Pacifica council upholds termination of Seaweed Holistics' cannabis permit, waives safety fee and orders payment plan for taxes

The Pacifica City Council on April 28 denied an appeal from Seaweed Holistics LLC and upheld the city’s March 19 notice declaring the cannabis business’s public-safety license expired and its cannabis activity permit terminated.

The council then instructed staff to waive the cannabis public-safety license renewal fee and to establish a payment plan for outstanding municipal taxes and audit findings tied to the business.

The council’s action follows staff testimony that Seaweed Holistics failed to pay the required cannabis public-safety license renewal fee of $25,375 by the Oct. 16, 2024 deadline, which under the Pacifica Municipal Code results in automatic expiration of the license and termination of the associated cannabis activity permit. Deputy Director of Community Development Brianne Harcusha told council that the code does not permit hardship waivers for the license fee, and that unpaid license fees lead to automatic expiration.

Appellant Anna Williams, listed in city records as the business owner, told the council she appealed to avoid an abrupt closure and to give staff time and customers “a proper goodbye.” Williams said the store has inventory on hand — she estimated at least $20,000 — that she cannot legally re-sell elsewhere if the license is revoked immediately and that she had explored possible buyers or partners. Her husband and business partner, Tony Williams, described “crushing” compliance and tax costs for small operators in the state market and asked the council to permit either a sale or a short extension.

City staff and the police captain assigned to cannabis licensing described prior contacts and inspections. Captain Glasgow said city auditors and an independent compliance vendor inspect cannabis businesses annually; an audit of Seaweed Holistics for fiscal 2023–24 showed underreported taxes and resulted in a payment plan for the audit findings, of which only two installments were paid and a final installment remained outstanding. Assistant City Manager Julia Carter told council that no tax remittances were received by the city after October 2023 and that the total amount owed across fees and unpaid taxes cited during the hearing could exceed the $64,000 figure staff initially listed, possibly approaching a larger sum once all unreported receipts are accounted for.

After public comment from neighborhood residents and customers urging leniency and a “graceful ending,” Councilmember Greg Beier moved to deny the appeal and uphold the termination notice. Later, the council voted to waive the cannabis public-safety license fee and direct staff to develop a payment plan for outstanding taxes identified by the city. Staff said the Municipal Code currently does not authorize a payment plan for renewal of the safety license itself, but council’s direction waived the fee and authorized staff to pursue collection arrangements for tax liabilities.

Mayor Sue Beckmeyer and all council members voted to adopt the actions. The final motions leave Seaweed Holistics without a city public-safety license but with a reduced immediate licensing bill; the business must still resolve outstanding tax and other obligations under the payment plan that staff will implement.

In remarks during public comment, Anna Williams reiterated her request for a short, orderly period to sell inventory and transition staff if possible. City staff told the council a new cannabis activity permit and public-safety license would be required for any future cannabis operation at the location and would be subject to standard state and local licensing, background checks and possible Planning Commission review.