HomeMy WebLinkAboutItem No. 15 - PA No. 2018-46 Cannabis Facility 540 3rd St.City Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-102
Agenda Date: 3/8/2022 Status: Approval FinalVersion: 1
File Type: Council Public
Hearing
In Control: City Council / Successor Agency
Agenda Number: 15)
Planning Application No. 2018-46 (LECANNA) requesting to establish a new cannabis facility
within an existing 11,600 sq. ft. building located at 540 3rd Street
1.Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2018-17 TO ESTABLISH AN 11,600
SQUARE FOOT CANNABIS FACILITY LOCATED AT 540 3RD STREET (APN: 377-430-050); and
2.Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT NO.
2018-13 FOR AN 11,600 SQUARE FOOT CANNABIS FACILITY LOCATED AT 540 3RD STREET
(APN: 377-430-050).
Page 1 City of Lake Elsinore Printed on 3/4/2022
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Damaris Abraham, Planning Manager
Date: March 8, 2022
Subject: Planning Application No. 2018-46 (LECANNA) requesting to establish a new
cannabis facility within an existing 11,600 sq. ft. building located at 540 3rd
Street
Applicant: Paul S. Cadaret, LECANNA, LLC
Recommendation
1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2018-17 TO ESTABLISH AN
11,600 SQUARE FOOT CANNABIS FACILITY LOCATED AT 540 3RD STREET (APN: 377-
430-050); and,
2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT
AGREEMENT NO. 2018-13 FOR AN 11,600 SQUARE FOOT CANNABIS FACILITY
LOCATED AT 540 3RD STREET (APN: 377-430-050).
Background
This application for a new cannabis business was submitted for review and processing on April
16, 2018, which was one of the original applications submitted to the City for processing. During
the review process the original applicant, Holy Cone, discontinued the processing of the
application. The property owner, LECANNA, LLC, has since revised the application materials and
pursued the application review process to completion. This has resulted in the delay of the
application review and processing.
To date, the City Council has approved 19 cannabis facilities with a combined operating area of
approximately 209,700 SF. Of these 19 facilities, 9 have opened with a combined area of
approximately 107,857 SF. A summary of these facilities with current status has been included in
Exhibit I.
Planning Commission Action
At the February 1, 2022, Planning Commission meeting, the Planning Commission accepted
public oral and written testimony regarding this project that included email correspondence from
PA 2018-46 (LECANNA)
CC: March 8, 2022
Page 2 of 4
Matt Doll dated January 31, 2022, Robin Ellis dated January 31, 2022, and Lawrence Null dated
January 31, 2022. These email correspondences along with the applicant responses are attached
to the staff report as Exhibit H. The issues raised in these emails include traffic, parking, and
security. Staff has addressed these issues as follows:
1. Traffic: The Project was required to complete a Trip Generation Analysis. The Analysis
found that the project will have less than significant impact to nearby roadways and
intersection. The proposed project does not propose an intensification or expansion of use
that would require the preparation of a Traffic Impact Analysis.
2. Parking: The Project has 28 parking spaces dedicated for this property, which is sufficient
for the proposed project.
3. Security: The Project is required to provide a site security plan and keep the property in
good repair. Conditions of Approval Nos. 31 through 34 require the project to provide a
site security plan. Conditions of Approval Nos. 19, 21 through 23 have been included to
ensure that the property is kept in good repair.
The Planning Commission recommended approval the project with a 5-0 vote.
Project Description
Planning Application No. 2018-46 (Development Agreement No. 2018-13 and Conditional
Use Permit No. 2018-17) proposes to establish a 11,600 SF cannabis facility that includes: retail
dispensary space (<2,300 SF); distribution/delivery space (<25% of the project SF); cultivation,
manufacturing, and/or Type-S licensee support space (>=50% of the project SF); and ancillary
functions (<25% of the project SF). All cannabis use spaces shall be located within an existing
building or enclosed/secured spaces that lie within the walled/gated rear yard area (Project).
The Project is generally located at the northeast corner of Pasadena and 3rd Street and more
specifically referred to as 540 3rd Street, Lake Elsinore, CA 92530 (APN: 377-430-050).
Analysis
General Plan Consistency
The subject site has a General Plan Land Use Designation of Limited Industrial (LI) and is in the
Business District. The LI designation provides for industrial parks, warehouses, manufacturing,
research and development, public and quasi-public uses, and similar and compatible uses. The
subject use includes a variety of manufacturing, distribution and warehousing uses for the
production of cannabis products. The proposed facility is located within existing building and does
not propose or is allowed to have exterior operations. The proposed cannabis facility will help to
further the goals of the Business District by introducing new land uses to an existing mix of
industrial and quasi-commercial uses in the vicinity. The proposed facility will further the goals of
the Business District and would create high paying jobs, reduced vacancy rates, and increased
investment in the existing industrial parks. Therefore, the Project is consistent with the General
Plan.
PA 2018-46 (LECANNA)
CC: March 8, 2022
Page 3 of 4
Municipal Code Consistency
The subject property has a base zoning designation of Limited Manufacturing (M-1). The
proposed cannabis facility is located wholly within existing an industrial park, which has been
previously analyzed for consistency with the base district development standards and other
criteria and were found to be consistent with the applicable base zoning designations. A review
of the current operational characteristics did not find any code violations and the building are
following the base district regulations as well.
With respect to Cannabis related land uses, Chapter 17.156 Cannabis Uses, of the Lake Elsinore
Municipal Code (LEMC), specifically regulate these uses. The proposed cannabis facility has
been analyzed for the consistency with these operational requirements and the proposed facility
has been found to meet these requirements. In addition to the code requirements, additional detail
information was specified in the application materials these include the following:
Fire protection plan
Closure plan, i.e., a plan to fully restore the occupied space to the condition that existed
before the establishment of a cannabis related facility and the posting of a bond so that
the City could authorize the work without incurring financial liability
Information related to project proponents
Project specific details as to the operational characteristics identifying the number of
employees, production quantities and values, and other pertinent information.
These additional details were required to ensure that the proposed facility operated in a safe
manner and would not create unintended impacts during the construction, operation and closure
of these facilities. Staff has reviewed these additional details and have found that the materials
submitted demonstrate that the proposed cannabis facility would operate in a manner that would
not adversely impact the adjacent business in operation.
Because the proposed cannabis facility meet the minimum code requirements and does not
propose any adverse impacts on adjacent businesses, they have been found consistent with the
Municipal Code. In addition, Conditions of Approval have been prepared that would mitigate any
potential issues associated with the future development and establishment of the use. Building
and Safety and Fire divisions will conduct occupancy inspection to ensure the space is adequate
for the proposed use.
Environmental Determination
The proposed Project is exempt from the California Environmental Quality Act (Cal. Pub. Res.
Code §§21000 et seq.: “CEQA”) and the CEQA Guidelines (14 C.C.R. §§ 15000 et seq.) pursuant
to CEQA Guidelines Section 15301 (Class 1: Existing Facilities) (a) Interior or exterior alterations
involving such things as interior partitions, plumbing, and electrical conveyances:
The project is located within an existing building.
The proposed project does not propose an intensification of use that would require the
preparation of a Traffic Impact Analysis. Per the Trip Generation Analysis prepared by K2
Traffic Engineering, Inc., dated April 5, 2021, the proposed used will generate 22 trips in
PA 2018-46 (LECANNA)
CC: March 8, 2022
Page 4 of 4
the AM peak hour and 49 trips in the PM peak hour which is below the threshold of 50
trips in the AM and PM peak hour. The project is expected to have no or less than
significant impact to nearby roadways and intersections. Therefore, no further study of
traffic impact is required.
The proposed project does not create an expansion or intensification of use beyond which
was previously analyzed as a part of the original project’s environmental assessment.
Fiscal Impact
The time and costs related to processing this application have been covered by application fees
paid for by the applicant. No General Fund budgets have been allocated or used in the processing
of this application.
Exhibits
A – DA Ordinance
A1 – Development Agreement
B – CUP Resolution
C – Conditions of Approval
D – Vicinity Map
E – Aerial Map
F – Project Plans
G – Trip Generation Analysis
H – Correspondence
I – Summary of Entitled and Pending Cannabis Applications
RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2018-17 TO
ESTABLISH AN 11,600 SQUARE FOOT CANNABIS FACILITY LOCATED AT 540
3RD STREET (APN: 377-430-050)
Whereas, Paul S. Cadaret, LECANNA, LLC, has filed an application with the City of Lake
Elsinore (City) requesting approval of Planning Application No. 2018-46 (Development
Agreement No. 2018-13 and Conditional Use Permit No. 2018-17) proposing to establish a 11,600
SF cannabis facility that includes: retail dispensary space (<2,300 SF); distribution/delivery space
(<25% of the project SF); cultivation, manufacturing, and/or Type-S licensee support space
(>=50% of the project SF); and ancillary functions (<25% of the project SF). All cannabis use
spaces shall be located within an existing building or enclosed/secured spaces that lie within the
walled/gated rear yard area (Project). The Project is generally located at the northeast corner of
Pasadena and 3rd Street and more specifically referred to as 540 3rd Street, Lake Elsinore, CA
92530 (APN: 377-430-050); and,
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat
Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell
undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze
the scope of the proposed development and establish a building envelope that is consistent with
the MSHCP criteria; and,
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency
findings demonstrating that the proposed discretionary entitlement complies with the MSHCP
Criteria Cell, and the MSHCP goals and objectives; and,
Whereas, Section 17.415.070 of the Lake Elsinore Municipal Code (LEMC) provides that
certain uses are desirable but may have operational characteristics that disproportionately impact
adjoining properties, businesses, or residents. Accordingly, such uses require a more
comprehensive review and approval procedure, including the ability to condition the project in
order to mitigate significant impact; and,
Whereas, pursuant Section 17.415.070 (Conditional Use Permits), Section 17.410.070
(Approving Authority), and Section 17.410.030 (Multiple Applications) of the LEMC, the Planning
Commission (Commission) has been delegated with the responsibility of making
recommendations to the City Council (Council) pertaining to conditional use permits; and,
Whereas, on February 1, 2022 at a duly noticed Public Hearing the Commission has
considered evidence presented by the Community Development Department and other interested
parties with respect to this item; and,
Whereas, pursuant to Section 17.410.070 of the LEMC, the Council has the responsibility
of making decisions to approve, conditionally approve, or disapprove recommendations of the
Commission for conditional use permits; and,
Whereas, on March 8, 2022 at a duly noticed Public Hearing, the Council has considered
the recommendation of the Commission as well as evidence presented by the Community
Development Department and other interested parties with respect to this item.
CC Reso. No. 2022-____
Page 2 of 4
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: The Council has considered the Project and has found it acceptable.
Section 2: That in accordance with the MSHCP, the Council makes the following findings
for MSHCP consistency:
1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional
Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.
2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and
the Fuel Management Guidelines as the Project is wholly located within an existing
building and does not include any earth disturbing activities therefore Sections 6.1.2 or
6.3.1 of the MSHCP are not applicable.
3. The project is consistent with the Protection of Narrow Endemic Plant Species Guidelines
and the Additional Survey Needs and Procedures because the project is not located within
any Narrow Endemic Plant Species Survey Areas or Critical Species Survey Areas.
4. The Project is consistent with the Fuels Management Guidelines because the Project site
is not within or adjacent to any MSHCP Criteria Cell or conservation areas.
5. The project has been conditioned to pay any applicable MSHCP Local Development
Mitigation fees.
Section 3: The Council hereby finds and determines that the Project is categorically
exempt from California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”)
and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section
15301 (Class 1 – Existing Facilities), because the Project proposes to establish a Cannabis
Facility within an existing building. The site is fully developed, and only minor interior alterations
are planned in association with the proposed use.
Section 4: That in accordance with LEMC Section 17.415.070.C. Findings, the Council
makes the following findings regarding Conditional Use Permit No. 2018-17:
1. That the proposed use, on its own merits and within the context of its setting, is in accord
with the objectives of the General Plan and the purpose of the planning district in which
the site is located.
The proposed Project is located in the Limited Industrial (LI) General Plan Land use
designation and the Limited Manufacturing (M-1) Zoning designation, which is consistent
with the applicable General Plan Land Use Designation. The proposed use is a permitted
use subject to the approval of a Conditional Use Permit within the M-1 Zoning designation.
2. The proposed use will not be detrimental to the general health, safety, comfort or general
welfare of persons residing or working within the neighborhood of the proposed use or the
City, or injurious to property or improvements in the neighborhood or the City.
The proposed use will be located within an existing building. The proposed use does not
propose either directly or indirectly any detrimental effects to the existing surrounding
CC Reso. No. 2022-____
Page 3 of 4
community. The Project has been conditioned as such to avoid any possible negative
impacts associated with the conversion and operation of the proposed facility.
3. The site for the intended use is adequate in size and shape to accommodate the use, and
for all the yards, setbacks, walls or fences, landscaping, buffers and other features
required by this title.
The proposed use has been analyzed and staff has determined that the proposed use
meets all applicable sections of the LEMC and will complement the existing uses, based
on the submitted plans and attached conditions of approval.
4. The site for the proposed use relates to streets and highways with proper design both as
to width and type of pavement to carry the type and quantity of traffic generated by the
subject use.
The proposed use is located within an existing built environment, inclusive of streets. The
existing streets are of adequate size to facilitate safe and convenient transportation to and
from the site.
5. In approving the subject use at the specific location, there will be no adverse effect on
abutting properties or the permitted and normal use thereof.
The Project has been thoroughly reviewed and conditioned by all applicable City
departments thereby eliminating the potential for any adverse effects.
6. Adequate conditions and safeguards pursuant to Section 17.168.050 of the LEMC,
including guarantees and evidence of compliance with conditions, have been incorporated
into the approval of the subject Project to ensure development of the property in
accordance with the objectives of this chapter and the planning district in which the site is
located.
Pursuant to Section 17.415.070.B of the LEMC, the Project was considered by the
Commission at a duly noticed Public Hearing on February 1, 2022, and subsequently by
the City Council at a noticed Public Hearing on March 8, 2022,appropriate and applicable
conditions of approval have been included to protect the public health, safety and general
welfare.
Section 5: Based upon the evidence presented, both written and testimonial, and the
above findings, the Council hereby finds that the Project is consistent with the MSHCP.
Section 6: Based upon the evidence presented, the above findings, and the Conditions
of Approval imposed upon the Project, the Council hereby approves Conditional Use Permit No.
2018-17.
Section 7: This Resolution shall take effect immediately upon its adoption.
Section 6: The City Clerk shall certify to the adoption of this Resolution and enter it into
the book of original Resolutions.
Passed and Adopted on this 8th day of March, 2022.
