HomeMy WebLinkAboutORD 1424 ORDINANCE 1424
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF BALDWIN PARK, CALIFORNIA,
AUTHORIZING THE CITY OF BALDWIN PARK TO
ENTER INTO A DEVELOPMENT AGREEMENT
WITH GREEN HEALTH INDUSTRIES, LLC FOR
THE CULTIVATION AND/OR MANUFACTURING OF
CANNABIS AT THE REAL PROPERTY LOCATED
AT 13460 BROOKS DRIVE (APN: 8535-024-018)
WITHIN THE CITY OF BALDWIN PARK
WHEREAS, a development agreement with the City of Baldwin Park will
be required; and
WHEREAS, a duly noticed public hearing was held by the Planning
Commission of the City of Baldwin Park on April 11, 2018, to receive comments
and consider recommendation to City Council of the proposed Development
Agreement; and
WHEREAS, the Planning Commission at such hearing, did recommend
that the City Council approve the proposed Agreement; and
WHEREAS, the City Council held a duly noticed public hearing pursuant
to law on the Agreement on April 12, 2018; and
WHEREAS, the City Council has reviewed the Development Agreement
(attached as Exhibit "A" herewith and incorporated herein by reference) and finds
and declares that compliance with all notice, hearing, and procedural
requirements as set forth by law have been met, thus allowing the City Council to
review and consider the approval of the attached Development Agreement; and
WHEREAS, the City Council hereby specifically finds that the provisions of
the Development Agreement are consistent with the General Plan of the City;
and
WHEREAS, the City Council hereby specifically finds that the
Development Agreement is in conformance with the public convenience and
general welfare of persons residing in the immediate area and will not be
detrimental or injurious to property or persons in the general neighborhood or to
the general welfare of the residents of the city as a whole; and
WHEREAS, the City Council hereby specifically finds that the
Development Agreement is consistent with the provisions of California
Government Code §§ 65864 - 65869.5.
Ordinance 1424
Page 2
WHEREAS, as required by law, the City Council gave first reading to the
proposed ordinance on April 18, 2018.
NOW, THEREFORE BE IT ORDAINED by the City Council of the City of
Baldwin Park, California, as follows:
SECTION 1. In accordance with the provisions of the California
Environmental Quality Act (CEQA), it has been determined that the proposed
Development Agreement Projects (DA 18-01 through DA 18-15) will not have a
significant impact of the environment and are Categorically Exempt pursuant to
Article 19, Section 15301, Class 1, 'Existing Facilities'. Furthermore each of the
locations is proposed within an existing building.
SECTION 2. The City Council hereby adopts the following findings of fact
required by Subchapter 153.210.860 of the City's Municipal Code relating to
Development Agreements:
1. The Development Agreement is consistent with the General Plan
objectives, policies, land uses and implementation programs and any other
adopted plans or policies applicable to the agreement.
Because the location of the cannabis cultivation/manufacturing
business is located within the I, Industrial Zone, it is anticipated that
the use of the property is consistent with the other light industrial
uses within the area. The adoption of cannabis cultivation and
manufacturing activities is also consistent with Goal 1.0 of the City's
Economic development Element in the General Plan in that the City
encourages and facilitates activities that expand the City's revenue
base. Furthermore, Goal 6.0 of the same element encourages the
expansion of the City's diverse industrial base. Policy 6.5 of Goal
6.0 encourages an on-going campaign with local businesses to hire
local residents. This Development Agreement requires that a
minimum of 20% of the businesses workforce shall consist of
Baldwin Park residents.
2. The Development Agreement is compatible with the uses
authorized in, and the regulations prescribed for, the land use district in which the
real property is located.
Pursuant to Ordinance 1401, adopted by the City Council on
August 16, 2017, effective on September 16, 2017 (and as
subsequently amended by Ordinance 1403 refining the
measurement of distances) cannabis cultivation, manufacturing and
distribution activities are allowed within the City provided all of the
development standards in Chapter 127 of the City's Municipal Code
are met. Dispensaries remain prohibited throughout the City.
Ordinance 1424
Page 3
3. The Development Agreement is in conformance with the public
convenience and general welfare of persons residing in the immediate area and
will not be detrimental or injurious to property or persons in the general
neighborhood or to the general welfare of the residents of the city as a whole.
The Development Agreement is in conformance with the general
area and City as a whole as it is located within the I-C, Industrial
Commercial Zone surrounded by lighter industrial uses. The use
exceeds the distance requirement of fifty (50) feet between
cannabis uses and the closest residential zone; furthermore,
pursuant to Section 127.07.E.1 of the City's Municipal Code, the
cannabis use is not nearby any sensitive uses such as schools, day
care centers, parks or youth centers.
Pursuant to the Community Engagement Plan submitted by the
Applicant, Green Health Industries plans to become an integral
member of the Baldwin Park community. They strongly believe in
higher education and will strive to become a valuable resource for
scholarships. They desire to build a scholarship foundation to
support the educational advancement of the community.
Furthermore, their security plan is extremely detailed and includes
a variety of camera surveillance systems and manned areas,
thereby significantly reducing the potential for any negative impacts
upon the general neighborhood or city as a whole.
4. The Development Agreement is consistent with the provisions of
California Government Code §§ 65864 - 65869.5.
Pursuant to the City Attorney's Office along with review by the
Planning Division Staff, the Development Agreement (Reference
Attachments #1 through #15 to the Planning Commission and City
Council staff reports dated April 11 and 12, 2018) is consistent with
California Government Code Sections 65864-65869.5.
SECTION 3. The City Council hereby approves and adopts the
Development Agreement, in the form as attached hereto as Exhibit "A", and
authorizes and directs the Mayor to sign it in the name of the City of Baldwin
Park.
SECTION 4. This ordinance shall go into effect and be in full force and
operation from and after thirty (30) days after its final reading and adoption.
PASSED AND APPROVED ON THE 2nd day of May, 2018
—1►
P L LOZANO, MAYOR
Ordinance 1424
Page 4
ATTES
ALE AN' ' 'AVILA,
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss:
CITY OF BALDWIN PARK )
I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park, do hereby certify
that the foregoing ordinance was regularly introduced and placed upon its first
reading at a regular meeting of the City Council on April 18, 2018. Thereafter,
said Ordinance No. 1424 was duly approved and adopted at a regular meeting
of the City Council on May 2, 2018 by the following vote:
AYES: COUNCIL MEMBERS: Garcia, Lozano, Pacheco
NOES: COUNCIL MEMBERS: Baca, Rubio
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBER . N ne/
ALEJAN ' A AVILA,
CITY CLERK
•
•
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF BALDWIN PARK AND GREEN HEALTH INDUSTRIES, LLC
ARTICLE 1. PARTIES AND DATE.
This Government Code Statutory Development Agreement ("STATUTORY
AGREEMENT") is intended to replace the previous non-statutory Development
Agreement, and is dated A): 11/4131/12018 for references purposes only and is entered into
between (i) the City of Baldwin bark ("City"), a California municipal corporation, and
. (ii) Green Health Industries, LLC ("Owner"). This STATUTORY AGREEMENT shall
become effective on the Effective Date defined in Section 3.1.9 below.
ARTICLE 2. RECITALS.
2.1 WHEREAS, the City and Green Health Industries, LLC previously entered
into a non-statutory Development Agreement that was not intended to be a Government
Code Statutory Development Agreement; and
• 2.2 WHEREAS, the previous municipal Development Agreement was not
promulgated by or through the Government Code and did not contain necessary elements
for a Statutory Government Code Development Agreement; and
2.3 WHEREAS, this new Statutory Development Agreement is pursuant to
Government Code and is intended to be a Statutory Development Agreement under and
through Government Code Section 65864, et seq.; and
2.4 WHEREAS, the City is authorized pursuant to Government Code Section
65864 et seq. to enter into binding statutory development agreements with persons
having legal or equitable interests in real property for the development of such property;
and
2.5 WHEREAS, Owner commenced its efforts to obtain approvals and
clearances to cultivate and manufacture medical and adult use cannabis in September
2017; and at that time the City determined that the uses authorized in this STATUTORY
AGREEMENT were lawfully permitted and authorized to occur on Owner's Property,
, subject to Owner's acquisition of various entitlements, as discussed herein; and
2.6 WHEREAS, Owner voluntarily enters into this STATUTORY AGREEMENT
and after extensive negotiations and proceedings have been taken in accordance with
the rules and regulations of the City, Owner has elected to execute this STATUTORY
AGREEMENT as it provides Owner with important economic and development benefits;
and •
2.7 WHEREAS, this STATUTORY AGREEMENT and the Projec.t are
• consistent with the City's General Plan and Zoning Code and applicable provisions of the
City's applicable Zoning Map and the Baldwin Park Municipal Code as of the Agreement
Date; and
2.8 WHEREAS, all actions taken and approvals given by the City have been
duly taken or approved in accordance with all applicable legal requirements for notice,
public hearings, findings, votes, and other procedural matters; and
2.9 WHEREAS, this STATUTORY AGREEMENT will eliminate uncertainty in
planning and provide for the orderly development of the Project and/or Property, ensure
progressive installation of necessary improvements, and provide for public services
appropriate to the development of the Project; and
2.10 WHEREAS, in implementation of the promulgated state policy to promote
private participation in comprehensive planning and to strengthen the public planning
process and to reduce the economic risk of development, the City deems the
implementation of this STATUTORY AGREEMENT to be in the public interest and intends
that the adoption of this STATUTORY AGREEMENT be considered an exercise of the
City's police powers to regulate the development of the Property during the Term of this
STATUTORY AGREEMENT; and
2.11 WHEREAS, this STATUTORY AGREEMENT is consistent with the public
health, safety and welfare needs of the residents of the City and the surrounding region
and the City has specifically considered and approved the impact and benefits of the
development of the Property in accordance with this STATUTORY AGREEMENT upon
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the welfare of the region; and
2.12 WHEREAS, Owner intends to develop a Cannabis Manufacturing and
Cultivation Facility pursuant to the Baldwin Park Municipal Code ("BPMC") Chapter 127
and all applicable state laws, rules, and regulations; and
2.13 WHEREAS, concurrently with execution of this STATUTORY
AGREEMENT, City acknowledges that Owner has been authorized to cultivate and
manufacture cannabis and cannabis related products at its facility or facilities up to 22,000
square feet.
