RESOLUTION NO. ________-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 ZENGROW, INC.
WHEREAS, the City of Barstow (the “City”) entered into a Commercial Cannabis Business Development Agreement (“Development Agreement”) with Zengrow, Inc. (“Zengrow”) on December 19, 2022 concerning the property located at 2861 Lenwood Road, Building #2, Barstow, CA 92311 (APN 0428-211-26-0000) (the “Property”); and WHEREAS, the Development Agreement required Zengrow 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 Zengrow 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 Zengrow to annually renew its permit and pay the permit renewal fee established by City Council resolution; and
WHEREAS, City Council Resolution No. 5169-2024 set the cannabis renewal application fee for permits renewed in 2024 at $14,107.85; and
WHEREAS, the Development Agreement required Zengrow to pay an annual operating fee and community benefits program calculated in accordance with the formula set forth in the Development Agreement; and
WHEREAS, Zengrow’s annual operating fee and annual public benefits program fee due the City for 2024 under the Development Agreement is $108,570.00 and $43,428.00, respectively; and
WHEREAS, the Development Agreement requires Zengrow to pay a 25% late penalty on operating fees and permit renewal fees that are more than 30 days past due; and WHEREAS, Zengrow owes the City late penalties resulting from its failure pay its annual operating and permit renewal fees within 30 days of them becoming due in the amounts of $27,142.50 and $3,526.96, respectively; and
WHEREAS, Zengrow breached the Development Agreement by failing to pay its operating fee, operating fee late penalty, permit renewal, permit renewal late penalty, and community benefits program fee; and
WHEREAS, the Development Agreement allows the City to terminate the Development Agreement after providing Zengrow with written notice specifying the nature of the breach, specifying the manner in which Zengrow could cure the breach, and providing Zengrow at least 30 days to cure the breach; and
WHEREAS, Barstow Municipal Code Section 19.46.080 required the City to give Zengrow notice of its intention to terminate a Development Agreement; and WHEREAS, the City served Zengrow with a notice of breach with right to cure on January 21, 2025 that provided Zengrow 35 days to cure the breaches in compliance with the development agreement and Barstow Municipal Code Section 19.46.080; and WHEREAS, the City notified Zengrow of its intent to terminate the Development Agreement in notices to Zengrow sent on February 5, 2025 and May 14, 2025; and WHEREAS, Zengrow failed to cure the breaches and is in default of the Development Agreement; and
WHEREAS, the City has the right to terminate the Development Agreement due to Zengrow’s breaches of the Development Agreement and Barstow Municipal Code Chapter 19.27 and Zengrow’s failure to timely cure said breaches; 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, City Council conducted a duly noticed and advertised public hearing on June 17, 2025, which was continued to and concluded on July 15, 2025, concerning the cancellation and termination of 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 Zengrow’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 Zengrow’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. 996-2022, adopted on January 17, 2023 concerning the property located at 2861 Lenwood Road, Building #2, Barstow, CA 92311, 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 Zengrow 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 15th day of July, 2025, by the following vote:
__________________________________
Timothy Silva, Mayor
ATTEST:
__________________________________
Andrea Flores, City Clerk
__________________________________
Matthew Summers, City Attorney
I, Andrea Flores, City Clerk of the City of Barstow, do hereby certify that the foregoing Resolution No. ___________-2025 is the actual Resolution duly and regularly adopted by the City Council following a public hearing at a Joint Special Council/BFPD meeting on the July 15, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Andrea Flores, City Clerk