Recommendation to receive supporting documentation into the record, conclude the hearing, and adopt the hearing officer’s recommendation to revoke business license number BU21903666 issued to SOCAL Equity Holdings, LLC, located at 214-216 Atlantic Avenue, Long Beach. (District 1)
Thank you. I think we're going to go ahead and just take care of our one hearing that we have and then we'll get to the request to move up items. So let's hear hearing 24. There are two hearings this evening, 24 and 25. I understand one was going to be Paul, correct? Well, we'll get to that when we get to it here in 24. Report from Financial Management Recommendations received supporting documentation into the record. Conclude the public hearing and revoke business license issued to SoCal Equity Holdings, LLC. District one There is an oath required for this hearing. Thank you. Let's go ahead and conduct our oath. Do you and each of you solemnly state that the testimony you may give in the cause now and pending before this body shall be the truth, the whole truth, and nothing but the truth, so help you God. Thank you. Tom, you have the floor. Yes, we have Tara Mortenson here. She's the business services manager from Financial Management, and she will be providing a brief staff report. Good evening, Mayor, and members of City Council. The action before. You tonight is a recommendation that. You adopt the appeal hearing officer's recommendation to revoke the commercial industrial space. Rental business license issued to so-called equity holdings located at 214 to 16. Atlantic Avenue. This item was originally heard by a different hearing officer. On August 18th, 2021. The property owner followed the appropriate process to request an appeal. Of the decision. A second hearing was held on February 9th, 2022. After a thorough examination of the evidence occurred and with additional evidence being. Considered, along with testimony from. All parties, including city staff and the property owner and staff. The appeal hearing officer came to the same. Conclusion as the first with a finding in favor of the revocation of the business license. That concludes my staff report. Deputy City Attorney Art Sanchez. And I are available for any questions. Thank you. We're going to go to public comment. Is there any public comment on this hearing? Jorge Larios, please step to the podium. Good evening. Members of the City Council. My name is George Larios. I represent and also the owner of SoCal Equity Holdings. And I just wanted to kind of, you know, state that, you know, at that time, you know, when the incident happened, you know, I am a license holder with the state of California, hold a delivery license and hold several licenses here in Long Beach. And I felt like things were done unfair. There wasn't really physical evidence found inside the unit. They found my transportation vans with product for delivery, and I had total license in place as I presented out to all the members of the city. And I feel like there wasn't even witnesses stating what there were. No pictures are all they found inside was basically equipment and packaging, which I currently have, because I do have operations here in Long Beach. I hold four licenses and I also have 16 in play here in Long Beach and also currently working with social equity applicants for provide space on some of my properties. They didn't deny the fact that I was there, but I do hold state license and I see that there is not really a I. First they said that I was conducting illegal business and now it turned into a legal business conducted illegally here in Long Beach. I had a witness of mine that's here today. And and he stated that Laurie Moss was basically lying, saying that he said that that I was running illegal delivery when when I wasn't. And there was really no physical evidence found inside other than the scale and some crumbs inside the property. There was no physical witness that came and no witnesses became foot in front to state that I was one illegal visitors and nothing activity whatsoever. But the transportation vans that I have, I conduct business here in Long Beach. I conduct business in up north and I do frequent deliveries here in Long Beach. And we always have a safe place to pull over when we have to eat. When my drivers have to put gas. In, I felt that, you know. Them parking in my property, why they why they get some lunch, use the restroom so they can make their way up to the city of Davis of North is more safer than parking the street and, you know, us getting robbed. So that's all I got to say. Thank you. Thank you. Any additional public comment? That concludes public comment. We'll take it back behind the rails there. A second on this motion. Okay. It's been moved and seconded. Councilman's and house. We'd like to speak to your motion. I guess first I'd like to ask, um, city staff if you can probably share a little bit with us some of the findings and evidence that you might have. Or the process that you went through. So, Councilwoman Zendejas. I'm the one that actually handled