Agenda packet, first session — Bell Gardens City Council, June 9, 2025 (part 2 of 12)

3 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 to (i) repeal the prohibition of 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 2023-043 ("Development Agreement Procedures")

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4 authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City; WHEREAS, Government Code Section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement;
WHEREAS, Developer has a leasehold interest in that certain real property located at 6300 Gage Avenue, Unit B in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Numbers 6330-019-032 and 6330-019-033 (“APN”) (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 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 the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on February 19, 2025, the Planning Commission, in a duly noticed and conducted public hearing, considered the recommendation of approval of this Agreement to the City Council and continued the item to the March 19, 2025 Planning Commission meeting;
WHEREAS, on March 19, 2025, the Planning Commission reopened the public hearing, considered the recommendation as well as the Applicant’s offer to increase security measures, reduce hours of operation and provision of additional community benefits to funds dedicated to the City’s youth for scholarships, sponsorship of youth sports, and subsidization of youth programming at the City’s Aquatic Center, and directed staff to incorporate these provisions into the applicable conditions of approval and development agreement and continued the item to the April 16, 2025 Planning Commission meeting;
WHEREAS, on April 16, 2025, the Planning Commission reopened the public hearing, considered the revisions made to the Project and recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;

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5 WHEREAS, on April 16, 2025, the Planning Commission also reviewed, considered, and approved Conditional Use Permit No. 2024-015; WHEREAS, on _____________, 2025, 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, introduced and adopted by first reading of Ordinance No. 953, and, on _____________, 2025 the City Council approved for second reading and adopted Ordinance No. 953, authorizing the City’s engagement into this Agreement;
WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City’s Development Agreement Procedures; WHEREAS, the City and Developer desire to enter into this Agreement to (i) facilitate the orderly development of the Site; (ii) create a physical environment that is consistent with and complements City's goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; and (v) reduce the economic risk of development of the Site to both City and Developer; and
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

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6 Exhibit “E” Security Plan
Exhibit “F” Conditional Use Permit No. 2024-
015
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.
d. “Annual Community Benefits Fees” has the meaning set forth in Section 4.2(b) of this Agreement.
e. “Annual Youth-Specific Benefits Fees” has the meaning set forth in Section

4.2(d) of this Agreement.
f. “AUMA” has the meaning as set forth in the Recitals, above. g. "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. h. “Business Regulatory Permit” means the business regulatory permit, as required in Bell Gardens Municipal Code Chapter 5.12 required for Cannabis Retail Activity issued by the Chief of Police, which can only be issued upon City approval of a Conditional Use Permit, State Cannabis License, and Additional City Approvals for each proposed Cannabis Retail Activity project.
i. “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.
j. “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. k. “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

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7 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.
l. “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. m. “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. n. “Cannabis Manufacturing” means the compounding, blending, extracting, infusing, packaging, label or otherwise making or preparing a cannabis product. o. “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.
p. “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.
q. “CEQA” means the California Environmental Quality Act, as set forth in Division 13 (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.
r. “City” means the City of Bell Gardens, a municipal corporation and general law city.
s. “City Council” means the City of Bell Gardens City Council. t. “City Development Agreement Procedures” has the meaning set forth in the Recitals, above.
u. “City Manager” means the City Manager of the City of Bell Gardens, or his or her designee(s).
v. “Community Benefits” has the meaning set forth in Section 4.1 of this Agreement.
w. “Community Benefits Fund” has the meaning set forth in Section 4.2(c) of this Agreement.

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8 x. “Complaining Party” has the meaning set forth in Section 8.2 of this Agreement. y. “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). z. “Cost Recovery Fees” has the meaning set forth in Section 4.3 of this Agreement.
aa. “CUA” has the meaning set forth in the Recitals, above. bb. “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. cc. “Defaulting Party” has the meaning set forth in Section 8.2 of this Agreement. dd. “Developer” means Bell Gardens ZG Associates, 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.
ee. “Development Agreement Statute” has the meaning set forth in the Recitals, above.
ff. “Development Agreement Procedures” has the same meaning as set forth in the Recitals, above.
gg. “Effective Date” has the meaning set forth in Section 1.7 of this Agreement. hh. “Exhibits” has the meaning set forth in Section 1.3 of this Agreement. 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";

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9 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.
ll. “Marijuana” has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.
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 façade improvements.

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10 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 by Developer after the Effective Date of this Agreement; (3) guarantee that Developer will receive any profits from the Project; (4) prohibit the Project’s participation in any benefit assessment district that may be generally applicable to surrounding properties; (5) amend the City’s General Plan; or (6) amend the Bell Gardens Municipal Code.

Section 1.7. Effective Date of Agreement. This Agreement shall become effective (the “Effective Date”) upon the date when all of the following conditions have been satisfied: (i) thirty (30) days have elapsed since the City ordinance authorizing this Agreement is approved in accordance with state law; (ii) this Agreement has been fully executed by all Parties; and (iii) the evidence of insurance coverage in favor of the City has been provided to the City as set forth in Article 5 of this Agreement.

Section 1.8. Term.
a. The term of this Agreement (the “Term”) shall be five (5) years commencing from the Effective Date.
b. This Agreement may be extended upon the conclusion of such initial five-year period for 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 extend this Agreement no less than one hundred eighty (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

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11 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 (10) years.

Developer
Initials

c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.

Section 1.9. Termination. This Agreement shall terminate upon the occurrence of any of the following events:
a. the expiration of the Term;
b. the Developer no longer has a possessory, legal, or other equitable interest in the Site;
c. the Developer has ceased all operations related to the Project on the Site for more than sixty (60) consecutive days;
d. mutual written consent of the Parties;
e. abandonment of Developer’s Conditional Use Permit applicable to the Project, or the failure of the Developer to commence operation of the Project on the Site within twelve (12) months following the issuance of a building 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

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12 k. upon the occurrence of the entry of a final judgment or issuance of an order of a court with jurisdiction which such judgment or order directs the City to cancel this Agreement, after all appeals have been exhausted, as a result of any lawsuit filed against City to set aside, withdraw or abrogate the approval of the City Council of this Agreement, whereupon such termination, the Parties shall be mutually released from any further liability except as provided in Section

1.12, below.

Section 1.10. Amendment of Agreement. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing and adopted by ordinance pursuant to the same requirement set forth in the Development Agreement Statute.

Section 1.11. Fees. Developer and Property Owner shall be jointly and severally liable for the payment to the City of all Cost Recovery Fees, Community Benefits, penalties and interest, and any other applicable fees when due, including but not limited to development impact fees, payable to the City related to Developer’s development and operation of the Project on the Site, and the fees referenced in Article 4 of this Agreement.

Section 1.12. Survival of Certain Terms. The rights and obligations of the Parties which arise under Sections 1.11, 5.5, 5.6, 5.7, 5.8, 9.2, 9.3, 9.4, 9.5 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.

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13 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 Bell Gardens Municipal Code, and State Cannabis Licenses. Other commercial cannabis activities, including but not limited to Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution are strictly prohibited. Further, subject to any limitations or prohibitions under state law, Developer shall reimburse the City within thirty (30) days following the receipt of a suitable detailed written invoice from the City for any and all of the City’s costs related to any emergency services response of the City to the Site (e.g., police and/or fire services) resulting from the Developer’s intentional neglect or violation of any Conditional Use Permit Condition or Business Regulatory Permit.

Section 2.3. Additional Entitlements, Approvals, and Permits.

Successful implementation of the Project may require the Developer to obtain additional approvals and permits from City and other local and state agencies (“Additional City Approvals”). In connection with the consideration and issuance of any such Additional City Approval which is not ministerial in nature, the City reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of each City Additional Approval. City shall comply with CEQA in the administration of all Additional City Approvals.

Section 2.4. Conditional Use Permit. Pursuant to Bell Gardens Municipal Code Chapter 9.20 and Section 9.20.160, Developer has obtained the necessary approvals pending the approval of this Agreement, to engage in Cannabis Retail Activities pertaining to the Project on the Site through the issuance of a Conditional Use Permit.

Developer and Property Owner shall adhere to all of the conditions of approval set forth in Conditional Use Permit No. 2024-015, 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.

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14 Section 2.7. Security Plan. In accordance with the application requirements for a Conditional Use Permit, Developer has submitted a security plan for the operation of a Cannabis Retail facility, as set forth in fuller detail in Exhibit “E.” Developer represents that the security plan includes provisions for licensed security guards as required by Section 5.64.040(C) of the Bell Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system. a. Video surveillance shall include, at a minimum, all site and facility entrances; all spaces accessible by the public, including points of sale; cash storage areas; and other areas necessary to protect the safety of employees and the public to ensure that Cannabis and Cannabis Products are received, handled, stored and sold in compliance with California’s Cannabis Laws, the Bell Gardens Municipal Code, the Conditional Use Permit and other applicable conditions as may be imposed by the City or any other local or state regulatory authority.
b. Third-party security guards shall be properly trained and licensed by the Department of Consumer Affairs. Security may be armed so long as property licensing and insurance requirements are followed and met by the third-party operator providing such security services and such documentation is provided to the City in accordance with Section 9.2.

Section 2.8. Odor Control. The Site shall have ventilation and filtration systems installed that prevent Cannabis odors from exiting the interior of the structure.

The ventilation and filtration system shall be approved by the Building Official and installed prior to commencing operations within the allowable structure. Facility air intake, exhaust and recirculating system shall be of industrial grade. Activated charcoal, recirculating, and closed loop aeration systems shall be utilized as necessary for effective odor control and management.

ARTICLE 3

APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
Section 3.1. Rules on Permitted Uses. Unless otherwise provided in this Agreement, the City’s ordinances, resolutions, rules, regulations, and official policies governing the permitted uses of the Site and the maximum height, bulk, and size of proposed buildings related to the Project on the Site shall be those in force and effect at the time of the City’s approval of 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.

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15 Section 3.4. Changes mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party’s discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, the Parties shall attempt to preserve the terms of this Agreement, and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer's proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement, pursuant to Section 1.10.

Section 3.5. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the Project, City agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion, that it is not reasonably possible to so address such health and safety emergency, to select that option for addressing the situation which, in City's discretion, minimizes, so far as reasonably possible, the impact on development and use of the Project in accordance with this Agreement, while still addressing such health and safety emergency in a manner acceptable to City.

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16 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 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 the Developer that will place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced and commensurate with “Annual Community Benefits Fees” and “Quarterly Community Benefits Fees,” for the community (collectively, “Community Benefits”) and “Annual Youth-Specific Benefits Fees” for certain youth programs in the community.

