HomeMy WebLinkAbout75E-3 - IN-LIEU FEE AGMT COMMERCIAL CANNABISREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 7, 2017
TITLE:
APPROVE AN IN -LIEU FEE AGREEMENT
TEMPLATE AND MERIT -BASED CRITERIA
DRAFT FOR COMMERCIAL CANNABIS
BUSINESSES PURSUANT TO CHAPTER 40 OF
THE SANTA ANA MUNICIPAL CODE — CITY OF
SANTA ANA, APPLICANT
{STRATEGIC PLAN NOS. 3, 2, 3, 5}
'41A MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
U»:iNkyl q
❑ As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2 n Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Approve the in -lieu fee agreement template and authorize the City Manager and Clerk of
the Council to execute agreements with qualified businesses.
2. Approve the merit -based criteria required for all new commercial cannabis businesses
pursuant to Chapter 40.
BACKGROUND
To comply with the Adult Use of Marijuana Act (AUMA)/Proposition 64, on October 17, 2017, the
City Council approved the first reading of the new commercial cannabis ordinance that expands
commercial cannabis business activities in the city's industrial areasmit Pursuant to the
ordinance's requirements contained in Chapter 40, all applications for new commercial cannabis
businesses will be evaluated using a merit -based criteria system through which permits will be
awarded to the applications scoring the highest points. The selected applicants must then enter
into an in -lieu fee agreement with the City to remit a percentage of gross receipts or a minimum
fee based on each facility's square footage.
The in -lieu fee agreement (Exhibit 1) for commercial cannabis businesses is intended to collect
fees for commercial cannabis businesses and for the purposes of providing a fee for mitigation
options used by the City to compensate for impacts to City services and Santa Ana residents
and/or businesses. Each commercial cannabis business is required.to enter into an agreement
for each type of business activity, including adult -use retail, as well as any form of
warehousing/distribution, manufacturing, cultivation, or product testing. As a component of the in -
lieu fee agreement, each business owner is required to agree to take reasonable steps to hire
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Approve an In -Lieu Fee Agreement template and Merit Criteria draft for Commercial Cannabis
November 7, 2017
Page 2
local, qualified Santa Ana residents and to use reasonable efforts to retain the services of
qualified, local contractors and suppliers located in Santa Ana. Utilizing in -lieu fee agreements
with commercial cannabis businesses is anticipated to result in an increase in General Fund
revenue. Estimates currently range from $9.1 million to $20.25 million per fiscal year.
The merit -based criteria will be used to evaluate applications for commercial cannabis
businesses. Each criteria is designed to promote sustainable community -benefiting practices,
including: community safety, youth, education, and recreation; economic development; and
community health, livability, engagement, and sustainability. Criteria will also address medical
marijuana collectives/cooperatives currently operating in Santa Ana, as well as those on the
"selected" or wait lists (Exhibit 2). As such, staff recommends approval of the in -lieu fee
agreement and merit -based criteria.
The City has identified a preliminary implementation timeline in order to comply with the AUMA
and process applications in a timely manner. The timeline is outlined below:
• December 2017: Finalize applications and procedures
• January 2018: Open registration application period for 30 days and review applications for
completeness and eligibility
• February: Open Regulatory Safety Permit (RSP) application period for 30 days
• March: Review RSP applications and determine eligibility
• April: Score RSP applications using merit -based criteria and award permits. City
Manager's Office to execute in -lieu fee agreements
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objective #2 (create new opportunities for business/job growth and encourage private
development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a
solutions -based customer focus in all efforts to facilitate development and investment in the
community), and Objective #5 (leverage private investment that results in tax base expansion
and job creation citywide).
FISCAL IMPACT
There
is no fiscal impact
associated with this action.
Candida Neal, AICP
Acting Executive Director
Planning & Building Agency
AP: rb S:IRFCA111-07-17-171PBA In Lieu Fee and Merit Catena RFCA
Exhibits: 1. In -lieu fee agreement template
2. Merit -based criteria
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IN -LIEU FEE AGREEMENT FOR COMMERCIAL CANNABIS BUSINESSES
This In -Lieu Fee Agreement ("Agreement") is dated 201_
between the City of Santa Ana, a charter city and municipal corporation ("City') and
, a ("(Dwner'), collectively referred to as "the Parties'. This
Agreement shall become effective on the date that Owner is issued a Regulatory Safety Permit
("RSP") for the operation of a commercial cannabis business by the City.
