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HomeMy WebLinkAboutORD 1417 ORDINANCE 1417 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 MEDICAL GRADE FARMS BP FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 5148 BLEECKER STREET (APN 8414-004-005) 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 1417 Page 2 WHEREAS, as required by law, the City Council gave first reading to the proposed ordinance on April 18, 2018. 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: NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Baldwin Park, California, as follows: 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 1417 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, Industrial 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. Medical Grade Farms BP plans to be an active member of the Community and a socially responsible corporate citizen. Their focus is on the following key areas: Education, volunteerism, Corporate Community Engagement and Training and Development. Security of their facility is of utmost importance in order to not have a negative impact upon the surrounding neighborhood and community as a whole. Exterior and interior video surveillance is proposed in addition to collaborating with the City's Police Department. 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 shallg o into effect and be in full force and operation from and after thirty (30) days after its final reading and adoption.tion. PASSED AND APPROVED ON THE 2nd day of May, 2018 MANUEL LOZANO, MAYOR Ordinance 1417 Page 4 ATTEST / / A1i i ALEA ilir ILA, CITY CLER 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. 1417 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 MEMBERS: o e / AL J i VI ' AVILA, CITY CL RK DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BALDWIN PARK AND MEDICAL GRADE FARMS, BP ARTICLE 1. PARTIES AND DATE. This Government Code Statutory Development Agreement ("STATUTORY AGREEMENT") is intended to replace the previous non-statutory municipal Development Agreement, and is dated *A3142018 j ,2018 for references purposes only and is entered into between (i) the City of Baldwin Piark ("City"), a California municipal corporation, and (ii) Medical Grade Farms, BP, a California Cooperative Corporation ("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 Jenome Research previously entered into a non- statutory municipal 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 Project 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 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 or from 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 exclusive distributor 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. -2- ARTICLE 3. GENERAL TERMS. 3.1 Definitions and Exhibits. The followsng terms when used in this STATUTORY AGREEMENT shall be.defined 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 necessaryconstructionfor e infrastructure ucture and public facilities to be constructed including, but not limited to: grading, the the construction of related to the Project whether located within or outside the Property, buildings and structures, and the installation of landscaping. 3.1 .5 "Development" If applicable, includes grading, construction or installation of public and private facilities right ility afterthe repair constructionstand ruct any private building, structure, improvement or completion thereof; provided, however, thelr, or Propertynstruction take place within the Term of this STATUTORY AGREEMENT on 3.1.6 "Development Approvals" If applicable, means other a vtitl ents est for the Development of the Property, including any and all conditions of app subject to approval or issuance by the City in connection with' Development of the Property. Approvals" also include both the Existing Development Approvals and the "Development Subsequent Development Approvals approved or issued by the City that are consistent with this STATUTORY AGREEMENT. 3.1 .7 "Development Plan" If applicable,applicable deveng Development lopment opment of the Approvals and the Existing Land Use RegulationsppI cable to 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. 3.1 .10"Existing Development Approvals" If applicable,licable, means all Development Approvals approved or issued prior to or on the Effective Date. Existing Development Approvals include the approvals setforth in Section ont3e Da and all other approvals which are a matter of public record prior to or on the Eff3.1 .11 "Existing Land Use Regulations" 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. 3.1.12 "Land Use Regulations" If and whereapplicable 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 Medical Grade Farms, BP, a California Cooperative Corporation. 