RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF COTATI AUTHORIZING THE
CITY MANAGER TO GRANT EXTENSIONS TO THE PREVIOUSLY APPROVED
COMMERCIAL CANNABIS RETAIL AND DISTRIBUTION PERMIT TO STEVE MONAHAN, (DBA INDYTHREE) AT 8145 GRAVENSTEIN HIGHWAY IN THE COMMERCIAL GRAVENSTEIN HIGHWAY (CG) ZONING DISTRICT, PA21-22 WHEREAS, the City of Cotati developed regulations to allow for certain commercial cannabis operations in the City, which were adopted by the City Council on February 13, 2018; and WHEREAS, Steve Monahan, doing business as Indythree, LLC was granted approval for a cannabis retail and distribution permit on June 12, 2018 (Resolution No. 2018-44); and WHEREAS, that permit was conditioned upon execution of an agreement to develop the property with facilities suitable to a commercial cannabis operation, and WHEREAS, City staff, Indythree, LLC negotiated an Agreement to Implement Requirements of Commercial Cannabis Permit; and
WHEREAS, the Agreement to Implement Requirements of Commercial Cannabis Permit included a schedule of milestones that were to be met in order for Indythree, LLC to retain their Commercial Cannabis Permit approval and which, if not met, gave the City Council grounds for revocation of the Commercial Cannabis Permit; and
WHEREAS, on October 22, 2019, the Cotati City Council supported the Planning Commission recommendation and approved an Assisted Living and Commercial Cannabis Retail location project. On November 11, 2019, the City Council conducted the second reading of the rezoning ordinance and 30-days after this action, all approvals were in place to allow the project to move to submit building permits; and
WHEREAS, in March 2020, the Cotati City Council approved an Emergency Declaration Resolution in response to the ongoing health and economic impacts associated with the COVID19 viral pandemic; and WHEREAS, in June of 2020, the approved Cannabis Retail and Distribution permit technically expired given that all of the milestones had not been met; however the City Council has the authority to provide an extension; and
WHEREAS, on September 17, 2020, the applicants applied for (and were subsequently issued) building permits to begin repairs to the existing buildings on-site (which were in a state of severe disrepair) while the City reviewed site and building design changes proposed under a pending Design Review application; and
WHEREAS, on September 22, 2020, the Cotati City Council adopted a resolution tolling the expiration of permit approvals which may occur during the time period of the COVID-19 Emergency Declaration. This action was retroactive to the March 2020 time period when the emergency declaration was made by the City Council; and WHEREAS, on October 19, 2020, the applicants filed a Design Review application proposing to make changes to the property at 8145 Gravenstein Highway, including site and building improvements to facilitate the future use of the three buildings, one of which is intended to house the Retail Cannabis and Distribution Use approved on-site; and WHEREAS, on April 13, 2021, the City Council approved a 240-day extension of the previously approved Cannabis Retail Sales and Distribution permit for Steve Monahan but directed the applicant to come back before the City Council to request any additional time needed to complete the on-site construction and begin Dispensary operations; and WHEREAS, on October 12, 2021, the City Council granted the applicant an additional 240-day extension on the approved Cannabis Retail and Distribution permit (to June 8, 2022), because the previous extension of 240-days was not adequate to allow the project applicant to go through the Design Review process, formalize the building permit submittal, draft the legal documentation for the public improvements and dedications and construct all required on-site improvements due to Covid-19 supply chain impacts and labor shortages; and WHEREAS, the City Council resolution also granted the City Manager the ability to issue a one-time 90-day extension, provided the applicant was showing substantial progress on completion of the improvements; and
WHEREAS, prior to the expiration of the second 240-day extension, the applicant requested a 90-day extension, which was granted after carefully evaluating the project status, thereby extending the current permit expiration to approximately September 8, 2022; and WHEREAS, City staff finds the location and proposed operational characteristics of the Commercial Cannabis Permit meet the City’s intent and further support the economic development strategy of the City and therefore recommends delegating authority for additional extensions to the City Manager for the Commercial Cannabis Permit granted to Steve Monahan, doing business as Indythree LLC.
WHEREAS, the City Council of the City of Cotati does hereby find that the previously approved Cannabis Retail and Distribution Permit was found to qualify for a Class 1 and Class 4 Categorical Exemption under Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land) of the California Environmental Quality Act (CEQA). Specifically, it was found to qualify given that implementation of the approved project would occupy an existing structure on a previously developed parcel requiring minor alterations and improvements to facilitate the approved use.
NOW THEREFORE BE IT FURTHER RESOLVED THAT the City Council of the City of Coati does hereby determine and declare as follows:
1. The City Council authorizes the City Manager to grant additional extensions of the previously approved Commercial Cannabis Retail and Distribution Permit issued to Steve Monahan (DBA Indythree, LLC), with the understanding and expectation that the permit holder (a.k.a. Indythree LLC) will continue to demonstrate substantial progress toward establishing a fully operational cannabis retail business in order for this extension to remain valid.
2. Substantial progress will be demonstrated through the following steps and activities:
A. Obtaining Design Review approval for the proposed exterior changes to the site and buildings required to implement the approved commercial cannabis use and bring the adjoining buildings up to commercial occupancy building and zoning code standards (complete);
B. Submittal of grading, building and encroachment permits to construct the improvements granted under the Design Review approval-including all required site, utility and frontage improvements (complete);
C. Issuance of building and encroachment permits, once approved by the City (and including payment of any associated review costs, Impact Fees for the intensification of the proposed use and penalties associated with un-permitted construction activities) (Complete except for frontage improvements under Caltrans encroachment); D. Constructing all the public and private improvements associated with the approved Design Review, building and encroachment permits including regularly requesting inspections for the on-going construction of these improvements (Complete except frontage improvements under Caltrans encroachment);
E. Full occupancy of 2845 HWY 116 shall not be granted until all public and private improvements associated with the approved Design Review are completed to City’s satisfaction.
3. Failure to demonstrate substantial progress towards establishing a fully operational cannabis retail business as identified in the steps above may cause the City Manager to cease issuing any further extensions and the approved cannabis retail permit may expire.
4. Landscaping trees are required to be a minimum of 24”-box in size.
5. The corner of Alder Avenue and Hwy 116 is required to incorporate extensive landscaping treatment and decorative elements beyond the typical zoning standards. A decorative monument sign serving the shopping center may be a part of this treatment.
6. All pedestrian serving paving, patios and walkways are required to be finished in decorative stamped and stained concrete treatments.
7. All exterior site and building improvements required through the design review process, shall be installed and completed prior to occupancy and operation of the retail cannabis facility as identified in Planning Commission Resolution 2021-4.
8. Retail cannabis business operations shall seek to implement all sustainability and community-oriented elements identified by Jane staff in their April 13, 2021, presentation materials to the City Council. Specifically, public tours, a local preference hiring policy and guaranteed shelf space for locally grown and manufactured products are required to be provided by the business operator.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the August 23rd, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney