Agenda Item No: P.1
AGENDA REPORT
DATE: March 4, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-37 CD Rescinding Approved Business Permit to Authentic Fairfield LLC
Rescinding the Approved Issuance of a Commercial Cannabis Retail Business Permit to Authentic Fairfield LLC
Funding Source: N/A
Contact: Dave Zellers, (707) 428-7436
RECOMMENDED ACTION
Hold Public Hearing and adopt resolution.
STATEMENT OF ISSUE
The City Council has requested agendizing a Public Hearing for consideration of rescinding the Preliminary Approval for a Commercial Cannabis Retail Business Permit awarded to Authentic Fairfield LLC on June 22, 2021, by Resolution 2021 -143. At the council meeting of December 3, 2024, the hearing began at the request of council. Authentic Fairfield LLC asked the council to continue the hearing to a future date. The council held a Closed Session meeting with the city attorney on January 21, 2025, regarding this matter and set the date for the continuation of the hearing for March 4, 2025; the selected date for continuation was selected at the request of Authentic Fairfield LLC.
DISCUSSION
In June 2021, Authentic Fairfield LLC was granted approval for a Commercial Can nabis Business Permit pending the completion of actions and meeting specific conditions per the City Resolution 2021-143. Since June 2021, the complete set of conditions has not been satisfied, nor has documentation been provided to indicate whether some or all the conditions have been satisfied.
Authentic Fairfield LLC last contacted City staff overseeing the commercial cannabis program in July of 2023 and indicated the business was exploring the possibility of utilizing a different location than the one s pecified in its initial application. As there had been no communication
with the City since to indicate a change in ownership or location, at any point in the last three years, as of Section 1.5 of Exhibit A, included with Resolution 2021 -143 and Fairfield Municipal Code Chapter 10E; also known as Commercial Cannabis Businesses (FMC -10E), the council may consider rescinding the preliminary approval for the permit granted in 2021.
On October 15, 2024, the council passed and adopted Ordinance No. 2024-08 which includes an amendment to FMC-10E allowing for the revocation of Preliminary Approvals for a Commercial Cannabis Business Permit. During the presentation of the first reading on October 1, 2024, of Ordinance No. 2024 -08, two council members requested ag endizing a Public Hearing for the rescinding of the preliminary approval granted to Authentic Fairfield LLC. Furthermore, the city attorney stated during the 1st reading presentation that regardless of the changes to the FMC - 10E the council could rescind p reliminary approval as it relates to the conditions at the time it was conferred.
As of November 2024, the State of California Department of Cannabis Control records did not show the same owners for Authentic Fairfield LLC as the application submitted to the city in September of 2020. The Public Hearing Notice for the council meeting on December 3, 2024was given to Authentic Fairfield LLC in November 2024. Authentic Fairfield LLC provided digital copies of two operating agreements; both agreements are dat ed after the date of the permit application. Neither of these documents, which address responsibilities, management, shares, and other operational considerations, were provided to the city at any point prior to this matter being agendized at the council’s request. Therefore, they could not be reviewed as part of the preliminary approval process nor were they provided in a timely manner during the period wherein Authentic Fairfield LLC was to be abiding by the terms and conditions set forth in Resolution 2021-143. At the request of Authentic Fairfield LLC council continued their hearing to a future date.
The council was briefed on the legal aspects of the matter at a Closed Session on January 21, 2025, prior to the continuation of the Public Hearing. The h earing is scheduled for the March 4, 2025, meeting.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The initial Public Hearing was advertised in the Daily Republic on November 17, 2024. A certified letter dated November 14, 2024, was se nt to the individuals listed on the 2020 initial permit application as owners of Fairfield Authentic LLC to inform them of the initial Public Hearing. The continuation of the Public Hearing was advertised in the Daily Republic on February 19, 2025.
ALTERNATIVE ACTION
The council may decide to vote against passage of the resolution.
COORDINATED WITH
City Attorney’s Office
STAFF CONTACT
Dave Zellers, Director of Community and Economic Development (707) 428-7436
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Resolution 2021-143 with Exhibits