CC Reso. No. 2022-____
Page 4 of 4
Timothy J. Sheridan
Mayor
Attest:
___________________________________
Candice Alvarez, MMC
City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2022-____ was adopted by the City Council of the City of Lake Elsinore, California,
at the regular meeting of March 8, 2022, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT NO. 2018-13 FOR AN
11,600 SQUARE FOOT CANNABIS FACILITY LOCATED AT 540 3RD STREET
(APN: 377-430-050)
Whereas, Paul S. Cadaret, LECANNA, LLC, has filed an application with the City of Lake
Elsinore (City) requesting approval of Planning Application No. 2018-46 (Development
Agreement No. 2018-13 and Conditional Use Permit No. 2018-17) proposing to establish a 11,600
SF cannabis facility that includes: retail dispensary space (<2,300 SF); distribution/delivery space
(<25% of the project SF); cultivation, manufacturing, and/or Type-S licensee support space
(>=50% of the project SF); and ancillary functions (<25% of the project SF). All cannabis use
spaces shall be located within an existing building or enclosed/secured spaces that lie within the
walled/gated rear yard area (Project). The Project is generally located at the northeast corner of
Pasadena and 3rd Street and more specifically referred to as 540 3rd Street, Lake Elsinore, CA
92530 (APN: 377-430-050); and,
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat
Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell
undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze
the scope of the proposed development and establish a building envelope that is consist ent with
the MSHCP criteria; and,
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency
findings demonstrating that the proposed discretionary entitlement complies with the MSHCP
Criteria Cell, and the MSHCP goals and objectives; and,
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore
Municipal Code (LEMC) the Planning Commission (Commission) has been delegated with the
responsibility of reviewing and making a recommendation to the City Council (Council) whether
the development agreement is consistent with the City’s General Plan and whether to approve
the development agreement; and,
Whereas, on February 1, 2022, at a duly noticed Public Hearing, the Commission has
considered evidence presented by the Community Development Department and other interested
parties with respect to this item; and,
Whereas, pursuant to Chapter 19.12 (Development Agreements), the Council has the
responsibility of making decisions to approve, conditionally approve, or disapprove
recommendations of the Commission for Development Agreements; and,
Whereas, on March 8, 2022, at a duly noticed Public Hearing, the Council has considered
the recommendation of the Commission as well as evidence presented by the Community
Development Department and other interested parties with respect to this item.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: That in accordance with the MSHCP, the Council makes the following findings
for MSHCP consistency:
Ord. No. 2022-____
Page 2 of 5
1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional
Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.
2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and
the Fuel Management Guidelines as the Project is wholly located within an existing
building and does not include any earth disturbing activities therefore Sections 6.1.2 or
6.3.1 of the MSHCP are not applicable.
3. The Project is consistent with the Protection of Narrow Endemic Plant Species Guidelines
and the Additional Survey Needs and Procedures because the project is not located within
any Narrow Endemic Plant Species Survey Areas or Critical Species Survey Areas.
4. The Project is consistent with the Fuels Management Guidelines because the Project site
is not within or adjacent to any MSHCP Criteria Cell or conservation areas.
5. The Project has been conditioned to pay any applicable MSHCP Local Development
Mitigation fees.
Section 2: The Council hereby finds and determines that the Project is categorically
exempt from California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”)
and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section
15301 (Class 1 – Existing Facilities), because the Project proposes to establish a Cannabis
Facility within an existing building. The site is fully developed, and only minor interior alterations
are planned in association with the proposed use.
Section 3: That in accordance with California Planning and Zoning Law and the Section
19.12.070 (Planning Commission report) of the LEMC, the Council makes the following findings
regarding Development Agreement No. 2018-13:
1. It is consistent with the objectives, policies, general land uses and programs specified in
the General Plan and any applicable specific plan.
The proposed Development Agreement will help to offset the potential costs incurred by
the City associated with the establishment of a Cannabis related facility within an industrial
district. The Project site’s General Plan Land Use designation is Limited Industrial (LI).
The proposed Project is consistent the LI land use designation and with the objectives,
policies, general land uses and programs specified in the General Plan.
2. It is compatible with the uses authorized in, and the regulations prescribed for, the land
use district in which the real property is located.
The proposed Development Agreement will facilitate the establishment of the Cannabis
related facility within an existing building. The Project is located in the Limited Industrial
(LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning
designation, which is consistent with the applicable General Plan Land Use Designation.
The proposed use is a permitted use subject to the approval of a Conditional Use Permit
within the M-1 Zoning designation.
3. It is in conformity with public convenience, general welfare and good land use practices.
Ord. No. 2022-____
Page 3 of 5
The proposed Cannabis related facility which will be facilitated through the proposed
Development Agreement was found to be a high value development which will have
beneficial impacts to the surrounding community. Furthermore, the Project has been
reviewed and conditioned by all applicable City departments to reduce the potential for
any adverse effects.
4. It will not be detrimental to the health, safety and general welfare.
The proposed Development Agreement will facilitate the establishment of a Cannabis
related facility within an existing building. The proposed Project has been reviewed and
conditioned by all applicable City departments to reduce the potential for any adverse
effects to the health, safety and general welfare.
5. It will not adversely affect the orderly development of property or the preservation of
property values;
The proposed Development Agreement will facilitate the establishment of a Cannabis
related facility within an existing building. The proposed use has been analyzed and staff
has determined that the proposed use meets all applicable sections of the LEMC and will
complement the existing uses. The Project was found not to adversely affect the orderly
development of property or the preservation of property values.
6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.
The proposed Development Agreement includes all mandatory provisions required by
Government Code § 65865.2 and does not include any provisions that are not authorized
by the Development Agreement Act.
Section 4: Based upon the evidence presented, both written and testimonial, and the
above findings, the Council finds that the Project is consistent with the MSHCP.
Section 5: Based upon the evidence presented, the above findings, and the Conditions
of Approval imposed upon the Project, the Council hereby approves Development Agreement No.
2018-13.
Section 6: Severability. If any provision of this Ordinance or its application is held
invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions,
sections, or applications of the Ordinance which can be given effect without the invalid provision
or application, and to this end each phrase, section, sentence, or word is declared to be severable.
Section 7: Effective Date. This Ordinance shall become effective at 12:01 a.m. on
the thirty-first (31st) day after the date of adoption.
Section 8: Certification. The City Clerk shall certify to the passage of this Ordinance
and shall cause a synopsis of the same to be published according to law.
Passed and Adopted on this _____day of __________, 2022.
Ord. No. 2022-____
Page 4 of 5
____________________________
Timothy J. Sheridan
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, do hereby certify that the
foregoing Ordinance No. 2022-_____ was introduced at the Regular meeting of March 8, 2022,
and adopted by the City Council of the City of Lake Elsinore at its Regular meeting of ________,
2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
I further certify that said Synopsis was published as required by law in a newspaper of general
circulation in the City of Lake Elsinore, California on the _____day of __________, 2022, and
on the ______day of _________, 2022.
____________________________
Candice Alvarez, MMC
City Clerk
Ord. No. 2022-____
Page 5 of 5
Exhibit A
@BCL@CC139115
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
(Space Above Line For Recorder’s Use Only)
(Exempt from Recording Fees Per Gov. Code § 27383)
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE
CITY OF LAKE ELSINORE
AND
LECANNA, LLC
-1-
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND LECANNA, LLC
This Development Agreement (“Agreement”), dated for identification only as of January
1, 2022, is made by and between the City of Lake Elsinore, a California municipal corporation
(“City”), and LECANNA, LLC, a California limited liability company (“Developer”). This
Agreement shall take effect on the “Effective Date,” as this term is hereafter defined. City and
Developer may each be referred to herein individually as a “Party” or collectively as the “Parties.”
RECITALS
A. In 1996, the California Legislature approved Proposition 215, also known as the
Compassionate Use Act (“CUA”), which was codified under Health and Safety Code section
11262.5 et sec., and was intended to enable persons in need of medical marijuana for specified
medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain
and use marijuana under limited circumstances and where recommended by a physician. The CUA
provides that “nothing in this section shall be construed or supersede legislation prohibiting
persons from engaging in conduct that endangers others, or to condone the diversion of marijuana
for non-medical purposes.”
B. In 2004, the California Legislature enacted the Medical Marijuana Program Act
(Health & Saf. Code, § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created
a state-approved voluntary medical marijuana identification card program, and authorized cities to
adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and
Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties
and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a
medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances.
C. In September 2015, the California State Legislature enacted, and Governor Brown
signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which
together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The
MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture,
retail, sale, transport, distribution, delivery, and testing of medical cannabis.
D. The MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the
“MCRSA”), under Senate Bill 837 in June 2016, which also made included substantive changes
to the applicable state laws, which affect the various state agencies involved in regulating cannabis
businesses as well as potential licensees.
E. On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act
(“AUMA”) was approved California voters as Proposition 64 and became effective on November
9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a).). Proposition 64
legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal
cultivation of up to six (6) cannabis plants.
-2-
F. AUMA also created a state regulatory and licensing system governing the
commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing
of nonmedical cannabis products.
G. On June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill
94. Senate Bill 94 combined elements of the MCRSA and AUMA to establish a streamlined
singular regulatory and licensing structure for both medical and nonmedical cannabis activities.
The new consolidated provisions under Senate Bill 94 is now known as the Medicinal and Adult-
Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau
of Cannabis Control. MAUCRSA refers to medical cannabis as “medicinal cannabis” and
nonmedical/recreational cannabis as “adult-use cannabis.”
H. On September 16, 2017, Governor Brown signed Assembly Bill 133 into law,
which provided cleanup and substantive changes to MAUCRSA, including the removal of the
requirement that licensed premises remain “separate and distinct” for each license type.
I. MAUCRSA grants local jurisdictions discretion over whether businesses engaged
in commercial cannabis activity may operate in a particular jurisdiction and, if authorized, where
within such jurisdiction.
J. On November 28, 2017, the City Council approved Ordinance No. 1382 amending
the Lake Elsinore Municipal Code (“LEMC”) Chapter 17.156 to: (i) require all cannabis
businesses in the City to have a State license and a City cannabis business permit; (ii) establish
procedures for the review and issuance of a cannabis business permit ; (iii) to allow cannabis
dispensaries, cannabis distribution, indoor cannabis cultivation, cannabis manufacturing and
cannabis testing laboratories in M-1 (limited manufacturing) and M-2 (general manufacturing)
zoning districts; and (iv) establish regulations related to such activities.
K. Ordinance No. 1382 allows persons to engage in a permissible “Cannabis Business”
upon the City’s issuance of a “Cannabis Business Permit,” which requires City approval of a
conditional use permit, development agreement, and other applicable approvals.
L. Developer has an equitable interest in that certain real property located at 540 3rd
Street, in the City of Lake Elsinore, County of Riverside, State of California, Assessor’s Parcel
Number 377-430-050, which is within a manufacturing zoning district (the “Site”).
M. The Site is more particularly described in the legal description attached hereto as
Exhibit A, and the combined Site Plan and Floor Plan is attached hereto as Exhibit B.
N. Developer affirms that it has an equitable interest in the Site, evidenced in writing
with the owner of the Site, Cadaret Management, LLC, a California limited liability (the “Property
Owner”), for the purpose of carrying out the Project.
O. The Property Owner has provided notarized written consent to the terms of this
Agreement and the recordation thereof, attached hereto as Exhibit C.
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P. Developer proposes to improve, develop, and use the Site for a Cannabis Business
(as defined below), in accordance with California Cannabis Laws (as defined below) and the
LEMC, as each may be amended from time to time (the “Project”).
Q. To strengthen the public planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the California Legislature
adopted Government Code section 65864 et seq. (the “Development Agreement Statute”), which
authorizes the City and an individual with an interest in real property to enter into a development
agreement that establishes certain development rights in real property that is subject to a
development agreement application.
R. Consistent with the requirements of the Development Agreement Statute, the City
adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”) authorizing the use of and
establishing the procedures and requirements for the consideration of development agreements
within the City.
S. LEMC, Section 19.12.010 requires submittal of an application along with
information and supporting data as requested by the Director of Community Development for
consideration of any development agreement. Developer has satisfied this requirement.
T. On ______________, 2021, the City of Lake Elsinore Planning Commission held
a duly noticed public hearing to consider the Developer’s application for this Agreement.
U. On ______________, 2022, the City Council held a duly noticed public hearing to
consider this Agreement and found and determined that this Agreement: (a) is consistent with the
objectives, policies, general land uses and programs specified in the City’s General Plan and any
applicable specific plan; (b) is compatible with the uses authorized in, and the regulations
prescribed for the Site and the surrounding area and will not adversely affect the orderly
development of the Site or the preservation of property values; (c) is in conformity with public
convenience, general welfare and good land use practices; (d) will have an overall positive effect
on the health, safety and welfare of the residents of and visitors to the City; and (e) constitutes a
lawful, present exercise of the City’s police power and authority under the Development
Agreement Statute and Development Agreement Ordinance.
V. Based on the findings set forth in Section 1.1, the City Council entered into this
Agreement pursuant to and in compliance with the requirements of the Development Agreement
Statute and the Development Agreement Ordinance; and did therefore, in approving this
Agreement introduce for first reading Ordinance No. 2022-____ (the “Enabling Ordinance”). On
___________, 2022, the City Council conducted the second reading of the Enabling Ordinance
thereby approving this Agreement, to become effective thirty (30) days after the adoption thereof.
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NOW, THEREFORE, in consideration of the mutual terms, obligations, promises,
covenants and conditions contained herein and for other valuable consideration, the sufficiency of
which is hereby acknowledged, the Parties, and each of them, agree as follows:
AGREEMENT
ARTICLE 1.
GENERAL PROVISIONS
1.1. Findings. City hereby finds and determines that entering into this Agreement
furthers the public health, safety, and general welfare and is consistent with the City’s General
Plan.
1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into
and made a part of this Agreement. In the event of any inconsistency between the Recitals and the
provisions of Articles 1 through 9 of this Agreement, the provisions of Articles 1 through 9 shall
prevail.
1.3. Exhibits. The following “Exhibits” are attached to and incorporated into this
Agreement:
Exhibit A Legal Description
Exhibit B Site Plan and Floor Plan
Exhibit C Property Owner Consent
1.4. Definitions. All following initially-capitalized words, terms, and phrases have the
meanings assigned to them below, unless the context indicates otherwise.
“Additional City Approvals” means all ministerial and discretionary permits,
licenses, or other similar entitlements that must be secured by the Developer in order to develop
the Project on the Site, in addition to the Conditional Use Permit and the Cannabis Business Permit.