Public Benefit
A. Intent. The purpose of this In -Lieu Fee Agreement is to collect fees from commercial
cannabis businesses and to provide a fee for mitigation options to be used by the City to
compensate for impacts to City services, residents, and/or businesses as set forth in Santa
Ana Municipal Code section 40-2(22): The Parties agree that this Agreement confers
substantial private benefits on Owner which should be balanced by commensurate public
benefits. As part of the commercial cannabis RSP process, Owner agrees to enter into this
Agreement. Owner acknowledges that City and Owner have had extensive negotiations
and proceedings prior to entering into this Agreement. Owner has elected to execute this
Agreement as it provides Owner with important economic benefits. Accordingly, the Parties
intend to provide consideration to the public to balance the private benefits conferred on
Owner by providing mitigation measures to the public and to pay for City services as a result
of the fees collected.
B. Local Hiring. Owner agrees to use its reasonable efforts to hire qualified City residents
living in Santa Ana to work at its commercial cannabis business(es). Owner shall also use
reasonable efforts to retain the services of qualified contractors and suppliers who are
located in the City or who employ a significant number of City of Santa Ana residents.
Owner 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 Plan. Owner agrees to submit a Community Benefit Plan ("Plan") to
the City to be attached and incorporated into this Agreement as Exhibit A. Said Plan will
detail Owner's experience working with community-based groups such as school districts,
college districts, city or county agencies, non-profit organizations, artist or downtown groups.
Said Plan must also outline commitments by the cannabis business owner to engage his or
her staff in community service events or programs in the City of Santa Ana. Owner 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.
2. In -Lieu Fee Rates for Commercial Cannabis Businesses.
For each separate branch establishment or separate property location of the commercial
cannabis business, In -Lieu fees shall be paid monthly to the City based on each state
cannabis license type authorized and permitted as follows:
A. Every non -medicinal retail cannabis business as the terms are defined in Chapter 40 of
the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent
Exhibit (
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(8%) of the gross receipts generated or otherwise received. The monthly In -Lieu fee
shall not be less than Twenty-five Dollars ($25.00) per square foot of the non -medicinal
cannabis retail business prorated monthly at the rate of one -twelfth for each month or
fraction of a month.
B. Every commercial indoor cannabis cultivation business as the terms are defined in
Chapter 40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of
Eight Percent (8%) of the gross receipts generated or otherwise received. The monthly
In -Lieu fee shall not be less than Ten Dollars ($10.00) per square foot of the commercial
cannabis cultivation business prorated monthly at the rate of one -twelfth for each month
or fraction of a month.
C. Every commercial cannabis manufacturing business as the terms are defined in Chapter
40 of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight
Percent (8%) of the gross receipts generated or otherwise received. The monthly In -Lieu
fee shall not be less than Ten Dollars ($10.00) per square foot of the commercial
cannabis manufacturing business prorated monthly at the rate of one -twelfth for each
month or fraction of a month.
D. Every commercial cannabis distribution business as the terms are defined in Chapter 40
of the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight
Percent (8%) of the gross receipts generated or otherwise received. The monthly In -Lieu
fee shall not be less than Four Dollars ($4.00) per square foot of the commercial
cannabis distribution business prorated monthly at the rate of one -twelfth for each month
or fraction of a month.
E. Every commercial cannabis testing laboratory as the terms are defined in Chapter 40 of
the Santa Ana Municipal Code shall pay a monthly In -Lieu fee at a rate of Eight Percent
(8%). of the gross receipts generated or otherwise received. The monthly In -Lieu fee
shall not be less than Two Dollars ($2.00) per square foot of the commercial cannabis
testing laboratory prorated monthly at the rate of one -twelfth for each month or fraction
of a month.
F. The square footage referenced in Section 2(A) -(E) of this Agreement is based on the
gross square footage, at the rates specified above in subsections (A) -(E), for all
improvements owned, rented, leased or otherwise occupied, controlled, or used by the
commercial cannabis business at the permitted establishment or property location.
