Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Business Compliance topic
No spam. Unsubscribe anytime.
Council finds Blue Diamond LLC in default of development agreement, gives 30 days to cure
Summary
After staff reported missed payments, incomplete audit documentation and failure to meet the 1% community benefit requirement for 2025, the Port Hueneme City Council voted unanimously to find Blue Diamond LLC in default and directed staff to issue written notice that the development agreement may be revoked if the business does not cure defaults within 30 days.
Port Hueneme city staff told the council on July 20 that Blue Diamond LLC, a cannabis delivery operator, had failed to meet several contractual obligations under its development agreement: late or missing payments under an executed payment plan, incomplete cooperation with a city‑retained financial auditor, and failure to provide the required 1% community benefit payment for 2025.
Deputy city staff outlined that of six scheduled payments under a prior plan, two were late and three were not received; staff said the payment plan expressly stated no additional plans would be offered. As of the council hearing staff reported an outstanding balance of $5,368.79. Staff also said the city’s auditor confirmed multiple required documents were missing to complete the financial audit, and that business communications had lapsed for months until notice of the hearing was issued.
Daniel Vasquez spoke on behalf of Blue Diamond LLC, said the business disagreed that it acted in bad faith, described turnover at the contracted audit firm that complicated the audit handoff, and said Blue Diamond had resumed communications in July and paid April–June arrears and a $1,680 payment toward the outstanding balance. Vasquez said no ownership change has occurred and that the business identified a qualifying local nonprofit (the Boys and Girls Club) to receive the 1% community benefit payment; he said Blue Diamond is committed to completing audit follow‑up and curing outstanding items.
After hearing staff, the business representative and public comments, council closed the public hearing and unanimously adopted a resolution finding Blue Diamond LLC in default of its development agreement. The council directed staff to provide formal written notice of the city’s intent to revoke the agreement if defaults are not cured within 30 days. Councilors stressed they did not wish to see a local business fail but emphasized the fairness to compliant businesses and the need for consistent enforcement.
Staff said if the business corrects the deficiencies (complete audit cooperation, evidence of community benefit payment, and payment of outstanding balances) within 30 days, the council’s action could be rescinded and the agreement remain in force.
