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Item No. 01 Cannabis Facilities within the Business District of the General Plan
Page 1 of 8 REPORT TO PLANNING COMMISSION To:Honorable Chairman and Members of the Planning Commission From:Justin Kirk, Assistant Community Development Director Date:November 20, 2018 Subject: Cannabis Facilities within the Business District of the General Plan – A request to establish five (5) Cannabis related land use facilities within the Business District of the General Plan. Applicants:Kim Cousins (PA 2018-34)/Bill Disegna(PA 2018-38)/Joseph Martin(PA 2018- 39)/Travis Campbell(PA 2018-41)/Tommy Tran(PA 2018-45) Recommendation By motion, adopt: 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 DEVELOPMENT AGREEMENT NO. 2018-02 FOR AN APPROXIMATELY 6,141 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 504 CENTRAL AVENUE (APN: 377-420-002); and, 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 CONDITIONAL USE PERMIT NO. 2018-06 TO ESTABLISH A 6,141 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 504 CENTRAL AVENUE (APN: 377-420-002); and, 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 DEVELOPMENT AGREEMENT NO. 2018-06 FOR AN APPROXIMATELY 20,891 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 480 THIRD STREET (APN: 377-140-027); and, 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 CONDITIONAL USE PERMIT NO. 2018-10 TO ESTABLISH A 20,891 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 480 THIRD STREET (APN: 377-140-027); and, 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 DEVELOPMENT AGREEMENT NO. 2018-07 FOR AN Cannabis Facilities – Business District 11/20/2018 Page 2 of 8 APPROXIMATELY 8,500 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 311 MINTHORN STREET (APN: 370-220-003, 019, AND 021); and, 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 CONDITIONAL USE PERMIT NO. 2018-11 TO ESTABLISH A 8,500 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 311 MINTHORN STREET (APN: 370-220-003, 019, AND 021); and, 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 DEVELOPMENT AGREEMENT NO. 2018-09 FOR AN APPROXIMATELY 5,521 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 510 CRANE STREET (APN: 377-430-028); and, 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 CONDITIONAL USE PERMIT NO. 2018-13 TO ESTABLISH A 5,521 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 510 CRANE STREET (APN: 377-430-028); and, 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 DEVELOPMENT AGREEMENT NO. 2018-12 FOR AN APPROXIMATELY 10,723 SQUARE FOOT CANNABIS FACILITY WITHIN THREE EXISTING BUILDINGS LOCATED AT 571 CRANE AVENUE (APNS: 377-410-020, 031, AND 034); and, 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 CONDITIONAL USE PERMIT NO. 2018-16 TO ESTABLISH A 10,723 SQUARE FOOT CANNABIS FACILITY WITHIN THREE EXISTING BUILDINGS LOCATED AT 571 CRANE AVENUE (APNS: 377-410-020, 031, AND 034). Discussion Overview The Business District is located within the central area of the City and is generally bordered by the North Central Sphere District to the northeast, the Lake Elsinore Hills District to the east, the Historic Downtown District to the south, Country Club Heights District to the west, and the Alberhill District to the northwest. The developed area within the Business District is relatively new and has the strongest concentration of industrial and commercial uses within the City. The focus of the Business District is to support its position as the industrial and commercial hub of the City. The Business District contains approximately 1,322.7 acres, which primarily consist of industrial and commercial uses. Existing industrial and commercial uses include the Lake Elsinore Outlet Center, Home Depot, Target, Costco, industrial parks, and limited manufacturing sites. Most of the industrial uses are concentrated in the southern areas of the Business District southwest of I- 15 and south of the Business District’s main northwest/southeast roadway, Collier Avenue. Commercial uses are easily accessible from I-15 at the intersection of Central Avenue and I-15. Cannabis Facilities – Business District 11/20/2018 Page 3 of 8 In the Business district, eight (8) Cannabis Facilities are currently under consideration, with five (5) totaling approximately 52,000 square feet being considered and discussed at this time. The balance of the applications will be further vetted and will progress to hearing at a later date. Table 1 details the locations and sizes of the proposed cannabis facilities. Detailed project description are on file with the Planning Division and are available for review upon request. Description/Locations of Projects Planning Application 2018-34 (Green Origins LE): A request by Kim Cousins to establish a 6,141 SF Cannabis Facility within an existing building located. The facility will consist of a 497 SF of office space, a 1,264 SF dispensary, and 3,856 SF of cultivation and ancillary uses. This project is generally located at the southwest corner of the intersection Crane and Pasadena and more specifically referred to as 504 Central Avenue (APN: 377-420-002). Planning Application 2018-38 (THT Group, LLC): A request by Bill Disegna to establish a 20,891 SF Cannabis Facility within an existing two-story building located. The facility will consist of approximately 2,234 SF dispensary area, 16,842 SF of cultivation and ancillary use space, 907 SF of distribution space, and 885 SF of manufacturing space. This projectis generally located at the southwest corner of the intersection 3rd and Pasadena and more specifically referred to as 480 Third St. (APN: 377-140-027). Planning Application 2018-39 (Lake Elsinore Investment Corporation): A request by Joseph Martin to establish an 8,500 SF Cannabis Facility within an existing building located. The facility will consist of approximately 2,125 SF dispensary space, and 6,375 SF of manufacturing and ancillary use space. This projectis generally located at the northwest corner of the intersection Minthorn and Collier and more specifically referred to as 311 Minthorn (APN: 370-220-003, 019, and 021). Planning Application 2018-41 (Trustin Solutions): A request by Travis Campbell to establish a 5,521 SF Cannabis Facility within an existing building located. The facility will consist of 1,586 SF of distribution space, a 728 SF dispensary, and 3,207 SF of cultivation and ancillary uses. This projectis generally located at the southeast corner of the intersection Crane and Pasadena and more specifically referred to as 510 Crane Street (APN: 370-430-288). Planning Application 2018-45 (The Highest Craft): A request by Tommy Tran to establish a 10,723 SF Cannabis Facility within three existing buildings. The facility will consist of a 7,566 SF of cultivation space, a 1,103 SF dispensary, and 2,054 SF of manufacturing and ancillary use space. This projectis generally located at the northwest corner of the intersection Crane and Collier and more specifically referred to as 571 Crane Avenue (APN: 377-410-020, 031, and 034). Project Location Size (SF) PA 2018-34 504 Central Avenue (APN: 377-420-002)6,141 PA 2018-38 480 THIRD STREET (APN: 377-140-027)20,981 PA 2018-39 311 MINTHORN STREET (APN 370-220-003, 019, AND 021)8,500 PA 2018-41 510 CRANE AVENUE (APN: 377-430-028)5,521 PA 2018-45 571 CRANE AVENUE (APNS: 377-410-020, 031, AND 034)10,723 51,866Total Building Area Table 1 Cannabis Facilities – Business District 11/20/2018 Page 4 of 8 Analysis General Plan Consistency The Project sites have a General Plan land use designation of Limited Industrial (LI) and are located within the Business District of the General Plan. Land uses have been allocated to support the Business District as the City’s main employment and shopping hub. Most of the vacant/open space areas and existing retail uses in the north have been designated for limited industrial uses with the exception of the Temescal Wash floodway which is designated as natural open space. Remaining limited industrial uses are designated in the southwestern sections of the Business District. General commercial uses are designated in the central areas along and near Central Avenue. The Business District professional uses are limited to the south area within existing vacant/open space areas adjacent to the western sides of I-15 along Collier Avenue. In addition, the southwestern most section of the Business District has been designated as public/institutional to support the City’s existing waste water treatment plant. Specific Goals of the Business District applicable to this project include: The primary goal of the Business District is to encourage its position as the industrial and commercial hub of the City and to ensure that new growth respects the environmental sensitivity of the natural wetlands, floodway and floodplain. Support a vibrant commercial and industrial hub with high quality developments that have a strong orientation towards major corridors. Provide a safe and comprehensive roadway network for vehicular, truck, bicycle, and pedestrian traffic throughout 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 proposed Cannabis Facilities are a hybrid of manufacturing, cultivation and retail commercial uses (i.e. dispensaries and distribution facilities). These uses are compatible with existing uses within the LI designation such as Ceramic products manufacture using only previously pulverized clay, and kilns fired by electricity or gas, manufacturing, assembling, compounding, packaging, and processing of cosmetics, drugs, and pharmaceuticals, wholesale distribution facilities, and animal, food, or beverage processing. The retail components of these facilities are limited to accessory uses, which comprise less than 25% of the total area of the facility and less than 50% of gross revenue. This limitation is intended to engender consistency with the intent of the LI designation and to reduce related impacts to the existing surrounding land uses. The proposed facilities are wholly located within existing buildings and do not propose or are allowed to have exterior operations. The proposed cannabis facilities help to further the goals of the Business district by reinforcing the viability of the industrial hubs and help to create vibrant industrial hubs by introducing additional business in existing developments that would create high paying jobs, reduced vacancy rates, and increased investment in the existing industrial parks. One of the primary concerns of any intensification of land uses within the Business District has been that of increased traffic loads. The roadway network throughout the Business District is comprised of several citywide major corridors and small local roadways providing access to internal business areas. I-15 is the City’s and the Business District’s largest roadway. The I-15 passes through the Business District in a northwest/southeast direction. Collier Avenue also Cannabis Facilities – Business District 11/20/2018 Page 5 of 8 serves as an important north/south circulation route providing access roughly parallel to I-15 between Nichols Road to the north, Central Avenue in the central areas, and Main Street in the Historic Downtown District to the south. Direct access to I-15 is possible from Central Avenue and Nichols Road. State Route 74 is the City’s and the Business District’s largest east/west corridor and includes sections of Riverside Drive, Central Avenue, and Collier Avenue as it passes through the Business District in a generally east/west direction. Many of the smaller roadways are not through routes and terminate in various business park centers. The major corridors currently carry large traffic volumes, and efficient traffic flow is often restricted. In order to ensure that the traffic related impacts are minimized, focused traffic studies have been prepared. The individual facilities have increased traffic impacts as follows: The City’s adopted Traffic Impact Analysis guidelines assert that Level 1 projects (100-200 peak hour trips) in areas where a comprehensive traffic analysis have been performed and road improvement infrastructure funding mechanisms are in place are exempt from further review. Development of the existing buildings were subject to the California Environmental Quality Act and have had corollary environmental analysis, inclusive of a comprehensive traffic impact analysis previously prepared and approved and are exempt from further traffic impact related studies. Furthermore, the City’s Transportation Infrastructure Fee (TIF) has been established to further reduce traffic related impacts by funding traffic related improvements and the individual projects are required to pay applicable fees inclusive of TIF. Because the individual projects and the cumulative projects do not create peak trip generation in excess of 200 trips, there have been comprehensive traffic analysis prepared previously and there is a funding mechanism to traffic improvements, the subject projects are exempt from the requirements of the preparation project specific traffic impact analysis, no further traffic related analysis are required. In addition, either individually or cumulatively, the proposed projects do not create new trips that would create unmitigated significant impacts to the existing road network. To ensure that these impacts are not created in the future, adequate safeguards in the form of Conditions of Approval have been imposed. Overall, the proposed cannabis facilities introduce new land uses to an existing mix of industrial and qusai-commercial uses. The proposed facilities have been previously identified as furthering the goals of the Business District and not creating new unmitigated significant impacts, because of this they are found to be consistent with the General Plan. Municipal Code Consistency PA 2018-34 and PA 2018-38 have a base zoning designation of M-2 General Manufacturing and PA 2018-39, PA 2018-41 and PA 2018-45 have a base zoning designation M-1 Limited Manufacturing District. The proposed cannabis facilities are located wholly within existing industrial parks, which have been previously analyzed for consistency with the base district development standards and other criteria and were found to be consistent with the applicable Project AM PM Daily PA 2018-34 18 24 405 PA 2018-37 6 20 403 PA 2018-39 6 20 403 PA 2018-41 8 16 175 PA 2018-45 16 22 192 Total 54 102 1578 Cannabis Facilities – Business District 11/20/2018 Page 6 of 8 base zoning designations. A review of the current operational characteristics did not find any code violations and the building are in compliance with the base district regulations as well. With respect to Cannabis related land uses, Chapter 17.156 Cannabis Uses, of the Lake Elsinore Municipal Code, specifically regulate these uses. Chapter 17.156 asserts specific operational requirements including the following: Site Security Limitation to indoor locations only Restricted access, including specific spaces accessible to the public and those spaces restricted Signage Proximity to schools and religious institutions Prohibition on the consumption of cannabis onsite Prohibition on the possession, sales and consumption of alcoholic beverages Prohibition of juveniles to be onsite or work in a cannabis facility Hours of Operation – 7:00 am to 9:00 pm Annual financial reporting Compliance with Building, Fire Code and other permitting requirements. Limitation on certain equipment, methods, solvents, gases and mediums when creating cannabis extracts. o Manufacturing facilities with a state license of a Type 6 (nonvolatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter. o Manufacturers shall not use any Class I or Class II solvents, as those terms are defined in Federal Drug Administration Guidance, Table I, published in the Federal Register on December 24, 1997 (62 FR 67377), for extraction. o Manufacturers shall use butanes, ethanol, carbon dioxide, propane, heptane or other solvents exhibiting low to minimal potential human health-related toxicity for extraction, or other methods approved by the State of California o Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods of extraction without employing solvents or gases to create kief, hashish, bubble hash, or vegetable oils or fats derived from natural sources, and other extracts. Specific requirements on the supervision of the design, installation and operation of the facility’s systems and manufacturing processes Compliance with state regulations The proposed cannabis facilities have been analyzed for the consistency with these operational requirements and the proposed facilities have been found to meet these requirements. In addition to the aforementioned code requirements, additional detail information were 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. Cannabis Facilities – Business District 11/20/2018 Page 7 of 8 These additional details were required to ensure that the proposed facilities 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 facilities would operate in a manner that would not adversely impact the adjacent business in operation. Because the proposed cannabis facilities meet the minimum code requirements and do not propose any adverse impacts on adjacent businesses, they have been found consistent with the Municipal Code. Implementation The proposed cannabis facilities are