San Francisco Chronicle

City’s permit denial leads to court action by dispensary

- By Rachel Swan

The owners of a cannabis dispensary that was denied permission to open in San Francisco’s Sunset District took the city to court Thursday, three months after the Board of Supervisor­s voted down the store’s permit applicatio­n.

In a filing Thursday in San Francisco Superior Court, lawyers for PNB Noriega LLC — better known as the Apothecari­um — claimed the board had overturned “legally correct land use decisions to favor politicall­y connected groups,” when it went against the City Planning Commission’s vote to approve the dispensary at 2505 Noriega Street. The proposed dispensary is owned by former Oakland Mayor Jean Quan and her husband, Floyd Huen.

Ultimately, they seek to force the supervisor­s to reverse their decision and allow the Apothecari­um to open.

The supervisor­s squelched the club’s permit after a tumultuous hearing on Oct. 3, at which dozens of older Chinese residents joined Sacramento’s right-wing Pacific Justice Institute to appeal the Planning Commission’s decision and block the dispensary from opening. Opponents of the dispensary compared marijuana use to the opioid epidemic and said the Apothecari­um would lure children from the quiet west side neighborho­od into a life of addiction.

Although several supervisor­s dismissed those claims and then chastened the Pacific Justice Institute for meddling in San Francisco politics, in the end, they sided with the group. Supervisor­s Malia Cohen and Jeff Sheehy were the only dissenting votes.

A month later, the supervisor­s voted the other way when faced with a separate appeal for a similar dispensary in the same district. It drew opposition from the same group of anti-cannabis protesters, who repeated the arguments they had used to kill the Apothecari­um proposal. They said the pot club would bring in transients and send pungent smells wafting into nearby businesses, including an urgent care facility expected to open next door.

The supervisor­s rejected those arguments and called Barbary Coast Collective a shining example of how a dispensary could blend in with a community — going against the findings they’d made to quash the Apothecari­um, the court filing said.

Barbary Coast was approved by a 10-1 vote and became the first pot club given permission to open in the Sunset, where it has no competitio­n. Supervisor Katy Tang, who represents the Sunset, was the lone “no” vote.

The club is co-owned by David Ho, a rising Chinatown power broker allied with several supervisor­s.

Ho worked as a consultant for an independen­t expenditur­e committee that backed Supervisor Ahsha Safai’s race in 2016. He also ran an independen­t expenditur­e campaign, on behalf of the hotel workers union, to support Jane Kim’s unsuccessf­ul 2016 bid for state Senate.

The Apothecari­um’s filing cited news reports stating that roughly half of at least $153,000 donated to supervisor­s by owners, employees, lobbyists and firms connected to the cannabis industry came from Barbary Coast. It did not specify a time frame or provide any evidence of those donations.

An independen­t review by The Chronicle showed that the 11 supervisor­s took more than $27,000 from owners and employees of Barbary Coast between January 2012 and this year, with the biggest share going to Supervisor Mark Farrell — who took $10,000 for his Democratic County Central Committee campaign chest — and acting Mayor London Breed, who received $8,000.

By contrast, the supervisor­s drew $3,750 from the Apothecari­um’s executive director Ryan Hudson, lobbyist Michael Colbruno and land use attorney Brett Gladstone during the same time period.

“This is a classic example of the Board of Supervisor­s talking out of both sides of its mouth,” said Eliot Dobris, a spokesman for the Apothecari­um. “Why are the decisions different? The answer is follow the money.”

Ho disagreed, saying Thursday that the Apothecari­um owners were “bitter” because they had failed to endear themselves to Sunset residents.

He laughed over his own appearance in the court papers.

“They’re helping me with publicity,” he said.

 ?? Scott Strazzante / The Chronicle ?? David Ho’s Sunset District cannabis dispensary was approved, but a competitor that wasn’t has gone to court.
Scott Strazzante / The Chronicle David Ho’s Sunset District cannabis dispensary was approved, but a competitor that wasn’t has gone to court.

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