EXHIBIT “E”
ADDITIONAL BUSINESS STANDARDS
(IF APPLICABLE)
EXHIBIT “F”
STANDARDS AND CONDITIONS FOR CONSTRUCTION
(IF APPLICABLE)
Attachment C
PAGE 1 of 2
COUNTY OF LOS ANGELES FIRE DEPARTMENT
COUNTY FACILITIES/HIGH RISE UNIT
6031 Rickenbacker Road, Commerce, CA 90040-3921
Telephone (323) 724-3188 Fax (323) 721-1880
OFFICIAL INSPECTION REPORT
VM Evergreen LOCAL FIRE STATION: 163
ADDRESS: 8222-8226 Atlanic Avenue CITY: Cudahy ZIP: 90201 BUSINESS NAME: VM Evergreen COUNTY PROJECT #:
RESPONSIBLE PARTY: Javier Barajas SPECIFICATION #:
PHONE: UNK EXT.: FAX: E-MAIL:
OCCUPANCY CLASS: UNK SQFT: UNK HAZ MAT HANDLER FIRE SPRINKLERS: N SPRINKLER SYSTEM TYPE: DENSITY / PSI: ESFR K-FACTOR: 5-YR DUE: N/A DATE OF INSPECTION: 10/10/22 COMPANY EMPLOYEE PRESENT DURING INSPECTION: Javier THE ITEMS LISTED BELOW ARE VIOLATIONS OF THE LOS ANGELES COUNTY FIRE CODE-TITLE 32, THE LOS ANGELES COUNTY BUILDING CODE–TITLE 26, AND/OR THE CALIFORNIA CODE OF REGULATIONS–TITLE 19. VIOLATIONS MUST BE CORRECTED FORTHWITH. FAILURE TO COMPLY WILL RESULT IN LEGAL ACTION; A CITATION WILL BE ISSUED, COURT APPEARANCE WILL BE REQUIRED AND A FINE MAY BE LEVIED BY THE COURT.
ALL VIOLATIONS MUST BE CORRECTED IMMEDIATELY.
AN INSPECTOR WILL CONDUCT A RE-INSPECTION ON: N/A
Code Referenced:
Per LA County Fire Code Section 906. Fire Extinguishers shall be inspected annually.
Fire extinguishers were last inspected on 5/2021
*Service all extinguishers
1031.10 Emergency lighting equipment inspection and
testing. Emergency lighting shall be maintained in accordance with Section 1008 and shall be inspected and tested in
accordance with Sections 1031.10.1 and 1031.10.2.
Emergency Lighting non-operable
*Repair all emergency Lighting to operable condition.
PAGE 2 of 2
706.2 Unprotected openings. Unprotected duct and air
transfer openings in fire-resistance-rated construction and construction installed to resist the passage of smoke shall be protected so as to comply with requirements that were in effect when the building was constructed.
*Repair all areas of breach in all walls to fire resistive construction as built. 604.6 Unapproved conditions. Open junction boxes and
open-wiring splices shall be prohibited. Approved covers shall be provided for all switch and electrical outlet boxes. *Cover or replace all open electrical boxes.
INSPECTOR’S SIGNATURE Captain Joseph Williams DATE 10/10/2022 For information please call: 310-603-5258 to speak with the inspector.
From: Juan Arauz <[email protected]>
Sent: Wednesday, November 30, 2022 4:46 PM
To: Glenn Ward Calsada <[email protected]>; Tony Soliman <[email protected]> Cc: Glenn Calsada <[email protected]>; Jessica Guillen <[email protected]>; Alfonso Noyola <[email protected]>; Joshua Calhoun <[email protected]>; [email protected]; [email protected]
Subject: RE: Default Hearing Packets
Hi Tony,
Raul Diaz, Building Official, informed me that no one from your team has reached out to him. Can you please give me an update?
