Council candidate sues King City over revoked cannabis permit – and pitches a data center.
King City Council candidate Jonas Lalehzadeh is suing King City after his cannabis cultivation permit was revoked, alleging procedural issues. Concurrently, the property central to the lawsuit is being marketed as a "power-ready data center campus" with significant onsite power. City officials confirm that a data center is not a currently permitted use and would require extensive review.
Jonas Lalehzadeh, a 37-year-old former professional basketball player running unopposed for a King City City Council seat, has filed a lawsuit against King City following the revocation of a cannabis cultivation permit for his company, DB A Growth LLC. Lalehzadeh, who moved to King City in 2021 to start a cannabis business, claims the city improperly revoked his Type 3B permit for a property at 150 Don Bates Way, despite accepting permit fees and quarterly taxes.
City Manager José Arreola, acting as an administrative hearing officer, cited violations of trafficking and distribution, asserting that Lalehzadeh lacked a transportation license for cannabis in King City or with the state. The city's formal revocation effort began in May 2026, referencing an earlier state revocation of a distributor license for DB A Distribution LLC, a separate entity. Lalehzadeh denies operating any business without a license and is seeking to reinstate DB A Growth’s cultivation permit, which he states is crucial for an $11.7 million purchase agreement for the company. The lawsuit, filed in Monterey County Superior Court, is currently in settlement talks, with a judge agreeing to a stay on plant removal.
Simultaneously, the 150 Don Bates Way property is being advertised online as an $18 million "power-ready data center campus" with 55,000 square feet and 8.31 megawatts of onsite power, marketed for its potential to avoid Silicon Valley power grid constraints. However, City Manager Arreola emphasized that a data center is not a permitted use for the site and any such proposal would require review by the Planning Commission and the City Council, likely facing considerable scrutiny.