HomeMy WebLinkAboutCLS HOLDINGS, LLC
PBA5/8/2025
Contract NumberNameDESCRIPTIONExpiration DateOK to terminate? Y/NIf Y, please sign
A-2017-369-49360 PACIFIC, LLC DBA BNB DISTRO OPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/21/2022YAP
A-2017-369-4355 OC COLLECTIVE INC DBA JUNGLE BOYSOPERATING AGREEMENT FOR NON-RETAIL COMMERICIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-01-0155 OC COLLECTIVE, DBA BLUM, A CORPORATIONEXTENSION OF OPERATING AGREEMENT FOR ADULT USE (NON-MEDICAL) CANNABIS 12/31/2022YAP
A-2017-369-5955 OC COLLECTIVE, DBA BLUM, A CORPORATIONCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP
A-2017-369-32AAA HEALTH CENTER OPERTATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-378ADAMS ST. ENTERPRISES, LLC, DBA: TOUCHSTONE AND DBA TOUCHSTONE SNANON-MEDICINAL COMMERCIAL CANNABIS BUSINESS OPERTATING AGREEMENT 12/31/2020YAP
A-2014-243AECOM TECHNICAL SERVICES ENVIRONMENTAL CONSULTANT/ENVIRONMENTAL SERVICES/TECHINCAL STUDIES 10/21/2017YFV
A-2018-141-01AECOM TECHNICAL SERVICES INC.PLANNING SERVICES ON AN AS-NEEDED BASIS 6/30/2021YFV
A-2015-105ALA CONSTRUCTION BOARD-UP SERVICES TO SECURE PROPERTY/BUILDING IN HAZARDOUSD CONDITIONS5/4/2018YFV
A-2017-369-38ALTO BRANDSOPERATING AGREEMENT FOR NON-RETAIL COMMERICIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-171AMERICAN ENGINEERING LABORATORIES INCEXPECTED INSPECTION SERVICES 7/5/2020YFV
A-2017-265-03ARHITECTURAL RESOURCES GROUP, INCQUALIFIED CONSULTANT SERVICES/ENVIRONMENTAL SERVICES10/2/2020YFV
A-2017-265-04ARHITECTURAL RESOURCES GROUP, INCEXTENSION (1) QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV
A-2020-241-01ARHITECTURAL RESOURCES GROUP, INCON-CALL ENVIRONMENTAL AND PLANNING SERVICES AND SUPPLEMENTAL STAFF11/30/2023YFV
A-2020-241-02AASCENT ENVIRONMENTALSIDE LETTER11/30/2024YFV
A-2002-222-1ATKINSON, SUSAN2ND AMEND TERM EXTENSION ARBITRATION/MEDIATION SVCS NTE $10,0006/30/2004YFV
A-2020-261AVOLVE SOFTWAREAMENDMENT FOR ELECTRONIC PLAN SUBMITTAL?N
A-2017-369-77BROADWAY HEALTH CENTER, DBA OC KUSH OPERTATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-168BUREAU VERITAS NORTH AMERICA INC.EXPEDITED INSPECTION SERVICES7/5/2020YFV
A-2017-369-60CALIFORNIA ORGANICS LLCOPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-55CANNAVISION, LLCOPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-42CARDEN LABS, INC.OPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-33CB LABS SANTA ANACOMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2018-308CB LABS, SANTA ANA, LLCCANNABIS TESTING FACILITY/LABORATORY12/31/2020YAP
A-2017-369-10CBD INC., DBA FROM THE EARTH, A MUTUAL BENEFIT CORPORATIONCANNABIS RETAIL BUSINESS - PURSUANT TO CHAPTER 4012/31/2020YAP
A-2017-397CDXX VIRTUOSI GROUP LLC, dba KAYA FARMSOPERATING AGREEMENT FOR NON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2020YAP
A-2017-397-01CDXX VIRTUOSI GROUP LLC, dba KAYA FARMSNON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-384-01CEA SERVICES LLC; DBA: CURAT4ED CANNABISEXTENSION OF NON-MEDICINAL COMMERCIAL CANNABIS BUSINESS 12/31/2022YAP
A-2015-106CEDELCO CONSTRUCTIONBOARD-UP SERVICES TO SECURE PROPERTY/BUILDING IN HAZARDOUS CONDITIONS 5/4/2018YFV
A-2016-317CENTURY STRUCTURAL ENGINEERING CO., INCPLAN CHECK SERVICES11/15/2019YFV
A-2015-220CENTURY STRUCTURAL ENGINEERING CO., INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV
A-2017-265-06-01CIRCLEPOINTFIRST EXTENSION -QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES 10/2/2021YFV
A-2017-265-06-01CIRCLEPOINTFIRST EXTENSION -QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV
A-2020-241-06CIRCLEPOINTON-CALL ENVIRONMENTAL AND PLANNING SERVICES11/23/2023YFV
