2/8/2022
TMG Placerville LLC
dba TREZ Placerville
TREZ c/o Mr. M. Max Del Real
[email protected]
530.892.2998 office
PLACERVILLE 916.717.2664 cell
February 8, 2022
VIA EMAIL
City of Placerville
Office of the City Manager
Attn: Mr. M. Cleve Morris
3101 Center Street
Placerville, CA 95667
Re: "An Open Letter to the Placerville City Manager" from Appellant; TMG Placerville LLC; CCB 19-11
Mr. Morris:
I am writing you today about Item 3 on tonight's Agenda of the Placerville City Council.
Item 3 reads: "Conference with Legal Counsel - Existing Litigation; Government Code § 54956.9 TMG v. City of Placerville et al (Court of Appeal Case No. TBD, El Dorado Superior Court Case No. PC20200631). " (See Attachment #1)
As you know, 1 represent Mr. Edio Delfino and his Commercial Cannabis Business Application, TMG Placerville LLC. Since April of 2019, our team has been focused on one objective: To open and establish a responsible and successful retail cannabis dispensary in the City of Placerville.
Three years later, it appears that the City's "Cannabis Program" appears to be in dire straits. Please consider the following observation as its relates to the City's Cannabis Ordinance No. 1694:
1. Consider the following language from Ordinance No. 1694 against the actions of Sacred Roots, one of the three, original "Retail Winners" Section 5.28.470 - Compliance with State Regulation: "It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of Placerville in compliance with all provisions MAUCRSA and any subsequent state legislation."
Note: State Law requires that all retail cannabis dispensaries are located at least 600-feet from all schools and daycare facilities. However, the Placerville Planning Commission granted a variance to allow Sacred Roots to operate 186-feet away from Sierra Elementary School and 190- feet away from the Federated Church, a distance that goes against Ordinance No. 1694.
Re: TMG Placerville LLC
February 8, 2022
Il. Consider the following language from Ordinance No. 1694 against the actions of Ms.
Kim Cargile and Chuck's Wellness, one of the three, original "Retail Winners" Section 5.28.200 - Transfer of Cannabis Business Permit: "( Any attempt to transfer a commercial cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a sound for revocation of the permit."
Note: According to a news article dated November 11, 2021, Ms. Kim Cargile and her team at Chuck's Wellness is openly and aggressively trying to sell her Placerville dispensary permit in direct violation of Ordinance No. 1694. (See Attachment #2) Ill. Consider the following language from Ordinance No. 1694 against the actions of Reserve House, one of the three, original "Retail Winners" Section 5.28.110 - Expiration of Commercial Cannabis Business Permits: "Each commercial cannabis business permit issued pursuant to this Chapter shall expire twelve (12) months after the date of issuance. Commercial cannabis permits may be renewed as provided in Section 5.28.130." Section 5.28.130. Renewal Applications: "(d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists: (3) The commercial cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application."
Note: Reserve House remains closed for business.
In an effort to end our litigation peacefully against the City of Placerville and arrive at a "win-win resolution," our team requests a meeting with you and your office. In this meeting, our team would like to present to you the stark and striking advantages of issuing TMG Placerville LLC a new retail cannabis permit in the City of Placerville. Our team has the financial resources, the industry knowledge, and the dedication to the City of Placerville and its community to be a safe and successful dispensary business in Placerville - one that will create new and exciting local jobs and contribute hundreds of thousands of tax dollars to the City.
We welcome this meeting. Thank you for your leadership in the City of Placerville.