Square footage shall be calculated as follows:
Gross Square footage of every level of cannabis activity (including vertical and
horizontal areas where cannabis or any of its derivatives may be cultivated, grown,
harvested, packaged, processed or stored) as identified on the Building Plan set
submitted to and approved by the City.
3. In -Lieu Fees Not a Pass -Through Fee: Gross Receipts Defined.
A. Commercial cannabis businesses shall not pass the In -Lieu fee or any portion
thereof through to the commercial cannabis customer or other commercial
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cannabis business in any fashion except as part of the basic product sales price
or service price.
B. For the purposes of this Agreement, "gross receipts" shall mean any and all of
the following:
• Transfer of title or possession, exchange or barter, conditional or
otherwise, in any manner or by any means whatsoever, of tangible
personal property for a consideration including any monetary
consideration for commercial cannabis, including, but not limited
to, membership dues, reimbursements provided by members,
regardless of form, or the total amount of cash or in-kind
contributions, including all operating costs related to the growth,
cultivation, manufacture, distribution, testing, or provision of
commercial cannabis or any transaction related thereto.
• Anything else of value obtained by a cannabis business
• The total amount of the sale price of all sales
• The total amount charged or received for the performance of any
act, service or employment of whatever nature it may be, whether
or not such service, act or employment is done as a part of or in
connection with the sale of goods, wares, merchandise, for which
a charge is, made or credit allowed, including all refunds, cash
credits and properties of any amount or nature,
• Any amount for which credit is allowed by the seller to the
purchaser without any deduction therefrom, on account of the cost
of the property sold, the cost of materials used, the labor or
service cost, interest paid or payable, losses, or any .other
expense whatsoever; provided that cash discounts allowed or
payment on sales shall not be included.
• The amount of any federal, manufacturer's or importer's excise tax
included in the price of property sold, even though the
manufacturer or importer is also the retailer thereof and whether
or not the amount of such tax is stated as a separate charge.
C. "Gross receipts" shall not include the following:
• The amount of any federal tax imposed on or with respect to retail
sales whether or not the amount of such tax is stated as a separate
charge.
• The amount of any federal tax imposed on or with respect to retail
sales whether imposed upon the retailer or the consumer and
regardless of whether or not the amount of federal tax is stated to
customers as a separate charge. "Gross receipts" shall not include
the amount of any California state excise tax or state cultivation tax
regardless of whether or not the amount of such excise tax or
cultivation tax is stated to customers as a separate charge, or any
California state, city or city and county sales or use tax required by
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9
law to be included in or added to the purchase price and collected
from the consumer or purchaser, or such part of the sales price of any
property previously sold and returned by the purchaser to the seller
which is refunded by the seller by way of cash or credit allowances
given or taken as part payment on any property so accepted for
resale.
D. "Gross receipts" shall be calculated without any deduction on account of any of
the following:
• The cost of tangible property sold or bartered;
• The cost of materials or products used, labor or service cost,
interest paid, losses, or other expense; or
• The cost of transportation of the commercial cannabis, or other
property or product.
Remittance and Reporting.
A. Payment. Beginning as set forth below and monthly thereafter, each commercial
cannabis business is required to pay to the City the applicable In -Lieu fee set forth in
Sections 2 and 3 of this Agreement. In addition the commercial cannabis business
owner shall report to the City any gross receipts received during the preceding
monthly reporting period and shall remit to the City on or before the last day of the
month following the fees due and owing during said period as applicable. For
purposes of this section, month shall mean calendar month, and any fraction of a
month shall be deemed to be a whole month and In -Lieu fees shall begin to accrue
on the date that a person or entity first receives a Commercial Cannabis Regulatory
Safety Permit. When the last day of the month falls on a City Holiday or City Hall
Closure Date then the reporting/remittance date shall fall on the next City business
day following. When reporting/remitting is made by mail then the postmark date shall
serve as proof of timely reporting/remittance.
More than one location. The payment of the In -Lieu fee is required monthly for each
separate branch location or separate property location of the commercial cannabis
business and for each state cannabis license type approved by the state and
permitted by the City.
