Agenda packet — Bell Gardens City Council, July 22, 2024 (part 1 of 6)

CITY OF BELL GARDENS

CITY COUNCIL / SUCCESSOR AGENCY TO THE COMMUNITY

DEVELOPMENT COMMISSION

JOINT MEETING
MONDAY, JULY 22, 2024, 6:00 PM
AGENDA
LOCATION: CITY COUNCIL CHAMBERS, 7100 GARFIELD AVENUE, BELL GARDENS, CA90201 The meeting will be held at BeII Gardens City Hall in the Council Chambers. The public may attend the meeting in -person or virtually as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council-meetings .

ACCESSIBILITY: If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability -related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to [email protected] no later than 72 -hours before a regular meeting or 24 -hours before a special meeting.

PUBLIC PARTICIPATION: For Regular Meetings, the public may address the City Council / Agency Members on any item listed on the Regular Meeting Agenda and matters which are not listed on the agenda but are within the subject matter jurisdiction of the City Council / Successor Agency. Public comments for non -agenda items will be limited to a total of 30 minutes. For Special Meetings, the public may only speak on items listed on the agenda. Public comments are limited to three (3) minutes per person for each designated public comment period(s). Public comments can be made by any of the following ways:

IN -PERSON: Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chambers 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 / Agency Members should do so by submitting a "Public Comment Card" prior to the meeting.

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 by https://zoom.us/join and entering the Zoom Meeting I D: 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 the QandA Chat function of the zoom app.

WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: City Clerk's Office, 7100 Garfield Ave., BeII Gardens, CA 90201. To ensure distribution to the

members of the City Council / Agency Members 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 / Successor Agency and will be part of the official public record of this meeting.

For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704.

PUBLIC HEARING: Public participation will be separately called for the public to provide comments at the time of each public hearing item. Speakers who wish to provide a comment should do so by submitting a "Public Comment Card" to the staff liaison, clerk, prior to the designated public comment period.

CALL TO ORDER

INVOCATION

PLEDGE OF ALLEGIANCE

ROLL CALL OF CITY COUNCIL MEMBERS / SUCCESSOR AGENCY TO THE COMMUNITY

DEVELOPMENT COMMISSION MEMBERS
Jorge) Chavez, Council Member/Agency Member
Maria Pulido, Council Member/Agency Member
Francis De Leon Sanchez, Council Member/Agency Member
Marco Barcena, Mayor Pro Tem / Vice Chair
Gabriela Gomez, Mayor / Chair

PRESENTATIONS
• CERTIFICATE OF RECOGNITION - STAR CAR WASH
• CERTIFICATE OF RECOGNITION -VIDASANA
PUBLIC HEARING (Item Nos. 1 - 3)

1. CONSIDERATION OF ORDINANCE NO. 945 TO AUTHORIZE A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL GARDENS AND, ("STIIIZY" RETAIL CANNABIS) RELATING TO THE PROPERTY LOCATED AT 5726 GAGE AVENUE

IN THE CITY OF BELL GARDENS
Waive full reading and introduce Ordinance No. 945, by title only, to approve the proposed Development Agreement No. 2023-077 for a cannabis retail storefront at 5726 Gage Avenue.

Recommendation:

It is staff's recommendation that the City Council waive full reading and introduce Ordinance No. 945, by title only, to approve the proposed Development Agreement No. 2023-077 for a cannabis retail storefront at 5726 Gage Avenue.

2. CONSIDERATION OF GENERAL PLAN AMENDMENT NO. 2022-060 TO ADD AN

ENVIRONMENTAL JUSTICE ELEMENT TO THE BELL GARDENS GENERAL PLAN Consideration and approval of a general plan amendment to add a new Environmental Justice Element to the Bell Gardens General Plan consistent with State Law.

Recommendation:

It is staff's recommendation that the City Council:

1. Find pursuant to California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Section 15074, after consideration of the whole administrative record, including the Initial Study/Negative Declaration (IS/ND), and all comments received, there is no substantial evidence that the project will not have a significant effect on the environment and adopt IS/ND(SCH# 2024040433); and

2. Adopt the attached resolution to approve General Plan Amendment 2022-060 to add an Environmental Justice (EJ) Element to the Bell Gardens General Plan.

3. CONSIDERATION OF ORDINANCE NO. 943 AMENDING CHAPTER 9.04 (DEFINITIONS), CHAPTER 9.12 (COMMERCIAL ZONES), CHAPTER 9.14 (INDUSTRIAL ZONE).

CHAPTER 9.20 (SPECIAL USES AND APPLICABLE STANDARDS), AND CHAPTER 9.38 (PARKING AND LOADING (OFF STREET)) OF TITLE 9 (ZONING AND PLANNING

REGULATIONS) OF THE BELL GARDENS MUNICIPAL CODE TO REGULATE VEHICLE

PARKING AND STORAGE FORAUTOMOBILE REPAIR USES
Waive full reading and introduce Ordinance No. 943, by title only, to regulate vehicle parking and storage for automobile repair uses.

Recommendation:

It is staff's recommendation that the City Council:

1. Find the proposed Ordinance No. 943 (Exhibit 1) categorically exempt from the California Environmental Quality Act (CEQA); and

2. Waive full reading and introduce Ordinance No. 943, by title only, amending Chapter 9.04 (Definitions), Chapter 9.12 (Commercial Zones), Chapter 9.14 (Industrial Zone), Chapter

9.20 (Special Uses and Applicable Standards), and Chapter 9.38 (Parking and Loading (Off Street)) of Title 9 (Zoning and Planning Regulations) of the Bell Gardens Municipal Code (BGMC) to regulate off-street vehicle parking and storage for automobile repair uses.

PUBLIC COMMENTS ON NON -AGENDA ITEMS UNDER THE SUBJECT MATTER

JURISDICTION OF THE CITY COUNCIL / SUCCESSORAGENCY
During this time, the members of the public may address the City Council / Successor Agency regarding any items within the subject matter jurisdiction of the City Council / Successor Agency. Public comments are limited to 3 minutes per person subject to an overall 30 -minute period for non -agenda items.

Government Code Section 54590 prohibits the City Council / Successor Agency from taking action or engaging in discussion on a specific item unless it appears on the agenda.

PUBLIC COMMENTS ON AGENDA ITEMS ONLY
During this time, the members of the public may address the City Council / Agency Members regarding any items listed on the agenda. Public comments are limited to 3 minutes per person.

CITY MANAGER'S REPORT
CONSENT CALENDAR (Item Nos. 4 - 18)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council / Successor Agency request specific items to be removed from the Consent Calendar for separate action.

Items called for separate discussion will be heard as the next order of business. 3 4. GENERAL MOTION TO WAIVE FULL READING AND APPROVE ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36934 In order to expedite the conduct of business at City Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the full reading.

Recommendation:

It is staff's recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.

5. APPROVAL MINUTES OF JUNE 24, 2024, CITY/ SUCCESSOR AGENCY JOINT

MEETING
Approve the minutes of the June 24, 2024 City/Successor Agency Joint Meeting.

Recommendation:

It is staff's recommendation that the City Council approve the minutes of the June 24, 2024 City/Successor Agency Joint Meeting.

6. WARRANT REGISTERS AND WIRE TRANSFERS
In approving the action of receiving and filing the warrant registers, the official minutes of the Bell Gardens City Council should state that each individual member of the City Council is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

It is staffs recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 06/13/2024, 06/18/2024, and 06/25/2024. 7 MAY 2024 TREASURER'S REPORT
The Treasurer's Report is a list of cash, investment portfolio and restricted bond cash held by the City.

Recommendation:

It is recommended that the City Council receive, approve, and file the May 2024 Treasurer's Report.

8. JUNE 2024 TREASURER'S REPORT
The Treasurer's Report is a list of cash, investment portfolio and restricted bond cash held by the City.

Recommendation:

It is recommended that the City Council receive, approve, and file the June 2024 Treasurer's Report.

9. CONSIDERATION OF A RESOLUTION AUTHORIZING SUBMITTAL OF AN

APPLICATION TO THE STATE PROHOUSING DESIGNATION PROGRAM Consideration of a resolution to authorize submittal of an application to the California Department of 4 Housing and Community Development Prohousing Designation Program established to increase the availability of housing statewide.

Recommendation:

It is staff's recommendation that the City Council adopt a resolution authorizing submittal of an application to the California Department of Housing and Community Development Prohousing Designation Program.

10. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL GARDENS

APPROVING A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF BELL GARDENS AND BLUE STRIKE ENVIRONMENTAL, INC. FOR THE PREPARATION

OF A CLIMATE ACTION PLAN
A resolution to approve a professional service agreement between Blue Strike Environmental, Inc. for consultation on the preparation of the Bell Gardens Climate Action Plan.

Recommendation:

It is staff's recommendation that the City Council adopt the attached Resolution approving a Professional Services Agreement with Blue Strike Environmental, Inc. for the preparation of the Bell Gardens Climate Action.

11. JOINT TAX TRANSFER RESOLUTION ARTESIA CEMETERY DISTRICT, DOWNEY

CEMETERY DISTRICT, AND LITTLE LAKE CEMETERY DISTRICT REORGANIZATION NO. 2021-03
Three public cemeteries (Artesia Cemetery District, Downey Cemetery District, and Little Lake Cemetery District) have undertaken a reorganization to better serve the community and rectify map deficiencies. This reorganization will result in more logical boundaries for all three cemeteries that will align with existing city boundaries. Approval would put Bell Gardens residents within the boundaries of the Downey Cemetery District and would afford all BeII Gardens residents with the "in district" rate for burials at the Downey Cemetery District.

Recommendation:

It is staff's recommendation that the City Council adopt a Joint Tax Transfer Resolution for Artesia Cemetery District, Downey Cemetery District and Little Lake Cemetery District Reorganization No. 2021-03.

12. CONSIDERATION OF A RESOLUTION APPROVING A WATER RIGHT LICENSE AND AGREEMENT WITH LIBERTY UTILITIES (PARK WATER) CORP. GRANTING A LICENSE TO EXTRACT 500 ACRE-FEET OF CITY'S GROUNDWATER PUMPING ALLOCATION RIGHTS FOR FY 2023-2024
Consideration of a Resolution approving a Water Right License and Agreement with Liberty Utilities (Park Water) Corp. granting a license to extract 500 acre-feet of the City's unused groundwater pumping allocation rights for fiscal year 2023-2024.

Recommendation:

It is staff's recommendation that the City Council adopt the attached Resolution approving a Water Right License and Agreement with Liberty Utilities (Park Water) Corp. granting a license to extract 500 acre-feet of the City's unused groundwater pumping allocation rights for fiscal year 2023-2024, for a total fee of $25,000.

13. ACCEPTANCE OF SLURRY SEAL ZONE 4 (CIP NO. 3921) PROJECT AS COMPLETE Consideration of acceptance of the Slurry Seal Improvement Zone 4 as complete.

Recommendation:
5 It is staff's recommendation that the City Council:

1. Accept the Slurry Seal Improvement Zone 4 (CI P No. 3921) as complete; and

2. Authorize staff to file the Notice of Completion.

14. APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION TO SOLICIT BIDS FOR THE FORD PARK MAINTENANCE YARD ACCESS ROAD PROJECT (CIP NO. 3902)
The plans and specifications for the Ford Park Maintenance Yard Access Road Project have been prepared. Approval of this item will allow the City to advertise the project for bids.

Recommendation:

It is staff's recommendation that the City Council:

1. Approve the plans and specifications for the Ford Park Maintenance Yard Access Road Project;

2. Authorize staff to solicit competitive bids and publish the Notice Inviting Sealed Bids (NISB); and

3. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Section 15301(c).

15. CONSIDERATION OF A RESOLUTION APPROVING TRANSFER AGREEMENT NO. 2024MP08 WITH THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT FOR THE SAFE, CLEAN WATER PROGRAM — MUNICIPAL PROGRAM
Consideration of a Resolution approving a transfer agreement with Los Angeles County Flood Control District for the Safe, Clean Water— Municipal Program.

Recommendation:

It is staffs recommendation that the City Council adopt the attached Resolution approving Transfer Agreement No. 2024MP08 with the Los Angeles County Flood Control District for the Safe, Clean Water Program - Municipal Program.