Signed,
M. Max Del Real
Vice President, TREZ Placerville
CC: Placerville City Council, Mona Ebrahimi, Pierre Rivas, Chief Joseph Wren, Regina O'Connell, William Roby, Sean McCartney, Edio Delfino, Dr. John Oram, and Stephen L. Ramazzini Attachment #1
AGENDA
PLACERVILLE CITY COUNCIL
REGULAR MEETING
TUESDAY, FEBRUARY 8, 2022
DID HANGHO
CLOSED SESSION: 4:00
OPEN SESSION: 5:00 PM
CITY COUNCIL CHAMBERS - TOWN HALL
549 MAIN STREET, PLACERVILLE, CA 95667
PUBLIC ADVISORY: THE CITY COUNCIL CHAMBERS WILL NOT BE OPEN TO THE PUBLIC Consistent with Executive Orders No. N-25-20 and No. N-29-20 from the Executive Department of the State of California, the City Council Chamber will not be physically open to the public and City Council Members will be teleconferencing into the meeting via Zoom Video Communications.
Access the live-stream video feed on the City's website at: www.cityofplacerville.org
PUBLIC PARTICIPATION INFORMATION
Access to the Meeting: If you would like to speak on an agenda item, you can access the meeting remotely. Comments will be limited to three minutes. • Video Conference via a PC, Mac, iPad, iPhone, or Android device: Please CLICK HERE.
If you do not wish for your name to appear on the screen, you may rename yourself with a unique name. If you want to comment during the public comment portion of the agenda, you must select the "Raise Hand" button so that staff knows you would like to speak.
Staff will select you from the meeting cue. Please unmute yourself before speaking.
OR
• Join by phone: 1-669-900-9128 or 1-346-248-7799 or 1-301-715-8592 or 1-312-626- 6799 or 1-646-558-8656 or 1-253-215-8782. NOTE: Your phone number will appear on the screen unless you first dial *67 before dialing the numbers as shown. If you want to comment during the public comment portion of the agenda, you must "Raise your Hand" by pressing *9. Staff will select you from the meeting cue using the last 3 digits of your phone number. Press *6 to unmute yourself before speaking.
ENTER MEETING ID: 813 9162 7329
PASSCODE: 722925
Advance Correspondence/Written Comments: You may also submit your comments by e-mail to [email protected], or you may submit your comments in-person at the Administration Department, City Hall - 4th Floor, 3101 Center Street by 2:00 p.m. the day before the meeting to give the City Clerk adequate time to forward your comments to the City Council.
Regular Meeting of the City Council of February 8, 2022 1 Visit us on "The Weh" at www.citvofnlacerville.oro
Advance Correspondence/Written Comments relating to an agenda item other than "Public Comment" and received by 12:00 pm on the seventh day preceding the Council meeting will be attached to the agenda item as part of the agenda package. Advance Correspondence/Written Comments received after that time will be provided to the members of the City Council and will become part of the public record, they will not be read aloud at the time of the meeting, nor posted on the City's website. Such comments are available for inspection at the above address during normal business hours.
CITY COUNCIL MEMBERS
KARA TAYLOR, MAYOR
MICHAEL SARAGOSA, VICE-MAYOR
PATRICIA BORELLI
JACKIE NEAU
DENNIS THOMAS
M. CLEVE MORRIS MONA EBRAHIMI REGINA O'CONNELL
CITY MANAGER CITY ATTORNEY CITY CLERK
4:00 P.M. CLOSED SESSION
Item 1: Conference with Labor Negotiators
Patrick Clark, Cleve Morris, Dave Warren
Government Code § 54957.6
Bargaining Unit: Local 39
Item 2: Conference with Legal Counsel - Liability Claims Government Code § 54956.95
Claimant: Virginia Hunt
Agency claimed against: City of Placerville
Item 3: Conference with Legal Counsel - Existing Litigation Government Code § 54956.9
TMG v. City of Placerville et al (Court of Appeal Case No. TBD, El Dorado Superior Court Case No. PC20200631).
