City Manager Michael Tree described how the city has been trying to get big name restaurants and developers to establish business in Twentynine Palms. He finished his staff report by saying that the city has good news for the future, but challenges lie ahead.

“I want to be ready when the economy picks up steam,” he said.

So far, the city has a lot of redevelopment projects on the table, but with the lack of staffing, they are paying a premium for consultants to make them happen. By hiring a specialist, the city would have a representative sell the community to prospective retailers.

However, one resident and business owner, Jay Corbin, questioned the council about where the funds would come from to hire this person. “We live in a world of debt. One opportunity that we have is that we live in a city that does not deficit spend. Why do we want to spend what we do not take in?” he asked. Corbin also expressed that the city had let go of their Chamber of Commerce contract to save $60,000 and that the other half would result in spending above their means. “Increases like this are not sustainable.”

Dee Richhart, who sits on a task force committee for development, suggested that position would be a wise idea. “You really need an advocate in town who understands this process. There are business people in town who really want to help you. You’ve got to provide them with some on-the-ground help,” she added.

Fellow residents agreed that more retail should come to Twentynine Palms, as many have to leave town to go to nearby Yucca Valley or the Coachella Valley for shopping. Elaine Kohl, a six year resident, said, “This town desperately needs to grow. I think this is the best thing that could happen to 29 Palms. You have to grow or you’re going to die. We should be doing shopping here in this town”

Councilman Steve Spear suggested that the idea was not right at this time to hire this specialist, which would cost the city $120,000 annually. “This city has spent thousands for study. All for nothing because in my humble opinion, this city doesn’t know what it wants to be. I propose that this is a premature move to spend $120,000 for a position that is not measurable in performance,” he stated. Also, Spear said that some retailers want cities with a population of 50,000 or over in order to consider opening up shop. Twentynine Palms has a population of 30,000, including members of the Marine Base.

Fellow councilman Joel Klink said that the city did not pay a penny for economic studies. “We need to listen to the people and put them in the position,” he said. Meanwhile, Councilman John Cole said, “I think it’s worth an effort to do this. What the final cost will be remains to be seen. It’s not a forever and ever position. I’d like to see us give it a try. We need to do something.”

Mayor Steve Flock added, “For 22 years, we’ve waited for developers to knock on our door. We’ve had study after study, consultants tell us where to go. We haven’t actually been aggressive in going after these businesses.” And with that, the city decided to delay their decision until a later time.

An applicant from the West Hollywood area had inquired about opening up a dispensary in Twentynine Palms last year, but was originally denied, with his fees and application returned to him, due to the fact that the city had no ordinance permitting nor denying the right to have such operations taking place. This applicant appealed after trying to get a Conditional Use Permit.

“This project and this use should be prohibited within the development code. I recommend that you amend the code to specifically identify medical marijuana as a prohibited use,” said Charles LaClaire, Community Development Director, to the council.

City Attorney Patrick Munoz explained that in Los Angeles and in Orange County, they have been working with their District Attorney’s office to determine whether medical marijuana dispensaries are operating lawfully. He explained, “What we’re seeing in the law enforcement world is that people are just selling pot out of storefronts. Their primary customers are 18-19 year olds who buy a pound a day. They need to get a prescription. You will find a parade of kids who want to grab what they need. That’s a common theme we’re seeing- them spreading it around. It’s a retail use and not permitted by the medical marijuana act. Storefronts are just popping up all over the place.”

Munoz also explained that although such dispensaries are supposed to be non-profit, as regulated by Proposition 215 (Passed in 1996), they are not. The Orange County DA’s office says that these businesses rake in about $13 million per year. “The Mexican drug cartels are supplying the marijuana from those storefront. It’s a retail outlet for an illegal drug,” he said.

During public comments, a number of people appeared, mostly in opposition to the dispensaries. Frank Ferindini, a local minister, was the first to speak. “Millions of young people have been addicted starting with Marijuana. It’s not easy to get off of it,” he said. “It’s not good for anyone. I have not studied the medical properties of marijuana but I don’t know how it helps. It can be proven that it isn’t good. Something that isn’t good should not be brought to people who love their children.”

Sherry Hall, a property owner from Santa Cruz, California, spoke in support of medical marijuana. She explained, “We’re talking about drugs to help someone. I believe a lot of them are political. Medical Marijuana is not physically addictive. A lot of drugs that substitute medical marijuana has long term affects for kidneys. My mother had breast cancer long before medical marijuana was allowed. The people of California voted to approve this.”

Nick Panzarella, a resident, stated, “I don’t think this is a good thing to have. They can travel to somewhere to get it. We have to travel to Balboa Hospital to get services. I don’t think this town is ready to bring it in. It’s unregulated.”

After a long period of discussion, the City Council made their decision, with Councilman Steve Spear dissenting.