Section 4.2. Community Benefits and Youth-Specific 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 Benefits” and “Annual Youth-Specific Benefits Fees.”
a. “Quarterly Community Benefits Fees.” Within twenty (20) days following the conclusion of each City fiscal year quarter following the City’s issuance of a Business Regulatory Permit for the Project, Developer shall pay the City a sum of money which is equivalent to 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 th 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”).

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17 i. Public benefits for youth and educational programming shall 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. 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.

d. “Annual Youth-Specific Benefits Fees.” Developer shall make the following payments to City (collectively, the “Annual Youth-Specific Benefits Fees”). The first payment shall be made prior to the issuance of a Project building permit.

For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D). Each following calendar year, the Developer shall make further payments to City in the same amounts specified below no later than January 15th of each subsequent calendar year.

i. Twenty-Five Thousand Dollars ($25,000) to the City for the purpose of funding academic scholarships for City’s youth residents.

ii. Eight Thousand Dollars ($8,000) to City’s Recreation and Community Services Department to fund youth sports programming.

iii. Six Thousand Dollars ($6,000) to City’s Recreation and Community Services Department for the purpose of subsidizing the cost of youth swimming lessons and other youth programming costs at the John Anson Ford Park Regional Aquatics Center (“Aquatics Center”). If the Aquatics Center is not in operation such funds may be used to fund youth sports programming.

Section 4.3. Cost Recovery Fees. Developer shall be responsible for the processing and monitoring costs related to the Project, including but not limited to the processing and execution of this Agreement (“Cost Recovery Fees”) as described in this Section 4.3.
a. Processing Fees. Processing fees shall include the direct and indirect costs that the City incurs in reviewing, processing, and executing the Conditional Use Permit, this 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

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18 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.

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,

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19 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 Benefits shall be maintained in accordance with California Cannabis Laws. City staff shall have access to such records upon request for monitoring and compliance purposes.

Section 4.10. City Cannabis Tax. Should the City voters enact a tax or taxes applicable to the Developer with regard to it carrying out of Cannabis Retail Activities in the City, the Parties shall meet and confer in good faith to amend this Article in light of such tax, pursuant to Section 1.10 of this Agreement.

ARTICLE 5

INSURANCE AND INDEMNIFICATION
Section 5.1. General Liability Insurance. Developer shall maintain comprehensive general liability insurance issued by a California admitted insurance carrier whose Best Insurance Guide, current edition insurance rating is not less than “B+(vii)” with a per-occurrence combined single limit of not less than Two Million Dollars ($2,000,000) with a claim deduction not more than One Hundred Thousand Dollars ($100,000) per claim. Such insurance policy shall name the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives as “Additional Insureds” by endorsement with respect to the performance of this Agreement and shall include either a severability of interest clause or cross-liability endorsement and other customary and reasonable endorsements and provisions approved by the City’s Risk Manager.

Section 5.2. Commercial Property Insurance. Developer shall maintain commercial property insurance with coverage in an amount not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($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’ compensation insurance for its respective employees. Developer

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20 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 and Property Owner agree that they shall be jointly and severally responsible for all costs incurred by the City in the event of a third-party challenge related to such claims, costs, or liabilities.

_____________________
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.

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21 employment of counsel satisfactory to the City, which approval shall not be unreasonably withheld. In the event of a disagreement between the Parties over litigation issues, the City shall have the authority to control the litigation and make litigation decisions for the City, including, but not limited to, settlement, or other disposition of the matter. If the City reasonably determines that having common counsel would create a conflict of interest between itself and Developer and/or Property Owner, then the City may hire counsel for its own defense, and Developer and Property Owner shall jointly and severally pay the City the reasonable attorneys and costs of such counsel within thirty (30) days after receiving an itemized invoice from the City. Developer and Property Owner shall further pay for all costs and fees related to any additional investigation or study, or for supplementing or revising any document, including, without limitation, environmental documents for the Project.

Section 5.7. 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 which Developer and/or Property Owner is opposed. Developer further acknowledges that, as an instrument which must be approved by ordinance, this Agreement is subject to referendum; and that, under law, the City Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained by contract, and Developer and Property Owner waive all claims for damages against City in this regard.

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22 other entitlements to use approved, issued or granted within the City. This Agreement shall apply to the Project to the extent such initiative measure or municipal moratorium or other limitation is inconsistent or in conflict with this Agreement. Should an initiative measure or moratorium or other limitation be enacted by the citizens of City which would preclude construction of all or any part of the Project, and to the extent such initiative, measure, moratorium, referendum, statute, ordinance, or other limitation be determined by a court of competent jurisdiction to invalidate or prevail over all or any part of this Agreement, neither Developer nor Property Owner shall have recourse against City pursuant to this Agreement for damages. The foregoing shall not be deemed to limit right of Developer or Property Owner to appeal any such determination that such initiative measure, moratorium, or other limitation invalidates or prevails over all or any part of this Agreement. The City agrees to cooperate with Developer or Property Owner in all reasonable manners in order to keep this Agreement in full force and effect, provided that Developer or Property Owner shall, jointly and severally, be obligated to reimburse the City for its actual and reasonable expenses incurred directly in connection with such cooperation and the City shall not be obligated to institute a lawsuit or other court proceedings in such cooperation.

Section 5.10. 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

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23 the Community Development Director determines that Developer is in Default pursuant to Section 8.1, the City shall follow the procedures provided pursuant to Article 8.

Section 7.3. Staff Reports. To the extent practical, the City shall deliver to the Developer a copy of all staff reports and related exhibits concerning the Developer’s performance under the Agreement within three (3) Business Days preceding Planning Commission review.

Section 7.4. Fee for Annual Review. The reasonable cost for the City’s annual review of this Agreement shall be paid by Developer, not to exceed the actual costs incurred by the City in connection with such review, inclusive of those costs incurred by consultants and legal fees as a part of Cost Recovery Fees. The Developer shall pay such costs to the City within thirty (30) days following the receipt of a written invoice from the City.

ARTICLE 8

DEFAULT, REMEDIES, AND ESTOPPEL CERTIFICATES
Section 8.1. Default. The failure of either Party to perform any obligation or duty under this Agreement within the time required by this Agreement shall be a default and after the giving of notice and the passage of the applicable amount of time, such a default shall constitute an event of default.

Section 8.2. Notice. The “Complaining Party” may not assert that an event of default has occurred against the “Defaulting Party” unless the Complaining Party has first given written notice to the Defaulting Party, specifying the nature of the default and the manner in which the default may be cured, if known to the Complaining Party. Any failure or delay by the Complaining Party in giving such notice shall not waive such default or waive any of the Complaining Party’s remedies.

Section 8.3. Cure. The Defaulting Party shall have thirty (30) days from the receipt of notice to cure the default except as provided in the next sentence. In the case of non-monetary defaults, if the default cannot be reasonably cured within such time, the default shall be deemed cured if:
a. The cure is commenced at the earliest practicable date following receipt of notice;
b. The cure is diligently prosecuted to completion;
c. At the earliest practicable date (but in no event later than ten (10) days after receiving the notice of default), the Defaulting Party provides written notice to the Complaining Party that the cure cannot be reasonably completed within such thirty (30) day period; and
d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default.

However, in the case of a monetary default (e.g., failure to make the payments to the City of fees or other costs required under this Agreement), any

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24 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, the Developer shall be entitled to appeal that to the City Council.

Section 8.5. Appeals to City Council. If Developer wishes to appeal the Planning Commission’s determination pursuant to Section 8.4, such appeal shall be taken within fourteen (14) days after notice of the determination is effectuated pursuant to Section 9.2 of this Agreement. The City Council shall act upon the Planning Commission’s determination within sixty (60) days of the appeal. The failure by City Council to act within this prescribed time period shall not be deemed to be a denial or approval of the appeal and shall remain pending until final City Council action.

Section 8.6. Remedies. If the Defaulting Party fails to cure a default in accordance with the foregoing, an event of default shall be deemed to have occurred and the Complaining Party shall have the right to seek all appropriate remedies, at law or in equity, including specific performance, modification or termination of this Agreement without further or separate notice to the Defaulting Party.

Section 8.7. Estoppel Certificates.
a. City shall, upon not less than thirty (30) days prior written notice, execute, acknowledge, and deliver to Developer, Developer's lender, potential investors, or assignees an estoppel certificate in writing which certifies that this Agreement is in full force and effect, that there are no breaches or defaults under the Agreement except as described in such estoppel certificate, and that the Agreement has not been modified or 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

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25 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 ($5,000) 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 ($5,000) into the escrow account to cover direct and indirect costs. Any unused fees remaining in the escrow account following the City Council vote shall be returned to Developer no later than thirty (30) days after the City Council action. c. Renegotiation of Community Benefits. The City reserves the right to renegotiate Community Benefits with the proposed transferee pursuant to Article 4. d. Effectuation of Assignment. Any sale, assignment, or transfer of the rights, obligations, or interests in this Agreement shall only be effective upon the issuance of a Business Regulatory Permit to the party to whom such sale, assignment, or transfer is made as required by Chapter 5.12 and Section

5.64.020 of the Bell Gardens Municipal Code. Any assignment or transfer prohibited by this Agreement will be considered an immediate material breach of this Agreement and City may elect to immediately terminate this Agreement. e. Assumption of Obligations. Upon the effectuation of an assignment pursuant to subsection (d) above, the transferee shall expressly and unconditionally assume all rights and obligations of the Developer pursuant to this Agreement.

Section 9.2. Notices. 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:

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26 DEVELOPER: CITY:

Bell Gardens ZG Associates,
LLC
1 Corporate Park
Suite 112
Irvine, CA 92606
Attn: Alejandro “Alex” Calleres
(323) 719-7376
[email protected]

PROPERTY OWNER:

Rodriguez Family Trust
9710 Shellyfield Road
Downey, CA 90240
Attn: Mary Helen Rodriguez
(562) 505-3131
[email protected]
City of Bell Gardens
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Michael B. O’Kelly, City Manager
(562) 806-7702
[email protected]

CITY ATTORNEY:

Olivarez Madruga Law Organization, LLP
500 South Grand Ave, 12th Floor
Los Angeles, CA 90071
Attn: Stephanie Vasquez
(213) 744-0099
[email protected]

Section 9.3. Governing Law and Venue. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

Section 9.4. Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any 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.

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27 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.

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28 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.