• 2.14 . WHEREAS, the City entered into a Development Agreement with Rukli,
Inc. to be the exclusivedistributor of cannabis and cannabis related products in the City
of Baldwin Park. The City is entering into development agreements with owners for
permits for cultivation and manufacturing of cannabis and cannabis related products in
the City of Baldwin Park. The City prohibits the sale of cannabis and cannabis related
products within the City of Baldwin Park so the cannabis and cannabis related products
must be distributed to and sold in cities where it is legal to do so. Rukli, Inc. shall be the
exclusive distributor for the cultivation and/or manufacturing permit holders within the City
of Baldwin Park and City conditions the cultivation and/or manufacturing permits on Rukli,
Inc. being the exclusive distributor for any permit issued by Baldwin Park for cultivation or
manufacturing.
. ARTICLE 3. GENERAL TERMS.
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3.1 Definitions and Exhibits. The following terms when used in this
STATUTORY AGREEMENT shall be defined as follows: " •
3.1.1 "Agreement" means this STATUTORY AGREEMENT pursuant to
Government Code Section 65864 et seq.
3.1.2 "City" means the City of Baldwin Park, a California municipal
corporation.
3.1.3 "Days" mean calendar days unless otherwise specified.
3.1.4 "Dedicate" means to offer the subject land for dedication and to post
• sufficient bonds or other security if necessary for the improvements to be constructed
including, but not limited to: grading, the construction of infrastructure and public facilities
related to the Project whether located within or outside the Property, the construction of
buildings and structures, and the installation of landscaping.
3.1.5 "Development" If applicable, includes grading, construction or,
installation ofp ublic and private facilities and the right to maintain, repair or reconstruct
any private building, structure, improvement or facility
after the construction and
completion thereof; provided, however, that such maintenance,
repair,air,
or reconstruction
take place within the Term of this STATUTORY AGREEMENT on the Property.
3.1.6 "Development Approvals" If applicable, means other entitlements for
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the Development of the including any and all conditions of approval, subject
to
approval or issuance by the City in connection with Development of the Property.
"Development Approvals" also include both the Existing Development Approvals and the
Subsequent Development Approvals approved or issued by the City that are consistent
with this STATUTORY AGREEMENT.
3.1.7 "Development Plan" If applicable, means the Existing Development
Approvals and the Existing Land Use Regulations applicable to development of the
Property for the Project, as modified and supplemented by Subsequent Development
Approvals.
3.1.8 "BPMC" means the City of Baldwin Park Municipal Code.
3.1.9 "Effective Date" means the day this STATUTORY AGREEMENT is
approved and adopted by the Baldwin Park City Council and signed by the Mayor of
Baldwin Park or his designee
3.1.10"Existing Development Approvals" If applicable, means all
Development Approvals approved or issued prior to or on the Effective Date. Existing
Development Approvals include the approvals set forth in Section 3.1.6 and all other
approvals which are a matter of public record prior to or on the Effective Date. •
3.1.11I,Existing Land Use RegulationsII If and where applicable, means all
Land Use Regulations in effect on the Effective Date. Existing Land Use Regulations
include all regulations that are a matter of public record on the Effective Date as they may
be modified by the Existing Development Approvals.
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3.1.12"Land Use Regulations If and where applicable means all
ordinances, resolutions and codes adopted by the City governing the development and
use of land, including the permitted use of land, the density or intensity of use, subdivision
requirements, the maximum height and size of proposed buildings, the provisions for
reservation or Dedication of land for public purposes, and the design, improvement and
construction and initial occupancy standards and specifications applicable to the
Development of the Property.
3.1.13"Mortgagee" If applicable, means a mortgagee of a mortgage, a
beneficiary under a deed of trust or any other security-device lender and its successors-
in interest.
3.1.14"Owner" means Green Health Industries LLC.
3.1.15"Processing Fees" means the normal and customary application,
filing, plan check, permit fees for land use approvals, design review, tree removal permits,
building permits, demolition permits, grading permits, and other similar permits and
entitlements, and inspection fees, which fees are charged to reimburse the City's
expenses attributable to such applications, processing, permitting, review and inspection
and which are in force and effect on a general basis at such time as said approvals,
permits, review, inspection or entitlements are granted or conducted by the City.
3.1.16"Project" If applicable means the Development of the Property
contemplated by the Development Plan, as such Development Plan may be further
defined, enhanced or modified pursuant to the provisions of this STATUTORY
AGREEMENT. The Project shall consist of this STATUTORY AGREEMENT, the
Development Plans, the application, any and all entitlements licenses, and permits'related
to the Project.
3.1.17"Property" means the real property described in Owner's application
and incorporated herein by this reference. Owner may modify the location or locations or
add locations to the Property subject to City approval and all applicable zoning and
distance requirements.
3.1.18"Reasonable" means using due diligence to accomplish a stated
objective that the subject party is capable of performing or providing under the
circumstances in a manner that is consistent with the intent and objectives of the
STATUTORY AGREEMENT.
3.1.19"Reservations of Authority means the rights and authority excepted
from the assurances and rights provided to Owner under this STATUTORY
AGREEMENT and reserved to the City as described in Section 4.4.
3.1.20"Space or Canopy Space" shall mean any space or ground, floor or
other surface area (whether horizontal or vertical) which is used during the marijuana
germination, seedling, vegetative, pre-flowering, flowering, curing, and/or harvesting
phases, including without limitation any space used for activities such as growing,
planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering,
irrigating, topping, pinching, cropping, curing or drying marijuana or any such space used
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for storing any cannabis, no matter where such storage may take place or such storage
space may be located.
3.1.21 "Subsequent Development Approvals" If applicable, means all.future
discretionary approvals and all ministerial Development Approvals required subsequent
to the Effective Date in connection with development of the Property, including without
limitation, subdivision improvement agreements that require the provision of bonds or
other securities. Subsequent Development Approvals include, but are not limited.to, all
excavation, grading, building, construction, demolition, encroachment or street
improvement permits, occupancy certificates, utility connection authorizations, or other
. permits or approvals necessary, convenient or appropriate for the grading, construction,
marketing, use and occupancy of the Project within the Property at such times' and in
such sequences as Owner may choose consistent with the Development Plan and this
STATUTORY AGREEMENT.
3.1.22 "Subsequent Land Use Regulations" If applicable means any Land
Use Regulations defined in Section 3.1.12 that are adopted and effective after the
Effective Date of this STATUTORY AGREEMENT.
3.2 Documents. The following documents, by this reference, are made part of
this STATUTORY AGREEMENT:
No. 1 — Legal Description of the Property.
No. 2 — Map showing Property and its location.
No. 3 —Application
3.3 Binding Effect of STATUTORY AGREEMENT. The Property is hereby
made subject to this STATUTORY AGREEMENT. Subject to Owner's receipt of all
Development Approvals relative thereto, the Development of the Property is hereby
authorized and shall, except as otherwise provided' in this STATUTORY AGREEMENT,
be carried out only in accordance with the terms of this STATUTORY AGREEMENT and
the Development Plan, if any. In the event of conflict or uncertainty between this
STATUTORY AGREEMENT and the Development Plan, the provisions of this
STATUTORY AGREEMENT shall control.
3.4 Ownership of Property. Owner represents and covenants that it has a legal
or equitable interest in the Property, which has an Assessor's Parcel Number of 8535-
024-001 and is more particularly described in the application and document "No. 1" in
Section 3.2 and incorporated herein.
3.5 Term. The parties agree that the Term of this STATUTORY AGREEMENT
shall be fifteen (15) years commencing on the Effective Date subject to the.written
extension and early termination provisions described in this STATUTORY AGREEMENT.
Upon termination of this STATUTORY AGREEMENT, this STATUTORY AGREEMENT
shall be deemed terminated and of no further force and effect, except terms that are
expressly stated in this STATUTORY AGREEMENT to survive termination without the
need of further documentation from the parties hereto. The STATUTORY
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AGREEMENT's Fee is subject to renegotiation after the first term, and every five year
term thereafter.
3.5.1 Term Extension. This STATUTORY AGREEMENT may only be
extended by mutual agreement of City and Owner in writing and signed by Owner and
the Mayor of Baldwin Park. If the Mayor of Baldwin Park does not sign the agreement or
renegotiated agreement any such agreement is null and void.