“Additional Insureds” has the meaning set forth in Section 5.1.
“Agreement” means this Development Agreement and all Exhibits attached hereto.
“AUMA” has the meaning as set forth in the Recitals, above.
“California Building Standards Codes” means the California Building Code, as
amended from time to time, in Part 2, Volumes 1 and 2, as part of Title 24 of the California Code
of Regulations, as may be adopted by the LEMC.
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“California Cannabis Laws” includes AUMA, MAUCRSA, CUA, the MMP, and
the regulations adopted and promulgated by the State Licensing Authorities pursuant to such laws,
as such laws and regulations may be amended from time to time.
“Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica,
or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin,
whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks
of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable
of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as
defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term “marijuana”
may be used interchangeably.
“Cannabis Business” includes cultivation, possession, manufacture, processing,
storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis or a
cannabis product that requires a state license pursuant to MAUCRSA.
“Cannabis Business Permit” means the City permit established and authorized by
LEMC, Section 17.156.040, authorizing permissible Cannabis Business activity which can only
be issued upon City approval of a conditional use permit, development agreement, and Additional
City Approvals for each proposed Cannabis Business activity project.
“City” means the City of Lake Elsinore, a municipal corporation.
“City Council” means the City of Lake Elsinore City Council as described in
LEMC, Chapter 2.08.
“City Manager” means the City Manager of the City of Lake Elsinore, or designee,
as described in LEMC, Chapter 2.04.
“Community Benefits” has the meaning set forth in Section 4.1 of this Agreement.
“Community Benefits Fees” has the meaning set forth in Section 4.2 of this
Agreement.
“Conditional Use Permit” means Conditional Use Permit No. 202__-___ issued
by the City to Developer on _____________ __, 2022, pertaining to Developer’s development of
the Project and any subsequent amendments thereto.
“CUA” has the meaning as set forth in the Recitals, above.
“Developer” means LECANNA, LLC, a California limited liability company.
“Development Agreement Ordinance” has the meaning as set forth in the Recitals,
above.
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“Development Agreement Statute” has the meaning as set forth in the Recitals,
above.
“Development Regulations” means the following regulations as they are in effect
as of the Effective Date and to the extent they govern or regulate the development of the Site, but
excluding any amendment or modification to the Development Regulations adopted, approved, or
imposed after the Effective Date that impairs or restricts Developer’s rights set forth in this
Agreement, unless such amendment or modification is expressly authorized by this Agreement or
is agreed to by Developer in writing: the City’s General Plan; any existing Specific Plan that
include the Site, and, to the extent not expressly superseded by this Agreement, all other land use
and subdivision regulations governing the permitted uses, density and intensity of use for obtaining
required City permits and approvals for development, and similar matters that may apply to
development of the Project on the Site during the Term of this Agreement that are set forth in Title
16 of the LEMC (Subdivisions), Title 17 of the LEMC (Zoning), and Title 19 of the LEMC
(Development). Notwithstanding the foregoing, the term “Development Regulations,” as used
herein, does not include any City ordinance, resolution, code, rule, regulation or official policy
governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii)
taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of
encroachment permits and the conveyance of rights and interests which provide for the use of or
the entry upon public property; (v) the exercise of the power of eminent domain; or (vi) the
California Building Standards Codes.
“Effective Date” has the meaning as set forth in Section 1.6.
“Exhibits” has the meaning set forth in Section 1.3.
“Floor Area” means rentable interior floor area at the Site; rentable square footage
measured based on Building Owners and Managers Association International industrial building
standards.
“Marijuana” has the same meaning as cannabis and those terms may be used
interchangeably.
“MAUCRSA” has the meaning as set forth in the Recitals, above.
“MCRSA” has the meaning as set forth in the Recitals, above.
“MMP” has the meaning as set forth in the Recitals, above.
“MMRSA” has the meaning as set forth in the Recitals, above.
“Mortgage” has the meaning set forth in Article 6.
“Non-Payment Penalty” has the meaning set forth in Section 4.3.
“Notice of Non-Payment Penalty” has the meaning set forth in Section 4.3.
“Project” has the meaning as set forth in the Recitals, above.
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“Property Owner” means Cadaret Management, LLC, a California limited liability
company.
“Regulatory Fees” mean charges owed by the Developer to the City for the City’s
costs incurred in processing applications related to the Project, administering its cannabis-related
ordinance with regard to the Project, and monitoring legal compliance of the Project on the Site,
including, but not limited to building and safety-related inspections by the City.
“Site” has the meaning as set forth in the Recitals, above.
“State Cannabis License” means a license, including a provisional license, to
conduct Cannabis Business activities issued by a State Licensing Authority to Developer for the
Development of the Project on the Site.
“State Licensing Authority” means the state agency(ies) responsible for the
issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency(ies)
authorized to take disciplinary action against a business licensed under the California Cannabis
Laws.
“Term” has the meaning described in Section 1.7.
“Term Commencement Date” has the meaning described in Section 1.7.
1.5. Project is a Private Undertaking. The Parties agree that the Project is a private
development and that City has no interest therein, except as authorized in the exercise of its
governmental functions. City shall not for any purpose be considered an agent of Developer or the
Project.
1.6. Effective Date of Agreement. This Agreement shall become effective (the
“Effective Date”) upon the date when all of the following conditions have been satisfied: (i) the
City ordinance approving this Agreement becomes effective; (ii) this Agreement has been fully
executed by the Parties; and (iii) the Developer submits its application to the City for a Cannabis
Business Permit with evidence of insurance coverage in favor of the City as set forth in Article 5
of this Agreement.
1.7. Term. The term of this Agreement (the “Term”) shall be twenty (20) years
commencing from the issuance of the Cannabis Business Permit to Developer for the Project (the
“Term Commencement Date”). Nothing in this Section 1.7 shall prohibit or otherwise restrict the
termination of this Agreement in accordance with Section 1.8.
1.8. Termination.
a. This Agreement shall terminate upon the occurrence of any of the following
events:
i. the expiration of the Term;
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ii. the Developer has ceased all operations related to the Project on the Site
for a period of two years or more;
iii. provided that Developer is not in default of this Agreement, upon written
notice from Developer to the City pursuant to Section 9.2, that (1)
Developer has ceased all Cannabis Business operations at the Site, (2)
Developer relinquishes its Conditional Use Permit, (3) Developer
relinquishes and abandons its Cannabis Business Permit (if otherwise
valid), and, separately, upon the City’s independent confirmation that
Developer has ceased all Cannabis Business operations at the Site; or
v. mutual written consent of the Parties.
b. This Agreement may be terminable by the City, acting in its reasonable
discretion, upon the occurrence of any of the following events:
i. abandonment of the Developer’s Conditional Use Permit pursuant
to LEMC, Section 17.415.070(D);
ii. upon revocation of Developer’s Conditional Use Permit pursuant to
LEMC, Section 17.415.070(G);
iii. following the Term Commencement Date, the failure to have a valid
Cannabis Business Permit for the Project;
iv. following the Term Commencement Date, the failure to have a valid
Developer’s State Cannabis License for the Project; or
v. unauthorized assignment of interest of the Developer in the Project
or in the Site pursuant to Section 9.1 of this Agreement.
The rights and obligations of the Parties set forth in Sections 4.2, 4.3, 4.4, 5.4, 9.2, 9.3, and
9.4 of this Agreement and any right or obligation of the Parties in this Agreement, which by its
express terms or nature and context is intended to survive termination of this Agreement, will
survive any such termination. Notwithstanding the foregoing, in the event this Agreement is
terminated pursuant to this Section 1.8, Section 4.2 shall survive only to the extent any obligation
to pay the Community Benefits Fee accrues prior to the termination (i.e., Developer shall be
responsible only for the portion of the Community Benefits Fee accruing prior to the termination).
Notwithstanding anything to the contrary set forth herein, in no event shall this Agreement
terminate unless Developer has received written notice of any event occurring that may result in
termination pursuant to this Section 1.8(b) and Developer fails to cure such event within sixty (60)
days after receipt of such notice.
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1.9. Operating Memoranda; Amendment of Agreement.
a. Operating Memoranda. The provisions of this Agreement require a close
degree of cooperation between the City and the Developer. The Development of the Site may
demonstrate that clarifications to this Agreement and the Existing Land Use Regulations are
appropriate with respect to the details of performance of the City and the Developer. To the extent
allowable by law, the Developer shall retain a certain degree of flexibility as provided herein with
respect to all matters, items and provisions covered in general under this Agreement, except for
those which relate to the (i) term; (ii) permitted uses; or (iii) density or intensity of use. When and
if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications to
matters, items or provisions not enumerated in (i) through (iii) above, the Parties shall effectuate
such changes, adjustments or clarifications through operating memoranda (the “Operating
Memoranda”) approved by the Parties in writing which reference this Section 1.9(a). Operating
Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial
clarifications; therefore public notices and hearings shall not be required. The City Manager shall
be authorized, upon consultation with, and approval of, the Developer, to determine whether a
requested clarification may be effectuated pursuant to this Section or whether the requested
clarification is of such character to constitute an amendment to this Agreement which requires
compliance with the provisions of Section 1.9(b) below.
b. Amendment. Subject to the notice and hearing requirements of the
Government Code, this Agreement may be modified or amended from time to time only with the
written consent of the Developer and the City or their successors and assigns in accordance with
the provisions of the Development Agreement Ordinance and the Development Agreement
Statute.
1.10. Fees. Developer agrees to pay all Regulatory Fees, Community Benefit s Fee, and
any other applicable fees to the City related to Developer’s development and operation of the
Project on the Site.
ARTICLE 2.
DEVELOPMENT OF THE PROPERTY
2.1. Intent. Developer has expended and will continue to expend substantial amounts
of time and money planning and preparing for development of the Project. Developer represents
and City acknowledges that Developer would not make these expenditures without this
Agreement, and that Developer is and will be making these expenditures in reasonable reliance
upon its vested rights to develop the Project as set forth in this Agreement.
2.2. Vested Right to Develop. During the Term, Developer shall have the vested right
to develop the Project on the Site, in accordance with this Agreement, the Conditional Use Permit,
Additional City Approvals if any, the Cannabis Business Permit, the City’s Development
Regulations, and the Development Agreement Statute.
2.3. Permitted Uses and Operational Requirements. Developer shall be permitted to
develop, construct, and use the Site to carry out the Project, consistent with California Cannabis
Laws, this Agreement, the Conditional Use Permit, Additional City Approvals, the Cannabis
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Business Permit, the LEMC (as may be amended except for the Development Regulations), and
the State Cannabis License.
2.4. Additional Entitlements, Approvals, and Permits. Successful implementation of
the Project may require the Developer to obtain additional approvals and permits from City and
other local and state agencies. In connection with the consideration and issuance of any such
Additional City Approval which is not ministerial in nature, the City reserves its discretion under
the police power to approve, conditionally approve, or deny the issuance of each City Additional
Approval.
2.5. Conditional Use Permit. Pursuant to LEMC, Chapter 19.12, Developer shall not
engage in the permitted uses set forth above pertaining to the Project on the Site without first
obtaining the Conditional Use Permit allowing for the operating of a “cannabis business” (as
defined in Section 17.156.030 of the LEMC).
2.6. Cannabis Business Permit. Pursuant to LEMC, Section 17.156.040, no person
may engage in a “cannabis business” in the City without obtaining a Cannabis Business Permit.
2.7. State Cannabis License. Pursuant to California Cannabis Laws, Developer shall
not engage in the permitted uses set forth above pertaining to the Project on the Site without first
obtaining a State Cannabis License necessary to conduct the type of Cannabis Business on the Site
as authorized by the Cannabis Business Permit.
ARTICLE 3.
APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
3.1. Rules on Permitted Uses. Unless otherwise provided in this Agreement, the City’s
ordinances, resolutions, rules, regulations, and official policies governing the permitted uses of the
Site and the maximum height, bulk, and size of proposed buildings related to the Project on the
Site shall be those in force and effect at the time the Developer’s Conditional Use Permit
application to the City was deemed complete.
3.2. Rules on Design and Construction. Unless otherwise provided in this Agreement,
the ordinances, resolutions, rules, regulations, and official policies governing the design,
improvement, and construction standards and specifications applicable to the Project shall be those
in force and effect at the time of the Developer’s Conditional Use Permit application to the City
was deemed complete.
3.3. Uniform Codes Applicable. Unless otherwise provided in this Agreement, the
Project shall be improved and constructed in accordance with the provisions of the California
Building Standards Codes in effect at the time as of the time of the City’s consideration of approval
of the relevant permit sought by Developer for the Project.
3.4. Changes Mandated by Federal or State Law. The Site and Project shall be
subject to subsequently enacted state or federal laws or regulations that may preempt the LEMC,
or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement
or local rules or guidelines associated with City’s Cannabis Uses (LEMC, Ch. 17.156) or Cannabis
Business Permit. As provided in section 65869.5 of the Development Agreement Statute, in the
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event state or federal laws or regulations enacted after the Effective Date prevent or preclude
compliance with one or more provisions of this Agreement, such provisions shall be modified or
suspended as may be necessary to comply with such state or federal laws or regulations. Upon
discovery of a subsequently enacted federal or state law meeting the requirements of this Section,
City or Developer shall provide the other Party with written notice of the state or federal law or
regulation, and a written statement of the conflicts thereby raised with the provisions of the LEMC
or this Agreement. Promptly thereafter, City and Developer shall meet and confer in good faith in
a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state
law or regulation provided City shall not be obligated to agree to any modification materially
increasing its obligations or materially adversely affecting its rights and benefits hereunder. In
such discussions, City and Developer will attempt to preserve the terms of this Agreement and the
rights of Developer derived from this Agreement to the maximum feasible extent while resolving
the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address
such conflict, City shall have the right and responsibility to do so, and shall not have any liability
to Developer for doing so or be considered in breach or default of this Agreement. City also agrees
to process, in accordance with the provisions of this Agreement, Developer’s proposed changes to
the Project that are necessary to comply with such federal or state law and that such proposed
changes shall be conclusively deemed to be consistent with this Agreement without further need
for any amendment to this Agreement.
3.5. Health and Safety Emergencies. In the event that any future public health and
safety emergencies arise with respect to the development contemplated by this Agreement, City
agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to
address such em ergency in a wa y that does not have a material adverse impact on the Project.