Item 4: Conference with Legal Counsel - Anticipated Litigation Government Code § 54956.9, 54956.9(d)(2) and (e)(1)
5:00 P.M. OPEN SESSION
1. CALL TO ORDER & PLEDGE OF ALLEGIANCE TO THE FLAG
2. ROLL CALL: Borelli, Neau, Saragosa, Taylor, Thomas
Regular Meeting of the City Council of February 8, 2022 2 Visit us on "The Weh" at www.citvofnlacerville.orp
3. CEREMONIAL MATTERS
4. CLOSED SESSION REPORT - City Attorney Ebrahimi
5. ADOPTION OF AGENDA
6. ANNOUNCEMENTS/PRESENTATIONS TO THE PUBLIC
6.1 Mark Acuna - Placerville Fire Safe Council
6.2 Brief Comments by the City Council
7. CONSENT CALENDAR
NOTE: All matters listed under the Consent Calendar are considered routine and will be enacted by one motion by roll call vote unless any member of the Council wishes to remove an item for discussion. The reading of the full text of all Resolutions will be waived unless a Councilmember requests otherwise.
7.1 Approve the Minutes of the Regular City Council Meeting of January 25, 2022 (Ms. O'Connell)
7.2 Approve the Accounts Payable Register for February 1, 2022 (Mr.
Warren)
7.3 Approve the Payroll Register for Pay Period 16 (Mr. Warren)
7.4 Receive and File Public Records Requests (Ms. O'Connell)
7.5 Acknowledge and File the Quarterly Investment Report (Mr. Warren)
7.6 Appoint Councilmember Thomas as the Primary Representative on Pioneer Community Energy Board of Directors and Vice-Mayor Saragosa as the Alternate (Ms. O'Connell)
Att. A: Councilmember Committee Appointments
8. PUBLIC COMMENT - NON-AGENDA ITEMS
This portion of the meeting is reserved for persons wishing to address the Council on any matter not on the Agenda that is within the subject matter jurisdiction of the City Council.
State law prohibits the Council from acting on items not listed on the Agenda except by special action of the City Council under specified circumstances.
Regular Meeting of the City Council of February 8, 2022 3 Visit us on "The Weh» at www.citvofnlacerville.oro
The Mayor reserves the right to limit the speaker's time to three minutes. You are not allowed to make personal attacks on individuals or make comments which are slanderous or which may invade an individual's personal privacy.
8.1 Written Communication
Written Communication items are comments received on non-agenda items pertaining to business within the jurisdiction of the City Council.
These are not items for discussion but can be referred to staff or requested by Council to be placed on a future agenda.
8.2 Oral Communication
9. ITEMS PULLED FROM THE CONSENT CALENDAR
10. ORDINANCES
11. PUBLIC HEARINGS
12. DISCUSSION/ ACTION ITEMS
12.1 Hold a Public Hearing and adopt a resolution approving a Hotel Incentive Agreement with Apple Hill Hospitality, LLC, outlining additional incentives for the construction of a hotel in Placerville.
Att. A: Resolution
Att. B: Draft Agreement
Att. C: Projected TOT
12.2 Adopt the City's Updated Economic Strategic Plan as Recommended by the Placerville Economic Advisory Committee (Mr. Morris) Att. A: 2013 Adopted Plan
Att. B: Draft Updated Plan
12.3 Review Recommendations from the Placerville Economic Advisory Committee Regarding Changes to the Zoning Code for Formula Business (Mr. Morris)
Att. A: Survey
Att. B: Survey Results
12.4 Adopt a resolution approving an increase in the Traffic Impact Mitigation (TIM) Fees equivalent to the change in the Engineering New Record Construction Cost Index from January 2021 to Regular Meeting of the City Council of February 8, 2022 4 Visit us on "The Weh" at www.citvofnlacerville.oro
December 2021, effective April 11, 2022, as shown in Attachment "A" to the Resolution. (Ms. Neves)
Att. A: Resolution
12.5 Adopt a Resolution Re-Ratifying the Proclamation of a State of Emergency by Governor Gavin Newsom (March 4, 2020) As
Applicable in the City and Re-Authorizing Teleconference Meetings of its Legislative Bodies of the City Pursuant to the Ralph M. Brown Act (Mr. Morris)
