29, 2020, Dietrick "acknowledged" the transfer, giving Garcia Dayspring's 88 percent of Natural Healing Center. "If you read our ordinance, that's all our ordinance required," Dietrick said. Because of that, Garcia was already vetted by the city during its review of the company's original application (one of eight that the city received in 2018-19 for its three open dispensary permits).įor that kind of internal transfer, the city determined that no further review was necessary. In Dayspring's case, he passed off all 88 percent of his share of the dispensary to Garcia, who already had a 3 percent stake in the company. Those parameters include a requirement to notify the city about the transfer, and then potentially submit to fees, background checks, and other requirements for approval if the proposed new owner isn't an already-permitted cannabis operator in the city. It outlines "general parameters" for cannabis business owners seeking ownership changes, Dietrick said. SLO's cannabis ordinance has a short section outlining rules for the sale or transfer of a permit. "The first one wasn't that complicated," Dietrick said. Dayspring's was the first-and the only one to get approved thus far, according to records. Since SLO city adopted its cannabis regulations in 2018, it's received four requests for cannabis business ownership transfers. To understand how Dayspring extricated himself from the company he founded, and how the company continues to have a shot at opening a coveted dispensary in SLO city, New Times reviewed city documents and talked to officials. Dayspring is currently not affiliated with the Natural Healing Center-Grover Beach business, as he is neither an employee nor owner of the company," Grover Beach City Manager Matt Bronson also said. To our knowledge, he has no current interest in any permitted cannabis businesses in SLO," SLO City Manager Derek Johnson told media outlets. "We are currently carefully reviewing Natural Healing Center's permit applications, documents, and statements that involved him.
When the public turned to city officials for answers as to why Dayspring's dispensaries could continue to operate and occupy three of the limited number of cannabis storefront permits available in local cities, all three city managers cited the fact that Dayspring was no longer involved in those businesses. "We take our cues from investigatory agencies with the authority to enforce."ĭayspring's exits from his three SLO County cannabis dispensaries in SLO, Grover Beach, and Morro Bay occurred between September 2020 and July 2021, all prior to the FBI and Department of Justice unveiling his plea deal that levies a maximum prison sentence of 13 years. "Allegations in a private civil action typically wouldn't be something we're even following," Dietrick told New Times. When presented with Dayspring's ownership transfer notice last year, the city simply had an ordinance to follow.
22, or risk losing its permit, according to city officials.Īt the time, the FBI was investigating Dayspring for bribing local government officials and underreporting millions of dollars in personal income-alleged crimes that Dayspring would later surrender to in July 2021.ĭayspring had acknowledged that investigation in court records available last fall, in the context of a lawsuit from his top investor, a former federal official, who called the Morro Bay cannabis magnate who'd ascended to the top of the SLO County industry an "unscrupulous con man."īut, according to SLO City Attorney Christine Dietrick, those were just allegations back in September 2020.
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