HomeMy WebLinkAboutRes No 2849I
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PLANNING COMMISSION RESOLUTION NO. 2849
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM
DESERT, CALIFORNIA, REVOKING, IN ITS ENTIRETY, CONDITIONAL USE
PERMIT NO. 17-0027 WHICH ALLOWED A MANUFACTURING, DELIVERY,
AND DISTRIBUTION CANNABIS BUSINESS ON THE PROPERTY
LOCATED AT 75-080 SAINT CHARLES PLACE
CASE NO. CUP17-0027 REVOCATION
WHEREAS, the City of Palm Desert has gathered a significant amount of evidence
regarding the subject establishment's repeated violations of the terms and conditions of CUP
17-0027, as well as violations of other ordinances and various provisions of law, as presented
to the Planning Commission in the administrative record, including but not limited to, staff and
public testimony, and other evidence as referenced in this resolution as iffully set forth herein;
and
WHEREAS, on November 6, 2018, the City of Palm Desert Planning Commission
adopted Resolution No. 2737, approving a Conditional Use Permit ("CUP") to operate a
Cannabis Manufacturing, Deliver and Distribution business with twenty-two (22) conditions of
approval at 75080 Saint Charles Place, Palm Desert, California (property); and
',
WHEREAS, on June 6, 2019, the California Department of Cannabis Control ("DCC")
issued a Commercial Distributor license (License No. Number C11-0000327-LIC) to JW
Brands LLC at the subject property; and,
WHEREAS, on July 12, 2019, the California DCC issued a Commercial Retailer Non-
Storefront license (License No. C9-0000183-LIC) to JW Brands LLC at the subject property;
and
WHEREAS, on August 20, 2019, the California DCC issued Manufacturer Type 7
license (License No. CDPH-10003817) to JW Brands LLC at the subject property; and
WHEREAS, on April 29, 2021, the City of Palm Desert issued a business license
(License No. BLIC2020-0118) to JW Brands LLC at Saint Charles Place Suite B for a
Cannabis Manufacturing Distribution and Delivery Business, consistent with the approved
CUP; and
WHEREAS, on February 28, 2022, City business license No. BLIC2020-0118 was not
renewed by JW Brands LLC and expired; and
WHEREAS, on March 1, 2023, the City of Palm Desert issued a business license
(License No. 13702725) to JW Brands LLC at Saint Charles Place Suite B for a Cannabis
Distributor Delivery and Manufacture Business, consistent with the approved CUP; and
WHERAS, on November 28, 2023, the City of Palm Desert conducted a cannabis
regulatory inspection of the business and premises located at 75080 St. Charles Place Suite
B and observed unpermitted structural, mechanical, electrical, and plumbing system
alterations ("unpermitted alterations") which pose a risk to the life, health, and safety of the
public; and
PLANNING COMMISSION RESOLUTION NO. 2849
WHEREAS, on December 5, 2023, the City of Palm Desert Building Official issued a
Certificate of Occupancy Revocation to JW Brands listing the violations and unpermitted
construction and alterations for the space located at 75080 Saint Charles Place Suite B as
violations of Palm Desert Municipal Code § 15.02.010 in accordance with California Building
Code §111.4; and
WHEREAS, on December 5, 2023, the City of Palm Desert issued an Order to Abate
Public Nuisance to JW Brands based on the unpermitted alterations to the suite, deeming
said alterations to be public nuisance, and outlined corrective action required by JW Brands;
and
WHERAS, on December 19, 2023, the City of Palm Desert City Manager suspended
the Business License (Business License Suspension) pursuant to PDMC § 5.04.160(C) to
preserve the peace, health, safety and/or general welfare of the City and providing a cease
and desist letter which outlined the violations, including violation of fourteen (14) conditions
of approval of Planning Commission Resolution No. 2737, failure to abide by the requirements
of its cannabis regulatory permit, and unpaid cannabis taxes to the City of Palm Desert and
State of California; and
WHEREAS, the Business License Suspension letter provided corrective actions with
specified dates of compliance which JW Brands failed to meet; and
WHERAS, pursuant to Palm Desert Municipal Code ("PDMC) § 25.72.050(J) the Palm
Desert Planning Commission is authorized to make findings to modify, discontinue, suspend, I
or revoke any Conditional Use Permit issued pursuant to Title 25 of the PDMC; and
WHEREAS, on December 22, 2023, written notice of a hearing to consider revocation
of CUP17°0027 scheduled for January 4, 2024, at 6:00 p.m. with the Planning Commission
in the Council Chamber located at 73510 Fred Waring Drive, Palm Desert, was provided to
JW Brands; and
WHEREAS, the Planning Commission finds and determines that this project is
categorically exempt from the provisions of the California Environmental Quality Act (CEQA),
per State CEQA Guidelines, Section 15321 -Enforcement Actions by Regulatory Agencies;
and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
the January 4, 2024, hold a duly noticed public hearing to consider the request by the
Applicant for approval of the above-noted Project request; and
WHEREAS, at the said public hearing, upon hearing and considering all testimony and
arguments, if any, of all interested persons desiring to be heard, the Planning Commission
did find the following facts and reasons, which are outlined in the staff report, exist to justify
revocation of the Conditional Use Permit.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, California, as follows:
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PLANNING COMMISSION RESOLUTION NO. 2849
SECTION 1. Recitals. The Planning Commission hereby finds that the foregoing
recitals are true and correct and are incorporated herein as substantive findings of this
Resolution.
