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TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Travis Sais, Assistant to the City Manager
SUBJECT: Consideration and possible action to consider a Modification Application for one existing Cannabis Business Permit (“CBP”) for a dispensary use for NC3 Systems, Inc. (dba “Deli by Caliva”) at 9535 Artesia Blvd.
Date: June 13, 2022
EXECUTIVE SUMMARY
On May 20, 2022, NC3 System, Inc. (dba “Deli by Caliva”) submitted a Cannabis Business Permit (“CBP”) Modification Application (“Application”) for the City Council’s consideration. The Application explains the business interests, proprietors and ownership. Deli by Caliva submitted the Application due to an approved officer (Dennis O’Malley) leaving the company. The permittee states that the vacated position will not be filled at this time. The permittee notes that Mr. O’Malley’s departure does not change the ownership percentages or the management roles of the company. Staff and the City Attorney have reviewed the Application and determined it meets the requirements specified in Resolution No. 21-08. The Application was available for individual City Council Members to review. Should Deli by Caliva decide to fill the vacated position, the new officer would need to be vetted by the City as “Ownership,” which is defined in Resolution No. 21-08.
On February 28, 2021, Resolution No. 21-08 was adopted by the City Council allowing for CBP modification applications. In accordance with Resolution No. 21 -08, Deli by Caliva submitted its CBP modification application for the City Council’s consideration.
RECOMMENDATION TO CITY COUNCIL
1) Approve a Modification Application for one existing Cannabis Business Permit (“CBP”) for a dispensary use for NC3 Systems, Inc. (dba “Deli by Caliva”) at 9535 Artesia Blvd.; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
CBP modification applications are required to pay a review fee of $3,410.00 to recover processing costs. Deli by Caliva paid that fee on May 20, 2022. Deli by Caliva is also current on all taxes remitted to the City.
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Staff Report – NC3 System, Inc. (dba “Deli by Caliva”), Modification CBP Review June 13, 2022
ATTACHMENTS
City Attorney Memorandum – NC3 Systems, Inc (dba “Deli by Caliva”).………………....3 Resolution 21-08.………………………………………………………………………………..4
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Dan Koops
Mayor
Ray Dunton
Mayor Pro Tem
Raymond Y. Hamada
Council Member
Sonny R. Santa Ines
Council Member
Victor Sanchez
Council Member
December 6, 2021
To: Honorable Mayor, Mayor pro tem, and City Council
From: Karl H Berger, City Attorney
Re: CBP Modification Application for NC3 Systems, Inc. dba Caliva
On February 8, 2021, the City Council adopted Resolution No. 21-08. That Resolution, in combination with the Bellflower Municipal Code (“BMC”) and previously adopted resolutions and administrative policies promulgated by the City Manager (collectively, the “Cannabis Regulations”) govern the City Council’s consideration of whether to approve a Modified CBP.1
Resolution No. 21-08 defines “ownership” as either of the following:
“A. A person with an aggregate ownership interest of 25 percent or more in the person seeking a CBP or a permittee seeking a CBP Renewal, unless the interest is solely a security, lien, or encumbrance; [OR]
B. An individual who will be participating in the direction, control, or management of a permittee.”
Caliva submitted a number of documents containing tax-related information that is exempt from public disclosure.2 The documents may, however, be reviewed by authorized City officials to determine compliance with the Cannabis Regulations.
After reviewing Caliva’s application, it appears that it provided sufficient information to satisfy the requirements of the Cannabis Regulations regarding a Modified CBP.
Specifically, Caliva both identified the person (which, in this instance is a corporate person) that owns NC3 Systems, Inc. (which is CMG Partners, Inc.); and also identified the individuals (i.e., the natural persons) “who will be participating in the direction, control, or management of a permittee.” It is these persons who were subjected to background checks.
1 Defined as “an application requesting to modify an existing CBP by changing ownership or business name.” 2 See, e.g., Government Code §§ 6254(i); 6276.40; and 6276.44. -3-
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