Thank you,
Juan Arauz, AICP
Community Development Director
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143
www.cityofcudahy.com
From: Juan Arauz
Sent: Monday, November 21, 2022 2:56 PM
To: Glenn Ward Calsada <[email protected]>; Tony Soliman <[email protected]> Cc: Glenn Calsada <[email protected]>; Jessica Guillen <[email protected]>; Alfonso Noyola <[email protected]>; Joshua Calhoun <[email protected]>; [email protected]; [email protected]
Subject: RE: Default Hearing Packets
Hi Tony,
Your plans and project description have been reviewed by Planning and Building staff, and the following comments are provided:
Plan Review Comments
Attachment D Page 323 of 383
Based on our previous inspection of the site and our city records, we have not been able to find any permits showing the approval of the mezzanine or the drywall of the areas above them (ex. attic spaces). Therefore, those improvements appear to have been made without any permits or city approval. If the applicant is representing those existing areas as permitted, then applicant will have to provide the city with proper documentation (ex. permits) showing the approval of those areas.
Property documentation may include showing records from the Los Angeles County Assessor’s office showing permits and final approval of the areas in question.
Project Description Comments
Additionally, during our site visit we observed work and alterations made to the site with out permits or approval from Planning or Building and Safety Department including: Plumbing, Electrical, Framing, covering with drywall areas above the mezzanine and not just as described on the scope of work as paint or cleaning site.
If you have any building related questions, please contact me or Raul Diaz, Building Official (cc’d here).
Best,
Juan Arauz, AICP
Community Development Director
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143
www.cityofcudahy.com
From: Glenn Ward Calsada <[email protected]>
Sent: Monday, November 7, 2022 3:31 PM
To: Tony Soliman <[email protected]>
Cc: Glenn Calsada <[email protected]>; Jessica Guillen <[email protected]>; Juan Arauz <[email protected]>; Alfonso Noyola <[email protected]>; Joshua Calhoun <[email protected]>; [email protected] Subject: Re: Default Hearing Packets
Hi Tony
I received your revised site plan and project description. I will discuss with City staff and get back to you. Thank you.
Best Regards,
Glenn Ward Calsada, Esq.
Law Office of Glenn Ward Calsada
1209 N. Central Avenue, Suite 205
Glendale, CA 91202
(818) 396-5504 ph
(818) 473-4277 fax
[email protected]
http://www.calsadalaw.com
Certified by the California State Bar,
Board of Legal Specialization in Bankruptcy Law
The information contained in this e-mail may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or duplication of this communication is strictly prohibited. If you have received this communication in error, please notify the sender immediately and delete all copies.
Tax Advice Disclosure: To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. Federal Tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1)avoiding penalties under the Internal Revenue Code or (2)promoting, marketing or recommending to another party any matters addressed herein.
On Monday, November 7, 2022 at 03:23:43 PM PST, Tony Soliman <[email protected]> wrote:
Hello,
Please see attached project description & site plan. Please let me know if you need anything else.
Thank you.
Best Regards,
Tony M. Soliman
Soliman Law Group, P.C.
10866 Wilshire Blvd. 4th Floor
Los Angeles, CA 90024
Tel | 310.230.5255
Fax | 888.400.0833
Web |www.SolimanLawGroup.com
CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it is intended only for the use of the individual or entity to which it is addressed, and may contain information that is PRIVILEGED, CONFIDENTIAL and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone, and return the original to us by mail without making a copy. This communication constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act, 18 U.S.C. § 2510 et seq.
On Nov 7, 2022, at 11:02 AM, Tony Soliman <[email protected]> wrote:
Good Morning,
I am aiming to get it back to you by end of the day.
Best Regards,
Tony M. Soliman
Soliman Law Group, P.C.
10866 Wilshire Blvd. 4th Floor
Los Angeles, CA 90024
Tel | 310.230.5255
Fax | 888.400.0833
Web |www.SolimanLawGroup.com
CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it is intended only for the use of the individual or entity to which it is addressed, and may contain information that is PRIVILEGED, CONFIDENTIAL and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone, and return the original to us by mail without making a copy. This communication constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act, 18 U.S.C. § 2510 et seq.
On Nov 7, 2022, at 10:20 AM, Jessica Guillen <[email protected]> wrote:
Good morning,
I am reaching out to follow up on the status of the updated project description and site plan as discussed in our meeting.
