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HomeMy WebLinkAbout2025-1507 DA-2025-02 Amendment Mr. Nice Guy 311 W. Minthorn StreetORDINANCE NO. 2025-1507 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-02) FOR LAKE ELSINORE COMMUNITY INVESTMENT CORP (DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET (APN: 377-220-021) Whereas, Joseph Martin has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) Amendment No. 2025-02 (Exhibit A) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 311 W Minthorn Street (APN: 377-220-021); 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; 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; 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; Whereas, on May 20, 2025, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-02; and Whereas, on June 24, 2025, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency: 1. The project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D Ord. No. 2025-1507 Page 2 of 4 2. The project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines, as the Project is wholly located within an existing building and does not include any earth-disturbing activities; therefore, Sections 6.1.2 or 6.3.1 of the MSHCP are not applicable. 3. The project is consistent with the Protection of Narrow Endemic Plant Species Guidelines and the Additional Survey Needs and Procedures because the project is not located within any Narrow Endemic Plant Species Survey Areas or Critical Species Survey Areas. 4. The project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas. 5. The project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees. Section 2: The Council hereby finds and determines that the project is categorically exempt from California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 (Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’ development agreement would not result in new construction, additional square footage, or expansion of the existing use. Section 3: That in accordance with California Planning and Zoning Law and Section 19.12.080.B of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-02: 1. It is consistent with the objectives, policies, general land uses, and programs specified in the General Plan and any applicable specific plan. The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial (LI). The proposed project is consistent with 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 amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Limited Industrial (LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation. 3. It is in conformity with public convenience, general welfare and good land use practices. The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D Ord. No. 2025-1507 Page 3 of 4 agreement amendment will ensure the cannabis facility continues to have beneficial impacts to the surrounding community. Furthermore, the project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects. 4. It will not be detrimental to the health, safety and general welfare. The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operation without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner. Furthermore, 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 cannabis facility is an existing business that has been operation without land use issues and has not caused adverse impacts for existing businesses and future developments. The proposed development agreement amendment will ensure the cannabis facility continues to operate as such. 6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5. The proposed development agreement amendment 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: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-02 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this Ordinance. Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable. Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption. Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D Ord. No. 2025-1507 Page 4 of 4 Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 8th day of July 2025. Brian Tisdale Mayor Attest: Candice Alvarez, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2024-1507 was introduced by the City Council of the City of Lake Elsinore, California, at its Regular meeting of June 24, 2025, and adopted at its Regular meeting of July 8, 2025, and that the same was adopted by the following vote: AYES: Council Members Manos, Johnson, and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale NOES: None ABSENT: None ABSTAIN: None Candice Alvarez, MMC City Clerk Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT A RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 Attn: City Clerk (Space Above Line For Recorder’s Use Only) (Exempt from Recording Fees Per Gov. Code § 27383) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND LAKE ELSINORE COMMUNITY INVESTMENT CORP Approved July 9, 2025 Ordinance No. 2025-_____ Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -1- FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELSINORE AND LAKE ELSINORE COMMUNITY INVESTMENT CORP This First Amendment to Development Agreement (“First Amendment”), dated for identification only as of July 1, 2025, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and