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 permitsand 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 or add to 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 -4- 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 for storing any products, supplies or equipment related to any such activities, 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 requiredsb ewquent uent to the Effective Date in connection with development of the Property, including limitation, subdivision improvement agreements that r nclude,uire the buta a not limited rovision of to, all s or other securities. Subsequent DevelopmentApprovals 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 )n the Property at such times with the Development Plan and hisin such sequences as Owner may choose consistent STATUTORY AGREEMENT. 3.1.22"Subsequent Land Use Regulations" If applicable means any Land Use Regulations defined in Section 3. 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 and thearried out only Devel Development in accordance with the terms of this STATUTORY Plan, if any. In the event of conflict an uncertainty heof this STATUTORY een this STATUTORY AGREEMENT and the Development PI provisions 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 the application randcel document Number of$�' 1 n 004-005 and is more particularly described Section 3.2 and incorporated herein. 3.5 Term. The parties agree that the Term of this STATUTORY AGREEMENT t shall be fifteen (15) years commencing on the Effective Date subject to the written extension and early termination provisions AGREEibed in this STATUTORY AGREEMENT. MENT, this STATUTORY AGREEMENT Upon termination of this STATUTORY shall be deemed terminated and of no further force and effect, except terms that are F_ expressly stated in this STATUTORY AGREEMENT to survive termination without the need of further documentation from the parties hereto. The STATUTORY 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 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 Mitigation Fee and failure to timely pay the $50,000 towards the police salary or benefits. Failure to pay any fees due to the City under this STATUTORY AGREEMENT. 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 -6- (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 belowis �sAlln oti es shall be addressed in the United States l postage prepaid, addressed to the recipient named as follows: If to the City: Chief Executive Officer 14403 E. Pacific Avenue Baldwin Park, CA 91706 If to Owner: Sergio Torres, CEO 5148 Bleecker St. Baldwin Park, CA 91706 With a copy to: Jade Effect, LLC 4424 Huntington Dr. South Los Angeles, CA 90032. 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 aliddress, or d the both. chNotices given before actual receipt of notice of change shall not be nge. 3.8 Validity of this STATUTORY AGREEMENT. Owner wnthe other checCiityneg tchh acknowledge that neither party has made any representations enforceability or validity of any one or a ore that nlelons of ither party s�halSal ege is n AGREEMENT. The parties acknowledge andgany administrative or judicial proceeding thatthe entering into or the GREEMENT violates federalrforrstate lawwithobligations created in this STATUTORY A 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 private cannabis lawenefit esrand upegulOaon t ns, Fee shall include City's cost to research cannabis adraft cannabis ordinance, conduct public taken by meetings, C tyan furthelrance of medical and opment agreements, process applications, and any other acts 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 facilityin accordance with and to the extent of the Development Plan and/or application. The Property • { 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, and the design, improvement, occupancy and construction standards and specifications applicable to development of the Property shall be the Development Plan. 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. Such changes shall include a modification or addition to the present location of Owner's Property. If approved, any such change in the Existing Development Approvals shall be considered an additional Existing Development Approval. Further, should City amend its Municipal Code or Land Use Regulations to allow the issuance of cannabis permits for uses other than those presently permitted by the City, for example to allow for retail sales, retail delivery, microbusinesses, or other cannabis operations allowed under State law, City shall give priority for such permits to Owner. 