A-2017-369-29CLS HOLDINGS LLC, CANNABIS LOGISTICAL SOLUTIONOPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-63CLS HOLDINGS, LLCOPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2015-219CSG CONSULTANTS, INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV
A-2015-219CSG CONSULTANTS, INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV
A-2016-316CSG CONSULTANTS, INC.PLAN CHECK SERVICES11/15/2019YFV
A-2016-316CSG CONSULTANTS, INC.PLAN CHECK SERVICES11/15/2019YFV
A-2017-369-23-01DBO INVESTMENTS SA, LLC, dba FROM THE EARTHCANNABIS RETAIL BUSINESS12/31/2022YAP
A-2013-172DE LA BARCA, EDDIE-UTILITY CABINET PILOT ART PROGRAM-VARIOUS ARTISTS -- CORE NO.UTILITY CABINET PILOT ART PROGRAM3/10/2014YFV
A-2013-172ADE LEON, ALICIA-UTILITY CABINET PILOT ART PROGRAM-VARIOUS ARTISTSUTILITY CABINET PILOT ART PROGRAM3/10/2014YFV
A-2020-241-10-01DE NOVO PLANNING GROUPFIRST EXTENSION- EXTEND TERMS FOR AN ADDITIONAL YEAR11/30/2024YFV
A-2017-265-12-01ENVIRONMENT PLANNING DEVELOPMENT SOLUTIONS, INC. (EPD SOLUTIONS, INC.)FIRST EXTENSION FOR QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV
A-2017-390-01AEXCELBIS LABS, LLCNON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-265-14FCS INTERNATIONAL, INC. (FIRST CARBON SOLUTIONS)ENVIRONMENTAL/TECHNICAL STUDIES10/2/2020YFV
A-2020-241-19FEHR & PEERSON-CALL ENVIRONMENTAL/PLANNING SERVICES11/30/2023YFV
A-2017-369-02FOUR TWENTY GREEN STREET, INC.COMMERCIAL CANNABIS BUSINESS12/31/2020YAP
A-2017-393FOUR TWENTY GREEN STREET, INC. DBA THE SPOTCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP
INSU."'a:, `NON Fl
WORK MA! AT Mi,'. A-2017-369-63
CLEA OF. COUNrl
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OPERATING AGREEMENT FOR NON -RETAIL
COMMERCIAL CANNABIS BUSINESSES
This Operating Agreement ("AGREEMENT") is dated z z8 2ozz
ty
of Santa Ana, a charter city and municipal corporation ("CITY") and CLS Holdings between
Cannabis
N Logistical Solution("OPERATOR"), collectively referred to as "the Parties". This AGREEMENT
o 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
CD DISTRIBUTION, services in whole or in part of its operations transacted and carried -on by
OPERATOR at the following subject property location, 1920 E Warner 3-C, Santa Ana, CA
92705.
1. 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 CITY 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 job 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 OPERATOR'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 of renewal/extension of this AGREEMENT upon expiration
of the initial term and any extensions.
2. Records Inspection Examination and Audit
OPERATOR acknowledges and agrees that CITY is empowered under this Agreement
to inspect, examine and audit OPERATOR's books and records (including tax filings and
returns), to ascertain the amount of operating fees due and owing, CITY or Its authorized
agents shall have the power and authority to conduct a full inspection, examination and
audit of such books and records (Including tax filings and returns) at any reasonable time,
including but not limited to, during normal business hours. In the event any such books,
records, tax filings and returns cannot be made fully available within the City of Santa Ana,
OPERATOR acknowledges and agrees that it shall reimburse CITY for the cost of all
transportation, lodging, meals, portal-to-portal travel time, and other incidental costs
reasonably incurred by CITY or its authorized agents in obtaining said full inspection,
examination and audit. In the event that said records inspection, examination and audit
determines that a net operating agreement fee payment deficiency of greater than Five
Percent (5%) exists; OPERATOR acknowledges and agrees that It shall reimburse CITY for
the full cost of said records inspection, examination and audit reasonably incurred by CITY
or its authorized agents.
