RENO, Nev. (AP) — A marijuana dispensary is suing the city of South Lake Tahoe, California, after the city council revoked its cannabis and businesses licenses for failing to open on time — a delay the business blames on the COVID-19 pandemic.

Perfect Union SLT was awarded one of two microbusiness cannabis licenses in November 2019 as part of an agreement that gave it a year to open the business.

The cannabis business says in the lawsuit that the pandemic created the situation that prevented it from meeting the deadline, the Tahoe Daily Tribune reported.

“Mere weeks after the Development Agreement became effective on February 13, 2020, the world quickly and irrevocably changed due to the COVID-19 pandemic, and both business and construction in California in large part came to a grinding halt in March 2020,” the lawsuit states.


“Further, the COVID-19 pandemic caused the demand for construction around the South Lake Tahoe area to boom in a way never seen before,” the lawsuit continued.

After their year deadline passed, City Attorney Heather Stroud gave the company 30 days to cure their default or at least start the process of curing the default but she said they failed to do so.

The council voted

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