Local man files temporary injunction; South Lake Tahoe cannabis permit process on hold

SOUTH LAKE TAHOE, Calif. - There is another delay in cannabis businesses being able to move forward in South Lake Tahoe.

Local business owner John Runnels filed a temporary injunction against the City of South Lake Tahoe, the City Council and the Development Services Director Kevin Fabino in Superior Court in Sacramento Friday afternoon. That action has put a temporary halt to all cannabis-related permits being processed in the city until a December 20 court date.

Through his attorney, former candidate for California Attorney General and retired judge Steven Bailey, Runnels filed the court documents to "cease to process applications for cannabis development permits including but not limited to issuing permits, reports or taking other actions that in furtherance of the issuance of development permit for cannabis development permits."

Runnels was unsuccessful in his bid for one of the three retail sale licenses awarded by the City of South Lake Tahoe in June. After a cannabis ordinance was created and criteria for applications developed, the City received 21 applications for adult-use cannabis business, 18 of which were for retail sales, two for microbusiness and one for cultivation:

RETAIL APPLICANTS - Top Three Selected
Ranking - Applicant - Address - Score
1 - Embarc Tahoe - Christy Wilson - 4035 Lake Tahoe Blvd - 97.7
2 - Cannablue - Chris Zeigler - 2179 Lake Tahoe Blvd - 91.8
3 - Tahoe Green - David Turner - 3930 Lake Tahoe Blvd 90.7
4 - Have A Heart - 989 3rd Street - 87.9
5 - Medman - 2311 Lake Tahoe Blvd - 86.3
6 - Honey Leaf - 3678 Lake Tahoe Blvd - 84.3
7 - Stay Lifted - 941 Emerald Bay Rd - 82.8
8 - Element 7 - 2318 Lake Tahoe Blvd - 82.8
9 - The Green Goddess - 2635 Lake Tahoe Blvd - 82.4
10- Diego Pellicer - 1169 Ski Run Blvd - 78
11- Canna Nation - 3979 Lake Tahoe Blvd - 75.8
12- One Plant - 3665 Tamarack - 75.3
13- Kind Life - 2701 Lake Tahoe Blvd - 74.4
14- South Tahoe Wellness - 2705 Lake Tahoe Blvd - 74.1
15- South Tahoe Cannabis - 947 Poplar Street - 73.5
16- Norcal Cannabis Co. - 2701 Lake Tahoe Blvd - 67
17- TREZ Lake Tahoe - 765 Emerald Bay Rd - 61.3
18- The New Green Deal - 986 Emerald Bay Rd - 37.9

MICRO-BUSINESS APPLICANTS - Top Two Selected
Ranking - Applicant - Address -Score
1 - Redefining Organics - Oliver Starr - 1090 Industrial Ave - 89.9
2 - Perfect Union - Scott Spears - 2227 James Ave - 84.5
There were no other applications received for microbusinesses

CULTIVATION APPLICANT - One Selected
Ranking - Applicant - Address - Score
1 - Redefining Organics - Oliver Starr - 1090 Industrial Ave - 87.7
There were no other applications received for cultivation

Runnels and his business, The Green New Deal, came in last in scoring for the business that would have been operated out of the Runnels Automotive location at the intersection of Lake Tahoe Blvd. and Emerald Bay Rd. He attempted to file an appeal of the merits of the blind scoring process along with South Tahoe Cannabis, Have A Heart, and MedMen. An outside attorney came in to hear the appeals in a hearing and denied them. Runnels' appeal was not accepted because of an incomplete application and non-payment of the required $323 appeal fee. He disagreed with the incompleteness of the appeal application and said at the time he would likely take legal action.

"At Friday's hearing, the judge stated he needed more time to consider the merits of the plaintiff's request for a temporary restraining order and the City's demurrer, so he continued the hearings until December 20 and did not allow the parties to make an argument. In the meantime, he ordered the City to maintain the status quo, which he clarified to mean that the items planned to go on the City Council agenda on December 3 could not go forward. Unfortunately, the written order the judge signed appears much broader, so out of an abundance of caution, the City is not processing any cannabis-related permits until we are able to get further clarification from the court," said South Lake Tahoe City Attorney Heather Stroud.

During Thursday's Planning Commission meeting, a Retail Cannabis Use Permit and Development Agreement was unanimously approved for Tahoe Green, as was a Microbusiness Cannabis Use Permit and Development Agreement for Perfect Union SLT, LLC. Those two were headed to City Council for a first reading vote on December 3, but they are now delayed due to the temporary injunction, as Stroud said.

During their November 5 meeting, the Council approved development agreements for Embarc Tahoe and Cannablue and their second reading was also planned for the December 3 meeting. They too are now put on hold.

Redefining Organics has already received its development agreement from the City and is now in the licensing process at the state level.