PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting of this 5th day of June, 2018.
ATTEST:
Richard Iglesia
Deputy City C ·
3 Chris Garcia
Mayor
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page Page 76 of 352 606 of 4584 Ordinance f~Jo+ 681
J?a,ge 4 of 5
ST ATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF CUDAHY
)
)
)
CERTIFICATION
SS:
I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 681 was introduced for a first reading on the 15th day of May, 2018 and approved for a second reading and adopted by said Council at its regular meeting held on the 5th day of June, 2018 by the following vote, to-wit:
AYES: Markovich, Hernandez, and Garcia
NOES: None
ABSTAIN: Sanchez
ABSENT: None
4 Richard Igle . s
Deputy City erk
------
l
j
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page Page 77 of 352 607 of 4584 Grdinance No. 68 l
Page S of 5
EXHIBIT "A"
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CUDAHY
AND DAVINA,
[AN INDIVIDUAL, LIMITED LIABILITY COMPANY, CORPORATION]
SEE ATTACHMENT
5 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page Page 78 of 352 608 of 4584 ATTACHMENT E.
Development Agreement No. 18-021C
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Exhibit A-F of Development Agreement
No. 18-021C
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LEGAL DESCRIPTION
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EXHIBIT “B”
PARCEL MAP
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ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC
EXHIBIT “C”
LANDLORD CONSENT
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EXHIBIT “A”
LEGAL DESCRIPTION
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EXHIBIT “B”
PARCEL MAP
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EXHIBIT “C”
LEASE
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EXHIBIT “D”
SITE AND FLOOR PLANS
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280' - 1"
167' - 1"
163' - 0"
DOSIFIER
82' - 5"
13' - 0" 13' - 0" 13' - 0" 13' - 9"
20' - 8" 20' - 5" 7' - 0"
7' - 0"
(N) SEC. DOOR
(N) SEC. DOOR
(E) ROLL-UP DOOR
EXTRACTION
UNIT
1 A3.1
1 A3.1
794 SF
VEG 6
788 SF
VEG 5
778 SF
VEG 2
765 SF
VEG 1
774 SF
VEG 4
1729 SF
FLOWER 6
784 SF
VEG 3
1731 SF
VEG 7
2370 SF
FLOWER 9
2134 SF
FLOWER 8
2143 SF
FLOWER 7
1222 SF
VEG 8
2156 SF
FLOWER 5
2143 SF
FLOWER 4
2143 SF
FLOWER 3
2152 SF
FLOWER 2
2156 SF
FLOWER 1
1928 SF
FLOWER 1
2210 SF
FLOWER 2
2167 SF
FLOWER 3
2170 SF
FLOWER 5
2213 SF
FLOWER 4
1877 SF
VEG 1
561 SF
MOTHER ROOM
642 SF
TISSUE CULTURE
416 SF
MAUNFACTURING
463 SF
OFFICE
449 SF
DRY ROOM
449 SF
DRY ROOM
449 SF
DRY ROOM
809 SF
DISTRIBUTION
1270 SF
MANUFACTURING
2530 SF
MANUFACTURING
383 SF
WATER RESERVOIR
474 SF
DRY ROOM
1475 SF
SHIPPING/ LOADING
130 SF
F EMP. LOCKERS
127 SF
M EMP. LOCKERS
913 SF
LOBBY
93 SF
EMP. CHECK IN
96 SF
BREAKROOM
275 SF
OFFICES/ CONFERENCE
83 SF
UTILITY
85 SF
LAUNDRY
80 SF
STORE
188 SF
OFFICE
181 SF
OFFICE 51 SF
SEC. VAULT
303 SF
TRIMMING
298 SF
PACKAGING
76 SF
BATHROOM
73 SF
BATHROOM
71 SF
BATHROOM
45 SF
BATHROOM
12' x 4' TRANSFORMAR PAD
6" BOLLARDS PROTECTION
22' - 8" 31' - 2" 40' - 7" 7' - 3" 40' - 8"
23' - 0"
25' - 3" 24' - 1" 24' - 10"
22' - 0" 22' - 5" 26' - 3" 4' - 0" 22' - 6" 23' - 1" 37' - 5" 6' - 0"
EXIT EXIT EXIT
EXIT
EXIT
EXIT EXIT
(E) ELECTRIC PANEL
(N) ELETRIC ROOM
547 SF
DRYING
520 SF
DRYING
549 SF
DRYING
475 SF
TRIMMING
484 SF
DISTRIBUTION
228 SF
M EMP. LOCKER
229 SF
F EMP. LOCKER
486 SF
CHECK-IN
499 SF
DELIVERY
814 SF
DELIVERY
38' - 0" 38' - 7" 38' - 11" 42' - 1" 42' - 2"
15' - 0" 14' - 4" 7' - 11" 10' - 7" 11' - 9" 40' - 3" 40' - 1" 44' - 6" 8' - 0" 10' - 3" 17' - 0" 20' - 2" 18' - 3" 21' - 4" 13' - 3"
39' - 3" 40' - 3" 40' - 2" 40' - 0" 40' - 0" 40' - 3" 35' - 0" 54' - 10"
27' - 6" 27' - 0" 7' - 6"
11' - 4" 11' - 4" 7' - 9"
47' - 4" 55' - 8" 54' - 8"
54' - 10" 7' - 4" 25' - 6"
42' - 1"
213' - 0"
136' - 7"
13' - 5" 21' - 3" 13' - 10" 10' - 3" 10' - 6" 5' - 5" 10' - 9" 26' - 2" 21' - 5" 33' - 5" 280' - 1"
163' - 8"
143' - 0"
443' - 9"
23' - 10" 7' - 8" 23' - 0"
54' - 6"
18' - 7"
42' - 4"
4' - 2" 30' - 11"
UNIT C : DIVINA LLC
UNIT D : GENIUS
UNIT F : DANIEL AND GOLIATH LLC UNIT G : 420 CLUB LLC
UNIT E : HERBAL DRAGON
UNIT B : GO CUDAHY UNIT B
UNIT B B TINU B TINU
UNIT B UNIT B UNIT B
UNIT B UNIT B UNIT B
A TINU A TINU A TINU A TINU A TINU
A TINU A TINU
A TINU A TINU
A TINU A TINU
UNIT A
UNIT A
A TINU A TINU A TINU UNIT A
UNIT A
UNIT A
UNIT A UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
Scale
Drawn By
Date
Project Number
Woodland Hills, CA 91365P.O. Box 6004 406610
Global Construction Inc
EST. 2017
1/16" = 1'-0"
4/10/2018 3:50:15 PMA1.2
PROPOSED
PLAN
PHILLIPE KFOURY
DJ JE WC
04/10/2018
2018.003
No. Description Date
1/16" = 1'-0" 1 LEVEL 1 PROPOSED
4. Contractor shall provide, erect, and maintain all temporary
3. Do not scale from drawings.
2. All dimensions are too face of structure unless otherwise noted.
1. Any inconsistencies or unforeseen conditions to be reviewed by the Architect prior to proceeding with construction.NOTES:
barriers and guards, and all temporary shoring and bracing as required by city and state regulations.
6. Contractor shall pro
5. Contractor shall provide adequate weather protection for the building and its contents during the course of the work. vide temporary sanitary facilities as to least impact neighbors and as directed by city regulations.
8. All casework dimensions to face of finish.
7. All door and window dimensions to be centerline of clear opening.
N
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SITE
LOT DEPTH 484'-0"
LOT WIDTH 210'-0"
6'-0"
SIDEWALK
5'-0"
PLANTER
167'-1"
162'-2"
25'-5"
N
DRIVEWAY WIDTH 26'-5"
SIDE SETBACK 41'-0"
25'-0"
PL TO STREET CL
Exist fire department connection
WAREHOUSE BUILDING
EXISTING 70,079.2 sq ft
FRONT SETBACK 37'-8" 277'-6"
SIDE SETBACK 63'-5"
12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 TYP. 9'-0'
18'-0" TYP.
TYP.
9'-0'
18'-0"
TYP.
21'0"
PROPERTY LINE
PROPERTY LINE
PROPERTY LINE
PROPERTY LINE
DRIVEWAY WIDTH 20'-6"
CECILIA ST. CL
Entrance Entrance Entrance
BUILDING
ENTRANCE
BUILDING
ENTRANCE
BUILDING
ENTRANCE
BUILDING
ENTRANCE
C D E B
A
F
G
H I
PATH OF TRAVEL 2%
CROSS SLOPE MAX
CROSS SLOPE MAX
PATH OF TRAVEL 2%
CROSS SLOPE MAX
PATH OF TRAVEL 2%
PATH OF TRAVEL 2%
CROSS SLOPE MAX
Scale
Proposed Site plan 1
16" = 1'-0"
New sliding Fence.
New Fence.
New Fence. New sliding Fence. New Fence.
New Fence.
CUPER DEVELOPMENT
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ADDITIONAL BUSINESS STANDARDS
(IF APPLICABLE)
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EXHIBIT “F”
STANDARDS AND CONDITIONS FOR CONSTRUCTION
(IF APPLICABLE)
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ATTACHMENT G.
Correspondence Letter- Notice of
Delinquency dated October 2, 2019
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Correspondence Letter- Notice of
Default dated May 4, 2021
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Correspondence Letter – Final Demand
Letter dated October 19, 2021
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Correspondence Letter – Notice of
Cannabis Deferment and Payment
Program dated December 7, 2022
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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
December 7, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
On December 6, 2022, the City Manager presented a Cannabis Deferment and Payment Program to the City Council. Within this program, the City Manager will be utilizing his discretionary authority allowed within the Development Agreements to assist Cannabis Operators with the accumulated non-operating and other fees by deferring and providing additional time for payment without penalty.
The stipulations of this Program will be as follows:
• Unpaid non-operating fees will be deferred (without penalty) until six (6) months after the Operator is issued a Certificate of Occupancy. Thereafter, the accumulated non-operating fees would be required to be repaid within twelve (12) months or other term negotiated with the City Manager.
o Any previous late penalties charged to non-operating fees would be waived provided that a payment agreement is reach and the operator follows all stipulations within the agreement
• Community Benefit and Cost Recovery Fees, as detailed in the Development Agreement, would have to be paid timely on a monthly basis. Any Fees incurred prior to the agreement would be put under a payment agreement and also required to be paid timely on a monthly basis. • Payment agreement terms would be subject to the discretion of the City Manager as negotiated with each operator
• The Operators would have to remain in good standing with the City with respect to Planning and Building and Safety Regulations.
In order to be eligible for this program, Operators must have negotiated with the City and entered into an executed payment agreement no later than January 31, 2023.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 189 of 352 Page 719 of 4584 P a g e | 2
If you are interested in entering into this deferment and payment program, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 190 of 352 Page 720 of 4584 ATTACHMENT K.
Correspondence Letter – Final Demand
Letter dated May 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 191 of 352 Page 721 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 192 of 352 Page 722 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 193 of 352 Page 723 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 194 of 352 Page 724 of 4584 ATTACHMENT L.
Correspondence – Notice of Escrow
Account dated August 9, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 195 of 352 Page 725 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 196 of 352 Page 726 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 197 of 352 Page 727 of 4584 ATTACHMENT M.
Correspondence – Notice of updated
payment of fees dated October 24, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 198 of 352 Page 728 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 199 of 352 Page 729 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 200 of 352 Page 730 of 4584 ATTACHMENT N.
Invoices from October 2022 to October
2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 201 of 352 Page 731 of 4584 P a g e | 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
October 10, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$9,904.83
Outstanding balance through July
31, 2021
Monthly installments ($761.91)
from August 2021 to August 2022
CBP
Cost Recovery Fee $20,792.03
$33,263.55
Outstanding balance through July
31, 2021
City Labor from August 2021 to
August 2022
URBF1
Non-Operating Fee $18,135.60
$6,934.20
Outstanding balance through July
31, 2021
August 2021 through August 2022.
