ZF #2022-0091: Consider recommendation of denial of a Cannabis Use Permit that would allow issuance of a cannabis cultivation license for up to two acres of canopy and a cannabis nursery license for Green Dream Farms, Inc., and determine the project denial is exempt from the California Environmental Quality Act (CEQA). The project is located on a ±50-acre agriculturally-zoned parcel off County Road 100 and State Highway 113, approximately 1.75 miles east of the unincorporated community of Yolo (APN: 027-280-019). (Applicant: Zhen (Bryan) Wu/Owner: Stillwater Trust) (Planner: Jeff Anderson)

Green Dream Farms, Inc. has requested the issuance of a cultivation license for up to two acres of cannabis canopy and issuance of a nursery license.  Staff recommends denial of the permit. Cannabis Land Use Ordinance (CLUO) Section 8-2.1406(L) mandates the consideration of the compliance history of all applicants, which extends to include all associated property owners.  The subject property (APN: 027-280-019) is owned by Stillwater Trust, under the ownership of Michael and John Roth. Stillwater Trust and John Roth have not maintained a satisfactory compliance history during their previous licensure for cannabis cultivation and there have been instances of significant illegal cannabis cultivation on properties owned by Stillwater Trust and John Roth within Yolo County. Additionally, the Green Dream Farms operation has had numerous compliance issues, including five Notices of Violation (NOV) in the last seven years. When reviewing the aggregate compliance history of the property owner and Green Dream Farms business entity, there is significant concern that the project can be operated in compliance with the Cannabis Licensing Ordinance, Cannabis Land Use Ordinance, and state law. 

SUMMARY
The project is located on a ±50-acre agriculturally zoned parcel, located approximately 1.75 miles east of the unincorporated community of Yolo and 1.8 miles north of the City of Woodland. Green Dream Farms first received a license to cultivate cannabis in 2017 and has cultivated continuously since then under state and county licenses. However, on or around August 20, 2024, the State of California Department of Cannabis Control informed the County Cannabis Unit that the Green Dream State provisional license expired due to the applicant’s failure to submit paperwork for a timely renewal. Shortly thereafter, the State reinstated the Green Dream Farms provisional license for six months. The State provisional license will expire on January 31, 2025.

The surrounding land uses are generally agricultural—row crops, rural homesites, and a seed research facility (Sakata Seed America, Inc.) to the east. The remainder of the ±50-acre parcel has been farmed in process tomatoes and sunflowers in recent years. Access to the property for all cannabis related uses is from CA-113, at the southwest end of the property. The driveway into the property is a dirt road leading to a locked gate, and the remainder of the internal access roads are dirt. The nearest sensitive land use is an agricultural homesite approximately 1,650 feet to the west of the cultivation area. There are five agricultural homesites located within 2,000 feet of the cultivation area, and several other agricultural homesites beyond 2,000 feet, typical of the rural Yolo County agricultural landscape.

Green Dream Farms currently cultivates up to one-acre of canopy within 12 large metal frame hoop house-type structures and in outdoor rows on five acres of the larger ±50-acre parcel. Processing, drying, packaging, and storage of product occurs inside modified refrigerated truck trailers. Green Dream Farms proposes to expand operations four acres to the south of their existing fenced cultivation area, for a total project site of 9.29 acres. Green Dream Farms requests the addition of one-acre of cannabis canopy, for a maximum of two acres of canopy, and requests issuance of a nursery license. Approval of a nursery license would allow Green Dream Farms to grow cannabis used for propagation, including clones, immature plants, and seeds, and sell them commercially through a licensed distributor. Regional nursery uses are not open to the public and the license does not allow for onsite sales.

Green Dream Farms proposes to transition from outdoor cultivation to indoor cultivation by converting the twelve existing hoop house-type structures to greenhouses, and by adding 43 new greenhouses (each 2,400 sf), for a total of 55 greenhouses. The ground disturbance for the proposed greenhouses is 132,000 sf, or just over three acres, in addition to concrete paths of travel. Of the 55 total greenhouses, 36 are proposed for flower canopy, five for nursery uses, five for product storage, four for cloning, three for trimming, and two for drying. Green Dream Farms also proposes to convert the existing cargo container for office and storage uses. Permanent ADA compliant restrooms are required if processing activities occur onsite, unless a variance is approved by the Environmental Health Division in limited circumstances. Green Dream Farms has not provided a proposal for permanent restroom and instead proposes use of portable restrooms. Green Dream Farms employs three year-round employees and up to 15 seasonal employees during harvest and trimming periods, and no additional employees are anticipated. In addition to daily employee vehicle trips, the applicant expects up to eight vehicle trips per day for deliveries and maintenance activities.
 