currently in the first phase of the establishment of the use. This first phase will culminate in an action on the appropriateness of the proposed land use and the corollary environmental review. The next phase will involve the plan checking, permitting and inspection of the perspective cannabis land uses. Specifically, during the plan check process the internal tenant improvements will be vetted against the applicable building and fire codes and other state requirements for these facilities. After permit issuance, typical inspections would occur to ensure that compliance with the approved building plans. During the construction-permitting process, the proposed cannabis facilities would be able to proceed with obtaining requisite state licenses that would mirror some of the City process of the cannabis business permit. These mirrored processes would include review of the proposed security plans, fire protection plans, and other operational characteristics. Culmination of these processes would occur with the issuance of certificate of occupancy, which has been conditioned to be dependent on the issuance of a State license and a City cannabis business permit. Once operational, the proposed cannabis facilities have been conditioned to have quarterly life safety inspections to ensure the operations are in compliance with the relevant permits and that they are operating in a safe manner. Furthermore, an annual inspection with the potential responding fire crews will help to facilitate a safer emergency response by ensuring those responding have inspected the facility and have a familiarity with the operation. The proposed cannabis facilities have also been required to retain specific financial information, changes in owners and/or operators and an inventory control system to ensure that there is a transparency in the operation. Summary The proposed cannabis facilities have been vetted against all applicable standards and have been found consistent with those standards. The Design Review Committee have reviewed the requested Conditional Use Permit application, and support the proposed projects. Appropriate Conditions of Approval have been included 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 projects are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1: Existing Facilities). Class 1 consists of the operation, repair, Cannabis Facilities – Business District 11/20/2018 Page 8 of 8 maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The proposed projects will be located in existing buildings. The site is fully developed and only minor interior alterations are planned in association with the proposed use. Further, the proposed projects have been adequately conditioned to minimize potential adverse environmental impacts and have been required to obtain all applicable regulatory permits. Exhibits A – PA 2018-34 DA Resolution B – PA 2018-34 CUP Resolution C – PA 2018-34 Conditions of Approval D – PA 2018-38 DA Resolution E – PA 2018-38 CUP Resolution F – PA 2018-38 Conditions of Approval G – PA 2018-39 DA Resolution H – PA 2018-39 CUP Resolution I – PA 2018-39 Conditions of Approval J – PA 2018-41 DA Resolution K – PA 2018-41 CUP Resolution L – PA 2018-41 Conditions of Approval M – PA 2018-45 DA Resolution N – PA 2018-45 CUP Resolution O – PA 2018-45 Conditions of Approval P – Vicinity Map Q – Aerial Map R – PA 2018-34 Project Plans S – PA 2018-38 Project Plans T – PA 2018-39 Project Plans U – PA 2018-40 Project Plans V – PA 2018-41 Project Plans RESOLUTION NO. 2018- 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 DEVELOPMENT AGREEMENT NO. 2018-02 FOR AN APPROXIMATELY 6,141 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 504 CENTRAL AVENUE (APN: 377-420-002) Whereas, Kim Cousins, Green Origins LE has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-34 (Development Agreement No. 2018-02 (Exhibit A) and Conditional Use Permit No. 2018-06) to establish an approximately 6,141 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of a 497 SF of office space, a 1,264 SF dispensary, and 3,856 SF of cultivation and ancillary uses. The Project is generally located at the southwest corner of the intersection Crane and Pasadena and more specifically referred to as 504 Central Avenue (APN: 377-420-002); 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 November 20, 2018, 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. 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. PC Reso. No. 2018-____ Page 2 of 5 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 Development Agreement No. 2018-02: 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 General Manufacturing (M-2) 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-2 Zoning designation. 3. It is in conformity with public convenience, general welfare and good land use practices. 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. PC Reso. No. 2018-____ Page 3 of 5 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. 2018-02. Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20th day of November, 2018. Myles Ross, Chairman Attest: ___________________________________ Justin Kirk, Assistant Community Development Director STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) PC Reso. No. 2018-____ Page 4 of 5 I, Justin Kirk, Assistant Community Development Director of the City of Lake Elsinore, California, hereby certify that Resolution No. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on the 20th day of November, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director PC Reso. No. 2018-____ Page 5 of 5 Exhibit A Development Agmt - GOLE Industries 111218.docx 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 GOLE INDUSTRIES LLC -1- DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND GOLE INDUSTRIES LLC This Development Agreement (“Agreement”), dated for identification only as of December 1, 2018, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and GOLE Industries 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 504 Central Avenue in the City of Lake Elsinore, County of Riverside, State of California, Assessor's Parcel Number 377-420-002, 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, the Site Plan is attached hereto as Exhibit B, and the Floor Plan is attached hereto as Exhibit C. N. Developer affirms that it has an equitable interest in the Site, evidenced in writing with the owner of the Site and Developer’s affiliate, GOLE Investments LLC (the “Property Owner”), for the purpose of carrying out the Project. O. Developer further affirms that Property Owner (and Developer’s affiliate) has consented to the terms of this Agreement and recordation thereof. -3- 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 November 20, 2018, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider Owner’s application for this Agreement and recommended to the City Council approval of this Agreement. U. On December 11, 2018, 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. ____ (the “Enabling Ordinance”). On __________ __, 201__, 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. -4- 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 Exhibit C Floor Plan 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. -5- “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 a conditional use permit issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to LEMC, Chapter 17.168. In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit. “CUA” has the meaning as set forth in the Recitals, above. -6- “Developer” means GOLE Industries LLC, a California limited liability company. “Development Agreement Ordinance” has the meaning as set forth in the Recitals, above. “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. -7- “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. “Property Owner” means GOLE Investments 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 temporary 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 responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency 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 have delivered 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 License 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. This Agreement shall terminate upon the occurrence of any of the following events: -8- a. the expiration of the Term; b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for a period of one year or more; d. mutual written consent of the Parties; e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.080 including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit; f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.110; g. following the Term Commencement Date, the failure to have a valid Cannabis Business Permit for the Project; h. following the Term Commencement Date, the failure to have a valid Developer’s State Cannabis Permit for the Project; or i. 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, 9.4, and 9.6 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. 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 Developer Property 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, -9- 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 Benefits 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 the Agreement, the Conditional Use Permit, Additional City Approvals if any, the Cannabis Business Permit, the City’s Development Regulations. 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 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). -10- 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 of the City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 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 -11- 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 Ci ty in its discretion, to address such emergency in a wa y t hat 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 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. -12- 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 $18.00 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 $109,800 [$18.00 x 6,100 square feet of Floor Area] upon the initial issuance of a Cannabis Business Permit on March 15, 2019, the Community Benefits Fee due on the First Adjustment Date, that is, March 15, 2020, is the product of $109,800 times 1.04, in which case the Community Benefits Fee payable on the First Adjustment Date would be $114,192). 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 -13- 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 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 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. -14- 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. 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 of law or any other method of interest change or transfer, unless the City Manager has authorized such change or transfer in advance, in writing. -15- 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 Ordinance), any such default must be cured by the payment of the amount 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; 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 such thirty (30) day period; and d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default. 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. -16- 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 persons, 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. 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: GOLE Industries LLC 504 Central Avenue Lake Elsinore, CA 92530 Attn: Stan Gonzalez -17- 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 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. -18- 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 constitute 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. 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] -19- 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: Susan M. Domen, MMC, City Clerk “DEVELOPER” GOLE INDUSTRIES LLC, a California limited liability company Date: By: Stan Gonzales Manager 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: PARCEL 2 OF PARCEL MAP 30395, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 213, PAGES 82 AND 83, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. [APN 377-420-002] EXHIBIT B SITE PLAN [On Following Page] EXITEXITEXIT EXIT EXIT EXIT-- A202 A202 - - 2 1 4 4 5 5 2 2 1 1 AA B B C C TRUENSEWNSE-99 PROPOSED SIGN LOCATION - --- - --- - - A411 4 1 3 2 SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 1/8" = 1'-0"S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\04 CD\Lake Elsinore - CD.rvt10/14/2018 3:03:41 PM A092 PROPOSED SITE PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 Rev Description Date EXHIBIT C FLOOR PLAN [On Following Page] SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\04 CD\Lake Elsinore - CD.rvt10/14/2018 3:05:30 PM A101 EXISTING FLOOR PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 THIS PLAN CREATED BY OTHERS AND INCLUDED FOR REFERENCE. NO LIABILITY IS ASSUMED FOR THE ACCUARCY OF THESE DRAWINGS. Rev Description Date RESOLUTION NO. 2018- 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 CONDITIONAL USE PERMIT NO. 2018-06 TO ESTABLISH A 6,141 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 504 CENTRAL AVENUE (APN: 377-420-002) Whereas, Kim Cousins, Green Origins LE has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-34 (Development Agreement No. 2018-02 and Conditional Use Permit No. 2018-06) to establish an approximately 6,141 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of a 497 SF of office space, a 1,264 SF dispensary, and 3,856 SF of cultivation and ancillary uses. The Project is generally located at the southwest corner of the intersection Crane and Pasadena and more specifically referred to as 504 Central Avenue (APN: 377-420-002); 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, Chapter 17.168 of the Lake Elsinore Municipal Code (LEMC) provides that certain uses have operational characteristics that, depending on the location and design of the use, may have the potential to negatively impact adjoining properties, businesses or residents and therefore are permitted subject to the issuance of a Conditional Use Permit, which allows the City to comprehensively review and approve the use; and, Whereas,pursuant to Chapter 17.168 (Conditional Use Permits) of the LEMC, the Planning Commission (Commission) has been delegated with the responsibility of making recommendations to the Council pertaining to conditional use permits; and, Whereas,on November 20, 2018, 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: The Commission has considered the Project prior to making a recommendation to the Council and has found it acceptable. Section 2:That in accordance with the MSHCP, the Commission makes the following findings for MSHCP consistency: PC Reso. No. 2018-____ Page 2 of 4 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 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 4: That in accordance with California Planning and Zoning Law and the LEMC Section 17.168.060 (Findings), the Commission makes the following findings regarding the Project: 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 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. PC Reso. No. 2018-____ Page 3 of 4 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 17.168.040 of the LEMC, the Project was considered by the Commission at a duly noticed Public Hearing on November 20, 2018, 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 Commission hereby recommends that the Council find 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 Commission hereby recommends that the Council approve Planning Application No. 2018-34 (Conditional Use Permit No. 2018-06). Section 7: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20 th day of November, 2018. Myles Ross, Chairman PC Reso. No. 2018-____ Page 4 of 4 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. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on November 20, 2018 and that the same was adopted by the following vote: AYES NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director Applicant’s Initials: _____ Page 1 of 12 CONDITIONS OF APPROVAL RESOLUTION:2018-XX & 2018-XX PROJECT: PA 2018-34/DA 2018-02/CUP 2018-06 PROJECT NAME:Green Origins LE PROJECT LOCATION:APN: 377-420-002 APPROVAL DATE: EFFECTIVE DATE: EXPIRATION DATE: General Conditions 1.Planning Application No. 2018-34 (Development Agreement No. 2018-02 and Conditional Use Permit No. 2018-06) proposes to establish an approximately 6,141 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of a 497 SF of office space, a 1,264 SF dispensary, and 3,856 SF of cultivation and ancillary uses. The Project is generally located at the southwest corner of the intersection Crane and Pasadena and more specifically referred to as 504 Central Avenue (APN: 377-420-002). 2.Conditional Use Permit No. 2018-06 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 2018-06 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 2018-06 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. 2018-06 shall lapse and become void two years following the 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 PA 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 2 of 12 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 design review approval pursuant to subsections (B) and (C) of LEMC Section 17.168.080. Subject to the provisions of LEMC Section 17.168.110, 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. 