Montebello planning commission revokes RZ Capital’s cannabis conditional use permit at 8019 Slauson Avenue

The Montebello Planning Commission on a 3-0 vote adopted Resolution No. 01-25 to revoke Conditional Use Permit 04-19, which authorized commercial cannabis activities at 8019 Slauson Avenue.

The vote followed a staff presentation that said RZ Capital and Development LLC failed to comply with Development Agreement No. 04-19 and with the conditions of approval for CUP 04-19, including nonpayment of required community benefit and operating fees and a failure to file quarterly financial reports.

Viviana Esparza, the city’s planning manager, told the commission that the cannabis program requires both an approved conditional use permit and an executed development agreement and summarized a staff timeline of communications with RZ Capital tracing missed payments and missed reports from August 2023 through the present. Esparza said the city’s records show RZ Capital was delinquent in paying “at minimum a hundred 12,000 in community benefit fees” and had not submitted quarterly financial reports since April 2024. She recommended the commission adopt the resolution and a CEQA exemption finding under CEQA Guidelines, Title 14, Section 15321, Class 21.

Zachary Brandt, identified in the record as “owner operator of RZ Capital and Development,” addressed the commission during public comment and disputed aspects of the city’s enforcement approach while acknowledging his business’ financial struggles. Brandt said he had paid what he described as $166,250 into the community benefits fee program and $73,321 in quarterly cultivation fees and that his 2024 gross revenue was $195,466. He said he brought $20,000 to the meeting as a “good faith payment” and described attempts to negotiate a payment plan with city staff and with a collection agency. “If you revoke my license, I won’t be able to work in cannabis in California ever again,” Brandt said.

City staff and the city attorney repeatedly advised the commission that its authority was limited to factual findings under Chapter 17 of the Montebello Municipal Code and that payment terms under the development agreement fall within the city council’s purview. The city attorney stated that if the commission finds the violations occurred, “that is the required ministerial result of that finding.” Commissioners asked staff for clarification about whether code enforcement had access to the facility; staff said code enforcement had been denied access and that the specific date could be provided.

Commissioner Cuevas moved to adopt Resolution No. 01-25 revoking CUP 04-19; Vice Chairperson Medina seconded. Roll call votes were recorded as Chairperson Morales — aye; Vice Chairperson Medina — aye; Commissioner Cuevas — aye. The motion carried and the commission also approved the CEQA exemption determination included in the staff report.

The commission’s action will be final unless appealed to the City Council, a remedy staff and several speakers mentioned as available to the applicant. Staff noted the revocation affects both the CUP and the tied development agreement because the two documents require mutual compliance.

The staff report and notices included references to local ordinances that established the city’s cannabis regulations (Ord. Nos. 2399, 2400, 2404 and 2405) and to Montebello Municipal Code provisions cited as grounds for revocation (Chapter 5.9 and section 17.80.020(b)).