C. Records Inspection. Owner acknowledges and agrees that the City is empowered to
examine Owner's books and records, including tax returns, to ascertain the amount
of the fee due and owing. The City or its authorized agents have the power and
authority to examine such books and records at any reasonable time, including but
not limited to, during normal business hours. If the City wishes to inspect the areas
of the commercial cannabis business where cannabis is being cultivated, City must
provide Owner with written notice, with such notice being provided in a reasonable
time, requesting entry into the cultivation and curing areas. City agrees that all of its
employees or agents that enter the cultivation and curing areas shall follow all of the
policies and guidelines imposed on Owner's employees, including without limitation,
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the wearing of any clothing or equipment to insure that no pests or impurities shall
enter the cultivation and curing areas.
5. Past due date — Penalty; interest.
Any individual or entity who fails to pay the In -Lieu fees required by this Agreement when
due shall be subject to past due penalties and late interest as set forth herein.
For failure to fully pay any monthly fees when due the following past due penalty fees
shall be added:
A. Ten percent (10%) of the unpaid balance of said fees on the past due date thereof,
B. Fifteen percent (15%) of the unpaid balance of said fees on the first day of the
second month after the due date thereof;
C. Twenty-five percent (25%) of the unpaid balance of said fees on the first day of the
third month after the due date thereof; and
D. Fifty percent (50%) of the unpaid balance of said fees on the first day of the fourth
month after the due date thereof.
The City is not required to send a past due or other notice or bill to any person subject to the
provisions of this Agreement and failure to send such notice or bill shall not affect the validity
of any fee or late penalty due under the provisions of this Agreement. Owner shall be
considered past due if fees are not paid within thirty (30) days of the date they are due.
Interest of one percent (1 %) per month will be imposed on all past due amounts.
6. Term.
This Agreement shall start on the date indicated above and shall terminate on December 31,
2020 regardless of starting date unless terminated earlier in accordance with Section 13 of
this Agreement. The Agreement will have one (1) two-year year extension period until
December 31, 2022 exercisable by a writing executed by the City Manager and City
Attorney's Office with the approval of Owner.
7. Administration — Rules regulations and guidelines: interpretation/clarification.
In order to aid in the City's collection of fees due pursuant to this Agreement and to
ensure that all commercial cannabis business fees are consistent to the best of the City's
ability, the Executive Director of the Finance Department, with the concurrence of the City
Attorney, may promulgate rules, regulations, and guidelines, to implement and administer
this Agreement including, but not limited to rules, regulations, and guidelines harmonizing
this Agreement with the provisions of the Santa Ana Municipal Code, Charter, and state law
in any manner not inconsistent with the intent of this Agreement and which does not result
in an increase in the fees imposed herein. The Executive Director of the Finance
Department may also, with the concurrence of the City Attorney, interpret or clarify the
methodology of the fees, or any definition applicable to the fee, so long as such
interpretation or clarification (even if contrary to some prior interpretation or clarification) is
not inconsistent with the language of this Agreement.
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8. Payment of In -Lieu fee does not authorize unlawful business.
A. The payment of the In -Lieu fee required by this Agreement, and its acceptance by
the City, shall not entitle any person to carry on any commercial cannabis business
unless the person has complied with all of the requirements of the Santa Ana
Municipal Code and all other applicable laws, nor to carry on any commercial
cannabis business in any building or on any premises in the event that such building
or premises are situated in a zone or locality in which the conduct of such
commercial cannabis business is in violation of any law.
No fee paid under the provisions of this Agreement shall be construed as authorizing
the conduct or continuance of any illegal or unlawful business, or any legal business
in an illegal manner, or any business in violation of any ordinance of the City.
Nothing in this Agreement implies or authorizes that any activity connected with the
distribution or possession of cannabis is legal unless otherwise authorized and
allowed by Califomia and federal law. Nothing in this section shall be applied or
construed as authorizing the sale of cannabis.
9. Business License Required.
A business license is required for all persons engaged in transacting and carrying on any
commercial cannabis business activity in the City. It is unlawful for any person or legal entity
to commence, transact or carry on business in the City without first having procured a
business license from the City.
