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Home My WebLink AboutOrdinance No. 2025-11 | Extension of Urgency Tobacco Retailer Interim Ordinance | Adopted 12/08/2025 ORDINANCE NO. 2025-11 AN EXTENSION OF AN URGENCY INTERIM ORDINANCE OF THE CITY OF GILROY PROHIBITING THE ISSUANCE OF TOBACCO RETAILER PERMITS FOR A PERIOD NOT TO EXCEED TEN (10) MONTHS AND FIFTEEN (15) DAYS WITHIN THE GILROY DOWNTOWN SPECIFIC PLAN AREA WHEREAS, the City of Gilroy (“City”) is a municipal corporation duly organized as a Charter City under the California Constitution and laws of the State of California; and WHEREAS, the City Council has broad discretion pursuant the California Constitution Article XI, Section 5, and the general laws of the state, including, but not limited to, the California Planning and Zoning Law (Gov. Code section 65000 et seq.) to legislate for public purposes and for the general welfare, including, but not limited to, matters of public healt h and safety; and WHEREAS, California Government Code Section 65858 sets forth procedures for the adoption of an urgency interim ordinance to prohibit the approval of applications for additional subdivisions, use permits, variances, building permits, and other applicable entitlements for uses that may be in conflict with a contemplated specific plan or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study; and WHEREAS, on November 7, 2005, the City adopted the Gilroy Downtown Specific Plan, which serves as the regulatory and design framework to guide redevelopment and revitalization of downtown Gilroy over a 20-year period, focusing on mixed-use development, economic vitality, walkability, and community cohesion, and are regulated within the Article XIV of the Gilroy Municipal Code titled “Downtown Specific Plan Districts” (Ord. No. 2019- 08; Gilroy Code Section 30.14 et seq.); and WHEREAS, Section V of the City of Gilroy Downtown Specific Plan holds a vision to serve as a primary retail and entertainment destination, with youth-oriented entertainment uses and a prohibition of adult stores; and WHEREAS, on November 17, 2014, the City adopted an Ordinance requiring all tobacco retailers to obtain a “Tobacco Retailer Permit” to ensure that retailers comply with tobacco control laws and City business standards (Ord. No. 2014-14; Gilroy Code Section 13.66 et seq.); and WHEREAS, in California, individuals under the age of 21 are prohibited from purchasing or using tobacco or cannabis products. This regulation is based on evidence that smoking is the leading cause of preventable disease and mortality worldwide. Smokeless tobacco is also associated with increased risk for several cancers, including those of the mouth, esophagus, and pancreas. Additionally, marijuana smoke contains many of the same toxins, irritants, and carcinogens found in tobacco smoke; and Docusign Envelope ID: 1F76A6A0-118F-4E08-B10D-89405800BA17 Ordinance No. 2025-11 Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 2 of 6 -2- WHEREAS, while the majority of tobacco retailers in the City operate in conjunction with another land use activity (i.e., part of a grocery store, liquor store, gas station, convenience store), in the past year-and-a-half, the City has seen a significant increase in the number of stand- alone “Smoke Shop” tobacco retail stores; and WHEREAS, staff has found higher per capita concentration of tobacco retailers in the City, as compared to neighboring cities and county areas, including the City of Morgan Hill, the City of Hollister, the unincorporated area of Santa Clara County and San Benito County; and WHEREAS, the prevalence of tobacco retail establishments within the Downtown Specific Plan Area of the City of Gilroy may contribute to various adverse effects because of the associated health risks and density to walkable areas where minors frequent. In addition, social and economic burdens due to smoking-related illnesses place demands on community health resources and increase healthcare costs. Tobacco retailer businesses can also be a target for theft and vandalism, as well as may be affiliated with the sale of illegal cannabis products and drug paraphernalia that encourage illegal activity. Hemp products have also been found to be sold in tobacco retailer businesses and smoke shops, with marketing aimed towards children featuring colorful packaging designs and sweet candy flavors. Cigarette butts and packaging contribute to litter and environmental degradation and character of the downtown area; and WHEREAS, tobacco retail stores have been a source of unlawful activities in the City, including April 2025, where the California Department of Tax and Fee Administration (CDTFA) and the City of Gilroy confiscated flavored tobacco products and hallucinogenic psilocybin that are illegal to sell from certain local tobacco retail businesses within the city limits; and WHEREAS, considering the foregoing findings and events that have taken place, the City Council finds that there is a current and immediate threat to public health, safety, and welfare, and that approval of additional tobacco retailer permits within the Downtown Specific Plan Districts would result in and exacerbate that threat to public health, safety and welfare; and WHEREAS, on November 3, 2025, the City Council adopted an urgency interim ordinance prohibiting the issuance of Tobacco Retailer Permits within the Gilroy Downtown Specific Plan Area for a period not to exceed 45 days, as permitted per California Government Code Section 65858; and WHEREAS, within the 45-day time frame, City staff drafted a 10-day Report, as required by California Government Code Section 65858(d), identifying key actions the City must take in order to alleviate the threat to public health, welfare, and safety associated with the adverse effects of tobacco products and retailers, such as addressing licensing enforcement, forming a team to evaluate appropriate locations for the type of use, reviewing best practices from other cities, analyzing police data for crime patterns, and compiling lists of current tobacco retailers in comparison to population density; and Docusign Envelope ID: 1F76A6A0-118F-4E08-B10D-89405800BA17 Ordinance No. 2025-11 Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 3 of 6 -3- WHEREAS, due to the associated