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
OPFEE
Total Fees $111,506.54 Due October 31, 2022
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 202 of 352 Page 732 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $32,381.16 are due October 31, 2022.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to August 2022 totaling $54,055.58 are due October 31, 2022.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to August 2022 totaling $25,069.80 are due October 31, 2022.
Please pay no later than October 31, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 203 of 352 Page 733 of 4584 CBP URBF1 OPFEE
Operator Comm Benefit Cost Recovery Non Operating Outstanding Davina LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 2,227.69
PAYMENTS
Aug 2021
Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
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
September
Balance as of August 31, 2022 32,381.16 54,055.58 25,069.80 111,506.54 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 204 of 352 Page 734 of 4584 P a g e | 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
November 14, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$11,428.65
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to October 2022
CBP
Cost Recovery Fee $20,792.03
$37,728.49
Outstanding balance through July 31,
2021
City Labor from August 2021 to
October 2022
URBF1
Non-Operating Fee $18,135.60
$8,001.00
$560.07
Outstanding balance through July 31,
2021
August 2021 through October 2022.
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022-October 2022
OPFEE
Total Fees $119,122.17 Due November 30, 2022
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 205 of 352 Page 735 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $33,904.98 are due November 30, 2022.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to October 2022 totaling $58,520.52 are due November 30, 2022.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to October 2022 totaling $26,136.60 are due November 30, 2022.
Late Payment Penalties
Penalties totaling $560.07 from August 2022 to October 2022 are due November 30, 2022.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than November 30, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 206 of 352 Page 736 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99
PAYMENTS
Aug 2021
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 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 September
Balance as of October 31, 2022 33,904.98 58,520.52 26,136.60 560.07 119,122.17 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 207 of 352 Page 737 of 4584 P a g e | 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
December 12, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$12,190.56
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to November 2022
CBP
Cost Recovery Fee $20,792.03
$40,319.97
Outstanding balance through July 31,
2021
City Labor from August 2021 to
October 2022
URBF1
Non-Operating Fee $18,135.60
$8,534.40
$853.44
Outstanding balance through July 31,
2021
August 2021 – November 2022
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Nov 2022
OPFEE
Total Fees $123,302.33 Due December 29, 2022
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 208 of 352 Page 738 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $34,666.89 are due December 29, 2022.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to November 2022 totaling $61,112 are due December 29, 2022.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to November 2022 totaling $26,670 are due November 29, 2022.
Late Payment Penalties
Penalties totaling $853.44 from August 2022 to November 2022 are due December 29, 2022. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than December 29, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 209 of 352 Page 739 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16
PAYMENTS
Aug 2021
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 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
September
Balance as of November 30, 2022 34,666.89 61,112.00 26,670.00 853.44 123,302.33 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 210 of 352 Page 740 of 4584 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
January 11, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$12,952.47
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to December 2022
CBP
Cost Recovery Fee $20,792.03
$42,993.25
Outstanding balance through July 31,
2021
City Labor from August 2021 to
December 2022
URBF1
Non-Operating Fee $18,135.60
$9,067.80
$1,200.15
Outstanding balance through July 31,
2021
August 2021 – December 2022
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Dec 2022
OPFEE
Total Fees $127,617.63 Due January 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 211 of 352 Page 741 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to December 2022 totaling $35,428.80 are due January 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to December 2022 totaling $63,785.28 are due January 31, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to December 2022 totaling $27,203.40 are due January 31, 2023.
Late Payment Penalties
Penalties totaling $1,200.15 from August 2022 to December 2022 are due January 31, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than January 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 212 of 352 Page 742 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30
PAYMENTS
Aug 2021
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
0.00 0.00 0.00 0.00 0.00
72,020.00
7,202.00
3 years
21,606.00 21,606.00
Nov 2022
Dec 2022
Annual City Reimbursement Costs
Cost per operator (10)
Three years(2019‐2022)
City Labor
September
Balance as of December 31, 2022 35,428.80 63,785.28 27,203.40 1,200.15 127,617.63 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 213 of 352 Page 743 of 4584 P a g e | 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
February 9, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$13,714.38
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to January 2023
CBP
Cost Recovery Fee $20,792.03
$45,045.50
Outstanding balance through July 31,
2021
City Labor from August 2021 to
January 2023
URBF1
Non-Operating Fee $18,135.60
$9,601.20
$1,600.20
Outstanding balance through July 31,
2021
August 2021 – January 2023
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Jan 2023
OPFEE
Total Fees $131,365.24 Due February 28, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 214 of 352 Page 744 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to January 2023 totaling $36,190.71 are due February 28, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to January 2023 totaling $65,837.53 are due February 28, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to January 2023 totaling $27,736.80 are due February 28, 2023.
Late Payment Penalties
Penalties totaling $1,600.20 from August 2022 to January 2023 are due February 28, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than February 28, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 215 of 352 Page 745 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61
PAYMENTS
Aug 2021
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 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
September
Balance as of January 31, 2023 36,190.71 65,837.53 27,736.80 1,600.20 131,365.24 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 216 of 352 Page 746 of 4584 P a g e | 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 6, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$14,476.29
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to February 2023
CBP
Cost Recovery Fee $20,792.03
$47,549.50
Outstanding balance through July 31,
2021
City Labor from August 2021 to
February 2023
URBF1
Non-Operating Fee $18,135.60
$10,134.60
$2,053.59
Outstanding balance through July 31,
2021
August 2021 – February 2023
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Feb 2023
OPFEE
Total Fees $135,617.94 Due March 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 217 of 352 Page 747 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to February 2023 totaling $36,952.62 are due March 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to February 2023 totaling $68,341.53 are due March 31, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to February 2023 totaling $28,270.20 are due March 31, 2023.
Late Payment Penalties
Penalties totaling $2,053.59 from August 2022 to February 2023 are due March 31, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than March 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 218 of 352 Page 748 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70
PAYMENTS
Aug 2021
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
September
Balance as of February 28, 2023 36,952.62 68,341.53 28,270.20 2,053.59 135,617.94 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 219 of 352 Page 749 of 4584 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
April 6, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$15,238.20
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to March 2023
CBP
Cost Recovery Fee $20,792.03
$49,524.58
Outstanding balance through July 31,
2021
City Labor from August 2021 to
March 2023
URBF1
Non‐Operating Fee $18,135.60
$10,668.00
$2,560.32
Outstanding balance through July 31,
2021
August 2021 – March 2023
The monthly non‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – March 2023
OPFEE
Total Fees $139,395.06 Due April 30, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 220 of 352 Page 750 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to March 2023 totaling $37,714.53 are due April 30, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third‐party contractors from August 2021 to March 2023 totaling $70,316.61 are due April 30, 2023.
Non‐Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non‐operating fees from August 2021 to March 2023 totaling $28,803.60 are due April 30, 2023.
Late Payment Penalties
Penalties totaling $2,560.32 from August 2022 to March 2023 are due April 30, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐ up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than April 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 221 of 352 Page 751 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70 March 2023 761.91 1,975.08 533.40 506.73 3,777.12
PAYMENTS
Aug 2021
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
March 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
September
Balance as of March 31, 2023 37,714.53 70,316.61 28,803.60 2,560.32 139,395.06 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 222 of 352 Page 752 of 4584 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
May 15, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$16,000.11
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to April 2023
CBP
Cost Recovery Fee $20,792.03
$51,591.43
Outstanding balance through July 31,
2021
City Labor from August 2021 to April
2023
URBF1
Non‐Operating Fee $18,135.60
$11,201.40
$3,093.72
Outstanding balance through July 31,
2021
August 2021 – April 2023
The monthly non‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $143,290.62 Due May 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 223 of 352 Page 753 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to April 2023 totaling $38,476.44 are due May 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third‐party contractors from August 2021 to April 2023 totaling $72,383.46 are due May 31, 2023.
Non‐Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non‐operating fees from August 2021 to April 2023 totaling $29,337.00 are due May 31, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due May 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐ up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than May 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 224 of 352 Page 754 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70 March 2023 761.91 1,975.08 533.40 506.73 3,777.12 April 2023 761.91 2,066.85 533.40 533.40 3,895.56
PAYMENTS
Aug 2021
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
March 2023
April 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
September
Balance as of April 30, 2023 38,476.44 72,383.46 29,337.00 3,093.72 143,290.62 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 225 of 352 Page 755 of 4584 P a g e | 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
June 12, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$16,762.02
Outstanding balance through July
31, 2021
Monthly installments ($761.91)
from August 2021 to May 2023
CBP
Cost Recovery Fee $20,792.03
$53,439.98
Outstanding balance through July
31, 2021
City Labor from August 2021 to May
2023
URBF1
Non-Operating Fee $18,135.60
$11,734.80
$3,093.72
Outstanding balance through July
31, 2021
August 2021 – May 2023
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $146,434.48 Due June 30, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 226 of 352 Page 756 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to May 2023 totaling $39,238.35 are due June 30, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to May 2023 totaling $74,232.01 are due June 30, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to May 2023 totaling $29,870.40 are due June 30, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due June 30, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than June 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 227 of 352 Page 757 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49
Sep 2021 761.91 406.78 533.40 1,702.09
Oct 2021 761.91 351.00 533.40 1,646.31
Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96
Jan 2022 761.91 494.28 533.40 1,789.59
Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56
Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91
Jul 2022 761.91 924.63 533.40 2,219.94
Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70 Mar 2023 761.91 1,975.08 533.40 506.73 3,777.12 Apr 2023 761.91 2,066.85 533.40 533.40 3,895.56 May 2023 761.91 1,848.55 533.40 ‐ 3,143.86
PAYMENTS
Aug 2021
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
March 2023
Apr 2023
0.00 0.00 0.00 0.00 0.00
72,020.00
7,202.00
3 years
21,606.00 21,606.00
May 2023
Jun 2023
Annual City Reimbursement Costs
Cost per operator (10)
Three years(2019‐2022)
City Labor
September
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 3,093.72 146,434.48 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 228 of 352 Page 758 of 4584 P a g e | 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
July 13, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$761.91
$761.91
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fee
July 2023 Monthly Fee
CBP
Cost Recovery Fee $74,232.01
$557.50
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fee
URBF1
Non-Operating Fee $29,870.40
$1,066.80
$3,093.72
Outstanding balance as of May 31,
2023.
June 2023 – July 2023
The monthly no-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $149,582.60 Due July 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 229 of 352 Page 759 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to July 2023 totaling $40,762.17 are due July 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third-party contractors for June 2023 totaling $74,789.51 are due July 31, 2023.
Non-Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non-operating fees from June 2023 to July 2023 totaling $30,937.20 are due July 31, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due July 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than July 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of July 1, 2023.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 230 of 352 Page 760 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 3,093.72 146,434.48
BILLINGS
June 2023 761.91 557.50 533.40 ‐ 1,852.81 July 2023 761.91 pending 533.40 ‐ 1,295.31 Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of July 1, 2023 40,762.17 74,789.51 30,937.20 ‐ 149,582.60 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 231 of 352 Page 761 of 4584 P a g e | 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
August 15, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$2,285.73
Outstanding balance as of May 31,
2023.
June 2023-August 2023 Monthly
Fees ($761.91 X 3)
CBP
Cost Recovery Fee $74,232.01
$557.50
$428.13
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fee
July 2023 Monthly Fee
URBF1
Non-Operating Fee $29,870.40
$1,600.20
$3,093.72
Outstanding balance as of May 31,
2023.
June 2023 – August 2023
The monthly no-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $151,306.04 Due August 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 232 of 352 Page 762 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to August 2023 totaling $41,524.08 are due August 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third-party contractors for June 2023 and July 2023 totaling $75,217.64 are due August 31, 2023.
