Auburn Cannabis Dispensary: Council Picks Highway 49 Zones

The Auburn City Council voted this week to rezone three Highway 49 zones for the city’s first Auburn cannabis dispensary, leaving downtown out, with final adoption of the ordinance expected in December 2026.

The Auburn City Council voted at its meeting on Monday, Nov. 9, 2026, to rezone three zones along Highway 49 for cannabis retail, a step toward the city’s first licensed Auburn cannabis dispensary. For Placer County business owners and commercial property owners, the decision opens a new kind of storefront tenant in Auburn and a new source of sales tax revenue for city services, according to reporting by Abridged by PBS KVIE.

A proposed downtown zone was dropped. The Council first split 2-2 on allowing a downtown location after one councilmember recused herself over a conflict of interest, and the two members who supported downtown agreed to remove it so the broader ordinance could move forward. Community surveys from late 2025 found that more than half of respondents preferred a Highway 49 location, while 36 percent preferred downtown.

The Council is expected to adopt the ordinance in December 2026. It would repeal the city’s ban on marijuana businesses and allow one retail permit per 8,500 residents, capped at two permits. Only one permit will be issued for now. In 2027, the city plans to pass a resolution that sets fees and the application process, and an independent committee would likely review applications and make recommendations, with the City Council making the final choice. Several businesses have already expressed interest.

Where the shop will go is still open, partly because vacant space in the approved zones is limited. Jonathan Wright, Auburn’s economic development director, said he hopes landlords will make room for an operator, possibly through tenant relocation or shared space. Chris Haupt, president of the Downtown Auburn Business Association, said many downtown members were disappointed, but that a dispensary anywhere in town could help the tax base and draw visitors.

Today, Placer County’s only storefront dispensary is in Colfax, and the Lincoln City Council has approved a pilot program for six cannabis businesses, including two retail dispensaries. Property owners along Highway 49 who want to be considered should watch the December Council agenda and the fee and application rules that follow in 2027.

Key takeaways

Auburn plans one cannabis retail permit for now (one per 8,500 residents, maximum two), limited to three Highway 49 zones; downtown is out.
Final adoption of the ordinance is expected in December 2026; fees and the application process come by resolution in 2027.
An independent committee would likely rank applicants, and the City Council would make the final decision.