3.6 Automatic Termination. This STATUTORY AGREEMENT shall
. automatically terminate upon the occurrence of any of the following events:
(i) Expiration of the Term of this STATUTORY AGREEMENT as set
forth in Section 3.5;
(ii) The entry of a final judgment (or a decision on any appeal therefrom)
voiding the City's General Plan or any element thereof, which judgment or decision would
preclude development of the Project, but only if the City is unable to cure such defect in
the General Plan or element within one hundred and eighty (180) days from the later of
entry of final judgment or decision on appeal. •
(iii) Failure to timely pay the Fee or Fees. Failure to timely pay the
$50,000 towards the police salary or benefits. Failure to pay any fees due to the City
f under this STATUTORY AGREEMENT.
t 3.6.1 Effect of Termination. Termination of this STATUTORY
AGREEMENT shall constitute termination of all land use entitlements and permits
approved for the Owner and/or the Property. Upon the termination of this STATUTORY
AGREEMENT, no party shall have any further right or obligation hereunder except with
respect to any obligation to have been performed prior to such termination, or with respect
to any default in the performance of the provisions of this STATUTORY AGREEMENT
which has occurred prior to such termination, or with respect to any obligations which are
specifically and expressly set forth as surviving this STATUTORY AGREEMENT.
3,7 Notices.
3.7.1 Notice Defined. As used in this STATUTORY AGREEMENT, notice
includes, without limitation, the communication of notice, request, demand, approval,
statement, report, acceptance, consent, waiver; appointment or other communication
required or permitted hereunder.
3.7.2 Written Notice and Delivery. All notices shall be in writing and shall
be considered given: •
(i) when delivered in person to the recipient named below; or
(ii) three days after deposit in the United States mail, postage
prepaid, addressed to the recipient named below; or
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(iii) on the date of personal delivery shown in the records of the
delivery company after delivery to the recipient named below; or
(iv) on the date of delivery by facsimile transmission to the
recipient named below if a hard copy of the notice is deposited in the United States mail,
postage prepaid, addressed to the recipient named below. All notices shall be addressed
as follows:
If to the City: Chief Executive Officer
14403 E. Pacific Avenue
Baldwin Park, CA 91706
If to Owner: Sigrid Lopez
13647 Jackson Street
Whittier, CA 90602
3.7.3 Address Changes. Either party may, by notice given at any time,
require subsequent notices to be given to another person or entity, whether a party or an
officer or representative of a party or to a different address, or both. Notices given before
actual receipt of notice of change shall not be invalidated by the change.
3.8 Validity of this STATUTORY AGREEMENT. Owner and the City each
acknowledge that neither party has made any representations to the other concerning the
enforceability or validity of any one or more provisions of this STATUTORY
AGREEMENT. The parties acknowledge and agree that neither party shall allege in any
administrative or judicial proceeding that the entering into or the performance of any
obligations created in this STATUTORY AGREEMENT violates federal or state law, with
respect to all federal, state and local statutes, ordinances or regulations in effect as of the
Effective Date.
3.9 Fee. Fee means the amount(s) set by the City, negotiated with Owner, to
provide City commensurate benefit based on a private benefit conferred upon Owner.
Fee shall include City's cost to research cannabis and cannabis laws and regulations,
draft cannabis ordinance, conduct public meetings, negotiate development agreements,
process applications, and any other acts taken by the City in furtherance of medical and
adult commercial use of cannabis.
ARTICLE 4. DEVELOPMENT OF THE PROPERTY.
4.1 Right to Develop. Owner shall, subject to the terms of this STATUTORY
AGREEMENT, develop the Property with a commercial cannabis facility in accordance
with and to the extent of the Development Plan and/or application. The Property shall
remain subject to all Subsequent Development Approvals required to complete the
Project as contemplated by the Development Plan and/or application.
4.2 Effect of STATUTORY AGREEMENT on Land Use Regulations. Except as
otherwise provided by this STATUTORY AGREEMENT, the rules, regulations and official
policies and conditions of approval governing permitted uses of the Property, the density
and intensity of use of the Property, the maximum height and size of proposed buildings,
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•
and the design, improvement, occupancy and construction standards and specifications
applicable to development of the Property shall be the Development Plan. and/or
application. Provided, however, that in approving tentative subdivision maps, if any, the
City may impose ordinary and necessary dedications for rights-of-way or easements for
public access, utilities, water, sewers and drainage, having a nexus with the particular
subdivision; provided, further, that the City may impose and will require normal and
customary subdivision improvement agreements and commensurate security to secure
performance of Owner's obligations thereunder.
4.3 Changes to Project. The parties acknowledge that changes to the Project
• or Development Approvals may be appropriate and mutually desirable. The City shall act
on such applications, if any, in accordance with the Existing Land Use Regulations,
subject to the Reservations of Authority, or except as otherwise provided by this
STATUTORY AGREEMENT. If approved, any such change in the Existing Development
Approvals shall be considered an additional Existing Development Approval.
4.4 Reservations of Authority. Any other provision of this STATUTORY
AGREEMENT to the contrary notwithstanding, the Development of the Property shall be
subject to subsequently adopted ordinances, resolutions ("Subsequent Land Use
•
Regulations" or sometimes referred to as "Reservation of Authority") on the following
topics:
• (i) Processing Fees imposed by the City to cover the estimated or actual
costs to the City of processing applications for Development Approvals or for monitoring
compliance with any Development Approvals granted or issued, which fees are charged
to 'reimburse the City's lawful expenses attributable to such applications, processing,
permitting, review and inspection and which are in force and effect on a general basis at
such time as said approvals, permits, review, inspection or entitlement are granted or
conducted by the City.
(ii) Procedural regulations relating to hearing bodies, petitions,
applications, notices, findings, records, hearings, reports, recommendations, appeals and
any other matter of procedure.
(iii) Regulations governing engineering and construction standards and
specifications including, any and all uniform codes adopted by the State of California and
subsequently adopted by the City.
(iv) Regulations which may be in conflict with the Development Plan but
which are reasonably necessary to protect the public health and safety; provided,
however, the following shall apply:.
(a) That to the extent possible, such regulations shall be applied
construed so as to provide Owner with the rights and assurances provided in this
and
STATUTORY AGREEMENT;
(b) That such regulations apply uniformly to all new development
projects of the same uses within the City; and
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(v) Regulations that do not conflict with the Development Plan. The term
"do not conflict" means new rules, regulations, and policies which: (a) do not modify the
Development Plan, including, without limitation, the permitted land uses, the density or
intensity of use, the phasing or timing of Development of the Project, the maximum height
and size of proposed buildings on the Property, provisions for Dedication of land for public
purposes and Development Exactions, except as expressly permitted elsewhere in this
STATUTORY AGREEMENT, and standards for design, development and construction of
the Project; (b) do not prevent Owner from obtaining any Subsequent Development
Approvals, including, without limitation, all necessary approvals, permits, certificates, and
the like, at such dates and under such circumstances as Owner would otherwise be
entitled by the Development Plan; or (c) do not prevent Owner from commencing,
prosecuting, and finishing grading of the land, constructing public and private
improvements, and occupying the Property, or any portion thereof, all at such dates and
schedules as Owner would otherwise be entitled to do so by the Development Plan.
(vi) The City shall not be prohibited from applying Project Subsequent
Land Use Regulations that do not affect permitted uses of the land, density, design, public
improvements (including construction standards and specifications) or the rate of
development of the Development, nor shall the City be prohibited from denying or
conditionally approving any Subsequent Development applications on the basis of such
subsequent Land Use Regulations.
• 4.5 Other Public Agencies. It is acknowledged by the parties that other public
agencies not within the control of the City possess authority to regulate aspects of the
development of the Property separately from or jointly with the City, and this STATUTORY
AGREEMENT does not limit the authority of such other public agencies. The City shall
reasonably cooperate with other public agencies processing Development Approvals for
the Project.
4.6 Tentative Subdivision Map and Development Approvals Lifespan. The term
of any tentative subdivision map shall be in effect for a period of fifteen (15) years, and
may be extended pursuant to the provisions of the California Subdivision Map Act
(Government Code §§ 66410 et seq.) All Development Approvals shall not expire if
Owner commences substantial construction of the Project within one (1) year from the
Effective Date of this STATUTORY AGREEMENT. "Substantial Construction" means the
issuance of a building permit in furtherance of the Project.
4.7 Satisfaction of Conditions of Approval. Owner shall comply with any and all
conditions of approval for any entitlement, permit, or license it receives from the City.
4.8 Subsequent Entitlements. Prior to commencement of construction of the
Project, Owner shall be required to submit applications for any and all subsequent
entitlements, if any, consistent with the terms and conditions set forth in this STATUTORY
AGREEMENT.
4.9 City Records Inspection. Owner acknowledges and agrees that the City is
empowered to examine Owner's books and records, including tax returns. The City has
the power and authority to examine such books and records at any reasonable time,
including but not limited to, during normal business hours. If the City wishes to inspect
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the areas of the Property where the cannabis is being cultivated or manufactured, City
•
may do so at any time with no prior notice to Owner. In addition, City agrees that all of
its employees or agents which enter the cultivation, manufacturing, and curing areas shall
follow all of the policies and guidelines imposed on Owner's employees, including without
limitation, the wearing of any clothing or equipment to insure that no pests or impurities
shall enter the cultivation and curing areas.
ARTICLE 5. PUBLIC BENEFITS.
