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Cathedral City City Council
January 26, 2022

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Staff Report

City Council

Item No. 6.A

Meeting Date: January 26, 2022
From: Stone James, Economic Development Director
Title: Hall of Flowers Trade Show Special Use Permit (SUP) for May 2022

City Council

RECOMMENDATION:

Approve Special Use Permit (SUP) No. 22-___ with the attached Conditions of Approval.

BACKGROUND:

The Hall of Flowers (HOF) is a two-to-three-day business-to-business cannabis industry trade show. The purpose of this 21 -and-over industry-only trade show is to showcase and pro mote trade among licensed cannabis businesses across flower, concentrate, edible, topical, and accessory categories. This event is not open to the public. Due to the regionality of the cannabis industry, Dani Diamantstein, the owner and creator of the HOF event (CLTV8, LLC or Applicant) is proposing to return to Cathedral City to host their second HOF tradeshow Tuesday, May 3 rd, through Thursday, May 5th, 2022 (Event). This Cathedral City event, designed to serve the Southern California cannabis market, wil l complement the Applicant’s fifth HOF event in Santa Rosa, CA which is planned to be held in the fall of 2022.

The event is proposed to be held at the former Burlington Coat Factory building located at 35900 Date Palm Drive (Building). The Event would run from 10:00am to 7:00 pm each day.

DISCUSSION:

The Applicant is proposing a maximum total occupancy of 4,000 attendees per day or 35% below the maximum indoor and outdoor occupancy of approximately 6,132 individuals. This 4,000-maximum person per day figure represents approximately a 14% increase in total participants from the December 2021 event. Included within this 4,000 - person per day maximum would be 1,200 to 1,400 exhibitors. The Applicant will provide each Cathedral City -based cannabis retailer tw o tickets (at no cost) to help engage, showcase, and promote Cathedral City businesses to other businesses in attendance.

Since the Building is currently unoccupied, the Special Use Permit would require a Temporary Certificate of Occupancy (TCO) for the Event. This Event -specific TCO

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would be granted 30 -days prior to the Event in the event a Conditional Use Permit (CUP) for the Building has not received City approval. The Building owner would be responsible for meeting all Fire, Police, Planning, Engineer ing, and Building and Safety Department requirements necessary to obtain a TCO.

Circulation, Transportation, and Parking
The Building is located on Date Palm and Gerald Ford Drives, two of the City’s largest transportation corridors facilitating vehicular access to the site. To ensure all on - site and off-site circulation ran smoothly for the event in December 2021, the Applicant hired an Event consultant to create a traffic management plan. This consultant, in coordination with the Director of Engineeri ng and Public Works, created the attached traffic management plan. This traffic management plan addressed City traffic, parking, and directional signage requirements. Due to the success of the Event and the traffic management plan, the Applicant proposes u tilizing the same plan for the May 2022 Event. The applicant will meet with the Director of Engineering and Public Works in February 2022 to revise and update the traffic management plan as necessary . The attached traffic management plan, in concert with t he attached conditions of approval, address all requirements from the City Engineering, Public Works, Police, and Fire Departments. A final traffic control plan must be submitted to the City Engineer for review and approval ten business days prior to the Event.

Since there will be limited onsite parking, the Applicant has a rental agreement and is providing insurance coverage to the City Urban Revitalization Corporation (CURC) for the 13.5 acres (Off -site Parking) located on the southwest corner of Date P alm Drive and East Palm Canyon for the Event.

The Off -site Parking is estimated to accommodate 1,755 vehicles. Cathedral City Municipal Code Section 9.58.020(c) requires a parking ratio for “assembly -type” uses of “one space for every five persons, based on the total occupancy permitted by the Uniform Building Code” or for the Event, 700 spaces. If a more conservative parking requirement of one space to every three persons, or 1,166 spaces, was required, Off-site Parking still meets peak Event parking nee ds. The Applicant is required to provide area lighting; may need to reapply gravel to entrances/exits and main drive aisles to ensure a ¾” to 1” coverage; have a street sweeper on standby to remove dirt track-out from City streets; a water truck to control any on-site fugitive dust; two security guards; and parking assistants to direct Event attendees. At the end of the Event, the Applicant is required to apply a soil sealer to all disturbed dirt.

Event attendees will be guided to the Off -site Parking through message boards located along Date Palm Drive and East Palm Canyon. Upon arriving at the Off-site Parking and being directed where to park, parking shuttles will pick up and drop off attendees on “A” Street immediately south of East Palm Canyon and eas t of Van Fleet Avenue.

