To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Public Hearing
Vote Requirement: Majority
SUBJECT:
title
Revocation of 24 Cannabis Permit Applications Due to Failure to Pay Outstanding Balances to the County Planning and Building Department (PLN-10243-ZR, PLN-10654-ZCC, PLN-11258-ZCC, PLN-11426-CUP, PLN-11553-CUP, PLN-11632-CUP, PLN-11919-CUP, PLN-11952-CUP, PLN-12031-ZCC, PLN-12081-CUP, PLN-12084-SP, PLN-12264-SP, PLN-12628-SP, PLN-12733-SP, PLN-12747-SP, PLN-12926-SP, PLN-12986-CUP, PLN-13081-SP, PLN-13117-SP, PLN-13340-SP, PLN-13349-CUP, PLN-13352-ZCC, PLN-2021-17253, PLN-12187-ZCC)
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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 resolutions (Attachment 1-24) which do the following:
a. Finds that the permits have been exercised contrary to the terms and conditions of approval; and
b. Revokes the 24 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 Department 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 24 approved Permits for cannabis cultivation due to the permits being exercised contrary to the terms, requirements, and conditions of approval. Specifically, these permits are recommended for revocation due to a failure to pay outstanding balances accrued with the Planning and Building Department.
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 permit holders 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 for 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 is appropriate due to permit holders’ requirement to pay required fees to the Humboldt County Planning and Building Department as conditioned by the permit and required by ordinance. Pursuant to Section 312-14 of the Humboldt County Code, if suspended permits have not resolved their violations within six months, the permit is required to be scheduled for a revocation hearing with the Board of Supervisors.
Before the Board of Supervisors’ consideration there are twenty-four permits previously approved under the Commercial Medical Marijuana Land Use Ordinance (CMMLUO) described below:
1. PLN-10243-ZR; MCMP Humboldt, LLC; APN 522-491-017-000:
Revocation of a Special Permit for cannabis products manufacturing. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $16,323.33 due to the Humboldt County Planning and Building Department. This was primarily related to a zone reclassification processed at the same time as the cannabis permit application. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
2. PLN-10654-ZCC; Humboldt Cheeba Works, LLC - Zoning Clearance Certificate; APN 212-051-003-000:
Revocation of a Zoning Clearance Certificate for 4,995 square feet of existing, outdoor, medical cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $2,374.92 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
3. PLN-11258-ZCC; Sean O'Connor - Zoning Clearance Certificate; APN 404-111-008-000:
Revocation of a Zoning Clearance Certificate for 4,960 square feet of existing cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $1,630.32 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
4. PLN-11426-CUP; Aleksandrov - Conditional Use Permit; APN 220-071-008-000:
Revocation of a Conditional Use Permit for the continued operation of an existing 22,000 square foot (SF) mixed light cannabis cultivation On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $5,796.95 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
5. PLN-11553-CUP; Keith Chittenden - Conditional Use Permit; APN 221-181-033-000:
Revocation of a Zoning Clearance Certificate for an existing 3,500 square foot outdoor medical cannabis cultivation operation in greenhouses. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $975.56 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
6. PLN-11632-CUP; Sticky Finger Farms LLC - Conditional Use Permit; APN 223-123-001-000:
Revocation of a Conditional Use Permit to allow an existing 21,150 square foot (SF) of cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $2,331.79 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
7. PLN-11919-CUP; Jesse Carnes - Conditional Use Permit; APN 314-191-014-000:
Revocation of a Conditional Use Permit to allow the continued operation of an existing 22,000 square foot (SF) outdoor cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $9,092.50 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
8. PLN-11952-CUP; Tony Palamara - Conditional Use Permit; APN 216-261-053-000:
Revocation of a Conditional Use Permit to allow an existing 24,000 square foot (SF) cannabis cultivation operation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $10,742.88 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
9. PLN-12031-ZCC; David Del Rio - Zoning Clearance Certificate; APN 512-211-004-000:
Revocation of a Zoning Clearance Certificate for 4,950 square feet (sf) of pre-existing mixed-light commercial cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $2,044.11 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
10. PLN-12081-CUP; First MC Processing, LLC - Conditional Use Permit; APN 032-012-001-000:
Revocation of an issued Special Permit (SP) for a commercial medical cannabis processing and distribution facility, and an SP for a parking exception. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $3,640.20 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
11. PLN-12084-SP; MC Marketing Group, LLC - Special Permit; APN 032-012-001-000:
Revocation of a Special Permit for wholesale distribution of medical cannabis and medical cannabis products between license types. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $3,221.86 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
12. PLN-12264-SP; Greg Sayles - Special Permit; APN 221-221-028-000:
Revocation of a Special Permit for 10,000 square feet (SF) of outdoor cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $11,370.07 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
