Rejected Weed Shop Sues City of Healdsburg

The owners of Mercy Wellness, one of eight cannabis companies that went through a months-long application process in Healdsburg last year — in hopes of becoming one of two shops now allowed to sell weed in town — have not moved on from the loss. In fact, they’re so upset they’re suing the city. The 25-page lawsuit, posted online by cannabis news outlet Green Market Report, contains a long list of reasons why Mercy owners think they should have beat out the winning dispensaries, Jane and Solful — and should be given another shot at goal. Among Mercy’s claims: they actually scored higher than both Jane and Solful during the evaluation process; the winners had flawed applications, including incorrect zoning and parking info; then-mayor Ariel Kelley violated the Levine Act by voting for her favorite shops while accepting money from them for her State Assembly campaign; and city officials violated the Brown Act by having some of their discussions in secret, behind closed doors. It’s also worth noting that Mercy sank a considerable amount of time and money into the property where they wanted to open their shop last year, before they knew whether they’d be chosen. Mercy’s managing director, Brandon Levine — who has no apparent relation to the Levine Act; the world is just confusing and synchronous like that — tells the Press Democrat that his company, which has existing locations in Santa Rosa and Cotati, “had its eyes on an abandoned, blighted, 4,500-square-foot space at 20 Dry Creek Road,” next to Tip Top Liquor where diVine Pizza used to be — and that “$40,000 in construction had gone into the site ahead of the city’s decision to award dispensary permits.” (His reasoning for that: “I wanted to make sure the city saw a level of professional commitment first.”) If I remember correctly, Mercy Wellness even had a sign up at one point. And then, to fan the flames, this mysterious diss mailer started going around at the time, saying Mercy’s proposal was a cause for “significant concern” and urging residents to send emails to city councilmembers with “NO CANNABIS DISPENSARY AT 20 DRY CREEK ROAD” in the subject line. So anyway, here’s what Mercy is demanding in their new lawsuit: “Because the City Council’s decision was tainted by conflicts of interest, violated zoning laws, violated California procurement laws, constituted an abuse of discretion, and violated the Brown Act, the permit awards to JANE and Solful must be voided, and the City Council must be ordered to conduct a new permit application process in accordance with the law.” In interviews with the PD, Healdsburg city officials say they feel the whole process was very fair, and seem confident they don’t have anything to worry about it. Guess that’ll be up to a county judge now… (Source: Green Market Report & Healdsburg Tribune & Facebook Groups & City of Healdsburg & Press Democrat; paywall)