• 5.1 Intent. The parties acknowledge and agree that development of the
Property will result in substantial public needs which will not be fully met by the
Development Plan and further acknowledge and agree that this STATUTORY
AGREEMENT confers substantial private benefits on Owner which should be balanced
by commensurate public benefits. Accordingly, the parties intend to provide consideration
to the public to balance the private benefits conferred on Owner by providing more fully
for the satisfaction of the public needs resulting from the Project.
5.2 For the first year, Owner will pay the City a total of$220,000 as a Fee. This
fee is calculated based on $10.00 a square foot of permit space and a permit which allows
up to 22,000 sq. feet, among other factors.
5.3 In year two and year three, the Fee will increase to $12.50 per sq. foot for
a total of$275,000 per year, among other factors.
5.4 At the beginning of year four and year five, Owner will pay a Fee of'$15.00
per sq. foot for a total of$330,000 per year, among other factors.
5.5 The Fee schedule is as follows: The first Fee payment is due at the close
of the second quarter. Therefore, the first payment will be due on the last day of June
2018, the second and last payment for the first year is due on the last day of December
2018. For the years 2 through 15, the Fee schedule is as follows: divide the total Fee for
the respective year into four and make four equal payments due at the end of each quarter
of the respective year.
5. 1
6 The Fee is subject to reassessment by the City every five years. At the end
of year five, the City will set a new Fee which will be applied in years 6 through 10. At
the end of year 10, the City will set new Fee which will be applied in years 11 through 15.
No one factor is dispositive in the City's determination of the new Fee. The Cannabis
permit will expire at the close of the 15th year and will require the Owner to reapply with
the City for a new permit. If Owner and City cannot agree to a new Fee or Fees by
December 22, 2022, then this STATUTORY AGREEMENT will automatically terminate
on' December 23, 2022.
5.7 Further, Owner will pay a yearly payment of $50,000 each year to the City
that can be used to mitigate the impact of the cannabis business on the City and its
resources which includes but is not limited to, to use to pay a part of a police officer's
salary and/or benefits. This $50,000 amount will be due at the time the permit is issued.
Subsequent annual payments will be due on the permit issuance anniversary date. This
payment is due within thirty (30) days of issuance of permit and thereafter on the
anniversary of the issuance of permit.
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5.8 Jobs and Wage Creation.
5.8.1 Local Hiring. Owner agrees to use its reasonable efforts to hire
qualified City residents for jobs at the Project. Owner shall also use reasonable efforts to
retain the services of qualified contractors and suppliers who are located in the City or
who employ a significant number of City residents. At least 20 percent of the Project's
workforce shall consist of residents of the City. Job announcements shall be posted at City
Hall, along with proof that the job announcements were advertised in at least two
newspapers published, printed or distributed in the City and on various social media sites
accessible to the general public. In addition, Owner shall make a good faith effort to advertise
job announcements at local job fairs, on local radio and through public agencies and
organizations.
•
5.9 Development Agreement Administrative Fee Deposit. Owner shall be
responsible for all of the City's actual costs associated with processing Development
Approvals for the Project including, but not limited to, costs associated with the City's
review and processing of the Project, including but not limited to reviewing the Project's
entitlements, including all environmental clearance documents, permits, licenses and all
documents evidencing compliance with state and local law. As such, upon issuance of
its permit, Owner must deposit $15,000 with the City for the purpose of reimbursing the
City for any associated costs with processing the Project, as detailed above and
reimbursing the City for its actual costs incurred in drafting and processing this
STATUTORY AGREEMENT. Owner will be liable for the City's actual costs incurred in
processing future Development Approval applications. City acknowledges and agrees
that this payment is not merely a deposit, but is a cap on the amount of the City's actual
costs incurred in processing this STATUTORY AGREEMENT.
ARTICLE 6. DISTRIBUTION AND TRANSPORTATION
6.1 Transportation of Cannabis. All pick ups and drop offs of cannabis and
cannabis products into and out of the City of Baldwin Park shall be by the exclusive
distributor, Rukli, Inc., or such other company should Rukli, Inc. no longer hold that right.
Owner shall not, on its own or through any person or entity, arrange for pick ups or drop
offs of cannabis or cannabis products into or out of the City of Baldwin Park for any
purpose, except by the exclusive distributor.
6.2 Distribution of Cannabis. Owner shall distribute its cannabis and cannabis
products only throuh the City's exclusive distributor. Owner shall cooperate fully with t
the
City's exclusive distributor regarding the accounting for product, revenue and tax
collection.
6.3 Owner and the City's exclusive distributor shall reach their own agreement
regarding fees for the exclusive distributor's services.
ARTICLE 7. REVIEW FOR COMPLIANCE.
7.1 Periodic Review. The City Council shall review this STATUTORY
AGREEMENT annually, on or before each anniversary of the Effective Date, in order to
ascertain Owner's good faith compliance with this STATUTORY AGREEMENT. 'During
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the periodic review, Owner shall be required to demonstrate good faith compliance with
all the terms of the STATUTORY AGREEMENT.
•
7.2 Special Review. The City Council may order a special review of compliance
with this STATUTORY AGREEMENT at any time.
7.3 Review Hearing. At the time and place set for the review hearing,.Owner
shall be given an opportunity to be heard. If the City Council finds, based upon substantial
evidence, that Owner has not complied in good faith with the terms or conditions of this
STATUTORY AGREEMENT, the City Council may automatically terminate this
STATUTORY AGREEMENT notwithstanding any other provision of this STATUTORY
AGREEMENT to the contrary, or modify this STATUTORY AGREEMENT and impose
such conditions as are reasonably necessary to protect the interests of the City. The
decision of the City Council shall be final, subject only to judicial review.
7.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or
special review, the City Council determines that Owner is in compliance with this
STATUTORY AGREEMENT, the City shall issue a Certificate of Agreement Compliance
("Certificate") to Owner stating that after the,most recent periodic or special review, and
based upon the information known or made known to the City Council, that (i) this
STATUTORY AGREEMENT remains in effect and (ii) Owner is not in default. The City
shall not be bound by a Certificate if a default existed at the time of the periodic or special
review, but was concealed from or otherwise not known to the City Council, regardless of
kwhether or not the Certificate is relied upon by assignees or other transferees or Owner.
7.5 Failure to Conduct Review. The City's failure to conduct a periodic review
of this STATUTORY AGREEMENT shall not constitute a breach of this STATUTORY
AGREEMENT.
7.6 Cost of Review. The costs incurred by City in connection with the periodic
reviews shall be borne by the City. The Owner is not liable for any costs associated with
any City periodic review of this STATUTORY AGREEMENT. The Owner is not liable for
costs incurred for reviews.
ARTICLE 8. DEFAULTS AND REMEDIES.
8.1 Remedies in General. It is acknowledged by the parties that the City would
not have entered into this STATUTORY AGREEMENT if it were to be liable in damages
under this STATUTORY AGREEMENT, or with respect to this STATUTORY
AGREEMENT or the application thereof, except as hereinafter expressly provided.
Subject to extensions of time by mutual consent in writing, failure or delay by either party
to perform any term or provision of this STATUTORY AGREEMENT shall constitute a
default. In the event of alleged default or breach of any terms or conditions of this
STATUTORY AGREEMENT, the party alleging such default or breach shall give the other
party thirty (30) days' notice in writing specifying the nature of the alleged default and the
manner in which said default may be satisfactorily cured during any such thirty (30) day
period, the party charged shall not be considered in default for purposes of termination or
institution of legal proceedings.
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•
In general, each of the parties hereto may pursue any remedy at law or equity available
for the breach of any provision of this STATUTORY AGREEMENT through any state
court, except that the City shall not be liable in monetary damages, unless expressly
provided for in this STATUTORY AGREEMENT, to Owner, to any mortgagee or lender,
or to any successors in interest of Owner if successors in interest are permitted under this
STATUTORY AGREEMENT or mortgagee or lender, or to any other person, and Owner
covenants on behalf of itself and all successors in interest, if successors in inter"est are
. permitted under this STATUTORY AGREEMENT, to the Property or any portion thereof,
• not to sue for damages or claim any damages:
(i) For any breach of this STATUTORY AGREEMENT or for any cause
of action which arises out of this STATUTORY AGREEMENT; or
(ii) For the impairment or restriction of any right or interest conveyed or
provided under, with, or pursuant to this STATUTORY AGREEMENT, including,without
limitation, any impairment or restriction which Owner characterizes as a regulatory taking
or inverse condemnation; or
(iii) Arising out of or connected with any dispute, controversy or issue
regarding the application or request for a permit for cultivation, manufacturing and/or
distribution or interpretation or effect of the provisions of this STATUTORY AGREEMENT.
Owner hereby agrees to waive and/or release the City of Baldwin Park for any claim or
claims or cause of action, not specifically and expressly reserved herein, which.Owner (..
may have at the time of execution of this STATUTORY AGREEMENT relating to any
application to the City of Baldwin Park including but not limited to, any application for any
type of distribution, cultivation or manufacturing permit, any application for any
distribution, cultivation or manufacturing rights, or any application for any distribution,
cultivation or manufacturing license from the City of Baldwin Park.