SECTION 2. Supporting Evidence. The staff report and attachments and all the
information, evidence, and testimony presented at the January 4, 2024, public hearing are
incorporated hereto by reference.
SECTION 3. Findings. Based on the Supporting Evidence presented to the Planning
Commission at the Public Hearing on January 4, 2024, including the staff report with
attachments and all information presented at the hearing in support of and in opposition to
the revocation, the Planning Commission make its own findings in accordance with Palm
Desert Municipal Code (PDMC) Section 25. 72.050(K) and any of the findings therein:
Finding 1) the Permittee has failed to comply with any applicable provision of the Palm
Desert Municipal Code, including but not limited to the City's building, zoning, and health
regulations.
Findings of Fact
A. The permittee has conducted unpermitted alterations to the structural, mechanical,
electrical, and plumbing systems of the building. City staff has found that the building,
structure, or equipment used in the conduct of the business does not comply or fails
to meet any state law or City ordinance, including but not limited to any health zoning,
fire, and building and safety laws. As a result of these unpermitted alterations pursuant
to Palm Desert Municipal Code § 15.02.010 and in accordance with California
Building Code §111.4 the Certificate of Occupancy of the Building Space has been
Revoked.
B. JW Brands has failed to comply with operation requirements of the Cannabis
Regulatory Permit pursuant to PDMC § 5.101.130 show that they utilize product
and inventory tracking software and accounting software that is in-line with
reasonable business practices within the cannabis industry, installation of an alarm
system that is operated and monitored by a third-part security company, displaying
an expired permit (PDMC § 5.101.170).
C. JW Brands has not paid required cannabis taxes to the City of Palm Desert since
August 24, 2021 (PDMC § 3.50.030).
D. JW Brands has not paid the required cannabis tax to the California Department of
Tax and Fee Administration (CDTFA, Rev. and Tax Code§ 34011)
Finding 2) The Permittee has failed to comply wi\h any condition imposed by the
conditional use permit;
Findings of Fact:
JW Brands has violated fifteen conditions of approval of the Conditional Use Permit per
Resolution No. 2737 adopted on November 6, 2018: specifically, Conditions of approval nos. 1,
5, 7, 8, 9, 10, 14, 16, 17, 18, 19, 20, 21, and 22:
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PLANNING COMMISSION RESOLUTION NO. 2849
A. Condition No. 1: The development of the property shall conform substantially I
with exhibits on file with the Department of Community Development, as
modified by the following conditions.
The improvements of the facility do not conform to the preliminary approved exhibits
regarding the improvements and business operations. During the November 28, 2023,
cannabis regulatory inspection, City staff observed several unpermitted building
alterations at the business location including:
• The electrical panel for the suite in a state of disrepair and an electrocution hazard.
• The electrical systems in the suite have been significantly altered without the
appropriate permits.
• The mechanical and ventilation systems have been significantly altered without the
appropriate permits.
• The plumbing systems have been altered without the appropriate permits.
• An accessory storage/loft area has been constructed without appropriate design
and permitting.
• A cannabis extraction room has been installed without a permitting process.
The business operations statement stated the business would include a large
warehouse space where cannabis flower would be trimmed, drying/curing, processed
into "pre-rolls" blunts or joints, packaged and labeled. The statement of operations and
business plan submitted by JW Brands during the original entitlement review
discusses hazardous materials under Section 9.13 but does not make indication that I
any volatile compounds used for cannabis extraction would be present on the site.
During the site inspection, City staff observed the presence of an unpermitted
extraction facility within the business space. The State Manufacturer's license is a
Type 7 Manufacture which allows volatile solvent manufacturing for extraction or post-
extraction processing of cannabis extract with solvents including flammable chemicals
including butane, heptane, hexane and propane. The permittee's business operation
to utilize these methods of cannabis extraction is not in substantial conformance with
the floor plan and statement of operation exhibits presented to the Planning
Commission which described processing flower into pre-roll and made no mention of
volatile solvent manufacturing and extraction.
