Medical marijuana dispensary told they must close their doors; Owner says no

"We will continue to stay open," said Cody Bass, founder and executive director of the Tahoe Wellness Cooperative after being told by the City Council Tuesday that he no longer has a Medical Marijuana Dispensary Permit to operate in South Lake Tahoe. "We are going to take this to the end."

One of his lawyers, James Anthony added, "They will be reviewing this decision in Superior Court."

That decision was the denial of Bass' appeal of SLT City Manager Nancy Kerry's determination that his delinquent permit application was incomplete. As soon as the Council voted to unanimously support Kerry's decision, the crowd erupted with shouting.

"Without this medicine I'll die," said one man, whose wife said he has had brain surgery and still experiences seizures. Many others were standing and yelling comments, some having to be calmed down and escorted out of the room by SLT Police Chief Brian Uhler.

TWC is the only medical marijuana dispensary in the City and they have 37,650 patients on file. Patients can still go to other towns to purchase their cannabis.

Every two years Bass must renew his dispensary permit with the City according to City Code, and the most recent one expired on May 20, 2016. Since Bass and his landlord, Olson Bijou Center, are involved in a civil dispute he couldn't get the signature of Patty Olson, current owner of the property, a requirement of a permit. Bass and Olson are heading to a jury trial in February, 2017.

To address Bass's appeal, the "quasi-judicial hearing" was held during the City Council meeting December 13, with the five Councilmembers acting as judges. No public comment was allowed due to it not being a normal agenda item, but a hearing, much to the dismay of the crowd attending the meeting.

Kerry said she gave Bass several extensions on getting his permit and the $7,000 permit fee turned in, the last extension ending November 9, 2016. Bass signed the incomplete permit application on November 9, but City staff said they received it on November 11. The application did not have the required fee with it, nor Patty Olson's signature.

"Our options are very narrow," said Councilman Tom Davis. "We're talking compliance to code, forms filled out and fee paid."

Bass explained that he couldn't get Olson's signature since their litigation started in May, 2016. He said he had spoken with Assistant City Attorney a month before and that she had advised him to wait until the November election to see if Prop. 64 passed. Bass had subsequent conversations with Kerry that kept him informed on what was due, and when.

The civil matters between Bass, TWC and Olson weren't before the Council, though one of the lawyers thought differently. "The City shouldn't be an agent of the landlord," said Bass lawyer Henry Wykowski. "Keep in mind TWC has been operating since 2009. There is no sound basis to not renew."

"Our responsibility is to let civil matter be civil matters," said Councilman Jason Collin.

As of today, Bass does not have a valid permit to operate the Tahoe Wellness Cooperative according to City Attorney Tom Watson. What happens next is unknown, but Bass and his lawyers say they'll stay open.