City approves cannabis dispensary for Oxnard Shores amid flurry of public debate

Brian J. Varela
Ventura County Star
A rendering shows TD Enterprise LLC's Oxnard Shores dispensary, Oxnard Holistics. The Oxnard City Council approved a special-use permit for the dispensary last week.

Following an outpouring of support and opposition, a cannabis dispensary is one step closer to opening up shop in Oxnard Shores.

The Oxnard City Council last week overturned the Planning Commission's denial of a special-use permit allowing TD Enterprise LLC to operate its Oxnard Holistics dispensary at 1015 Harbor Blvd.

The commission held two votes on Jan. 13, one in favor and the other against awarding the permit. Both votes tied 3-3, with Vice Chair Ronald Arruejo recusing himself. The split vote was considered a denial.

At least 54 people commented on the dispensary at the Feb. 15 City Council meeting on top of the more than 100 emails the city had already received on the issue, according to Councilman Gabe Teran. The council also received a petition opposing the dispensary signed by 537 local residents. 

“The residents have a voice and they have used their voice,” said Councilman Bert E. Perello, the lone dissenter who represents City Council District 1 where the dispensary would be located. “The business has a voice. There are rules in place. We’re supposed to follow those rules, but people’s voices and concerns matter.”

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TD Enterprise of San Diego had appealed the commission's decision on several grounds. City staff sided with the business and recommended the council support a special-use permit. 

Dave Dallal, managing director with TD Enterprise, said Monday the dispensary will open in the next four to six months after the business secures additional local and state permits and licenses. 

Over the next three years, the dispensary will pay about $1 million in sales tax, Dallal said. Additionally, the company will pay the city about $15,600 in application fees. The company also must pay a one-time $250,000 payment and a yearly 1% donation of gross revenues to support programs throughout the city, Scott Kolwitz, the city’s planning and environmental services manager, said Tuesday. 

The 1,740 square foot dispensary would replace a former Subway restaurant and join a brewery, restaurants, a nail salon and other stores in the Oxnard Shores neighborhood shopping center. 

Common Sense, a grassroots group formed to oppose the dispensary, said the business would bring traffic, parking and safety concerns to the area. 

Robert Murphy, a member of Common Sense, said the location wasn’t ideal for a dispensary because it's surrounded by residences. He noted other locations approved for cannabis retail weren’t next to homes or at least had a buffer zone.

With several businesses already selling alcohol, Murphy argued a dispensary would make the shopping center less family-friendly. He pointed to the nearby dispensaries in Port Hueneme for those in the area that need cannabis. 

“Now this little shopping center will have a liquor store, pot stop and two bars,” Murphy said. “What vision of a residential serving strip mall is this?”

Another neighborhood resident, Diane Delane, said the community wasn’t against cannabis, but rather opposed the location of the dispensary. She was concerned that its customers would use cannabis in the area.

“People are going to come and consume their product here at the beach,” Delaney said. “I think you should take into consideration we have small children at the beach.”

Oxnard Shores residents were also concerned with the possible influx of traffic and demand for parking and requested a traffic study. 

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TD Enterprise was not required to conduct a traffic study because the dispensary is being permitted as a retailer, the same as other tenants in the shopping center, Dallal said. 

The site is in a Commercial Neighborhood Convenience zone, which can host a cannabis dispensary with a special-use permit, according to city documents.

Mike Marlow, a representative for Oxnard Shores LLC, the owners of the shopping center, said the landlord and tenants welcome the dispensary. He said the company was approached by about seven cannabis dispensaries but chose TD Enterprise after seeing its San Diego dispensary, which was the first outlet in California to receive a temporary recreation cannabis permit in 2018.

“They’ll excel to make our area cleaner, safer and win over the entire community, but probably not all of it right now,” Marlow said.

Unarmed security would patrol the shopping center to ensure no one is using the product onsite and to discourage loitering. Dallal said TD Enterprise’s other dispensaries have not experienced any safety issues or criminal activity requiring law enforcement. 

Supporters noted that TD Enterprise met the 188 conditions for permit approval. 

Cesar Hernandez, a resident of Oxnard Shores, said the City Council should approve the permit because the business meets state and local regulations. He welcomed the additional security measures and sales tax. 

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“What’s good for the goose is good for the gander,” Hernandez said. “If dispensaries are good in other parts of the city of Oxnard, then they’re just as good in this community.”

TD Enterprise was one of 51 applicants that filed for a cannabis retail permit during an open application period and one of 16 candidates City Manager Alex Nguyen invited to apply for a permit to begin selling cannabis in the city. Fourteen candidates have been awarded permits, Kolwitz said. 

As of Tuesday, no dispensaries have opened in Oxnard, he said.

Brian J. Varela covers Oxnard, Port Hueneme and Camarillo. He can be reached at brian.varela@vcstar.com or 805-477-8014. You can also find him on Twitter @BrianVarela805.