16. APPROVAL OF SUBRECIPIENT AGREEMENT WITH COUNTY OF LOS ANGELES FOR 2021 STATE HOMELAND SECURITY PROGRAM
The City has been awarded $72,000 for the 2021 State Homeland Security Program grant funding.

If the subrecipient agreement is approved, staff will come at a later to Council for approval of the proposed purchases allowed under this grant.

Recommendation:

It is staff's recommendation that the City Council adopt the attached Resolution approving the State Homeland Security Program Subrecipient Agreement Grant Year 2021 between the County of Los Angeles and the City of Bell Gardens thereby accepting the 2021 State Homeland Security Program (SHSP) grant funds.

17. CONSIDERATION OF FIRST AMENDMENT TO CONTRACT SERVICE AGREEMENT WITH BRIGHTVIEW LANDSCAPE SERVICES, INC. FOR LANDSCAPE MAINTENANCE

SERVICES AT FORD PARK
A First Amendment to the Contract Services Agreement with BrightView Landscape Services, Inc. for landscape services at Ford Park.

Recommendation:

It is staffs recommendation that the City Council adopt the attached Resolution authorizing the City Manager to execute a First Amendment to the Contract Services Agreement with Brightview Landscape Services, Inc. approving a CPI adjustment of 3.9% and exercising the right to extend the Term of the Contract Services Agreement to June 1, 2025. 6 18. APPROVAL OF MEMORANDUM OF UNDERSTANDING WITH THE LOS ANGELES

REGIONAL FOOD BANK
Approval of Memorandum of Understanding (MOU) between the City of Bell Gardens and Los Angeles Regional Food Bank for monthly food distribution product.

Recommendation:

It is staff's recommendation that the City Council approve the attached MOU between the City of Bell Gardens and Los Angeles Regional Food Bank for food supplies for a monthly food distribution.

DISCUSSION (Item Nos. 19-20)

19. LOCAL COMMISSIONS APPOINT ENT LIST
The Local Commissions Appointments List outlines the City of Bell Gardens Commissions and Commissioners. Per the Bell Gardens Municipal Code, City Commissions consist of Bell Gardens residents appointed by each member of the City Council. Council Members may remove commissioners during any regular City Council meeting and may appoint commissioners following 10 working days after the posting of the vacancy notice.

Recommendation:

It is staff's recommendation that the City Council review the Commissions Appointments List and by motion, remove commissioners and/or make appointments to the posted vacancies.

20. URGENCY ORDINANCE NO. U-947 OF THE CITY OF BELL GARDENS UNDER GOVERNMENT CODE SECTION 36937, ESTABLISHING UNCODIFIED REGULATIONS

RELATED TO DEMOLITION, ALTERATION, AND RELOCATION OF HISTORICAL

RESOURCES
Waive full reading and adopt Urgency Ordinance No. U-947, by title only, to establish regulations related to demolition, alteration, and relocation of historical resources.

Recommendation:

It is staffs recommendation that the City Council:

1. Find the proposed urgency ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Title 14, Section 15061(b)(3);

2. Adopt Urgency Ordinance No. U-947, establishing uncodified regulations related to demolition, alteration, and relocation of historical resources.

CITY COUNCIL / SUCCESSOR AGENCY MEMBER COMMENTS

ADJOURNMENT
Daisy Gomez, City Clerk
Agenda posted on July 18, 2024.
7 CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT
Item 1.

TO:

FROM:

BY:

SUBJECT:

Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Gustavo Romo, Deputy City Manager/Director of Community Development CONSIDERATION OF ORDINANCE NO. 945 TO AUTHORIZE A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL GARDENS AND, ("STIIZY" RETAIL CANNABIS) RELATING TO THE PROPERTY LOCATED AT 5726 GAGE

AVENUE IN THE CITY OF BELL GARDENS
DATE: July 22, 2024
RECOMMENDATION:

BACKGROUND/DISCUSSION:

Tak Sato, representing STIIIZY Bell Gardens, LLC (Applicant), proposes tenant improvements to an existing, vacant, two-story, 5,824 square -foot (SF) commercial building for a proposed cannabis retail use (Project) located at 5726 Gage Avenue (Subject Site).

The Subject Site is identified by Assessor Identification Number (AI N) 6330-015-024 by the Los Angeles County Office of the Assessor and is approximately 11,200 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.

At the regularly scheduled Planning Commission meeting of June 19, 2024, the Planning Commission with a 3-1-1 vote determined the Project categorically exempt from CEQA, approved CUP No. 2023-077 (Resolution #PC 2024-06), and recommended to the City Council approval of Ordinance No. 945 (Resolution #PC 2024-07) to authorize entering into and execution of Development Agreement (DA) No. 2023-077. The Project was also separately granted modifications by staff as part of the Site Plan approval for the maneuvering aisle and loading facilities requirements. The adopted CUP conditions of approval (Exhibit 3) require that the operation of the cannabis retail use follow the requirements of the City and California Department of Cannabis Control (DCC) and address any potential compatibility concerns.

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 8 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 City limits, 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 80 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. Additionally, the Development Agreement Procedures dictate that the City Manager, Community Development Director, and City Attorney shall negotiate the terms of the development agreement prior to presenting them to the Planning Commission and City Council. However, the City Council has the ultimate authority on the terms of a development agreement, so long as they are consistent with the City's Development Agreement Procedures.

Community Benefits
As proposed, DA No. 2023-077 would require the Applicant to provide an annual community benefit in the amount of One Hundred Thousand Dollars ($100,000) upon the effective date for DA No. 2023-077 and renewed on an annual basis, every January (Annual Community Benefit). The Applicant would also be required to pay a quarterly community benefit in the amount that is equivalent to seven percent (7%) of gross receipts upon the issuance of a Business Regulatory Permit ("Quarterly Community Benefit"). As discussed in further detail below, the Applicant is seeking a Quarterly Community Benefit rate equal to six percent (6%) of gross receipts.

The City Council may approve and adopt the DA "as -is", consider approval with a different Quarterly Community Benefit Rate (and/or deliberate other terms), or disapprove the DA. Pursuant to the Development Agreement Procedures, 80 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 Recreation and Community Services 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 would 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 land use planning efforts.

The conditions of approval for CUP No. 2023-077 are expressly incorporated into the terms of the DA No. 2023- 077. These conditions outline specific 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. 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.

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 cannabis retail use operation and provide a stable revenue stream for the City.

Conditional Use Permit
The conditions of approval for CUP No. 2023-077 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, 9 and federal regulations, where applicable. These conditions are expressly incorporated into the terms of Ordinance No. 945 (DA No. 2023-077).

General Plan Consistency
The Subject Site carries the MU General Plan Land Use Element designation which is 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 housing and commercial facilities.

Policy 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 siting requirements to enhance the economic viability of the surrounding commercial areas and would be consistent with Policy 3.

Policy 4 of the General Plan's Land Use Element asserts that the City encourages private investment in the City's industrial economic base while ensuring compliance with necessary environmental requirements. The Project proposes to comply with all applicable state and local environmental requirements and would, therefore, be consistent with Policy 4.

Policy 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 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 siting requirements and development standards.

Consistency with Development Standards
The Planning Commission determined that the Project complied with development standards contained in Chapter

9.12 (Commercial Zones) of the Bell Gardens Municipal Code (BGMC) as detailed in the June 19, 2024 staff report (Exhibit 2) to the Planning Commission and through the Planning Commission's adoption of Resolution #PC 2024- 06 (Exhibit 3), inclusive of locational siting requirements found in BGMC Section 9.20.160(A), and is located more than 500 feet from any existing cannabis retail use and more than 600 feet away from any daycare, park, or youth center, as defined by the BGMC (Exhibit 6).

Signage
No request for a sign permit was included in the request. Pursuant to the BGMC and the Condition of Approval No. 56, the Applicant would be required to submit an application with updated site and elevation plans to depict compliance with the requirements found in Chapter 9.20 (Signs) of the BGMC prior to placing signage at the Subject Site.

Lighting, Odor Mitigation, and Security Plans
BGMC Chapter 5.64 requires a cannabis retailer to comply with specific operating standards, inclusive of a requirement to implement and comply with a Lighting Plan, Odor Mitigation Plan, and Security Plan, which are submitted as a part of the Business Regulatory Permit application process. Failure to comply with these plans may subject an operator to enforcement action such as suspension or revocation of a Business Regulatory Permit. 10 ENVIRONMENTAL REVIEW:

In accordance with CEQA (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), Ordinance No. 941 has been determined to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).

CONCLUSION:

The DA is designed to facilitate ongoing communication and collaboration between the Applicant, who would be the 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 will 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 Ordinance No. 945 and the execution of the proposed DA would ensure vested development rights in exchange for community benefits dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items. Therefore, staff recommends approval of the proposed development agreement in the staff materials (Exhibit 5), which 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 and that the City Council waive full reading, introduce by title only, and adopt Ordinance No. 945.

FISCAL IMPACT:

If Ordinance No. 945 is 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, every January.

The Applicant would also be required to make quarterly contributions equal to 7 percent (7%) of gross receipts, on a quarterly basis. Pursuant to the DA terms, eighty percent (80%) of these funds would be dedicated to the City's 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.

ATTACHMENTS:

Exhibit 1 — Ordinance No. 945
Exhibit 2 — June 19, 2024, Planning Commission Agenda Report and Exhibits Exhibit 3 - Resolution #PC - 2024-06
Exhibit 4 - Resolution #PC - 2024-07
Exhibit 5 - Development Agreement No. 2023-077
Exhibit 6 — Radius Map 500, 600, and 1,500 -foot
Exhibit 7 - Public Hearing Notice
APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 11 ORDINANCE NO. 945

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL

GARDENS AND STIIIZY BELL GARDENS, LLC, AND EASTERN GAGE, LLC RELATING TO REAL PROPERTY LOCATED AT 5726 GAGE

AVENUE IN THE CITY OF BELL GARDENS
WHEREAS, the City of Bell Gardens ("City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, the City Planning Commission, on June 19, 2024, considered and recommended that the City Council of Bell Gardens approve the development agreement by and between the City, Stiiizy Bell Gardens, LLC, and Eastern Gage, LLC (Development Agreement), which Development Agreement is hereby incorporated by reference, and which is hereby incorporated into the provisions of this Ordinance; and WHEREAS, after due notice, the City Planning Commission and the City Council did conduct public hearings on this matter; and
WHEREAS, pursuant to Government Code Section 65864, et. seq, and City Council Resolution No. 2023-043, the City Planning Commission transmitted to the City Council its findings and recommendations; and
WHEREAS, the Development Agreement is in the public interest and is consistent with the City's General Plan; and
WHEREAS, Policy 1 of the General Plan's Land Use Element emphasizes the City's commitment to open communication and seeking public input; and WHEREAS, the deliberation of the ordinance has been subject to a public hearing process that has been duly noticed for the purpose of seeking public input and participation and community members will continue to provide public input for individual projects resulting from ordinance implementation and is therefore consistent with Policy 1; and
WHEREAS, Policy 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; and
WHEREAS, the Project proposes to reactivate a currently vacant commercial building resulting in a cannabis retail storefront thereby enhancing the economic viability of the surrounding commercial areas and is therefore consistent with Policy 3; and Exhibit 1 12

WHEREAS, Policy 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; and WHEREAS, the Development Agreement encourages long term investment by permitting a cannabis retail use for a term of up to ten (10) years and has otherwise complied with all applicable state and local environmental requirements and is therefore consistent with Policy 4; and
WHEREAS, Policy 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; and WHEREAS, the introduction of a cannabis retail use will promote an economic diversity of the City's commercial zone in order to ensure community stability and economic vitality of existing businesses and is therefore consistent with Policy 5; and WHEREAS, the City Council has reviewed and considered the Development Agreement and the Findings and recommendations of the City Planning Commission.

NOW THEREFORE, THE PEOPLE OF THE CITY OF BELL GARDENS DO ORDAIN AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct and hereby incorporated by reference, in full, herein.

SECTION 2. The City Council finds, with respect to the Development Agreement, that it:
(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 City Council hereby approves DA No. 2023-077 and authorizes the City Attorney to approve as to form and make clarifying changes and further authorizes and directs the City Manager to execute the development agreement in the name of the City of Bell Gardens.

SECTION 4. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted Exhibit 1 13

this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

SECTION 5. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED AND ADOPTED this day of , 2024.

