The Morro Bay City Council voted Tuesday to permit two medical marijuana dispensaries and deliveries. However, the council decided not to permit the sale or delivery of recreational marijuana.

Several speakers argued that the beach community would lose revenue if it restricts recreational pot sales.

“Allowing only medical and not adult-use delivery services and dispensaries in Morro Bay will severely limit the amount of revenue the city can make out of cannabis sales since consumers will just hop on over to the next beach town which does allow adult use,” said Megan Souza with Megan’s Organic Market.

The council also agreed to ban all commercial cultivation, manufacturing and testing of marijuana.

The council then asked city staff to draft an ordinance to be brought back to the council in early October with plans to have the ordinance implemented in January.