HomeMy WebLinkAbout3/7/2012 - STAFF REPORTS - 1A RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, UPHOLDING THE ACTION
OF THE CITY MANAGER TO REVOKE THE MEDICAL
CANNABIS REGULATORY PERMIT FOR CANNAHELP
CORPORATION AT 505 INDUSTRIAL PLACE; ZONE C-M.
WHEREAS, on February 3 2010, the City Council adopted Resolution 22666, awarding
a medical cannabis corporative / collective regulatory permit to Cannahelp Corporation
at 505 Industrial Place, and
WHEREAS, on March 4, 2010, the City Building & Safety Official ordered the entire
building at 505 Industrial Place vacated and shut down due to illegal construction and
hazardous electrical conditions caused by work performed by Cannahelp without
building permits, and
WHEREAS, on April 7, 2010, the City Council reviewed Cannahelp Corporation's
regulatory permit for possible rescission due to improper tenant improvements
performed without building permits and cultivation of significant amounts of cannabis on
the premises prior to issuance of its certificate of occupancy. The Council voted 3-2
(Mills, Weigel opposing) to not rescind the permit, and
WHEREAS, on May 10, 2010, the City issued the Certificate of Occupancy (C of O) for
Cannahelp Corporation to occupy the office and retail part of its tenant space at 505
Industrial Place, and
WHEREAS, on September 28, 2010, the City issued the C of O for Cannahelp
Corporation to occupy the cultivation rooms portion of its tenant space at 505 Industrial
Place, and
WHEREAS, on October 5, 2011, Cannhelp Corporation closed its operation at 505
Industrial Place due to Cannahelp's failure to pay rent, and
WHEREAS, pursuant to Zoning Code Section 93.23.15 (L)(4)(A) and 93.23.15 (L)(4)(B)
a medical cannabis regulatory permit may be revoked if the cooperative or collective
operations cease for more than ninety (90) calendar days.
WHEREAS, on February 2, 2012, the City Manager notified Stacy Hochanadel of
Cannahelp Corporation that the medical cannabis regulatory permit for Cannahelp
Corporation at 505 Industrial Place was revoked, and;
WHEREAS, pursuant to Zoning Code Section 93.23.15 (L)(5), the decision of the City
Manager is appealable as follows: ��Mma\ Yta'
wefty lk
3-TVI
Resolution No. March 7, 2012
Page 2
"Any decision regarding the approval, conditional approval, denial, or
revocation of a regulatory permit may be appealed to the City Council.
Said appeal shall be made by a notice of appeal from the person
appealing within thirty (30) days from the date of the decision. The appeal
shall be accompanied by a fee, which shall be established by resolution of
the City Council amended from time to time, and a written, verified
declaration setting forth the basis for the claim that the permit was
improperly approved, denied, conditioned or revoked. Filing of an appeal
shall suspend the issuance of all regulatory permits until action is taken on
the appeal."
WHEREAS, on February 6, 2012 the City received a letter of appeal from Cannahelp
Corporation, appealing the action of the City Manager to revoke the medical cannabis
regulatory permit for Cannahelp Corporation , and
WHEREAS, on February 23, 2012 the City received a supplemental letter from
Cannahelp setting forth its basis for appeal of the City Manager's revocation of its
medical cannabis permit, and
WHEREAS, a notice of public hearing of the City Council of the City of Palm Springs to
consider the appeal by Cannahelp Corporation was given in accordance with applicable
law; and
WHEREAS, on March 7, 2012, a public hearing was held by the City Council in
accordance with applicable law to consider the appeal by Cannahelp Corporation, and
WHEREAS, the City Council has carefully reviewed and considered all of the evidence
presented in connection with the meeting on the appeal, including but not limited to the
staff report, and all written and oral testimony presented.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
Section 1: Cannahelp Corporation ceased operations for more than ninety (90) days,
from October 5, 2011 through the present time
Section 2: In its letters of February 6, 2012 and February 23, 2012, Cannahelp
Corporation failed to establish a basis for its claim that the medical
cannabis regulatory permit was improperly revoked by the City Manager
on February 2, 2012.
