Legalizing recreational marijuana in California could bolster struggling shopping districts with new dispensaries but might displace art galleries and other low-margin businesses by spiking commercial rents.

Those are among the potential land-use effects of marijuana legalization discussed during a Tuesday morning forum in downtown San Diego sponsored by the Urban Land Institute.

The forum also covered San Diego’s relatively new medical marijuana ordinance, which a local Planning Commissioner called “a horrible compromise,” and new state legislation that’s finally brought clarity to California nearly 20 years after state voters approved medical marijuana.

The forum was highlighted by Denver journalist Patricia Calhoun describing the effects of Colorado legalizing recreational marijuana two years ago. Her comments were timely, with signature gathering getting under way in California for a November ballot measure that would do the same here.


She said dispensaries, some with storefronts as sleek as Banana Republic and Apple stores, have revitalized downtown Denver and also some smaller nearby cities with struggling retail districts.

Colorado has 500 total dispensaries, with 300 in Denver.

Calhoun said, however, that the dispensaries have put upward pressure on commercial rents similar to a previous craft brewery craze in the city.

“A lot of the really creative ventures – the artists who would take over warehouses – are being priced out,” said Calhoun, longtime editor of an alternative weekly called Westword.


In addition, Calhoun said there has been some cultural impacts.

Similar to Facebook, she said the common use of marijuana by adults has made their children somewhat less interested in the drug, because it seems less rebellious.

The national focus on Colorado has also created a backlash that could happen here if voters approve recreational legalization.

“Everyone who has lived in San Diego for say three minutes and thinks they’re a native will start complaining that pot is bringing everyone to California,” she said.


On San Diego’s medical marijuana ordinance, Planning Commissioner Stephen Haase said he would have preferred the 2014 law not prohibit dispensaries from being within 1,000 feet of each other.

“Let them congregate, let there be competition and let that help with the regulatory framework so we can get an area that we can police very well,” he said.

Haase said the law, which many have described as too strict, was a necessary compromise among the City Council because not all members of the council support the drug’s medical use.

“We’re still a fairly conservative city,” he said.


The commission has given final approval to 13 dispensaries, but only three have opened so far.

Nate Bradley, executive director of the California Cannabis Industry Association, said he expects recreational use to be approved in November and that new state laws make California well-prepared.

“We went from having one paragraph to 88 pages,” said Bradley, referring to three state laws that went into effect Jan. 1.

The panel was criticized as ignorant by audience member Scott Chipman, leader of anti-marijuana group San Diegans for Safe Neighborhoods.


“This panel knows nothing about this issue,” said Chipman, contending they should have focused more on legalization increasing usage, homelessness and crime.