HomeMy WebLinkAboutItem No. 02 - Cannabis Facilities within the East Lake District of the General PlanPage 1 of 7
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 East Lake District of the General Plan – A
request to establish three (3) Cannabis related land use facilities within the
Business District of the General Plan.
Applicants:David Hargett (PA 2018-33)/Jim Sullivan(PA 2018-36)/Josh Grant(PA 2018-37)
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. 2018-01 FOR AN
APPROXIMATELY 1,550 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING
BUILDING LOCATED AT 31885 CORYDON AVE (APN: 370-031-018); and,
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, RECCOMENDING TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVAL OF CONDITIONAL USE PERMIT NO. 2018-05 TO ESTABLISH A
1,550 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT
31885 CORYDON AVE (APN: 370-031-018); 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. 2018-04 FOR AN
APPROXIMATELY 7,868 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING
BUILDING LOCATED AT 31875 CORYDON (APN: 370-051-032); 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. 2018-08 TO ESTABLISH A
7,868 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT
31875 CORYDON (APN: 377-051-032); 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. 2018-05 FOR AN
APPROXIMATELY 2,074 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING
BUILDING LOCATED AT 31877 CORYDON (APN: 370-051-016); and,
Cannabis Facilities – East Lake District
11/20/2018
Page 2 of 7
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, APPROVAL OF CONDITIONAL USE PERMIT NO. 2018-09 TO
ESTABLISH A 2,074 SQUARE FOOT CANNABIS FACILITY WITHIN AN EXISTING BUILDING
LOCATED AT 31877 CORYDON (APN: 377-051-016).
Discussion
Overview
The East Lake District, named after the East Lake Specific Plan, covers an approximately 3,240-
acre area at the southeastern end of Lake Elsinore. It is generally bordered by the Historic and
Riverview Districts to the north, the Ballpark District to the northeast, Corydon Street and Mission
Trail to the southeast, the Lakeland Village District Sphere to the southwest, and the lake to the
northwest (Figure EL-1). The East Lake District lies at the southwestern corner of both the City
limits and Sphere of Influence (SOI) boundary.
In the East Lake district, four (4) Cannabis Facilities are currently under consideration, with three
(3) totaling approximately 15,000 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 2018-33 (IE Licensing): A request by David Hargett to establish a 1,550 SF
Cannabis Facility within an existing building (Project). The facility will consist of 812 SF of
manufacturing space and 738 SF of warehouse and ancillary uses. The Project is generally
located at the northeast corner of the intersection Cereal St. and Corydon and more specifically
referred to as 31885 Corydon (APN: 370-031-018).
Planning Application 2018-36 (Veterans Organic Solutions, LLC): A request by Jim Sullivan to
establish a 7,868 SF Cannabis Facility within an existing two-story building located (Project). The
facility will consist of 3,863 SF of manufacturing space, an 840 SF dispensary, and 3,165 SF of
office and storage uses. The Project is generally located at the northwest corner of the intersection
Mission Trail and Corydon and more specifically referred to as 31875 Corydon (APN: 370-051-
032).
Planning Application 2018-37 (The Modern Leaf): A request by Joshua Grant to establish a 2,074
SF Cannabis Facility within an existing building located (Project). The facility will consist of 1,528
SF of cultivation space and 546 SF of support and ancillary uses. The Project is generally located
Project Location Size (SF)
PA 2018-33 31885 Corydon (APN: 370-031-018)1,550
PA 2018-36 31875 Corydon (APN: 370-051-032)7,868
PA 2018-37 31877 Corydon (APN: 370-051-016)2,074
11,492
Table 1
Total Building Area
Cannabis Facilities – East Lake District
11/20/2018
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at the northwest corner of the intersection Mission Trail and Corydon and more specifically
referred to as 31877 Corydon (APN: 370-051-008).
Analysis
General Plan Consistency
The Project sites have a General Plan land use designation of Limited Industrial (LI) and are
located within the East Lake District of the General Plan. The primary land uses are within the
East Lake Specific Plan (ELSP), which comprises 89% of the acreage in the East Lake District.
Within the ELSP, 35.15% of its area is devoted to residential uses of various densities, and 40%
of its area is designated for active and passive open space. The District also contains 98.7 acres
within the floodway and 22.2 acres of Limited Industrial. The primary goal of the East Lake is:
Integrate the future residential and commercial development with the recreational and
open space land use framework to create a cohesive master planned community.
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 East Lake district by
reinforcing the viability of the existing industrial hubs without impacting the master planned
residential communities 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 East Lake District has
been that of increased traffic loads. The street system within the East Lake District currently
consists of limited access to recreational facilities and Corydon Street in part due to the limited
amount of development within the East Lake District. The roadways, which form or are in close
proximity to the northeastern and southeastern areas of the East Lake District, include Malaga
Road, Mission Trail and Corydon Street. Grand Avenue is the major roadway to the south and
southwest, but is located within the Lakeland Village Sphere District. The future roadway network
is planned to be an efficient system that will improve traffic flow throughout the area. The East
Lake Specific Plan calls for the future development of a system of local streets and collectors,
connecting to the surrounding circulation network. Internal circulation will include a number of
local streets in no specific east west or north-south organization that are as yet, unidentified by
name. Two (2) larger roadways will be the westerly extension of Malaga Street, which will flow in
an east-west direction through the northern portion of the East Lake District, and the westerly
extension of Bundy Canyon Road to align with the southern extension of Diamond Drive. In order
Cannabis Facilities – East Lake District
11/20/2018
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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
The subject projects 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 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
Project AM PM Daily
PA 2018-33 8 9 15
PA 2018-36 11 22 403
PA 2018-37 3 3 9
Total 22 34 427
Cannabis Facilities – East Lake District
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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.
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.
Cannabis Facilities – East Lake District
11/20/2018
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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. 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,
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.
Cannabis Facilities – East Lake District
11/20/2018
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Exhibits
A – PA 2018-33 DA Resolution
B – PA 2018-33 CUP Resolution
C – PA 2018-33 Conditions of Approval
D – PA 2018-36 DA Resolution
E – PA 2018-36 CUP Resolution
F – PA 2018-36 Conditions of Approval
G – PA 2018-37 DA Resolution
H – PA 2018-37 CUP Resolution
I – PA 2018-37 Conditions of Approval
P – Vicinity Map
Q – Aerial Map
R – PA 2018-33 Project Plans
S – PA 2018-36 Project Plans
T – PA 2018-37 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 PLANNING
APPLICATION NO. 2018-33 (DEVELOPMENT AGREEMENT NO. 2018-01) FOR AN
APPROXIMATELY 1,550 SQUARE FOOT CANNABIS FACILITY WITHIN AN
EXISTING BUILDING LOCATED AT 31885 CORYDON AVE (APN: 370-031-018)
Whereas, David Hargett, IE Licensing has filed an application with the City of Lake Elsinore (City)
requesting approval of Planning Application No. 2018-33 (Development Agreement No. 2018-01
(Exhibit A) and Conditional Use Permit No. 2018-05) to establish an approximately 1,550 Square
Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of 812
SF of manufacturing space and 738 SF of warehouse and ancillary uses. The Project is generally
located at the northeast corner of the intersection Cereal and Corydon and more specifically
referred to as 31885 Corydon (APN: 370-031-018), 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 4
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. 2018-01:
1. It is consistent with the objectives, policies, general land uses and programs specified in
the General Plan and any applicable specific plan.
The proposed Development Agreement will help to offset the potential costs incurred by
the City associated with the establishment of a Cannabis related facility within an industrial
district. The Project site’s General Plan Land Use designation is Limited Industrial (LI).
The proposed Project is consistent the LI land use designation and with the objectives,
policies, general land uses and programs specified in the General Plan.
2. It is compatible with the uses authorized in, and the regulations prescribed for, the land
use district in which the real property is located.
The proposed Development Agreement will facilitate the establishment of the Cannabis
related facility within an existing building. The Project is located in the Limited Industrial
(LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning
designation, which is consistent with the applicable General Plan Land Use Designation.
The proposed use is a permitted use subject to the approval of a Conditional Use Permit
within the M-1 Zoning designation.
3. It is in conformity with public convenience, general welfare and good land use practices.
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 4
The proposed Development Agreement will facilitate the establishment of a Cannabis
related facility within an existing building. The proposed Project has been reviewed and
conditioned by all applicable City departments to reduce the potential for any adverse
effects to the health, safety and general welfare.
5. It will not adversely affect the orderly development of property or the preservation of
property values;
The proposed Development Agreement will facilitate the establishment of a Cannabis
related facility within an existing building. The proposed use has been analyzed and staff
has determined that the proposed use meets all applicable sections of the LEMC and will
complement the existing uses. The Project was found not to adversely affect the orderly
development of property or the preservation of property values.
6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.
The proposed Development Agreement includes all mandatory provisions required by
Government Code § 65865.2 and does not include any provisions that are not authorized
by the Development Agreement Act.
