HomeMy WebLinkAbout20210823_InfoRequest_MOMsCityofSanLuisObispo, CityAttorney’sOffice, 990PalmStreet, SanLuisObispo, CA, 93401-3249, 805.781.7140, slocity.org
August 23, 2021
Megan Souza and Eric Powers
Megan’s Organic Market
280 Higuera St.
San Luis Obispo, CA 93401
Via First Class U.S. Mail and email to:
Megan Souza: megan@megansorganicmarket.com
Dustin Tardiff: dustin@tardiffsaldo.com
Mark Cardona: mark@megansorganicmarket.com
Subject: City Request for Information from Cannabis Businesses
This correspondence is a formal request for information from Megan’s Organic Market
regarding the ownership, financial interests and operational control, related to the commercial
cannabis business in the City. In accordance with SLOMC 9.10.130 A, “each commercial
cannabis business shall allow city of San Luis Obispo officials to have access to the
commercial cannabis business’s books, records, accounts, and any and all data relevant to its
permitted activities for the purpose of conducting an audit, examination or inspection.”
As I am sure you are aware, several questions have been raised publicly regarding cannabis
business operations in the City following the recent federal investigation and criminal
proceeding involving Helios Dayspring, who was previously a principal interest holder in a
City permitted commercial cannabis business. The City requests the answers to the following
questions as a part of its efforts to conduct due diligence and to ensure the integrity, public
accountability, and transparency of its regulatory process, as well as to verify that its currently
permitted Commercial Cannabis Operator Permit holders are operating in strict compliance
with City regulations and state law.
We appreciate the investment in our community that your business has made, as well as your
cooperation with City permitting and regulatory processes. Our objective is to continue full
City support of legally compliant, permitted businesses and promote the public’s trust that
businesses in the City are operating in the best interests of the legally regulated cannabis
market and the health and safety of the entire community. To that end, please respond to the
following questions related to the permitted commercial cannabis business:
City Request for Information from Cannabis Businesses
Page 2
1. Were all financial interests in or to the permitted business, or affecting the
ownership, control, or operations of the business, fully disclosed to the City
during the application, background or permitting process? If not, please
provide any undisclosed interests and explain why interests were not
previously disclosed.
2. Has the business, or any of its individual or corporate permit
applicants/owners/operators/interest holders/affiliates, at any time from the
date of application with the City to present, had any financial, operational,
or ownership agreement of any kind, whether written or verbal, or any other
relationship or arrangement of any kind, that in any way affects the
operations, ownership, control or financial interests in or to the permitted
business, that has not been disclosed to the City? If so, please provide a
complete list of any such interests.
3. Has the business or any of its permit applicants/owners/operators/interest
holders/affiliates, at any time from the date of application with the City to
present, accepted any gift or loan of funds that in any way affects the
operations, ownership, control or financial interests in or to the permitted
business, which has not been disclosed to the City? If so, please list all such
funds and the source(s) of funds.
4. Has the permitted business, or any of its individual or corporate permit
applicants/owners/operators/interest holders/affiliates, at any time from the
date of application with the City to present, entered into any non-compete
or similar agreement with any individual or entity of any kind that in any
way affects the operations, ownership, control or financial interests in or to
the permitted business? If so, please identify all parties to any such
agreement.
5. Did any individual in any way affiliated with the cannabis business, or the
permitting application of the permitted business, receive information
regarding the City’s applicant rankings, permitting determinations, or
background investigations, from any person, prior to the City’s formal
notification to applicants or public disclosure of such information? If so,
please identify those individuals from whom information was received,
what information was received, and the manner in which it was received.
City Request for Information from Cannabis Businesses
Page 3
Please have a designated representative submit the answers to the questions above from all
current owners, and any proposed owners of businesses that have transfer of ownership
requests pending with the City, no later than 5:00 PM, August 31, 2021, to
City_Attorney@slocity.org or in such other manner that we may mutually agree is appropriate
to address any confidentiality concerns regarding any information you may submit. Answers
should be submitted with an attestation as to the truthfulness of the information submitted and
an acknowledgement that failure to respond or submission of untruthful responses may be
deemed a violation of the City’s Municipal Code and a violation of the Commercial Cannabis
Operator Permit and could constitute a basis for revocation of an operator permit.
Please feel free to contact me with any questions you may have or have your legal counsel do
so if you will be represented regarding this matter.
Regards,
Christine Dietrick
City Attorney