Thank you,
<image001.jpg>
Jessica Guillen
Assistant Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143 ext. 229
www.cityofcudahy.com
From: Glenn Ward Calsada <[email protected]>
Sent: Tuesday, October 25, 2022 2:11 PM
To: Tony Soliman <[email protected]>
Cc: Glenn Calsada <[email protected]>; Glenn Calsada <[email protected]>; Jessica Guillen <[email protected]>; Juan Arauz <[email protected]>; Alfonso Noyola <[email protected]>; Joshua Calhoun <[email protected]> Subject: Fw: Default Hearing Packets
Hi Tony
I'm sending you a copy of VM Evergreen's recorded Development Agreement for your records and to assist you in the editing of the Project Description for the Site.
Best Regards,
Glenn Ward Calsada, Esq.
Law Office of Glenn Ward Calsada
1209 N. Central Avenue, Suite 205
Glendale, CA 91202
(818) 396-5504 ph
(818) 473-4277 fax
[email protected]
http://www.calsadalaw.com
Certified by the California State Bar,
Board of Legal Specialization in Bankruptcy Law
The information contained in this e-mail may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or duplication of this communication is strictly prohibited. If you have received this communication in error, please notify the sender immediately and delete all copies.
Tax Advice Disclosure: To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. Federal Tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1)avoiding penalties under the Internal Revenue Code or (2)promoting, marketing or recommending to another party any matters addressed herein.
Attachment E
Page | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
February 22, 2023
SENT VIA EMAIL ([email protected])
VM EVERGREEN, LLC
Attn: Javier Barajas, Operator’s Representative
RE: FINAL DEMAND
8222 Atlantic Avenue – VM Evergreen, LLC
Development Agreement No. DA18-001C
Commercial Cannabis Permit No. 18-0001
Dear Mr. Barajas
On October 10, 2022, City of Cudahy officials, along with officials from other agencies, conducted a site inspection of the subject site. During this inspection, several violations of Building, Mechanical, Electrical, and Plumbing Codes were observed, including occupation of the building without a certificate of occupancy, which rendered the structure unsafe for occupancy. As a result of the unpermitted construction at the subject site, the Building and Safety Division declared the structure, its use, and occupancy unsafe and dangerous and said property 8222 Atlantic Avenue was “red tagged”.
Subsequently, on October 24, 2022, a meeting was scheduled with you, your legal counsel, City staff, and the City’s legal counsel to discuss next steps. City staff and the City’s legal counsel provided you with the first necessary steps to bring your operation back on track to achieve compliance. City Staff and the City’s legal counsel asked for an updated project description and site plan.
On November 7, 2022, City staff received an updated project description and site plan from your legal counsel.
On November 21, 2022, City staff reviewed and denied updated project description and site plan and provided the following comments:
Plan Review Comments
Based on our previous inspection of the site and our city records, we have not been able to find any permits showing the approval of the mezzanine or the drywall of the areas above them (ex. attic spaces). Therefore, those improvements appear to have been made without any permits or city approval. If the applicant is representing those existing areas as permitted, then applicant will have to provide the city with proper documentation (ex. permits) showing the approval of those areas. Property documentation may include showing records from the Los Angeles County Assessor’s office showing permits and final approval of the areas in question.
Project Description Comments
Additionally, during our site visit we observed work and alterations made to the site without permits or approval from Planning or Building and Safety Department including Plumbing, Electrical, Attachment F Page 331 of 383
From: Tony Soliman
To: Joshua Calhoun
Cc: [email protected]; Glenn Ward Calsada; Alfonso Noyola; Glenn Calsada; Jessica Guillen; [email protected]; Cecilia Madrigal; Glenn Calsada; Stephanie Arechiga; Juan Arauz Subject: Re: VM Evergreen Deferment Agreement
Date: Tuesday, March 21, 2023 3:02:37 PM
Joshua,
I reviewed your letter and spoke to the client about the proposed terms and my client cannot afford those payments. As previously mentioned, he has suffered huge financial losses due to covid, the ongoing costs from the very beginning, legal issues with potential partners and now the multiple break ins when hundreds of thousands of dollars worth of equipment was stolen, which occurred after the City red tagged his property and he was unable to be on the premises to protect his property.
My client stated that they can afford a monthly payment of $6,000/month total while they get back on their feet. Please consider their circumstances, the current state of the cannabis industry which is taking a huge hit, and the current economy and grant my client a monthly payment plan of $6,000/mo that he can afford & that will not sink him.
Please let us know the next steps to get this accomplished.
Thanks.
Best Regards,
Tony M. Soliman
Soliman Law Group, P.C.