Section 3: Resolution 22666 awarding a medical cannabis regulatory permit to Stacy
Hochanadel of Cannahelp Corporation at 505 Industrial Place is no longer
in effect.
Resolution No. March 7, 2012
Page 3
NOW, THEREFORE, BE IT RESOLVED that, based upon the foregoing, the City
Council hereby denies the appeal request and upholds the action of the City Manager
taken on February 2, 2012, to revoke the medical cannabis regulatory permit for
Cannahelp Corporation at 505 Industrial Place.
ADOPTED, this seventh day of March, 2012.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
Resolution No. March 7, 2012
Page 4
CERTIFICATION:
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
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1FORN`PP CITY COUNCIL STAFF REPORT
DATE: March 7, 2012 PUBLIC HEARING
SUBJECT: AN APPEAL OF THE RESCISSION OF THE MEDICAL CANNABIS
COOPERATIVE / COLLECTIVE REGULATORY PERMIT FOR "CANNAHELP
CORPORATION" (CASE MC 09-001) AT 505 INDUSTRIAL PLACE; ZONE C-M
(COMMERCIAL-MANUFACTURING); SECTION 23.
FROM: David H. Ready, City Manager
BY: Department of Planning Services
SUMMARY
The City Council will consider an appeal by Stacy Hochanadel of Cannahelp Corporation,
seeking to overturn the action of the City Manager to revoke the medical cannabis collective /
cooperative regulatory permit for Cannahelp Corporation, at 505 Industrial Place. The City
Manager notified the appellant on February 2, 2012 that its regulatory permit to operate a
medical cannabis collective / cooperative at 505 Industrial Place was revoked because it had
ceased operations for longer than ninety(90) days.
RECOMMENDATION:
1. Open the public hearing and receive public testimony.
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, UPHOLDING THE ACTION OF THE CITY
MANAGER REVOKING THE MEDICAL CANNABIS COOPERATIVE / COLLECTIVE
REGULATORY PERMIT FOR CANNAHELP CORPORATION, AT 505 INDUSTRIAL
PLACE AND ESTABLISHING THAT RESOLUTION 22666 OF THE CITY COUNCIL
OF PALM SPRINGS, CALIFORNIA GRANTING THE ORIGINAL PERMIT TO
CANNAHELP CORPORATION IS NO LONGER IN EFFECT."
PRIOR ACTIONS:
On February 3, 2010, the City Council awarded a medical cannabis cooperative / collective
regulatory permit to Cannahelp Corporation at 505 Industrial Place via Resolution 22666.
On March 4, 2010, the City Building & Safety Official ordered the entire building at 505
Industrial Place vacated and shut down due to illegal construction and hazardous electrical
ITEM NO._LA
City Council Staff Report March 7, 2012
Case: MC 09-001 Appeal of City Manager Action to Revoke Permit Page 2 of 4
conditions caused by work performed by Cannahelp without building permits.
On April 7, 2010, the City Council reviewed Cannahelp Corporation's regulatory permit for
possible rescission due to improper tenant improvements performed without building permits
and cultivation of significant amounts of cannabis on the premises prior to issuance of its
certificate of occupancy. The Council voted 3-2 (Mills, Weigel opposing) to not rescind the
permit.
On May 10, 2010, the City issued the Certificate of Occupancy (C of O) for Cannahelp
Corporation to occupy the office and retail part of its tenant space at 505 Industrial Place.
On September 28, 2010, the City issued the C of O for Cannahelp Corporation to occupy the
cultivation rooms portion of its tenant space at 505 Industrial Place.
On October 5, 2011, Cannahelp Corporation closed its operation at 505 Industrial Place.
On December 21, 2011, the City received an application to amend the medical cannabis
regulatory permit for Cannahelp Corporation, changing the address associated with the permit
from 505 Industrial Place to 913 Crossley Road. No action has been taken on this application.
On February 2, 2012, the City Manager notified Cannahelp Corporation that its medical
cannabis regulatory permit was being revoked.