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. -8- �r (iii) Regulations governing engineering construction State of Californdia s and and specifications including, any and all uniform codes adopted by the subsequently adopted by the City. (iv) Regulations which may be in co lict with the D d vesafety;nt pPov dedt the which are reasonably necessary to protect public health however, the following shall apply: (a) That to the extent possible, such regulations shall be applied and construed so as to provide Owner with the rights and assurances provided in this STATUTORY AGREEMENT; (b) That such regulations apply uniformly to all new development projects of the same uses within the City; and (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 Developmente of he fo Ded cat on of land for publthe maximum hc t and size of proposed buildings on the Property, provisions 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 rocod pr wing, prosecuting, and finishing grading of the land, constructing public 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 beprohibited the basis of such from denying or conditionally approving any Subsequent Development applications 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 pos o ntl wi h ths e Ci y,to and this STATUTORY gulate aspects of the development of the Property separately frno ) Y AGREEMENT does not limit the authority of such ther public Deveeopment ApproCity valshfolr l reasonably cooperate with other public agencies processing the Project. • 4.6 Tentative Subdivision Map and Development Approvals Lifespan. The term of any tentative subdivision map shall be in of ffect for a period of the California fSubdivi ifteen Son Map A) years, anc may be extended pursuant to the provisions (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, provided the City maintains the confidentiality of Owner's private financial information to the furthest extent permitted by law: 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 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. Due to prevailing real estate market conditions, Owner's Property is limited to Canopy Space of less than 5,000 square feet, but Owner is seeking opportunities to increase Canopy Space to the maximum 22,000 square feet allowed by the City. 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 -10- the respective year into four and make four equal payments due at the end of each quarter of the respective year. 5.6 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 deterl be mination of appliedhenew Fee.s 11 ThehCa nnab s h 15. No one factor is dispositive in the City's permit will expire at the close of the 15th year and will require the Owner to reapplywith the City for a new permit. If Owner and City cannot agree automatically y term nate on ee or Fees by December 22, 2022, this STATUTORY AGREEMENT will December 23, 2022. Given the present State and Federal regulatory fluctuations and uncertainty over regulations governing cannabis businesses, as well as the present price volatility of cannabis products, Owner reserves the right to request from the City a reassessment of the Mitigation Fee before the end of years 5 and 10. The City shall give reasonable consideration ion tomarkthe econditions uest and that to make a good-faith assessment of the regulatory prompt such request by Owner. 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 to the cannabis rof a police officer'sess on eCity and its salaryavd/or resources which includes but is not limit , pay p benefits. A police officer so funded shall have surrou ndin art oa ehis/her and tospecifically nablysassist d duties to patrol and secure the Property and 9 in and facilitate the enforcement of City ordin in tthees, ules City.or The firstsons that$50 000 amounprohibit unpermitted cannabis businesses from operating will be due within 30 days from the time the it is issued.Tis payment s duew'th within payments will be due on the permit issuanceanniversary date. thirty (30) days of issuance of permit and thereafter on the anniversary of the issuance of the permit. 5.8 Jobs and Wage Creation. 5.8.1 Local Hiring. Owner agrees to use le effortstre o qualified City residents for jobs at the Project. Owner shall also use reasonab retain the services of qualified contractors and suppliers who are located in the City or who employ a significant number of City residents. if illnavailaOwner ble pos itions,t ons, such that atCommitted to aeast 40 l hiring and will aggressively recruit local residentso fort •ercent of the Pro'ect's workforce shall consist of residents of the Cit . Job announcements shall be posted at City Hall, along with proof th othedi te bib annouedincementCts were advertised in at least two newspapers published, printed y and on various social media sites accesaibnouncements atgeneral local ijobc. lfain as,dotn ionloca�lvrad oner sand hall make a good faith effort to advertise job through public agencies and organizations. 