development agreement to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5) year term in exchange for public benefits;
WHEREAS, the approval of CUP No. 2023-067 would promote the public health, safety, and general welfare because it would facilitate the orderly development of the Subject Site, create a physical environment that would be consistent with and complement the City's goals and visions since new construction would comply with BGMC provisions for building, energy efficiency, and development standards; protect natural resources from adverse impacts because vegetation installed would be drought tolerant and found by an arborist to likely thrive at the Subject Site; improve, upgrade, and create additional community facilities and infrastructure, enhance services and assist in implementing the goals of the General Plan since the proposed development would comply with low impact development guidelines to manage stormwater runoff in a way that mitigates the impacts of pollution to rivers, lakes, streams and the ocean; and reduce the economic risk to the surrounding community since a development agreement would establish certain development rights on real property in exchange for public benefits to the City; WHEREAS, Policy No. 3 of the General Plan Land Use Element provides that the City shall promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of the commercial areas in the City;
WHEREAS, the Project is consistent with Policy No. 3 because the Project would result in two commercial uses at the Subject Site thereby emphasizing the commercial identity of the commercial areas in the City;
WHEREAS, Policy No. 4 of the General Plan's Land Use Element asserts that the City shall encourage private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements; WHEREAS, the approval of the CUP in conjunction with a DA authorizing the Project shall ensure a long-term commercial conditional use of the Subject Site for a period of up to 10 years and would be required to comply with all applicable state and local environmental requirements and is therefore consistent with Policy No. 4; WHEREAS, Policy No. 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;
WHEREAS, the Project is also consistent with Policy No. 5 because it proposes to employ locally and add potential stability to the area through increased property values associated with new construction and the conduct of well -run businesses could impact other businesses for increased area economic viability; WHEREAS, the approval of CUP No. 2023-067 would not jeopardize, adversely Exhibit 2 206
Resolution #PC 2024-04
affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare of the community because the Project would revitalize and reinforce the security to an existing commercial development which has been the source of several complaints of transient and homeless activity throughout the years;
WHEREAS, the Subject Site meets the siting requirements including the areas that prohibit a cannabis retail use pursuant to Section 9.20.160 of the BGMC, inclusive of the 600 -foot distancing requirement of day care centers, youth centers, schools, and parks and 500 -foot distancing requirement from any other cannabis uses; WHEREAS, the Applicant has provided a Lighting Plan, Odor Mitigation Plan, and Security Plan (incorporated herein by reference) that aim at providing safe and secure environment for both customers and the surroundings, and that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, the Subject Site is approximately 21,379 square feet, rectangular in shape, and is currently developed with a 6,064 square foot commercial building and is therefore adequate in size, shape, and topography to accommodate the development features prescribed in Title 9 of the BGMC to support the proposed business; WHEREAS, the Subject Site is located on Gage Avenue, which is one of the commercial corridors in the City and designated as a secondary highway in the 2022 Transportation and Circulation Element, as a part of the City's General Plan; WHEREAS, Gage Avenue is designated as a collector street and designed to move traffic from collectors to boulevards and keep through traffic off of residential, local streets; WHEREAS, the introduction of a cannabis retail use in an already -developed commercial corridor that operates similarly to other retail operations is unlikely to result in a substantial increase in traffic volumes pedestrian traffic; WHEREAS, the Subject Site is adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection;
WHEREAS, Applicant and Developer propose to address concerns relating to safety, odor, and nuisance with lighting, odor mitigation, and security plans that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, 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. (Development Agreement Statute), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights on real Exhibit 2 200
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property in exchange for public benefits;
WHEREAS, consistent with the requirements of the Development Agreement Statute, the City adopted Resolution 2023-043 ("Development Agreement Procedures") authorizing the use and establishing the procedures and requirements for the consideration of development agreements within the City for a cannabis retail use; WHEREAS, the Project would repurpose an existing building on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements, it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would not cause a direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities);
WHEREAS, pursuant to California Government Code Sections 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter;
WHEREAS, on February 21, 2024, the Planning Commission held a public hearing and considered public comments, reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 approving a development agreement;
WHEREAS, after deliberations, the Planning Commission requested that staff prepare a report addressing issues related to the proposed public benefits and comparison to the taxes and revenues in other neighboring cities, and continued the item until the next regularly scheduled Planning Commission meeting on March 20, 2024; WHEREAS, on March 20, the Planning Commission was unable to convene a meeting due to lack of quorum, therefore continuing the item to the next regularly scheduled Planning Commission meeting on April 17, 2024;
WHEREAS, on April 17, 2024, the Planning Commission reopened the public hearing for the item and considered public comments, reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 approving a development agreement to permit the use for up to 10 years in exchange for public benefits;
WHEREAS, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to CUP No. 2023-067 to permit a cannabis retail use at the Subject Site; and
Exhibit 2 2
Resolution #PC 2024-04
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2024-04, conditionally approving CUP No. 2023-067 subject to the adoption of Ordinance No. 941 authorizing execution of DA No. 2023-067.
NOW, THEREFORE, THE PLANNING COMMISSION DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated in full, herein.
SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2023-067:
Is not in conflict with the General Plan for the area and complies with the standards in Title 9 of the Bell Gardens Municipal Code. ii. Does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare. iii. The Subject Site for the proposed conditional use is adequate in size, shape, and topography to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in BGMC Title 9, as required by the Planning Commission as a condition of approval in order to integrate said use with the existing uses in the neighborhood. iv. The Subject Site for the proposed conditional use is served by highways or streets adequate in width and improved as necessary to carry the kind and quantity of traffic such use would generate.
v. The Subject Site is served by the required utilities, including electricity and water supply of quantities and pressures required by the fire code to provide adequate protection.
SECTION 3. In accordance with CEQA and the CEQA Guidelines, CUP No. 2023- 067 is categorically exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities).
SECTION 4. The Planning Commission hereby grants the Applicant's request related to CUP No. 2023-067 to permit the Project at the Subject Site, subject to the following conditions incorporated herein in full, by reference (Exhibit "A").
SECTION 5. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
SECTION 6. This CUP shall become effective upon the expiration of the 15 Exhibit 2 208
Resolution #PC 2024-04
calendar days after approval by the Planning Commission unless an appeal of the CUP has been filed with the City Clerk pursuant to Section 9.50.090 of the BGMC.
PASSED, APPROVED AND ADOPTED this 17th day of April 2024.
MIGUEL DE LA ROSA, CHAIRPERSON
ATTEST:
ERIKA GUTIERREZ, PLANNING SECRETARY
APPROVED AS TO FORM:
LLOYD PILCHEN, ASSISTANT CITY ATTORNEY
Exhibit 2 280
Resolution #PC 2024-04
EXHIBIT "A"
CUP NO. 2023-067 — CONDITIONS OF APPROVAL
General Operating Conditions
1. The Subject Site shall be improved, maintained, and operated in accordance with:
a. The application on file in the Community Development Department and Exhibits 1 through 14 included in the staff report which are attached and incorporated herein by this reference.
b. All applicable laws, including but not limited to, the BGMC, the Bell Gardens Zoning Ordinance, the Business and Professions Code, Los Angeles County Department of Public Health, and the California Department of Cannabis Control (DCC).
c. All the conditions of approval as set forth in this Planning Commission Resolution for CUP No. 2023-067.
d. The terms and conditions set forth in DA No. 2023-067.
2. All conditions stated herein shall be binding upon the Applicant, their successors -in - interest, and assigns; shall run with the land; shall limit and control the issuance and validity of certificates of occupancy, and shall restrict and limit the construction, location, and conditional use and maintenance of all land and structures adjacent to or within the vicinity of the Subject Site. Failure to adhere to these conditions of approval may result in revocation pursuant to the process set forth in Section 9.62.010 of the BGMC.
The conditions herein shall run with the land. However, any successor -in -interest must obtain the proper approvals to assign or transfer the rights, interests, and obligations pursuant to the DA No. 2023-067 in order to effectuate the rights and obligations set forth in this CUP and obtain a business regulatory permit pursuant to BGMC Chapter
5.12 and Chapter 5.64.
3. CUP No. 2023-067 shall be valid strictly for a state DCC Type 10 license as defined by the DCC . Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent sign off from the Building and Safety Division for the Subject Site, the Applicant shall submit a copy of its business regulatory permit and Type 10 license as approved by DCC to the City of Bell Gardens Community Development Department. Cannabis cultivation, cannabis manufacturing, cannabis laboratory testing, and cannabis distribution are strictly prohibited and shall constitute grounds for revocation and termination of all rights hereunder.
All rights hereunder shall terminate within eighteen (18) months from the date of Exhibit 2 380
Resolution #PC 2024-04
issuance of the first building permit for the Subject Site after the approval of CUP No. 2023-067 unless DA No. 2023-067 is approved for a longer period of time, not to exceed ten (10) years. For the purposes of this condition, "building permit" shall have the same definition as BGMC Section 9.20.160(D).
CUP No. 2023-067 shall be valid strictly in compliance with DA No. 2023-067; any privileges granted hereunder shall become null and void should there be a violation hereof.
4. The abandonment or non -implementation of the conditions stated in this CUP No. 2023-067 for a period of one (1) year from the effective date of the CUP shall terminate the CUP, and any privileges granted there under shall become null and void; unless a written time extension for a period not to exceed one (1) year is granted by the Planning Commission. A written request to extend the time to comply with the conditions of approval stated in the CUP must be submitted to the Bell Gardens Community Development Department at least thirty (30) days prior to the expiration of the one (1) -year period.
5. Consistent with Condition No. 2, in the event of a transfer of ownership, rights, interests, obligations and/or privileges of the Subject Site involved with this CUP No. 2023-067, the transferee shall be fully informed and consent to the conditional use and development of Subject Site as set forth by this CUP together with all conditions, which are stated herein.
6. The Applicant shall comply with all applicable City, county, DCC, and other state regulations as they pertain to the sale of cannabis. Violation of any of the conditions of CUP No. 2023-067 or of any city, county and/or state law or regulation pertaining to the sale of cannabis shall be cause for revocation and termination of all rights hereunder.
7. The Applicant shall obtain all necessary permits and licenses from the state, City, and county agencies, including but not limited to, Fire Department and Industrial Waste for the proposed improvements and business operations on the Subject Site.
8. Prior to issuance of a building permit, the Applicant shall submit payment for the Bell Gardens Development Impact Fee(s) pursuant to BGMC Chapter 3.27.
9. Prior to issuance of a building permit, the Applicant shall submit design or payment for the Bell Gardens Art in Public Places pursuant to BGMC Chapter 9.71.
10. City staff, including but not limited to, the City Manager, Community Development Department, Bell Gardens Police Department, Los Angeles County Fire Department, and DCC shall have the right -of -entry at any time to inspect the Subject Site to verify compliance with these conditions of approval, terms set forth in DA No. 2023-067, and the BGMC, including but not limited to the operating requirements set forth in Section
5.64.040 and all state and county laws and regulations.
Exhibit 2 362
Resolution #PC 2024-04
11. Prior to commencing operations, owner/operator must possess a valid retail license, issued by the Department of Cannabis Control, pursuant to Division 10, commencing with Section 26000, of the California Business and Professions Code.
12. Prior to commencing operations, the owner/operator must obtain a business regulatory permit pursuant to BGMC Chapter 5.12 and Chapter 5.64. Consistent with the requirements Section 5.64.020 of the BGMC, the owner/operator shall commence operations within one (1) year of issuance of a business regulatory permit. Failure to commence operations within one (1) year of the issuance of a business regulatory permit shall constitute grounds for revocation and termination of all rights hereunder.
13. The Director of Community Development and/or their designee(s) shall be authorized to make minor modifications to this CUP No. 2023-067 or any of the conditions specified herein if the modifications shall achieve substantially the same results as would strict compliance with the approved conditional use permit and conditions.
14. The Subject Site shall be developed, maintained, and used in a neat, quiet, and orderly condition and all uses on the Subject Site shall be operated in a manner that shall not disturb or be detrimental to adjacent properties, surrounding land uses, or occupants.
15. Hours and days of exterior building construction and site improvements shall be as follows: Monday through Saturday, not before 8:00 A.M. and not after 7:00 P.M. on the same day. No construction or grading shall take place on Sundays and City observed holidays.
16. The Applicant shall ensure that the Subject Site is properly maintained, secured, and free of debris at all times/phases of construction.
17. Prior to commencing the construction of the Project, the Applicant shall submit a site plan indicating on -Subject Site vehicular and pedestrian traffic circulation during all stages of construction to the Community Development Department for review and approval.
18. The Subject Site and surrounding area shall be maintained in a manner free of graffiti. Any graffiti that should appear on buildings, walls, or other private property on the Subject Site shall be removed within forty-eight (48) hours of being observed or reported. If painting is required, the paint shall be identical to the existing color.
19. During operations, the Subject Site and adjacent public rights -of -way (ROW), inclusive of the alley adjacent north of the Subject Site, shall be maintained in a clean and well - kept condition, free of debris and litter at all times.
20. The Subject Site's landscaping areas shall be fully planted pursuant to the approved landscape plan and always maintained (free from debris, litter, and wilted or dead Exhibit 2 362
Resolution #PC 2024-04
live scape removed and replaced) for the life of the permit.
21. The Applicant and/or their designee shall ensure that any existing public telephones located on the premises be removed from the Subject Site. The installation of any outside public telephone shall be prohibited on the Subject Site and the public ROW.
22. The hours of operation at the Subject Site shall be restricted as follows: 10:00 a.m. until 10:00 p.m. Monday through Sundays, with the last delivery order to be placed by 9:00 p.m. and all delivery vehicles returned no later than 10:00 p.m.
23. The installation of signs on the Subject Site shall be in accordance with the provisions in BGMC Chapter 9.48. The Applicant shall obtain approval from the Community Development Department in this conditional use permit site plan update and a building permit for the installation of any signs on the property shall be obtained prior to the installation. Temporary signs, such as banners, pennants and flags shall be prohibited, except for any traffic/safety signs specific to construction activity.
24. Signs prohibiting loitering, smoking, and vaping on or around the Subject Site shall be posted and maintained to the satisfaction of the Bell Gardens Police Department prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
25. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the Applicant shall work closely with the Bell Gardens Police Department in updating the Security Plan (Exhibit 10) to guarantee adequate security measures are provided on the Subject Site, inclusive of the surface parking lot, at all times.
26. There shall be no outdoor storage permitted on the Subject Site at any time.
Cannabis Retail — Conditional Use Operating Conditions
27. These conditions of approval must be posted in a conspicuous location for public viewing within the establishment on a continuous basis for the life of the Project beginning on the date that operations at the Subject Site commence.
28. The establishment shall only allow patrons of the age twenty-one (21) and older, with presentation of a valid government -issued identification card.
29. No persons under the age of twenty-one (21) shall be employed to sell cannabis or cannabis products at the Subject Site.
30. An electronic age verification device shall be purchased and retained at the Subject Site to determine the age of any individual and shall be installed at each point -of -sale location prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
Exhibit 2 385
Resolution #PC 2024-04
31. The electronic age verification device shall be maintained in operational condition at all times, at each point -of -sale location, and all employees shall be instructed in its use. If an age verification device fails to operate at any point -of -sale location, no sales shall take place at that point -of -sale location until the age verification device is repaired and operational.
32. Owner/operator shall abide by all laws applicable to cannabis retailers pursuant to the Medicinal and Adult -Use Cannabis Regulation and Safety Act (Bus. & Prof. Code § 26000 et seq.) and related Medicinal and Adult -Use Commercial Cannabis Regulations (Cal. Code Regs., tit. 4, § 15000 et seq.).
33. Signs advertising cannabis brands or the availability of cannabis or cannabis products for sale at the Subject Site shall not be visible from the exterior of the building at all times.
34. The display of cannabis and cannabis products shall be interior only (no outdoor display) at all times.
35. Other than limited amounts of cannabis used for interior display purposes or immediate sale, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss at all times.
36. There shall be no food, beverage, video or pinball games, televisions, or similar loitering attractions accessible to customers, persons engaged in sales or any transactions, and/or patrons, on the Subject Site at all times.
37. There shall be no samples provided for the on -site consumption of cannabis and cannabis products at any time.
38. There shall be no sale or display of cannabis products that is in the form of an alcoholic beverage, including, but not limited to, an infusion of cannabis or cannabinoids derived from industrial hemp into an alcoholic beverage at any time.
39. There shall be no sale of cannabis and cannabis products over the daily legal limit to any single patron at any time, pursuant to California Health and Safety Code Section 11357.
40. All cannabis and cannabis products purchased by patrons shall not leave the Subject Site unless they are placed in an opaque packaging at any times.
41. Consumption of cannabis and cannabis products on -site is strictly prohibited, outside of the building either on the public ROW or anywhere on the Subject Site at all times.
42. Pursuant to California Labor Code Section 6404.5(c), smoking in the facility shall be Exhibit 2 385
Resolution #PC 2024-04
strictly prohibited at all times. There shall be no display of ashtrays, or other receptacles for the purpose of collecting smoke -related debris within the interior or exterior of the building at the Subject Site.
43. Cover charges, entry fees, or minimum purchases for patrons visiting the facility shall be strictly prohibited.
44. The authorized conditional use shall be conducted at all times with due regard for the character of the surrounding neighborhood, and the right is reserved to the City Manager, Community Development Director, or their designee(s) to impose additional corrective conditions, if, it is determined that such conditions are proven necessary for the protection of persons in the neighborhood or occupants of adjacent or nearby properties.
45. The facility shall operate in accordance with the Security Plan, incorporated by reference and attached hereto as Exhibit 10 at all times. Surveillance recordings shall be maintained for a minimum period of sixty (60) days and are intended for use by the Bell Gardens Police Department.
46. The facility shall operate in accordance with the Lighting Plan, incorporated by reference and attached hereto as Exhibit 8, at all times. All exterior portions of the site shall be adequately illuminated in the evening so as to make discernable the faces and clothing of persons utilizing the space. Lighting shall be directed onto the Subject Site without being disruptive to uses at the adjacent properties.
47. The facility shall operate in accordance with the Odor Mitigation Plan, incorporated by references and attached hereto as Exhibit 9 at all times.
48. The Bell Gardens Police Department shall be notified within twenty-four (24) hours of any diversion, theft, loss, or other criminal activity on the premises that occurs at any point after the approval of this CUP.
Building/Site Improvements
49. The proposed site improvements on the Subject Site shall be subject to review and approval by the Planning and Building and Safety Divisions. All proposed improvements shall be completed in accordance with the provisions of the California Building Code as amended by Title 26 of the Los Angeles County Building Code. All required permits from the Building and Safety Division shall be secured prior to commencing the construction of the Project. For the purposes of this CUP, the term "construction" includes any demolition, grading, and construction activities, inclusive of tenant improvements.
50. All improvements at the Subject Site shall comply with all Americans with Disabilities Act (ADA) requirements as part of the Building and Safety plan check process.
Exhibit 2 366
Resolution #PC 2024-04
51. The Applicant shall be responsible for submitting plans for Building and Safety plan check and obtain permits for all the work proposed on the Subject Site.
52. Vehicles associated with the construction activities at the Subject Site shall not be permitted to park on the public ROW, inclusive of the alley adjacent of the Subject Site.
53. Temporary storage of building materials shall be contained within the Subject Site and shall be properly secured and screened during all stages of construction.
54. During all stages of construction, the Subject Site shall maintain a six-foot (6') high chain -link fence and gates around the entire perimeter of the Subject Site. The gates shall be closed and locked after construction hours.
55. Contractors and subcontractors engaged in the construction activities at the Subject Site shall obtain a business license and all required permits from the City of Bell Gardens.
56. The Project includes no consideration or approvals for signage. Prior to the installation of any signs at the Subject Site, the Applicant shall submit three (3) sets of sign plans for review and approval to the Community Development Department.
Sign plans shall include elevations, lettering, colors, dimensions, and installation methods.
57. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit a color and material sample board for the exterior building materials and paint colors for trims, wall surfaces, moldings, decorative awnings, frame and glass for all windows and doors, and other exterior building elements shall be subject to review and approval by the Community Development Department. Subsequent construction of the Project shall substantially comply with the approved exterior building elements.
58. Prior to issuance of a building permit, the Applicant shall submit for review and approval to the Community Development Department a sample of the window frame and glass that shall be utilized on the door and windows of the building. Pursuant to Section 9.20.160(B)(3) of the BGMC windows facing the street frontage shall be clear, untinted glass. Mirror, reflective, or tinted glass may only be permitted as an architectural or decorative accents and shall comprise no more than twenty percent (20%) of the window. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.
59. Decorative railings and grilles that are placed in front of or behind windows shall be at least 75 percent (75%) open to perpendicular view and no more than six feet (6') in height. Security gates and grilles shall be prohibited on the exterior of any structure.
Exhibit 2 380
Resolution #PC 2024-04
60. Pursuant to Section 9.38.110 of the BGMC, a minimum loading space of 250 SF is required. Parking depicted on the Subject Site shall be iterated to provide a loading space prior to submittal of plans to Building and Safety plan check.
61. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit to the Community Development Department, pursuant to Section 9.48.030 of the BGMC, signage specifications for approval.
62. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the roof drainage system shall be integrated into the walls of the building so that there are no visible downspouts to the satisfaction of the Building and Safety Division.
63. Any new roof mounted mechanical equipment, including any air compressor units, shall be installed a minimum of six inches (6") below the lowest building parapet in order to prevent the visibility from public ROW. Compliance shall be demonstrated to the satisfaction of the Building and Safety Department prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
64. The rolling gates located along the public alley ROW shall remain closed at all times, with the exception of trash service days.
65. The following construction practices shall be implemented by all Project contractors to reduce construction noise levels:
a. Ensure that construction equipment is properly muffled according to industry standards, and all equipment shall utilize noise shielding and muffling devices. b. Locate the construction staging area and noise -generating equipment away from adjacent residents as much as feasible.
66. The Applicant shall work closely with City staff to coordinate appropriate accommodations for commercial waste service on the Subject Site prior to issuance of any Project building permit. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.
67. Proposed and required on -Subject Site and off -Subject Site improvements shall be completed by the Applicant prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.
68. Water heater enclosures, vents, flashings, pipes, and conduits for solar or other wall - mounted equipment shall be painted the same color as the surface to which they are attached to the satisfaction of the Building and Safety Department, prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent thereof by the City on the Subject Site.
Exhibit 2 366
Resolution #PC 2024-04
69. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all cable television service connections to the Project shall be installed underground. All cable and connectors shall be screened completely from view and within the building served.
Visible cabinets and boxes shall be treated to match the materials and colors of the buildings. The Applicant is responsible for contacting the cable company and arranging cable installation at the appropriate stage of construction. The type and location of cable installation is subject to approval of the Community Development Department and the construction coordinator of the cable television company servicing the area prior to issuance of Project building permits.
70. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all electrical service connections to the Project shall be installed underground. All surface or ground mounted mechanical equipment including terminal boxes, pull boxes and electric meter cabinets shall be screened from public view and treated to match the materials and colors of the adjacent building. The Applicant is responsible for contacting Southern California Edison and arranging electrical service at the appropriate stage of construction. Installation of mechanical equipment is subject to approval by the Community Development Department and the customer service planner at Southern California Edison Company prior to issuance of Project building permits. For the purposes of this condition, "building permit" shall have the same definition as Section
9.20.160(D) of the BGMC.
71. The trash enclosure on the Subject Site shall be constructed with a six-foot (6') high split face concrete masonry unit block wall. A six-foot (6') high metal gate shall be installed and provided with a self -closing and self -latching mechanism. The top of the structure shall be protected with a decorative metal trellis.
Landscaping
72. All designated landscaping areas, including but not limited to parkway areas shall be fully planted to the satisfaction of the Building and Safety Division prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card or equivalent thereof by the City.
73. Landscaped areas shall always be maintained by the Applicant at all times.
Public Works Department
74. The Applicant shall designate an ADA path of travel in ROW, and complete repairs to concrete sidewalks and drive approaches for ADA compliance.
Exhibit 2 388
Resolution #PC 2024-04
Parking Lot/Site Maintenance
75. The Subject Site and adjacent public ROW shall be cleared of all construction debris prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent approval by the Community Development Department.
76. All parking spaces, drive aisles, walkways, shall be free of gouges, ruts, and/or gaps in the paved surface area and shall be maintained in good working order to not constitute a safety hazard to the public.
