Council to Weigh Adding a Second Dispensary
The Sonoma City Council will consider this evening whether to allow a second cannabis dispensary to apply for a business license within city limits. At its regular meeting on Wednesday, September 17, 2025, the Council is scheduled to discuss directing staff to initiate the process for an additional cannabis retailer – a step that would involve updating fees, application guidelines, and issuing a new Request for Proposals (RFP) for cannabis business permits . The decision marks a revisit of an issue that has sparked ongoing local debate over market competition, public access, and city tax revenue.
Current Policy and Sonoma’s Sole Dispensary
Under Sonoma’s existing regulations, only one cannabis dispensary is currently permitted to operate in the city, a position filled by the San Francisco Patient and Resource Center (SPARC) since 2022 . Sonoma first established its cannabis business ordinance in 2019, initially authorizing one retail storefront dispensary (along with one delivery-only retailer, one manufacturing site, and one testing lab) as part of a tightly controlled rollout . After a competitive selection process, SPARC was chosen to open the city’s first dispensary and received its use permit in October 2020 . SPARC’s dispensary, located on Sonoma Highway, opened to the public in spring 2022 and has since been the city’s sole source for legal cannabis products . In April 2021, the Council approved Ordinance 5-2021, amending the rules to allow up to two retail dispensaries in principle . However, that second slot has never been filled, as officials held off on accepting new applications in subsequent years.
Calls for a Second Dispensary
In the time since SPARC opened, some residents and local advocates have argued that having only one dispensary in town creates a monopoly-like situation with high prices and limited consumer choice . Members of the Sonoma Valley Cannabis Group – a grassroots organization promoting expanded access – have been urging the city to follow through on licensing a second retailer. Earlier this year, representatives of the group met with City Manager David Guhin to press the issue . “SPARC has a monopoly,” Sonoma resident Perri Ellis Paniagua said, contending that introducing another dispensary would spur competition, create economic opportunities, and lead to more equitable pricing for customers . Gil Latimer, founder of the Sonoma Valley Cannabis Group, noted that the City Council agreed in 2021 to consider a second permit but “never followed through.” Four years later, Sonoma still has only one dispensary, which Latimer argues has hurt medical patients, limited competition, and cost the city potential tax revenue. He believes allowing a second retailer would bring greater “stability and fairness” to the local cannabis market . Proponents also point out that a new dispensary could boost the local economy and generate additional tax dollars for city services .
Previous Deliberations and Industry Concerns
This is not the first time Sonoma’s leaders have grappled with the idea of a second dispensary. On April 19, 2023, the Council considered opening the application process for the additional permit, but ultimately no action was taken, and no RFP was issued at that time . The hesitation came amid warnings about the broader cannabis industry’s instability: SPARC CEO Erich Pearson had urged the Council to delay any new permits by a year, citing structural problems in California’s cannabis market and the risk of oversaturating the area . Councilmembers were also mindful that two other dispensaries were launching just outside city limits around that period – one in Glen Ellen and another in Schellville – effectively providing nearby alternatives for Sonoma Valley residents. Then–Vice Mayor John Gurney noted those outlets were only a few miles away, and Vice Mayor Ron Wellander favored holding off on a second Sonoma store, though he wasn’t opposed to the idea permanently .
City staff’s latest agenda report provides mixed context on the implications of a new dispensary. On one hand, adding a second storefront could increase consumer convenience and choices for Sonoma buyers . On the other hand, the staff analysis cautions that California’s legal cannabis sales have flattened or declined recently, and the illicit market remains a strong competitor . In a stagnant or shrinking market, opening another shop might mostly split the existing customer base rather than create many new cannabis consumers . The report projects that unless a second dispensary draws in substantially new business (for example, from tourists or new local customers), the net increase in tax revenue to the city could be modest – perhaps on the order of tens of thousands of dollars per year in additional cannabis tax, rather than a windfall . These economic and market factors are likely to feature in the Council’s discussion as it weighs the costs and benefits of expanding cannabis access.
Meeting Details and Next Steps
At tonight’s meeting, Council members will decide whether to proceed with authorizing a second cannabis dispensary license process or to maintain the status quo. If a majority of the five-member Council directs staff to move forward, the City will begin updating its cannabis program – including refining permit guidelines, revising the fee schedule, and formally issuing an RFP for new cannabis business proposals . The staff report lays out two potential actions: one option is to hold off and set a future date or conditions for reconsidering the issue, and the other is to move ahead now with opening the application process for all cannabis business types (not just retailers) under an updated regulatory framework . Any RFP process would likely take several months, involving application reviews and ultimately Council selection of an operator for the second dispensary permit.
Mayor Patricia Farrar-Rivas has indicated that revisiting the second dispensary question is a priority, saying she believes it’s “important for the council to address” this matter at this time . The topic has drawn significant public interest. The City’s agenda invites community input: residents may submit written comments in advance via the City’s CivicWeb portal or provide feedback in person at the 6:00 p.m. meeting in the Community Meeting Room at 177 First St. West . The meeting will also be broadcast live on local cable and streamed online for broader accessibility . A decision by the Council on September 17 could determine whether Sonoma finally moves toward welcoming a second cannabis dispensary, potentially ending SPARC’s role as the city’s lone retail cannabis outlet and expanding legal cannabis options for Sonoma consumers.