the hearings, both for the initial hearing to revoke the license and then the appeal that was filed on behalf of the business license holder and conducted that hearing as well. What was discovered was. A a business. Location where there was a lot of activity happening outside of the. Rear of the. Location, which was to 14 to 16 Atlantic Avenue. Business license investigators were received a complaint regarding that activity. An investigation. Was conducted. And an inspection was scheduled and this was back in December of 2020. And when inspectors arrived, they couldn't enter the premises. They contacted the property owner to gain access. There was a series of delays. But when they eventually entered the premises, they discovered. Well, when they had to come back to the premises that same day. They discovered. People emptying out. Boxes of cannabis product out of the out of the. Address and and loaded into vans that were parked in an adjacent parking lot. And there was information that was obtained from one. Of the workers that was unloading the product out of the address to the loading. Van, saying that they. Were instructed to empty out the location of all the marijuana product. And so there was also information relating to a. Discussion between Mr. Larios. Who you heard public comment from and that business license inspector Lauri Vos regarding entry into the premise, but also the a comment. Regarding what. The inspectors. Found when they came back and Mr. Laurel's and for Ms. Voss which she testified to during the hearing that. That he had to make money somehow and that, you know, he had other open applications, which he does have a number of open applications. At the time. With the city. And so he had to make money somehow. And so that's, you know, basically what he was doing. Then he admitted that to his Voss. There was also additional information that came out during the hearing that indicated that illegal or unlawful packaging of marijuana product was occurring at that apartment location. So that's generally, you know, a brief synopsis of what came out during the hearings. I think you can. Can someone also explain the difference between a local cannabis license and a state can minibus license and what proceeds may be city attorney or. So the. State, the state canvas, and so SOCO Equity Holdings. LLC. And its principals. Mr. Larios. I think. One of the entities and Mr. Larios is a. Principal. Of, does have a delivery. Cannabis delivery license. That cannabis with the. State that cannabis delivery license is. Based in Davis, California, which is up in Northern California. And that is the license that. He's describing to. Counsel today that he had when all this occurred. And the city's position is well. So let me step back to answer counsel on this question, and that is. A state delivery license is allowed to deliver. Anywhere within the state. So that would include a local jurisdiction here in the city of Long Beach. The city of Long Beach has not. Has not. Allowed delivery services to occur other. Than. From retail dispensaries. And so we are in the process. Or the Office. Of Cannabis Oversight is in the process of amending that in relation. To the social equity. Ordinance that is going to come before council, I think, next month. And then at some point that. Delivery is going to be opened up to all. Delivery. Or all delivery or. All cannabis businesses separate and apart from social equity. So that but because Long Beach doesn't have a local ordinance allowing for delivery. There is. A, I guess, a little bit of a gray area. And that in that situation. However, if you are going to use a. A property. Location to assist in conducting a business, you do have to have a license. With the city to do that. If I could add to that real quickly, Councilwoman, the the hearing officer. Of both the original hearing and at the appeal hearing upheld the evidence and found that at all times there was no adult cannabis related business license in place for the property to satisfy the requirements of Long Beach Municipal Code. Chapter 5.92. 210a And that he was this business was in violation of that. And they upheld that decision both at the appeal and at the original hearing. Thank you. I'm a huge cannabis equity advocate and I am someone who always wants to see this industry to, you know, thriving here in Long Beach and out of respect to all of our cannabis businesses. It's important that we take a careful look into these matters, because the last thing we want is for local cannabis businesses that are doing everything, you know, legally, that they feel that we're letting someone get away with not doing it legally. So for that, I want to thank the staff and and all everyone involved for really shining a light on this matter and will continue to be an advocate for cannabis equity. Thank you. Thank you. Councilman Price, anything? No, thanks. I support Councilman Zendejas. Thank you. Let's have a roped up. Excuse me. I keep saying a roll call vote. I'm used to virtual meetings. Let's go ahead and cast our vote.