9.The applicant shall pay all applicable City fees, including but not limited to: Development Impact Fees (DIF), Fire Facilities Fees, and Traffic Infrastructure Fees (TIF) per LEMC Section 16.74, Transportation Uniform Mitigation Fees (TUMF) per LEMC Section 16.83, Area Drainage Fees per LEMC Section 16.72, MSHCP Fee per LEMC Section 16.85, Capital Improvement Impact/Mitigation Fees, Stephens Kangaroo Habitat Fee (K-Rat) per LEMC Section 19.04, and Plan Check fees, at the rate in effect at the time of payment. Operational Standards 10.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. 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2016 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 Public 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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 comply 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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 through out 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 PA 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 9 of 12 cannabis facility is prohibited. 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 PA 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 10 of 12 otherwise stipulated by the City. 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: 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code, and 2016 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 2016 California Building Code. 54.The conditions of approval and ordinance or code provisions of planning application PA-18- 06 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 2016 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 PA 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 11 of 12 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 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 2018-34/DA 2018-02/CUP 2018-06 PC: November 20, 2018 Conditions of Approval CC: TBD 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: RESOLUTION NO. 2018- 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 DEVELOPMENT AGREEMENT NO. 2018-06 FOR AN APPROXIMATELY 20,891 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 480 THIRD STREET (APN: 377-140-027) Whereas, Bill Disegna, THT Group, LLC has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-38 (Development Agreement No. 2018-06 (Exhibit A) and Conditional Use Permit No. 2018-10) to establish an approximately 20,891 Square Foot (SF) Cannabis Facility within an existing two-story building (Project). The Project will consist of approximately 2,234 SF dispensary area, 16,842 SF of cultivation and ancillary use space, 907 SF of distribution space, and 885 SF of manufacturing space. The Project is generally located at the southwest corner of the intersection 3rd and Pasadena and more specifically referred to as 480 Third St (APN: 377-140-027); 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 November 20, 2018, 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. 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. PC Reso. No. 2018-____ Page 2 of 5 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 Development Agreement No. 2018-06: 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 General Manufacturing (M-2) 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-2 Zoning designation. 3. It is in conformity with public convenience, general welfare and good land use practices. 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. PC Reso. No. 2018-____ Page 3 of 5 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. 2018-06. Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20th day of November, 2018. Myles Ross, Chairman Attest: ___________________________________ Justin Kirk, Assistant Community Development Director STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) PC Reso. No. 2018-____ Page 4 of 5 I, Justin Kirk, Assistant Community Development Director of the City of Lake Elsinore, California, hereby certify that Resolution No. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on the 20th day of November, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director PC Reso. No. 2018-____ Page 5 of 5 Exhibit A Development Agmt - THT Group LLC 111218.docx 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 THT GROUP LLC -1- DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND THT GROUP LLC This Development Agreement (“Agreement”), dated for identification only as of December 1, 2018, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and THT Group 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 480 3rd Street, in the City of Lake Elsinore, County of Riverside, State of California, Assessor’s Parcel Number 377-140-027-1, 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, the Site Plan is attached hereto as Exhibit B, and the Floor Plan is attached hereto as Exhibit C. N. Developer affirms that it has an equitable interest in the Site, evidenced in writing with the owner of the Site, Full Spectrum Bottling LLC (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 D. -3- 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 November 20, 2018, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider Owner’s application for this Agreement and recommended to the City Council approval of this Agreement. U. On December 11, 2018, 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. 2018-__ (the “Enabling Ordinance”). On __________ __, 201__, 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. -4- 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 Exhibit C Floor Plan Exhibit D 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. -5- “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. “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 a conditional use permit issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to LEMC, Chapter 17.168. In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit. -6- “CUA” has the meaning as set forth in the Recitals, above. “Developer” means THT Group LLC, a California limited liability company. “Development Agreement Ordinance” has the meaning as set forth in the Recitals, above. “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. -7- “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. “Property Owner” means Full Spectrum Bottling LLC. “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 temporary 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 responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency 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 have delivered 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 License 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. This Agreement shall terminate upon the occurrence of any of the following events: -8- a. the expiration of the Term; b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for a period of one year or more; d. mutual written consent of the Parties; e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.080 including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit; f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.110; g. following the Term Commencement Date, the failure to have a valid Cannabis Business Permit for the Project; h. following the Term Commencement Date, the failure to have a valid Developer’s State Cannabis Permit for the Project; or i. 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, 9.4, and 9.6 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. 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 Developer Property 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, -9- 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 Benefits 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 the Agreement, the Conditional Use Permit, Additional City Approvals if any, the Cannabis Business Permit, the City’s Development Regulations. 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 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). -10- 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 of the City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 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 -11- 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 Ci ty in its discretion, to address such emergency in a way 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 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. -12- 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 $18.00 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 $109,800 [$18.00 x 6,100 square feet of Floor Area] upon the initial issuance of a Cannabis Business Permit on March 15, 2019, the Community Benefits Fee due on the First Adjustment Date, that is, March 15, 2020, is the product of $109,800 times 1.04, in which case the Community Benefits Fee payable on the First Adjustment Date would be $114,192). 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 -13- 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 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 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. -14- 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. 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 of law or any other method of interest change or transfer, unless the City Manager has authorized such change or transfer in advance, in writing. -15- 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 Ordinance), any such default must be cured by the payment of the amount 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; 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 such thirty (30) day period; and d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default. 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. -16- 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 persons, 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. 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: THT Group LLC 480 3rd Street Lake Elsinore, CA 92530 Attn: Darren Hagen -17- 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 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. -18- 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 constitute 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. 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] -19- 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: Susan M. Domen, MMC, City Clerk “DEVELOPER” THT GROUP LLC, a California limited liability company Date: By: Darren Hagen, Chief Executive Officer 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 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LAKE ELSINORE, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCELS 6 AND 7 OF PARCEL MAP NO. 36551, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 243, PAGES 56, 57, 58 AND 59 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 377-140-027-1 (UNDERLYING) (End of Legal Description) EXHIBIT B SITE PLAN [On Following Page] 4OFROUGH SITEPLANA-1NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS1SHEET DATE :SCALE:OWNER PROJECT 1. DO NOT SCALE DRAWINGS.2. ALL DIMENSIONS ARE FOR BIDDING PURPOSES ONLY.ALL TRADES SHOULD FIELD VERIFY ALL MEASUREMENTS AND BRING ANYDISCREPANCIES TO THE IMMEDIATE ATTENTION OF THE ENGINEER ON RECORD BEFORE THECOMMENCEMENT OF THE JOB.3. GENERAL CONTRACTOR AND ALL TRADES MUST FIELD VERIFY ALL EXISTING CONDITIONS ANDDRAWINGS BEFORE THE COMMENCEMENT OF EVERY PORTION OF THE JOB AND REPORT ANYDISCREPANCIES TO THE IMMEDIATE ATTENTION OF THE ENGINEER ON RECORD.4. DIMENSIONS TAKE PRECEDENCE OVER SCALE.5. ALL WORK SHALL COMPLY WITH THE APPLICABLE GOVERNING CODES AS WELL AS ORDINANCES ANDPOLICIES ADOPTED BY THE CITY AND OR COUNTY/DISTRICT TO WHICH THE JOB BELONGS.6. PLUMBING, ELECTRICAL, MECHANICAL CONTRACTORS MUST SUBMIT ALL NECESSARY DRAWINGS TOTHE BUILDING DEPARTMENT OF FOR APPROVAL PRIOR TO COMMENCEMENT OF THEIR WORK.7. CONTRACTOR IS RESPONSIBLE FOR OBTAINING ALL PERMITS INCLUDING THOSE FOR DESIGN-BUILDSYSTEMS (ELECTRICAL, PLUMBING, ETC,) ALL OF WHICH SHALL COMPLY WITH ALL APPLICABLE CODEREQUIREMENTS.8. GENERAL CONTRACTOR TO COORDINATE WORK BETWEEN ALL TRADES TO FINISH THE JOB SMOOTHLYAND IN TIMELY MANNER.9. CONTRACTOR IS RESPONSIBLE FOR LOCATING ALL EXISTING UTILITIES.10. GENERAL CONTRACTOR IS RESPONSIBLE FOR PRESERVING ALL EXISTING TO REMAIN CONDITIONS ANDUTILITIES FROM DAMAGE AT ALL TIMES DURING CONSTRUCTION.11. CONTRACTOR TO REPAIR ANY DAMAGE TO EXISTING TO REMAIN CONDITIONS AT THEIR OWN COST.12. ALL DRAWINGS AND SPECIFICATIONS ARE INTENDED TO COMPLY WITH ALL GOVERNING CODES, LAWSAND ORDERS AS WELL AS ORDINANCES AND POLICIES ADOPTED BY THE CITY AND OR COUNTY/DISTRICTTO WHICH THE JOB BELONGS.13. ANY ALTERATIONS OR DEVIATIONS FROM THE DRAWINGS SHALL BE SUBMITTED IN WRITING TO THEENGINEER ON RECORD FOR APPROVAL BEFORE THE COMMENCEMENT OF WORK.14. CONTRACTOR TO NOTIFY IN WRITING THE ENGINEER ON RECORD OF ANY UNFORESEEN SIGHTCONDITIONS THAT MIGHT CALL FOR AN ALTERNATE METHOD OF CONSTRUCTION. NO CHANGES TO ORDEVIATION FROM THE DRAWINGS SIGNED BY THE ENGINEER ON RECORD CAN BE MADE WITHOUT THEWRITTEN PERMISSION OF THE ENGINEER ON RECORD.15. CONTRACTOR TO SUBMIT MATERIAL SAMPLES OR ANY MATERIAL SUBSTITUTIONS TO THE ENGINEERON RECORD PRIOR TO INSTALLATION.16. CONTRACTOR TO IMMEDIATELY INFORM THE OWNER OR THE ENGINEER ON RECORD OF ANYDISCOVERED UNFORESEEN FIELD CONDITIONS.17. NEW CONSTRUCTION SHALL NOT COME IN CONTACT WITH OR BEAR ON ANY DAMAGED PRE-EXISTINGFRAMING AND/OR FOUNDATION.18. GENERAL CONTRACTOR IS RESPONSIBLE FOR ALL PHASES AND CONDITONS OF CONSTRUCTION.19. CONTRACTOR IS FULLY RESPONSIBLE TO COMPLY WITH ALL GOVERNING APPLICABLE CODES:2016 CA BUILDING CODE (CBC)2016 CA RESIDENTIAL CODE (CRC)2016 CA MECHANICAL CODE (CMC)2016 CA ELECTRICAL CODE (CEC)2016 CA PLUMBING CODE (CPC)2016 CA GREEN BUILDING STANDARDS (CGBSC)2016 CA ENERGY EFFICIENCY STANDARDS (CEES)20. CONTRACTOR IS FULLY RESPONSIBLE TO COMPLY WITH ALL SAFETY MEASURES DURINGCONSTRUCTION.21. ALL SURFACES EXPOSED TO WEATHER SHALL HAVE WEATHER RESISTIVE BARRIER TO PROTECT THEINTERIOR WALL COVERING. EXTERIOR OPENINGS SHALL BE FLASHED TO MAKE THEM WEATHER PROOF.22. CONTRACTOR SHALL INSTALL FIRE BLOCKS AND DRAFT STOPS WHEREVER NEEDED.23. ATTIC VENTILATION OPENING SHALL BE COVERED WITH CORROSION RESISTANCE METAL MESH.24. CONTRACTOR SHALL KEEP AN AS-BUILD RECORD REFLECTING ALL CHANGES, ALTERATIONS ANDDEVIATION FROM ORIGINAL CONSTRUCTION DOCUMENTS AND RETURN TO THE ENGINEER ON RECORDAFTER THE COMPLETION OF ALL WORKS.GENERAL NOTESVICINITY MAP480 3RD STREET LAKE ELSINORE CA FULL SPECTRUM BOTTLING Llc O/C DARREN HAGEN THT GROUP LLC. EXHIBIT C FLOOR PLAN [On Following Page] EXHIBIT D PROPERTY OWNER CONSENT [On Following Page] RESOLUTION NO. 2018- 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 CONDITIONAL USE PERMIT NO. 2018-10 TO ESTABLISH A 20,891 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 480 THIRD STREET (APN: 377-140-027) Whereas, Bill Disegna, THT Group, LLC has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-38 (Development Agreement No. 2018-06 (Exhibit A) and Conditional Use Permit No. 2018-10) to establish an approximately 20,891 Square Foot (SF) Cannabis Facility within an existing two-story building (Project). The Project will consist of approximately 2,234 SF dispensary area, 16,842 SF of cultivation and ancillary use space, 907 SF of distribution space, and 885 SF of manufacturing space. The Project is generally located at the southwest corner of the intersection 3rd and Pasadena and more specifically referred to as 480 Third St (APN: 377-140-027); 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, Chapter 17.168 of the Lake Elsinore Municipal Code (LEMC) provides that certain uses have operational characteristics that, depending on the location and design of the use, may have the potential to negatively impact adjoining properties, businesses or residents and therefore are permitted subject to the issuance of a Conditional Use Permit, which allows the City to comprehensively review and approve the use; and, Whereas,pursuant to Chapter 17.168 (Conditional Use Permits) of the LEMC, the Planning Commission (Commission) has been delegated with the responsibility of making recommendations to the Council pertaining to conditional use permits; and, Whereas,on November 20, 2018, 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: The Commission has considered the Project prior to making a recommendation to the Council and has found it acceptable. Section 2:That in accordance with the MSHCP, the Commission makes the following findings for MSHCP consistency: PC Reso. No. 2018-____ Page 2 of 4 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 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 4: That in accordance with California Planning and Zoning Law and the LEMC Section 17.168.060 (Findings), the Commission makes the following findings regarding the Project: 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 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. PC Reso. No. 2018-____ Page 3 of 4 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 17.168.040 of the LEMC, the Project was considered by the Commission at a duly noticed Public Hearing on November 20, 2018, 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 Commission hereby recommends that the Council find 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 Commission hereby recommends that the Council approve Planning Application No. 2018-38 (Conditional Use Permit No. 2018-10). Section 7: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20 th day of November, 2018. Myles Ross, Chairman PC Reso. No. 2018-____ Page 4 of 4 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. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on November 20, 2018 and that the same was adopted by the following vote: AYES NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director Applicant’s Initials: _____ Page 1 of 12 CONDITIONS OF APPROVAL RESOLUTION:2018-XX & 2018-XX PROJECT: PA 2018-38/DA 2018-06/CUP 2018-10 PROJECT NAME:THT Group PROJECT LOCATION:APN: 377-140-027 APPROVAL DATE: EFFECTIVE DATE: EXPIRATION DATE: General Conditions 1.Planning Application No. 2018-38 (Development Agreement No. 2018-06 and Conditional Use Permit No. 2018-10) proposes to establish an approximately 20,891 Square Foot (SF) Cannabis Facility within an existing two-story building (Project). The Project will consist of approximately 2,234 SF dispensary area, 16,842 SF of cultivation and ancillary use space, 907 SF of distribution space, and 885 SF of manufacturing space. The Project is generally located at the southwest corner of the intersection 3rd and Pasadena and more specifically referred to as 480 Third St (APN: 377-140-027). 2.Conditional Use Permit No. 2018-10 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 2018-10 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 2018-10 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. 2018-10 shall lapse and become void two years following the date on which the Conditional Use Permit became effective, unless one of the following: (1) PA 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 2 of 12 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 design review approval pursuant to subsections (B) and (C) of LEMC Section 17.168.080. Subject to the provisions of LEMC Section 17.168.110, 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. 9.The applicant shall pay all applicable City fees, including but not limited to: Development Impact Fees (DIF), Fire Facilities Fees, and Traffic Infrastructure Fees (TIF) per LEMC Section 16.74, Transportation Uniform Mitigation Fees (TUMF) per LEMC Section 16.83, Area Drainage Fees per LEMC Section 16.72, MSHCP Fee per LEMC Section 16.85, Capital Improvement Impact/Mitigation Fees, Stephens Kangaroo Habitat Fee (K-Rat) per LEMC Section 19.04, and Plan Check fees, at the rate in effect at the time of payment. Operational Standards 10.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. 11.The applicant shall at all times comply with Chapter 17.176 (Noise Ordinance) of the LEMC. PA 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 3 of 12 Prior to the issuance of a building permit, documentation demonstrating compliance shall 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, PA 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 4 of 12 shall be visible from the exterior of this property, or on any of the vehicles owned or used as 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 2016 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 Public 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 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD 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 comply 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 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD 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 through out 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 PA 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 9 of 12 cannabis facility is prohibited. 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 PA 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 10 of 12 otherwise stipulated by the City. 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: 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code, and 2016 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 2016 California Building Code. 54.The conditions of approval and ordinance or code provisions of planning application PA-18- 06 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 2016 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 PA 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 11 of 12 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 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 2018-38/DA 2018-06/CUP 2018-10 PC: November 20, 2018 Conditions of Approval CC: TBD 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: RESOLUTION NO. 2018- 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 DEVELOPMENT AGREEMENT NO. 2018-07 FOR AN APPROXIMATELY 8,500 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 311 MINTHORN STREET (APN: 370-220-003, 019, AND 021) Whereas, Joseph Martin, Lake Elsinore Investment Corporation has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-39 (Development Agreement No. 2018-07 (Exhibit A) and Conditional Use Permit No. 2018-11) to establish an approximately 8,500 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of approximately 2,125 SF dispensary space, and 6,375 SF of manufacturing and ancillary use space. The Project is generally located at the northwest corner of the intersection Minthorn and Collier and more specifically referred to as 311 Minthorn Street (APN: 370-220-003, 019, and 021); 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 November 20, 2018, 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. 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. PC Reso. No. 2018-____ Page 2 of 5 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 Development Agreement No. 2018-07: 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. 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. PC Reso. No. 2018-____ Page 3 of 5 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. 2018-07. Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20th day of November, 2018. Myles Ross, Chairman Attest: ___________________________________ Justin Kirk, Assistant Community Development Director STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) PC Reso. No. 2018-____ Page 4 of 5 I, Justin Kirk, Assistant Community Development Director of the City of Lake Elsinore, California, hereby certify that Resolution No. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on the 20th day of November, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director PC Reso. No. 2018-____ Page 5 of 5 Exhibit A Development Agmt - LE Community Investment Corp 1112918.docx 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 LAKE ELSINORE COMMUNITY INVESTMENT CORP -1- DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND LAKE ELSINORE COMMUNITY INVESTMENT CORP This Development Agreement (“Agreement”), dated for identification only as of December 1, 2018, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and Lake Elsinore Community Investment Corp, a California corporation (“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, by way of an option to purchase, that certain real property located at 311 W. Minthorn Street in the City of Lake Elsinore, County of Riverside, State of California, Assessor’s Parcel Numbers 377-220-003-6, 377-220-019-1 and 377-220-021-2, 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, the Site Plan is attached hereto as Exhibit B, and the Floor Plan is attached hereto as Exhibit C. N. Developer affirms that it has an equitable interest in the Site, evidenced in writing with the owner of the Site (the “Property Owner”), for the purpose of carrying out the Project. O. The Property Owner has provided a notarized affidavit evidencing its intent to convey the Site to Developer, attached hereto as Exhibit D. -3- 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 November 20, 2018, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider Owner’s application for this Agreement and recommended to the City Council approval of this Agreement. U. On December 11, 2018, 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. 2018- ___ (the “Enabling Ordinance”). On ____________ __, 2018, 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. -4- 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 Exhibit C Floor Plan Exhibit D 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. -5- “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. “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 a conditional use permit issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to LEMC, Chapter 17.168. In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit. -6- “CUA” has the meaning as set forth in the Recitals, above. “Developer” means Elsinore Community Investment Corp, a California corporation. “Development Agreement Ordinance” has the meaning as set forth in the Recitals, above. “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. -7- “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. “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 temporary 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 responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency 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 have delivered 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 License 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. This Agreement shall terminate upon the occurrence of any of the following events: a. the expiration of the Term; -8- b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for a period of one year or more; d. mutual written consent of the Parties; e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.080 including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit; f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.110; g. following the Term Commencement Date, the failure to have a valid Cannabis Business Permit for the Project; h. following the Term Commencement Date, the failure to have a valid Developer’s State Cannabis Permit for the Project; or i. 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, 9.4, and 9.6 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. 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 Developer Property 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 -9- 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 Benefits 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 the Agreement, the Conditional Use Permit, Additional City Approvals if any, the Cannabis Business Permit, the City’s Development Regulations. 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 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. -10- 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 of the City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 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 -11- 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 Ci ty in its discretion, to address such emergency in a way 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 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. -12- 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 $18.00 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 anniversar y 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 $109,800 [$18.00 x 6,100 square feet of Floor Area] upon the initial issuance of a Cannabis Business Permit on March 15, 2019, the Community Benefits Fee due on the First Adjustment Date, that is, March 15, 2020, is the product of $109,800 times 1.04, in which case the Community Benefits Fee payable on the First Adjustment Date would be $114,192). 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, -13- 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 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 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 -14- 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. 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 of 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 -15- 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 Part y 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 Ordinance), any such default must be cured by the payment of the amount 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; 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 such thirty (30) day period; and d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default. 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 -16- 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 persons, 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. 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: Lake Elsinore Community Investment Corp 311 W. Minthorn Street Lake Elsinore, CA 92530 Attn: Joseph Martin 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. -17- 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 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. -18- 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 constitute 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. 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] -19- 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: Susan M. Domen, MMC, City Clerk “DEVELOPER” LAKE ELSINORE COMMUNITY INVESTMENT CORP, a California corporation Date: By: Joseph Martin, Chief Executive Officer Date: By: Patrick Martin, Chief Operating Officer 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 LEGAL DESCRIPTION [On Following Pages] Exhibit A LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of Riverside, City of Lake Elsinore and described as follows: PARCEL 1: THAT PORTION OF LOT 2 AND 3, BLOCK 3 OF WALL AND STARBIRD’S RESUBDIVISION, AS PER MAP ON FILE IN BOOK 10, PAGE(S) 492 RECORDS OF SAN DIEGO COUNTY, LYING SOUTHWESTERLY OF THE SOUTHWESTERLY BOUNDARY OF THE COUNTY HIGHWAY ROUTE 11, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. APN; 377-220-003-6 PARCEL 2: THAT PORTION OF THE FOLLOWING DESCRIBED PROPERTY LYING WITHIN BLOCK 3 OF WALL AND STARBIRD’S RESUBDIVISION OF LOTS 3 TO 22, BLOCK 90, AS SHOWN BY MAP ON FILE IN BOOK 10 PAGE(S) 492 OF MAPS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA: A STRIP OF LAND 60 FEET IN WIDTH EXTENDING ACROSS BLOCK 3, 4 AND 5 IN SAID WALL AND STARBIRD’S RESUBDIVISION, BEING 30 FEET ON EACH SIDE OF AND PARALLEL TO THE CENTER LINE OF THE MAIN TRACT TO THE ELSINORE, POMONA AND LOS ANGELES RAILWAY, SAID CENTER LINE OF MAIN TRACT AS IT CROSSES SAID BLOCKS 3, 4 AND 5 BEING DESCRIBED AS FOLLOWS: INTERSECTING THE SOUTHERLY OF SAID BLOCK THREE (3) AT A POINT DISTANT SIX AND THREE TENTHS (6 3/10) FEET WESTERLY FROM THE SOUTHEASTERLY CORNER OF SAID BLOCK THREE (3); THENCE NORTHWESTERLY ON A CURVE TO THE LEFT OF TWO THOUSAND TWO HUNDRED NINETY TWO (2292) FEET RADIUS FOR A DISTANCE OF SEVEN HUNDRED SEVENTY TWO (772) FEET TO A POINT; THENCE NORTHWESTERLY ON A TANGENT CURVE TO THE LEFT OF FOUR THOUSAND FIVE HUNDRED EIGHT THREE AND SEVEN TENTHS (4583 7/10) FEET RADIUS FOR A DISTANCE OF FIVE HUNDRED EIGHTY (580) FEET, MORE OR LESS, TO AN INTERSECTION WITH THE WESTERLY LINE OF SAID BLOCK FIVE (5) AT A POINT DISTANT FORTY FOUR AND FOUR TENTHS (44 4/10) FEET SOUTHERLY FROM THE NORTHWEST CORNER OF SAID BLOCK FIVE (5). SAID CENTER LINE OF MAIN TRACT INTERSECTS THE EASTERLY LINE OF BLOCK FOUR (4) AT A POINT DISTANT TWO HUNDRED TWENTY AND THREE TENTHS (220 3/10) FEET SOUTHERLY FROM ITS NORTHEASTERLY CORNER AND INTERSECTS THE WESTERLY LINE OF SAID BLOCK FOUR (4) AT A POINT DISTANT ONE HUNDRED THIRTEEN AND ONE TENTH (113 1/10) FEET SOUTHERLY FROM THE NORTHWESTERLY CORNER THEREOF. EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN COUNTY HIGHWAY ROUTE 11; ALSO EXCEPTING THEREFROM ALL MINERALS CONTAINED IN THE ABOVE- DESCRIBED LAND, INCLUDING, WITHOUT LIMITING THE GENERALITY THEREOF, OIL, GAS AND OTHER HYDROCARBON SUBSTANCES, AS WELL AS METALLIC OR OTHER SOLID MINERALS, PROVIDED THAT SANTA FE SHALL NOT HAVE THE RIGHT TO GO UPON OR USE THE SURFACE OF SAID LAND, OR ANY PART THEREOF, FOR THE PURPOSE OF DRILLING FOR, MINING, OR OTHERWISE REMOVING ANY OF SAID MINERALS, SANTA FE MAY, HOWEVER, AND HEREBY RESERVES THE RIGHT TO, REMOVE ANY OF SAID MINERALS FROM SAID LAND BY MEANS OF WELLS, SHAFTS, TUNNELS, OR OTHER MEANS OF ACCESS TO SAID MINERALS WHICH MAY BE CONSTRUCTED, DRILLED OR DUG FROM OTHER LAND, PROVIDED THAT THE EXERCISE OF SUCH RIGHTS BY SANTA FE SHALL IN NO WAY INTERFERE WITH OR IMPAIR THE USE OF THE SURFACE OF THE LAND HEREBY CONVEYED OR OF ANY IMPROVEMENTS THEREON, AS RESERVED BY THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY, BY DOCUMENT RECORDED OCTOBER 23, 1985 AS INSTRUMENT NO. 238977 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. SAID PARCEL IS ALSO SHOWN AS SHE. 804- 33-33 (PARCEL 5). APN: 377-220-019-1 PARCEL 3: THAT PORTION OF BLOCK 3 OF WALL AND STARBIRD’S RESUBDIVISION OF LOTS 3 TO 22, INCLUSIVE IN BLOCK 90, AS SHOWN BY MAP ON FILE IN BOOK 10, PAGE(S) 492, OF MAPS. RECORDS OF SAN DIEGO COUNTY, CALIFORNIA, TOGETHER WITH THAT PORTION OF THE ALLEY IN SAID BLOCK 3, VACATED BY CITY OF ELSINORE, ORDINANCE NO. 389, RECORDED MAY 9, 1966 AS INSTRUMENT NO. 48383 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST WESTERLY CORNER OF SAID BLOCK 3; THENCE NORTH 18° 20’ 30” EAST ON THE NORTHWESTERLY LINE OF SAID BLOCK, 185.44 FEET TO THE INTERSECTION OF SAID RAILROAD RIGHT OF WAY; THENCE ON A CURVE SOUTHEASTERLY, CURVING SOUTHERLY, THE RADIUS OF WHICH