THE CITY OF BELL GARDENS
Gabriela Gomez, Mayor
APPROVED AS TO FORM: ATTEST:

Stephanie Vasquez
City Attorney
Daisy Gomez
City Clerk
, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. 945 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on July 22, 2024, and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Daisy Gomez, City Clerk
Exhibit 1 14

CITY OF BELL GARDENS

COMMUNITY DEVELOPMENT DEPARTMENT

AGENDA REPORT
Item 1.

TO:

FROM:

BY:

SUBJECT:

Honorable Chair and Members of the Planning Commission
Steven Jones, City Planner
Adrian Flores, Associate Planner
CONDITIONAL USE PERMIT NO 2023-077 AND RECOMMENDATION TO APPROVE ORDINANCE NO. 945 TO APPROVE A PROPOSED DEVELOPMENT AGREM EENT AUTHORIZING A CANNABIS RETAIL USE ("STIIZY") AT 5726 GAGE AVENUE (FILE NO. 2023-077)
DATE: June 19, 2024
RECOMMENDATION:

It is staff's recommendation that the Planning Commission move to:

1. Determine Conditional Use Permit (CUP) No. 2023-077 and the ordinance (Exhibit 1) for Development Agreement (DA) No. 2023-77 (Exhibit 2) 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 2024-06 (Exhibit 3) approving CUP No. 2023-077 to:
a. Authorize tenant improvements to an existing 5,824 square -foot commercial building and authorize a storefront cannabis retail, subject to conditions of approval inclusive of the execution of the DA ordinance by and between Stiiizy Bell Gardens, LLC, and the City of Bell Gardens; and

3. Adopt Resolution #PC 2024-06 (Exhibit 4) 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 public benefits.

BACKGROUND:

Tak Sato, representing STIIIZY Bell Gardens, LLC (Applicant), request the approval of a cannabis retail use and tenant improvements to an existing, vacant two-story 5,824 square -foot (SF) commercial building (Project) located at 5726 Gage Avenue (Subject Site). Approximately 4,615 SF first floor area would be developed to support the cannabis retail use and approximately 1,209 SF on the second floor would be used for storage purposes only. The Project was also granted modifications as a part of the Site Plan approval for the maneuvering aisle and loading facilities requirements.

The Subject Site is identified by Assessor Identification Number (Al N) 6330-015-024 (Exhibit 5) by the Los Angeles County Office of the Assessor on an approximately 11,200 SF parcel of land. 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.

Exhibit 2 65

Table No. 1, below, summarizes the zoning, land use designations, and uses for properties surrounding the Subject Site.

Table No. 1. Surrounding Land Uses
Nor
General Plan
MU
Zone
M -U
Use
Residential
South
General Plan
MU
Zone
M -U
Use
Residential
Easy
General Plan
MU
Zone
M -U
Use
Restaurant
st
General Plan
MU
Zone
M -U
Use
Restaurant & Residential
The Subject Site is currently improved with a two-story 5,824 SF commercial building. According to the City business license records, the Subject Site was occupied by a grocery store market use from 1996 until January of 2023 and is currently vacant.

PROJECT/SITE DESCRIPTION:

The Applicant is requesting a CUP and a DA to establish certain rights to authorize the development and operation of the cannabis retail use, operated by ST I IZY, at the Subject Site.

The Project proposes tenant improvements inclusive of a 2,500 SF customer -accessible retail area, a 2,115 SF employee -only space comprised of a cash & non -cannabis storage room, managers office, secured inventory room, break room, and two (2) employee restrooms at the first -floor level, and a total of nine (9) new parking and loading spaces and 16 new bicycle parking spaces (Exhibit 6). The remaining 1,209 SF second floor space would be used for storage purposes only.

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 housing and commercial facilities.

Exhibit 2 76

Policy 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 5.

Compliance with Commercial Zone Development Standards
The Subject Site is currently developed with an existing, vacant two-story 5,824 SF commercial building, on an approximately 11,200 SF rectangularly shaped parcel of land. The Project proposes tenant improvements that would consist of a 4,615 SF commercial retail space and 1,209 SF storage space. The Project includes a modification of maneuvering aisle requirements from 14 feet (14') to 13.5 feet (13.5') in width and modification to the required depth of the loading facilities from 25 feet (25') to 23 feet and 6 inches (23'-6"), and is otherwise consistent with development standards contained in Bell Gardens Municipal Code (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 applicable yard setback requirements for properties zoned M -U. According to Los Angeles County records, the 5,824 SF commercial building was constructed in the year 1946 and expanded in square footage in the year 1986 utilizing a 1960 residential structure that existed to the rear of the commercial building on the Subject Site prior to the City's incorporation in 1961 and the adoption of current BGMC setback requirements in 2007. The existing structure was lawfully established structure in compliance with all applicable ordinances/regulations at the time of construction and is therefore legally nonconforming. As demonstrated in Table 2 below, and consistent with Exhibit 6, even though the currently existing structure does not comply with current setback requirements the legal nonconforming status of the structure would justify a zero -foot (0') setbacks in the front yard adjacent to Gage Avenue, when the BGMC requires a 5 -foot (5') front yard. 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
0 feet
Yes, due to legal
nonconforming status
East Side
None
26 feet -5
inches
Yes
West Side
None
None
Yes
Rear
10 feet
43 feet
Yes
Lot Coverage
Exhibit 2
87 The Project would comply with lot coverage restrictions which are found in BGMC Table 9.12B which permits up to 90 percent (90%) coverage. The Subject Site is approximately 11,200 sf and the existing commercial building occupies 41 percent (41%) of the Subject Site, as shown in Exhibit 6. The Project does not propose any additional floor area and therefore would comply 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 existing structure 26 feet and eight inches (26'-8") and the Project does not propose any increase in height (Exhibit 8) and would therefore comply with maximum height requirements.

Screening of Mechanical and Utility Ec uipment
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. No changes to the roof are proposed and the Project would comply with screening requirements as depicted in the proposed roof plan (Exhibit 9).

Mechanical Equipment
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 7). 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
BGMC Section 9.34.030 typically requires a minimum of five percent (5%) of the parking area to be landscaped with live plant materials. No landscaping currently exists at the Subject Site. No landscaping was required when the structure was legally established. Due to the Subject Site's legal nonconforming status, no new landscaping is required. The Subject Site's legal nonconforming condition is a lawfully established structure in compliance with all applicable ordinances/regulations at the time of construction. Therefore, the Subject Site is in compliance with all applicable ordinances/regulations.

Lighting
The existing structure provides four (4) exterior wall -mounted lighting fixtures attached to the exterior walls of the building. The Applicant proposes to replace the existing wall -mounted lighting fixtures with four (4) new light emitting diode (LED) wall -mounted lighting fixtures as demonstrated in the Lighting Plan (Exhibit 13). The Lighting Plan depicts the lighting coverage for each of the proposed new LED light fixtures, establishing that the majority of the parking lot area would be well -illuminated. The wall of an existing residential dwelling unit abuts the southeast property line of the Subject Site, and the proposed new exterior lighting lumens would not reach the existing residential property. If approved, the Project would enhance the retail experience with a strong sense of safety and unique community identity.

Parking
A cannabis retail use must provide off-street parking for "business general" as set forth in Section 9.38.050 of the BGMC. As demonstrated in Table 3, the Project building square footage would require the provision of 12 parking spaces. However, the commercial building is a lawfully established structure in compliance with all applicable ordinances/regulations at the time of construction and pursuant to Section 9.38.090.1 of the BGMC, required new or existing automobile parking spaces for all uses may be replaced by bicycle parking at a ratio of one (1) standard or compact automobile parking space for every four (4) required or nonrequired bicycle parking spaces provided.

Exhibit 2 98

Therefore, the Project proposes nine (9) new automobile parking spaces, inclusive of one (1) parking space compliant with standards ADA, and 16 new bicycle parking spaces in lieu of four (4) required off-street automobile parking spaces (Exhibit 6).

Table No. 3. Parking Analysis
Required Parking —
BGMC § 938.050(C)
(2)
Required
Bicycle Parking
Discount
Provided
General Business: 1
space per 400 SF
4,615 SF/ 400
12 Spaces
16 Bicycle
Parking Spaces
(-4 spaces)
9 Spaces
Pursuant to Section 9.38.070(1) of the BGMC, the Applicant was granted a request (Exhibit 10) for a modification to the motor vehicle maneuvering and parking space layout requirements, to allow a drive aisle width of 13.5 feet (13.5') in lieu of the required 14 feet (14'). Due to the existing legal nonconforming building status and the Subject Site lot width constraints, the Project is unable to provide a minimum width requirement drive aisle. Therefore, the Subject Site is in compliance with all applicable ordinances/regulations. The modification was approved at the administrative level pursuant to BGMC Section 9.58.020.

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, with a minimum 10 -foot (10') width and 25 -foot (25') length. Pursuant to Section 9.38.110(G) of the BGMC, the Applicant was granted a request (Exhibit 11) for a modification to the loading facilities requirement and proposes a 252 SF loading zone that is 23 -feet, six (6) -inches (23'-6") long and a 10 feet, eight (8) inches (10'-8") wide. Due to the existing legal nonconforming building status and the Subject Site lot width constraints, the Project is unable to provide the minimum dimension requirement loading space. Therefore, the Subject Site is in compliance with all applicable ordinances/regulations. The modification was approved at the administrative level pursuant to BGMC Section

9.58.020.

Trash Enclosures
BGMC Chapter 9.44 requires an on -site refuse dumpster on commercial sites and the maintenance of a trash enclosure area. The existing building currently has an existing trash enclosure room located at the south portion of the building 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 to be painted the same color as the surface to which they are attached. The Applicant proposes new exterior colors in two tones, "cold wind" & "silver lined" and exterior trims to be painted "black tie." There are no proposed changes to existing wall -mounted equipment and the existing equipment would be painted consistent with the Applicant's proposed color scheme to align with standards contained in the City's commercial development standard matrix.

Fences and Walls
Development of a fence, low barrier wall or walls on a project site must be established and erected in accordance with provisions of BGMC Chapter 9.32.

Exhibit 2 10

No new fence or wall is proposed on the Subject Site. The Subject Site has an existing legal six-foot (6') high wrought iron fence along the rear property line of the Subject Site with an egress point through a public right-of-way alley. A legal six-foot (6') high solid masonry block wall exists along the Subject Site's western property line and a legal six (6) - foot -high chain -link fence exists along a portion of the eastern property line. The wall of a residential dwelling unit lies along the eastern property line abutting the Subject Site. If approved, Condition No. 92 would require the existing fences and walls to be improved with permitted material where needed. In addition, Condition No. 92 has been drafted to require suitable, functional design of a new perimeter wall along the eastern property line 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. The Project would comply with BGMC requirements for fences and walls.

Exterior Building Features
BGMC Section 9.12.040, Design Standards for all Commercial Development Matrix (Table 9.12) requires that (a) all 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 should 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 in two tones, "cold wind" & "silver lined" and exterior trims to be painted "black tie." No other exterior improvements are proposed, and any proposed new 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 Sites Features standards in Table 9.12 requires that new fences and walls to be of consistent materials, design, color and that driveways, walkways, etc. to be frees of gouges, ruts, and/or gaps so that the paved surface areas are maintained and 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 8. CUP Condition No. 57 would enforce compliance with the exterior site feature standards.

Signs
No plans for signage were received for consideration. CUP Condition No. 56 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, un-tinted glass.

Windows and doors proposed to face the street are depicted clear and un-tinted and would therefore comply with the BGMC as depicted on Exhibit 8 and would replace the currently boarded up space intended for windows.

Decorative Railings and Grilles
BGMC Section 9.20.160(B)(4) 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 shall be prohibited on the exterior of any structure. The Project does not propose any decorative railings, grilles, or security gates or grilles are proposed; therefore, the Project would comply with the BGMC's requirements.

Impacts on City Resources
Exhibit 2 20

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 30 minutes to make their purchase, similar to other retail uses. As described below, 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 a commercial corridor 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 at the north side of the property and through an alley approach on the south 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 cannabis retail 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. 2023-077 is granted.

