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HomeMy WebLinkAboutResolution 2020-24 DA 2018-01 Modification to Increase Square Footage for Cannabis Facility RESOLUTION NO. 2020-24 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVAL OF MODIFICATIONS TO DEVELOPMENT AGREEMENT NO. 2018-01 TO INCREASE THE TOTAL AREA FROM 1,550 SF TO AN APPROXIMATELY 5,000 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 31885 CORYDON UNITS 130, 140, AND 150 (APN:370-031-17, 370-031-018 AND 370-031-019) Whereas, David Hargett, IE Licensing has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-33 for modifications to Development Agreement No. 2018-01 (Exhibit A) and Conditional Use Permit No. 2018-05 to establish an approximately 1,550 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will increase the size and scope of the facility from 812 SF of manufacturing space and 738 SF of warehouse and ancillary uses to approximately 1,850 SF of cultivation, 2,150 SF of manufacturing and ancillary uses, and a retail dispensary not to exceed 1,000 SF. The Project is generally located at the northeast corner of the intersection Cereal and Corydon and more specifically referred to as 31885 Corydon Units 130, 140, AND 150 (APN:370-031-17, 370- 031018 AND 370-031-019); 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, 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 March 17, 2020, 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. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1: That in accordance with the MSHCP, the Commission 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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC PC Reso. No. 2020-24 Page 2 of 31 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 Commission 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 Commission makes the following findings regarding modifications to Development Agreement No. 2018-01: 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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC PC Reso. No. 2020-24 Page 3 of 31 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 PC 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 Commission hereby recommends that the Council find 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 Commission hereby recommends that the Council approve Development Agreement No. 2018-01. Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted at a regular meeting of the Planning Commission of the City of Lake Elsinore, California, this 17th day of March, 2020. Michael Carroll Chair DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC PC Reso. No. 2020-24 Page 4 of 31 Attest: ___________________________________ Justin Kirk, Assistant Community Development Director STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Justin Kirk, Assistant Community Development Director of the City of Lake Elsinore, California, hereby certify that Resolution No. 2020-24 was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on the 17th day of March, 2020, and that the same was adopted by the following vote: AYES: Commissioners Armit, Gray, and Ross; and Chair Carroll NOES: None ABSENT: Vice-Chair Klaarenbeek ABSTAIN: None Justin Kirk, Assistant Community Development Director For: For: DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC PC Reso. No. 2020-24 Page 5 of 31 Exhibit A DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC PC Reso. No. 2020-24 Page 6 of 31 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) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND IE LICENSING LLC Approved ___________ __, 2020 Ordinance No. 2020-_____ IE Licensing First Amendment DA 031020 DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC -1- FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND IE LICENSING LLC This First Amendment to Development Agreement (“First Amendment”), dated for identification only as of March 1, 2020, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and IE Licensing LLC, a California limited liability company (“Developer”). This Amendment 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. On __________ __, ____, pursuant to City Ordinance No. _______, the City approved and adopted that certain “DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND IE LICENSING LLC,” which Development Agreement was recorded on ___________ __, 2019 in the Official Records of Riverside County, California as Instrument No. ____________ (the “Development Agreement”). B. 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. C. 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. D. In connection with the Developer Agreement, Developer acquired an equitable interest in that certain real property located at 31885 Corydon Road, Suite 140, in the City of Lake Elsinore, County of Riverside, State of California, Assessor’s Parcel Number 370-031-018, which is within a manufacturing zoning district (the “Original Site”). The Floor Area of the Original Site is estimated at 1,550 square feet. E. Developer has recently acquired an equitable interest in that certain real property located at 31885 Corydon Road, Suite 130, in the City of Lake Elsinore, County of Riverside, State of California, Assessor’s Parcel Number 370-031-017, which is within a manufacturing zoning district (the “Suite 130 Site”). F. Developer has also recently acquired an equitable interest in that certain real property located at 31885 Corydon Road, Suite 150, in the City of Lake Elsinore, County of DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC -2- Riverside, State of California, Assessor’s Parcel Number 370-031-019, which is within a manufacturing zoning district (the “Suite 150 Site”). G. The Original Site, the Suite 130 Site and the Suite 150 Site are hereinafter referred to collectively as the “Site.” The estimated Floor Area of the Site is 4,850 square feet. H. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, the Site Plan is attached hereto as Exhibit B, and the Site Floor Plan is attached hereto as Exhibit C. I. Developer affirms that it has an equitable interest in the Site, evidenced in writing with: (i) the owner of the Original Site, James W. Pruitt, Trustee of the James W. Pruitt Intervivos Trust dated December 12, 1988 (the “Original Site Property Owner”), (ii) the owner of the Suite 130 Site, IE Real Estate Holding, LLC, a California limited liability company (the “Suite 130 Property Owner”), and (iii) the owner of the Suite 150 Site, Richard M. Franzo and Kara D. Franzo, Trustees of the Make Good Decisions Trust dated March 8, 2019 (the “Suite 150 Property Owner”), for the purpose of carrying out the Project. The Original Site Property Owner, the Suite 130 Property Owner, and the Suite 150 Property Owner are hereinafter referred to collectively as the “Property Owners.” J. The Property Owners have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D. K. Developer proposes to improve, develop, and use the Site for a Cannabis Business, in accordance with California Cannabis Laws (as defined below) and the LEMC, as each may be amended from time to time (the “Project”). L. 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. M. 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 along with amendments thereto. LEMC, Section 19.12.020 provides for amendments to a development agreement “is the same as the procedure for entering into an agreement in the first instance.” 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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC -3- N. On March __, 2020, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider the application for this First Amendment and recommended to the City Council approval of this Amendment. O. On March __, 2020, the City Council held a duly noticed public hearing to consider this Amendment and found and determined that this First Amendment: (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. P. Based on the findings set forth in Recital O herein, the City Council entered into this Amendment pursuant to and in compliance with the requirements of the Development Agreement Statute and the Development Agreement Ordinance; and did therefore, in approving this Amendment introduce for first reading Ordinance No. 2020-____ (the “Enabling Ordinance”). On __________ __, 2020, the City Council conducted the second reading of the Enabling Ordinance thereby approving this Amendment, to become effective thirty (30) days after the adoption thereof. 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: SECTION 1. EXHIBITS The Development Agreement has attached to it four exhibits designated alphabetically as Exhibit A through Exhibit D. Exhibits A through D of the Development Agreement shall remain in full force and effect except to the extent that the provisions of this Section 1 of the First Amendment modify those Exhibits. The following documents are referred to in this First Amendment, attached hereto and incorporated herein by this reference: Exhibit A Legal Descriptions Exhibit B Modified Site Plan Exhibit C Modified Floor Plan* Exhibit D Property Owners Consent * The Revised Floor Plan exhibit 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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC -4- SECTION 2. REVISIONS TO DEFINITIONS The words and phrases used in this First Amendment as defined terms shall have the meaning set forth in Section 2 of the Development Agreement, except as added and/or modified below which defined terms shall be applicable to both the Development Agreement and the First Amendment. “Amendment Commencement Date” is defined in Section 4.2.c of the Development Agreement (as set forth in Section 3 of this First Amendment below). The Amendment Commencement Date does not amend the Effective Date as defined in the Development Agreement nor does the Amendment Commencement Date modify or change the “Term” or the “Term Commencement Date.” “Amendment Effective Date” means the date upon which this First Amendment is approved by the City Council of the City. The Amendment Effective Date does not amend the Effective Date as defined in the Development Agreement nor does the Amendment Effective Date modify or change the “Term” or the “Term Commencement Date.” “Conditional Use Permit” means Conditional Use Permit No. 2018-05 issued by the City to Developer pertaining to Developer’s original development of the Project and any subsequent amendments thereto. In the event that an amendment to the Conditional Use Permit pertaining to the Suite 130 Site and/or the Suite 150 Site has not been issued to the Developer as of the Amendment Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of any amendment to the Conditional Use Permit. “Original Site” is defined in Recital D. “Property