IS 2262.01 FEET AN ARC OF 395.63 FEET ON THE SOUTHEASTERLY LINE OF SAID RAILROAD RIGHT OF WAY TO THE INTERSECTION WITH THE NORTH LINE OF MINTHORN STREET; THENCE NORTH 46° 50’ WEST, 271.32 FEET TO THE POINT OF BEGINNING. TOGETHER WITH THAT PORTION OF THE SOUTHEASTERLY HALF OF LANGSTAFF STREET, LYING NORTHEASTERLY OF THE NORTHEASTERLY PROLONGATION OF THE SOUTHWESTERLY LINE OF LOT 7, IN SAID BLOCK 3 AND LYING SOUTHWESTERLY OF THE SOUTHWESTERLY LINE OF THE ATCHISON, TOPEKA AND SANTA FE RAILROAD RIGHT OF WAY LINE; EXCEPTING THEREFROM ALL THAT PORTION THEREOF LYING WITHIN LOTS 2,3 AND 9 IN BLOCK 3. APN: 377-220-021-2 APN: 377-220-003-6, 377-220-019-1, 377-220-021-2 (End of Legal Description) EXHIBIT B SITE PLAN [On Following Page] 3OFA-1NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS1SHEET DATE :SCALE:OWNER PROJECT 311 WEST MINTHORN STREET LAKE ELSINORE CA VICINITY MAPLAKE ELSINORE ROUGH SITEPLANCEDAR HILLS CONSORTIUM INC. C/O DANETTE M. LEONARD CORP COMMUNITY INVESTMENT EXHIBIT C FLOOR PLAN [On Following Page] 3OFA-3NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS3SHEET DATE :SCALE:OWNERPROJECT 311 WEST MINTHORN STREET LAKE ELSINORE CANEWFLOOR PLANLAKE ELSINORE CEDAR HILLS CONSORTIUM INC. C/O DANETTE M. LEONARD CORP COMMUNITY INVESTMENT EXHIBIT D PROPERTY OWNER CONSENT [On Following Page] RESOLUTION NO. 2018- 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 CONDITIONAL USE PERMIT NO. 2018-11 TO ESTABLISH A 8,500 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 311 MINTHORN STREET (APN: 370-220-003, 019, AND 021) Whereas, Joseph Martin, Lake Elsinore Investment Corporation has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-39 (Development Agreement No. 2018-07 (Exhibit A) and Conditional Use Permit No. 2018-11) to establish an approximately 8,500 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of approximately 2,125 SF dispensary space, and 6,375 SF of manufacturing and ancillary use space. The Project is generally located at the northwest corner of the intersection Minthorn and Collier and more specifically referred to as 311 Minthorn Street (APN: 370-220-003, 019, and 021); 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, Chapter 17.168 of the Lake Elsinore Municipal Code (LEMC) provides that certain uses have operational characteristics that, depending on the location and design of the use, may have the potential to negatively impact adjoining properties, businesses or residents and therefore are permitted subject to the issuance of a Conditional Use Permit, which allows the City to comprehensively review and approve the use; and, Whereas,pursuant to Chapter 17.168 (Conditional Use Permits) of the LEMC, the Planning Commission (Commission) has been delegated with the responsibility of making recommendations to the Council pertaining to conditional use permits; and, Whereas,on November 20, 2018, 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: The Commission has considered the Project prior to making a recommendation to the Council and has found it acceptable. Section 2:That in accordance with the MSHCP, the Commission makes the following findings for MSHCP consistency: PC Reso. No. 2018-____ Page 2 of 4 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 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 4: That in accordance with California Planning and Zoning Law and the LEMC Section 17.168.060 (Findings), the Commission makes the following findings regarding the Project: 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 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. PC Reso. No. 2018-____ Page 3 of 4 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 17.168.040 of the LEMC, the Project was considered by the Commission at a duly noticed Public Hearing on November 20, 2018, 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 Commission hereby recommends that the Council find 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 Commission hereby recommends that the Council approve Planning Application No. 2018-39 (Conditional Use Permit No. 2018-11). Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20 th day of November, 2018. Myles Ross, Chairman PC Reso. No. 2018-____ Page 4 of 4 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. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on November 20, 2018 and that the same was adopted by the following vote: AYES NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director Applicant’s Initials: _____ Page 1 of 12 CONDITIONS OF APPROVAL RESOLUTION:2018-XX & 2018-XX PROJECT: PA 2018-39/DA 2018-07/CUP 2018-11 PROJECT NAME:Lake Elsinore Investment Corporation PROJECT LOCATION:APN: 370-220-003, 019, and 021 APPROVAL DATE: EFFECTIVE DATE: EXPIRATION DATE: General Conditions 1.Planning Application No. 2018-39 (Development Agreement No. 2018-07 and Conditional Use Permit No. 2018-11) proposes to establish an approximately 8,500 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of approximately 2,125 SF dispensary space, and 6,375 SF of manufacturing and ancillary use space. The Project is generally located at the northwest corner of the intersection Minthorn and Collier and more specifically referred to as 311 Minthorn Street (APN: 370-220-003, 019, and 021). 2.Conditional Use Permit No. 2018-11 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 2018-11 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 2018-11 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. 2018-11 shall lapse and become void two years following the date on which the Conditional Use Permit became effective, unless one of the following: (1) PA 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 2 of 12 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 design review approval pursuant to subsections (B) and (C) of LEMC Section 17.168.080. Subject to the provisions of LEMC Section 17.168.110, 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. 9.The applicant shall pay all applicable City fees, including but not limited to: Development Impact Fees (DIF), Fire Facilities Fees, and Traffic Infrastructure Fees (TIF) per LEMC Section 16.74, Transportation Uniform Mitigation Fees (TUMF) per LEMC Section 16.83, Area Drainage Fees per LEMC Section 16.72, MSHCP Fee per LEMC Section 16.85, Capital Improvement Impact/Mitigation Fees, Stephens Kangaroo Habitat Fee (K-Rat) per LEMC Section 19.04, and Plan Check fees, at the rate in effect at the time of payment. Operational Standards 10.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. 11.The applicant shall at all times comply with Chapter 17.176 (Noise Ordinance) of the LEMC. PA 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 3 of 12 Prior to the issuance of a building permit, documentation demonstrating compliance shall 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, PA 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 4 of 12 shall be visible from the exterior of this property, or on any of the vehicles owned or used as 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 2016 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 Public 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 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD 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 comply 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 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD 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 through out 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 PA 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 9 of 12 cannabis facility is prohibited. 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 PA 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 10 of 12 otherwise stipulated by the City. 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: 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code, and 2016 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 2016 California Building Code. 54.The conditions of approval and ordinance or code provisions of planning application PA-18- 06 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 2016 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 PA 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 11 of 12 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 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 2018-39/DA 2018-07/CUP 2018-11 PC: November 20, 2018 Conditions of Approval CC: TBD 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: RESOLUTION NO. 2018- 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 DEVELOPMENT AGREEMENT NO. 2018-09 FOR AN APPROXIMATELY 5,521 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 510 CRANE STREET (APN: 377-430-028) Whereas, Travis Campbell, Trustin Solutions has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-41 (Development Agreement No. 2018-09 (Exhibit A) and Conditional Use Permit No. 2018-13) to establish an approximately 5,521 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of 1,586 SF of distribution space, a 728 SF dispensary, and 3,207 SF of cultivation and ancillary uses. The Project is generally located at the southeast corner of the intersection Crane and Pasadena and more specifically referred to as 510 Crane Street (APN: 377-430-028); 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 November 20, 2018, 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. 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. PC Reso. No. 2018-____ Page 2 of 5 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 Development Agreement No. 2018-09: 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. 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. PC Reso. No. 2018-____ Page 3 of 5 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. 2018-09. Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20th day of November, 2018. Myles Ross, Chairman Attest: ___________________________________ Justin Kirk, Assistant Community Development Director STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) PC Reso. No. 2018-____ Page 4 of 5 I, Justin Kirk, Assistant Community Development Director of the City of Lake Elsinore, California, hereby certify that Resolution No. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on the 20th day of November, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director PC Reso. No. 2018-____ Page 5 of 5 Exhibit A Development Agmt - Trustin Solutions Inc 111218.docx 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 TRUSTIN SOLUTIONS INC. -1- DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND TRUSTIN SOLUTIONS INC. This Development Agreement (“Agreement”), dated for identification only as of December 1, 2018, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and Trustin Solutions Inc., a California corporation (“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, by way of an option to purchase, that certain real property located at 510 Crane Street in the City of Lake Elsinore, County of Riverside, State of California, Assessor’s Parcel Number 377-430-028, 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, the Site Plan is attached hereto as Exhibit B, and the Floor Plan is attached hereto as Exhibit C. N. Developer affirms that it has an equitable interest in the Site, evidenced in writing with the owner of the Site, Crane Street Industrial LLC (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 D. -3- P. The Property Owner has provided a notarized affidavit evidencing its intent to convey the Site to Developer, attached hereto as Exhibit D. Q. 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”). R. 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. S. 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. T. 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. U. On November 20, 2018, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider Owner’s application for this Agreement and recommended to the City Council approval of this Agreement. V. On December 11, 2018, 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. W. 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. 2018- ___ (the “Enabling Ordinance”). On ____________ __, 201__, 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. -4- 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 Exhibit C Floor Plan Exhibit D 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. -5- “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. “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 a conditional use permit issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to LEMC, Chapter 17.168. In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit. -6- “CUA” has the meaning as set forth in the Recitals, above. “Developer” means Elsinore Community Investment Corp, a California corporation. “Development Agreement Ordinance” has the meaning as set forth in the Recitals, above. “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. -7- “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. “Property Owner” means Crane Street Industrial LLC. “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 temporary 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 responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency 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 have delivered 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 License 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. This Agreement shall terminate upon the occurrence of any of the following events: -8- a. the expiration of the Term; b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for a period of one year or more; d. mutual written consent of the Parties; e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.080 including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit; f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.110; g. following the Term Commencement Date, the failure to have a valid Cannabis Business Permit for the Project; h. following the Term Commencement Date, the failure to have a valid Developer’s State Cannabis Permit for the Project; or i. 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, 9.4, and 9.6 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. 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 Developer Property 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, -9- 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 Benefits 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 the Agreement, the Conditional Use Permit, Additional City Approvals if any, the Cannabis Business Permit, the City’s Development Regulations. 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 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). -10- 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 of the City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 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 -11- 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 Ci ty in its discretion, to address such emergency in a way 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 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. -12- 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 $18.00 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 anniversar y 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 $109,800 [$18.00 x 6,100 square feet of Floor Area] upon the initial issuance of a Cannabis Business Permit on March 15, 2019, the Community Benefits Fee due on the First Adjustment Date, that is, March 15, 2020, is the product of $109,800 times 1.04, in which case the Community Benefits Fee payable on the First Adjustment Date would be $114,192). 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 -13- 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 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 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. -14- 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. 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 of law or any other method of interest change or transfer, unless the City Manager has authorized such change or transfer in advance, in writing. -15- 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 Part y 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 Ordinance), any such default must be cured by the payment of the amount 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; 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 such thirty (30) day period; and d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default. 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. -16- 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 persons, 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. 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: Trustin Solutions Inc. 510 Crane Street Lake Elsinore, CA 92530 Attn: Travis Campbell -17- 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 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. -18- 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 constitute 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. 