3.6. Reservation of Authority. Any other provision of this Agreement to the contrary
notwithstanding, the development of the Project shall be subject to new or modified ordinances,
resolutions, rules, regulations, and official policies related to the following:
a. Regulatory Fees imposed on the Developer by the City, which are charged
by the City to cover its actual and reasonable expenses incurred in processing permits, licenses,
and other entitlements related to the Project, administering its cannabis -related ordinance with
regard to the Project, and monitoring legal compliance of the Project on the Site, including, but
not limited to building and safety-related inspections by the City;
b. Development impact fees or charges imposed by the City on and in
connection with a development or other similar fees or charges imposed by other governmental
entities regardless of whether the City is required to collect or assess such fees pursuant to
applicable laws (e.g., school district impact fees pursuant to Government Code Section 65995), or
general or special taxes and assessments.
c. Procedural regulations related to hearing bodies, petitions, applications,
notices, findings, records, hearings, reports, recommendations, appeals, and other similar
procedural matters; and
d. Regulations, including, but not limited to, the California Building Standards
Codes, necessary to protect the public health and safety so long as such regulations are generally
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applicable and do not impose a severe and significant financial burden on the Developer or
materially delay the development or carrying out of the Project as contemplated in this Agreement.
ARTICLE 4.
COMMUNITY BENEFITS FEE
4.1. Intent. The Parties acknowledge and agree that this Agreement confers substantial
private benefits on the Developer that will place significant burdens, including both known costs
and potential but currently unknown costs, on City infrastructure, services, and neighborhoods and
that the private benefits provided to the Developer should be balanced with commensurate public
benefits for the community (“Community Benefits”). Accordingly, City and Developer recognize
and agree that but for Developer’s payments as provided herein, City would not and could not
approve use of the Site for the Project as provided by this Agreement. City’s approval of this
Agreement is in reliance upon and in consideration of Developer’s agreement to make the
payments required hereunder.
4.2. Community Benefits Fee. In addition to Developer’s obligation to pay the City
through its Regulatory Fees, Developer shall be obligated to provide Community Benefits as
follows, which shall be referred to as the “Community Benefits Fee”:
a. Community Benefits Fee. Concurrent with the Term Commencement
Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to the
following fee schedule:
All Cannabis Business
activities
$19.47 per square foot of Floor Area
annually
Notwithstanding the foregoing, Developer may elect, on a one-time basis, to make payment of the
Community Benefit Fee due on the Term Commencement Date in two equal installments, the first
one-half installment to be made on the Term Commencement Date and the second one-half
installment to be due and payable on a date six (6) months from the Term Commencement Date.
b. Annual Increase. In order to account for the increasing cost of providing
City services, the Community Benefits Fee set forth in Section 4.2(a) shall be increased annually
commencing on each anniversary of the Term Commencement Date (each of which day shall be
referred to as an “Adjustment Date”). Each Adjustment Date shall be numbered in sequence (e.g.,
First Adjustment Date, Second Adjustment Date, Third Adjustment Date, etc.). Each such annual
increase in the Community Benefits Fee shall be determined as follows:
Four percent (4%) of the amount of the Community Benefits Fee payable
immediately preceding such adjustment (For example and for illustration
purposes only, if Developer’s Community Benefits Fee was $191,039.64
[$19.47 x 9,812 square feet of Floor Area] upon the initial issuance of a
Cannabis Business Permit on June 15, 2021, the Community Benefits Fee
due on the First Adjustment Date, that is, June 15, 2022, is the product of
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$191,039.64 times 1.04, in which case the Community Benefits Fee payable
on the First Adjustment Date would be $198,681.23).
4.3. Penalty. If Developer fails to make a payment of the Community Benefits Fee, as
required by this Agreement, the City may impose a “Non-Payment Penalty.” A Non- Payment
Penalty of five percent (5%) shall be applied to all past due Community Benefits Fees. The City
shall deliver to Developer a “Notice of Non-Payment Penalty.” Payment of the Non- Payment
Penalty and past due Community Benefits Fees shall be in a single installment due on or before a
date fifteen (15) days following delivery of the Non-Payment Penalty.
4.4. Interest on Unpaid Non-Performance Penalty; Past Due Community Benefits
Fees. If Developer fails to pay the Non-Performance Penalty and all past due Community Benefits
Fees after City has delivered the Notice of Non-Performance Penalty, then, in addition to the
principal amount of the Non-performance Penalty and past due Community Benefit Fees,
Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on
the principal amount of the Non-Performance Penalty and past due Community Benefit Fees, from
a date fifteen (15) days following delivery of the Notice of Non-performance Penalty.
Notwithstanding the foregoing provisions of this Section 4.4, in no event shall the rate of interest
payable by Developer exceed the maximum rate of interest permitted to be charged under
applicable law.
ARTICLE 5.
INSURANCE AND INDEMNIFICATION
5.1. General Liability Insurance. Developer shall maintain comprehensive general
liability insurance issued by a California admitted insurance courier whose Best Insurance Guide,
current edition insurance rating is not less than “B+(vii)” with a per-occurrence combined single
limit of not less than Two Million Dollars ($2,000,000) with a claim deduction not more than One
Hundred Thousand Dollars ($100,000) per claim. Such insurance policy shall name the City and
City’s elected and appointed councils, boards, commissions, legislative bodies, officials,
employees, and representatives as “Additional Insureds” by endorsement with respect to the
performance of this Agreement and shall include either a severability of interest clause or cross-
liability endorsement and other customary and reasonable endorsements and provisions approved
by the City’s risk manager.
5.2. Workers’ Compensation Insurance. Developer shall maintain workers’
compensation insurance for all its employees employed at or on the Project. Developer shall require
each contractor and subcontractor working at or on the Project to provide workers’ compensation
insurance for its respective employees. Developer indemnification of City set forth in Section 5.4
of this Agreement shall apply to Developer’s failure to maintain any such insurance.
5.3. Evidence of Insurance. Evidence of the insurance in favor of the City required
under Section 5.1 shall be provided to the City as of the Effective Date. Thereafter no Cannabis
Business Permit for the Project shall be valid unless and until Developer furnishes satisfactory
evidence of the other insurance required in Article 5 of this Agreement. In each case, the evidence
of insurance provided to the City shall include satisfactory evidence that the insurance carrier shall
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give the City at least fifteen (15) days’ prior notice of the cancellation or reduction in coverage of
each policy of insurance required in Article 5 of this Agreement.
5.4. Indemnification. The Developer agrees to indemnify, defend with counsel
reasonably acceptable to City, and hold harmless the City and City’s elected and appointed councils,
boards, commissions, legislative bodies, officials, employees, and representatives from any and all
claims, costs (including legal fees and costs), or liabilities of any kind arising out of or connected
to any act or omission of Developer or Developer’s contractor, subcontractor, agent, or
representative related to its establishment or operation of the Project or arising out of or related to
the approval or issuance of any permit, license, or approval by the City for the Project, except to
the extent such claims, costs, and liabilities are caused by the sole negligence or willful misconduct
of the City. The Developer agrees that it shall be responsible for all costs incurred by the City in the
event of a third-party challenge related to such claims, costs, or liabilities.
5.5. Failure to Indemnify. The Developer’s failure to indemnify the City, when
required by this Agreement, shall constitute a material breach of this Agreement and of any
applicable Conditional Use Permit, Cannabis Business Permit, and Additional City Approvals,
which shall entitle the City to all remedies available under law, including, but not limited to, specific
performance and damages. Failure to indemnify shall constitute grounds upon which the City may
rescind its approval of any entitlement, permit, or license related to the Project, or any portion
thereof, and a waiver of Developer’s right to file a claim, action, or proceeding against the City and
City’s elected and appointed councils, boards, commissions, legislative bodies, officials,
employees, and representatives based upon the City’s rescission or revocation of any applicable
Conditional Use Permit, Cannabis Business Permit, and Additional City Approvals, or City’s failure
to defend any claim, action, or proceeding based upon Developer’s failure to indemnify the City.
5.6. Waiver of Damages; Referendum. Notwithstanding anything in this Agreement to
the contrary, the Parties acknowledge that City would not have entered into this Agreement had it
been exposed to liability for damages from the Developer and, therefore, the Developer hereby
waives all claims for damages against City for breach of this Agreement. The approvals (including
development agreements) must be approved by the City Council and that, under law, the City
Council's discretion to vote in any particular way may not be constrained by contract. The
Developer therefore waives all claims for damages against City in the event that this Agreement or
any Project approval is: (1) not approved by the City Council or (2) is approved by the City Council,
but with new changes, amendments, conditions, or deletions to which Developer is opposed.
Developer further acknowledges that, as an instrument which must be approved by ordinance, a
development agreement is subject to referendum; and that, under law, the City Council's discretion
to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained
by contract, and Developer waives all claims for damages against City in this regard.
5.7. Bankruptcy. The obligations of this Agreement shall not be dischargeable in
bankruptcy.
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ARTICLE 6.
MORTGAGEE PROTECTION
This Agreement, once executed and recorded, shall be superior and senior to any lien
placed upon the Site or any portion thereof following recording of this Agreement, including the
lien of any deed of trust or mortgage (“Mortgage”). Notwithstanding the foregoing, no breach
hereof shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith
and for value. This Agreement shall immediately be deemed in default and immediately terminate
upon the foreclosure or transfer of any interest in the Site or Project, whether by operation o f law
or any other method of interest change or transfer, unless the City Manager has authorized such
change or transfer in advance, in writing.
ARTICLE 7.
PERIODIC REVIEW
City shall review this Agreement (“Periodic Review”) in accordance with the Development
Agreement Ordinance, including LEMC, Section 19.12.140 and the procedures set forth in LEMC,
Section 19.12.150. Notwithstanding the foregoing, the City’s failure to review the Developer’s
compliance with this Agreement, at least annually, will not constitute or be asserted by either Party
as a breach by the other Party.
ARTICLE 8.
DEFAULT
8.1. General Provisions. The failure of either Party to perform any obligation or duty
under this Agreement within the time required by this Agreement shall be a default and after the
giving of notice and the passage of the applicable amount of time, such a default shall constitute
an event of default.
8.2. Notice. The “Complaining Party” may not assert that an event of default has
occurred against the “Defaulting Party” unless the Complaining Party has first given written
notice to the Defaulting Party, specifying the nature of the default and the manner in which the
default may be cured, if known to the Complaining Party. Any failure or delay by the Complaining
Party in giving such notice shall not waive such default or waive any of the Complaining Party’s
remedies.
8.3. Cure. The Defaulting Party shall have thirty (30) days from the receipt of notice
to cure the default except as provided in the next sentence. In the case of a monetary default (e.g.
failure to make the payments of fees required under this Agreement), any such default must be
cured by the payment of the amoun t demanded within such thirty (30) day period. In the case of
non-monetary defaults, if the default cannot be reasonably cured within such time, the default
shall be deemed cured if:
a. The cure is commenced at the earliest practicable date following receipt of notice;
b. The cure is diligently prosecuted to completion;
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c. At the earliest practicable date (but in no event later than thirty (30) days after receiving
the notice of default), the Defaulting Party provides written notice to the Complaining
Party that the cure cannot be reasonably completed within a thirty (30) day period ; and
d. The default is cured at the earliest practical date, provided that the time reasonably
necessary to cure exceeds sixty (60) days after receipt of the first notice of default, the
Defaulting Party shall provide the Complaining Party with a cure remediation status
reports at least every thirty (30) days.
8.4. Remedies. If the Defaulting Party fails to cure a default in accordance with the
foregoing, an event of default shall be deemed to have occurred and the Complaining Party shall
have the right to seek all appropriate remedies, at law or in equity, including specific penalty or
termination of this Agreement without further or separate notice to the Defaulting Party.
8.5. Estoppel Certificates.
a. City shall, upon not less than thirty (30) days prior written notice, execute,
acknowledge, and deliver to Developer, Developer's lender, potential investors, or assignees an
estoppel certificate in writing which certifies that this Agreement is in full force and effect, that
there are no breaches or defaults under the Agreement except as described in such estoppel
certificate, and that the Agreement has not been modified or terminated and is enforceable in
accordance with its terms and conditions.
b. The City may recover its actual and reasonable costs and attorneys’ fees in
connection with the timely dealing of any such estoppel certificate, in an amount not to exceed
$2,500 per estoppel certificate.
ARTICLE 9.
OTHER GENERAL PROVISIONS
9.1. Assignment. The rights and obligations of Developer hereunder shall not be
assigned or transferred, except that on thirty (30) days written notice to City, Developer may assign
all or a portion of Developer’s rights and obligations there under to any person or perso ns,
partnership or corporation who purchases all or a portion of Developer’s right, title and interest in
the Site, or Project, provided such assignee or grantee assumes in writing each and every obligation
of Developer hereunder yet to be performed, and further provided that Developer obtains the
written consent of City to the assignment, which consent shall not be unreasonably withheld.
Notwithstanding the foregoing provision concerning the written consent of City, and provided that
the assignment is to an affiliate of Developer (an entity which is controlled by, controls, or is under
common control with, Developer), the City shall in such cases provide its written consent provided
that all other requirements of this Section 9.1 are satisfied. The notice to City shall include the
identity of any such assignee and a copy of the written assumption of the assignor’s obligations
hereunder pertaining to the portion assigned or transferred. After such notice and the receipt of
such consent, the assignor shall have no further obligations or liabilities hereunder. The City
Manager may act on behalf of City regarding any actions concerning the assignment of this
Agreement.
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9.2. Notices. Any notice shall be in writing and given by delivering the same in person
or by sending the same by registered, or certified mail, return receipt requested, with postage
prepaid, or by overnight delivery, to the respective mailing addresses, as follows:
If to City: City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
Attn: City Manager
If to Developer: LECANNA, LLC
20622 Shadow Rock Lane
Trabuco Canyon, CA 92679
Attn: Paul Cadaret, Chief Executive Member
With courtesy email copies to:
mgr@lecanna.cc
paul@backofen-ip.com
dmtrader93@yahoo.com
accadaret@yahoo.com
Either City or Developer may change its mailing address at any time by giving written
notice of such change to the other in the manner provided herein at least ten (10) days prior to the
date such change is effected. All notices under this Agreement shall be deemed given, received,
made or communicated on the earlier of the date personal delivery is effected or on the delivery
date or attempted delivery date shown on the return receipt, or air bill.
9.3. Governing Law and Venue. This Agreement shall be interpreted and governed
according to the laws of the State of California. In the event of litigation between the Parties,
venue, without exception, shall be in the Riverside County Superior Court of the State of
California. If, and only if, applicable law requires that all or part of any such litigation be tried
exclusively in federal court, venue, without exception, shall be in the Central District of California
located in the City of Riverside, California.