B. Condition No. 5: Prior to issuance of a building permit for improvements and
use contemplated by this approval, the applicant shall first obtain permits and/or
clearance from the following agencies:
Coachella Valley Water District (CVWD)
Burrtec Waste Management
Fire Department
Evidence of said permit or clearance from the above agencies shall be presented
to the Department of Building & Safety at the time of issuance of a building
permit for the use contemplated herewith.
The permittees have not submitted sufficient plans or received of building permits for
tenant improvements. On November 28, 2023, a cannabis regulatory inspection was
conducted at 75080 Saint Charles P:ce, Suite B by City of Palm Desert Staff. During I
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PLANNING COMMISSION RESOLUTION NO. 2849
this inspection City staff observed unpermitted construction and alterations. Those
alterations were reviewed against record drawings and building permits on file for the
suite. Two (2) previous plan review projects were submitted for the business and suite
(Plan Review #TIMP18-0101 (2018) and Plan Review #TIMP19-0016(2019)) however
expired and were not completed. There are no records of any approved building
permits that corroborate the alterations observed. In the absence of any approved
building permits corroborating the alterations, the unpermitted construction is a
violation of Palm Desert Municipal Code §15.02.010 which regulates the construction,
erection, enlargement, alteration, repair, moving, removal, demolition, conversion,
occupancy, equipment, use and occupancy and maintenance of all buildings and/or
structures in the City of Palm Desert. •
C. Condition No. 7: The premises shall be equipped with an odor absorbing
ventilation and exhaust system so that odors generated inside the cannabis
business is not detected outside of the business, anywhere on adjacent
properties, public right-of-way, or in any exterior or interior common areas or
tenant spaces. As such, the applicant shall install odor mitigation equipment in
accordance with the plans on file as part of this application, and to the
satisfaction of the Building Official. Should odor issues arise, the Community
Development Department may require additional odor control measures to be
employed. At a minimum the applicant shall install the following:
a. Air filtration system with odor control that prevents internal odors from
being emitted externally.
b. Air systems that create negative air pressure between tlie cannabis
business and the exterior.
The permittee does not have a valid building plan and approved permit with sufficient
detail to assess that they have complied with this condition of approval or have
sufficient ventilation for odor control.
D. Condition No. 8: Security features shall be installed within the tenant lease
spaces in accordance with the plans on file as part of this application. All
security features shall be installed and maintained as specified in the City's
Cannabis Regulatory Permit regulations.
Palm Desert Municipal Code Section 5.101.130(E)(1) and (E)(2) establish provisions
for the security plan including the installation and maintenance of security cameras
that cover all areas for manufacturing, processing, transportation, distribution and
windows and doors, and any other areas reasonably determined by the Planning
Commission. These cameras are required to operate 24-hours per day, seven days
per week. During the staff regulatory inspection on November 28, 2023, staff observed
that cameras were not provided which cover all minimum areas required by the City's
Regulatory Permit regulations.
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PLANNING COMMISSION RESOLUTION NO. 2849
E. Condition No. 9: The applicant is required to have on-site security personnel I
during business hours. Security personnel shall be licensed with the State
Bureau of Security and Investigative Services.
The applicant has not provided on-site security during business hours originally
described as 6 AM to 10 PM for the Delivery component of the business in the
applicant"s expanded Statement of Use. No security was observed during the
November 28, 2023, City inspection.
F. Condition No. 10: The applicant shall comply with all applicable provisions of
the PDMC Sections 5.101 (Commercial Cannabis Business Regulatory Permits),
8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business
and Personal Cultivation).
The business has not complied with security requirements of PDMC 5.101 or
submitted tenant improvement to comply with operational requirements of PDMC
5.101.130.
G. Condition No. 14: Any and all window and door security devices such as metal
bars, gates, and shutters, shall be installed within the interior of the building and
screened from public view.
The business has not complied with security requirements of PDMC 5.101 or I
submitted building plans to demonstrate compliance.
H. Condition No. 16: Operation of the cannabis business outside of these
approvals and conditions shall constitute a violation of the PDMC and shall be
enforced pursuant to the provisions in the PDMC. On-going violations which are
not remedied within a timeframe established by the Community Development
Director may result in revocation of the CUP and Cannabis Regulatory Permit.
The City conducted a cannabis regulatory inspection on November 28, 2023 and
identified several violations in a letter to the business on December 5, 2023. On
December 19, 2023, the City issued a cease and desist letter to the business to comply
with corrective actions including back payment of taxes and obtaining building permits.
The applicant failed to comply and due to the ongoing violation the CUP is subject to
revocation.
