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www.modestogov.com
AGENDA
City of Modesto
SPECIAL CANNABIS PROGRAM AND PERMIT REVIEW
COMMITTEE / COUNCIL WORKSHOP
2001-40 Del Puerto Room.
Tenth Street Place, 1010 10th Street
Modesto, California
Monday, June 17, 2024 at 4:00 PM
Roll Call: David Wright, Chair
Sue Zwahlen, Vice-Chair
Chris Ricci, Member
Alternates: Nick Bavaro, Rosa Escutia-Braaton, Eric Alvarez, Jeremiah Williams Council has not delegated directive or final approval authority to the Committees.
Committee actions are recommendations to the full City Council, not final decisions on an issue. * Public Comment will only be in-person. Members of the public who wish to address the Committee, by providing public comment, during the meeting must do so in-person in the 2001-40 Del Puerto Room. As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation. *Members of the public will be allowed to provide public comment through Zoom if a Committee Member is participating remotely pursuant to the provisions of Assembly Bill 2449. *Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the Committee meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. Alternative viewing options are listed below, and the meeting is physically open to the public.
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Joining the Committee meeting via Zoom
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Joining the Committee meeting via Telephone
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PUBLIC COMMENTS IN PERSON
Three-minute time limit per speaker.
Only interested persons in the audience may present these matters. Under State law, Committee Members may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Committee Member or the Committee itself may take action to direct staff to place a matter of business on a future agenda.
SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Committee - 2 -
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Members and placed in the record but will not be read aloud during the meeting. Written comments must be received two hours before the meeting.
This Agenda is on file in the City Clerk’s Office, Sixth Floor, 10th Street Place, Posting Board at entry of 10th Street Place, and is available on the City’s Web site at www.modestogov.com.
Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting, at the following website www.modestogov.com/councilmeetings In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting
Any and all of the following agenda items are subject to action by the Modesto City Council.
NEW BUSINESS
1 Consider a Change in Ownership request for Retail Cannabis Dispensary CR and D Inc. and forwarding to Council for approval. (Funding Source: Cannabis Annual Permit Fee)
Motion recommending the approval of the Change in Ownership request for Retail Dispensary CR and D Inc. resulting in Carolina Fernandez acquiring eighty percent (80%) of CR and D Inc. and forwarding to Council for approval.
CED; Sean Rando, 209-577-5473, [email protected]
2 Consider approving the renewal of six Non-Retail Commercial Cannabis Permits for a two-year period ending June 30, 2026. (Funding Source: Annual Cannabis Permit Fees)
Resolution approving the renewal of six Non-Retail Commercial Cannabis Permits for businesses in the City of Modesto to June 30, 2026.
CED; Sean Rando, 209-577-5473, [email protected]
ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on - 3 -
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at by
date time signature
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
June 17, 2024
Date: February 22, 2024
TO: Cannabis Program and Permit Review Committee
David Wright, Chair
Sue Zwahlen, Vice-Chair
Chris Ricci, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Business Modification Request for CR and D Inc-Change in Ownership CONTACT: Sean Rando, Business Analyst
[email protected], 209-577-5473
DESCRIPTION:
Consider a Change in Ownership request for Retail Cannabis Dispensary CR and D Inc. and forwarding to Council for approval. (Funding Source: Cannabis Annual Permit Fee) STRATEGIC PLAN ELEMENT:
This item is consistent with the City Council 2020-2025 Strategic Plan Goal E, Drive Economy Vitality.
BACKGROUND:
In December 2017, the City Council adopted Ordinance 3684-C.S. legalizing certain commercial cannabis business operations in particular zoning districts. The City Council was the approving body regarding all cannabis businesses operating in the City.
On April 13, 2021, by Resolution No. 2021-132, Council established the Cannabis Permit Review Committee (Committee) and delegated the authority to approve non-dispensary and non-delivery cannabis businesses to that Committee.
On March 1, 2022, by Resolution No. 2022-109, the Council expanded the role of the Committee to advise the Council on all cannabis-related issues and renamed the Committee to the Cannabis Program and Permit Review Committee. The City Council remains the approval authority for all matters regarding retail cannabis dispensaries.
On December 19, 2018, by Resolution 2018-566, the City Council approved and issued eight (8) cannabis retail permits, which were valid for a two (2) year period from that date. At the time, CR and D Inc. (Modesto Cannabis Collective) was one of the approved dispensaries. On December #1.
