Missoula, no longer per capita cannabis heavyweight in US, advances new moratorium

However, the new ordinance will allow existing cannabis dispensaries to move locations, something that was prohibited under an ordinance adopted in 2024.

Apparently, dispensaries have been feeling pressure from landlords who have them locked into a lease, knowing they can't move.

"We've heard some businesses complain of predatory lease or commercial rental pressure, so relocation would help support them or prevent that," explained Maggie McCarthy, city business license and permit manager.

The new ordinance must be voted on by the full city council at a future Monday might meeting.

Essentially, the city is adopting a prohibition on new adult-use recreational cannabis dispensary business licenses to more align with the state's prohibition, which goes until July of 2027. 

"Extending the prohibition aligns the city’s timeline with the State of Montana’s extension of its cannabis licensure moratorium, while providing additional time for the City to implement and evaluate the effects of Title 22 (zoning code reforms)," McCarthy said. "This allows the city to assess how updated zoning standards affect dispensary locations, concentration, and nonconforming uses before determining whether additional local regulations are needed."

The moratorium has allowed Missoula to drop in the dispensary per capita rankings, according to Eran Pehan, the city's director of community, planning, development and innovation. At one point, the city acknowledged that Missoula had one of the highest rates in the U.S., and some websites even placed it at No. 1.

McCarthy also went in to more detail on why allowing businesses to move may be a good idea.

"The existing city language restricts currently licensed dispensaries from relocating, even when a proposed location would comply with applicable code requirements and regulations," she said. "Allowing existing city of Missoula licensed dispensaries to relocate to compliant locations maintains the prohibition on new, additional, dispensary licenses while addressing unintended impacts on existing businesses. This amendment may also reduce nonconforming uses in districts where dispensaries are currently located and support a more appropriate distribution of dispensary locations by allowing businesses to move from concentrated areas into zoning districts where the use is permitted."

There was no dissent on the proposed new ordinance from any city council members.