The Dixon City Council has approved changes to its municipal code to allow cannabis dispensaries to operate drive-thru pick-up windows and expand their business hours. The local policy shift aligns municipal regulations with updated state legislation, clearing the path for the city's sole dispensary to expand its service options and seek approval for medical cannabis sales.
The regulatory adjustments in Dixon follow statewide legislative updates that took effect after Gov. JB Pritzker signed Senate Bill 3222 into law on June 12. Following the enactment of the new state statute, local leaders voted to amend Dixon’s local ordinance so that home-rule and municipal guidelines match the state's modernized cannabis operational standards.
The updated rules directly impact Terrabis, an adult recreational-use cannabis dispensary located at 1679 S. Galena Ave. Terrabis is currently the only operating cannabis retail establishment within Dixon city limits, making it the exclusive local business eligible to utilize the newly authorized operational provisions.
Terrabis launched its Dixon retail facility in December 2024. The business is located along the South Galena Avenue commercial corridor near Interstate 88, serving as an anchor within the city’s broader Gateway Project economic development area that hosts several other new commercial enterprises.
Under the amended municipal ordinance, licensed dispensaries in Dixon are now permitted to distribute regulated cannabis products through a dedicated drive-up service window. The revision also extends allowable daily in-store retail operating times by one additional hour and creates a specific schedule for drive-thru transactions.
According to the newly established local schedule, dispensaries within Dixon are authorized to conduct in-store retail transactions from 7 a.m. to 10 p.m. For drive-thru lanes, the ordinance permits sales to begin as early as 6 a.m. and run as late as 1 a.m.
State-level statutory changes permit cannabis dispensaries to conduct retail business until 2 a.m., provided they first secure explicit authorization from their host municipal government, according to the Illinois Department of Financial and Professional Regulation. Terrabis currently operates under a schedule of 9 a.m. to 10 p.m. Monday through Saturday, and 9 a.m. to 5 p.m. on Sunday.
Dixon Building Official Tim Shipman confirmed that municipal staff members have entered into preliminary discussions with Terrabis leadership regarding the company’s intent to build and open a drive-thru pick-up window at the South Galena Avenue facility.
Shipman noted that while early administrative dialogue has taken place between city officials and dispensary management, Terrabis has not yet established or communicated a formal construction timeline for the proposed physical modifications.
Before any construction on a drive-thru window can begin, the dispensary must submit a formal building permit application to the city of Dixon. Shipman noted that the municipality has not yet received a completed building permit application from the business.
In addition to municipal building authorizations, dispensaries seeking to launch drive-up services must undergo a formal review and approval process with the Illinois Department of Financial and Professional Regulation. The state agency requires an evaluation of the retailer's facility floor plans, security measures, and standard operating protocols related to drive-thru transactions.
Shipman remarked that Terrabis appears to have anticipated potential regulatory updates when originally designing its Dixon building. He indicated that the retailer planned its initial commercial layout in a manner that facilitates adding a functional exterior pick-up window without requiring an entire structural overhaul.
Dixon is not the only market where the dispensary operator is pursuing drive-thru capabilities. According to Shipman, Terrabis is undertaking similar permitting and regulatory processes across its other Illinois retail locations.
Beyond its Dixon storefront, Terrabis operates Illinois cannabis dispensaries in Grayville, Plainfield, Mundelein, and Woodstock, along with four retail dispensaries in neighboring Missouri, according to company records.
Alongside the physical drive-thru proposal, Terrabis is working to secure an Illinois medical cannabis dispensary license. Shipman noted that the addition of medical cannabis sales involves state-level licensing and will not require further modifications to Dixon's local municipal code.
Under the amended state cannabis statute, any active adult-use dispensary in good standing with state regulators is eligible to opt in for a medical dispensary license, subject to approval from the Illinois Department of Financial and Professional Regulation.
Securing a medical license allows dispensaries to sell cannabis products to qualified medical patients at the state’s medical tax rate up to each patient's legal allotment. Under state regulations, retailers are legally prohibited from separating their adult-use and medical operations, either within the physical walls of the retail facility or throughout the business's ownership structure.
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