The Madera City Council on Aug. 22 unanimously adopted a resolution asking that the community benefit agreement dated Aug. 15, 2024, with Madera House Culture Inc., doing business as Culture Cannabis Club, be declared void after city staff reported the corporation had been suspended by the California Secretary of State.

The council’s action followed a presentation by the city attorney, who said the corporation had been suspended for more than a year and that, under city code, a commercial cannabis business (CCB) permit and related agreements automatically expire when the entity is suspended. "Our position is the agreement is already automatically expired," the City Attorney said, adding the resolution is a procedural step to confirm that status and to ensure transparency if an applicant slot becomes available.

Owners and representatives of Culture Madera urged the council to consider the suspension a remediable administrative oversight. "Culture of Madera is fully committed to honoring the cannabis business permit and the benefits agreement that we entered into with the city," said Devin Julian, who identified himself as one of the owners. Julian told the council the project is "fully funded and ready to move forward," that building-permit and sign-permit applications had been submitted in recent weeks, and that the suspension stemmed from an accounting-vendor change that the company expected to resolve within days.

Mike Warda, who said he represents the applicant, disputed the city attorney’s assertion that the entity "cannot do business." "It can do business. It just can't file a lawsuit right now, because it is in suspended status," Warda said, and urged the council to consider extending agreements when applicants demonstrate good-faith efforts to cure administrative issues. Warda also said he had an earlier communication from the planning director indicating staff had been willing to work with the applicant through Aug. 29.

The City Attorney responded that the Secretary of State confirmed the suspension and that the email exchange did not extend any commercial cannabis business license deadlines; the attorney said delays in reviving a corporation do not toll mandatory permit deadlines or other requirements related to permit issuance under the city's code. The City Attorney also clarified that the meeting was a special session, not an emergency meeting.

After public comment, an unidentified council member moved, and the council voted on a slightly modified resolution confirming the expiration/voiding of the prior community benefit agreement; the motion passed unanimously. The council gave no additional direction to staff in the meeting.

The special meeting was adjourned at 4:40 p.m.; the council's next in-chamber meeting is scheduled for Sept. 3, 2025.