Seven Hills, LLC v. Chelan County (Majority and Dissent)Annotate this Case
In 2014, Seven Hills LLC began developing a cannabis production and processing business in Chelan County, Washington. After Seven Hills procured the relevant permits and began building on its property, Chelan County (County) passed Resolution 2015-94, which placed a moratorium on siting new cannabis-related businesses. While the moratorium was in place, Seven Hills received the necessary state licenses and began operating its cannabis production and processing business. Shortly thereafter, the County passed Resolution 2016-14, which changed the relevant ordinances resulting in the barring of new cannabis-related businesses. Seven Hills received a notice and order to abate zoning from the County Department of Community Development, containing four allegations: that Seven Hills had (1) produced and processed cannabis in violation of Resolution 2016-14; (2) constructed and operated unpermitted structures; (3) operated unpermitted propane tanks; and (4) created a public nuisance. A hearing examiner found Seven Hills committed all four violations; the trial court and the Court of Appeals affirmed. The Washington Supreme Court held the County’s resolution declaring a moratorium on siting new cannabis production and processing activities did not amend or replace existing zoning ordinances, and that Seven Hills established a nonconforming use prior to adoption of Resolution 2016-14. Further, the Court held that Resolution 2016-14 did amend the County’s ordinances defining agricultural use, but did not retroactively extinguish vested rights. Accordingly, the Court of Appeals was reversed in part and the matter remanded for further proceedings.