5.9 Development Agreement Administrative Fee Deposit. Owner shall be responsible for all of the City's actual olimited costs associated costsit 'associatedprocessing the Cityns . t Approvals for the Project including, but n 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. The City shall refund. to Owner that portion of the $15,000 deposit, if any, not actually incurred by the City. ARTICLE 6. DISTRIBUTION AND TRANSPORTATION 6.1 Transportation of Cannabis. All pick ups and drop off 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 through the City's exclusive distributor. Owner shall cooperate fully with 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 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, if the City determines that Owner is in breach of this STATUTORY AGREEMENT. Such determination shall be made in accordance with compliance review standards and processes uniformly and consistently applied to all cannabis operators in the City. ., 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 -12- 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. Owner is If' the inclusion of a compliance with periodic this special review, the City Council determines that STATUTORY AGREEMENT, the City shall issueCertificate Compliance ("Certificate") to Owner stating that after the most recent peo or speet and City that (i) this based upon the information known or made known to thiss not Councildefault. The City STATUTORY AGREEMENT remains in effect and (ii) Owner or shall not be bound by a Certificate if a default existed t to the City Ctime of e p perincil,odic or special review, but was concealed from or otherwise not known whether or not the Certificate is relied upon by assignees or other transferees or Owner. 7.5 Failure to Conduct Review. The Cit-'sfailure ua breach this STATUTORY of this STATUTORY AGREEMENT shall not constitute 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 EIMENTble �r The Owne any costs is not li ble fowitr any City periodic review of this STATUTORY AGRE costs incurred for reviews. ARTICLE 8. DEFAULTS AND REMEDIES. 8.1 Remedies in General. It is acknowledged NT e were rti s that bliable thin damag s nwould ot have entered into this STATUTORY AGREEME under this STATUTORY AGREEMENT, or withrespect exphereect to thisexprsTATUTORY AGREEMENT or the application thereof, excepta Subject to extensions of time by mutual consent in nAGREEMENT g, failure or Ishall const tuteay by either rta to perform any term or provision of this STATUTORYof default. In the event of alleged default or breach default any t rma h hall s or conditions o hi STATUTORY AGREEMENT, the party alleging such party thirty (30) days' notice in writing specifying the nature of the alleged default 30nd day the manner in which said default may be satisfaly cured in defautforpuaposesny ch ofterthirty mination or period, the party charged shall not be considered institution of legal proceedings. 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 that the City shall not be liable in monetary damages, Mes expressly court, exceptto anymortgagee prOwner, provided for in this STATUTORY AGREEMENT, to under ender, or to any successors in interest of Owner if successors in or totany other personerest are permitted and Ownes STATUTORY AGREEMENT or mortgagee or len covenants on behalf of itself and all successors in interest if sany p rtionsors in ethereof, are permitted under this STATUTORY AGREEMENT to the Property or not to sue for damages or claim any damages: • (I) For any breach of this STATUTORY AGREEMENTEor for any cause of action which arises out of this STATUTORY AGREEMENT; (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 of any such Claim or Claims. The Owner specifically acknowledges and waives and 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 or injury, 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. -14- 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 and otherr non-monetary relief damages and remedies at law are inadequate, and specific perform arep articularly 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, implementation be practical or posible to restore the Property to itsAfter sulcondition ch implementation, may of this STATUTORY AGREEMENT has begun. onions thereof. be foreclosed from other choices e and resourcest may have had to use the and perfo mroperty or ed ext nsv a planning and Owner has invested significant T processing of the Project in agreeing to the terms of this sSs nT TORY A nREE EN t id ad will be investing even more significant time and r esourreliance upon the terms of this STATUTORY AGREEMENT, and Owner fornot spossib e to determine the sum of money which would adequatelycompensate 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 UTORY AGREEMENT and only after by the City in the performance of a material term of this STAThe roviding written notice to the City of default setting efault andawhe e the defaultforth the nture of the cured, cantbe ions p required by the City to cure such actions, any, q curred, the City has failed to take such actions event that s and uch defauefaultwithin cann t(be)cuaed ys after the effective date of such notice or, in the within such sixty (60) day period but can be cured wihin a lsonger time (60)as f it period ed to commence the actions necessary to cure such default and to diligently proceed to complete such actions and cure such default. shall Owner Default. No building permit be issued or building permitafter Owner is determined by the application accepted for any structure on the Propertyuntil City to be in default of the terms and conditions of this STtTe TOCityR If the CEityE EN nates AGREEsuch default thereafter is cured by Owner or is waived by this STATUTORY AGREEMENT because of Owner's b efaule t,City then the Cit y shall retain any and all benefits, including money or land receivedy ARTICLE 9. THIRD PARTY LITIGATION. 