On February 6, 2012, the City received a letter from Cannahelp Corporation appealing the
action of the City Manager to the City Council.
On February 23, 2012 the City received a supplemental letter from Cannahelp Corporation
setting forth the basis for the appeal claim.
BACKGROUND AND SETTING
Cannahelp Corporation was established as one of the first three medical cannabis regulatory
permit holders under Zoning Code Section 93.23.15 (formerly 93.22.00). As noted above,
Cannahelp Corporation received its certificate of occupancy ("C of O") on May 20, 2010.
Pursuant to Zoning Code Section 93.23.15 (L)(4)(A) and 93.23.15 (L)(4)(B) a medical
cannabis regulatory permit may be revoked if the cooperative or collective operations cease
for more than ninety (90) calendar days. As noted in the City Manager's letter dated February
2, 2012, Cannahelp Corporation was closed as of October 5, 2011.
APPEAL AND STAFF ANALYSIS;
Appeals are processed in accordance with Municipal Code Section 2.05 ("Appeal to City
Council'). Pursuant to Section 2.05.030; "A person aggrieved by an action taken by an
administrative officer or administrative agency of the city may appeal the action to the city
council, if the action is made appealable by applicable provision of the Palm Springs Municipal
02
City Council Staff Report March 7, 2012
Case: MC 09-001 Appeal of City Manager Action to Revoke Permit Page 3 of 4
Code or other city ordinance,...."
Pursuant to Zoning Code Section 93.23.15 (L)(5), the decision of the City Manager is
appealable.
"Any decision regarding the approval, conditional approval, denial, or revocation
of a regulatory permit may be appealed to the City Council. Said appeal shall be
made by a notice of appeal from the person appealing within thirty (30) days from
the date of the decision. The appeal shall be accompanied by a fee, which shall
be established by resolution of the City Council amended from time to time, and a
written, verified declaration setting forth the basis for the claim that the permit was
improperly approved, denied, conditioned or revoked. Filing of an appeal shall
suspend the issuance of all regulatory permits until action is taken on the appeal."
Cannahelp Corporation gave no explanation or grounds for its appeal in its letter date stamped
February 6, 2012 but provided a supplemental letter on February 23, 2012. In this letter
Cannahelp states that the controller assigned to make rental payments failed to do so and
thus Cannahelp was evicted from 505 Industrial Place. In its February 23, 2012 letter,
Cannahelp Corporation provides a narrative that outlines its efforts to find a new space to
lease. It further notes that it submitted an application on December 21, 2011 to amend its
cannabis permit to change the address from 505 Industrial Place to 913 Crossley Road (77
days after the closure of the business on October 5, 2011).
News reports on October 5, 2011 noted Cannahelp Corporation was evicted because it owed
money for back rent and for costs associated with construction of the tenant improvements in
the building.
Pursuant to Zoning Code section 93.23.15 (L)(4)(A and B) 4.(":Enforcement')
"...The City Manager may revoke a medical marijuana regulatory permit if any of
the following, singularly or in combination, occur.
a. The City Manager determines that the cooperative or collective has failed
to comply with this Section, any condition or approval, or any agreement or
covenant as required pursuant to this Section; or
b. Operations cease for more than 90 calendar days, including during
change of ownership proceedings;..."
As noted above, Cannahelp ceased operations for more than ninety (90) days, from October
5, 2011 through the present time and thus the City Manager notified Cannahelp that its
medical cannabis regulatory permit was revoked.
In considering the appeal by Cannahelp, the council by its decision may reverse, modify or
affirm the administrative action taken as it deems necessary and appropriate.
NOTIFICATION
Notice of the scheduling of this appeal hearing was provided via written letter to the appellant
on February 23, 2012.
