HomeMy WebLinkAbout2C Public CommentAustin Legal Group, APC
LAWYERS
3990 OLD TOWN AVE, STE A-101
SAN DIEGO, CA 92110
LICENSED IN
CALIFORNIA, TEXAS & HAWAII
TELEPHONE
(619) 924-9600
FACSIMILE
(619) 881-0045 Writer’s Email:
gaustin@austinlegalgroup.com
November 9, 2023
Via Email Only
City Council
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
RE: November 9, 2023 City Council Hearing Comment
Agenda Item #2C
Dear City Council Members:
Austin Legal Group, APC submits this letter on behalf of our client Organic Solutions of
the Desert, LLC (“Organic Solutions”) with respect to agenda Item #2C on the City of Palm
Springs’ (“City”) November 9, 2023 City Council Agenda. As explained below, the City has failed
to make the requisite findings to prohibit “transfers” of licenses. For the reasons set for below,
Organic Solutions respectfully requests the City strike the prohibition on transfers from the
moratorium. This letter is expressly intended to be part of the administrative record.
According to the October 26, 2023 staff report and City Council hearing, the purpose of
the moratorium “is to pause consideration of new and transfer cannabis retail businesses, to allow
for the City to study and consider potential amendments to the Municipal Code to set standards
and procedures to address concerns of potential over-saturation.” For that reason, the City adopted
a 45-day moratorium on any City approval of any “new or transfer application for a cannabis retail
business as those terms are defined in 5.55.50 and 5.55.130 respectively.” Today, the City is
looking to extend that moratorium for the statutory 10 months and 15 days. In order to do so, the
City must make findings that that “there is a current and immediate threat to the public health,
safety, or welfare, and that the approval of additional subdivisions, use permits, variances,
building permits, or any other applicable entitlement for use which is required in order to
comply with a zoning ordinance would result in that threat to public health, safety, or
welfare.”1
1 Cal. Gov. Code section 65858 (c)
11/9/2023
Public Comment
Item 2C
November 9, 2023
Page 2
The City has not and cannot make the requisite findings that (i) there is a current threat to
public health, safety, or welfare due to Section 5.5.130 2 or (ii) that future approvals pursuant to
section 5.55.130 would result in a threat to public health, safety, and welfare. Rather, the City has
stated that the threat is a result of “the anticipated applications for cannabis operations…and the
City’s interest in protecting the viability of its commercial districts and preventing nuisances.”
While this may be a rational public health and safety concern for the issuance of new licenses, it
has absolutely no relevance to the transferability of an existing license. The City has expressly
stated that it “has a substantial interest in ensuring that the City’s cannabis industry is sustainable.”
That interest is furthered by allowing to existing operators to conduct business as usual, including
the sale and transfer of its license. There is simply no impact to the viability of commercial districts
by prohibiting ownership transfers. Similarly, a prohibition on ownership transfers would not
prevent nuisances.
For the reasons above, we request the City Council amend the proposed ordinance as
follows:
Section 1 A-B [no change in text]
C. Purpose. The purpose of this moratorium is to pause consideration of new and transfer
cannabis retail businesses, to allow for the City to study and consider potential amendments
to the Municipal Code to set standards and procedures to address concerns of potential
over-saturation.
Section 2 Extension of Moratorium. Now, therefore, in accordance with California
Government Code Section 65858, the City Council adopts this Ordinance, extending
Ordinance No. 2085 the terms of which are incorporated herein by reference, with the
following changes striking Section 2(A)(iv) and striking the words “or transfer” in
Section 2(B),
Section 3– 6 [no change in text]
Sincerely,
AUSTIN LEGAL GROUP, APC
Gina M. Austin
2 Section 5.55.130 prohibits the sale of any or all ownership interests or control of an Adult-Use Cannabis Business
unless the transferee has applied for an been issued an Adult Use Cannabis Permit, is fully qualified to operate the
business and is approved by the City Manager.
11/9/2023
Public Comment
Item 2C