10866 Wilshire Blvd. 4th Floor
Los Angeles, CA 90024
Tel | 310.230.5255
Fax | 888.400.0833
Web |
www.SolimanLawGroup.com
CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it is intended only for the use of the individual or entity to which it is addressed, and may contain information that is PRIVILEGED, CONFIDENTIAL and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone, and return the original to us by mail without making a copy. This communication constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act, 18 U.S.C. § 2510 et seq.
Attachment G Page 337 of 383
On Mar 21, 2023, at 11:23 AM, Joshua Calhoun <[email protected]> wrote:
Tony,
Attached is our proposed Deferment Agreement for VM Evergreen. The highlights of the agreement include: Community Benefit and Cost Recovery prior and up to January 31, 2023 will be required to be repaid timely over 12 months starting April 1; Nonoperating fees will be deferred until 6 months after a Temporary Certificate of Occupancy is issued and paid over 12 months; the amounts due for February 2023 will be also due upon signing of agreement.
If your client accepts this agreement it will need to be signed and notarized and delivered to us by 5:00pm Wednesday, March 22nd along with the February 2023 amount due of $7,837.36 ($5,333.36 – Community Benefit Fees and $2,504.00 Cost Recovery Fees). Also note that the first payment of $13,032.16 ($8,888.93 – Community Benefit Fee payment and $4,143.23 – Cost Recovery Payment) will be due by April 1st.
Let me know if you have any questions.
Thank you,
<image001.png>
Joshua Calhoun, CPA
Finance Director / City Treasurer
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143 ext. 225
www.cityofcudahy.com
NOTE: OFFICE IS CLOSED ON FRIDAYS
Disclaimer: This email and any attachments are confidential and intended for the use of the named recipient only. If you have received this email and any attachments in error, please inform us immediately and then delete it. Any views or opinions are solely those of the author and do not necessarily represent those of the City of Cudahy or its affiliates, divisions or brands.
<VM Evergreen Deferment Agreement.pdf>
10866 Wilshire Blvd. 4th Floor
Los Angeles, CA 90024
SolimanLawGroup.com
P 310.230.5255
F 888.400.0833
[email protected]
Soliman Law Group, P.C
VIA EMAIL ONLY
March 21, 2023
City of Cudahy
Attn: Mr. Joshua Calhoun
Attn: Mr. Juan Arauz
Attn: Mr. Alfonso Noyola
5220 Santa Ana Street,
Cudahy, CA 90201
Re: OFFICAL FINAL OFFER OF VM EVERGREEN, LLC REQUEST FOR PAYMENT
PLAN ARRANGEMENT
Dear Mr. Calhoun and Team,
I write this letter on behalf of our client VM Evergreen, LLC. As you and the City of Cudahy were made aware, our client has suffered severe financial and business hardships. Among other issues, Covid and the pandemic resulted in various major setbacks for our client. The pandemic & those setbacks also caused problems with the prior investors who were contracted to partner with our client, & which did not play out as planned or expected. It was our client’s intention to be operational by now, but for the pandemic and business setbacks that took place.
As such, we request that our client be allowed to enter into a payment arrangement to make payments on any past due balances and ongoing accruing balances after he becomes operational. He can afford and is willing to make payments of Six Thousand Dollars ($6,00/00) per month, until the past due amount is paid in full.
Please advise if these terms are acceptable with the City, so that our client can get back on track as he works through the many hurdles and pitfalls of this commercial cannabis industry, towards opening and operating the business and furthering a positive and mutually beneficial partnership with the City of Cudahy. Please contact me directly if you need ANYTHING else for this request.
Best Regards,
Tony M. Soliman, Esq.
on behalf of VM Evergreen, LLC
Attachment H Page 340 of 383
March 22, 2023
SENT VIA ELECTRONIC MAIL
Tony M. Soliman
[email protected]
RE: CITY OF CUDAHY’S RESPONSE TO VM EVERGREEN’S FINAL
OFFICIAL OFFER FOR A PROPOSED PAYMENT PLAN
8222 Atlantic Avenue – VM Evergreen, LLC
Development Agreement No. DA#18-001C
Commercial Cannabis Permit No. CCP18-0001
Mr. Soliman,
This letter shall serve as the City of Cudahy’s (“City”) response to VM Evergreen, LLC’s Final Official Offer for a Payment Plan under Development Agreement No. DA#18-001C.