Lake Elsinore Community Investment Corp, a California corporation (“Developer”). This Amendment shall take effect on the “Amendment Effective Date,” as this term is hereafter defined. City and Developer may each be referred to herein individually as a “Party” or collectively as the “Parties.” RECITALS A. On January 8, 2019, pursuant to Ordinance No. 2019-1403, the City approved and adopted that certain “Development Agreement by and between the City of Lake Elsinore and Lake Elsinore Community Investment Corp,” which Development Agreement was recorded on September 10, 2020 in the Official Records of Riverside County, California as Instrument No. 2020-0425522 (the “Development Agreement”). B. In connection with the Developer Agreement, Developer acquired an equitable interest in that certain real property located at 311 W. Minthorn Street in the City of Lake Elsinore, County of Riverside, State of California, Assessor Parcel Numbers 377-220-003-6, 377-220-019- 1 and 377-220-021-2, which is within a manufacturing zoning district (the “Site”). C. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B. D. The total Cannabis Retail Business Floor Area (as defined below) is [ ] sq. ft. The total Non-Retail Cannabis Business Floor Area (as defined below) is [ ] sq. ft. The Floor Plan depicting the total floor area is attached hereto as Exhibit C. E. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, Danette Leonard. F. The Property Owner has provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D. G. Developer uses the Site for a Cannabis Business in accordance with California Cannabis Laws and the LEMC, as each may be amended from time to time (the “Project”). H. On July 9, 2025, the City Council approved Ordinance No. 2025-____ amending the Lake Elsinore Municipal Code (“LEMC”) Chapter 17.156 to: (i) streamline the regulation of cannabis-related business; (ii) to limit the number of cannabis-related business in the City. I. 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 Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -2- 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. J. Consistent with the requirements of the Development Agreement Statute, the City adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”), authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City along with amendments thereto. LEMC, Section 19.12.020, provides for amendments to a development agreement “is the same as the procedure for entering into an agreement in the first instance.” LEMC, Section 19.12.010 requires submittal of an application along with information and supporting data as requested by the Director of Community Development for consideration of any development agreement. Developer has satisfied this requirement. K. On May 20, 2025, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider the application for this First Amendment and recommended to the City Council approval of this Amendment. L. On June 24, 2025, the City Council held a duly noticed public hearing to consider this First Amendment and found and determined that this First Amendment: (a) is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan and any applicable specific plan; (b) is compatible with the uses authorized in, and the regulations prescribed for the Site and the surrounding area and will not adversely affect the orderly development of the Site or the preservation of property values; (c) is in conformity with public convenience, general welfare, and good land use practices; (d) will have an overall positive effect on the health, safety and welfare of the residents of and visitors to the City; and (e) constitutes a lawful, present exercise of the City’s police power and authority under the Development Agreement Statute and Development Agreement Ordinance. M. Based on the findings set forth in Recital L herein, the City Council entered into this Amendment pursuant to and in compliance with the requirements of the Development Agreement Statute and the Development Agreement Ordinance; and did, therefore, in approving this Amendment introduce for first reading Ordinance No. 2025-___ (the “Enabling Ordinance”). On July 9, 2025, the City Council conducted the second reading of the Enabling Ordinance, thereby approving this Amendment to become effective thirty (30) days after the adoption thereof. NOW, THEREFORE, in consideration of the mutual terms, obligations, promises, covenants, and conditions contained herein and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties, and each of them, agree as follows: SECTION 1. EXHIBITS The Development Agreement has attached to it four exhibits designated alphabetically as Exhibit A through Exhibit D. Exhibits A through D of the Development Agreement shall remain in full force and effect except to the extent that the provisions of this Section 1 of the First Amendment modify those Exhibits. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -3- The following documents are referred to in this First Amendment, attached hereto and incorporated herein by this reference: Exhibit A Legal Description Exhibit B Site Plan1 Exhibit C Floor Plan1 Exhibit D Property Owner’s Consent 1 The Approved Site Plan and Floor Plan exhibits are on file as a public record and available for review at the City of Lake Elsinore’s City Clerk’s Office located at 130 South Main Street, Lake Elsinore, CA 92530. SECTION 2. REVISIONS TO DEFINITIONS The words and phrases used in this First Amendment as defined terms shall have the meaning set forth in Section 2 of the Development Agreement, except as added and/or modified below, which defined terms shall be applicable to both the Development Agreement and the First Amendment. “Amendment Effective Date” means the later of: (i) the latest date of execution shown on the signature page hereto; or (ii) the Effective Date of the Enabling Ordinance. The Amendment Effective Date does not amend the Effective Date as defined in the Development Agreement, nor does the Amendment Effective Date modify or change the “Term” or the “Term Commencement Date.” “Cannabis Business License” or “Cannabis Business Permit” means the City license established and authorized by LEMC, Section 17.156.080, 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. “Conditional Use Permit” means Conditional Use Permit No. ____-__ issued by the City to Developer pertaining to Developer’s original development of the Project and any subsequent amendments thereto. In the event that an amendment to the Conditional Use Permit pertaining to the Suite G Site has not been issued to the Developer as of the Amendment Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of any amendment to the Conditional Use Permit. “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 Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -4- 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), except that Chapter 17.156 of Title 17 shall be as amended by Ordinance No. 2025-___, 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. “Cannabis Retail Business Floor Area” means interior gross floor area allocated and dedicated to the retail operation of a Cannabis Retail Business and shall include but not limited to reception or entrance lobby area for customer check-in, retail product storage room(s), office(s), and other ancillary area(s) to support the retail operation (including cannabis delivery). “Cannabis Non-Retail Business Floor Area” means interior gross floor area allocated and dedicated to the cannabis non-retail operation(s) of a Cannabis Non-Retail Business, such as cultivation, distribution, manufacturing, and/or testing laboratory, and shall include but not limited to storage room(s) of finished and raw products, office(s), and other ancillary area(s) to support the non-retail operation(s). SECTION 3. REVISIONS TO GENERAL PROVISIONS In order to update certain renumbering of the Lake Elsinore Municipal Code, subparts e and f of Section 1.8 of the Development Agreement entitled Termination are hereby amended to read as follows. e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.415.070(D), 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 17.415.070(G); In order to address the potential for Developer modifications to the square footage of area allocated to the Cannabis Retail Business and/or Cannabis Non-Retail Business, Section 1.9(a) of the Development Agreement entitled Operating Memoranda; Amendment of Agreement is hereby amended to read as follows. 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 Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -5- 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; or (ii) permitted uses. 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 (ii) above, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda (the “Operating Memoranda”) approved by the Parties in writing which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore public notices and hearings shall not be required. The City Manager shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to this Agreement which requires compliance with the provisions of Section 1.9(b) below. The Parties agree that proposed changes to the Cannabis Retail Business Floor Area and/or the Cannabis Non-Retail Business Floor Area may be addressed by way of an Operating Memoranda and shall generally include and be evidenced by an updated Floor Plan (Exhibit C) reflecting such changes. SECTION 4. REVISIONS TO COMMUNITY BENEFITS FEE Section 4.2 of the Development Agreement entitled Community Benefits Fee is hereby amended to add the following subparts c and d: c. Community Benefits Fee Upon the Amendment Effective Date. Notwithstanding subparts (a) and (b) above, concurrent with the Amendment Effective Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to the following fee schedule: All Cannabis Business activities $[insert rate as of 6/30/25] per square foot of area allocated to the Cannabis Retail Business with an annual 4% increase but in no event to exceed $25 per square foot; and $5 per square foot of area allocated to Cannabis Non-Retail Business with no annual increase as provided in subpart d. Developer may elect to make payments of the Community Benefit Fee due on the Amendment Effective Date and each Adjustment Date (as defined herein) in up to 12 (monthly) equal installments, the first installment to be made on the Amendment Effective Date or Adjustment Date, as applicable. Installment payment plans shall be evidenced by separate agreements of the Parties. