Washington Greenlights First Cannabis Dispensary, Paving Way for Legal Sales

By May 19, 2026 3 min read
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The city of Washington has taken a significant step towards legal adult-use cannabis sales with the Washington City Council’s approval of a special use permit for the city’s first dispensary. The 5-3 vote allows for the development of a Key Cannabis shop, marking a new chapter for the community.

Key Takeaways

  • The Washington City Council approved a special use permit for Key Cannabis.
  • The dispensary will be located at 2691 Centennial Drive.
  • The decision passed with a 5-3 vote, despite some opposition.
  • Tax revenue from the dispensary is earmarked for property tax relief and infrastructure improvements.

Council Debates and Decisions

The council’s decision followed a 30-minute discussion where alderpersons weighed the potential impacts of the new business. Supporters argued that a regulated dispensary could help reduce the amount of illegal marijuana in the city. Alderperson Michael Ernst expressed confidence in the community, stating that a legal, regulated business would not negatively impact the city’s family-friendly atmosphere. Alderperson Bobby Miller III echoed this sentiment, suggesting that regulated sales could actually decrease illicit marijuana activity.

However, dissenting votes from alderpersons Mike McIntyre, Todd Sluder, and Brandon Moss highlighted concerns. McIntyre cited a desire to focus on other opportunities for the city’s development, while Moss voiced apprehension about the "normalizing effect" of a visible cannabis business on young people, emphasizing the potential harm to developing brains.

Community and Resident Input

While the concept of a cannabis business has faced pushback in previous meetings, only one resident, Mary Lawless, spoke in opposition during the public comments. She expressed concerns about the influence on young people. Conversely, alderperson Paula Johnson noted that while some residents had voiced strong opposition via email, informal conversations with community members revealed a more varied perspective.

Alderperson Jamie Smith drew a comparison to the city’s four vape shops, highlighting that cannabis dispensaries operate under strict regulations, including age restrictions, security measures, product tracking, and mandated operating hours, with Washington only permitting one such establishment.

Financial Implications and Future Plans

Washington already has a 3% retail tax on cannabis products in place, in addition to the city’s 9% local sales tax. The council plans to consider future ordinances to allocate tax revenue from the dispensary towards property tax relief for residents and improvements to streets and sidewalks. Alderperson Miller proposed a 50/50 split for these funds.

Dispensary Details and Restrictions

Zepln Enterprises LLC, operating as Key Cannabis, plans to invest $2 million in a 2,800-square-foot facility on a nearly one-acre vacant lot at Centennial Drive and McClugage Road. Key Cannabis is the retail division of Elevate Cannabis. The dispensary will be subject to restrictions including operating hours from 10 a.m. to 7 p.m., no outdoor seating, and limitations on signage. All customers must be 21 or older.

Alderperson Jeff Blundy compared the dispensary to bars, suggesting that alcohol likely poses a greater public harm. The city’s code permits one of each type of adult-use cannabis business allowed in Illinois, and the Planning and Zoning Commission had previously recommended approval for Key Cannabis.

Other Council Business

In addition to the dispensary permit, the council also approved an ordinance restricting parking along Constitution Street near Cummings Lane due to safety and traffic flow concerns. They also approved a resolution committing the city’s local match for Surface Transportation Block Grant funding for roadwork on North Main Street and discussed an amended lease agreement with the Washington Historical Society. A resolution was also approved for the modernization of a traffic signal at Cummings Lane and Washington Road.

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B. Stewart
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B. Stewart

A contributor to ProsperPeoria.Com — your community resource for connecting people and businesses for success in Peoria, Illinois.

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