The City hereby rejects the Final Official Offer from VM Evergreen, LLC (“Owner”) as outlined in an email sent from you on Tuesday, March 21, 2023, at 10:55 PM.
The City Manager continues to extend the Cannabis Deferment and Payment Program (“Program”) to Owner as outlined in the attached letter. Owner is encouraged to accept the Program, as is, prior to the deadline on Monday, March 27, 2023, at 5:00 PM.
Sincerely,
Stephanie Arechiga, City Attorney
Enclosure
cc: Law Office of Glenn Ward Calsada
Alfonso Noyola, City Manager
Joshua Calhoun, Finance Director
Juan Arauz, Community Development Director
Attachment I Page 341 of 383
Page | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773‐5143
Fax: (323) 771‐2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA‐CM
Incorporated November 10, 1960
March 22, 2023
Via U.S. Mail and Email:
VM Evergreen, LLC
Attn: Vicki Barajas, Manager
8222 Atlantic Avenue
Cudahy, CA 90201
Re: DA 18‐001C ‐ Letter Agreement on Payment of Outstanding Fees & Costs Dear Owner/Operator:
Please allow thisletter to respond to VM Evergreen’srequest for a payment arrangement on past due fees owed to the City of Cudahy ("City"). At this time, City records show that your Development Agreement is in “default status” on account of substantial past due fees and costs owed to the City despite prior notice and opportunity to cure. The total outstanding balance due as of January 31, 2023, was $242,997.01, consisting of Community Benefits Fees “CB” [$106,667.20], Cost Recovery Charges “CR” [$49,718.25], Non‐Operating Fees “NOF” [$75,314.40] and Non‐Operating Fees Penalties (11,297.16).
See attached Payment Plan Worksheet for an itemization of all outstanding fees due.
In our discussions, you have provided the City with information and documentation of disruptions and difficulties with business development and/or operations caused by the COVID19 pandemic. These difficulties appear to have impacted your business operations for a portion of the time past due fees have accrued.
Based on your representations and evidence, and after input from the City’s Ad Hoc Economic Development Committee members, the City is willing to enter into a one‐time, forbearance agreement. Operator should not expect any further extensions of time or modifications to this Letter Agreement. Furthermore, Operator shall remain in “default status” under its Development Agreement until all past due fees are paid in full and is not otherwise in default under the Development Agreement.
For good cause shown, the proposed payment plan for the past due fees described below is APPROVED ON THE FOLLOWING TERMS AND CONDITIONS:
Page | 2
FORBEARANCE PAYMENTS
1. Operator Must Maintain Current Community Benefit (CB) and Cost Recovery (CR) Payments:
Beginning April 1,,
2023, Operator agrees to maintain Community Benefit (CB) and Cost Recovery (CR) payments as they come due under the Development Agreement and shall not become delinquent on any payments by more than thirty (30) days from the payment due date. The Finance Director will provide the Operator with a billing statement specifying the current payment amounts by email or US Mail. It is the responsibility of the Operator to contact the Finance Director to confirm it is current on all payments with the City. In the event Operator becomes delinquent on its current payment obligations by more than thirty (30) days, the City may, at its sole and complete discretion, notify Operator in writing by email or U.S. Mail of the default on payment(s) and terminate this Letter Agreement. In that event, all past due amounts required to be paid under this Letter Agreement shall become fully due and payable. The failure to fully pay the past due delinquency as required by the notice shall be deemed an uncured event of default and a basis for termination of the Development Agreement. Nothing in this provision abrogates any other remedies available to the City under the Development Agreement for an event of default.
2. Operator Must Cure Past Due Delinquency on Community Benefit (CB) and Cost Recovery (CR) Payments:
Operator agrees to cure the past due delinquency on Community Benefit (CB) and Cost Recovery (CR) payments as follows:
Past Due Community Benefit Fees (CB)
$106,667.20 owed as of January 31, 2023. These past due fees are to be paid in twelve (12) equal monthly installments as follows:
Payment 1, $8,888.93 on 1st of April 2023.
Payment 2, $8,888.93 on 1st of May 2023.
Payment 3, $8,888.93 on 1st of June 2023.
Payment 4, $8,888.93 on 1st of July 2023.