Section 4: Based upon the evidence presented, both written and testimonial, and the above
findings, the Commission hereby recommends that the Council find that the Project is consistent
with the MSHCP.
Section 5: Based upon the evidence presented, the above findings, and the Conditions of
Approval imposed upon the Project, the Commission hereby recommends that the Council
approve Development Agreement No. 2018-01.
Section 6: This Resolution shall take effect immediately upon its adoption.
Passed and Adopted 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 4
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
Development Agmt - IE Licensing, 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
IE LICENSING LLC
-1-
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND IE LICENSING 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 IE Licensing 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 31885
Corydon Road, Suite 140, in the City of Lake Elsinore, County of Riverside, State of California,
Assessor’s Parcel Number 370-031-018, which is within a manufacturing zoning district (the
“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, James W. Pruitt, Trustee of the James W. Pruitt lntervivos Trust dated
December 12, 1988 (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.
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P. Developer proposes to improve, develop, and use the Site for a Cannabis Business
(as defined below), in accordance with California Cannabis Laws (as defined below) and the
LEMC, as each may be amended from time to time (the “Project”).
Q. To strengthen the public planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the California
Legislature adopted Government Code section 65864 et seq. (the “Development Agreement
Statute”), which authorizes the City and an individual with an interest in real property to enter
into a development agreement that establishes certain development rights in real property that is
subject to a development agreement application.
R. Consistent with the requirements of the Development Agreement Statute, the City
adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”) authorizing the use of
and establishing the procedures and requirements for the consideration of development
agreements within the City.
S. LEMC, Section 19.12.010 requires submittal of an application along with
information and supporting data as requested by the Director of Community Development for
consideration of any development agreement. Developer has satisfied this requirement.
T. On 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.
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NOW, THEREFORE, in consideration of the mutual terms, obligations, promises,
covenants and conditions contained herein and for other valuable consideration, the sufficiency
of which is hereby acknowledged, the Parties, and each of them, agree as follows:
AGREEMENT
ARTICLE 1.
GENERAL PROVISIONS
1.1. Findings. City hereby finds and determines that entering into this Agreement
furthers the public health, safety, and general welfare and is consistent with the City’s General
Plan.
1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into
and made a part of this Agreement. In the event of any inconsistency between the Recitals and
the provisions of Articles 1 through 9 of this Agreement, the provisions of Articles 1 through 9
shall prevail.
1.3. Exhibits. The following “Exhibits” are attached to and incorporated into this
Agreement:
Exhibit A Legal Description
Exhibit B Site Plan
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.
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“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.
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“CUA” has the meaning as set forth in the Recitals, above.
“Developer” means IE Licensing 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.
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“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 James W. Pruit.
“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:
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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,
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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).
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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
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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.
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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
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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.
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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.
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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: IE Licensing LLC
32295 Mission Trail R8 #425
Lake Elsinore, CA 92530
Attn: David Hargett
-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]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set
forth below.
“CITY”
CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:
Mayor
ATTEST:
By:
Susan M. Domen, MMC, City Clerk
“DEVELOPER”
IE LICENSING LLC,
a California limited liability company
Date: By:
David Hargett, 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:
A CONDOMINIUM COMPRISING INTEREST IN UNIT C-4 AS SHOWN ON
THE CONDOMINIUM PLAN ("PLAN") RECORDED ON AUGUST 5, 2003,
AS INSTRUMENT NUMBER 2003-592580 IN THE RIVERSIDE COUNTY
OFFICIAL RECORDS AND AS FURTHER DESCRIBED IN THE
DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM
OWNERSHIP ("DECLARATION") RECORDED ON AUGUST 5, 2003. AS
INSTRUMENT NUMBER 2003-592581 IN THE RIVERSIDE COUNTY
OFFICIAL RECORDS.
EXCEPTING THEREFROM AND EXCEPTING EASEMENTS AS DEFINED
IN THE DECLARATION.
FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM
UNITS ON THE PLAN AND DESCRIBED IN THE DECLARATION OTHER
THAN THE UNIT CONVEYED ABOVE AND THE ASSOCIATION
COMMON AREA OR COMMON AREA AS DEFINED IN THE
DECLARATION OR SHOWN ON THE PLAN.
APN: 370-031-018
EXHIBIT B
SITE PLAN
[On Following Page]
SP-1SITE PLANPHOTOSOWNERScale 1/16"=1'-0"VICINITY MAPN
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ERTYGHJKBUILDING, EXISTING OFFICE AND ACCESSIBLE RESTROOM TO REMAIN.ADD NEW THREE COMPARTMENT SINK.EXISTING ELECTRICAL SERVICE AND MECHANICAL SYSTEM TO REMAIN.ADD NEW NON BEARING INTERIOR WALLS TO AN EXISTING MANUFACTURING PARKINGNO INCREASE IN PARKING USE.OWNER: PRUITT JAMES W92530SITE DATALot: CU4 Tract No: 30680 Abbreviated Description: LOT:CU4CITY:LAKE ELSINORE SUBD:INDUSTRIAL CONDOMINIUMTR#:30680 UNIT CU4 CM 131/081 INT IN COMMON LOT 2TR 30680 MB 205/058 City/Muni/Twp: LAKE ELSINOREOWNER: PRUITT JAMES WLEGAL DISCRIPTION:22400 SKYBREESE CTMURRIETA CA 9256231885 CORYDON RDLAKE ELSINORE. CASUITE 140CONSTRUCTION TYPE:OCCUPANCY:CODE:SQUARE FOOTAGE: USE:ZONE:CITY OF LAKE ELSINORE, CAJURISDICTION:2016 CALIFORNIA PLUMBING CODE2016 CALIFORNIA BUILDING CODE2016 CALIFORNIA ELECTRICAL CODE2016 CALIFORNIA MECHANICAL CODE2016 CALIFORNIA FIRE CODE2016 CALIFORNIA ENERGY CODE2016 CALIFORNIA GREEN CODECITY OF LAKE ELSINORE ORDINANCESIII B SPRINKLEREDSUITE 140 1500 SQUARE FEET INDUSTRIAL F-1 MANUFACTURINGMEDICAL CANIBUS EXTRACTIONPROJECT DATADRIVEWAYSUITE 140ADD NEW NON BEA
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G SIGNAGEANY SIGNAGE BY SEPARATE PERMIT103SITE PLAN123312IE LICENSING LLC
EXHIBIT C
FLOOR PLAN
[On Following Page]
10'-0"4'-5"17'-4"19'-1"19'-8"10'-4"1'-0"12'-1"7'-7"29'-5"490 S.F.180 S.F.142 S.F.427 S.F.3'-0"INVENTORY1'-6"EXTRACTIONA-1PLAN NOTESBLDGFLOOR PLANScale 1/4"=1'-0"IE LICENSING LLC31885 CORYDON RDLAKE ELSINOR. CASUITE 140RESTROOMOFFICEWAREHOUSEPACKAGINGFLOOR PLANLEGENDFIRE NOTES
EXHIBIT D
PROPERTY OWNER CONSENT
[On Following Page]
CC1NTACT l NFORI\1ATION
Property Owner* Applicant*
Name: James W. Pruit Name: IE Licensing , LLC
Mailing Address: 22400 Skybreeze Ct. Mailing Address: 32295 Mission Trail R8 #425 I
City/State/Zip Code: Murrieta ' CA 92562 City/State/Zip Code: Lake Elsinore CA 92530
I
Phone: (31 0) 990 -8942 Phone: (951 ) 245-9704
Email: j wpruit7 1 @ ya hoo.com Email: dave@innovativ e cbd .co m
Architect Engineer
Name: Jeffrey Jon sson Name: Jeffrey Jonsson
Mailing Address: 946 Call e Amanecer Uni t C Mailing Address: 946 Calle Amanecer Unit C
City/State/Zip Code: San Clemente CA 92673 City/State/Zip Code: San Clement e CA 92673
Phone: (949) 412-3955 Phone: (949 ) 4 12-3955
Email: jeffrey@jjo nss on.co m Email: jeffrey@jjonsson .com
*For additional contacts attach a separate page with APN(s), address, contact information, and signatures.
PROPERTY OWNER/APPLICANT SIGNATURE
I hereby certify that I am the applicant or designated agent named herein and that I am familiar with the rules and
regulations with respect to preparing and filing this petition for discretionary action, and that the statements and
answers contained herein and the information attached are in all respects true and accurate to the best of my
knowledge and belief. Please note all correspondence will be directed to the designated applicant.
The property owner further certifies that they are the legal owner of the property, consent to the filing of this appli-
cation, and have authorized the applicant below to represent them with respect to the processing of this applica-
tion.
Finally, I understand that incomplete applications cannot be transmitted or processed . To process a case in an expe-
ditious manner, a complete application package is necessary.
Property Owner(s)
Name (Print): Slgnatu:z;z ...,£J.~ Date:
J ames W . Pru it ~-11-/?