03
City Council Staff Report March 7, 2012
Case: MC 09-001 Appeal of City Manager Action to Revoke Permit Page 4 of 4
FISCAL IMPACT: No fiscal impact. n
ig A. Erwing, AICP Thomas Wilson, sistant City Manager
Director of Planning Services
David H. Ready, City tr r
Attachments:
1. Vicinity Map
2. Draft resolution
3. Ready to Hochanadel letter dated February 2, 2012
4. Appeal letter date stamped February 6, 2012 and supplemental letter dated February
23, 2012.
5. News articles dated October 5, and October 6, 2011
6. Proof of notice of hearing to Appellant
04
Y; City of Palm Springs
David H.Ready,Esq.,Ph.D.
yi= A City Manager
3200 East Tahquita Canyon Way,Palm Springs CA 92262
lFORN�P Tel760.322.9350• Fax 760.323.8207 •TDD 760.864.9527
David.Ready@palmspringsca.gov a w -Palmspringsca.gov
February 2,2012 ps.cannahelo(@¢mail.com
Stacy Hochanedel, President
Cannahelp Corp
666 Vista Oro Road
Palm Springs, CA 92264
Re: Revocation of Medical Marijuana Regulatory Permit
Dear Mr. Hochanadel:
You are the operator of a medical cannabis cooperative or collective in the City, specifically the one
referred to as "Cannahelp." The operation of medical cannabis cooperatives/collectives are subject to
the Palm Springs Municipal Code ("PSMC"), specifically section 93.23.15 of the zoning code ("PSZC").
The purpose of this letter is to notify you of the revocation of your regulatory permit as a cannabis
cooperative or collective.
A medical cannabis regulatory permit may be revoked if the cooperative or collective has failed to
comply with the PSZC, or if operations cease for more than ninety (90) calendar days. (PSZC §§
93.23.15(L)(4)(A);93.23.15(L)(4)(B)).
Your originally permitted cannabis cooperative or collective,Cannahelp, located at 505 East Industrial
Place,Suite A, was closed as of October 5,2011. Because Cannahelp no longer operates from the
address listed in its regulatory permit,and has ceased operations at that location for more than ninety
(90)calendar days,Cannahelp is no longer in compliance with the conditions of its regulatory permit.
Should you wish to contest this decision, you must properly file a written letter of appeal to the City
Council within 30 calendar days of the date of this correspondence in accordance with the procedures
listed in PSZC section 93.23.15(L)(5). Pursuant to PSMC section 2.05.030,your appeal shall be filed with
the City Clerk and shall be accompanied by a deposit toward the City's cost to process your appeal, in
the amount of$750.00,as adopted by City Council Resolution No. 22458.
Sincerely,
David Ready, Esq., P
City Manager
05
PO Box 2743,Palm Springs CA 92263
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2912 FEB -6 PM 4: 21
913 Crossley Road J 4 Nr`-5 I rs "_
CITY CLEP-K
Palm Springs CA,92264
Office 760 327-2504
Dear Mr.Thompson
I am writing this letter today to contest the revocation of Cannahelp's regulatory Permit.
I wish to appeal this to the city council at the next available meeting.
Thank You for your time.
Sincerely
Stacy Hochanadel
06
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CHEEK PAIN $750.00
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RECEIVED
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Cannahelp Collective2U12FEB 23 PH 2: 01
1:,H t S 1 h 1 '1 .I-'' ,
913 Crossley Rd. CITY CLERK
Palm Springs CA. 92264
City of Palm Springs
Department of Planning
3200 Tahquitz Canyon
Palm Springs Ca. 92262
February 23, 2012
Attention Ken Lyon, Associate Planner
RE; APPEAL Cannahelp Revocation of Medical Marijuana Regulatory Permit
Dear Mr. Lyon,
As you know Cannahelp was forced out of 505 Industrial Place approx... October
5, 2011.
Cannahelp had a lender that was totally in control of funds with a controller, the
controller failed to pay rent to landlord and Cannahelp was evicted. We then had
a meeting with Doug Holland and Craig Ewing to discuss our options. At that
meeting we discussed a concern one building owner Ralph Comber had, he
wanted to have the city give him a letter that he would not be in jeopardy of
losing his property if he rented to
Cannahelp. The City could not do that. At this meeting Craig Ewing told us that the
90 day window was running to have the application filed, we had it filed in 77
days. Cannahelp at that time had Steve Lyle as a broker and was in negotiations
for a new location on Gene Autry.