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Cannabis Program and Permit Review Committee, June 17, 2024 Business Modification Request for CR and D Inc-Change in Ownership
19, 2020, by Resolution 2020-485-489, the City Council approved the initial renewal applications for the eight (8) retail locations. This renewal period was set to expire on December 19, 2022.
On November 1, 2022, by Resolution No. 2022-442, Council approved the extension of the eight (8) issued commercial cannabis retail permits from December 19, 2022, to June 30, 2023, and adjusted the two-year renewal period from a calendar year to a fiscal year which runs from July to June.
On June 27, 2023, by Resolution No. 2023-297, Council approved the renewal of the eight (8) commercial cannabis retail permits for dispensaries in the City for a further two-year period ending June 30, 2025.
According to Modesto Municipal Code, 10-3.704(d), permits issued in accordance with the City’s Cannabis ordinance are not transferable to another individual or physical location without City approval. To provide additional guidance to local businesses and City officials, staff prepared a set of policies and procedures for the approval of change in ownership requests.
On June 27, 2023, by Resolution No. 2023-298, Council formally approved a change in ownership policy for commercial cannabis permits within the City.
The requirements of this policy include:
IA new individual acquiring an aggregate ownership interest of fifty-one (51%) percent of a cannabis business when they previously had not required City Council approval for Dispensaries or approval by the Cannabis Program and Permit Review Committee for non-dispensaries.
A Originally approved owners retaining one hundred (100%) percent interest in the cannabis business amongst them would not meet the definition of a change in ownership per California Department of Cannabis Control (DCC) regulations section 15023. An original owner(s) must retain a minimum of twenty (20%) percent ownership interest in the businesses to continue operating under their current commercial cannabis permit following City approval of the change, otherwise, the business must cease operation and reapply for a commercial cannabis permit under the new business structure.
Documents detailing business modification requests for changes in ownership that may be requested at the discretion of the City include proof of filing with the Secretary of State, Bylaws, Operating Agreements, Partnership Agreements, Corporate Meeting Minutes, Completion of background check for new owners as required by Modesto City Code section 10-3.704(3)(2), and signed declaration by the relinquishing party acknowledging the change.
DISCUSSION:
A completed application was submitted on February 9, 2024, by the owner of Modesto Cannabis Collective to initiate the City approval process of a business modification for a proposed change in ownership. This dispensary currently operates at 439 Maze Blvd. A new owner, Carolina Fernandez, has since acquired an eighty (80) percent ownership interest in the company with Deanna Garcia, an originally approved owner, retaining the remaining twenty (20) percent, in alignment with the City policy, this action requires Council approval.
Cannabis Program Administrative Staff reviewed the application for completeness. The documents included the following:
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Cannabis Program and Permit Review Committee, June 17, 2024 Business Modification Request for CR and D Inc-Change in Ownership
o Public filings with the California Secretary of State confirming the new ownership structure.
o Executed agreements documenting the change in ownership provided on the business modification request form.
o Signed resignations and Board of Directors meeting minutes documenting the current owners of Modesto Cannabis Collective acknowledging the proposed transaction.
o A completed background check for the new owner stating that there were no disqualifying factors that would prevent the applicant from being an operator of a commercial cannabis business in the City of Modesto.
The dispensary business has also passed each annual compliance inspection since first becoming operational, and they are current on all City of Modesto taxes and fees. Modesto Cannabis Collective is in good standing and the business modification request has met the requirements of the City of Modesto’s commercial cannabis change in ownership policy.
FISCAL IMPACT:
On November 14, 2023, by Resolution No. 2023-504, Council approved two separate annual commercial cannabis permit fees which cover costs related to the administration and monitoring of the cannabis permit program. Operational businesses remit a fee of $18,732 while nonoperational businesses are required to pay a lower fee of $4,307. The annual permit fee is reviewed and reconciled annually to capture increases or decreases related to administrative oversight of the cannabis permit program.
RECOMMENDED COMMITTEE ACTION:
Staff Recommendations:
Motion recommending the approval of the Change in Ownership request for Retail Dispensary CR and D Inc. resulting in Carolina Fernandez acquiring eighty percent (80%) of CR and D Inc. and forwarding to Council for approval.
