Illegal pot shop prosecutions on horizon

While the city approved an ordinance to allow regulated cannabis businesses in Chula Vista in March of 2018, all cannabis businesses currently operating in Chula Vista are doing so illegally, as legal cannabis retailer applicantions are still being reviewed. On Sept. 20, Chula Vista police shut down another illegal cannabis retailer in Chula Vista.

At a dispensary located at 703 Third Ave., police arrested four employees for charges including possession of marijuana for sales, conspiracy to sell marijuana and operating a marijuana dispensary without a license.

Two loaded semi-automatic handguns and $50,000 worth of cash and cannabis infused products were seized from the location.

Officers also found the front door secured with a magnetic locking system and potential exits barricaded, which could have been deadly building violations in the case of an emergency, according to police Capt. Phil Collum.

“These businesses have been known to have an impact on the neighbors and actually sometimes become a magnet for crimes and disorderly behavior around the community,” Collum said.

He and Deputy City Attorney Megan McClurg confirmed that CVPD and the City Attorney’s Office have transitioned to criminal prosecution in order to take down these businesses.
According to city prosecutor Nicole Carnahan, the City and CVPD have executed three search warrants on illegal cannabis businesses in Chula Vista since August, and anticipate filing criminal charges related to each location.

Previously, the city pursued civil action against some of the illegal dispensaries. In every case they prevailed with an injunction, a judicial order that prevents the business from continuing to operate, according to McClurg.

The ordinance passed by the city last year allows for up to three cannabis retailers in each of Chula Vista’s four districts. No more than two of the three in each district can be storefront retailers. Under the ordinance, cannabis deliveries from outside of the Chula Vista will still be allowed.

The city hired an outside consulting company, HdL Companies, to assist with the licensing and screening process for cannabis retailers in Chula Vista. This consulting firm has also been hired by National City to draft an ordinance that would allow for the retail sale of cannabis in National City.

On Aug. 27, HdL released a list of final scoring information for each cannabis retailer applicant that includes an application score and an interview score, with a total possible score of 1,000 points.

A total of 39 applicants were scored, including five non-storefront delivery retailers. The highest amount of retailers applied to operate in district two, with 15 applicants, and the second highest number of retailers applying to operate in district four, with 12 applicants.
In contrast, only five retailers applied to operate in district one and six retailers applied to operate in district three. The applicant scores ranged from 824.5 total points to 976 total points.

Since these scores were released, the City has been conducting secondary background investigations of each applicant.

In a letter from the Office of the City Manager to cannabis retailer applicants, Deputy City Manager Kelley Bacon estimated that Notice of Decision letters would be sent out to applicants by Oct. 10.

According to City Marketing and Communications Manager Anne Steinberg, there is not a specific date set but the investigations are well underway.

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