Medical marijuana dispensaries are a step closer to being allowed to operate in Palm Springs.

A draft ordinance reviewed Wednesday by the Palm Springs City Council would prohibit for-profit dispensaries, but allows not-for-profit businesses in areas zoned for industrial use. It will be forwarded to the Planning Commission to hammer out the details. The council voted 4-1, with Councilman Lee Weigel voting no.

“I am extremely proud of the city (of) Palm Springs,” Mayor Steve Pougnet said. “There are a lot of other cities that have said no (to dispensaries)… there are patients that need this.”

Under the draft ordinance, facilities would need to be at least 500 feet from schools, public parks, playgrounds and residential areas.

City Attorney Doug Holland said the combination of state guidelines and the limitation of dispensaries to industrial areas should keep too many businesses from opening in Palm Springs.

The law would also allow the city to close at least two dispensaries it has allowed to stay in business on Palm Canyon Drive — Community Caregivers and the Collective Apothecary of Palm Springs, or C.A.P.S.

Holland said these two businesses are illegal.

Those who spoke during the meeting Wednesday voiced relief that a new law will go into effect after more than two years of trying to develop an ordinance for the city.

Weigel, however, said he was concerned about drugs being sold on the street and about how other cities in the Coachella Valley have prohibited dispensaries.

“I don't want Palm Springs to be the place where they will all go,” Weigel said.

Mayor Pro Tem Ginny Foat said the number of collectives will be monitored because they will be limited to the few industrial areas in the city.

“I would be very pleased if they could go to Walgreen's and have their prescription filled,” Foat said.