13. PLN-12628-SP; Nathan Davis - Special Permit; APN 216-382-059-000:
Revocation of a Special Permit for 7,948 square feet (SF) of existing outdoor cannabis cultivation with 240 SF of ancillary propagation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $7,156.96 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
14. PLN-12733-SP; Emerald Triangle Group LLC - Special Permit; APN 032-051-032-000:
Revocation of a Special Permit for a cannabis distribution facility, and a Special Permit for a commercial cannabis manufacturing facility. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $3,033.91 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
15. PLN-12747-SP; Emerald Triangle Group LLC, Co. - Special Permit; APN 032-051-032-000:
Revocation of a Special Permit is requested for a commercial cannabis manufacturing facility. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $3,033.91 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
16. PLN-12926-SP; Robert G Thompson - Special Permit; APN 220-021-005-000:
Revocation of a Special Permit for the continued operation of an existing 5,400-square-foot outdoor cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $1,193.04 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
17. PLN-12986-CUP; Nichter - Conditional Use Permit; APN 223-072-010-000:
Revocation of a Conditional Use Permit for 34,000 square feet of existing, outdoor, medical cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $1,181.60 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
18. PLN-13081-SP; Rabbit Ridge Ranch, LLC - Special Permit; APN 107-232-008-000:
Revocation of a Special Permit for 10,000 square feet (sf) of existing cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $1,596.80 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
19. PLN-13117-SP; Big Rock Farms, Inc - Special Permit; APN 101-061-003-000:
Revocation of a Special Permit to allow for a microbusiness comprised of 1,600 square foot nursery, distribution, non-volatile infusion, and non-storefront retail. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $2,827.14 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
20. PLN-13340-SP; Cedar Farm West, LLC - Special Permit; APN 317-055-001-000:
Revocation of a Special Permit for 9,000 sq. ft. of pre-existing outdoor cannabis cultivation On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $3,210.79 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
21. PLN-13349-CUP; Cedar Farm South - Conditional Use Permit; APN 317-055-009-000:
Revocation of a Conditional Use Permit for 17,200 SF of pre-existing outdoor cannabis cultivation with 1,700 SF of ancillary propagation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $4,085.85 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
22. PLN-13352-ZCC; Amy Gaskill- Zoning Clearance Certificate; APN 208-113-004-000:
Revocation of a Zoning Clearance Certificate for 5,000 sf of outdoor commercial cannabis cultivation. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $1,102.46 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
23. PLN-2021-17253; Bareilles - Conditional Use Permit; APN 201-322-006-000:
Revocation of a Conditional Use Permit for one acre of new mixed-light commercial cannabis On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $2,166.38 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
24. PLN-12187-ZCC; Humboldt’s Full Sun Farms - Zoning Clearance Certificate APN 223-075-012:
Revocation of Zoning Clearance Certificate for a Restoration, Retirement and Relocation (RRR) project in which 7,500 square feet of existing outdoor cultivation on APN 220-261-075 was retired to allow for 20,000 square feet of outdoor cannabis cultivation on APN 223-075-012. On April 24, 2024, a letter (on file), was sent to the permit holder which provided notice of cannabis permit suspension because of an outstanding balance of $1,696.65 due to the Humboldt County Planning and Building Department. The permit holder was informed that permit holders were to bring their accounts current within 90 days or risk permit revocation. The permit holder has not resolved the outstanding balance and as such, it is recommended the permit is revoked.
SOURCE OF FUNDING:
There is no identified funding source for this action. The work is funded by the General Fund Contribution to department operations. To date, the unpaid Planning Department fees for these 24 permits totaled $98,815.93 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.
OTHER AGENCY INVOLVEMENT:
Any referrals that may be associated with one or more of these projects are irrelevant, due to the recommendation of revocation for lack of payment.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
1. The Board of Supervisors could elect to direct staff to continue to work with the permit holders to resolve the outstanding issues and continue processing the applications in accordance with HCC Section 312-4.1 et seq. However, due to the extended amount of time that deficiencies have remained unresolved and the lack of responsiveness from the permit holders, staff do not recommend this alternative.
ATTACHMENTS:
1. 10243 Resolution
2. 10654 Resolution
3. 11258 Resolution
4. 11426 Resolution
5. 11553 Resolution
6. 11632 Resolution
7. 11919 Resolution
8. 11952 Resolution
9. 12031 Resolution
10. 12081 Resolution
11. 12084 Resolution
12. 12264 Resolution
13. 12628 Resolution
14. 12733 Resolution
15. 12747 Resolution
16. 12926 Resolution
17. 12986 Resolution
18. 13081 Resolution
19. 13117 Resolution
20. 13340 Resolution
21. 13349 Resolution
22. 13352 Resolution
23. 17253 Resolution
24. 12187 Resolution
Please contact Collin Slavey, Planner, at cslavey@co.humboldt.ca.us or 707-268-3716 if you have questions about this item.
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A