UNCODIFIED ORDINANCE NO. ______
AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COMMERCE APPROVING AND ADOPTING DEVELOPMENT AGREEMENT NO. ### [ALSO IDENTIFIED AS COMMERCIAL CANNABIS PERMIT I.D. NO. 18-047] BETWEEN THE CITY OF COMMERCE AND LONG BEACH EXCHANGE LLC [A CALIFORNIA CORPORATION] FOR A COMMERCIAL CANNABIS BUSINESS AT 3019 VAIL AVENUE; MAKING FINDINGS CONSISTENT WITH AND PURSUANT TO GOVERNMENT CODE SECTION 65867.5; 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 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 the City of Commerce and to enforce rules and regulations consistent with the California Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), and related laws, regulations, and policies issued by the State of California; WHEREAS, in October 2018, the owner Summit Manufacturing Holdings, Inc. (a California Corporation) 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, which includes all applicable local and State of California laws, regulations and policies; WHEREAS, on May 7, 2019, the City Council approved Ordinance No. 720 related to Development Agreement No. 720, which allowed Summit Manufacturing to conduct Commercial Cannabis activity at 3019 Vail Avenue, in the City of Commerce; WHEREAS, Summit Manufacturing requested an amendment change to their Development Agreement No. 720, and therefore, on January 7, 2020, Ordinance No. 740 along with ten other ordinances was adopted by the City Council to allow applicants to either amend or execute a new development agreement to legally conduct commercial cannabis operations in the City of Commerce; WHEREAS, on April 21, 2020, the City Council took action to repeal all eleven ordinances, including Ordinance 740 due to qualified referendum petitions that were submitted against them.
WHEREAS, due to a lawsuit regarding a fault read during the approval of the second reading, twenty-two (22) development agreements previously approved by the City Council on May 7, 2019, including Development Agreement No. 720 was invalided on or about November 18, 2021; WHEREAS, as a result of these actions, the applicant’s Development Agreement Nos. 720 and 740 were invalidated; WHEREAS, following the lawsuit and the citizen-led referendum, Applicant No. 18-047 also known as Summit Manufacturing was given the opportunity to cure the defect. The proposed owner shared in July 2021 that he was in the process of searching for a new location and therefore will submit a development agreement application to include the new site; WHEREAS, on May 16, 2024, a request was placed with City CCP staff for a development agreement application to conduct a commercial cannabis business at 3019 Vail Avenue, in Commerce California, pursuant to City Ordinance No. 700, including all requirements pursuant to Commerce Municipal Code Section 5.61.060 and Article 21 of the development agreement. The original applicant for Summit Manufacturing requested a new development agreement application that proposes the following for Application No. 18-047; Tyrell Rohrer and Jeffrey Richmond will be named as the owners of Application No. 18-04 and their operations would include the following commercial cannabis licenses, manufacturing, distribution, and non-storefront retail; WHEREAS, the definition of "Owner" hereunder shall mean and refer to the development agreement applicant, to the extent such person is a party to the development agreement and will hold or be covered by a City of Commerce Commercial Cannabis Permit to operate a commercial cannabis business in the City of Commerce; WHEREAS, the Owners currently holds a legal or equitable interest in real property considered in the development agreement, located at 3019 Vail Avenue, City of Commerce, State of California (the "Site"); WHEREAS, this development agreement is entered into pursuant to Government Code sections 65868 and 65867.5, which require that this development agreement be approved by City ordinance; WHEREAS, all procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied; WHEREAS, the City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 – Existing Facilities. This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301; WHEREAS, the City has given public notice of its intention to adopt this development agreement and has conducted a public hearing thereon pursuant to California Government Code §65867; WHEREAS, the Planning Commission considered the provisions of the development agreement at a duly noticed public hearing on August 21, 2024, wherein all interested parties were given an opportunity to be heard regarding the Agreement, and recommended approval of the development agreement to the City Council, pursuant to an adopted Resolution, which is incorporated herein by this reference; WHEREAS, Sections 65864-65859.5 of the California Government Code authorize the City to enter into development agreements and require the planning agency of the City to find the proposed development agreement to be consistent with the policies and programs of the General Plan and any applicable specific plan. Government Code Section 65865 authorizes the City to enter into development agreements with any person having a legal or equitable interest in real property, which interest the Owners has in the Site, as evidenced by the information within the development agreement, and attachments thereto. Government Code Sections 65867.5 and 65868 further allow for amendments to a development agreement; WHEREAS, after conducting a duly noticed hearing on September 24, 2024, in conjunction with the City’s applicable ordinances and resolutions, and after independent review, consideration, analysis of staff’s recommendations, oral and written testimony, and the record as a whole, the City Council approved the execution of this development agreement, and made findings after due study, deliberation, and public hearing, the City Council found the Project: consistent with the goals, objectives, policies, general land uses and programs specified in the General Plan and any applicable special plan; compatible with the uses authorized in the City’s standards, codes, and zoning laws; in conformity with the public necessity, public convenience, general welfare and good land use practices; in accordance with the Development Agreement Statutes, including Government Code Section 65864 through 65869.5; will not be detrimental to the health, safety and general welfare of the City; will not adversely affect the orderly development of property or the preservation of property values; will have a positive fiscal impact on the City; and is in the best interest of the City of Commerce and its residents; WHEREAS, the City has given public notice of its intention to adopt this development agreement and has conducted a public hearing thereon pursuant to California Government Code §65867; specifically, pursuant to California Government Code Sections 65867 and 65090, the City of Commerce, on September 13, 2024, published legal notice in the Los Cerritos News of City Council’s consideration of this proposed development agreement and mailed out notice to property owners located within 500 feet of the Site, indicating the public hearing to be held by the City of Commerce City of Council on September 24, 2024.