77. The proposed parking lot area including but not limited to vehicle maneuvering areas within the Subject Site shall be improved with asphalt pavement to the satisfaction of the Community Development Department. Parking lot and public ROW, inclusive of sidewalk areas immediately adjacent to the Subject Site shall be pressure washed quarterly to remove oil stains and maintained clear of trash, debris, and outside storage at all times.
78. All designated parking spaces shall be stripped in accordance with the BGMC and provided with concrete wheel stops at the front end of each parking space.
79. Any required ADA truncated domes shall be composed of stamped concrete and shall be a dark gray color.
80. The repair or maintenance of any vehicles on the Subject Site, public ROW such as a street or alley, including but not limited to oil change or adding fluids to vehicles, shall be strictly prohibited. Signs shall be posted throughout the parking lot area stating that repair and maintenance activities at the Subject Site are prohibited.
81. Inoperable vehicles shall not be parked within any designated parking spaces, drive aisle, or public ROW adjacent to the Subject Site at any time.
82. Prior to issuance of a building permit, the Applicant shall submit fence/walls plans to the Community Development Department, Planning Division for review and approval in accordance with BGMC Chapter 9.32 (Fence, Walls, and Hedges).
83. Prior to the issuance of a building final, a suitable, functional design of a new perimeter fence surrounding the Subject Site shall be installed, where applicable, to the satisfaction of the Community Development Department. The existing metal fence at the front and rear property lines of the Subject Site shall be refurbished with materials and colors compatible with the overall Project design. The type and color of the metal fence shall be subject to review and approval by the Community Development Department. All fences and walls on the Subject Site shall be maintained and in good condition at all times.
Exhibit 2 300
Resolution #PC 2024-04
84. The heights of all new fences shall be measured from the highest finished grade level on either side of the Subject Site's property line.
85. The existing recycling collection facility located at the Subject Site shall cease operations on the Subject Site. Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card or equivalent approval by the Community Development Department all structures, containers and equipment supporting the recycling collection facility shall be removed from the Subject Site to the satisfaction of the Building and Safety Division.
Miscellaneous
86. The installation of outside public telephones shall be prohibited on the Subject Site and the public ROW.
87. The owner of the Subject Site, the Project Applicant, if different from the property owner, and each of their heirs, successors in interest, and assigns, shall defend, indemnify, and hold harmless the City and its officials, agents, officers, and employees from any and all claims, actions, or proceedings brought by any party to attack, set aside, void or annul, rescind, or otherwise challenge the approval of the Project or the approval of any entitlement related to the Project by the City Council, Planning Commission, or its staff, including but not limited to, environmental determinations.
Such indemnification and hold harmless shall include damages, judgments, settlements, penalties, fines, and defensive costs and expenses, incurred by, or ordered against the City in connection with or arising out of such claims, actions, or proceedings, including but limited to, interest, reasonable attorneys' fees and costs, or expert witness fees, incurred by the City. The City shall promptly notify the Applicant of any claim, action or proceeding and the City and Applicant shall mutually cooperate fully in the defense thereof.
88. The Applicant shall sign, notarize, and return to the Community Development Department an affidavit accepting all conditions of approval of this CUP No. 2023- 067 within fifteen (15) days from the approval of Resolution #PC 2024-04 and CUP No. 2023-067. The Applicant acknowledges and understands that all conditions set forth in this Resolution are conditions precedent to the Commission's grant of approval and failure to comply with any condition contained herein shall render this CUP non -binding as against the City and shall confer the Applicant no legal rights under the law. This conditional use permit shall not become effective unless and until the Applicant returns the fully executed, notarized affidavit to the Community Development Director within the time stated. Failure to comply with this condition within the prescribed time period above shall render this CUP null and void.
Exhibit 2 390
RESOLUTION #PC 2024-05
RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF BELL GARDENS RECOMMENDING
THE ADOPTION ORDINANCE NO 941 APPROVING
DEVELOPMENT AGREEMENT NO. 2023-067
WHEREAS, Sean Maddocks, representing Norman Yousif of OTC Bell Gardens, LLC (Applicant), has requested approval of a development agreement (DA) and a conditional use permit (CUP) to develop and operate a storefront cannabis retail business in the City of Bell Gardens (City);
WHEREAS, Ordinance No. 941 would authorize the City to enter into an agreement with the Applicant and property owner to establish certain development rights in exchange for public benefits for a five (5) year term, with an option for an additional five (5) year extension, by and between OTC Bell Gardens, LLC and the City at 5605 Gage Avenue (Subject Site) in connection with a CUP authorizing a storefront cannabis retail use, subject to conditions of approval inclusive of the execution of the DA; WHEREAS, 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. ("Development Agreement Statute"), which authorizes the City and an individual with an interest in real property to enter into a development agreement in order to establish certain development rights on real property in exchange for public benefits; WHEREAS, consistent with the requirements of the Development Agreement Statute, the City Council adopted Resolution No. 2023-43 (Development Agreement Procedures) on June 12, 2023, authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City; WHEREAS, the Development Agreement Procedures permit a cannabis retail use for a term not to exceed 10 years in exchange for public benefits; WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months unless an applicant executes a development agreement with the City; WHEREAS, the Subject Site is designated within the City's General Plan Land Use Element as Mixed Use (Commercial/Residential) (MU);
WHEREAS, the MU Land Use Designation has been concentrated on parts of Eastern Avenue and Gage Avenue and refers to a combination of commercial and residential uses working in tandem;
WHEREAS, the corresponding zone for the MU Land Use Element Designation is the Mixed -Use (M -U) Zone, which conditionally permits a cannabis use, subject to certain Exhibit 2 392
Resolution #PC 2024-05
locational requirements and development standards and the Subject Site is located within Zone M --U;
WHEREAS, the Applicant has applied for a CUP to permit a cannabis retail use at the Subject Site;
WHEREAS, in conjunction with the CUP, the Applicant has requested for a development agreement to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5) year term in exchange for public benefits that shall obligate the Applicant to provide an up -front payment of One Hundred Thousand Dollars ($100,000) upon the effective date of the development agreement, to be renewed on an annual basis as well as the payment of quarterly public benefits in an amount equivalent to 10 percent (10%) of gross receipt sales; WHEREAS, pursuant to the City's Development Agreement Procedures, 80 percent (80%) of the public benefits derived from DA No. 2023-067 shall be dedicated to youth and educational programming and resources for the City's housing programs; WHEREAS, Policy No. 3 of the General Plan Land Use Element provides that the City shall promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of the commercial areas in the City;
WHEREAS, the Project is consistent with Policy No. 3 because the Project would result in two (2) commercial uses at the Subject Site, thereby emphasizing the commercial identity of the commercial areas in the City;
WHEREAS, Policy No. 4 of the General Plan's Land Use Element asserts that the City shall encourage private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements; WHEREAS, the CUP in conjunction with a DA authorizing the Project for a period of up to 10 years would ensure a long-term commercial conditional use of the Subject Site that is required to comply with all applicable state and local environmental requirements and is therefore consistent with Policy No. 4;
WHEREAS, Policy No. 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;
WHEREAS, the Project is consistent with Policy No. 5 because it proposes to involve the revitalization of an existing commercial site; WHEREAS, the Project is also consistent with Policy No. 5 because it proposes to employ locally and add potential stability to the area through increased property values associated with revitalization of an existing commercial structure and the conduct of well - Exhibit 2 392
Resolution #PC 2024-05
run businesses could impact other businesses for increased area economic viability; WHEREAS, the DA would facilitate the orderly development of the Subject Site; create a physical environment that would be consistent with and complements City's goals and visions; protect natural resources from adverse impacts; improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals and policies of the General Plan; and reduce the economic risk to the surrounding community;
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (Planning Commission) to conduct a public hearing to review a proposed development agreement; WHEREAS, DA No. 2023-067 agreement incentivizes active participation in the development process based on significant public benefits derived from monetary contributions; such payments would be dedicated to the City's youth and housing programs and could be used immediately to promote the public health, safety, and general welfare of the surrounding community;
WHEREAS, the Applicant acknowledges and agrees that the development agreement would confer substantial private benefits on them that would place burdens 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; WHEREAS, the proposed DA would be connected to and requires compliance with a CUP that clearly outlines specific conditions, requirements, and timelines for the development of the retail storefront facility to help ensure the Applicant remains in compliance with all local, state, and federal regulations, where applicable; WHEREAS, DA No, 2023-067 is designed to facilitate ongoing communication and collaboration between the Applicant who would be licensee and the local community addressing concerns and ensuring the retail storefront aligns with community values and interests;
WHEREAS, the proposed DA promotes balance through the operational flexibility built into the agreement addressing unforeseen challenges or changes in circumstances, allowing for adjustments as needed through City Council approval; WHEREAS, in exchange for an initial five (5) year term, with an option to extend the development rights for an additional five (5) years for a total of 10 years, the Applicant would provide an annual community benefit in the amount of One Hundred Thousand Dollars ($100,000) upon the effective date for the development agreement and renewed on an annual basis and would also be required to pay a quarterly community benefit in the amount that is equivalent to ten percent (10%) of gross receipt sales on a quarterly basis; WHEREAS, the Applicant agrees that the payment of Community Benefits Fees is Exhibit 2 398
Resolution #PC 2024-05
proportionate to the amount that would be paid in the form of an applicable tax on commercial cannabis activities in the City related to the Project, contributing to a housing fund and youth fund;
WHEREAS, the Project would repurpose an existing building on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements and it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would not cause a reasonably foreseeable direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities);
WHEREAS, pursuant to California Government Code Section 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on February 21, 2024;
WHEREAS, on February 21, 2024, the Planning Commission held a public hearing and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 pertaining to the proposed development agreement; WHEREAS, after deliberations, the Planning Commission requested staff to prepare a report addressing issues related to the proposed public benefits and comparison to taxes and revenues in other neighboring cities, and continued the item until the next regularly scheduled Planning Commission meeting on March 20, 2024; WHEREAS, on March 20, 2024, the Planning Commission was unable to convene a meeting due to a lack of quorum, therefore continuing the item to the next regularly scheduled Planning Commission Meeting on April 17, 2024; WHEREAS, on April 17, 2024 the Planning Commission reopened the public hearing for the item, considered all public comments received both before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to Ordinance No. 941 which would result in the approval of DA No. 2023-067 between the Applicant, the Property Owner and the City for a potential term of up to 10 years in exchange for public benefits; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2024-05, recommending to the City Council the approval of Ordinance No. 941 to enter into and execute DA No. 2023-067.
NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:
Exhibit 2 395
Resolution #PC 2024-05
SECTION 1. The above recitals are true and correct and are incorporated in full, herein.
SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2023- 067:
i. Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;
ii. Promotes the public health, safety, and general welfare; iii. Is just, reasonable, fair, and equitable under the circumstances; and iv. Provides sufficient benefit to the community to justify entering into the agreement.
SECTION 3. The Planning Commission hereby adopts this Resolution recommending to the City Council the approval of DA No. 2023-067 through the adoption Ordinance No. 941 and authorizes the City Attorney to make clarifying changes as necessary to effectuate the terms of the DA.
SECTION 4. The Planning Commission hereby transmits and recommends to the City Council the approval of Ordinance No. 941 to authorize DA execution.
SECTION 5. The Project is exempt from CEQA, in accordance with CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities).
SECTION 6. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
PASSED, APPROVED AND ADOPTED this 17th day of April, 2024.
MIGUEL DE LA ROSA, CHAIRPERSON
ATTEST:
ERIKA GUTIERREZ, PLANNING SECRETARY
Exhibit 2 396
Resolution #PC 2024-05
APPROVED AS TO FORM:
LLOYD PILCHEN
DEPUTY CITY ATTORNEY
Exhibit 2 390
CITY OF BELL GARDENS
COMMUNITY DEVELOPMENT DEPARTMENT
AGENDA REPORT
Item 3.
TO:
FROM:
BY:
SUBJECT:
Honorable Chair and Members of the Planning Commission
Steven Jones, City Planner
Adrian Flores, Associate Planner and Paloma McEvoy, Assistant City Attorney CONDITIONAL USE PERMIT NO. 2023-067 AND AN ORDINANCE TO APPROVE A
PROPOSED DEVELOPMENT AGREEMENT AUTHORIZING CANNABIS RETAIL USE AT 5605 GAGE AVENUE (FILE NO. 2023-067)
DATE: February 21, 2024
RECOMMENDATION:
It is staff's recommendation that the Planning Commission:
1. Determine that Conditional Use Permit (CUP) No. 2023-067 and an Ordinance for Development Agreement (DA) No. 2023-67 are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061 (b)(3) (Common Sense Exemption) and Section 15301 (Existing Facilities); and
2. Adopt Resolution #PC 2024-04 (Exhibit 1) approving CUP No. 2023-067, authorizing the development of the Off The Charts storefront cannabis retail use, subject to conditions of approval; and
3. Adopt Resolution #PC 2024-05 (Exhibit 2) recommending the City Council adopt an ordinance authorizing the City of Bell Gardens (City) to enter into and execute a DA to permit a cannabis use for a five (5) year term, with the option to extend the DA for an additional five (5) years for a total 10 year term in exchange for annual public benefits of One Hundred Thousand Dollars ($100,000) and quarterly public benefits equal to ten percent (10%) of gross receipt sales.
BACKGROUND:
Sean Maddocks, representing Norman Yousif (Applicant) and OTC Bell Gardens, LLC (Applicant), proposes tenant improvements to an existing 6,064 square -foot (SF) commercial building located at 5605 Gage Avenue (Subject Site) into two commercial suites, with one approximately 2,486 SF suite occupied by the Applicant for a proposed cannabis retail use and an approximately 3,578 SF suite to accommodate redevelopment of the existing Mega Mart grocery store tenant or another commercial use (Project).
The Subject Site is identified by Assessor Identification Numbers (AI N) 6328-003-034 and 6328-003-035 (Exhibit 3) by the Los Angeles County Office of the Assessor and is approximately 21,379 square feet (sf) in size. The Subject Site is located within the Mixed -Use Residential/Commercial (M -U) Zone and within the Mixed Use (Commercial/Residential) (MU) General Plan Land Use Element designation. Zone M -U conditionally permits a cannabis retail use, subject to the acquisition of a CUP.
Table No. 1 below summarizes the zoning, land use designations, and uses for properties surrounding the Subject Site.
Exhibit 2 308
Table No. 1. Surrounding Land Uses
North
General Plan
High -Density
Residential (HDR)
Zone
High Density
Residential (R-3)
Use
Residential
South
General Plan
MU
Zone
M -U
Use
Church
Ea
General Plan
MU
Zone
M -U
Use
Carwash
West
General Plan
MU
Zone
M -U
Use
Furniture Manufacturer
PROJECT/SITE DESCRIPTION:
The Applicant is requesting a CUP and a DA to establish certain rights to authorize the development and operation of the proposed Off The Charts storefront cannabis retail use at the Subject Site.
The Subject Site is currently improved with the 6,064 SF commercial building, 20 off-street parking spaces and an outdoor recycling center (Martinez Recycling #2). As stated above, the Project proposes tenant improvements that would allow up to two (2) commercial uses to co -exist in the existing commercial building in two (2) separate suites, with the Applicant proposing to operate a cannabis retail use in 2,486 SF space. The Project would maintain the existing off-street parking and proposes no tenant improvements to the remaining 3,578 SF space. Future tenant improvements for the remaining 3,528 SF space would be reviewed under a separate request. No proposed signage was received for consideration and any future signage would be subject to a subsequent review process.
The Project's floor plan (Exhibit 5) depicts the proposed tenant improvements that would consist of 2,486 SF of commercial space inclusive of 1,469 SF of customer -accessible space, inclusive of a lobby/check-in and a retail area. The remaining 1,017 SF would be employee -accessible only space comprised of a security room, break room, storage, offices, a vault, and a restroom compliant with the Americans with Disabilities Act (ADA).
The Subject Site is improved with a surface parking lot that provides 20 standard parking spaces, inclusive of two (2) ADA-accessible parking spaces. Pursuant Section 9.20.160(B)(1) (Parking) of the Bell Gardens Municipal Code (BGMC), a cannabis retail use is subject to the "business general" parking requirements, as set forth in Section
9.38.050(C)(2) of the BGMC. The proposed adjacent 3,578 SF suite is intended to be occupied by the existing Mega Mart grocery store tenant currently utilizing the entire building and would also be subject to the business general parking requirements.
ANALYSIS:
General Plan Consistency
The Subject Site carries the MU General Plan Land Use Element designation which has been concentrated on parts of Eastern Avenue and Gage Avenue to accommodate a range of uses. This designation refers to a combination of commercial and residential uses working in tandem to supply the community with much needed lower -income housing and commercial facilities.
Exhibit 2 308
Policy No. 3 of the General Plan's Land Use Element promotes compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of commercial areas in the City. The Project proposes to comply with the applicable development standards and locational requirements to enhance the economic viability of the surrounding commercial areas and would be consistent with Policy No. 3.
Policy No. 4 of the General Plan's Land Use Element asserts that the City shall encourage private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements. The approval of the Project to permit a cannabis retail use and is therefore required to comply with all applicable state and local environmental requirements and would be, therefore, consistent with Policy No. 4.
Policy No. 5 of the General Plan's Land Use Element emphasizes the provision of an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses. The introduction of a cannabis retail use would promote an economic diversity of the City's commercial zones and provide local employment opportunities while still regulating existing businesses and would, therefore, be consistent with Policy No. 5.
Zoning Consistency
The corresponding zone for the MU Land Use Element designation is Zone M -U, which conditionally permits a cannabis use, subject to certain locational requirements and development standards.
Compliance with Commercial Zone Development Standards
The Subject Site is currently developed with a 6,064 SF commercial building, in a lot that is in an approximately 21,379 SF rectangularly shaped configuration. The Subject Site has existing parking, provided with two (2) ADA- accessible and 18 regular parking spaces, consistent with the requirements contained in BGMC Chapter 9.38 (Parking & Loading (Off -Street)). The Project proposes tenant improvements to an existing 6,064 SF commercial building and would consist of a 2,486 SF commercial retail space, consistent with development standards contained in BGMC Chapter 9.12 (Commercial Zones) and standards that apply specifically for cannabis retail uses located in BGMC Section 9.20.160(B). As detailed below, the Subject Site is adequate in size, shape, and topography to support the proposed structure and business consistent with the BGMC's requirements.
Yard Setbacks
BGMC Table 9.12B provides the appliable yard setback requirements for properties zoned M -U. As demonstrated in Table 2 below, and consistent with Exhibit 4, the Project would exceed setback requirements for the front, side and rear yards, but the legally established structure would provide a zero -foot (0') setback on the street side yard adjacent to Specht Avenue, when the BGMC requires a 10 -foot (10') side yard. According to Los Angeles County Records, the commercial building was constructed in 1953, prior to the incorporation of the City and the adoption of the setback requirements found in the BGMC. Section 9.64.030(F) of the BGMC defines a nonconforming structure as a structure that was "lawfully established and in compliance with all applicable ordinances/regulations." Pursuant to Section 9.64.060(C)(2) of the BGMC, nonconforming structures that do not comply with setback requirements may be remodeled so long as they comply with the BGMC Title 6 (Building and Construction), and all other applicable development standards contained in Title 9 (Zoning and Planning Regulations). Therefore, due to the structure's legal nonconforming status, the existing structure complies with setback requirements.
Table No. 2. Yard Setback Analysis
Yard
Required
Provided
Complies?
Front
5!feet
6 feet
Yes
Side
None
82 feet
Yes
Exhibit 2
209
Street Side
Rear
0 feet
0 feet
Yes, due to legal
nonconforming status
Yes
36 feet
Lot Coverage
The Project would comply with lot coverage restrictions which are found in BGMC Table 9.128 which permits up to 90 percent (90%) coverage. The Subject Site is approximately 21,379 sf and the existing commercial building occupies 28 percent (28%) of the Subject Site, as shown in Exhibit 4, and therefore complies with lot coverage requirements.
Height
BGMC Chapter 9.04 requires height to be measured from the average natural grade around the perimeter of the structure to the highest point of the coping of the proposed flat roof. Structures in Zone M -U are restricted to a maximum height of 60 feet (60'). The Project would be a maximum height of 17 feet (17') since the Project proposes no increase in height (Exhibit 6).
Screening of Mechanical and Utility Equipment
The Project would comply with the requirement that outside utility equipment such as utility meters, HVAC equipment, et cetera, be screened from public view from the public right-of-way as depicted in the proposed elevations (Exhibit 6).
Mechanical Ec uipment
The Project would comply with the screening requirements pursuant to Section 9.12.040 of the BGMC. All mechanical equipment would be shielded with a decorative screen to ensure such equipment is not visible from the street level and placed at least six inches (6") below the top of the lowest building parapet or decorative screen (Exhibit 6). As proposed, rooftop screening material and color would continue to be architecturally compatible with the primary building and adjacent structures. HVAC equipment, et cetera, would continue to be screened from public view and would not be visible from the public right-of-way.
Landscaping
Section 9.34.030 of the BGMC requires a minimum of five percent (5%) of the parking area to be landscaped with live plant materials. The Subject Site is 21,379 SF and the parking area comprises approximately 11,200 SF. The Subject Site is developed with 1,320 SF of existing landscaping throughout the parking area which comprises approximately eleven percent (11%) of the parking area, and no new landscaping is proposed. Based on the existing landscaping, the Project would comply with landscaping requirements.
Lighting
The existing structure provides eight (8) exterior lighting fixtures attached to the exterior walls of the building. The Subject Site currently provides no exterior lighting in the parking area. The Project would provide new lighting to replace the exterior lighting attached to the exterior walls of the building and install new light fixtures within parking areas of the Subject Site as demonstrated in the Lighting Plan (Exhibit 9). Specifically, the Lighting Plan depicts the proposed installation of two (2) new top -shielded light -emitting diode (LED) light fixtures located in the parking lot and three (3) new LED wall mounted fixtures. The lighting plan depicts the lighting coverage for each of the new light fixtures, showing that the entire parking lot, loading, and trash enclosure area would be well -illuminated. If approved, the Project would enhance the retail experience with a strong sense of safety and unique community identity.
Parking
A cannabis retail and a grocery store market use must provide off-street parking consistent for "business general" as set forth in Section 9.38.050 of the BGMC. As demonstrated in Table 3, the Project requires sixteen (16) parking Exhibit 2 200
spaces. The Subject Site has 20 existing parking spaces, inclusive of two (2) ADA-accessible parking spaces (Exhibit 4).
Table No. 3. Parking Analysis
Required Parking — BGMC § 9.38.050(C)(2)
Required
Provided
General business: one space per400 SF
6,064 SF/ 400
16 Spaces
20 spaces
Loading Facilities
Section 9.38.110 of the BGMC requires a minimum 250 SF loading space where the gross floor area of all buildings on a lot or parcel is less than 20,000 SF. The Project would be required to provide a 250 SF loading zone. Condition No. 60 of the CUP would require an updated site plan to depict the provision of the required loading zone prior to the submittal of plans to the Community Development Department, Building and Safety Division. With the updated site plan, the loading space would be consistent with the business general use contained in the City's parking & loading facilities matrix.
Trash Enclosures
BGMC Chapter 9.44 requires an on -site refuse dumpster on commercial sites and the maintenance of a trash enclosure area. The Subject Site currently has an existing trash enclosure located at the northwest corner and no refuse dumpster or trash enclosure changes are proposed. Therefore, the Project would comply with the City's trash enclosure requirements.
Wall -Mounted Equipment
Section 9.12.040 of the BGMC, commercial development standard matrix requires that water heater enclosures, vents, flashings, pipes, and conduits for solar or other equipment be painted the same color as the surface to which they are attached. The Project does not propose any changes to existing wall -mounted equipment and would be painted consistent with the standards contained in the City's commercial development standard matrix.
Fences and Walls
To complete the look and finish of the proposed -improved Subject Site, and to establish the area separate from the adjoining public right-of-way street for safety and pedestrian visibility, a fence, low barrier wall or walls could be established and erected in accordance with provisions of BGMC Chapter 9.32. Perimeter fences or walls enhance safety by restricting unfettered access to property and minimize the risk of accidents, unauthorized entry, or unintended pedestrian -vehicle interactions. New perimeter fences or walls that still facilitate adequate views of the Subject Site would be in keeping with the application of zone development standards, including material selection, to help ensure the protection of public health, safety, and general welfare.