Non-Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non-operating fees from June 2023 to August 2023 totaling $31,470.60 are due August 31, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due August 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than August 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of August 1, 2023.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 233 of 352 Page 763 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 3,093.72 146,434.48
BILLINGS
June 2023 761.91 557.50 533.40 ‐ 1,852.81 July 2023 761.91 428.13 533.40 ‐ 1,723.44 Aug 2023 761.91 pending 533.40 ‐ 1,295.31 Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of August 1, 2023 41,524.08 75,217.64 31,470.60 ‐ 151,306.04 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 234 of 352 Page 764 of 4584 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
September 15, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$3,047.64
Outstanding balance as of May 31,
2023.
June 2023‐September 2023 Monthly
Fees ($761.91 X 3) CBP
Cost Recovery Fee $74,232.01
$557.50
$428.13
$2,566.26
$5,647.73
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fees
July 2023 Monthly Fees
August 2023 Monthly Fees
Escrow Deposit Beginning Charge
URBF1
Non‐Operating Fee $29,870.40
$2,133.60
$5,760.72
Outstanding balance as of May 31,
2023.
June 2023 – September 2023
The monthly no‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Sep 2023
OPFEE
Total Fees $163,482.34 Due September 30, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 235 of 352 Page 765 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to September 2023 totaling $42,285.99 are due September 30, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third‐party contractors for June 2023, July 2023, and August 2023 totaling $77,783.90 are due September 30, 2023.
Escrow Account
Effective September 15, 2023, the City will require Davina, LLC to make an upfront payment of assessed quarterly fees into a deposit to open an escrow account to obtain timely payment of those fees. By this invoice, the Department of Finance is informing you that your beginning charge of your escrow deposit is $5,647.73. This beginning charge of your escrow deposit is based on the average amount of cost recovery fees from July 2022 to June 2023 ($22,590.94) and it will be used to repay fees assessed by the City on a monthly basis beginning in the fourth quarter of 2023 and escrow will be replenished quarterly, as needed. Please see attached worksheet.
Non‐Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non‐operating fees from June 2023 to September 2023 totaling $32,004.00 are due September 30, 2023.
Late Payment Penalties
Penalties totaling $5,760.72 from August 2022 to September 2023 are due September 30, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 236 of 352 Page 766 of 4584 Page | 3
Please pay no later than September 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of September 7, 2023, along with escrow deposit beginning balance.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 237 of 352 Page 767 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Fees Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 143,340.76 Penalties from Aug 2022‐ May 2023 3,627.12 3,627.12
BILLINGS
June 2023 761.91 557.50 533.40 533.40 2,386.21 July 2023 761.91 428.13 533.40 533.40 2,256.84 Aug 2023 761.91 2,566.26 533.40 533.40 4,394.97 Sep 2023 761.91 pending 533.40 533.40 1,828.71 Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of September 7, 2023 42,285.99 77,783.90 32,004.00 5,760.72 157,834.61 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 238 of 352 Page 768 of 4584 Operator
Davina, LLC
As of September 15, 2023 $ 5,647.74 Sep‐23 $ 5,647.74
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Total $ 5,647.74
Escrow Beginning
Balance
Billings Escrow Beginning
Balance
Deposits to
Escrow Account
Cost Recovery
Monthly Fees
Escrow Ending
Balance
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 239 of 352 Page 769 of 4584 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
October 12, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$3,809.55
Outstanding balance as of May 31,
2023.
June 2023‐ October 2023 Monthly
Fees ($761.91 X 3) CBP
Cost Recovery Fee $74,232.01
$557.50
$428.13
$2,566.26
$1,313.77
$5,647.74
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fees
July 2023 Monthly Fees
August 2023 Monthly Fees
September 2023 Monthly Fees
Escrow Deposit Beginning Charge
URBF1
Non‐Operating Fee $29,870.40
$2,667.00
$6,294.12
Outstanding balance as of May 31,
2023.
June 2023 – October 2023
The monthly no‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Oct 2023
OPFEE
Total Fees $166,624.83 Due October 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 240 of 352 Page 770 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to October 2023 totaling $43,047.90 are due October 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third‐party contractorsfor June 2023, July 2023, August 2023, and September 2023 totaling $79,097.67 are due October 31, 2023.
Escrow Account
Effective September 15, 2023, the City will require Davina, LLC to make an upfront payment of assessed quarterly fees into a deposit to open an escrow account to obtain timely payment of those fees. By this invoice, the Department of Finance is informing you that your beginning charge of your escrow deposit is $5,647.74. This beginning charge of your escrow deposit is based on the average amount of cost recovery fees from July 2022 to June 2023 ($22,590.94) and it will be used to repay fees assessed by the City on a monthly basis beginning in the fourth quarter of 2023 and escrow will be replenished quarterly, as needed. Please see attached worksheet.
Non‐Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non‐operating fees from June 2023 to October 2023 totaling $32,537.40 are due October 31, 2023.
Late Payment Penalties
Penalties totaling $6,294.12 from August 2022 to October 2023 are due October 31, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐ up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 241 of 352 Page 771 of 4584 Page | 3
Please pay no later than October 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of October 1, 2023, along with escrow deposit beginning balance worksheet.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 242 of 352 Page 772 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Fees Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 143,340.76 Penalties from Aug 2022‐ May 2023 3,627.12 3,627.12
BILLINGS
June 2023 761.91 557.50 533.40 533.40 2,386.21 July 2023 761.91 428.13 533.40 533.40 2,256.84 Aug 2023 761.91 2,566.26 533.40 533.40 4,394.97 Sep 2023 761.91 1,313.77 533.40 533.40 3,142.48 Oct 2023 761.91 pending 533.40 533.40 1,828.71 Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of October 1, 2023 43,047.90 79,097.67 32,537.40 6,294.12 160,977.09 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 243 of 352 Page 773 of 4584 Operator
Davina, LLC
As of September 15, 2023 $ 5,647.74
Sep‐23 $ 5,647.74
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Total as of October 1, 2023 $ 5,647.74
Escrow Beginning
Balance
Billings Deposits to
Escrow Account
Cost Recovery
Monthly Fees
Escrow Ending
Balance
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 244 of 352 Page 774 of 4584 ATTACHMENT O.
Invoice Payment Due Letters from 2019
to September 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 245 of 352 Page 775 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 246 of 352 Page 776 of 4584 P a g e | 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
October 10, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$9,904.83
Outstanding balance through July
31, 2021
Monthly installments ($761.91)
from August 2021 to August 2022
CBP
Cost Recovery Fee $20,792.03
$33,263.55
Outstanding balance through July
31, 2021
City Labor from August 2021 to
August 2022
URBF1
Non-Operating Fee $18,135.60
$6,934.20
Outstanding balance through July
31, 2021
August 2021 through August 2022.
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
OPFEE
Total Fees $111,506.54 Due October 31, 2022
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 247 of 352 Page 777 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $32,381.16 are due October 31, 2022.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to August 2022 totaling $54,055.58 are due October 31, 2022.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to August 2022 totaling $25,069.80 are due October 31, 2022.
Please pay no later than October 31, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 248 of 352 Page 778 of 4584 CBP URBF1 OPFEE
Operator Comm Benefit Cost Recovery Non Operating Outstanding Davina LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 2,227.69
PAYMENTS
Aug 2021
Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
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
September
Balance as of August 31, 2022 32,381.16 54,055.58 25,069.80 111,506.54 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 249 of 352 Page 779 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 250 of 352 Page 780 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 251 of 352 Page 781 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 252 of 352 Page 782 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 253 of 352 Page 783 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 254 of 352 Page 784 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 255 of 352 Page 785 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 256 of 352 Page 786 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 257 of 352 Page 787 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 258 of 352 Page 788 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - 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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
November 14, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$11,428.65
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to October 2022
CBP
Cost Recovery Fee $20,792.03
$37,728.49
Outstanding balance through July 31,
2021
City Labor from August 2021 to
October 2022
URBF1
Non-Operating Fee $18,135.60
$8,001.00
$560.07
Outstanding balance through July 31,
2021
August 2021 through October 2022.
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022-October 2022
OPFEE
Total Fees $119,122.17 Due November 30, 2022
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 311 of 352 Page 841 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $33,904.98 are due November 30, 2022.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to October 2022 totaling $58,520.52 are due November 30, 2022.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to October 2022 totaling $26,136.60 are due November 30, 2022.
Late Payment Penalties
Penalties totaling $560.07 from August 2022 to October 2022 are due November 30, 2022.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than November 30, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 312 of 352 Page 842 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99
PAYMENTS
Aug 2021
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 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 September
Balance as of October 31, 2022 33,904.98 58,520.52 26,136.60 560.07 119,122.17 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 313 of 352 Page 843 of 4584 P a g e | 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
December 12, 2022
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$12,190.56
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to November 2022
CBP
Cost Recovery Fee $20,792.03
$40,319.97
Outstanding balance through July 31,
2021
City Labor from August 2021 to
October 2022
URBF1
Non-Operating Fee $18,135.60
$8,534.40
$853.44
Outstanding balance through July 31,
2021
August 2021 – November 2022
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Nov 2022
OPFEE
Total Fees $123,302.33 Due December 29, 2022
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 314 of 352 Page 844 of 4584 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
January 11, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$12,952.47
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to December 2022
CBP
Cost Recovery Fee $20,792.03
$42,993.25
Outstanding balance through July 31,
2021
City Labor from August 2021 to
December 2022
URBF1
Non-Operating Fee $18,135.60
$9,067.80
$1,200.15
Outstanding balance through July 31,
2021
August 2021 – December 2022
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Dec 2022
OPFEE
Total Fees $127,617.63 Due January 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 315 of 352 Page 845 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to December 2022 totaling $35,428.80 are due January 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to December 2022 totaling $63,785.28 are due January 31, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to December 2022 totaling $27,203.40 are due January 31, 2023.
Late Payment Penalties
Penalties totaling $1,200.15 from August 2022 to December 2022 are due January 31, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than January 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 316 of 352 Page 846 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30
PAYMENTS
Aug 2021
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
0.00 0.00 0.00 0.00 0.00
72,020.00
7,202.00
3 years
21,606.00 21,606.00
Nov 2022
Dec 2022
Annual City Reimbursement Costs
Cost per operator (10)
Three years(2019‐2022)
City Labor
September
Balance as of December 31, 2022 35,428.80 63,785.28 27,203.40 1,200.15 127,617.63 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 317 of 352 Page 847 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $34,666.89 are due December 29, 2022.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to November 2022 totaling $61,112 are due December 29, 2022.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to November 2022 totaling $26,670 are due November 29, 2022.
Late Payment Penalties
Penalties totaling $853.44 from August 2022 to November 2022 are due December 29, 2022. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than December 29, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 318 of 352 Page 848 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16
PAYMENTS
Aug 2021
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 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
September
Balance as of November 30, 2022 34,666.89 61,112.00 26,670.00 853.44 123,302.33 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 319 of 352 Page 849 of 4584 P a g e | 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
February 9, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$13,714.38
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to January 2023
CBP
Cost Recovery Fee $20,792.03
$45,045.50
Outstanding balance through July 31,
2021
City Labor from August 2021 to
January 2023
URBF1
Non-Operating Fee $18,135.60
$9,601.20
$1,600.20
Outstanding balance through July 31,
2021
August 2021 – January 2023
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Jan 2023
OPFEE
Total Fees $131,365.24 Due February 28, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 320 of 352 Page 850 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to January 2023 totaling $36,190.71 are due February 28, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to January 2023 totaling $65,837.53 are due February 28, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to January 2023 totaling $27,736.80 are due February 28, 2023.