9.1 General Plan Litigation. The City has determined has reviehat this wed the Gene�r I Plan TORY AGREEMENT is consistent with its General Plan. Ownerty under this and concurs with the City's determination. The Cit oflltof the City to perfoy shall have no lrm under this STATUTORY AGREEMENT or otherwise for any f 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, incur, 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 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. -16- 9.4 Environmental Contamination. Owner shall indemnify and hold the City, its officers, agents, and employees free and harmless from yemployees,ssubcont actors, or asserted, upon any act or omission of the Owner, its officers, agents, predecessors in interest, successors, assigns and independent contractors, ex any acts or omissions of City as successor to any portions of the Property dedicated or transferred to City by Owner, for any violation any federal, onmentalstate Condit ons on,ounider or nance or regulation relating to industrial hygiene or t env nd er about the Property, including, but not limitedto, ►Iathe City, its officersnagents s, and Owner shall defend, at its expense, including atrne ysfees, and employees in any action based or asserted e defense ofupon any ch anyllsuch claim, actioed act or n The City may in its discretion participate lenvironmental conditions proceeding. The provisions of this Section 9.4 do not apply to livable portion; provided, that predate Owner's ownership or control of the Property or app however, that the foregoing limitation shall not op operate toll ba , limitf the or modify oyfy anyy of Owner's statutory or equitable obligations as anowner 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 own special fees lw�l be paid by Own►ere . engages special counsel to defend the City hereunder, 9.6 Accept Reasonable Good Faith Settlement. With respect to Article 9, the City shall not reject any reasonable good fth offersettlement. nd provideBefore Ownerwithaccepting pyofthe ny such settlement offer, City shall notify Owner of the to thepf the offer. If Owner disagrees with the City's intention to accept the offer, prior y'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, o good faith tlssettlement t that to is acceptable to Owner, Owner may enter into a settlementat its own cost Owner, and the City shall thereafter defend such action (including appeals) and be solely responsible for any judgmentsrendered connection monetawith ry damagesoor n. This Section 9.6 applies exclusively to settlements pertaining to damages which are remedial by the payment es of tsettlemenary compensation. Ot wnehatrrequires and the City expressly agree that this Section 9.6 not apply to any 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, requets for Governmtion,ent or the State Governmubpoenas, eor nt civil actions initiated or served by either the Federalcollective) in connection with Owner's development, operation formationduse of and 'dothe umentseto the Federal "Actions"). The City shall not disclosepartyto this Government or State Government, its officers, r agents regardena, ing anyr to administrativei STATUTORY AGREEMENT absent a grandjury subpoena, warrant, discovery request, summons, court order or similar process authorized under law hereinafter called "Governmental Notice". If any ction is brought oth e by either the Federal or State Government, City shall immediately notify the City. nature of the Claim including all correspondence cr shall provide Owners ttnd o(10) days Prior to responding to the Government City from the date of such notice subpoena or the like to serve and obtain a protective order, t or the like, from a court of competent jurisdiction that prevents or limits the disclosure sought by the Governmental Notice. 