Name (Print): SignatCre'?'--' Date:
Applicant IE Li ce nsing, L LC
Name (Print): Signature: Date:
D a v id H a rg e tt, M ember
fllease check this box if you are willing to receive staff reports via emai/s
RESOLUTION NO. 2018-
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, RECCOMENDING TO THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE, CALIFORNIA, APPROVAL OF CONDITIONAL USE
PERMIT NO. 2018-05 TO ESTABLISH A 1,550 SQUARE FOOT CANNABIS
FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 31885 CORYDON AVE
(APN: 370-031-018)
Whereas, David Hargett, IE Licensing has filed an application with the City of Lake Elsinore (City)
requesting approval of Planning Application No. 2018-33 (Development Agreement No. 2018-01
(Exhibit A) and Conditional Use Permit No. 2018-05) to establish an approximately 1,550 Square
Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist of 812
SF of manufacturing space and 738 SF of warehouse and ancillary uses. The Project is generally
located at the northeast corner of the intersection Cereal and Corydon and more specifically
referred to as 31885 Corydon (APN: 370-031-018); 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. 2018-33 (Conditional Use Permit No. 2018-05).
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 2018-33/DA 2018-01/CUP 2018-05
PROJECT NAME:IE Licensing, LLC
PROJECT LOCATION:APN: 370-031-018
APPROVAL DATE:
EFFECTIVE DATE:
EXPIRATION DATE:
GENERAL CONDITIONS
1.Planning Application No. 2018-33 (Development Agreement No. 2018-01 and Conditional
Use Permit No. 2018-05) proposes to establish a 1,550 Square Foot (SF) Cannabis Facility
within an existing building (Project). The Project will consist of 812 SF of manufacturing
space and 738 SF of warehouse and ancillary use space. The Project is generally located
at the northeast corner of the intersection Cereal and Corydon and more specifically referred
to as 31885 Corydon (APN: 370-031-018).
2.Conditional Use Permit No. 2018-05 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 2018-05
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 2018-05 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. 2018-05 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
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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
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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
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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
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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.
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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
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o Means of egress cannot be concealed in any way.
o Exit doors and their function (these cannot be eliminated without prior
approval).
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
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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.
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.
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44.The following signs in measurements of not less than eight by 10 inches shall be clearly and
legibly posted in a conspicuous location inside the cannabis site where they will be visible
to members and customers in the normal course of a transaction, stating:
Smoking, ingesting or consuming cannabis on this property or within 20 feet of the
cannabis facility is prohibited.
Drinking, ingesting or consuming alcohol on this property or within 20 feet of the
cannabis facility is prohibited.
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
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documents the present location, amounts, and descriptions of all cannabis and cannabis
products for all stages of the production or manufacturing, laboratory testing and distribution
processes. Subject to any restrictions under the Health Insurance Portability and
Accountability Act (HIPPA), the owner/operator shall allow City officials to have access to
the business's books, records, accounts, together with any other data or documents relevant
to its permitted medical marijuana activities, for the purpose of conducting an audit or
examination. Books, records, accounts, and any and all relevant data or documents will be
produced no later than twenty-four (24) hours after receipt of the City's request, unless
otherwise stipulated by the City.
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
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58.No person having responsibility for the operation of a cannabis business, shall impede,
obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review
or copy records, recordings or other documents required to be maintained by a medical
marijuana business under this chapter or under state or local law. It is also unlawful for a
person to conceal, destroy, deface, damage, or falsifies any records, recordings or other
documents required to be maintained by a cannabis business under state or local law.
59.The City Manager or their designees may enter this business at any time during the hours
of operation without notice, and inspect the location of this business as well as any
recordings and records required to be maintained pursuant to LEMC or under applicable
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.
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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. 2018-04 FOR AN APPROXIMATELY 7,868 SQUARE FOOT
CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 31875
CORYDON (APN: 370-051-032)
Whereas, Jim Sullivan, Veterans Organic Solutions, LLC has filed an application with the City of
Lake Elsinore (City) requesting approval of Planning Application No. 2018-36 (Development
Agreement No. 2018-04 (Exhibit A) and Conditional Use Permit No. 2018-08) to establish an
approximately 7,868 Square Foot (SF) Cannabis Facility within an existing building (Project). The
Project will consist will consist of 3,863 SF of manufacturing space, an 840 SF dispensary, and
3,165 SF of office and storage uses. The Project is generally located at the northwest corner of
the intersection Mission Trail and Corydon and more specifically referred to as 31875 Corydon
(APN: 370-051-032); 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 4
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 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. 2018-04:
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 4
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. 2018-04.
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 4
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
Development Agmt - Veterans Organic Solutions 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
VETERANS ORGANIC SOLUTIONS LLC
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DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND VETERANS ORGANIC SOLUTIONS 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 Veterans Organic Solutions 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.
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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 31875
Corydon Road, Suite 120, in the City of Lake Elsinore, County of Riverside, State of California,
Assessor's Parcel Number 370-051-008, 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, Fredrick T. Scalzo and Donna M. Ostermiller, co-Trustees of The
Martin E. & Marion E. Scalzo Trust dated January 27, 1987 (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.
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P. Developer proposes to improve, develop, and use the Site for a Cannabis Business
(as defined below), in accordance with California Cannabis Laws (as defined below) and the
LEMC, as each may be amended from time to time (the “Project”).
Q. To strengthen the public planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the California
Legislature adopted Government Code section 65864 et seq. (the “Development Agreement
Statute”), which authorizes the City and an individual with an interest in real property to enter
into a development agreement that establishes certain development rights in real property that is
subject to a development agreement application.
R. Consistent with the requirements of the Development Agreement Statute, the City
adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”) authorizing the use of
and establishing the procedures and requirements for the consideration of development
agreements within the City.
S. LEMC, Section 19.12.010 requires submittal of an application along with
information and supporting data as requested by the Director of Community Development for
consideration of any development agreement. Developer has satisfied this requirement.
T. On 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.
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NOW, THEREFORE, in consideration of the mutual terms, obligations, promises,
covenants and conditions contained herein and for other valuable consideration, the sufficiency
of which is hereby acknowledged, the Parties, and each of them, agree as follows:
AGREEMENT
ARTICLE 1.
GENERAL PROVISIONS
1.1. Findings. City hereby finds and determines that entering into this Agreement
furthers the public health, safety, and general welfare and is consistent with the City’s General
Plan.
1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into
and made a part of this Agreement. In the event of any inconsistency between the Recitals and
the provisions of Articles 1 through 9 of this Agreement, the provisions of Articles 1 through 9
shall prevail.
1.3. Exhibits. The following “Exhibits” are attached to and incorporated into this
Agreement:
Exhibit A Legal Description
Exhibit B Site Plan
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.
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“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.
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“CUA” has the meaning as set forth in the Recitals, above.
“Developer” means Veterans Organic Solutions 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.
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“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 Fredrick T. Scalzo and Donna M. Ostermiller, co-
Trustees of The Martin E. & Marion E. Scalzo Trust dated January 27, 1987.
“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.
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1.8. Termination. This Agreement shall terminate upon the occurrence of any of the
following events:
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
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which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an
amendment to this Agreement but mere ministerial clarifications; therefore public notices and
hearings shall not be required. The City Manager shall be authorized, upon consultation with,
and approval of, the Developer, to determine whether a requested clarification may be
effectuated pursuant to this Section or whether the requested clarification is of such character to
constitute an amendment to this Agreement which requires compliance with the provisions of
Section 1.9(b) below.
b. Amendment. Subject to the notice and hearing requirements of the
Government Code, this Agreement may be modified or amended from time to time only with the
written consent of the Developer and the City or their successors and assigns in accordance with
the provisions of the Development Agreement Ordinance and the Development Agreement
Statute.
1.10. Fees. Developer agrees to pay all Regulatory Fees, Community 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
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obtaining the Conditional Use Permit allowing for the operating of a “cannabis business” (as
defined in Section 17.156.030 of the LEMC).
2.6. Cannabis Business Permit. Pursuant to LEMC, Section 17.156.040, no person
may engage in a “cannabis business” in the City without obtaining a Cannabis Business Permit.
2.7. State Cannabis License. Pursuant to California Cannabis Laws, Developer shall
not engage in the permitted uses set forth above pertaining to the Project on the Site without first
obtaining a State Cannabis License necessary to conduct the type of Cannabis Business on the
Site as authorized by the Cannabis Business Permit.
ARTICLE 3.
APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
3.1. Rules on Permitted Uses. Unless otherwise provided in this Agreement, the
City’s ordinances, resolutions, rules, regulations, and official policies governing the permitted
uses of the Site and the maximum height, bulk, and size of proposed buildings related to the
Project on the Site shall be those in force and effect at the time 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
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will attempt to preserve the terms of this Agreement and the rights of Developer derived from
this Agreement to the maximum feasible extent while resolving the conflict. If City, in its
judgment, determines it necessary to modify this Agreement to address such conflict, City shall
have the right and responsibility to do so, and shall not have any liability to Developer for doing
so or be considered in breach or default of this Agreement. City also agrees to process, in
accordance with the provisions of this Agreement, Developer’s proposed changes to the Project
that are necessary to comply with such federal or state law and that such proposed changes shall
be conclusively deemed to be consistent with this Agreement without further need for any
amendment to this Agreement.