Utilities
According to the City business license records, the Subject Site was occupied by a grocery store market use from1996 to 2023. During the operations of the grocery store market, the Subject Site had been serviced by all utilities, and remained in consistent operation since there were final building permits issued in 1946 and 1960 and annual business license renewals. Tenant improvement projects typically require the property owner as the responsible party to maintain required utility service even during periods of vacancy. Condition No. 83 would require the Applicant to provide documentation providing the continued service of required utilities, prior to the issuance of building permits.

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 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 the DA presented within the staff materials (Exhibit 1) 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
Exhibit 2 22

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 will 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 12). 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 12) were identified: Marlow Park and Codela Preschool at approximately 1,350 feet away, which exceed 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 12) nor 1,500 -foot radius (Exhibit 12).

Restricted Use Within the Civic Center Overlay District A cannabis retail use may not be permitted within the Civic Center Overlay District (CCOD). The CLOD 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 (BGMC 9.20.160(A)(2)
A cannabis retail use may not be permitted within the boundaries delineated in BGMC Section 9.20.160(A)(2). The restricted boundaries are located on Eastern Avenue and Florence Avenue as shown in Figure No. 1. The Subject Site is located on Gage Avenue 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). (See Figure No. 1 - Restricted 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 to the City's General Plan, conditions of approval have been included as part of the CUP to address the general operating conditions, 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. 2023-077 is approved, the Applicant would be required to implement the Lighting Plan (Exhibit 13), Odor Mitigation Plan (Exhibit 14), and Security Plan (Exhibit 15) 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. 2023-077, as well as DA No. 2023-077.

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 13). The City is charged Exhibit 2 22

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. 2023-077.

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 14, which are proposed to be incorporated into the conditions of approval and the DA, by referencing compliance with all conditions of approval. 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 plan to control odor incorporate a carbon filtration system, negative pressure ventilation, and HVAC. Proposed staff training would include provisions for recordkeeping systems and forms, monthly inspections, and maintenance plan 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 plan to mitigate odor.

Security Plan
The Applicant would implement and maintain a Security Plan (Exhibit 15) to address public safety issues inclusive of security operations by third party security guard provider selected through an RFP process by the Applicant. Security guards would be licensed to perform security services by the California Department of Consumer Affairs Bureau of Security and Investigative Services and would be required to always possess their valid "Security Guard Card." Honeywell Vista 21-I p Systems are proposed to be installed for the alarm systems and would send a signal or polling to the alarm company every 200 seconds to ensure the system is in good working order and transmitting to the alarm company. Emergency remote panic alarm buttons would be strategically and discreetly located around the retailer which immediately alert dispatch for the Bell Gardens Police Department as well as the alarm monitoring company in the case of an urgent situation.

The main goal of the Applicant's Security Plan is to ensure safety and security for all customers, patients, employees, and visitors at the proposed retail storefront and those who purchase cannabis goods from their 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 would deploy at least two (2) security guards during operating hours. Security Guard service providers would also provide 24 -hour dispatch in the event that additional security guards would be needed during an emergency.

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 Exhibit 2 28

approval would require compliance with the submitted Security Plan. The requirements of the Security Plan are also incorporated by reference into DA No. 2023-077.

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 close 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.

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.

Staff recommends approval of the proposed development agreement in the staff materials (Exhibit 2) which 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. The Applicant has represented that it is in agreement with all of the proposed terms of the development agreement, with the exception of the Quarterly Community Benefit, discussed below.

Community Benefits
As proposed, DA No. 2023-077 would require the Applicant to provide an Annual Community Benefit in the amount Exhibit 2 24

of One Hundred Thousand Dollars ($100,000) upon the effective date for DA No. 2023-077 and renewed on an annual basis, every January. City staff previously negotiated the Quarterly Community Benefit rate at 10 percent (10%) of gross receipts, as defined in the DA. At a regularly scheduled meeting of June 10, 2024, the City Council considered DAs for two other cannabis retail use applicants and approved a Quarterly Community Benefit rate of seven percent (7%). Based on the City Council's action, DA No. 2023-077 would require the Applicant to pay a Quarterly Community Benefit equal to seven percent (7%) of gross receipts. The Applicant is seeking a Quarterly Community Benefit rate equal to six percent (6%) of gross receipts.

The Planning Commission may recommend that the City Council approve the DA "as -is;" recommend approval but with a different Quarterly Community Benefit Rate (and/or provide recommendations on other terms); or recommend disapproval of the DA. Pursuant to the Development Agreement Procedures, 80 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 Recreation and Community Services 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 land use planning efforts.

The conditions of approval for CUP No. 2023-077 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. 2023-077. 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 cannabis retail use 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.

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's improvements to an already existing commercial structure to support a new commercial use. No additional floor area is proposed. 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 associated tenant improvements 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. 2023-077 through the adoption of Resolution #PC 2024-06; and recommend to Exhibit 2 26

the City Council the approval of an ordinance to authorize the City to enter into and execute DA No. 2023-077 through the adoption of Resolution #PC 2024-07.

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 the approved gross receipts quarterly community benefit rate. 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- Ordinance No. 945
Exhibit 2 — Development Agreement No. 2023-077
Exhibit 3- Resolution #PC 2024-06- CUP 2023-077
Exhibit 4- Resolution #PC 2024-07- DA 2023-077
Exhibit 5 — Los Angeles County Assessors Map
Exhibit 6 — Site Plan
Exhibit 7 — Floor Plan
Exhibit 8 — Elevations
Exhibit 9 — Roof Plan
Exhibit 10 — Drive Aisle Width Requirement Modification Exhibit 11 — Loading Zone Requirement Modification
Exhibit 12 — Radius Map: 500, 600, and 1,500 -foot.

Exhibit 13 — Lighting Plan
Exhibit 14 — Odor Mitigation Plan
Exhibit 15 — Security Plan
Exhibit 16 — Public Hearing Notice
Figure 1 - Restriced Area
APPROVED ELECTRONICALLY BY:

Lloyd Pilchen, Deputy City Attorney for Rick R. Olivarez, City Attorney Gustavo Romo, Deputy City Manager/ Community Development Director Exhibit 2 20

ORDINANCE NO. 945

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL

GARDENS AND STIIIZY BELL GARDENS, LLC, AND EASTERN GAGE, LLC RELATING TO REAL PROPERTY LOCATED AT 5726 GAGE

AVENUE IN THE CITY OF BELL GARDENS
WHEREAS, the City of Bell Gardens ("City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, the City Planning Commission, on June 19, 2024, considered and recommended that the City Council of Bell Gardens approve the development agreement by and between the City and Stiiizy Bell Gardens, LLC( Development Agreement), which Development Agreement is hereby incorporated by reference, and which is hereby incorporated into the provisions of this Ordinance; and WHEREAS, after due notice, the City Planning Commission and the City Council did conduct public hearings on this matter; and
WHEREAS, pursuant to Government Code sections 65864, et. seq, and City Council Resolution No. 2023-043, the ' City Planning Commission transmitted to the City Council its findings and recommendations; and
WHEREAS, the Development Agrees
with the City's General Plan; and
WHEREAS, Policy No. 1 of the General Plan's Land Use Element emphasizes the City's commitment to open communication and seeking public input; and WHEREAS, the deliberation of the Ordinance has been subject to a public hearing process that has been duly noticed for the purpose of seeking public input and participation and community members will continue to provide public input for individual projects resulting from ordinance implementation and is therefore consistent with Policy No. 1; and
WHEREAS, 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; and
s in the public interest and is consistent
WHEREAS, the Project proposes to reactivate a currently vacant commercial building resulting in a cannabis retail storefront thereby enhancing the economic viability of the surrounding commercial areas and is therefore consistent with Policy No. 3; and Exhibit 2
2l

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; and WHEREAS, the Development Agreement encourages long term investment by permitting a cannabis retail use for a term of up to ten (10) years and has otherwise complied with all applicable state and local environmental requirements and is therefore consistent with Policy No. 4; and
WHEREAS, 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; and WHEREAS, the introduction of a cannabis retail use will promote an economic diversity of the City's commercial zone in order to ensure community stability and economic vitality of existing businesses and is therefore consistent with Policy No. 5; and WHEREAS, the City Council has reviewed and considered the Development Agreement and the Findings and recommendations of the City Planning Commission.

NOW THEREFORE, THE PEOPLE OF THE CITY OF BELL GARDENS DO ORDAIN AS FOLLOWS:

Section 1. The recitals se
incorporated by reference, in full, herein.

Section 2. The City Council finds,
that:
h above are true and correct and hereby
espect to the Development Agreement,
(i) Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;
Promotes the pu
h, safety, and general welfare;
(iii) Is just, reasonable, fair, and equitable under the circumstances; and (iv) Provides su
agreement.
benefit to the community to justify entering into the
Section 3. The City Council hereby approves DA No. 2023-077 and authorizes the City Attorney to approve as to form and make clarifying changes and further authorizes and directs the Mayor to execute the development agreement in the name of the City of Bell Gardens.

Section 4. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted Exhibit 2 28

Section 5. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED AND ADOPTED this day of

APPROVED AS TO FOR
Stephanie Vasquez
City Attorney
, 2024.

THE CITY OF BELL GARDENS
Gabriela Gomez, Mayor
ATTEST:

Daisy Gomez
City Clerk
, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on , and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Daisy Gomez, City Clerk
Exhibit 2 20

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL
TO:

City of Bell Gardens
City Hall
7100 Garfield Ave.

Bell 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. 2024-077

BETWEEN

THE CITY OF BELL GARDENS
AND
STIIIZY Bell Gardens, LLC
Exhibit 2 2k

This DEVELOPMENT AGREEMENT ("Agreement") is dated as of , 2024 by and among the City of Bell Gardens (the "City"), STIIIZY Bell Gardens, LLC ("Developer") and Eastern Gage, LLC (the "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 § 1.1.362.7 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 Bi11 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 2
2�

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;
Exhibit 2
233

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;
WHEREAS, Developer has a leasehold interest in that certain real property located at 5726 E. Gage Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Number ("APN") 6330-015-024 (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 permitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the Property Owner for the purpose of carrying out the Project; WHEREAS, the Property Owner has provided notarized written consent to: (1) all terms 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 theBell 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. pending City Council's approval of this Agreement;
WHEREAS, on , 2024, pursuant to Government Code Section 65867 and the City Development Agreement Procedures, the City Council, following a duly noticed and conducted public hearing, reviewed, considered, and approved Conditional Use Permit No. 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 Exhibit 2

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 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
Exhibit "F"
Conditional Use Permit No. 2023-077
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 Permit and the Business Regulatory Permit. c. "Agreement" means this Development Agreement and all Exhibits attached hereto.

Exhibit 2
215:$

d. "Annual Community Benefits Fees" has the meaning set forth in Section 4.2(b) 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. 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 proj ect;
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 permissible 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.

Exhibit 2

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 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.
. "Complaining Party" has the meaning set forth in Section 8.2 of this Agreement. x. "Conditional Use Permit" means a conditional use permit and associated conditions of approval as set forth in Exhibit "F" and 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).
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 STIIIZY 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.

Exhibit 2

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. hh. "Force Majeure" means one or more of the following events: governmental regulations, environmental controls, zoning restrictions, eminent domain proceedings, energy blackouts, war, civil commotions, acts of terrorism, fires, earthquakes, floods, acts of God or other casualty events, strikes, lockouts, unavailability of material or labor, acts of third parties, or similar causes or material interference with Developer's ability to perform its contractual obligations pursuant to this Agreement beyond the reasonable control ofDeveloper. ii. "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 performance 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. jj. "Project" has the meaning as set forth in the Recitals, above. kk. "Property Owner" has the meaning as set forth in introductory paragraph to this Agreement, above.

11. "Marijuana" has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.

Exhibit 2

mm. "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.
nn. "MCRSA" has the meaning set forth in the Recitals, above. oo. "Mortgage" has the meaning set forth in Section 6.1 of this Agreement. pp. "Non -Payment Penalty" has the meaning set forth in Section 4.7 of this Agreement. qq. "Notice of Non -Payment Penalty" has the meaning set forth in Section 4.7 of this Agreement.
rr. "Planning Commission" means the City of Bell Gardens Planning Commission as described in Bell Gardens Municipal Code Chapter 2.24.
ss. "Project" has the meaning set forth in the Recitals, above. tt. "Quarterly Report" has the meaning set forth in Section 4.6 of this Agreement. uu. "Site" has the meaning as set forth in the Recitals, above. vv. "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.
ww. "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. xx. "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. yy. "Term" 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 byDeveloper 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 Exhibit 2

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 up to a five-year extension term not to exceed a total of ten (,10) years, inclusive 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 term. 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: Developer understands and acknowledges 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, may 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 (1.0) years. The Parties agree that in the event Resolution No. 2023-043 is amended or revised to allow that the total Term exceed ten (10) years, the Parties may, by mutual agreement further extend the Term of this Agreement to the extent permitted pursuant to Resolution No. 2023-043, as provided in Section 1.10.
c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.