Approved by:
Jessica Hill,
Director of Community and Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Commercial Cannabis Business Modification Request-Change in Ownership
2. Business Modification Request Checklist – CR&D
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COMMUNITY AND ECONOMIC
DEVELOPMENT-CANNABIS PERMIT
PROGRAM
1010 Tenth Street, Suite 3300, P.O. Box
642 Modesto, California 95354
209.571.5157
[email protected]
Commercial Cannabis Business Modification Request:
Change in Ownership
Instructions: Please provide a list of all current business owners and their percentages of ownership followed by the new ownership structure being requested.
Please note that failure to inform the City of permit transfers to another individual may be grounds for permit revocation pursuant to MMC:10-3.705
Original Ownership Structure
Name Ownership Percentage
Deanna Garcia 40
Tyler Tamagni 30
Kimberly Cargile 20
Matthew Pedraza 10
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Completed applications must be submitted to:
Community and Economic Development
Department
1010 Tenth Street, Suite 3300, P.O. Box 642
Modesto, CA 95353
Telephone (209) 577-5267
New Ownership Structure Requested
Name Ownership Percentage
Carolina Fernandez 80
Deanna Garcia 20
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Additional Comments:
Completed applications must be submitted to:
Community and Economic Development
Department
1010 Tenth Street, Suite 3300, P.O. Box 642
Modesto, CA 95353
Telephone (209) 577-5267
I certify under penalty of perjury under the laws of the State of California, that the information contained herein is true and correct.
Print Name: Title:
Signature: Date:
Name of Business:
City of Modesto Use Only:
The City of Modesto has examined the following form and supporting documentation thereto, and that all information therein is true, correct, and complete to the best of my knowledge.
Form Complete Form Incomplete
Staff reviewer Title Date
Approved by (Print Name or Name of Approving Body)
Signature or Resolution Number Title Date
CR AND D Inc will continue on operating business as usual at 439 Maze Blvd
CR AND D INC
Deanna Garcia CFO
2/9/2024
Please feel free to contact Deanna at [email protected] for any needed documentaion. #1.
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Completed applications must be submitted to:
Community and Economic Development
Department
1010 Tenth Street, Suite 3300, P.O. Box 642
Modesto, CA 95353
Telephone (209) 577-5267
Supplementary Information:
Approval requirements necessary for change of ownership requests pursuant to MMC:10-3.704(d) are as follows:
A. Any change affecting any ownership interest of a Cannabis Business, including, but not limited to, any change in ownership that affects an aggregate ownership interest of less than 20% of the Cannabis Business, must be promptly disclosed, in writing, to the City within 30 days of the intent to initiate a change.
B. Applicant understands that no commercial cannabis operations may commence until the requested changes are approved by the State, pursuant to MMC Section 10-3.704 C. Any change affecting any ownership interest of a Cannabis Business that results in a Person holding ownership interest of a Cannabis Business, when that Person did not previously hold an ownership interest in the Cannabis Business shall require the Permittee to promptly obtain approval from the appropriate City representative:
a. A Person who now holds an aggregate ownership interest of 51% of a Cannabis Business when they previously had not will require City Council approval for Dispensaries or approval by the Cannabis Program and Permit Review Committee for non-dispensaries b. If a Person who previously held ownership interests of a Cannabis Business no longer holds an interest in the business, whether as a result of a single transaction or multiple over time, will require City Council approval for Dispensaries or approval by the Cannabis Program and Permit Review Committee for non-dispensaries if a new owner or owners take their place.
i. If originally approved owners retain 100% of the interest in the Cannabis Business amongst them then this transaction would not meet the definition of a permit transfer per Department of Cannabis Control Regulations section 15023. c. All other transfers will require the approval of the City Manager or their designee d. An original owner(s) must retain a minimum of 20% ownership interest in the businesses to continue operating under their current commercial cannabis permit following City approval of the change, otherwise the business must cease operation and reapply for a commercial cannabis permit under the new business structure.
D. are
disallowed and may be grounds for permit revocation and/or loss of equity status E. Documents that may be requested at the discretion of the City include but are not limited to:
a. Proof of filing with the Secretary of State (with new ownership listed) b. Bylaws, Executed Operating Agreement, Partnership Agreement (documenting the change)
c. Corporate Meeting Minutes (documenting the change), if applicable d. Completion of background check for new owners as required by Modesto City Code section 10-3.704(3)(2), if applicable
e. Signed declaration by the relinquishing party acknowledging the change #1.
