Port Hueneme orders cannabis dispensary to show cause after years of missed payments

Port Hueneme city staff told the City Council on May 5 that Emerald Perspective Cooperative Inc., a cannabis dispensary at 100 W. Pleasant Valley Road, is out of compliance with its development agreement and owes roughly $90,834.69 to the city, and staff recommended immediate collection or revocation steps.

Tony Stewart, community and economic development director, reported that Emerald had failed to make required 5% contractual payments and had not paid its 2024 business license tax or required inspection/audit fees. Stewart provided the staff tally: the outstanding 5% contractual payments with interest total $76,216.87; an unresolved prior audit balance is roughly $7,000; an unpaid 2024 compliance inspection is $1,250; penalties for late payments from October–December 2022 total about $3,000; and a past‑due business license balance is approximately $1,642. "Consequently ... the recommendation at this time is that Emerald Perspective Cooperative Inc. is in violation of their development agreement," Stewart told the council.

The development agreement (approved as part of the city's cannabis permitting program) requires regular contractual payments, annual audits, and compliance with conditional use permit (PHCU844) conditions such as employee identification and having required plans on site. Stewart said staff had made more than two dozen outreach attempts since December 2023 and that provided documentation either was unsubstantiated or not supplied; HDL, the city’s outside inspector, reported missing plans and employee identification during an October inspection and Emerald did not respond to requests to correct the items by the November 30 deadline.

During the hearing Emerald staff and employees asked for time to respond. Assistant manager Walter Gause asked the council for a 60‑day extension, saying owner Mead Whipple had been dealing with a medical crisis in his family and that the business was trying to gather funds. General manager Andrea Reyes said she had recently learned of the city’s claims.

Council action and conditions: the council discussed two staff options — demand full payment within 30 days and begin revocation procedures if unpaid, or approve a one‑time payment plan with a minimum immediate payment and completion within six months — and then adopted a course that mixed immediate compliance requirements with a return date. The adopted motion required Emerald Perspective to come into compliance within 30 days, make an immediate payment of $12,000, and then complete a multi‑payment schedule so the outstanding balance would be paid within six months; the council continued the public hearing to June 2 so the council can review compliance and any signed payment agreement. Council members also directed staff to prepare the necessary resolution and to treat the matter as exempt from CEQA as part of the development agreement review.

What the council emphasized: council members expressed sympathy for the owner’s reported family situation but also stressed fairness to other businesses that have complied and the city’s need to protect the general fund. Tony Stewart noted staff cannot confirm any claimed $9,000 credit until outside auditors complete their work, and the city will require a true‑up following the audit with any additional monies due within 30 days of audit completion.

Next steps and enforcement: if Emerald fails to meet the 30‑day compliance steps the council authorized staff to begin revocation of the development agreement and conditional use permit. The council also recorded on the public record the amounts and requested that staff present documentation of the audit true‑up when it is complete.

Ending: the council’s motion passed unanimously (Member Blackwell absent); staff will reconvene the public hearing on June 2 to receive evidence of compliance or to take further action.