WHEREAS, all other legal prerequisites to the approval and adoption of this Ordinance approving and adopting this development agreement have occurred.
NOW, THEREFORE, the City Council of the City of Commerce does ORDAIN as follows:
SECTION 1: RECITALS. 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 Ordinance.
SECTION 2: ADDITIONAL FINDINGS. Pursuant to the Government Section Code 65864 through 65869.5 and in light of the record before it including the staff report (and all attachments), and all evidence and testimony heard at the public hearing for this item, and in light of all evidence and testimony provided in connection with this Project, the City Council makes the following FINDINGS pertaining to the development agreement as related to the proposed disposition of the Site for purposes of the Project:
FINDING 1: The proposed development agreement is consistent with the goals and policies of the General Plan, its purposes and applicable Specific Plan(s).
Evidence: The proposed use is consistent with the objectives, policies, general, uses, and programs of the Commerce General Plan. This project is consistent with the General Plan in that it contributes to help establish an orderly pattern of development, economic development, and a wide range of activities. The project will also improve an existing building that has been underutilized. It will improve upon that use and help compliment the general vicinity. As determined by staff, the use will promote the improvement of a location where reinvestment and revitalization is needed. Furthermore, the project will provide needed economic development to the community.
Evidence: The proposed use is one compatible and consistent within the subject zone and complies with the intent of all applicable provisions of this Title 19.
Evidence: The proposed use would not impair the integrity and character of the zone in which it is to be located. As proposed, the use will be complimentary to other uses in the immediate vicinity. As such, the proposed use will not impair the integrity of the area or its character. Appropriate conditions of approval have also been crafted in order to ensure the use operates in a manner so as not to impact the area in which it is located.
Evidence: The subject site is physically suitable for the type of land use being proposed. All proposals to accommodate the commercial cannabis use will occur within the existing footprint of the building.
Evidence: The proposed use would not be detrimental to the public interest, health, safety, convenience, or welfare. The proposed operation of the use will be conditioned to comply with all the applicable standards of the Zoning Ordinance, and with the conditions of approval, the project will not adversely impact the general welfare of the City. On the contrary, the proposed use will be complimentary to the existing operations currently occurring in the general vicinity and operated by the ownership group. Further, the proposed use will be maintained in a safe and efficient manner in accordance with the imposed conditions. The conditions imposed will serve the public interest, health, safety, convenience, and welfare. Therefore, the proposed use would not be detrimental to the public interest, health, safety, convenience, or welfare.
FINDING 2. All procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied and the City Council has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 – Existing Facilities. This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301; Evidence: After a thorough examination of the Project application for the proposed Project and proposed Site, including, but not limited to, standard operating procedures (“SOPs”), security plan, site plan, and environmental data form, staff determined that the approval of this development agreement and the related commercial cannabis uses pursuant to this Project meet the provisions of CEQA categorical exemptions.
Evidence: Pursuant to CEQA, the City Council finds and determines there is no substantial evidence that the Project could have a significant effect on the environment. The Project is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (CEQA Guidelines 15061(b)(3).). The City Council in its independent judgment finds that there is no possible significant effect directly related to the Project because the Project consists of a small addition, expansion or alteration to an existing structure where there is negligible or no expansion of the use. The City Council finds that commercial cannabis uses will have similar impacts as the uses that have already been evaluated and are permitted by right in the applicable zone. The City Council finds that the Project will not cause any physical change in the environment, that the project is categorically exempt from CEQA under Administrative Code, Title 14, Chapter 3, § 15301(a), Class 1, Existing Facilities, and therefore no further action is required under CEQA.
SECTION 3: INCORPORATION, APPROVAL AND EXECUTION OF A DEVELOPMENT AGREEMENT. Based upon the findings outlined hereinabove, the City Council of the City of Commerce hereby approves the development agreement, and inclusive of exhibits thereof, between the City of Commerce and Long Beach Exchange LLC.(a California Corporation) and authorizes the Mayor to execute the development agreement subject to final and technical revisions as required and approved by the City Attorney.
SECTION 4: SEVERABILITY. 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 5: EFFECTIVE DATE. This Ordinance shall take effect on the thirty-first (31st) day after its adoption.
PASSED, APPROVED AND ADOPTED this ____ day of __________, 20______. ____________________________
Hugo Argumendo
Mayor
ATTEST:
______________________
City Clerk
APPROVED AS TO FORM:
______________________
City Attorney
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