To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Public Hearing
Vote Requirement: Majority
SUBJECT:
title
Revocation of 22 permits due to Unpaid Measure S Taxes and Planning Fees
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Open the public hearing, receive, and consider the staff report and accept public comment; and
2. Close the public hearing; and
3. Adopt the resolution (Attachment 1) which does the following:
a. Finds the permits have been exercised contrary to the terms and conditions of approval; and
b. Revoke the 22 Permits per Section 312-14 of the Humboldt County Code.
4. Direct the Clerk of the Board to provide a certified board order to the Planning and Building staff to be included with the notification of decision to the appropriate parties.
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
Executive Summary
This item requests the Board of Supervisors revoke the 22 approved Permits for cannabis cultivation due to the permits being exercised contrary to the terms, requirements, and conditions of approval.
On Oct. 24, 2023, the Board of Supervisors received a report that there are approximately $14 million in unpaid Measure S Taxes and $2.1 million in unpaid permit processing costs associated with cannabis permit applications. The Board directed a series of actions to address these conditions. That direction resulted in a series of communications to applicants and permit holders to inform them of the needed actions and deadlines to keep their permits in good standing. This included a detailed Jan. 9, 2024, letter, emails, and social media announcements applicants and permit holders to bring their account current before March 31, 2024. Each of these projects were suspended last year due to failure to bring their accounts current and they remain out of compliance.
Revocation of these permits is appropriate due to permit holders’ failure to pay required Measure S taxes as outlined in Humboldt County Code 314.55.4.12.2.9 as well as the failure to pay accumulated permit costs to the Humboldt County Planning and Building Department as conditioned by the permit.
Before the Board of Supervisors consideration are 22 permits, six Zoning Clearance Certificates, six Special Permits, and 10 Conditional Use Permits, under the Commercial Medical Marijuana Land Use Ordinance (CMMLUO) described below:
1. PLN-13289-SP, Liam Austin APN 216-073-009: Revocation of a special permit for 8,000 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $4,096.73 and unpaid Measure S taxes of $4,991.00 and has NOT established a payment plan for those taxes owed.
2. PLN-11581-CUP Humboldt Harvest Moon LLC, APN 217-246-002: Revocation of a conditional use permit for 11,500 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $1,233.90 and unpaid Measure S taxes of $970.31 and has NOT established a payment plan for those taxes owed.
3. PLN-12659-CUP Substantial Green Inc, APN 217-401-003: Revocation of a special permit for 11,425 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid departments invoice and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $2,528.74 and unpaid Measure S taxes of $14,146.54 and has NOT established a payment plan for those taxes owed.
4. PLN-12746-ZCC Ashley Mavon, APN 218-031-002: Revocation of a special permit for 4,522 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $3,355.93 and unpaid Measure S taxes of $8,578.69 and has NOT established a payment plan for those taxes owed.
5. PLN-12966-CUP PCC Holdings LLC, APN 218-121-005: Revocation of a special permit for 15,000 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $4,150.73 and unpaid Measure S taxes of $37,308.75 and has NOT established a payment plan for those taxes owed.
6. PLN-11460-CUP Humboldt Natural Collective, APN 221-111-027: Revocation of a special permit for 9,850 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $3,222.64 and unpaid Measure S taxes of $22,807.69 and has NOT established a payment plan for those taxes owed.
7. PLN-13180-CUP Fertilia / Dimitar Zaykov, APN 221-202-001: Revocation of a special permit for 18,200 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoice and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $2,723.71 and unpaid Measure S taxes of $29,455.78 and has NOT established a payment plan for those taxes owed.
8. PLN-12229-CUP Alfred Tix, Jr, APN 223-123-007: Revocation of a special permit for 7,500 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $948.57 and unpaid Measure S taxes of $4,065.00 and has NOT established a payment plan for those taxes owed.
9. PLN-12248-SP Two Bit Ranch LLC, APN 223-124-003: Revocation of a special permit for 7,832 square feet of existing outdoor cannabis cultivation. A past due department invoice was sent to the applicant on April 24, 2024, noting it had gone to collections and must be paid within 30-days. The above-referenced permit had unpaid department invoice amounts of $872.47 and unpaid measure S taxes of $529.14 and had NOT established a payment plan for those taxes owed.
10. PLN-11355-ZCC Chamise Creek Farms LLC, APN 223-131-004: Revocation of a special permit for 4,950 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid Department invoice amounts of $2,691.21 and unpaid Measure S taxes of $6,469.40 and has NOT established a payment plan for those taxes owed.
11. PLN-12768-SP Otto Farms LLC, APN 317-033-006: Revocation of a special permit for 7,620 square feet of existing outdoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $5,972.60 and unpaid Measure S taxes of $23,206.59 and has NOT established a payment plan for those taxes owed.
12. PLN-12241-ZCC Yeti Enterprises LLC, APN 510-211-053: Revocation of a Zoning Clearance Certificate for 4,775 of new indoor cannabis cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $972.93 and unpaid Measure S taxes of $4,931.86 and has NOT established a payment plan for those taxes owed.
13. PLN-12249-ZCC Yeti Enterprises, APN 510-211-057: Revocation of a Conditional Use Permit for 1,300 square feet of new indoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $972.93 and unpaid Measure S taxes of $658.71 and has NOT established a payment plan for those taxes owed.