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]

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29 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

City of Bell Gardens, a municipal
corporation

By:

Michael B. O’Kelly
Bell Gardens City Manager

Date:

Approved as to Form

By:

Stephanie Vasquez
City Attorney

Date:

DEVELOPER

Bell Gardens ZG Associates, LLC
[Notarized Signature Required]

By:_______________________________

Name: ___________________________

Title:______________________________

Date:

PROPERTY OWNER

Rodriguez Family Trust
[Notarized Signature Required]

By:______________________________

Name:____________________________

Title:_____________________________

Date: ___

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30 EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

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31 EXHIBIT “B”

SITE PLAN

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32 EXHIBIT “C”

FLOOR PLAN

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33 EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

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34 EXHIBIT “E”

SECURITY PLAN

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35 EXHIBIT “F”

CONDITIONS OF APPROVAL

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CITY OF BELL GARDENS

COMMUNITY DEVELOPMENT DEPARTMENT

AGENDA REPORT

TO: Honorable Chair and Members of the Planning
Commission
FROM: Steven Jones, City Planner
BY: Adrian Flores, Associate Planner
SUBJECT: Consideration of Conditional Use Permit No. 2024-015 and Recommendation to the City Council to Approve Ordinance No.953 for a Proposed Development Agreement Authorizing a Cannabis Retail Use (“Zen Garden”) at 6300 Gage Avenue, Unit B (File No. 2024-015) DATE: February 19, 2025

RECOMMENDATION:

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

1. Determine that Conditional Use Permit (CUP) No. 2024-015 and Ordinance No. 953 for Development Agreement (DA) No. 2024-015 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 2025-04 approving CUP No. 2024-015 to authorize tenant improvements to a 1,512 square-foot (SF) suite in an existing 2,572 SF commercial building and to authorize a cannabis retail use storefront, subject to conditions of approval; and

3. Adopt Resolution #PC 2025-05 recommending to the City Council adopt an ordinance authorizing the City of Bell Gardens (City) to enter into and execute a DA by and between the City, Bell Gardens ZG Associates, LLC, and the Rodriguez Family Trust 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 ten 10-year term in exchange for public benefits.

BACKGROUND AND SITE DESCRIPTION:

Alejandro Calleres, representing Bell Gardens ZG Associates, LLC (Applicant), requests the approval of a cannabis retail use and proposes tenant improvements to an approximately 1,512 SF commercial suite of an existing

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approximately 2,572 SF commercial building SF (Project) located at 6300 Gage Avenue, Unit B (Subject Site). As explained in further detail below, the existing structure is legally nonconforming because it was built prior to the City’s adoption of applicable development standards, such as yard setback requirements. The approximately 1,512 SF floor area would be renovated to support the cannabis retail use. The Project does not propose any alterations, improvements, or different use within the remaining 1,060 SF of commercial space

The Subject Site, an approximately 11,410 SF parcel of land, is identified by the Los Angeles County Office of the Assessor as Assessor’s Identification Numbers (AINs) 6330-019-032 and 6330-019-033. 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 approval of a CUP.

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

Table No. 1. Surrounding Land Uses

North East
General
Plan
N/A – City of
Commerce General
Plan
Open Space/Parks (O-
S)
Zone N/A – City of
Commerce Zone O-S
Use Commercial Use Nursery

South West
General
Plan O-S General
Plan
High Density Residential
(HDR)
Zone O-S Zone High Density Residential
(R-3)
Use Nursery Use Church

The Subject Site is currently improved with a one (1)-story, 2,572 SF commercial building with two (2) commercial units. Unit A is approximately 1,060 SF and is occupied by an existing food market. Unit B is approximately 1,512 SF, and according to the City business license records, it was occupied by a self-service laundry business from 2002 until August 2018 and is currently vacant.

PROJECT 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 “Zen Garden” at the Subject Site.

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The Project proposes tenant improvements to a 1,512 SF unit within an existing 2,572 SF building, inclusive of a 376 SF customer-accessible retail area, a 1,335 SF employee-only space comprised of a cannabis storage room, managers office, secured inventory room, break room, and one (1) unisex employee restroom, and a total of six (6) off-street parking spaces, including one (1) space compliant with the American with Disabilities Act (ADA), two (2) electric vehicle (EV) charging capable spaces, eight (8) bicycle parking spaces, and loading area.

General Plan Consistency
The Subject Site is designated as MU (Mixed Use) by the General Plan Land Use Element. This designation is concentrated on parts of Eastern Avenue and Gage Avenue to accommodate a range of commercial and residential land uses. This designation refers to a mixture of commercial and residential uses working in tandem to supply the community with much needed housing and commercial uses.

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 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 economic diversity within the City’s commercial zones and provide local employment opportunities while still regulating existing businesses. Therefore, the proposed use is consistent with Policy 5.

Based on the aforementioned, if implemented, the Project would be consistent with the General Plan.

Zoning Consistency
The corresponding zone for the MU Land Use Element designation is Zone M- U, which conditionally permits a cannabis retail use, subject to certain locational siting requirements and development standards. Therefore, the proposed use is consistent with the zoning.

Compliance with Commercial Zone Development Standards
The Subject Site is an approximately 11,410 SF triangular shaped parcel of land currently developed with an existing, one (1)-story 2,572 SF commercial building, comprised of two commercial suites approximately 1,060 SF (Unit A) and 1,1512 SF (Unit B) in size. The Project proposes tenant improvements to Unit B consistent with development standards contained in Chapter 9.12 (Commercial Zones) BGMC and standards that apply specifically for cannabis retail uses located in BGMC Section 9.20.160(B).

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As detailed below, the Subject Site is adequate in size, shape, and topography to support the continued maintenance of the existing structure and proposed use consistent with the BGMC’s applicable zoning requirements and development standards.

Yard Setbacks
BGMC Table 9.12B provides the applicable yard setback requirements for properties zoned M-U. Currently, there are no setbacks provided in the front yard. According to City building records, the existing structure was constructed in 1965, prior to the adoption of the current BGMC setback requirements, which were adopted in 2007, and which now require a five-foot setback.

Nonconforming status is obtained when any lot, use, or structure that was lawfully established in compliance with applicable laws no longer complies due to subsequent changes in law. The Subject Site’s existing structure was lawfully constructed and in compliance with all applicable setback requirements at the time of construction and is, therefore, considered legally nonconforming. Pursuant to BGMC Section 9.64.060(C)(2), nonconforming structures may be remodeled so long as they comply with BGMC Title 6 (Building and Construction), met applicable requirements in effect at the time of construction, and comply with all other applicable development standards contained in Title 9 (Zoning and Planning Regulations).

Table No. 2. Yard Setback Analysis

Yard Required Provided Complies?
Front 5 feet 0 feet Yes, due to legal nonconforming
status.

East SideNone 0 feet Yes
West SideNone 14 feet & 7
inches
Yes
Rear 10 feet 159 feet & 8
inches
Yes

Floor-to-Area Ratio (FAR)
The Project would comply with the 4.0 FAR standard found in BGMC Table

9.12B. The Subject Site is approximately 11,410 SF and the existing commercial building has a FAR of 0.2, as shown in the attachments. The Project proposes no additional floor area and, therefore, would comply with lot coverage requirements.

Lot Coverage
The Project would comply with the lot coverage standard found in BGMC Table

9.12B, which permits a maximum coverage of 90%.

The Subject Site is approximately 11,410 SF and the existing 2,512 SF commercial building occupies 25% of the Subject Site. The Project does not propose any additional floor area and, therefore, would comply with lot coverage maximums.

Height

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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 is 14 feet, three inches (14’-3”) in height and the Project does not propose any additional height. Therefore, the Project would comply with maximum height limitations.

Screening of Mechanical and Utility Equipment
Pursuant to BGMC Section 9.12.040, all mechanical equipment must be shielded with a decorative screen to ensure such equipment is not visible from street level and must be placed at least six inches (6”) below the top of the lowest building parapet or decorative screen.

The Project would comply with the requirement that outside utility equipment such as utility meters, heating, ventilation, and air conditioning (HVAC) equipment, etc., be screened from public view from the public right-of-way. The Project’s HVAC equipment is proposed at ground level at the rear of the building with a proposed screening.

Mechanical Equipment
The Project would comply with the screening requirements pursuant to BGMC Section 9.12.040. All roof mounted mechanical equipment is required to be placed at least six inches (6”) below the top of the lowest building parapet or decorative screen. The Project proposes to place all mechanical equipment at the ground level at the rear of the building and shield it with a decorative screen to ensure no equipment is visible from the street level. HVAC equipment, etc., would not be visible from the public right-of-way.

Landscaping
BGMC Section 9.34.030 generally requires all setback areas and a minimum of five percent (5%) of the parking area to be landscaped with live plant materials. The Subject Site is an 11,410 SF parcel of land and the parking area is approximately 7,295 SF. Five percent (5%) of the parking area is approximately 365 SF. No landscaping is required in the front yard due to the Subject Site’s nonconforming status. The Project proposes a total combined 2,039 SF landscaping within the Subject Site’s parking area as demonstrated in the Site Plan, which equals approximately 27% of the parking area and exceeds the BGMC’s requirements. The Project, if approved, would exceed BGMC’s landscaping requirements. Therefore, the Project would be in compliance with all applicable landscaping ordinances/regulations.

Lighting
The Applicant proposes to install 15 new light emitting diode (LED) wall- mounted lighting fixtures and four (4) new LED pole-mounted lighting fixtures within the parking areas as demonstrated in the Lighting Plan. 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. If approved, the Project would enhance the retail experience with a strong sense of safety and unique community identity.

Parking

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A cannabis retail use must provide off-street parking for “business general” as set forth in BGMC Section 9.38.050, or one parking space per 400 SF. As demonstrated in Table No. 3 below, a 2,512 SF commercial use would require the provision of seven (7) parking spaces and a 250 SF loading area. Pursuant to BGMC Section 9.38.090.I, a required parking space may be satisfied with bicycle parking at a ratio of one (1) standard or compact automobile parking space for every four (4) bicycle parking spaces provided. Therefore, the Project proposes six (6) new automobile parking spaces, inclusive of two (2) EV charging capable spaces and one (1) parking space compliant with required standards contained in the ADA, and eight (8) new bicycle parking spaces (Attached).

Table No. 3. Parking Analysis

Required
Parking – §

9.38.050(C)(2)
Required
(Before
Reductions)
Bicycle
Parking
Discount – §

9.38.090(I)(1)(v)
Provided
General
Business: 1
space per 400
SF 4,020 SF/ 400
7 Spaces 8 Bicycle Racks
(-2 spaces) 6 Spaces

Loading Facilities
BGMC Section 9.38.110(B) 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 proposes one (1) loading space that would be 10 feet wide and 25 feet long (10’ x 25’), totaling 250 SF, at the west side of the Subject Site adjacent to Darwell Avenue. Therefore, the loading area would comply with the BGMC’s requirement.

Trash Enclosures
Chapter 9.44 of the BGMC requires an on-site refuse dumpster on commercialsites and the maintenance of a trash enclosure area. The proposed trashenclosure dimensions are 10 feet deep by 16 feet, eight inches wide (10’ x16’-8”), and a masonry wall six feet (6’) in height and two metal gates are depicted proposed (Attached). If approved and constructed, the proposedtrash enclosure would comply with the trash enclosure requirement.

