HomeMy WebLinkAbout1 VERTICAL INC., DBA 420 CENTRAL-QUIR 0 A-2017-369-3
JAN 2 9 2021 w �FaE� �) 0
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OPERATING AGREEMENT FOR ADULT -USE RETAIL
COMMERCIAL CANNABIS BUSINESSES
This Operating Agreement CAGREEMENT") is dated 12/0812020, between the City of Santa
Ana, a charter city and municipal corporation ("CITY") and 1 Vertical, Inc, dba: 420 Central
("OPERATOR"), collectively referred to as "the Parties". This AGREEMENT shall become
effective on the date that OPERATOR is issued a Regulatory Safety Permit by CITY for the
operation of a commercial cannabis business conducting ADULT -USE RETAIL services in whole
or in part of its operations transacted and carried -on by OPERATOR at the following subject
property location, 420 W Central Ave Santa Ana, CA 92707
Public Benefit.
A. Intent. The purpose of this Operating AGREEMENT is to ensure positive
community impacts from commercial cannabis business operations through local hiring and
local sourcing, community benefit and sustainable business practices, and the collection of
required fees and taxes as applicable for the operation of a commercial cannabis business
and to provide mitigation options to be used by CtTY to compensate for impacts to CITY
services, residents, and/or businesses as set forth in Santa Ana Municipal Code Chapter 40.
The Parties agree that this AGREEMENT confers substantial private benefits on
OPERATOR which should be balanced by commensurate public benefits. As part of the
cannabis Regulatory Safety Permit process, OPERATOR agrees to enter into this
AGREEMENT. OPERATOR acknowledges that CITY and OPERATOR have had extensive
negotiations and proceedings prior to entering Into this AGREEMENT. OPERATOR has
elected to execute this AGREEMENT as it provides OPERATOR with Important economic
benefits. Accordingly, the Parties intend to provide consideration to the public to balance
the private benefits conferred on OPERATOR by providing mitigation measures to the public
and to pay for CITY services.
B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to
hire qualified City of Santa Ana residents living in Santa Ana to work at its commercial
cannabis businesses. OPERATOR shall also use reasonable efforts to retain the services
of qualified contractors and suppliers who are located in the City of Santa Ana or who
employ a significant number of City of Santa Ana residents. OPERATOR shall make a good
faith effort to advertise on various social media sites, at local jab fairs, and through public
agencies and organizations.
C. Community Benefit and Sustainable Business Practices Plan. OPERATOR
agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan") to
CITY that is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A").
Said Plan shall detail OPERATOR's experience working with community -based groups
such as school districts, college districts, city or county agencies, non-profit organizations,
artist or downtown groups. The Plan shall also include a description of OP€RATOR's
efforts for recruiting and hiring local persons and businesses. Said Plan must also outline
commitments by OPERATOR to engage its staff in community service events or programs
in the City of Santa Ana. Plan must also outline and address sustainable business
practices. OPERATOR shall adequately document that it has met the Plan's obligations
and commitments as a condition 9ll
Of the inffl I taft dnd_tlriy Ox Of re"Ow axtOnOlcin of this AONIRRMONT UPon expiration
41 1phojiOnIs.
Z &bcor.daiogpggtigiLExamigatftan and Audit
OPERATOR ooknovviedges
to InSPOOt. 10(ornine and audlt
Mums), to Ascertain the amou
agents shall have the power
Abillit Ouch books ond,rerorc
And
or
4. Luft .License Rewired.
and
In
the data Indicated Obow anci:ahall, tanninate on
... .— 1 1 - I- - I
OPERATOR shall not operate a tomrnam � jai Pa. nablo buslhOss Authorized
Santa: Ana M,041410,41 Ocos. UO OtAf under the
A. It is the holder of a valid Rog4.1atory Safely Poftit 1$0 :CITY In accordance
.. . 1 .1 . issued by .0wah
the pivcwurO$ And MCIWW" of AM014 f of 6"r 40, of the 6dnte Ana
Muniolpalloode; and
B. At such .time as the StAd Of 001if0thlb, Mquire, cannabis
a cm b's business facilkles and
businesses to holda,valid -ilcense or parmH issued by #16 §JeIW 0 tillfbt.ni it akse
holds sLJOK lloense. or, a
permit; Unless, hDwovdrqq,,h. e"ftpr, 11, bi on
by a p p 600'j'a I aU ;qU ily
the State oi, cousihij for, jl��O of 666 9 , sell or business
not requited' 666, ?f Iti
operation that Is the subject of this AdROWENT.
2
S.
0, OPERATOR remains In compliance with any and all other laws and regulations.
pertaining to commercial cannabis business s.
P. OPERATOR shad remain In cornniianrm Wifl f ,a nMawsti{iurr �e nriirnww i w ,o <r+
l7$fauit and T�ei(:�itnattfln #or C
Thls,453RtgEMENT may be team naiad by CITE for oaust wltK thirty {gip} days' witwn
notit a to C PERAT 9t ". Oause us ad In this sect€on, fsRefined as
A. FMJ.pjv+ to cortrtily with tho, torm of the t Y of; anta Me Cannei6ls Pf iul for
safety Send Issued ttr 6PkWA- Wl +Gt`t"C
a.
