RESOLUTION NO 24-##
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA APPROVING THE REJECTION OF COMMERCIAL CANNABIS PERMIT APPLICANT NO. 18-036 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, Claremont Capital Partners 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 13, 2018, Claremont Capital Partners, 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, Claremont Capital Partners, LLC, 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 1538 S. Eastern Avenue with proposed owner Casey Anne Dalton-Schutt; WHEREAS, on May 7, 2019, the City Council adopted twenty-two ordinances, one of which was ordinance No. 716, which allowed Applicant No. 18-036 to legally conduct commercial cannabis operations on 1538 S. Eastern Avenue, in the City of Commerce. At the time of approval, Claremont Capital held legal or equitable interest in real property being considered; WHEREAS, however, on or about November 18, 2021, the Court ruled that all twenty-two ordinances, including ordinance No. 716 were deemed invalid due to a procedural deect. As a result of this action, Claremont Capital no longer had a valid development agreement and was requested to resubmit a development agreement application. During this time, the original applicant, Casey Anne Dalton-Schutt had informed staff that she was looking to change location and resubmit a development agreement application once the location was confirmed; WHEREAS, on April 12, 2022, the City Council approved a second reading for Claremont Capital to cure the procedural defect.
WHEREAS, following the second reading, the owner of Claremont Capital has not executed their development agreement; WHEREAS, City staff has sent multiple notices to Claremont regarding their pending signature for over two years; WHEREAS, City staff sent a final notice of rejection dated November 26, 2024 to Claremont Capital Partners LLC. due to Claremont Capital’s failure to show a good faith effort move forward with its application. The notice advised Claremont Capital that City staff would recommend to the City Council that it reject Application No. 18-036; WHEREAS, pursuant to Commerce Municipal Code Section 5.61.090(c)(3), City staff requests the City Council to reject Application No. 18-036 for failure to execute its approved development agreement and failure to show a good faith effort move forward with its application to amend the 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. 18-036.
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