Wall-Mounted Equipment
BGMC Section 9.12.040, Design Standards for all Commercial Development Matrix (Table 9.12) requires that water heater enclosures, vents, flashings, pipes, and conduits for solar, or other equipment be painted the same color as the surface to which they are attached. The Applicant proposes new exterior colors in two tones, “fossil white” and “black.” Condition of Approval No. 75 would require all above equipment be screened from public view and treated to match the materials and colors of the proposed building; therefore, with the Project implementation of the condition would comply with the BGMC’s requirements.

Fences and Walls

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

The Project proposes to construct a six-foot (6’) high concrete masonry unit (CMU) wall along the southeast property line and a three-foot, six inch (3’-6”) high CMU wall along the southwest property line adjacent to Darwell Avenue.

The CMU wall is proposed to be painted “fossil white” consistent with the color as the building. Therefore, 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 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 stone façade and stucco sand finish painted in two tones, “fossil white” and “black.” 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 BGMC Table 9.12 require that new fences and walls to be of consistent materials, design, color and that driveways, walkways, etc., to be free 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’s proposed structures and infrastructure are consistent in material, design, and color, and paved surface areas are free of gouges, ruts, and/or gaps, and maintained in good working order. Therefore, they do not constitute a safety hazard to the public as demonstrated in the site and elevation plans.

CUP Conditions of Approval Nos. 86 and 97 would enforce compliance with the exterior site feature standards.

Signs
No plans for signage were received for consideration. CUP Condition No. 64 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
BGMC Section 9.20.160(B)(3) requires that windows facing the street frontage 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

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depicted on elevation plans and would improve the structure by replacing 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% open to perpendicular view and no more than six feet (6’) in height. Security gates and grilles are prohibited on the exterior of any structure. The Project does not propose any prohibited decorative railings, grilles, or security gates or grilles; therefore, the Project would comply with the BGMC’s requirements.

Impacts on City Resources
A cannabis retail use is similar to other commercial uses permitted in the City’s Commercial and Industrial Zones. Cannabis retailers are subject to the same or more restrictive development standards than other commercial uses.

Patrons would arrive at the Subject Site and visit a retailer for short periods of time, typically no longer than 30 minutes to make their purchase, similar to other retail uses. As described below, the Project is not anticipated to have an adverse or significant 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 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. 2024-015 is granted.

Utilities
The Subject Site is occupied by an existing food market use and is adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection.

Conditional Use Permit
On June 26, 2023, the City Council adopted Ordinance No. 934, which permits a cannabis retail use as a conditional use in Commercial and Industrial Zones, subject to certain locational requirements, inclusive of distance from sensitive uses such as parks, schools, youth centers, and other existing cannabis retail uses. Uses permitted through a CUP may be essential or desirable to a particular community but are not allowed as a matter of right within a zoning

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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, to enter into and execute the DA presented within the staff materials with the Applicant and Property Owner for a term not to exceed 10 years in exchange for annual and quarterly community benefits.

In addition to a CUP, the Applicant would be required to obtain a California Department of Cannabis Control (DCC) Type 10 cannabis retail license and a business regulatory permit pursuant to BGMC Chapters 5.12 and 5.64, among other state and local approvals prior to commencing operations.

Locational Requirements
In order to approve a CUP for a cannabis retail use, the following locational requirements apply to all cannabis retailers for proximity to sensitive uses and proximity to other cannabis retailers. As detailed below, the Project would comply with locational siting requirements set forth in BGMC Section 9.20.160.

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 Chapter 9.04 BGMC, 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. Staff utilized a measure of 1,500-feet from property line to property line, and two (2) sensitive uses within a 1,500-foot radius were identified: Bell Gardens High School is approximately 897 feet away and Ceaser Chavez Elementary School is approximately 800 feet away, both which exceed the 600-foot buffering requirement.

Distance from Cannabis Retailers (500-Foot Radius)
No cannabis retail use may 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 (Attached), nor 1,500-foot radius (Attached).

Restricted Use Within the Civic Center Overlay District No cannabis retail use may be permitted within the Civic Center Overlay District (CCOD). The CCOD encompasses Garfield Avenue, with the borders of Florence Place to the south and Gage Avenue to the north. The Subject Site is located on Gage Avenue, which is outside of the CCOD. Therefore, the Subject Site complies with this locational siting requirement.

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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. Therefore, the Subject Site complies with this locational siting requirement.

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
Chapter 5.64 of the BGMC requires a cannabis retailer to comply with specific operating standards. If CUP No. 2024-015 is approved, the Applicant would be required to implement and comply with the Lighting Plan, Odor Mitigation Plan, and Security Plan to provide safe and secure surroundings for both customers and the surrounding neighborhood. Compliance with these plans would be incorporated by reference as exhibits into the proposed conditions of approval for CUP No. 2024-015, as well as DA No. 2024-015.

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. The City is charged with promoting design that emphasizes commercial identity that enhances the appearance, potential economic vitality, and revitalization of the commercial areas pursuant to Policy 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. 2024-015.

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 an attached exhibit, which are proposed to be incorporated into the conditions of approval and the DA, by referencing compliance with all conditions of approval. Odor 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

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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 to address public safety issues inclusive of security operations by a third-party security company (Sapphire Risk Advisory Group, LLC). All security personnel hired or contracted by the Applicant would be licensed by the Bureau of Security and Investigative Services and would be required to always possess their valid “Security Guard Card.” Security guards would greet visitors and employees while maintaining a professional appearance to discourage loitering, suspicious activity, criminal behavior, theft, and diversion of cannabis and cannabis products.

The main goal of the Applicant’s Security Plan would be 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 one (1) security guard 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 have a professionally installed video surveillance system designed to protect the inventory, cash, facility, and employees, clients, and visitors. Surveillance video would record continuously 24/7. The Applicant would implement a video surveillance system of at least high-definition (HD) quality and all cameras would record in color. All exterior cameras would be contained in weather-proof enclosures and would utilize equipment that prevents cameras from being readily obstructed, tampered with, or disabled.

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 medicinal patients aged 18 or older (with a physician’s medicinal recommendation), 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 would be at least 21 years old or medicinal patients aged 18 or older with a physician’s recommendation (Condition No. 29) and all employees at least 21 years old (Condition No. 30). The conditions of approval would require compliance with the submitted Security Plan. The requirements of the Security Plan are also incorporated by reference into DA No. 2024-015.

Hours of Operation

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The DCC hours of operation for cannabis retail operations 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 three 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 recommends hours of operations consistent with DCC regulations which are addressed in Condition No. 23 of the CUP.

Development Agreement
A development agreement is a tool that allows developers to establish assurances and certainty with respect to what rules, regulations, and policies would apply to a project in return for public benefits to the City in the form of capital improvements, monetary contributions, and other obligations.

A request for a development agreement can be used when there are significant development costs and economic risks associated with efforts to improve, develop, and/or use real property for a certain purpose and to establish certain development rights on real property. A development agreement must be approved and adopted by ordinance. The City Council’s legislative action on a development agreement ordinance could facilitate the orderly development of sites within Bell Gardens, promote shared goals and vision, protect natural resources from adverse impacts, provide community benefits, and reduce economic risk for all stakeholders.

On June 12, 2023, the City Council adopted Resolution No. 2023-043, which established procedures and minimum terms for the negotiation of a development agreement for a cannabis retail use, which are consistent with or supplement the requirements set forth in Government Code Section 65864 et seq. (Development Agreement Procedures). Among the requirements to enter into a development agreement with the City, inclusive of required findings; cost recovery provisions; annual review; default, cure, modification, and termination procedures. The Development Agreement Procedures require that 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

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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. 2024-015 would require the Applicant to provide an annual community benefit in the amount of One Hundred Thousand Dollars ($100,000) (Annual Community Benefit) upon the effective date for the DA and renewed on an annual basis, every January. The Applicant 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 (Quarterly Community Benefit) (Annual Community Benefit and Quarter Community Benefit are hereinafter collectively, Community Benefit Fees). The rate of the Quarterly Community Benefit is based on gross receipts, as defined in the DA.

Pursuant to the Development Agreement Procedures, the DA would require that 80% of all community benefits must be dedicated toward youth and educational programming and resources for the City’s housing programs.

Benefits for youth and educational programming may 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. 2024-015 which clearly outline specific conditions, requirements, and timelines for the development of the retail storefront facility to help ensure the Applicant would remain in compliance with all local, state, and federal
regulations, where applicable, would be expressly incorporated into the terms of the DA No. 2024-015. 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 community benefits, as described above. The DA is designed to facilitate ongoing communication and collaboration between the Applicant, who would be licensee, and the City addressing concerns and ensuring the cannabis retail use would align 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.

If 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. 2024-015. 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

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in exchange for community 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.

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 operation and provide a stable revenue stream for the City.

Staff believes that the proposed development agreement is in the best interests of the City while still providing the Applicant with the assurances and certainty that are typically sought under a 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 tenant 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 applicable land use and development standard provisions. Therefore, it can be seen with certainty that there is not possibility that the activity in question may have a significant impact on the environment.

CONCLUSION:

It is recommended that the Planning Commission determine the Project is categorically exempt from CEQA; approve Conditional Use Permit No. 2024- 015 through the adoption of Resolution #PC 2025-04; and recommend to the City Council the adoption of Ordinance No. 953 to authorize the City to enter into and execute DA No. 2024-015 through the adoption of Resolution #PC 2025-05.

FISCAL IMPACT:

If the CUP and DA are approved, the Applicant would be required to make an up-front payment Annual Community Benefit equal to 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 submit Quarterly Community Benefits equal to seven

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percent (7%) of Gross Receipts as defined in the DA upon after operations of commenced. 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).

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CITY OF BELL GARDENS

COMMUNITY DEVELOPMENT DEPARTMENT

AGENDA REPORT
TO:Honorable Chair and Members of the Planning Commission FROM:Mona Mossayeb, Acting City Planner
BY: Adrian Flores, Associate Planner
SUBJECT:Consideration of Conditional Use Permit No. 2024-015 and Recommendation for a Proposed Development Agreement
Authorizing a Cannabis Retail Use (“Zen Garden”) at 6300 Gage Avenue, Unit B (File No. 2024-015)
DATE: April 16, 2025
RECOMMENDATION: It is staff’s recommendation that the Planning Commission:

1.Determine that Conditional Use Permit (CUP) No. 2024-015 and Ordinance No. 953 for Development Agreement (DA) No. 2024-015 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 2025-04 approving CUP No. 2024-015 to authorize a cannabis retail use storefront and tenant improvements to a 1,512 SF suite in an existing 2,572 SF commercial building and to authorize, subject to conditions of approval located at 6300 Gage Avenue; and

3.Adopt Resolution #PC 2025-05 recommending to the City Council to adopt an ordinance authorizing the City of Bell Gardens (City) to enter into and execute a DA by and between the City, Bell Gardens ZG Associates, LLC, and the Rodriguez Family Trust 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 ten 10-year term in exchange for public benefits;
OR

4.Adopt Resolution #PC 2025-09 denying Conditional Use Permit (CUP) No. 2024-015 to permit a cannabis retail use and associated tenant improvements to an existing 2,575 square-foot (SF) commercial building located at 6300 Gage Avenue.

