Staff Report
City Council
Item No. 4.A
Meeting Date: February 25, 2026
From: Kevin Biersack, Financial Services Director
Title: CC Industry, LLC dba C4 USA Cannabis Dispensary License Appeal RECOMMENDATION:
1. Conduct a public hearing to consider an appeal of City Staff’s denial of the Cannabis Dispensary License for CC Industry, LLC dba C4 USA; and
2. Affirm, reverse, or modify, in whole or in part, City Staff’s decision to deny the renewal of the CC Industry, LLC dba C4 USA Cannabis Dispensary License.
BACKGROUND:
On June 28, 2023, City Council approved Ordinance 870 to go into effect on January 1, 2024. Ordinance 870 amended the City of Cathedral City Municipal Code Section
5.88.055(B)(4)(a) stating, “For the first renewal application beyond January 2024, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the previous month. A tax return submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises shall be sufficient proof.”
Staff informed CC Industry, LLC dba C4 USA (“CC Industry, LLC”) of the requirement to be operational with their dispensary as a condition of renewal. Communications were sent via email on November 3, 2023, and April 2, 2024, for the renewal date of September 10, 2024.
On August 13, 2024, city staff informed CC Industry, LLC they would not be able to renew the dispensary portion of their license due to no commercial cannabis activity. On August 19, 2024, CC Industry, LLC submitted a letter of hardship asking for special circumstances to renew their dispensary license for the period of September 10, 2024, through September 9, 2025. Following a discussion with city management on August 27, 2024, they were granted hardship and allowed to renew their license.
DISCUSSION:
On January 29, 2025, and May 15, 2025, staff informed CC Industry, LLC of the requirement to be operational with their dispensary as a condition of renewal on September 10, 2025. In response to the May 15, 2025 reminder regarding Ordinance 870 requirements, David Bernard, C4 Chief Operating Officer (COO), informed staff that same day stating they intended to be operational by August 1, 2025 in advance of their September 10, 2025 renewal date for the cannabis license. On July 2, 2025, staff received an email from Mr.
Bernard stating that CC Industry, LLC was ready to apply for a City business license. Staff responded with instructions on how to apply for their business license. CC Industry, LLC applied for their business license on July 14, 2025. On July 18, 2025, staff emailed Mr.
Bernard with instructions for scheduling their required inspections. Inspections were completed and the business license was issued in August 2025.
On August 31, 2025, CC Industry, LLC submitted their tax return for the month of August, stating they had sold $409.50 worth of product, resulting in $20.48 of taxes owed. Upon receiving their City of Cathedral City tax return, staff reviewed the tax return submitted by CC Industry, LLC to the California Department of Cannabis Control (DCC) cannabis track and trace system, Marijuana Enforcement of Cannabis Control (Metrc) system/software. The data reported on the Metrc website listed $60 worth of product sold in August 2025. On September 18, 2025, Cathedral City Code Compliance visited the C4 dispensary location and reported no retail signage, no posted hours of operation, and a locked entry door. No sales were reported on the September 2025 tax return submitted to the City by CC Industry, LLC. This matched the report on DCC Metrc system/software for September 2025.
Title 4, California Code of Regulations (CCR), S 15047.2) requires licenses to record each of the following in the track and trace system (Metrc) within 24 hours of occurrence:
Receipt of cannabis and cannabis products;
Rejection of transferred products;
Manufacturing of cannabis or cannabis products;
Use of cannabis or cannabis product for internal quality control testing or product research and development;
Destruction or disposal of cannabis or cannabis products; Packaging or repackaging of cannabis or cannabis products, except specified cultivation requirements;
Laboratory testing results; and,
Sale or donation of cannabis or cannabis products (4 CCR, S 15049(b).
Code Compliance staff revisited the facility on October 13, 2025, and reported no retail signage, no posted hours of operation, a locked entry door, and no evidence of a retail business in operation. Please see the attached pictures.
Financial Services sent a letter on October 14, 2025 informing CC Industry, LLC stating, “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.” On October 22, 2025, CC industry, LLC submitted a Notice of Appeal and paid the appeal filing fee on October 24, 2025 requesting the appeal be scheduled for the December 10, 2025 City Council meeting. On November 24, 2025, CC Industry, LLC submitted a request to the City Clerk’s office to postpone the appeal to the February 25, 2026 Council meeting.
In addition, the Cathedral City Municipal Code (CCMC) Section 5.88.055 provides that an expired license may only be renewed during the three (3) month window after its expiration date. The license expired on September 10, 2025, became invalid and any operations under the expired license were required to be ceased. Pursuance to CCMC section 5.88.055 expired licenses may only be renewed within a three-month window after the expiration date.
With the unusual circumstances of Councilmember Carnevale passing away on November 16, 2025, the request to delay the appeal to February 25, 2026 was granted. While C4 Industry has requested from staff an additional postponement of their appeal hearing to May 27, 2026, any further request(s) to delay the appeal date would not be justified under CCMC Section 5.88.055.
FISCAL IMPACT:
There is no fiscal impact.
FIVE-YEAR STRATEGIC PLAN:
Goal C – Fiscal Stability and Sustainability
Goal E – Safety
ATTACHMENTS:
Tax Return August 2025
Tax Return September 2025
Letter to CC Industry, LLC dba C4 USA dated 10/14/2025
Notice of Appeal, dated 10/22/2025
Letter of Postponement Appeal, dated 11/24/2025
Ordinance 870
Muni Code Section 5.88
Photos from dispensary dated September 18 and October 13, 2025 Additional Letter of Postponement, dated 2/9/26