CALIFORNIA CIVIL CODE SECTION 1542
•
The Owner expressly acknowledges that this STATUTORY AGREEMENT is
intended to include in its effect, a waiver without limitation, of all claims or causes of
actions which have arisen and of which each side knows or does not know, should have
known, had reason to know or suspects to exist in their respective favor at the time of
execution hereof, that this STATUTORY AGREEMENT contemplates the extinguishment
acknowledges and waives and
specifically
of an such Claim or Claims. The Owner 9
Y
releases the rights granted to Owner under California Civil Code Section 1542, which
states as follows:
" A general release does not extend to claims which the creditor does not
• know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or
her settlement with the debtor."
By expressly waiving the rights granted to Owner under California Civil Code
Section 1542, the Owner represents that they understand and acknowledge that if they
have suffered any injury, damage as a result of the application for or request for any permit
from the City of Baldwin Park and (i) they are not presently aware of any damage dr injury,
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or (ii) any damage or injury has not yet manifested itself, any claims for any such damage
or injury are forever released and discharged.
Nothing contained herein shall modify or abridge Owner's rights or remedies
(including its rights for damages, if any) resulting from the exercise by the City of its power
of eminent domain. Nothing contained herein shall modify or abridge Owner's rights or
remedies (including its rights for damages, if any) resulting from the grossly negligent or
malicious acts of the City and its officials, officers, agents and employees. Nothing herein
shall modify or abridge any defenses or immunities available to the City and its employees
pursuant to the Government Tort Liability Act and all other applicable statutes and
decisional law.
Except as set forth in the preceding paragraph relating to eminent domain, Owner's
remedies shall be limited to those set forth in this Section 8.1, Section 8:2, and
Section 8.3.
8.2 Specific Performance. The parties acknowledge that money damages and
remedies at law are inadequate, and specific performance and other non-monetary relief
are particularly appropriate remedies for the enforcement of this STATUTORY
AGREEMENT and should be available to all parties for the following reasons:
(i) Except as provided in Section 8.1, money damages are unavailable
against the City as provided in Section 8.1 above.
/ (ii) Due to the size, nature and scope of the Project, it may not be
practical or possible to restore the Property to its natural condition once implementation
of this STATUTORY AGREEMENT has begun. After such implementation, Owner may
be foreclosed from other choices it may have had to use the Property or portions thereof.
Owner has invested significant time and resources and performed extensive planning and
processing of the Project in agreeing to the terms of this STATUTORY AGREEMENT and
will be investing even more significant time and resources in implementing the Project in
reliance upon the terms of this STATUTORY AGREEMENT, and it is not possible to
determine the sum of money which would adequately compensate Owner for such efforts;
the parties acknowledge and agree that any injunctive relief may be ordered on an
expedited, priority basis.
8.3 Termination of STATUTORY AGREEMENT for Default of the City. Owner
may terminate this STATUTORY AGREEMENT only in the event of a default by the City
in the performance of a material term of this STATUTORY AGREEMENT and only after
providing written notice to the City of default setting forth the nature of the default and the
actions, if any, required by the City to cure such default and, where the default can be
cured,
the Cityhas
failed
to take such actions and cure such default within sixty (60) days
after the effective date of such notice or, in the event that such default cannot be cured
within such sixty (60) day period but can be cured within a longer time, has failed to
commence the actions necessary to cure such default within such sixty (60) day period
and to diligently proceed to complete such actions and cure such default.
8.4 Owner Default. No building permit shall be issued or building. permit
application accepted for any structure on the Property after Owner is determined by the
•
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City to be in default of the terms and conditions of this STATUTORY AGREEMENT until
such default thereafter is cured by Owner or is waived by the City. If the City terminates
this STATUTORY AGREEMENT because of Owner's default, then the City shall retain
any and all benefits, including money or land received by the City hereunder.
ARTICLE 9. THIRD PARTY LITIGATION.
9.1 General Plan Litigation. The City has determined that this STATUTORY
AGREEMENT is consistent with its General Plan. Owner has reviewed the General Plan
and concurs with the City's determination. The City shall have no liability under this
STATUTORY AGREEMENT or otherwise for any failure of the City to perform under this
STATUTORY AGREEMENT, or for the inability of Owner to develop the Property as
contemplated by the Development Plan, which failure to perform or inability to develop is
as. the result of a judicial determination that the General Plan, or portions thereof, are
invalid or inadequate or not in compliance with law, or that this STATUTORY
AGREEMENT or any of the City's actions in adopting it were invalid, inadequate, or not
in compliance with law. Notwithstanding the foregoing, neither party shall contend in any
administrative or judicial proceeding that any STATUTORY AGREEMENT or any
Development Approval is unenforceable based upon federal, state or local statutes,
ordinances or regulations in effect on the Effective Date.
9.2 Hold Harmless Agreement. Owner hereby agrees to, and shall hold City,
its' elective and appointive boards, commissions, officers, agents, and employees
harmless from any liability for damage or'claims for damage for personal injury, including
death, as well as from claims for property damage which may arise from Owner or
Owner's contractors, subcontractors, agents, or employees operations under this
STATUTORY AGREEMENT, whether such operations be by Owner, or by any of Owner's
contractors, subcontractors, agents, or employees operations under this STATUTORY
AGREEMENT, whether such operations be by Owner, or by any of Owner's contractors,
subcontractors, or by any one or more persons directly or indirectly employed by, or acting
as. agent for Owner or any of Owner's contractors or subcontractors. Owner agrees to
and shall defend City and its elective and appointive boards, commissions, officers,
agents and employees from any suits or actions at law or in equity for damage caused,
or alleged to have been caused, by reason of any of the aforesaid operations.
9.3 Indemnification. Owner shall defend, indemnify and hold harmless City and
defend its agents, officers and employees against and from any and all liabilities,
demands, lawsuits, claims, government claims, actions or proceedings and costs and
expenses incidental thereto (including costs of defense, settlement and reasonable
attorneys' fees), which the City or its City Council members may suffer, inbur, be
responsible for or pay out as a result of or in connection with any challenge to the legality,
validity or adequacy of any of the following: (i) this STATUTORY AGREEMENT and the
concurrent and subsequent permits, licenses and entitlements approved for the Project
or Property; (ii) if applicable, the environmental impact report, mitigated negative
declaration or negative declaration, as the case may be, prepared in connection with the
development of the Property; and (iii) the proceedings or procedure undertaken in
connection with the adoption or approval of any permit or any of the above. In the event
of any legal or equitable action or other proceeding instituted by anyone against the City
or its City Council, any third party (including a governmental entity or official) challenging
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the validity of any provision of this STATUTORY AGREEMENT or the procedure.upon
which the permit was issued, or any portion thereof as set forth herein, the parties shall
mutually cooperate with each other in defense of said action or proceeding.
Notwithstanding the above, the City, at is sole option, may tender to Owner and Owner
agrees to accept any such tender of the complete defense of any third party challenge as
. described herein. In the event the City elects to contract with special counsel to provide
• for such a defense, the City may do so in its sole discretion and Owner will be required to
pay the defense costs of the City as the costs are incurred. Owner agrees to pay any
and all attorneys' fees or retainer regarding the selection of counsel, and Owner shall pay
all costs and all attorneys' fees related to retention of such counsel.
9.4 Environmental Contamination. Owner shall indemnify and hold the City, its
officers, agents, and employees free and harmless from any liability, based or asserted,
upon any act or omission of the Owner, its officers, agents, employees, subcontractors,
predecessors in interest, successors, assigns and independent contractors, excepting
any acts or omissions of City as successor to any portions of the Property dedicated or
transferred to City by Owner, for any violation of any federal, state or local law, ordinance
or regulation relating to industrial hygiene or to environmental conditions on, under or
about the Property, including, but not limited to, soil and groundwater conditions, and
Owner shall defend, at its expense, including attorneys' fees, the City, its officers, agents
and employees in any action based or asserted upon any such alleged act or omission.
The City may in, its discretion participate in the defense of any such claim, action or
proceeding. The provisions of this Section 9.4 do not apply to environmental conditions ,
that predate Owner's ownership or control of the Property or applicable portion; provided,
however, that the foregoing limitation shall not operate to bar, limit or modify any of
Owner's statutory or equitable obligations as an owner or seller of the Property.
9.5 The City May Choose its Own Counsel. With respect to Sections 9.1
through 9.4, the City reserves the right to select its own special counsel or otherwise
engages special counsel to defend the City hereunder, which fees will be paid by Owner.
9.6 Accept Reasonable Good Faith Settlement. With respect to Article 9, the
City shall not reject any reasonable good faith settlement. Before accepting any such
settlement offer, City shall notify Owner of the offer and provide Owner with a copy of the
offer. If Owner disagrees with the City's intention to accept the offer, prior to the City's
response to any offer, the parties shall meet and confer in order to attempt to resolve the
parties' differences. If the City does reject a reasonable, good faith settlement that is
acceptable to Owner, Owner may enter into a settlement of the action, as it relates to
Owner, and the City shall thereafter defend such action (including appeals) at its own cost
and be solely responsible for any judgments rendered in connection with such action.
This Section 9.6 applies exclusively to settlements pertaining to monetary damages or
damages which are remedial by the payment of monetary compensation. Owner and the
City expressly agree that this Section 9.6 does not apply to any settlement that requires
an exercise of the City's police powers, limits the City's exercise of its police powers, or
affects the conduct of the City's municipal operations.