BACKGROUND:

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Alejandro Calleres, representing Bell Gardens ZG Associates, LLC (Applicant), is requesting the approval of CUP to allow a cannabis retail use and proposed tenant improvements to an approximately 1,512 SF commercial suite of an existing approximately 2,572 SF commercial building SF (Project). The approximately 1,512 SF floor area would be renovated to support the cannabis retail use. The Project does not propose any alterations, improvements, or different use within the remaining 1,060 SF of commercial space. The site is approximately 11,410 SF in area and located at 6300 Gage Avenue, Unit B (Subject Site), 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. A full analysis of the Project’s compliance with all applicable development standards is provided in the February 19, 2025 Agenda Report, which is attached to this report.

In addition to the CUP, the Applicant is requesting the City to enter into and execute a Development Agreement (DA) by and between the City, Bell Gardens ZG Associates, LLC, and the Rodriguez Family Trust 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 ten 10-year term in exchange for public benefits.

On February 19, 2025, the Planning Commission held a duly noticed public hearing and reviewed all facts and evidence, both written and verbal, pertaining to CUP No. 2024-015 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. A full analysis of the Project’s compliance with applicable development standards is provided in the staff report from the February 19, 2025 Planning Commission Meeting. After receiving public testimony and closing the public hearing, the Planning Commission deliberated and determined that the Project does not meet the required findings pursuant to BGMC Section 9.50.050. The commissioners identified concern over the Project’s adverse effects on the general public or otherwise constituting a nuisance to the public health, safety, or general welfare due to the Subject Site’s proximity to two schools, lack of adequate security, and voted 5:0:0 to provide direction to staff to prepare a resolution that contained findings for the CUP denial and bring back at the next regularly scheduled meeting of March 19, 2025.

At the next regularly scheduled meeting of March 19, 2025, the Planning Commission reviewed all facts and evidence, both written and verbal, pertaining to CUP No. 2024-015 with two divergent recommendations:

1. Adopt Resolution #PC 2025-09 denying Conditional Use Permit (CUP) No. 2024- 015 to permit a cannabis retail use and associated tenant improvements to an existing 2,575 square-foot (SF) commercial building located at 6300 Gage Avenue; OR

1. Determine that CUP No. 2024-015 and Ordinance No. 953 for Development Agreement (DA) No. 2024-015 are categorically exempt from the California Environmental Quality Act (CEQA);

2. Adopt Resolution #PC 2025-04 approving CUP No. 2024-015, and

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3. Adopt Resolution #PC 2025-05 recommending to the City Council to adopt an ordinance authorizing the City of Bell Gardens (City) to enter into and execute a DA.

Revisions to the Conditions of Approval and Security Plan During their presentation, the Applicant stated that their commitment to the community’s welfare may be reflected in additional actions that they would implement through an amended security plan and conditions of approval. Condition No. 23 would amend the hours of operation from 10am to 10pm to 10am to 9pm, with the last delivery vehicle arriving back to the retail location no later than 9:00pm. Condition No. 38 would now require one security personnel on site 24 hours a day, seven days a week. Condition No. 39 would require two security personnel to be present on the exterior of the building from 1pm to 5pm, Monday through Friday, in order to address the Planning Commission’s concerns regarding minors’ exposure to cannabis during after school hours.

Revisions to the Development Agreement
In addition to the Annual Community benefits of One Hundred Thousand Dollars ($100,000) and Quarterly Community Benefits equal to seven percent (7%) of gross receipts, the Applicant offered three added annual community benefits that have been incorporated into the development agreement:

1. $25,000 annual contribution for academic scholarship for Bell Gardens high school graduates;

2. $8,000 annual contribution to sponsor or subsidize the cost of youth sports activity or team; and

3. $6,000 annual contribution to the Bell Gardens Aquatic Center to subsidize the cost of swimming lessons or similar programming for Bell Gardens youth.

The mechanisms of distribution to be determined by the City to ensure their equitable distribution.

City Council Direction at March 24, 2025 Meeting
At the March 24, 2025 City Council meeting, the City Council directed staff that future cannabis CUP applications with a development agreement request be executed within 60 days of the effective date of the ordinance adopting the DA. Therefore, the Planning Commission may consider adding this provision to the effectuating Ordinance when making a recommendation to the City Council to approve Ordinance No. 953.

ENVIRONMENTAL REVIEW:

In accordance with CEQA and CEQA Guidelines, the Planning Commission’s approval of CUP No. 2024-015 and recommendation to approve Ordinance No. 953 is categorically exempt pursuant to CEQA Guidelines (Cal. Code Regs., § 15000 et seq.) Section 15301 (Existing Facilities), and Section 15061(b)(3) (Common Sense Exemption). The Project would involve tenant improvement 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 applicable land use and development standard provisions. Therefore, it

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can be seen with certainty that there is no possibility that the activity in question may have a significant impact on the environment.

If the Planning Commission were to deny CUP No. 2024-015, the action would categorically exempt from CEQA pursuant to CEQA Guidelines Section15061(b)(4) (Project Rejection or Disapproval Exemption). CEQA does not apply to projects that are denied; therefore, no further action would be required under CEQA.

CONCLUSION:

It is recommended that the Planning Commission determine the Project is categorically exempt from CEQA; approve Conditional Use Permit No. 2024-015 through the adoption of Resolution #PC 2025-04; and recommend to the City Council the adoption of Ordinance No. 953 to authorize the City to enter into and execute DA No. 2024-015 through the adoption of Resolution #PC 2025-05.

FISCAL IMPACT:

If the CUP and DA are approved, the Applicant would be required to make an up-front payment Annual Community Benefit equal to One Hundred Thousand Dollars ($100,000) upon effectuating the DA and make an annual contribution every January 15 following the execution of the DA for the term of the agreement. The Applicant would also be required to submit Quarterly Community Benefits equal to seven percent (7%) of Gross Receipts as defined in the DA upon after operations have commenced. Eighty percent (80%) of these funds shall be dedicated to youth and recreational programming and the City’s housing programs.

Additionally, the Applicant would provide additional annual community benefits that would be incorporated into the development agreement, as follows:

1. $25,000 annual contribution for academic scholarship for Bell Gardens high school graduates;

2. $8,000 annual contribution to sponsor or subsidize the cost of youth sports activity or team; and

3. $6,000 annual contribution to the Bell Gardens Aquatic Center to subsidize the cost of swimming lessons or similar programming for Bell Gardens youth.

Under the DA, the Applicant is also 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).

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ORDINANCE NO. 953

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL

GARDENS, BELL GARDENS ZG ASSOCIATES, LLC, AND THE

RODRIGUEZ FAMILY TRUST RELATING TO THE PROPERTY
LOCATED AT 6300 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 April 16, 2025, considered and adopted Resolution #PC 2025-04 authorizing a cannabis retail use and recommended to the City Council of Bell Gardens approve Development Agreement No. 2024-015 by and between the City, Bell Gardens ZG Associates, LLC, and the Rodriguez Family Trust, which Development Agreement is hereby incorporated by reference into the provisions of this Ordinance; and

WHEREAS, after due notice, the City Planning Commission and the City Council did conduct a public hearing on this matter; and

WHEREAS, pursuant to Government Code Section 65864, et. seq, and Resolution No. 2023-043 (Development Agreement Procedures), the City Planning Commission transmitted to the City Council its findings and recommendations through the adoption of Resolution #PC 2025-05; 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 vitality of the surrounding commercial areas and is therefore consistent with Policy 3; and

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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. 2024-015 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 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.

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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 , 2025.

THE CITY OF BELL GARDENS

________________________________
Jorgel Chavez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

I, ___________, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. 953 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

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1 **DRAFT**
DEVELOPMENT AGREEMENT NO. [NUMBER]

BETWEEN

THE CITY OF BELL GARDENS
AND

BELL GARDENS ZG ASSOCIATES, LLC

[FOR DISCUSSION PURPOSES ONLY]

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

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2 This DEVELOPMENT AGREEMENT (“Agreement”) is dated as of [DATE], 2024 by and among the City of Bell Gardens (the “City”) and Bell Gardens ZG Associates, LLC (the “Developer”) and the Rodriguez Family Trust (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 § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances;

WHEREAS, on April 25, 2011, this City Council approved a moratorium on the establishment and operation of medical marijuana dispensaries through the adoption of Ordinance No. 840;

WHEREAS, in September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis;

WHEREAS, on January 25, 2016, the City Council adopted Ordinance No. 873 to prohibit all commercial cannabis activities citywide, including Cannabis Retail Activities;

WHEREAS, in June 2016 the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”), under Senate Bill 837, which also made included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees;

WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved by California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art.

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3 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;

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;

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4 WHEREAS, consistent with the requirements of the Development Agreement Statute, 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; 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 6300 Gage Avenue, Unit B in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Numbers 6330-019-032 and 6330-019-033 (“APN”) (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 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 the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on [DATE], 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 [DATE], 2024, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;
WHEREAS, on [DATE], 2024, the Planning Commission also reviewed, considered, and approved Conditional Use Permit No. 2024-015; WHEREAS, on [DATE], 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, introduced and adopted by first reading of Ordinance No. [NUMBER], and, on [DATE], the City Council approved for second reading and adopted Ordinance No. [NUMBER], authorizing the City’s engagement into this Agreement;

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5 WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City’s Development Agreement Procedures; WHEREAS, the City and Developer desire to enter into this Agreement to (i) facilitate the orderly development of the Site; (ii) create a physical environment that is consistent with and complements City's goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; and (v) reduce the economic risk of development of the Site to both City and Developer; and
WHEREAS, the Parties intend through this Agreement to allow Developer to develop and operate the Project in accordance with the terms of this Agreement.

AGREEMENT
ARTICLE 1

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. 2024-
015
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.

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6 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.
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 project.
h. “California Building Standards Codes" means the California Building, Mechanical, Plumbing, Electrical, Fire or other similar codes set forth in Title 24 of the California Code of Regulations, as may be adopted by the City, with amendments, and set forth in the Bell Gardens Municipal Code.
i. “California Cannabis Laws” means AUMA, MAUCRSA, CUA, MMP, and the regulations adopted and promulgated by the State Licensing Authorities pursuant to such laws, as such laws and regulations may be amended from time to time. j. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term "marijuana" may be used interchangeably.
k. “Cannabis Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six (6) plants as authorized under state law for personal use.