Owners” is defined in Recital I. “Site” means the Original Site, the Suite 130 Site and the Suite 150 Site. “Suite 130 Property Owner” is defined in Recital I. “Suite 130 Site” is defined in Recital E. “Suite 150 Property Owner” is defined in Recital I. “Suite 150 Site” is defined in Recital F. SECTION 3. REVISIONS TO COMMUNITY BENEFIT FEE Section 4.2 of the Development Agreement entitled Community Benefit Fee is hereby amended to add the following subpart c: c. Increase in Floor Area. The approved Floor Area of the Project has been increased by the addition of the Suite 130 Site and the Suite 150 Site to the Project as provided in the First Amendment. Upon the issuance of a modified or new Cannabis Business Permit for the Suite 130 Site and the Suite 150 Site (the “Amendment Commencement Date”), Developer shall be obligated to pay the Community Benefits Fee based on the rate then DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC -5- in effect multiplied by the sum of the square footage of the Suite 130 Site and the Suite 150 Site, such sum due to be adjusted pro rata for the remainder of the year until the next Adjustment Date. Upon the Adjustment Date following the Amendment Commencement Date, Developer shall make payment to the City pursuant to Section 4 utilizing the Floor Area of the Site and the then applicable “per square foot” Community Benefit Fee in effect on the Adjustment Date and all adjustments thereafter. (For example and for illustration purposes only, if Developer’s Community Benefits Fee is $18 per square foot of Floor Area as of the Amendment Commencement Date and Suite 130 and Suite 150 add 3,300 square feet to the Project [and the time between the Amendment Commencement Date and next Adjustment Date is 180 days], Developer would pay an additional Community Benefit Fee of $29,700 on the Amendment Commencement Date [$18 x 3,300 s.f. x 180/360]. Upon the next Adjustment Date following the Amendment Commencement Date, the Community Benefit Fee for that year would be $90,792[$18.72 (adjusted for 4% increase) x 4,850 s.f.].) SECTION 4. ADDITIONAL PROVISIONS 4.1. Counterparts. This First Amendment may be executed in counterparts, each of which so executed shall be deemed an original, and such counterparts together shall constitute but one First Amendment. 4.2. No Other Changes. Except as modified by this First Amendment, the terms and conditions of the Original Development Agreement, remain in full force and effect and shall be incorporated as a part of and interpreted as one integrated agreement covering the subjects included therein. If there are any conflicts between the provisions of this First Amendment and the original Development Agreement, the provisions of this First Amendment shall control. 4.3. Recordation by City Clerk. Pursuant to Government Code Section 65868.5, within ten (10) days of execution of this First Amendment by the Parties, the City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to Government Code Section 65868.5, the burdens of the First Amendment shall be binding upon, and the benefits of the agreement shall inure to, all successors in interest to the Parties to the First Amendment. [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the dates set forth below. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC -6- “CITY” CITY OF LAKE ELSINORE, a municipal corporation Date: By: Mayor ATTEST: By: Candice Alvarez, MMC, City Clerk APPROVED AS TO FORM: “DEVELOPER” IE LICENSING LLC, a California limited liability company Date: By: David Hargett, Manager DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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) DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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) 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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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. ________________________________ Signature of Notary (Affix seal here) DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC Exhibit A – Page 1 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: Original Site A CONDOMINIUMS COMPRISING INTEREST IN UNIT C-4, AS SHOWN ON THE CONDOMINIUM PLAN (“PLAN”) RECORDED ON AUGUST 5, 2003, AS INSTRUMENT NUMBER 2003-592580 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND THE AMENDMENT TO BLUE LAKE INDUSTRIAL CONDOMINIUM PLAN RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423403 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE “PLAN”) AND AS FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003, AS INSTRUMENT NUMBER 2003-592581 IN THE RIVERSIDE COUNTY OFFICE RECORDS AND AS AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423404 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE “DECLARATION”). EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE DECLARATION. FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON THE PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT CONVEYED ABOVE AND THE ASSOCIATION COMMON AREA OR COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN. [APN 370-031-018] [CONTINUED ON NEXT PAGE] DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC Exhibit A – Page 2 Suite 130 Site A CONDOMINIUM COMPRISING INTEREST IN UNIT C-3, AS SHOWN ON THE CONDOMINIUM PLAN (“PLAN”) RECORDED ON AUGUST 5, 2003, AS INSTRUMENT NUMBER 2003-592580 