. 9.7 Administrative,Actions. The parties acknowledge that in the future there
could be claims, enforcement actions, requests for information, subpoenas, criminal or
civil actions initiated or served by either the Federal Government or the State Government
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in connection with Owner's development, operation and use of the Property (collectively,
"Actions"). The City shall not disclose information and documents to the Federal
Government or State Government, its officers, or agents regarding any party to this
STATUTORY AGREEMENT absent a grand jury subpoena, civil or administrative
subpoena, warrant, discovery request, summons, court order or similar process
authorized under law hereinafter called "Governmental Notice". If any Action is brought
by either the Federal or State Government,
City shall immediately notify Owner of the
nature of the Claim including all correspondence or documents submitted to the City.
Prior to responding to the Governmental Notice, City shall provide Owner ten (10) days
from the date of such notice subpoena or the like to serve and obtain on the City a
protective order, or the like, from a court of competent jurisdiction.
9.8 Survival. The provisions of Sections 9.1 through 9.7 inclusive, shall survive
the termination or expiration of this STATUTORY AGREEMENT, until such time as the
uses of the Property established in the Development Plan are permanently terminated.
ARTICLE 10. THIRD PARTY LENDERS, ASSIGNMENT & SALE.
10.1 Encumbrances. The parties hereto agree that this STATUTORY
AGREEMENT shall not prevent or limit Owner, in any manner, at Owner's sole discretion,
from encumbering the Property or any portion thereof or any improvement thereon by any
mortgage, deed of trust or other security device securing financing with respect:to the
Property.
10.2 Lender Requested Modification/Interpretation. The City acknowledges that
the lenders providing such financing may request certain interpretations and modifications
of this STATUTORY AGREEMENT and agrees upon request, from time to time, to.meet
with Owner and representatives of such lenders to negotiate in good faith any such
request for interpretation or modification. The City will not unreasonably withhold its
consent to any such requested interpretation or modification provided such interpretation
or modification is consistent with the intent and purposes of this STATUTORY
AGREEMENT and as long as such requests do not minimize, reduce, curtail, negate or
in any way limit City's rights under this STATUTORY AGREEMENT.
ARTICLE 11. MISCELLANEOUS PROVISIONS.
11.1 Entire Agreement. This STATUTORY AGREEMENT sets forth and
contains the entire understanding and agreement of the parties, and there are no oral or
written representations, understandings or ancillary covenants, undertakings or
agreements that are not contained or expressly contained herein. No testimony or
evidence of any such representations, understandings or covenants shall be admissible
in any proceeding of any kind or nature to interpret or determine the terms or conditions
of this STATUTORY AGREEMENT, provided, however, City at its option may rely on
statements by Owner's agents at the public hearings leading to the City's approval of the
project or on written documents by Owner's agents that are a part of the public record.
11.2 Severability. If any term, provision, covenant or condition of this
STATUTORY AGREEMENT shall be determined invalid, void or unenforceable, by a
court of competent jurisdiction, the remainder of this STATUTORY AGREEMENT shall
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not be affected thereby to the extent such remaining provisions are not rendered
impractical to perform taking into consideration the purposes of this STATUTORY
AGREEMENT. The foregoing notwithstanding, the provision of the public benefits set
forth in Article 5, including the payment of the fees set forth therein, are essential elements
of this STATUTORY AGREEMENT and the City would not have entered into this
STATUTORY AGREEMENT but for such provisions, and therefore in the event that any
portion of such provisions are determined to be invalid, void or unenforceable, at the City's
option this entire STATUTORY AGREEMENT shall terminate and from that point.on be
null and void and of no force and effect whatsoever. The foregoing notwithstanding, the
development rights set forth in Article 4 of this STATUTORY AGREEMENT are essential
elements of this STATUTORY AGREEMENT and Owner would not have entered into this
STATUTORY AGREEMENT but for such provisions, and therefore in the event that any
portion of such provisions are determined to be invalid, void or unenforceable, at Owner's
option this entire STATUTORY AGREEMENT shall terminate and from that point on be
null and void and of no force and effect whatsoever.
11.3 Interpretation and Governing Law. This STATUTORY AGREEMENT and
any dispute arising hereunder shall be governed and interpreted in accordance with the
laws of the State of California. This STATUTORY AGREEMENT shall be construed as a
whole according to its fair language and common meaning to achieve the objectives and
purposes of the parties hereto, and the rule of construction to the effect that ambiguities
are to be resolved against the drafting party shall not be employed in interpreting this
STATUTORY AGREEMENT, since all parties were represented by counsel in the
negotiation and preparation hereof.
11.4 Section Headings. All section headings and subheadings are inserted for
convenience only and shall not affect any construction or interpretation of this
STATUTORY AGREEMENT.
11.5 Singular and Plural; Gender, and Person. Except where the context
requires otherwise, the singular of any word shall include the plural and vice versa, and
pronouns inferring the masculine gender shall include the feminine gender and neuter,
and vice versa, and a reference to "person" shall include, in addition to a natural person,
any governmental entity and any partnership, corporation, joint venture or any other form
of business entity.
11.6 Time of Essence. Time is of the essence in the performance of the
provisions of this STATUTORY AGREEMENT as to which time is an element.
11.7 Waiver. Failure by a party to insist upon the strict performance of any.of the
provisions of this STATUTORY AGREEMENT by the other party, or the failure by a party
to exercise its rights upon the default of the other party, shall not constitute a waiver of
such party's right to insist and demand strict compliance by the other party with the terms
of this STATUTORY AGREEMENT thereafter.
11.8 No Third Party Beneficiaries. The only parties to this STATUTORY
AGREEMENT are Owner and the City. This STATUTORY AGREEMENT is made and
entered into for the sole protection and benefit of the parties and their successors and
assigns. There are no third party beneficiaries and this STATUTORY AGREEMENT is
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not intended, and shall not be construed, to benefit, or be enforceable by any other person
whatsoever.
• 11.9 This STATUTORY AGREEMENT when signed and executed by Owner and
the Mayor of Baldwin Park supercedes and renders null and void that certain non-
statutory municipal Development Agreement executed on or about December 29; 2017,
11.10 INTENTIONALLY BLANK •
11.11 Mutual Covenants. The covenants contained herein are mutual covenants
and also constitute conditions to the concurrent or subsequent performance by the party
benefited thereby of the covenants to be performed hereunder by such benefited,party.
11.12 Counterparts. This STATUTORY AGREEMENT may be executed by the
parties in counterparts, which counterparts shall be construed together and have the
same effect as if all of the parties had executed the same instrument.
11.13 Jurisdiction and Venue. Any action at law or in equity arising under this
STATUTORY AGREEMENT or brought by a party hereto for the purpose of enforcing,
construing or determining the validity of any provision of this STATUTORY AGREEMENT
shall be filed and prosecuted in the Superior Court of the County of Los Angeles, State of
California, and the parties hereto waive all provisions of federal or state law or judicial
decision providing for the filing, removal or change of venue to any other state or federal
t.
court, including, without limitation, Code of Civil Procedure Section 394.
11.14 Project as a Private Undertaking. It is specifically understood and agreed
by and between the parties hereto that the development of the Project is a private
development, that neither party is acting as the agent of the other in any respect
hereunder, and that each party is an independent contracting entity with respect to the
terms, covenants and conditions contained in this STATUTORY AGREEMENT. No
partnership, joint venture or other association of any kind is formed by this STATUTORY
AGREEMENT. The only relationship between the City and Owner is that of a government
entity regulating the development of private property and the owner of such property.
11.15 Further Actions and Instruments. Each of the parties shall cooperate with
and provide reasonable assistance to the other to the extent contemplated hereunder in
the performance of all obligations under this STATUTORY AGREEMENT and the
satisfaction of the conditions of this STATUTORY AGREEMENT. Upon the request of
either party at any time, the other party shall promptly execute, with acknowledgment or
affidavit if reasonably required, and file or record such required instruments and writings
and take any actions as may be reasonably necessary under the terms of this
STATUTORY AGREEMENT to carry out the intent and to fulfill the provisions of this
STATUTORY AGREEMENT or to evidence or consummate the transactions
contemplated by this STATUTORY AGREEMENT.
11.16 Eminent Domain. No provision of this STATUTORY AGREEMENT shall be
construed to limit or restrict the exercise by the City of its power of eminent domain.
11.17 Agent for Service of Process. In the event Owner is not a resident of the
State of California or it is an association, partnership or joint venture without a member,
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•
partner or joint venturer, resident of the State of California, or if it is a foreign corporation,
then Owner shall file, upon its execution of this STATUTORY AGREEMENT, with the
Chief Executive Officer or his or her designee, upon its execution of this STATUTORY
AGREEMENT, a designation of a natural person residing in the State of California, giving
his or her name', residence and business addresses, as its agent for the purpose of
service of process in any court action arising out of or based upon this STATUTORY
AGREEMENT, and the delivery to such agent of a'copy of any process in any such action
shall constitute valid service upon Owner. If for any reason service of such process upon
such agent is not feasible, then in such event Owner may be personally served with such
process out of the County of Los Angeles and such service shall constitute valid service
upon Owner. Owner is amenable to the process so described, submits to the jurisdiction
of the Court so obtained, and waives any and all objections and protests thereto..
11.18 Authority to Execute. The person or persons executing this STATUTORY
AGREEMENT on behalf of Owner warrants and represents that he/she/they have the
authority to execute this STATUTORY AGREEMENT on behalf of his/her/their
corporation, partnership or business entity and warrants and represents that he/she/they
has/have the authority to bind Owner to the performance of its obligations hereunder.
