Seattle in Progress

2214 1ST AVE

March 7, 2021: Proposed Project. Arky Vandelay LLC (the "Applicant") has leased space located at 2214 1st Avenue, Seattle, WA 98121 (the "Premises") to operate a retail marijuana store. The location complies with all city and state regulations governing the location of marijuana retail stores. The lease is for a five-year term with rent at over $18,000 per month.

The Applicant applied for and received approval from the Washington State Liquor and Cannabis Board (the "LCB") to move its marijuana retail license (License No. 414450, hereinafter the "License") from 417 NW 65th St. ("Prior Location") to the Premises. Per the LCB's requirements, as of October 22, 2020, Applicant closed operations at the Prior Location. The License is now tied to the Premises, and Applicant has been paying rent for six months without any revenue to cover those losses.

The Ordinance From Which A Variance Is Requested. While fully licensed by the LCB, the Applicant is unable to operate its licensed marijuana retail at the Premises in Belltown because it is unable to secure its City of Seattle (the "City") marijuana retail license. The problem is the City's strict application of SMC 23.42.058.C.5, despite the fact that the City's strict application of SMC 23.42.058.C.5 contradicts the plain meaning and reasonable application of SMC 23.42.058.C.6. This contradiction is more fully explained below.

Three months after the LCB approved of the Applicant's License at the Premises, Washington OG, LLC ("Washington OG") obtained approval to move its marijuana retail license (License #431327) to 2114 Western Avenue, Suite B. While the location satisfies the requirements of WAC 314-55-050(10), the location is basically a windowless closet tucked away in the second story of a building. As such, Washington OG is not likely to ever receive a certificate of occupancy from the City or otherwise be allowed to operate a retail store at 2114 Western Avenue, Suite B. With no means to legally sell cannabis products there, the location cannot be considered a property with existing major marijuana activity (explained below).

Even though the Applicant was approved first by the LCB, and is ready, able, and willing to operate at the Premises, the Applicant cannot open for business without obtaining a variance to SMC 23.42.058.C.5. That is because the City is treating Washington OG's premises, which was licensed three months after Applicant's Premises, as a second property in Belltown with major marijuana activity, thereby blocking Applicant from opening. Applicant seeks a variance to avoid this unjust and unintended result.

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