This went back and forth for 3 to 4 weeks one of the building owners was out of
the country, when he returned he said no. We spoke to Mr. Comber about the
building he had for lease at 2071 Executive Dr. this location we felt was not safe
08
but this was still an option of last resort. We contacted broker Dick Baxley and
looked at a site north side of 1-10 but it was within 1000 ft. of another collective.
At the same meeting with Dick we found a building on the south side of i-10 on
Garnet Rd. the old BLM and American Cab building. Dick contacted the owner and
he was interested in leasing to Cannahelp but was going to New York and would
give us an answer when he returned in two weeks. His answer was no lease but
would sell the building for $1.1 million. More time lost. We looked at a building
491 Sunny Dunes, Dave Lyons owner, he had to think about it, his answer was
no,one more week gone. We spoke to John Stiles to look at a building on Alejo
this was where the school district was moving out of. John's concern was this is
city owned property and it would take a long time to get approvals and not fit in
to the 90 day window to file. On 12/10/11 we found a building at 913 Crossly Rd.
(Noia Building) we contacted the owner Mr. Noia and he was more than happy to
lease to Cannahelp. Mr. Noia had to go for treatments in Los Angeles and would
draft a lease when he returned. We received and signed the lease 12/20/11. Now
we could file the application which we did on 12/21/11 - 77 days from the closing
of the old location. We could not file the application without a new address and a
signed lease or intent to lease. We have paid $24,000 to date in lease payments
and are due to pay $12,000 more. As of 2/23/12 it has been 65 days since we filed
the application and have been waiting to get on the agenda for a change of
address. Now we face
Revocation of are regulatory permit for being closed for 90 calendar days. We
have learned we are tentatively scheduled for the March 21 meeting of the City
Council. This will add 28 more days. We request the
City Council to overturn the City Managers decision for the revocation of
Cannahelps Regulatory permit.
Thank you for your help in this matter
Stacy Hochanadel
09
CC: Steve Pougnet - Ginny Foat - Chris Mills - Paul Lewin - Rick Hutcheson
David Ready— Craig Ewing— Doug Holland
10
mahelp Evicted By Palm Springs Landlord- Print This Story News Story-KESQ Palm S... http://www.kesq.coriVprint/29399005/detail.htrffl
KESQ.com
Cannahelp Evicted By Palm Springs Landlord
Building Owner Claims Medical Marijuana Facility Owner Owed Thousands
By Erik Sandoval, iReporter and Digital Content Director
POSTED: 2:13 pm PDT October 5, 2011
ENLARGE
Palm Springs City Councilmembers
agreed to keep Cannahelp open, and
opened the possibility of a third facility
to open.
PALM SPRINGS, Calif. -- One of the pioneering medical marijuana facilities in the Coachella Valley was evicted from its Palm Springs location on
Wednesday, according to the building's owner.
Cannahelp's owner Stacy Hochanadel got the news from his landlord Michael Rice, who told News Channel 3 Hochanadel owed back rent nearing
$60,000.
Rice also said Hochanadel owed money from the construction of his Cannahelp storefront, which faced many delays after the Palm Springs City
Council approved his organization as one of the first two in the city to operate a legal medical marijuana facility.
KESQ was unable to contact Hochanadel, but the manager of the business said Cannahelp was turning into a mail order delivery service that
customers can access online.
The website reads, "While Cannahelp moves to a new home, we will be serving our member's medical needs by DELIVERY ONLY! Please place your
order online by selecting your medication through the menu tab or simply call us at 760-327-2504."
Hochanadel's efforts to establish some kind of medical marijuana dispensary have lasted years in the Coachella Valley,
F•+
1-+
A 2 2/22/2012 8:23 AM
nnahelp Evicted By Palm Springs Landlord-Print This Story News Story- KESQ Palm 5... http://www.kesq.corfVprint/29399005/detail.htrffl
He began his efforts in Palm Desert, and was arrested in 2006 after officers searched his business and found him selling marijuana illegally.