Payment 5, $8,888.93 on 1st of August 2023.
Payment 6, $8,888.93 on 1st of September 2023.
Payment 7, $8,888.93 on 1st of October 2023.
Payment 8, $8,888.93 on 1st of November 2023.
Payment 9, $8,888.93 on 1st of December 2023.
Payment 10, $8,888.93 on 1st of January 2024.
Payment 11, $8,888.93 on 1st of February 2024.
Payment 12, $8,888.97 on 1st of March 2024.
Page | 3
Past Due Cost Recovery Fees (CR)
$49,718.25 owed as of January 31, 2023. These past due fees are to be paid in twelve (12) equal monthly installments as follows:
Payment 1, $4,143.23 on 1st of April 2023.
Payment 2, $4,143.23 on 1st of May 2023.
Payment 3, $4,143.23 on 1st of June 2023.
Payment 4, $4,143.23 on 1st of July 2023.
Payment 5, $4,143.23 on 1st of August 2023.
Payment 6, $4,143.23 on 1st of September 2023.
Payment 7, $4,143.23 1, 478.03 on 1st of October 2023.
Payment 8, $4,143.23 on 1st of November 2023.
Payment 9, $4,143.23 on 1st of December 2023.
Payment 10, $4,143.23 on 1st of January 2024.
Payment 11, $4,143.23 on 1st of February 2024.
Payment 12, $4,142.72 on 1st of March 2024.
Additional billing that is operator specific costs relating to cost recovery expenditures incurred by the City will be rendered as expenditures are received. Currently,related costs have been billed through January 31, 2023.
3. Deferment of Non‐Operating Fees (NOF) and Penalties
All Non‐Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy1 for the Site.
Six (6) months after the first issuance of a Temporary Certificate of Occupancy for Site, the Finance Director shall notify Operator in writing of the start date for a twelve (12) month term for payment of the total accrued NOF fees then due and owing. The Finance Director will provide the Operator with notice of the payment term for accrued NOF fees by email or US Mail. Operator agrees to pay the accrued NOF fees in accordance with the term for payment provided by the Finance Director without counter‐signature or acknowledgement of receipt. It is the Operator’s responsibility to contact the Finance Director six (6) months after first issuance of the Temporary Certificate of Occupancy to confirm the amounts due and the start date of the twelve (12) month payment term.
Upon the start date of the twelve (12) month payment term for accrued NOF fees, Operator further agrees to commence timely payment of current Operating or Non‐ Operating Fees together with penalties required to be paid under the Development Agreement.
4. Other Terms and Conditions
Operator hereby acknowledges and agreesthat the past due amountsstated are true and correct and are in fact presently due and owing. The parties agree that the Operator is in 1 While in “default status,” the City will only issue a temporary certificate of occupancy (a “TCO”) for the Site valid for 90 days. A TCO may be reissued if the Operator remains in compliance with the terms of this Letter Agreement.
Page | 4
“default status” on its obligations under its Development Agreement with the City.
Therefore, to avoid immediate termination and/or commencement of revocation proceedings, it is necessary that the Operator indicate, by signing this Letter Agreement, its acceptance of the terms and conditions herein.
Operator will remain in “default status” on its Development Agreement until all past due fees set forth in this Letter Agreement have been paid and Operator is in full compliance with all terms of its Development Agreement. While in “default status,” the City cannot and will not report to the California Department of Cannabis Control (“Department”) that the Operator/Licensee is “In Compliance” with local ordinances and regulations for the requested commercial cannabis activity. Instead, the City will report to the Department that the Operator/Licensee is: “Local Compliance Underway” with the City as per the terms of this Letter Agreement.
Operator acknowledges that it has requested that the City enter into this Letter Agreement and to forbear from exercising its rights under the Development Agreement so as to afford operator additional time to pay its outstanding indebtedness. The City has agreed to do so, provided that Operator fully complies with the terms for repayment set forth in this Letter Agreement.
Operator shall be deemed in material breach of this Letter Agreement in the event Operator is more than thirty days (30) late on any of the FORBEARANCE PAYMENTS identified above or on any payments required to keep current on fees and costs under the Development Agreement. In the event of a material breach of this Letter Agreement, the City’s obligation to forbear shall automatically terminate and this Letter Agreement shall be null and void, and the City shall be entitled to full payments all sums due and owing to the City at the time of the breach. The City shall then promptly report to the Department that the Operator/Licensee is: “Not in Compliance” with local ordinances and regulations.