Late Payment Penalties
Penalties totaling $1,600.20 from August 2022 to January 2023 are due February 28, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than February 28, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 321 of 352 Page 851 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61
PAYMENTS
Aug 2021
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 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
September
Balance as of January 31, 2023 36,190.71 65,837.53 27,736.80 1,600.20 131,365.24 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 322 of 352 Page 852 of 4584 P a g e | 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 6, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$14,476.29
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to February 2023
CBP
Cost Recovery Fee $20,792.03
$47,549.50
Outstanding balance through July 31,
2021
City Labor from August 2021 to
February 2023
URBF1
Non-Operating Fee $18,135.60
$10,134.60
$2,053.59
Outstanding balance through July 31,
2021
August 2021 – February 2023
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Feb 2023
OPFEE
Total Fees $135,617.94 Due March 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 323 of 352 Page 853 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to February 2023 totaling $36,952.62 are due March 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to February 2023 totaling $68,341.53 are due March 31, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to February 2023 totaling $28,270.20 are due March 31, 2023.
Late Payment Penalties
Penalties totaling $2,053.59 from August 2022 to February 2023 are due March 31, 2023.
Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees.
In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than March 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 324 of 352 Page 854 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70
PAYMENTS
Aug 2021
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
September
Balance as of February 28, 2023 36,952.62 68,341.53 28,270.20 2,053.59 135,617.94 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 325 of 352 Page 855 of 4584 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
April 6, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$15,238.20
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to March 2023
CBP
Cost Recovery Fee $20,792.03
$49,524.58
Outstanding balance through July 31,
2021
City Labor from August 2021 to
March 2023
URBF1
Non‐Operating Fee $18,135.60
$10,668.00
$2,560.32
Outstanding balance through July 31,
2021
August 2021 – March 2023
The monthly non‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – March 2023
OPFEE
Total Fees $139,395.06 Due April 30, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 326 of 352 Page 856 of 4584 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
May 15, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$16,000.11
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to April 2023
CBP
Cost Recovery Fee $20,792.03
$51,591.43
Outstanding balance through July 31,
2021
City Labor from August 2021 to April
2023
URBF1
Non‐Operating Fee $18,135.60
$11,201.40
$3,093.72
Outstanding balance through July 31,
2021
August 2021 – April 2023
The monthly non‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $143,290.62 Due May 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 327 of 352 Page 857 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to April 2023 totaling $38,476.44 are due May 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third‐party contractors from August 2021 to April 2023 totaling $72,383.46 are due May 31, 2023.
Non‐Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non‐operating fees from August 2021 to April 2023 totaling $29,337.00 are due May 31, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due May 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐ up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than May 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 328 of 352 Page 858 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70 March 2023 761.91 1,975.08 533.40 506.73 3,777.12 April 2023 761.91 2,066.85 533.40 533.40 3,895.56
PAYMENTS
Aug 2021
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
March 2023
April 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
September
Balance as of April 30, 2023 38,476.44 72,383.46 29,337.00 3,093.72 143,290.62 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 329 of 352 Page 859 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to March 2023 totaling $37,714.53 are due April 30, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third‐party contractors from August 2021 to March 2023 totaling $70,316.61 are due April 30, 2023.
Non‐Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non‐operating fees from August 2021 to March 2023 totaling $28,803.60 are due April 30, 2023.
Late Payment Penalties
Penalties totaling $2,560.32 from August 2022 to March 2023 are due April 30, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐ up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than April 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 330 of 352 Page 860 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49 Sep 2021 761.91 406.78 533.40 1,702.09 Oct 2021 761.91 351.00 533.40 1,646.31 Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96 Jan 2022 761.91 494.28 533.40 1,789.59 Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56 Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91 Jul 2022 761.91 924.63 533.40 2,219.94 Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70 March 2023 761.91 1,975.08 533.40 506.73 3,777.12
PAYMENTS
Aug 2021
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
March 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
September
Balance as of March 31, 2023 37,714.53 70,316.61 28,803.60 2,560.32 139,395.06 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 331 of 352 Page 861 of 4584 P a g e | 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
June 12, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$16,762.02
Outstanding balance through July
31, 2021
Monthly installments ($761.91)
from August 2021 to May 2023
CBP
Cost Recovery Fee $20,792.03
$53,439.98
Outstanding balance through July
31, 2021
City Labor from August 2021 to May
2023
URBF1
Non-Operating Fee $18,135.60
$11,734.80
$3,093.72
Outstanding balance through July
31, 2021
August 2021 – May 2023
The monthly non-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $146,434.48 Due June 30, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 332 of 352 Page 862 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to May 2023 totaling $39,238.35 are due June 30, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to May 2023 totaling $74,232.01 are due June 30, 2023.
Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to May 2023 totaling $29,870.40 are due June 30, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due June 30, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than June 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 333 of 352 Page 863 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
September 22, 2021 Letter 22,476.33 20,792.03 18,135.60 61,403.96
BILLINGS
Aug 2021 761.91 335.18 533.40 1,630.49
Sep 2021 761.91 406.78 533.40 1,702.09
Oct 2021 761.91 351.00 533.40 1,646.31
Nov 2021 761.91 2,723.23 533.40 4,018.54 Dec 2021 761.91 130.65 533.40 1,425.96
Jan 2022 761.91 494.28 533.40 1,789.59
Feb 2022 761.91 1,137.30 533.40 2,432.61 Mar 2022 761.91 875.25 533.40 2,170.56
Apr 2022 761.91 1,103.88 533.40 2,399.19 May 2022 761.91 2,115.39 533.40 3,410.70 Jun 2022 761.91 127.60 533.40 1,422.91
Jul 2022 761.91 924.63 533.40 2,219.94
Aug 2022 761.91 932.38 533.40 133.35 2,361.04 Sep 2022 761.91 2,550.29 533.40 186.69 4,032.29 Oct 2022 761.91 1,914.65 533.40 240.03 3,449.99 Nov 2022 761.91 2,591.48 533.40 293.37 4,180.16 Dec 2022 761.91 2,673.28 533.40 346.71 4,315.30 Jan 2023 761.91 2,052.25 533.40 400.05 3,747.61 Feb 2023 761.91 2,504.00 533.40 453.39 4,252.70 Mar 2023 761.91 1,975.08 533.40 506.73 3,777.12 Apr 2023 761.91 2,066.85 533.40 533.40 3,895.56 May 2023 761.91 1,848.55 533.40 ‐ 3,143.86
PAYMENTS
Aug 2021
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
March 2023
Apr 2023
0.00 0.00 0.00 0.00 0.00
72,020.00
7,202.00
3 years
21,606.00 21,606.00
May 2023
Jun 2023
Annual City Reimbursement Costs
Cost per operator (10)
Three years(2019‐2022)
City Labor
September
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 3,093.72 146,434.48 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 334 of 352 Page 864 of 4584 P a g e | 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
July 13, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$761.91
$761.91
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fee
July 2023 Monthly Fee
CBP
Cost Recovery Fee $74,232.01
$557.50
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fee
URBF1
Non-Operating Fee $29,870.40
$1,066.80
$3,093.72
Outstanding balance as of May 31,
2023.
June 2023 – July 2023
The monthly no-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $149,582.60 Due July 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 335 of 352 Page 865 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to July 2023 totaling $40,762.17 are due July 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third-party contractors for June 2023 totaling $74,789.51 are due July 31, 2023.
Non-Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non-operating fees from June 2023 to July 2023 totaling $30,937.20 are due July 31, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due July 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than July 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of July 1, 2023.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 336 of 352 Page 866 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 3,093.72 146,434.48
BILLINGS
June 2023 761.91 557.50 533.40 ‐ 1,852.81 July 2023 761.91 pending 533.40 ‐ 1,295.31 Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of July 1, 2023 40,762.17 74,789.51 30,937.20 ‐ 149,582.60 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 337 of 352 Page 867 of 4584 P a g e | 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
August 15, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18-021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18-021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$2,285.73
Outstanding balance as of May 31,
2023.
June 2023-August 2023 Monthly
Fees ($761.91 X 3)
CBP
Cost Recovery Fee $74,232.01
$557.50
$428.13
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fee
July 2023 Monthly Fee
URBF1
Non-Operating Fee $29,870.40
$1,600.20
$3,093.72
Outstanding balance as of May 31,
2023.
June 2023 – August 2023
The monthly no-operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $151,306.04 Due August 31, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 338 of 352 Page 868 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to August 2023 totaling $41,524.08 are due August 31, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third-party contractors for June 2023 and July 2023 totaling $75,217.64 are due August 31, 2023.
Non-Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non-operating fees from June 2023 to August 2023 totaling $31,470.60 are due August 31, 2023.
Late Payment Penalties
Penalties totaling $3,093.72 from August 2022 to April 2023 are due August 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
Please pay no later than August 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of August 1, 2023.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 339 of 352 Page 869 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 3,093.72 146,434.48
BILLINGS
June 2023 761.91 557.50 533.40 ‐ 1,852.81 July 2023 761.91 428.13 533.40 ‐ 1,723.44 Aug 2023 761.91 pending 533.40 ‐ 1,295.31 Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of August 1, 2023 41,524.08 75,217.64 31,470.60 ‐ 151,306.04 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 340 of 352 Page 870 of 4584 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
September 15, 2023
Via U.S. Mail and Email:
Davina, LLC
Attn: Philip Kfoury, Manager
4916 Cecilia Street Unit C
Cudahy, CA 90201
Re: DA 18‐021C
Dear Owner/Operator:
Below is a summary of past and current amounts due under Development Agreement DA 18‐021C for Ordinance No 681, with an Effective date of June 5, 2018.
Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $39,238.35
$3,047.64
Outstanding balance as of May 31,
2023.
June 2023‐September 2023 Monthly
Fees ($761.91 X 3) CBP
Cost Recovery Fee $74,232.01
$557.50
$428.13
$2,566.26
$5,647.73
Outstanding balance as of May 31,
2023.
June 2023 Monthly Fees
July 2023 Monthly Fees
August 2023 Monthly Fees
Escrow Deposit Beginning Charge
URBF1
Non‐Operating Fee $29,870.40
$2,133.60
$5,760.72
Outstanding balance as of May 31,
2023.
June 2023 – September 2023
The monthly no‐operating fee is
$533.40 (.42 x 1,270 square footage
of the premises)
Penalties Aug 2022 – Sep 2023
OPFEE
Total Fees $163,482.34 Due September 30, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 341 of 352 Page 871 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of May 31, 2023, and current CBP monthly installments from June 2023 to September 2023 totaling $42,285.99 are due September 30, 2023.
Cost Recovery Fee
The outstanding Cost Recovery Fees as of May 31, 2023, the City labor, and third‐party contractors for June 2023, July 2023, and August 2023 totaling $77,783.90 are due September 30, 2023.
Escrow Account
Effective September 15, 2023, the City will require Davina, LLC to make an upfront payment of assessed quarterly fees into a deposit to open an escrow account to obtain timely payment of those fees. By this invoice, the Department of Finance is informing you that your beginning charge of your escrow deposit is $5,647.73. This beginning charge of your escrow deposit is based on the average amount of cost recovery fees from July 2022 to June 2023 ($22,590.94) and it will be used to repay fees assessed by the City on a monthly basis beginning in the fourth quarter of 2023 and escrow will be replenished quarterly, as needed. Please see attached worksheet.
Non‐Operating Fees
The outstanding balance as of May 31, 2023, and the current monthly non‐operating fees from June 2023 to September 2023 totaling $32,004.00 are due September 30, 2023.
Late Payment Penalties
Penalties totaling $5,760.72 from August 2022 to September 2023 are due September 30, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 342 of 352 Page 872 of 4584 Page | 3
Please pay no later than September 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].
Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of September 7, 2023, along with escrow deposit beginning balance.