Owner shall each deliver to City on execution of this STATUTORY AGREEMENT a
certified copy of a resolution and or minute order of their respective board of directors or
appropriate governing body authorizing the execution of this STATUTORY AGREEMENT
and naming the officers that are authorized to execute this STATUTORY AGREEMENT
on its behalf. Each individual executing this STATUTORY AGREEMENT on behalf of his
or her respective company or entity shall represent and warrant that:
(i) The individual is authorized to execute and deliver this STATUTORY
AGREEMENT on behalf of that company or entity in accordance with a duly adopted
resolution of the company's board of directors or appropriate governing body and in
accordance with that company's or entity's articles of incorporation or charter and bylaws
or applicable formation documents; and
(ii) This STATUTORY AGREEMENT is binding on that company or
entity in accordance with its terms; and
(iii) The company or entity is a duly organized and legally existing
company or entity in good standing; and
(iv) The execution and delivery of this STATUTORY AGREEMENT by
that company or entity shall not result in any breach of or constitute a default under any
mortgage, deed of trust, loan agreement, credit agreement, partnership agreement, or
other contract or instrument to which that company or entity is party or by which that
company or entity may be bound.
11.19 Nexus/Reasonable Relationship Challenges. Owner agrees that the fees
imposed are in fact reasonable and related to the mitigation of the negative impacts of
the business on the City and consents to, and waives any rights it may have now or in
the future to challenge the legal validity of, the conditions, requirements, policies or
programs set forth in this STATUTORY AGREEMENT including, without limitation, any
claim that the terms in this STATUTORY AGREEMENT constitute an abuse of the police
-20-
power, violate substantive due process, deny equal protection of the laws, effect a taking
of property without payment of just compensation, and/or impose an unlawful tax.
11.20 [RESERVED]
11.21 No Damages Relief Against City. The parties acknowledge that the City
would: not have entered into this STATUTORY AGREEMENT had it been exposed to
damage claims from Owner, or anyone acting on behalf of Owner for any breach thereof.
As such, the parties agree that in no event shall Owner, or Owners' partners, or anyone
acting on behalf of Owner be entitled to recover damages against City for breach of this
STATUTORY AGREEMENT.
11.22 Laws. Owner agrees to comply with all applicable state, regional, and local
laws, regulations, polices and rules. In addition, Owner further agrees to comply with all
•
issued entitlements, permits, licenses, including any and all applicable development
standards. Specifically, Owner agrees to comply with all applicable provisions of BPMC.
11.23 Compliance with Conditions of Approval. Owner agrees to comply with and
fulfill all conditions of approval for any and all entitlement, permits, and/or licenses it
receives from the City. All conditions of approval for all entitlements, permits, and/or
licenses are attached hereto and incorporated herein by this reference.
11.24 The City acknowledges that this STATUTORY AGREEMENT shall be read
consistent with any statewide or national regulation of commercial cannabis that is
promulgated in the future, either by legislative action or voter approval. In the event
national or statewide regulations are promulgated which decriminalize or legalize the
adult-use of marijuana for recreational use, this STATUTORY AGREEMENT shall govern
the conduct of the property under such future regulations.
•
-21-
IN WITNESS WHEREOF, the parties hereto have caused this STATUTORY
AGREEMENT to be executed as of the dates written above.
CITY :44' yor "
IN PARK GREEN HEALTH INDUSTRIES, LLC
: . ./‘ / /-ea..._,
Sigrid, /rpez, President
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APPROVED AS TO FORM:
ATTES . / 7
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By: 4( . �L114
Legal Counsel for
City ' erk Green Health Industries, LLC
APPROV II 'S O FO
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By:
-,•be N. Tara, NI
C ty Attorney
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-22-
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
EXHIBIT A •
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LEGAL DESCRIPTION
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PM 208-73-76 THAT POR IN TRA 12351 OF
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CASE NUMBER: DA 18-15
LOCATION: 13460 Brooks Drive
APN 8535-024-001
SOURCE: "Property Assessment Information System." Los Angeles County Office of
the Assessor. LA County I County of Los Angeles, Bureau of Land Management, Esri,
HERE, Garmin, INCREMENT P, USGS, EPA, USDA.
<http://maps.assessor.Iacounty.gov> June 18, 2018.
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EXHIBIT B
MAP DEPICTING PROPERTY
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VICINITY MAP
CASE NUMBER: DA 18-15
LOCATION: 13460 Brooks Drive
DAT• E: April 12, 2018
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CANNABIS PERMIT APPLICATION Page 1 of 7
CANNABIS PERMIT APPLICATION
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pF '( 4f/le, This application pertains to a discretionary permit. However, unlike typical
1 .1 ,N 11B of \`y�,t discretionary permits, this application process is a competitive process. Only 15
f THE':�.,°d 1 applicants will be selected for permit issuance. All fees paid are nonrefundable
.....--• 1 regardless of outcome.
\ � SAN�+GABRAE Li , ?
;Zoo A L EY\ ..?' / A "non-vesting" Development Agreement will need to be agreed upon in order to
,'PAb i. _ �ti`' ' receive a permit. This "non-vesting" Development Agreement is also discretionary II
-. grFDJANUP and involves a competitive
process.
rocess.
Due to City staffing constraints, Applicants are directed to schedule appointments with the Planning Division to
submit applications. Otherwise, there is no guarantee that a city planner will be available to take in applications.
without review from a cityplanner. Further, no mailed or e-mailed
Applications may not be dropped off
applications will be accepted.
Business Name: Green Health Industries, LLC
Business Contact (Individual): Sigrid Lopez
Business Contact Title: President
Business Contact Mailing Address: 13647 Jackson Street, Whittier, CA 90602
Primary Phone No.: (714) 472-6872
Emergency Contact Name & Phone No.: Artem Karapetyan (818) 422-2407
E-mail siglopezpr@gmail.com
Permit Being Requested: Please mark all applicable boxes below to identify which cannabis
operations permits you are seeking through this Cannabis Permit Application. A separate application
and fee is not necessary for each category type in which you are submitting an application for
consideration. One application and application fee suffices for all categories (e.g., Cultivation and
Manufacturing). However, you must include in your application package all the information
requested for each category you seek to operate. For example, if you are seeking to manufacture
AND cultivate, you will need to include both uses in your Business Plan, Neighborhood Plan,
Security Plan, etc.
0 Cultivation: Square Footage: 16,100
X❑ Manufacturing: Square Footage: 3,000
❑ Testing Square Footage:
Distribution (Transportation)
CANNABIS PERMIT APPLICATION Page 2 of 7
Section A: Primary Background Information
(Must be signed by all Principals)
Under penalty of perjury, and the laws of the State of California, I hereby declare and acknowledge that I
have personal knowledge of the information stated in this application and that the information contained
herein is true and correct. I also understand that the information provided in this application, except the
Safety and Security Plan in Section C and certain confidential information such as driver's license and
social security number which can be redacted, may be public information and subject to disclosure
under the California Public Records Act.
Principal Name: Sigrid Lopez
Principal Title: President
Principal Home or Cell Phone: (714)472-6872
Principal Home Address: 13647 Jackson Street, Whi 'er, CA 90602
/. i! �,f
Principal Signature. , Date: 3�6! `
Attachments: See Attac ment 1./
Receipt of background check and Live Scan
X Pictures (2) of applicant (two passport quality photographs 2" x 2")
X Copy of Social Security Card
X Copy of Valid Driver's License, Valid DMV issued ID Card or Valid Passport
X Proof of address (DMV-issued ID/driver's license, and/or recent utility bill under Principal's name)
Staff use only: Pass background check ❑
Add more pages as necessary to include signatures of all Cannabis Permit Principals (and
Landlord, if applicable).
1. List whether the applicant(s) has/have other licenses and/or permits issued to and/or revoked from
the applicant in the three years prior to the year of the permit application. This list should include
such other licenses and or permits relating to similar business activities as in the permit application.
If applicable, please list the type, current status, issuing/denying for each license/permit. Please
attach a separate document to fully explain, if necessary.
Not Applicable.
CANNABIS PERMIT APPLICATION Page 3 of 7
2. List any and all partners or principals who have been found guilty of (a) a violent felony, (b) a felony
or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude, or (c) the illegal use,
possession, transportation or distribution (or similar activities) related to controlled substances, as
defined in the Federal Controlled Substance Act, with the exception of medical cannabis-related
offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.
Please attach a separate document to fully explain, if necessary.
Mr. Karapetyan was convicted of a misdemeanor on March 4, 2015, for unlawfully opening a marijuana
(medical) business in July of 2014. He had never had such issue before that incident and has not had such
an issue since that time.
Section B: Business Organizational Structure/Status
1. Describe the commercial cannabis business organizational structure/status:
The proposed commercial cannabis business will be operated by Green Health Industries, LLC, a newly
formed company. Articles of Organization and a Statement of Information have been filed with the California
Secretary of State.
2. Attach proof of status, such as articles of incorporation, by-laws, partnership agreements, and other
documentation as may be appropriate or required by the City.See Attachment 3 (Articles of Organization)
Section C: Commercial Cannabis Business Description and Location
1. Statement of Purpose of Commercial Cannabis Business (a separate sheet may be attached):
Applicant will operate a medical marijuana cultivation and manufacturing business at the proposed location.
Applicant will eventually, in compliance with state and City of Baldwin Park laws, operate its cultivation and
manufacturing business for recreational use as well.