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND THE AMENDMENT TO BLUE LAKE INDUSTRIAL CONDOMINIUM PLAN RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423403 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE “PLAN”) AND AS FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003, AS INSTRUMENT NUMBER 2003-592581 IN THE RIVERSIDE COUNTY OFFICE RECORDS AND AS AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423404 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE “DECLARATION”). EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE DECLARATION. FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON THE PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT CONVEYED ABOVE AND THE ASSOCIATION COMMON AREA OR COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN. [APN 370-031-017] [CONTINUED ON NEXT PAGE] Suite 150 Site DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC Exhibit A – Page 3 A CONDOMINIUM COMPRISING INTEREST IN UNIT C-3, AS SHOWN ON THE CONDOMINIUM PLAN (“PLAN”) RECORDED ON AUGUST 5, 2003, AS INSTRUMENT NUMBER 2003-592580 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND THE AMENDMENT TO BLUE LAKE INDUSTRIAL CONDOMINIUM PLAN RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423403 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE “PLAN”) AND AS FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003, AS INSTRUMENT NUMBER 2003-592581 IN THE RIVERSIDE COUNTY OFFICE RECORDS AND AS AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423404 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE “DECLARATION”). EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE DECLARATION. FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON THE PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT CONVEYED ABOVE AND THE ASSOCIATION COMMON AREA OR COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN. [APN 370-031-019] DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC EXHIBIT B REVISED SITE PLAN [TO BE INSERTED] DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC Exhibit B – Page 1 EXHIBIT C REVISED FLOOR PLAN The Revised 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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC Exhibit C – Page 1 DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC Exhibit D – Page 1 EXHIBIT D PROPERTY OWNERS CONSENT [ATTACHED] DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 2 PROPERTY OWNER CONSENT James W. Pruitt, Trustee of the James W. Pruitt Intervivos Trust dated December 12, 1988, being the owner of certain real property described in Exhibit A (further identified as the “Original Site” andAPN 370-031-018) to this First Amendment to Development Agreement, dated for identification only as of March 1, 2020, by and between the City of Lake Elsinore and IE Licensing LLC (the “First Amendment”), does hereby consent to the recordation of said First Amendment in the Official Records of the County of Riverside. JAMES W. PRUITT INTERVIVOS TRUST DATED DECEMBER 12, 1988 Date: By: James W. Pruitt, Trustee [notary required] DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 3 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 DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 4 (Affix seal here) PROPERTY OWNER CONSENT IE Real Estate Holding, LLC, a California limited liability company, being the owner of certain real property described in Exhibit A (further identified as the “Suite 130 Site” and APN 370-031- 017) to this First Amendment to Development Agreement, dated for identification only as of March 1, 2020, by and between the City of Lake Elsinore and IE Licensing LLC (the “First Amendment”), does hereby consent to the recordation of said First Amendment in the Official Records of the County of Riverside. IE REAL ESTATE HOLDING, LLC, a California limited liability company Date: By: Name: Its: DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 5 [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. DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 6 ________________________________ Signature of Notary (Affix seal here) PROPERTY OWNER CONSENT Richard M. Franzo and Kara D. Franzo, Trustees of the Make Good Decisions Trust dated March 8, 2019, being the owner of certain real property described in Exhibit A (further identified as the “Suite 150 Site” and APN 370-031-019) to this First Amendment to Development Agreement, dated for identification only as of March 1, 2020, by and between the City of Lake Elsinore and IE Licensing LLC (the “First Amendment”), does hereby consent to the recordation of said First Amendment in the Official Records of the County of Riverside. MAKE GOOD DECISIONS TRUST DATED MARCH 8, 2019 DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 7 Date: By: Richard M. Franzo, Trustee Date: By: Kara D. Franzo, Trustee [notary required] STATE OF CALIFORNIA ) ) § County of ) On , before me, a DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 8 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 DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 9 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. ________________________________ DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC 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 D – Page 10 Signature of Notary (Affix seal here) DocuSign Envelope ID: 9462E3A5-77C7-4C06-8420-D264DCBE30CC