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 343 of 352 Page 873 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Fees Penalties Outstanding Davina, LLC
Balance as of May 31, 2023 39,238.35 74,232.01 29,870.40 143,340.76 Penalties from Aug 2022‐ May 2023 3,627.12 3,627.12
BILLINGS
June 2023 761.91 557.50 533.40 533.40 2,386.21 July 2023 761.91 428.13 533.40 533.40 2,256.84 Aug 2023 761.91 2,566.26 533.40 533.40 4,394.97 Sep 2023 761.91 pending 533.40 533.40 1,828.71 Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Balance as of September 7, 2023 42,285.99 77,783.90 32,004.00 5,760.72 157,834.61 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 344 of 352 Page 874 of 4584 Operator
Davina, LLC
As of September 15, 2023 $ 5,647.74 Sep‐23 $ 5,647.74
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Total $ 5,647.74
Escrow Beginning
Balance
Billings Escrow Beginning
Balance
Deposits to
Escrow Account
Cost Recovery
Monthly Fees
Escrow Ending
Balance
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 345 of 352 Page 875 of 4584 ATTACHMENT P.
Certificate of Status with the Secretary
of State of California dated October 31,
2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 346 of 352 Page 876 of 4584 Secretary of State
Certificate of Status
I, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:
The above referenced entity's powers, rights and privileges are suspended in California.
This certificate relates to the status of the entity on the Secretary of State’s records as of the date of this certificate and does not reflect documents that are pending review or other events that may affect status.
No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.
Suspended - FTB
Entity Name:
Entity No.:
Registration Date:
Entity Type:
201731310505
11/09/2017
Limited Liability Company - CA
Status:
Formed In: CALIFORNIA
DAVINA, LLC
IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of October 31, 2023.
SHIRLEY N. WEBER, PH.D.
Secretary of State
Certificate No.:
To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov. 155802119
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 347 of 352 Page 877 of 4584 ATTACHMENT Q.
Notice of Review Hearing
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 348 of 352 Page 878 of 4584
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, Ed.D
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
SENT VIA USPS-CERTIFIED MAIL
October 12, 2023
Attn: Mr. Abraham Benelyahu, Managing Member
Davina, LLC
9415 Culver Boulevard
Culver City, CA 90232
Davina, LLC
4916 Cecilia Street, Unit C
Cudahy, CA 90201
RE: Site: 4916 Cecilia Street, Unit C – Davina, LLC
Development Agreement No. DA18-021C
Commercial Cannabis Permit No. CCP18-0019
NOTICE OF REVIEW HEARING
Hearing Date: Tuesday, November 14th, 2023
Time: 9:00 a.m.
Place: 5220 Santa Ana St. Cudahy, CA 90201 – Bedwell Hall, Council Chambers
Dear Davina, LLC,
This letter is to inform you that the City Manager of the City of Cudahy (“City”) has appointed Steve Napolitano to act as an independent hearing officer for a Review Hearing on your compliance with the terms of your Development Agreement (“Agreement”) with the City.
Under Section 19 of the Agreement, the City may conduct Periodic and Special Reviews of the Owner’s “good faith compliance with the terms of the Agreement.” The burden of proof is on the Owner to demonstrate compliance. Please submit any arguments and supporting documents evidencing compliance ten (10) days prior to the Review Hearing. In the event of a finding of noncompliance, the City Council may terminate the Agreement or impose such conditions as are reasonably necessary to protect the interests of the City in accordance with the Agreement and state law. The decision of the City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.
This letter shall also serve as notice that the findings of this Review Hearing may inform the City Manager’s decision to revoke or suspend Commercial Cannabis Permit No. CCP18-019 pursuant to Cudahy Municipal Code (“CMC”) Section 5.20.080(6), due to a failure to comply ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 349 of 352 Page 879 of 4584
with the requirements of Chapter 5.20 of the CMC, or any condition of approval, or any other agreement or covenant required – inclusive of this Agreement.
The estimated cost for the Review hearing is $12,695. The Owner is responsible for the cost of the Review Hearing. You are requested to deliver a cashier's check payable to the City of Cudahy three (3) days prior to the hearing date. The Review hearing will proceed as scheduled whether or not the deposit is made; however, the City may consider the failure to make the deposit a further default on the Development Agreement. The hearing is set for:
Date: Tuesday, November 14, 2023.
Time: 9:00 a.m.
Place: 5220 Santa Ana St. Cudahy, CA 90201 – Bedwell Hall – Council Chambers Please contact Cecilia Madrigal-Gonzalez, Senior Planner at 323-773-5143 ext. 252 or [email protected] no later than ten (10) days from the date of this letter to confirm your appearance at the Review hearing. If we do not hear back from you by this date, we will assume you waive your right to present evidence at the hearing. Please be advised that the City’s Staff Report with exhibits will be available, upon request, for your review ten (10) days prior to the Hearing.
Respectfully,
Cecilia Madrigal-Gonzalez
Senior Planner
cc: Law Office of Glenn Ward Calsada, Special Counsel
Stephanie A. Arechiga, Esq., City Attorney
Alfonso Noyola, City Manager
Juan Arauz, AICP, Community Development Director
Joshua Calhoun, Finance Director
Jessica Guillen, Assistant Planner
Abraham Benelyahu, (via email)
Philip Kfoury, (via email)
Shaoul J. Levy, Manager, Cudahy Cecilia, LLC (via mail) ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 350 of 352 Page 880 of 4584 ATTACHMENT R.
Proof of certified mailing of Notice of
Hearing, October 12, 2023
ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 351 of 352 Page 881 of 4584 ADMINISTRATIVE RECORD FOR REVIEW HEARING - DAVINA LLC Page 352 of 352 Page 882 of 4584
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, Ed.D
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
SENT VIA USPS-CERTIFIED MAIL
October 12, 2023
Attn: Mr. Abraham Benelyahu, Managing Member
Davina, LLC
9415 Culver Boulevard
Culver City, CA 90232
Davina, LLC
4916 Cecilia Street, Unit C
Cudahy, CA 90201
RE: Site: 4916 Cecilia Street, Unit C – Davina, LLC
Development Agreement No. DA18-021C
Commercial Cannabis Permit No. CCP18-0019
NOTICE OF REVIEW HEARING
Hearing Date: Tuesday, November 14th, 2023
Time: 9:00 a.m.
Place: 5220 Santa Ana St. Cudahy, CA 90201 – Bedwell Hall, Council Chambers
Dear Davina, LLC,
This letter is to inform you that the City Manager of the City of Cudahy (“City”) has appointed Steve Napolitano to act as an independent hearing officer for a Review Hearing on your compliance with the terms of your Development Agreement (“Agreement”) with the City.
Under Section 19 of the Agreement, the City may conduct Periodic and Special Reviews of the Owner’s “good faith compliance with the terms of the Agreement.” The burden of proof is on the Owner to demonstrate compliance. Please submit any arguments and supporting documents evidencing compliance ten (10) days prior to the Review Hearing. In the event of a finding of noncompliance, the City Council may terminate the Agreement or impose such conditions as are reasonably necessary to protect the interests of the City in accordance with the Agreement and state law. The decision of the City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.
This letter shall also serve as notice that the findings of this Review Hearing may inform the City Manager’s decision to revoke or suspend Commercial Cannabis Permit No. CCP18-019 pursuant to Cudahy Municipal Code (“CMC”) Section 5.20.080(6), due to a failure to comply Attachment GPage 883 of 4584
with the requirements of Chapter 5.20 of the CMC, or any condition of approval, or any other agreement or covenant required – inclusive of this Agreement.
The estimated cost for the Review hearing is $12,695. The Owner is responsible for the cost of the Review Hearing. You are requested to deliver a cashier's check payable to the City of Cudahy three (3) days prior to the hearing date. The Review hearing will proceed as scheduled whether or not the deposit is made; however, the City may consider the failure to make the deposit a further default on the Development Agreement. The hearing is set for:
Date: Tuesday, November 14, 2023.
Time: 9:00 a.m.
Place: 5220 Santa Ana St. Cudahy, CA 90201 – Bedwell Hall – Council Chambers Please contact Cecilia Madrigal-Gonzalez, Senior Planner at 323-773-5143 ext. 252 or [email protected] no later than ten (10) days from the date of this letter to confirm your appearance at the Review hearing. If we do not hear back from you by this date, we will assume you waive your right to present evidence at the hearing. Please be advised that the City’s Staff Report with exhibits will be available, upon request, for your review ten (10) days prior to the Hearing.
Respectfully,
Cecilia Madrigal-Gonzalez
Senior Planner
cc: Law Office of Glenn Ward Calsada, Special Counsel
Stephanie A. Arechiga, Esq., City Attorney
Alfonso Noyola, City Manager
Juan Arauz, AICP, Community Development Director
Joshua Calhoun, Finance Director
Jessica Guillen, Assistant Planner
Abraham Benelyahu, (via email)
Philip Kfoury, (via email)
Shaoul J. Levy, Manager, Cudahy Cecilia, LLC (via mail)
Attachment H
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
DECISION and ORDER
Administrative Hearing Regarding Compliance by Davina LLC (Respondent) with Commercial Cannabis Permit (CCP) 18-0019 and Development Agreement (DA) 18-021C Between Respondent and the City of Cudahy (City)
Hearing Date: November 14, 2023
Hearing Officer: Steve Napolitano, Esq.
The hearing took place in the City Council Chambers at Cudahy City Hall, 5220 Santa Ana St., Cudahy, CA 90201. The hearing was recorded and is available through the City Clerk’s Office.
Respondent: Davina LLC, 4916 Cecilia St., Unit C, Cudahy, CA 90201. Respondent did not appear and was not represented at the hearing.
City was present and represented by:
• Cecilia Madrigal-Gonzalez, Senior Planner.
• Joshua Calhoun, Finance Director
• Juan Arauz, Community Development Director
• Jessica Guillen, Assistant Planner
• Raul Diaz, Building Official
• Glenn Calsada, Special Counsel
• Paloma McEvoy, City Attorney
• Richard Iglesias, City Clerk
DECISION SUMMARY
Based on the evidence and analysis discussed below, this Hearing Officer finds that a preponderance of the evidence shows that Respondent, despite considerable notice and opportunities to cure any issues, has breached the terms and conditions of DA 18-021C and Respondent’s portion of its CCP and recommends that the Planning Commission and/or City Council repeal Ordinance No. 681 and terminate DA 18-021C and revoke Respondent’s interest under CCP 18-0019.
ADMINISTRATIVE HEARING PROCEDURES
All state and local public entities are subject to due process of law. State agencies are subject to statutory requirements, including the Administrative Procedures Act. Local public agencies are, with some minor exceptions, not subject to the APA and generally subject only to the constitutional limitations of due process of law. Govt. Code §11410.30. While a local agency may elect to apply some or all of the provisions of the APA to its hearings, the City has not done so.
The process required by law are those imposed by our constitution(s) as well as any procedures adopted by the County. In Mohilef v. Janovici (1996) 51 Cal.App.4th 267 and E.W.A.P., Inc. v. City of Los Angeles (1997) 56 Cal.App.4th 310, the court explored what due process is necessary in an administrative proceeding. There is general agreement that there must be notice and an opportunity to be heard. Beyond this, “there is no precise manner of hearing which must be afforded; rather the particular interests at issue must be considered in determining what kind of hearing is appropriate. A Attachment I Page 886 of 4584
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
formal hearing, with full rights of confrontation and cross-examination is not necessarily required. (Saleeby v. State Bar (1985) 39 Cal.3d 547, 565, 216 Cal.Rptr. 367, 702 P.2d 525.) ‘Due process’ is an elusive concept. Its exact boundaries are undefinable, and its content varies according to specific factual contexts.” Mohilef at 286. Our Supreme Court has stated, “[D]ue process may require only that the administrative agency comply with the statutory limitations on its authority.” People v. Ramirez (1979) 25 Cal.3d 260, 269
Beyond notice and a hearing, the procedures available in this case to the participants are those provided by Cudahy Municipal Code (CMC) 5.20.080.