3. Term,
This AGREEMENT shall start on the date indicated above and shall terminate on
December 31, 2022 regardless of starting date unless terminated earlier in accordance with
Section 9 or 10 of this AGREEMENT.
4. Business License Required.
A valid City of Santa Ana Business License is required for all persons engaged in
transacting and carrying on any commercial cannabis business activity in the City of Santa
Ana. It is unlawful for any person or legal entity to commence, transact or carry -on cannabis
business activity in the City of Santa Ana without first having procured a City of Santa Ana
cannabis business license.
5. Operating Commercial Cannabis Business.
OPERATOR shall not operate a commercial cannabis business authorized under the
Santa Ana Municipal Code unless:
A, It Is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with
the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana
Municipal Code; and
B. At such time as the State of California requires cannabis business facilities and
businesses to hold a valid license or permit issued by the State of California, it also
holds such license or permit; unless, however, such permit or license is subsequently
not required by the State of California for the type of cannabis facility or business
operation that is the subject of this AGREEMENT.
6.
C. OPERATOR remains In compliance with any and all other laws and regulations
pertaining to commercial cannabis businesses,
D, OPERATOR shall remain in compliance with the operating requirements applicable
to commercial cannabis businesses contained in the City's Municipal Code.
OPERATOR Indemnification of CITY.
A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of
any kind whatsoever sustained or incurred by CITY resulting from entering into this
AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT.
OPERATOR agrees to defend, at Its sole expense, any action against CITY, its
agents, officers, and employees related to this AGREEMENT. OPERATOR agrees
to indemnify and reimburse CITY for any court costs and attorney fees that CITY
may be required to pay as a result of any legal challenge related to this
AGREEMENT and/or CITY's approval of a Regulatory Safety Permit, CITY may, at
Its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the OPERATOR of its obligation hereunder.
7. OPERATOR Compliance with Laws.
OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code,
including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the
State of California.
8. Default and Termination for Cause,
This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written
notice to OPERATOR. Cause as used in this section, is defined as:
A. Failure to comply with the terms of the City of Santa Ana Cannabis Regulatory
Safety Permit issued to OPERATOR by CITY;
B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License
as the commercial cannabis business approved by the Regulatory Safety Permit and
as operating;
C. Failure of OPERATOR to comply with the requirements of the Community Benefits
and Sustainable Business Practices Plan;
D. Unauthorized transfer by OPERATOR of the City of Santa Ana cannabis business
Regulatory Safety Permit issued by CITY;
E. Failure by OPERATOR to accurately report gross receipts Information or other data
necessary for CITY to calculate/confirm operating agreement fees;
F. Failure by OPERATOR to pay operating agreement fees and related reimbursement
costs within thirty (30) days of the date those fees are due;
3
G. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any
Inspection, examination and audit of OPERATOR's commercial cannabis business
books and records (including tax filings and returns).
H. OPERATOR shall cure the default resulting from the cause for termination within
thirty (30) days of the date of the notice of termination. If OPERATOR falls to cure
the default within thirty (30) days of the date of the notice of termination for cause,
this AGREEMENT will be terminated.
I. This AGREEMENT will automatically terminate if:
i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by
CITY, or
ii. OPERATOR transfers Its Regulatory Safety Permit pursuant to Santa Ana
Municipal Code section 40-12.
9. Termination Without Cause.
Upon mutual written agreement of the Parties, this AGREEMENT may be terminated
with thirty (30) days' notice.
10. Termination . Effect on Prior Obliaations.
Upon any termination of this AGREEMENT, OPERATOR's obligation to report and remit
operating agreement fees due and payable under the terms of this AGREEMENT for each
month or fraction of a month of a cannabis business operation engaged in within the City of
Santa Ana prior to termination of this AGREEMENT shall continue to be in effect. Past due
penalties and late interest charges shall continue to accrue and be applicable until all
operating fees due under this AGREEMENT are paid in full. OPERATOR's liability for any
remaining unpaid past due penalties and/or late interest charges shall continue until fully
satisfied.
