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Local applicants and residents say cannabis licensing process left unresolved amid litigation
Summary
Applicants and community members told the council that alleged fraud in the city's cannabis licensing process has produced lawsuits and stalled legitimate businesses; speakers said the city failed to investigate admitted fraud and is spending legal dollars defending contested decisions.
Several applicants and business representatives urged the National City Council to address what they described as fraud and unfairness in the city's cannabis licensing process, saying that admitted false statements in applications and slow staff responses have forced multiple lawsuits against the city.
Laura Wilkerson, who identified herself as representing "Cali Moda," told the council the business's microbusiness application projected more than $11.5 million in community economic benefits in its first three years and that the business had not received a substantive staff response. "We have also put in good faith offers of settlement to the city attorney; we have never received a reply," Wilkerson said. Other speakers said element 7 and its majority owner, Rose Jasso, admitted fraud and yet the city did not investigate.
Bill Nuzzo and other commenters said the city has spent thousands in legal fees defending its licensing decisions and that litigation has delayed revenues. "Why spend money when you could be generating income?" Nuzzo said, urging the council to consider adding more operations that would meet the local-ownership intent of the program.
Speakers referenced several pending or recent lawsuits by name; the council's closed-session agenda listed "Cali Mota versus City of National City" and "BCD LLC versus the City of National City" among the items for legal counsel discussion. Commenters said those cases and at least one administrative appeal stem from the same licensing round and that some applicants have dissolved their business entities while waiting for resolution.
Council members did not make public comments on the legal disputes during the public-comment period. A settlement conference was mentioned by a commenter as scheduled for June; the city did not provide a public response at the meeting.
Speakers urged the council to provide records and communications related to the licensing process and to accelerate staff work so legitimate, compliant applicants can begin operations.