The City reserves all of its rights and remedies under the Development Agreement and this Letter Agreement shall not be deemed an election of remedies, nor shall it constitute a waiver of any of the City’s rights or remedies.
Nothing stated herein is intended to waive or excuse compliance with any condition of approval contained in the Commercial Cannabis Permit (“CCP”) issued for the Site.
Moreover, the City will approve or deny Development Plans and related approvals for the Site, including issuance of building permits and certificates of occupancy, in the ordinary course of review by the City’s planning and building and safety officials. Operator may not commence operations within the facility unless and until a valid temporary or permanent certificate of occupancy is issued for the Site. In its decision for issuance of any certificate of occupancy for the Site, the City may take into account the Operator’s compliance or non‐compliance with the terms of this Letter Agreement and the Operator’s history of compliance or non‐compliance with all state and local cannabis and health and safety laws. Prior to the commencement of operations, Operator must provide to the City Manager a valid and current state‐issue license for commercial cannabis activities covering the specific cannabis activities authorized by the City for the Site. While in “defaultstatus,” the City will only issue a temporary certificate of occupancy
Page | 5
(a “TCO”) for the Site valid for 90 days. A TCO may be reissued if the Operator remains in compliance with the terms of this Letter Agreement.
Upon the breach of any provision of this Letter Agreement, the City may, at itssole option and discretion, give the Operator ten (10) days written notice of intention to terminate this Letter Agreement and opportunity to cure. The giving of one notice shall not obligate the City to give further notices of default. In the event of an uncured default after notice is given, this Letter Agreement shall automatically terminate without further notice, at which time the City may exercise any and all rights and remedies under its Development Agreement, including but not limited to, termination of the Development Agreement and revocation of the CCP.
The parties agree that in no event shall the effect of this Letter Agreement be deemed a novation of the Development Agreement and that the City Manager has acted, and is acting, in accordance with authority already granted by the terms of the Development Agreement.
Each party has acted on the advice of counsel.
Except as modified herein, all of the terms and conditions of the Development Agreement shall remain in full force and effect. Operator agrees to maintain payments and to keep current on all fees and costs accruing under the Development Agreement. The failure to pay both past due fees and current fees and costs as they come due shall be a default on this Letter Agreement. Time is of the essence. This provision is a material term of this Letter Agreement. No oral amendment, waiver or other understanding with respect to the subject matter of this Letter Agreement shall be enforceable.
5. Effectiveness:
This Letter Agreement shall become effective upon receipt by the City of Owner/Operator’s signed and notarized acceptance of the terms and conditions of this Letter Agreement.
This Letter Agreement shall be considered rejected and will expire by its own terms if not accepted in writing by March 27, 2023.
Sincerely,
Alfonso Noyola, ICMA‐CM
City Manager
AGREED AND ACCEPTED:
Page | 6
Date:
Owner/Operator
IN WITNESS THEREOF (SEE ATTACHED NOTARY ACKNOWLEDGMENT)
____________________________________
By: _______________________, its Authorized Agent
and Managing Member
Cc: Landlord [Name and Address];
City’s Special Counsel
Enc: Payment Plan Worksheet
CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating PENALTIES Outstanding VM Evergreen, LLC
September 22, 2021 Letter ‐ 16,000.08 11,297.16 27,297.24
BILLINGS