No new fence or wall is proposed on the Subject Site. The Subject Site has an existing metal fence around the perimeter of the site with ingress and egress points from Gage Avenue and from the rear of the site through a public right-of-way alley. The existing metal fence is a full -perimeter fence six -feet (6') tall at the rear and side yard setback areas, and approximately 42 inches (42") in height at the front yard setback area adjoining the Gage Avenue public right-of-way. The existing fence is proposed to be improved with permitted material, where needed. The Project would comply with BGMC requirements for fences and walls. If approved, Condition No. 83 has been drafted to require suitable, functional design of new perimeter fences or walls adjacent to public right-of-way street at Gage Avenue without requiring a particular style or type of architecture, consistent with General Plan Policy 3 to enhance appearance and economic vitality, and the General Plan's goal of prioritizing routes with high pedestrian traffic to help ensure that all fences and walls on the Subject Site would be always maintained and in good condition.
Exhibit 2 202
Exterior Building Features
Section 9.12.040 of the BGMC, Design Standards for all Commercial Development matrix (Table 9.12), exterior building features requires that: (a) all exterior building walls on a lot to be painted the same or complementary colors; (b) windows and doors on new construction to be of consistent style, material, and colors; (c) all windows and door trims, fascia boards, and similar trim features to be of the same or complementary material, style, and color; and (d) roofs on new buildings to be the same material, color and style as the roofs on existing buildings on the lot.
The Project would utilize the existing architectural features that includes a stucco sand finish painted "pigeon gray" and exterior trim to be painted "gray" as demonstrated in Exhibit 6. No other exterior improvements are proposed, as any proposed signage would be subject to a separate review process, discussed in detail below. As proposed, the Project would be consistent with standards contained in BGMC Table 9.12.
Exterior Site Features
The Exterior Site Features standards in BGMC Table 9.12 requires that (a) new fences, walls, driveways, walkways, and other infrastructure to be of a consistent material, design, and color and (b) all driveways and walkways to be free to gouges, ruts, and/or gaps in the paved surface area and to be maintained in good working order to not constitute a safety hazard to the public.
The Project proposes structures and infrastructure consistent in material, design, and color, and paved surface areas free of gouges, ruts, and/or gaps, maintained in good working order to not constitute a safety hazard to the public as demonstrated in Exhibit 6. CUP Condition No. 57 would enforce compliance with the exterior site feature standards.
Loading Facilities
Section 9.38.110 of the BGMC requires a minimum 250 SF loading space where the gross floor area of all buildings on a lot or parcel is less than 20,000 square feet. The Project would be required to provide a 250 SF loading zone.
Currently, there are no depictions of the required loading space. Proposed CUP Condition No. 60 would require an updated site plan to depict the provision of the required loading zone prior to the submittal to the Building & Safety plan check. With the updated site plan, the loading space would be consistent with the business general use contained in the BGMC.
Signs
No plans for signage were received for consideration. CUP Condition No. 61 would require the Applicant to submit sign plans for review and approval to the Community Development Department to ensure compliance with the general sign regulations found in BGMC Chapter 9.40 (Signs).
Windows
Section 9.20.160(B)(3) of the BGMC requires that windows facing the street frontage to be clear, untinted glass.
Mirrored, reflective, or tinted glass may only be permitted as an architectural or as decorative accents and would only be able to comprise no more than twenty percent (20%) of the window. Windows and doors proposed to face the street are depicted clear and untinted and would therefore comply with the BGMC as depicted on Exhibit 6 and would replace the currently boarded up space intended for windows.
Decorative Railings and Grilles.
Section 9.20.160(B)(4) of the BGMC requires that any decorative railings and grilles placed in front or behind windows be at least 75 percent (75%) open to perpendicular view and no more than six feet (6') in height. Security gates and grilles are prohibited on the exterior of any structure.
The Project does not propose any decorative railings, grilles, or security gates or grilles and therefore would comply with the requirements.
Exhibit 2 202
Legal Nonconforming Use — Recycling Center (light)
A "recycling center (light)" use is only permitted in the Light Industrial (M-1) Zone, and the Subject Site was rezoned M -U in 2023. According to City records, Martinez Recycling #2 has a current city business license, and the use has existed on the Subject Site since 1994. Due to recent rezoning at the Subject Site which prohibits recycling centers in Zone M -U, Martinez Recycling #2 is a legal nonconforming use.
According to the reports provided by the Bell Gardens Police Department (BGPD), law enforcement has responded to approximately 18 calls for service to the Subject Site from February 2020 to February 2024, including robbery, attempted robbery, vandalism, transient activity, loitering, possible narcotic activity, theft, and numerous parking problems. Additionally, BGPD has expressed concerns about the recycling center, indicating the business attracts frequent foot traffic and loitering, including transients and narcotic users. To address this concern, CUP Condition No. 85 would require Martinez Recycling #2 to cease business operations and require the Applicant to remove all structures and supporting equipment from the Subject Site prior to commencement of the proposed tenant improvements.
Impact on City Resources
A cannabis retail use is similar to other commercial uses permitted in the City's Commercial and Industrial Zones.
Cannabis retailers are subject to the same or more restrictive development standards than other commercial uses.
Patrons would arrive at the Subject Site and visit a retailer for short periods of time, typically no longer than thirty (30) minutes to make their purchase, similar to other retail uses. As described below, the the Project is not anticipated to have an impact on existing resources and utilities.
Traffic Volumes
The Subject Site is located on Gage Avenue, which is one of the commercial corridors in the City. Gage Avenue is designated as a secondary highway in the 2022 Transportation and Circulation Element, as a part of the City's General Plan. In accordance with this element, Gage Avenue has been designed to move traffic from collectors to boulevards and keep through -traffic off the residential and local streets. Entrance to the Subject Site is provided via Gage Avenue and through an alley approach on the north side of the Subject Site.
The Project is proposed along a secondary highway that currently carries large volumes of traffic to support the existing development along Gage Avenue. Repurposing an existing commercial building to support a 2,486 SF cannabis retail use and a 3,578 SF grocery store market use on an already -developed mixed -use corridor that operates similarly to other retail operations is unlikely to result in a substantial increase in traffic volumes. Therefore, no substantial increase in pedestrian or vehicular traffic volume to the Subject Site is expected to occur as a result of the proposed Project if Conditional Use Permit No. 2023-067 is granted.
Utilities
The Subject Site is occupied by an existing grocery store market use and is adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection.
Conditional Use Permit
On June 26, 2023, the City Council adopted Ordinance No. 934 which permits a cannabis retail use as a conditional use in Commercial and Industrial Zones, subject to certain locational requirements, inclusive of distance from sensitive uses such as parks, schools, youth centers, and other existing cannabis retail uses. Uses permitted through a CUP may be essential or desirable to a particular community but are not allowed as a matter of right within a zoning classification and require a public hearing process. A CUP allows flexibility within a particular zone and enables certain use controls to address issues which could have detrimental effects on the community. It is the responsibility of the Exhibit 2 208
Planning Commission to impose conditions and/or limitations on the operation of the proposed use.
Ordinance No. 934 also limits a cannabis retail use for a term of 18 months unless the Applicant executes a development agreement for a longer term with the City. As discussed in further detail below, the Applicant has requested, and the staff recommends, the entering into and executing a DA with the Applicant and Property Owner for a term not to exceed 10 years in exchange for annual and quarterly community benefits.
In addition to a CUP, the Applicant would be required to obtain a California Department of Cannabis Control (DCC) Type 10 cannabis retail license and a business regulatory permit pursuant to BGMC Chapters 5.12 and 5.64, among other state and local approvals prior to commencing operations.
Locational Requirements
In order to approve a CUP for a cannabis retail use, the following locational requirements apply to all cannabis retailers for proximity to sensitive uses and proximity to other cannabis retailers. As detailed below, the Project would comply with locational siting requirements set forth in Section 9.20.160 of the BGMC.
Distance from Sensitive Uses (600 -Foot Radius)
A cannabis retail use may not be located within a 600 -foot radius of a day care center, youth center, school, or park as defined in BGMC Chapter 9.04, that is existing at the time an application for a conditional use permit is submitted.
At the time of application, no active sensitive use was located within a 600 -foot radius (Exhibit 7). Staff utilized a measure of 1,500 -feet from property line to property line, and two sensitive uses within a 1,500 -foot radius (Exhibit 7) were identified: Marlow Park and Codela Preschool at approximately 1,336 feet away, which exceeds the 600 -foot buffering requirement.
Distance from Cannabis Retailers (500 -Foot Radius)
A cannabis retail use may not be located within a 500 -foot radius of another cannabis retailer that is existing at the time an application for a conditional use permit is submitted.
At the time of application, no other active cannabis retail use was located within a 500 -foot radius (Exhibit 7) nor 1,500 -foot radius (Exhibit 7).
Restricted Use Within the Civic Center Overlay District A cannabis retail use may not be permitted within the Civic Center Overlay District (CLOD). The CCOD encompasses Garfield Avenue, with the borders of Florence Place to the south and Gage Avenue to the north. The Subject Site is located on Gage Avenue, which is outside of the CCOD. The Subject Site is located outside of the prohibited use area of the CCOD.
Restricted Areas (B G MC 9.20.160(A)(2)
A cannabis retailer may not be permitted within the boundaries delineated in BGMC Section 9.20.160(A)(2) (See Figure No. 1 - Restricted Area). The restricted boundaries located on Eastern Avenue and Florence Avenue are as shown in the below Figure No. 1. The Subject Site is located between Eastern Avenue and Specht Avenue, on the northwest side of Bell Gardens and north of the prohibited areas of the restricted boundaries. The Subject Site is located outside the boundaries of other prohibited areas as prohibited under BGMC Section 9.20.160(A)(2) If approved, this cannabis retail business would be one of the City's first approved cannabis use. Therefore, the issuance of a conditional use permit at the Subject Site would not exacerbate any over -concentration in the area.
Furthermore, the Project would operate with an approved conditional use permit in an orderly manner. To minimize any potential concerns to neighboring properties and ensure that the operation of the cannabis retail store conforms Exhibit 2 205
to the City's General Plan, conditions of approval have been included as part of the CUP to address the hours of operation, standards, and security for the Subject Site.
Lighting, Odor Mitigation, and Security Plans
BGMC Chapter 5.64 requires a cannabis retailer to comply with specific operating standards. If CUP No. 2023-067 is approved, the Applicant would be required to implement the Lighting Plan (Exhibit 8), Odor Mitigation Plan (Exhibit 9), and Security Plan (Exhibit 10) to provide safe and secure surroundings for both customers and the surrounding neighborhood, which have been submitted by the Applicant. Compliance with these plans would be incorporated by reference as exhibits into the proposed conditions of approval for CUP No. 2023-067, as well as DA No. 2023-067.
Lighting Plan
The Applicant has provided a comprehensive approach to addressing exterior lighting of the Subject Site to enhance the retail experience with a strong sense of safety and unique community identity (Exhibit 8). The City is charged with promoting design that emphasizes commercial identity that enhances the appearance, potential economic vitality, and revitalization of the commercial areas pursuant to Policy No. 3 of the General Plan's Land Use Element. The proposed conditions of approval would require compliance with the submitted Lighting Plan. The requirements of the Lighting Plan are also incorporated by reference into DA No. 2023-067.
Odor Mitigation
The Applicant proposes to address the concern over cannabis product odor that may be produced as a result of this retail store by providing specifications of air filtration systems that would be installed as demonstrated in Exhibit 9, which are proposed to be incorporated into the conditions of approval and the DA. Staff training for the air filtration systems and HVAC would be conducted for maintenance to help ensure that no odor impact to neighbors would occur and would be prevented. Order control devices and techniques identified in the Odor Control Plan (OTP) are high efficiency particulate air (HEPA) filtration, activated carbon, negative pressure ventilation, air purifying flora, and HVAC. Staff Training in the OTC includes recordkeeping systems and forms, complaint tracking system, and maintenance of the control devices.
The Applicant proposes to carry a full range of cannabis and cannabis products. The Applicant states that the inventory team, product team, and sales associates would ensure that all jars or containers from which products would be sold remain properly sealed so as not to emanate odor, and no raw cannabis flower would be authorized to be packaged in or on the Subject Site. The proposed conditions of approval and DA would require compliance with the submitted Odor Mitigation Plan.
Security Plan
The Applicant would implement a Security Plan (Exhibit 10) to address public safety issues inclusive of security operations by ArmorTech Security and monitoring by Bay Alarm Systems, which is in the business of commercial security systems inclusive of intrusion/burglar systems and fire alarm, as well as video surveillance and access control systems.
The main goal of the Security Plan is to ensure safety and security for all customers, patients, employees, and visitors at our retail storefront and those who purchase cannabis goods from our delivery service. Employees would conspicuously wear an employer -issued identification card whilst within the facility; and all visitors would be required to check in at the front entrance.
The Applicant's facility would feature on -site security guards 24 hours a day. On -site security would include an interior guard, day guard(s), overnight guard(s), and a security director. The Applicant would deploy at least two (2) part-time and two (2) full-time armed security officers. At least one (1) guard would be present at the Applicant's facility 24 hours a day or at an alternative arrangement as approved by the Police Chief. Security personnel would be stationed Exhibit 2 206
between: (1) Main Entrance; (2) Retail Area; (3) Vendor I ntake/Delivery Staging; (4) Roving patrols of all departments within the facility's interior; (5) The hallways outside the Limited Access Fulfillment Storage Room (LAFSR); and (6) Roving exterior security sweeps would be conducted.
The Applicant would follow the California DCC's customer age verification as a part of standard business practice and as a security measure to ensure that cannabis would only be purchased by adult use customers aged 21 and older or are medicinal patients aged 18 or older (with a physician's recommendation for medicinal), through the use of an electronic verification device, as required by the proposed conditions of approval.
The CUP includes several proposed conditions of approval to ensure that patrons of the retail cannabis business that purchase produce are at least 21 years old or are medicinal patients aged 18 or older with a physician's recommendation (Condition No. 28) and all employees are at least 21 years old (Condition No. 29). The conditions of approval would require compliance with the submitted Security Plan. The requirements of the Security Plan are also incorporated by reference into DA No. 2023-067.
Hours of Operation
DCC hours of operation are restricted from 6:00 a.m. until 10:00 p.m. (last transaction), Monday through Sunday, with the last delivery order to be placed by 9:00 p.m., and all delivery vehicles returned no later than 10:00 p.m., unless stricter hours are imposed by a local municipality. Staff has conducted a survey of the permitted hours of the municipalities surrounding Bell Gardens within a three (3) -mile radius and have determined the most common closure time is 10:00 p.m., but at least three (3) stores within this 3 -mile radius closing at 9:00 p.m. Local municipalities may permit hours of operation consistent with DCC regulations or restrict hours through a condition of approval.
Under unique circumstances, it could be appropriate to condition stricter hours of operation if the City finds that reduced hours of operation could address concerns of neighborhood compatibility, loitering, traffic and congestion, and noise. However, reduced hours may lead to other drawbacks such as reduced economic impact to public benefit funds, favored surrounding market competition, and enforcement challenges. Staff currently recommend hours of operations consistent with DCC regulations which are addressed in Condition No. 22 of the CUP.
Development Agreement
A development agreement is a tool that allows developers to establish assurances and certainty with respect to what rules, regulations, and policies would apply to a project in return for public benefits to the City in the form of capital improvements, monetary contributions, and other obligations.
A request for a development agreement can be used when there are significant development costs and economic risks associated with efforts to improve, develop, and/or use real property for a certain purpose and to establish certain development rights on real property. A development agreement must be approved and adopted by ordinance.
The City Council's legislative action on a development agreement ordinance could facilitate the orderly development of sites within Bell Gardens, promote shared goals and vision, protect natural resources from adverse impacts, provide community benefits, and reduce economic risk for all stakeholders.
On June 12, 2023, the City Council adopted Resolution No. 2023-043, which established procedures and minimum terms for the negotiation of a development agreement for a cannabis retail use, which are consistent with or supplement the requirements set forth in Government Code Section 65864 et seq. (Development Agreement Procedures). Among the requirements to enter into a development agreement with the City, include required findings; cost recovery provisions; annual review; default, cure, modification, and termination procedures. The Development Agreement Procedures require that eighty percent (80%) of the monetary value of the public benefits shall be dedicated to youth and educational programming and resources for the City's housing programs.
Exhibit 2 206
The proposed development agreement (Exhibit 12) would permit a cannabis retail use at the Subject Site for an initial five (5) year term, subject to an option to extend the term for an additional five (5) years, for a total 10 -year term.
In exchange, the Applicant would provide an annual community benefit in the amount of One Hundred Thousand Dollars ($100,000) upon the effective date for the development agreement and renewed on an annual basis. The Applicant would also be required to pay a quarterly community benefit in the amount that is equivalent to 10 percent (10%) of gross receipt sales on a quarterly basis. Pursuant to the Development Agreement Procedures, eighty percent (80%) of all community benefits would be dedicated toward youth and educational programming and resources for the City's housing programs. Benefits for youth and educational programming would be dedicated to the City's Recreational Department and be utilized for but not limited to youth programming, after -school programs, sports programming, personal enrichment classes or capital improvements on City -owned properties; and community benefits for the City's housing programs shall be dedicated toward the Community Development Department and would be utilized for housing programming and long-range planning, including but not limited to affordable housing, rent stabilization and tenant protection efforts and other planning efforts.
The conditions of approval for CUP No. 2023-067 which clearly outline specific conditions, requirements, and timelines for the development of the retail storefront facility to help ensure the Applicant remains in compliance with all local, state, and federal regulations, where applicable, would be expressly incorporated into the terms of the DA No. 2023-067. In addition, the DA would provide the Applicant with assurances that would enable the Project to exist for a term of up to 10 years in exchange for public benefits. The DA is designed to facilitate ongoing communication and collaboration between the Applicant, who would be licensee, and the local community addressing concerns and ensuring the retail storefront aligns with community values and interests by requiring the Applicant to submit evidence of compliance with all terms and conditions to the City on an annual basis. Balance would be promoted with the operational flexibility built into the DA addressing unforeseen challenges or changes in circumstances, allowing for adjustments as needed through City Council approval. Compliance with the DA and its terms and conditions would be subject to an annual review, whereby if the City determines that the Applicant is not in compliance with the DA, the City may modify or terminate the DA.
Adoption of an ordinance subject to the approval of a development agreement would be justified by the legal protections and facilitated approval processes afforded by the DA. Financial stability could also be helped since the DA outlines financial commitments to help ensure long-term viability of the retail storefront operation and provide a stable revenue stream for the City.
ENVIRONMENTAL REVIEW:
In accordance with CEQA (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), staff recommends the Project be determined to be categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) Section 15061(b)(3) (Common Sense Exemption). The Project would involve the tenant improvements to an already existing commercial structure to support a new commercial use. A cannabis retail use has similar impacts as other typical commercial uses and would be subject to the same or more restrictive development and operating standards as other commercial uses. This Project and proposed tenant improvement construction would comply with building, energy efficiency, and land use and development standard provisions. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
CONCLUSION:
It is recommended that the Planning Commission determine the Project is categorically exempt from CEQA, approve Conditional Use Permit No. 2023-067 through the adoption of Resolution #PC 2024-04 recommend to the City Council the approval of an ordinance to authorize the City to enter into and execute DA No. 2023-067 through the adoption of Resolution #PC 2024-05.
Exhibit 2 2®8
FISCAL IMPACT:
If the CUP and DA are approved, the Applicant would be required to make an up -front payment of One Hundred Thousand Dollars ($100,000) by the effective date of the DA and make an annual contribution every January following the execution of the DA. The Applicant would also be required to make quarterly contributions equal to 10 percent (10%) of gross receipts. Eighty percent (80%) of these funds would be dedicated to youth and recreational programming and the City's housing programs. Under the DA, the Applicant would also be responsible for the cost of staff time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the DA, CUP, BGMC and other applicable laws and regulations (Cost Recovery).
ATTACHMENTS:
Exhibit 1 - PC Resolution #PC 2024-04- CUP
Exhibit 2 - PC Resolution #PC 2024 -05 -DA
Exhibit 3 - Los Angeles County Assessors Map
Exhibit 4 - Site Plan
Exhibit 5 - Floor Plan
Exhibit 6 - Elevations
Exhibit 7 - Radius Map: 500, 600 and 1,500 -foot
Exhibit 8 - Lighting Plan
Exhibit 9 - Odor Mitigation Plan
Exhibit 10 - Security Plan
Exhibit 11 - Proposed Ordinance
Exhibit 12 - Proposed Development Agreement
Exhibit 13 - Public Hearing Notice
APPROVED ELECTRONICALLY BY:
Lloyd Pilchen, Deputy City Attorney for Rick R. Olivarez, City Attorney Gustavo Romo, Director of Community Development
Exhibit 2 208
CITY OF BELL GARDENS
COMMUNITY DEVELOPMENT DEPARTMENT
AGENDA REPORT
Item 2.
TO:
FROM:
BY:
SUBJECT:
Honorable Chair and Members of the Planning Commission
Steven Jones, City Planner
Adrian Flores, Associate Planner
CONDITIONAL USE PERMIT NO. 2023-067 AND ORDINANCE NO. 941 TO APPROVE A
PROPOSED DEVELOPMENT AGREEMENT AUTHORIZING ACANNABIS RETAIL USE AT 5605 GAGE AVENUE (FILE NO. 2023-067)
DATE: March 20, 2024
RECOMMENDATION:
It is staff's recommendation that the Planning Commission move to:
1. Determine that Conditional Use Permit (CUP) No. 2023-067 and Ordinance No. 941 for Development Agreement (DA) No. 2023-67 are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061 (b)(3) (Common Sense Exemption), and Section 15301 (Existing Facilities); and
2. Adopt Resolution #PC 2024-04 (Exhibit 1) approving CUP No. 2023-067, authorizing the development of the "Off The Charts" storefront cannabis retail use, subject to conditions of approval inclusive of the execution of the DA by and between OTC Bell Gardens, LLC, Kim Dae Hoe and Hye Young, and the City of Bell Gardens; and
3. Adopt Resolution #PC 2024-05 (Exhibit 2) recommending the City Council adopt Ordinance No. 941 authorizing the City of Bell Gardens (City) to enter into and execute a DA to permit a cannabis use for a five (5) year term, with the option to extend the DA for an additional five (5) years for up to a total 10 -year term in exchange for annual public benefits of $100,000 and quarterly public benefits equal to 10 percent (10%) of gross receipt sales.
BACKGROUND:
Sean Maddocks, representing Norman Yousif (Applicant) and OTC Bell Gardens, LLC (Applicant), proposes tenant improvements to an existing 6,064 square -foot (SF) commercial building located at 5605 Gage Avenue (Subject Site) into two commercial suites, with one approximately 2,486 SF suite occupied by the Applicant for a proposed cannabis retail use and an approximately 3,578 SF suite to accommodate redevelopment of the existing Mega Mart grocery store tenant or another commercial use (Project).
At the regularly scheduled Planning Commission meeting of February 21, 2024, (Exhibit 6) the Planning Commission voted to continue the item and directed staff to prepare a report with information addressing their concerns.
During the meeting, staff made a presentation identifying findings for approval (Exhibit 6) followed by a presentation by the Project proponent and public testimonies. The Planning Commission deliberated the item materials, presentations, and public comments and determined that additional information was needed to address comparative data for revenue and public benefits of neighboring jurisdictions, the proposed development's neighborhood compatibility, and impacts on public infrastructure.
Commissioners also requested to know if a higher rate of return for anticipated percentages of sales could be Exhibit 2 2119
negotiated and whether funds received in exchange for vested development rights could be used for programs that address homelessness.
Additionally, the Planning Commission directed staff to return with an agenda item outlining projected revenue breakdown and comparative cannabis retail rates of return from neighboring cities, as well as a brief background on the history of the matter within the region.
State Law and Regulation:
On November 6, 1996, California became the first state to legalize cannabis for medicinal use through Proposition 215, pursuant to the Compassionate Use Act (Health & Safety Code Section 11362.5) (Exhibit 7).
In 2004, the California Legislature enacted Senate Bill 420 to clarify the scope of Proposition 215 and, for medical purposes, provide qualifying patients with a limited defense to certain specified criminal statutes.
In September 2015, California enacted the Medical Marijuana Regulation and Safety Act (Exhibit 8), which consisted of three separate bills. The approval of the Act crafted a comprehensive licensing, regulatory and exaction framework for medicinal cannabis cultivation, distribution, manufacture, sale, storage, testing, and transportation.
