RESOLUTION NO 23-91
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA APPROVING THE REJECTION OF COMMERCIAL CANNABIS PERMIT APPLICANT NO. 18-053 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 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 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, RS Innovations, LLC 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 November 16, 2018, RS Innovations, LLC received a “Notice of Selection” and were notified that the issuance of a Notice of Selection is conditional and contingent on selected applicants fulfilling and completing the requirements pursuant to Ordinance No. 700 to lawfully establish a commercial cannabis business in the City of Commerce. Furthermore, all applicants were reminded that the City reserved the right to reject any application, at any time, including for any of the enumerated reasons listed in Commerce Municipal Code Section 5.61.090(c), as adopted by ordinance No. 700; WHEREAS, RS Innovations, LLC first appeared before the Planning Commission to recommend approval for the City Council’s consideration of a development agreement on February 13, 2019, with a location on 5940 E. Washington with proposed owner Rana Singh Pasricha though the site was denied by the Planning Commission; WHEREAS, on January 7, 2020, the City Council adopted eleven ordinances, one of which was ordinance No. 744, which allowed Applicant No. 18-053 to legally conduct commercial cannabis operations on 4170 E. Washington Boulevard, in the City of Commerce. At the time of approval, RS Innovations held legal or equitable interest in real property being considered; WHEREAS, however, on July 7, 2020, the City Council took action to repeal all eleven ordinances, including Ordinance No. 744 due to qualified referendum petitions that were submitted against them. As a result of this action, RS Innovations no longer had a valid development agreement and was requested to resubmit a development agreement application. During this time, the original applicant, Rana Singh Pasricha had informed staff that he was looking to change location and resubmit a development agreement application once the location was confirmed; WHEREAS, on February 06, 2023, CCP staff sent a notice to RS Innovations regarding their pending application that had remained at a standstill for over three years. Staff requested that the owner provide a completed development agreement application with a business location and provide the City sufficient evidence of the legal right to occupy and use the proposed location to operate a commercial cannabis business by no later than March 08, 2023, to avoid disqualification; WHEREAS, on February 17, 2023, the applicant’s attorney stated that they had been working on securing a property and had requested an extension through September 9, 2023, to secure a property and submit a replacement application. CCP staff emailed the representative on February 22, 2023, stating that the City would not be able to accommodate the request as there had been sufficient time to secure a viable property and move its application forward. CCP staff further stated that if no complete application is submitted prior to the deadline CCP staff will move forward with the rejection of the client’s application; WHEREAS, the applicant failed to submit a development agreement application and secure a site for commercial cannabis operations before the due date, the applicant attempted to submit a second site address on March 31, 2023, in which CCP staff requested additional documentation to assess the viability to which the owner was not able to provide. Staff received partial information from the applicant regarding the second potential site; WHEREAS, on April 10, 2023, and April 17, 2023, CCP staff followed up with the applicant to proceed with a development agreement application, though no communication was made since; WHEREAS, Pursuant to Commerce Municipal Code Section 5.61.090(c)(3), City staff requests the City Council to reject Application No. 18-053 for failure to submit a complete application for the consideration of a development agreement approval by the City Council; WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL 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 City Council 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 City Council of the City of Commerce hereby rejects Commercial Cannabis Permit Applicant No. 18-053.
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 City Council of the City of Commerce declares that this Resolution would have been adopted by the City Council 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 26th day of September 2023. _________________________________
Hugo A. Argumedo, Mayor
ATTEST:
Lena Shumway
City Clerk