Additional event signs and message boards will be placed on Date Palm Drive and Gerald Ford Drive as a part of the overall traffic management plan.

Attendees utilizing the Off -site Parking site will be shuttled between the parking lot and the Building by dedicated shuttles. The frequency of the shuttle service will be determined by a transportation management service prior to the Event. Engagement

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and usage of a shuttle/transportation management service will be a condition of SUP approval.

The Applicant will provide and advertise a dedicated pick up and drop off area for ride sharing services (Uber, Lyft and taxis) at the off -site parking lot. To address any potential event departure issues the Applicant would like to close the se cond lane of Gerald Ford between 4pm -8pm on the event days. This single -lane closure of Gerald Ford would beg in from the 1st driveway east of Date Palm to just west of the second driveway east of Date Palm. This temporary lane closure would be addressed in the Traffic Management Plan. See event map for further details. The temporary closure of only the second lane of Gerald Ford between the two driveways is being done in response to concerns about ensuring west -bound Gerald Ford traffic continues flowing smoothly past the site.

Surrounding Businesses and Residences
U.S. Bank and the Casa Blanca Restaurant share driveways and are adjacent to the Building/Event. In recent discussions with Casa Blanca, the restaurant owner is not interested in entertaining a buy-out agreement with the Applicant.

With U.S. Bank’s permission, the Applicant would like to redirect all bank customers to access bank parking from Date Palm Drive during Event hours. A Date Palm Drive entrance for bank customers and employees will ensur e ease of ingress & egress and minimize the potential for any Event -related parking within the bank parking lot. During the December 2021 event, the Applicant worked with U.S. Bank management and provided 1-hour temporary event parking passes to bank patro ns. A security guard will be stationed at the Gerald Ford Drive entrance & Date Palm Drive entrance to further enforce only bank employees (approximately eight per day) and customers (approximately 200 -300 customers per day) utilize the bank’s parking lot. No event parking will be allowed in U.S. Bank’s parking lot. The footprint of the Event falls outside of U.S. Bank’s property lines and does not incorporate any of U.S. Bank’s property. The Applicant has provided U.S. Bank ten additional parking spaces to ensure there is adequate parking for the bank customers.

Based on the specific feedback received from the Jardin De Leones (JDL), a security officer will be stationed at the entrance to JDL. This security guard will ensure no event - related parking occurs on JDL property and that ingress and egress to and from JDL is not restricted. This security guard will also periodically walk the Event driveway between the length of the Event and JDL to ensure noise levels are below allowable CCMC limits and that there is no smell emanating from the Event. Staff is in the process of meeting with representatives from JDL to better understand their concerns and ensure said concerns are addressed in this SUP.

Based on the feedback provided from various Mission Plaza patro ns, Event staff will work with Rich Eaton to ensure Event guests do not hinder non -event guests from accessing Mission Plaza businesses.

Police and Fire
The Applicant has worked with both CCPD’s Commander Luna and CCFD’s Chief Muhr. The needs of both Dep artments have been incorporated into the attached

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Emergency Response Plan. The Applicant has agreed to pay the fully burdened rate for six CCPD officers and one supervisor each day of the Event. These officers will assist with traffic control and overall E vent security. The Applicant will also hire a State licensed security company to assist in the monitoring and control of the Event.

A California State Licensed Architect conducted an occupancy load analysis before the event in December 2021 and determine d the maximum indoor occupancy was 3,105 persons or 3,420 if the roll up doors are used as an emergency exit. This maximum occupancy for the indoor portion of the May 2022 Event is consistent with the occupancy load analysis. The maximum outdoor occupancy is estimated at 2,712 placing the total allowable occupancy for the event (6,132 individuals) 53% above the Applicant’s anticipated maximum occupancy of 4,000. To help ensure the safety of all Event attendees, the Applicant will pay for an ambulance and tw o CCFD paramedics be stationed on-site at a fixed post during Event operating hours.

Emergency Ingress and Egress
In the attached site plan, the Applicant identifies all entrances and exit points as monitored and secured. The attached Emergency Plan has b een reviewed and approved by CCPD and CCFD. On page 35 of the Security Plan, the Applicant stipulates eighteen security guards will be located throughout the building, building perimeter and Event ticketing entrance during operating hours. All security gua rds will be licensed through the State. Overnight, there will be one security supervisor and two security guards roving the exterior area within the event footprint. The plan identifies an additional nine exterior operations personnel to assist with vehicl e, shuttle, and pedestrian traffic during operating hours.