11. Remedies,
A. It is acknowledged by the parties that CITY would not have entered into this
AGREEMENT if it were to be liable in damages under this AGREEMENT, or with
respect to this AGREEMENT or the application thereof, except as hereinafter
expressly provided.
B. Each of the parties hereto may pursue any remedy at law or equitable relief available
for the breach of any provision of this AGREEMENT, except that CITY shall not be
liable in monetary damages, unless expressly provided for in this AGREEMENT.
C. Any dispute, claim or controversy arising out of or relating to this Agreement or the
breach, termination, enforcement, interpretation or validity thereof, including the
determination of the scope or applicability of this agreement to arbitrate, shall be
determined by arbitration in Orange County California before three arbitrators. The
arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration
Rules and Procedures pursuant to ,JAMS' Streamlined Arbitration Rules and
Procedures. Judgment on the Award may be entered in any court having jurisdiction.
This clause shall not preclude parties from seeking provisional remedies in aid of
arbitration from a court of appropriate jurisdiction.
12. Reimbursement Clause.
In consideration of the time and costs incurred by CITY in the drafting and
Implementation of this AGREEMENT, OPERATOR agrees to pay $2,500 to CITY within
thirty (30) days of execution of this AGREEMENT.
13. Attorney Fees and Costs.
In any action or proceeding between CITY and OPERATOR brought to Interpret or
enforce this AGREEMENT, or which in any way arises out of the existence of this
AGREEMENT or is based upon, any term or provision contained herein, the :'prevailing
party" in such action or proceeding shall be entitled to recover from the non -prevailing party,
in addition to all other relief to which the prevailing party may be entitled pursuant to this
AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an
amount to be determined by the court. The prevailing party shall be determined by the court
in accordance with California Code of Civil Procedure Section 1032. Fees and costs
recoverable pursuant to this Section 17 include those incurred during any appeal from an
underlying judgment and in the enforcement of any judgment rendered in any such action or
proceeding.
14. Notice.
Any notice, tender, demand, delivery, or other communication pursuant to this
AGREEMENT shall be in writing and shall be deemed to be properly given if delivered in
person or mailed by first class or certified mail, postage prepaid, or sent by fax or other
telegraphic communication in the manner provided in this section, to the following persons:
To CITY: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O, Box 1988
Santa Ana, CA 92702-1988
Fax 714-647-6956
Copies to: Executive Director — Planning and Building Agency
City of Santa Ana
20 Civic Center Plaza (M-20)
P.O. Box 1988
Santa Ana, California 92702-1988
Fax 714-973-1461
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702-1988
Fax 714-647-6515
To OPERATOR: Dante Jarrett
CLS Holdings LLC, Cannabis Logistical Solution
1920 E Warner ave 3-C
Santa Ana Ca, 02706
714-981-0524
Dante@clsdistro,com
A party may change its address by giving signed notice in writing to the other party.
Thereafter, any communication shall be addressed and transmitted to the new address. If
sent by mail, communication shall be effective or deemed to have been given three (3) days
after it has been deposited in the United States mail, duly registered or certified, with
postage prepaid, and addressed as set forth above. If sent by fax or email document
attachment, communication shall be effective or deemed to have been given twenty-four
(24) hours after the time set forth on the transmission report issued by the transmitting
facsimile machine, addressed as set forth above. For purposes of calculating these time
frames, weekends, federal, state, County or City holidays, or City Hall closure dates shall be
excluded,
15. Exclusivity and Amendment.
This AGREEMENT represents the complete and exclusive statement between CITY and
OPERATOR, and supersedes any and all other agreements, oral or written, between the
parties. This AGREEMENT may not be modified except by written instrument signed by
CITY and by an authorized representative of OPERATOR. Each party to this AGREEMENT
acknowledges that no representations, inducements, promises or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein.
16. Assignment.
OPERATOR may not assign or transfer any interest herein without the prior written
consent of CITY and any such assignment or transfer without CITY's prior written consent
shall be considered null and void.
17. Discrimination.
OPERATOR shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, disability, gender identity, gender
expression, medical condition, genetic information, military or veteran status. as defined and
prohibited by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. OPERATOR affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local labor laws
and regulations.