9.4. Severability. If this Agreement in its entirety is determined by a court to be invalid
or unenforceable, this Agreement shall automatically terminate as of the date of final entry of
judgment. If any term or provision of this Agreement shall be determined by a court to be invalid
and unenforceable, or if any term or provision of this Agreement is rendered invalid or
unenforceable according to the terms of any federal or state statute, any provisions that are not
invalid or unenforceable shall continue in full force and effect and shall be construed to give effect
to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited
from failing to perform any and all obligations under this Agreement on the basis that this
Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party
disclaims any right to tender an affirmative defense in any arbitration or court of competent
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jurisdiction, that performance under this Agreement is not required because the Agreement is
invalid, unenforceable, or illegal.
9.5. Constructive Notice and Acceptance. Every person who after the Effective Date
and recording of this Agreement owns or acquires any right, title, or interest to any portion of the
Site is and shall be conclusively deemed to have consented and agreed to every provision contained
herein, whether or not any reference to this Agreement is contained in the instrument by which
such person acquired an interest in the Site, and all rights and interests of such person in the Site
shall be subject to the terms, requirements, and provisions of this Agreement.
9.6. Reserved.
9.7. Waiver. A waiver by any Party of any breach of any term, covenant, or condition
herein contained or a waiver of any right or remedy of such Party available hereunder, at law or in
equity, shall not be deemed to be a waiver of any subsequent breach of the same or any other term,
covenant, or condition herein contained or of any continued or subsequent right to the same right
or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and
signed by the Party so waiving.
9.8. Integration. This Agreement, together with its specific references, attachments,
and Exhibits, constitutes all of the agreements, understandings, representations, conditions,
warranties, and covenants made by and between the Parties hereto. Unless set forth herein, no
Party to this Agreement shall be liable for any representations made, express or implied.
9.9. Captions. The captions of this Agreement are for convenience and reference only
and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the
interpretation, construction, or meaning of the provisions of this Agreement.
9.10. Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory.
“May” or “can” are permissive.
9.11. Counterparts. This Agreement may be executed simultaneously and in several
counterparts, each of which shall be deemed an original, but which together shall con stitute one
and the same instrument.
9.12. Other Documents. The Parties agree that they shall cooperate in good faith to
accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such
other instruments or documents as may be necessary and convenient to fulfill the purposes and
intentions of this Agreement.
9.13. Authority. All Parties to this Agreement warrant and represent that they have the
power and authority to enter into this Agreement.
9.14. Advice of Legal Counsel. Each Party acknowledges that it has reviewed this
Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered
into this Agreement.
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9.15. Attorneys’ Fees and Costs. Unless otherwise provided in this Agreement, if any
action at law or in equity, including action for declaratory relief, is brought to enforce or interpret
provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees
and costs, which may be set by the court in the same action or in a separate action brought for that
purpose, in addition to any other relief to which such Party may be entitled.
9.16. Calculation of Time Period. All time referenced in this Agreement shall be
calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the
last day shall be the next business day.
9.17. Recordation of Development Agreement. The City Clerk shall cause a copy of
this Agreement to be recorded against title of the Site within ten (10) business days of the Effective
Date.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set
forth below.
“CITY”
CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:
Mayor
ATTEST:
By:
City Clerk
“DEVELOPER”
LECANNA, LLC,
a California limited liability company
By:
Paul S. Cadaret, Chief Executive Member
STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary
(Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary
(Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary
(Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
Exhibit A
EXHIBIT A
LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore,
State of California, and is described as follows:
LOT 15 OF PARCEL MAP 22914, AS PER PLAT RECORDED IN BOOK 150 OF PARCEL
MAPS, PAGES 91 AND 92 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
More commonly known as 540 3rd Street, Lake Elsinore, CA 92530.
[APN 377-430-050]
Exhibit B
EXHIBIT B
SITE PLAN AND FLOOR PLAN
The Site Plan and Floor Plan is on file as a public record and available for review at the City of
Lake Elsinore’s City Clerk’s Office located 130 South Main Street Lake Elsinore, CA 92530.
Exhibit C
EXHIBIT C
PROPERTY OWNER CONSENT
Cadaret Management, LLC, a California limited liability company, being the owner of the real
property described in Exhibit A to this Development Agreement by and between the City of
Lake Elsinore and LECANNA, LLC, dated for identification as of May 1, 2021 (the
“Agreement”), does hereby consent to the recordation of said Agreement in the Official Records
of the County of Riverside.
CADARET MANAGEMENT, LLC, a California
limited liability company,
Date:
Paul S. Cadaret, Manager
[notary required]
STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary
(Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
Applicant’s Initials: _____ Page 1 of 12
CONDITIONS OF APPROVAL
PROJECT: PA 2018-46 (DA 2018-13/CUP 2018-17)
PROJECT NAME: LECANNA
PROJECT LOCATION: 540 3rd Street (APN: 377-430-050)
APPROVAL DATE:
EFFECTIVE DATE:
EXPIRATION DATE:
GENERAL CONDITIONS
1. Planning Application No. 2018-46 (Development Agreement No. 2018-13 and Conditional
Use Permit No. 2018-17) proposes to establish a 11,600 SF cannabis facility that includes:
retail dispensary space (<2,300 SF); distribution/delivery space (<25% of the project SF);
cultivation, manufacturing, and/or Type-S licensee support space (>=50% of the project SF);
and ancillary functions (<25% of the project SF). All cannabis use spaces shall be located
within an existing building or enclosed/secured spaces that lie within the walled/gated rear
yard area (Project). The Project is generally located at the northeast corner of Pasadena
and 3rd Street and more specifically referred to as 540 3rd Street, Lake Elsinore, CA 92530
(APN: 377-430-050).
2. Conditional Use Permit No. 2018-17 shall be limited to the floor plan prepared by the
applicant and included in the staff report. In the event the applicant proposes to modify the
floor plan, the modification shall be subject to review by the Community Development
Director. The Community Development Director may approve the modification or refer the
matter to the Planning Commission if judged to be substantial.
3. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold
harmless the City, its Officials, Officers, Employees, Agents, and its Consultants
(Indemnitees) from any claim, action, or proceeding against the Indemnitees to attack, set
aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or
legislative body concerning approval, implementation and construction of CUP 2018-17
which action is bought within the time period provided for in California Government Code
Sections 65009 and/or 66499.37, and Public Resources Code Section 21167, including the
approval, extension or modification of CUP 2018-17 or any of the proceedings, acts or
determinations taken, done, or made prior to the decision, or to determine the
reasonableness, legality or validity of any condition attached thereto. The Applicant's
indemnification is intended to include, but not be limited to, damages, fees and/or costs
awarded against or incurred by Indemnitees and costs of suit, claim or litigation, including
without limitation attorneys' fees, penalties and other costs, liabilities and expenses incurred
by Indemnitees in connection with such proceeding. The City will promptly notify the
applicant of any such claim, action, or proceeding against the City. If the project is
challenged in court, the City and the applicant shall enter into formal defense and indemnity
agreement, consistent with this condition.
4. Within 30 days of Project approval and prior to issuance of any building permits, the
applicant shall sign and complete an “Acknowledgement of Conditions,” and shall return the
executed original to the Community Development Department for inclusion in the case
records.
5. Conditional Use Permit No. 2018-17 shall lapse and become void two years following the
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 2 of 12
date on which the conditional use permit became effective, unless one of the following: (1)
prior to the expiration of two years, a building permit related to the conditional use permit is
issued and construction commenced and diligently pursued toward completion; or (2) prior
to the expiration of two years, the applicant has applied for and has been granted an
extension of the conditional use permit approval pursuant to subsections (a), (b), and (c) of
Lake Elsinore Municipal Code (LEMC) Section 17.415.070.D.2. Subject to the provisions of
LEMC Section 17.415.070.I, a conditional use permit granted pursuant to the provisions of
this section shall run with the land and shall continue to be valid upon a change of ownership
of the site or structure, which was the subject of the Conditional Use Permit application.
6. The Conditional Use Permit granted herein shall run with the land and shall continue to be
valid upon a change of ownership of the site or structure which was the subject of this
approval. An application for modification, expansion or other change in a Conditional Use
Permit shall be reviewed according to the provisions of the LEMC, Title 17 in a similar
manner as a new application.
7. Suspension of a license issued by the State of California, or by any of its departments or
divisions, shall immediately suspend the ability of a cannabis facility to operate within the
City, until the State of California, or its respective department or division, reinstates or
reissues the State license. Should the State of California, or any of its departments or
divisions, revoke or terminate the license of a cannabis facility, such revocation or
termination shall also revoke or terminate the ability of a cannabis facility to operate within
the City. This CUP will expire and be of no further force and effect if any state issued license
remains suspended for a period of 6 months. Documentation of three violations during
routine inspections or investigations of complaints shall result in the scheduling of a hearing
before the Planning Commission to consider revocation of the Conditional Use Permit.
8. This business operator shall pay all sales, use, business and other applicable taxes, and all
license, registration, and other fees and permits required under federal, state and local law.
This business operator shall pay all sales, use, business and other applicable taxes, and all
license, registration, and other fees and permits required under federal, state and local law.
This business operator shall cooperate with the City with respect to any reasonable request
to audit the business' books and records for the purpose of verifying compliance with State
and Local regulations and this CUP, including but not limited to a verification of the amount
of taxes required to be paid during any period and the limitation on gross sales receipts.
Operational Standards
9. The uses authorized by this Conditional Use Permit must be conducted in accordance with
all applicable state and local laws, including, but not limited to compliance with the most
current versions of the provisions of the California Code of Regulations that regulate the
uses permitted hereby. Any violation thereof shall be a violation of the conditions of this
permit and may be cause for revocation of this permit.
10. In accordance with Section 17.156.050 (Cannabis dispensaries) of the LEMC, Cannabis
dispensaries shall be permitted as an accessory use to either a cannabis cultivation facility
or cannabis manufacturing facility. In no case shall either the gross floor area of the
dispensary exceed 25 percent of the total area of the business.
11. The applicant shall at all times comply with Chapter 17.176 (Noise Ordinance) of the LEMC.
Prior to the issuance of a building permit, documentation demonstrating compliance shall
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 3 of 12
be provided.
12. The applicant shall at all times comply with Chapter 14.08 (Stormwater/Urban Runoff
Management and Discharge Control of the LEMC. Prior to the issuance of a building permit,
documentation demonstrating compliance shall be provided.
13. Odor control devices and techniques shall be incorporated to ensure that odors from
marijuana are not are not detected outside the property, anywhere on adjacent property or
public right-of-way, or within any other units located within the same building as the cannabis
facility. Building and mechanical permits must be obtained from the Building Division prior
to work commencing on any part of the odor control system.
14. Air quality control devices and techniques shall be incorporated to ensure that the ambient
external air quality is not impacted by the cannabis facility. Building and mechanical permits
must be obtained from the Building Division prior to work commencing on any part of the air
quality control system. Prior to the Building Division issuing a building permit contact the
South Coast Air Quality Management District (AQMD) located at: 21865 Copley Dr.
Diamond Bar, CA 91765-4178, Tel: 909- 396-2000. A building permit shall not issued until
an Identification Number is provided by AQMD and any applicable permits have been
issued.
15. Applicant shall contact the Elsinore Valley Municipal Water District (the local water and
sewer purveyor) and submit an application and plans for project review. Applicant must
obtain approval of all plans prior to the issuance of a building permit and a letter of project
completion by the District prior to the issuance of a Certificate of Occupancy. Any Cannabis
facility shall meet the minimum requirements of the district and not discharge any material
into a sewer system without first obtaining approval.
16. No outdoor storage, cultivation, manufacturing or any other form of use of cannabis or
cannabis products, byproducts or waste are permitted at any time.
17. The sale, dispensing, or consumption of alcoholic beverages on or about the premises is
prohibited.
18. The consumption of any cannabis or cannabis product in any form is prohibited from
occurring onsite.
19. The owner/operator shall prohibit loitering by persons outside the facility both on the
premises and within fifty feet (50') of the premises.
20. Persons under the age of twenty-one (21) years shall not be allowed on the premises of this
business. It shall be unlawful and a violation of this CUP for the owner/operator to employ
any person who is not at least twenty-one (21) years of age.
21. There shall be no loitering in or around the business.
22. The operator shall maintain free of litter all areas of the premises under which applicant has
control.
23. No cannabis or cannabis products, or graphics depicting cannabis or cannabis products,
shall be visible from the exterior of this property, or on any of the vehicles owned or used as
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 4 of 12
part of the cannabis business.
24. Cannabis liquid or solid waste must be made unusable and unrecognizable before leaving
a secured storage area and shall be disposed of at facility approved to receive such waste.
25. Extraction and post-processing winterization operations shall be conducted according to the
approved Registered Design Professional's technical report; approved Fire Protection Plan;
and the approved building construction plans. Any change in equipment, operation, or
hazard shall be submitted to the City for review and approval before the change taking place.
26. The storage, use, and disposal of volatiles, solvents, or hazardous materials at this facility
shall be conducted according to the 2019 California Fire Code and the Riverside County
Environmental Health Department regulations.
27. All cannabis and cannabis products sold, distributed or manufactured shall be cultivated,
manufactured, and transported by licensed facilities that maintain operations in full
conformance with State and local regulations.
28. Cannabis Facility Site Restricted.
No cannabis permittee shall open their cultivation site to the public.
No cannabis permittee shall allow anyone on the cultivation site, except for managers,
staff, and other persons with a bona fide business or regulatory purpose for being
there, such as contractors, inspectors, and cannabis transporters.
A manager must be onsite at all times that, any other person, except for security
guards, is on the site.
While onsite, managers and staff of the cannabis cultivation permittee must wear their
identification badge at all times.
Any person other than managers or staff who are on the cultivation site must sign in,
wear a visitor badge, and be escorted on the site by a manager at all times.
29. The use shall be conducted, at all times, in a manner that will allow the quiet enjoyment of
the surrounding neighborhood. The operator shall institute whatever security and
operational measures are necessary to comply with this requirement.
30. If operation of this use triggers concerns related to parking, noise, traffic, or other impacts,
at the discretion of the Community Development Director, this Conditional Use Permit may
be referred back to the Planning Commission for subsequent review at a Pu blic Hearing. If
necessary, the Commission may modify or add conditions of approval to mitigate such
impacts, or may revoke said Conditional Use Permit.
Site Security Plans
31. Each cannabis facility shall have a security plan approved by the City prior to the issuance
of a Cannabis Business Permit. The security plan shall be a narrative and also an include a
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 5 of 12
detailed security plan delineating the physical location of the specific equipment. The
proposed security plan must include the following at a minimum:
Summary of the security plan, this shall be included in the project description, all other
elements shall be incorporated as a separate attachment, entitled security plan, to the
project description.