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7 l. “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.
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 13 (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.
w. “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.

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8 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 Bell Gardens ZG Associates, LLC, which shall reflect the owner or owners listed on the application for Business Regulatory Permit, or any transferee who has been assigned the rights, title, duties, obligations and interests of this Agreement pursuant to Section 9.1.
dd. “Development Agreement Statute” has the meaning set forth in the Recitals, above.
ee. “Development Agreement Procedures” has the same meaning as set forth in the Recitals, above.
ff. “Effective Date” has the meaning set forth in Section 1.7 of this Agreement. gg. “Exhibits” has the meaning set forth in Section 1.3 of this Agreement. hh. “Gross Receipts” means total revenue received or receivable by the Developer or other occupant on the Site from any Commercial Cannabis Activity on the Site or from operation of the Project on the Site, including: all sales; the total amount of compensation received or receivable for the 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;

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;

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9 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.
ii. “Project” has the meaning as set forth in the Recitals, above. jj. “Property Owner” has the meaning as set forth in introductory paragraph to this Agreement, above.
kk. “Marijuana” has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.
ll. “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, (Bus. and Prof. Code § 26000 et seq.), as may be amended from time to time, and as additionally set forth in the Recitals, above.
mm. “MCRSA” has the meaning set forth in the Recitals, above. nn. “Mortgage” has the meaning set forth in Section 6.1 of this Agreement. oo. “Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement.
pp. “Notice of Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement.
qq. “Planning Commission” means the City of Bell Gardens Planning Commission as described in Bell Gardens Municipal Code Chapter 2.24. rr. “Project” has the meaning set forth in the Recitals, above. ss. “Quarterly Report” has the meaning set forth in Section 4.6 of this Agreement. tt. “Site” has the meaning as set forth in the Recitals, above. uu. “Site Plan” means site plan that satisfies the requirements set forth in Bell Gardens Municipal Code Section 9.50.020; floor plans; and elevations, inclusive of proposed signage and façade improvements.
vv. “State Cannabis License(s)” means license(s) to conduct Cannabis Retail Activities issued by a State Licensing Authority to Developer for the Development of the Project on the Site.
ww. “State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency authorized to take disciplinary action against a business licensed under the California Cannabis Laws.
xx. “Term” has the meaning set forth in Section 1.8 of this Agreement.

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10 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 1.8. 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 (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

Developer
Initials

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11 c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.

Section 1.9. Termination. This Agreement shall terminate upon the occurrence of any of the following events:
a. the expiration of the Term;
b. the Developer no longer has a possessory, legal or other equitable interest in the Site;
c. the Developer has ceased all operations related to the Project on the Site for more than sixty (60) consecutive days;
d. mutual written consent of the Parties;
e. abandonment of Developer’s Conditional Use Permit applicable to the Project, or the failure of the Developer to commence operation of the Project on the Site within twelve (12) months following the issuance of a building 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;
i. unauthorized assignment of interest of the Developer in the Project or in the Site pursuant to Section 9.1 of this Agreement;
j. as set forth in Sections 8.4 and 8.5 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

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12 adopted by ordinance pursuant to the same requirement set forth in the Development Agreement Statute.

ARTICLE 2

Section 2.3. Additional Entitlements, Approvals, and Permits.

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13 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. 2024-015, incorporated by reference herein (Exhibit “F”).

Failure to comply with such conditions of approval shall constitute a breach of this Agreement.

Section 2.7. Security Plan. In accordance with the application requirements for a Conditional Use Permit, Developer has submitted a security plan for the operation of a Cannabis Retail facility, as set forth in fuller detail in Exhibit “E.” Developer represents that the security plan includes provisions for licensed security guards as required by Section 5.64.040(C) of the Bell Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system. a. Video surveillance shall include, at a minimum, all site and facility entrances; all spaces accessible by the public, including points of sale; cash storage areas; and other areas necessary to protect the safety of employees and the public to ensure that Cannabis and Cannabis Products are received, handled, stored and sold in compliance with California’s Cannabis Laws, the Bell Gardens Municipal Code, the Conditional Use Permit and other applicable conditions as may be imposed by the City or any other local or state regulatory authority.
b. Third-party security guards shall be properly trained and licensed by the Department of Consumer Affairs. Security may be armed so long as property licensing and insurance requirements are followed and met by the third-party operator providing such security services and such documentation is provided to the City in accordance with Section 9.2.

Section 2.8. Odor Control. The Site shall have ventilation and filtration systems installed that prevent Cannabis odors from exiting the interior of the structure.

ARTICLE 3

APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES

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14 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 3.4. Changes mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party’s discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, the Parties shall attempt to preserve the terms of this Agreement and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer's proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement, pursuant to Section 1.10.

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15 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 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 the Developer that will place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced with commensurate 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 Benefits.”
a. “Quarterly Community Benefits Fees.” Within twenty (20) days following the conclusion of each City fiscal year quarter following the City’s issuance of a Business Regulatory Permit for the Project, Developer shall pay the City a sum

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16 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 th 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 but not limited to the processing and execution of this Agreement (“Cost Recovery Fees”) as described in this Section 4.3.
a. Processing Fees. Processing fees shall include the direct and indirect costs that the City incurs in reviewing, processing and executing the Conditional Use Permit, this 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

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17 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.

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18 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.

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19 ARTICLE 5

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’ 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.

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20 omission of Developer, Property Owner, or Developer’s or Property Owner’s contractor, subcontractor, agent, or representative related to its establishment or operation of the Project or arising out of or related to the approval or issuance of any permit, license, or approval by the City for the Project, except to the extent such claims, costs, and liabilities are caused by the sole negligence or willful misconduct of the City. Developer and Property Owner agree that they shall be jointly and severally responsible for all costs incurred by the City in the event of a third-party challenge related to such claims, costs, or liabilities.

_____________________
Developer Initials

____________________
Property Owner Initials

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 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.

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21 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 5.9. 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 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.

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22 ARTICLE 6

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23 ARTICLE 7

ARTICLE 8

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

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24 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 (10) days after receiving the notice of default), the Defaulting Party provides written notice to the Complaining Party that the cure cannot be reasonably completed within such thirty (30) day period; and
d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default.

However, in the case of a monetary default (e.g., failure to make the payments to the City of fees or other costs required under this Agreement), any such default must be cured by the payment of the amount demanded within such thirty (30) day period.

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25 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

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26 e. Assumption of Obligations. Upon the effectuation of an assignment pursuant to subsection (d) above, the transferee shall expressly and unconditionally assume all rights and obligations of the Developer pursuant to this Agreement.

Section 9.2. Notices. 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:

DEVELOPER: CITY:

Bell Gardens ZG Associates,
LLC
1 Corporate Park
Suite 112
Irvine, CA 92606
Attn: Alejandro “Alex” Calleres
(323) 719-7376
[email protected]

PROPERTY OWNER:

Rodriguez Family Trust
9710 Shellyfield Road
Downey, CA 90240
Attn: Mary Helen Rodriguez
(562) 505-3131
[email protected]
City of Bell Gardens
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Michael B. O’Kelly, City Manager
(562) 806-7702
[email protected]

CITY ATTORNEY:

Olivarez Madruga Law Organization, LLP
500 South Grand Ave, 12th Floor
Los Angeles, CA 90071
Attn: Stephanie Vasquez
(213) 744-0099
[email protected]

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27 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 9.6. 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 9.10. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory. "May" or "can" are permissive.

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28 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 9.15. 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.

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.

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29 [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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30 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

City of Bell Gardens, a municipal
corporation

By:

Michael B. O’Kelly
Bell Gardens City Manager

Date:

Approved as to Form

By:

Stephanie Vasquez
City Attorney

Date:

DEVELOPER

Bell Gardens ZG Associates, LLC
[Notarized Signature Required]

By:_______________________________

Name: ___________________________

Title:______________________________

Date:

PROPERTY OWNER

Rodriguez Family Trust

[Notarized Signature Required]

By:______________________________

Name:____________________________

Title:_____________________________

Date: ___

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31 EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

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32 EXHIBIT “B”

SITE PLAN

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33 EXHIBIT “C”

FLOOR PLAN

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34 EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

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35 EXHIBIT “E”

SECURITY PLAN

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36 EXHIBIT “F”

CONDITIONS OF APPROVAL

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RESOLUTION #PC 2025-04

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS APPROVING CONDITIONAL USE PERMIT NO. 2024-015 FOR A CANNABIS RETAIL USE AT 6300 GAGE AVENUE IN BELL GARDENS,

CALIFORNIA
WHEREAS, Alejandro Calleres representing Bell Gardens ZG Associates, LLC (Applicant), has requested approval of a conditional use permit (CUP) and a development agreement (DA) to perform tenant improvements to an existing commercial structure and to operate a storefront cannabis retail business in the City of Bell Gardens (City); WHEREAS, the Applicant proposes tenant improvements to a 1,512 square-foot (SF) suite (Unit B) of an existing, vacant one (1)-story 2,572 SF commercial building located at 6300 Gage Avenue (Subject Site) 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 the Subject Site; WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months unless an applicant executes a DA with the City;
WHEREAS, the Subject Site is designated as Mixed Use (Commercial/Residential) (MU) in the City’s General Plan Land Use Element;
WHEREAS, the MU Land Use designation has been concentrated on parts of Gage Avenue and Eastern Avenue and refers to a combination of commercial and residential uses working in tandem;
WHEREAS, the corresponding zone for the MU Land Use Element designation is the Mixed-Use Commercial/Residential (M-U) Zone, which conditionally permits a cannabis use, subject to certain siting requirements and development standards and the Subject Site is currently located within Zone M-U;
WHEREAS, the intent and purpose of Bell Gardens Municipal Code (BGMC) Chapter 9.20 is to provide “supplementary 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 Chapter 9.50 of the BGMC, 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 DA 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;

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Resolution #PC 2025-04

Page 2 ends

WHEREAS, the approval of CUP No. 2024-015 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, where applicable, 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 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 3 because the Project would reactivate a currently vacant commercial suite at the Subject Site into a new commercial use, thereby enhancing the appearance and economic vitality of the area and emphasizing the commercial identity of the commercial areas in the City; WHEREAS, Policy 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 5 because it would involve the redevelopment and reactivation of a commercial site;
WHEREAS, the Project is also consistent with Policy 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;
WHEREAS, the approval of CUP No. 2024-015 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 BGMC Section 9.20.160, inclusive of the 600-foot distancing requirement of day care centers, youth centers, schools, and parks and 500-foot

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Resolution #PC 2025-04

Page 3 ends

distancing requirement from any other cannabis uses;
WHEREAS, the Project’s Lighting Plan, Odor Mitigation Plan, and Security Plan (collectively incorporated herein by reference) 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 an approximately 11,410 SF parcel of land, triangular in shape, and is currently developed with a 2,572 SF 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, the Project proposes to address concerns relating to safety, odor, and nuisance with lighting, odor mitigation, and security plans that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code Section 65864 et seq. (Development Agreement Statute), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights on real 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;

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Resolution #PC 2025-04

Page 4 ends

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 February 19, 2025, and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2024-015 and a proposed ordinance approving a development agreement authorizing the Project and 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. 2024-015 to authorize a cannabis retail use at the Subject Site;
WHEREAS, the Planning Commission continued consideration of the matter until the March 19, 2025 Planning Commission Meeting, where the Planning Commission reopened the public hearing and considered public comments, additional presentations made by staff and relevant staff report;
WHEREAS, at the close of the public hearing, the Planning Commission directed staff to revise certain conditions of approval related to the security of the Subject Site, hours of operation, and incorporate additional community benefits aimed at the City’s youth for scholarships, sponsorship of youth athletics and subsidize youth programming at the City’s aquatic facility into the proposed development agreement and continued the item to the April 16, 2025 Planning Commission Meeting;
WHEREAS, at the April 16, 2025 Planning Commission Meeting, the Planning Commission reopened the public hearing, considered public comments, additional presentations, the relevant staff report and revised materials prepared by staff inclusive of the proposed conditions of approval and development agreement; and WHEREAS, after the close of the public hearing, the Planning Commission adopted Resolution #PC 2025-04, conditionally approving CUP No. 2024-015.