3.5. Health and Safety Emergencies. In the event that any future public health and
safety emergencies arise with respect to the development contemplated by this Agreement, City
agrees that it shall attempt, if reasonably possible as determined by 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
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commensurate public benefits for the community (“Community Benefits”). Accordingly, City
and Developer recognize and agree that but for Developer’s payments as provided herein, City
would not and could not approve use of the Site for the Project as provided by this Agreement.
City’s approval of this Agreement is in reliance upon and in consideration of Developer’s
agreement to make the payments required hereunder.
4.2. Community Benefits Fee. In addition to Developer’s obligation to pay the City
through its Regulatory Fees, Developer shall be obligated to provide Community Benefits as
follows, which shall be referred to as the “Community Benefits Fee”:
a. Community Benefits Fee. Concurrent with the Term Commencement
Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to
the following fee schedule:
All Cannabis Business
activities
$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.
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4.4. Interest on Unpaid Non-Performance Penalty; Past Due Community Benefits
Fees. If Developer fails to pay the Non-Performance Penalty and all past due Community
Benefits Fees after City has delivered the Notice of Non-Performance Penalty, then, in addition
to the principal amount of the Non-performance Penalty and past due Community Benefit Fees,
Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on
the principal amount of the Non-Performance Penalty and past due Community Benefit Fees,
from a date fifteen (15) days following delivery of the Notice of Non-performance Penalty.
Notwithstanding the foregoing provisions of this Section 4.4, in no event shall the rate of interest
payable by Developer exceed the maximum rate of interest permitted to be charged under
applicable law.
ARTICLE 5.
INSURANCE AND INDEMNIFICATION
5.1. General Liability Insurance. Developer shall maintain comprehensive general
liability insurance issued by a California admitted insurance courier whose Best Insurance Guide,
current edition insurance rating is not less than “B+(vii)” with a per-occurrence combined single
limit of not less than Two Million Dollars ($2,000,000) with a claim deduction not more than One
Hundred Thousand Dollars ($100,000) per claim. Such insurance policy shall name the City and
City’s elected and appointed councils, boards, commissions, legislative bodies, officials,
employees, and representatives as “Additional Insureds” by endorsement with respect to the
performance of this Agreement and shall include either a severability of interest clause or cross-
liability endorsement and other customary and reasonable endorsements and provisions approved
by the City’s risk manager.
5.2. Workers’ Compensation Insurance. Developer shall maintain workers’
compensation insurance for all its employees employed at or on the Project. Developer shall
require each contractor and subcontractor working at or on the Project to provide workers’
compensation insurance for its respective employees. Developer indemnification of City set forth
in Section 5.4 of this Agreement shall apply to Developer’s failure to maintain any such
insurance.
5.3. Evidence of Insurance. Evidence of the insurance in favor of the City required
under Section 5.1 shall be provided to the City as of the Effective Date. Thereafter no Cannabis
Business Permit for the Project shall be valid unless and until Developer furnishes satisfactory
evidence of the other insurance required in Article 5 of this Agreement. In each case, the evidence
of insurance provided to the City shall include satisfactory evidence that the insurance carrier
shall 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
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such claims, costs, and liabilities are caused by the sole negligence or willful misconduct of the
City. The Developer agrees that it shall be responsible for all costs incurred by the City in the
event of a third-party challenge related to such claims, costs, or liabilities.
5.5. Failure to Indemnify. The Developer’s failure to indemnify the City, when
required by this Agreement, shall constitute a material breach of this Agreement and of any
applicable Conditional Use Permit, Cannabis Business Permit, and Additional City Approvals,
which shall entitle the City to all remedies available under law, including, but not limited to,
specific performance and damages. Failure to indemnify shall constitute grounds upon which the
City may rescind its approval of any entitlement, permit, or license related to the Project, or any
portion thereof, and a waiver of Developer’s right to file a claim, action, or proceeding against the
City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials,
employees, and representatives based upon the City’s rescission or revocation of any applicable
Conditional Use Permit, Cannabis Business Permit, and Additional City Approvals, or City’s
failure to defend any claim, action, or proceeding based upon Developer’s failure to indemnify the
City.
5.6. Waiver of Damages; Referendum. Notwithstanding anything in this Agreement
to the contrary, the Parties acknowledge that City would not have entered into this Agreement had
it been exposed to liability for damages from the Developer and, therefore, the Developer hereby
waives all claims for damages against City for breach of this Agreement. The approvals
(including development agreements) must be approved by the City Council and that, under law,
the City Council's discretion to vote in any particular way may not be constrained by contract.
The Developer therefore waives all claims for damages against City in the event that this
Agreement or any Project approval is: (1) not approved by the City Council or (2) is approved by
the City Council, but with new changes, amendments, conditions, or deletions to which Developer
is opposed. Developer further acknowledges that, as an instrument which must be approved by
ordinance, a development agreement is subject to referendum; and that, under law, the City
Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance
may not be constrained by contract, and Developer waives all claims for damages against City in
this regard.
5.7. Bankruptcy. The obligations of this Agreement shall not be dischargeable in
bankruptcy.
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.
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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.
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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: Veterans Organic Solutions LLC
31875 Corydon Road, Suite 120
Lake Elsinore, CA 92530
Attn: Jim Sullivan
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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]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set
forth below.
“CITY”
CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:
Mayor
ATTEST:
By:
Susan M. Domen, MMC, City Clerk
“DEVELOPER”
VETERANS ORGANIC SOLUTIONS LLC,
a California limited liability company
Date: By:
Jim Sullivan, Manager
Date: By:
Daniel A. Wise, 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:
A CONDOMINIUM COMPRISING INTEREST IN UNIT #E-2 AS SHOWN
ON THE CONDOMINIUM PLAN RECORDED JUNE 2, 2005, AS
INSTRUMENT NO. 05-441925 IN THE RIVERSIDE COUNTY OFFICIAL
RECORDS (“PLAN”) AND AS FURTHER DESCRIBED IN THE
DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM
OWNERSHIP RECORDED ON AUGUST 5, 2003 INSTRUMENT NO. 03-
592581 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND AS
AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF
RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP
RECORDED ON MAY 27, 2005 AS INSTRUMENT NO. 05-423404 IN THE
RIVERSIDE COUNTY OFFICIAL RECORDS (COLLECTIVELY, THE
“DECLARATION”),WHICH CONDOMINIUM IS LOCATED ON THE REAL
PROPERTY DESCRIBED AS PARCEL 2 AS SHOWN BY RECORD OF
SURVEY ON FILE IN BOOK 73 PAGE 44 OF RECORDS OF SURVEY,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED
IN THE DECLARATION.
FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM
UNITS ON THE PLAN AND DESCRIBED IN THE DECLARATION OTHER
THAN THE UNIT ABOVE AND THE ASSOCIATION COMMON AREA OR
COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON
THE PLAN.
APN: 370-051-008
EXHIBIT B
SITE PLAN
[On Following Page]
EXHIBIT C
FLOOR PLAN
[On Following Page]
EXHIBIT D
PROPERTY OWNER CONSENT
[On Following Page]
Martin E.and Marion E. Scalzo Trust
C/O Donna M. Ostermiller Trustee
P. O. Box 1660
San Juan Capistrano CA,92693
March 1, 2018
Veterans Organic Solutions LLC.
C/O Jim Sullivan
5102 Wisteria Drive
Oceanside,CA92056
Dear Veterans Organic Solutions LLC:
This letter of intent sets forth the terms on which the Trustees of the Martin E.&
Marion E.ScalzoTrust are prepared to leasethe real property located at 31876 Corydon St.,
Lake Elsinore, CA92530, Suite 120 (the "Property") to Veterans Organic Solutions,LLC
("Tenant")
1. Lessee: Veterans Organic Solutions,LLCsubject to Lessor's review and satisfaction of
the proposed Lessee'sfinancial condition and capacity.
2.Lessor: The Trustees of the Martin E.&Marion E.ScalzoTrust ("Lessor")
3. Term: 5 years, with 4 options to renew the Leasefor an additional 5 years, each.
4.Monthly BaseRent:$12,136.00, increased 2%each year.
5.BaseRent Commencement: June 1, 2018,or within 30 days of the City of Lake
Elsinore's issuance of a business license to Tenant.
6. ExclusiveRight to Negotiate: The Letter of Intent shall grant an ExclusiveRight to
Negotiate a lease of the Property for a period of thirty (30) days from the date of execution of
the Letter of Intent.
6B. Property use to be LicensedCannabis/Marijuana micro business.
