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Sacramento sues couple, alleging they sell and grow pot without permits at four locations

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A couple is being accused by the city of Sacramento for growing and selling pot without city permits.

The city filed the lawsuit last week in Sacramento Superior Court against Shane and Chelsea Howe of Sacramento, as well as an LLC and nonprofit they own. The couple did not immediately respond to an email seeking comment.

The lawsuit alleges the couple is growing and selling pot from four North Sacramento buildings. They include two single-family homes in South Natomas — 2170 and 2155 Lejano Way. They also include industrial buildings just north of Del Paso Heights, at 2081 Rene Ave., and in Old North Sacramento, at 2160 Acoma St.

The city granted the Howes a permit for cannabis delivery, cultivation and distribution through their nonprofit, Sacramento Confidential Delivery Inc., but only out of the Rene Avenue location, according to a city permit attached to the lawsuit. But since at least May 2019, the couple has been growing and selling large amounts of cannabis at all four locations, the lawsuit alleges.

“While the city supports the legal cultivation and sale of cannabis, it does not support illegal cannabis cultivation at unpermitted locations, power theft, and proceeds from the illegal activity being commingled with legal cannabis operations,” City Attorney Susana Alcala Wood said in a statement. “In this case, Sacramento Confidential Delivery has taken advantage of its cannabis permit to unfairly compete with other legal cannabis operators by engaging in illegal activity under the cover of its cannabis permit.”

Alcala Wood said that one house alone had more than 2,000 cannabis plants. She went on to say that the city is asking a judge to judge to shut down operations and reimburse the city for enforcement costs.

The city allows people to grow cannabis at some private residences, but only up to six plants.

The lawsuit claims violation of the Controlled Substances Abatement Act, public nuisance and operating a cannabis business without a license.

City code inspectors in January found unapproved wiring was supplying multiple cannabis grow rooms, as well a a growing area in the backyard, the lawsuit alleges. The city issued code violations for unsafe electrical wiring, unapproved HVAC wiring and missing smoke and carbon monoxide detectors.

The city on Jan. 5 posted a “dangerous building” notice on the front door and issued a “notice of intent to repair or demolish” for 2170 Lejano Way and 2160 Acoma Way. The city also issued paperwork threatening to ask a judge to place the houses into receivership — an obscure legal process in which property owners lose control of their properties. As of Thursday, the city had not submitted a receivership petition for the buildings.

The case is scheduled for a court date in 2024.

This story was originally published April 14, 2023 at 5:00 AM.

Theresa Clift
The Sacramento Bee
Theresa Clift is the Regional Watchdog Reporter for The Sacramento Bee. She covered Sacramento City Hall for The Bee from 2018 through 2024. Before joining The Bee, she worked for newspapers in Pennsylvania, Virginia and Wisconsin. She grew up in Michigan and graduated with a journalism degree from Central Michigan University.
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