The Avalon City Council discussed legalizing recreational cannabis at the council’s Oct. 21 meeting.
No formal action was taken.
The idea received no support from four of the five council members. Councilmember Mary Schickling requested the discussion be put on the agenda. Schickling sees a potential source of revenue for the city.
This was not the first time the council has discussed the subject. (See “Council has conversation about recreational cannabis,” at thecatalinaislander.com.)
City Manager David Maistros said staff was looking for definitive direction from staff on the entire council’s desire to pursue legalization.
Background
“During the September 17, 2024 City Council Meeting, City Staff provided a feasibility analysis regarding a store front adult-use/recreational facility, the community’s desire/interest in the facility, and projected economic and other impacts,” wrote Senior Management Analyst Devin Hart in her staff report to the Oct. 21, 2025 meeting.
“Included in that staff report were the pervious election results on this issue reflecting 58% of the residents opposed expanding the existing medical delivery to allow for adult use/recreational and over 65% opposed allowing storefront location or dispensary in the City,” Hart wrote.
According to her report, in August 2025, the council issued a commercial cannabis permit Catalina Cannabis, LLC for medical cannabis. Before that, the only available medical cannabis permit had not been used for four years.
Discussion
Schickling argued that recreational cannabis would be an additional income stream for Avalon.
Maistros said staff attached a Sept. 17 staff report to the agenda package that included revenue analysis.
“Using 5.0% as the basis of estimate-, Avalon would generate an estimated $2.4 million in taxable sales from Adult-Use Cannabis,” Hart wrote in September 2025.
The September report put potential sales tax revenue at a low of $50,000 (at a 5% tax rate) to a high of $150,000 (at a 15% tax rate) based on $1 million in cannabis sales. If there were $18 million in cannabis sales, according to the report, the revenue could range from $900,000 (at a 5% tax rate) to $2.7 million (at a 15% tax rate).
This week, Maistros told the council that he did not think Avalon would be able to sustain a 15% tax on cannabis.
He said Avalon was looking at generating on a middle ground 10% tax rate revenue of $500,000. “We’d need $5 million annually of cannabis sales to be able to generate that,” Maistros said.
“We’re not really open 24/7, 365 days a year,” Marshall said.
Mayor Marshal speculated that the revenues might be less because she didn’t think people would come over in the winter time just because of the cannabis.
Schickling said: “We have cruise ships.”
According to Marshall, cruise ship passengers would smoke on the street because they would not be allowed to take the cannabis back to the ship.
Schickling suggested someone with a cannabis license could open a lounge.
“I’m not excited about seeing a storefront in our commercial district in our commercial zone because it is so small,” Marshall said.
Schickling said it was up to the person with a license to find a spot.
“Everybody’s houses are so close together,” Marshall said.
“I personally like the smell, but there’s a lot of people in town who really do not like the smell,” Marshall said.
“I will say we have a million visitors. We’re not stopping them from bringing it over,” said Councilmember Yesenia De La Rosa.
Maistros said recreational cannabis has been on a ballot twice in Avalon and resoundingly rejected twice. He was referring to elections in 2016 and 2020. Maistros said it was speculative to say what one store would generate.
City Attorney Scott Campbell, talked to city attorneys in cities listed in the 2017 report. According to Campbell, cannabis has had some economic benefit but it has largely been that those cities wanted to provide the ability to have cannabis to their residence for personal needs or medical needs.
Marshall asked if the city could tax medical cannabis.
“It would have to go to the voters,” Campbell said.
Schickling asked if the city could amend an existing permit to allow recreational cannabis.
Campbell said only way to get tax money would be to amend the ordinance concurrently with a ballot measure.
“The most common complaint I get on cruise ships when people come in is cruise ship people are here, they’re on the street, they’re on Front Street either drinking or smoking weed,” Maistros said.
He also said that because Avalon doesn’t have a dispensary, cruise ships don’t have to check when people are getting back on board. “There would have to be mechanisms to check when they’re getting back on if we’re having a dispensary,” Maistros said.
“Just last council meeting, we approved a port agreement for Disney under this theory of, oh, we’re this family-friendly destination. We want to be partners with Disney,” Maistros said.
“I don’t know if that’s consistent,” Maistros said.
“I think cannabis is family-friendly,” Schickling said.
“I would be a no,” said Councilmember Michael Ponce.
“The community has enough issues with consumption of different things,” Ponce said.
“We don’t need to have a dispensary,” Ponce said.
De La Rosa said she appreciated Schickling looking into this. “But I do feel, hearing from everybody else, it looks like were not headed there just yet,” De La Rosa said.
Councilmember Lisa Lavelle said she knew the “mentality” about marijuana had changed a lot in the last 10 to 20 years but she didn’t know if it had changed enough for Schickling’s proposal to happen.