7.Security Deposit: Lesseeagreesto pay Lessor$20,000 (check),asaSecurity Deposit
upon execution of the Lease.All or any portion of the security deposit may be used, as
reasonably necessary,to (1) cure Tenant's default in paymentof Rent (which includes late
charges, NSFfees or other sums due),(2) repair damage, excluding ordinary wear and tear,
caused by Tenant or by a guest or licensee of Tenant,(3) clean the Property,if necessary, upon
termination of the tenancy;and (4) replace or return personal property or appurtenances.
I
SECURITYDEPOSITSHALLNOT BE USEDBYTENANT I N LIEUOFPAYMENTOFLASTMONTHS
RENT.If all or any portion of the security deposit is used during the tenancy,Tenant agreesto
reinstate the total security deposit within 5 days after written notice is delivered to Tenant.
Within 30 days after Tenant vacates the Premises,Lessorshall (1) furnish Tenant an itemized
statement indicating the amount of any security deposit received and the basis for its
disposition and supporting documentation asrequired by California Civil Code section 1950; and
(2) return any remaining portion of the security deposit to Tenant.No interest will be paid on
any security deposit under required by local law.
8. Utilities and Maintenance: Lesseeshall pay all real estate taxes,building insurance, and
maintenance on the property in addition to any normal fees that are expected including but not
limited to rent,utilities, maintenance,etc.
9. Assignment and Subletting: Lessorshall have the right to assignand/or sublease the
Property.Lesseeshall have the right to assignand/or sublease the Property,only with Lessor's
prior written consent, not to be unreasonably withheld, provided that Lesseeshall at all times
remain fully responsible and liable for the payment of the rent and for compliance with all other
obligations under the LeaseAgreement.
10.Insurance:Lessee,at Lessee'ssole expense,shall procure and maintain property
insurance on its improvements and casualty and commercial general liability insurance on the
Property and shall name Lessor asadditionally insured.
11. Property Information:Lessor agreesto provide Lesseewith all information in Lessors
possession with respect to the Property.
12. License:Lesseeagrees tb obtain and maintain any licenses necessaryto conduct
Lessee'sbusiness operations.
13. Lesseeshall have a right of first refusal in the event the Property is placed for sale.
This letter is solely intended as asummary of the basiceconomic terms and conditions of the
proposed Lease,and it is understood and agreed that neither party is under binding obligation
to the other until a Leaseacceptable to the Lesseeand Lessor has been approved by Lessorand
mutually executed.The parties agree that neither party will incur expense in reliance on the
terms contained in this letter and both parties acknowledge and agree that any such expenses
will not be reimbursed by the other party.
Donna Ostermiller (Trustee ofthe Martin E.&Marion E. Scalzo Trust)
I
CALIFORNIA ALL- PURPOSE'
CERTIFICATE OF ACKNOWLEDGMENT
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 {)(tVIf)G
On 03/0 S/zo,cg
}
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.
COMM...2231267 0NOTARY PUBlIC-CALIFORNIA -iORANGE COUNTY WMyTerm Exp. Feb. 15,202!...1
DESCRIPTION OF THE ATTACHED DOCUMENT
(Title or description of attached document)
(Title or description of attached document continued)
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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. 2018-08 TO ESTABLISH A 7,868 SQUARE FOOT CANNABIS
FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 31875 CORYDON
(APN: 377-051-032)
Whereas, Jim Sullivan, Veterans Organic Solutions, LLC has filed an application with the City of
Lake Elsinore (City) requesting approval of Planning Application No. 2018-36 (Development
Agreement No. 2018-04 (Exhibit A) and Conditional Use Permit No. 2018-08) to establish an
approximately 7,868 Square Foot (SF) Cannabis Facility within an existing building (Project). The
Project will consist will consist of 3,863 SF of manufacturing space, an 840 SF dispensary, and
3,165 SF of office and storage uses. The Project is generally located at the northwest corner of
the intersection Mission Trail and Corydon and more specifically referred to as 31875 Corydon
(APN: 370-051-008); 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-____
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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. 2018-36 (Conditional Use Permit No. 2018-08).
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-____
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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 2018-36/DA 2018-04/CUP 2018-08
PROJECT NAME:Veterans Organic Solutions
PROJECT LOCATION:APN: 377-051-008
APPROVAL DATE:
EFFECTIVE DATE:
EXPIRATION DATE:
General Conditions
1.Planning Application No. 2018-36 (Development Agreement No. 2018-04 and Conditional
Use Permit No. 2018-08) proposes to establish an approximately 7,868 Square Foot (SF)
Cannabis Facility within an existing building (Project). The Project will consist will consist of
3,863 SF of manufacturing space, an 840 SF dispensary, and 3,165 SF of office and storage
uses. The Project is generally located at the northwest corner of the intersection Mission
Trail and Corydon and more specifically referred to as 31875 Corydon (APN: 370-051-008).
2.Conditional Use Permit No. 2018-08 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 2018-08
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 2018-08 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. 2018-08 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
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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
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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
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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
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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.
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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).
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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.
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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
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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
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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
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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.
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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. 2018-05 FOR AN APPROXIMATELY 2,074 SQUARE FOOT
CANNABIS FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 31877
CORYDON (APN: 370-051-016)
Whereas, Joshua Grant, the Modern Leaf has filed an application with the City of Lake Elsinore
(City) requesting approval of Planning Application No. 2018-37 (Development Agreement No.
2018-05 (Exhibit A) and Conditional Use Permit No. 2018-09) to establish an approximately 2,074
Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist
will consist of 1,528 SF of cultivation space and 546 SF of support and ancillary uses. The Project
is generally located at the northwest corner of the intersection Mission Trail and Corydon and
more specifically referred to as 31877 Corydon (APN: 370-051-016); 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 4
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. 2018-05:
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 4
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. 2018-05.
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 4
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
Development Agmt - Modern Leaf 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
MODERN LEAF CULTURE, INC.
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DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND MODERN LEAF CULTURE, 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 Modern Leaf Culture, 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.
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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 31877
Corydon Road, Suite 120 in the City of Lake Elsinore, County of Riverside, State of California,
Assessor’s Parcel Number 370-051-016-7, 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, Joshua Grant (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.
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P. Developer proposes to improve, develop, and use the Site for a Cannabis Business
(as defined below), in accordance with California Cannabis Laws (as defined below) and the
LEMC, as each may be amended from time to time (the “Project”).
Q. To strengthen the public planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the California
Legislature adopted Government Code section 65864 et seq. (the “Development Agreement
Statute”), which authorizes the City and an individual with an interest in real property to enter
into a development agreement that establishes certain development rights in real property that is
subject to a development agreement application.
R. Consistent with the requirements of the Development Agreement Statute, the City
adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”) authorizing the use of
and establishing the procedures and requirements for the consideration of development
agreements within the City.
S. LEMC, Section 19.12.010 requires submittal of an application along with
information and supporting data as requested by the Director of Community Development for
consideration of any development agreement. Developer has satisfied this requirement.
T. On 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.
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NOW, THEREFORE, in consideration of the mutual terms, obligations, promises,
covenants and conditions contained herein and for other valuable consideration, the sufficiency
of which is hereby acknowledged, the Parties, and each of them, agree as follows:
AGREEMENT
ARTICLE 1.
GENERAL PROVISIONS
1.1. Findings. City hereby finds and determines that entering into this Agreement
furthers the public health, safety, and general welfare and is consistent with the City’s General
Plan.
1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into
and made a part of this Agreement. In the event of any inconsistency between the Recitals and
the provisions of Articles 1 through 9 of this Agreement, the provisions of Articles 1 through 9
shall prevail.
1.3. Exhibits. The following “Exhibits” are attached to and incorporated into this
Agreement:
Exhibit A Legal Description
Exhibit B Site Plan
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.
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“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.
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“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 Joshua Grant.
“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:
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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,
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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).
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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
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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.
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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
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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.
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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.
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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.
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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: Modern Leaf Culture, Inc.
31877 Corydon, Suite 120
Lake Elsinore, CA 92595
Attn: Joshua Grant
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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.
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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”
MODERN LEAF CULTURE, INC.,
a California corporation
Date: By:
Joshua Grant, President
Date: By:
Ashley Grant, Secretary/Treasurer
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:
A CONDOMINIUM COMPRISING INTEREST IN UNIT #F-2 AS SHOWN ON THE
CONDOMINIUM PLAN RECORDED ON JUNE 2, 2005, AS INSTRUMENT NUMBER
2005-0441925 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS ("PLAN") AND AS
FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL
CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003 INSTRUMENT
NUMBER 2003-592581 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND AS
AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR
BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS
INSTRUMENT NUMBER 2005-0423404 IN THE RIVERSIDE COUNTY OFFICIAL
RECORDS (COLLECTIVELY, THE "DECLARATION"), WHICH CONDOMINIUM IS
LOCATED ON THE REAL PROPERTY DESCRIBED AS PARCEL 2 AS SHOWN BY
RECORD OF SURVEY ON FILE IN BOOK 73 PAGE 44 OF RECORDS OF SURVEY,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE
DECLARATION.
FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON
THE PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT
CONVEYED ABOVE AND THE ASSOCIATION COMMON AREA OR COMMON AREA
AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN.
APN: 370-051-016-7
EXHIBIT B
SITE PLAN
[On Following Page]
BUILDING "F"(SINGLE-STORY)31877CORYDON RD.12,296.55 SFBUILDING "G"(SINGLE-STORY)31879CORYDON RD.10,146.38 SFBUILDING "H"(SINGLE-STORY)31881CORYDON RD.14,442.47 SFBUILDING "D"(SINGLE-STORY)31883CORYDON RD.12,854.89 SFBUILDING "E"(SINGLE-STORY)31875CORYDON RD.39,138.56 SFPROPERTY LINE 707.23'N53°25'00WPROPERTY LINE 707.44'N53°25'00"WPROPERTY LINE 360.00'N36°33'00"E
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)EXISTING DRIVE AISLE TOADJACENT PROPERTY TO REMAINEXISTING DRIVE AISLE TOADJACENT PROPERTY TO REMAIN80'-0"ROW5'-11"EXISTING SIDEWALKEXISTING STREET LIGHT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAIN30'-0"PL TO CLEXISTING ACCESSIBLERAMP FROM ROW15'-0"7'-6"2
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"18'-0"EXITAPN: 370-051-016-7LEGAL DESCRIPTION:LOT:2 CITY:LAKEELSINORE 6.14 ACRESM/L IN PAR 2 RS 073/044EXISTING 6' HIGH CHAINLINK FENCE TO REMAIN11'-634"19'-378"
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8"66'-0"EXISTING LOADINGDOOR TO REMAINM1 - LIMITED MANUFACTURING(LIGHT INDUSTRIAL)M1 - LIMITED MANUFACTURING(LIGHT INDUSTRIAL)SP - SPECIFIC PLAN( GRADED UN-DEVELOPMENT)A101SITE PLAN -EXISTING31SCALE: 1" = 40'SITE PLAN - EXISTINGOUTLINE OF PROPOSED RENOVATION/REMODELPROPERTY LINESITE DRAINAGE PATTERNSITE PLAN LEGENDA.The site plan is for informational and general site reference only.Refer to other construction documents for complete scope ofwork.B. Before commencing any site foundation or slab cutting orexcavation, the contractor shall verify and mark locations of all siteutilities, dimensions and conditions. These include but are notlimited to property lines, setback location to all new or existingwalls, easements (if any), existing site utilities, including water,sewer, gas and electrical lines and any other new or existing siteitems which could affect in any way the construction of thebuilding. Flag or otherwise mark all locations of site property lines,easements (if any), underground utilities, and indicate utility type.C. The Contractor or subcontractor shall notify TECHNE if anyconflicts or discrepancy occurs between the information on thisplan and actual field conditions. Do not proceed with work inconflict with these drawing until written or verbal instructions areissued by TECHNE.D. Protect and mark all existing building structure including walls,beams, columns, area separation walls, and other items that arepart of the existing structure and not part of the scope of thetenant improvement, and mark perimeter of construction zone.E. Coordinate with other tenants the temporary shutoff of any siteutilities.F. Refer to Topographic Survey for additional information.G. If the city Building Inspector determines non-compliance with anyaccessibility provisions, a complete and detailed revised plansclearly showing all existing non-complying conditions and theproposed modifications to meet current accessibility requirements(including site plan, floor plans, details, etc.) will be submitted tothe department for review and approval.SITE PLAN NOTESOUTLINE OF EXISTING STRUCTURESA101 SITE PLAN - EXISTING.DWGABHAY SCHWEITZER, B.P., C.G., S.V.ABHAY SCHWEITZER18094/12/2018 6:15:51 PM3956 30th Street, San Diego, CA 92104techne-us.com sustainablearchitect.orgo 619-940-5814 m 313-595-5814CONSULTANTSOWNERMARKDATEDESCRIPTIONPROJECT NO:CAD DWG FILE:DRAWN BY:CHK'D BY:COPYRIGHT:SHEET TITLESHEETOF01 04.13.18 1st Submittal831877 Corydon Rd., Suite 120Lake Elsinore, CA 92530Joshua GrantIdeal Environment LLC (dba TECHNE) expressly reserves its common lawcopyright and other property rights in this document. This document shall not be reproduced, copied,changed or disclosed in any form or manner whatsoever without first obtaining the express writtenconsent of TECHNE.02 08.05.18 2nd Submittal03 08.29.18 3rd SubmittalAREA OF EXISTING LANDSCAPEAREA OF EXISTING HARDSCAPEVEHICULAR CIRCULATIONACCESSIBLE PATHTRUESCALE: 1" = 40'20' 40'080'SITE PLAN AREASPROPERTY OWNER:Modern Leaf Culture INC.1147 Railroad St.,Corona, CA 92882Tenant / Applicant:Modern Leaf Culture INC.1147 Railroad St.,Corona, CA 92882DESIGN FIRM:TECHNEProject Contact: Abhay Schweitzer - Assoc. AIA3956 30th StreetSan Diego, CA 92104Phone #: 619-940-5814email: abhay@techne-us.comSURVEYOR:LG Land Surveying, Inc.30355 Callejo Feliz Ter.,Valley Center, CA 92082Phone #: 619-535-1172PROJECT TEAMPARKINGVICINITY MAP (1":800")
EXHIBIT C
FLOOR PLAN
[On Following Page]
ENTRY /EXITEXISTING CONCRETE WALL TO REMAINDOOR AND SYMBOL. See door schedule for completeinformationWALL OPENING: 80" high u.n.o. Finished with 58" gypsumboard with square corners.WINDOW AND SYMBOL. See window schedule forcomplete information312" U.N.O.031A.The General Contractor or Sub-Contractor shall verify all conditions or dimensions onthese plans in the field with actual site conditions.B.Written dimensions shall take precedence over scaled dimensions and shall be verifiedon the job site. On-site verification of all dimensions and conditions shall be the soleresponsibility of the General Contractor and Sub-Contractors.C.The Contractor or sub-contractor shall notify TECHNE if any conflicts or discrepancyoccurs between this information on this plan and actual field conditions.D.Any discrepancies with this drawing affecting project layout shall be brought to theattention of TECHNE. Do not proceed with work until written or verbal instructions areissued by TECHNE.DIMENSIONS·EXTERIOR WALL DIMENSIONS TO FACE OF FINISH ( U.N.O.)·INTERIOR WALL DIMENSIONS TO CENTER LINE OF STUD ( U.N.O.)·CLEARANCE DIMENSIONS ARE TO FACE OF FINISH MATERIALS, NOTED WITH CLR.FLOOR PLAN NOTESFLOOR PLAN LEGENDPROPOSED NON-STRUCTURAL INTERIOR WALL: 358" LightGauge Steel Stud @ 24" O.C. with 1 layer of 58" gypsumboard each side.FIRE EXTINGUISHER CABINET1.Cannabis shall not be consumed by anyone on the premises of any commercialcannabis business.2.No cannabis or cannabis products shall be visible from the exterior of any propertyissued a commercial cannabis business permit, or on any of the vehicles owned or usedas part of the commercial cannabis business. No outdoor storage of cannabis orcannabis products is permitted at any time.3.Each commercial cannabis business shall have in place an electronic pointof-salesoftware system, which provides and includes inventory tracking and managementcapabilities, and shall be utilized to track and report on all aspects of the commercialcannabis business including, but not limited to, such matters as cannabis tracking,inventory data, gross sales (by weight, purchase price, mark-up percentages, and grossreceipts derived from the wholesale or retail sale thereof) and other information whichmay be deemed necessary by the City. The commercial cannabis business shall ensurethat such information is compatible with the City's record-keeping systems. In addition,the system must have the capability to produce historical transactional data for review.Furthermore, any system selected must be approved and authorized by the CityAdministrator prior to being used by the permittee.4.All cannabis and cannabis products sold, tested, distributed or manufactured shall becultivated, manufactured, and transported by licensed facilities that maintainoperations in full conformance with State and local regulations.5.Each commercial cannabis business shall provide the City Administrator with the name,telephone number (both land line and mobile, if available) of an on-site manager orowner to whom emergency notice may be provided at any hour of the day.ADDITIONAL FLOOR PLAN NOTESWATER / FERTIGATIONROOM141.14 SFEXISTINGCOLUMNMANAGER'SOFFICE132.17 SFSECURE LOADING/UNLOADING AREA95.73 SFVEG. ROOM455.40 SFFLOWER ROOM1,072.61 SFACCESSIBLEALL GENDERBATHROOM55.52 SF22'-93 4"12'-3"6'-578"37'-034"7'-6"3'-1014"10'-414"13'-114"11'-012"11'-2"43'-11"6'-212"6'-6"EXISTING NON-STRUCTURAL INTERIOR WALL TO REMAIN55'-534"35'-512"LOBBY121.51 SFADJACENT SUITE(NOT PART OF PROJECT)ADJACENT SUITE(NOT PART OF PROJECT)EXISTINGELECTRICALPANEL1.The project does not propose to permanently constructed any items for use solely forthe purpose of cultivating cannabis.2.All proposed permanent construction shall be customary with a light industrial type ofuse including walls, HVAC, doors, etc...3.No permanently constructed any items for use solely for the purpose of cultivatingcannabis will be left behind (none proposed) if the project ceases to operate asproposed.CLOSURE PLAN NOTESA104 FIRST FLOOR PLAN - PROPOSED.DWGABHAY SCHWEITZER, B.P., C.G., S.V.ABHAY SCHWEITZER18098/28/2018 5:05:55 PM3956 30th Street, San Diego, CA 92104techne-us.com sustainablearchitect.orgo 619-940-5814 m 313-595-5814CONSULTANTSOWNERMARKDATEDESCRIPTIONPROJECT NO:CAD DWG FILE:DRAWN BY:CHK'D BY:COPYRIGHT:SHEET TITLESHEETOF01 04.13.18 1st Submittal831877 Corydon Rd., Suite 120Lake Elsinore, CA 92530Joshua GrantIdeal Environment LLC (dba TECHNE) expressly reserves its common lawcopyright and other property rights in this document. This document shall not be reproduced, copied,changed or disclosed in any form or manner whatsoever without first obtaining the express writtenconsent of TECHNE.02 08.05.18 2nd Submittal03 08.29.18 3rd SubmittalA104FIRST FLOOR PLAN- PROPOSED6SCALE: 1/4" = 1'-0"2' 4'08'1SCALE: 1/4" = 1'-0"FIRST FLOOR PLAN - PROPOSEDTRUE
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 APPROVAL TO THE CITY COUNCIL
OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVAL OF CONDITIONAL
USE PERMIT NO. 2018-09 TO ESTABLISH A 2,074 SQUARE FOOT CANNABIS
FACILITY WITHIN AN EXISTING BUILDING LOCATED AT 31877 CORYDON
(APN: 377-051-016)
Whereas, Joshua Grant, the Modern Leaf has filed an application with the City of Lake Elsinore
(City) requesting approval of Planning Application No. 2018-37 (Development Agreement No.