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

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

SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2024-015:
i. Is not in conflict with the General Plan for the area and complies with the standards in Title 9 of the BGMC.
ii. Does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare. iii. The Subject Site for the proposed conditional use is adequate in size, shape, and topography to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in BGMC Title 9, as required by the Planning Commission as a condition of approval in order to integrate said use with the existing uses in the neighborhood. iv. The Subject Site for the proposed conditional use is served by highways or streets adequate in width and improved as necessary to carry the kind and quantity of traffic such use would generate.
v. The Subject Site is served by the required utilities, including electricity and water supply of quantities and pressures required by the fire code to provide adequate protection.

SECTION 3. In accordance with CEQA and the CEQA Guidelines, CUP No. 2024- 015 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. 2024-015 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.

PASSED, APPROVED AND ADOPTED this 16th day of April 2025.

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______________________________________

ERNESTO RAMIREZ, CHAIRPERSON
ATTEST:
________________________________________

LILLY CARRILLO, PLANNING SECRETARY
APPROVED AS TO FORM:
________________________________________

LLOYD PILCHEN, ASSISTANT CITY ATTORNEY

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EXHIBIT “A”
CUP NO. 2024-015 – 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 13 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. 2024-015.
d. The terms and conditions set forth in DA No. 2024-015.

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. 2024-015 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. 2024-015 shall be valid strictly for a DCC Type 10 license as defined by the state Department of Cannabis Control. 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.

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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. 2024-015 unless DA No. 2024-015 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. 2024-015 shall be valid strictly in compliance with DA No. 2024-015; 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. 2024-015 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. 2024-015, 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. 2024-015 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).

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10. Prior to issuance of a building permit, the owner or owners of the lot or parcel of land on which parking is to be provided shall record an agreement in the office of the county recorder of Los Angeles County, California, as a covenant running with the land for the benefit of the City and the benefited lot, providing that such owner or owners of the subservient lot and their heirs, assigns, or successors in interest will continue to maintain the parking facilities so long as the building or use they are intended to serve is maintained, and the principal use will cease to be maintained if the off-site parking facilities are not maintained as such.

11. 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. 2024-015 and the BGMC, including but not limited to the operating requirements set forth in BGMC Section 5.64.040 and all state and county laws and regulations.

12. Prior to commencing operations, Applicant and/or owner/operator must possess a valid retail license, issued by the DCC, pursuant to Division 10, commencing with Section 26000, of the California Business and Professions Code.

13. Prior to commencing operations, the Applicant and/or 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 Applicant and/or 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.

14. The Director of Community Development and/or their designee(s) shall be authorized to make minor modifications to this CUP No. 2024-015 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.

15. 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.

16. 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.

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

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18. 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.

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

20. 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.

21. 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.

22. 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 telephones shall be prohibited on the Subject Site and the public ROW.

23. The hours of retail operation at the Subject Site shall be restricted as follows: 10:00 A.M. until 9:00 P.M., Monday through Sundays, with the last delivery order to be placed by 8:00 P.M. and all delivery vehicles returned no later than 9:00 P.M.

24. The installation of signs on the Subject Site shall be in accordance with the provisions in BGMC Chapter 9.40. 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.

25. 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.

26. 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 to guarantee adequate security measures are provided on the Subject Site, inclusive of the surface parking lot, at all times.

27. There shall be no outdoor storage permitted on the Subject Site at any time.

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Cannabis Retail – Conditional Use Operating Conditions

28. 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.

29. The establishment shall only allow patrons of the age twenty-one (21) and older, with presentation of a valid government-issued identification card, or eighteen (18) and older with a physician’s recommendation.

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

31. 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.

32. 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.

33. Applicant and/or owner/operator shall create and maintain an account within the DCC Track and Trace System prior to engaging in any commercial cannabis activity, including:
a. All commercial cannabis activity shall be accurately recorded in the Track and Trace System.
b. Applicant and/or owner/operator shall be responsible for the accuracy and completeness of all data and information entered into the Track and Trace System. The Applicant and/or owner/operator is responsible for all actions taken by the designated account manager or account users while track and trace activities.
c. A person shall not intentionally misrepresent or falsify information entered into the Track and Trace system.

34. Records of all sales, whether cash, debit or credit, must be receipted, kept and reported as required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under Title 18, California Code of Regulations, Sections 1698 and 4901.

35. All cash sales must be receipted, and all information captured in the Track and Trace

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System established pursuant to Business and Professions Code Section 26067, including but not limited to, aggregated sales or transfer information, as applicable.

36. Applicant and/or 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.).

37. Applicant and/or owner/operator shall perform, pre-employment background checks, to be conducted by an accredited member organization of the National Association of Background Screeners, and recurrent background checks performed.

38. Applicant shall provide at least one dedicated security personnel on site, twenty-four (24) hours a day, seven (7) days a week, and one designated manager on-site during operational hours.

39. Applicant shall provide second security personnel on site, for the purpose of patrolling exterior of the Subject Site, Monday through Friday, between the hours of 1:00 P.M. through 5:00 P.M.

40. Applicant shall provide a back-up power supply, for at least twenty-four (24) hours, to power the retail operations in the event of a power outage.

41. 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.

42. The display of cannabis and cannabis products shall be interior only (no outdoor display) at all times.

43. 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.

44. 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.

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

46. 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.

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47. There shall be no sale of cannabis and cannabis products over the daily legal limit to any single patron at any time, pursuant to California Health and Safety Code Section 11357.

48. All cannabis and cannabis products purchased by patrons shall not leave the Subject Site unless they are placed in an opaque packaging at all times.

49. Consumption of cannabis and cannabis products on-site is strictly prohibited, outside of the building either on the public right-of-way (ROW) or anywhere on the Subject Site at all times.

50. 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.

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

52. 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.

53. The facility shall operate in accordance with the Security Plan, incorporated by reference and attached hereto, 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.

54. The facility shall operate in accordance with the Lighting Plan, incorporated by reference and attached hereto, 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.

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

56. 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.

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Building/Site Improvements

57. The proposed site improvements on the Subject Site shall be subject to review and approval by the Planning and Building and Safety Divisions. All proposed improvements shall be completed in accordance with the provisions of the California Building Code as amended by Title 26 of the Los Angeles County Building Code. All required permits from the Building and Safety Division shall be secured prior to commencing the construction of the Project. For the purposes of this CUP, the term “construction” includes any demolition, grading, and construction activities, inclusive of tenant improvements.

58. The Project shall be constructed in substantial compliance with the approved site plan.

59. All improvements at the Subject Site shall comply with all Americans with Disabilities Act (ADA) of 1990 requirements as part of the Building and Safety plan check process.

60. 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.

61. Vehicles associated with the construction activities at the Subject Site shall not be permitted to park on the public ROW.

62. Temporary storage of building materials shall be contained within the Subject Site and shall be properly secured and screened during all stages of construction.

63. 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.

64. 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.

65. The Project approval includes no considerations 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 BGMC Section 9.40.030. Sign plans shall include elevations, lettering, colors, dimensions, installation methods, type of lighting and such other information as may be required to assure compliance with all appropriate regulations of the City.

66. 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

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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.

67. 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 BGMC Section 9.20.160(B)(3), windows facing the street frontage shall be 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 BGMC Section 9.20.160(D).

68. 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.

69. 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.

70. 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 Division prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.

71. 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.

72. 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 BGMC Section 9.20.160(D).

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73. 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.

74. 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 Division, 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.

75. 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.

76. 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 BGMC Section 9.20.160(D).

77. The Project shall maintain the existing six-foot (6’)-high trash enclosure; if the Applicant and/or owner/operator 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. 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.

78. The Project shall adhere and maintain lighting at the Subject Site consistent with the submitted Lighting Plan attached hereto and incorporated by reference, at all times for the life of the permit.

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Landscaping

79. Prior to plan check submittal to the Building and Safety Division for all improvements proposed on the Subject Site, the Applicant and/or owner/operator shall submit landscaping and irrigation plans prepared by a licensed landscape architect for review and approval by the Community Development Department prior to the issuance of any building permit. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

80. A permanent automatic landscape irrigation system shall be installed for all landscaped areas subject to review and approval by the Community Development Department prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.

81. All designated landscaping areas, including but not limited to parkway areas shall be fully planted prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.

The type, number, size, and location of all planting material including but not limited to trees, shrubs, groundcover, and sod shall be subject to review and approval by the Community Development Department prior to issuance of any Project building permit. Planting material shall be drought resistant. Landscaped areas shall always be maintained by the Applicant and/or owner/operator during Project operations for the life of the permit.

82. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all planter and landscaped areas, unless otherwise specified on the plans, shall be protected with a six-inch (6”) concrete curb.

Los Angeles County Fire Department (Fire Department)

83. The Applicant shall obtain all required Fire Department approvals 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.

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

85. 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.

86. Prior to the issuance of a Project building permit, the Applicant and/or owner/operator 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

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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 BGMC Section 9.20.160(D).

87. Prior to the issuance of a Project building permit, the Applicant and/or owner/operator 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.

88. 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.

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

Public Works Department

90. All Design Standards and Parameters shall be per the County of Los Angeles and the City of Bell Gardens. If a conflict arises between these standards, the City of Bell Gardens Standards shall prevail.