Amplified Sound
The Event is planning on utilizing low -level amplified sound during operating hours using small speakers located in the indoor and outdoor areas. Amplified sound at the perimeter fencing will not exceed 80 dBA.

Restrooms
Additional bathrooms are being provided to augment the already existing on -site bathrooms. Collectively, all bathrooms (existing and portable) will meet the needs of the maximum number of Event attendees. Existing bathrooms meet ADA requirements.

Additional restrooms, including at least one ADA-accessible restroom, will be located on the north side of the building.

Lighting
Existing parking lot lights are anticipated to meet any lighting needs within the Outd oor and food court areas.

Cannabis Products
In accordance with state & local laws, cannabis products may be purchased at the event through licensed commercial cannabis retailers. Cannabis products will be sold at a nominal value. Purchases are limited to single-serving sample-sized products only.

Bulk purchases are not allowed, and all Department of Cannabis Control daily purchasing limits apply to all attendees. The Applicant will make their best effort to partner with local dispensaries to conduct ca nnabis sales at the event. The Applicant

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and their licensed retail partners will follow all State guidelines including but not limited to maintaining all State required point of sale tracking and recording devices. All State and local taxes will be paid on all sample purchases.

On-site Consumption
The Applicant has requested an on -site consumption area within a 56,000 square foot walled-in area (“Outdoor Area”) located immediately west of the Building’s main entrance. Pursuant to State requirements, the outdoor area will be surrounded by an eight-foot tall, screened chain link fence. This fence will block all views of the Outdoor Area from pedestrians and vehicles located outside of the Event. To address any odors generated from outdoor cannabis consumpt ion, the Applicant has contracted a leading industrial odor control to design an odor elimination system 50% larger than what is believed to be is required to neutralize any odors. More detail can be found in the attached Hall of Flowers 1200 CFM Vapor Pha se System proposal. Cannabis consumption is not allowed in any other areas on the property.

Odor Mitigation
The vapor control system is comprised of 10 -amp pump and approximately 800’ of eight-inch (8”) diameter ventilated ducting which will be mounted on the eight -foot perimeter fence along the north, west and south walls surrounding the Outdoor Area.

The ducting will distribute a natural, non -toxic odor neutralizer to address any cannabis odors. This odor mitigation system was successfully deployed at the event in December 2021, eliminating any odors generated from outdoor cannabis consumption. In the event any cannabis odors emanate from cannabis sample packages located in the dispensary portion of the event, the Applicant will utilize an odor elimina tor and additional barrier system between the dispensary and roll -up and pedestrian door area to ensure no smell exits the building.

Food
Adjacent to the Outdoor Area will be a 22,000 square foot food court area. The same fencing standards surround the food court area. The Applicant is planning on having a minimum of seven food trucks serving Event attendees. Based on the lunch - time demand during the December 2021 tradeshow, the Applicant has increased the number of food trucks from five to seven or more for the proposed Event. Additional food options are located within the Mission Plaza shopping center. A security guard will be stationed at all gates to ensure Event safety and ensure only ticketed attendees re - enter the Event.

FISCAL IMPACT:

The promo ter is required to pay for all City expense s including the $600 Special Use Permit Fee, fire inspection fees, Cathedral City Public Works Department services (e.g., move and return concrete k -rail barriers ); Cathedral City Police Department services (six P olice Officers and one Sergeant); and Cathedral City Fire Department services (two firefighter/paramedics). The Applicant will also submit a $2,500 deposit to the City for planning, engineering, and other Department review services.

The promoter is respon sible for covering all costs including but not limited to rental fee and deposits to CURC (if any), permits, land improvements, clean -up, security,

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trash removal, proper lighting, and proper insurance to cover city exposure at no less than $1 million in general liability coverage.

ATTACHMENTS:

1. HOF 2022 Special Use Permit Hall of Flowers_2022-01-10

3. HOF 2022 35900 Date Palm Site Map 2022-01-10

4. HOF 2022 Traffic Management Plan 2022-01-10

5. HOF 2022 Emergency Response Plan 2022-01-10

6. HOF 2022 Odor Mitigation Proposal_OMI from 2021-1-10

7. HOF 2022 35900 HOF Lease Letter for City 2022-01-05

8. HOF 2022 Cannabis Event Organizer License_2021-2022

9. HOF 2022 DCC Date Palm Site Map from 2021 Repaired

10. HOF 2022 Donation Letter 2022-1-10

2. HOF 2022 Conditions of Approval 2022-01-13
Comments - Sue Townsley

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