2018-05 (Exhibit A) and Conditional Use Permit No. 2018-09) to establish an approximately 2,074
Square Foot (SF) Cannabis Facility within an existing building (Project). The Project will consist
will consist of 1,528 SF of cultivation space and 546 SF of support and ancillary uses. The Project
is generally located at the northwest corner of the intersection Mission Trail and Corydon and
more specifically referred to as 31877 Corydon (APN: 370-051-016); 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. 2018-37 (Conditional Use Permit No. 2018-09).
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 2018-37/DA 2018-05/CUP 2018-09
PROJECT NAME:The Modern Leaf
PROJECT LOCATION:APN: 377-051-008
APPROVAL DATE:
EFFECTIVE DATE:
EXPIRATION DATE:
General Conditions
1.Planning Application No. 2018-37 (Development Agreement No. 2018-05 and Conditional
Use Permit No. 2018-09) proposes to establish an approximately 2,074 Square Foot (SF)
Cannabis Facility within an existing building (Project). The Project will consist will consist of
1,528 SF of cultivation space and 546 SF of support and ancillary uses. The Project is
generally located at the northwest corner of the intersection Mission Trail and Corydon and
more specifically referred to as 31877 Corydon (APN: 370-051-008).
2.Conditional Use Permit No. 2018-09 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 2018-09
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 2018-09 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. 2018-09 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
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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
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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
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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
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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.
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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).
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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.
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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
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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
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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
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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.
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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:
§¨¦15PA 2018-40DA 2018-08CUP 2018-12PA 2018-33DA 2018-01CUP 2018-05PA 2018-37DA 2018-05CUP 2018-09PA 2018-36DA 2018-04CUP 2018-08I-15
CEREAL STMISSION TRLLEMON STWAITE STCOMO STCORYDON STVINE STALMOND STGRAPE ST
BUNDY CANYON RDPALOMAR STLIME STLOQUAT STBEECHER STORANGE STGARDEN STGUFFY LNORCHARD STVICTORIAN LNCANYON DRAPRICOT LNDOROF CTLEWIS STWILDOMAR RDCLOVIS WAYSTONEMAN STWINDTREE AVEBRYANT STBONNIE LNJARO DRMELINDA LNLINDA VISTA LNBERRYWOOD DRJO ANN CTHAGER LNETHEN RDDOROTHY LNANGELS LNVALENCIA STAMBERTON DRCHRISTOPHER LNWAGON RIM CTOLD COACH RDSILVER RUN CIRI-15ORANGE STORCHARD STVINE STVICTORIAN LNCity of Lake ElsinoreEast Lake DistrictCannabis Application Locations´00.150.075 MilesPrepared by:City of Lake Elsinore GISNovember 1, 2018Data Sources:County of Riverside GISCity of Lake Elsinore GISStateplane NAD 83
§¨¦15PA 2018-40DA 2018-08CUP 2018-12PA 2018-33DA 2018-01CUP 2018-05PA 2018-37DA 2018-05CUP 2018-09PA 2018-36DA 2018-04CUP 2018-08I-15
CEREAL STMISSION TRLLEMON STWAITE STCOMO STCORYDON STVINE STALMOND STGRAPE ST
BUNDY CANYON RDPALOMAR STLIME STLOQUAT STBEECHER STORANGE STGARDEN STGUFFY LNORCHARD STVICTORIAN LNCANYON DRAPRICOT LNDOROF CTLEWIS STWILDOMAR RDCLOVIS WAYSTONEMAN STWINDTREE AVEBRYANT STBONNIE LNJARO DRMELINDA LNLINDA VISTA LNBERRYWOOD DRJO ANN CTHAGER LNETHEN RDDOROTHY LNANGELS LNVALENCIA STAMBERTON DRCHRISTOPHER LNWAGON RIM CTOLD COACH RDSILVER RUN CIRI-15ORANGE STORCHARD STVINE STVICTORIAN LNSource: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GISUser CommunityCity of Lake ElsinoreEast Lake DistrictCannabis Application Locations´00.150.075 MilesPrepared by:City of Lake Elsinore GISNovember 1, 2018Data Sources:County of Riverside GISCity of Lake Elsinore GISStateplane NAD 83
SP-1SITE PLANPHOTOSOWNERScale 1/16"=1'-0"VICINITY MAPN
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G SIGNAGEANY SIGNAGE BY SEPARATE PERMIT103SITE PLAN123312IE LICENSING LLC
10'-0"4'-5"17'-4"19'-1"19'-8"10'-4"1'-0"12'-1"7'-7"29'-5"490 S.F.180 S.F.142 S.F.427 S.F.3'-0"INVENTORY1'-6"EXTRACTIONA-1PLAN NOTESBLDGFLOOR PLANScale 1/4"=1'-0"IE LICENSING LLC31885 CORYDON RDLAKE ELSINOR. CASUITE 140RESTROOMOFFICEWAREHOUSEPACKAGINGFLOOR PLANLEGENDFIRE NOTES
BUILDING "F"(SINGLE-STORY)31877CORYDON RD.12,296.55 SFBUILDING "G"(SINGLE-STORY)31879CORYDON RD.10,146.38 SFBUILDING "H"(SINGLE-STORY)31881CORYDON RD.14,442.47 SFBUILDING "D"(SINGLE-STORY)31883CORYDON RD.12,854.89 SFBUILDING "E"(SINGLE-STORY)31875CORYDON RD.39,138.56 SFPROPERTY LINE 707.23'N53°25'00WPROPERTY LINE 707.44'N53°25'00"WPROPERTY LINE 360.00'N36°33'00"E
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EXISTING ASPHALTPARKING LOT
EXISTING ASPHALTPARKING LOTEXISTING ASPHALTPARKING LOTEXISTING ASPHALT PARKING LOTEXISTING ASPHALTPARKING LOTEXISTING ASPHALTDRIVE AISLE224'-0"75'-1012"23'-8"48'-7"1
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)EXISTING DRIVE AISLE TOADJACENT PROPERTY TO REMAINEXISTING DRIVE AISLE TOADJACENT PROPERTY TO REMAIN80'-0"ROW5'-11"EXISTING SIDEWALKEXISTING STREET LIGHT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING FIREHYDRANT TO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAINEXISTING 6' HIGH CMUREFUSE & RECYCLE AREATO REMAIN30'-0"PL TO CLEXISTING ACCESSIBLERAMP FROM ROW15'-0"7'-6"2
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"18'-0"EXITAPN: 370-051-016-7LEGAL DESCRIPTION:LOT:2 CITY:LAKEELSINORE 6.14 ACRESM/L IN PAR 2 RS 073/044EXISTING 6' HIGH CHAINLINK FENCE TO REMAIN11'-634"19'-378"
