Judge rules that South Lake Tahoe cannabis microbusiness approvals can move forward

SOUTH LAKE TAHOE, Calif. - A Sacramento Superior Court Judge has narrowed the scope of the temporary injunction filed against the City of South Lake Tahoe, the City Council, and the Development Services Director Kevin Fabino on November 15.. The judge ruled on Friday, November 22 that his previous order will not affect microbusinesses, just retail sales, according to South Lake Tahoe City Attorney Heather Stroud who was in Sacramento for the ruling.

Stroud said the judge made three rulings today. He clarified that his ruling last week was not a temporary restraining order as he had not yet reviewed the case. He will rule on that December 20. The judge also said the order does not apply to any applicants, only the City, and, that microbusinesses can move forward on obtaining their development permits.

Last week, South Lake Tahoe businessman John Runnels and his attorney Steven Bailey went to Sacramento to get the judge to stop all cannabis businesses from moving forward through the permitting process.

Runnels applied for one of the new retail sales licenses that the City was issuing after a new cannabis ordinance was passed. Out of the 18 applicants for retail sales, Runnels placed 18th. The top three were selected and two of them, Embarc Tahoe and Cannablue, had already received approval by the Planning Commission and were headed to City Council on December 3. Runnels said the process was flawed and questioned the blind scoring of applications.

"We are hoping for a favorable ruling on December 20," said Stroud.

While the retail sales process will not move forward in South Lake Tahoe until the next court hearing on December 20, microbusiness applicant Perfect Union can have its cannabis development permit to operate at 2227 James Avenue heard by the City Council on December 3, their next meeting.

In previous action, microbusiness owner Oliver Starr was approved and permitted and is now working with the State to open Redefining Organics at 1090 Industrial Avenue. He will be providing distribution, extraction and cultivation services.