The move would make Oakland the first city in the nation to license wholesale pot cultivation.
City leaders are expected to vote Tuesday. If the measure passes, it would still need to be approved on a second, final vote.
Supporters of the measure say it could generate millions of dollars for Oakland in taxes and sales, create hundreds of jobs and position Oakland to reap dividends if voters pass a November initiative to legalize recreational use of marijuana.
Opponents say it would drive small growers out of business.