La Habra council votes to terminate expired development agreement for proposed cannabis distributor

The La Habra City Council voted unanimously July 21 to adopt on first reading an ordinance terminating Development Agreement 20-01 with Pinnacle Wellness Group LLC for a planned cannabis distribution facility at 536 West Mountain View Avenue.

Ginger Ivy, management analyst in the Community and Economic Development Department, told the council the four-year agreement, approved Feb. 16, 2021, expired on Feb. 16, 2025. "Although a permit was issued for tenant improvements, the facility never received final inspections and consequently never started operations," Ivy said. She also said the property was recently sold and is now occupied by a different business.

Ivy said the city never received any of the anticipated payments tied to gross receipts or community benefits because the business did not open. Staff recommended approving the ordinance and terminating the development agreement, a step that requires a public hearing and an ordinance under state law, she said.

With no members of the public speaking for or against the item, a council member made a motion to approve and adopt the first reading of the ordinance; the motion passed unanimously.

The action removes the city's binding development agreement with Pinnacle Wellness Group LLC; council documents show the agreement is identified as development agreement 20-01. The termination is administrative and does not involve new land-use approvals for the site.

The council's unanimous vote was recorded as carried; no additional conditions or amendments were included in the motion. Because the agreement had lapsed and the business never began operations, staff said there are no outstanding community-benefit payment obligations to pursue under the expired agreement.