The legal standard of review applicable to an administrative hearing is based on a preponderance of the evidence, or “evidence which is of greater weight and more convincing than the evidence which is offered in opposition to it; that is evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary, Fifth Edition.
BACKGROUND
Background information was presented in the City’s Staff Report dated November 14, 2023, with attachments A through R, which were admitted into the record.
On September 11, 2017, the City adopted Ordinance No. 673 (Attachment A) establishing the City of Cudahy's commercial cannabis production activity regulations codified in Chapter 5.20 of the Cudahy Municipal Code (“CMC”). CMC Section 5.20.040 authorizes medicinal commercial cannabis activities within a designated overlay zone, pursuant to a development agreement adopted in accordance with the Development Agreement Law (Govt. Code Section 65864 et seq.) and Chapter 20.28 of the CMC.
On April 30, 2018, the Planning Commission recommended the City Council approve CCP18-0019 for cannabis manufacturing at 4916 Cecilia St. Unit C, subject to the approval of a development agreement between the City and the Respondent for cannabis manufacturing.
On May 15, 2018, the City Council adopted Resolution No. 18-17 (Attachment B) approving the issuance of CCP18-0019 (Attachment C) with conditions of approval to the Respondent upon the execution of a development agreement with the City.
On June 5, 2018, the City Council adopted Ordinance No. 681 (Attachment D) approving Development Agreement No. 18-021C (Attachment E) inclusive of exhibits A-F (Attachment F) between Respondent and the City authorizing cannabis manufacturing activities at 4916 Cecelia Street Unit C (“Site”). Recital I of the Development Agreement permits the Respondent to utilize approximately 1,270 square feet of the Site for cannabis manufacturing, inclusive of volatile and non-volatile extraction areas. The Respondent is one of seven tenants at the Site which all have separate development agreements with the City but each tenant is subject to the same CCP conditions of approval.
On October 2, 2019, the City provided the Respondent with a Notice of Delinquency due to nonpayment (Attachment G) prior to placing the Respondent in default status due to non-compliance with the Development Agreement, inclusive of the payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees in the amount of nine thousand sixty-nine dollars and one cent ($9,869.01). The Respondent was given no later than October 17, 2019, to cure the delinquency, however, it was not timely cured.
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On May 4, 2021, the City provided the Respondent with a Notice of Default due to payment noncompliance (Attachment H) with a payment of fees due in the amount of fifty-three thousand two hundred fifty-one dollars and fifteen cents ($53,251.15). The Respondent was given no later than 30 days to cure the default, however, the default was not timely cured.
On October 19, 2021, the City provided the Respondent with a Final Demand Letter due to payment noncompliance (Attachment I) informing the Respondent that fees and penalties had accumulated to fifty-eight thousand four hundred thirty-two dollars and thirty-nine cents ($58,432.39). The Respondent was given no later than 30 days to cure the default, however, the default was not timely cured.
On December 7, 2022, the City Manager offered a Cannabis Deferment and Payment Program (Attachment J) to assist cannabis operators with the accumulated non-operating and other fees by deferring and providing additional time for payment without penalty.
All cannabis operators interested in participating in this program were given no later than January 31, 2023, to execute a payment agreement. The City Manager did not receive a request from the Respondent to participate in the deferment and payment agreement. As of the writing of this report, the City has not limited payment of fees due under DA18-021C since the Development Agreement has been in effect.
On May 31, 2023, the City sent the Respondent a Final Demand Letter (Attachment K) demanding a response to the following demands: 1) Proof of the revival (or request for revival) of the LLC’s entity status with the California Secretary of State; 2) Forwarding payment for the total past due amount; and 3) Contact City staff for a meeting to revise CCP’s Schedule of Performance and for further information to become compliant with DA and CCP. The Respondent did not respond in a timely manner and has failed to make any attempt to cure the defaults.
On August 9, 2023, the City issued an Escrow Account Letter (Attachment L) requiring all cannabis operators to open an escrow account by September 15, 2023, to ensure payment of Cost Recovery Fees. As of the writing of this report, the Respondent has not opened an escrow account nor made any payments into the account.
On October 12, 2023, the City issued to the Respondent a Notice of Review Hearing (Attachment Q) with the hearing date, time, and place.
On October 24, 2023, the City issued a letter (Attachment M) updating the Respondent on their payment and fees related to the DA by correcting the amount due to an error in the total amount billed.
The City provided a credit in the amount of fourteen thousand nine hundred fifty dollars and fifty cents ($14,950.50). As of the writing of the staff report for this hearing, the Respondent owes the City onehundred forty-six thousand twenty-seven dollars and nine cents ($146,027.09). Community Benefit Fees, Cost-Recovery and Non-operating Fees plus penalties continue to accrue and the total amount due may be higher as of the date of the Review Hearing on November 14, 2023.
PROCEDURAL ISSUES
As noted, Respondent did not participate and was not represented at the hearing. No evidence was submitted by Respondent.
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Evidence submitted prior to the hearing by City staff and testimony and statements made at the hearing by City staff are incorporated herein by reference, including the City’s staff report dated November 14, 2023, with attachments A through R, which were admitted into evidence.
Pursuant to CMC 5.20.080(6), the City Manager or his designee may determine if a Cannabis Permittee has failed to comply with any condition, agreement, or covenant with the City. In the event of any material violation, the City Manager or his designee may suspend or revoke a cannabis permit.
Under section 19 of Respondent’s DA, the City may conduct Periodic and Special Reviews of Respondent’s “good faith compliance with the terms of the Agreement,” noting that the burden of proof is on the Owner [Respondent]. In the event of a finding of noncompliance, the City Manager may report the matter to the Planning Commission and City Council with recommended actions. The City Council may terminate the Agreement or impose such conditions as are reasonably necessary to protect the interests of the City.
Pursuant to Section 22 of the DA the City sent a Review Hearing notice to all concerned parties on October 12, 2023. The notice advised that the Review Hearing would be held on the hearing date at the location designated in (Attachment Q). Proof of certified mailing is provided as Attachment R.
The City engaged this Hearing Officer to conduct an impartial, independent review of the evidence in this matter and determine whether Respondent is in compliance with its CCP and DA between itself and the City.
No objections or other procedural issues were raised.
Presenting City Staff members were sworn in prior to giving testimony.
EVIDENCE
Cecilia Madrigal-Gonzalez, Senior Planner, provided an overview of the City’s staff report. Ms.
Madrigal-Gonzalez asked the Hearing Officer to make the recommended findings to repeal and revoke Respondent’s portion of the CCP and their DA in its entirety based on the City’s staff report and the testimony by City staff at the hearing.
Joshua Calhoun, Finance Director, testified as to the accuracy of amounts owed by Respondent and that Respondent had failed to make their required payments.
Glenn Calsada, Special Counsel, confirmed that Respondent’s status as a legal entity was suspended.
Raul Diaz, Building Official, testified that no permits were issued for any site improvements and no certificate of occupancy had been issued to Respondent. Ms. Madrigal-Gonazalez also confirmed that no zoning clearances were issued.
Richard Iglesias, City Clerk, testified that all documents were true and correct copies and all mailing procedures under the CMC were followed.
ANALYSIS
Pursuant to the CMC 5.20.080(6)(a), “Any material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is grounds for suspending or revoking the
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relevant cannabis permit.” To suspend or revoke a cannabis permit the City Manager or the City Manager’s Designee [Hearing Officer] must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant as required pursuant to this chapter” (CMC 5.20.080(6)(a)).
The City asserts that Respondent has made several material violations of the CCP and/or DA as outlined in the City’s Staff Report and testimony, which will be discussed as follows.
1. Breach of Payment Obligations
Pursuant to the DA Article. 5.b (Community Benefit Fees), Article. 7.c (Operating Fees) and Article. 8 (Cost Recovery Fees), the Respondent must pay the City an annual community benefit fee in the amount of $9,523.86 ($1,904.77 down payment and monthly payments in the amount of $761.91), a cost recovery fee, and an operating [or non-operating] fee each year since 2018. The Respondent is also obliged to make payments for these fees under Condition of Approval No. 45; the obligation for Non-Operating Fees is also repeated in Condition of Approval No. 37 for distribution activities.
The Respondent has not made the required timely payments and as of October 24, 2023, is past due in the amount of $146,027.09 as shown in Table 1 of the City’s staff report. Past-due payments continue to accumulate, including late payment penalties. The Respondent must pay all required DA fees in accordance with DA terms. Failure to pay fees constitutes a breach of the DA and may result in suspension or immediate revocation of the DA.
On June 5, 2018, Respondent executed Development Agreement No. 18-021C, which is a legally binding contract between Davina, LLC and the City of Cudahy pursuant to DA Art. 5.b [Community Benefit Fees], Art. 7.c [Operating Fees] Art. 8 [Cost Recovery Fees]. In December 2022 (Attachment J), the City offered a deferment and payment plan option to the Respondent but no interest was received.
The City continued to issue monthly invoices from the period of October 2022 to October 2023 (Attachment N), which are due and payable. Proper notice of default was given with the opportunity to cure, but the Respondent has failed to fulfill its monetary obligations owed to the City.
The City staff report theorizes several potential defenses that Respondent may assert and discusses how each defense would fail. The Hearing Officer agrees but finds no need for further analysis as Respondent has made no such argument itself, as Respondent failed to provide any evidence contrary to that presented by the City. Respondent knew and accepted the terms of the agreement, including all payment provisions, willingly and voluntarily and has not disputed their imposition. It is understood that Respondent requested the City forgive Non-Operating Fees for an 18 month period but did not provide a legally valid reason that would allow such a forgiveness, nor was such a forgiveness ever approved by the City.
Based on the evidence provided by the City above, and the failure of Respondent to provide any evidence to the contrary, a preponderance of the evidence shows that Respondent has breached the terms of DA No. 18-021C by failing to make all required payments to the City as required.
Similarly, The Respondent has failed to comply with Conditions of Approval No. 1(a) and (b) of the CCP, which required the Respondent to pay all City-issued invoices within 30 days of receipt thereof.
The City approved Development Agreement No. 18-021C subject to Conditions of Approval, which are incorporated as part of Development Agreement No. 18-021C. Condition of Approval 1(b) provides that the Respondent is required to pay all City-issued invoices within 30 days of receipt thereof. The City
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has sent the Respondent regular monthly invoices for Community Benefit Program fees, Cost Recovery fees, Non-Operating fees, and late penalties from 2019 to September 2023 (Attachment O). The current outstanding fees owed by the Respondent have been owed to the City for longer than 30 days as shown in (Attachment N). Despite demand and after proper notice of default and opportunity to cure, the Respondent has failed to cure its monetary obligations owed to the City.
Additionally, the City asserts that pursuant to Condition of Approval Nos. 13 and 45, the Respondent’s failure to pay all fees constitutes a cross-breach of Development Agreement No. 18-021C and is grounds for revocation of the CCP.
The Respondent’s non-payment of Non-Operating Fees due under the Development Agreement and all fees due under the Development Agreement, respectively in violation of Condition Nos. 13 and 45 and constitute grounds for revocation of the Respondent's interest in the CCP for the Site.
Again, based on the unrefuted evidence presented by the City above, a preponderance of the evidence shows that Respondent breached multiple conditions of their DA and CCP. Despite multiple attempts and notices by the City to gain compliance, the evidence shows that Respondent failed to comply with their payment obligations, which constitutes the necessary grounds for termination of the DA and revocation of the CCP under the CMC.
2. Noncompliance with State Law
Under DA Art. 4.a. [Facility Operations], Respondent must be a lawful entity capable of operating in accordance with a state-issued cannabis license at all times.