In 2016 Governor Jerry Brown signed SB 837, changing the colloquial name "marijuana" to the scientific name "cannabis," renaming the act the Medical Cannabis Regulation and Safety Act (MCRSA) and updating the Bureau of Medical Marijuana Regulation and the Medical Marijuana Regulation and Safety Act Fund to the Bureau of Medical Cannabis Regulation and the Medical Cannabis Regulation and Safety Act Fund.
On November 8, 2016, the Adult Use of Marijuana Act (AUMA), through the approval of Proposition 64 (Exhibit 8), legalized personal and recreational use of cannabis for adults 21 years of age or older, beginning regulation of the legally permitted commercial cannabis industry. Delivery was also permitted under state law. The 2017 Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) created a single regulatory system for all commercial cannabis activity at the state level administrated by the Department of Commercial Cannabis (DCC).
State law has largely preserved a municipality's ability to regulate state licensed commercial cannabis activity, including what types of businesses may be permitted or prohibited, local zoning and land use requirements, business license requirements and the reduction of exposure to secondhand smoke [Cal. Business & Prof. Code § 26200(a) (1)]. However, on September 18, 2022, the Governor approved the Medicinal Cannabis Patients' Right of Access Act (Senate Bill No. 1186), which went into effect on January 1, 2024, barring municipalities from enacting regulations that prohibit the sale of, or unreasonably restrict access to, medicinal cannabis by delivery service to medicinal cannabis patients or their primary caregivers [Cal. Business & Prof. Code § 26322(a)].
Cannabis Approval Action by the City of Bell Gardens:
Since California began creating a legal framework to enable the cannabis industry to move into a regulated commercial market and provided grant funding to facilitate the infrastructure, many cities have responded by adopting ordinances for retail and wholesale uses.
On June 12, 2023, the City Council adopted Ordinance No. 934 (Zoning Code Amendment No. 2023-040), amending Title 9 (zoning and planning regulations) to conditionally permit, or permit with additional development agreement option, cannabis retail uses in commercial zones (Exhibit 10) and amend BGMC Title 5 (business licenses, regulations, and taxes) to add licensing and permit requirements for cannabis retail business. Second reading took place on June 26, 2023, and the ordinance became effective on July 26, 2023.
Application Processing:
Exhibit 2 280
As of the writing of this report, seven total applications have been submitted and are in review as indicated on Figure No. 1 — Map of Current Retail Cannabis Applications in Process. Two proposed development agreements have been negotiated and presented to the City's Planning Commission. Both items were continued by the Planning Commission with a request for additional information.
The ordinance to regulate and conditionally permit cannabis within Bell Gardens authorizes City discretion on concerns that could be addressed with conditions of approval. Typical conditions of approval include strict adherence to all applicable local, state, and federal regulations, hours of operation, a duty to keep the property free of debris and graffiti, the prohibition of on -site consumption, and other conditions that address site specific concerns. The commercial cannabis use is highly scrutinized during staff review to aid in ensuring due regard for character of the surrounding area and protection of persons or occupants in the neighborhood. The applicable conditions of approval may vary from site to site depending on the neighborhood context and specific concerns applicable to a subject site to buffer the use from sensitive receptors and/or vulnerable populations.
Commercial Cannabis Regulation in Other Municipalities:
According to the Department of Cannabis Control, as of December 2023, 239 out of the 539 municipalities in California, or 44.2%, allow at least one (1) type of commercial cannabis activity. The legal and regulated cannabis retail market is currently operating in at least 213 municipalities across the state.
Municipalities immediately adjacent to Bell Gardens include the cities of Commerce, Downey, South Gate, Cudahy and Bell. Of those cities, only Cudahy permits retail cannabis activities. Other surrounding cities in the near vicinity include the City of Lynwood which permits retail sales of cannabis and the City of Maywood which permits which also permits retail sales but has stopped issuing new licenses. Figure 2 below presents an illustrative example of the cities that permit cannabis retail sales and the applicable tax rates or applicable public benefits schedule that generates revenue for each city.
Four of Bell Gardens' surrounding cities have active retail cannabis ordinances in place and, as noted in Table 1, offer a range of percentage of revenue fees.
To enhance the table shown below, Figure No. 2 visually overlays the surrounding commercial retail rates, and those regions where commercial sales are prohibited.
Table 1. Surrounding Commercial Cannabis Retail Rates
P.k
Bell (1)
Commerce
Cudahy
. . ............ .. . . ....... ........
Downey
Lynwood
Los Angeles
Maywood (2)
Paramount
Pico Rivera
�v!
N/A
15%
N/A
5%+1%
15%
10%
N/A
N/A
Exhibit 2
282
Santa Fe Springs
South Gate
(1) Provisions for medicinal sales only, no provision for retail storefront. (2) No longer issuing new licenses, only renewing previously issued licenses.
ANALYSIS:
Distance from Active & Proposed Cannabis Retailers
A cannabis retail use may not be located within a 500 -foot radius of another cannabis retailer that is existing at the time an application for a conditional use permit is submitted. At the time of application, no active cannabis retail use is located within a 500 -foot radius (Exhibit 3).
As of February 2024, Planning Division has received a total of seven applications for cannabis retail use. Two out of the seven applications are located within the vicinity of the Subject Site. Both locations are located more than 500 - feet away from each other as shown in Table 2 below and Figure 2 attached:
Table 2 — Proposed Cannabis Retailers
Proposed Cannabis Retail Address
Distance
6231 Eastern Ave
558 ft from 5605 Gage Avenue
5726 Gage Ave
585 ft from 5605 Gage Avenue &
818 ft from 6231 Eastern Avenue
Track and Trace System Reconciliation and Financial Accountability The state's DCC emergency regulations in effect since April 1, 2023, and made permanent January 1, 2024, imposes increased track -and -trace requirements to regulate cannabis product inventory. The California Cannabis Track and Trace (CCTT) system is a record keeping system using software with unique identifiers (UI Ds) for reporting the movement of cannabis and cannabis products through the licensed commercial cannabis distribution chain. Pursuant to California Code of Regulations Title 4 §15051 (Track and Trace System Reconciliation), all cannabis retailers are required to keep account of all inventories. Should any discrepancies be noted, the licensee must report to the DCC pursuant.
This track and trace system provides substantial support for accountability. Every licensee must keep and maintain records in with the licensed commercial cannabis business. These records pertain to sales, staff, and contracting activities.
Source: https://cannabis.ca.gov/wp-content/uploads/sites/2/2023/12/dcc commercial cannabis regulations.pdf ENVIRONMENTAL REVIEW:
In accordance with CEQA (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), staff recommends the Project be found categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) Section 15061(b)(3) (Common Sense Exemption). The Project would involve the tenant improvements to an already existing commercial structure to support a new commercial use. This Project and proposed tenant improvement construction would comply with building, energy efficiency, and land use and development standard provisions. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
CONCLUSION:
Exhibit 2 283
The Project is subject to the same or stricter development and operating standards than a typical commercial use.
The Project, as proposed, would not result in more impacts than other retail uses and cannot be discriminated for the sale of cannabis alone. Conditions of approval, including but not limited hours of operation and security requirements have been placed on these uses, as with other entitlements like alcohol and certain sensitive retail uses. "Sensitive uses" include sites that host recreation, educational or social activities for minors as a primary use; and do not include primarily residential use sites, buildings, or structures.
A well -regulated industry consistent with provides public benefit and it is anticipated that, with the execution of proposed development agreement ensuring vested development rights in exchange for community investment to include revenue for youth programs, housing, and homelessness issues, and other discretionary items, that burdens of public interests would be lessened. The Planning Commission was the initial body to review the commercial cannabis activity ordinance and made the recommendation to include more public participation, restrict the type to retail, and permit the use conditionally. Duly noticed public hearings occurred on operational standards, including locational criteria, and other development and design standards on May 8th and May 30th, 2023. After the public hearing introduction of the matter on June 12, 2023, the Council signified its intent to approve, and a second reading and adoption of the ordinance occurred on June 26, 2023.
Since the use is conditionally permitted, the Planning Commission is charged with ensuring the proposed development is consistent with the local laws and recommending City Council action on draft development agreements consistent with regulatory provisions.
Since state legislation is likely to increase the availability and prevalence of commercial cannabis activity and cannabis -related products, it is appropriate that the City Council act within the confines of state law regulating permissible and lawful activity.
It is recommended that the Planning Commission determine the Project is categorically exempt from CEQA, approve Conditional Use Permit No. 2023-067 and recommend to the City Council the approval of Ordinance No. 941 to approve the City to enter into and execute DA No. 2023-067. The proposed conditions of approval included in CUP No. 2023-067 would require that the operation of the cannabis retail use follow the requirements of the City and California Department of Cannabis Control (DCC). The conditions of approval would also help lessen any potential negative consequences.
FISCAL IMPACT:
If the CUP and DA are approved, the Applicant would be required to make an up -front payment of $100,000 upon the effective date of the DA and renew the contribution annually following the execution of the DA. The Applicant would also be required to make quarterly contributions equal to 10 percent (10%) of gross receipts. Pursuant to the DA terms, eighty percent (80%) of these funds would be dedicated to the City's youth and recreational programming and housing programs. Under the DA, the Applicant would also be responsible for the cost of staff time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the DA, CUP, BGMC and other applicable laws and regulations (Cost Recovery).
ATTACHMENTS:
Exhibit 1 — Resolution #PC 2024-04 - CUP
Exhibit 2 — Resolution #PC 2024-05 — DA
Exhibit 3 - Radius Map
Exhibit 4 - DA Draft Ordinance No. 941
Exhibit 5 - Draft Development Agreement
Exhibit 6 - February 21, 2024 Planning Commission Staff Report Exhibit 2 280
Exhibit 7 - Compassionate Use Act
Exhibit 8 - MCRSA
Exhibit 9 - Comprehensive Adult Use of Marijuana Act
Exhibit 10 - Ordinance No. 934_2023-06-27 (SIGNED)
Figure 1 - Current Retail Cannabis Applications
Figure 2 - Overlay of Surrounding Commercial Cannabis Retail Rates APPROVED ELECTRONICALLY BY:
Lloyd Pilchen, Deputy City Attorney for Rick R. Olivarez, City Attorney Gustavo Romo, Director of Community Development
Exhibit 2 290
RESOLUTION #PC 2024-04
RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF BELL GARDENS APPROVING
CONDITIONAL USE PERMIT NO. 2023-67
WHEREAS, Sean Maddocks, representing Norman Yousif of OTC Bell Gardens, LLC (Applicant), has requested approval of a conditional use permit (CUP) and a development agreement (DA) to develop and operate a storefront cannabis retail business in the City of Bell Gardens (City);
WHEREAS, CUP and DA No. 2023-067 propose tenant improvements to an existing 6,064 square -foot (SF) commercial building located at 5605 Gage Avenue (Subject Site) into two commercial suites, with one approximately 2,486 SF suite occupied by the Applicant for a proposed cannabis retail use and an approximately 3,578 SF suite to accommodate redevelopment of the existing Mega Mart grocery store tenant or another commercial use and Ordinance No. 941 to approve a development agreement (DA) authorizing a cannabis retail use, subject to conditions of approval inclusive of the execution of the DA ordinance (Project) by and between OTC Bell Gardens, LLC and the City of Bell Gardens (City) at the Subject Site;
WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months unless an applicant executes a DA with the City;
WHEREAS, the Subject Site is designated as Mixed Use (Commercial/Residential) (MU) in the City's General Plan Land Use Element;
WHEREAS, the MU Land Use designation has been concentrated on parts of Gage Avenue and Eastern Avenue and refers to a combination of commercial and residential uses working in tandem;
WHEREAS, the corresponding zone for the MU Land Use Element designation is the Mixed -Use Commercial/Residential (M -U) Zone, which conditionally permits a cannabis use, subject to certain siting requirements and development standards and the Subject Site is currently located within Zone M -U;
WHEREAS, the intent and purpose of Bell Gardens Municipal Code (BGMC) Chapter 9.20 is to provide "supplementary previsions for uses which the city finds require special attention due to their sensitive nature and potential impacts to the community[;]" WHEREAS, the Applicant requested, pursuant to BGMC Chapter 9.50, the Planning Commission to approve a CUP for a cannabis retail use with conditions which are deemed necessary to ensure the proposed use will not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare, or be materially detrimental to the property of other persons located in the vicinity of such conditional use;
WHEREAS, in conjunction with the CUP, the Applicant has requested a Exhibit 3 236
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development agreement to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5) year term in exchange for public benefits;
WHEREAS, the approval of CUP No. 2023-067 would promote the public health, safety, and general welfare because it would facilitate the orderly development of the Subject Site, create a physical environment that would be consistent with and complement the City's goals and visions since new construction would comply with BGMC provisions for building, energy efficiency, and development standards; protect natural resources from adverse impacts because vegetation installed would be drought tolerant and found by an arborist to likely thrive at the Subject Site; improve, upgrade, and create additional community facilities and infrastructure, enhance services and assist in implementing the goals of the General Plan since the proposed development would comply with low impact development guidelines to manage stormwater runoff in a way that mitigates the impacts of pollution to rivers, lakes, streams and the ocean; and reduce the economic risk to the surrounding community since a development agreement would establish certain development rights on real property in exchange for public benefits to the City; WHEREAS, Policy No. 3 of the General Plan Land Use Element provides that the City shall promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of the commercial areas in the City;
WHEREAS, the Project is consistent with Policy No. 3 because the Project would result in two commercial uses at the Subject Site thereby emphasizing the commercial identity of the commercial areas in the City;
WHEREAS, Policy No. 4 of the General Plan's Land Use Element asserts that the City shall encourage private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements; WHEREAS, the approval of the CUP in conjunction with a DA authorizing the Project shall ensure a long-term commercial conditional use of the Subject Site for a period of up to 10 years and would be required to comply with all applicable state and local environmental requirements and is therefore consistent with Policy No. 4; WHEREAS, Policy No. 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;
WHEREAS, the Project is also consistent with Policy No. 5 because it proposes to employ locally and add potential stability to the area through increased property values associated with new construction and the conduct of well -run businesses could impact other businesses for increased area economic viability; WHEREAS, the approval of CUP No. 2023-067 would not jeopardize, adversely Exhibit 3 230
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affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare of the community because the Project would revitalize and reinforce the security to an existing commercial development which has been the source of several complaints of transient and homeless activity throughout the years;
WHEREAS, the Subject Site meets the siting requirements including the areas that prohibit a cannabis retail use pursuant to Section 9.20.160 of the BGMC, inclusive of the 600 -foot distancing requirement of day care centers, youth centers, schools, and parks and 500 -foot distancing requirement from any other cannabis uses; WHEREAS, the Applicant has provided a Lighting Plan, Odor Mitigation Plan, and Security Plan (incorporated herein by reference) that aim at providing safe and secure environment for both customers and the surroundings, and that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, the Subject Site is approximately 21,379 square feet, rectangular in shape, and is currently developed with a 6,064 square foot commercial building and is therefore adequate in size, shape, and topography to accommodate the development features prescribed in Title 9 of the BGMC to support the proposed business; WHEREAS, the Subject Site is located on Gage Avenue, which is one of the commercial corridors in the City and designated as a secondary highway in the 2022 Transportation and Circulation Element, as a part of the City's General Plan; WHEREAS, Gage Avenue is designated as a collector street and designed to move traffic from collectors to boulevards and keep through traffic off of residential, local streets; WHEREAS, the introduction of a cannabis retail use in an already -developed commercial corridor that operates similarly to other retail operations is unlikely to result in a substantial increase in traffic volumes pedestrian traffic; WHEREAS, the Subject Site is adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection;
WHEREAS, Applicant and Developer propose to address concerns relating to safety, odor, and nuisance with lighting, odor mitigation, and security plans that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, 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. (Development Agreement Statute), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights on real Exhibit 3 23g
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property in exchange for public benefits;
WHEREAS, consistent with the requirements of the Development Agreement Statute, the City adopted Resolution 2023-043 ("Development Agreement Procedures") authorizing the use and establishing the procedures and requirements for the consideration of development agreements within the City for a cannabis retail use; WHEREAS, the Project would repurpose an existing building on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements, it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would not cause a direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities);
WHEREAS, pursuant to California Government Code Sections 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter;
WHEREAS, on February 21, 2024, the Planning Commission held a public hearing and considered public comments, reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 approving a development agreement;
WHEREAS, after deliberations, the Planning Commission requested that staff prepare a report addressing issues related to the proposed public benefits and comparison to the taxes and revenues in other neighboring cities, and continued the item until the next regularly scheduled Planning Commission meeting on March 20, 2024; WHEREAS, on March 20, the Planning Commission was unable to convene a meeting due to lack of quorum, therefore continuing the item to the next regularly scheduled Planning Commission meeting on April 17, 2024;
WHEREAS, on April 17, 2024, the Planning Commission reopened the public hearing for the item and considered public comments, reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 approving a development agreement to permit the use for up to 10 years in exchange for public benefits;
WHEREAS, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to CUP No. 2023-067 to permit a cannabis retail use at the Subject Site; and
Exhibit 3 238
Resolution #PC 2024-04
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2024-04, conditionally approving CUP No. 2023-067 subject to the adoption of Ordinance No. 941 authorizing execution of DA No. 2023-067.
NOW, THEREFORE, THE PLANNING COMMISSION DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated in full, herein.
SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2023-067:
i. Is not in conflict with the General Plan for the area and complies with the standards in Title 9 of the Bell Gardens Municipal Code. ii. Does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare. iii. The Subject Site for the proposed conditional use is adequate in size, shape, and topography to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in BGMC Title 9, as required by the Planning Commission as a condition of approval in order to integrate said use with the existing uses in the neighborhood. iv. The Subject Site for the proposed conditional use is served by highways or streets adequate in width and improved as necessary to carry the kind and quantity of traffic such use would generate.
v. The Subject Site is served by the required utilities, including electricity and water supply of quantities and pressures required by the fire code to provide adequate protection.
SECTION 3. In accordance with CEQA and the CEQA Guidelines, CUP No. 2023- 067 is categorically exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities).
SECTION 4. The Planning Commission hereby grants the Applicant's request related to CUP No. 2023-067 to permit the Project at the Subject Site, subject to the following conditions incorporated herein in full, by reference (Exhibit "A").
SECTION 5. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
SECTION 6. This CUP shall become effective upon the expiration of the 15 Exhibit 3 220
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calendar days after approval by the Planning Commission unless an appeal of the CUP has been filed with the City Clerk pursuant to Section 9.50.090 of the BGMC.
PASSED, APPROVED AND ADOPTED this 17th day of April 2024.
LA'I 'OSA, CHAIRPERSON
ATTEST:
ERI GUTIERREZ, PLANNING RETARY
APPROVED AS TO FORM:
LLOYD PILCHEN, ASSISTANT CITY ATTORNEY
Exhibit 3 220
Resolution #PC 2024-04
EXHIBIT "A"
CUP NO. 2023-067 — CONDITIONS OF APPROVAL
General OPeratin. Conditions
1. The Subject Site shall be improved, maintained, and operated in accordance with:
a. The application on file in the Community Development Department and Exhibits 1 through 14 included in the staff report which are attached and incorporated herein by this reference.
b. All applicable laws, including but not limited to, the BGMC, the Bell Gardens Zoning Ordinance, the Business and Professions Code, Los Angeles County Department of Public Health, and the California Department of Cannabis Control (DCC).
c. All the conditions of approval as set forth in this Planning Commission Resolution for CUP No. 2023-067.
d. The terms and conditions set forth in DA No. 2023-067.
2. All conditions stated herein shall be binding upon the Applicant, their successors -in - interest, and assigns; shall run with the land; shall limit and control the issuance and validity of certificates of occupancy, and shall restrict and limit the construction, location, and conditional use and maintenance of all land and structures adjacent to or within the vicinity of the Subject Site. Failure to adhere to these conditions of approval may result in revocation pursuant to the process set forth in Section 9.62.010 of the BGMC.
The conditions herein shall run with the land. However, any successor -in -interest must obtain the proper approvals to assign or transfer the rights, interests, and obligations pursuant to the DA No. 2023-067 in order to effectuate the rights and obligations set forth in this CUP and obtain a business regulatory permit pursuant to BGMC Chapter
5.12 and Chapter 5.64.
3. CUP No. 2023-067 shall be valid strictly for a state DCC Type 10 license as defined by the DCC . Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent sign off from the Building and Safety Division for the Subject Site, the Applicant shall submit a copy of its business regulatory permit and Type 10 license as approved by DCC to the City of Bell Gardens Community Development Department. Cannabis cultivation, cannabis manufacturing, cannabis laboratory testing, and cannabis distribution are strictly prohibited and shall constitute grounds for revocation and termination of all rights hereunder.
All rights hereunder shall terminate within eighteen (18) months from the date of Exhibit 3 242
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issuance of the first building permit for the Subject Site after the approval of CUP No. 2023-067 unless DA No. 2023-067 is approved for a longer period of time, not to exceed ten (10) years. For the purposes of this condition, "building permit" shall have the same definition as BGMC Section 9.20.160(D).
CUP No. 2023-067 shall be valid strictly in compliance with DA No. 2023-067; any privileges granted hereunder shall become null and void should there be a violation hereof.
4. The abandonment or non -implementation of the conditions stated in this CUP No. 2023-067 for a period of one (1) year from the effective date of the CUP shall terminate the CUP, and any privileges granted there under shall become null and void; unless a written time extension for a period not to exceed one (1) year is granted by the Planning Commission. A written request to extend the time to comply with the conditions of approval stated in the CUP must be submitted to the Bell Gardens Community Development Department at least thirty (30) days prior to the expiration of the one (1) -year period.
5. Consistent with Condition No. 2, in the event of a transfer of ownership, rights, interests, obligations and/or privileges of the Subject Site involved with this CUP No. 2023-067, the transferee shall be fully informed and consent to the conditional use and development of Subject Site as set forth by this CUP together with all conditions, which are stated herein.
6. The Applicant shall comply with all applicable City, county, DCC, and other state regulations as they pertain to the sale of cannabis. Violation of any of the conditions of CUP No. 2023-067 or of any city, county and/or state law or regulation pertaining to the sale of cannabis shall be cause for revocation and termination of all rights hereunder.
7. The Applicant shall obtain all necessary permits and licenses from the state, City, and county agencies, including but not limited to, Fire Department and Industrial Waste for the proposed improvements and business operations on the Subject Site.
8. Prior to issuance of a building permit, the Applicant shall submit payment for the Bell Gardens Development Impact Fee(s) pursuant to BGMC Chapter 3.27.
9. Prior to issuance of a building permit, the Applicant shall submit design or payment for the Bell Gardens Art in Public Places pursuant to BGMC Chapter 9.71.
10. City staff, including but not limited to, the City Manager, Community Development Department, Bell Gardens Police Department, Los Angeles County Fire Department, and DCC shall have the right -of -entry at any time to inspect the Subject Site to verify compliance with these conditions of approval, terms set forth in DA No. 2023-067, and the BGMC, including but not limited to the operating requirements set forth in Section
5.64.040 and all state and county laws and regulations.
Exhibit 3 242
Resolution #PC 2024-04
11. Prior to commencing operations, owner/operator must possess a valid retail license, issued by the Department of Cannabis Control, pursuant to Division 10, commencing with Section 26000, of the California Business and Professions Code.
12. Prior to commencing operations, the owner/operator must obtain a business regulatory permit pursuant to BGMC Chapter 5.12 and Chapter 5.64. Consistent with the requirements Section 5.64.020 of the BGMC, the owner/operator shall commence operations within one (1) year of issuance of a business regulatory permit. Failure to commence operations within one (1) year of the issuance of a business regulatory permit shall constitute grounds for revocation and termination of all rights hereunder.
13. The Director of Community Development and/or their designee(s) shall be authorized to make minor modifications to this CUP No. 2023-067 or any of the conditions specified herein if the modifications shall achieve substantially the same results as would strict compliance with the approved conditional use permit and conditions.
14. The Subject Site shall be developed, maintained, and used in a neat, quiet, and orderly condition and all uses on the Subject Site shall be operated in a manner that shall not disturb or be detrimental to adjacent properties, surrounding land uses, or occupants.
15. Hours and days of exterior building construction and site improvements shall be as follows: Monday through Saturday, not before 8:00 A.M. and not after 7:00 P.M. on the same day. No construction or grading shall take place on Sundays and City observed holidays.