18. Jurisdiction -Venue.
This AGREEMENT has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
AGREEMENT shall be determined and governed by the laws of the State of California.
Both parties further agree that Orange County, California, shall be the venue for any action
C.
- or proceeding that may be brought or arise out of, in connection with or by reason of this
AGREEMENT.
19. Severability.
If any part of this AGREEMENT is found to conflict with applicable local or state laws or
regulations, such part shall be inoperative, null and void insofar as it conflict with said laws
or regulations, or may be modified or suspended as may be necessary to comply with any
local or state law or regulation but the remainder of the AGREEMENT shall continue in full
force and effect.
20. Counterparts.
This AGREEMENT may be executed in counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument. The
execution of this AGREEMENT may be by actual, facsimile or electronic signature.
21. Disclalmer.
Despite California's commercial cannabis laws and the terms and conditions of this
AGREEMENT or any Regulatory Safety Permit. Issued pertaining to OPERATOR or the
hereinabove specified property location, California commercial cannabis cultivators,
transporters, distributors, cannabis testing facility/laboratory businesses or possessors may
still be subject to arrest by state or federal officers and prosecuted under state or federal
law. The Federal Controlled Substances Act, 21 USC § 801 at. seq., prohibits the
manufacture, manufacturing, and possession of cannabis without any exemptions for
medical or non -medicinal use.
22. Authority to Bind.
Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this
AGREEMENT, and shall indemnify CITY fully, including reasonable costs and attorney's
fees, for any injuries or damages to CITY in the event that such authority or power is not, in
fact, held by the signatory or is withdrawn.
-Signature Page Below-
A-2017-369-63
IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year
first above written.
ATTEST:
DAISY GOMEZ
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: V n e
Jose Montoya CC
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
E
Minh Thai, Executive Director
Planning & Building Agency
CITY OF SANTA ANA
KRISTINE RIDGE
City Manager
OPERATOR
LEGAL
NAME: SCo gGLOW
SIGNATORY
NAME: _Donte Jarrett
TITLE: _Owner
TAXPAYER ID: 85-4299809
Signature
EXHIBIT A
COMMUNITY BENEFIT AND SUSTAINABLE BUSINESS PRACTICES PLAN
EXHIBIT A
COMMUNITY BENEFIT AND SUSTAINABLE BUSINESS PRACTICES PLAN
CLS Holdings LLC is cornmitted to being a for profit corporation that not only benefits CLS Holdings
LLC, but also the community of Santa Ana In which we operate. We are a company that has
specifically chosen to operate in Santa Ana due to the willingness of the City to allow for cannabis
companies to operate and the overall hospitality we have received from working with the City thus
far. We have high expectations for the business revenue we will be able to generate that will help
support the City's tax base and allow us to re -invest back into the Community. We plan to employee
the following Sustainable Business Practices while operating in the City of Santa Ana.
1. Improved brand image and competitive advantage. We plan on having a brand image that
speaks well of our business and promotes the cannabis community in Santa Ana, this will allow us to
capture consumers who are favorably predisposed to companies showing positive track records in
personal, social, and environmental values. The Cause Marketing Forum reports that consumers
also favor companies that actively support their communities: businesses do well by doing good.
The improvement of brand awareness through "doing good" is becoming one of the pillars of
advertising campaigns. We will also encourage others in the cannabis community on these practices
as we feel it will benefit the community greatly. The opportunity to enhance brand image is lost if the
company doesn't do as it preaches.
2. Increase productivity and reduce costs. Detractors of sustainability claim that sustainable
business practices eat into corporate profit. Development of sustainable business practices lends
itself to efficient operation that streamlines effort and conserves resources, which enhances
employee productivity and reduces cost.
Reducing cost also encompasses energy conservation strategies that can be as simple as turning
off unnecessary lights and insulating walls to more sophisticated efforts such as installation of more
efficient equipment. Those efforts having greater overall impact will likely be more expensive to
implement, but the long-term results justify the investment. We plan to use up to date LED lights,
simple exhaust systems, motion sensors and other energy saving methods such as ceiling and wall
Insulation to reduce our footprint and help conserve energy.
