The Solvang City Council denied appeals from a pair of cannabis operators on Monday night but intends to review the city’s ordinance in the future.
Council members voted 4-1 on each appeal, with Robert Clarke casting the lone no votes.
The applicants to operate medical marijuana businesses were rejected for different reasons, leading to the hearings.
In the first case, Fristaden Wellness sought to overturn staff’s rejection, which lacked a letter proof from the landlord saying the business could operate as planned.
Fristaden claimed the city rules created an unintended monopoly by giving the landlord the approval.
“We think the main points we made is that city officials and committee members should, in all cases, be the persons exercising authority over business license applications, especially where the stakes are so high, and in an industry that is rife with controversy and fraught with allegations of corruption,” attorney Tiffany Carrari said.
Solvang’s ordinance allowing a medical cannabis dispensary restricts the operation to a commercial zone with just one vacant building — 1210 Mission Drive.
Carrari also called for changes to the ordinance to remove the requirement for the landlord’s consent early in the application process, suggesting it would be more appropriate to get that confirmation at a later stage.
The applicants were essentially “pre-vetted” by the landlord, who chose only one applicant for the city’s consideration, she said.
Allowing applicants to submit their documents, minus the landlord consent, “would not only only give the city the opportunity to consider multiple proposals, but would also cut back on the potential for abuse of the process through back door dealings that do nothing to benefit the community at large.”
But the council was limited Monday night to make decisions related to the appeal, and could not revise the ordinance.
Mayor Ryan Toussaint said the City Council would reconsider the cannabis ordinance in the future.
“I asked that that get brought up regardless of what happens with the current process that we have, because I firmly believe that we should invest time and be proactive in creating good policy for the future,” Toussaint said.
In the second appeal, Mountain View Elemental Wellness Corp. objected to staff’s deeming the application had deficiencies and inadequacies.
Areas lacking included the financial data, the security plan and allegedly unqualified staff.
Mountain View’s attorney, Damian Martin, a self-described expert in the cannabis field, said he found the application “top notch.”
The attorney argued that his client’s security plan met the standards and blamed a staff-created checklist for the perceived flaws.
“It didn’t include a map or diagram because it wasn’t required under your ordinance, and most importantly it wasn’t required on this checklist. That’s all we’re dealing with here is this checklist,” Martin said.
He noted that one Mountain View owner, Smith McGehee, lives in Santa Barbara County and intends to hire locally for subcontractors and suppliers.
Martin passionately argued various aspects of Mountain View’s rejected application, at one point prompting the mayor to suggest he didn’t need to yell to make his points.
“The volume, I mean you’re hurting my ears just a little bit,” Toussaint said.
“I’m passionate about this,” Martin replied.
Near the end of his presentation, Martin lodged objections to a time limit to present his client’s case, and said corrections had been made to the application.
He also objected to City Attorney Chip Wullbrandt serving as counsel for the staff and council, claimed the agenda wasn’t properly posted under Solvang Municipal Code rules, and suggested a Ralph M. Brown (Open Meetings) Act violation due to the doubts when the agenda was posted.
Wullbrandt denied he had a conflict and maintained the agenda had been properly posted.
Acting City Manager Xenia Bradford said the applicant’s additional information still didn’t resolve questions raised by the original application.
Councilman Chris Djernaes thanked both attorneys, calling the presentations “hugely informative.”
“I wish this would have happened at the beginning of the process, not at the end,” he said. “I apologize for the inconvenience you guys are suffering now.”
— Noozhawk North County editor Janene Scully can be reached at jscully@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.