Commission Approves C4 Cannabis Expansion Despite Odor, Design Complaints

Cathedral City's Planning Commission cleared the way Oct. 7 for a second building at the C4 cannabis campus on Ramon Road, even as neighbors said the smell hasn't gone away and commissioners called the new design a "metal box." The 5-0 vote came after legal advice made clear that denial would not stop Building 2, only the changes to it. In the evening's other action, commissioners gave the stalled 96-home Desert Bloom project another year.

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• C4's Building 2 approved 5-0 as a sealed metal structure, slightly shorter and smaller
• Parking requirement cut from 398 to 315 spaces, formalizing what was already built
• Outdoor Resorts neighbors say odor persists. C4 reports a 99% drop in complaints.
• Eight speakers backed the expansion, citing 271 jobs and a projected $4.56M in cannabis tax
• Desert Bloom's 96-home entitlements extended to Oct. 18, 2027 despite no work on site

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Building 2 Gets a Metal Makeover, Few Fans

The basics: CC Industry, LLC (C4) sought Conditional Use Permit 26-0003 to revise its 2017 approvals at 69375 Ramon Road. Building 2 was entitled as a smart-glass greenhouse like Building 1.

Where things stand: The redesign swaps glass walls and roof for Kingspan insulated metal panels. It cuts height about 1 foot 6 inches and trims floor area by 300 square feet, to roughly 163,200 square feet. Inside Building 1, 1,727 square feet of dispensary space becomes offices.

C4 expert David Bernard said glass leaks air at 0.06 CFM versus 0.01 for the metal panel. He also said the panel insulates at R-32, compared with R-1 or R-2 for glass. "Here's the change. It's sealed, it's smaller, and it's smarter," said Lisa Slaughter, land use counsel for C4.

The other side: Commissioners did not like the look, especially since the building faces Outdoor Resorts across a block wall. "This looks like a metal warehouse box just dumped in the backyard," said Commissioner Danny Lee. Commissioner John Rivera pointed to more varied options in the Kingspan catalog: "Just to put up a metal box, it's just not acceptable, in my opinion."

Asked to improve the design, C4 declined. "Adding more articulation to it is gonna be very expensive and potentially impact the construction and the odor control," said Slaughter. Staff noted the Architectural Review Committee approved the design without changes.

Why the vote went the way it did: Denial would mean "no approval of the as-built parking change, the 2 floor plans, or the change in elevations," said the city attorney. The attorney added that an appeal to City Council was likely. The bigger point was that Building 2 remains "entitled as the glass structure as far as Building 2 goes." Staff said active permits have kept the 2017 entitlement alive. Chair Danielle Mead confirmed that denial could not stop construction of the original design. Lee said that made a rejection unlikely to survive at Council.

Decisions and stakeholder impacts: The Commission adopted a CEQA finding, based on an Environmental Science Associates consistency letter, that no further environmental review is required. It then approved the permit. "It's not going to be pretty, but I can't find a reason to reject that," said Lee, who said his concern was design standards under the city's new development code. The vote was For: 5 (Rivera, Commissioner Colby Gregory, Lee, Vice Chair Roy MacPhail, Mead); Against: 0; Absent: 0. Mead made the motion and Gregory seconded.

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Neighbors Say the Smell Lingers

Why it matters: Odor dominated public testimony. The Commission concluded the issue belongs to city enforcement, not this permit.

Where things stand: C4 described an odor control plan (Revision 3.0) designed by a licensed engineer and approved by third-party reviewer SES Engineers. The plan includes a four-stage treatment system, a 70-unit sulfur sorb array, more than 70 carbon scrubbers and fence-line monitoring. C4 also cited a pilot program with the city costing more than $100,000 and a $40,000 pressure-monitoring commitment. "We've had a 99% reduction in odor complaints from January until September," said Bernard. Staff said C4 complied with all city requirements. City complaint records are kept by Code Enforcement and were not available at the meeting.

The other side: Outdoor Resorts resident Janet Ream said the odor disrupts outdoor dining and sleeping with windows open. She asked for conditions requiring it to end permanently: "I'm asking for some fair treatment." Jeff May, Outdoor Resorts owner, asked the Commission to delay until January, when seasonal residents return: "Until it's completely 100% litigated, there should not be an approval for building number 2." He also reported that a glass window blew out of the facility and asked that the cause be found. A written comment from Randy and Nancy Passy opposed the project.