I. Condition No. 17: This project shall comply with the latest adopted edition of the
following codes:
a. 2016 California Building Code and its appendices and standards.
b. 2016 California Plumbing Code and its appendices and standards.
c. 2016 California Mechanical Code and its appendices and standards.
d. 2016 California Electrical Code.
e. 2016 California Energy Code.
f. 2016 California Green Building Standards Code
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PLANNING COMMISSION RESOLUTION NO. 2849
g. 2016 California Administrative Code.
h. 2016 California Fire Code and its appendices and standards.
JW Brands did not submit final building plans to demonstrate compliance with this
condition.
J. Condition No. 18: Provide the following design data on the first sheet:
a. Occupancy group(s).
b. Type(s) of construction, including fire sprinklers CBC Section 107.2.
JW Brands did not submit final building plans to demonstrate compliance with this
condition.
K. Condition No. 19: All contractors and subcontractors shall have a current City
of Palm Desert Business License prior to permit issuance per PDMC, Title 5 ..
JW Brands did not submit final building plans to demonstrate compliance with this
condition as no applications listing licensed contractors was provided.
L. Condition No. 20: All contractors and/or owner-builders must submit a valid
Certificate of Workers' Compensation Insurance coverage prior to the issuance
of a building permit per California Labor Code, Section 3700.
JW Brands did not submit a valid certificate of worker's compensation insurance
coverage and no building permit has been issued.
M. Condition No. 21: Address numerals shall comply with Palm Desert Ordinance
No. 1310 (Palm Desert Municipal Code 15.28. Compliance with Ordinance 1310
regarding street address location, dimension, a stroke of line, distance from the
street, height from grade, height from the street, etc. shall be shown on all
architectural building elevations in detail. Any possible obstructions, shadows,
lighting, landscaping, backgrounds or other reasons that may render the
building address unreadable shall be addressed during the plan review process.
You may request a copy of Ordinance 1310 or Municipal Code Section 15.28
from the Department of Building and Safety counter staff.
JW Brands did not submit 'final building plans to demonstrate compliance with this
condition.
N. Condition No. 22: Please contact the Department of Building and Safety (760-
776-6420) regarding the addressing of all buildings and/or suites.
JW Brands did not submit final building plans to demonstrate compliance with this
condition.
Finding 3) The permittee has allowed the existence of or created a public nuisance In
violation of the Palm Desert Municipal Code
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PLANNING COMMISSION RESOLUTION NO. 2849
A . Interior renovations (walls, electrical , plumbing , mechanical) were completed without
obta ining building permits as required by the California Building Code , and the as a
result the Certificate of Occupancy of the Build ing Space has been revoked and
declared a publ ic nuisance as they pose a risk to the life , health , and safety of the
public.
SECTION 4. Environmental Review. The proposal is categorically exempt from further
environmental review and the provisions of the California Environmental Quality Act (CEQA)
per State CEQA Guidelines Section 15321 (Class 21 -Enforcement Actions by Regulatory
Agencies).
SECTION 5 . Custodian of Records . The documents and materials that constitute the
record of proceedings on which these findings are based are located at the City's office at
73510 Fred Waring Drive, Palm Desert, CA 92260 . Richard D. Cannone , AICP , the Secretary
to th e Palm Desert Planning Commission , is the custodian of the record of proceedings .
SECTION 6. Execution of Resolution . The Chairperson of the Planning Commission
signs this Resolution, and the Secretary to the Commission shall attest and certify th e
passage and adoption thereof.
SECTION 7 . Recitals . The Planning Commission hereby finds that the foregoing
reci tals are true and correct and are incorporated herein as substantive find ings of this
Resolution .
ADOPTED ON January 4 , 2024 .
RICHARD D. CANNONE , AICP
SECRETARY
,Joe :Ptaietto
Joe Prodetto (Jan 9, 2024 12'12 PSTI
JOSEPH PRADETTO
CHAIRPERSON
I, Ri c hard D. Cannone. AICP, Secretary of the City of Palm Desert, he reby certify that
Resolution No. 2849 is a full , true, and correct copy, and was duly adopted at a special
meeting of the Planning Commission of the City of Palm Desert on January 4 , 2024, by the
following vote :
AYES :
NOES:
ABSENT:
DELUNA, GREENWOOD, HOLT, GREGORY, PRADETTO
NONE
NONE
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PLANNING COMMISSION RESOLUTION NO. 2849
ABSTA IN : NONE
RECUSED : NONE
IN WI TNE SS W HEREOF , I have hereunto ~t my hand and affixed the official seal of the City
of Palm Desert , California , on January /If , 2024 .~
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RICHARD D. CANNONE , AICP
SECRETARY