14. PLN-13161-CUP Born & Raised LLC, APN 512-171-023: Revocation of a Conditional Use Permit for 10,000 square feet of new outdoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $5,126.92 and unpaid Measure S taxes of $10,606.00 and has NOT established a payment plan for those taxes owed.
15. PLN-11947-SP Royal Leif Farms LLC, APN 522-031-006: Revocation of a Special Permit for 9,439 of existing outdoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoice and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $974.08 and unpaid Measure S taxes of $1,592.83 and has NOT established a payment plan for those taxes owed.
16. PLN-13160-CUP Three Creeks Holdings LLC, APN 522-032-011: Revocation of a Conditional Use Permit for 10,000 square feet of existing mixed-light cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $4,792.07 and unpaid Measure S taxes of $41,168.92 and has NOT established a payment plan for those taxes owed.
17. PLN-11474-ZCC Daryl Mason, APN 522-491-023: Revocation of a Zoning Clearance Certificate for 10,000 square feet of new outdoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $2,181.60 and unpaid Measure S taxes of $18,405.10 and has NOT established a payment plan for those taxes owed.
18. PLN-13164-CUP South Fork River Ranch LLC, APN 524-114-005: Revocation of a Conditional Use Permit for 18,200 square feet of existing outdoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $5,079.44 and unpaid Measure S taxes of $12,935.65 and has NOT established a payment plan for those taxes owed.
19. PLN-12810-SP Humboldt's Green Heart LLC, APN 529-211-009: Revocation of a Special Permit for 10,000 square feet of existing outdoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $4,350.47 and unpaid measure S taxes of $24,872.50 and has NOT established a payment plan for those taxes owed.
20. PLN-12921-ZCC Merry Whether Farms LLC, APN 209-321-015: Revocation of a Zoning Clearance Certificate for 4,800 square feet of existing outdoor cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoice and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $500.62 and unpaid Measure S taxes of $5,665.44 and has NOT established a payment plan for those taxes owed.
21. PLN-12750-CUP John Piccirilli LLC, APN 522-024-004: Revocation of a Conditional Use Permit for 7,704 square feet of existing mixed-light cultivation. A letter was sent to the permit holder on April 24, 2024, suspending the permit due to unpaid department invoices and the failure to establish a payment plan for Measure S taxes. The above-referenced permit has unpaid department invoice amounts of $3,821.07 and unpaid Measure S taxes of $80,958.20 and had NOT established a payment plan for those taxes owed.
22. PLN-12771-SP Otto Farms LLC, APN 210-106-011: Revocation of a Special Permit for 4,999 square feet of mixed light cultivation. A letter was sent to the permit holder on June 18, 2024 suspending the permit due to unpaid department invoice amounts of $3,700.16 and unpaid Measure S taxes of $7,107.90 and the fact that it had NOT established a payment plan for those taxes owed. These have not been resolved.
SOURCE OF FUNDING:
There is no identified funding source for this action. This is funded by the General Fund Contribution to department operations. The unpaid Planning Department invoices for these 22 permits totaled $64,269.62, not counting the time spent preparing these permits for this hearing, which has not yet been invoiced.
FINANCIAL IMPACT:
There are no funds that have been identified to cover the costs of processing this revocation. The unpaid Measure S taxes from these 22 permits total $361,432.00.
OTHER AGENCY INVOLVEMENT:
Humboldt County Tax Collector
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to revoke the Permits. The Planning and Building Department does not recommend this because of the continued cost of permitting and inspections, as well as the potential continued loss of tax funds and operator fees.
ATTACHMENTS:
NOTE: The attachments supporting this report have been provided to the Board of Supervisors; copies are available for review in the Clerk of the Board's Office.
1. PLN-11355 Draft Resolution
2. PLN-11460 Draft Resolution
3. PLN-11474 Draft Resolution
4. PLN-11581 Draft Resolution
5. PLN-11947 Draft Resolution
6. PLN-12229 Draft Resolution
7. PLN-12241 Draft Resolution
8. PLN-12248 Draft Resolution
9. PLN-12249 Draft Resolution
10. PLN-12659 Draft Resolution
11. PLN-12746 Draft Resolution
12. PLN-12750 Draft Resolution
13. PLN-12768 Draft Resolution
14. PLN-12771 Draft Resolution
15. PLN-12810 Draft Resolution
16. PLN-12921 Draft Resolution
17. PLN-12966 Draft Resolution
18. PLN-13160 Draft Resolution
19. PLN-13161 Draft Resolution
20. PLN-13164 Draft Resolution
21. PLN-13180 Draft Resolution
22. PLN-13289 Draft Resolution
PREVIOUS ACTION/REFERRAL:
Meeting of: March 2, 2023, January 10, 2019, October 1, 2020, August 15, 2019, August 28, 2020, April 1, 2021, November 30, 2023, December 2, 2021, August 1, 2019, February 7, 2019, October 19, 2023, March 5, 2020, November 3, 2022, November 4, 2021, June 20, 2019
File No.: 23-267, 11581, 20-1283, 19-1203, 20-1017, 21-389, 23-1557, 12768, 19-1149, 12966B, 23-1410, 20-267, 22-1489, 21-13180, 19-970