San Francisco’s City Attorney David Chiu recently filed a lawsuit against a property manager linked to a large-scale illegal cannabis grow discovered in two Bayview warehouses. Nearly 6,000 plants and 300 pounds of cannabis were seized, making this one of the city's most significant unlicensed grow busts in recent years.
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Property Manager Allegedly Profited From Illegal Operation
The lawsuit names David Chi-Yu Lai, the property manager of the warehouses, who allegedly leased the spaces to tenants cultivating cannabis without the required licenses.
According to City Attorney Chiu, unlicensed grows like these avoid state compliance costs, creating an uneven playing field for operators abiding by California's strict cannabis regulations. Chiu emphasized the need to curb these operations to maintain fair business practices in the city.
Community Safety At Risk
Beyond market impacts, city officials point out the safety risks posed by unlicensed grows.
Court documents reveal numerous code violations at the Bayview sites, including exposed wiring, unsecured CO2 tanks and the absence of essential safety systems.
The operation, located within a residential community, could have led to dangerous situations, from fire hazards to CO2 exposure.
Read Also: Gov. Newsom’s Cannabis Task Force Seized $191M So Far In 2024 As California Tightens Regulations
City Targets Property Owners To Combat Illegal Grows
The warehouses, located on Fitzgerald and Wallace Avenues, were leased through Lai's company, P.A.A. Property, LLC.
Surveillance reportedly captured Lai entering one of the grow sites, though it is unclear if he directly profited from the cannabis operation.
Chiu explained that targeting property owners who allow illegal activities is essential in cracking down on California’s underground cannabis market.
Read Next: New Rules, Old Challenges: California’s Cannabis Industry Grapples With Regulations
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