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A-2017-396A <br />OPERATING AGREEMENT FOR NON -MEDICINAL <br />COMMERCIAL CANNABIS BUSINESSES <br />PJ <br />This Operating Agreement ("AGREEMENT") is dated May 13. 2021, between the City of Santa <br />Ana, a charter city and municipal corporation ("CITY") and The 10 Spot, Inc. dba Jade Room <br />Santa Ana ("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 Adult -Use Retail services in whole <br />or in part of its operations transacted and carried -on by OPERATOR at the following subject <br />property location, 2700 S Shannon St, Santa Ana, CA 92704. <br />1. Public Benefit. <br />A. Intent. The purpose of this Operating AGREEMENT is to ensure positive community <br />impacts from commercial cannabis business operations through local hiring and local sourcing, <br />community benefit and sustainable business practices, and the collection of required fees and <br />taxes as applicable for the operation of a commercial cannabis business and to provide mitigation <br />options to be used by CITY to compensate for impacts to CITY services, residents, and/or <br />businesses as set forth in Santa Ana Municipal Code Chapter 40. The Parties agree that this <br />AGREEMENT confers substantial private benefits on OPERATOR which should be balanced by <br />commensurate public benefits. As part of the cannabis Regulatory Safety Permit process, <br />OPERATOR agrees to enter into this AGREEMENT. OPERATOR acknowledges that CITY and <br />OPERATOR have had extensive negotiations and proceedings prior to entering into this <br />AGREEMENT. OPERATOR has elected to execute this AGREEMENT as it provides <br />OPERATOR with important economic benefits. Accordingly, the Parties intend to provide <br />consideration to the public to balance the private benefits conferred on OPERATOR by providing <br />mitigation measures to the public and to pay for CITY services. <br />B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to hire <br />qualified City of Santa Ana residents living in Santa Ana to work at its commercial cannabis <br />businesses. OPERATOR shall also use reasonable efforts to retain the services of qualified <br />contractors and suppliers who are located in the City of Santa Ana or who employ a significant <br />number of City of Santa Ana residents. OPERATOR shall make a good faith effort to advertise <br />on various social media sites, at local job fairs, and through public agencies and organizations. <br />C. Community Benefit and Sustainable Business Practices Plan. OPERATOR agrees to <br />submit a Community Benefit and Sustainable Business Practices Plan ("Plan') to CITY that is <br />hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A"). Said Plan shall <br />detail OPERATOR's experience working with community -based groups such as school districts, <br />college districts, city or county agencies, non-profit organizations, artist or downtown groups. The <br />Plan shall also include a description of OPERATOR's efforts for recruiting and hiring local persons <br />and businesses. Said Plan must also outline commitments by OPERATOR to engage its staff in <br />community service events or programs in the City of Santa Ana. Plan must also outline and <br />address sustainable business practices. OPERATOR shall adequately document that it has met <br />the Plan's obligations and commitments as a condition of renewal/extension of this AGREEMENT <br />upon expiration of the initial term and any extensions. <br />