RESOLUTION NO 24-##
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA APPROVING THE REJECTION OF COMMERCIAL CANNABIS PERMIT APPLICANT NO. 18-028 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, Synergy Business Management, 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 November 13, 2018, Synergy Business Management, Inc. received a “Notice of Selection” and was 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, Synergy Business Management Inc., formerly known as Delta 9 first appeared before the Planning Commission to recommend approval for the City Council’s consideration of a development agreement on January 30, 2019, with a location on 6140 S. Eastern Avenue; WHEREAS, on May 7, 2019, the City Council adopted twenty-two ordinances, one of which was ordinance No. 728, which allowed Applicant No. 18-028 to legally conduct commercial cannabis operations on 6140 S. Eastern Avenue, in the City of Commerce. At the time of approval, Synergy Business Management, Inc. held legal or equitable interest in real property being considered; WHEREAS, however, on or about November 18, 2021, a court of law ruled that all twenty-two ordinances approved on May 7, 2019, including ordinance No. 728, were invalid due to a procedural defect. As a result of this action, Synergy no longer had a valid development agreement and was requested to resubmit a development agreement application. During this time, the original applicant, requested to amend their original request and request for a change of ownership, change of license, and change of location; WHEREAS, on June 14, 2022, the City Council approved a second reading for Synergy Business Management to cure the procedural defect and to name Anresco Inc. as the new owner and approving 5400 Jillson Street for commercial cannabis testing; WHEREAS, following the second reading, the approved owner, Anresco Inc, refused to execute their development agreement; WHEREAS, Anresco Inc. requested the City to lower the approved commercial cannabis testing fees; WHEREAS, the City agreed to lower the approved commercial cannabis testing fees and approved a subsequent development agreement with a different cannabis operator with the new lower commercial cannabis testing fees; WHEREAS, Anresco Inc. rejected the new lower commercial cannabis testing fees; WHEREAS, after two years of failing to execute the approved development agreement, City staff sent a final notice of rejection dated November 26, 2024 to both Synergy Anresco due to Anresco’s failure to execute the approved development agreement advising them that City staff intended to recommend to the City Council that it reject Application No. 18-028; WHEREAS, pursuant to Commerce Municipal Code Section 5.61.090(c)(3), City staff requests the City Council to reject Application No. 18-028 for failure to execute its approved development agreement; 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. 18-028.
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 Mayor is authorized to execute this Resolution for and on behalf of the City of Commerce.
Section 5. 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 14th day of January, 2025. _________________________________
Ivan Altamirano, Mayor
ATTEST:
Lena Shumway
City Clerk