Developer Initials
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. theDeveloper has ceased all operations related to the Project on the Site for more than sixty (60) consecutive days without documentation of Developer's attempt to commence operationshowever, in the event that operations have ceased due to i) building renovation or repairs that render the building unable to engage in operations, or ii) Force Majeure. Determinations that operations must cease due to building Exhibit 2
it)

renovations or repairs shall be in the sole and absolute discretion of the Building Official and shall not exceed one (1) year so long as Developer provides notice to the City within fifteen (15) business days of the interruption of operations. This notice shall include the reason for the temporary cease in operations and Developer's estimated timeline for reopening;
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 permit, certificate of occupancy, temporary certificate of occupancy or similar document pursuant to Bell Gardens Municipal Code Section 5.64.040(K);
f. revocation of Developer's Conditional Use Permit due to a failure to abide by its conditions of approval (Exhibit "F"), incorporated by reference herein, pursuant to the process provided in 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;
j•
unauthorized assignment of interest of the Developer in the Project or in the Site pursuant to Section 9.1 of this Agreement;
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 Benefit Fees, 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.

Exhibit 2

Section 1.12. Survival of Certain Terms. The rights and obligations of the Parties which arise under Sections 1.11, 5.5, 5.6, 5.7, 5.8, 9.2, 9.3, 9.4, and 9.6 of this Agreement and any right or obligation of the Parties in this Agreement, which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination.

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 Permit, 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 Be11 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 theDeveloper 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. Developer and Property Owner shall adhere to all of the conditions of approval set forth in Conditional Use Permit No. incorporated by reference herein (Exhibit "F"). Failure to comply with such conditions of approval shall constitute a breach of this Agreement.

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 Bell 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.

Exhibit 2

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 Be11 Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system. 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 Be11 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 this Agreement.

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 approval of this Agreement 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 Exhibit 2

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 state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Be11 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, and inquiries and requests made by Developer or Property Owner, 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, including but not limited to procedures to revoke or terminate any interest or rights associated with the Project; 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 Exhibit 2

applicable and do not impose a severe and significant financial burden on the Developer or materially delay the development or carrying out of the Project as contemplated in this Agreement.

ARTICLE 4

COMMUNITY BENEFITS, COST RECOVERY, RECORDKEEPING, REPORTING,

AND PROCESSING
Section 4.1. Intent. The Parties acknowledge and agree that this Agreement confers substantial private benefits on theDeveloper that will place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced with commensurate with "Annual Community Benefits Fees" and "Quarterly Community Benefits Fees" for the community (collectively, "Community Benefits").

Section 4.2. Community Benefits. In addition to Developer's obligation to reimburse the City for certain costs through its Cost Recovery Fees, Developer shall be obligated to pay to the City the "Community Benefit."
a. "Quarterly Community Benefits Fees." Within fifteen (15) 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 seven percent (7%) 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) on or before the Effective Date of this Agreement. Each following calendar year, the Developer shall make further payments to the City in the amount of One Hundred Thousand Dollars ($100,000) no later than January 15`" of each subsequent calendar year. c. In accordance with the Development Agreement Procedures, no less than eighty percent (80%) of the 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.
i. 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. ii. 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.

Exhibit 2

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 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 Bell Gardens Municipal Code and Business Regulatory Permit, 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. 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 determination 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.

Exhibit 2

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 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 past due Community Benefits or Costs Recovery Fees, as applicable, and 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 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 Benefit Fees shall be maintained in accordance with California Cannabis Laws.

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. Commercial Property Insurance. Developer shall maintain commercial property insurance with coverage in an amount not less than $1,000,000 per occurrence, and $2,000,000 general aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted. 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 5.3. 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' Exhibit 2

compensation insurance for its respective employees. Developer indemnification of City set forth in Section 5.5 of this Agreement shall apply to Developer's failure to maintain any such insurance.

Section 5.4. Evidence of Insurance. Evidence of the insurance in favor of the City required under Section 5.1 shall be provided to the City's Risk Manager as of the Effective Date.

Thereafter, no Business Regulatory Permit for the Project shall be valid unless and until Developer furnishes satisfactory evidence of the other insurance required in Article 5 of this Agreement.

Current certification of insurance shall be kept on file with the City for the contract period and any additional length of time required thereafter. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 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.

Section 5.5. 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 Initials Property Owner Initials
Section 5.6. 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 5.6 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 Exhibit 2

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 5.7. 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 Permit, and Additional City Approvals, which shall entitle the City to all remedies available under law, including, but not limited to, specific performance and damages. Failure to indemnify shall constitute grounds upon which the City may rescind its approval of any entitlement, permit, or license related to the Project, or any portion thereof, and a waiver of Developer 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 Permit, and Additional City Approvals, or City's failure to defend any claim, action, or proceeding based upon Developer or Property Owner's failure to indemnify the City.

Section 5.8. 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 whichDeveloper 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 5.9. 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 Exhibit 2

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 5.10. 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.

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.

Exhibit 2

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:
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 (1.0) 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 ninety (90) 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 terminate 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 terminate or modify this Agreement, theDeveloper 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 Exhibit 2

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 terminated and is enforceable in accordance with its terms and conditions.
b. The City may recover its actual and reasonable costs and attorneys' fees in connection with the timely dealing of any such estoppel certificate. City shall provide Developer with a written invoice of such costs to be paid by Developer within thirty (30) days of issuance.

ARTICLE 9

ADDITIONAL GENERAL/MISCELLANEOUS PROVISIONS
Section 9.1. Assignment.
a. City Council Approval Required. 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, firm, corporation, partnership, or entity during the Term 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 Bell 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.

Exhibit 2

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 Be11 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. Assum 3tion 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. All notices permitted 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 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:

Exhibit 2

DEVELOPER:

STIIIZY Bell Gardens, LLC
2001 S Alameda St.

Los Angeles, CA 90058
Attn: Tak Sato
(310) 488-5707
[email protected]
PROPERTY OWNER:

Ram Pandey
18051 Pointe Arguello PI.

Cerritos, CA 90703
CITY:

City of Bell Gardens
7100 Garfield Ave.

Be11 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 term or provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, any provisions that are not invalid or unenforceable shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this Agreement on the basis that this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this Agreement is not required because the Agreement is invalid, unenforceable, or illegal.

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 2

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 term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.

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 permissive.

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 2

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 2

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 STIIIZY Bell 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
Eastern Gage, LLC
[Notarized Signature Required]
By:

Name:

Title:

Date:

Exhibit 2

EXHIBIT "A"

LEGAL DESCRIPTION OF SITE
Exhibit 2

EXHIBIT "B"

SITE PLAN
Exhibit 2
ig

EXHIBIT "C"

FLOOR PLAN
Exhibit 2
60 EXHIBIT "D"

PROPERTY OWNER'S CONSENT AGREEMENT
Exhibit 2
86 EXHIBIT "E"

SECURITY PLAN
Exhibit 2

CONFIDENTIAL
A copy of the Security Plan is on file with the Bell Gardens Police and Community Development Department
Exhibit 2

EXHIBIT "F"

CONDITIONS OF APPROVAL
Exhibit 2

Exhibit 2

RESOLUTION #PC 2024-06

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS APPROVING CONDITIONAL USE PERMIT NO. 2023-077
WHEREAS, Tak Sato of STIIIZY 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, the Applicant proposes tenant improvements to an existing, vacant two- story 5,824 square -foot (SF) commercial building located at 5726 Gage Avenue (Subject Site), for an approximately 4,615 SF first floor area for the development of the proposed storefront cannabis retail use, an approximately 1,209 SF second floor for storage purposes only, a maneuvering aisle modification to 13.5 feet (13.5') and minimum required loading area to 23 feet, six inches (23'6") depth by 10 feet, eight inches (10'8") width subject to conditions of approval and an ordinance to approve a DA authorizing the entering into an agreement to establish certain development rights in exchange for public benefits (Project) at 5726 Gage Avenue (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 provisions 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 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 Exhibit 2 66

Resolution #PC 2024-06

Page 2 ends

in exchange for public benefits;
WHEREAS, the approval of CUP No. 2023-077 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 reactivate currently vacant commercial building at the Subject Site into a new commercial use, 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 consistent with Policy No. 5 because it would involve the redevelopment and reactivation of a commercial site;
WHEREAS, the Project is also consistent with Policy No. 5 because it would add potential stability to the area through increased property values associated with the proposed improvement and renovation of an existing vacant commercial building and the conduct of well -run businesses could impact other businesses for increased area economic viability;
Exhibit 2 66

Resolution #PC 2024-06

Page 3 ends

WHEREAS, the approval of CUP No. 2023-077 would not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare of the community because the Project would reactivate, revitalize, and reinforce the security to an existing vacant commercial development;
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 Bell Gardens Municipal Code (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 (collectively 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 11,200 square feet (SF), rectangular in shape, and is currently developed with a 5,824 square foot commercial building with no additional floor area proposed 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 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;
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 Exhibit 2 62

Resolution #PC 2024-06

Page 4 ends

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 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 of and establishing the procedures and requirements for the consideration of development agreements within the City for a cannabis retail use; WHEREAS, the Project involves tenant improvements to 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 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 Sections 65090 and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on June 19, 2024, and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-077 and a proposed ordinance approving a development agreement authorizing the Project and to impose a lifespan in exchange for public benefits; WHEREAS, on June 19, 2024, the Planning Commission held a public hearing and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023- 077 and a recommendation to approve an ordinance to enter into and execute 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. 2023-077 to authorize a cannabis retail use at the Subject Site; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2024-06, conditionally approving CUP No. 2023-077.

NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINE, FINDS AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated in full, herein.

Exhibit 2 68

Resolution #PC 2024-06

Page 5 ends

SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2023-077:

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.

Does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare.

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- 077 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. 2023-077 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 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. [Signatures on following page]
Exhibit 2 69

Resolution #PC 2024-06

Page 6 ends

PASSED, APPROVED AND ADOPTED this 19th day of June 2024.

MIGUEL DE LA ROSA, CHAIRPERSON
ATTEST:

ERIKA GUTIERREZ, PLANNING SECRETARY
APPROVED AS TO FORM:

LLOYD PILCHEN, ASSISTANT CITY ATTORNEY
Exhibit 2 00

Resolution #PC 2024-06

Page 7 ends

EXHIBIT "A"
CUP NO. 2023-077 - 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 16 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. 2023-077.
d. The terms and conditions set forth in DA No. 2023-077.

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. 2023-077 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. 2023-077 shall be valid strictly for a state Department of Cannabis Control (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, finalized job card 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.

Exhibit 2 02

Resolution #PC 2024-06

Page 8 ends

All rights hereunder shall terminate within eighteen (18) months from the date of issuance of the first building permit for the Subject Site after the approval of CUP No. 2023-077 unless DA No. 2023-077 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. 2023-077 shall be valid strictly in compliance with DA No. 2023-077; any privileges granted hereunder shall become null and void should there be a violation hereof.

The abandonment or non -implementation of the conditions stated in this CUP No. 2023-077 for a period of one (1) year from the effective date of the CUP shall terminate the CUP, and any privileges granted hereunder 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. 2023-077, 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. 2023-077 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. For the purposes of this condition, "building permit" shall have the same definition as BGMC Section 9.20.160(D).

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. For the purposes of this condition, "building permit" shall have the same definition as BGMC Section 9.20.160(D).

Exhibit 2 02

Resolution #PC 2024-06

Page 9 ends

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. 2023-077 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.

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 of 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. 2023-077 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 at all times and for the life of the permit. Any graffiti that should appear on buildings, walls, or other private property on the Subject Site shall be removed within forty-eight Exhibit 2 08

Resolution #PC 2024-06

Page 10 ends

(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 shall be fully planted, where applicable, and off- street parking areas shall remain maintained (free from debris, litter, and wilted or dead 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 15) 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 Exhibit 2 ��

Resolution #PC 2024-06

Page 11 ends

presentation of a valid government -issued identification card or eighteen (18) and older with a physician's recommendation.

