ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COMMERCE REPEALING ORDINANCE NUMBER 795, AND REVOKING RELATED DEVELOPMENT AGREEMENT NO 795 BETWEEN NOTSTAN LA INC. AND THE CITY OF COMMERCE WHICH ALLOWED COMMERCIAL CANNABIS ACTIVITIES AT 2620 SOUTH MALT AVENUE AND MAKING FINDINGS OF A CEQA CATEGORICAL EXEMPTION WHEREAS, the State of California enacted California Government Code Sections 65864 et seq. (“Development Agreement Statutes”) to authorize municipalities to enter into development agreements with those having an interest in real property to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development in connection with the development of real property within their jurisdiction; WHEREAS, the purpose of the Development Agreement Statutes is to authorize municipalities, in their discretion, to establish certain development rights in real property for a period of years regardless of intervening changes in land use regulations, to vest certain rights in the Applicant, and to meet certain public purposes of the local government; WHEREAS, as authorized by the Development Agreement Statutes, the City of Commerce (“City”) has adopted Resolution No. 18-50 (“A Resolution of the City Council of the City of Commerce Approving Procedures and Requirements for the Processing of Development Agreements”) establishing the procedures and requirements for the consideration of development agreements with the City; WHEREAS, on September 4 2018, City Council adopted Ordinance No. 700, concerning commercial cannabis regulations, which added new Chapter 5.61 “Commercial Cannabis Activities”, of Title 5, “Business Regulations and Licensing”, of the Commerce Municipal Code, and became effective October 4, 2018; WHEREAS, the purpose and intent of Ordinance No. 700 is to regulate the cultivation, manufacturing, testing, distribution, non-storefront retailer-delivery only, and microbusinesses, of medicinal and adult-use cannabis and cannabis products, and the ancillary transportation and delivery of same, in a responsible manner to protect the health, safety, and welfare of the residents of City of Commerce and to enforce rules and regulations consistent with the California Medicinal and Adult-Use Cannabis Regulation and Safety Act, and related laws, regulations, and policies issued by the State of California; WHEREAS, in October 2018, NotStan LA Inc. applied to this City for a Commercial Cannabis Permit (hereinafter "CCP”) to conduct Commercial Cannabis Activities. No such activities are allowed or authorized without a Development Agreement, a Commercial Cannabis Permit, and all requirements pursuant to City Ordinance No. 700, including all requirements pursuant to Commerce Municipal Code Section 5.61.060; WHEREAS, on May 7, 2019, City Council approved Ordinance 795 related to Development Agreement No. 795, which allowed for NotStan LA Inc. to conduct Commercial Cannabis activity at 2620 South Malt Avenue, in the City of Commerce; WHEREAS, development agreement No. 795 and 20 other development agreements were legally challenged via a lawsuit due to a procedural defect. The court ruled on behalf of the petitioner and found that the 21 development agreements were invalid due to a procedural defect. To address the procedural defect, City Council approved NotStan LA, Inc’s second reading of Ordinance No. 795 on May 10, 2022 and related development agreement No. 795; WHEREAS, on July 19, 2022, the applicant signed Development Agreement No. 795, which was subsequently executed by the City and recorded with the County of Los Angeles Registrar Recorders office; WHEREAS, prior to their new execution, NotStan LA Inc. had received their CCP license from the City to conduct legal cannabis operations on November 24, 2020. Since they received their CCP license, the operator has reported zero in every quarterly Cannabis Gross Tax Report; WHEREAS, on March 8, 2023, NotStan LA’s owner, Carlos Camara, emailed staff that they are no longer operating in the City of Commerce. A follow-up email was sent to the owner confirming the statement; however, an email bounce message informed that the email of Carlos Camara was deactivated. A letter was written and sent on April 18, 2023, to the owner and their attorney where staff confirmed the Owner’s statement and stated the intent to proceed with repealing their ordinance; WHEREAS, all procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21080 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15321 et seq. have been satisfied. Further, the City has found that the proposed action is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15321 [Class 21, “Enforcement Actions by Regulatory Agencies”]). This section specifically applies to actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency. In this case, the action is to repeal an ordinance approving Development Agreement No. 795; WHEREAS, pursuant to California Government Code Sections 65867 and 65090, the City of Commerce, on June 9, 2023, published a legal notice in the Los Cerritos News and mailed out to property owners within 500 feet of the subject property, indicating the public hearing to be held by the City of Commerce Planning Commission on June 21, 2023 to consider recommending action to the City Council on a proposed ordinance to repeal Ordinance Number 795 thereby revoking Development Agreement Number 795; WHEREAS, after conducting a hearing on June 21, 2023, the Planning Commission voted to adopt a resolution recommending that the City Council adopt an ordinance to repeal Ordinance No. 795 thereby revoking Development Agreement 795.
WHEREAS, all other legal prerequisites to the approval and adoption of this Ordinance have occurred.
NOW, THEREFORE, the City Council of the City of Commerce does ORDAIN as follows:
SECTION 1. That based upon staff reports, presentations, public testimony, and all other matters presented during the public hearing on this item, the City Council hereby finds and declares that the foregoing recitals are true and correct and are incorporated herein as a set forth in full.
SECTION 2. If any section, subsection, line, sentence, clause, phrase, word, part, provision, or portion of this Ordinance, or its application to any individual, entity, or circumstance, for any reason, is 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, and shall continue in full force and effect. To this end, any section, subsection, line, sentence, clause, phrase, word, part, provision, or portion of this Ordinance is severable. The City Council of the City of Commerce declares that this Ordinance would have been adopted by the City Council of the fact that any section, subsection, line, sentence, clause, phrase, word, part, provision, or portion thereof, might be declared to be invalid or unconstitutional.
SECTION 3. All procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21080 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15321 et seq. have been satisfied. Further, the City has found that the approval of the ordinance is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15321 [Class 21, “Enforcement Actions by Regulatory Agencies”]). This section specifically applies to actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency. In this case, the action is to repeal an ordinance related to a Commercial Cannabis Permit Application.
SECTION 4. This Ordinance shall take effect on the thirty-first (31st) day after its adoption.
PASSED, APPROVED AND ADOPTED this ____ day of __________, 2023. ____________________________
Hugo A. Argumedo
Mayor
ATTEST:
______________________
Lena Shumway
Secretary/City Clerk
APPROVED AS TO FORM:
______________________
City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMMERCE
I, LENA SHUMWAY, CITY CLERK of the City of Commerce do hereby certify that the foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Commerce held on the _____ day of ____________, 2023 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
City Clerk
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