According to Community Development Director Charles LaClaire, past city councils have talked and debated the issue. In the past, the issue was terminated, but was recently re-raised in light of many rentals appearing on internet advertising.

Sherry Hall, a resident of Santa Cruz, has a family business that deals with vacation rentals in Twentynine Palms. She insists that they are not in competition with hotels. “We’re not competing with the hotels. We’re promoting vacation rentals,” she explains. Hall later read from letters that her renters have sent her, explaining how renting a home rather than a hotel room gives them more freedom, especially during the holidays. Also, one reason why vacation homes are not legally regulated is because Transient Occupancy Taxes have not been collected from them. Hall explained that she is willing to pay them.

Bill Talley, a property owner, adds, “The innkeepers association opposes the vacation home rentals. They are a terrible problem in other areas. You cannot put a vacation home rental in a residential neighborhood. We’re spending more time with this. Secondly, we provide 200 jobs in this community. You have to hire full time staff. We think that right now, you’re commercializing residential neighborhoods. They should not be allowed except under high regulations. Working with the innkeepers association, we have to start with a new approach.”

Jack Briggs, a resident, spoke, “There are lot of home rentals throughout the US and locally there are a lot of them in the Coachella Valley. Some of them have high prices. There are listings in Yucca Valley and Joshua Tree. I do think we should encourage small businesses.”

Councilman Steve Spear has done some investigation into the popping up of Vacation Home Rentals in the city. He said, “I personally went out on a tour and I found five residences in 29 Palms that are listed as vacation rentals. The issue of whether if they are good or bad, it’s hard to collect taxes on an illegal operation. I am interested to hear what my fellow council members have to say.”

Councilman Jim Harris remarked, “What is it that will make us think that they will cough up TOT money if there’s no way to regulate them. I don’t see a way to regulate them.”

As City Attorney Patrick Munoz explained, this was a big issue for the city of Mammoth Lakes, California. This city, according to Munoz, has regulated nightly rentals. “They came up with a permit process to where you can have a vacation rental. If you’re not following the rules, you can lose your right. If you don’t pay the TOT you will be prosecuted,” he said.

City Manager Michael Tree has sent out letters to those who are operating rentals and urged them to come to the meeting. So far, only one showed up on Tuesday.

Bob French, a former Mountain resident, stated, “I lived in Big Bear for 15 years. We had rentals up there and we paid taxes like everyone else does. For the innkeepers association to condemn them is disgusting. They are just people who want to come to the desert. It is not fair at all.”

Mayor Steve Flock recently saw someone advertising rentals at the airport. He says, “I looked in the web for advertisements. Some of them looked very nice. It’s a business that will go on in a residential neighborhood. We have a problem with absentee landlords. There’s still a potential with party houses. It’s a business.”

Councilman John Cole did not think that this should be ignored. “It looks like we need to do something and I’m not sure because I don’t have a handle on it. I see some valid points. Regardless, it’s going on. I don’t think we can walk away from it.”

At the current time, the city has sent out cease and desist letters to all property owners who operate such rentals. With Tuesday night’s vote, the Planning Commission will once again discuss this matter at a future meeting.

Nelson Miller, from the Hogle-Ireland Legal Firm led most of the discussions. “As we described last time, the current policy of the regional water board is for subdivisions 10 units or more to have sewage systems,” he said. “In summary, within the city there are 12 packaged treatment plans approved for development. There are a potential for 90 plans.”

Councilman Joel Klink remarked, “I’m for a sewer treatment plant for the downtown area. But it will be a trillion dollars to put in a wastewater treatment plant. Where is the money coming from?”

Councilman Steve Spear adds, “Does anybody know what triggers them to say ‘Thou shalt build a sewage system?’ We certainly don’t know where the money is coming from.”

Jay Corbin, a future City Council candidate and from Corbin Planning responded, “We had a lot of discussion and there are a lot of unanswered questions. The state will require wastewater treatment for the city. We risk contamination of the groundwater. Look at those facts so that you can make the right decision for the community. And the nitrate levels in Yucca Valley are high and for 29 Palms.”

Nelson added that as the city grows, septic systems become a problem. “Yucca Valley is four to five times the size of Twentynine Palms. They have reached a point where it becomes a problem. As rural areas become denser, it becomes a problem.”

City Manager Michael Tree adds, “We have been meeting with Yucca Valley and the county. The dollars are few and if it’s not a regional issue, they’re not likely to get funding. They are having a difficult time finding any money.”

Mayor Steve Flock stated, “I don’t want to mortgage our children’s future. We’re not that far yet. We may go in that direction. This city has for 22 years avoided development fees. I think we need to address blight, roads and streets downtown and I’m talking about development fees. I think we should move ahead with the regional plan and look at alternatives as to how we finance it.”

Besides the talks about the sewage wastewater plan being favored, the council also favored a plan to expand commercial areas near the Stater Brothers Shopping Center, but they also denied a tourist commercial area west of Lear adjacent to Highway 62.