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.

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 Exhibit 2 06

Resolution #PC 2024-06

Page 12 ends

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 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 15 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 13, 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 14 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 Exhibit 2 00

Resolution #PC 2024-06

Page 13 ends

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.

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 does not include any 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 pursuant to Section 9.48.030 of the BGMC. 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 Exhibit 2 OE

Resolution #PC 2024-06

Page 14 ends

clear, untinted glass. Mirror, reflective, or tinted glass may only be permitted as an architectural or decorative accent 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 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.

60. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit revised floor plans showing the second story to be identified as storage purposes only.

61. 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.

62. 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.

63. The rolling gates located along the public alley ROW shall remain closed when business is not in operation.

64. 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.

65. 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.

66. 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.

Exhibit 2 08

Resolution #PC 2024-06

Page 15 ends

67. 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.

68. 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.

69. 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.

70. The Project shall maintain the existing six-foot high trash enclosure; if the Applicant rebuilds or reconstructs the trash enclosure in the future, it shall be constructed with a six-foot (6') -high split face concrete masonry unit block wall to match the proposed fences on the Subject Site. 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 and the same color as the existing building.

71. The Project shall adhere and maintain lighting at the Subject Site consistent with the submitted Lighting Plan (Exhibit 13).

Los Angeles County Fire Department (Fire Department)

72. The Applicant shall obtain all required Fire Department approvals and permits prior to commencing the construction of the proposed improvements on the Subject Site.

Exhibit 2 70

Resolution #PC 2024-06

Page 16 ends

For the purposes of this CUP, the term "construction" includes any demolition, grading, and construction activities.

73. Prior to Fire Department plan check, plans must be submitted to the City for initial review (i.e., fire sprinkler plans, etc.).

74. The Applicant shall ensure that fire protection facilities, including access, must be provided prior to and during construction. For the purposes of this CUP, the term "construction" includes any demolition, grading, and construction activities.

75. Prior to the issuance of a building permit, the Applicant shall conduct a fire flow test to determine if the existing water line serving the Project has adequate capacity for both potable water and fire flow and submit the results to the City of Bell Gardens Community Development Department. For the purposes of this condition, "building permit" shall have the same definition as Section 9.20.160(D) of the BGMC.

76. Prior to the issuance of a building permit, the Applicant shall submit two (2) sets of architectural plans to the Los Angeles County Fire Prevention Division, Building Plan Check Unit office located at 5823 Rickenbacker Road, Commerce, CA 90040.

Architectural Plans shall include, but not be limited to, a site plan, floor plan, elevations, door and window schedules and appropriate section details. The site plan, floor plan, and elevations shall be consistent with the plans attached as exhibits and incorporated by reference, herein.

77. The Applicant shall comply with all required conditions of approval established by the Fire Department. Additionally, the Applicant shall obtain all required Fire Department approval and permits prior to commencing the construction of the proposed improvements on the Subject Site. For the purposes of this CUP, the term "construction" includes any demolition, grading, and construction activities.

78. The site plan shall show all the existing fire hydrant locations within 300 feet of all property lines.

Public Works Department

79. The Applicant shall remove and replace curb and gutter on Gage Avenue. The Applicant shall be responsible for the cost of replacing any public improvements, including but not limited to removal and reconstruction of curbs, gutters, sidewalks, driveway approaches and streetlights. This condition must be satisfied prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent approval.

80. The Applicant shall remove and replace sidewalks on Gage Avenue to ensure ADA compliance to the satisfaction of the Public Works Department. This condition must be satisfied prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent approval.

Exhibit 2 BO

Resolution #PC 2024-06

Page 17 ends

81. The Applicant shall remove and replace any damaged utility boxes within the public ROW. This condition must be satisfied prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent approval.

82. All off -site improvements shall comply with the American Public Works Association (APWA) standard details.

83. The Applicant shall provide documentation showing the continued service of all required utilities, prior to the issuance of a building permit.

Parking LotlSite Maintenance

84. 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.

85. 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.

86. 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.

87. All designated parking spaces shall be striped in accordance with the BGMC and provided with concrete wheel stops at the front end of each parking space.

88. Any required ADA truncated domes shall be composed of stamped concrete and shall be a dark gray color.

89. 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. No device shall be loaned by the owner, employee, or patron of the business to assist in this effort.

90. Inoperable vehicles shall not be parked within any designated parking spaces, drive aisle, or public ROW adjacent to the Subject Site at any time.

Exhibit 2 B2

Resolution #PC 2024-06

Page 18 ends

91. Prior to issuance of a building permit, the Applicant shall submit fence/walls plans to the satisfaction of the Director of Community Development Department to the Community Development Department, Planning Division for review and approval in accordance with BGMC Chapter 9.32 (Fence, Walls, and Hedges).

92. Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, a suitable, functional design of a new perimeter masonry block wall along the east property line of the Subject Site shall be installed, where applicable, to the satisfaction of the Community Development Department. The existing masonry block wall at the west property line and metal fence at the rear property line 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.

93. 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.

Miscellaneous

94. The owner of the Subject Site, and 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.

95. The Applicant shall sign, notarize, and return to the Community Development Department an affidavit accepting all conditions of approval of this CUP No. 2023- 077 within fifteen (15) days from the approval of Resolution #PC 2024-06 and CUP No. 2023-077. 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 Exhibit 2 82

Resolution #PC 2024-06

Page 19 ends

within the prescribed time period above shall render this CUP null and void.

Exhibit 2 24

RESOLUTION #PC 2024-07

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL

GARDENS RECOMMENDING THE ADOPTION OF AN ORDINANCE
APPROVING DEVELOPMENT AGREEMENT NO. 2023-077
WHEREAS, Tak Sato of STIIIZY 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, the proposed ordinance would authorize the City to enter into a development agreement to establish certain development rights at 5726 Gage Avenue (Subject Site) in exchange for public benefits for a five (5) year term, with an option for an additional five (5) year extension, by and between STIIIZY Bell Gardens, LLC, Eastern Gage, LLC and the City in connection with a CUP authorizing a cannabis retail use, subject to 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 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 Element 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 locational requirements and development standards and the Subject Site is located within Zone M -U;
Exhibit 8�

Resolution #PC 2024-07
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. 2023-077 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 repurpose a vacant commercial property and provide additional commercial activity along a major corridor within the City limits;
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 would involve the revitalization of an existing commercial site;
WHEREAS, the DA 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; 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 Exhibit 86

Resolution #PC 2024-07
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. 2023-077 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, 2023-077 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 seven percent (7%) of gross receipt sales on a quarterly basis; WHEREAS, the Applicant agrees that the payment of Community Benefits Fees is 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, that would not result in additional floor area, on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other Exhibit 8O

Resolution #PC 2024-07
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 Sections 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on June 19, 2024;
WHEREAS, the Planning Commission 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 a proposed ordinance which would result in the approval of DA No. 2023-077 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 2024-07, recommending to the City Council the approval of Ordinance No. 945.

NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:
herein.
077:

SECTION 1. The above recitals are true and correct and are incorporated in full, SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2023 - Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;
Promotes the public health, safety, and general welfare; 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. 2023-077 through the adoption of an ordinance and authorizes the City Attorney to make clarifying changes as necessary to effectuate the terms of the DA.

Exhibit 8E

Resolution #PC 2024-07
SECTION 4. The Planning Commission hereby transmits and recommends to the City Council the approval of an ordinance to authorize DA No. 2023-077 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 19th day of June 2024.

MIGUEL DE LA ROSA, CHAIRPERSON
ATTEST:

ERIKA GUTIERREZ, PLANNING SECRETARY
APPROVED AS TO FORM:

LLOYD PILCHEN

DEPUTY CITY ATTORNEY
Exhibit 88

m
x
O
b3 0 15
AUTOUA E0
8900,98
BK
P,A. 6328-4 8 5
6328 Z
m L w
I-
w
100
J
6321
6351
COUNTY OF LOS�AN6ELES
COPYRIGHT © 1993
703/ 4
00400/-/2
51°za,n uGA,GE
d 5 82°27'50"E
890.75 FT FROM
NN (OR LOT A TR NO 356
..L0VELAND
r
PG
14 BK
6328
0 W
0 A 02°27'50 "W
ST2
O M Q
1 PG
16 Exhibit 5
80 ... STO P

E GAGE AVE

METRO BUS STOPS

VICINITY MAP

SUMMA RY
APN: 6330.015. 024
LOT AREA 11.200 SF

ZO NED M -U

GENERAL PLAN RC
GR OUND FLO OR 4 .615 SF
2ND FLOOR' 1.209 SF
' (AREA NOT IN PROJECT)

PARKING REQUIREMENT
1 PER 400 SF = 12 STA LLS RE OD

NO PARKING REQ' D
PARKING PROVIDED 9 STALLS (INCL. 1 ACCESSIBLE)
16 BICYCLE (EQUIVALENT OF 4 CAR STALLS)
TO TAL. PARKING PROVIDED
9 VEHIC LE
16 BICYCLE
PER SGMC 9.39.090,IB- UP TO4 CAR STALLS

MAY BE R EPLACED
NOTES: ALL PARKING SPACES SHOWN ARE NEW,
THER E ARE 6 N ON -CON FOR MIN G PAR KING SPA CES A LONG TH E BUILDING WA LL THAT WILL BE REMO VED AND 4 PARKING SPACES IN THE REAR PARKING AREA THAT WILL BE REM OVED AND RESTRIPPED.

THE NEW PARKING LOT WILL CONFO RM TO CURRENT CODE,

STIIIZY
NOT IN
SCO PE
, Cs PER
iNc,A SCOPE)

PARKING STALL
(E) 6' HIGH BL OCK WALL

LOADING ZONE
252 S,
(E L c'.0' Or FENCE

E NTRY,
EXIT
EWA`,

SITE PLAN

STIIIZY

BELL G ARDENS
5726 GAGE AVE
BELL GARDENS, CA 90201

YEW LOCA TION

6.0- HI SEC,RIT
(E) 20' WIDE ALLEY

TER TO REMAIN

P ARKING STALLS ,I,
N OTE: ALL 6 PARALLEL P ARKI NG S TALLS
0" HT FENCE
A2586
NOT IN
SCOPE
NOT IN
SCOPE
9431 HAVEN AVE, SUITE 212
RANCHO CUCAMONGA, CA 91730
909 .259 .9971 TEL.
909.944.8409 FAX.

CUP REVIE

C ELEC .
(H) T RASH
ROO M

LO ADING /

UNLO ADING
ROOM
;SF

G ROUND FLOOR PLAN

SEC URED

INVENTO RY
ROOM
BREAK
ROOM
RAMP 20

JNCER STAIR STORAGE

CA SFT OOM

ON -CANNABIS

STORAGE
150 SR .

MANAGERS
OFFICE
50 SF.

SEC OND ._00F2
( E)COLL. , TYP_
RETAIL SA.S AREA
L
N OTE
i. ALL NINC OWSI DOOR TO CE"IN-FILL "AND AD DED
TRANSPARENT SECURITY 1 LM.

2. ALL STRUCTURAL BEAMS AND C OLUMNS TO R =M NN

RECEPTION SF
TI

ADDEO NEW TRANSPARENT
SECURITY FILM TO . AZING

STIIILY
82 STIIIZY

BELL GARDENS
A2586
5726 GAGE AVE
BELL GARDENS, CA 90201 2023.10 .02
9431 HAVEN AVE, SUITE 212
RANCHO CUCAMONGA, CA 91730
909.259 .9971 TEL.
909 .944.8409 FAX.
www .AmorArch .com
A2.0
© 2023 AMOR ARCHITECTURAL CORP ORATI ON -Ail Rights Reserv ed (NOT FOR CONSTRUCTION)
CUP REVIEW: 2023_10_08

NOT PART OF

PROJECT
NOT E
' SECOND F OOR AREA M.. NOT BE JSED.

