Chicago regulates cannabis dispensary locations through the Cannabis Zoning Ordinance (Zoning 17-9-0129.3), requiring special use permits from the Zoning Board of Appeals and maintaining distance requirements from schools and a Downtown Exclusion Zone.
The Cannabis Zoning Ordinance (amended September 2021) permits adult-use dispensaries in certain Commercial (C), Downtown (D), Manufacturing (M), and Planned Manufacturing (PMD) zoning districts with a special use permit from the Zoning Board of Appeals (ZBA). The 2021 amendment eliminated the previous lottery system. Dispensaries must be at least 500 feet from any school (measured property line to property line). The Downtown Exclusion Zone prohibits dispensaries in the Central Business District roughly bounded by Division Street to Van Buren Street between State Street and Michigan Avenue, with extensions along Michigan Avenue to 16th Street and the Navy Pier area. Applicants must submit property owner consent, hold community meetings in the ward, and obtain a zoning opinion letter from DPD. Craft growers, processors, and infusers may locate by right in certain M districts if 660+ feet from residential zones.
Operating without required special use approval carries zoning violation fines of $250 to $1,000 per day. Operating within the exclusion zone or within 500 feet of a school may result in immediate closure and license revocation.
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