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] -19- 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: Susan M. Domen, MMC, City Clerk “DEVELOPER” TRUSTIN SOLUTIONS INC., a California corporation Date: By: Travis Campbell, Chief Executive Officer Date: By: Justin Shivley, Chief Operating Officer 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: PARCELS 1 AND 2 OF PARCEL MAP NO. 31963, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, AS PER MAP RECORDED IN BOOK 211, PAGES 11 AND 12 OF PARCEL MAPS, RECORDS OF SAID COUNTY. APN: 377-430-028 EXHIBIT B SITE PLAN [On Following Page] EXHIBIT C FLOOR PLAN [On Following Page] Floor Plan EXHIBIT D PROPERTY OWNER CONSENT [On Following Page] Owner’s Consent RESOLUTION NO. 2018- 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 PLANNING APPLICATION NO. 2018-41 (CONDITIONAL USE PERMIT NO. 2018-13) TO ESTABLISH A 5,521 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 510 CRANE STREET (APN: 377-430-028) Whereas, Travis Campbell, Trustin Solutions has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-41 (Development Agreement No. 2018-09 (Exhibit A) and Conditional Use Permit No. 2018-13) to establish an approximately 5,521 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of 1,586 SF of distribution space, a 728 SF dispensary, and 3,207 SF of cultivation and ancillary uses. The Project is generally located at the southeast corner of the intersection Crane and Pasadena and more specifically referred to as 510 Crane Street (APN: 377-430-028); 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, Chapter 17.168 of the Lake Elsinore Municipal Code (LEMC) provides that certain uses have operational characteristics that, depending on the location and design of the use, may have the potential to negatively impact adjoining properties, businesses or residents and therefore are permitted subject to the issuance of a Conditional Use Permit, which allows the City to comprehensively review and approve the use; and, Whereas,pursuant to Chapter 17.168 (Conditional Use Permits) of the LEMC, the Planning Commission (Commission) has been delegated with the responsibility of making recommendations to the Council pertaining to conditional use permits; and, Whereas,on November 20, 2018, 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: The Commission has considered the Project prior to making a recommendation to the Council and has found it acceptable. Section 2:That in accordance with the MSHCP, the Commission makes the following findings for MSHCP consistency: PC Reso. No. 2018-____ Page 2 of 4 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 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 4: That in accordance with California Planning and Zoning Law and the LEMC Section 17.168.060 (Findings), the Commission makes the following findings regarding the Project: 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 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. PC Reso. No. 2018-____ Page 3 of 4 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 17.168.040 of the LEMC, the Project was considered by the Commission at a duly noticed Public Hearing on November 20, 2018, 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 Commission hereby recommends that the Council find 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 Commission hereby recommends that the Council approve Planning Application No. 2018-41 (Conditional Use Permit No. 2018-13). Section 7: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20 th day of November, 2018. Myles Ross, Chairman PC Reso. No. 2018-____ Page 4 of 4 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. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on November 20, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director Applicant’s Initials: _____ Page 1 of 12 CONDITIONS OF APPROVAL RESOLUTION:2018-XX & 2018-XX PROJECT: PA 2018-41/DA 2018-09/CUP 2018-13 PROJECT NAME:Trustin Solutions PROJECT LOCATION:APN: 377-430-288 APPROVAL DATE: EFFECTIVE DATE: EXPIRATION DATE: General Conditions 1.Planning Application No. 2018-41 (Development Agreement No. 2018-09 and Conditional Use Permit No. 2018-13) proposes to establish an approximately 5,521 Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of 1,586 SF of distribution space, a 728 SF dispensary, and 3,207 SF of cultivation and ancillary uses. The Project is generally located at the southeast corner of the intersection Crane and Pasadena and more specifically referred to as 510 Crane Street (APN: 377-430-288). 2.Conditional Use Permit No. 2018-13 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 2018-13 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 2018-13 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. 2018-13 shall lapse and become void two years following the 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 PA 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 2 of 12 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 design review approval pursuant to subsections (B) and (C) of LEMC Section 17.168.080. Subject to the provisions of LEMC Section 17.168.110, 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. 9.The applicant shall pay all applicable City fees, including but not limited to: Development Impact Fees (DIF), Fire Facilities Fees, and Traffic Infrastructure Fees (TIF) per LEMC Section 16.74, Transportation Uniform Mitigation Fees (TUMF) per LEMC Section 16.83, Area Drainage Fees per LEMC Section 16.72, MSHCP Fee per LEMC Section 16.85, Capital Improvement Impact/Mitigation Fees, Stephens Kangaroo Habitat Fee (K-Rat) per LEMC Section 19.04, and Plan Check fees, at the rate in effect at the time of payment. Operational Standards 10.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. 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2016 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 Public 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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 comply 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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 through out 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 PA 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 9 of 12 cannabis facility is prohibited. 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 PA 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 10 of 12 otherwise stipulated by the City. 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: 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code, and 2016 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 2016 California Building Code. 54.The conditions of approval and ordinance or code provisions of planning application PA-18- 06 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 2016 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 PA 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 11 of 12 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 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 2018-41/DA 2018-09/CUP 2018-13 PC: November 20, 2018 Conditions of Approval CC: TBD 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: RESOLUTION NO. 2018- 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 DEVELOPMENT AGREEMENT NO. 2018-12 FOR AN APPROXIMATELY 10,723 SQUARE FOOT CANNABIS FACILITY WITHIN THREE EXISTING BUILDINGS LOCATED AT 571 CRANE AVENUE (APNS: 377-410-020, 031, AND 034) Whereas, Tommy Tran, The Highest Craft has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-45 (Development Agreement No. 2018-12 (Exhibit A) and Conditional Use Permit No. 2018-16) to establish an approximately 10,723 Square Foot (SF) Cannabis Facility within three existing buildings (Project). The Project will consist of a 7,566 SF of cultivation space, a 1,103 SF dispensary, and 2,054 SF of manufacturing and ancillary use space. The Project is generally located at the northwest corner of the intersection Crane and Collier and more specifically referred to as 571 Crane Avenue (APN: 377-410-020, 031, and 034); 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 November 20, 2018, 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. 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. PC Reso. No. 2018-____ Page 2 of 5 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 Development Agreement No. 2018-12: 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. 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. PC Reso. No. 2018-____ Page 3 of 5 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. 2018-12. Section 6: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20th day of November, 2018. Myles Ross, Chairman Attest: ___________________________________ Justin Kirk, Assistant Community Development Director STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) PC Reso. No. 2018-____ Page 4 of 5 I, Justin Kirk, Assistant Community Development Director of the City of Lake Elsinore, California, hereby certify that Resolution No. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on the 20th day of November, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director PC Reso. No. 2018-____ Page 5 of 5 Exhibit A Development Agmt - The Highest Craft, LLC 111218.docx 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 THE HIGHEST CRAFT, LLC -1- DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND THE HIGHEST CRAFT, LLC This Development Agreement (“Agreement”), dated for identification only as of December 1, 2018, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and The Highest Craft, 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 571 Crane Street, Units F, E and D, in the City of Lake Elsinore, County of Riverside, State of California, Assessor's Parcel Numbers 377-410-020, 377-410-031, and 377-410-034, 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, the Site Plan is attached hereto as Exhibit B, and the Floor Plan is attached hereto as Exhibit C. N. Developer affirms that it has an equitable interest in the Site, evidenced in writing with the owner of the Site, RVE Dynasty, LLC (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 D. -3- 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 November 20, 2018, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider Owner’s application for this Agreement and recommended to the City Council approval of this Agreement. U. On December 11, 2018, 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. 2018-____ (the “Enabling Ordinance”). On __________ __, 2018, 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. -4- 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 Exhibit C Floor Plan Exhibit D 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. -5- “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. “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 a conditional use permit issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to LEMC, Chapter 17.168. In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit. -6- “CUA” has the meaning as set forth in the Recitals, above. “Developer” means The Highest Craft, LLC, a California limited liability company. “Development Agreement Ordinance” has the meaning as set forth in the Recitals, above. “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. -7- “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. “Property Owner” means RVE Dynasty, LLC. “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 temporary 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 responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency 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 have delivered 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 License 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. This Agreement shall terminate upon the occurrence of any of the following events: -8- a. the expiration of the Term; b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for a period of one year or more; d. mutual written consent of the Parties; e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.080 including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit; f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.168.110; g. following the Term Commencement Date, the failure to have a valid Cannabis Business Permit for the Project; h. following the Term Commencement Date, the failure to have a valid Developer’s State Cannabis Permit for the Project; or i. 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, 9.4, and 9.6 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. 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 Developer Property 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, -9- 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 Benefits 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 the Agreement, the Conditional Use Permit, Additional City Approvals if any, the Cannabis Business Permit, the City’s Development Regulations. 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 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). -10- 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 of the City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 City’s issuance of the Cannabis Business Permit for the development of the Project at the Site. 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 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 -11- 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 Ci ty in its discretion, to address such emergency in a way 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 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. -12- 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 $18.00 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 $109,800 [$18.00 x 6,100 square feet of Floor Area] upon the initial issuance of a Cannabis Business Permit on March 15, 2019, the Community Benefits Fee due on the First Adjustment Date, that is, March 15, 2020, is the product of $109,800 times 1.04, in which case the Community Benefits Fee payable on the First Adjustment Date would be $114,192). 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 -13- 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 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 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. -14- 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. 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 of law or any other method of interest change or transfer, unless the City Manager has authorized such change or transfer in advance, in writing. -15- 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 Ordinance), any such default must be cured by the payment of the amount 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; 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 such thirty (30) day period; and d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default. 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. -16- 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 persons, 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. 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: The Highest Craft, LLC 571 Crane Street, Unit F Lake Elsinore, CA 92530 Attn: Tommy Tran -17- 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 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. -18- 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 constitute 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. 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] -19- 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: Susan M. Domen, MMC, City Clerk “DEVELOPER” THE HIGHEST CRAFT, LLC, a California limited liability company Date: By: Tommy Tran, 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: PARCEL 1: PARCELS 20 OF PARCEL MAP NO. 24751, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY PARCEL MAP ON FILE IN BOOK 164 PAGES 64, 65 AND 66 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. [APN: 377-4100-020; 571 CRANE STREET UNIT F, LAKE ELSINORE, CA] PARCEL 2: PARCELS 31 OF PARCEL MAP NO. 24751, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY PARCEL MAP ON FILE IN BOOK 164 PAGES 64, 65 AND 66 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. [APN: 377-410-031; 571 CRANE STREET UNIT E, LAKE ELSINORE, CA] PARCEL 3: PARCELS 34 OF PARCEL MAP NO. 24751, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY PARCEL MAP ON FILE IN BOOK 164 PAGES 64, 65 AND 66 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. [APN: 377-410-034; 571 CRANE STREET UNIT D, LAKE ELSINORE, CA] EXHIBIT B SITE PLAN [On Following Page] Exhibit B – Site Plan Business Location (Address and Assessor's Parcel Number) 571 Crane St., Units D, E, and F Lake Elsinore, CA 92503 APN(s) 377-410-034-1 377-410-031-8 377-410-020-8 The property is a member of a business association. Section 2.01(a) of the CC&R’s of that association specifically allow for any business that is approved by the City in accordance with an M-1 zoning distinction, to have permitted use in the business park. Article II; section 2.01 Permitted Uses (page 5 of the Business Park CC&R) reads as follows: Description of surrounding land uses. The areas immediately surrounding the proposed business address are other business parks, storage units and other existing industrial buildings. The photo below will highlight the buildings we will be occupying in the industrial complex. EXHIBIT C FLOOR PLAN [On Following Page] 4ABCD321ABCD287445412345861011791213A-2.20BUILDING-DGROUNDFLOOR PLANSCALE: 3/16" = 1'-0"NORTHBUILDING-D - GROUND FLOOR PLAN1SHEET NUMBERREVISIONSESNE CIL TCETIHCRADRNo. 