CC Industry LLC 69375 Ramon Rd. Cathedral City, CA 92234 www.c4usa.com
NOTICE OF APPEAL
Filed Pursuant to Cathedral City Municipal Code § 2.04.100 Date: 10/22/2025
To: City Clerk, Cathedral City
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
From:
CC Industry, LLC (dba C4 USA)
69375 Ramon Road
Cathedral City, CA 92234
Attn: David Bernard, Chief Operating Officer
Subject: Appeal of Denial of Dispensary License Renewal (City Letter Dated October 14, 2025)
I. INTRODUCTION
This Notice of Appeal is submitted pursuant to Cathedral City Municipal Code § 2.04.100 on behalf of CC Industry, LLC (“Appellant”), appealing the decision of Financial Services Director Kevin Biersack, dated October 14, 2025, denying renewal of Appellant’s dispensary license for 69375 Ramon Road
CC Industry, LLC, dba C4 USA
The City’s denial rests on (1) shifting and inconsistent requirements between City staff, (2) a misinterpretation of the intent and language of Ordinance No. 870, and (3) an incorrect characterization of temporary site inactivity as non-operation, despite documented proof of lawful sales, inventory on-site, and an active business presence.
II. BACKGROUND AND RECORD OF COMMUNICATION
1. Initial Guidance from Patrick Bumstead
On July 18, 2025, Financial Analyst Patrick Bumstead explicitly instructed Appellant:
CC Industry LLC 69375 Ramon Rd. Cathedral City, CA 92234 www.c4usa.com
“After you have passed all inspections and paid the fees, we will be able to issue your business license, and you will be able to operate. You will need to operate for the month of August to renew the license in September.”
Email Correspondence Patrick Bumstead
On July 31, 2025, Mr. Bumstead further clarified that:
“You need to have sales in the month of August to pay taxes on by the end of September.” Email Correspondence Patrick Bumstead
These communications clearly established that August 2025 sales would satisfy renewal eligibility. No mention was made of “continuous operation” or any further requirements beyond filing tax returns reflecting August activity.
2. Appellant’s Compliance with City Instruction
Following this explicit direction, Appellant lawfully conducted retail cannabis sales in August 2025, filed all required City tax returns, and provided documentation proving commercial cannabis activity at the licensed premises.
During September, Appellant temporarily paused dispensary operations to complete installation of a perimeter security fence—a facility improvement designed to limit public access to the adjoining cultivation compound and ensure compliance with state security standards.
This brief and purposeful pause was not abandonment of operations but rather a measured enhancement of public safety and compliance.
3. Subsequent and Contradictory Requirements Introduced by Kevin Biersack On October 2, 2025, Mr. Biersack introduced new and previously unmentioned standards, including a retroactive interpretation that the licensee must have been “operating on a continuous basis.” This new condition was inconsistent with prior guidance and unsupported by the plain language of § 5.88.055 Email Correspondence_Kevin Biersack
Mr. Biersack’s later correspondence and denial letter also cited alleged discrepancies between METRC data and City tax returns as evidence of “intermittent operation.” This statement was factually incorrect, as all August transactions were timely logged in METRC in accordance with 4 CCR § 15047.2, and no request for clarification or audit verification was made prior to denial.
CC Industry LLC 69375 Ramon Rd. Cathedral City, CA 92234 www.c4usa.com
4. City Inspections and Mischaracterization of Temporary Work City inspections occurred on September 18 and October 13, 2025, when the property was temporarily closed for fencing installation and perimeter control improvements — work performed specifically to enhance security and public safety.
These inspections failed to recognize that the dispensary remained licensed, fully stocked with inventory, staffed, and prepared to reopen upon completion of the security upgrade.
III. LEGAL AND FACTUAL GROUNDS FOR APPEAL
1. Lack of Clear, Consistent Direction from City Staff
The record demonstrates that the City provided contradictory instructions:
• Patrick Bumstead expressly directed that operating during August would satisfy renewal requirements.
• Kevin Biersack, months later, introduced new criteria requiring “continuous operation,” never previously referenced.
This shift in interpretation — without notice or codified amendment — created material confusion and deprived the licensee of fair notice under Municipal Code § 2.04.110 and the Due Process Clause.
2. Misapplication of Ordinance No. 870 and Misinterpretation of “Warehousing” Intent Ordinance No. 870 was enacted to prevent “warehousing” of inactive licenses — where entities hold a license indefinitely without operation
CC Industry, LLC, dba C4 USA
This intent does not apply to CC Industry, LLC, which has been actively cultivating, manufacturing, distributing, and retailing cannabis at the same site. The dispensary was never abandoned; it was briefly offline to install safety infrastructure and remains fully operational with product, personnel, and tax filings on record.
3. Inaccurate and Unsupported Reliance on METRC Discrepancy Claims The City’s denial letter asserts that “sales figures reported in METRC could not be corroborated with filed tax returns”
CC Industry LLC 69375 Ramon Rd. Cathedral City, CA 92234 www.c4usa.com
CC Industry, LLC, dba C4 USA
This is demonstrably false. The City neither provided documentation of such discrepancy nor afforded the licensee any opportunity to verify or respond. These conclusions were made without evidentiary basis and constitute arbitrary and capricious administrative conduct.
4. Violation of Procedural Due Process
The City failed to issue a deficiency notice, provide an opportunity to cure, or clarify evolving standards before denial — all violations of § 2.04.110. Appellant acted in reliance on official instructions and should not be penalized for the City’s internal miscommunication.
5. Ongoing Operation and Compliance
CC Industry LLC remains fully operational, maintaining inventory, employees, security, and compliance with all state and local standards. Any inference of abandonment or inactivity is factually baseless.
IV. RELIEF REQUESTED
Appellant respectfully requests that the City Council:
1. Reverse the October 14, 2025 denial of the dispensary license renewal;
2. Find that August 2025 activity satisfies § 5.88.055(4)(a);
3. Acknowledge that temporary closure for security improvements does not constitute non-operation or license warehousing;
4. Rescind all references to alleged METRC discrepancies as unsupported;
5. Reinstate and renew the dispensary license nunc pro tunc to September 10, 2025;
V. RESERVATION OF RIGHTS
Appellant reserves all rights to seek judicial review pursuant to California Code of Civil Procedure § 1094.5 and any other applicable remedies.
Respectfully submitted,
CC Industry LLC 69375 Ramon Rd. Cathedral City, CA 92234 www.c4usa.com
David Bernard
Chief Operating Officer
CC Industry, LLC (dba C4 USA)
69375 Ramon Road, Cathedral City, CA 92234
Email: [email protected]
Phone: (310) 936-6076