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 hot 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, curtain, 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 approval by Owner's agents at the public hearings leading to the City's 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 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 -18- • development rights hts set forth in Article 4 of this STATUTORY AGREEMENT are essential 9 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 hall ben r�onstrueance id th as a the laws of the State of California. This STATUTORY AGREEMENT swhole 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 elthis STATUTORY AGREEMENT, since all parties were represented by counsor representative of its choosing 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 theother not or the ft ilure abyai partjof to exercise its rights upon the default of the other party, al such party's right to insist and demandstrict te compliance by the other party with the terms of this STATUTORY AGREEMENT th 11.8 No Third Party Beneficiaries.ficiaries. The only parties to this STATUTORY AGREEMENT are Owner and the City. ThisSTATUTORY of the Oartes and their successoNT is de and rs and entered into for the sole protection and benefitp assigns. There are no third party beneficiaries this be enforceablSTATUTORY byany oEh Mpe son ENT is not intended, and shall not be construed, to benefit or whatsoever. 11.9 This STATUTORY AGREEMENT when signed and executed by Owner and the Mayor of Baldwin Park supercedes and eoners uoland void r about Decehmbeat e29,rtain 2017 non- statutory municipal Development Agreement executed 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 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, 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 -20- 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 tisSTATUTORY AGREEMENT on behalf of Owner warrants and represents that he/she/they have 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 within duly adopted resolution of the company's board of directors or appropriate govg nd 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 constiute a default ef ur under a ny or mortgage, deed of trust, loan agreement, credit agreement, partnership ag 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 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 Ownersrpartnerrsach or anyone As such, the parties agree that in no event shall Owner, o i 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. IN WITNESS WHEREOF, the parties hereto have caused this STATUTORY AGREEMENT to be executed as of the dates written above. CITY OF = LDWIN PARK MEDICAL GRADE FARMS, BP f) � 111111111111 By: _S B y• anuel Lozano, Mayor •rgi• orres EO APPROVED AS TO FORM: / ATTEST: As I \0\/ By: By: .1/ //,,/., Jade Eff= t, LLC City CI V Criste - S mmers, Consultant for Medi, I Grade Farms, BP 4 1 • APPROVED AS ' O • '[0;____ By: -22- Robert N. Tafoya, City Attorney I • EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Real Property depicted on Tract 8706 Lot 11, Map Coordinates 39-F2, Census Tract 405002, Los Angeles County Assessor's Parcel No. 8414-004-005, located at 5148 Bleecker St., Baldwin Park, CA 91706. • 4 .. • ( EXHIBIT A -1- l • EXHIBIT B MAP DEPICTING PROPERTY [TO BE ATTACHED] EXHIBIT B OM F a. . v 'x RI RI • I j RI a/SSI t ONLY-1 ppyy \J C'2CIS VICINITY MAP CASE NUMBER: DA 18-08 LOCATION : 5148 Bleecker Street DATE: April 12, 2018 d_ NUB OF U', THE ,. SAN GABRIEL , VALLEY s i 1 CANNABIS PERMIT APPLICATION Page 1 of 7 CANNABIS PERMIT APPLICATION O •,!40 This application pertains to a discretionary permit. However, unlike typical HU of ti discretiona permits, this applicationprocess ispa competitive process. Only 15 PR� p V applicants wilbe selected for permit issuance. Ail fees paid are nonrefundable , , regardless of outcome. SAM} Et1 vALtEY .�* A "non-vesting Development Agreement will need to be agreed upon in order to - - - ti / receive a permit. This non-vesting Development Agreement is also discretionary ren.maal:/ and involves a competitive process. 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. Applications may not be dropped off without review from a city planner. Further, no mailed or e-mailed applications will be accepted. Business Name: Medical Grade Farms BP.A Cooperative Corporation Business Contact(individual): Sergio Ivan Torres Business Contact Title: License Holder: Director and Chief Executive Officer Business Contact Mailing Address: 5148 Bleecker St.. Baldwin Park, CA 91706 Primary Phone No.: (323) 972-3303 Emergency Contact Name&Phone No.: Moses Acosta: (562) 746-3186/Enrique Vega: (323) 573-5078 E-mail: inedicalgradefarmsbp@gmail.coni 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 p Y e to manufacture AND cultivate, you will need to include include both uses inour Business Plan, Neighborhood Y Pian Security Plan, etc. Cultivation: Square Footage: 5,000 sq. ft. gManufacturing: Square Footage: 800 sq. ft. 0 Testing Square Footage: N/A Distribution.(Transportation) 1,100 sq. ft. 1 2 • 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: Sergio Ivan Torres Principal Title: License Holder;Director and Chief Executive Officer Principal Home or Cell Phone: (323) 972-3303 Principal Home Address: 1016 French Street Santa Ana. CA 92701 Principal Signature: .e,,,,,,,i ..