Attachment P shows the Certificate of Status with the Secretary of State of California dated October 31, 2023, which states, “The above-referenced entity’s [Respondent] powers, rights and privileges are suspended in California.” Despite notice of default and opportunity to cure, Respondent’s entity status remains “FTB/SOS” suspended by the California Secretary of State and, as such, the entity is unable to operate in the State of California.
According to the California Franchise Tax Board website, a suspended entity cannot do business in California until they cure the reason for their suspension, which is supported by Rev. & Tax Code Sec. 23301 and case law cited by the City: Casiopea Bovet, LLC v. Chiang (2017) 12 Cal.App.5th 656, 662; City of San Diego v. San Diegans for Open Government (2016) 3 Cal.App.5th 568, 577.
Based on the evidence provided by the City, and the failure of Respondent to provide any evidence to the contrary, a preponderance of the evidence shows that Respondent is not a current legal entity capable of operating in California in violation of DA Art. 4.a.
3. Breach of Conditions of Approval No. 51 (Time Limits) Under CCP 18-0019 CCP Condition No. 51.A. states the approval decision for this CCP becomes effective upon the expiration of the 15-day appeal period following the approval decision, or when any appeals of the decision are finally resolved. The CCP effective date for Respondent’s DA was June 20, 2018. No appeal was ever filed and thus CCP Condition No. 51.A.i sets a 90-day time limit from the effective date of the CCP for the Permittee/Respondent to obtain a Zoning Clearance. CCP Condition No. 51A.ii sets a 90-day time limit from the effective date of the CCP for the Permittee/Respondent to complete construction of Phase I. CCP Condition No. 51A.iii sets a 180-day time limit from the effective date of the CCP for the Permittee/Respondent to complete all Tenant Improvements and construction and to
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obtain a Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time if the Permittee/Respondent has made a diligent effort to implement the Project.
Here, Respondent has not provided the City with any evidence it has obtained a Zoning Clearance, completed construction of Phase I, completed all Tenants Improvements, or obtained a Certificate of Occupancy for the Site within the time limits set forth in Condition of Approval No. 51. Without an extension, the deadlines expired in 2019. The City has no record of any request by the Respondent for an extension of time by the City Manager and there is no evidence the Respondent has made substantial progress such as submitting for a zoning clearance or submitting for a building permit plan check.
Respondent was given notice of default and an opportunity to cure by the City’s Final Demand letter dated October 12, 2023 with no response from Respondent.
Based on the evidence provided by the City, and the failure of Respondent to provide any evidence to the contrary, a preponderance of the evidence shows that Respondent has failed to meet its conditions of approval for CCP18-0019 by failing to implement the Project within the time limits set forth in Conditions of Approval No. 51.
DECISION AND ORDER
Based on the evidence and analysis discussed above, this Hearing Officer finds that a preponderance of the evidence shows that Respondent, despite considerable notice and opportunities to cure any issues, has breached the terms and conditions of DA 18-021C and Respondent’s portion of its CCP and recommends that the Planning Commission and/or City Council repeal Ordinance No. 681 and terminate DA 18-020C and revoke respondent’s interest under CCP 18-0019.
This decision does not affect the payments and penalties outlined in the City’s Staff Report, which are still accumulating, owed and due to City from Respondent.
Submitted January 18, 2024 by Steve Napolitano, Esq., Administrative Hearing Officer.
Steve Napolitano, Esq.
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1 From: Sebastian Rucci <[email protected]>
Sent: Saturday, January 6, 2024 12:03 AM
To: Jose R. Gonzalez; Elizabeth Alcantar; Daisy Lomeli; [email protected]; [email protected]; [email protected]; [email protected]; Cecilia Madrigal; Richard Iglesias; [email protected]; Paloma McEvoy; [email protected]; Juan Arauz; [email protected]
Cc: Daffodil; Daffodil; Cudahy - Phil Kfoury; Cudahy - Christian Subject: NOTICE TO CURE BREACH OF DEVELOPMENT AGREEMENTS Attachments: Cudahy Notice to Cure Default (1-05-23).pdf; Exhibit Mammoth Lakes Case.pdf NOTICE TO CURE BREACH OF DEVELOPMENT AGREEMENTS for 4916 Cecilia Street; Notice of Protest to Illegal Fees and Agreement to Post Bond Pending Outcome of Fee Dispute under Gov. Code § 66020.
Dear Mayor, Vice Mayor, Council Members, City Officials, and City Representatives:
Our office represents the seven cannabis operators with development agreements at 4916 Cecilia Street, see Ordinance No. 676 through 682. Under Section 14, titled “Defaults and Remedies,” the cannabis operators give the City notice of its “default” and “breach” of the development agreements, specifying “the nature of the alleged default and the manner in which said default may be satisfactorily cured.” (Dev. Agmt. § 14(a)). The City’s “failure” to cure within 30 days “shall constitute a default.” (Dev. Agmt. § 14(a)). “After notice and expiration” of the 30 days to cure, the cannabis operators “may institute legal proceedings.” (Id.)
The development agreements were approved on June 5, 2018, a total of 2,039 days (68 months or 5.6 years) from the date of this Notice. The City agreed its contractual promises “shall survive beyond the terms of the present Council members, that this Agreement will serve to bind the City and future Councils to the obligations hereby undertaken.” (Dev. Agmt. Recital M). The City also agreed “after notice and expiration of the 30 days” to cure its default, the cannabis operators “may institute legal proceedings” and “nothing contained herein shall modify or abridge the operator’s rights or remedies (including its rights for damages, if any) resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
Under Section 14, the Cannabis Operators Give the City Notice of Default and provide 30 days to cure the default, or they will file a lawsuit for breach of the development agreement. The operators prefer that the City comply with its contractual promises; however, if it does not cure its default, this Notice identifies “all claims for money or damages against local public entities” as Gov. Code § 905 requires.
The Cannabis Operators also Give Notice to Proceed Under Protest and seek an “arrangement” to pay the disputed fees under protest by posting a bond under Gov. Code § 66020. The operators identify the “factual elements of the dispute and the legal theory forming the basis for the protest.” (Cal Gov Code § 66020(a)). The operators protest all nonoperating fees, All fees for delays by the city in redesigning approved plans and construction delays, and All fees during the coronavirus closure.
City Officials, Officers, Employees, and Consultants Are Given Notice of Claims for Individual Liability if the defaults are not cured. As explained below, they are individually liable for damage under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-68. The development agreements expressly permit the operators to pursue “damages resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
Attachment J Page 893 of 4584
2 The detailed notice (attached letter) identifies the City’s default, including:
(1) The City demands fees during the fifteen-month closure due to the coronavirus pandemic (2) The City demands fees caused by its delays in redesigning approved plans. (3) The City demands non-operating fees from operators progressing towards opening. (4) The City’s temporary 90-day occupancy permit is conditioned on paying illegal fees. (5) Review hearings by a hearing officer instead of the City Council, which violates the agreements.
The City must cure the plethoras of defaults identified in the attached letter and undertake the following acts:
(1). The City must remove all non-operating fees if the facility is not open. (2). The City must waive all fees during the 15-month pandemic. (3). The City must waive all fees during any delays caused by the City. (4). The City must waive all fees when the City was in default under the agreements. (5). The City must issue a regular occupancy permit, not a temporary one. (6). The City must withdraw the defective review hearing with the hearing officer. (7). The City must expedite permits and proceed with the expedited opening of the facilities.
The operators will, of course, pay the operating fee; once they are operating, they will pay the community benefit fee and cost recovery fee as agreed. Nothing in this Notice modifies the agreement; the operators interpret the document precisely as they signed it.
This Notice seeks to bring the City’s actions into compliance with its contractual promises. The City must cure the defaults identified above. The City must “ensure this agreement remains in full force and effect.” (Dev. Agmt. § 23(c)).
The City must correct the many violations identified in this Notice. The cannabis operators have worked on trying to open for 68 months. They have endured many violations, and enough is enough, and then some.
Regarding the defective hearings set for January 8, with a hearing officer. Note the following. The City contractually agreed 68 months ago not to charge fees when the City delayed construction or shut the project down. The “Force Majeure” clause promised that unforeseen events, including “local, state or national emergencies” or “any default by the City” which “substantially interferes with the development, construction or operation of the project,” will entitle the operator to “an extension of time.” (Dev. Agmt. § 23(i)). There are no fees during the period of City caused delays or closures caused by the City.
The City also contractually agreed that any “delay” to “perform” its promises “shall constitute a default.” (Dev. Agmt § 14(a)). Therefore, under § 23(i) “any default by City” which “substantially interferes” with the project will entitle the operator to an “extension of time.” (Dev. Agmt. § 23(i)). The City is in default for its demand for fees for City-caused delays and closures caused by the City under § 14(a) and § 23(i).
The City contractually agreed that “the City Council shall review this agreement annually” to “ascertain operator’s good faith compliance with this agreement.” (Dev. Agmt. § 19(a)). The annual review hearings provided that at the hearing, the “operator shall document any request for an extension of the term due to delays beyond the control of operator (see Section 23(i) force majeure).” (Dev. Agmt. § 19(a)). The annual review hearings under § 19(a) incorporated force majeure delays under § 23(i), which gave the operators a forum to present city-caused delays and closures caused by the City and receive a waiver of fees for these delays.
The City also agreed that the operator could not “compel [the yearly review] hearing” and further agreed that “no implication will be made to operator’s detriment if a hearing is not held.” (Dev. Agmt. § 19(a)). The City promised to hold its first review hearing 55 months ago, the second 43 months ago, the third 31 months ago, the fourth 19 months ago, and the fifth seven months as of the date of this Notice. However, the City refused to hold a single hearing for 68 months, preventing a review of its delays in breach of §§14(a), 19(a), and 23(i).
3 With no hearings by the City Council, the developers turned to City staff and blocked the operators from appearing before the City. The recent notice by the City of “review hearings” before an appointed “hearing officer” to determine compliance with “Section 19 of the agreement” is defective. Section 19 required that “the City Council shall review this agreement annually.” (Dev. Agmt. § 19(a)). Most recently, on December 29, 2023, the City stated in a letter that the operator's “failure to confirm your appearance at the January 8, 2024 review hearing, you have waived your right to present evidence at and otherwise participate at the review hearings.” However, the City contractually promised in the development agreement that “at the time and place set for the review hearing, the operator shall be allowed to be heard.” (Dev. Agmt. § 19(d)). The right to be heard is at the time of the hearing, not before. This breached the agreement in multiple ways.
The plethora of defects, the liability for lost damages, and likely individual liability for civil RICO violations are identified.
Please take a serious review of the information in the letter. The case that accompanies the letter displays that lost profits damages are substantial. However, the City has 30 days to cure, and we sincerely hope you take this route.
I am available anytime to discuss the contents of this Notice, or make a full presentation before the City Council, or meet with City officials or City representatives.
Please take a look at the attached detailed letter and the exhibit (Mammoth Lakes case) attached to the letter.
Respectfully submitted,
Sebastian Rucci
Law Office of Sebastian Rucci, P.C.
16400 Pacific Coast Highway, Suite 212
Huntington Beach, CA 92649
Phone: (562) 901-0199
Fax: (562) 249-6910
Email: [email protected]
cc: cannabis operators
LAW OFFICE OF SEBASTIAN RUCCI, P.C.
