Lewis spends $309,188 on Obagi, Jr. recall
by Garth Meyer
South Cord Management, the parent company of Catalyst Cannabis Co., has spent $309,188 on the campaign to recall District 4 Redondo Beach Councilman Zein Obagi, Jr.
The expenditures, up to June 30, are disclosed in an August 1 campaign finance filing the State requires of political action committees (PACs). Catalyst has also funded an initiative seeking voter approval for cannabis retail sales in Redondo Beach.
Both the Obagi recall, and the cannabis initiative go before voters in a Wednesday, Oct. 19 special (mail-in) election.
South Cord CEO Elliot Lewis said in an interview this week that he expects to spend substantially more on the Obagi recall effort over the next seven weeks before the election.
“You want to win, it’s going to be expensive,” he said. “Javelin missiles, tanks, maybe even a nuclear weapon; all aspects of the campaign will be turned on and in full effect in a couple weeks.”
The next campaign finance filing is due Sept. 9.
South Cord’s Aug. 1 report shows an expenditure of $126,354 in cash, and $182,763 in non-monetary, or “in kind” expenditures.
Lewis explained that the non-monetary contributions included, as an example, a Catalyst employee paid $5,000 per month working on the recall during a four week-period before the filing.
“Same thing with the budtenders who came out and walked,” said Lewis, referring to Catalyst employees acting as signature gatherers. A total of 2,452 signatures qualified the recall for the ballot.
The bulk of the $126,354 went to a signature-gathering firm that South Cord first hired, and then largely fired.
“That money might as well have been burned up,” Lewis said.
Lewis traces his effort to recall Obagi to Redondo City Council meetings last fall, when Catalyst sought approval of their retail marijuana initiative. Lewis has said he felt he and Catalyst co-founder Damian Martin were disrespected by the council, especially by Obagi.
Lewis and Obagi, who is an attorney, also crossed paths in 2019, when they were on opposite sides of a lease dispute. The suit was settled out of court in 2020.
Lewis has long said the lawsuit is not a motivator in the recall.
Lewis talks about the recall as a “macro-play” in Catalyst’s intention to open more stores in more cities in California.
“We play to win, and I love democracy,” Lewis said. “Our volunteer list is getting long.”
He said he did not expect the local recall effort, even if successful, to increase his chances of getting a license to sell cannabis in Redondo Beach – assuming his initiative is approved by voters.
“If I’m a bookie I’d say one [retail sales license], in one of the cities,” Lewis said.
Catalyst has also qualified retail cannabis initiatives in Hermosa Beach and Manhattan Beach. ER