16. The Applicant shall ensure that the Subject Site is properly maintained, secured, and free of debris at all times/phases of construction.
17. Prior to commencing the construction of the Project, the Applicant shall submit a site plan indicating on -Subject Site vehicular and pedestrian traffic circulation during all stages of construction to the Community Development Department for review and approval.
18. The Subject Site and surrounding area shall be maintained in a manner free of graffiti. Any graffiti that should appear on buildings, walls, or other private property on the Subject Site shall be removed within forty-eight (48) hours of being observed or reported. If painting is required, the paint shall be identical to the existing color.
19. During operations, the Subject Site and adjacent public rights -of -way (ROW), inclusive of the alley adjacent north of the Subject Site, shall be maintained in a clean and well - kept condition, free of debris and litter at all times.
20. The Subject Site's landscaping areas shall be fully planted pursuant to the approved landscape plan and always maintained (free from debris, litter, and wilted or dead Exhibit 3 243
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live scape removed and replaced) for the life of the permit.
21. The Applicant and/or their designee shall ensure that any existing public telephones located on the premises be removed from the Subject Site. The installation of any outside public telephone shall be prohibited on the Subject Site and the public ROW.
22. The hours of operation at the Subject Site shall be restricted as follows: 10:00 a.m. until 10:00 p.m. Monday through Sundays, with the last delivery order to be placed by 9:00 p.m. and all delivery vehicles returned no later than 10:00 p.m.
23. The installation of signs on the Subject Site shall be in accordance with the provisions in BGMC Chapter 9.48. The Applicant shall obtain approval from the Community Development Department in this conditional use permit site plan update and a building permit for the installation of any signs on the property shall be obtained prior to the installation. Temporary signs, such as banners, pennants and flags shall be prohibited, except for any traffic/safety signs specific to construction activity.
24. Signs prohibiting loitering, smoking, and vaping on or around the Subject Site shall be posted and maintained to the satisfaction of the Bell Gardens Police Department prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
25. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the Applicant shall work closely with the BeII Gardens Police Department in updating the Security Plan (Exhibit 10) to guarantee adequate security measures are provided on the Subject Site, inclusive of the surface parking lot, at all times.
26. There shall be no outdoor storage permitted on the Subject Site at any time.
Cannabis Retail — Conditional Use Operating Conditions
27. These conditions of approval must be posted in a conspicuous location for public viewing within the establishment on a continuous basis for the life of the Project beginning on the date that operations at the Subject Site commence.
28. The establishment shall only allow patrons of the age twenty-one (21) and older, with presentation of a valid government -issued identification card.
29. No persons under the age of twenty-one (21) shall be employed to sell cannabis or cannabis products at the Subject Site.
30. An electronic age verification device shall be purchased and retained at the Subject Site to determine the age of any individual and shall be installed at each point -of -sale location prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
Exhibit 3 24
Resolution #PC 2024-04
31. The electronic age verification device shall be maintained in operational condition at all times, at each point -of -sale location, and all employees shall be instructed in its use. If an age verification device fails to operate at any point -of -sale location, no sales shall take place at that point -of -sale location until the age verification device is repaired and operational.
32. Owner/operator shall abide by all laws applicable to cannabis retailers pursuant to the Medicinal and Adult -Use Cannabis Regulation and Safety Act (Bus. & Prof. Code § 26000 et seg.) and related Medicinal and Adult -Use Commercial Cannabis Regulations (Cal. Code Regs., tit. 4, § 15000 et seq.).
33. Signs advertising cannabis brands or the availability of cannabis or cannabis products for sale at the Subject Site shall not be visible from the exterior of the building at all times.
34. The display of cannabis and cannabis products shall be interior only (no outdoor display) at all times.
35. Other than limited amounts of cannabis used for interior display purposes or immediate sale, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss at all times.
36. There shall be no food, beverage, video or pinball games, televisions, or similar loitering attractions accessible to customers, persons engaged in sales or any transactions, and/or patrons, on the Subject Site at all times.
37. There shall be no samples provided for the on -site consumption of cannabis and cannabis products at any time.
38. There shall be no sale or display of cannabis products that is in the form of an alcoholic beverage, including, but not limited to, an infusion of cannabis or cannabinoids derived from industrial hemp into an alcoholic beverage at any time.
39. There shall be no sale of cannabis and cannabis products over the daily legal limit to any single patron at any time, pursuant to California Health and Safety Code Section 11357.
40. All cannabis and cannabis products purchased by patrons shall not leave the Subject Site unless they are placed in an opaque packaging at any times.
41. Consumption of cannabis and cannabis products on -site is strictly prohibited, outside of the building either on the public ROW or anywhere on the Subject Site at all times.
42. Pursuant to Califomia Labor Code Section 6404.5(c), smoking in the facility shall be Exhibit 3 246
Resolution #PC 2024-04
strictly prohibited at all times. There shall be no display of ashtrays, or other receptacles for the purpose of collecting smoke -related debris within the interior or exterior of the building at the Subject Site.
43. Cover charges, entry fees, or minimum purchases for patrons visiting the facility shall be strictly prohibited.
44. The authorized conditional use shall be conducted at all times with due regard for the character of the surrounding neighborhood, and the right is reserved to the City Manager, Community Development Director, or their designee(s) to impose additional corrective conditions, if, it is determined that such conditions are proven necessary for the protection of persons in the neighborhood or occupants of adjacent or nearby properties.
45. The facility shall operate in accordance with the Security Plan, incorporated by reference and attached hereto as Exhibit 10 at all times. Surveillance recordings shall be maintained for a minimum period of sixty (60) days and are intended for use by the Bell Gardens Police Department.
46. The facility shall operate in accordance with the Lighting Plan, incorporated by reference and attached hereto as Exhibit 8, at all times. All exterior portions of the site shall be adequately illuminated in the evening so as to make discernable the faces and clothing of persons utilizing the space. Lighting shall be directed onto the Subject Site without being disruptive to uses at the adjacent properties.
47. The facility shall operate in accordance with the Odor Mitigation Plan, incorporated by references and attached hereto as Exhibit 9 at all times.
48. The Bell Gardens Police Department shall be notified within twenty-four (24) hours of any diversion, theft, loss, or other criminal activity on the premises that occurs at any point after the approval of this CUP.
Building/Site Improvements
49. The proposed site improvements on the Subject Site shall be subject to review and approval by the Planning and Building and Safety Divisions. All proposed improvements shall be completed in accordance with the provisions of the California Building Code as amended by Title 26 of the Los Angeles County Building Code. All required permits from the Building and Safety Division shall be secured prior to commencing the construction of the Project. For the purposes of this CUP, the term "construction" includes any demolition, grading, and construction activities, inclusive of tenant improvements.
50. All improvements at the Subject Site shall comply with all Americans with Disabilities Act (ADA) requirements as part of the Building and Safety plan check process.
Exhibit 3 24
Resolution #PC 2024-04
51. The Applicant shall be responsible for submitting plans for Building and Safety plan check and obtain permits for all the work proposed on the Subject Site.
52. Vehicles associated with the construction activities at the Subject Site shall not be permitted to park on the public ROW, inclusive of the alley adjacent of the Subject Site.
53. Temporary storage of building materials shall be contained within the Subject Site and shall be properly secured and screened during all stages of construction.
54. During all stages of construction, the Subject Site shall maintain a six-foot (6') high chain -link fence and gates around the entire perimeter of the Subject Site. The gates shall be closed and locked after construction hours.
55. Contractors and subcontractors engaged in the construction activities at the Subject Site shall obtain a business license and all required permits from the City of Bell Gardens.
56. The Project includes no consideration or approvals for signage. Prior to the installation of any signs at the Subject Site, the Applicant shall submit three (3) sets of sign plans for review and approval to the Community Development Department.
Sign plans shall include elevations, lettering, colors, dimensions, and installation methods.
57. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit a color and material sample board for the exterior building materials and paint colors for trims, wall surfaces, moldings, decorative awnings, frame and glass for all windows and doors, and other exterior building elements shall be subject to review and approval by the Community Development Department. Subsequent construction of the Project shall substantially comply with the approved exterior building elements.
58. Prior to issuance of a building permit, the Applicant shall submit for review and approval to the Community Development Department a sample of the window frame and glass that shall be utilized on the door and windows of the building. Pursuant to Section 9.20.160(B)(3) of the BGMC windows facing the street frontage shall be clear, untinted glass. Mirror, reflective, or tinted glass may only be permitted as an architectural or decorative accents and shall comprise no more than twenty percent (20%) of the window. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.
59. Decorative railings and grilles that are placed in front of or behind windows shall be at least 75 percent (75%) open to perpendicular view and no more than six feet (6') in height. Security gates and grilles shall be prohibited on the exterior of any structure.
Exhibit 3 24
Resolution #PC 2024-04
60. Pursuant to Section 9.38.110 of the BGMC, a minimum loading space of 250 SF is required. Parking depicted on the Subject Site shall be iterated to provide a loading space prior to submittal of plans to Building and Safety plan check.
61. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit to the Community Development Department, pursuant to Section 9.48.030 of the BGMC, signage specifications for approval.
62. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the roof drainage system shall be integrated into the walls of the building so that there are no visible downspouts to the satisfaction of the Building and Safety Division.
63. Any new roof mounted mechanical equipment, including any air compressor units, shall be installed a minimum of six inches (6") below the lowest building parapet in order to prevent the visibility from public ROW. Compliance shall be demonstrated to the satisfaction of the Building and Safety Department prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
64. The rolling gates located along the public alley ROW shall remain closed at all times, with the exception of trash service days.
65. The following construction practices shall be implemented by all Project contractors to reduce construction noise levels:
a. Ensure that construction equipment is properly muffled according to industry standards, and all equipment shall utilize noise shielding and muffling devices. b. Locate the construction staging area and noise -generating equipment away from adjacent residents as much as feasible.
66. The Applicant shall work closely with City staff to coordinate appropriate accommodations for commercial waste service on the Subject Site prior to issuance of any Project building permit. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.
67. Proposed and required on -Subject Site and off -Subject Site improvements shall be completed by the Applicant prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.
68. Water heater enclosures, vents, flashings, pipes, and conduits for solar or other wall - mounted equipment shall be painted the same color as the surface to which they are attached to the satisfaction of the Building and Safety Department, prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent thereof by the City on the Subject Site.
Exhibit 3 228
Resolution #PC 2024-04
69. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all cable television service connections to the Project shall be installed underground. All cable and connectors shall be screened completely from view and within the building served.
Visible cabinets and boxes shall be treated to match the materials and colors of the buildings. The Applicant is responsible for contacting the cable company and arranging cable installation at the appropriate stage of construction. The type and location of cable installation is subject to approval of the Community Development Department and the construction coordinator of the cable television company servicing the area prior to issuance of Project building permits.
70. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all electrical service connections to the Project shall be installed underground. All surface or ground mounted mechanical equipment including terminal boxes, pull boxes and electric meter cabinets shall be screened from public view and treated to match the materials and colors of the adjacent building. The Applicant is responsible for contacting Southern California Edison and arranging electrical service at the appropriate stage of construction. Installation of mechanical equipment is subject to approval by the Community Development Department and the customer service planner at Southern California Edison Company prior to issuance of Project building permits. For the purposes of this condition, "building permit" shall have the same definition as Section
9.20.160(D) of the BGMC.
71. The trash enclosure on the Subject Site shall be constructed with a six-foot (6') high split face concrete masonry unit block wall. A six-foot (6') high metal gate shall be installed and provided with a self -closing and self -latching mechanism. The top of the structure shall be protected with a decorative metal trellis.
Landscapinq
72. All designated landscaping areas, including but not limited to parkway areas shall be fully planted to the satisfaction of the Building and Safety Division prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card or equivalent thereof by the City.
73. Landscaped areas shall always be maintained by the Applicant at all times.
Public Works Department
74. The Applicant shall designate an ADA path of travel in ROW, and complete repairs to concrete sidewalks and drive approaches for ADA compliance.
Exhibit 3 249
Resolution #PC 2024-04
Parking Lot/Site Maintenance
75. The Subject Site and adjacent public ROW shall be cleared of all construction debris prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent approval by the Community Development Department.
76. All parking spaces, drive aisles, walkways, shall be free of gouges, ruts, and/or gaps in the paved surface area and shall be maintained in good working order to not constitute a safety hazard to the public.
77. The proposed parking lot area including but not limited to vehicle maneuvering areas within the Subject Site shall be improved with asphalt pavement to the satisfaction of the Community Development Department. Parking lot and public ROW, inclusive of sidewalk areas immediately adjacent to the Subject Site shall be pressure washed quarterly to remove oil stains and maintained clear of trash, debris, and outside storage at all times.
78. All designated parking spaces shall be stripped in accordance with the BGMC and provided with concrete wheel stops at the front end of each parking space.
79. Any required ADA truncated domes shall be composed of stamped concrete and shall be a dark gray color.
80. The repair or maintenance of any vehicles on the Subject Site, public ROW such as a street or alley, including but not limited to oil change or adding fluids to vehicles, shall be strictly prohibited. Signs shall be posted throughout the parking lot area stating that repair and maintenance activities at the Subject Site are prohibited.
81. Inoperable vehicles shall not be parked within any designated parking spaces, drive aisle, or public ROW adjacent to the Subject Site at any time.
82. Prior to issuance of a building permit, the Applicant shall submit fence/walls plans to the Community Development Department, Planning Division for review and approval in accordance with BGMC Chapter 9.32 (Fence, Walls, and Hedges).
83. Prior to the issuance of a building final, a suitable, functional design of a new perimeter fence surrounding the Subject Site shall be installed, where applicable, to the satisfaction of the Community Development Department. The existing metal fence at the front and rear property lines of the Subject Site shall be refurbished with materials and colors compatible with the overall Project design. The type and color of the metal fence shall be subject to review and approval by the Community Development Department. All fences and walls on the Subject Site shall be maintained and in good condition at all times.
Exhibit 3 230
Resolution #PC 2024-04
84. The heights of all new fences shall be measured from the highest finished grade level on either side of the Subject Site's property line.
85. The existing recycling collection facility located at the Subject Site shall cease operations on the Subject Site. Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card or equivalent approval by the Community Development Department all structures, containers and equipment supporting the recycling collection facility shall be removed from the Subject Site to the satisfaction of the Building and Safety Division. •
Miscellaneous
86. The installation of outside public telephones shall be prohibited on the Subject Site and the public ROW.
87. The owner of the Subject Site, the Project Applicant, if different from the property owner, and each of their heirs, successors in interest, and assigns, shall defend, indemnify, and hold harmless the City and its officials, agents, officers, and employees from any and all claims, actions, or proceedings brought by any party to attack, set aside, void or annul, rescind, or otherwise challenge the approval of the Project or the approval of any entitlement related to the Project by the City Council, Planning Commission, or its staff, including but not limited to, environmental determinations.
Such indemnification and hold harmless shall include damages, judgments, settlements, penalties, fines, and defensive costs and expenses, incurred by, or ordered against the City in connection with or arising out of such claims, actions, or proceedings, including but limited to, interest, reasonable attorneys' fees and costs, or expert witness fees, incurred by the City. The City shall promptly notify the Applicant of any claim, action or proceeding and the City and Applicant shall mutually cooperate fully in the defense thereof.
88. The Applicant shall sign, notarize, and return to the Community Development Department an affidavit accepting all conditions of approval of this CUP No. 2023- 067 within fifteen (15) days from the approval of Resolution #PC 2024-04 and CUP No. 2023-067. The Applicant acknowledges and understands that all conditions set forth in this Resolution are conditions precedent to the Commission's grant of approval and failure to comply with any condition contained herein shall render this CUP non -binding as against the City and shall confer the Applicant no legal rights under the law. This conditional use permit shall not become effective unless and until the Applicant returns the fully executed, notarized affidavit to the Community Development Director within the time stated. Failure to comply with this condition within the prescribed time period above shall render this CUP null and void.
Exhibit 3 232
RESOLUTION #PC 2024-05
RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF BELL GARDENS RECOMMENDING
THE ADOPTION ORDINANCE NO 941 APPROVING
DEVELOPMENT AGREEMENT NO. 2023-067
WHEREAS, Sean Maddocks, representing Norman Yousif of OTC Bell Gardens, LLC (Applicant), has requested approval of a development agreement (DA) and a conditional use permit (CUP) to develop and operate a storefront cannabis retail business in the City of Bell Gardens (City);
WHEREAS, Ordinance No. 941 would authorize the City to enter into an agreement with the Applicant and property owner to establish certain development rights in exchange for public benefits for a five (5) year term, with an option for an additional five (5) year extension, by and between OTC Bell Gardens, LLC and the City at 5605 Gage Avenue (Subject Site) in connection with a CUP authorizing a storefront cannabis retail use, subject to conditions of approval inclusive of the execution of the DA; WHEREAS, 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. ("Development Agreement Statute"), which authorizes the City and an individual with an interest in real property to enter into a development agreement in order to establish certain development rights on real property in exchange for public benefits; WHEREAS, consistent with the requirements of the Development Agreement Statute, the City Council adopted Resolution No. 2023-43 (Development Agreement Procedures) on June 12, 2023, authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City; WHEREAS, the Development Agreement Procedures permit a cannabis retail use for a term not to exceed 10 years in exchange for public benefits; WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months unless an applicant executes a development agreement with the City; WHEREAS, the Subject Site is designated within the City's General Plan Land Use Element as Mixed Use (Commercial/Residential) (MU);
WHEREAS, the MU Land Use Designation has been concentrated on parts of Eastern Avenue and Gage Avenue and refers to a combination of commercial and residential uses working in tandem;
WHEREAS, the corresponding zone for the MU Land Use Element Designation is the Mixed -Use (M -U) Zone, which conditionally permits a cannabis use, subject to certain Exhibit 3 232
Resolution #PC 2024-05
locational requirements and development standards and the Subject Site is located within Zone M --U;
WHEREAS, the Applicant has applied for a CUP to permit a cannabis retail use at the Subject Site;
WHEREAS, in conjunction with the CUP, the Applicant has requested for a development agreement to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5) year term in exchange for public benefits that shall obligate the Applicant to provide an up -front payment of One Hundred Thousand Dollars ($100,000) upon the effective date of the development agreement, to be renewed on an annual basis as well as the payment of quarterly public benefits in an amount equivalent to 10 percent (10%) of gross receipt sales; WHEREAS, pursuant to the City's Development Agreement Procedures, 80 percent (80%) of the public benefits derived from DA No. 2023-067 shall be dedicated to youth and educational programming and resources for the City's housing programs; WHEREAS, Policy No. 3 of the General Plan Land Use Element provides that the City shall promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of the commercial areas in the City;
WHEREAS, the Project is consistent with Policy No. 3 because the Project would result in two (2) commercial uses at the Subject Site, thereby emphasizing the commercial identity of the commercial areas in the City;
WHEREAS, Policy No. 4 of the General Plan's Land Use Element asserts that the City shall encourage private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements; WHEREAS, the CUP in conjunction with a DA authorizing the Project for a period of up to 10 years would ensure a long-term commercial conditional use of the Subject Site that is required to comply with all applicable state and local environmental requirements and is therefore consistent with Policy No. 4;
WHEREAS, Policy No. 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;
WHEREAS, the Project is consistent with Policy No. 5 because it proposes to involve the revitalization of an existing commercial site; WHEREAS, the Project is also consistent with Policy No. 5 because it proposes to employ locally and add potential stability to the area through increased property values associated with revitalization of an existing commercial structure and the conduct of well - Exhibit 3 238
Resolution #PC 2024-05
run businesses could impact other businesses for increased area economic viability; WHEREAS, the DA would facilitate the orderly development of the Subject Site; create a physical environment that would be consistent with and complements City's goals and visions; protect natural resources from adverse impacts; improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals and policies of the General Plan; and reduce the economic risk to the surrounding community;
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (Planning Commission) to conduct a public hearing to review a proposed development agreement; WHEREAS, DA No. 2023-067 agreement incentivizes active participation in the development process based on significant public benefits derived from monetary contributions; such payments would be dedicated to the City's youth and housing programs and could be used immediately to promote the public health, safety, and general welfare of the surrounding community;
WHEREAS, the Applicant acknowledges and agrees that the development agreement would confer substantial private benefits on them that would place burdens 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; WHEREAS, the proposed DA would be connected to and requires compliance with a CUP that clearly outlines specific conditions, requirements, and timelines for the development of the retail storefront facility to help ensure the Applicant remains in compliance with all local, state, and federal regulations, where applicable; WHEREAS, DA No, 2023-067 is designed to facilitate ongoing communication and collaboration between the Applicant who would be licensee and the local community addressing concerns and ensuring the retail storefront aligns with community values and interests;
WHEREAS, the proposed DA promotes balance through the operational flexibility built into the agreement addressing unforeseen challenges or changes in circumstances, allowing for adjustments as needed through City Council approval; WHEREAS, in exchange for an initial five (5) year term, with an option to extend the development rights for an additional five (5) years for a total of 10 years, the Applicant would provide an annual community benefit in the amount of One Hundred Thousand Dollars ($100,000) upon the effective date for the development agreement and renewed on an annual basis and would also be required to pay a quarterly community benefit in the amount that is equivalent to ten percent (1 0%) of gross receipt sales on a quarterly basis; WHEREAS, the Applicant agrees that the payment of Community Benefits Fees is Exhibit 3 235
Resolution #PC 2024-05
proportionate to the amount that would be paid in the form of an applicable tax on commercial cannabis activities in the City related to the Project, contributing to a housing fund and youth fund;
WHEREAS, the Project would repurpose an existing building on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements and it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would not cause a reasonably foreseeable direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities);
WHEREAS, pursuant to California Government Code Section 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on February 21, 2024;
WHEREAS, on February 21, 2024, the Planning Commission held a public hearing and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 pertaining to the proposed development agreement; WHEREAS, after deliberations, the Planning Commission requested staff to prepare a report addressing issues related to the proposed public benefits and comparison to taxes and revenues in other neighboring cities, and continued the item until the next regularly scheduled Planning Commission meeting on March 20, 2024; WHEREAS, on March 20, 2024, the Planning Commission was unable to convene a meeting due to a lack of quorum, therefore continuing the item to the next regularly scheduled Planning Commission Meeting on April 17, 2024; WHEREAS, on April 17, 2024 the Planning Commission reopened the public hearing for the item, considered all public comments received both before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to Ordinance No. 941 which would result in the approval of DA No. 2023-067 between the Applicant, the Property Owner and the City for a potential term of up to 10 years in exchange for public benefits; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2024-05, recommending to the City Council the approval of Ordinance No. 941 to enter into and execute DA No. 2023-067.
NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:
Exhibit 3 236
Resolution #PC 2024-05
SECTION 1. The above recitals are true and correct and are incorporated in full, herein.
SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2023- 067:
Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;
ii. Promotes the public health, safety, and general welfare; iii. Is just, reasonable, fair, and equitable under the circumstances; and iv. Provides sufficient benefit to the community to justify entering into the agreement.
SECTION 3. The Planning Commission hereby adopts this Resolution recommending to the City Council the approval of DA No. 2023-067 through the adoption Ordinance No. 941 and authorizes the City Attorney to make clarifying changes as necessary to effectuate the terms of the DA.
SECTION 4. The Planning Commission hereby transmits and recommends to the City Council the approval of Ordinance No. 941 to authorize DA execution.
SECTION 5. The Project is exempt from CEQA, in accordance with CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities).
SECTION 6. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
PASSED, APPROVED AND ADOPTED this4,17th da
ATTEST:
f April, 2 4.
MIGUEL E LA ROSA, CHAIRPERSON
ERIKA GUTIERREZ, PLANNING SECRETARY
Exhibit 3 230
Resolution #PC 2024-05
APPROVED AS TO FORM:
LLOYD PILCHEN
DEPUTY CITY ATTORNEY
Exhibit 3 25
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL
TO:
City of Bell Gardens
City Hall
7100 Garfield Ave.
Be11 Gardens, California 90201
Attn: Office of the City Attorney
(Space above Line for Use by Recorder)
This document is exempt from the
payment of a recording fee pursuant to
Government Code Section 27383
DEVELOPMENT AGREEMENT NO. 2023-067
BETWEEN
THE CITY OF BELL GARDENS
AND
OTC Bell Gardens, LLC
Exhibit 3
238
This DEVELOPMENT AGREEMENT ("Agreement") is dated as of , 2024 by and among the City of Be11 Gardens ("City") and OTC Be11 Gardens, LLC ("Developer") and Kim Dae Ho & Hye Yeong ("Property Owner"). This Agreement shall take effect on the "Effective Date," as this term is hereafter defined. The City, Developer, and the Property Owner may each be referred to herein individually as a "Party" or collectively as the "Parties."