-�. -�---- Date: 09-12-2017 Attachments: -,_ Receipt of background check and Live Scan Pictures (2) of applicant (two passport quality photographs 2"x 2") si Copy of Social Security Card Copy of Valid Driver's License, Valid DMV issued ID Card or Valid Passport 1 11 Proof of address(DMV-issued ID/driver's license, and/or recent utility bill under Principal's name) Staff use only: Pass background check 0 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 thepermit If applicable, application. please list the type, current status, issuing/denying/d g enying for each license/permit. Please attach a separate document to fully explain, if necessary. The applicant Medical Grade Farms BP.A Cooperative Corporation. and its three (3) principals have had no prior licenses and/or permits issued and/or revoked. This will be the applicant's first license/permit. 2 3 CANPERMIT APPLICATION Pane 2 of 7 Section A: Primary Background Information (Must be signed by all Principals) Under penalty of perjury, and the taws 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: Moses Acosta Principal Title: Officer and Director of Security and Logistics Principal Home or Cell Phone: (562) 746-3186 Principal Home Address: 1116 E. Tucker St., Compton, CA 90221 Principal.Signature: -c. Date: 09-12-2017 Attachments: Receipt of background check and Live Scan Pictures(2) of applicant(two passport quality photographs 2"x 2") Copy.of Social Security Card Copy of Valid Driver's License, Valid DMV issued ID Card or Valid Passport Proof of address(DMV-issued ID/driver's license, and/or recent utility bill under Principal's name) Staff use only: Pass background check 0 Add morees a p g 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/orermits issued Issued to and/or revoked from the applicant in the three years rior to the P yearof theermit application.p pp kation. This list should such other licenses and or permits relatingto similar businessincludeca activities as in the application. 'o permitti n. If applicable, please list thepP type, current status, issuing/denying for each license/permit. Please attach a separate document to fully explain, if necessary. Ts. , 1' ast _' ..,' a _a eF._i sBP. A.Co. ,e • -e iy s , , '_� ', . ,ave had no rior licenses and/or ermits issued and/or revoked. This will be the a licant's first license/permit. 3 4 CANNABIS PERMIT APPLICATION Pape 2 ofT 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: Enrique Vega Principal Title: Officer and Director of Employee,.Community and Government Relations Principal Home or Cell Phone:. (323) 573-5078 Principal Home Address: 63201/2 Gotham St.. Bell Gardens. CA 90201 Principal Signature: ----" Ask Date: 09-14-2017 Attachments: Receipt of background check and Live Scan Pictures (2)of applicant(two passport quality photographs 2"x 2") Copy of Social Security Card Copy of Valid Driver's License, Valid DMV issued ID Card or Valid Passport Proof of address(DMV-issued ID/driver's license, and/or recent utility bill under Principal's name) Staff use only: Pass background check 0 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. The applicant Medical Grade Farms BP,A Cooperative Corperation, and its three (3)principals have had no prior licenses and/or permits issued and/or revoked. This will be thea licant's first license permit. 4 5 • 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. Serjio Torres has three(3)DUIs:one in January 2008,the other in November of 2008 and the third he received in une o 015. `e a so as three(3) citations for public intoxication in the city of Pasadena.After his last DUI, Sergio took part in an extensive court ordered DUI program and has successfully been sober since June 17.2015. Enrique Vega plead to disturbing the peace when he was caught with less than an ounce of marijuana in or in full.Enrique turned his life around when he earned an B.A.in Sociology from CSU,Long Beach.He has thirteen Section B: Business Organizational Structure/Status 1. Describe the commercial cannabis business organizational structure/status: Medicals Grade Farms BP is organized,as a medical cannabis collective that will have vertically • o ' / '1 1 11 • • • • • •, 1 . '1 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 attached pages following this page. Section C: Commercial Cannabis Business Description and Location 1. Statement of Purpose of Commercial Cannabis Business(a separate sheet may be attached): The purpose of Medical Grade Farms BP is to cultivate,manufacture and distribute cannabis for the benefit of the mgdical patients who ale members of the Cooperative. 