Political efforts to legalize retail hashish dispensaries in four South Bay beach cities have devolved into what one advisor known as a “knock-down, drag-out knife combat” mired by private assaults, infighting and a bitter recall try on a metropolis councilman.
On the heart of the controversy is Elliot Lewis, the CEO of Catalyst Hashish Co., a self-described “scrapper” who isn’t shy about his propensity to reply with verbal punches when challenged. His detractors blame his antagonistic type — which incorporates posting expletive-filled take-downs on Instagram — for the ensuing fierce opposition from native officers. And so they say his brash character has prompted early supporters to distance themselves from the initiatives now.
One of many petitions, offered in El Segundo, crumbled, partially, because of the infighting.
Lewis acknowledges his character possible performed a task within the escalations, saying he possibly makes use of a couple of too many “f-bombs,” however says that’s simply who he’s.
“I actually suppose we’re the great guys getting improperly labeled because the unhealthy guys due to our type,” Lewis mentioned.
He alleges “unhealthy intel” led his facet to consider their hashish initiatives could be welcomed by the elected officers in El Segundo, Hermosa Seashore, Manhattan Seashore and Redondo Seashore. It was a tried-and-true formulation that had labored elsewhere, and voters within the seashore cities had been sturdy supporters of Proposition 64, the 2016 measure to legalize hashish in California.
In the perfect case, a positive Metropolis Council — or no less than one which sees the writing on the wall — can selected to undertake an authorized initiative as soon as it’s offered as an alternative of sending the difficulty to voters. That’s what occurred in El Monte when Lewis and Catalyst filed a voter initiative there. Regardless of related accusations of bullying, Lewis and his allies ended up nabbing a large chunk of the licenses as nicely, together with one later awarded by a choose as a consequence of errors within the choice course of.
“Our purpose is to not go to the poll, or if we’re going to go to the poll, for it to not be contentious,” Lewis mentioned.
If that technique labored, it might have saved the proponents a variety of money and time; they’ve independently spent almost $1 million mixed on the initiatives and recall, in line with marketing campaign filings.
However contentious may be an understatement to explain the combat now. Every of the seashore cities focused by Catalyst has both filed its personal ballot measure — together with one to proceed an outright ban in Manhattan Seashore — or launched separate ordinances to manage hashish within the hopes of appeasing voters.
Redondo took the extra step of inserting the hashish initiative and a recall of one among its councilmen funded by Catalyst on a special Oct. 19 ballot, a transfer that has drawn allegations that officers are deliberately attempting to restrict the quantity and kind of voters who will present up. The opposite three cities will go earlier than voters in November, together with a city-backed initiative filed in opposition in El Segundo.
How the combating started
The efforts to deliver leisure hashish dispensaries to the South Bay started no less than three years in the past. Adam Spiker, a advisor from the agency Spiker Rendon, mentioned his firm had another person lined as much as fund the push in 2019 earlier than it fell by. Later, Spiker and Richard Montgomery, a Manhattan Seashore councilman, met with South Bay officers all through 2021 to gauge how initiatives may be acquired, the 2 males mentioned in separate interviews.
Catalyst was requested to hitch a collaboration that included Excessive Instances and Dub Brothers as soon as the timing “felt proper” to make a pitch, in line with Spiker. The group was stored small to keep away from disputes over the restricted variety of licenses obtainable in every metropolis. Their targets initially included Hawthorne and Torrance as nicely.
Excessive Instances later left the group, however Spiker mentioned he couldn’t disclose why.
Catalyst has dispensaries all through California and has been the driving drive behind related initiatives in a dozen cities, together with seven totally different initiatives slated to look on ballots this election season alone.
As soon as an ally of Catalyst, Spiker now calls working with the Catalyst CEO one among his “largest regrets.”
“When the entire warmth and the entire eyes bought placed on Elliot, he doubled and tripled down on his ‘Weed for the Folks’ persona and these derogatory movies,” Spiker mentioned.
Spiker’s aunt, Sandra Spiker, filed and later retracted the Catalyst-led initiative in El Segundo. Spiker mentioned she moved out of state and was not eligible to function the petitioner. His aunt and different members of the family weren’t proud of the publicity surrounding the subject both, he mentioned.
“They didn’t wish to be concerned and it created a variety of consternation in our household,” mentioned Spiker, who denies asking her to again out.
Regardless of his trepidation, Spiker believes within the coverage behind the Catalyst-backed initiatives, which he described as following the trade’s finest practices.
“In the event that they vote to show this down, for my part, it’ll be the whole byproduct of Elliot and never the coverage,” he mentioned.
What occurred
The proponents seek advice from the beginning of the battle and their first look at a November 2021 Metropolis Council assembly in Redondo Seashore because the “Crimson Marriage ceremony” — a reference to a “Sport of Thrones” episode involving an incredibly bloody betrayal.
“We rode in anticipating ticker tape and didn’t get it,” mentioned Barry Walker, co-founder of Dub Brothers and Tradecraft Farms, the opposite firm bankrolling the trouble alongside Catalyst. “I might say that’s the place it went south.”
In hindsight, Walker regrets how private the battle has grow to be, although he mentioned he doesn’t remorse his partnership with Catalyst or his involvement with the initiatives. Either side may have dealt with the disputes higher, he mentioned.