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -6- d. Annual Increase. In order to account for the increasing cost of providing City services, the Community Benefits Fee set forth in Section 4.2(c) for any Cannabis Retail Business shall be increased annually commencing on each anniversary of the Amendment Effective Date (each of which day shall be continued to be referred to as an “Adjustment Date”) until said fee reaches $25 per square foot of Floor Area. Each Adjustment Date shall be continued to be numbered in sequence (e.g., Third Adjustment Date, Fourth Adjustment Date, etc.). The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows: Article 4 of the Development Agreement is hereby amended to add the following Section 4.5: 4.5 Tax Payment and Facility Payment Offset. a. In the event that the voters of the City of Lake Elsinore approve a Cannabis business tax or any percentage of gross receipts based fee, Developer shall pay the amount established by any such measure or initiative (“Tax Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Tax Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied. b. In the event that the voters of the City of Lake Elsinore or the City Council approve a fee based on the square footage of premises where permitted commercial cannabis activities, Developer shall pay the amount established thereby (“Facility Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Facility Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied. c. Imposition of a Tax Payment and/or a Facility Payment obligation by the City or the voters of the City of Lake Elsinore shall not relieve Developer of its obligation to pay the Community Benefit Fee except for the offset as set forth in Sections 4.5.a, 4.5.b, 4.5.c, and 4.5.d above. SECTION 5. ADDITIONAL PROVISIONS 5.1 Release. In consideration for this First Amendment and the provisions as set forth herein, and subject to the City Council approving/adopting this First Amendment Developer, on behalf of itself and its respective successors, assigns, officials, directors, officers, Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -7- employees, insurers, lenders, lien holders, attorneys, agents, and other representatives, do hereby release the City as any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including attorney’s fees, of any nature whatsoever, known or unknown, fixed or contingent as of the Amendment Effective Date. 5.2 Counterparts. This First Amendment may be executed in counterparts, each of which so executed shall be deemed an original, and such counterparts together shall constitute but one First Amendment. 5.3 No Other Changes. Except as modified by this First Amendment, the terms and conditions of the Original Development Agreement, remain in full force and effect and shall be incorporated as a part of and interpreted as one integrated agreement covering the subjects included therein. If there are any conflicts between the provisions of this First Amendment and the original Development Agreement, the provisions of this First Amendment shall control. 5.4 Recordation by City Clerk. Pursuant to Government Code Section 65868.5, within ten (10) days of execution of this First Amendment by the Parties, the City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to Government Code Section 65868.5, the burdens of the First Amendment shall be binding upon, and the benefits of the agreement shall inure to, all successors in interest to the Parties to the First Amendment. [SIGNATURES ON NEXT PAGE] Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D -8- IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the dates set forth below. “CITY” CITY OF LAKE ELSINORE, a municipal corporation Date: By: Mayor ATTEST: By: Candice Alvarez, MMC, City Clerk APPROVED AS TO FORM: By: David Mann, Acting City Attorney “DEVELOPER” LAKE ELSINORE COMMUNITY INVESTMENT CORP, a California corporation Date: By: Joseph Martin, Its: Chief Executive Officer Date: By: Patrick Martin, Its: Chief Operating Officer Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D 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. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D 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. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D 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. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT A – Page 1 EXHIBIT A LEGAL DESCRIPTION The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows: PARCEL 1: THAT PORTION OF LOT 2 AND 3, BLOCK 3 OF WALL AND STARBIRD' S RESUBDIVISION, AS PER MAP ON FILE IN BOOK 10, PAGE( S) 492 RECORDS OF SAN DIEGO COUNTY, LYING SOUTHWESTERLY OF THE SOUTHWESTERLY BOUNDARY OF THE COUNTY HIGHWAY ROUTE 11, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. APN; 377-220-003-6 PARCEL 2: THAT PORTION OF THE FOLLOWING DESCRIBED PROPERTY LYING WITHIN BLOCK 3 OF WALL AND STARBIRD’S RESUBDIVISION OF LOTS 3 TO 22, BLOCK 90, AS SHOWN BY MAP ON FILE IN BOOK 10 PAGE(S) 492 OF MAPS, RECORDS OF SAN DIEGO COUNTY, CALIFORNIA: A STRIP OF LAND 60 FEET IN WIDTH EXTENDING ACROSS BLOCK 3, 4 AND 5 IN SAID WALL AND STARBIRD’S RESUBDIVISION, BEING 30 FEET ON