A cannabis delivery business is looking to open in an industrial area of Mountain View. If approved, it would be the second marijuana business to gain a foothold in the city as the state’s fledgling legal industry grows.
The company Northern Erudite Ventures has applied for a permit to run a cannabis business out of 569 Clyde Avenue, a commercial building deep in the East Whisman area bordering the Sunnyvale golf course. The business would not be permitted to make sales to customers on site under the city’s zoning rules, but would be allowed to store and transport cannabis for the purposes of delivery.
Unlike most cities on the Peninsula, which have outright banned cannabis businesses from operating within city limits, Mountain View allows up to three marijuana delivery businesses to open — provided they meet strict criteria. The zoning rules call for strict security measures and special rules for loading and unloading cannabis products, and require businesses to mitigate any pot odors that may come wafting out of the building.
An earlier version of the city’s zoning rules allowed for delivery and storefront cannabis businesses to open up in large swaths of the city — including downtown — but the City Council reversed course following intense public pressure. Storefront retail for walk-in customers is now effectively banned in the city.
The first business to make it over the finish line was MWKM Corporation, which applied in 2019 to open a delivery business at 229 Polaris Avenue on the edge of the Rex Manor neighborhood. It was the only application that survived the council’s complete revamp of the cannabis zoning laws, but later had its own fair share of problems. MWKM filed a claim against the city in 2020 alleging that police officials and planning staff were illegally requiring the business to have an enclosed area for loading and unloading cannabis products.
MWKM came back to the city for reconsideration of a conditional use permit to operate the Polaris Avenue delivery business, which the city’s Zoning Administrator approved in January 2021. The company has yet to open at the new location.
Northern Erudite Ventures is seeking to follow suit, but still has a few hurdles to overcome. At the Oct. 27 Zoning Administrator hearing last week, the company asked to delay final approval after its legal counsel asked for more time to address ongoing issues related to the proposed delivery loading zone planned for the parking lot.
Northern Erudite Ventures is also being asked to hold a community meeting prior to the next public hearing, and new notices will be sent out to alert residents to the possible approval, according to city officials.
Most cities in Santa Clara and San Mateo counties swiftly updated zoning regulations to prohibit cannabis businesses from operating at all, with a few key exceptions that include San Jose, Daly City and Redwood City. Proponents of cannabis businesses have argued that these local restrictions have done everything short of outlawing marijuana, stifling growth of the legal cannabis industry. A report by the California’s Cannabis Advisory Committee found the local zoning regulations, along with high taxes, are suppressing pot sales and reducing the state’s excise tax revenue from the new industry.
And while Mountain View may be bucking the trend by allowing delivery businesses, the regulatory challenges are many. Any prospective business looking up sell cannabis in Mountain View has to provide a detailed application and must buy or lease the commercial space ahead of time, requiring a hefty upfront investment. One applicant who sought to open a business in downtown under the old zoning rules reportedly paid $125,000 just to get through the first planning phase.
A second hearing on the Clyde Avenue marijuana business has not been scheduled.
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