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RESOLUTION NO. XXXXX-2025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BARSTOW,
CALIFORNIA APPROVING THE TERMINATION OF THE COMMERCIAL
CANNABIS BUSINESS DEVELOPMENT AGREEMENT AND ALL
ADDENDA THERETO PREVIOUSLY ENTERED INTO BETWEEN THE
CITY OF BARSTOW AND MERCHANTS BARSTOW 4 LLC
WHEREAS, the City of Barstow (the “City”) entered into a Commercial Cannabis Business Development Agreement (“Development Agreement”) with [Operator] (“Operator”) on [date] concerning the property located at 2845 Lenwood Rd, Building 4 (APN 0428-211-26-0000); and
WHEREAS, the Development Agreement required Operator to comply with all provisions of Barstow Municipal Code Chapter 19.27, et seq.; and
WHEREAS, the Development Agreement and Barstow Municipal Code Chapter 19.27 required Operator to obtain a cannabis business permit and pay a cannabis permit application fee prior to operating a cannabis business within the City; and WHEREAS, the Development Agreement and Barstow Municipal Code Chapter 19.27 required Operator to annually renew its permit and pay the permit renewal fee established by City Council resolution; and
WHEREAS, City Council Resolution No. 5096-2022 set the cannabis renewal application fee for permits renewed in fiscal year 2023 at $14,107.85; and WHEREAS, City Council Resolution No. 5169-2024 set the cannabis renewal application fee for permits renewed in fiscal year 2024 at $14,107.85; and WHEREAS, Operator breached the Development Agreement by failing to pay the required permit renewal fee to the City for fiscal year(s) 2023/2024 and 2024/2025 as required by the Development Agreement and Barstow Municipal Code Chapter 19.27; and WHEREAS, the Development Agreement allows the City to terminate the Development Agreement after providing Operator with written notice specifying the nature of the breach, specifying the manner in which Operator could cure the breach, and providing the Operator at least 30 days to cure the breach, if Operator fails to cure the breach; and WHEREAS, Barstow Municipal Code Section 19.46.080 requires the City to give notice to the Developer of its intention to terminate a Development Agreement; and WHEREAS, the City served Operator with a notice of default with right to cure on January 21, 2025 that provided Operator 35 days to cure the breach in compliance with the development agreement and Barstow Municipal Code Section 19.46.080; and WHEREAS, Operator failed to cure the breach(es) and is in default of the Development Agreement; and
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WHEREAS, the City has the right to terminate the Development Agreement due to Operator’s breach(es) of the Development Agreement and Barstow Municipal Code Chapter 19.27 and Operator’s failure to timely cure said breach(es); and WHEREAS, pursuant to Section 15061(b)(3) of the State Guidelines to implement the California Environmental Quality Act (CEQA), there is no possibility the proposed cancellation will have a significant effect upon the environment and, therefore, it is exempt from CEQA; and WHEREAS, on March 17, 2025, the City Council conducted a duly noticed and advertised public hearing on the Development Agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BARSTOW DOES HEREBY FIND, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are a substantive part of this resolution.
SECTION 2. The City Council so finds and determines that the termination and cancellation of this Development Agreement is consistent with the objectives, policies, land uses, and programs specified in the General Plan; complies with the other standards and criteria required in Chapter 19.46 of the Barstow Municipal Code, is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the property is located; is in conformity with public convenience, general welfare, and good land use practices; will not be detrimental to the health, safety, and general welfare; and will not adversely affect the orderly development of the property. Termination and cancellation of the Development Agreement will stop Operator’s unpaid fees owed to the City from continuing to accumulate and enable another cannabis business to operate at the property in compliance with all development agreement and city code requirements. The City Council finds that Operator’s substantial default has been ongoing for a long period of time and the Development Agreement should be terminated.
SECTION 3. Based upon the above findings and determinations, the City Council by adoption of this Resolution does hereby terminate and cancel said Development Agreement, which was originally approved by Ordinance No. 998-2022, adopted on January 17, 2023 concerning the property located at 2845 Lenwood Rd, Building 4, APN 0428-211-26-0000.
SECTION 4. The respective officers and staff of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including, without limitation, sending a copy of this Resolution to Operator and the owner of the premises identified in the Development Agreement and preparing and recording a Termination of Development Agreement against the property.
SECTION 5. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this ____ day of ______, 2025, by the following vote:
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Timothy Silva, Mayor
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ATTEST:
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Andrea Flores, City Clerk
I, Andrea Flores, City Clerk of the City of Barstow, do hereby certify that the foregoing Resolution No. XXXX-2025 is the actual Resolution duly and regularly adopted by the City Council at a regular meeting on the March 17, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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Andrea Flores, City Clerk