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A-2017-384 <br />INSURANCE NOT RELREi) <br />WORK MAY PROCEED <br />CLERK OF COUNCIL <br />r�..,-r, ��� � � ���� OPERATING AGREEMENT FOR NON -MEDICINAL <br />COMMERCIAL CANNABIS BUSINESSES <br />I'd <br />This This Operating Agreement ("AGREEMENT") is dated June 6, 2019, between the City of Santa <br />Ana, a charter city and municipal corporation CCITY") and CEA Services LLC, dba Curated <br />Cannabis ("OPERATOR"), collectively referred to as "the Parties". This AGREEMENT shall <br />become effective on the date that OPERATOR is issued a Regulatory Safety Permit by CITY for <br />the operation of a commercial cannabis business conducting MANUFACTURING, <br />DISTRIBUTION, AND CULTIVATION (PROCESSING ONLY) services in whole or in part of its <br />operations transacted and carried -on by OPERATOR at the following subject property location, <br />3031 South Shannon Street, Santa Ana, CA 92704. <br />A. Intent. The purpose of this Operating AGREEMENT is to ensure positive <br />community impacts from commercial cannabis business operations through local hiring and <br />focal sourcing, community benefit and sustainable business practices, and the collection of <br />required fees and taxes as applicable for the operation of a commercial cannabis business <br />and to provide mitigation options to be used by CiTY to compensate for Impacts to CITY <br />services, residents, and/or businesses as set forth in Santa Ana Municipal Code Chapter 40. <br />The Parties agree that this AGREEMENT confers substantial private benefits on OPERATOR <br />which should be balanced by commensurate public benefits. As part of the cannabis <br />Regulatory Safety Permit process, OPERATOR agrees to enter into this AGREEMENT. <br />OPERATOR acknowledges that CITY and OPERATOR have had extensive negotiations and <br />proceedings prior to entering into this AGREEMENT. OPERATOR has elected to execute <br />this AGREEMENT as it provides OPERATOR with important economic benefits. Accordingly, <br />the Parties intend to provide consideration to the public to balance the private benefits <br />conferred on OPERATOR by providing mitigation measures to the public and to pay for CITY <br />services. <br />B. Local Hiring and Sourcing, OPERATOR agrees to use its reasonable efforts to <br />hire qualified City of Santa Ana residents living In Santa Ana to work at its commercial <br />cannabis businesses. OPERATOR shall also use reasonable efforts to retain the services of <br />qualified contractors and suppliers who are located in the City of Santa Ana or who employ a <br />significant number of City of Santa Ana residents. OPERATOR shall make a good faith effort <br />to advertise on various social media sites, at local job fairs, and through public agencies and <br />organizations. <br />C. Community Benefit and Sustainable Business Practices Plan. OPERATOR <br />agrees to submit a Community Benefit and Sustainable Business Practices Plan ('"Plan") to <br />CITY that is hereby attached and Incorporated into this AGREEMENT as ("EXHIBIT A"). <br />Said Plan shall detail OPERATOR's experience working with community -based groups such <br />as school districts, college districts, city or county agencies, non-profit organizations, artist or <br />downtown groups. The Plan shall also include a description of OPERATOR's efforts for <br />recruiting and hiring local persons and businesses. Said Plan must also outline commitments <br />by OPERATOR to engage its staff in community service events or programs in the City of <br />Santa Ana. Plan must also outline and address sustainable business practices. OPERATOR <br />In <br />