Decisions and stakeholder impacts: Commissioners said approving Building 2 could not fix an existing problem. Gregory, who lives in the district, said: "I, from time to time, do smell, and I personally have noticed a reduction." Mead said, "I find it hard to come up with a reason to deny this other than odor," noting that C4 had met city standards.

Rivera was the sharpest voice. "If I could take that vote back, I would," he said of his original support. He urged far more city due diligence on monitoring: "The city actually has a hand in this and has to own up to part of it." Lee noted that the Commission had once recommended a 20,000-square-foot limit, which Council rejected. No odor-specific conditions were added.

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Parking Cut Ratifies What Was Built

The basics: City code had no parking standard for cannabis cultivation, so the 2017 approval set a project-specific requirement of 398 spaces. A 2019 precise grading plan removed spaces for mechanical equipment and, later, a dog park. That left 315 striped spaces.

Where things stand: Staff cited peak demand near 290 vehicles. They projected about 356 employees at full build-out, working staggered 24-hour shifts. An Urban Crossroads study using the ITE parking manual estimated demand at 200 to 250 spaces. Vice Chair MacPhail asked whether the 2019 change should have come back to the Commission. Director Corella said he had a traffic engineer verify his calculations at the time. "I always knew we were overparked," he said.

Decisions and stakeholder impacts: Lee called the change "kind of a fait accompli." "I don't take issue with the parking reduction," said Rivera. The approved motion requires at least 315 spaces.

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C4 Workers Turn Out for Phase 2

Why it matters: C4 framed Building 2 as a jobs and revenue engine. Cannabis tax flows directly into the city's general fund.

Where things stand: Slaughter said Building 1 generates $3.12M in cannabis tax. She said Building 2 would raise the total to about $4.56M. Karen Lessman, HR Director at C4, cited 271 full-time employees, 170 of them in Cathedral City. She reported a $14.3M payroll, a $52,750 average salary and 850 combined regional jobs at full operation. "Phase 2 is a career ladder for our current team," she said.

Employees April Dominguez, Zachary Nelson and Mario Gutierrez spoke in favor, citing family stability and training partnerships. Desert Hot Springs resident Dirk Voss pointed to industry consolidation: "To have a cannabis company that actually wants to expand is pretty rare today." Shelly Kaplan, chair of the Cathedral City Senior Center Board, also backed the project. "I was on City Council when we approved both phases of this project," she said. She disclosed that C4 supports the senior center and food bank.

The other side: Mead noted that projected tax revenues had been higher before market changes.

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Desert Bloom Gets One More Year

The basics: Desert Bloom (PUD 22-001, Tentative Tract Map 38269) was approved April 19, 2023. It covers 96 single-family lots on 13.5 acres near Landau Boulevard and 30th Avenue. A state law, AB 2729, previously extended it to Oct. 18, 2026.

Where things stand: Staff said grading and street plans are approved, but the applicant has been slowed by economics. Up to three one-year extensions are allowed. Gregory asked "what assurance could the applicant give this commission that this additional year will result in meaningful progress towards actually delivering these 96 homes." Director Corella replied that "the Planning Commission doesn't have a lot of latitude to actually deny this because the Subdivision Map Act allows that."

The other side: Lee recused himself because he lives within 500 feet of the site. Speaking as a Landau Homes resident, he said: "It is still just an empty field. It hasn't been graded and no work has been done." He asked that affordable-housing obligations stay binding or that a new application be required. The director said about seven affordable units are covenanted. "All the entitlement conditions of approval will be followed," he said.

Decisions and stakeholder impacts: "If they need the extension, I would love to see it move forward," said Rivera. MacPhail moved approval and Gregory seconded. The chair declared the motion carried with all ayes (Recused: Lee).

What's next: Entitlements now expire Oct. 18, 2027.

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Minor Items

• Development code update heads to City Council for first reading Wednesday, Oct. 14.
• No items are scheduled for the Commission's Oct. 21 meeting.
• City attorney reported visiting Cathedral City's booth at the League of California Cities conference.

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Looking ahead: The new development code that commissioners invoked during the C4 design debate is now in Council's hands. Its design standards will apply to future projects, not to entitlements like Building 2.