WATSONVILLE — Two cannabis-releated businesses in Watsonville — Creme De Canna and Cultivate Watsonville — are seeking changes in ownership, which will go before the Planning Commission in separate items during its first meeting of the year Tuesday.
In the wake of the Medical Cannabis Regulation and Safety Act, a trio of bills signed into law by then-Gov. Jerry Brown in late 2015, the Watsonville City Council adopted a new ordinance to allow the cultivation of medical cannabis within the city at its Jan. 12, 2016, meeting. Five months later, the council amended city code to limit the number of cannabis cultivation businesses to no more than six.
Following voters’ approval of Proposition 64 in the 2016 general election, which effectively legalized recreational cannabis in California, the council revisited the issue at its April 25, 2017, meeting by moving cannabis regulations from the “Sanitation and Health” chapter of the Municipal Code to the “Zoning” chapter.
During this time, the Planning Commission approved a special use permit to allow the establishment of a medical cannabis cultivation facility at 274 Kearney St. owned and operated by Jason Sweatt under the name Santa Cruz Veterans Alliance doing business as Charlie Mike Inc. In 2017 and 2018, two administrative use permits were approved to allow for medical cannabis manufacturing, distribution and cultivation under the name of Pharmers Manufacturing. The council voted in 2020 to limit cannabis retail facilities to no more than three, after which Pharmers added a retail component known as Cultivate Watsonville.
Creme De Canna Collective’s administrative use permits for manufacturing were approved in 2017 and 2018. Owned and partially operated by Jonathan Kolodinski and Allan Flores and operating at 1324 W. Beach St., the business added a retail component in 2023.
On July 17, The Pajaro Inc. — which operates Creme De Canna’s retail dispensary — submitted a special use permit to request a change in ownership. According to a staff report by Community Development Director Suzi Merriam and Associate Planner Ivan Carmona, if a cannabis business wishes to change the ownership structure of an existing cannabis facility, it must apply for a new use permit, per the Watsonville Municipal Code. However, it would need to relinquish its cannabis equity status and would no longer be able to receive benefits such as compliance workshops, direct technical assistance, fee waivers, fee assistance and assistance securing business locations.
Likewise, CannaCruz Inc. has filed for a change of ownership request for the Cultivate Watsonville dispensary which would give CannaCruz CEO and Chief Financial Officer Brad Palmer and CEO and Chief Operating Officer Grant Palmer 50% ownership each over the Watsonville dispensary.
Staff is recommending the commission approve both permits.
The commission will meet at 6 p.m. Tuesday in the Council Chambers on the top floor of the Watsonville Civic Plaza, 275 Main St., Watsonville.