SECO ND FLOO R PLAN

STIIILY

STIIIZY

BELL GARDENS
A2586
5726 GAGE AVE
BELL GARDENS, CA 90201 2023.10 .02
9431 HAVEN AVE, SUITE 212
RANCHO CUCAMONGA, CA 91730
909.259 .9971 TEL.
909 .944.8409 FAX.
www .AmorArch .com
A2.1
O2023 AMOR ARCHITECTURAL CORP ORATI ON -MI Rights Reserv ed (NOT FOR CONSTRUCTION)
CUP REVIEW: 2023_10_08

�oA�AaR�=
EXTER IOR ',VALET° _
ATFNISH, G q
WEPT

HT, RO SE TOR UNI T
S
'it' _

EXISTING MO ON , TO
REmA iN CLEA N A ND REPA IR

E TO DE
F AINT ED"SLAWEXTER IOR EGI
IFS

ADJACENT

NORTH ELEVATION
(E GAGE AVE. )

NG ENTRY DO OR TO

AIN CI EAN AND REPAIR

TOP INEM IGAG CONDITION

D OO RAKAPM FAINTED
-BLACK
0 TO

REMAIN CI EAR AND REPAIR

WINDOW FRAME P AINTED

EXISTIN G WINDOW TO

RE MAIN CLEAN AND REPAIR
WIND OW Ph, EAi RTEe
eJA
OTHE
ST= —

EXTERI OR WA-
70 BE

FAINTED ',HES GRAMME-,
(FLAT FINIS ,

EXISTING WINDO M TO

REMAIN CIGAN ANS REPAIR

NEV M CONDITI ON,
,'M =>AiNT�
�.

EXTERI OR

SIDIN G
t AT iNs�� A. BEPA�TE ,WE ORAr� M
{FL

TXTF RI OR MG TO BE
FAINTED "SLAG

EXISTIN G SUSI G DOOR TO

RE MAIN CI,E A AND REPAIR

1. 00

EXTER IOR ELEVATIONS

O PTIO N A
1IIIIIIIIIIIIIIIII

SOUTH ELEVATION

DOOR FRAME PAINTED

EXIS TIN G ROOFIN G

TO REMAIN

EXTE RIOR WAG TO

PAINI ENVIES

GRAXGRAM
( PLAT FINISH,
TO SEkPES

EXISTING DOORS TO

REMAIN CI CAN AN D REPAIR

D OOR PRA ME PAINTED

SCALE WEI,'
0 2 4 B

STIIILY

STIIIZY

BELL GARDENS
A2586
5726 GAGE AVE
BELL GARDENS, CA 90201 2023.10 .02
9431 HAVEN AVE, SUITE 212
RANCHO CUCAMONGA, CA 91730
909.259 .9971 TEL
909 .944.8409 FAX
www .AmorArch .com
A3.0
02023 AMOR ARCHITECTURAL CORP ORATI ON -MI Rights Reserv ed (NOT FOR CONSTRUCTION)
CUP REVIEW: 2023_10_08

---1
I M>ROOF TOP U IT I
EXTE RIC, VVAL, TO 5E

PAINTED
N WE;`
$ gI>H FLO OR
,N,-x„�ORV ON AO E
EXISTING WINDOW TO REMAIN. CLEAN
AN D WINDOW FR AME MEPA *I PAWED ,R
Q
Hem

EAST ELEVATION
, =, SEC URI TY
DORE MAIN . TO BE ORT 0
i ,N>RO OF TOP UNI T
I4y
EATER. SIGNAGE
EXT (FLE RI OR ,°as

EXTERIO R ELEVATIONS

OPTION A

TING WINDOW TO

WIND OW

N OW( SAE PAINTED

EXISTING ENTRY D OORS TO
RE MAIN a FAN A. REPAIR
70 "LIKE -NEW . C ONDITION

D OOR FRA ME P AINTED
02 4

STIIILY

STIIIZY

BELL GARDENS
A2586
5726 GAGE AVE
BELL GARDENS, CA 90201 2023.10 .02
9431 HAVEN AVE, SUITE 212
RANCHO CUCAMONGA, CA 91730
909.259 .9971 TEL.
909 .944.8409 FAX.
www .AmorArch .com c p aro�
A3.1
© 2023 AMOR ARCHITECTURAL CORP ORATI ON -Ail Rights Reserv ed (NOT FOR CONSTRUCTION)
CUP REVIEW: 2023_10_08

SOEEN FOR AC
ROUNDED NTH SCREEN.

SURR W N0Eo1Mrvl SCREENoNN
REFER TS SAM PI.E PHOT O.

ROOF PLAN

STIIIZY

BELL GAR DENS
A2586
5726 GAGE AVE
BELL GARDENS, CA 90201 2023.10 .02
9431 HAVEN AVE, SUITE 212
RANCHO CUCAMONGA, CA 91730
909.259 .9971 TEL.
909 .944.8409 FAX.
www .AmorArch .com
A4.0
© 2023 AMOR ARCHITECTURAL CORPORATI ON - NI Rights Reserv ed (NOT FOR CONSTRUCTION)
CUP REVIEW: 2023_10_08

Gustavo Romo
Community Development Director
Bell Gardens Community Development Department
7100 Garfield Ave
Bell Gardens, CA 90201
RE: Modification to development standards for Conditional Use Permit NO 2023-077 Mr. Romo,
Pursuant to BGMC Section 9.38.070, STIIIZY Bell Gardens LLC, the applicant for CUP NO -2023-077 proposing to locate at 5726 Gage Ave, would like to request a modification to the aisle and/or driveway standards outlined in Chapter 9.38 for Off -Street Parking standards and the 14' Aisle width standard. As shown in our site plan, our driveway width from the ADA path to the parking space is 13.5'. We do believe that our proposed parking and circulation layout will be sufficient and will not restrict traffic flow in any way while still being able to utilize the existing improvements and site conditions.

Respectfully,
Tak Sato,
President, STIIIZY Inc.

A
IA
SI
Exhibit 20 86

STIIIZY
City of Bell Gardens Planning Commission
7100 Garfield Ave
Bell Gardens, CA 90201
RE: Modification to Loading Facilities requirement for Conditional Use Permit NO 2023-077 Bell Gardens Planning Commission,
Pursuant to BGMC Section 9.38.110, STIIIZY BeII Gardens LLC, the applicant for CUP NO -2023-077 a proposed cannabis retail storefront at 5726 Gage Ave, would like to request a modification to the Loading Facilities requirement. We are working to repurpose the existing building and as a result there are site width constraints that restrict our ability to designate a loading zone with a 25' depth. As shown in our site plan, we are including a loading zone with a 23'-6" depth with overall square footage of 252 square feet. We are confident that our proposed loading zone will exceed our operational needs as our delivery vans have a length of 19.5'. We respectfully request that the Planning Commission approve our modification request with our Conditional Use Permit.

Respectfully,
(l,
Tak Sato,
President, STIIIZY Inc.
2001 S01JHHALMECA5 _
Exhibit 21
ltE
.818 SA C 1ES C JJFURNA9U058

SCALE: 1" =200'

RADIUS / LAND USE MAP
5726 E GAGE AVE
BELL GARDENS, CA 90201
APN: 6330-015-024
500, 600, & 1500' RADIUS SHOWN
DATE: 08-11-2023
Centetprtint
R..dius Maps
Exhibit 2
Exhibit 12 89
98 Exhibit 2
9 (E) n=0" HT FENCE
(E) 20' WIDE ALLEY

NEW LOCATION FOR (ET
E'-0'" HT SECURITY GATE
WITH 19-0" WIDE OPENING
El 6"-0" H

Because no packaging or other manufacturing of cannabis will be conducted at this site, odor will not affect the surrounding area as long as all of our odor mitigation practices are followed.

4.1.' POTENTIAL SOURCES OF ODOR
Cannabis flower and cannabis flower in pre -rolls are the only products which we will carry at our facilities which will have the potential to have any odor since the edibles, oils, tinctures and other products do not emanate any smell. The potential sources for odor from these products include the Inventory Room, Retail Sales area, and any safe in which cannabis goods are stored. Packages will be checked daily to ensure that they are properly sealed and packaged so that they are not emanating any smell.

Page 52 of 59 ends

Exhibit 24
900

STIIIZY Bell Gardens will not allow raw flower to be packaged on -site which will substantially reduce the risk of any odors emanating in the area. Loiterers, customers, and staff will be prevented from smoking or otherwise consuming any cannabis products on or around the facility, which will also reduce the likelihood of any odors. Any customers who are found consuming cannabis on or near the facility will be prevented from shopping at our store again. Our security guards will also surveil the parking lot area to prevent customers from consuming any cannabis products in their cars or otherwise on or near the facility.

When inventory shipments are received and are being taken into the Inventory Room, STIIIZY Bell Gardens will utilize odor -neutralizing materials such as enzymatic catalysts which can degrade odorous compounds. These materials will be applied to surface areas throughout the facility to reduce the risk of any odors.

In summary, the raw cannabis flower and pre -rolls located on the Retail Sales area and Inventory Rooms are the main potential sources of cannabis odor. The odor mitigation practices and the devices and techniques described below shall prevent any such potential sources of odor from causing odors inside or outside of the facility.

4.2. ODOR CONTROL DEVICES AND TECHNIQUES
STIIIZY Bell Gardens' odor control plan ensures odors from cannabis are not detectable beyond the licensed premises. The first step of STIIIZY Bell Gardens' air quality management and odor mitigation plan will be to employ adequate heating, ventilation, and air conditioning ("HVAC") systems. STIIIZY Bell Gardens will work with licensed engineers to assess and improve any existing HVAC system at the proposed location to ensure superior air quality and mitigate any odors that result from the proposed retail space.

STIIIZY Bell Gardens will replace and maintain the highest quality carbon filters to provide clean air for all employees and consumers. In addition to the HVAC system, STIIIZY Bell Gardens will engage with a local mechanical engineering firm to assess the facility, identify opportunities for improvement, and increase air quality and odor capture. Improvements may include but will not be limited to: (i) air handler selection so outside air can be conditioned and brought into the space without recirculation of smell into the occupied environment; (ii) dedicated systems for each area of the facility that engages in a different odor level; (iii) air filtration and purification so exhaust and supply air does not negatively impact neighbors or customers; and (iv) the use of carbon air filters or scrubbers.

Air Pressure
STIIIZY Bell Gardens will utilize carbon filter exhaust system that will keep the facility under negative pressure so that the odors generated inside the business will not be detectable on the outside of the business or at any of the properties in the immediate surrounding area. The exhaust discharge shall be designed with a high velocity outlet to eject the exhaust up and away from any neighbors or pedestrian traffic.

Carbon Filters
We believe that the best filtration system for cannabis facilities is carbon filtration. The various inventory, retail and storage areas will all be separated from other areas, allowing for odor control methods to be specific to the activity being performed. The carbon -filtered ventilation will utilize the Koch Filter DuraPURE, which is used in cigar lounges, airport facilities, chemical plants and other businesses which require a high-powered air filtration system.

The DuraPURE utilizes premium grade granular 60% activated carbon and its unique V-shaped frame holds up to 26 pounds of activated carbon.

Page 53 of 59 ends

Exhibit 24 901

DuraPURE Construction
and Technical Data
Activated Coconut Shell Carbon
Premium grade 50% activated carbon
provides maximum adsorption of V©C's and odors
(other specially impregnated medics are also available). ....................

Individual Media Cells
Moisture resistant honeycomb carbon cells
offer high efficiency contaminant removal, with
relatively low resistance to airflow.

Plastic and Metal Frame Components
Rugged components make the DuraPURE
extremely rigid and easy to install. Single or
double header available.

Thermoplastic Hot•Meh Adhesive
Specialized sealant eliminates air
bypass and secures the individual
carbon cells within the frame.
qualifies as a Koch Green Product
The Koch Green icon identifies the
DuraPURE as a product that meets or
exceeds our criteria in one or more of
the following categoriesi Earns LEED
Points, Reduces Energy Costs, Extends
Filter Lifecycles, Conserves Resources
and/or Improves Indoor Environmental
Quality.

Portable, carbon -filtered recirculating Can-Lite 14" x 40" (SKU: 358598) fans will further minimize or eliminate odors in the inventory room and retail area, and will be placed near access points such as doors.

This combination of carbon exhaust air filtration and building pressure control is currently the most innovative technology available.

Air Design Technique
The facility shall have no operable windows and will be kept locked and sealed at all times. All doors shall be sealed with proper weather stripping, keeping circulating and filtered air inside the facility. As mentioned previously, our employees will be trained to confirm that all doors and windows are properly closed, locked, and sealed.