In 2008, Riverside County Superior Court Judge David Downing ruled that a search warrant used to raid the Palm Desert dispensary was flawed
because sheriffs investigator had not been trained to handle medical marijuana cases.
The sheriffs department alleged the dispensary violated the state's medical marijuana law because it was allegedly turning a profit.
In August 2009, a three-judge panel of the 4th District Court of Appeal in San Diego unanimously ruled that Downing wrongly threw out the search
warrant, and the Riverside County District Attorney's Office resumed the prosecution in late January 2010.
The case had its first day in court in April, 2011, but was delayed by a judge for an unknown amount of time.
Previous Stories:
• June 15, 2011: Palm Springs Considers Medical Marijuana Tax
• April 4, 2011: Palm Springs Marijuana Dispensary Owner Goes To Trial
• December 2, 2010: Trial Date Set For Medical Marijuana Dispensary Owner
• October 29, 2010: INSIDE STORY: Highs and Lows of Medical Marijuana
• October 29, 2010: ONLY ON 3: Highs And Lows Of Medical Mariivana
• October 13, 2010: Palm Springs Marijuana Dispensary Reopens After Raid
• October 5, 2010: California Decriminalizes Possession Of Small Amount Of Mariivana
• May 20, 2010: Cannabis Dispensaries Opening In Palm Springs
• April 7, 2010: Pot Dispensary Could Lose License Tonight
• March 5, 2010: Marijuana Dispensary Hit By Code Enforcement
• February 22, 2010: Medical Marijuana Dispensary Owner Back In Court
• January 20, 2010: Palm Springs To Mull Over Marijuana
• September 26, 2007: Cannahelp Owner Due In Court Wednesday
Copyright 2011 KESQ. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.
The following are comments from our users. Opinions expressed are neither created nor endorsed by KESQ-TV or KESQ.com. Comments are
moderated by the community. To report an offensive or otherwise inappropriate comment click the "Flag"link that appears beneath that comment.
Comments that are flagged will alert our editorial staff.
M—'
iV
A 2/22/2012 8:23 AM
nnaHelp Marijuana Dispensary Evicted- KPSP Local 2 http://www.kpsplocal2.com/news/local/story/CannaHelp-Marijuana-Dispensary-Evicted/1...
CannaHelp Marijuana Dispensary Evicted
Reported by: KPSP Local 2 News
Email: news@kpsplocal2.com
Published: 10/06/2011 6:06 pm
Updated: 10/07/2011 9:05 am
A sanctioned marijuana dispensary in Palm Springs has been forced to close its doors, unable to make rent
payments.
Stacy Hochanadel owns the CannaHelp Collective on Industrial Place. It's one of three marijuana dispensaries
approved by the city.
Hochanadel says his business has been struggling for three years and the biggest challenge has
been competition from illegal pot collectives.
"They keep popping up in a rapid fashion. In August alone,we had ten collectives pop up in Palm Springs,"said
Hochanadel, adding that"the city requires us to grow on site;these other collectives don't."
And that's why he rented 8,000 square feet,just for growing space.
The owner of the building Hochanadel was using, Michael Rice, said Hochanadel was evicted because he was
months behind on rent payments. Rent and other loan payments usually added up to about$20,000 for
Hochanadel.
Customers say the closure is an inconvenience.
"I have a lot of arthritis,"said Stephen Beercheck. Beercheck hurt his back playing volleyball about 6 years ago.
He said he has tried therapy and prescription drugs but has found marijuana to be a big help.
"It relaxes you and you forget the pain is even there,"said Beercheck. "But now I don't know where I'll go"
For now, CannaHelp will be operating as a delivery-only service.The collective is in negotiations to move to a new location.