10. Operatinq Commercial Cannabis Business.
Owner 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 the 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 commercial cannabis 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 not required
by the State of California for the type of commercial cannabis facility or business
operation that is the subject of this Agreement.
C. Owner remains in compliance with any and all other laws and regulations pertaining
to commercial cannabis businesses.
11. Owner Indemnification of City.
A. Owner 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 Owner's performance and/or breach of this Agreement.
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Owner agrees to defend, at its sole expense, any action against City, its agents,
officers, and employees related to this Agreement. Owner agrees to indemnify and
reimburse the City for any court costs and attorney fees that the City may be
required to pay as a result of any legal challenge related to this Agreement and/or
the City's approval of a Regulatory Safety Permit. The 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 Owner of its obligation hereunder.
12. Compliance with Laws.
Owner 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.
13. Default and Termination for Cause.
A. This Agreement may be terminated by the City for cause with thirty (30) days'
written notice to Owner. Cause as used in this section, is defined as:
1) Failure to pay In -Lieu fees within 30 days of the date those fees are due;
2) Failure to comply with the terms of the Cannabis Regulatory Safety
Permit issued by the City of Santa Ana;
3) Unauthorized transfer of the Cannabis Regulatory Safety Permit issued
by the City of Santa Ana; or
4) Failure to accurately report data necessary to calculate in -lieu fees
B. Owner may cure the default resulting from thecause for termination within 30
days of the date of the notice of termination for cause. if Owner fails to cure the
default within thirty (30) days of the date of the notice of termination for cause,
this Agreement will be terminated.
C. This Agreement will be terminated by the City in the event that the City's
electorate pass a commercial cannabis tax applicable to Owner's commercial
cannabis business. In the event that occurs, this Agreement shall be terminated
on the date the new tax law goes into effect.
D. This Agreement will automatically terminate if:
1) Owner's Regulatory Safety Permit is revoked by the City or is not
renewed by the City, or
2) Owner's transfer of his or her Regulatory Safety Permit pursuant
to Santa Ana Municipal Code section 40-12.
14. 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.
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B. Each of the parties hereto may pursue any remedy at law or equity 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, to
Owner, or to any other person, and Owner covenants not to sue City for
damages or claim any damages:
1) For any breach of this Agreement or for any cause of action which arises out
of this Agreement; or
2) Arising out of or connected with any dispute, controversy or issue regarding
the application or interpretation or effect of the provisions of this Agreement.
15. Attornev's Fees and Costs
In any action or proceeding between City and Owner 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 15 include those incurred
during any appeal from an underlying judgment and in the enforcement of any judgment
rendered in any such action or proceeding.
16. 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
With courtesy 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
Fax 714-973-1461
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City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
Fax 714-647-6515
To Owner:
A party may change its address by giving 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, 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 shall be
excluded.
17. Exclusivity and Amendment.
This Agreement represents the complete and exclusive statement between the City and
Owner, 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 the City and by an
authorized representative of Owner. 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.
18. Assignment.
Owner may not assign or transfer any interest herein without the prior written consent of the
City and any such assignment or transfer without the City's prior written consent shall be
considered null and void.
19. Discrimination.
Owner shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by
applicable law, in the recruitment, selection, training, utilization, promotion, termination or other
employment related activities. Owner affirms that it is an equal opportunity employer and shall
comply with all applicable federal, state and local labor laws and regulations.
20. 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
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Orange County, California, shall be the venue for any action or proceeding that may be brought
or arise out of, in connection with or by reason of this Agreement.
21. 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.
22. 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.
23. Disclaimer
Despite California's commercial cannabis laws and the terms and conditions of this
Agreement or any Regulatory Safety Permit issued pertaining to Owner or the property specified
herein, California commercial cannabis cultivators, transporters, distributors, 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 et. seq., prohibits the manufacture,
distribution, and possession of cannabis without any exemptions for medical use.
24. 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 follows}
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Lisa Storck
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Candida Neal; Interim Executive Director
Planning & Building Agency
11
CITY OF SANTA ANA
RAUL GODINEZ II
City Manager
OWNER:
NAME:
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EXHIBIT 2
P / 5G-',/ 1297
Draft Commercial Cannabis Merit -Based Criteria and Possible Points
No.