RECITALS
WHEREAS, in 1996, the California State Legislature approved Proposition 215, also known as the Compassionate Use Act ("CUA") (Health and Saf. Code § 11262.5 et seq.) 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 were 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";
WHEREAS, in 2004, the California State 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;
WHEREAS, on April 25, 2011, this City Council approved a moratorium on the establishment and operation of medical marijuana dispensaries through the adoption of Ordinance No. 840;
WHEREAS, in September 2015, the California State Legislature enacted and Governor Brown signed into law three bills — Assembly Bi11 243, Assembly Bill 266, and Senate Bi11 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; WHEREAS, on January 25, 2016, the City Council adopted Ordinance No. 873 to prohibit all commercial cannabis activities citywide, including Cannabis Retail Activities; WHEREAS, in June 2016 the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the "MCRSA"), under Senate Bill 837, 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;
WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act ("AUMA") was approved by 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.
Exhibit 3
��0
WHEREAS, 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;
WHEREAS, on June 27, 2017, Governor Brown signed the Legislature -approved Senate Bill 94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 are now known as the Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA") to be governed by the California Bureau of Cannabis Control; WHEREAS, on September 16, 2017, Governor Brown signed Assembly Bill 133 into law, which provided cleanup and substantive to MAUCRSA, including the removal of the requirement that licensed premises remain "separate and distinct" for each license type; WHEREAS, 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;
WHEREAS, on June 26, 2023, the City Council approved Ordinance No. 934 (i) repeal the prohibition all adult -use Cannabis Activities in the City; and (ii) establish regulations and a discretionary review process for Cannabis Retail Activities, in the M -U (Mixed Use Residential/Commercial, C -S (Commercial Service and Professional), C-3 (Medium Commercial, C-4 (Heavy Commercial, C -M (Commercial -Manufacturing), and M-1 (Light Industrial) Zones; WHEREAS, Ordinance No. 934 allows persons to engage in permissible Retail Commercial Cannabis Activities upon the City's approval of a conditional use permit and issuance of a Business Regulatory Permit, for a term of eighteen (18) months unless Developer executes a development agreement with the City;
WHEREAS, Developer seeks to improve, develop, and/or use real property to operate a Cannabis Retail use in the City, in strict accordance with the California Cannabis Laws, the Bell Gardens Municipal Code, and related statutes and regulations, as each may be amended from time to time (the "Project");
WHEREAS, 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 City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property; WHEREAS, consistent with the requirements of the Development Agreement Statute, City adopted Resolution 2023-43 ("Development Agreement Procedures") authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City;
WHEREAS, Government Code Section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement;
Exhibit 3 �m
WHEREAS, Developer has a leasehold interest in that certain real property located at 5605 E. Gage Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Numbers ("APN") 6328-003-034 and 6328-003-035 (collectively, the "Site"), upon which Developer seeks to effectuate the Project;
WHEREAS, the Site is more particularly described in the Legal Description attached hereto as Exhibit "A," the Site Plan attached hereto as Exhibit "B," and the Floor Plan attached hereto as Exhibit "C";
WHEREAS, the Site is located within the Mixed Use Commercial/Residential ("M -U") Zone in the City where Cannabis Retail sales may be conditionally peiiliitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the owner of the Site, ("Property Owner"), for the purpose of carrying out the Project; WHEREAS, the Developer has provided notarized written consent to: (1) all teluis of this Agreement, including, but not limited to, Sections 6.1 and 9.6 of this Agreement; and (2) and recordation of this Agreement against the title of the Site. Such written consent agreement is attached hereto as Exhibit "D."
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission ("Planning Commission") to conduct a public hearing to review a proposed development agreement; WHEREAS, on , 2024, the Planning Commission, in a duly noticed and conducted public hearing, considered the recommendation of approval of this Agreement to the City Council;
WHEREAS, on , 2024, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;
WHEREAS, on , 2024, the Planning Commission also reviewed, considered, and conditionally approved Conditional Use Permit No. 2023-067 pending City Council's approval of this Agreement;
WHEREAS, on , 2024, pursuant to Government Code Section 65867.5 and the City Development Agreement Procedures, the City Council, following a duly noticed and conducted public hearing, reviewed, considered, and approved Conditional Use Penult No. 2023- 072 and reviewed, considered, and adopted a first reading of Ordinance No. , and, on , 2024, the City Council approved for second reading and adopted Ordinance No. , authorizing the City's engagement into this Agreement; WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City's Development Agreement Procedures; WHEREAS, the City and Developer desire to enter into this Agreement to (i) facilitate the orderly development of the Site; (ii) create a physical environment that is consistent with and complements City's goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; and (v) reduce the economic risk of development of the Site to both City and Developer; and Exhibit 3 2!2
WHEREAS, the Parties intend through this Agreement to allow Developer to develop and operate the Project in accordance with the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:
AGREEMENT
ARTICLE 1
GENERAL PROVISIONS
Section 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 City's General Plan, including all text and maps in the General Plan.
Section 1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into and made a part of this Agreement, in full herein. In the event of any inconsistency between the Recitals and any provision of Article 1 through Article 9 of this Agreement, the particular provision of Article 1 through Article 9 shall prevail.
Section 1.3. Exhibits. The following "Exhibits" are attached hereto and incorporated into this Agreement in their entirety by this reference:
Exhibit "A":
Legal Description
Exhibit "B":
Site Plan
Exhibit "C":
Floor Plan
Exhibit "D"
Property Owner Consent
Exhibit "E"
Security Plan
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meanings:
a. "Additional Insured(s)" has the meaning set forth in Section 5.1 of this Agreement. b. "Additional City Approvals" means all ministerial and discretionary permits, licenses, or other similar entitlements, including any modifications or amendments thereto that must be secured by the Developer from the City in order to develop the Project on the Site, in addition to the Conditional Use Peimuit and the Business Regulatory Pei mit. c. "Agreement" means this Development Agreement and all Exhibits attached hereto. d. "Annual Community Benefits Fees" has the meaning set forth in Section 4.2 of this Agreement.
e. "AUMA" has the meaning as set forth in the Recitals, above. f. "Business Day" means any day except for Saturday, Sunday, any holiday that is observed by the City, or day that the City is not closed for business.
Exhibit 3 22
g. "Business Regulatory Permit" means the business regulatory permit, as required in Bell Gardens Municipal Code Chapter 5.12 required for Cannabis Retail Activity issued by the Chief of Police, which can only be issued upon City approval of a Conditional Use Permit, State Cannabis License, and Additional City Approvals for each proposed Cannabis Retail Activity project;
h. "California Building Standards Codes" means the California Building, Mechanical, Plumbing, Electrical, Fire or other similar codes set forth in Title 24 of the California Code of Regulations, as may be adopted by the City, with amendments, and set forth in the Bell Gardens Municipal. Code.
i. "California Cannabis Laws" means AUMA, MAUCRSA, CUA, 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. j. "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.
k. "Cannabis Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six (6) plants as authorized under state law for personal use.
1. "Cannabis Distribution" means the procurement, sale, and transport of cannabis and/or cannabis products between those persons with requisite state and local government licenses to conduct peluiissible Commercial Cannabis Activities.
m. "Cannabis Manufacturing" means the compounding, blending, extracting, infusing, packaging, label or otherwise making or preparing a cannabis product. n. "Cannabis Product" means cannabis and such products that are intended for use on, or consumption by, an animal. Cannabis products are not considered food as defined in Health and Safety Code Section 109935, a drug as defined in Health and Safety Code Section 109925, or a cosmetic as defined in Health and Safety Code Section 109900. o. "Cannabis Retail Activities" means the retail sale and delivery of cannabis or cannabis products to customers. Delivery of cannabis and cannabis products shall also include the use of a technology platform by a cannabis retailer to conduct the commercial transfer of cannabis and cannabis products.
p. "CEQA" means the California Environmental Quality Act, as set forth in Division 1.3 (Commencing with Section 21000) of the California Public Resources Code, and the CEQA Exhibit 3 2 3
Guidelines as set forth in Title 14 (Commencing with Section 15000) of the California Code of Regulations.
q. "City" means the City of Bell Gardens, a municipal corporation and general law city. r. "City Council" means the City of Bell Gardens City Council. s. "City Development Agreement Procedures" has the meaning set forth in the Recitals, above.
t. "City Manager" means the City Manager of the City of Bell Gardens, or his or her designee(s).
u. "Community Benefits" has the meaning set forth in Section 4.1 of this Agreement. v. "Community Benefits Fund" has the meaning set forth in Section 4.2(c) of this Agreement.
w. "Complaining Party" has the meaning set forth in Section 8.2 of this Agreement. x. "Conditional Use Permit" means a Conditional. Use Permit No. 2023-067 and associated conditions of approval incorporated by reference herein, issued by the City to Developer pertaining to Developer's development of the Project, pursuant to Bell Gardens Municipal Code Chapter 9.20 (Special Uses and Applicable Standards) and Section 9.20.160 (Cannabis Retail - Conditional Use). 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. y. "Cost Recovery Fees" has the meaning set forth in Section 4.3 of this Agreement. z. "CUA" has the meaning set forth in the Recitals, above. aa. "Days" shall mean calendar days unless otherwise noted. If a calendar day falls on Saturday, Sunday, holiday observed by the City or day in which the City is otherwise closed for City business, the final day shall be the next Business Day. bb. "Defaulting Party" has the meaning set forth in Section 8.2 of this Agreement. cc. "Developer" means OTC Bell Gardens, LLC., which shall reflect the owner or owners listed on the application for Business Regulatory Permit, or any transferee who has been assigned the rights, title, duties, obligations and interests of this Agreement pursuant to Section 9.1. dd. "Development Agreement Statute" has the meaning set forth in the Recitals, above. ee. "Development Agreement Procedures" has the same meaning as set forth in the Recitals, above.
ff. "Effective Date" has the meaning set forth in Section 1.7 of this Agreement. gg. "Exhibits" has the meaning set forth in Section 1.3 of this Agreement.
Exhibit 3
hh. "Gross Receipts" means total revenue received or receivable by the Developer or other occupant on the Site from any Commercial Cannabis Activity on the Site or from operation of the Project on the Site, including: all sales; the total amount of compensation received or receivable for the perfoluiance of any act or service, of whatever nature it may be, for which a charge is made or credit whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise; and gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends, or other remunerations, however designated. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:
1. Cash discounts allowed and taken on Commercial Cannabis Activity sale;
2. Credit allowed on property accepted as part of the purchase price on Commercial Cannabis Activity and which property may later be sold, at which time the payment of the credit balance on such property shall be included as "gross receipts";
3. Any tax required by law to be included in or added to the purchase price at time of sale or disposition of any Cannabis or Cannabis Product associated with a Commercial Cannabis Activity and collected from the consumer or purchaser;
4. Such part of the sale price of property returned by purchasers in any Cannabis Retail Activity upon rescission of a contract of sale as is refunded either in cash or by credit;
5. Receipts of refundable deposits in any Cannabis Retail. Activity, except that such deposits when forfeited and taken into income of the business shall not be excluded.
The intent of this definition is to ensure that in calculating the payments required under Article 4 of this Agreement, all sales related to Cannabis Retail Activity or any other Cannabis and Cannabis Products at the Site or through the Project are captured as Gross Receipts. This definition shall therefore be given the broadest possible interpretation consistent with this intent. i. "Project" has the meaning as set forth in the Recitals, above. jj. "Property Owner" has the meaning as set forth in introductory paragraph to this Agreement, above.
kk. "Marijuana" has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.
11. "MAUCRSA" means the Medicinal and Adult -Use Cannabis Regulation and Safety Act, (Bus. and Prof. Code § 26000 et seq.), as may be amended from time to time, and as additionally set forth in the Recitals, above.
mm. "MCRSA" has the meaning set forth in the Recitals, above. nn. "Mortgage" has the meaning set forth in Section 6.1 of this Agreement. oo. "Non -Payment Penalty" has the meaning set forth in Section 4.8 of this Agreement.
Exhibit 3 �6
pp. "Notice of Non -Payment Penalty" has the meaning set forth in Section 4.7 of this Agreement.
qq. "Planning Commission" means the City of Bell Gardens Planning Commission as described in Bell Gardens Municipal Code Chapter 2.24.
rr "Project" has the meaning set forth in the Recitals, above. ss. "Quarterly Report" has the meaning set forth in Section 4.6 of this Agreement. tt. "Site" has the meaning as set forth in the Recitals, above. uu. "Site Plan" means site plan that satisfies the requirements set forth in Bell Gardens Municipal Code Section 9.50.020; floor plans; and elevations, inclusive of proposed signage and facade improvements.
vv. "State Cannabis License(s)" means license(s) to conduct Cannabis Retail Activities issued by a State Licensing Authority to Developer for the Development of the Project on the Site. ww. "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. xx. "Tenn" has the meaning set forth in Section 1.8 of this Agreement.
Section 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.
Section 1.6. Applicability of the Agreement. This Agreement does not: (1) grant height, density, intensity or grant uses of that than is otherwise established in the Bell Gardens Municipal Code and Conditional Use Permit; (2) eliminate the need for Additional City Approvals relating to the Project submitted by Developer after the Effective Date of this Agreement; (3) guarantee that Developer will receive any profits from the Project; (4) prohibit the Project's participation in any benefit assessment district that may be generally applicable to surrounding properties; (5) amend the City's General Plan; or (6) amend the Bell Gardens Municipal Code.
Section 1.7. 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) Thirty (30) days have elapsed since the City ordinance authorizing this Agreement is approved in accordance with state law; (ii) this Agreement has been fully executed by all Parties; and (iii) the evidence of insurance coverage in favor of the City has been provided to the City as set forth in Article 5 of this Agreement.
Section 1.8. Term.
a. The term of this Agreement (the "Term") shall be five (5) years commencing from the Effective Date.
b. This Agreement may be extended upon the conclusion of such initial five-year period for a up to one (1) five-year extension tern', not to exceed a total of ten (10) years, inclusive Exhibit 3
of the initial five-year term. Any extension shall be at the sole and absolute discretion of the City, provided that the Developer submits written notice of its desire to so extend this Agreement no less than one hundred eighty days (180) days before the expiration of the initial five-year period or any following five-year extension teiin. The City Manager shall approve the extension in writing no later than ninety (90) days prior to the expiration of the initial five-year period subject to the following conditions: The Term of this Agreement may only be extended if Developer is in compliance with the terms and conditions of California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals if any, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis License(s) and related rules and regulations at the time the written notice is submitted. Under no circumstances will the City extend the Term of this Agreement if the Developer has been issued written notice of default pursuant to Section 8.2 that has not yet been cured. The City Manager may, in its sole and absolute discretion, approve a term extension of less than five (5) years so long as the total number of years, inclusive of the initial five-year terms and extensions, does not exceed a total of ten (10) years.
c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.
Section 1.9. 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 more than sixty (60) consecutive days;
d. mutual written consent of the Parties;
e. abandonment of Developer's Conditional Use Permit applicable to the Project, or the failure of the Developer to commence operation of the Project on the Site within twelve (12) months following the issuance of a building pezuiit, certificate of occupancy, temporary certificate of occupancy or similar document pursuant to Bell. Gardens Municipal Code Section 5.64.040(K);
revocation of Developer's Conditional Use Permit pursuant to Bell Gardens Municipal Code Section 9.62.010;
g.
revocation of Developer's Business Regulatory Permit for the Project, pursuant to Bell Gardens Municipal Code Sections 5.64.050 and 5.12.100, if not appealed by the Developer;
h. City Council upholding of the revocation of Developer's Business Regulatory Permit for the Project, if an initial revocation finding by the Chief of Police is appealed to the City Council by Developer;
unauthorized assignment of interest of the Developer in the Project or in the Site pursuant to Section 9.1 of this Agreement;
Exhibit 3
j. as set forth in Sections 8.5 and 8.6 of this Agreement; k. upon the occurrence of the entry of a final judgment or issuance of an order of a court with jurisdiction which such judgment or order directs the City to cancel this Agreement, after all appeals have been exhausted, as a result of any lawsuit filed against City to set aside, withdraw or abrogate the approval of the City Council of this Agreement, whereupon such termination, the Parties shall be mutually released from any further liability except as provided in Section 1.12, below.
Section 1.10. Amendment of Agreement. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing and adopted by ordinance pursuant to the same requirement set forth in the Development Agreement Statute.
Section 1.11. Fees. Developer and Property Owner shall be jointly and severally liable for the payment to the City of all Cost Recovery Fees, Community Benefits, penalties and interest, and any other applicable fees when due, including but not limited to development impact fees, payable to the City related to Developer's development and operation of the Project on the Site, and the fees referenced in Article 4 of this Agreement.
Section 1.12. Survival of Certain Terms. The rights and obligations of the Parties which arise under Sections 1.11, 5.4, 5.5, 5.6, 5.7, 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 teiins or nature and context is intended to survive termination of this Agreement, will survive any such te,,,,ination.
Exhibit 3
��8
ARTICLE 2
DEVELOPMENT OF THE PROPERTY
Section 2.1. Right to Develop. During the Term of this Agreement, Developer shall have the right to develop the Project on the Site, consistent with terms and conditions of California Cannabis Laws, this Agreement, the Conditional. Use Permit, Additional City Approvals if any, the Business Regulatory Peuuit, the Bell Gardens Municipal Code, and State Cannabis License(s).
Section 2.2. Permitted Uses and Operational Requirements. During the Term, Developer shall be permitted to develop, construct, and use the Site to carry out the Project, including for Cannabis Retail Activities, consistent with California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals, the Business Regulatory Permit, the Bell. Gardens Municipal Code, and State Cannabis Licenses. Other commercial cannabis activities, including but not limited to Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution are strictly prohibited. Further, subject to any limitations or prohibitions under state law, Developer shall reimburse the City within thirty (30) days following the receipt of a suitable detailed written invoice from the City for any and all of the City's costs related to any emergency services response of the City to the Site (e.g., police and/or fire services) resulting from the Developer's intentional neglect or violation of any Conditional Use Permit Condition or Business Regulatory Permit.
Section 2.3. 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 ("Additional. City Approvals"). 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. City shall comply with CEQA in the administration of all Additional City Approvals.
Section 2.4. Conditional Use Permit. Pursuant to Bell Gardens Municipal Code Chapter 9.20 and Section 9.20.160, Developer has obtained the necessary approvals pending the approval of this Agreement, to engage in Cannabis Retail Activities pertaining to the Project on the Site through the issuance of a Conditional. Use Permit.
Section 2.5. Business Regulatory Permit. Pursuant to Bell Gardens Municipal Code Section 5.64.020(B), Developer shall not engage in Cannabis Retail. Activities at the Site without first obtaining a Business Regulatory Permit in accordance with Section 5.64.030 of the Be11 Gardens Municipal Code.
Section 2.6. State Cannabis Licenses. Pursuant to California Cannabis Laws and Bell Gardens Municipal Code Section 5.64.030(C), Developer shall not engage in the permitted uses set forth above pertaining to the Project on the Site without first obtaining State Cannabis Licenses to conduct Cannabis Retail. Activities on the Site.
Section 2.7. Security Plan. In accordance with the application requirements for a Conditional Use Permit, Developer has submitted a security plan for the operation of a Cannabis Retail facility, as set forth in fuller detail in Exhibit "E." Developer represents that the security plan includes provisions for licensed security guards as required by Section 5.64.040(C) of the Bell Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system.
Exhibit 3
190
a. Video surveillance shall include, at a minimum, all site and facility entrances; all. spaces accessible by the public, including points of sale; cash storage areas; and other areas necessary to protect the safety of employees and the public to ensure that Cannabis and Cannabis Products are received, handled, stored and sold in compliance with California's Cannabis Laws, the Bell Gardens Municipal Code, the Conditional Use Permit and other applicable conditions as may be imposed by the City or any other local or state regulatory authority. b. Third -party security guards shall be properly trained and licensed by the Department of Consumer Affairs. Security may be armed so long as property licensing and insurance requirements are followed and met by the third -party operator providing such security services and such documentation is provided to the City in accordance with Section 9.2.
Section 2.8. Odor Control. The Site shall have ventilation and filtration systems installed that prevent Cannabis odors from exiting the interior of the structure. The ventilation and filtration system shall be approved by the Building Official and installed prior to commencing operations within the allowable structure. Facility air intake, exhaust and recirculating system shall be of industrial grade. Activated charcoal, recirculating, and closed loop aeration systems shall be utilized as necessary for effective odor control and management.
ARTICLE 3
APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
Section 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 approval of the Conditional Use Permit for the operation of the Project at the Site.
Section 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 Conditional Use Permit for the operation of the Project at the Site.
Section 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 that the development project application to the City for such permit was deemed complete by the City.
Section 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 Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. 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 of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party's discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the Exhibit 3
171
state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties 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, the Parties shall 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, pursuant to Section 1.10.
Section 3.5. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the Project, City agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion, that it is not reasonably possible to so address such health and safety emergency, to select that option for addressing the situation which, in City's discretion, minimizes, so far as reasonably possible, the impact on development and use of the Project in accordance with this Agreement, while still addressing such health and safety emergency in a manner acceptable to City.
Section 3.6. Reservation of Authority. Any other provision of this Agreement to the contrary notwithstanding, the development and operation of the Project shall be subject to new or modified ordinances, resolutions, rules, regulations, and official policies which may take effect following the Effective Date related to the following:
a. Cost Recovery 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 compliance with the Conditional Use Permit, Business Regulatory Permit, building and safety -related inspections by the City and financial audits and shall include staff time, legal fees, and consultant fees; b. Procedural regulations related to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and other similar procedural matters; and
c. 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.
Exhibit 3 4�
ARTICLE 4
COMMUNITY BENEFITS, COST RECOVERY, RECORDKEEPING, REPORTING,
AND PROCESSING
Section 4.1. Intent. The Parties acknowledge and agree that this Agreement confers substantial private benefits on the Developer that will place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced with commensurate "Annual Community Benefits Fees" and "Quarterly Community Benefits Fees" for the community (collectively, "Community Benefits").
Section 4.2. Community Benefits Fees. Developer shall be obligated to pay to the City Community Benefits and shall be submitted to the City as described in further detail in this Section
4.2. a. "Quarterly Community Benefits Fees." Within twenty (20) days following the conclusion of each City fiscal year quarter following the City's issuance of a Business Regulatory Permit for the Project, Developer shall pay the City a sum of money which is equivalent to ten percent (10%) of Gross Receipts for the preceding quarter.
b. "Annual Community Benefits Fees." Developer shall make a payment to the City in the amount of One Hundred Thousand Dollars ($100,000) by the Effective Date of this Agreement. Each following calendar year, the Developer shall make an annual payment to the City in the amount of One Hundred Thousand Dollars ($100,000) no later than January 15th of each subsequent calendar year. c. In accordance with the Development Agreement Procedures, no less than eighty percent (80%) of the monetary value of the received Community Benefits shall be deposited into a dedicated account set up by the City ("Community Benefits Fund"). Expenditures from the Community Benefits Fund shall be dedicated to youth and educational programming and resources for the City's housing programs, as detailed below. All projects funded in part or in whole by the Community Benefits Fund shall be subject to City Council approval. . Public benefits for youth and educational programming shall be dedicated to the City's Recreational Department and be utilized for but not limited to youth programming, after -school programs, sports programming, personal enrichment classes or capital improvements on City -owned properties. i. Public benefits for the City's housing programs shall be dedicated toward the Community Development Department and shall be utilized for housing programming and long-range planning, including but not limited to affordable housing, rent stabilization and tenant protection efforts and other planning efforts.
