The City of San Luis Obispo has granted the city's first commercial cannabis operator permits to two businesses.
Coastal Delivery SLO and Megan's Organic Market SLO received the permits after a several month vetting process.
The city says it plans to grant three additional permits and will announce the selected businesses as they are approved.
Under an ordinance approved by the city council in May 2018, a maximum of three cannabis retail storefront businesses will be allowed to operate in the city, but there is no limit to the number of delivery, cultivation, manufacturing, and other small businesses. There are restrictions on where these businesses can be located.
In January, the city received 11 applications for cannabis business operator permits and approved three retail storefronts, one delivery service and one microbusiness. The applications were reportedly scored by city staff based on criteria including community benefit, experience, equity and labor, financial investment, and commitment to medical cannabis.
The approved businesses then had to undergo background checks.
Coastal Delivery SLO and Megan's Organic Market SLO were the first business to complete the background checks.
The other businesses to receive contingent operator permits were Natural Healing Center, Elemental Wellness, and Element 7.
Megan's Organic Market will be a recreational dispensary located at 280 S. Higuera Street.
Owner Megan Souza says permitting and construction are underway and they are planning for an opening date in February or March of 2020.
Souza says the business is currently working to connect with cannabis cultivators and producers on the Central Coast "to build a product offering that celebrates talented local farmers and crafters and our area's uniquely ideal terroir for cannabis cultivation."
She adds that as part of the dispensary permit application, Megan's Organic Market committed to spend $2,000 and 20 hours per month on community service.
Souza also operates Megan's CBD Market, which has locations in Morro Bay and Atascadero.
KSBY News also reached out to Coastal Delivery SLO for comment but has not yet received a response.
