CLEARLAKE ? The Clearlake Planning Commission denied an appeal Tuesday that was initiated in Oct. 2009 by Liz Byrd, owner of Lakeside Herbal Solutions.
In accordance with the moratorium in the City of Clearlake regarding the establishment of new medical marijuana dispensaries, Tuesday”s action bears no consequence and the business will be allowed to continue to operate.
The appeal, which was made in objection to the city administrator”s determination that a use permit is required for a medical marijuana dispensary, was filed prior to the Clearlake City Council”s decision to allow such facilities in the city.
The city is currently in the process of developing guidelines to regulate dispensary operations.
Byrd and her legal representative Ron Green, Esq. said they continued to pursue the appeal process because options presented to them by City Administrator Dale Neiman in Oct. 2009 did not include an alternative to drop the issue and wait for the council to compose its regulations.
Under the moratorium, existing medical marijuana dispensaries are allowed to continue to operate while guidelines for regulation are being developed. Neiman indicated that granting Byrd the appeal would unilaterally legitimize the business licenses of all dispensaries currently operating in Clearlake. It is Neiman”s opinion that current establishments are not operating legally because they are out of compliance with the zoning ordinance. He said granting the appeal may present problems in requiring that current dispensaries come into compliance with what ever regulations are established in the future.
Green”s primary argument related to the definition of “retail trade and sales,” which is permitted in the C-2 zoning area in which Byrd”s business is established.
According to Neiman, medical marijuana dispensaries should be considered as “other retail trade and sales,” which requires obtaining a use permit for operation. Use permit costs ranges from $850 to $1,250, he said.
Green said the State Board of Equalization, for which Byrd possesses a valid seller”s license for collecting the proper taxes on the products she sells; specifically identifies medical marijuana dispensaries as retail sales of tangible personal property and therefore are subject to sales taxation.
It is Green”s argument that Byrd”s dispensary meets the criteria for retail sales and therefore should be granted a business license administratively and without the demand for a use permit subject to approval by the commission.
Tuesday”s action was essentially irrelevant because the moratorium, which was re-enacted after the opening of Byrd”s business, allows for the continued operation of existing dispensaries while regulations are being developed.
Contact South County reporter Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
