Cannabis use considerations:
With the new California law that went into effect in Jan-2018 we understand that it is now legal under California law to produce, sell, and generally use cannabis products. We further understand that the new California laws introduce a strict regulatory scheme for the production, distribution, and sale of cannabis based products.
Within the last year or so the City Of Lake Elsinore (COLE) passed a cannabis ordinance and accepted cannabis Conditional Use Permit (CUP) applications up through approximately 15APR2018. Any type of use is acceptable to the COLE; as an example growing, processing, distributing, and dispensaries are acceptable. Earlier this year we selected an applicant to lease our property who represented himself as a medical cannabis processor. Our applicant submitted a brief CUP application and paid his application fee of approximately $21,000. Due to a series of unexpected events our applicant has abandoned his CUP application and his lease obligation. We have recently met with the COLE and been informed of the following:
(a) The CUP application filed for our property address is still active and is now technically "owned" ("runs with land" ) by the property owner (CMLLC), not the applicant.
(b) The currently filed CUP application can be reassigned to a new lessee of our choosing.
(c) We can lease to anyone interested in establishing a legal cannabis business, not just a previously approved COLE CUP applicant.
(d) There is no fixed time limit for resubmission of a revised CUP application on behalf of a new applicant. Nevertheless, CMLLC desires to get this done quickly.
(e) If a new applicant is responsive to the COLE's CUP application requirements then the COLE would likely approve a new CUP application within 90 days.
(f) In summary, our property comes with a pre-filed cannabis CUP permit ready to be assumed by a new lessee/partner/investor.
As of today, 21DEC2018:
(a) We will consider making the property available for lease to any qualified cannabis tenant.
(b) We will be contacting previously approved COLE applicants, other parties who have contacted us before and after 15APR, and angel/VC investment organizations we know of to inform them of this opportunity.
(c) We are not offering to sell the property at this time.
(d) We have recently assisted with a greater than 95% rewrite of our applicant's CUP application (now 107 pages) and we are offering our services to get a new CUP application completed quickly.
(e) Some of our previous applicant's business partners have expressed an interest in working with CMLLC and outside investors or partners to establish a cannabis extraction, processing, mixing, packaging, labeling, and shipping business. These individuals have extensive and proven expertise in this area. CMLLC is open to discussions from investors or partners in regard to such a business endeavor.
(f) We are open to expressions of interest in leasing our property.
(g) We are open to evaluating lease/partnership/investment offers.
(h) We still favor medically oriented cannabis business operations, however, we are willing to discuss all offers.
(i) We will likely open the property up to a competition based on "best value" criteria.
Thank you for your consideration.