Aug 2021 5,333.36 547.68 3,765.72 9,646.76 Sep 2021 5,333.36 1,493.03 3,765.72 10,592.11 Oct 2021 5,333.36 854.75 3,765.72 9,953.83 Nov 2021 5,333.36 1,398.23 3,765.72 10,497.31 Dec 2021 5,333.36 291.90 3,765.72 9,390.98 Jan 2022 5,333.36 494.28 3,765.72 9,593.36 Feb 2022 5,333.36 1,137.30 3,765.72 10,236.38 Mar 2022 5,333.36 1,036.50 3,765.72 10,135.58 Apr 2022 5,333.36 1,103.88 3,765.72 10,202.96 May 2022 5,333.36 2,115.39 3,765.72 11,214.47 Jun 2022 5,333.36 127.60 3,765.72 9,226.68 Jul 2022 5,333.36 924.63 3,765.72 10,023.71 Aug 2022 5,333.36 932.38 3,765.72 941.43 10,972.89 Sep 2022 5,333.36 2,550.29 3,765.72 1,318.00 12,967.37 Oct 2022 5,333.36 1,914.65 3,765.72 1,694.57 12,708.30 Nov 2022 5,333.36 2,591.48 3,765.72 2,071.15 13,761.71 Dec 2022 5,333.36 6,546.03 3,765.72 2,447.72 18,092.83 Jan 2023 5,333.36 2,052.25 3,765.72 2,824.29 13,975.62
PAYMENTS
Aug 2021 (5,333.36) (3,765.72) (9,099.08) Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022
Nov 2022
Dec 2022
Jan 2023
Feb 2023 0.00 0.00 0.00 0.00 0.00
Annual City Reimbursement Costs 72,020.00
Cost per operator (10) 7,202.00
Three years(2019‐2022) 3 years
City Labor 21,606.00 21,606.00
Balance as of January 31, 2023 106,667.20 49,718.25 75,314.40 11,297.16 242,997.01 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00
1 Joshua Calhoun
From: Tony Soliman <[email protected]>
Sent: Monday, May 8, 2023 3:00 PM
To: Joshua Calhoun
Cc: Glenn Ward Calsada; Alfonso Noyola; Glenn Calsada; Jessica Guillen; [email protected]; Cecilia Madrigal; Glenn Calsada; Stephanie Arechiga; Juan Arauz; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]
Subject: Re: VM Evergreen Deferment Agreement
Follow Up Flag: Flag for follow up
Flag Status: Flagged
Good Afternoon,
Thanks for the clarification Joshua. We would like to propose a payment plan structure of the following:
1) Defer repayment of past due amounts for 4 months,
2) after which the monthly payment plan to repay the past due amounts for the Community Benefits & cost recovery plan to be $10,000.00/ per month until the 12th month when the final balloon payment would be made for the remained of the balance.
Please let us know any questions or any other topics of discussion that need to be ironed out to effectuate this payment plan.
Thank you.
Best Regards,
Tony M. Soliman
Soliman Law Group, P.C.
10866 Wilshire Blvd. 4th Floor
Los Angeles, CA 90024
Tel | 310.230.5255
Fax | 888.400.0833
Web | www.SolimanLawGroup.com
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Attachment J Page 349 of 383
Attachment K
Attachment L
10866 Wilshire Blvd. 4th Floor
Los Angeles, CA 90024
SolimanLawGroup.com
P 310.230.5255
F 888.400.0833
[email protected]
Soliman Law Group, P.C
VIA EMAIL ONLY
[email protected]
September 6, 2023
City of Cudahy
c/o Ms. Paloma Perez-McEvoy
5220 Santa Ana Street,
Cudahy, CA 90201
Re: VM EVERGREEN, LLC REQUEST FOR NEW PAYMENT PLAN ARRANGEMENT Dear Mrs. Perez-McEvoy
I write this letter on behalf of our client VM Evergreen, LLC. As you and the City of Cudahy were made aware, our client has suffered severe financial and business hardships. Among other issues, Covid and the pandemic resulted in various major setbacks for our client. The pandemic & those setbacks also caused problems with the prior investors who were contracted to partner with our client, & which did not play out as planned or expected. It was our client’s intention to be operational by now, but for the pandemic and business setbacks that took place.
As such, we request that our client be allowed to alter the current payment arrangement that is in place, to make payments on any past due balances and ongoing accruing balances after becoming operational. The client will be able to afford to make payments 6 months after opening doors,. We also request relief from Non-Operating fees for the time during which we were not able to operate during Covid. We are seeking this relief for a 2 year period (for the time the City was closed) as covid halted progress for at least that time frame.
Please present these terms to the City Counsel, so that our client can get back on track as he works through the many hurdles and pitfalls of this commercial cannabis industry, towards opening and operating the business and furthering a positive and mutually beneficial partnership with the City of Cudahy. Please contact me directly if you need anything else for this request.
Best Regards,
Tony M. Soliman, Esq.
on behalf of VM Evergreen, LLC
Attachment M Page 381 of 383
Attachment N