Section 4.3. Cost Recovery Fees. Developer shall be responsible for the processing and monitoring costs related to the Project, including the processing and execution of this Agreement (collectively, "Cost Recovery Fees") as described in this Section 4.3. a. Processing Fees. Processing fees shall include the direct and indirect costs that the City incurs in reviewing, processing and executing the Conditional Use Permit, this Exhibit 3�
Agreement, and Additional City Approvals, including without limitation, staff time, legal fees, and consultant fees.
b. Monitoring Fees. Monitoring fees shall include the direct and indirect costs that the City incurs in inspecting, monitoring, investigating, and conducting compliance and enforcement actions for the purpose of confirming that the Project is in accordance with the terms of this Agreement, conditions of approval associated with the Conditional Use Permit, the operating procedures set forth in Chapter 5.64 of the Be11 Gardens Municipal Code and Business Regulatory Peiiitit, the Bell Gardens Municipal Code, and California Cannabis Laws.
c. Billing and Payment. The City shall submit an invoice to Developer for Cost Recovery Fees on or before the fifth day of each month following the Effective Date of this Agreement if any costs subject to reimbursement are incurred. Owner shall pay the invoice within thirty (30) days of the date of the invoice issuance.
Failure to timely pay Cost Recovery Fees shall be subject to the penalties and interest set forth in Sections 4.7 and 4.8 of this Agreement.
Section 4.4. Statement of Receipts/Audits. Developer shall keep complete, accurate and appropriate books and records of all receipts from operations in accordance with generally accepted accounting principles for a minimum of five (5) years. For purposes herein, "books and records" shall mean all bookkeeping or accounting documents Developer typically utilizes in managing its business operations relating to the Project. Such books and records, as well as all other relevant documents as the City Manager may reasonably require, shall, upon reasonable written notice, be open for inspection by the City, its auditors or other authorized representatives.
If any time during the term such books and records prove inadequate in the reasonable judgement of City to record the Gross Receipts from Project operations as required herein, Developer shall, upon written request by the City, procure and maintain such books and records as shall be the character and from adequate for such purpose. City shall have the right to audit and examine such books, records, and documents at any time upon reasonable request by the City, to the extent necessary for proper detelutination of Gross Receipt from Project operations, and all such books, records, documents, and other items shall be held available for such audit and examination.
Section 4.5. Tax Filings. Developer shall provide City with a courtesy copy of each and every report that Developer is required to provide to the County of Los Angeles and the California Department of Tax and Fee Administration for sales, use, and other tax purposes at the time such filings are made.
Section 4.6. Quarterly Reports. In addition to the recordkeeping requirements set forth in this Agreement, within twenty (20) days following the conclusion of each City fiscal year quarter following the City's issuance of a Business Regulatory Permit for the Project, Developer shall submit a written "Quarterly Report" to the City Community Development Director showing:
a. Gross Receipts for the immediate prior City fiscal quarter received by the Developer; and
b. A calculation of Quarterly Community Benefits Fees due to the City from Developer for the immediate prior City fiscal quarter.
Section 4.7. Non -Payment Penalty. If Developer fails to make a timely payment concerning Community Benefits Fees or Cost Recovery Fees, as required by this Agreement, the Exhibit 3
City may impose a "Non -Payment Penalty." A Non -Payment Penalty of one percent (1%) shall be applied to all past due Community Benefits Fees or Cost Recovery Fees. The City shall deliver to Developer a "Notice of Non -Payment Penalty." Payment of the Non -Payment Penalty shall be in a single installment due on or before a date fifteen (15) days following delivery of the Notice of Non -Payment Penalty.
Section 4.8. Interest on Unpaid Non -Payment Penalty. If Developer fails to timely pay the Non -Payment Penalty after City has delivered the Notice of Non -Payment Penalty, then, in addition to the principal amount of the Non -Payment Penalty, Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on the principal amount of the Non - Payment Penalty, from a date fifteen (15) days following delivery of the Notice of Non -Payment Penalty.
Section 4.9. Recordkeeping. Records for Community Benefits, including payroll records for compliance with Section 4.4, shall be maintained in accordance with California Cannabis Laws. City staff shall have access to such records upon request for monitoring and compliance purposes.
Section 4.10. City Cannabis Tax. Should the City voters enact a tax or taxes applicable to the Developer with regard to it carrying out of Cannabis Retail Activities in the City, the parties shall meet and confer in good faith to amend this Article in light of such tax, pursuant to Section
1.10 of this Agreement.
ARTICLE 5
INSURANCE AND INDEMNIFICATION
Section 5.1. General Liability Insurance. Developer shall maintain comprehensive general liability insurance issued by a California admitted insurance carrier 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.
Section 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.
Section 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 Business Regulatory Petniit 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.
Exhibit 3
Section 5.4. Indemnification. The Developer and Property Owner, jointly and severally, agree 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, Property Owner, or Developer's or Property Owner'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.
Developer and Property Owner agree that they shall be jointly and severally responsible for all costs incurred by the City in the event of a third -party challenge related to such claims, costs, or liabilities.
Section 5.5. Cooperation in Event of Legal Challenge. Developer and Property Owner shall defend and indemnify the City and the City's elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any claim, action, liability, or proceeding that seeks to attack, set aside, void, or annul the Project or any of the proceedings, acts, or determinations taken, done, or made as a result of the City's processing and approval of the Project. Developer and Property Owner's obligation to defend and indemnify the City hereunder shall apply to any lawsuit or challenge alleging failure to comply with the requirements of any federal, state, or local law, including, but not limited to, general plan and zoning requirements and the CEQA. Developer and Property Owner's obligations under this Section 5.5 shall include, but not be limited to, payment of all court costs and attorneys' fees, all litigation -related costs, all costs of judgments and awards against the City, and all settlement costs, which arise out of the City's processing and approval of the Project. The City shall notify the Developer and Property Owner promptly of any claim, action, or proceeding and reasonably cooperate in the defense. Upon receipt of such notification, the Developer and Property Owner shall assume the defense of the claim, action, or proceeding, including the employment of counsel satisfactory to the City, which approval shall not be unreasonably withheld. In the event of a disagreement between the Parties over litigation issues, the City shall have the authority to control. the litigation and make litigation decisions for the City, including, but not limited to, settlement, or other disposition of the matter. If the City reasonably determines that having common counsel would create a conflict of interest between itself and Developer and/or Property Owner, then the City may hire counsel for its own defense, and Developer and Property Owner shall jointly and severally pay the City the reasonable attorneys and costs of such counsel within thirty (30) days after receiving an itemized invoice from the City. Developer and Property Owner shall further pay for all costs and fees related to any additional investigation or study, or for supplementing or revising any document, including, without limitation, environmental documents for the Project.
Section 5.6. Failure to Indemnify. The failure of Developer or Property Owner to indemnify the City, as required by this Agreement, shall constitute a material breach of this Agreement and of any applicable Conditional Use Permit, Business Regulatory Peuuit, and Additional City Approvals, which shall entitle the City to all remedies available under law, including, but not limited to, specific perfolinance 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 or Property Owner'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, Business Regulatory Peuuit, and Additional City Approvals, or City's failure to defend Exhibit 36
any claim, action, or proceeding based upon Developer or Property Owner's failure to indemnify the City.
Section 5.7. 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 and Property Owner hereby waive all claims for damages against City for breach of this Agreement. The Developer and Property Owner further acknowledge that under the Development Agreement Statute, land use 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 and Property Owner therefore waive all claims for damages against City in the event that this Agreement or any Project approval is: (1) not recommended for approval or approved by the Planning Commission, City Council (as the case may be); or (2) is approved by the City Council, but with new changes, amendments, conditions, or deletions to which Developer and/or Property Owner is opposed. Developer further acknowledges that, as an instrument which must be approved by ordinance, this 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 and Property Owner waive all claims for damages against City in this regard.
Section 5.8. Initiative Measures/Moratoria. The Parties intend this Agreement to be a legally binding contract which shall be exempt from any initiative measure or land use moratorium affecting the consideration and approval of parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use approved, issued or granted within the City. This Agreement shall apply to the Project to the extent such initiative measure or municipal moratorium or other limitation is inconsistent or in conflict with this Agreement. Should an initiative measure or moratorium or other limitation be enacted by the citizens of City which would preclude construction of all or any part of the Project, and to the extent such initiative, measure, moratorium, referendum, statute, ordinance, or other limitation be determined by a court of competent jurisdiction to invalidate or prevail over all or any part of this Agreement, neither Developer nor Property Owner shall have recourse against City pursuant to this Agreement for damages. The foregoing shall not be deemed to limit right of Developer or Property Owner to appeal any such determination that such initiative measure, moratorium, or other limitation invalidates or prevails over all or any part of this Agreement. The City agrees to cooperate with Developer or Property Owner in all reasonable manners in order to keep this Agreement in full force and effect, provided that Developer or Property Owner shall, jointly and severally, be obligated to reimburse the City for its actual and reasonable expenses incurred directly in connection with such cooperation and the City shall not be obligated to institute a lawsuit or other court proceedings in such cooperation.
Section 5.9. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy.
ARTICLE 6
MORTGAGEE PROTECTION
Section 6.1. Mortgagee Protection. This Agreement, once executed and recorded, shall be superior and senior to any lien placed upon the Site and any portion thereof following recordation 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.
Exhibit 3
ARTICLE 7
ANNUAL REVIEW
Section 7.1. Annual Review. During the Term of this Agreement, the City shall annually review Developer's good faith compliance with this Agreement. This periodic review shall be limited in scope to good faith compliance with the provisions of this Agreement, Conditional Use Permit and its associated conditions of approval, Business Regulatory Permit, California Cannabis Laws, the Bell Gardens Municipal Code and related statues and regulations.
Developer shall bear the burden of demonstrating good faith compliance with the foregoing requirements.
Section 7.2. Timing of Annual Review. No later than thirty (30) days prior to the yearly anniversary of the Effective Date of this Agreement, Developer shall submit to the Community Development Director evidence of compliance pursuant to Section 7.1 above. The City reserves the right to request additional information necessary to demonstrate Developer's good faith compliance. The Community Development Director or his or her designee shall report to the Planning Commission its determination of compliance through the submission of a staff report with a determination as to the Developer's compliance, to be considered at a future Planning Commission hearing. If the Community Development Director determines that Developer is in Default pursuant to Section 8.1, the City shall follow the procedures provided pursuant to Article
8. Section 7.3. Staff Reports. To the extent practical, the City shall deliver to the Developer a copy of all staff reports and related exhibits concerning the Developer's performance under the Agreement within three (3) Business Days preceding Planning Commission review.
Section 7.4. Fee for Annual Review. The reasonable cost for the City's annual review of this Agreement shall be paid by Developer, not to exceed the actual costs incurred by the City in connection with such review, inclusive of those costs incurred by consultants and legal fees as a part of Cost Recovery Fees. The Developer shall pay such costs to the City within thirty (30) days following the receipt of a written invoice from the City.
ARTICLE 8
DEFAULT, REMEDIES, AND ESTOPPEL CERTIFICATES
Section 8.1. Default. 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.
Section 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.
Section 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 non -monetary defaults, if the default cannot be reasonably cured within such time, the default shall be deemed cured if:
Exhibit 3
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 ten (10) 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.
However, in the case of a monetary default (e.g., failure to make the payments to the City of fees or other costs required under this Agreement), any such default must be cured by the payment of the amount demanded within such thirty (30) day period.
Section 8.4. Failure to Cure Default Procedures. If after the cure period has elapsed, the City Manager finds and determines that Developer remains in default and that the City intends to teliuinate or modify this Agreement, the Community Development Director shall make a report to the Planning Commission and then set a public hearing in accordance with the local and state notice and hearing requirements. If after public hearing, the Planning Commission finds and determines, on the basis of substantial evidence that Developer remains in default and that the City intends to telniinate or modify this Agreement, the Developer shall be entitled to appeal that to the City Council.
Section 8.5. Appeals to City Council. If Developer wishes to appeal the Planning Commission's determination pursuant to Section 8.4, such appeal shall be taken within fourteen (14) days after notice of the determination is effectuated pursuant to Section 9.2 of this Agreement.
The City Council shall act upon the Planning Commission's determination within sixty (60) days of the appeal. The failure by City Council to act within this prescribed time period shall not be deemed to be a denial or approval of the appeal and shall remain pending until final. City Council. action.
Section 8.6. 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 performance, modification or termination of this Agreement without further or separate notice to the Defaulting Party.
Section 8.7. 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 teiiliinated and is enforceable in accordance with its teliiis 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. City shall provide Developer with a written invoice of such costs to be paid by Developer within thirty (30) days of issuance.
Exhibit 3
lie
ARTICLE 9
ADDITIONAL GENERAL/MISCELLANEOUS PROVISIONS
Section 9.1. Assignment.
a. City Council Approval Recuired. Developer shall not have the right to sell, assign, or transfer all or any part of its rights, title, duties, obligations, and interests in all or a portion of Site, or Project, subject to or a part of this Agreement, to any individual, film, corporation, partnership, or entity during the Teirii of this Agreement without the advance approval by the City Council through a majority vote. This assignment prohibition also applies to the corporate and business entities of Developer that are a Party to this Agreement. Developer shall initiate a request for the sale, assignment, or transfer of the rights, title, duties, obligations and interests in the Site or Project that is part of this Agreement by submitting a written request to the City Manager. The proposed transferee must provide evidence and any other documents required by the City to evidence compliance with California Cannabis Laws, the Be11 Gardens Municipal Code and their related statutes and regulations and any other information deemed necessary to effectuate the transfer. b. Escrow Account. When making a written request to City Manager for the assignment of rights pursuant to this Agreement, Developer shall open an escrow account and deposit an amount of five thousand dollars ($5000) into the escrow account. If the direct and indirect costs of staff time, consultant fees, legal fees and other costs exceed the deposited amount prior to a City Council vote pursuant to subsection (a) above, the City reserves the right to require Developer to deposit an additional five thousand dollars ($5000) into the escrow account to cover direct and indirect costs. Any unused fees remaining in the escrow account following the City Council vote shall be returned to Developer no later than thirty (30) days after the City Council action.
c. Renegotiation of Community Benefits. The City reserves the right to renegotiate Community Benefits with the proposed transferee pursuant to Article 4. d. Effectuation of Assignment. Any sale, assignment, or transfer of the rights, obligations, or interests in this Agreement shall only be effective upon the issuance of a Business Regulatory Permit to the party to whom such sale, assignment, or transfer is made as required by Chapter 5.12 and Section 5.64.020 of the Bell Gardens Municipal Code. Any assignment or transfer prohibited by this Agreement will be considered an immediate material breach of this Agreement and City may elect to immediately terminate this Agreement.
e. Assumption of Obligations. Upon the effectuation of an assignment pursuant to subsection (d) above, the transferee shall expressly and unconditionally assume all. rights and obligations of the Developer pursuant to this Agreement.
Section 9.2. Notices. A11 notices peuiritted or required under this Agreement shall be given to the respective Parties must be in writing and may be given personally, by registered or certified mail (return receipt requested), Federal Express, UPS or other similar couriers. If notice is personally delivered, the notice shall be deemed to have been given and received on the date notice was given. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received three (3) days after the notice is deposited in the United Exhibit 3
States mail. If notice is given by Federal. Express, UPS, or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on the receipt issued by the courier. Notice shall be provided to the following addresses:
DEVELOPER:
OTC Bell Gardens, LLC
23 Corporate Plaza Drive, #150
Newport Beach, CA 92660
Attn: Norman Yousif
(949) 291-0587
[email protected]
PROPERTY OWNER:
Kim Dae Ho & Hye Yeong
5201 E. 28th Street
Long Beach, CA 90815
(562) 519-1079
[email protected]
CITY:
City of Bell Gardens
7100 Garfield Ave.
Bell Gardens, California 90201
Attn: Michael B. O'Kelly, City Manager
(562) 806-7702
[email protected]
CITY ATTORNEY:
Olivarez Madruga Law Organization, LLP
500 South Grand Ave, 12th Floor
Los Angeles, CA 90071
Attn: Stephanie Vasquez
(213)-744-0099
[email protected]
Section 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 Los Angeles 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 Los Angeles, California.
Section 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 teiui 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 teiuis 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 perfoiin 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.
Section 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.
Exhibit 3
�8m
Section 9.6. Joint and Several Liability. Developer and Property Owner shall be jointly and severally liable for all obligations imposed on either or both under this Agreement, including but not limited to any amount due under this Agreement pursuant to Section 1.11.
Developer and Property Owner agree that the City may impose a lien and seek foreclosure on any parcel of the Site due to any default by Developer. Such consent is additionally set forth in Exhibit "D" to this Agreement.
Section 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 telui, 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.
Section 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.
Section 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.
Section 9.10. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory. "May" or "can" are peilliissive.
Section 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.
Section 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.
Section 9.13. Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.
Section 9.14. Advice of Legal Counsel. Each. Party acknowledges that it has had an opportunity to review this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.
Section 9.15. No Third -Party Beneficiaries. This Agreement and all provisions hereof are made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have a right of action based upon any provision in this Agreement.
Exhibit 3�
Section 9.16. Public Agency Coordination. The Parties shall cooperate and use reasonable efforts in coordinating the implementation of the Project with other public agencies, if any, having jurisdiction over the Site or the Project.
Section 9.17. Restrictions. Property Owner shall place in any agreements to sell or convey any interest in the Site or any portion thereof, a provision making the terms of this Agreement binding on any successors in interest of Property Owner.
Section 9.18. 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 by a Party to enforce or interpret provisions of this Agreement, the prevailing Party in such action shall be entitled to recover its reasonable attorneys' 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.
Section 9.19. Environmental Remediation and Testing. The Parties acknowledge that various environmental remediation and testing activities may be required on the Site and on lands adjacent to the Site. The Parties shall consult with responsible public agencies, as appropriate, in connection with such environmental remediation and testing activities. Developer and Property Owner shall ensure that the development or operation of the Project shall not unreasonably interfere with any such remediation and testing activities.
Section 9.20. 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.
Section 9.21. Recordation of Development Agreement. The City Clerk shall cause a copy of this Agreement to be recorded against title of the Site in accordance with state law. [SIGNATURES APPEAR ON THE FOLLOWING PAGE]
Exhibit 3
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as evidenced by the signatures of the authorized officers of each of them which appear below.
CITY DEVELOPER
City of Bell Gardens, a municipal Mr. Nice Guy Be11 Gardens, LLC corporation [Notarized Signature Required]
By:
Michael B. O'Kelly
Bell Gardens City Manager
Date:
Approved as to Form
By:
Stephanie Vasquez
City Attorney
Date:
By:
Name:
Title:
Date:
PROPERTY OWNER
Patrick Martin & Zhirayr Khoshoryan
[Notarized Signature Required]
By:
Name:
Title:
Date:
Exhibit 3
EXHIBIT "A"
LEGAL DESCRIPTION OF SITE
Exhibit 3
195
EXHIBIT "B"
SITE PLAN
Exhibit 36
EXHIBIT "C"
FLOOR PLAN
Exhibit 3
EXHIBIT "D"
PROPERTY OWNER'S CONSENT AGREEMENT
Exhibit 3
EXHIBIT "E"
SECURITY PLAN
Exhibit 3
i@8
- No Cannabis Retail within
1500'
- Marlow Park 1336' ft away
- Codela Preschool 1336' ft away
- No Sensitive Uses within 500'
- No Sensitive Uses within 600'
Cannabis Map
500/600/1500
5605 Gage Ave
Bell Gardens
APNs 6328-003-034 & 35
Prepared 8/10/2023
by Express Mapping N
1 inch = 500 feet
xhibit 6
NOTICE OF PUBLIC HEARING
CONSIDERATION OF ORDINANCE NO. 941 TO AUTHORIZE A DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF BELL GARDENS, OTC BELL
GARDENS, LLC AND KIM DAE HO AND HYE YEONG RELATING TO THE PROPERTY LOCATED AT 5605 GAGE AVENUE IN THE CITY OF BELL GARDENS.
NOTICE IS HEREBY GIVEN, the City of Bell Gardens City Council will conduct a public hearing to consider the adoption of Ordinance No. 941 to authorize the City of Bell Gardens to enter into and execute a Development Agreement (DA) with OTC BeII Gardens, LLC and Kim Dae Ho and Hye Yeong relating to the property located at 5605 Gage Avenue, BeII Gardens, CA 90201. Copies of the proposed ordinance are available for review at Bell Gardens City Hall and on our website at https://www.bellgardens.org/governmentfcity-departments/public-notifications .
DATE OF HEARING: Monday, May 13, 2024
TIME OF HEARING: 6:00 P.M., or as soon thereafter as possible.
ENVIRONMENTAL DETERMINATIONS: Ordinance No. 941 has been determined to be exempt from the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) pursuant to CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities).
INVITATION TO BE HEARD/PUBLIC PARTICIPATION: The public hearing will be held before the City of BeII Gardens City Council at 7100 Garfield Avenue, Bell Gardens, CA 90201 on Monday, May 13, 2024, at 6:00 p.m. The public may attend the meeting in person or may view the meeting online. The meeting will be recorded and live streamed on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council- meetings. Public comments for the public hearing are limited to three (3) minutes per person. Members of the public can access and participate in the meetings as follows:
IN -PERSON: Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chamber will have seating available for members of the public to attend the meeting in -person, subject to capacity limits. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker unless a different time is announced by the presiding chair. Speakers who wish to address the City Council should do so by submitting a "Public Comment Card" card by 6:00 p.m. for all other designated public comment periods as listed.
BY TELEPHONE: Phone Number: (669) 900-9128, Webinar ID: 813 3236 4343#, Passcode: 2021#, to address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.
VIRTUALLY LIVE: Members of the public may participate via Zoom at https://zoom.us/join and entering the Zoom Meeting ID: 813 3236 4343 Passcode:
2021. Comments may also be made via the Zoom app by using the "Raise Hand" feature, when it is your turn to speak the host will unmute you. Comments will not be accepted in Exhibit 3 200
the QandA Chat function of the zoom app.
WRITTEN COMMENTS: Public comments may be emailed to
PublicComments@bellgardens,org or mailed to the City Clerk's Office, 7100 Garfield Ave., Bell Gardens CA 90201. To ensure distribution to the members of the City Council prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the City Council and will be part of the official public record of this meeting.
Any person who requires a disability -related modification or accommodation, in order to observe and/or offer public comment may request such service by contacting the City Clerk's Office no later than 72 hours before the scheduled meeting.
The City Council staff report will be available in the City Clerk's Office and posted on the City's website at https:// .bellgardens.org/i-want-to/view-agendas 72 -hours prior to the meeting.
For more information, you may contact the City Clerk's Office located at 7100 Garfield Avenue, BeII Gardens, CA 90201 during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704 or via email to [email protected].