33194EXPIRES31 AUG 2019STATEOFCALI FOR NIA WERD N A CARLOSPROJECT: THE HIGHEST CRAFT TENANT IMPROVEMENT - BUILDING-D, E & F ADDRESS: 571 CRANE STREET, LAKE ELSINORE, CA 92530 DESCRIPTION: TENANT IMPROVEMENT carlosarchitects incISSUE DATE:10/19/2018WALL TYPES LEGENDKEY NOTES ABD12345C25412345861011791213A-2.22BUILDING-EGROUNDFLOOR PLANSCALE: 3/16" = 1'-0"NORTHBUILDING-E - GROUND FLOOR PLAN1SHEET NUMBERREVISIONSESNE CIL TCETIHCRADRNo. 33194EXPIRES31 AUG 2019STATEOFCALI FORNIA WERD N A CARLOSPROJECT: THE HIGHEST CRAFT TENANT IMPROVEMENT - BUILDING-D, E & F ADDRESS: 571 CRANE STREET, LAKE ELSINORE, CA 92530 DESCRIPTION: TENANT IMPROVEMENT carlosarchitects incISSUE DATE:10/19/2018WALL TYPES LEGENDKEY NOTES BA678 95DC25412345861011791213A-2.23BUILDING-FGROUND FLOORPLANSCALE: 3/16" = 1'-0"NORTHBUILDING-F - GROUND FLOOR PLAN1SHEET NUMBERREVISIONSESNE CIL TCETIHCRADRNo. 33194EXPIRES31 AUG 2019STATEOFCALI FORNIA WERD N A CARLOSPROJECT: THE HIGHEST CRAFT TENANT IMPROVEMENT - BUILDING-D, E & F ADDRESS: 571 CRANE STREET, LAKE ELSINORE, CA 92530 DESCRIPTION: TENANT IMPROVEMENT carlosarchitects incISSUE DATE:10/19/2018WALL TYPES LEGENDKEY NOTES EXHIBIT D PROPERTY OWNER CONSENT [On Following Page] RESOLUTION NO. 2018- 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 CONDITIONAL USE PERMIT NO. 2018-16 TO ESTABLISH A 10,723 SQUARE FOOT CANNABIS FACILITY WITHIN THREE EXISTING BUILDINGS LOCATED AT 571 CRANE AVENUE (APNS: 377-410-020, 031, AND 034) Whereas, Tommy Tran, The Highest Craft has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2018-45 (Development Agreement No. 2018-12 (Exhibit A) and Conditional Use Permit No. 2018-16) to establish an approximately 10,723 Square Foot (SF) Cannabis Facility within three existing buildings (Project). The Project will consist of a 7,566 SF of cultivation space, a 1,103 SF dispensary, and 2,054 SF of manufacturing and ancillary use space. The Project is generally located at the northwest corner of the intersection Crane and Collier and more specifically referred to as 571 Crane Avenue (APN: 377-410-020, 031, and 034); 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, Chapter 17.168 of the Lake Elsinore Municipal Code (LEMC) provides that certain uses have operational characteristics that, depending on the location and design of the use, may have the potential to negatively impact adjoining properties, businesses or residents and therefore are permitted subject to the issuance of a Conditional Use Permit, which allows the City to comprehensively review and approve the use; and, Whereas,pursuant to Chapter 17.168 (Conditional Use Permits) of the LEMC, the Planning Commission (Commission) has been delegated with the responsibility of making recommendations to the Council pertaining to conditional use permits; and, Whereas,on November 20, 2018, 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: The Commission has considered the Project prior to making a recommendation to the Council and has found it acceptable. Section 2:That in accordance with the MSHCP, the Commission makes the following findings for MSHCP consistency: PC Reso. No. 2018-____ Page 2 of 4 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 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 4: That in accordance with California Planning and Zoning Law and the LEMC Section 17.168.060 (Findings), the Commission makes the following findings regarding the Project: 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 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. PC Reso. No. 2018-____ Page 3 of 4 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 17.168.040 of the LEMC, the Project was considered by the Commission at a duly noticed Public Hearing on November 20, 2018, 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 Commission hereby recommends that the Council find 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 Commission hereby recommends that the Council approve Planning Application No. 2018-45 (Conditional Use Permit No. 2018-16). Section 7: This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 20 th day of November, 2018. Myles Ross, Chairman PC Reso. No. 2018-____ Page 4 of 4 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. 2018-__ was adopted by the Planning Commission of the City of Lake Elsinore, California, at a regular meeting held on November 20, 2018 and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Justin Kirk, Assistant Community Development Director Applicant’s Initials: _____ Page 1 of 12 CONDITIONS OF APPROVAL RESOLUTION:2018-XX & 2018-XX PROJECT: PA 2018-45/DA 2018-12/CUP 2018-16 PROJECT NAME:The Highest Craft PROJECT LOCATION:APNs: 377-410-020, 031, and 034 APPROVAL DATE: EFFECTIVE DATE: EXPIRATION DATE: General Conditions 1.Planning Application No. 2018-45 (Development Agreement No. 2018-12 and Conditional Use Permit No. 2018-16) proposes to establish an approximately 10,723 Square Foot (SF) Cannabis Facility within three existing buildings (Project). The Project will consist of a 7,566 SF of cultivation space, a 1,103 SF dispensary, and 2,054 SF of manufacturing and ancillary use space. The Project is generally located at the northwest corner of the intersection Crane and Collier and more specifically referred to as 571 Crane Avenue (APN: 377-410-020, 031, and 034). 2.Conditional Use Permit No. 2018-16 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 2018-16 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 2018-16 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. 2018-16 shall lapse and become void two years following the date on which the Conditional Use Permit became effective, unless one of the following: (1) PA 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 2 of 12 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 design review approval pursuant to subsections (B) and (C) of LEMC Section 17.168.080. Subject to the provisions of LEMC Section 17.168.110, 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. 9.The applicant shall pay all applicable City fees, including but not limited to: Development Impact Fees (DIF), Fire Facilities Fees, and Traffic Infrastructure Fees (TIF) per LEMC Section 16.74, Transportation Uniform Mitigation Fees (TUMF) per LEMC Section 16.83, Area Drainage Fees per LEMC Section 16.72, MSHCP Fee per LEMC Section 16.85, Capital Improvement Impact/Mitigation Fees, Stephens Kangaroo Habitat Fee (K-Rat) per LEMC Section 19.04, and Plan Check fees, at the rate in effect at the time of payment. Operational Standards 10.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. 11.The applicant shall at all times comply with Chapter 17.176 (Noise Ordinance) of the LEMC. PA 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 3 of 12 Prior to the issuance of a building permit, documentation demonstrating compliance shall 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, PA 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 4 of 12 shall be visible from the exterior of this property, or on any of the vehicles owned or used as 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 2016 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 Public 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 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD 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 comply 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 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD 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 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD 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 through out 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 PA 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 9 of 12 cannabis facility is prohibited. 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 PA 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 10 of 12 otherwise stipulated by the City. 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: 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code, and 2016 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 2016 California Building Code. 54.The conditions of approval and ordinance or code provisions of planning application PA-18- 06 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 2016 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 PA 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD Applicant’s Initials: _____ Page 11 of 12 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 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 2018-45/DA 2018-12/CUP 2018-16 PC: November 20, 2018 Conditions of Approval CC: TBD 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: BUSINESS DISTRICTPA 2018-44DA 2018-11CUP 2018-15PA 2018-45DA 2018-12CUP 2018-16PA 2018-34DA 2018-02CUP 2018-06PA 2018-41DA 2018-09CUP 2018-13PA 2018-39DA 2018-07CUP 2018-11PA 2018-38DA 2018-10CUP 2018-06I-15CHANEY STFLINT ST10TH STMINTHORN STSH-742ND STPALM DRCAM INO D EL N OR TE DEXTER AVERYAN AVEKEE AVESILVER STSTRICKLAND AVETHIRD STPOE STFOSTER STPOTTERY STI-15 SBONI-15 NBONI-15 SBOFF I-1 5 NB OFF COLLIER AVECRANE STWASSON CANYON RDDAVIS STLATTA AVEMOHR STHUNCO WAYPASADENA STCENTRAL STCOOLIDGE AVELAKESHORE DRCAMBERN AVEMAIN STHILL AVEMC BURNEY AVESTECHER AVETRELEVEN AVEBAUM AVESKY L INE DR SHRIER DRCALKINS AVERILEY STLEWIS STMORT ON A VE BAKER STADAM AVEMILLER STPREVOST AVELANGSTAFF STGEDGE AVESUNNY SLOPE AVEWALNUT AVEBUNK E R S T BENEDICT AVEMOUNTAIN VIEWSUMNER AVEOLEA N D E R A V E TOWNSEND STHEIM AVELINDSAY STSCRIVENER STLOWELL STBARBER STDEXTER PLBASTRON AVECANYON DRHAMLET C I R BUSHMAN AVECHAMPION AVELINDBERGH CIRHIGHTOWER STPASADENA STI-15 SBO F F I-15COLLIER AVEDEXTER AVETHIRD STI-15 NBOFFSH-74City of Lake ElsinoreBusiness DistrictCannabis Application Locations´00.20.1 MilesPrepared by:City of Lake Elsinore GISNovember 13, 2018Data Sources:County of Riverside GISCity of Lake Elsinore GISStateplane NAD 83 BUSINESS DISTRICTPA 2018-44DA 2018-11CUP 2018-15PA 2018-45DA 2018-12CUP 2018-16PA 2018-34DA 2018-02CUP 2018-06PA 2018-41DA 2018-09CUP 2018-13PA 2018-39DA 2018-07CUP 2018-11PA 2018-38DA 2018-10CUP 2018-06I-15CHANEY STFLINT ST10TH STMINTHORN STSH-742ND STPALM DRCAM INO D EL N OR TE DEXTER AVERYAN AVEKEE AVESILVER STSTRICKLAND AVETHIRD STPOE STFOSTER STPOTTERY STI-15 SBONI-15 NBONI-15 SBOFF I-1 5 NB OFF COLLIER AVECRANE STWASSON CANYON RDDAVIS STLATTA AVEMOHR STHUNCO WAYPASADENA STCENTRAL STCOOLIDGE AVELAKESHORE DRCAMBERN AVEMAIN STHILL AVEMC BURNEY AVESTECHER AVETRELEVEN AVEBAUM AVESKY L INE DR SHRIER DRCALKINS AVERILEY STLEWIS STMORT ON A VE BAKER STADAM AVEMILLER STPREVOST AVELANGSTAFF STGEDGE AVESUNNY SLOPE AVEWALNUT AVEBUNK E R S T BENEDICT AVEMOUNTAIN VIEWSUMNER AVEOLEA N D E R A V E TOWNSEND STHEIM AVELINDSAY STSCRIVENER STLOWELL STBARBER STDEXTER PLBASTRON AVECANYON DRHAMLET C I R BUSHMAN AVECHAMPION AVELINDBERGH CIRHIGHTOWER STPASADENA STI-15 SBO F F I-15COLLIER AVEDEXTER AVETHIRD STI-15 NBOFFSH-74Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GISUser CommunityCity of Lake ElsinoreBusiness DistrictCannabis Application Locations´00.20.1MilesPrepared by:City of Lake Elsinore GISNovember 13, 2018Data Sources:County of Riverside GISCity of Lake Elsinore GISStateplane NAD 83 ABBREVIATIONS @ d 0# AB AC A/C ALUM ANOD BD BLDG BLK(G) BN BOT CB CI CJ CLG CLR CMU CO COL CONT CSK DF DIA DN DS DWG E (E) EA EJ ELEV EN EQ EQUIP FAU FBO FD FE(C) FF FG FH FIN FL FLG FLR FN FOC FOF FOM FOP FOS FT CENTER LINE PERPENDICULAR ANGLE ANCHOR BOLT ASPHALTIC CONCRETE AIR CONDITIONING ALUMINUM ANODIZED BOARD BUILDING BLOCK(ING) BOUNDARY NAILING BOTTOM CATCH BASIN CAST IRON CEILING JOIST CEILING CLEAR CONCRETE MASONRY UNIT CLEAN OUT COLUMN CONTINUOUS COUNTERSINK DOUGLAS FIR DIAMETER DOWN DOWNSPOUT DRAWING EAST EXISTING EACH EXPANSION JOINT ELEVATION EDGE NAIL EQUAL EQUIPMENT FORCED AIR UNITFURNISHED BY OWNER OR OTHERS, TO BE INSTALLED BY CONTRACTOR FLOOR DRAINFIRE EXTINGUISHER (+ CABINET) FINISHED FLOOR FINISHED GRADE FLAT HEAD FINISH FLOW LEVEL FLASHING FLOOR FIELD NAILING FACE OF CONCRETE FACE OF FINISH FACE OF MASONRY FACE OF PLYWOOD FACE OF STUD FOOT OR FEET GA GALV GYP HB HP HR HTR HVAC HW (R) INV LAM LAV LB LC LT MAS MATL MAX MB MECH MEMB MTL MFR MIN MISC N (N) NIC NO / # NTS OC OH OPNG PL PLAM PLAS PLYWD P PR PTDF RD RH RM RO RWD SCHED S SHTNG SIM SPEC SQ SSTL STD STL TC TOC TCB GAUGE GALVANIZED GYPSUM HOSE BIBB HORSE POWER HOUR HEATER HEATING / VENTILATION/ AIRCONDITIONING HOT WATER (RETURN) INVERT LAMINATE(D) LAVATORY LAG BOLT LAUNDRY CHUTE LIGHT MASONRY MATERIAL MAXIMUM MACHINE BOLT MECHANICAL MEMBRANE METAL MANUFACTURER MINIMUM MISCELLANEOUS NORTH NEW NOT IN CONTRACT NUMBER NOT TO SCALE ON CENTER OVAL HEAD OR OVER HEAD OPENING PLATE OR PROPERTY LINE PLASTIC LAMINATE PLASTER PLYWOOD PAINT (NUMBER) PAIRPRESSURE TREATED DOUGLAS FIR ROOF DRAIN ROUND HEAD ROOM ROUGH OPENING REDWOOD SCHEDULE(D) SOUTH SHEATHING SIMILAR SPECIFICATION SQUARE STAINLESS STEEL STANDARD STEEL TOP OF CURB TOP OF CONCRETE TOP OF CATCH BASIN T&G TP TOW TYP UNO VCT VERT VGDF VTR W WC WH WP WS WWF W/ W/O POC TBS TONGUE & GROOVE TOP OF PAVING TOP OF WALL TYPICAL UNLESS NOTED OTHERWISE VINYL COMPOSITE TILE VERTICAL VERTICAL GRAIN DOUGLAS FIR VENT THRU ROOF WEST WATER CLOSET WATER HEATER WATERPROOF WOOD SCREW WATER SOFTENER WELDED WIRE FABRIC WITH WITHOUT POINT OF CONNECTION TO BE SELECTED AT PENNY POUND WTS XXX XXXXX NORTH ARROW EXTERIOR ELEVATION INTERIOR ELEVATION SECTION CALLOUT DETAIL CALLOUT KEYNOTE TAG EQUIPMENT TAG DOOT TAG REVISION CLOUD REVISIONS TAG (DELTA) X' XX"DIMENSION LINE (FACE OF STUD - UNO) DATUM POINT X'-XX" AFF X HEIGHT ABOVE FINISHED FLOOR XX WINDOW TAGXX SYMBOLS A Sheet 1 Sheet FD FLOOR DRAIN S D COMBINATION SMOKE & CARBON MONOXIDE DETECTOR 1 Sheet 1 Sheet DD DECK DRAIN EXHAUST FANTRUENSEWN PROJECT INFORMATION PROJECT ADDRESS:504 CENTRAL AVENUE, LAKE ELSINORE, CA 92530 APN:377-420-002-3 MAP BOOK:377 PAGE/BLOCK:420 PARCEL:2 CHECK DIGIT:3 ZONING:M2 GROSS LOT/PARCEL SIZE:0.56 AC = APPOX 24,500 SF CONSTRUCTION TYPE:V-N SPRINKLERED OCCUPANCY CLASS:B & F-1 HAZARD SEVERITY ZONE:NO STORIES:1 BUILDING HEIGHT:24'-0" (28'-0" MAX) BUILDING O - SINGLE TENANT TOTAL GROSS FLOOR AREA = 6,141 SF LOT COVERAGE = 24.7% TRASH ENCLOSURES REQUIRED = 1.11 PROVIDED = 1 PARKING OFFICE AREA = 497 SF PARKING REQUIRED (1/250) = 1.99 SPACES DISPENSARY = 1,264 SF PARKING REQUIRED (1/250) = 5.01 SPACES MANUFACTURING = 3,856 SF PARKING REQUIRED (1/500) = 7.71 SPACES TOTAL REQUIRED PARKING = 14.71 (15 SPACES) TOTAL PARKING PROVIDED = 21 SPACES (2 ADA) LANDSCAPING LANDSCAPE AREA = 6,585 SF LOT COVERAGE (LANDSCAPE) = 26.8% PROJECT SUMMARY CITY: CITY OF LAKE ELSINORE (951-674-3124) ELECTRIC: SOUTHERN CALIFORNIA EDISON CO. (800-655-4555) GAS: SOUTHERN CALIFORNIA GAS CO. (909-335-7660) SEWER: EVM WATER DISTRICT (951-674-3146) TELEPHONE: SOUTHERN CA TELEPHONE COMPANY (951-693-1880) WATER: ELSINORE VALLEY MUNICIPAL WATER DISTRICT (951-674-3146) WASTE: CR & R Solid Waste & Receycling Service (800-755-8112) DATA: SPECTRUM (844-316-8554) UTILITY PROVIDERS SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 12" = 1'-0"S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:45:31 AM A00 TITLE SHEET 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 SHEET INDEX (PLANNING CUP) Sheet Number Sheet Name 0 PLANNING A00 TITLE SHEET A01 EXISTING SITE PLAN A02 EXISTING ENLARGED SITE PLAN A10 EXISTING FLOOR PLAN A11 PROPOSED FLOOR PLAN A13 EXISTING ROOF PLAN A20 EXISTING ELEVATIONS A30 EXISTING SECTIONS A81 FACILITY USE PLAN A91 SECURITY PLAN A92 FIRE EXIT & PROTECTION PLAN ATTENTION OWNERS/ CONTRACTORS 1) IT IS THE RESPONSIBILITY OF THE GENERAL AND SUB CONTRACTORS TO CAREFULLY EXAMINE ALL PLANS (ARCHITECTRAL, STRUCTURAL, GRADING, ELECTRICAL, MECHANICAL, ETC.), NOTES, SPECIFICATIONS, AND FIELD CONDITIONS PRIOR TO ANY BID, SIGNING OF CONTRACTS, AND COMMENCING OF CONSTRUCTION. 2) ANY QUESTION IN RELATION TO CLARIFICATION, OMISSION, AND DISCREPANCY SHOULD BE DIRECTED TO THE ARCHITECT OF RECORD. 3) NO CONTRACT SHALL BE SIGNED AND CONSTRUCTION SHALL NOT PROCEED BEFORE ALL CLARIFICATIONS, QUESTIONS, ETC. HAVE BEEN ANSWERED BY ARCHITECT. 4) THE ARCHITECT AND OWNER ARE NOT RESPONSIBLE FOR ANY EXTRA CHARGE / COST CAUSED BY THE CONTRACTOR'S FAILURE TO CLARIFY ISSUES PRIOR TO BIDDING AND SIGNING CONTRACT. 5) CONTRACTOR MAY PROVIDE ONLY PRELIMINARY BIDS BASED ON THIS PLAN IF THIS IS NOT APPROVED AND STAMPED BY THE CITY. FINAL BIDS SHALL BE BASED ON APPROVED PLANS ONLY. IF NO GENERAL CONTRACTOR IS RETAINED FOR THE JOB, KNOWLEDGEABLE PROJECT MANAGER, JOB SUPERVISOR TO ACT AS HIS AGENT AND ASSUME ALL RESPONSIBILITIES. PROPRIETARY NOTICE 1) ALL IDEAS, DESIGNS, ARRANGEMENTS, AND PLANS INDICATED OR REPRESENTED IN THIS DRAWING ARE OWNED BY, AND THE PROPERTY OF ATELIER ARCHITECTS, AND WERE CREATED, EVOLVED AND DEVELOPED FOR USE ON, AND IN CONNECTION WITH, THE SPECIFIED PROJECT. NONE OF SUCH IDEAS, DESIGNS, AND ARRANGEMENTS OR PLANS SHALL BE USED WITHOUT THE WRITTEN PERMISSION OF ATELIER ARCHITETS. 2) WRITTEN DIMENSIONS ON THESE DRAWINGS SHALL HAVE PRECEDENCE OVER SCALED DIMENSIONS. CONTRACTOR SHALL VERIFY AND BE RESPONSIBLE FOR ALL DIMENSIONS AND CONDITIONS ON THE JOB AND THIS OFFICE MUST BE NOTIFIED OF ANY AND ALL VARIANCES FROM THE DIMENSIONS AND CONDITIONS SHOWN BY THESE DRAWINGS. ARCHITECT:ATELIER ARCHITECTS FARSHAD AZARNOUSH 13743 VENTURA BLVD., STE.270 SHERMAN OAKS, CA 91423 PHONE: (818) 788-6522 E-MAIL: ATELIERARCHITECTS@SBCGLOBAL.NET 2016 (CBC) CALIFORNIA BUILDING CODE.