Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Cannabis Regulation topic
No spam. Unsubscribe anytime.
Council approves payment plan and late‑fee reduction for impaired cannabis operator
Summary
Council accepted a payment plan with a court‑appointed receiver for Element 7 that covers principal arrears and reduces existing late fees by 50%, and directed staff to lower future late fees from 10% to 5% monthly on delinquent cannabis accounts.
The City Council approved a staff‑negotiated payment plan to resolve the largest outstanding delinquency among local cannabis businesses.
Deputy City Manager Charles Peretz described the settlement proposed by the court‑appointed receiver for Element 7: an immediate payment of $27,897.74 to cover outstanding principal (leaving existing late fees), a 50% reduction of the existing late‑fee balance, and six monthly installments of $1,920.67 to retire the remaining late fees. Staff recommended that any business that chooses to enter a payment plan to retire outstanding balances be offered the same 50% reduction of existing late fees to ensure consistent treatment across affected cannabis operators. Staff also proposed an administrative change to reduce the ongoing monthly late fee rate from 10% to 5% for future delinquencies.
Councilmember questions established that staff will notify other delinquent cannabis operators about the available option; some other businesses already have payment plans in effect and staff is engaged in regular communications. Council approved the Element 7 proposal and the administrative change to the prospective late‑fee rate.
Staff said the city has been taking a more proactive, hands‑on approach to managing cannabis accounts and will continue outreach to help businesses return to compliance.
