CITY OF COMMERCE
PLANNING COMMISSION
RESOLUTION NO. 23-05
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
COMMERCE RECOMMENDING CITY COUNCIL ADOPT AN ORDINANCE TO REPEAL ORDINANCE NO. 782 THEREBY REVOKING DEVELOPMENT
AGREEMENT NO. 782
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 plannin rocess, encourage private participation in comprehensive planning, and reduce the economi 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 and to meet certain public purposes of the local government; WHEREAS, as authorized by the Development Agreement Statutes, the 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 ", 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, Green Leaf Corporation (formerly known as California Green World) 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 December 7, 2021, City Council approved Ordinance 782 related to Development Agreement No. 782, which allowed for Green Leaf 26 Corporation to conduct Commercial Cannabis activity at 6400 Fleet Street, in the City of Commerce; Planning Commission Resolution
June 21, 2023
WHEREAS, on January 20, 2022, the applicant signed Development Agreement No. 782, which was subsequently executed by the City and recorded with the County of Los Angeles Registrar Recorders office;
WHEREAS, since the execution of its Development Agreement, Green Leaf 26 Corporation has not provided any plans to commence its plan check process; WHEREAS, additionally, the City has made multiple attempts to request that Green Leaf 26 Corporation comply with their contractual obligation and pay the minimum Community Benefit Fees as prescribed in the duly executed Development Agreement No. 782. However, Green Leaf 26 Corporation failed to meet these financial obligations; WHEREAS, on May 30, 2023, Babak Zarabian, owner of Green Leaf 26 Corporation sent an email to CCP staff stating he is formally relinquishing his cannabis license due to personal reasons. On June 5, 2023, staff sent a response to Babak Zarabian agreeing to pursue a recommendation to repeal his 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. 782; 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 No. 782 to revoke Development Agreement No. 782;
WHEREAS, after conducting a duly noticed hearing on June 21, 2023, in conjunction with the City's applicable ordinances and resolutions, the Planning Commission of the City of Commerce reviewed, considered and recommended adoption of an ordinance to repeal Ordinance No. 782 thereby revoking Development Agreement No. 782 to the City Council; WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, the Planning Commission of the City of Commerce does hereby resolve, declare and determine 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 Planning Commission hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The Planning Commission of the City of Commerce hereby recommends the City Planning Commission Resolution
June 21, 2023
Council revoke Development Agreement No. 782 by adopting an uncodified ordinance to repeal Ordinance No. 782.
Section 3. If any section, subsection, line, sentence, clause, phrase, word, part, provision, or portion of this Resolution, 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 Resolution, 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 Resolution is severable. The Planning Commission of the City of Commerce declares that this Resolution would have been adopted by the Planning Commission regardless 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 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution, and enter it into the book of original resolutions.
PASSED, APPROVED and ADOPTED this 215t day of June 2023. 5188
Ernesto Gonzalez
Chairperson
ATTEST:
Mugr
Viviana M. Esparza, Secretary
CITY OF COMMERCE
PLANNING COMMISSION
RESOLUTION NO. 23-06
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
COMMERCE RECOMMENDING CITY COUNCIL ADOPT AN ORDINANCE TO REPEAL ORDINANCE NO. 795 THEREBY REVOKING DEVELOPMENT
AGREEMENT NO. 795
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 and to meet certain public purposes of the local government; WHEREAS, as authorized by the Development Agreement Statutes, the 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 ", 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 NotStanLA 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 Planning Commission Resolution
June 21, 2023
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 No. 795 to revoke Development Agreement No. 795;
WHEREAS, after conducting a duly noticed hearing on June 21, 2023, in conjunction with the City's applicable ordinances and resolutions, the Planning Commission of the City of Commerce reviewed, considered and recommended adoption of an ordinance to repeal Ordinance No. 795 thereby revoking Development Agreement No. 795 to the City Council; WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, the Planning Commission of the City of Commerce does hereby resolve, declare and determine 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 Planning Commission hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Planning Commission Resolution
June 21, 2023
Section 2. The Planning Commission of the City of Commerce hereby recommends the City Council revoke Development Agreement No. 795 by adopting an uncodified ordinance to repeal Ordinance No. 795.
Section 3. If any section, subsection, line, sentence, clause, phrase, word, part, provision, or portion of this Resolution, 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 Resolution, 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 Resolution is severable. The Planning Commission of the City of Commerce declares that this Resolution would have been adopted by the Planning Commission regardless 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 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution, and enter it into the book of original resolutions.
PASSED, APPROVED and ADOPTED this 21S' day of June 2023. 418b
Ernesto Gonzalez
Chairperson
ATTEST:
Viviana M. Esparza, Secretary