The sun sets as construction at 1905 Johnson Road in Centralia is underway Tuesday evening.
Although Centralia Cannabis Connection has been prepared to open up shop for about three years, it has yet to welcome its first customer.
The marijuana retailer has a state license to sell marijuana products, but hasn’t yet obtained authorization from the City of Centralia.
At the end of this year, their retail license from the state is set to expire.
“Where we’re at now is we have a store licensed by (Washington State Liquor and Cannabis Board), in compliance with all the rules and regulations, but we don’t have compliance with the city,” said Dick Watkins, who owns the business with his wife, Elaine Watkins. “We can’t get a business license (from the city) — so we can’t open.”
The Washington State Liquor and Cannabis Board is responsible for licensing marijuana producers, processors and retailers, but state law allows cities to determine where those businesses can set up shop. Centralia’s zoning ordinance only allows marijuana businesses in the M2 zoning district, which is the heavy industry zone.
Cannabis Connections’ location is in the C1 zoning district at 1039 S. Gold St. The address isn’t in historic downtown, but closer to Franz Bakery Outlet and Burkett’s Auto Sales. The address fits the state’s requirements, but not the city’s.
Since 2014, the Centralia Municipal Code has restricted retailers, producers and processors to the M2 heavy industry zone. The Watkinses said there were no buildings available for purchase or rent when they were working to obtain the proper licensing from the Washington State Liquor and Cannabis Board.
“The reason we are where we are is there is nothing in M2 — and they knew that,” Elaine Watkins said.
At this point, the Watkinses say they have invested years and more than $100,000 into bringing this store to Centralia.
“They’re between a rock and a hard place,” said Jerry Antonelli, a friend who has helped the Watkinses through the process. “One portion of the government is saying, ‘oh it’s fine’ and then of course you have the city who is saying it’s not. … They have paid over $70,000 in rent — just rent alone on that building. For over three years, that building has been ready to open.”
City of Centralia Attorney Shannon Murphy-Olson expressed frustration in dealing with the Washington State Liquor and Cannabis Board.
“This is something that is really frustrating,” Murphy-Olson said. “... The court said ‘cities you’re autonomous to zone this or not allow it at all.’ So the (Washington State Liquor and Cannabis Board) says ‘we have three potential licenses in the city of Centralia — we don’t care where you put it, we don’t care what the city code is, but we are going to push the enforcement down to city level.’”
In July, Murphy-Olson sent a letter to the Washington State Liquor and Cannabis Board License Division concerning Centralia Cannabis Connection’s renewal with the state at the end of this year.
“The above applicant has applied for a license renewal from Liquor Control for the retail sales of recreational marijuana,” Murphy-Olson wrote. “The address applied for is not within the appropriate zoning for recreational marijuana businesses. … The City has no objection when the above applicants are able to secure a location within the proper zoning designation conditioned on the compliance with all State and local laws, ordinances and regulations regarding recreational marijuana businesses.”
On Aug. 17, the Washington State Liquor and Cannabis Board wrote back, and said it had no grounds not to renew Centralia Cannabis Connection’s license.
“While it is the Board’s intention to fully support local authorities in their enforcement efforts, the Board’s support to local jurisdictions is limited by the elements contained in WAC 314-55-050 and RCW 69.50.331(10),” the letter from the Washington State Liquor and Cannabis Board reads. “Because your objection does not relate to chronic illegal activity, concerning the operations of the premises by the license, RCW 69.50.331(10) or an element contained in WAC 314-55-050, the Board has no grounds to seek non-renewal. As such, your request for marijuana license non-renewal is denied.”
Murphy-Olson noted the zoning laws were in place when the Watkinses obtained licensing from the state at the Gold Street address, and that Centralia City Council has voted against allowing marijuana retailers outside of the heavy industry zone.
“(Washington State Liquor and Cannabis Board License Division) doesn’t do their due diligence,” Murphy Olson said. “…. They have shoved all of the enforcement down to the municipal level and we become the bad guy. … (the Centralia Cannabis Connection owners) are stuck in this catch-22 and they’re coming to the closest party, which is the city, trying to get the law changed and it’s not been successful.”
The state received so many applications for licenses to become a marijuana-related business after it became legal that it used a lottery to pick businesses that would be evaluated. While searching for property in Centralia that fit both the state and the city’s requirements, the Watkinses received notice that they had 30 days to find property or risk losing their place in the lottery. This is when Centralia Cannabis Connection found the Gold Street address, which fit the state’s requirements but not the city’s.
The Watkinses have worked with both Antonelli and Ron Greenwood, a former Centralia City Council member, to petition the city to change its marijuana-zoning ordinance that prohibits Centralia Cannabis Connection from opening at the South Gold Street address in the C1 zone.
In May, Centralia City Council rejected text amendments to the current ordinance that would allow the shop to open on Gold Street.
“There are many aspects we are working on, it’s just trying to show the council that the public’s opinion has changed,” Greenwood said. “If a person doesn’t want to listen, they’re not going to listen.”
The Watkinses said they plan to propose a change to the city’s marijuana zoning ordinance that would allow retailers in both the M2 heavy industry zone and the C1 general commercial district. Producers and processors would still only be allowed in the M2 heavy industry zone.
Emil Pierson, who is the community development director for the City of Centralia, said there is developable land in the M2 heavy industry zone.
“I believe there is hundreds of acres available for the M2 (heavy industry zone) that could have that type of use,” Pierson said. “... We can’t have utilities pulled to every location in the city. Sometimes, a development has to be able to pull utilities there to be able to develop.”
The Watkinses plan to again bring proposed amendments before the Planning Commission and then Centralia City Council. Pierson said it could be months before those amendments make it before the city council, though.
“If they have recently submitted them, we usually only review those once per year,” Pierson said. “So it could take months. It just all depends on what their wording is. … To be honest, the council just finished the last ones they requested.”
In the meantime, the Watkinses said they are prepared to keep battling with the city council.
“Some will never change their mind probably — they’re fossilized,” Elaine Watkins said. “But some of the others have political reasons. They might privately agree with us, but for political reasons they aren’t going to vote. Others say they haven’t heard anything from constituents.”