Merit Criteria
Points
Public Safety
_
Maintains a security plan on file with the City that details all security measures required on-
site and that lists additional measures not required by Chapters 18 or 40 of the Santa Ana
1
Municipal Code.
1
Maintains a plan on file with the City to prevent the diversion of medicinal cannabis to
2
persons under the age of 18 or adult -use cannabis to persons under the age of 21.
1
Proposed location exceeds the 1,000 -foot buffer from sensitive land uses by 500 feet or
3
more (may not be combined with numbers 4 and 5).
1
Proposed location exceeds the 1,000 -foot buffer from sensitive land uses by 750 feet or
4
more (may not be combined with numbers 3 and 5).
2
Proposed location exceeds the 1,000 -foot buffer from sensitive land uses by 1,000 feet or
5
more (may not be combined with numbers 3 and 4).
3
Applicant or entity has no previous record of violating federal or state laws relating to
6
workplace safety, wages and compensation, discrimination, or union activity.
1
Certifies that the facility will not employ as managers, employees, or volunteers any person
7
with any drug-related felony or misdemeanor conviction.
1
Total Possible Points in Public Safety Sub -Category
7
Operations and History
Demonstrates experience with operating a permitted or licensed commercial cannabis
8
business for the last two (2) years.
1
9
Owner or operator provides career development training or courses to his or her staff.
1
Proposed site is located within one quarter -mile of a public transportation stop or station
10
measured from the primary entrance to the facility.
1
Demonstrates use of green technology or energy-saving equipment, or applicant purchases
11
carbon offsets or green sources of energy.
1
Owner or operator offers its employees incentives for using alternative modes of
12
transportation for work commutes.
1
Total Possible Points in Operations and History Sub -Category
5
Community Benefits*
Demonstrates involvement in the community, non-profit associations, or neighborhood
13
associations in non -cannabis related activities.
1
Demonstrates experience in working with local school districts to implement underage
14
drug use and drug abuse prevention programs.
1
Demonstrates experience in working with local school districts to implement youth
15
dropout prevention programs.
1
Demonstrates experience in providing financial or personnel support for a Santa Ana -based
16
cultural or arts program.
1
Demonstrates experience in financial or personnel support for an Orange County -based
17
homeless or affordable housing services program.
1
EXHIBIT 2
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Draft Commercial Cannabis Merit -Based Criteria and Possible faints
No.
Merit Criteria Points
Demonstrates experience in providing financial or personnel support for a Santa Ana -based
18
community health improvement program.
1
Owner or operator submits a program requiring employees to engage in volunteer park or
19
open space cleanup activities in Santa Ana to remove litter.
1
Total Possible Points in Community Benefits Sub -Category
7
Economic Development
20
Pays a living wage (at least 200% of the Federal Poverty Level for a family of two).
1
Provides employer -paid health insurance benefits for its employees, if not already required
21
and/or contributes to employee retirement accounts.
1
If the applicant is establishing a business in a building or tenant space that has been vacant
22
for at least three (3) years (may not be combined with number 23).
1
If the applicant is establishing a business in a building ortenant space that has been vacant
23
for at least four (4) years (may not be combined with number 22).
2
24
Commits to local hiring and local sourcing of contractors and suppliers.
1
Total Possible Points in Economic Development Sub -Category
5
Total Possible Points without Local Attributes Points
22
Local Attributes
Owner or operator has at least one year of experience operating a licensed cannabis
business in Santa Ana and is in good standing (may not be combined with any other "Local
25
Attributes" point).
2
Owner or operator as been on the Measure BB "selected" list for at least one (1) year (may
26
not be combined with any other "Local Attributes" point).
1
Owner or operator has been on the Measure BB waitlist for at least one (1) year (may not
27
be combined with any other "Local Attributes" point).
1
Total Possible Points in Local Attributes Sub -Category
2
Maximum Possible Points (AII Categories)
26
"A community benefits plan will be reviewed and incorporated into the required in -lieu fee agreement for any selected
commercial cannabis business operating in Santa Ana.
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