Security surveillance cameras. Security surveillance cameras and a video recording
system must be installed to monitor all doors into the buildings on the site, the parking
lot, loading areas, and all exterior sides of the property adjacent to the public rights of
way. The cameras and recording system must be of adequate quality, color rendition,
and resolution to allow the identification of any individual present on the site. The
recording system must be capable of exporting the recorded video in standard MPEG
formats to another common medium, such as a DVD or USB drive.
Security video recording and retention. Video from the security surveillance cameras
must be recording at all times (24 hours a day, seven days a week) and the recording
shall be maintained for at least 30 days. The video recordings shall be made available
to the City upon request.
Location of security cameras and the areas to be covered by the security cameras.
Location of audible interior and exterior alarms.
Location of exterior lighting.
Name and contact information of Security Company.
Entrances to all dispensing and cultivation areas will be locked and under control of
staff at all times.
Name of security guard and proof that security guard is licensed by the California
Department of Consumer Affairs and whether security guard will be present at the
cannabis facility during all hours of operation.
If the security guard is to be armed, proof that security guard possesses a valid
Security Guard Card and Firearms Permit issued by the California Department of
Consumer Affairs.
Alarm system. Professionally and centrally-monitored fire, robbery, and burglar alarm
systems must be installed and maintained in good working condition. The alarm
system must include a private security company that is required to respond to every
alarm.
32. Any modifications to the approved security plan shall be reviewed and approved prior to the
modifications being implemented.
33. Site security plans requirements may change at the sole discretion of the City. Any changes
of requirements imposed by the City shall be complied at minimum during the annual
inspection process or sooner as required by the City.
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 6 of 12
34. In the event any discrepancies between local and state regulations exist, the more restrictive
requirements shall prevail.
Fire Protection Plan
35. Each cannabis facility shall have fire protection plan approved by the Fire Marshal prior to
the issuance of a Cannabis Business Permit. The fire protection plan shall be a narrative
and also include a detailed fire protection plan delineating the physical location of the
specific equipment. The proposed fire protection plan must include the following at a
minimum:
Summary of the fire protection plan, this shall be included in the project description, all
other elements shall be incorporated as a separate attachment, entitled security plan,
to the project description.
Occupancy Classification. The Use and Occupancy Classification of Marijuana
Business. Please identify the proposed use and occupancy classification of the
proposed use. Use and occupancy classifications may be found in Chapter 3 of the
California Building Code (CBC), and California Fire Code (CFC).
Hazard Communication. When storing or using any type of hazardous materials, CFC
Section 407 should be followed and the appropriate paperwork made accessible to
the fire code official. Additionally the CFC should be consulted. The CFC gives
responders the information of the hazardous chemicals that is on the property.
o Material Safety Data Sheets (MSDS) shall be on property and made easily
accessible.
o Containers and/or packages related to hazardous materials shall be properly
labeled and warning signage shall be properly displayed and easily visible.
o All persons shall be trained on what to do in the event of an emergency
involving hazardous material on the property.
Fire protection plans shall refer to the location of all hazard communication information.
Interior Finishes. It is common in marijuana grow facilities to use a Visqueen® or
Mylar® type plastic/polyethylene or polyester sheeting to cover walls and ceilings. Any
use of plastic to enclose rooms or cover walls and/or ceilings must be installed in
accordance with building and fire code requirements. Interior finishes must com ply
with flame spread ratings in accordance with Table 803.3 of the CFC. (Note: Hanging
plastic from ceilings or suspended overhead structures to create wall dividers is
typically NOT compliant with code provisions for a wall partition or interior finish.)
Exits and Exit Signage, Egress Security measures are often extreme in cannabis
facilities. The desire for security in no way overrides the minimum requirements for
exiting and egress. Common issues associated with exits and egresses are as follows:
Number of exits shall be in accordance with the CFC. Fire protection plan shall identify
o Means of egress cannot be concealed in any way.
o Exit doors and their function (these cannot be eliminated without prior
approval).
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 7 of 12
o Where 2 or more exits are required, egress doors are required to swing in the
direction of egress travel.
o Where more than one exit is required, illuminated exit signs are to be provided
that must be readily visible from any direction of egress travel.
o Intermediary exit signs may also be required per Section 1013 of the CFC.
o H occupancies require specific considerations for exiting.
Locks and Key Box Where security and life safety objectives conflict, alternative
measures may be required or permitted by the City. SECURITY GATES – Due to the
increased security measures typically required, and the potential hazards associated
with marijuana facilities, the City is authorized to require that any security gate be
installed across a fire apparatus road first be approved before installation.
o KEY BOXES – Installation of a key box in an approved location, which will
permit timely access to the facility in the event of an emergency shall be
identified.
o LOCKS – The installation of “approved” locks on any and all gates or similar
barriers, which will permit timely access to all areas of the facility’s property in
the event of an emergency. If the facility has electronic access controls, the
City will require an access code or electronic access card be provided.
o BOLTS, BARS, LOCKS & LATCHES – Egress doors are required to open
easily when exiting without the need for a key, without using extra effort and/or
without having special knowledge in order to operate the installed hardware.
Door handles, pulls, latches, locks and other operating devices should be free
of tight grasping, tight pinching or twisting of the wrist to operate. Slide bolts,
security bars, dead bolts, thumb latches and similar hardware items are
prohibited from being installed on emergency egress doors.
o ALTERNATIVE LOCKING DEVICES - Delayed egress locks and
electromagnetic locks are permitted for use in other occupancy types, and
must be approved for use by the City.
Fire suppression systems. Fire protection plan shall include all suppression systems
designed to meet the specific
36. Fire prevention plan requirements may change at the sole discretion of the City. Any
changes of requirements imposed by the City shall be complied at minimum during the
annual inspection process or sooner as required by the City.
37. In the event any discrepancies between local and state regulations exist, the more restrictive
requirements shall prevail.
Closure Plan
38. Prior to the approval of a Cannabis Business Permit a separate document referred to as a
closure plan shall be reviewed and approved. At a minimum the closure plan shall include
Remediation Plan. Describe how the cannabis facility will be remediated at end of use.
(Process of Removing Equipment, Chemicals, and other items/remnants).
A closure cost estimate. Closure costs include the expenses for ceasing operation of
the cannabis facility and safely closing the unit and cleaning up any contamination.
Post-closure care costs include long-term maintenance of the unit or facility,
monitoring, and record keeping during the required post-closure care period.
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 8 of 12
Owner/operators calculate cost estimates based on the cost of paying a third party to
perform the required closure and post-closure care activities as outlined in the facility's
remediation plan. Cost estimates must be adjusted annually throughout the
operational life of the facility to account for inflation.
39. Surety Bond. A surety bond from a surety company shall be submitted and maintained
throughout the life of the cannabis business permit that all closure and post-closure plan
requirements will be fulfilled. If the owner/operator fails to meet the requirements specified
in the bond, the surety company is liable for the costs.
40. Closure plan requirements may change at the sole discretion of the City. Any changes of
requirements imposed by the City shall be complied at minimum during the annual
inspection process or sooner as required by the City.
41. In the event any discrepancies between local and state regulations exist, the more restrictive
requirements shall prevail.
Insurance
42. The owner/operator shall obtain and maintain at all times during the term of the permit
comprehensive general liability insurance and comprehensive automotive liability insurance
protecting the permittee in an amount of not less than one million dollars ($1,000,000.00)
per occurrence, combined single limit, including bodily injury and property damage and not
less than one million dollars ($1,000,000.00) aggregate for each personal injury liability,
products-completed operations and each accident, issued by an insurance provider
admitted and authorized to do business in California and shall be rated at least A-:viii in A.M.
Best & Company's Insurance Guide. Proof of said insurance must be provided to the
Planning Division before the business commences operations. Any changes to the
insurance policy must be submitted to the Community Improvement Division within 10 days
of the date the change is effective.
Signs
43. Street address shall be visible from the public street and/or shall be displayed on the
freestanding sign. If there is no freestanding sign, the street address may be displayed on
the fascia adjacent to the main entrance or on another prominent location. When the
property has alley access, address numerals shall be displayed in a prominent location
visible from the alley. Numerals shall be a minimum twelve (12) inches in height with not
less than three-fourth-inch stroke and shall contrast sharply with the background.
Identification of individual units shall be provided adjacent to the unit entrances. Letters or
numerals shall be four (4) inches in height with not less than one-fourth-inch stroke and shall
contrast sharply with the background.
44. The following signs in measurements of not less than eight by 10 inches shall be clearly and
legibly posted in a conspicuous location inside the cannabis site where they will be visible
to members and customers in the normal course of a transaction, stating:
Smoking, ingesting or consuming cannabis on this property or within 20 feet of the
cannabis facility is prohibited.
Drinking, ingesting or consuming alcohol on this property or within 20 feet of the
cannabis facility is prohibited.
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 9 of 12
That no person under the age of twenty-one (21) years of age is permitted to enter
upon the premises.
That loitering by persons outside the facility both on the premises and within fifty feet
(50') of the premises is prohibited.
Juveniles are prohibited from entering this property unless they are a qualified patient
or a primary caregiver and they are in the presence of their parent or legal guardian.”
Neither the City of Lake Elsinore, nor any other governmental agency, has tested or
inspected any cannabis product for pesticides, or other regulated contaminants,
distributed at this location.
45. Business identification signage shall be limited to that needed for identification only.
Business identification signage shall not include any references to marijuana or cannabis,
whether in words or symbols. All signs shall comply with the Municipal Code. No sign shall
be installed until the owner/operator or its designated contractor has obtained any permit
required from the City.
46. Signs on the cannabis facility building shall not obstruct the entrance or windows of the
distribution facility.
Records Retention/Reporting
47. The owner/operator of this cannabis facility shall maintain accurate books and records,
detailing all of the revenues and expenses of the business, and all of its assets and liabilities.
On no less than an annual basis, or at any time upon reasonable request of the City, the
owner/operator shall file a sworn statement detailing the number of sales by the medical
marijuana business during the previous twelve month period (or shorter period based upon
the timing of the request), provided on a per-month basis. The statement shall also include
gross sales for each month, and all applicable taxes paid or due to be paid.
48. The owner/operator shall maintain a current register of the names and the contact
information (including the name, address, and telephone number) of anyone owning or
holding an interest in the medical marijuana business, and separately of all the officers,
managers, employees, agents and volunteers currently employed or otherwise engaged by
the cannabis facility. The register required by this condition shall be provided to the City
Manager upon a reasonable request.
49. The owner/operator shall maintain an inventory control and reporting system that accurately
documents the present location, amounts, and descriptions of all cannabis and cannabis
products for all stages of the production or manufacturing, laboratory testing and distribution
processes. Subject to any restrictions under the Health Insurance Portability and
Accountability Act (HIPPA), the owner/operator shall allow City officials to have access to
the business's books, records, accounts, together with any other data or documents relevant
to its permitted medical marijuana activities, for the purpose of conducting an audit or
examination. Books, records, accounts, and any and all relevant data or documents will be
produced no later than twenty-four (24) hours after receipt of the City's request, unless
otherwise stipulated by the City.
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 10 of 12
50. The owner/operator shall have in place a point-of-sale tracking system to track and report
on all aspects of the medical marijuana business including, but not limited to, such matters
as cannabis tracking, inventory data, and gross sales (by weight and by sale). The
owner/operator shall ensure that such information is compatible with the City's record-
keeping systems. The system must have the capability to produce historical transactional
data for review by the City Manager.
Construction Permitting
51. Any internal or external modifications to the building shall require a building permit.
52. No Certificate of Occupancy shall be issued without the issuance of a Cannabis Business
Permit and a City Business License.
53. The Applicant shall meet all applicable Building Codes in effect at the time, including but not
limited to: 2019 California Building Code, 2019 California Electrical Code, 2019 California
Mechanical Code, 2019 California Plumbing Code, 2019 California Green Building
Standards Code, and 2019 California Energy Code (or the applicable adopted California
Building Code, California Electrical Code, California Mechanical Code, California Plumbing
Code, California Green Building Standards, and California Energy Code, at the time of plan
submittal or permit issuance) and California Code of Regulations, also known as the
California Building Standards Code, as amended by the City. Requirements for accessibility
to sites, facilities, buildings, and elements by individuals with disability shall comply with
Chapter 11 B of the 2019 California Building Code.
54. The conditions of approval and ordinance or code provisions of this application shall be
blueprinted on the face of the site plan as part of the plan check submittal package.
55. Plans shall be prepared by a California licensed Architect or Engineer Plans shall be wet
stamped and signed by the licensed Architect or Engineer prior to the issuance of building
permits.
56. The applicant/operator shall comply with all requirements of the Riverside County Fire
Department Lake Elsinore Office of the Fire Marshal.
57. Comply with the requirements of the 2019 California Fire Code and referenced standards
as amended by the City.
Conditional Use Permit Inspections
58. No person having responsibility for the operation of a cannabis business, shall impede,
obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review
or copy records, recordings or other documents required to be maintained by a medical
marijuana business under this chapter or under state or local law. It is also unlawful for a
person to conceal, destroy, deface, damage, or falsifies any records, recordings or other
documents required to be maintained by a cannabis business under state or local law.
59. The City Manager or their designees may enter this business at any time during the hours
of operation without notice and inspect the location of this business as well as any
recordings and records required to be maintained pursuant to LEMC or under applicable
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 11 of 12
provisions of State law. The City Manager or his or her designees may conduct inspections
at the site, as well as any recordings and records required to be maintained pursuant to the
Municipal Code or under applicable provisions of State law.
60. Quarterly Inspections will be conducted by the City to verify compliance with the approved
operation. The applicant will pay for the inspection according to the Additional Required
Inspections as adopted in the Fee Schedule. Code Enforcement officers, the Building
Official and/or the Fire Marshal may enter and inspect the location of this business between
the hours of 8:00 am and 5:00 pm Monday through Friday upon 24 hours telephonic notice
to the owner or operator, to ensure compliance with this CUP.
61. Annual Fire & Life Safety Inspections will be conducted by the Fire Station Crew for
emergency response pre-planning and site access familiarization. The applicant will pay for
the inspection according to the adopted Fee Schedule.
PA 2018-46 (DA 2018-13/CUP 2018-17) PC: February 1, 2022
Conditions of Approval CC: March 8, 2022
Applicant’s Initials: _____ Page 12 of 12
I hereby state that I acknowledge receipt of the approved Conditions of Approval for the above
named project and do hereby agree to accept and abide by all Conditions of Approval as approved
by the City of Lake Elsinore City Council on ___________. I also acknowledge that all Conditions
shall be met as indicated.
