City settles appeal by denied cannabis applicant

The City of Canyon Lake City Council met last week to hear a report and presentation regarding its recent cannabis license decision and the process it went through to choose the business to receive the single license. Also discussed was the city’s recent settlement with the cannabis applicant that finished in second place who filed an appeal with the city.

The city, after ranking the applicants according to a point system, chose the highest-ranking applicant, Culture Cannabis Club of Canyon Lake at a meeting in June, to receive the city’s first cannabis business permit.

It is anticipated that the Culture Cannabis Club of Canyon Lake will open for business in the summer next year. It will be located in the Canyon Lake Town Center in the storefront currently occupied by Real Deals, 31524 Railroad Canyon Rd.

Meanwhile, the applicant that was ranked second on the point list appealed the decision. On July 7, The Syndicate Canyon Lake filed an appeal. An appeal hearing before a hearing officer was held on Aug. 22. Subsequent to the hearing, but prior to a decision being issued by the hearing officer, the city and The Syndicate came to terms on a settlement agreement.

Per this agreement, the city agreed to maintain the current final Ranking List until June 30, 2027, or until The Syndicate has been offered a commercial cannabis business permit, whichever comes first. Currently, the city has authorized just one cannabis permit. Maintaining the list in its current ranking would mean that should a second permit be authorized, The Syndicate would be in position to receive it.

The city will also allow The Syndicate to make a presentation before the City Council for the purpose of proposing that the City Council increase the maximum number of commercial cannabis business permits. In return, The Syndicate will dismiss their appeal, allowing the city to proceed with the issuance of a commercial cannabis business permit to Culture Cannabis Club of Canyon Lake.

The final rankings and the total points assigned from the various categories included in the application process (out of a total possible of 1,000 points) were Culture Cannabis Club, 953.06 points; The Syndicate, 784.80; IE Gardens, 677.46; Element 7, 613.02 and Sipkoi, 509.42.

The city has entered into negotiations with Culture Cannabis Club of Canyon Lake on a Community Benefits and Neighborhood Compatibility Agreement, which will address operational concerns of the city as well as those raised by the public at the May 25 public meeting.

While city staff said it does not anticipate any issues, if an agreement cannot be reached on operational conditions, the next highest ranked applicant will be offered the commercial cannabis business permit, and so on.

The city anticipates this process will be concluded by Oct. 31 and that the commercial cannabis business will open sometime in the summer 2023.