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SLO allows Dayspring to transfer marijuana store to girlfriend

September 16, 2021

SLO Mayor Heidi Harmon and Helios Dayspring

By JOSH FRIEDMAN

The city of San Luis Obispo will allow embattled marijuana mogul Helios Dayspring’s Natural Healing Center to open with his girlfriend holding the controlling ownership stake, though the dispensary risks losing its permit if it does not begin operating within the next five weeks. [New Times]

Dayspring, who recently pleaded guilty to charges of bribery and filing a false tax return, initially had an 88% ownership stake in Natural Healing Center’s San Luis Obispo location. Last year, while under investigation by the FBI, Dayspring transferred his share of the business to his girlfriend Valnette Garcia.

San Luis Obispo officials allowed the transfer because it followed the rules outlined in the city’s cannabis ordinance, City Attorney Christine Dietrick said.

Prior to the transfer, Garcia had a 3% ownership stake in the business. Since Garcia had already been vetted by the city during its review of Natural Healing Center’s initial application, she did not need to go through any further review, city officials decided.

Attorney Paul Ready notified the city of the ownership transfer from Dayspring to Garcia on Sept. 9, 2020. Dietrick acknowledged the transfer on Oct. 29, 2020.

The city’s cannabis ordinance allows business owners to to seek ownership changes. Businesses must notify the city about proposed transfers. If the proposed new owner is not already a permitted cannabis operator in the city, the individual must pay fees and undergo a background check, among other requirements.

Following Natural Healing Center’s ownership adjustment, the city received three more cannabis business ownership transfer requests. Upon receiving the second request, the city drafted new rules, which it released in July 2021.

The new rules require businesses seeking ownership transfers to follow detailed procedures, which include paying between $4,700 and $9,800 in fees to cover the city’s review.  An internal ownership transfer, such as the one between Dayspring and Garcia, remains exempt from the additional requirements.

Dayspring is known to hold concealed ownership stakes in many cannabis grows. In the past, Dayspring has often been the primary owner of a project, even though formal paperwork does not indicate so. Additionally, Dayspring has a long history of using limited liability companies in a scheme to conceal ownership stakes and underreport his income from cannabis sales.

Nonetheless, the city of SLO is still permitting Natural Healing Center to open with Garcia holding the controlling ownership stake. Though the city is not penalizing Natural Healing Center for Dayspring’s criminal conduct, the business still runs the risk of losing its permit if it does not open for business by Oct. 22.

Originally, Natural Healing Center needed to open its San Luis Obispo location by Oct. 22, 2020, but it was granted a one-year extension because of complications stemming from the pandemic. If the business does not open by Oct. 22, 2021, the city can open a new application process for the dispensary permit slot Natural Healing Center was awarded.


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A bunch of corrupt and cowardly fools lead SLO city. May it rot on the vine. Protest by shopping and supporting businesses outside of this sick city.


28

Everytime I drive by the Meghans Market storefront, I just roll my eyes…”lipstick on a pig,” as the old saying goes..it’s a store selling dope, addicting folks, drugging them up to self medicate…sleezebag stuff. It will NEVER be OK with me…and I pity the dope addicts lining up, and the others frolicking in the gateway drug that is marijuana. So no surprise here, corruption does not spawn virtue…I pity the future, because as a society , our children and their children will suffer because of what the pot industry represents.


9

Apparently the city is 100% certain that the girlfriend was not complicit and knew nothing about Dayspring’s IRS tax evasion. Otherwise, she would be hiding a crime, right?


42

Good point.


17

Harmon’s corruption continues. Her last hurrah. Don’t let the door hit you on the way out of town. The cannabis industry is pure evil and corrupt. Every aspect of it must be destroyed. The sooner, the better.


18

Interesting to see this News site online, appears to be on target, do not think the FBI or IRS are the only ones on this case and the many who have already flipped and are giving more to authorities. Public Corruption is rampant in your Community as well as many others.


Many have flipped, more too come, do not forget that many other Federal, State and Local Agencies are also investigating . The Franchise Tax Board, Board of Equalization, City and County Permits requirements, Fish & Game, EPA, EIR , it is not just the FBI or US DOJ’s Public Corruption Div. from the IRS-CID to many more are all probing many appointed, elected, Civil Servants and more. Bureau of Land Management, Fish & Game, EPA, USDA-Forest Service LEO’s, many agencies from all walks of the spectrum of Enforcement are involved…


It will take time as these type of cases will always take time, some that are under the “Eye” have already resigned their Positions both Elected and Appointed as well soon some Civil Servants more to come. As this case has arms reaching across State Lines, Federal Lines to Foreign Nations so this is also a National Security matter, CBP, DOJ-OCCIB, LEIU, DHS, D.C.I.S.A.

as well as many other departments, agencies and internal Security matters.


Remember it was the USDOJ and FBI that had to come to your Town and do a Sting on Corrupt San Luis Obispo Police NTF member Cory Pierce for corruption he was not the only one. Rest assured this case has gotten the attention of many people in the right positions. Look for more Grand Jury probes and People are flipping with more to come. It would be wise for your City Officials might want to Lawyer up ! you are not immune to the many probes going on, from Illicit Drugs, Illicit Donations, Accepting illicit Funds, Plane Rides, Cars, Boats, Jewelry, Gold Bullion ! yea you know who we are talking about.


Have all the Cities and County Governments been up front on giving out $ contracts to associates, Bribes, Kick-Backs, Quid Quo Pro is S.O.P., follow the money was the right thought during Watergate…….. as the US Treasury is looking into the failures of some to properly file the mandated Suspicious Activity Reports=SARS .


Remember Phone taps, texting taps, emails etc…. are now very easy to intercept and pass on to the appropriate authorities . If I was some of the many elected, appointed and Civil Servants might just want to Lawyer up and Lawyer up Fast, & Flip before your co-workers and friends do. If your a corrupt cop, prosecutor, lawyer, mayor, city manager, city attorney, judge, council member, you can run but YOU CAN NOT HIDE…………………………….


15

OK this is just not right.


82

I think it is abhorrent that local liberal officials were bribed for this gentleman to be awarded licenses to sell marijuana products, however:


-It is a normal business practice to minimize tax liability by having multiple LLC’s and being smart about your money.


-If an entrepreneur did this, the government would take way more than its share in taxes and also spend that money just as unwisely as it does the money it already has.


-Minimizing tax liability allows entrepreneurs to keep more of the capital they generate. That capital, even just sitting in a bank account, contributes to the economy


27

Why would you call Dayspring a gentleman?


23

Helios transferred his interest in 510 Rancho Road, Nipomo to Valnette, last year.

This is like an adult version of a teenage party when the cops show up and some kid turns to his girlfriend and says, “here babe, hold my beer.”


77

Who in the City of San Luis Obispo has been bribed by Dayspring. Don’t the City officials stand up for anything? Just horrible! I would love to hear the FBI is investigating them.


104

JThomas; rest assured many are on top of the illicit things going on in your community not all State or Federal probes tell each other what they each are doing, their is much going on that is way higher than you know. No One is above any Law.


Not even Judges, Mayor’s, City Attorney’s City Managers, Prosecutors etc. remember that others involved that provided laundering funds, smuggling People, Guns, SATCOM’s those who provided building Green Houses, underground water methods etc, those who lost business in farming are now working to flip so they can go home safe and sound. It is far from over……


13

This may be one of those cases where the list of those who hasn’t been bribed is smaller.


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