Copyright 2011 Desert Television LLC All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
W
of 1 2/22/2012 8:32 AM
2/6/2012 1 CannaHelp Owner Pleads Guilty To Fra... 1
KESQ.com
CannaHelp Owner Pleads Guilty To Fraudulent
Business Practices
Stacy Hochanadel Asked Judge To Drop Felony Charges
POSTED: 4:08 pm PST February 6,2012
Row after row of marijuana plants
once grown at the Cannahelp
location in Palm Springs.
INDIO,Calif.-- A Palm Springs medical marijuana dispensary owner pleaded guilty today to a
misdemeanor charge.
Stacy Robert Hochanadel,owner of CannaHelp in Palm Springs, pleaded guilty to the unfair competition or
unlawful or fraudulent business practices count as trial proceedings were scheduled to get under way at
the Larson Justice Center In Indio.
Deputy District Attorney Anthony Fimbres asked that felony charges of possession of marijuana for sale,
transport and sale of marijuana and keeping a place to sell controlled substances be dropped in light of
the plea.
Hochanadel, who was arrested in December 2006, is free on his own recognizance pending sentencing,
which is set for March 23 before Superior Court Judge James S. Hawkins.
Attorneys could not be Immediately reached regarding what Hochanadel's sentence would be.
In 2008, Riverside County Superior Court Judge David Downing ruled that a search warrant used to raid
the defendant's Palm Desert dispensary was flawed because sheriffs Investigator Robert Garcia had not
been trained to handle medical marijuana cases.
The sheriffs department alleged the dispensary violated the state's medical marijuana law because it was
turning a profit.
In August 2009,a three-judge panel of the 4th District Court of Appeal In San Diego unanimously ruled
that Downing wrongly threw out the search warrant, and the Riverside County District Attorney's Office
resumed the prosecution in late January 2010.
Hochanadel's attorney, Ulrich McNulty, said previously that Hochanadel had a business license and an
agreement with the sheriffs department,and the business was being operated transparently.
Hochanadel opened CannaHelp,then known as Hempies, in September 2005.
His lease expired in September 2007,and he closed the collective following the Palm Desert City Council's
decision to ban medical marijuana dispensaries. He reopened the dispensary in Palm Springs, where he
has one of three permits to operate.
Previous Stories:
• October 5, 2011: Cannahelp Evicted By Palm Springs Landlord 14
kesq.com/print/30392854/detail.htmi 1/2
2/6/2012 CannaHelp Owner Pleads Guilty To Fra...
April 4, 2011: Palm Springs Marijuana Dispensary Owner Goes To Trial
• ,December 2, 2010: Trial Date Set For Medical Marijuana Dispensary Owner
i • October 13, 2010: Palm Springs Marijuana Dispensary Reopens After Raid
• May26, 2010: First Licensed Medical Marijuana Dispensary Opens In Palm Springs
Copyright 2012 KESO. City News Service contributed to this report. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.
The following are comments from our users. Opinions expressed are neither created nor endorsed by KESQ-TV
or KESQ.com. Comments are moderated by the community. To report an offensive or otherwise inappropriate
comment, click.the "Flag"link that appears beneath that comment. Comments that are flagged will alert our
editorial staff.
i
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PALA,1
IPA
pry1AN City of Palm Springs
,.° Office of the City Clerk
C- p - 3200 E.Tahquirz Canyon Way - Palm Springs, California 92262
FORVA� Tel: (760) 323-8204 - Fax: (760)322-8332 - Web: www.palmsprings-ca.gov
February 23, 2012
Stacy Hochanadel, President
Cannahelp Corp.
666 Vista Oro Road
Palm Springs, CA 92264
RE: APPEAL THE CITY MANAGER'S REVOCATION OF THE MEDICAL
CANNABIS COOPERATIVE/COLLECTIVE REGULATORY PERMIT FOR
"CANNAHELP CORPORATION" (CASE MC 09-001).
Dear Mr. Hochanadel:
The letter serves as notification that the City Council of the City of Palm Springs
will conduct a public hearing on Wednesday, March 7, 2012, to consider your appeal,
pursuant to Palm Springs Zoning Code (PSZC) § 93.25.15(L)(5), for the revocation of
the medical cannabis cooperative/collective regulatory permit for Cannahelp Collective.