C. Fa€lurt of OPERATOR to QoMPly with the requiMments of the Community Benaiifs
and Sustainable Business Practices P►an;
D. Unauthodzed trans%r by OPERATOR of. the City of Banta Ana csnngbts'busines&
Ree�ulatoryWety Permit iswod by 4tT`F`,
E.
data
F. Failure by OPERATOR to 0.4 operating agreement fees and related reimbursement
costs within thirty (30) mays of the date those f�s;are due;:
3
G.
H, 0PRRIATOR shall twN the defult i`eaOM$ from the ,UOO far terrain UOn within
thirty (W). dayb of the data of the notice cif t rminetion. If l7kt0"TOR feils to cure
the defautt withtn thlrky 3i]} days of tip. jo of.*0 nr�ltce of terr�t�a�on for tsal�r�,
this AONSS O T %41 ha tarml tsd
I. ThisASFtit1141Nwiliautnmatillytarrtt�neta-:
I. C1P l TQFt" :t2egutatory Safety pbf.r6k is revoker! by tyor is nat renewo ley
CITYt.or
it i5Pi iTQ>: iriansfsrs its, Regulatory safety, PO" purtaua`nt 't to Santa Ana
7utuniasortl Adr se4tirrrr4.tt»ail
9. �"ermlraflon 1N!i#kraut Gt�use. `
Upon 0001 written zgresment of the I.arliea, this-this,:mom be farntirlat Gi
With tt�iirt� 0) dayo notice:
1Q, Tprtnlnstio.�i �'rf�Ctbiil�i'rtfnOF�IlCfeiHenao
A It Is at rtowladged try the ,parties that CITY WoUIC1 not hava entered intrr this
A R IENT rf it "re to be Ilabte In damages ,undor this Arait eemENT, or with
respect to this A Gitg'EMENT or tKte eoplioaiien tii r i i eirr pt as h001hafter
c..
This clause shall not ad prsolMd - sodkj, g: pra)jlgjonaj. remedies In. of
a parfe$ from in
arbitration from a court of tpprol),00 jurisdiction,,
12. Retmburermee Clause
In consideration of the time and dosN InoW601 by COY In thO, drafting and
implemOMOU00 of this AGMMIENT,'OP11, ATOR, 'd
311 :Qrpew�tot Pay MM to'CITY within
days of examition of this *OREOM gkt�,
14. _hWa,
TOICITY;
coplaslo..
r"'ar,do "'a"'
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class or Oar"
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gtl ONTOX-Orfrof plaza (M-30)
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Santa 62702.4660
rixePuti've Director—Plannirg, and OwIdIngAgeint)(1
4bky 6t�t. Santa And
20 IG4910 06fdOr Plaza,(M-20)
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Santa Ang, Coofqmja 827QZjQ8$
Fox 714447-866
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To OPERATOW 1 ' od[iio Irt .
tloa, iii b";ntrat
42(w dentralxve:
4426
email, mfo���4�centraLerg
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76.: 7Xs�rpnnlgtft.
AP f4i iOR may not assign or transfer an�r intsrest herein ryl064 thh" priar littrlkkoFi
l;anselat of 000, and any ouch aasigrirnent or tt�gr yu hailt;Ck11'`a ior.v rtden cahsent
shake t}e rsnitertt.nal� snit vaid
1X,. nraar?�min�..
Ow OULIMMO[RM—Venue.
This AIR ',TNT ha' sett t QCuto !aril r�srlyat r to the
voiidity, niter`hi-e atl*n, perrorrnenre, and enforcement of anyr
AORE M z T shad be determined and go>{epnsd by fete laws
Soth partial furthpr agree that ?range iNaunty,. Califamia,; shall bs
u
�tok� pf �aiif4rnka and the.
of the clauses bf rhea
of the iatat� of Califgrnka:
the venue far any acfon
or pmo oodthO that May be brouOht or arl Out, qf, ln,0(3 on 1 optlo
h or by WBOO Of this
is.
it mny pamm inis montmpuT is round to Donfild-,with, applicable local or.ato a ragUlation to low or
it
with field laws
or reguliffloffts, or may bo, modifield 0 4'ndb46wyAo po
r,:#9 on d 04., r Mp nag .mp!y with any
local or oato-w� 0r regulatign bu in Nil
force and effect:
26. 2goWgrearls.
21, aloollm
-Signature Pogo Mafow�
7
A-2017-369-30
IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year
first above written.
ATTEST:
- e
DAISY GOMEZ
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Jose Montoya
Deputy City Attomey
RECOMMENDED FOR APPROVAL:
0
Minh Th_a-17ExecutiiveDirector
Planning & Building Agency
CITY OF SANTA ANA
IN� GE
City Manager
OPERATOR
LEGAL VQ 1 ZY1t , NAME:
dbc'.
SIGNATORY
NAME: i1A�
TITLE:
TAXPAYER lD:
91
Sighature
El