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Business Name:
Reviewed by: Sean M. Rando
Review Date: 2/12/2024
Task Reviewed Review Date Reviewed By
Complete business modification form X 2/12/2024 Sean M. Rando Proof of Filing with the Secretary of
State X 2/12/2024 Sean M. Rando
Bylaws, executed agreements
documenting the change X 2/12/2024 Sean M. Rando
Corporate meeting minutes X 2/12/2024 Sean M. Rando
Background check for all new owners X 2/21/2024 Sean M. Rando Signed declaration by the relinquishing
party/parties X 2/12/2024 Sean M. Rando
Business Modification Request
Change in Ownership
Review Checklist
CR and D, INC. (DBA Modesto Cannabis Collective)
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
June 17, 2024
Date: May 16, 2024
TO: Cannabis Program and Permit Review Committee
David Wright, Chair
Sue Zwahlen, Vice-Chair
Chris Ricci, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Non-Retail Commercial Cannabis Permit Renewals CONTACT: Sean M. Rando, Business Analyst [email protected], 209-577-5473 DESCRIPTION:
Consider approving the renewal of six (6) Non-Retail Commercial Cannabis Permits for a twoyear period ending June 30, 2026. (Funding Source: Annual Cannabis Permit Fees) STRATEGIC PLAN ELEMENT:
This item is consistent with the City Council 2020-2025 Strategic Plan Goal E, Drive Economy Vitality.
BACKGROUND:
In December 2017, the City Council adopted Ordinance 3684-C.S. legalizing certain commercial cannabis business operations in particular zoning districts. Since that time, the City has approved eight (8) cannabis dispensary permits, and eight (8) non-dispensary cannabis permits. Of the eight (8) non-dispensaries, three (3) are currently operating. At that time, the City Council was the approving body regarding all cannabis businesses operating in the City.
On April 13, 2021, by Resolution No. 2021-132, the Council established the Cannabis Permit Review Committee (Committee) and delegated the authority to approve non-dispensary and nondelivery cannabis businesses to that Committee.
On March 1, 2022, by Resolution No. 2022-109, the Council expanded the role of the Committee to advise the Council on all cannabis-related issues and renamed the Committee, the Cannabis Program and Permit Review Committee.
Non-Retail commercial cannabis permits have been issued to the following businesses:
Big Dipper Brands, LLC
o 1919 Morgan Rd.
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Cannabis Program and Permit Review Committee, June 17, 2024 Non-Retail Commercial Cannabis Permit Renewals
o Microbusiness
o Permit issued on September 10, 2019
Farm 209 Manufacturing, LLC
o 1919 Morgan Rd.
o Manufacturing
o Permit issued on August 13, 2019
Farm 209, LLC
o 1919 Morgan Rd.
o Cultivation
o Permit issued on August 13, 2019
Patient Care Services of California Inc. (VIP)
o 1404 N. Carpenter Rd.
o Cultivation
o Permit issued on August 13, 2019
Legacy Nursery, LLC
o 1919 Morgan Rd.
o Nursery
o Permit issued on September 10, 2019
Nuggy
o 2432 Nickerson Dr.
o Manufacturing and Cultivation
o Permit issued on September 8, 2020
Valley Fire House, LLC
o 509 Winmore Ave suite H
o Microbusiness
o Permit issued on June 20, 2022
Fiji Weed Company, LLC
o 1420 Granite Ln
o Microbusiness
o June 12, 2023
On May 22, 2022, by Resolution No. 01-2023, the Cannabis Program and Permit Review Committee approved an extension of seven (7) non-retail commercial cannabis permitted businesses to June 30, 2024. This action created a single permit renewal date for all non-retail businesses while also aligning the renewal period with the City of Modesto’s fiscal year which runs from July to June.
In addition to the extensions of the previously issued non-dispensary permits, on June 12, 2023, by Resolution No. 02-2023, the Cannabis Program and Permit Review Committee approved a commercial cannabis microbusiness permit for Fiji Weed Company LLC to engage in cultivation, non-volatile manufacturing, and distribution at 1420 Granite Lane. Fiji Weed Company’s permit is set to expire on June 12, 2025.
DISCUSSION:
Since the issuance of the extensions, there have been two (2) businesses which surrendered their commercial cannabis permit and will no longer be on the track to becoming operational.
