CITY OF COMMERCE AGENDA REPORT
Item No.
TO: Honorable City Council
FROM: Assistant City Manager
SUBJECT: Introduction and First Reading of Ordinance to Repeal Ordinance No. 784, to revoke Development Agreement No. 784 related to a Commercial Cannabis Permit Application No. 18-069 MEETING DATE: December 12, 2023
APPLICATION REQUEST(S):
Consideration of an Ordinance to repeal Ordinance No. 784, thereby revoking the related development agreement between the City of Commerce and 4Front California Capital Holdings, Inc. (DA 784/Application 18-069), for the reasons outlined in the Analysis section of this report.
RECOMMENDATION:
Staff recommends that the City Council:
Make a determination whether to waive Full Reading and Introduce for First Reading by Title only a proposed Uncodified Ordinance to repeal Ordinance No. 784, related to application No. 18-069, which was recommended for City Council approval by the Planning Commission.
Make a determination regarding Denial or Approval by Introduction and First Reading of Uncodified Ordinance finding that it is exempt from further CEQA review pursuant to Administrative Code, Title 14, Chapter 3, 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; and Direct staff to assign a number for the adopted Ordinances.
PUBLIC HEARING NOTICE:
A notice related to this action was published in Los Cerritos News on December 1, 2023. Notices were also mailed out to property owners located within 500 feet of the subject property, in accordance with City of Commerce Municipal Code.
BACKGROUND AND ANALYSIS:
Pursuant to Ordinance No. 700, which established Commercial Cannabis regulations for the City of Commerce, the City commenced the development agreement process at the beginning of October 2018. Per the development agreement, the City of Commerce has the authority to disqualify applications for failure to make the required payments, or should an operator or applicant be willing to release themselves from legally obtaining a commercial cannabis license in the City of Commerce. 4Front California Capital Holdings, Inc. has formally provided written notification to CCP staff that they are no longer seeking to conduct cannabis operations in the City of Commerce and requested that Staff proceed with repealing their development agreement. The operator has been informed that their development agreement will be revoked and has been made aware of this hearing for repeal. 4Front California Capital Holdings, Inc.
CCP Application #
Applicant
Address and Zone
Uses
18-069
4Front California Capital Holdings, Inc.
6100 Bandini Blvd; M-2
Distribution/
Manufacturing
On January 11, 2022, the City Council approved Ordinance No. 784 related to Development Agreement No. 784 for a request to change the name of the business for its previously approved location on 6100 Bandini Blvd. The operator executed its development agreement on February 23, 2022. Since its execution, 4Front California Capital Holdings, Inc. has received its license on October 28, 2021, and has been consistent with all development agreement fees since its effective date.
On October 18, 2023, Christopher Wimmer the attorney representing 4Front California Capital Holdings, Inc. called to inform CCP staff that 4Front Capital Holdings is formally relinquishing the cannabis license due to the extensive state and local fees and various other challenges impacting the cannabis market. On October 26, 2023, CCP staff sent a follow-up email to Douglas Helfman, the authorized signer of record pursuant to the development agreement, confirming the revocation discussion City staff had with Mr. Wimmer agreeing to pursue a recommendation to repeal the ordinance. Mr. Helfman confirmed that 4Front Capital Holdings was requesting that the City Council revoke its development agreement. A copy of the email exchange is included as an attachment to this report.
ENVIRONMENTAL ASSESSMENT:
The California Environmental Quality Act (“CEQA”) requires public agencies to analyze and consider the impacts a “project” may have on the environment. A project is only subject to CEQA if the project requires a discretionary decision by the public agency. The required level of review depends on the probability and intensity of project related impacts. Additionally, a project may be exempt from CEQA review if the project qualifies for a categorical exemption.
The request for approval of an ordinance to repeal Ordinance No. 784 has been determined to be exempt from environmental review pursuant to the guidelines of the California Environmental Quality Act (Pub. Res. Code, § 21080, subd. (b)(9); Cal. Code Regs., tit. 14, Ch. 3, § 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.
CONCLUSION:
Staff recommends that the City Council - after independent review, consideration, analysis of staff’s report and the information presented, oral and written testimony by all parties and persons of the public, and the record as a whole – make a determination on whether to adopt an ordinance repealing Ordinance No. 784 as specifically outlined in the Recommendation section on page one of this report.
Prepared by: CCP Staff
Reviewed by: Vilko Domic, Assistant City Manager
Approved as to form by: Noel Tapia, City Attorney
ATTACHMENTS:
Planning Commission Resolution
Operator Correspondence
Proposed Ordinance to Repeal Ordinance No. 784
Ordinance No. 784 – For Reference Only