EACH SIDE OF AND PARALLEL TO THE CENTER LINE OF THE MAIN TRACT TO THE ELSINORE, POMONA AND LOS ANGELES RAILWAY, SAID CENTER LINE OF MAIN TRACT AS IT CROSSES SAID BLOCKS 3, 4 AND 5 BEING DESCRIBED AS FOLLOWS: INTERSECTING THE SOUTHERLY OF SAID BLOCK THREE (3) AT A POINT DISTANT SIX AND THREE TENTHS (6 3/10) FEET WESTERLY FROM THE SOUTHEASTERLY CORNER OF SAID BLOCK THREE (3); THENCE NORTHWESTERLY ON A CURVE TO THE LEFT OF TWO THOUSAND TWO HUNDRED NINETY TWO (2292) FEET RADIUS FOR A DISTANCE OF SEVEN HUNDRED SEVENTY TWO (772) FEET TO A POINT; THENCE NORTHWESTERLY ON A TANGENT CURVE TO THE LEFT OF FOUR THOUSAND FIVE HUNDRED EIGHT THREE AND SEVEN TENTHS (4583 7/10) FEET RADIUS FOR A DISTANCE OF FIVE HUNDRED EIGHTY (580) FEET, MORE OR LESS, TO AN INTERSECTION WITH THE WESTERLY LINE OF SAID BLOCK FIVE (5) AT A POINT DISTANT FORTY FOUR AND FOUR TENTHS (44 4/10) FEET SOUTHERLY FROM THE NORTHWEST CORNER OF SAID BLOCK FIVE (5). SAID CENTER LINE OF MAIN TRACT INTERSECTS THE EASTERLY LINE OF BLOCK FOUR (4) AT A POINT DISTANT TWO HUNDRED TWENTY AND THREE TENTHS (220 3/10) FEET SOUTHERLY FROM ITS NORTHEASTERLY CORNER AND INTERSECTS THE WESTERLY LINE OF SAID BLOCK FOUR (4) AT A POINT DISTANT ONE HUNDRED THIRTEEN AND ONE TENTH (113 1/10) FEET SOUTHERLY FROM THE NORTHWESTERLY CORNER THEREOF. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT A – Page 2 EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN COUNTY HIGHWAY ROUTE 11; ALSO EXCEPTING THEREFROM ALL MINERALS CONTAINED IN THE ABOVE- DESCRIBED LAND, INCLUDING, WITHOUT LIMITING THE GENERALITY THEREOF, OIL, GAS AND OTHER HYDROCARBON SUBSTANCES, AS WELL AS METALLIC OR OTHER SOLID MINERALS, PROVIDED THAT SANTA FE SHALL NOT HAVE THE RIGHT TO GO UPON OR USE THE SURFACE OF SAID LAND, OR ANY PART THEREOF, FOR THE PURPOSE OF DRILLING FOR, MINING, OR OTHERWISE REMOVING ANY OF SAID MINERALS, SANTA FE MAY, HOWEVER, AND HEREBY RESERVES THE RIGHT TO, REMOVE ANY OF SAID MINERALS FROM SAID LAND BY MEANS OF WELLS, SHAFTS, TUNNELS, OR OTHER MEANS OF ACCESS TO SAID MINERALS WHICH MAY BE CONSTRUCTED, DRILLED OR DUG FROM OTHER LAND, PROVIDED THAT THE EXERCISE OF SUCH RIGHTS BY SANTA FE SHALL IN NO WAY INTERFERE WITH OR IMPAIR THE USE OF THE SURFACE OF THE LAND HEREBY CONVEYED OR OF ANY IMPROVEMENTS THEREON, AS RESERVED BY THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY, BY DOCUMENT RECORDED OCTOBER 23, 1985 AS INSTRUMENT NO. 238977 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. SAID PARCEL IS ALSO SHOWN AS SHE. 804-33-33 ( PARCEL 5). APN: 377-220-019-1 PARCEL 3: THAT PORTION OF BLOCK 3 OF WALL AND STARBIRD'S RESUBDIVISION OF LOTS 3 TO 22, INCLUSIVE IN BLOCK 90, AS SHOWN BY MAP ON FILE IN BOOK 10, PAGE( S) 492, OF MAPS. RECORDS OF SAN DIEGO COUNTY, CALIFORNIA, TOGETHER WITH THAT PORTION OF THE ALLEY IN SAID BLOCK 3, VACATED BY CITY OF ELSINORE, ORDINANCE NO. 389, RECORDED MAY 9, 1966 AS INSTRUMENT NO. 48383 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST WESTERLY CORNER OF SAID BLOCK 3; THENCE NORTH 18˚ 20’ 30” EAST ON THE NORTHWESTERLY LINE OF SAID BLOCK, 185.44 FEET TO THE INTERSECTION OF SAID RAILROAD RIGHT OF WAY; THENCE ON A CURVE SOUTHEASTERLY, CURVING SOUTHERLY, THE RADIUS OF WHICH IS 2262.01 FEET AN ARC OF 395.63 FEET ON THE SOUTHEASTERLY LINE OF SAID RAILROAD RIGHT OF WAY TO THE INTERSECTION WITH THE NORTH LINE OF MINTHORN STREET; THENCE NORTH 46˚ 50’ WEST, 271.32 FEET TO THE POINT OF BEGINNING. TOGETHER WITH THAT PORTION OF THE SOUTHEASTERLY HALF OF LANGSTAFF STREET, LYING NORTHEASTERLY OF THE NORTHEASTERLY PROLONGATION OF THE SOUTHWESTERLY LINE OF LOT 7, IN SAID BLOCK 3 AND LYING Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT A – Page 3 SOUTHWESTERLY OF THE SOUTHWESTERLY LINE OF THE ATCHISON, TOPEKA AND SANTA FE RAILROAD RIGHT OF WAY LINE; EXCEPTING THEREFROM ALL THAT PORTION THEREOF LYING WITHIN LOTS 2, 3 AND 9 IN BLOCK 3. APN: 377-220-021-2 APN: 377-220-003-6, 377-220-019-1, 377-220-021-2 (End of Legal Description) Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT B EXHIBIT B SITE PLAN [TO BE INSERTED] Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT C EXHIBIT C FLOOR PLAN [Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED] Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT D EXHIBIT D PROPERTY OWNER’S CONSENT [ATTACHED] Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D EXHIBIT D PROPERTY OWNER’S CONSENT PROPERTY OWNER’S CONSENT __________________________, a California ________________, being the owner of the real properties described in Exhibit A to this ____________ Amendment to Development Agreement by and between the City of Lake Elsinore and ______________________, dated for identification as of ________________, 2025 (the “________ Amendment”), do hereby consent to the recordation of said ____________ Amendment in the Official Records of the County of Riverside. ____________________________, a ___________________ Date: By: _______________, Its: ____________ [notary required] Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D 2025-1507 DA-2025-02 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. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D 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. Docusign Envelope ID: A1725300-D75D-4EBF-8AE1-ED57E3C0A01D