Date:
Applicant’s Signature:
Print Name:
Address:
Phone Number:
THIRD STBIRCH STPASADENA ST
MINTHORN ST
THIRD STBIRCH STPASADENA ST
MINTHORN ST
Planning Application No. 2018-46APN: 377-430-050VICINITY MAP
PROJECT SITE
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THIRD STSource: Esri, DigitalGlobe, GeoEye, Earthstar Geographics,CNES/Airbus DS, U SDA, USGS, AeroGRID, IGN, and the GIS UserCommunityTHIRD STSource: Esri, DigitalGlobe, GeoEye, Earthstar Geographics,CNES/Airbus DS, U SDA, USGS, AeroGRID, IGN, and the GIS UserCommunity
Planning Application No. 2018-46APN: 377-430-050AERIAL MAP
PROJECT SITE
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-
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 1 of 12
-
Traffic Impact Analysis Report
For Cannabis Uses At
540 3rd Street
Lake Elsinore, CA 92530
Prepared For: LECANNA LLC
Date: April 04, 2021
Last Update: 11/21/2021 9:09 AM
Document Size: 14008832
Prepared By: Cadaret Management LLC
(Property Owner)
And
K2 Traffic Engineering, Inc.
1442 Irvine Blvd, Suite 210,
Tustin, CA 92780
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 2 of 12
Table Of Contents
1 EXECUTIVE SUMMARY-------------------------------------------------------------------------------2
2 VICINITY MAP--------------------------------------------------------------------------------------------4
3 K2 TRAFFIC IMPACT ANALYSIS REPORT-----------------------------------------------------7
4 ATTACHMENTS -----------------------------------------------------------------------------------------8
4.1 K2 Traffic Impact Analysis Report------------------------------------------------------------------------ 8
4.2 Additional Use Planning Information-------------------------------------------------------------------12
5 END-------------------------------------------------------------------------------------------------------- 12
Figures
Figure 1 – K2TE TIAR Assumption (See Figure 8) ............................................................................................3
Figure 2 - K2TE TIAR Conclusion (See Figure 9)..............................................................................................3
Figure 3 - COLE Zoning Map - Annotated..........................................................................................................4
Figure 4 - Surrounding Area View ......................................................................................................................5
Figure 5 - 540 3rd St - Property #15 Detail.........................................................................................................6
Figure 6 - Excerpt From the Bylaws Of The Birch And Third Street Association (B3SA) ..................................6
Figure 7 - K2TE TIAR Page 1.............................................................................................................................8
Figure 8 - K2TE TIAR Page 2.............................................................................................................................9
Figure 9 - K2TE TIAR Page 3...........................................................................................................................10
Figure 10 - K2TE TIAR Page 4.........................................................................................................................11
Figure 11 – Rough Facility Layout For Various Possible Operations...............................................................12
Tables
Error! No table of figures entries found.
1 Executive Summary
Cadaret Management LLC (CMLLC) is the owner of the property whose address is 540 3rd Street, Lake
Elsinore CA 92530. CMLLC supports LECANNA LLC (LECANNA) in the use of our property as a
cannabis business site. This document is intended to support the acquisition of a City Of Lake Elsinore
(COLE) Cannabis Conditional Use Permit (CCUP) by LECANNA.
To support LECANNA in its efforts, CMLLC engaged K2 Traffic Engineering, Inc (K2TE) to generate a
Traffic Impact Analysis Report (TIAR) for the property. The property resides within a previously developed
business park and the business park contains no commonly owned areas. Within the confines of the property
include 28 parking spaces are currently accessible to the public.
After discussions with COLE Planning Department staff we requested that K2TE generate a TIAR for the
property when used as a "microbusiness" cannabis business site. Such a site will likely include a dispensary,
distribution/delivery, manufacturing, and cultivation operations when fully operational. K2TE then
generated the TIAR that is included in section 3 of this document.
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 3 of 12
Figure 1 – K2TE TIAR Assumption (See Figure 8)
The conclusion reached by K2TE is presented on page 3 of their attached report and is presented below:
Figure 2 - K2TE TIAR Conclusion (See Figure 9)
Notes:
1. The above TIAR conclusion is based on a dispensary of 2,300 sq-ft in size.
2. One should not conclude that LECANNA will have a dispensary of this size. The report simply
states that we could have a dispensary up to 2,300 sq-ft in size without detrimental traffic impacts.
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 4 of 12
2 Vicinity Map
The location of the property is within an industrial area withing a Lake Elsinore business district as shown in
the figure below.
Figure 3 - COLE Zoning Map - Annotated
The star on the map shows the location of the property.
The property resides within an existing business park as shown in the figure below.
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 5 of 12
Figure 4 - Surrounding Area View
Notes:
1. The boundary for the business park is shown highlighted.
Figure 5 below shows an excerpt from the drawing set created by the original builder of the business park.
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 6 of 12
Figure 5 - 540 3rd St - Property #15 Detail
Notes:
1. The property boundary for our 540 3rd St (unit #15) property clearly shows that there are 28 parking
spaces within the property boundary shown. Figure 11 on page 12 provides the current parking
layout that shows the 28 publicly available parking spaces.
2. The picture apparently shows the building nominal size as 9792 sq-ft (as designed).
Figure 6 - Excerpt From the Bylaws Of The Birch And Third Street Association (B3SA)
Notes:
1. The B3SA founders clearly recognized that the business park has no commonly owned property.
2. Therefore, all parking spaces are within the property boundaries shown are owned by their respective
property owners.
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 7 of 12
3 K2 Traffic Impact Analysis Report
The Traffic Impact Analysis Report generated by K2TE is presented in its entirety in section 4.1 of this
document. Note that this report was recently revised to improve clarity.
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 8 of 12
4 Attachments
4.1 K2 Traffic Impact Analysis Report
Figure 7 - K2TE TIAR Page 1
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 9 of 12
Figure 8 - K2TE TIAR Page 2
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 10 of 12
Figure 9 - K2TE TIAR Page 3
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 11 of 12
Figure 10 - K2TE TIAR Page 4
Traffic Impact Analysis Report (TIAR) For 540 3rd Street
PA 2018-46 - Exhibit G - Traffic Impact Analysis-07.doc 11/21/2021 9:09 AM Page 12 of 12
4.2 Additional Use Planning Information
Figure 11 – Rough Facility Layout For Various Possible Operations
Notes:
1. Rear yard is walled and gated.
2. Our Phase-1 startup plan currently favors supporting only MFG and/or CULT operations. Any
DISP/DIST/DEL operations will likely only be considered in Phase-2 or later.
5 END
Subject: Objections to cannabis facility at 540 3RD ST
From: LECANNA Manager <mgr@lecanna.cc>
Date: 1/31/2022, 4:04 PM
To: Matt Doll | American Fire Glass <matt@americanfireglass.com>, Robin Ellis | American Fire Glass
<robin.ellis@americanfireglass.com>
CC: Damaris Abraham <dabraham@lake-elsinore.org>, Justin Kirk <jkirk@Lake-Elsinore.org>
Hello Matt and Robin,
Please see my attached responses to your objections.
Note that our family has owned this property for ~30 years.
After giving up on cannabis leasing in OCT 2019 we decided to give
the business a try ourselves.
Our focus for the near term will be manufacturing cannabis products
so our operation will likely be similar to your own. (make stuff and
sell it)
The reason for this is we want a low cost startup plan and avoid
seeking funding from the vulture capital community.
As you can see in my responses our property was also recently and
remotely victimized by crime.
Nevertheless, I never even thought that the cannabis facility at 480
3RD ST was a contributing factor.
After getting my "cannabis business PhD" in the last few years I can
tell you that the security requirements for every cannabis facility
are substantial.
We will have more external lighting and likely more than a dozen
external HighRes cameras and we must meet a >30 day video storage
requirement to comply with the state regs.
I am currently exploring some Linux-based software to automatically
monitor our cameras and generate automated local/email/text alerts.
https://blog.jasonantman.com/2018/05/linux-surveillance-camera-
software-evaluation/
ZoneMinder is my current favorite.
Please let me know if you would like to discuss further.
I hope this email eases your concerns.
‐‐
-
================================================================
Paul Cadaret, Manager LECANNA LLC
Voice: 951-674-1435
EMAIL: mgr@lecanna.cc
================================================================
CONFIDENTIALITY NOTICE: The contents of this email are intended solely for the named addressee and may contain proprietary data or information; any unauthorized use of the contents is
expressly prohibited. If you have or suspect you have received this email in error, please delete it and any attachments immediately and advise the sender. If you are the intended recipient you
should not disclose all or any part of the contents except in accordance with applicable nondisclosure and confidentiality agreements. Thank You. P7VM2
Attachments:
Objection-AFG-Matt.pdf 276 KB
Objection-AFG-Robin.pdf 424 KB
Objections to cannabis facility at 540 3RD ST imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
1 of 1 1/31/2022, 4:29 PM
Subject: Re: FW: [External]Opposition to the building of a new Cannabis facility on Third street.
From: LECANNA Manager <mgr@lecanna.cc>
Date: 1/31/2022, 3:29 PM
To: Damaris Abraham <dabraham@lake-elsinore.org>
CC: Justin Kirk <jkirk@Lake-Elsinore.org>
Hi Damaris,
Thank you for this feedback.
I would now be happy to Matt's concerns.
Crime:
I can certainly sympathize with Matt's crime concerns.
We have owned this property for almost 30 years and there have
always been car break-ins and other crime in our area at night.
Our area is a bit off the beaten path... but not so much anymore...
Even when my Dad had a truck parked within our walled/gated rear
yard area 10+ years ago we had the truck get badly vandalized
(dashboard ripped out).
I can totally understand Matt's concerns.
As Justin and the Mayor knows, we recently had a break-in at our
building.
Thankfully our alarm system caught it right away and a Sheriff
deputy showed up in a few minutes.
He then waited for me to show up to secure the building. (I am very
thankful)
I spoke with the Deputy for over an hour.
The officer told me that homelessness was a big problem in our area
and the two folks who entered our building likely broke in seeking
shelter or to find something to steal and sell.
I further understand that the storage yard at Pasadena and 3rd
street is a safe zone for homeless folks and a source of problems in
our area.
However, homelessness is a general problem throughout
the City and everywhere in SoCal.
Nobody can deny this is a continuing problem and the
City is doing the best it can to cope with this
difficult situation.
Re: FW: [External]Opposition to the building of a new Cannabis faci... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
1 of 3 1/31/2022, 3:35 PM
A while back I asked Justin about increases in crime from cannabis
operations.
He said that no such increase was observed and that this could be
attributed to the fact that each cannabis facility is required to
have increased security and extensive video monitoring.
I would like to assure Matt that our required video
surveillance will be a deterrent to crime in our area.
On 1/31/2022 12:43 PM, Damaris Abraham wrote:
FYI
Damaris Abraham
Senior Planner
City of Lake Elsinore
(951) 674‐3124, ext. 913
From: Matt Doll | American Fire Glass <matt@americanfireglass.com>
Sent: Monday, January 31, 2022 11:35 AM
To: Damaris Abraham <dabraham@lake-elsinore.org>
Subject: [External]Opposition to the building of a new Cannabis facility on Third street.
Message
from
external
sender.
Use
Caution.
Hi, my name is Matt Doll and I am the CEO of a business located at 570 Third Street, Lake Elsinore, ca 92530
In the last 30 or so months since Lake Elsinore allowed the current dispensary on our street we have seen a large uptick in theft.
Our yard has been broken into multiple times and most recently one of our trucks was stolen.
Re: FW: [External]Opposition to the building of a new Cannabis faci... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
2 of 3 1/31/2022, 3:35 PM
I cannot say for sure if this was due to the dispensary or not. It is just an observation. I would like to issue my opposition to the
building of a new Cannabis facility on Third street.
Thank you,
Matt Doll
President/CEO
American Fire Glass, Inc.
570 Third St. Lake Elsinore, CA 92530
Office: 888.264.1017 x 806
Text: 951.757.4729
‐‐
-
================================================================
Paul Cadaret, Manager LECANNA LLC
Voice: 951-674-1435
EMAIL: mgr@lecanna.cc
================================================================
CONFIDENTIALITY NOTICE: The contents of this email are intended solely for the named addressee and may contain proprietary data or information; any unauthorized use of the contents is
expressly prohibited. If you have or suspect you have received this email in error, please delete it and any attachments immediately and advise the sender. If you are the intended recipient you
should not disclose all or any part of the contents except in accordance with applicable nondisclosure and confidentiality agreements. Thank You. P7VM2
Re: FW: [External]Opposition to the building of a new Cannabis faci... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
3 of 3 1/31/2022, 3:35 PM
Subject: Re: FW: [External]2/1/22 PUBLIC HEARING/Planning App No 2018-46 (LECANNA)
From: LECANNA Manager <mgr@lecanna.cc>
Date: 1/31/2022, 3:16 PM
To: Damaris Abraham <dabraham@lake-elsinore.org>
CC: Justin Kirk <jkirk@Lake-Elsinore.org>
Hi Damaris,
Thank you for this feedback.
I would now be happy to Robin's concerns.
Traffic/Parking:
There is no doubt that 3rd Street traffic has increased over the
last few years during the construction work for the new Marshalls
shopping center up the street.
Detours have often caused much traffic to come to 3rd Street.
The car dealer up the street has caused some traffic increase as
well.
With surrounding development comes a bit of a traffic increase; this
is inevitable.
I would certainly not attribute the referenced traffic increase to
the existing cannabis facility at 480 3rd Street or any of the
Re: FW: [External]2/1/22 PUBLIC HEARING/Planning App No 20... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
1 of 5 1/31/2022, 3:34 PM
surrounding cannabis facilities.
I also note that the property at 570 3rd Street is not in our
business park.
It is a significant distance up the street.
Our ability to affect this property from a car or foot traffic
perspective is a stretch.
Our ability to affect this property from a parking perspective is an
even bigger stretch considering that we own 14 parking spaces on the
north side of our property alone. (and 14 more on the south side)
The Traffic Report we submitted to the City shows that our cannabis
operations will have no significant change to traffic patterns from
prior non-cannabis uses on our property.
I would like to remind Robin that the major focus of a cannabis
facility is not always a dispensary.
In our case our focus will initially be on non-retail business
activities.
Crime:
I can certainly sympathize with Robin's crime concerns.
We will have female employees as well.
There have always been car break-ins in our area at night.
Our area is a bit off the beaten path... but not so much anymore...
Re: FW: [External]2/1/22 PUBLIC HEARING/Planning App No 20... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
2 of 5 1/31/2022, 3:34 PM
Even when my Dad had a truck parked within our walled/gated rear
yard area 10+ years ago we had the truck get badly vandalized
(dashboard ripped out).
As Justin and the Mayor knows, we recently had a break-in at our
building.
Thankfully our alarm system caught it right away and a Sheriff
deputy showed up in a few minutes.