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8"66'-0"EXISTING LOADINGDOOR TO REMAINM1 - LIMITED MANUFACTURING(LIGHT INDUSTRIAL)M1 - LIMITED MANUFACTURING(LIGHT INDUSTRIAL)SP - SPECIFIC PLAN( GRADED UN-DEVELOPMENT)A101SITE PLAN -EXISTING31SCALE: 1" = 40'SITE PLAN - EXISTINGOUTLINE OF PROPOSED RENOVATION/REMODELPROPERTY LINESITE DRAINAGE PATTERNSITE PLAN LEGENDA.The site plan is for informational and general site reference only.Refer to other construction documents for complete scope ofwork.B. Before commencing any site foundation or slab cutting orexcavation, the contractor shall verify and mark locations of all siteutilities, dimensions and conditions. These include but are notlimited to property lines, setback location to all new or existingwalls, easements (if any), existing site utilities, including water,sewer, gas and electrical lines and any other new or existing siteitems which could affect in any way the construction of thebuilding. Flag or otherwise mark all locations of site property lines,easements (if any), underground utilities, and indicate utility type.C. The Contractor or subcontractor shall notify TECHNE if anyconflicts or discrepancy occurs between the information on thisplan and actual field conditions. Do not proceed with work inconflict with these drawing until written or verbal instructions areissued by TECHNE.D. Protect and mark all existing building structure including walls,beams, columns, area separation walls, and other items that arepart of the existing structure and not part of the scope of thetenant improvement, and mark perimeter of construction zone.E. Coordinate with other tenants the temporary shutoff of any siteutilities.F. Refer to Topographic Survey for additional information.G. If the city Building Inspector determines non-compliance with anyaccessibility provisions, a complete and detailed revised plansclearly showing all existing non-complying conditions and theproposed modifications to meet current accessibility requirements(including site plan, floor plans, details, etc.) will be submitted tothe department for review and approval.SITE PLAN NOTESOUTLINE OF EXISTING STRUCTURESA101 SITE PLAN - EXISTING.DWGABHAY SCHWEITZER, B.P., C.G., S.V.ABHAY SCHWEITZER18094/12/2018 6:15:51 PM3956 30th Street, San Diego, CA 92104techne-us.com sustainablearchitect.orgo 619-940-5814 m 313-595-5814CONSULTANTSOWNERMARKDATEDESCRIPTIONPROJECT NO:CAD DWG FILE:DRAWN BY:CHK'D BY:COPYRIGHT:SHEET TITLESHEETOF01 04.13.18 1st Submittal831877 Corydon Rd., Suite 120Lake Elsinore, CA 92530Joshua GrantIdeal Environment LLC (dba TECHNE) expressly reserves its common lawcopyright and other property rights in this document. This document shall not be reproduced, copied,changed or disclosed in any form or manner whatsoever without first obtaining the express writtenconsent of TECHNE.02 08.05.18 2nd Submittal03 08.29.18 3rd SubmittalAREA OF EXISTING LANDSCAPEAREA OF EXISTING HARDSCAPEVEHICULAR CIRCULATIONACCESSIBLE PATHTRUESCALE: 1" = 40'20' 40'080'SITE PLAN AREASPROPERTY OWNER:Modern Leaf Culture INC.1147 Railroad St.,Corona, CA 92882Tenant / Applicant:Modern Leaf Culture INC.1147 Railroad St.,Corona, CA 92882DESIGN FIRM:TECHNEProject Contact: Abhay Schweitzer - Assoc. AIA3956 30th StreetSan Diego, CA 92104Phone #: 619-940-5814email: abhay@techne-us.comSURVEYOR:LG Land Surveying, Inc.30355 Callejo Feliz Ter.,Valley Center, CA 92082Phone #: 619-535-1172PROJECT TEAMPARKINGVICINITY MAP (1":800")
ENTRY /EXITEXISTING CONCRETE WALL TO REMAINDOOR AND SYMBOL. See door schedule for completeinformationWALL OPENING: 80" high u.n.o. Finished with 58" gypsumboard with square corners.WINDOW AND SYMBOL. See window schedule forcomplete information312" U.N.O.031A.The General Contractor or Sub-Contractor shall verify all conditions or dimensions onthese plans in the field with actual site conditions.B.Written dimensions shall take precedence over scaled dimensions and shall be verifiedon the job site. On-site verification of all dimensions and conditions shall be the soleresponsibility of the General Contractor and Sub-Contractors.C.The Contractor or sub-contractor shall notify TECHNE if any conflicts or discrepancyoccurs between this information on this plan and actual field conditions.D.Any discrepancies with this drawing affecting project layout shall be brought to theattention of TECHNE. Do not proceed with work until written or verbal instructions areissued by TECHNE.DIMENSIONS·EXTERIOR WALL DIMENSIONS TO FACE OF FINISH ( U.N.O.)·INTERIOR WALL DIMENSIONS TO CENTER LINE OF STUD ( U.N.O.)·CLEARANCE DIMENSIONS ARE TO FACE OF FINISH MATERIALS, NOTED WITH CLR.FLOOR PLAN NOTESFLOOR PLAN LEGENDPROPOSED NON-STRUCTURAL INTERIOR WALL: 358" LightGauge Steel Stud @ 24" O.C. with 1 layer of 58" gypsumboard each side.FIRE EXTINGUISHER CABINET1.Cannabis shall not be consumed by anyone on the premises of any commercialcannabis business.2.No cannabis or cannabis products shall be visible from the exterior of any propertyissued a commercial cannabis business permit, or on any of the vehicles owned or usedas part of the commercial cannabis business. No outdoor storage of cannabis orcannabis products is permitted at any time.3.Each commercial cannabis business shall have in place an electronic pointof-salesoftware system, which provides and includes inventory tracking and managementcapabilities, and shall be utilized to track and report on all aspects of the commercialcannabis business including, but not limited to, such matters as cannabis tracking,inventory data, gross sales (by weight, purchase price, mark-up percentages, and grossreceipts derived from the wholesale or retail sale thereof) and other information whichmay be deemed necessary by the City. The commercial cannabis business shall ensurethat such information is compatible with the City's record-keeping systems. In addition,the system must have the capability to produce historical transactional data for review.Furthermore, any system selected must be approved and authorized by the CityAdministrator prior to being used by the permittee.4.All cannabis and cannabis products sold, tested, distributed or manufactured shall becultivated, manufactured, and transported by licensed facilities that maintainoperations in full conformance with State and local regulations.5.Each commercial cannabis business shall provide the City Administrator with the name,telephone number (both land line and mobile, if available) of an on-site manager orowner to whom emergency notice may be provided at any hour of the day.ADDITIONAL FLOOR PLAN NOTESWATER / FERTIGATIONROOM141.14 SFEXISTINGCOLUMNMANAGER'SOFFICE132.17 SFSECURE LOADING/UNLOADING AREA95.73 SFVEG. ROOM455.40 SFFLOWER ROOM1,072.61 SFACCESSIBLEALL GENDERBATHROOM55.52 SF22'-93 4"12'-3"6'-578"37'-034"7'-6"3'-1014"10'-414"13'-114"11'-012"11'-2"43'-11"6'-212"6'-6"EXISTING NON-STRUCTURAL INTERIOR WALL TO REMAIN55'-534"35'-512"LOBBY121.51 SFADJACENT SUITE(NOT PART OF PROJECT)ADJACENT SUITE(NOT PART OF PROJECT)EXISTINGELECTRICALPANEL1.The project does not propose to permanently constructed any items for use solely forthe purpose of cultivating cannabis.2.All proposed permanent construction shall be customary with a light industrial type ofuse including walls, HVAC, doors, etc...3.No permanently constructed any items for use solely for the purpose of cultivatingcannabis will be left behind (none proposed) if the project ceases to operate asproposed.CLOSURE PLAN NOTESA104 FIRST FLOOR PLAN - PROPOSED.DWGABHAY SCHWEITZER, B.P., C.G., S.V.ABHAY SCHWEITZER18098/28/2018 5:05:55 PM3956 30th Street, San Diego, CA 92104techne-us.com sustainablearchitect.orgo 619-940-5814 m 313-595-5814CONSULTANTSOWNERMARKDATEDESCRIPTIONPROJECT NO:CAD DWG FILE:DRAWN BY:CHK'D BY:COPYRIGHT:SHEET TITLESHEETOF01 04.13.18 1st Submittal831877 Corydon Rd., Suite 120Lake Elsinore, CA 92530Joshua GrantIdeal Environment LLC (dba TECHNE) expressly reserves its common lawcopyright and other property rights in this document. This document shall not be reproduced, copied,changed or disclosed in any form or manner whatsoever without first obtaining the express writtenconsent of TECHNE.02 08.05.18 2nd Submittal03 08.29.18 3rd SubmittalA104FIRST FLOOR PLAN- PROPOSED6SCALE: 1/4" = 1'-0"2'4'08'1SCALE: 1/4" = 1'-0"FIRST FLOOR PLAN - PROPOSEDTRUE