“We’ve finished this earlier than, there’s been smoke and there’s been explosions,” Walker mentioned. “It’s not all the time straightforward at first, however as soon as it’s all finished, and the licensing course of is over and we begin to create income, we’re everyone’s finest good friend.”
Lewis locations the blame for the misplaced expectations on Spiker.
Spiker helped Catalyst land the looks earlier than the council and claims he warned the corporate to count on resistance based mostly on the discussions at Redondo’s prior assembly. Nonetheless, he mentioned, nobody may have predicted the snowball impact that finally poisoned the efforts within the neighboring cities as nicely.
The 2 sides parted methods afterward, although every says he severed the association.
The Crimson Marriage ceremony
A recording of the Redondo Seashore Council assembly suggests lawyer Damian Martin, the creator of the 4 initiatives and a frequent accomplice of Lewis, wasn’t anticipating a political firing squad. Martin provided to stroll council members by every of the initiatives’ elements and reply any questions. As an alternative, he was given a 15-minute time restrict — half of what he mentioned he wanted — and confronted fast accusations that the corporate’s signature collectors had been deceptive residents.
The council members, who unanimously scoffed on the initiative, referenced inflammatory movies posted by Lewis and Catalyst’s history of filing lawsuits in opposition to cities that refused to provide it a hashish license.
“We’re actually attempting to come back in peace with this and I hope you deal with it sincerely, as that’s the purpose,” Martin mentioned at one level.
“I’ve additionally seen movies of your accomplice and he doesn’t appear to come back in peace with any jurisdiction that doesn’t agree with you 100%,” responded Councilman Christian Horvath.
Martin turned clearly extra pissed off because the assembly went on and his generally abrasive makes an attempt to attempt to regain management solely drew extra fireplace.
“It’s not going nicely, is it?” requested Councilman Todd Loewenstein.
Either side noticed the assembly as an ambush. Council members alleged they had been blindsided by the filings and questioned why nobody consulted them beforehand.
“We relied on a 3rd get together to do this, we should always know higher by now,” Lewis mentioned in an interview. “There actually wasn’t enough engagement, I’ll take full duty for that.”
Presents to fulfill after the very fact went nowhere and everybody retreated to their respective corners, in line with Lewis.
Assaults centered on councilman
Lewis made the subsequent assault by focusing on Redondo Seashore Councilman Zein Obagi. A mailer despatched out round Christmas final 12 months superimposed Obagi’s face onto “The Grinch” and introduced up allegations filed in opposition to him by the State Bar Affiliation.
In a single current Instagram put up, Lewis, tattooed and shirtless, referred to Obagi as a “douchey monotone fool.” One other accused him of doing the bidding of particular pursuits in South Redondo and likened it to felatio.
“Obagi ain’t the primary man to get a style of some free speech,” Lewis mentioned in an interview.
Obagi now faces a recall attempt funded completely by Lewis’ firms. Marketing campaign filings confirmed South Wire Holdings LLC, the mum or dad firm of Catalyst, has spent $356,000 up to now on the recall effort.
Obagi, a newcomer who gained his seat by simply 33 votes roughly a 12 months earlier, strongly opposed the initiatives in the course of the “Crimson Marriage ceremony” assembly in November, accusing Martin of tailoring the scoring system to favor Catalyst and including language to permit anybody to sue to acquire a license if town denies its software.
Lewis doesn’t deny the initiatives give Catalyst some benefits, however there’s no assure, he mentioned. He acknowledges Catalyst possible advantages from figuring out which properties certified for retail outlets prematurely and from a requirement for prime labor requirements, he mentioned.
“I’d be a moron if I spent a bunch of cash on the initiative and didn’t construct in a couple of issues which are advantageous for us,” he mentioned.
The entire provisions, together with one indemnifying the cities from any lawsuits difficult licensing selections, are nonetheless good for the native companies and for employees, he added. The L.A. County Democratic Party helps all three of Catalyst’s initiatives.
Obagi, an lawyer, beforehand efficiently sued Lewis on behalf of a former tenant and believes Lewis is bitter about it.
“He needs to exhibit to each metropolis the place he goes that you don’t stand as much as Catalyst once they come to your city,” Obagi mentioned. “I believe that’s the primary message he’s attempting to attain right here — that he can recall any council member that he chooses.”
Lewis is upfront that he initially went after Obagi to punch again for a way the assembly performed out, however after the “Grinch” mailer was despatched out, others expressed their dissatisfaction with the brand new councilman and Lewis noticed a chance to take down somebody he described as a “hypocrite.”
Will it ripple to different cities?
Spiker, the previous advisor on the initiatives, believes others cities will hesitate to work with Lewis sooner or later due to his popularity.
“He’s bought to overspend to get his method in communities now, as a result of his persona is spreading,” Spiker mentioned. “I don’t suppose there’s a world the place cities wish to be put able to work with somebody that may instantly flip in opposition to them and put out Instagram movies about them.”
Lewis isn’t involved. If something, he mentioned, metropolis officers will know to take him significantly.
“On the finish of the day, I’ve no drawback saying concern is an effective motivator in politics,” he mentioned.
If the initiatives move within the seashore cities and Catalyst lands a license, Lewis mentioned he’ll make peace “with anyone that we are able to make peace with.”
“If we seize a license or two within the South Bay, we’re going to be up,” Lewis mentioned. “And I’m very assured when the historical past books shut, we’re going to be on the suitable facet of historical past.”