Additionally, our Standard Operating Procedures require that employees check our products on a daily basis to ensure they are properly sealed and not emanating any odors. Our security guards and employees also vigilantly check for any consumption in the parking lot or near the vicinity of our facility. Our employees are also trained to detect any odors outside of the facility and to track the source of any odors which are detectable outside. Our professional HVAC specialists are engaged if we are not able to get rid of the odor within 24 hours. These techniques and our comprehensive odor mitigation system have successfully kept all our locations free of emanating cannabis odor.

4.3. STAFF TRAINING AND SYSTEM MAINTENANCE PLANS
Staff Training
STIIIZY Bell Gardens' employees are required to check all inventory of cannabis products to ensure that all packages are properly sealed and packaged so that they do not emanate any odors. Because oils, edibles and other manufactured goods do not emanate any cannabis odor, employees will be trained to pay special attention to the

Page 54 of 59 ends

Exhibit 24 902

packaging of raw flower and pre -roll flower to ensure they do not have any damage or openings and no odor is emanating from them.

Additionally, employees will be required to check that all windows and doors (other than the main customer entrance which remains unlocked during operation hours) are properly locked, closed and sealed. The HVAC system, negative air pressure, and the carbon filtration system, which were previously described, will ensure that all air passes through the carbon filtration system and only through the roof outlets.

Security guards and our employees will be trained to ensure that people are not consuming any cannabis products within the store or within the general area of our facility. Signs will be posted throughout our facility that consumption of cannabis on our property is prohibited and against the law. Our security guards will also conduct perimeter walks to prevent loiterers from consuming cannabis on our parking lot or in the area around our parking lot. By preventing loiterers and customers from consuming cannabis on or around our facility, we will prevent a common source of cannabis odor which plagues other cannabis dispensaries.

In addition to the preventative practices described previously, STIIIZY Bell Gardens will train employees on how to detect, prevent, and remediate odor outside its facility. Employees will also be aware of all corrective options available. Employees who detect any odors or are made aware of any odors are trained to do the following:
• Investigate the likely source of the odor.
• Utilize on site management practices to resolve the odor event. • Take steps to reduce the source of objectionable odors. • Determine if the odor traveled offsite by surveying the perimeter and making observations of existing wind patterns.
• Document the event for further operational review.

Record Keeping Systems and Forms
Staff will keep meticulous records with respect to
the HVAC system and carbon filters to ensure
maintenance and quality control checks are
performed regularly. All the following must be
documented in our company database: (i) records
of purchases of replacement carbon filters; (ii)
performed maintenance tracking; (iii)
documentation and notification of malfunctions;
(iv) scheduled and performed training sessions;
and (v) monitoring of administrative and
engineering controls. Odor mitigation records will
be made available to the City of Bell Gardens and
the Department of Cannabis Control upon
request.

An Odor Detection Form ("ODF") will be provided
to those who suspect objectionable odors
emanating from inside the facility. ODFs are
available per request, on -site. We shall maintain records of all odor detection notifications and/or complaints that Odor Detection Form
Name of Reporting Party:

Phone Number:

Email Address:

Date;
Time:

Location of Odor:
liVeather Conditions:

Date/Time of Notification::

Notification Method:

Administrative Use Only
Email ( } Online OI person.

Mitigation Response Taken:.

Date/Time Measures En,p Dyed:

Were Mitigaflon:Measures Successful?
Sign ,ature/Date :roe:

Page 55 of 59 ends

Exhibit 24 gifI3

will include the remediation measures employed. The records shall be made available to the DCC or the City upon request. Below is a copy of our Odor Detection Form.

Maintenance Plans
STIIIZY Bell Gardens will perform monthly inspections of its odor control system to ensure optimal performance and regular maintenance. Detailed service logs will be kept with respect to all HVAC and carbon filters so staff will be aware of how long a filter has been in use. Filters will be assessed monthly and changed every six months, or more frequently if staff becomes aware of any odor permeating the facility.

Testing will be done in accordance with Standardized Odor Measurement Practices for Air Quality Testing or any other state -established testing standards for cannabis businesses. Management will perform a daily walkabout near the exhaust system to verify there are no odors. Data will be compared using a five -point Odor Intensity Reference Scale ("OIRS") for daily readings. When values reach three on the five -point scale, the carbon -filtration exhaust system will be evaluated and repaired as required.

Evaluations will include fan operation, distribution system integrity, and carbon filter effectiveness.

Frequency and Role/Titles of Personnel Performing such Activities

ODOR INTENSITY

REFERENCE SCALE
0 None
1 Slight
2 Noticeable
3 Very Noticeable
4 Strong
5 Very Strong
STIIIZY Bell Gardens will perform monthly inspections of its odor control system to ensure optimal performance and regular maintenance. Detailed service logs will be kept with respect to all HVAC and carbon filters so staff will be aware of how long a filter has been in use. Filters will be assessed monthly and changed every six months, or more frequently if staff becomes aware of any odor permeating the facility.

The HVAC and ventilation system will be professionally monitored and maintained with quarterly service appointments. Any system failures will be immediately reported to management staff, and any problems that cannot be dealt with internally will result in the immediate contacting of a professional service technician prior to any scheduled quarterly service appointments from the professional service technician.

It is the General Manager's responsibility to change out the filters as needed and to schedule any necessary appointments with the professional service technicians.

Page 56 of 59 ends

Exhibit 24 984

A copy of the Secu
Department.
nity Develop'',
ent
e with the Bell Gardens Police and Co

Page 33 of 42 ends

Exhibit 25
965

NOTICE OF PUBLIC HEARING

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS APPROVING CONDITIONAL USE PERMIT NO. 2023-077 AND A

RESOLUTION RECOMMENDING APPROVAL OF AN ORDINANCE FOR A

PROPOSED DEVELOPMENT AGREEMENT AUTHORIZING A CANNABIS RETAIL USE AT 5726 GAGE AVENUE, BELL GARDENS, CA 90201
NOTICE IS HEREBY GIVEN, the Planning Commission of the City of Bell Gardens will conduct a public hearing to consider approval of a conditional use permit and recommendation to the City Council to approve an ordinance to enter into and execute a development agreement to authorize a "STIIIZY" cannabis retail storefront shop approximately 4,615 square feet in size, located within Zone M -U (Mixed Use) and within the MU (Mixed Use (Commercial/Residential) General Plan Land Use Designation.

DATE OF HEARING: Wednesday, June 19, 2024.

TIME OF HEARING: 5:15 P.M., or as soon thereafter as possible.

ENVIRONMENTAL DETERMINATIONS: In accordance with the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), staff recommends that action on the proposed conditional use permit and ordinance authorizing a development agreement both be found categorically exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and Section 15303(c) (New Construction or Conversion of Small Structures).

INVITATION TO BE HEARD/PUBLIC PARTICIPATION: The public hearing will be held before the City of Bell Gardens Planning Commission at 7100 Garfield Avenue, Bell Gardens, CA 90201 on Wednesday, June 19, 2024, at 5:15 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- commission-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 Planning Commission should do so by submitting a "Public Comment Card" card by 5:15 p.m. for all other designated public comment periods as listed.

BY TELEPHONE: Phone Number: (669) 900-9128 Webinar ID: 892 6467 1097# Passcode: *2021# To address the Planning Commission press *9 to raise your hand then *6 to unmute yourself when instructed.

Exhibit 26 906

VIRTUALLY LIVE: Members of the public may participate via Zoom by clicking here https://zoom.us/join and entering the Zoom Meeting ID: 892 6467 1097 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 the QandA Chat function of the Zoom app.

WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: Community Development Department, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the Planning Commission 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 Planning Commission and will be part of the official public record of this meeting.

If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. 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 Community Development Department's Office no later than 72 hours before the scheduled meeting.

The Planning Commission agenda packet will be available in the Community Development Department Office and posted on the City's website at https://www.bellgardens.org/i-want-to/view-agendas 72 hours prior to the meeting.

For more information, you may contact the Community Development Department during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806- 7722 or via email to [email protected].

BELL GARDENS COMMUNITY DEVELOPMENT DEPARMENT
Gustavo Romo, Community Development Director
Posted: June 6, 2024
Bell Gardens City Hall
Bell Gardens John Anson Ford Park
Bell Gardens Veterans Park - Ross Hall Auditorium
Bell Gardens Department of Public Works
Daily Journal Corporation (Bell Gardens Newspaper) — General Circulation Exhibit 26 967

FIGURE NO. 2

RESTRICTED AREA
No retailcannabis permitted
Exhibit 27
998

RESOLUTION #PC 2024-06

Resolution #PC 2024-06

Page 2 ends

Resolution #PC 2024-06

Page 3 ends

Resolution #PC 2024-06

Page 4 ends

NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINE, FINDS AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated in full, herein.

Exhibit 3 112

Resolution #PC 2024-06

Page 5 ends

SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2023-077:
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.

Resolution #PC 2024-06

Page 6 ends

PASSED, APPROVED AND ADOPTED this 19th day of June 2024.

ROSA, CHAIRPERSON
ATTEST:

ERIKA GUTIERREZ, PLANNING ETARY
APPROVED AS TO FORM:

LLOYD PILCHEN, DEPUTY CITY ATTORNEY
Exhibit 3 114

Resolution #PC 2024-06

Page 7 ends

EXHIBIT "A"
CUP NO. 2023-077 — CONDITIONS OF APPROVAL
General Operating Conditions

5.12 and Chapter 5.64.

Exhibit 3 115

Resolution #PC 2024-06

Page 8 ends

CUP No. 2023-077 shall be valid strictly in compliance with DA No. 2023-077; 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. 2023-077 for a period of one (1) year from the effective date of the CUP shall terminate the CUP, and any privileges granted hereunder 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.

Exhibit 3 116

Resolution #PC 2024-06

Page 9 ends

5.64.040 and all state and county laws and regulations.

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.

16. The Applicant shall ensure that the Subject Site is properly maintained, secured, and free of debris at all times/phases of construction.

Resolution #PC 2024-06

Page 10 ends

(48) hours of being observed or reported. If painting is required, the paint shall be identical to the existing color.

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 15) 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

28. The establishment shall only allow patrons of the age twenty-one (21) and older, with Exhibit 3 118

Resolution #PC 2024-06

Page 11 ends

presentation of a valid government -issued identification card or eighteen (18) and older with a physician's recommendation.

29. No persons under the age of twenty-one (21) shall be employed to sell cannabis or cannabis products at the Subject Site.

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.

37. There shall be no samples provided for the on -site consumption of cannabis and cannabis products at any time.

39. There shall be no sale of cannabis and cannabis products over the daily legal limit to Exhibit 3 119

Resolution #PC 2024-06

Page 12 ends

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.

43. Cover charges, entry fees, or minimum purchases for patrons visiting the facility shall be strictly prohibited.

47. The facility shall operate in accordance with the Odor Mitigation Plan, incorporated by references and attached hereto as Exhibit 14 at all times.

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 Exhibit 3 120

Resolution #PC 2024-06

Page 13 ends

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.

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.

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.

Resolution #PC 2024-06

Page 14 ends

59. Decorative railings and grilles that are placed 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.

60. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit revised floor plans showing the second story to be identified as storage purposes only.

63. The rolling gates located along the public alley ROW shall remain closed when business is not in operation.

Exhibit 3 122

Resolution #PC 2024-06

Page 15 ends

67. Water heater enclosures, vents, fleshings, 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.

9.20.160(D) of the BGMC.

70. The Project shall maintain the existing six-foot high trash enclosure; if the Applicant rebuilds or reconstructs the trash enclosure in the future, it shall be constructed with a six-foot (6') -high split face concrete masonry unit block wall to match the proposed fences on the Subject Site. 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 and the same color as the existing building.

71. The Project shall adhere and maintain lighting at the Subject Site consistent with the submitted Lighting Plan (Exhibit 13).

Los Angeles County Fire Department (Fire Department)

72. The Applicant shall obtain all required Fire Department approvals and permits prior to commencing the construction of the proposed improvements on the Subject Site.

Exhibit 3 123

Resolution #PC 2024-06

Page 16 ends

Bell Gardens City CouncilJuly 22, 2024

Bell Gardens City Council
July 22, 2024