2. Proposed Location of Business (include APN's): 5148 Bleecker St.. Baldwin Park, CA 91706 (APN: 8414-004-005) • 3. Name and Address of Property Owner: Weiss Industrial Holdins LLC:C/O Matthew A.Sawyer 10616 Rush St. • South El Monte.Cid 91733 4. Name and Address of School Closest to Proposed Location: Pleasant View Elementary School: 14900 Nubia St.,Baldwin Park, CA 91706 5 6 CANNABIS PERIIIIT 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 location of Medical Grade Farms BP,also known as"The Bleecker Facility,"is ideally suited for cannabis cultivation, nestled in an industrial area with minimum foot traffic.It is more than 1 ' , r } . �� >ng ,121 feet from the nearest residential zone.The •.ier- s .riic - si. ie I- g, eien: e „' - ins • ie 'wie i : l a . iir lilts and after explaining the use of the Bleeker Facility for a cannabis facility,the owener of the resident expressed no objection.The ac i y is a :o a ea - .1 1 ee away .om semi ive recep ors sc oo , .ay care cen er or you ' cen eras .e .e f m -ealth and Safety Code Section 11353.1).The closest sensitive receptor,Plesant View Elementary School,is more than 1,120 feet away. e ooperative insta I new perimeter en.mg a aroun• t e : ee•-er ac ity,wit gate. entry to restrict and control pedestrian as well as vehicle access.Only authorized vehicles and personnel will be allowed to gain entry. 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. 2. Conceptual Building Elevations if new construction. If existing buildings, include any proposed exterior building alterations if applicable. 3. Floor Plans,including any proposed interior alterations. 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. 5. Photos of the site and building(s) from all Section D: Required Supplemental Information This information Is required for this application to be considered complete.Attach the following reports to the application.. Neighborhood Compatibility Plan Safety and Security Plan g Air Quality Plan • Business Plan gBackground Check Authorization Form and Live-Scan Request and Receipt° 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: Ftf State Clearance by Baldwin Park Police Department 6 7 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 attached pages following this page. 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. FeSuitability of the proposed property: Applicant must demonstrate that the proposed locations exceeds all buffer zones established in the Cannabis Ordinance. 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). Suitability of business plan and financial record keeping: The n that will provide and ensure safe dispensing, adequte ecurity,heft pre ention,t must eand the mscribe a ain enance of confidential information. 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 complaint(s).The Applicant must certify, as a condition of maintainingthe any pending criminal any person with any permit, that it will not employ 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. 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 cpenalties assessed against their business. ®0 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. eCommunity 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. 7 8 CANNABIS PERMIT APPLICATION Page 6 of 7 Environmental impact: Application should indicate if the business uses renewable energyr sources. 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. Mitigation fees: The mitigation fee the business is willing to pay to the City must be included in he Development Agreement. A separate fee shall be identified for each cannabis operation category(ite, 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. Are you willing to voluntarily donate $50,000 to the City of Baldwin Park towards the salary of one Police Officer? Section G: Fees Please attach a cashier's check or money order made payable to the P y "City of Baldwin Park"for the following fees: 41rwing LiveScan fee: $48.00 Background check fee: $937.50 • Cannabis Permit Application/Development Agreement Fee: $2,857.50 Staff use only: Date of initial application: CI 11 g" I-9"1. Number assigned to application: 11 12-- Date 2__.Date fee received: Q I 1 Date application reviewed: Date Proof of ownership was verified or a signed and notarized statement from the property owner was received: Planning Division ❑ Incomplete Application C7 Complete Application Cannabis Subcommittee ❑ NOT In Compliance with Cannabis Ordinance Locational Criteria 8 9 CANNABIS PERMIT APPLICATION Page 7 of ❑ In Compliance with Cannabis Ordinance Locational Criteria ❑ Not Recommended for Council Consideration ❑ Recommended for Council Consideration • 9 A This page is part of your document-DO NOT DISCARD � 017a,144,.., 20180647110 � 111010111IIIIIIIAIIIII�IIIIIIIAIIIIIII °�.I° + Recordedined in Official Records ryt.l. Recorders OffC:IltaAngeles County' 141)4 06/28/18 AT 09:45AM FEES: 0.00 TAXES: 0.00 OTHER: 0.00 PAID: 0.00 IVIV I I III II IIInI I III I III I I II 01 III I VIII ALEADSH ET VIII II I I III II III 1101 I lIi Il I lI I 101 DII II Oil I IIIIIIIIIIIIIIII201806283300014 00015424229 I��I III0 110 II III 0II 11111111 I11 III Ii III SEQ: 02 inininniiiiiiii A 1110011111111nmmmmnm • RECORDING REQUESTED BY: 06/28/2018 WHEN RECORDED MAIL TO: 1110 NAMEbVrCCYr Qn\W1VANA.41 ,yy/� CVA— �.-l - ,A' 1 *20180647110" MAILING ADDRESS�CC$^Ldw1VATQV_ CITY,STATE and ZIP CODE l,t 1,41‘" 01 " 01_L ,( An olio SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE TITLE(S) drdlVtlVIcR, 8015 rev 20171228