Daisy Gomez
City Clerk
Posted: May 2, 2024
Bell Gardens City Hall
BeII Gardens John Anson Ford Park
Bell Gardens Veterans Park - Ross Hall Auditorium
BeII Gardens Department of Public Works
Daily Journal Corporation (Bell Gardens Newspaper) — General Circulation Exhibit 3 202
RESOLUTION #PC 2024-04
RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF BELL GARDENS APPROVING
CONDITIONAL USE PERMIT NO. 2023-67
WHEREAS, Sean Maddocks, representing Norman Yousif of OTC Bell Gardens, LLC (Applicant), has requested approval of a conditional use permit (CUP) and a development agreement (DA) to develop and operate a storefront cannabis retail business in the City of Bell Gardens (City);
WHEREAS, CUP and DA No. 2023-067 propose tenant improvements to an existing 6,064 square -foot (SF) commercial building located at 5605 Gage Avenue (Subject Site) into two commercial suites, with one approximately 2,486 SF suite occupied by the Applicant for a proposed cannabis retail use and an approximately 3,578 SF suite to accommodate redevelopment of the existing Mega Mart grocery store tenant or another commercial use and Ordinance No. 941 to approve a development agreement (DA) authorizing a cannabis retail use, subject to conditions of approval inclusive of the execution of the DA ordinance (Project) by and between OTC Bell Gardens, LLC and the City of Bell Gardens (City) at the Subject Site;
WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months unless an applicant executes a DA with the City;
WHEREAS, the Subject Site is designated as Mixed Use (Commercial/Residential) (MU) in the City's General Plan Land Use Element;
WHEREAS, the MU Land Use designation has been concentrated on parts of Gage Avenue and Eastern Avenue and refers to a combination of commercial and residential uses working in tandem;
WHEREAS, the corresponding zone for the MU Land Use Element designation is the Mixed -Use Commercial/Residential (M -U) Zone, which conditionally permits a cannabis use, subject to certain siting requirements and development standards and the Subject Site is currently located within Zone M -U;
WHEREAS, the intent and purpose of Bell Gardens Municipal Code (BGMC) Chapter 9.20 is to provide "supplementary previsions for uses which the city finds require special attention due to their sensitive nature and potential impacts to the community[;]" WHEREAS, the Applicant requested, pursuant to BGMC Chapter 9.50, the Planning Commission to approve a CUP for a cannabis retail use with conditions which are deemed necessary to ensure the proposed use will not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare, or be materially detrimental to the property of other persons located in the vicinity of such conditional use;
WHEREAS, in conjunction with the CUP, the Applicant has requested a Exhibit 4 273
Resolution #PC 2024-04
development agreement to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5) year term in exchange for public benefits;
WHEREAS, the approval of CUP No. 2023-067 would promote the public health, safety, and general welfare because it would facilitate the orderly development of the Subject Site, create a physical environment that would be consistent with and complement the City's goals and visions since new construction would comply with BGMC provisions for building, energy efficiency, and development standards; protect natural resources from adverse impacts because vegetation installed would be drought tolerant and found by an arborist to likely thrive at the Subject Site; improve, upgrade, and create additional community facilities and infrastructure, enhance services and assist in implementing the goals of the General Plan since the proposed development would comply with low impact development guidelines to manage stormwater runoff in a way that mitigates the impacts of pollution to rivers, lakes, streams and the ocean; and reduce the economic risk to the surrounding community since a development agreement would establish certain development rights on real property in exchange for public benefits to the City; WHEREAS, Policy No. 3 of the General Plan Land Use Element provides that the City shall promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of the commercial areas in the City;
WHEREAS, the Project is consistent with Policy No. 3 because the Project would result in two commercial uses at the Subject Site thereby emphasizing the commercial identity of the commercial areas in the City;
WHEREAS, Policy No. 4 of the General Plan's Land Use Element asserts that the City shall encourage private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements; WHEREAS, the approval of the CUP in conjunction with a DA authorizing the Project shall ensure a long-term commercial conditional use of the Subject Site for a period of up to 10 years and would be required to comply with all applicable state and local environmental requirements and is therefore consistent with Policy No. 4; WHEREAS, Policy No. 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;
WHEREAS, the Project is also consistent with Policy No. 5 because it proposes to employ locally and add potential stability to the area through increased property values associated with new construction and the conduct of well -run businesses could impact other businesses for increased area economic viability; WHEREAS, the approval of CUP No. 2023-067 would not jeopardize, adversely Exhibit 4 274
Resolution #PC 2024-04
affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare of the community because the Project would revitalize and reinforce the security to an existing commercial development which has been the source of several complaints of transient and homeless activity throughout the years;
WHEREAS, the Subject Site meets the siting requirements including the areas that prohibit a cannabis retail use pursuant to Section 9.20.160 of the BGMC, inclusive of the 600 -foot distancing requirement of day care centers, youth centers, schools, and parks and 500 -foot distancing requirement from any other cannabis uses; WHEREAS, the Applicant has provided a Lighting Plan, Odor Mitigation Plan, and Security Plan (incorporated herein by reference) that aim at providing safe and secure environment for both customers and the surroundings, and that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, the Subject Site is approximately 21,379 square feet, rectangular in shape, and is currently developed with a 6,064 square foot commercial building and is therefore adequate in size, shape, and topography to accommodate the development features prescribed in Title 9 of the BGMC to support the proposed business; WHEREAS, the Subject Site is located on Gage Avenue, which is one of the commercial corridors in the City and designated as a secondary highway in the 2022 Transportation and Circulation Element, as a part of the City's General Plan; WHEREAS, Gage Avenue is designated as a collector street and designed to move traffic from collectors to boulevards and keep through traffic off of residential, local streets; WHEREAS, the introduction of a cannabis retail use in an already -developed commercial corridor that operates similarly to other retail operations is unlikely to result in a substantial increase in traffic volumes pedestrian traffic; WHEREAS, the Subject Site is adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection;
WHEREAS, Applicant and Developer propose to address concerns relating to safety, odor, and nuisance with lighting, odor mitigation, and security plans that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, 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. (Development Agreement Statute), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights on real Exhibit 4 275
Resolution #PC 2024-04
property in exchange for public benefits;
WHEREAS, consistent with the requirements of the Development Agreement Statute, the City adopted Resolution 2023-043 ("Development Agreement Procedures") authorizing the use and establishing the procedures and requirements for the consideration of development agreements within the City for a cannabis retail use; WHEREAS, the Project would repurpose an existing building on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements, it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would not cause a direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities);
WHEREAS, pursuant to California Government Code Sections 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter;
WHEREAS, on February 21, 2024, the Planning Commission held a public hearing and considered public comments, reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 approving a development agreement;
WHEREAS, after deliberations, the Planning Commission requested that staff prepare a report addressing issues related to the proposed public benefits and comparison to the taxes and revenues in other neighboring cities, and continued the item until the next regularly scheduled Planning Commission meeting on March 20, 2024; WHEREAS, on March 20, the Planning Commission was unable to convene a meeting due to lack of quorum, therefore continuing the item to the next regularly scheduled Planning Commission meeting on April 17, 2024;
WHEREAS, on April 17, 2024, the Planning Commission reopened the public hearing for the item and considered public comments, reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-067 and Ordinance No. 941 approving a development agreement to permit the use for up to 10 years in exchange for public benefits;
WHEREAS, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to CUP No. 2023-067 to permit a cannabis retail use at the Subject Site; and
Exhibit 4 276
Resolution #PC 2024-04
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2024-04, conditionally approving CUP No. 2023-067 subject to the adoption of Ordinance No. 941 authorizing execution of DA No. 2023-067.
NOW, THEREFORE, THE PLANNING COMMISSION DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated in full, herein.
SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2023-067:
i. Is not in conflict with the General Plan for the area and complies with the standards in Title 9 of the Bell Gardens Municipal Code. ii. Does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare. iii. The Subject Site for the proposed conditional use is adequate in size, shape, and topography to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in BGMC Title 9, as required by the Planning Commission as a condition of approval in order to integrate said use with the existing uses in the neighborhood. iv. The Subject Site for the proposed conditional use is served by highways or streets adequate in width and improved as necessary to carry the kind and quantity of traffic such use would generate.
v. The Subject Site is served by the required utilities, including electricity and water supply of quantities and pressures required by the fire code to provide adequate protection.
SECTION 3. In accordance with CEQA and the CEQA Guidelines, CUP No. 2023- 067 is categorically exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities).
SECTION 4. The Planning Commission hereby grants the Applicant's request related to CUP No. 2023-067 to permit the Project at the Subject Site, subject to the following conditions incorporated herein in full, by reference (Exhibit "A").
SECTION 5. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
SECTION 6. This CUP shall become effective upon the expiration of the 15 Exhibit 4 277
Resolution #PC 2024-04
calendar days after approval by the Planning Commission unless an appeal of the CUP has been filed with the City Clerk pursuant to Section 9.50.090 of the BGMC.
PASSED, APPROVED AND ADOPTED this 17th day of April 2024.
LA'I 'OSA, CHAIRPERSON
ATTEST:
ERI GUTIERREZ, PLANNING RETARY
APPROVED AS TO FORM:
LLOYD PILCHEN, ASSISTANT CITY ATTORNEY
Exhibit 4 278
Resolution #PC 2024-04
EXHIBIT "A"
CUP NO. 2023-067 — CONDITIONS OF APPROVAL
General OPeratin. Conditions
1. The Subject Site shall be improved, maintained, and operated in accordance with:
a. The application on file in the Community Development Department and Exhibits 1 through 14 included in the staff report which are attached and incorporated herein by this reference.
b. All applicable laws, including but not limited to, the BGMC, the Bell Gardens Zoning Ordinance, the Business and Professions Code, Los Angeles County Department of Public Health, and the California Department of Cannabis Control (DCC).
c. All the conditions of approval as set forth in this Planning Commission Resolution for CUP No. 2023-067.
d. The terms and conditions set forth in DA No. 2023-067.
2. All conditions stated herein shall be binding upon the Applicant, their successors -in - interest, and assigns; shall run with the land; shall limit and control the issuance and validity of certificates of occupancy, and shall restrict and limit the construction, location, and conditional use and maintenance of all land and structures adjacent to or within the vicinity of the Subject Site. Failure to adhere to these conditions of approval may result in revocation pursuant to the process set forth in Section 9.62.010 of the BGMC.
The conditions herein shall run with the land. However, any successor -in -interest must obtain the proper approvals to assign or transfer the rights, interests, and obligations pursuant to the DA No. 2023-067 in order to effectuate the rights and obligations set forth in this CUP and obtain a business regulatory permit pursuant to BGMC Chapter
5.12 and Chapter 5.64.
3. CUP No. 2023-067 shall be valid strictly for a state DCC Type 10 license as defined by the DCC . Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent sign off from the Building and Safety Division for the Subject Site, the Applicant shall submit a copy of its business regulatory permit and Type 10 license as approved by DCC to the City of Bell Gardens Community Development Department. Cannabis cultivation, cannabis manufacturing, cannabis laboratory testing, and cannabis distribution are strictly prohibited and shall constitute grounds for revocation and termination of all rights hereunder.
All rights hereunder shall terminate within eighteen (18) months from the date of Exhibit 4 279
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issuance of the first building permit for the Subject Site after the approval of CUP No. 2023-067 unless DA No. 2023-067 is approved for a longer period of time, not to exceed ten (10) years. For the purposes of this condition, "building permit" shall have the same definition as BGMC Section 9.20.160(D).
CUP No. 2023-067 shall be valid strictly in compliance with DA No. 2023-067; any privileges granted hereunder shall become null and void should there be a violation hereof.
4. The abandonment or non -implementation of the conditions stated in this CUP No. 2023-067 for a period of one (1) year from the effective date of the CUP shall terminate the CUP, and any privileges granted there under shall become null and void; unless a written time extension for a period not to exceed one (1) year is granted by the Planning Commission. A written request to extend the time to comply with the conditions of approval stated in the CUP must be submitted to the Bell Gardens Community Development Department at least thirty (30) days prior to the expiration of the one (1) -year period.
5. Consistent with Condition No. 2, in the event of a transfer of ownership, rights, interests, obligations and/or privileges of the Subject Site involved with this CUP No. 2023-067, the transferee shall be fully informed and consent to the conditional use and development of Subject Site as set forth by this CUP together with all conditions, which are stated herein.
6. The Applicant shall comply with all applicable City, county, DCC, and other state regulations as they pertain to the sale of cannabis. Violation of any of the conditions of CUP No. 2023-067 or of any city, county and/or state law or regulation pertaining to the sale of cannabis shall be cause for revocation and termination of all rights hereunder.
7. The Applicant shall obtain all necessary permits and licenses from the state, City, and county agencies, including but not limited to, Fire Department and Industrial Waste for the proposed improvements and business operations on the Subject Site.
8. Prior to issuance of a building permit, the Applicant shall submit payment for the Bell Gardens Development Impact Fee(s) pursuant to BGMC Chapter 3.27.
9. Prior to issuance of a building permit, the Applicant shall submit design or payment for the Bell Gardens Art in Public Places pursuant to BGMC Chapter 9.71.
10. City staff, including but not limited to, the City Manager, Community Development Department, Bell Gardens Police Department, Los Angeles County Fire Department, and DCC shall have the right -of -entry at any time to inspect the Subject Site to verify compliance with these conditions of approval, terms set forth in DA No. 2023-067, and the BGMC, including but not limited to the operating requirements set forth in Section
5.64.040 and all state and county laws and regulations.
Exhibit 4 280
Resolution #PC 2024-04
11. Prior to commencing operations, owner/operator must possess a valid retail license, issued by the Department of Cannabis Control, pursuant to Division 10, commencing with Section 26000, of the California Business and Professions Code.
12. Prior to commencing operations, the owner/operator must obtain a business regulatory permit pursuant to BGMC Chapter 5.12 and Chapter 5.64. Consistent with the requirements Section 5.64.020 of the BGMC, the owner/operator shall commence operations within one (1) year of issuance of a business regulatory permit. Failure to commence operations within one (1) year of the issuance of a business regulatory permit shall constitute grounds for revocation and termination of all rights hereunder.
13. The Director of Community Development and/or their designee(s) shall be authorized to make minor modifications to this CUP No. 2023-067 or any of the conditions specified herein if the modifications shall achieve substantially the same results as would strict compliance with the approved conditional use permit and conditions.
14. The Subject Site shall be developed, maintained, and used in a neat, quiet, and orderly condition and all uses on the Subject Site shall be operated in a manner that shall not disturb or be detrimental to adjacent properties, surrounding land uses, or occupants.
15. Hours and days of exterior building construction and site improvements shall be as follows: Monday through Saturday, not before 8:00 A.M. and not after 7:00 P.M. on the same day. No construction or grading shall take place on Sundays and City observed holidays.
16. The Applicant shall ensure that the Subject Site is properly maintained, secured, and free of debris at all times/phases of construction.
17. Prior to commencing the construction of the Project, the Applicant shall submit a site plan indicating on -Subject Site vehicular and pedestrian traffic circulation during all stages of construction to the Community Development Department for review and approval.
18. The Subject Site and surrounding area shall be maintained in a manner free of graffiti. Any graffiti that should appear on buildings, walls, or other private property on the Subject Site shall be removed within forty-eight (48) hours of being observed or reported. If painting is required, the paint shall be identical to the existing color.
19. During operations, the Subject Site and adjacent public rights -of -way (ROW), inclusive of the alley adjacent north of the Subject Site, shall be maintained in a clean and well - kept condition, free of debris and litter at all times.
20. The Subject Site's landscaping areas shall be fully planted pursuant to the approved landscape plan and always maintained (free from debris, litter, and wilted or dead Exhibit 4 281
Resolution #PC 2024-04
live scape removed and replaced) for the life of the permit.
21. The Applicant and/or their designee shall ensure that any existing public telephones located on the premises be removed from the Subject Site. The installation of any outside public telephone shall be prohibited on the Subject Site and the public ROW.
22. The hours of operation at the Subject Site shall be restricted as follows: 10:00 a.m. until 10:00 p.m. Monday through Sundays, with the last delivery order to be placed by 9:00 p.m. and all delivery vehicles returned no later than 10:00 p.m.
23. The installation of signs on the Subject Site shall be in accordance with the provisions in BGMC Chapter 9.48. The Applicant shall obtain approval from the Community Development Department in this conditional use permit site plan update and a building permit for the installation of any signs on the property shall be obtained prior to the installation. Temporary signs, such as banners, pennants and flags shall be prohibited, except for any traffic/safety signs specific to construction activity.
24. Signs prohibiting loitering, smoking, and vaping on or around the Subject Site shall be posted and maintained to the satisfaction of the Bell Gardens Police Department prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
25. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the Applicant shall work closely with the BeII Gardens Police Department in updating the Security Plan (Exhibit 10) to guarantee adequate security measures are provided on the Subject Site, inclusive of the surface parking lot, at all times.
26. There shall be no outdoor storage permitted on the Subject Site at any time.
Cannabis Retail — Conditional Use Operating Conditions
27. These conditions of approval must be posted in a conspicuous location for public viewing within the establishment on a continuous basis for the life of the Project beginning on the date that operations at the Subject Site commence.
28. The establishment shall only allow patrons of the age twenty-one (21) and older, with presentation of a valid government -issued identification card.
29. No persons under the age of twenty-one (21) shall be employed to sell cannabis or cannabis products at the Subject Site.
30. An electronic age verification device shall be purchased and retained at the Subject Site to determine the age of any individual and shall be installed at each point -of -sale location prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
Exhibit 4 282
Resolution #PC 2024-04
31. The electronic age verification device shall be maintained in operational condition at all times, at each point -of -sale location, and all employees shall be instructed in its use. If an age verification device fails to operate at any point -of -sale location, no sales shall take place at that point -of -sale location until the age verification device is repaired and operational.
32. Owner/operator shall abide by all laws applicable to cannabis retailers pursuant to the Medicinal and Adult -Use Cannabis Regulation and Safety Act (Bus. & Prof. Code § 26000 et seg.) and related Medicinal and Adult -Use Commercial Cannabis Regulations (Cal. Code Regs., tit. 4, § 15000 et seq.).
33. Signs advertising cannabis brands or the availability of cannabis or cannabis products for sale at the Subject Site shall not be visible from the exterior of the building at all times.
34. The display of cannabis and cannabis products shall be interior only (no outdoor display) at all times.
35. Other than limited amounts of cannabis used for interior display purposes or immediate sale, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss at all times.
36. There shall be no food, beverage, video or pinball games, televisions, or similar loitering attractions accessible to customers, persons engaged in sales or any transactions, and/or patrons, on the Subject Site at all times.
37. There shall be no samples provided for the on -site consumption of cannabis and cannabis products at any time.
38. There shall be no sale or display of cannabis products that is in the form of an alcoholic beverage, including, but not limited to, an infusion of cannabis or cannabinoids derived from industrial hemp into an alcoholic beverage at any time.
39. There shall be no sale of cannabis and cannabis products over the daily legal limit to any single patron at any time, pursuant to California Health and Safety Code Section 11357.
40. All cannabis and cannabis products purchased by patrons shall not leave the Subject Site unless they are placed in an opaque packaging at any times.
41. Consumption of cannabis and cannabis products on -site is strictly prohibited, outside of the building either on the public ROW or anywhere on the Subject Site at all times.
42. Pursuant to Califomia Labor Code Section 6404.5(c), smoking in the facility shall be Exhibit 4 283
Resolution #PC 2024-04
strictly prohibited at all times. There shall be no display of ashtrays, or other receptacles for the purpose of collecting smoke -related debris within the interior or exterior of the building at the Subject Site.
43. Cover charges, entry fees, or minimum purchases for patrons visiting the facility shall be strictly prohibited.
44. The authorized conditional use shall be conducted at all times with due regard for the character of the surrounding neighborhood, and the right is reserved to the City Manager, Community Development Director, or their designee(s) to impose additional corrective conditions, if, it is determined that such conditions are proven necessary for the protection of persons in the neighborhood or occupants of adjacent or nearby properties.
45. The facility shall operate in accordance with the Security Plan, incorporated by reference and attached hereto as Exhibit 10 at all times. Surveillance recordings shall be maintained for a minimum period of sixty (60) days and are intended for use by the Bell Gardens Police Department.
46. The facility shall operate in accordance with the Lighting Plan, incorporated by reference and attached hereto as Exhibit 8, at all times. All exterior portions of the site shall be adequately illuminated in the evening so as to make discernable the faces and clothing of persons utilizing the space. Lighting shall be directed onto the Subject Site without being disruptive to uses at the adjacent properties.
47. The facility shall operate in accordance with the Odor Mitigation Plan, incorporated by references and attached hereto as Exhibit 9 at all times.
48. The Bell Gardens Police Department shall be notified within twenty-four (24) hours of any diversion, theft, loss, or other criminal activity on the premises that occurs at any point after the approval of this CUP.
Building/Site Improvements
49. The proposed site improvements on the Subject Site shall be subject to review and approval by the Planning and Building and Safety Divisions. All proposed improvements shall be completed in accordance with the provisions of the California Building Code as amended by Title 26 of the Los Angeles County Building Code. All required permits from the Building and Safety Division shall be secured prior to commencing the construction of the Project. For the purposes of this CUP, the term "construction" includes any demolition, grading, and construction activities, inclusive of tenant improvements.
50. All improvements at the Subject Site shall comply with all Americans with Disabilities Act (ADA) requirements as part of the Building and Safety plan check process.
Exhibit 4 284
Resolution #PC 2024-04
51. The Applicant shall be responsible for submitting plans for Building and Safety plan check and obtain permits for all the work proposed on the Subject Site.
52. Vehicles associated with the construction activities at the Subject Site shall not be permitted to park on the public ROW, inclusive of the alley adjacent of the Subject Site.
53. Temporary storage of building materials shall be contained within the Subject Site and shall be properly secured and screened during all stages of construction.
54. During all stages of construction, the Subject Site shall maintain a six-foot (6') high chain -link fence and gates around the entire perimeter of the Subject Site. The gates shall be closed and locked after construction hours.
55. Contractors and subcontractors engaged in the construction activities at the Subject Site shall obtain a business license and all required permits from the City of Bell Gardens.
56. The Project includes no consideration or approvals for signage. Prior to the installation of any signs at the Subject Site, the Applicant shall submit three (3) sets of sign plans for review and approval to the Community Development Department.
Sign plans shall include elevations, lettering, colors, dimensions, and installation methods.
57. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit a color and material sample board for the exterior building materials and paint colors for trims, wall surfaces, moldings, decorative awnings, frame and glass for all windows and doors, and other exterior building elements shall be subject to review and approval by the Community Development Department. Subsequent construction of the Project shall substantially comply with the approved exterior building elements.
58. Prior to issuance of a building permit, the Applicant shall submit for review and approval to the Community Development Department a sample of the window frame and glass that shall be utilized on the door and windows of the building. Pursuant to Section 9.20.160(B)(3) of the BGMC windows facing the street frontage shall be clear, untinted glass. Mirror, reflective, or tinted glass may only be permitted as an architectural or decorative accents and shall comprise no more than twenty percent (20%) of the window. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.
59. Decorative railings and grilles that are placed in front of or behind windows shall be at least 75 percent (75%) open to perpendicular view and no more than six feet (6') in height. Security gates and grilles shall be prohibited on the exterior of any structure.
Exhibit 4 285
Resolution #PC 2024-04
60. Pursuant to Section 9.38.110 of the BGMC, a minimum loading space of 250 SF is required. Parking depicted on the Subject Site shall be iterated to provide a loading space prior to submittal of plans to Building and Safety plan check.
61. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit to the Community Development Department, pursuant to Section 9.48.030 of the BGMC, signage specifications for approval.
62. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the roof drainage system shall be integrated into the walls of the building so that there are no visible downspouts to the satisfaction of the Building and Safety Division.
63. Any new roof mounted mechanical equipment, including any air compressor units, shall be installed a minimum of six inches (6") below the lowest building parapet in order to prevent the visibility from public ROW. Compliance shall be demonstrated to the satisfaction of the Building and Safety Department prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.
64. The rolling gates located along the public alley ROW shall remain closed at all times, with the exception of trash service days.
65. The following construction practices shall be implemented by all Project contractors to reduce construction noise levels:
a. Ensure that construction equipment is properly muffled according to industry standards, and all equipment shall utilize noise shielding and muffling devices. b. Locate the construction staging area and noise -generating equipment away from adjacent residents as much as feasible.
66. The Applicant shall work closely with City staff to coordinate appropriate accommodations for commercial waste service on the Subject Site prior to issuance of any Project building permit. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.
67. Proposed and required on -Subject Site and off -Subject Site improvements shall be completed by the Applicant prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.
68. Water heater enclosures, vents, flashings, pipes, and conduits for solar or other wall - mounted equipment shall be painted the same color as the surface to which they are attached to the satisfaction of the Building and Safety Department, prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent thereof by the City on the Subject Site.
Exhibit 4 286
Resolution #PC 2024-04
69. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all cable television service connections to the Project shall be installed underground. All cable and connectors shall be screened completely from view and within the building served.
Visible cabinets and boxes shall be treated to match the materials and colors of the buildings. The Applicant is responsible for contacting the cable company and arranging cable installation at the appropriate stage of construction. The type and location of cable installation is subject to approval of the Community Development Department and the construction coordinator of the cable television company servicing the area prior to issuance of Project building permits.
70. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all electrical service connections to the Project shall be installed underground. All surface or ground mounted mechanical equipment including terminal boxes, pull boxes and electric meter cabinets shall be screened from public view and treated to match the materials and colors of the adjacent building. The Applicant is responsible for contacting Southern California Edison and arranging electrical service at the appropriate stage of construction. Installation of mechanical equipment is subject to approval by the Community Development Department and the customer service planner at Southern California Edison Company prior to issuance of Project building permits. For the purposes of this condition, "building permit" shall have the same definition as Section
9.20.160(D) of the BGMC.
71. The trash enclosure on the Subject Site shall be constructed with a six-foot (6') high split face concrete masonry unit block wall. A six-foot (6') high metal gate shall be installed and provided with a self -closing and self -latching mechanism. The top of the structure shall be protected with a decorative metal trellis.
Landscapinq
72. All designated landscaping areas, including but not limited to parkway areas shall be fully planted to the satisfaction of the Building and Safety Division prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card or equivalent thereof by the City.
73. Landscaped areas shall always be maintained by the Applicant at all times.
Public Works Department
74. The Applicant shall designate an ADA path of travel in ROW, and complete repairs to concrete sidewalks and drive approaches for ADA compliance.
Exhibit 4 287
Resolution #PC 2024-04