Agenda Item No: M.2
AGENDA REPORT
DATE: March 18, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Continued Resolution 2025 -37 CD Rescinding the Approv ed Issuance of a Commercial Cannabis Retail Business Permit
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. On the December 3, 2024 , council meeting, the hearing began at the request of the 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. At the March 4, 2025 , council meeting, at the request of a Council member, the Council voted to continue the hearing to the March 18, 2025, meeting.
DISCUSSION
In June 2021, Authentic Fairfield LLC was granted approval for a Commercial Cannabis 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 specified 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, 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 agendizing 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 preliminary approval as it relates to the co nditions 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 2020. The Public Hear ing Notice for the council meeting on December 3, 2024 , was given to Authentic Fairfield LLC in November 2024. Authentic Fairfield LLC provided digital copies of two operating agreements; both agreements are dated 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 reviewe d 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 on March 4, 2025. The hearing, having been continued, is scheduled for the March 18, 2025, meeting. In the days prior to the March 4, 2025, council meeting , various interested parties provided further information via written correspondence to council for their consideration in the matter. Because of the limited time for the council to review said information, at the request of the mayor, should any parties wish to provide additional information for the council to consider in the matter, it should be submitted in writing no later than March 14, 2025, by 5 p.m.
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 was sent to the individuals listed on the 2020 initial permit application as ow ners of Fairfield Authentic LLC dated November 14, 2024, to make them aware of the initial Public Hearing. The continuation of the Public Hearing was advertised in the Daily Republic on February 19, 2025. As the Mayor announced at the March 4, 2025, council meeting that the continuation date would be March 18, 2025, additional advertising is not required.
ALTERNATIVE ACTION
The council may decide to vote against passage of the resolution.
COORDINATED WITH
City Manager’s Office and 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