Tahoe Wellness Cooperative reopens after closing doors for two days

1/8/18 6:00PM Update: It has been confirmed that Tahoe Wellness Center has reopened their doors for sales of medicinal marijuana. It is unknown at this time why they closed as both the State and the City did not ask him to close.

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As of Monday, January 8, 2018, Tahoe Wellness Cooperative (TWC) in South Lake Tahoe is closed, but the reason for the closure differs between the parties involved.

The doors to the lone medicinal marijuana dispensary in town were closed on Sunday, January 7, and a visit on January 8 showed the business still closed with a security guard present telling those that attempt to enter, "We got shut down by the City and the State."

There were three hand painted signs on the outside of TWC Monday: "Protect your right to safe access," "Call City Council," and "Abuse of Discretion - Vote."

Why they are closed is not because of anything the City or State did, according to South Lake Tahoe City Manager Nancy Kerry.

"The City is under a court order (stay) to take no action again TWC," said Kerry. "They can continue to sell at their 'not-for-profit' business. He has been operating under the stay of the court, and city has no intention to go against that."

"The state declined to issue them a commercial medicinal marijuana license," added Kerry.

TWC is still able to conduct business as a medicinal dispensary until their lawsuit with the City and his landlord are settled, said Kerry.

Cody Bass, president of TWC, operates the business as a non-profit, giving medicinal patients access to cannabis at a reasonable cost.

On January 1, 2018, Cody Bass and Tahoe Wellness Cooperative applied to the State of California for a license to operate a for-profit recreational cannabis business. As part of that process the State asked the City of South Lake Tahoe if he had a valid permit to operate the medicinal cannabis business, which he does not and they answered as such.

Bass has not had a valid permit issued by the City of South Lake Tahoe since May of 2016. In order for a medicinal cannabis business to operate in the City they must have written permission from their landlord if they are not in a building they own. He has been in a legal battle with the landlord since that point in time as written permission was not granted by Patti Olsen, owner of Olson Bijou Center, L.P. Since then Bass and his lawyers have been in court, and the property is now in escrow with a party other than Tahoe Wellness Center according to a source.

On December 12, 2017, the SLT City Council voted for a moratorium on all commercial marijuana activities in the City after the passage of Prop. 64, just as did 73 percent of California jurisdictions. A subcommittee made up of community partners without a financial interest in marijuana has been meeting, researching and in the process of preparing a document for City Council to evaluate for future sales in the City.

But, these movements do not pertain to the sales of medicinal marijuana in 2018.

SLT Police Chief Brian Uhler is the City's designated point of contact with the State's Bureau of Cannabis Control. Uhler wrote a letter to the Bureau on December 18, advising them that there is no current dispensary in the City that is compliant with the Compassionate Use Act of 1996 that allowed medical marijuana dispensaries.

The State used that letter in not issuing Bass and TWC a temporary license to sell "for profit" cannabis until the City of South Lake Tahoe had an ordinance in place.

"To engage in commercial cannabis activity, he needs a state license to operate," Alex Traverso of the California Bureau of Cannabis Control told South Tahoe Now.

Bass's lawyer Henry Wykowski of San Francisco told South Tahoe Now that the actions of Chief Uhler were "malicious."

"On January 1 a businesses needed a temporary permit to remain in operation," said Wykowski of sales of cannabis for recreational purposes becoming legal in the state.

Medicinal sales were not included in the January 1 requirements.

"We are working to straighten this out," said Wykoswki, "but they will stay closed until then."

In a separate legal matter, Bass has been charged on felony four counts of tax evasion by the State of California. He was arrested, booked, and posted bail. He had his first preliminary hearing Tuesday. His next court date on the City issues will be February 1, and on the dispute with his landlord, February 13.