Att. A: Resolution
12.6 Cancel the Regularly Scheduled City Council Meeting on November 8, 2022 and Schedule a Special Meeting in its Place (Ms. O'Connell)
13. COUNCIL REPORTS FROM OTHER AGENCY MEETINGS
• El Dorado County Transit Authority
Mayor Taylor, Councilmember Neau
• El Dorado County Transportation Commission
Mayor Taylor, Councilmember Borelli, Councilmember Thomas • LAFCO (El Dorado Local Agency Formation Commission)
Councilmember Neau
• SACOG (Sacramento Area Council of Governments)
Vice-Mayor Saragosa
Pioneer Community Energy Board of Directors
Vice-Mayor Saragosa
• Placerville Fire Safe Council
Councilmember Borelli
• City/County Two by Two Committee
Mayor Taylor, Vice-Mayor Saragosa
• Opportunity Knocks/Continuum of Care
Councilmember Thomas
14. REQUESTS FOR FUTURE AGENDA ITEMS - (Requests for Future Agenda Items Requires a Majority Concurrence of the Council)
15. CITY MANAGER AND STAFF REPORTS
Regular Meeting of the City Council of February 8, 2022 5 Visit ne on «The Weh" at waw ritunflacerville nro
15.1 Receive and File January 2022 Police Report - Stats (Chief Wren) Att. A: Stats - January 2022
15.2 Receive and File January Fire Station 25 Run Report (Chief Cordero) Att. A: January Report
16. UPCOMING ITEMS
Items tentatively scheduled for the next City Council meeting include:
Engineering Analyst Position, Building Official Position, Vietnam Memorial and Monument Garden Recognition, Hangtown Creek Culvert and Parking Lot Restoration, Broadway Sidewalks - REY Amendment 6, Broadway Sidewalks - Closed Session, Ratifying Town Hall Change Orders and Budget Ăppropriation, Hangtown Creek Sewer- Clay to Locust, Measure J Report, Special Event Policy and Process, and Aquatic Funding Request 22/23.
17. ADJOURNMENT
The next regularly scheduled Council meeting will be held on February 22, 2022, 4:30 P.M. Closed Session, 5:00 P.M. Regular Meeting Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act, if you need special assistance to participate in the Council meeting, please contact the City Clerk's Office (530)642-5531 within 48 hours of the meeting.
Government Code 54950 (The Brown Act) requires that a brief description of each item to be transacted or discussed be posted at least 72 hours prior to a regular meeting. The City posts the Agenda on the City Hall window and on the City's website: www.cityofplacerville.org.
CERTIFICATION OF AGENDA POSTING
I, Erin Strawn, Deputy City Clerk of the City of Placerville, declare that the foregoing Agenda for the February 8, 2022, Regular Meeting of the Placerville City Council was posted and available for review on February 4, 2022 at the City Hall of the City of Placerville, 3101 Center Street, Placerville, CA 95667.
The Agenda is also available on the City website at www.cityofplacerville.org Sit Shown
Attest:
Erin Strawn, Deputy City Clerk
Regular Meeting of the City Council of February 8, 2022 6 Visit us on "The Weh" at www.citvofnlacerville.nro
Attachment #2
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Home / Retail
California marijuana veteran selling businesses in sign of wider market woes
By John Schroyer, Senior Reporter
November 11, 2021
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The retail space at A Therapeutic Alternative in Sacramento, California. (Photo courtesy of A Therapeutic Alternative
Kimberly Cargile has had enough, and she's ready to sell.
The 20-year-veteran of California's marijuana industry told MJBizDaily she's looking for a buyer for her Sacramento retail marijuana shop, A Therapeutic Alternative, and eight other licensed affiliated businesses.
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After weathering nearly four years of turbulence - including a transition to a newly regulated market, high state and local taxes as well as fierce competition from untaxed underground marijuana businesses - Cargile decided it's time for a change.
