More cannabis businesses planned for Second Street


More cannabis businesses may be headed to 2121 Second St., a complex of three buildings on 4.4 acres currently home to a cannabis dispensary, cannabis manufacturing and cannabis testing.

On Wednesday the Davis Planning Commission recommended that the City Council approve a delivery-only cannabis business at the site and also approve a master conditional use permit that could expand the number and size of cannabis manufacturers leasing space there.

The site, zoned for industrial research, currently is home to Blessed Extracts and Dabblicious, both cannabis manufacturers that have expressed a need to increase their quantities of hazardous materials and storage areas in order to meet growing demand and to fulfill current orders.

Meanwhile, PalliaTech is seeking to open a cannabis manufacturing and distribution site at the location as well.

PalliaTech would manufacture oil, vaporizers, cartridges, concentrates, edibles and more on-site and wholesale products to a separate, delivery-only business that would also be located at 2121 Second St.

All of the cannabis-related businesses are located in buildings B and C – to which the master conditional use permit would apply – while building A is home to SwimAmerica, Momentum Dance and Crossfit Davis, with Davis Fencing Academy moving to building A from its current location in building C.

David Carlson, general manager of DavisFlex – the property owner – sought the master conditional use permit to allow him to rent available spaces to prospective cannabis manufacturing and distribution clients without having to seek individual conditional use permits for each use.

City staff has recommended approval of the master conditional use permit, saying it, “would streamline processing and allow flexibility for the property owner to manage the site”

Meanwhile, applicable fire and building codes that regulate hazardous materials and environmental mitigations in place for the project “would ensure that proposed and future volatile cannabis manufacturing activities and quantities of hazardous materials on site would not constitute a nuisance or be detrimental to the public welfare of the community.”

Carlson, who along with his partners purchased 2121 Second St. in 2013, said the property sustained vacancies for years – particularly after Marrone Bio moved out in 2015 – but now the property is fully leased.

And while there is “great economic potential here” with the cannabis businesses, “I have not kicked out any tenants to make space for cannabis tenants,” he said.

In addition to Blessed Extracts and Dabblicious, the site is also home to a dispensary (the Davis Cannabis Collective) and a cannabis testing laboratory (Spectrum CannaLabs). Also located in buildings B and C are non-cannabis businesses, including Evolve Biosystems, InnoLab and Quality Vet Lab.

After voting to recommend approval of a master conditional use permit for the site, planning commissioners also voted to recommend approval of a separate conditional use permit for a delivery-only cannabis business sought by PalliaTech.

If approved by the City Council, PalliaTech’s delivery-only business would be the city’s fourth, in addition to five cannabis dispensaries, four of which provide delivery service as well.

During last week’s City Council meeting, council members requested a pause on future delivery-only applications after PalliaTech’s so those businesses already approved have time to get up and running while the city has time to determine how many such businesses are right for Davis.

– Reach Anne Ternus-Bellamy at [emailprotected] Follow her on Twitter at @ATernusBellamy.

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