He then waited for me to show up to secure the building. (I am very
thankful)
I spoke with the Deputy for over an hour.
He told me that homelessness was a big problem in our area and the
two folks who entered likely broke in seeking shelter or to find
something to steal and sell.
I further understand that the storage yard at Pasadena and 3rd
street is a safe zone for homeless folks and a source of problems in
our area.
However, homelessness is a general problem throughout
the City and everywhere in SoCal.
Nobody can deny this is a continuing problem and the
City is doing the best it can to cope with this
difficult situation.
A while back I asked Justin about increases in crime from cannabis
operations.
He said that no such increase was observed and that this could be
attributed to the fact that each cannabis facility is required to
have increased security and extensive video monitoring.
I would like to assure Robin that our required video
surveillance will be a deterrent to crime in our area.
Homeless Traffic:
Re: FW: [External]2/1/22 PUBLIC HEARING/Planning App No 20... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
3 of 5 1/31/2022, 3:34 PM
I am glad to see that Robin has also noticed the increase in
homeless folks around our area as well.
Perhaps if Robin's company and our company make our
video cameras readily available to the City this will
help the City to address our neighborhood crime issue.
On 1/31/2022 12:40 PM, Damaris Abraham wrote:
FYI
Damaris Abraham
Senior Planner
City of Lake Elsinore
(951) 674‐3124, ext. 913
From: Robin Ellis | American Fire Glass <robin.ellis@americanfireglass.com>
Sent: Monday, January 31, 2022 12:25 PM
To: Damaris Abraham <dabraham@lake-elsinore.org>
Subject: [External]2/1/22 PUBLIC HEARING/Planning App No 2018-46 (LECANNA)
Message
from
external
sender.
Use
Caution.
Hello,
I’m sending this email to express my concern for the above-referenced Public Hearing for a new Cannabis facility requesting to
open at 540 Third Street.
I have been employed by American Fire Glass, located at 570 Third Street, for over 7 years. During the last year or two, we
have had an increase in car and foot traffic to this area and seen an increase in crime. At our facility alone, we have had the
fence surrounding our yard cut a couple times and have recently had a company truck stolen from the back. While we can’t say
this is directly as a result of the several cannabis shops that have already been permitted to open in our area over the last several
years, my fear is the addition of yet another shop will increase what we have seen as of late.
Our office employees are largely comprised of females who are the first here in the morning and the last to go at night and
depending on the time of year, it is often dark outside. I feel that the safety of employees in the area and other companies
properties/materials should be a consideration. I also feel that the surrounding businesses do not have enough parking to
sustain their own employees and customers and there will not be enough for more consumer/guest parking. Adding a potential
new Cannabis shop, which in all likelihood doesn’t have enough parking to sustain employees and consumers, will cause their
consumers to use parking marked for other businesses. Please note, Third Street has no street parking available. I am opposed
to the opening of yet another Cannabis shop in this area.
Perhaps instead of trying to fill every corner with a Cannabis shop in this industrial area, someone should try to improve the
area to better serve it’s current businesses. For example, the north side of Third Street, has a barren ditch/gulley that could use
some improvement. Weeds grow through half the year, trash is left down in it and homeless have been spotted there.
Thank you,
Re: FW: [External]2/1/22 PUBLIC HEARING/Planning App No 20... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
4 of 5 1/31/2022, 3:34 PM
Robin Ellis
Customer Service Manager
American Fire Glass, Inc.
570 Third St. Lake Elsinore, CA 92530
Office: 888.264.1017 x 812
‐‐
-
================================================================
Paul Cadaret, Manager LECANNA LLC
Voice: 951-674-1435
EMAIL: mgr@lecanna.cc
================================================================
CONFIDENTIALITY NOTICE: The contents of this email are intended solely for the named addressee and may contain proprietary data or information; any unauthorized use of the contents is
expressly prohibited. If you have or suspect you have received this email in error, please delete it and any attachments immediately and advise the sender. If you are the intended recipient you
should not disclose all or any part of the contents except in accordance with applicable nondisclosure and confidentiality agreements. Thank You. P7VM2
Re: FW: [External]2/1/22 PUBLIC HEARING/Planning App No 20... imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
5 of 5 1/31/2022, 3:34 PM
Subject: Re: FW: [External]Planning Application No. 2018-46 (LECANNA)
From: LECANNA Manager <mgr@lecanna.cc>
Date: 1/31/2022, 2:31 PM
To: Damaris Abraham <dabraham@lake-elsinore.org>
CC: Justin Kirk <jkirk@Lake-Elsinore.org>
Hi Damaris,
Thank you for this feedback.
I am certain that the Lee & Associates realty company is one of the realty agencies that I rejected during my leasing efforts a few years ago due to their highly unreasonable
lease broker contract terms.
As I recall, if I leased our property through them they had a clause that said that at any point in the future if I should decide to sell the property I would be required to use
them to list it.
I rejected their proposal.
I would now be happy to address Lawrence's interesƟng theories on cannabis properƟes.
Traffic:
First, the property he refers to is not even in our business park.
Our ability to affect this property from a car or foot traffic perspecƟve is a stretch.
Crime:
There have always been car break‐ins in our area at night.
Our area is a bit off the beaten path...
Even when my Dad had a truck parked within our walled/gated rear yard area 10+ years ago we had the truck get badly vandalized (dashboard ripped out).
As JusƟn and the Mayor knows, we recently had a break‐in at our building.
Thankfully our alarm system caught it right away and a Sheriff deputy showed up in a few minutes.
He then waited for me to show up to secure the building. (I am very thankful)
I spoke with the Deputy for over an hour.
He told me that homelessness was a big problem in our area and the two folks who entered likely broke in seeking shelter or to find something to steal and sell.
I further understand that the storage yard at Pasadena and 3rd street is a safe zone for homeless folks and a source of problems in our area.
However, homelessness is a general problem throughout the City and everywhere in SoCal.
Nobody can deny this is a conƟnuing problem and the City is doing the best it can to cope with this difficult
situaƟon.
Re: FW: [External]Planning Application No. 2018-46 (LECANNA) imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
1 of 3 1/31/2022, 3:32 PM
A while back I asked JusƟn about increases in crime from cannabis operaƟons.
He said that no such increase was observed and that this could be aƩributed to the fact that each cannabis facility is required to have increased security and extensive video
monitoring.
This realtor should be happy our area will have more local video surveillance!
Property Value DegradaƟon:
When I asked JusƟn about degraded property values due to cannabis he said that property values have in fact gone way up due to the approved cannabis faciliƟes.
Even the prospect of approvable cannabis business sites has elevated property values.
I can tell you that I have been offered >3x our previous appraised value (cash) and that is even without an approved cannabis CUP.
A savvy real estate broker should be keenly aware of this.
On 1/31/2022 12:40 PM, Damaris Abraham wrote:
FYI
Damaris Abraham
Senior Planner
City of Lake Elsinore
(951) 674‐3124, ext. 913
From: Larry Null <lnull@leeriverside.com>
Sent: Monday, January 31, 2022 12:05 PM
To: Damaris Abraham <dabraham@lake-elsinore.org>
Cc: Matt Doll - American Fireglass, Inc. (matt@americanfireglass.com) <matt@americanfireglass.com>; brianhall@cbskyridge.com
Subject: [External]Planning Application No. 2018-46 (LECANNA)
Message
from
external
sender.
Use
Caution.
Damaris, I am composing this email to strongly object to the approval of this Application. Mr. Hall and I own the building next door at 570 Third Street in the name of our partnership,
Third Lake Partners, LLC. Matt Doll, copied on this email, is our long-term tenant. His company is American Fireglass. Matt related to me that he seriously considered moving his
business from Lake Elsinore due to the proliferation of cannabis related companies surrounding his building. He has seen a remarkable increase in crime, break ins and thefts, including
a truck parked in his rear yard, since the neighborhood has degenerated. It is not good for his business or for our real estate value to be surrounded by cannabis operations. Enough is
enough! Please reject this Application and if you must have another cannabis related company in Lake Elsinore move it somewhere else. Thanks for your consideration. Regards.
Lawrence C. Null, SIOR
Senior Vice President
Lee & Associates | Riverside
VIEW MY LISTINGS
D 951.276.3616
O 951.276.3600
C 714.342.0865
lnull@lee-associates.com
Re: FW: [External]Planning Application No. 2018-46 (LECANNA) imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
2 of 3 1/31/2022, 3:32 PM
____________________________________
What is SIOR?
Corporate DRE #01048055 | DRE #00822133
4193 Flat Rock Drive, Suite 100
Riverside, California 92505
Confidentiality Notice: The information contained in this electronic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and may be confidential. If any reader of this communication is not the intended
recipient, unauthorized use, disclosure or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from
your system. Thank you.
‐‐
-
================================================================
Paul Cadaret, Manager LECANNA LLC
Voice: 951-674-1435
EMAIL: mgr@lecanna.cc
================================================================
CONFIDENTIALITY NOTICE: The contents of this email are intended solely for the named addressee and may contain proprietary data or information; any unauthorized use of the contents is expressly prohibited. If you have or suspect you have received this email in error, please
delete it and any attachments immediately and advise the sender. If you are the intended recipient you should not disclose all or any part of the contents except in accordance with applicable nondisclosure and confidentiality agreements. Thank You. P7VM2
Re: FW: [External]Planning Application No. 2018-46 (LECANNA) imap://mgr%40lecanna%2Ecc@imap.1and1.com:143/fetch%3E...
3 of 3 1/31/2022, 3:32 PM
PA #District Corporate Name Contact Address APN Approved Size Size Current Status Occupancy Approval ApplicationPA 2018-34BD SyndicateShawn Belschner 504 Central Avenue 377-420-002 6,141 6,141 Fully operational. 11/21/2019 12/11/2018 4/13/2018PA 2018-44BD Medcare Farms Garin Heslop 29395 Hunco Bldg A 377-120-043 39,000 35,264 Partially operational, ETA to build out 12-18 months. 1/1/2020 12/11/2018 4/16/2018PA 2020-84BD Kind DeliveryJarret Hale 571-H Crane Street 377-410-032 3,754 3,754 Fully operational. 7/30/2020 4/28/2020 1/30/2020PA 2018-39BD Mr. Nice Guy Joesph Martin 311 Minthorn370-220-003, 019, and 021 8,500 8,500 Fully operational. 9/30/2020 12/11/2018 4/13/2018PA 2018-45BD The Highest Craft Nick Wolin571 Crane Avenue D, E and F377-410-034, 377-410-031, 377-410-020 14,959 10,723 Partially operational, ETA to build out 6-9 months. Paying full fees on total area approved. 11/4/2020 12/11/2018 4/16/2018PA 2018-38BD The Healing TreeDarren Hagen480 Third St. & 490 Third Street 377-140-027 20,891 20,891 Partially operational, ETA to build out 6-9 months. Paying full fees on total area approved. 11/13/2020 12/11/2018 4/16/2018PA 2018-37ELThe Modern LeafJosh Grant 31877 Corydon 370-051-008 2,074 2,074 Fully operational. 6/16/2019 12/11/2018 4/16/2018PA 2018-36EL VERT Saif Alchi 31875 Corydon370-051-008 & 031 8,099 8,099 Fully Operational 1/26/2022 12/11/2018 4/13/2018PA 2019-28BD Roots 2 Harvest Ted Kingston 29370 Hunco Way 377-220-024 12,411 12,411 Fully Operational 1/22/2022 12/10/2019 4/18/2019 115,829 107,857 PA # District Corporate Name Contact Address APN Size Current Status Exp Date Approval ApplicationPA 2018-33EL IE Shawn 31885 Corydon Units 370-031-17, 5,000 5,000 Occupancy permit issued 3/2/2022 3/17/2021 12/11/2018 4/16/2018 PA 2018-41BD Trustin Solutions Justin Shively 510 Crane Street 377-430-028 5,521 5,521 Building permits have been issued, pending first inspection. 12/11/2021 12/11/2018 4/13/2018PA 2018-40 EL Brighter Systems Justin Shively31887 Corydon STE 150 370-301-012 9,000 9,000 Operational 12/11/2021 12/11/2018 4/13/2018PA 2019-81BD Tree Haus David Lemme 18532 Pasadena 377-430-023 4,892 4,892 Issued 1/4/21, last inspection 5/3/21 4/14/2022 4/28/2020 12/17/2019PA 2019-78ELVISTA PRIMEGeorge Sadler31875 Corydon 370-051-010 5,369 5,369 Plan Check comments returned on 4/13/21, pending resubmittal. 6/2/20226/2/2020 10/31/2019PA 2019-31BD Rahman, ASSC. Bill Rahman 233 Minthorn 377-220-024 17,037 17,037 Grading permits issued, Building Permits issued, last passed inspection was 9/13/21 6/2/2022 6/2/2020 5/13/2019PA 2019-13ELAlba Systems Gil Alba 31879 Corydon Suite 150 370-051-025 2,352 2,352 Plan Check comments returned on 6/21/21, pending resubmittal. 4/14/20224/28/2020 5/17/2019PA 2020-86BD Stellar House Joel Carrillo 570 Central Avenue 377-410-037 6,810 6,810 Issued 4/21/21, last inspection 5/13/21.11/10/202211/10/2020 2/13/2020PA 2020-98EL SCCC Group Hazelina Laskey 31889 Corydon STE 170 370-031-007 4,925 4,925 In plancheck. Comments returned 1/14/21, pending resubmittal. New contractor as of 6/8/21. 1/12/2023 1/12/2021 7/7/2020PA 2018-37ELModern Leaf Expansion Joshua Grant31877 Corydon Road STE 150 370-051-030 4,450 4,450 Plans approved 3/30/21, pending permit issuance.11/10/202211/10/2020 10/11/2019PA 2018-35BD Trucc Brandi SmithNE Corner Central/Pasadena 377-120-059 25,105 25,105 CC approved, In plancheck 4/13/2023 4/13/2021 4/17/2018PA 2020-84BDKind Delivery ExpansionKind Grp Ventures LLC570 Central Avenue Unit G 377-410-024 3,410 3,410 CC approved, waiting Plancheck submission. 9/28/2023 9/28/2021 9/9/2020 93,871 93,871 PA 2018-46BD LECANNAPaul Cadaret540 Third Street 377-430-050 11,612 PC approved 2/1/20224/25/2018PA 2021-33 BD ZenergyWeCann 542 Third Street 377-430-051 7,304 Incomplete letter sent 10/13/2021 9/10/2021 18,916 209,700 228,616 220,644 Summary of Cannabis Facilities by StatusOperationalApproved, Not OperationalIn ProcessTotalTotal Total Cannabis Business StatusUpdated SF 03/03/22