She knows she's not alone.
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"This is something that's happening to everyone, especially self-made, self- invested companies, legacy companies. It's really just kind of like, the time has come." Cargile still has plenty of confidence in the market
overall, but a major drop in sales through much of
2021 forced her hand.
"We are currently meeting with buyers and looking at
offers," Cargile told MJBizDaily in late October.
Cargile said she's hoping for a price in the range of
$30 million for her nine businesses, a price she Kimberly Cargile believes reflects the combined revenue.
Looking ahead, Cargile is considering going back to school to finish a medical doctorate instead of staying in the marijuana industry and is interested in doing research in medical cannabis.
Cargile's exit is noteworthy: She sits on the board of the National Cannabis Industry Association. And she's been active in trying to shape the cannabis industry in California and nationally.
After beginning as a farmhand in Humboldt County in 2001, Cargile moved to Sacramento in 2006 and immersed herself in the politics of marijuana.
She volunteered for Americans for Safe Access, the National Organization for the Reform of Marijuana Laws (NORML), the Marijuana Policy Project, the California Growers Association and the California Cannabis Industry Association.
Cargile helped organize rallies, testified at hearings in all levels of government and had input on the 2015 California law that formed the underpinnings of the state's cannabis market today: the Medical Marijuana Safety and Regulation Act (MMRSA). •- -
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after the state's updated regulations allowed marijuana companies such as hers to operate as for-profit entities instead of only as not-for-profits.
In addition to her flagship retail store, ATA - which is registered with the state as A.T.A.C.H.S. - Cargile and her co-owners want to sell:
Retailer C.C.R.C., doing business as (DBA) Davis Cannabis Collective, in Davis.
Retailer M.E.H.C., DBA Dixon Wellness Collective, in Dixon.
Retailer Conscious Consulting & Yoga, DBA Chuck's Wellness Collective, in Placerville.
Retailer D.G.K.C., DBA Napa Cannabis Collective, in Napa.
Retailer C.R.&D., DBA Modesto Cannabis Collective, in Modesto.
Manufacturer and distributor C.C.M.C., DBA Khemia, in Sacramento.
Outdoor cultivator Yolo Family Farms, in Yolo County.
Outdoor cultivator Woodland Roots, in Yolo County.
Why she's selling
Cargile said a major drop in sales over the past half year led to drastic budget cuts and the hunt for a buyer.
"I've personally spent the last six months cutting, every month," Cargile said, adding that ATA in Sacramento was down $1 million in sales revenue from the previous year and that two associated outdoor farms she co-owns are down $2 million in sales for the same time frame.
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"We were kind of planning on waiting until federal legalization to do an exit. But we had to start looking at it this year, because it seems like the companies that are able to thrive and grow are those that have teamed up with a large corporation of some sort, an MSO or someone who's public."
The nine operations she's selling come with 10 marijuana business licenses - one company holds both manufacturing and distribution licenses; the others are for retail or cultivation.
Ideally, they would all be sold as a package, but Cargile and her partners are willing to sell them individually.
"We're looking for the right offer, the right buyer. Someone with a good reputation who knows what they're doing," she said.
Not the only one
The market landscape in California - the largest marijuana market in the world - has gotten harsher and more competitive, particularly for smaller companies that don't have easy access to working capital or standard business loans, Cargile said. - - -- :
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becoming extremely hard to compete with either one of those." That's affecting a large portion of the industry, which means her business might be part of a much larger - but, so far, mostly undetected - wave of exits, whether through acquisition or by simply shutting down with no fanfare. "I think 2022 is going to be another hard year for the industry," Cargile predicted. "The stigma (around marijuana in general) is decreasing, so bigger companies are coming on board, investing, have had time to do their research, and they're starting to buy up companies, and they have big money, so they're able to do much more, as far as advertising, hiring lobbyists. That's the name of the game." John Schroyer can be reached at [email protected].
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