These businesses were Nuggy and Big Dipper Brands, LLC. Of the six (6) remaining businesses which have been issued permits since 2017, three (3) are currently open and operational. Legacy Nursery (Nursery),
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Cannabis Program and Permit Review Committee, June 17, 2024 Non-Retail Commercial Cannabis Permit Renewals
Farm 209 (Cultivation), and
VIP (Cultivation).
Although three (3) of the non-retail businesses have not opened within the required 18-month period, which may serve as grounds for permit revocation or non-renewal pursuant to Modesto Municipal Code Section 10-3.705(a)(3), they continue to demonstrate progress with the submittal of tenant improvement plans and applications for building permits. Farm 209 Manufacturing and Fiji Weed Company have been issued a building permit, while Valley Firehouse continues to work with the Building Safety Division regarding plan comments. Staff is working with these businesses and assisting them in navigating various state approvals, securing building permits, and obtaining their certificate of occupancy. Across the State they are seeing these types of delays due to the extensive environmental and State licensing requirements.
Each operational business is inspected on an annual basis. On-site compliance inspections are conducted to ensure businesses are operating in compliance with Modesto’s Commercial Cannabis Ordinance and with State law. The City’s current cannabis consultant (HDL) performs an extensive observation of the business locations including, but not limited to:
Ensuring proper storage of cannabis inventory in secured areas. Verifying premises diagrams match the documents submitted to the State of California and the City.
Confirming proper visitor logs are kept and tracked for individuals who are not customers or employees.
Observing whether the security requirements of the Modesto Municipal Code and Department of Cannabis Control (DCC) regulations are being followed. For example, the City requires non-dispensaries to maintain a security surveillance system which will retain a minimum of forty-five (45) days of footage which can be requested at any time by the Modesto Police Department.
Checking that all doors are secured with a self-closing and self-latching mechanism.
The City also conducts annual financial audits of each operational business’ records. The Cannabis consultant uses a standard set of data including accounting system data, California Department of Tax and Fee Administration (CDTFA) sales and use tax returns, Federal and State income tax returns, METRC data, financial statements, and bank statements. The consultant utilizes this data to determine that the revenue each commercial cannabis business reports to the City is accurate and follows the Modesto Municipal Code.
Compliance inspections and financial audits were completed for the operational non-dispensaries Farm 209, Exclusive VIP, and Legacy Nursery. Both Farm 209 and Legacy Nursery passed their compliance inspections; however, Exclusive VIP was unable to provide evidence of their surveillance system’s ability to retain the minimum forty-five (45) days of footage. Since the conclusion of the inspections on July 25, 2023, the operators have worked on bringing on a new security firm to update the hard drive storage capabilities for their system to meet regulatory requirements.
City Staff has monitored the progress of Exclusive VIP’s work with their security firm closely to ensure that the finding from the 2023 compliance inspections is properly addressed. All nondispensary businesses cleared their financial audits with the exception of Legacy Nursery. The consultant was unable to determine the accuracy of reportable revenue to the City from Legacy Nursery due to the absence of complete and substantive business records. The business was #2.
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Cannabis Program and Permit Review Committee, June 17, 2024 Non-Retail Commercial Cannabis Permit Renewals
provided a recommendation that it implement and maintain far more robust recordkeeping practices going forward through the hiring of a bookkeeper or accountant that specializes in cannabis accounting.
An updated permit renewal application was sent to the business owners, following the conclusion of the inspections and audits, on February 21, 2024. Updates to the application included requests for State licenses, State license applications, proof of valid lease or property ownership, a current list of employees, proof of current insurance, proof of zero balance due for City taxes and fees, business organization documents, as well as an optional demographic questionnaire. City Staff reviewed each application for completeness, and it was found that each business provided the required documentation necessary to move forward with the formal approval of the permit renewals by the Cannabis Program and Permit Review Committee.
FISCAL IMPACT:
On November 14, 2023, by Resolution No. 2023-504, Council approved two separate annual commercial cannabis permit fees which cover costs related to the administration and monitoring of the cannabis permits. Operational businesses remit $18,732 while non-operational businesses are required to pay a lower fee of $4,307. The annual permit fee is reviewed and reconciled annually to capture increases or decreases related to administrative oversight of the cannabis permit program. A cannabis excise tax is also paid based on total gross receipts which ranges from 1% to 4% for non-retail cannabis businesses. The annual commercial cannabis permit fee is budgeted and recognized in cost center 14471.