findings within the 10-day Report, staff recommends the City Council adopt an extension to the prohibition of issuance of Tobacco Retailer Permits within the Downtown Specific Plan Area; and WHEREAS, on December 8, 2025, in accordance with State law, the City Council provided due consideration of all evidence presented and provided in the entire administrative record and held a duly noticed public hearing and took testimony regarding this extension of an urgency interim ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I. Recitals. The above recitals are true and correct and hereby adopted as the City Council’s findings. SECTION II. Purpose and Authority. In the interest of protecting the health, safety, and welfare of the residents in the City of Gilroy, it is the purpose and intent of this urgency interim Ordinance to place a temporary moratorium on the issuance of any new permit, license, or other entitlement for any tobacco retailer business within the downtown area of the City of Gilroy. This includes any new permit, license, or other entitlement for the relocation or physical expansion of existing business falling under the definition of a tobacco retailer business as defined in Gilroy Municipal Code Section 13.66. The City Council has authority to adopt this Ordinance pursuant to California Government Code Section 65858 as an extension of an urgency measure prohibiting any use that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City is considering or studying. SECTION III. Findings. The City Council hereby finds and determines that potentially future tobacco retailer businesses in the City of Gilroy constitute an immediate threat to public health, safety, and welfare. The approval of additional entitlements for Tobacco Retailer Permits and approval of the relocation or physical expansion of existing tobacco retailer business within the Downtown Specific Plan Area under the City’s current regulations will further threaten the public health, safety, and welfare. The adoption of the extension of the urgency interim Ordinance is therefore necessary for the immediate protection of public health, safety, and welfare. The above recitals are incorporated herein by reference as true and correct as the Council’s findings. SECTION IV. Extension of Moratorium This Ordinance extends the temporary moratorium on the issuance of any Tobacco Retailer Permit within the Gilroy Downtown Specific Plan Area, as set forth by Chapter 13 Article VIII Docusign Envelope ID: 1F76A6A0-118F-4E08-B10D-89405800BA17 Ordinance No. 2025-11 Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 4 of 6 -4- (Tobacco Retailer Permit) of the Gilroy Municipal Code in the City of Gilroy. This temporary moratorium shall not apply to the renewal of an existing tobacco retailer’s permit previously issued by the City of Gilroy. SECTION V. Violation. Except as otherwise permitted under the extension of the urgency interim Ordinance, the establishment, relocation, or physical expansion of a Tobacco Retailer Business within city limits is declared to be a public nuisance. Violations of this urgency interim Ordinance may be enforced by any applicable laws or ordinances, including, but not limited to, injunctions or administrative or criminal penalties under the Gilroy Municipal Code. SECTION VI. Term of Ordinance. The extension of the urgency interim Ordinance shall be in effect from the date of adoption for a period of ten (10) months and fifteen (15) days, unless it is extended pursuant to California Government Code Section 65858 or other applicable law, as approved by the City Council. SECTION VI I. Severability. If any section, subsection, subdivision, sentence, clause or phrase of the extension of the urgency interim Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this urgency interim Ordinance. The City Council hereby declares that it would have passed this urgency interim Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, or phrases may be declared unconstitutional or otherwise invalid by a court of competent jurisdiction. SECTION VIII. CEQA Determination The extension of the urgency interim Ordinance is exempt from environmental analysis under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15262, 15060(c)(2), 15060(c)(3), and Section 15061(b)(3) as it can be seen with certainty that this Ordinance has no possibility of having a significant environmental effect, as it merely preserves the status quo in accordance with Government Code Section 65858 in the interest of evaluating and preventing potential harms related to tobacco sales. SECTION IX. Effective Date. The extension of the urgency interim Ordinance, passed by at least a four-fifths vote of the City Council, is declared to be an interim urgency Ordinance for preserving the public health, safety, and welfare and shall take effect and be enforced immediately upon adoption pursuant to Government Code Section 36937(b). Docusign Envelope ID: 1F76A6A0-118F-4E08-B10D-89405800BA17 Ordinance No. 2025-11 Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 5 of 6 -5- SECTION X. Publication. The City Clerk shall cause this Ordinance to be published, or summary thereof, one time within fifteen (15) days upon passage and adoption in a newspaper of general circulation, such as the Gilroy Dispatch. PASSED AND ADOPTED by the City Council of the City of Gilroy this 8th day of December 2025, by the following vote: AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON, MARQUES, RAMIREZ, BOZZO NOES: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE APPROVED: Greg Bozzo, Mayor ATTEST: ___________________________ Kim Mancera, City Clerk Docusign Envelope ID: 1F76A6A0-118F-4E08-B10D-89405800BA17 Ordinance No. 2025-11 Extension of Prohibition on Issuance of Tobacco Retailer Permits City Council Regular Meeting | December 8, 2025 Page 6 of 6 -6- CERTIFICATE OF THE CLERK I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2025-11 is an original ordinance, or true and correct copy of a City Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, December 8, 2025, with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Wednesday, December 10, 2025. ____________________________________ Kim Mancera City Clerk of the City of Gilroy Docusign Envelope ID: 1F76A6A0-118F-4E08-B10D-89405800BA17