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Orozco, Norma <br />From: Pat Rolfes < <br />Sent: Monday, April 16, 2018 5:03 PM <br />To: City Council <br />Cc: Chrissie Emmel; Kam Dass; Patrick Frankham; Ross Franklin; <br />Ahmad Doroudian <br />Subject: Ordinance Amendment 2018-02 <br />To the Mayor and City Council of Santa Ana <br />Ladies & Gentlemen: <br />I am writing in support of the above Amendment. I am the President of Pivot Naturals, LLC, which is the <br />California subsidiary of the international company Pivot Pharmaceuticals Inc. (CSE: PVOT). <br />We are in the process of making a multi-million dollar investment in plant and equipment in Southern <br />California to house our cannabis product manufacturing business. We are attracted to Santa Ana for its pro- <br />business climate, talented workforce, central location and other attributes. In a previous role I housed my <br />business in Santa Ana for some 25 years. <br />We support allowing cannabis manufacturing businesses in appropriate zones in Santa Ana, and hope you will <br />adopt the Amendment and provide for its swift implementation. <br />One aspect of the Ordinance as modified by the Amendment should in our view be changed: <br />1. A City -imposed annual fee of 8% of gross revenues is excessive, uneconomic, and would render <br />our products uncompetitive with those offered by companies in jurisdictions with fees of 1-2% of <br />revenues. This fee is well in excess of that charged by other local jurisdictions as well, and makes Santa <br />Ana a less desirable location in which to do business. The disparate impact of these fees on wholesale <br />products such as those we will produce should also be considered. <br />I am available to discuss these issues should you wish to do so. <br />Thank you. <br />Here's to your health! Pat <br />Patrick J Rolfes <br />President <br />Pivot Pharmaceuticals USA® <br /> <br />