Council OKs reopening of cannabis business applications

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The City Council on Jan. 21, 2025 unanimously authorized staff to reopen the cannabis delivery business application process.

This was originally a Consent Calendar item, but was pulled for separate consideration at the request of resident Carl Johnson, the previous cannabis license holder in Avalon.

The city did not receive complete applications by the Dec. 16, 2024 deadline. Staff recommended that the City Council reopen the application period for 45 days, starting Jan. 24 of this year. The deadline for applications would be March 10.

Councilmember Lisa Lavelle asked if those who had applied would need to remedy their applications or would they need to complete a whole new application.

“No, the expectation would be that they would remedy any missing parts of that and I think that has already started,” said City Manager David Maistros.

Johnson said he fully supported staff’s recommendation to reject the incomplete applications and reopen the process.

“My support for this recommendation is rooted in practical experience and observation, notably the previous solicitation was not listed under the city’s website RFP section where qualified and professional applications typically look for such opportunities,” Johnson said.

“While some applications were completed after the deadline, a fresh start with property visibility would likely attract a strong, more prepared pool of candidates who can meet the city’s high standards from the outset,” Johnson said.

“I want to express my sincere appreciation to the council’s continued commitment to allow cannabis business opportunities in Avalon,” Johnson said.

Johnson suggested a change to the zoning requirements for cannabis businesses, which he said currently limit cannabis businesses to commercial and special commercial zones.

He said special zones create significant challenges due to the limited rental inventory in those areas.

“This restriction could inadvertently hinder the very success the city seeks to foster based on my direct operational experience,” Johnson said.

“Expanding the allowable zones would increase the potential for business success and sustainability by providing more viable location options,” Johnson said.

He said expanding the allowed zoning would ensure a better return on investment.

He said he had two concerns with the application process.

He said California law explicitly says licensed cannabis delivery businesses are not responsible for transporting cannabis products across federal jurisdictions.

“This responsibility falls to license cannabis distributors, a license type not currently permitted in Avalon,” Johnson said.

He said including vessel information contradicts state law and creates confusion. He urged the council to remove that requirement. He also opposed any language suggesting his previous license was revoked as that would incorrectly imply regulator violations.

“I voluntarily closed operations on September 9, 2021, three weeks before the city provided men notice on September 26, 2021,” Johnson said.

City Manager David Maistros confirmed that he wrote down Johnson’s comments. The council didn’t discuss the matter any further.

The vote was unanimous.