The agricultural water well used for project operations is located approximately 250 feet north on a separate parcel owned by the same property owner, Stillwater Trust, which provides irrigation water for the Green Dream Farms cannabis uses as well as the agricultural row crops on both parcels. PG&E power would need to be extended from the property to the north to provide permanent power to the proposed greenhouses and other cannabis use structures.

ANALYSIS
The subject property is owned by Stillwater Trust, under the ownership of Michael Roth and John Roth. The State of California Office of the Secretary of State Statement of Information filing lists Zhen (Bryan) Wu and Wayne Yu as officers of the Green Dream Farms, Inc., and Spencer Manners as a director of the company. The below describes the compliance and enforcement history of the property owner, applicant, and Green Dream Farms business entity, which, when taken together, informed staff’s decision to recommend denial of the cannabis use permit.

Property Owner Compliance and Enforcement History

October 17, 2017- District Attorney Complaint against Roth/Cloud Nirvana

2018-2020- Five NOVs and Settlement Agreement 

September 22, 2020, and January 26, 2021- Unpaid Tax Assessment for Cloud Nirvana

July 3, 2023- NOV on County Road 85, Oak Creek Ranch, Inc.

July 10, 2023- NOV at 13500 County Road 100

September 22, 2017- NOV for Track and Trace Issues

September 28, 2018- NOV for Track and Trace and Code Violations

October 11, 2021- NOV for Illegally Transporting Cannabis Product

September 14, 2023- NOV for Track and Trace issue

August 15, 2024- NOV for Expiration of State Department of Cannabis Control (DCC) License

Green Dream Farms Track-and-Trace System Compliance
 

The California Department of Cannabis Control requires all licensed cannabis businesses to use the track-and-trace system to record, track, and maintain information about cannabis and cannabis product inventories and activities. All cannabis plants and goods are required to be tagged with unique identifiers, which are used to track the movement of cannabis through the supply chain. Compliance with track-and-trace requirements is a crucial component of the enforcement process to keep cannabis from entering the illegal market. Green Dream Farms has been cited for track-and-trace compliance issues on 28 routine inspections from 2017 to present for varying degrees of non-compliance. Five of the track-and-trace during this time period resulted in issuance of a Notice of Violation. Although many of the track-and-trace citations have been corrected over time, Green Dream Farms’ continued pattern of non-compliance with the track-and-trace program causes concern and demonstrates that Green Dream Farms is not equipped to address the essential administrative requirements associated with state and local regulatory programs.

Recommendation Summary
 

The compliance and enforcement history of both the property owner, Stillwater Trust (John and Michael Roth), and the licensee (Green Dream Farms), demonstrate an inability to operate under the regulatory framework of the Cannabis Licensing Ordinance, Cannabis Land Use Ordinance, and state law. Cannabis use permits run with the land, meaning the permit is issued to the property owner. In this case, if the cannabis use permit were approved, Stillwater Trust would hold the rights to the cannabis use permit and would benefit financially by leasing property to a cannabis operator (i.e., Green Dream Farms). Many of the violations committed by Stillwater Trust and Green Dream Farms are egregious and demonstrate involvement in the illegal cannabis market. The blatant disregard by Stillwater Trust, namely John Roth, of state and local regulations regarding cannabis activities, is detrimental to the public health, safety, and general welfare.