3. Increase business ability to comply with regulation. With all the discussion regarding climate
change, dwindling energy resources, and environmental Impact, it's no surprise that state and
federal government agencies are enacting regulations to protect the environment. Integrating
sustainability into your business will position it to meet changing regulations in a timely manner. We
plan to always be in compliance with the State and City regulations as well as implement an
changes that occur in a timely manner. We believe by staying in compliance we will also not be a
nuisance to the City, but a company that embraces these changes so we can be an example for the
Community.
4. Attract employees and investors. People like to be associated with the positive, especially
younger generations raised on a steady diet of environmental protection messages. They do not
want to be linked to companies implicated in ecological disasters and social welfare scandals. By
following these simple sustainable business practices we have Outlined we will have an efficient way
to attract employees who can help the company stay at the forefront of the cannabis industry as well
as investors who can help us expand our footprint in Santa Ana thus allowing us to benefit the
Community at a higher level then where we are currently operating.
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5. Reduce waste. This is likely the simplest and most obvious way to engage in sustainable
practices. We plan to recycle all our plastics, metals and paper and also reduce waste by' limiting the
amount of office resources being used by using as many digital platforms as we can for advertising,
daily operations, document control, compliance etc.
6. Giving back to the Community. I've worked with science centers, zoo's, and public aquariums
For almost 15 years. We strongly believe in contributing to the next generations education and
awareness of minimizing our carbon foot prints. We will donate exhibits to the Santa Ana Zoo, and
the Discovery Cube.
Creating a fun positive experience is a great way to create awareness and spark interest in the
importance of keeping the city clean. We like do our part in combatting global warming and
promoting the going green movement. When people are interested and engaged in animals and
habitats they tend to be conscientious of how their actions affect their communities.
We have committed to monetary donations quarterly in the amount of 2% of our revenue. We
anticipate approximately 3,5 - 4milllon dollars annually in revenue for our Cannabis business. Our
monetary donation to the STEP organization is anticipated to be 70,000.00 — 80,000.00 annually.
Each quarter we will provide a copy of our P&L sheet to the City Manager's office along with a copy
of the check we have donated to the STEP organization. The donation will be made the month
following the close of the quarter but no later than 30 calendar days after the close of the quarter.
This should allow enough time for our bookkeeper to complete the bookkeeping for the previous
quarter and issue the donation.
Even though we are a relatively small company we hope to have a large footprint in helping the
young adults and youth of the Community of Santa Ana. I have worked with companies and
hospitals that provide aid and treatment to children with cancer and other illnesses. Companies such
as the The Ronald McDonald House and the and the Children's Cancer Ward and the Kentucky
Hospital. I've also coached youth sports for 12 years. We will always be passionate about
contributing to communities we do business in,
7. Hiring Practices- Our approach to local hiring will be a two fold approach
The first fold will be to list all available job openings in Santa Ana based media outlets (Orange
County Register; Sentinel GPS and Azteca news) for a period of fifteen days prior to releasing to
mainstream media outlets. All residents from the City of Santa Ana will be given preference if It is
within the guidelines per the California Department of Labor.
The second fold will be to use social media outlets and hashtag the City of Santa Ana Residents,
Santa Ana, Santa Ana Jobs, Santa Ana Citizens, Santa Ana Community so we can pool applications
from as many locals as possible. If we receive enough responses from social media outlets
(Facebook; Instagram) we will host a job fair offsite of the facility so residents can come and
interview In person. We will find a location within the city limits of Santa Ana for this job fair and also
contact the City of Santa Ana to see if they have any special programs ort events that we can set up
a booth at and receive job applications and perform interviews.
Our goal is to have most of our new hires from within the City of Santa Ana and to target a 50% rate
of employment for Santa Ana residents for our business. We will maintain a list of all media outlets,
news outlets and special events that we use for the above -mentioned approach with dates and
times. This list will be submitted to the City Manager annually or upon request at any time.
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We will also maintain a list of all applications received, interviews performed, new hires and an
employee roster that will be used to track which participants are from Santa Ana and which
participants are not located within the City of Santa Ana. This list will be submitted to the City
Manager annually or upon request at any time. All new hires will also have to be submitted to the
City of Santa Ana upon hiring and prior to them being allowed to work in the facility. All new hires
that are local residents will have this denoted on their applications when we submit them to the City
of Santa Ana for approval,
I appreciate you taking the time to read this clip from us, Should you have any questions please feel
free to reach out.
Regards
Donte Jarrett
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