(Volume I & II) 2016 (CPC) CALIFORNIA PLUMBING CODE. 2016 (CEC) CALIFORNIA ELECTRICAL CODE. 2016 (CMC) CALIFORNIA MECHANICAL CODE 2016 (CFC) CALIFORNIA FIRE CODE 2016 CALIFORNIA ENERGY CODE. 2016 CALIFORNIA GREEN BUILDING STANDARDS CODE. 2016 CALIFORNIA RESIDENTIAL CODE. 2016 CALIFORNIA ADMINISTRATIVE CODE. 2016 CALIFORNIA EXISTING BUILDING CODE. 2016 CALIFORNIA HISTORICAL CODE. 2016 CALIFORNIA REFERENCED STANDARDS CODE. CITY OF LAKE ELSINORE MUNICIPAL CODE CONSULTANTS ATTENTION OWNERS/CONTRACTORSCODE INFORMATION GREEN ORIGINS LE VICINITY MAP (AERIAL)VICINITY MAP BUILDING O 504 CENTAL AVENUE LAKE ELSINORE, CA 92530 NOT TO SCALE 504 CENTRAL AVENUE, LAKE ELSINORE, CA 92530 SCOPE OF WORK TENANT IMPROVEMENT OF AN EXISTING BUILDING ("O") TO A CANNABIS FACILITY WITH CULTIVATION, DISTRIBUTION, AND A DISPENSARY. Rev Description Date CITY: CITY OF LAKE ELSINORE (951-674-3124) ELECTRIC: SOUTHERN CALIFORNIA EDISON CO. (800-655-4555) GAS: SOUTHERN CALIFORNIA GAS CO. (909-335-7660) SEWER: EVM WATER DISTRICT (951-674-3146) TELEPHONE: SOUTHERN CA TELEPHONE COMPANY (951-693-1880) WATER: ELSINORE VALLEY MUNICIPAL WATER DISTRICT (951-674-3146) WASTE: CR & R Solid Waste & Receycling Service (800-755-8112) DATA: SPECTRUM (844-316-8554) UTILITY PROVIDERS SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 12" = 1'-0"S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:47:15 AM A01 EXISTING SITE PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 mjs GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 THIS PLAN CREATED BY OTHERS AND INCLUDED FOR REFERENCE. NO LIABILITY IS ASSUMED FOR THE ACCUARCY OF THESE DRAWINGS. OWNER OF RECORD NEARCAL CORP 512 CHANEY STREET, LAKE ELSINORE, CA 92530 P: 951-245-5400 (E) SUBJECT PROPERTY Rev Description Date SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 1" = 30'-0"S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:48:17 AM A02 EXISTING ENLARGED SITE PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 THIS PLAN CREATED BY OTHERS AND INCLUDED FOR REFERENCE. NO LIABILITY IS ASSUMED FOR THE ACCUARCY OF THESE DRAWINGS. EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 2 OF PARCEL MAP 30395, IN THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 213, PAGES 82 AND 83, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 377-420-002-3 VACANT LOT(E) 1-STORY 6141 SFNOT A PARTNOT A PARTNOT A PARTSUBJECT PROPERTY (E) LOADING DOORS (E) ENTRY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2021 (E) TRASH ENCLOSURE Rev Description Date SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:48:46 AM A10 EXISTING FLOOR PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 THIS PLAN CREATED BY OTHERS AND INCLUDED FOR REFERENCE. NO LIABILITY IS ASSUMED FOR THE ACCUARCY OF THESE DRAWINGS. Rev Description Date EXIT EXITEXITEXITEXIT EXIT 4 4 5 5 2 2 1 1 AA B B C C CLG 10'-0" LOBBY 1 CLG 10'-0" TRICK ENTRY 2 CLG 12'-0" SALES FLOOR (DISPENARY) 3 CLG 10'-0" STORAGE 4 CLG 10'-0" 499 SF HALL 5 CLG 10'-0" OFFICE 1 6 CLG 10'-0" RESTROOM 7 CLG 10'-0" QUARENTINE 8 CLG 10'-0" BREAK ROOM 9 CLG 10'-0" WATER MANAGEMENT 10 CLG 12'-0" 175 SF TRIM 11 CLG 10'-0" 80 SF OFFICE 2 12 CLG 12'-0" VEG / CLONE 13 CLG 12'-0" DRY 14 CLG 20'-0" CULTIVATION 1 15 CLG 20'-0" 791 SF CULTIVATION 2 16 CLG 20'-0" CULTIVATION 3 17 CLG 10'-0" FIRE RISER ROOM 18 7'-6"7'-6"7'-6"7'-6" 302.25 SF 262 SF 34'-0"34'-0"34'-0"34'-0"23'-6"23'-6"23'-6"23'-6"31'-6"31'-6"31'-6"31'-6"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" 89'-0"89'-0"89'-0"89'-0"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"89'-0"89'-0"89'-0"89'-0"TRUENSEWN6"6"6"6"7'-9"7'-9"7'-9"7'-9"23'-0"23'-0"23'-0"23'-0"28'-6"28'-6"28'-6"28'-6"29'-3"29'-3"29'-3"29'-3"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" ROOF ACCESS 8'-9"8'-9"8'-9"8'-9"9'-6"9'-6"9'-6"9'-6"5'-6"5'-6"5'-6"5'-6"10'-6"10'-6"10'-6"10'-6"5'-0"5'-0"5'-0"5'-0"28'-9"28'-9"28'-9"28'-9"5'-0"5'-0"5'-0"5'-0" 18'-0"18'-0"18'-0"18'-0"5'-0"5'-0"5'-0"5'-0"8'-6"8'-6"8'-6"8'-6" 13'-6"13'-6"13'-6"13'-6"4'-0"4'-0"4'-0"4'-0"8'-6"8'-6"8'-6"8'-6"5'-7"5'-7"5'-7"5'-7"18'-2"18'-2"18'-2"18'-2"(NTS)(NTS)(NTS)(NTS) 5555'-'-'-'-0000""""K FIRE DEPT CONNECTION 2'-3"2'-3"2'-3"2'-3"792.75 SF798.56 SF 76.31 SF 40.50 SF 117.56 SF 1234.13 SF TOTAL RETAIL 1305.38 SF 8'-0"8'-0"8'-0"8'-0"11'-0"11'-0"11'-0"11'-0"12'-3"12'-3"12'-3"12'-3"4'-6"4'-6"4'-6"4'-6"6'-0"6'-0"6'-0"6'-0"EXISTING WALL NEW PARTITION (OR IN-FILL) WALL NEW FULL-HEIGHT PARTITION WALL WALL LEGEND K KNOX BOX SECURITY CAMERA WALL PAC LIGHT FIXTURE (SECURITY) AUDIBLE ALARM FIRE EXIT PATH SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 As indicated S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:49:16 AM A11 PROPOSED FLOOR PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 Scale: 1/8" = 1'-0"1BLDG "O" - PROPOSED FLOOR PLAN OCCUPANT LOAD: OFFICE:497 sf / 100 =4.97 =5 DISPENSARY (RETAIL):1264 sf / 300 =4.21 =4 CULTIVATION (WAREHOUSE):3953 sf / 500 =7.90 =8 TOTAL =17 Rev Description Date 4 4 5 5 2 2 1 1 AA B B C C (E) 2-1/2 TON HVAC UNIT SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHTSKYLIGHT TRUENSEWN1/4" / 12"6" / 12"18'-1 3/4" 21'-0" 24'-0" 24'-0" 21'-0" 19'-6"19'-6" 22'-0" 22'-0" 23'-0" 21'-0" 23'-0" SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 1/8" = 1'-0"S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:49:41 AM A13 EXISTING ROOF PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 Scale: 1/8" = 1'-0"1(E) ROOF PLAN Rev Description Date SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:50:10 AM A20 EXISTING ELEVATIONS 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 THIS PLAN CREATED BY OTHERS AND INCLUDED FOR REFERENCE. NO LIABILITY IS ASSUMED FOR THE ACCUARCY OF THESE DRAWINGS. Rev Description Date SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:50:44 AM A30 EXISTING SECTIONS 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 THIS PLAN CREATED BY OTHERS AND INCLUDED FOR REFERENCE. NO LIABILITY IS ASSUMED FOR THE ACCUARCY OF THESE DRAWINGS. NOT APPLICABLE NOT APPLICABLE NOT APPLICABLE NOT APPLICABLE Rev Description Date EXIT EXITEXITEXITEXIT EXIT 4 4 5 5 2 2 1 1 AA B B C C LOBBY 1 TRICK ENTRY 2 SALES FLOOR (DISPENARY) 3 STORAGE 4 HALL 5 OFFICE 1 6 RESTROOM 7 QUARENTINE 8 BREAK ROOM 9 WATER MANAGEMENT 10 TRIM 11 OFFICE 2 12 VEG / CLONE 13 DRY 14 CULTIVATION 1 15 CULTIVATION 2 16 CULTIVATION 3 17 FIRE RISER ROOM 18 25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" 3'-0"3'-0"3'-0"3'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" 89'-0"89'-0"89'-0"89'-0"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"89'-0"89'-0"89'-0"89'-0"TRUENSEWNFACILITY USE LEGEND AUXILIARY CULTIVATION DISPENARY OFFICE ENTRY 0 34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 1/8" = 1'-0"S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:51:31 AM A81 FACILITY USE PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 Scale: 1/8" = 1'-0"1FACILITY USE PLAN SCHEDULE - FACILITY USE Room Number Room Name Area Department Comments 18 FIRE RISER ROOM 42 SF AUXILIARY 0 ENTRY 97 SF AUXILIARY AUXILIARY 139 SF 5 HALL 499 SF CULTIVATION 8 QUARENTINE 40 SF CULTIVATION 10 WATER MANAGEMENT 77 SF CULTIVATION 11 TRIM 175 SF CULTIVATION 12 OFFICE 2 80 SF CULTIVATION 13 VEG / CLONE 295 SF CULTIVATION 14 DRY 259 SF CULTIVATION 15 CULTIVATION 1 793 SF CULTIVATION 16 CULTIVATION 2 791 SF CULTIVATION 17 CULTIVATION 3 799 SF CULTIVATION CULTIVATION 3808 SF 2 TRICK ENTRY 41 SF DISPENARY 3 SALES FLOOR (DISPENARY) 1223 SF DISPENARY 4 STORAGE 30 SF DISPENARY DISPENARY 1294 SF 1 LOBBY 138 SF OFFICE 6 OFFICE 1 118 SF OFFICE 7 RESTROOM 56 SF OFFICE 9 BREAK ROOM 162 SF OFFICE OFFICE 474 SF Rev Description Date EXIT EXITEXITEXITEXIT EXIT 4 4 5 5 2 2 1 1 AA B B C C CLG 10'-0" 138 SF LOBBY 1 CLG 10'-0" 41 SF TRICK ENTRY 2 CLG 12'-0" 1223 SF SALES FLOOR (DISPENARY) 3 CLG 10'-0" 30 SF STORAGE 4 CLG 10'-0" 499 SF HALL 5 CLG 10'-0" 118 SF OFFICE 1 6 CLG 10'-0" 56 SF RESTROOM 7 CLG 10'-0" 40 SF QUARENTINE 8 CLG 10'-0" 162 SF BREAK ROOM 9 CLG 10'-0" 77 SF WATER MANAGEMENT 10 CLG 12'-0" 175 SF TRIM 11 CLG 10'-0" 80 SF OFFICE 2 12 CLG 12'-0" 295 SF VEG / CLONE 13 CLG 12'-0" 259 SF DRY 14 CLG 20'-0" 793 SF CULTIVATION 1 15 CLG 20'-0" 791 SF CULTIVATION 2 16 CLG 20'-0" 799 SF CULTIVATION 3 17 CLG 10'-0" 42 SF FIRE RISER ROOM 18 ROOF ACCESS 7'-6"7'-6"7'-6"7'-6" 302 SF 262 SF 25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" 3'-0"3'-0"3'-0"3'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" 89'-0"89'-0"89'-0"89'-0"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"89'-0"89'-0"89'-0"89'-0"TRUENSEWN34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"EXISTING WALL NEW PARTITION (OR IN-FILL) WALL NEW FULL-HEIGHT PARTITION WALL WALL LEGEND K KNOX BOX SECURITY CAMERA WALL PAC LIGHT FIXTURE (SECURITY) AUDIBLE ALARM FIRE EXIT PATH SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 As indicated S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:51:59 AM A91 SECURITY PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 Scale: 1/8" = 1'-0"1SECURITY PLAN NOTES: 1)VIDEO MONITORING EQUIPMENT TO BE LOCATED IN OFFICE # 1. 2) SECURITY COMPANY TO BE CHOSEN AFTER PLANNING CUP APPROVAL. 3)PER AGREEMENT WITH LANDLORD, ADDITIONAL CAMERA (S) TO BE PLACED ON ADJACENTS BUILDINGS FOR ADDITIONAL SECURITY SURVEILANCE. Rev Description Date EXIT EXITEXITEXITEXIT EXIT 4 4 5 5 2 2 1 1 AA B B C C LOBBY 1 TRICK ENTRY 2 SALES FLOOR (DISPENARY) 3 STORAGE 4 HALL 5 OFFICE 1 6 RESTROOM 7 QUARENTINE 8 BREAK ROOM 9 WATER MANAGEMENT 10 TRIM 11 OFFICE 2 12 VEG / CLONE 13 DRY 14 CULTIVATION 1 15 CULTIVATION 2 16 CULTIVATION 3 17 FIRE RISER ROOM 18 7'-6"7'-6"7'-6"7'-6" 302 SF 262 SF 25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"69'-0"25'-0"25'-0"25'-0"25'-0"31'-0"31'-0"31'-0"31'-0"33'-0"33'-0"33'-0"33'-0" 89'-0"89'-0"89'-0"89'-0"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"89'-0"89'-0"89'-0"89'-0"TRUENSEWN63'-6"63'-6"63'-6"63'-6"15'-6"15'-6"15'-6"15'-6"K 34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"34'-6"L = 1 1 0'- 1 0" L = 1 1 0'- 1 0" L = 1 1 0'- 1 0" L = 1 1 0'- 1 0" > 1 /3 = 8 3 '-6 1 /2 " B L D G S P R IN K L E R E D > 1 /3 = 8 3 '-6 1 /2 " B L D G S P R IN K L E R E D > 1 /3 = 8 3 '-6 1 /2 " B L D G S P R IN K L E R E D > 1 /3 = 8 3 '-6 1 /2 " B L D G S P R IN K L E R E D OCCUPANCY TYPES B F1 EXISTING WALL NEW PARTITION (OR IN-FILL) WALL NEW FULL-HEIGHT PARTITION WALL WALL LEGEND K KNOX BOX SECURITY CAMERA WALL PAC LIGHT FIXTURE (SECURITY) AUDIBLE ALARM FIRE EXIT PATH SCALE: PROJECT NUMBER: COPYRIGHT © ATELIER ARCHITECTS. AA RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS IN THESE DOCUMENTS. THESE DOCUMENTS ARE NOT TO BE REPRODUCED, CHANGED, OR COPIED IN ANY FORM OR MANNER WHATSOEVER WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION OF AA; NOR ARE THESE DOCUMENTS TO BE ASSIGNED TO ANY THIRD PARTY WITHOUT OBTAINING SAID WRITTEN PERMISSION AND CONSENT FROM AA. DRAWN BY: PROJECT NAME / ADDRESS CLIENT REVISIONS DRAWING TITLE DRAWING INFO SHEET DATE: a r c h i t e c t s 13743 VENTURA BLVD SUITE 270 SHERMAN OAKS CA - 91423 818.788.6522 THE GENERAL CONTRACTOR SHALL VERIFY ALL CONSTRUCTION DOCUMENTS, SITE DIMENSIONS AND CONDITIONS, AND ALL EXISTING UTILITY LOCATIONS AND SHALL NOTIFY ATELIER ARCHITECTS OF ANY DISCREPANCIES OR INCONSISTANCIES PRIOR TO STARTING WORK.NOT FOR CONSTRUCTIONPRINT DATE: ISSUED CUP Application 04/12/2018 As indicated S:\ATELIER PROJECTS\COMMERCIAL\LAKE ELSINORE (504 CENTRAL AVE)\02 SD\Lake Elsinore - SD.rvt4/11/2018 9:52:27 AM A92 FIRE EXIT & PROTECTION PLAN 18-103 04/03/2018 GREEN ORIGINS LE 504 Central Avenue Lake Elsinore, CA 92530 Author GOLE INDUSTRIES LLC dba GREEN ORIGINS LE 504 Central Avenue, Lake Elsinore, CA 92530 Scale: 1/8" = 1'-0"1FIRE EXIT & PROTECTION PLAN SCHEDULE - OCCUPANCY TYPE Room Number Room Name Occupancy Type Area Department Occupancy Comments 1 LOBBY B 138 SF OFFICE OFFICE 2 TRICK ENTRY B 41 SF DISPENARY RETAIL 3 SALES FLOOR (DISPENARY) B 1223 SF DISPENARY RETAIL 4 STORAGE B 30 SF DISPENARY MANUFACTURING 6 OFFICE 1 B 118 SF OFFICE OFFICE 7 RESTROOM B 56 SF OFFICE MANUFACTURING 9 BREAK ROOM B 162 SF OFFICE OFFICE 12 OFFICE 2 B 80 SF CULTIVATION OFFICE 18 FIRE RISER ROOM B 42 SF AUXILIARY MANUFACTURING 0 ENTRY F1 97 SF AUXILIARY MANUFACTURING 5 HALL F1 499 SF CULTIVATION MANUFACTURING 8 QUARENTINE F1 40 SF CULTIVATION MANUFACTURING 10 WATER MANAGEMENT F1 77 SF CULTIVATION MANUFACTURING 11 TRIM F1 175 SF CULTIVATION MANUFACTURING 13 VEG / CLONE F1 295 SF CULTIVATION MANUFACTURING 14 DRY F1 259 SF CULTIVATION MANUFACTURING 15 CULTIVATION 1 F1 793 SF CULTIVATION MANUFACTURING 16 CULTIVATION 2 F1 791 SF CULTIVATION MANUFACTURING 17 CULTIVATION 3 F1 799 SF CULTIVATION MANUFACTURING NOTES: 1)NO VISQUEEN OR MYLAR SHEETING TO BE USED. Rev Description Date 3OFROUGH SITEPLANA-1NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS1SHEET DATE :SCALE:OWNERPROJECT 1. DO NOT SCALE DRAWINGS.2. ALL DIMENSIONS ARE FOR BIDDING PURPOSES ONLY.ALL TRADES SHOULD FIELD VERIFY ALL MEASUREMENTS AND BRING ANYDISCREPANCIES TO THE IMMEDIATE ATTENTION OF THE ENGINEER ON RECORD BEFORE THECOMMENCEMENT OF THE JOB.3. GENERAL CONTRACTOR AND ALL TRADES MUST FIELD VERIFY ALL EXISTING CONDITIONS ANDDRAWINGS BEFORE THE COMMENCEMENT OF EVERY PORTION OF THE JOB AND REPORT ANYDISCREPANCIES TO THE IMMEDIATE ATTENTION OF THE ENGINEER ON RECORD.4. DIMENSIONS TAKE PRECEDENCE OVER SCALE.5. ALL WORK SHALL COMPLY WITH THE APPLICABLE GOVERNING CODES AS WELL AS ORDINANCES ANDPOLICIES ADOPTED BY THE CITY AND OR COUNTY/DISTRICT TO WHICH THE JOB BELONGS.6. PLUMBING, ELECTRICAL, MECHANICAL CONTRACTORS MUST SUBMIT ALL NECESSARY DRAWINGS TOTHE BUILDING DEPARTMENT OF FOR APPROVAL PRIOR TO COMMENCEMENT OF THEIR WORK.7. CONTRACTOR IS RESPONSIBLE FOR OBTAINING ALL PERMITS INCLUDING THOSE FOR DESIGN-BUILDSYSTEMS (ELECTRICAL, PLUMBING, ETC,) ALL OF WHICH SHALL COMPLY WITH ALL APPLICABLE CODEREQUIREMENTS.8. GENERAL CONTRACTOR TO COORDINATE WORK BETWEEN ALL TRADES TO FINISH THE JOB SMOOTHLYAND IN TIMELY MANNER.9. CONTRACTOR IS RESPONSIBLE FOR LOCATING ALL EXISTING UTILITIES.10. GENERAL CONTRACTOR IS RESPONSIBLE FOR PRESERVING ALL EXISTING TO REMAIN CONDITIONS ANDUTILITIES FROM DAMAGE AT ALL TIMES DURING CONSTRUCTION.11. CONTRACTOR TO REPAIR ANY DAMAGE TO EXISTING TO REMAIN CONDITIONS AT THEIR OWN COST.12. ALL DRAWINGS AND SPECIFICATIONS ARE INTENDED TO COMPLY WITH ALL GOVERNING CODES, LAWSAND ORDERS AS WELL AS ORDINANCES AND POLICIES ADOPTED BY THE CITY AND OR COUNTY/DISTRICTTO WHICH THE JOB BELONGS.13. ANY ALTERATIONS OR DEVIATIONS FROM THE DRAWINGS SHALL BE SUBMITTED IN WRITING TO THEENGINEER ON RECORD FOR APPROVAL BEFORE THE COMMENCEMENT OF WORK.14. CONTRACTOR TO NOTIFY IN WRITING THE ENGINEER ON RECORD OF ANY UNFORESEEN SIGHTCONDITIONS THAT MIGHT CALL FOR AN ALTERNATE METHOD OF CONSTRUCTION. NO CHANGES TO ORDEVIATION FROM THE DRAWINGS SIGNED BY THE ENGINEER ON RECORD CAN BE MADE WITHOUT THEWRITTEN PERMISSION OF THE ENGINEER ON RECORD.15. CONTRACTOR TO SUBMIT MATERIAL SAMPLES OR ANY MATERIAL SUBSTITUTIONS TO THE ENGINEERON RECORD PRIOR TO INSTALLATION.16. CONTRACTOR TO IMMEDIATELY INFORM THE OWNER OR THE ENGINEER ON RECORD OF ANYDISCOVERED UNFORESEEN FIELD CONDITIONS.17. NEW CONSTRUCTION SHALL NOT COME IN CONTACT WITH OR BEAR ON ANY DAMAGED PRE-EXISTINGFRAMING AND/OR FOUNDATION.18. GENERAL CONTRACTOR IS RESPONSIBLE FOR ALL PHASES AND CONDITONS OF CONSTRUCTION.19. CONTRACTOR IS FULLY RESPONSIBLE TO COMPLY WITH ALL GOVERNING APPLICABLE CODES:2016 CA BUILDING CODE (CBC)2016 CA RESIDENTIAL CODE (CRC)2016 CA MECHANICAL CODE (CMC)2016 CA ELECTRICAL CODE (CEC)2016 CA PLUMBING CODE (CPC)2016 CA GREEN BUILDING STANDARDS (CGBSC)2016 CA ENERGY EFFICIENCY STANDARDS (CEES)20. CONTRACTOR IS FULLY RESPONSIBLE TO COMPLY WITH ALL SAFETY MEASURES DURINGCONSTRUCTION.21. ALL SURFACES EXPOSED TO WEATHER SHALL HAVE WEATHER RESISTIVE BARRIER TO PROTECT THEINTERIOR WALL COVERING. EXTERIOR OPENINGS SHALL BE FLASHED TO MAKE THEM WEATHER PROOF.22. CONTRACTOR SHALL INSTALL FIRE BLOCKS AND DRAFT STOPS WHEREVER NEEDED.23. ATTIC VENTILATION OPENING SHALL BE COVERED WITH CORROSION RESISTANCE METAL MESH.24. CONTRACTOR SHALL KEEP AN AS-BUILD RECORD REFLECTING ALL CHANGES, ALTERATIONS ANDDEVIATION FROM ORIGINAL CONSTRUCTION DOCUMENTS AND RETURN TO THE ENGINEER ON RECORDAFTER THE COMPLETION OF ALL WORKS.GENERAL NOTESVICINITY MAP480 3RD STREET LAKE ELSINORE CA 4OFA-2NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS2SHEET DATE :SCALE:OWNER PROJECTFIRST & SECOND FLOOR PLAN480 3RD STREET LAKE ELSINORE CAFIRST FLOOR PLANSECOND FLOOR PLANFULL SPECTRUM BOTTLING Llc O/C DARREN HAGENTHT GROUP LLC. 4OFA-3NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS3SHEET DATE :SCALE:OWNER PROJECT NEW FIRST FLOOR PLAN480 3RD STREET LAKE ELSINORE CA NEW FIRST FLOOR PLANFULL SPECTRUM BOTTLING Llc O/C DARREN HAGEN THT GROUP LLC. 4OFA-4NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS4SHEET DATE :SCALE:OWNER PROJECT NEW SECONDFLOOR PLAN480 3RD STREET LAKE ELSINORE CA SECOND FLOOR PLANFULL SPECTRUM BOTTLING Llc O/C DARREN HAGEN THT GROUP LLC. 3OFA-2NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS2SHEET DATE :SCALE:OWNER PROJECT 311 WEST MINTHORN STREET LAKE ELSINORE CAEXISTINGFLOOR PLANLAKE ELSINORE CEDAR HILLS CONSORTIUM INC. C/O DANETTE M. LEONARD CORP COMMUNITY INVESTMENT 3OFA-3NGINEERINGSHEET TITLE:CAD DWG FILE:PROJECT NO:DRAWN BY :CHECKED BY:SM E REVISIONS3SHEET DATE :SCALE:OWNERPROJECT 311 WEST MINTHORN STREET LAKE ELSINORE CANEWFLOOR PLANLAKE ELSINORE CEDAR HILLS CONSORTIUM INC. C/O DANETTE M. LEONARD CORP COMMUNITY INVESTMENT