The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200
E. Tahquitz Canyon Way, Palm Springs.
The staff report and other supporting documents regarding this matter will be
available for public review, on Thursday, March 1, 2012, at City Hall between the hours
of 8:00 a.m. to 11:00 a.m. and 2:00 p.m. to 6:00 p.m. Monday through Thursday.
Please contact the Office of the City Clerk at (760) 323-8204 if you would like to
schedule an appointment to review these documents.
Response to this notice may be made verbally at the Appeal Hearing and/or in
writing before the hearing. Written comments may be made to the City Council by letter
(for mail or hand delivery) to:
James Thompson, City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Respectfully,
CITY OF PALM SPRINGS
�JAMES THOMPSON
City Clerk
/kdh
16
Post Office Box 2743 • Palm Springs, California 92263-2743
PROOF OF SERVICE
STATE OF CALIFORNIA, COUNTY OF RIVERSIDE
I am over the age of 18 and not a party to the within action; I am employed by the
City of Palm Springs, a public entity, in the County of Riverside located at 3200 East
Tahquitz Canyon Way, Palm Springs , California 92262.
On February 23, 2012, I served the foregoing document(s) described as
In Re Appeal of STACY HOCHANADEL for CANNAHELP CORP.
APPEAL THE CITY MANAGER'S REVOCATION OF THE MEDICAL
CANNABIS COOPERATIVE/COLLECTIVE REGULATORY PERMIT FOR
"CANNAHELP CORPORATION" (CASE MC 09-001).
❑x by placing, the true copies thereof enclosed in sealed envelopes addressed to the
following individuals:
Stacy Hochanadel, President
Cannahelp Corp.
666 Vista Oro Road
Palm Springs, CA 92264
❑ by placing ❑ the original ❑ a true copy thereof enclosed in sealed envelopes
addressed as follows:
❑O (BY MAIL) I placed said envelope(s) for collection and mailing, following
ordinary business practices, at the business offices of Palm Springs City Hall, and
addressed as shown on the attached service list, for deposit in the United States Postal
Service. I am readily familiar with the practice of the City for collection and processin
correspondence for mailing with the United States Postal Service, and said envelope(s�
will be deposited with the United States Postal Service on said date in the ordinary course
of business.
❑x (BY ELECTRONIC MAIL) by causing the foregoing document(s) to be
electronically mailed using the City's Electronic Mailing System to the individual(s)
listed on the attached mailing list at: 'ps.cannahelp@gmail.com'.
❑ (BY OVERNIGHT DELIVERY) I placed said documents in envelope(s) for
collection following ordinary business practices, at the business offices of the City of
Palm Springs, and addressed as shown on the attached service list, for collection and
delivery to a courier authorized by to receive said
documents, with delivery fees provided for. I am rea i y anu iar with the practices of
the City of Palm Springs for collection and processing of documents for overnight
delivery, and said envelope(s) will be deposited for receipt by
on said date in the ordinary course of business.
0 (State) I declare under penalty of perjury under the laws of the State of
California that the above is true and correct.
❑ (Federal) I declare that I am employed in the office of a member of the bar of this
court at whose direction the service was made. I declare under penalty of perjury that the
above is true and correct.
Executed on February 23, 2012 at Palm Springs, California.
ES THOMPSON, CITY CLERK
ity of Palm Springs, California 17
Page 1 of 1
Jay Thompson
From: Jay Thompson
Sent: Thursday, February 23, 2012 5:44 PM
To: 'ps.cannahelp@gmail.com'
Subject: Appeal Hearing Notice
Attachments: 2511_001.pdf
Mr. Stacy Hochanadel
Cannahelp Corp.
Attached [1 PDF File] is the Notice of Appeal Hearing. The original document(s) have been mailed to you
via U.S. Mail today as well. Jay
James Thompson, City Clerk
City of Palm Springs, California
TEL(760)323-8204
18
2/23/2012