91. Prior to the issuance of a Project building permit, the Applicant shall prepare all on- Subject Site and off-Subject Site improvements plans and specifications in compliance with the ADA and shall dedicate all necessary public ROW to complete the improvements to the satisfaction of the City Engineer.

92. Prior to the issuance of a Project grading permit, the Applicant shall conduct their operations in a manner that will not violate the current National Pollutant Discharge Elimination System (NPDES) City Permit or Stormwater Pollution Prevention Plan (SWPPP). Subject Site parking lot drainage shall be directed to new planters noted on plan as applicable.

93. Prior to the issuance of a Project grading permit, the Applicant shall comply with all rules and conditions for the Water Quality Board and shall conduct their construction operations accordingly.

94. Prior to the issuance of a Project grading permit, the Applicant shall provide explanation and location of trash receptacle/enclosures, and/or turning radius analysis that a trash truck can negotiate through the Subject Site. All trash operations shall comply with current waste reduction regulations including green and organic wastes.

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95. Public ROW improvements shall include the replacement of curb/gutter and sidewalk as required to eliminate trip hazards or ADA compliance issues in compliance with ADA Guidelines along Gage and Darwell frontage lines. Coordinate slot cutting of existing pavement for construction of the improvements and AC paving prior to issuance of building permit. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

96. The Applicant shall paint the curb with street address accordingly 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.

Parking Lot/Site Maintenance

97. 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.

98. 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 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 and for the life of the permit.

99. 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 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 at all times.
100. 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 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.
101. Any required ADA truncated domes shall be composed of stamped concrete and shall be a dark gray color 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.

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102. 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 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 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.
103. Inoperable vehicles shall not be parked within any designated parking spaces, drive aisle, or public ROW adjacent to the Subject Site at any time. 104. 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 Chapter 9.32 (Fence, Walls, and Hedges) of the BGMC. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).
105. 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 southeast and south west property lines of the Subject Site shall be installed, where applicable, to the satisfaction of the Community Development Department. 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.
106. 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. 107. A total of eight (8) bicycle parking spaces shall be installed onsite at the Subject Site to satisfy parking requirements and support the automobile parking space discount of one (1) parking space.

Miscellaneous
108. 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

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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.
109. The Applicant shall sign, notarize, and return to the Community Development Department an affidavit accepting all conditions of approval of this CUP No. 2024- 015 within fifteen (15) days from the approval of Resolution #PC 2024-24 and CUP No. 2024-015. The Applicant acknowledges and understands that all conditions set forth in this Resolution are conditions precedent to the Commission’s grant of approval and failure to comply with any condition contained herein shall render this CUP non-binding as against the City and shall confer the Applicant no legal rights under the law. This conditional use permit shall not become effective unless and until the Applicant returns the fully executed, notarized affidavit to the Community Development Director within the time stated. Failure to comply with this condition within the prescribed time period above shall render this CUP null and void.

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RESOLUTION #PC 2025-05

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

BELL GARDENS RECOMMENDING THE ADOPTION OF ORDINANCE
NO. 953 AUTHORIZING THE EXECUTION OF DEVELOPMENT
AGREEMENT NO. 2024-015 BY AND BETWEEN THE CITY OF BELL

GARDENS, BELL GARDENS ZG ASSOCIATES, LLC, AND THE

RODRIGUEZ FAMILY TRUST

WHEREAS, Alejandro Calleres, representing Bell Gardens ZG Associates, LLC (Applicant), has requested approval of a development agreement (DA) and a conditional use permit (CUP) to develop and operate a storefront cannabis retail business in the City of Bell Gardens (City);

WHEREAS, Ordinance No. 953 would authorize the City to enter into and execute a development agreement to establish certain development rights at 6300 Gage Avenue, Unit B (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 the City, Bell Gardens ZG Associates, LLC, and the Rodriguez Family Trust 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. 2023-043 (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;

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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;

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 seven percent (7%) of gross receipt sales;

WHEREAS, pursuant to the City’s Development Agreement Procedures, 80 percent (80%) of the public benefits derived from DA No. 2024-015 shall be dedicated to youth and educational programming and resources for the City’s housing programs;

WHEREAS, Policy 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 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 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 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 the surrounding community;

WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (Planning

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Commission) to conduct a public hearing to review a proposed development agreement;

WHEREAS, DA No. 2024-015 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. 2024-015 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 result in no 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 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

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that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would cause no 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 February 19, 2025;

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. 2024-015 between the City, the Applicant, and the Property Owner for a potential term of up to 10 years in exchange for public benefits;

WHEREAS, the Planning Commission continued consideration of the matter until the March 19, 2025 Planning Commission Meeting where the Planning Commission reopened the public hearing and considered public comments, additional presentations made by staff and relevant staff report;

WHEREAS, at the close of the public hearing, the Planning Commission directed staff to revise certain conditions of approval related to the security of the Subject Site, hours of operation, and incorporate additional community benefits aimed at the City’s youth for scholarships, sponsorship of youth athletics and subsidize youth programming at the City’s aquatic facility into the proposed development agreement and continued the item to the April 16, 2025 Planning Commission Meeting;

WHERAS, at the April 16, 2025 Planning Commission Meeting, the Planning Commission reopened the public hearing, considered public comments, additional presentations, the relevant staff report and revised materials prepared by staff inclusive of the proposed conditions of approval and development agreement; and

WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2025-05, recommending to the City Council the approval of Ordinance No. 953.

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

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

SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2024- 015:

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i. Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;

ii. Promotes the public health, safety, and general welfare;

iii. Is just, reasonable, fair, and equitable under the circumstances; and

iv. Provides sufficient benefit to the community to justify entering into the agreement.

SECTION 3. The Planning Commission hereby adopts this Resolution recommending to the City Council the approval of DA No. 2024-015 through the adoption of an ordinance and authorizes the City Attorney to make clarifying changes as necessary to effectuate the terms of the DA.

SECTION 4. The Planning Commission hereby transmits and recommends to the City Council the approval of an ordinance to authorize DA No. 2024-015 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 16th day of April 2025.

________

ERNESTO RAMIREZ, CHAIRPERSON

ATTEST:

LILLY CARRILLO, PLANNING SECRETARY

APPROVED AS TO FORM:

LLOYD PILCHEN, ASSISTANT CITY ATTORNEY

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RESOLUTION #PC 2025-09

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS DENYING CONDITIONAL USE PERMIT NO. 2024-015 FOR A CANNABIS RETAIL USE AT 6300 GAGE AVENUE IN BELL GARDENS,

CALIFORNIA

WHEREAS, Alejandro Calleres, representing Bell Gardens ZG Associates, LLC (Applicant), has requested approval of a conditional use permit (CUP) and a development agreement (DA) to perform tenant improvements to an existing commercial structure and to operate a storefront cannabis retail business in the City of Bell Gardens (City);

WHEREAS, the Applicant proposes tenant improvements to a 1,512 square-foot (SF) suite (Unit B) of an existing, vacant one (1)-story 2,572 SF commercial building located at 6300 Gage Avenue (Subject Site) 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 the Subject Site;

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 Chapter 9.50 of the BGMC, the Planning Commission to approve a CUP for a cannabis retail use with conditions that the applicant proposed were sufficient to ensure the use would 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, although the Subject Site meets the siting requirements including the areas that prohibit a cannabis retail use pursuant to BGMC Section 9.20.160 (i.e., the 600- foot distancing requirement of day care centers, youth centers, schools, and parks and 500- foot distancing requirement from any other cannabis uses), the Planning Commission is

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concerned over two (2) public schools that exist within a 1,500-foot radius of the Subject Site which would increase minors’ exposure to cannabis on their daily routes to school;

WHEREAS, Pursuant to BGMC Section 9.20.160(C)(2), a CUP requires submittal of a 1,500-foot radius map showing the location of all cannabis retailers, day care centers, youth centers, and schools within this radius at the time of application submittal;

WHEREAS, Although not located within the prohibited 600-foot radius, Cesar Chavez Elementary School and Bell Gardens High School are located within the 1,500-foot documentation radius;

WHEREAS, Bell Gardens High School is approximately 897 feet away from the Subject Site and Ceaser Chavez Elementary School is approximately 800 feet away from the Subject Site;

WHEREAS, the location of the Subject Site on Gage Avenue is adjacent to residential uses and experiences heavy foot traffic from students and families walking to and from the aforementioned nearby elementary and high school, exposing minor children to cannabis;

WHEREAS, the operation of a cannabis retail store in an area regularly frequented by children attending nearby schools would increase minors’ exposure to and ability to access cannabis, to the detriment of the public health, safety, and general welfare;

WHEREAS, the Applicant’s Security Plan does not adequately address all security threats and concerns, including but not limited to how Applicant’s security personnel would manage students loitering near the Applicant’s storefront and parking lot;

WHEREAS, the Applicant would deploy solely one (1) security guard during operating hours but does not plan to employ on-site security to guard the store after hours, which would increase the risk of theft and other criminal activity and thereby create a public nuisance;

WHEREAS, BGMC Section 9.50.050 permits the Planning Commission to approve a CUP for cannabis retail use only if the Planning Commission finds that the proposed use (1) is not in substantial conflict with the general plan for the area and shall comply with the standards of this title unless appropriate findings for a variance can be made, (2) does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare, (3) is located at a site that is adequate in size, shape, and topography to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in this title, or as required by the commission as a condition in order to integrate said use with the uses in the neighborhood, (4) is located at a site that 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, and (5) is located at a site served by the required utilities, including electricity, and water supply of qualities and pressures required by the fire codes to provide adequate fire protection;

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WHEREAS, approval of CUP No. 2024-015 would jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare of the community because the Applicant’s operation of a cannabis retail store at a location with heavy student foot traffic without adequate security would adversely impact the health and safety of community members, specifically the children attending the nearby schools;

WHEREAS, pursuant to Government Code Sections 65090 and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on February 19, 2025, and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2024-015 and a proposed ordinance approving a development agreement authorizing the Project for a term of 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. 2024-015 to authorize a cannabis retail use at the Subject Site;

WHEREAS, at the April 16, 2025 Planning Commission Meeting, the Planning Commission reopened the public hearing, considered public comments, additional presentations, the relevant staff report and revised materials prepared by staff inclusive of the proposed conditions of approval and development agreement; and

WHEREAS, after the close of such public hearing, a majority of the membership of the Planning Commission found that the Project does not meet the required finding pursuant to BGMC Section 9.50.050, because the Project would jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare.

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

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

SECTION 2. The Planning Commission is unable to make the required findings to grant CUP No. 2024-015 pursuant to BGMC Title 9, Section 9.50.050, because the Project would jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare.

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Bell Gardens City CouncilJune 9, 2025

Bell Gardens City Council
June 9, 2025