Sacramento police raid licensed, Black-owned cannabis business

John Long, whose cannabis business was raided by Sacramento on November 29, 2022.Photo by(Screenshot by Robert J Hansen)

Skycloud, a Sacramento cannabis company, had three locations raided by Sacramento police near the end of last November, for allegedly operating a storefront dispensary without a license, a violation of city code.

Skycloud was permitted by the City to deliver cannabis.

John Long, co-owner of Skycloud, was sleeping when he heard his alarms go off and received a call from his security company, telling him about lots of activity at his shops.

From his home, Long could see the police officers in his shops on his surveillance monitors.

“They didn’t have to come into my business like that, tearing walls down like I have anything to hide,” Long said.

More video of the raid can be seen here along with an interview between Long and documentarian LMC.

Sacramento police came in full swat gear and came into the shops with their guns drawn.

“It should have just been a ticket and have a great day, but no,” Long said. “They want to kick in my door and do the whole A-Team thing.”

Police confiscated over a thousand in cash, several laptops, point of sale kiosks, cash registers, all the CBD products and some promotional cannabis products, according to the police report.

“They were only looking for cash,” Long said. “The cannabis they found were items that we give away at promotional events.”

Long said customers were able to order their cannabis products from a kiosk at one of the CBD locations and wait for their orders.  Operating within a loophole of the city ordinance and cannabis business code.

“They didn’t have an ordinance against what we were doing so they wanted to make an example out of me,” Long said. “They didn’t want it to catch on.”

City ordinance allows a cannabis delivery company to deliver to and inside any location except for government buildings.

“Basically what we did was create a Redbox situation for cannabis delivery at our retail locations,” Long said. 

Sacramento police officers with the City’s Marijuana Compliance Team, “completed the purchase of THC products” from a sales representative, according to a letter from Leyne Milstein, Assistant City Manager.

Sacramento police officers during an early morning raid at one of three Skycloud locations on November 29, 2022.Photo by(Courtesy of John Long)

Long said in the end he received a citation and a fine. Skycloud’s El Camino location is in District 2 which is represented by Sean Loloee, who has often opposed cannabis businesses on the Del Paso Boulevard strip.

Some residents along with the Councilmember have long voiced their opposition to cannabis businesses on the Arden/Del Paso Boulevard corridor. A phone complaint about Skycloud was made from that same area according to a police report.

Loloee and a few community leaders back in April 2021, wanted an immediate time-out on permits in the district so that the city can study the impacts of cannabis businesses on residential areas and other businesses in District 2.

“I think it is fair to take a pause, and look at the regulations to make sure the outcome is what the city and District 2 needs and desires,” Loloee told the Sacramento Bee.

Long said when he met Loloee, that he asked if he would prefer to open a barber shop or a Tesla charging station instead of the CBD store.

“It shows how out of touch he is with the community because there are not many people that own Teslas in that neighborhood,” Long said.

At a May 2022 meeting, Utility Commissioner Phil Pluckebaum denied a proposal for a delivery-only cannabis dispensary after some residents were concerned about the “influence” a cannabis delivery storefront would have on their kids as they got older.

One concern raised by residents was that a store in proximity to residential areas (despite this being in an industrial area) would be problematic because it would “increase crime.”

Daniel Savala, Executive Director of the Del Paso Boulevard Partnership, came into Skycloud’s El Camino location shortly after it first opened and after looking around the shop, Savala began suggesting other uses for the location.

“Don’t you want to be in a different location?” Savala asked Long. “Or maybe do something else with the space.”

Loloee has yet not responded for comment and Savala could not be reached.

Long is one of few Black cannabis business owners in Sacramento.

Sacramento’s Cannabis Opportunity Reinvestment and Equity Program (CORE) was designed to reduce the barriers to entry into the cannabis industry of those impacted by the disproportionate enforcement of cannabis crimes in Sacramento.

The number of Business Operating Permits in the City of Sacramento as of February 22, 2023.Photo by(City of Sacramento)

Under the CORE program, there are 10 delivery-only businesses and two storefront dispensaries legally permitted in Sacramento to sell cannabis, according to the city.

CORE has gone through several obstacles and just recently the first CORE storefront dispensary opened last November, according to the Sacramento Bee.

Thirty-one CORE applicants received small grants of up to $5,000 each while 13.5 requests were approved for funding of up to $125,000 as of January 2022, according to the Office of Cannabis Management.

California arrests for cannabis by race in 2019.Photo by(California Department of Justice)

Even with the legalization of cannabis in California, Black people continue to be overrepresented in marijuana arrests and jail populations, according to the California Research Bureau (CRB).

Black people continue to be overrepresented in jail for marijuana-only offenses making up 24% of the jailed population while making up just 6% of the state population, CRB’s 2021 report found.

Latino and white people were underrepresented in jail populations in comparison to their overall representation.

The barriers to entry into the regulated market make it incredibly difficult for most people to have a cannabis business, according to Long.

“Too many people who were in the industry before it was legal tried to get into it but they just got rolled over,” Long said. “Or the barriers to entry were too high.”

This is an ongoing story.