Hollister City Council considers permit renewal for dispensary facing $182,000 debt

The Hollister City Council meeting on June 10, 2025, focused on the financial challenges faced by Higher Level of Care, a local cannabis dispensary, and the implications for its permit renewal. The dispensary, which owes approximately $182,000 in outstanding payments, has entered receivership due to financial difficulties exacerbated by lawsuits and a merger.

City staff reported that Higher Level of Care had initially agreed to a payment plan of $25,000 per week but failed to meet these obligations. The dispensary's chief compliance officer, Greg Ammitt, clarified that the company could only afford to pay $25,000 per month moving forward. He emphasized that the company is working to stabilize its finances and has seen an increase in sales as it restocks its product offerings.

During the meeting, council members expressed concerns about the dispensary's financial viability and the potential impact on city revenue. The council discussed the possibility of approving the permit renewal with conditions, including the requirement for timely payments and the ability to revoke the permit if conditions are not met. Some members advocated for a more flexible approach, suggesting a temporary payment plan that would allow the dispensary to demonstrate its commitment to meeting its financial obligations.

The council ultimately decided to consider a proposal for a $25,000 monthly payment plan, with a review scheduled for the next meeting. This approach aims to balance the need for financial accountability with the recognition of the dispensary's role as a significant revenue generator for the city. The outcome of this discussion will be revisited at the June 16, 2025, city council meeting, where a final resolution will be considered.