J. Arthur Properties, II, LLC v. City of San Jose

SV Care has operated a medical marijuana collective in a San Jose commercial zoning district since 2010. The municipal code did not then list marijuana-specific uses in its table of permitted uses. That table stated that all uses not listed were not permitted, but listed “medical offices” as permitted. After the collective opened, voters passed a local measure adding a marijuana business tax, which is described as “solely for the purpose of obtaining revenue.” The tax certificate specifies that it does not indicate zoning compliance. In 2014, the city determined that a medical marijuana collective was not an authorized use and ordered the collective to close. SV appealed the denial of its petition for writ of administrative mandate, arguing that the collective was a legal nonconforming use and that the city should be equitably estopped from forcing it to close. The court of appeal affirmed. Giving due deference to the city’s interpretation of its code, the medical office category does not include medical marijuana collectives. Because plaintiffs’ collective was not permitted when it opened, it cannot be a legal nonconforming use. In light of the express disclaimers, reliance on paying required business taxes as authorization to operate a medical marijuana collective is unreasonable as a matter of law. View "J. Arthur Properties, II, LLC v. City of San Jose" on Justia Law