) @sawhney_media.
Petaluma picks 3 marijuana dispensaries to operate in town – Petaluma Argus Courier
