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CathedraI City
October 14,2025
David Bernard
Chief Operating Officer
CC lndustry, LLC, dba C4 USA
69375 Ramon Road
Cathedral City CA92234
RE: License Renewal
Dear David -
City staff have reviewed your license renewals for your business's cultivation, distribution and dispensary licenses. The City will be able to renew the license for cultivation and distribution activities; however, we will not be able to renew your dispensary license. Please see the attached Municipal Code Chapter 5.88 regarding Cannabis Businesses.
ln applying for the local license, the City's Municipal Code 5.88.040 Local license application process, paragraph H states:
A local license issued pursuant to this chapter shall specify the date of issuance, the peiod of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis buslness licensed. All local /icenses are valid for one year, except that an initial local license shall automatically expire if the commercial cannabis activities authorized by the license have not commenced at the premises within eleven months of the date of issuance. lf the licensee has not submitted a tax retum pursuant to Section 3.48.080 of this code showing that commercial cannabis activity is occuning on the premises before the staft of the twelfth month license term, the city will notify the licensee in witing that their license has been rendered null and void due to the failure to commence commercial cannabis activity. The licensee is not precluded from applying for a new cannabis license except as provided in Secllon 5.88.040(A).
On 11112024, Cathedral City Ordinance 870 became effective to include an update to Chapter 5.88.055, paragraph 4.a regarding "Renewal of a local license", which states:
For dispensaies, proof that commercial cannabis activity is occurring on the premises in accordance with the following:
a. For a first renewal application, proof that commercial cannabis activity permitted by the license has been occuning on the premises for the previous month. A tax retum submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occuned on the premises shall be sufficient proof .
As you are aware, the first operating renewal application processed for C4 was for the period911012023-911012024. With multiple emails priorto and during the renewal process, staff notified you of the requirement for "proof that commercial cannabis activity permifted by the license has been occurring on the premises for the previous month" which had not been satisfied. After conversations with the Mayor (Carnevale), City Manager (McClendon) and Assistant City Manager (Ambrose), then City Manager McClendon contacted you on 8127124 "to allow the hardship waiver submitted to give the owner one more year to get their dispensary business up and operational".
For the next license renewal period of 911012024 - 911012025, it appears the dispensary was not opened and operating on a continuous basis by the start of the twelfth month (811012025 - 911012025) of this license period. On 911812025, Cathedral City Code Compliance visited the C4 dispensary location and determined there was no retail signage, no posted hours of operation, and the entry door was locked. Although tax returns were submitted for August and September 2025, lhe amounts reflected very limited sales which seemed indicative of intermittent (and not continuous) operations. For the data provided, the City logged into the California Department of Cannabis Control cannabis track and trace system (Metrc) and could not corroborate the dispensary sales figures reported in Metrc to the sales figures reported on the filed tax returns. Title 4, California Code of Regulations (CCR), S 15047.2) requires licensees to record each of the following in the track and trace system within 24 hours of occurrence:
a) Receipt of cannabis and cannabis products;
b) Rejection of transferred products;
c) Manufacturing of cannabis or cannabis products;
d) Use of cannabis or cannabis product for internal quality control testing or product research and development;
e) Destruction or disposal of cannabis or cannabis products; f) Packaging or repackaging of cannabis or cannabis products, except specified cultivation requirements;
g) Laboratory testing results; and,
h) Sale or donation of cannabis or cannabis products (4 CCR, S 15049(b).
Code Enforcement staff went a second time to the facility on 1011312025 and again verified that there was still no retail signage, no posted hours of operation, the entry door was locked, and there was no evidence of a retail business in operation.
The specific purpose of Ordinance 870 was to curtail the practice of holding and renewing a license for a cannabis business that is not in operation.
It is for these reasons the City is not able to renew the dispensary cannabis license for CC lndustry, LLC dba C4 USA.
You have the right to appeal this decision. lnstructions on how to file an appeal can be found in section 2.04.100 of the Municipal Code.
Sincerely,
A
,/l'J
Biersack
Financial Services Director
Anne Ambrose, lnterim City Manager
Andrew Firestine, Community and Economic Development Director Justin Gardner, Code Enforcement Manager
Patrick Bumstead, Financial Analyst ll
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