Based on the compliance history of the licensee and the lack of detailed information provided in the application submittal, staff is not confident Green Dream Farms can conduct cannabis operations in compliance with County regulations, standards, and specifications. Green Dream Farms currently cultivates in 12 large hoop house-type structures and proposes a total of 55 greenhouses upon build out, which would all require permanent power to operate lighting and temperature regulations (i.e., fans and air conditioning). The applicant has not explained how permanent power or water services would be extended to the cultivation parcel. Currently, electrical power and the water well are located on the parcel to the north, also owned by Stillwater Trust. Additionally, the applicant has not provided sufficient information regarding access to the parcel. The applicant proposes to continue use of a dirt access road off of State Highway 16 to the south of the cultivation area that does not have a paved connection to State Highway 16. The applicant has not provided clear documentation showing that the access road is located entirely on the cultivation site parcel. As discussed below, the neighboring property owner to the west has stated that the access road is located on the property to the west. Further, the CLUO requires that driveways have an all-weather surface, such as compacted gravel.

The applicant has also not adequately demonstrated how they intend to meet the requirement for a permanent restroom. Permanent ADA compliant restrooms are required if processing activities occur onsite, unless a variance is approved by the Environmental Health Division in limited circumstances. Due to the scale of activities proposed, a variance from the requirement for a permanent restroom would not be possible.

The five-acre cultivation area is fenced with field fencing fabric material and is in a state of disrepair—the fabric in many locations is falling off and not secure, creating an eyesore. Staff informed the project applicant early on in the application review process that any fencing proposed as part of the Use Permit would need to be constructed of durable materials and remain in good repair and recommended that the fencing be repaired. To date, the applicant has not made significant efforts to repair the existing fencing material.

Should the Planning Commission deny the Green Dream Farms Cannabis Use Permit, all cannabis activities at the project site must cease, and all cannabis plants and products shall be removed, by March 31, 2025 (the expiration date of Yolo County Cannabis License No. PR0065693), or the date which the State Department of Cannabis Control license expires, whichever occurs first.  

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) REVIEW 

In accordance with CEQA Guidelines Section 15270, CEQA does not apply to a project which a public agency rejects or disapproves. Therefore, based on staff’s recommendation to deny the Green Dream Farms Cannabis Use Permit, no environmental review under CEQA has been conducted. Should the Planning Commission decide not to support staff’s recommendation for denial of the use permit, staff would conduct an environmental review pursuant to CEQA and bring forth the documentation at a later date.

SUMMARY OF PUBLIC CORRESPONDENCE 

A Request for Comments was distributed to reviewing agencies on June 9, 2023. A Courtesy Notice was also distributed on June 9, 2023, to the Planning Division’s interested parties list and mailed to property owners within 1,000 feet of the property boundary of the subject parcel. The Courtesy Notice summarized the existing and proposed operations as provided in the application materials. Staff received two separate letters from the adjacent property owners to the west (Jim and Doug Wirth) and a letter from Sakata Seed America, Inc., the property owner to the east. Jim and Doug Wirth expressed that the dirt road off State Highway 113 Green Dream Farms uses to access the cultivation site is on the Wirth's property and they object to the use of the access road. They suggest Green Dream Farms establish access off County Road 100. It should be noted that the Green Dream Farms applicant has not provided documentation that shows whether they have legal access on the dirt road off State Highway 113 that the Wirth's claim is on their property. Timothy Do-Cambridge, Sites and Facilities Manager for Sakata Seed America, Inc., raised concerns over the pungent cannabis odor and the perceived safety and security risks associated with cannabis operations. No other public comments were received throughout the application review process. All comment letters are included as Attachment D.  

 

The project site is located within the Yolo-Zamora Citizens Advisory Committee comment area; however, the committee is not active due to lack of membership. A public hearing notice was mailed to property owners within 1,000 feet of the project site and to interested parties on November 1, 2024, and published in the Davis Enterprise on November 3, 2024.   

Staff consulted with Agricultural Commissioner’s Office, Building Division, Public Works Division, Environmental Health Division, various agencies and interested parties, and has received input from the Office of County Counsel.

Any person who is dissatisfied with the decisions of this Planning Commission may appeal to the Board of Supervisors by filing a notice of appeal with the Clerk of the Board within fifteen (15) days from the date of the action. A Planning Commission Appeal Form and appeal fee immediately payable to “County of Yolo” must be submitted at the time of filing. The Board of Supervisors may sustain, modify or overrule this decision. The Planning Commission Appeal Form can be accessed at the following link: https://www.yolocounty.org/government/board-of-supervisors/clerk-of-the-board/planning-commission-appeal