Three cannabis shops are coming to Fresno. Here’s where, and why lawsuits are likely

Three cannabis retailers were awarded tentative licenses by the city of Fresno on Friday — one in downtown near Chuckchansi Park, one in a strip mall on Shaw Avenue, and another just off Highway 99 near Herndon Avenue.

The businesses — Viola Fresno, Fresno Canna Co. Dispensary, and Traditional - Fresno - ME — were selected through the city’s social equity process.

Under the social equity process, up to six of the city’s 21 cannabis licenses are set aside for businesses whose owners have previous cannabis convictions. Those business owners can also be former foster youth, veterans, or people from low-income communities.

The remaining standard cannabis licenses will be awarded by the end of August. The city manager could consider approving additional social equity retail businesses, according to the city’s office of Cannabis Oversight.

Viola is a player in the cannabis market — the first Black-owned multinational cannabis brand, according to a Forbes story. It was founded by ex-NBA player Al Harrington and has a strong focus on social equity. Viola will operate at 755 Van Ness Ave. (at Inyo Avenue) in downtown Fresno, near the Brewery District.

The company also earned one of the city’s cultivation licenses.

Fresno Canna Co. Dispensary, the top ranked social equity applicant, will operate at 3257 W. Shaw Ave. in a shopping center near Valentine Avenue.

The family and minority-owned business bills itself as “an all-star team of social activists, first-generation college graduates and entrepreneurs that includes two Hoover High School graduates,” according to a statement sent to The Bee.

“Other members of the ownership team have served as local advocates for the decriminalization of cannabis in Fresno, worked for a research think tank aimed at decreasing racial bias in law enforcement and have cannabis operating experience,” co-owner Angie Benton said.

Traditional - Fresno - ME will operate at 6926 Weber Ave., just off Highway 99 near the Marketplace at El Paseo. The permit application has two owners listed for the company — Maritza Estrada and Aaron Mamann, both from Los Angeles.

Lawsuits likely

Already, the city’s choices are coming under fire.

Several other applicants have expressed displeasure in how the social equity licenses were awarded. Cesar Casamayor’s People’s Dispensary ranked 10th among the social equity applicants. He told GV Wire the process was unfair and that it didn’t take the dispensary’s local status into consideration.

At least two other applicants are threatening legal action.

George Boyadjian, a longtime cannabis advocate who runs the business training site 420 College, has been expressing his concerns over the city’s handling of the process for the last two years (but also more recently). He says he will be filing a damage claim against the city after his business, Fresno Compassion Association, didn’t make the final round of applicants. He was disqualified for writing a letter to Councilmember Esmeralda Soria criticizing the process, he said.

He plans to bring the issue up at the next City Council meeting.

Soria, on Monday, said she never had any correspondence with Boyadjian.

Boyadjian did send a letter to Councilmember Garry Bredefeld in May. That correspondence was flagged as improper and reported to the Office of Cannabis Oversight and the application was disqualified.

Mark Mabutas is also considering a lawsuit against the city. His company Pure Fresno ranked fifth among the social equity applicants. He claims one of the companies that was awarded a license broke the no-contact rule and spoke directly with a City Council member while the process was taking place.

“This process was rigged from the very beginning,” he said.

This story was originally published August 3, 2021 at 3:04 PM.