STAFF RECOMMENDATION:
Resolution approving the renewal of six (6) Non-Retail Commercial Cannabis Permits for businesses in the City of Modesto to June 30, 2026.
Approved by:
Jessica Hill,
Director of Community and Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
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06/17/2024/CED/SRando/Item-XX 1 XX-2024
CITY OF MODESTO
CANNABIS PROGRAM AND PERMIT REVIEW COMMITTEE
RESOLUTION NO. -2024
RESOLUTION APPROVING THE RENEWAL OF SIX (6) NON-RETAIL
COMMERCIAL CANNABIS PERMITS FOR BUSINESSES IN THE CITY OF MODESTO TO JUNE 30, 2026
WHEREAS, the City Council has adopted a Commercial Cannabis Ordinance, Ordinance 3684-C.S., that established the City’s regulatory framework for commercial cannabis uses; and
WHEREAS, the Ordinance establishes certain standards and criteria that apply to all potential commercial cannabis businesses; and
WHEREAS, on April 13, 2021 the City Council by Resolution No. 2021-132 established the Cannabis Permit Review Committee for the purpose of reviewing and approving commercial non-retail and non-delivery cannabis businesses; and WHEREAS, on March 1, 2022, the Council by Resolution No. 2022-109 expanded the role of the Cannabis Permit Review Committee to advise the Council on all cannabis-related matters and renamed the Committee to the Cannabis Program and Permit Review Committee; and
WHEREAS, City Council issued commercial cannabis permits to the following non-retail commercial cannabis businesses with the exception of the permits for Valley Firehouse and Fiji weed Company which were issued by the Cannabis Program and Permit Review committee:
Legacy Nursery LLC Via Resolution 2019-403
Farm 209 LLC Via Resolution 2019-373
Farm 209 LLC Manufacturing Via Resolution 2019-374
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06/17/2024/CED/SRando/Item-XX 2 XX-2024
Nuggy Via Resolution 2020-384
Big Dipper Brands Via Resolution 2019-402
Exclusive VIP Via Resolution 2019-375
Valley Fire House LLC Via Resolution 01-2022
Fiji Weed Company LLC Via Resolution 02-2023; and
WHEREAS, both Big Dipper Brands and Nuggy have since surrendered their commercial cannabis permits and will no longer become operational; and WHEREAS, three of the six remaining businesses are currently open, Legacy Nursery, Farm 209, and VIP. Although three of the non-retail businesses have not yet opened within the 18-month Municipal Code requirement which may serve as grounds for permit revocation or non-renewal pursuant to Modesto Municipal Code Section 10-
3.705(a)(3) they have demonstrated progress with the submittal of tenant improvement plans and applications for building permits; and
WHEREAS, commercial cannabis businesses across the state are experiencing delays in opening due to extensive environmental and State permitting requirements; and WHEREAS, on May 22, 2022 by Resolution No. 01-2023, the Cannabis Program and Permit Review Committee approved an extension of the non-retail commercial cannabis permits to June 30, 2024; and
WHEREAS, the following businesses submitted a permit renewal application with the required document attachments including copies of State licenses, proof of a valid lease or property ownership, a current list of employees, proof of current insurance, proof of zero balance due for City taxes and fees, business organization documents, and an optional demographic questionnaire:
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06/17/2024/CED/SRando/Item-XX 3 XX-2024
Legacy Nursery LLC
Farm 209 LLC
Farm 209 LLC Manufacturing
Exclusive VIP
Valley Fire House LLC;
Fiji Weed Company LLC;
NOW, THEREFORE, BE IT RESOLVED by the City of Modesto Cannabis Program and Permit Review Committee, that it herby approves the renewal of six (6) non-retail commercial cannabis permits for businesses in the City of Modesto to June 30, 2026.
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06/17/2024/CED/SRando/Item-XX 4 XX-2024
The foregoing resolution was introduced at a regular meeting of the Cannabis Program and Permit Review Committee held on the 17th day of June, 2024 by Committee Member , who moved its adoption, which motion being duly seconded by Chair , was upon roll call carried and the resolution adopted by the following vote:
AYES: Committee Members:
NOES: Committee Members:
ABSENT: Committee Members:
ATTEST: _____________________________
DAVID WRIGHT, Chair
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