Pasadena Cannabis Dispensary A Step Closer As Planning Commission OKs Use Permit

A proposed cannabis dispensary moved one step closer Wednesday to eventually opening its doors in Pasadena.

The city’s Planning Commission granted a Conditional Use Permit, or CUP, to Varda, Inc., a locally owned company that intends to open the dispensary at a now-vacant commercial building on the north side of Colorado Boulevard between North Kinneloa and Sierra Madre avenues, on the east side of town.

The Planning Commission’s 7-2 approval does not necessarily mean the dispensary will be up and running any time soon – only that Varda now has cleared the second of five hurdles.

The company must now get the OK from the city’s Public Health Department (for a health permit) and Finance Department (for a business license), then get a cannabis permit from the city manager and, finally, a license from the state.

Varda had cleared the first hurdle last June when it was among the six companies chosen from a pool of 122 aspirants allowed to even apply to the city for a CUP allowing the retail sale of cannabis.

With Wednesday’s Planning Commission vote, Varda – which would operate at 3341 E. Colorado Blvd., — became the third potential cannabis dispenser to receive a city CUP.

The others to get the OK so far are Harvest of Pasadena and Integral Associates Dena. The CUP process for a fourth company, MME Pasadena Retail, is still in progress, though it could be in some jeopardy.

In June 2018, city voters passed Measure CC, allowing as many as six cannabis retailers in the city, though not guaranteeing that many – hence the six companies that last June were allowed to apply for CUPs.

But since last June, two companies did not advance in the process, and MME has experienced some upheaval that could jeopardize its application. At least seven people have left the company that were on the company’s application, according to reports.

It’s not clear — if MME’s application is ultimately scuttled — whether the city would allow one of the other contenders for a cannabis-related CUP to refile.

So Varda, Harvest and Integral could conceivably be the only three dispensaries eventually operating in Pasadena, assuming they all clear the remaining hurdles.

Varda’s now-approved CUP application calls for a 5,680-square-foot retail cannabis dispensary within an 11,753-square-foot building, all of which is being leased by the company, according to its proprietor, Tony Fong.

The floor plan identifies a sales-floor area that will encompass 2,624 square feet, in addition to a 467-square-foot lobby or waiting foyer, a 113-square-foot consultation area and 198 square feet with kiosks for digital sales. The store would operate from 7 a.m. to 10 p.m., Monday through Sunday.

Among the conditions that Varda had to meet for its Conditional Use Permit were that it not operate within 600 feet of so-called “sensitive” locations such as K-12 schools, youth- and day-care centers, churches, libraries, substance-abuse centers, parks or residentially zoned parcels. Varda’s application checked all those boxes.

Another is that it not operate within 1,000 feet of another cannabis retailer or cultivator – which actually prompted some discussion Wednesday, as Planning Commissioner Michael Coppess said there was another dispensary across, and further down, Colorado Boulevard.

But Assistant City Attorney Theresa Fuentes said that other store actually falls in an unincorporated section of L.A. County, not within the city limits, and that, “The city can’t enforce our regulations outside of our city boundaries.’’ Thus, she said, Varda meets that requirement as well.

The proximity matter was an issue for Coppess, who said, “The fact remains that the city ordinance has a concentration requirement to it, and there’s a reason behind it, and that reason exists irrespective of jurisdiction, I would think.’’

Coppess, along with Commissioner Donald C. Nanney, were the two “no” votes for the CUP proposal.

One other worry expressed by some commissioners was that Fong not sub-lease the unused space in the building to a “sensitive” business – a clause that was ultimately added to the CUP when Fong said, “Yes, I agree to that.” Fong also said he has no intention of sub-leasing at all.

Paul Little, president and CEO of the Pasadena Chamber of Commerce, said the chamber is “fully in support of” Varda’s CUP application.

“Varda, Inc., is locally owned,’’ Little wrote to the commission, in public comments that were read aloud on Wednesday.

“The proposed operator, Tony Fong, is familiar to me, and will be a conscientious operator and an asset to our business community.’’

Little went on to say: “Varda, Inc., proposes to open in East Pasadena, the only proposal so far that is not in downtown Pasadena. … It will bring economic vitality and consumers to an area of Colorado Boulevard that will welcome the increase in customer traffic.’’

And, Little added, “The store will be attractive, well-run and secure and not negatively impact the neighboring businesses. In fact, it will be a significant asset to the area.’’

— Additional reporting by Donovan McCray