2. Proposed Location of Business (include APN's): 13460 Brooks Drive, Baldwin Park, CA 91706;
APN 8535-024-001.
3. Name and Address of Property Owner: Home Pan Development, Inc. 13640 Brooks Drive, Baldwin Park,
4. Name and Address of School Closest to Proposed Location: Walnut Elementary School
4701 Walnut Street, Baldwin Park, CA 91706
CANNABIS PERMIT APPLICATION Page 4 of 7
5. Description of neighborhood around the proposed location (i.e., surrounding uses, nearby sensitive
uses such as churches, schools, parks, or libraries) and transit access to site. A separate sheet may
be attached.
The proposed site/building is located in a light industrial business complex at the end of a cul-de-sac of Brooks
Drive within a light industrial portion of the City of Baldwin Park. It is surrounded by industrial buildings
on the east, west and north. There is a utility easement on the south and the backside of a residential
neighborhood (more than 50 feet away). See Attachment 4.
Required Plan Submittals (Plans shall be drawn to scale):
1. Site Plan for each potential location. The Site Plan must be dimensioned and show the entire parcel,
including parking and additional structures. See Attachment No. 6.
2. Conceptual Building Elevations if new construction. If existing buildings, include any proposed exterior
building alterations if applicable. See Attachment No. 7.
3. Floor Plans, including any proposed interior alterations. See Attachment No. 7.
4. Vicinity Map. It is the Applicant's responsibility to prove to the City that the cannabis operation's location is
at least 600 feet from all sensitive uses and 50 feet from all residential zones. The measurement is from
property airspace line to property airspace line on each lot. However, in the case of commercial
condominiums, measurement is taken from the airspace property line. See Attachment No. 4.
5. Photos of the site and building(s) from all sides/directions. See Attachment No. 9.
Section D: Required Supplemental Information
This information is required for this application to be considered complete. Attach the following reports to the
application.
AXI Neighborhood Compatibility Plan Attachment No. 11.
O Safety and Security Plan Attachment No. 12.
U Air Quality Plan Attachment No. 18.
n Business Plan Attachment No. 10.
E Background Check Authorization Form and Live-Scan Request and Receipt * Attachment Nos. 1B and 2B.
The applicant must submit to and pass a complete and thorough Live Scan and Background Check to be
conducted by the Baldwin Park Police Department. All Live Scan and Background Check results must be
submitted to and reviewed and cleared by the Baldwin Park Police Department.
* Both must be submitted for State Clearance:
❑ State Clearance by Baldwin Park Police Department
CANNABIS PERMIT APPLICATION Page 5 of 7
Section E: Final Location Information
Multiple sites per application can be considered. Attach proof of ownership of the site or signed statement from
the owner. A signed lease document will also suffice. See Attachment No. 12.
Section F: Essential Supplemental Information
This information is required and you must submit this as part of meeting the requirements for a completed
application. Check the box evidencing that you have submitted and attached to this Application the items
described below.
X Suitability of the proposed property: Applicant must demonstrate that the proposed location(s) exceeds
all buffer zones established in the Cannabis Ordinance. See Attachment No. 4.
X Suitability of security plan: The Applicant's security plan must include the presence of security
personnel on premises or patrolling the premises twenty-four (24) hours per day. The Applicant's
security plan must demonstrate a method to track and monitor inventory so as to prevent theft or
diversion of cannabis. The Applicant's security plan must describe the enclosed, locked facility that will
be used to secure or store cannabis when the location is open and the steps taken to ensure cannabis
is not visible to the public. The Applicant's security plan must include measures to prevent the diversion
of cannabis to persons under the age of twenty-one (21). Attachment Nos. 12 and 13.
n Suitability of business plan and financial record keeping: The Applicant must describe a staffing plan
that will provide and ensure safe dispensing, adequate security, theft prevention, and the maintenance
of confidential information. Attachments No. 10, 12, 13, 16 and 17.
IXC Criminal history: Applicant must state that no Manager or Principal of an applicant has any violent or
serious felony conviction(s) as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony
conviction involving fraud, deceit or embezzlement. Applicant must identify any pending criminal
complaint(s). The Applicant must certify, as a condition of maintaining the permit, that it will not employ
any person with any type of violent or serious felony conviction(s) as specified in Sections 667.5 and
1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement. Applicants
must certify as a condition of maintaining the permit that they will not employ as managers or
employees any person with any controlled substance related misdemeanor conviction. Applicant certifies to
all of the above.
X Regulatory compliance history: Where an Applicant, its principal or managers own or operate other
businesses, including medical cannabis facilities in other jurisdictions, Applicant must provide a record
of any citations, sanctions, investigations, suspensions or any time in which Applicant has had their
license, permit, registration or authorization revoked for any reason, including criminal, patient safety,
workplace safety, wage and hour, discrimination. Applicant must identify whether it has had a permit or
license revoked by any city or the State of California. Applicants must also identify any administrative
penalties assessed against their business. Not applicable.
n Good legal standing: Applicant must certify that the Cultivation and/or Manufacturing facility, including
its principals and managers acting in their own official capacities, have not violated any local, state or
federal tax, environmental, consumer protection, food safety, workplace safety, discrimination, human
rights, employment, labor or other laws relevant to the operation of a cannabis business in the state.
See Attachment No. 16.
X❑Community engagement: Applicants should identify any involvement in the community, other non-profit
association, or neighborhood association. Applicant should identify the percentage of employees it
guarantees will be hired from the City of Baldwin Park, if any. Applicant should identify if it is a minority-
owned business. Applicant should have a comprehensive strategy to recruit, hire, promote and train a
diverse workforce, including women, people of color, veterans, people with disabilities, LGBTQ
individuals and immigrants. See Attachment Nos. 15 and 16.
1
•
CANNABIS PERMIT APPLICATION Page 2 of 7
Section A: Primary Background Information
(Must be signed by all Principals)
Under penalty of perjury, and the laws of the State of California, I hereby declare and acknowledge that I
have personal knowledge of the information stated in this application and that the information contained
herein is true and correct. I also understand that the information provided in this application, except the
Safety and Security Plan in Section C and certain confidential information such as driver's license and
social security number which can be redacted, may be public information and subject to disclosure
under the California Public Records Act.
Principal Name: Artem Karapetyan
Principal Title: Manager
Principal Home or Cell Phone: (818) 422-2407
Principal Home Address: 128 Sinclair Avenue, Apt. 3, Glendale, CA 91206
Principal Signature: Date: //— 3 0 - a 0/7
Attachments: See Attachment 2.
Receipt of background check and Live Scan
X Pictures (2) of applicant (two passport quality photographs 2" x 2")
X Copy of Social Security Card
X Copy of Valid Driver's License, Valid DMV issued ID Card or Valid Passport
X Proof of address (DMV-issued ID/driver's license, and/or recent utility bill under Principal's name)
Staff use only: Pass background check ❑
Add more pages as necessary to include signatures of all Cannabis Permit Principals (and
Landlord, if applicable).
1. List whether the applicant(s) has/have other licenses and/or permits issued to and/or revoked from
the applicant in the three years prior to the year of the permit application. This list should include
such other licenses and or permits relating to similar business activities as in the permit application.
If applicable, please list the type, current status, issuing/denying for each license/permit. Please
attach a separate document to fully explain, if necessary.
Not Applicable.
CANNABIS PERMIT APPLICATION Page 6 of 7
n Environmental impact: Application should indicate if the business uses renewable energy sources.
Attachment No. 14.
0 Labor relations: Applicant shall state whether it provides employer-paid health insurance benefits for its
employees as required by state and/or federal law. Applicant must establish that it provides equipment,
standards and procedures for the safe operation of its facilities and engages employees on best
practices. Applicant should identify if it provides training and educational opportunities for employee
development. Applicant must certify that neither it nor its Principals have any previous record of
violating federal or state laws relating to workplace safety, wages and compensation, discrimination, or
union activity. Attachment Nos. 10, 13 and 16.
C Mitigation fees: The mitigation fee the business is willing to pay to the City must be included in the
Development Agreement. A separate fee shall be identified for each cannabis operation category (i.e.,
Cultivation, Manufacturing, Testing, and Distribution/Transportation). The fee for cultivation will be
calculated based on square footage. The fee for other categories shall be proposed by each applicant.
Mitigation fees will be negotiated with staff and included in the Development Agreement.
X Are you willing to voluntarily donate $50,000 to the City of Baldwin Park towards the salary of one
Police Officer? Yes.
Section G: Fees
Please attach a cashier's check or money order made payable to the "City of Baldwin Park" for the following
fees:
IXI LiveScan fee: $48.00
AXI Background check fee: $937.50
X Cannabis Permit Application/Development Agreement Fee: $2,857.50
Staff use only:
Date of initial application: 11 OD I 1
Number assigned to application: (A ) ( I - 31
Date fee received: I 1 f
Date application reviewed:
Date Proof of ownership was verified or a signed and notarized statement from the
property owner was received:
Planning Division
Li Incomplete Application
❑ Complete Application
Cannabis Subcommittee
❑ NOT In Compliance with Cannabis Ordinance Locational Criteria
CANNABIS PERMIT APPLICATION Page 7 of 7
❑ In Compliance with Cannabis Ordinance Locational Criteria
IFI Not Recommended for Council Consideration
❑ Recommended for Council Consideration
A
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