16400 Pacific Coast Highway, Suite 212
Huntington Beach, CA 92649
Phone: (562) 901-0199
Fax: (562) 249-6910
[email protected]
January 5, 2024
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Mayor, Jose R. Gonzalez ([email protected])
Vice Mayor, Elizabeth Alcantar ([email protected]) Councilmember, Daisy Lomeli ([email protected]) Councilmember, Martin U. Fuentes ([email protected]) Councilmember, Dr. Cynthia Gonzalez ([email protected]) City Manager, Alfonso Noyola ([email protected]) Finance Director, Joshua Calhoun, CPA ([email protected]) Senior Planner, Cecilia Madrigal-Gonzalez ([email protected]) City Clerk, Richard Iglesias ([email protected]) Special Council, Glenn Ward Calsada ([email protected]) City Attorney Paloma Perez-McEvoy ([email protected]) City Attorney Stephanie Arechida ([email protected]) Community Development Director, Juan Arauz ([email protected]) Building Official, Raul Diaz ([email protected]) RE: NOTICE TO CURE BREACH OF DEVELOPMENT AGREEMENTS for 4916 Cecilia Street; Notice of Protest to Illegal Fees and Agreement to Post Bond Pending Outcome of Fee Dispute under Gov. Code § 66020.
Dear Mayor, Vice Mayor, Council Members, City Officials, and City Representatives:
Our office represents the seven cannabis operators with development agreements at 4916 Cecilia Street, see Ordinance No. 676 through 682. Under Section 14, titled “Defaults and Remedies,” the cannabis operators give the City notice of its “default” and “breach” of the development agreements, specifying “the nature of the alleged default and the manner in which said default may be satisfactorily cured.” (Dev. Agmt. § 14(a)). The City’s “failure” to cure within 30-days “shall constitute a default.” (Dev. Agmt. § 14(a)). “After notice and expiration” of the 30 days to cure, the cannabis operators “may institute legal proceedings.” (Id.)
The development agreements were approved on June 5, 2018, a total of 2,039 days (68 months or 5.6 years) from the date of this Notice. The City agreed its contractual promises “shall survive beyond the terms of the present Council members, that this Agreement will serve to bind the City and future Councils to the obligations hereby undertaken.” (Dev. Agmt.
Recital M). The City also agreed “after notice and expiration of the 30 days” to cure its default, the cannabis operators “may institute legal proceedings” and “nothing contained herein shall modify or abridge the operator’s rights or remedies (including its rights for damages, if any) resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
Under Section 14, the Cannabis Operators Give the City Notice of Default and provide 30 days to cure the default, or they will file a lawsuit for breach of the development agreement. The operators prefer that the City comply with its contractual promises; however, if it does not cure its default, this Notice identifies “all claims for money or damages against local public entities” as required by Gov. Code § 905.
The Cannabis Operators also Give Notice to Proceed Under Protest and seek an “arrangement” to pay the disputed fees, under protest, by posting a bond, under Gov. Code § 66020. The operators identify the “factual elements of the dispute and the legal theory forming the basis for the protest.” (Cal Gov Code § 66020(a)). The operators Protest All Non-Operating Fees, they Protest All Fees for Delays by the City in redesigning approved plans and construction delays, and they Protest All Fees During the Coronvirus Closure.
City Officials, Officers, Employees, and Consultants Are Given Notice of Claims for Individual Liability if the defaults are not cured. As explained below, they are individually liable for damage under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-68. The development agreements expressly permit the operators to pursue “damages resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
1. INTRODUCTION OF CITY’S BREACH OF DEVELOPMENT AGREEMENTS The operators paid over $750,000 in fees; however, 68 months after securing approval, six facilities are still not open for refusing to pay illegal fees. The City’s default include:
(1) City demands fees during the fifteen month closure due to the coronavirus pandemic (2) City demands fees caused by its delays in redesigning approved plans. (3) City demands non-operating fees from operators who progressed towards opening. (4) City’s temporary 90 day occupancy permit are conditioned on paying illegal fees. (5) Review hearings by hearing officer instead of City Council violate the agreements.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 2
Over five years ago, 2,039 days or 68 months ago, Cudahy approved seven identical development agreements. During the past 68 months, the operators paid $3/4 million in fees and invested over $10 million in renovating an existing warehouse; however, after 68 months, only one of the seven operators is open. The City issued one operator a 90-day temporary occupancy permit, violating its vested rights. The other six are facing revocation hearings for failure to pay disputed and illegal fees in full, a violation of many of their rights..
The City contractually agreed 68 months ago not to charge fees when the City delayed the construction or shut the project down. The “Force Majeure” clause promised that unforeseen events, including “local, state or national emergencies” or “any default by the City” which “substantially interferes with the development, construction or operation of the project,” will entitle the operator to “an extension of time.” (Dev. Agmt. § 23(i)). There are no fees during the period of City caused delays or closures caused by the City.
The City also contractually agreed that any “delay” to “perform” its promises “shall constitute a default.” (Dev. Agmt § 14(a)). Therefore, under § 23(i), “any default by City” which “substantially interferes” with the project will entitle the operator to an “extension of time.” (Dev. Agmt. § 23(i)). The City is in default for its demand for fees for City-caused delays and closures caused by the City under § 14(a) and § 23(i).
The City contractually agreed that “the City Council shall review this agreement annually” to “ascertain operator’s good faith compliance with this agreement.” (Dev. Agmt. § 19(a)). The annual review hearings provided that at the hearing, the “operator shall document any request for an extension of the term due to delays beyond the control of operator (see § 23(i) force majeure).” (Dev. Agmt. § 19(a)). The annual review hearings under § 19(a) incorporated force majeure delays under § 23(i), which gave the operators a forum to present city-caused delays and closures and receive a waiver of fees for these delays.
The City agreed that the operator could not “compel [the review] hearing” and further agreed that “no implication will be made to operator’s detriment if a hearing is not in fact held.” (Dev. Agmt. § 19(a)). The City promised to hold its first review hearing 55 months ago, the second 43 months ago, the third 31 months ago, the fourth 19 months ago, and the fifth 7 months as of the date of this Notice. However, the City refused to hold a single hearing for 68 months, preventing any review of its delays in breach of §§14(a), 19(a), and 23(i).
Without any review hearing by the City Council, the developers turned to City staff and they blocked the operators from appearing before the City. City attorney Paloma McEvoy stated in a letter that the City Council considered your demand to appear before City Council and “has decided not to negotiate the repayment of fees and to continue with” the revocation hearings.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 3
The reference to the hearing is to the City’s recent notice of “review hearings” before an appointed “hearing officer” to determine compliance with “Section 19 of the agreement.” However, § 19 required that “the City Council shall review this agreement annually.” (Dev.
Agmt. § 19(a)). On December 29, 2023 the City stated in a letter that the operators “failure to confirm your appearance at the January 8, 2024 review hearing, you have waiver your right to present evidence at and otherwise participate at the review hearings.” However, the City promised that “at the time and place set for the review hearing, operator shall be given an opportunity to be heard.” (Dev. Agmt. § 19(d)). The right to be heard is at the time of the hearing, not before. This breached the agreement in multiple ways. This confirms that the City’s staff will prevent the City Council from ever hearing about the plethora of breaches by staff.
At a minimum, the purported fees during the pandemic caused delays are illegal. The Operators were shut down for 453 days (15 months) from March 19, 2020, when the shelter-in-place orders started, through June 15, 2021, when the shelter-in-place ended. For 15 months, the operators could not perform any legal construction. Nonetheless, the City demanded $511,140 in fees during the 15-month closure ($28,560 monthly for operating fees and $66,668 per year for community benefit fees). The City’s demand for fees during the closures is a patent breach of its contractual promises under section 23(i).
The imposition of fees during the pandemic closure is compounded by the lengthier delays by City consultants who revised approved plans in breach of the incorporated site and floor plans: “The operator’s site plan and floor plan for the facility are attached hereto as Exhibit D and incorporated into the application.” (Dev. Agmt. § 3(a)). The “cannabis permit application” and detailed construction plans were also incorporated. (Dev. Agmt. § 1(d)). These delays breached the agreement that the “Operator shall receive priority processing for any corresponding City permits.” (Dev. Agmt. Recital F). The City agreed the “project shall vest” (Dev. Agmt. Recital N) and the “Operator may operate cannabis-related activities.” (Id. § 4(a)).
The plan approval delays were compounded by consultants imposed construction procedure not found in the agreements in breach of the agreements which incorporated the construction procedure: “During any on-site construction” for the “remodeling of existing buildings, operator shall comply with all applicable conditions of City’s standard conditions for construction, attached and incorporated as Exhibit F.” (Dev. Agmt. § 13). The operators agreed to comply with the “construction requirements contained” in the agreement. (Id. § 1(d)).
It fell on the City Council to review City caused delays to the project. However, since these reviews were being blocked by City staff, the operators wrote to City Manager Noyola and presented documentation of the delays. City Manager Noyola agreed that the “documentation of disruptions and difficulties with business development and/or operations caused by the pandemic impacted your business operations for a portion of the time past due fees have accrued.” Notice that “and/or” refers to delays and/or closures from the pandemic.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 4
However, instead of removing fees for City caused delays, City Manager Noyola continued to demand the fees and used various illegal tactics to extort payment of these fees.
In the words of City Manager Noyola, the operators “will remain in default status on its development agreement until all past due fees . . . have been paid.” The default status prevented any construction work for failing to pay illegal fees and violated the agreements.
The City placed the operators in default, which shut down the construction. Since the fees are not due, this is a default of the City’s promise that any “delay” by the City to “perform” its promises “shall constitute a default.” (Dev. Agmt § 14(a)). The 90-day conditional occupancy permit is applying a word that does not exist in the agreements and violates the promise that the agreements “vest certain rights in the operator.” (Dev. Agmt. Recital B), that “the operator’s land use entitlements for the project shall vest” (Dev. Agmt. Recital N), and that “the operator may operate cannabis-related activities.” (Dev. Agmt. § 4(a)).
On Nov. 15, 2023, the City stated in response to a Public Records Request that the cannabis operators have been billed by the City total non-operating fees of $5,404,282. The non-operating fees from the operators total $1,913,520 ($28,560 x 68 months). Because the word non-operating is not found in the agreements, the non-operating fees must be discerned from “the mutual intention of the parties as it existed at the time of contracting.” (Civ.
Code, § 1636.) Firsthand account at the time of contracting is provided by former vice mayor Christian Hernandez who spearheaded the cannabis policy for the City, and by Philip Kfoury, the operators’ principal, who negotiated the development agreements for the operators.
They explain that at the time of the agreement, the City was focused on revenue from gross receipts, not fees from businesses under construction and trying to open. The City was concerned that the operators would squat on their license. This resulted in the sentence requiring operating fees “until the operator is operating.” It is important to note that this requires payment of operating fees while not operating. The word non-operating is not used in the development agreements or the municipal code. That sentence was included to alleviate the City’s concern about operators squatting on their license and does not apply if the operator is progressing to open. Otherwise, operators would have to pay operating fees while trying to open but while strategically delayed by the city, which is precisely what is happening. Support for this interpretation is found in the development agreements, municipal code, and state law.
It should be readily apparent if the $511,140 in fees during the pandemic closures, the fees for redesign delays and construction delays, and the $1.9 million non-operating fees are not owed. The operator’s payment of $3/4 million to date makes them current and shows that the City is leveraging its plethora of breaches to secure illegal fees. This supports civil RICO claims for individual liability and is permitted by the City’s agreement that the operators may pursue “damages from bad faith intentional acts, the grossly negligent or malicious acts of City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a))..
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 5
2. RELEVANT FACTS IDENTIFYING THE CITY’S CONTRACTUAL PROMISES
2.1 Agreements Guarantee Many Rights Including that the Project is Vested.
Shortly after the City adopted Ordinance No. 673 allowing commercial cannabis, Philip Kfoury, the cannabis operators principal, met with City officials about opening a cannabis manufacturing facility. After being assured that the facility would open within one year, they applied for a cannabis cultivation, manufacturing, and distribution facility at 4916 Cecilia.
The City moved quickly as it promised. On April 30, 2018, the planning commission held a public hearing and received an extensive presentation from its cannabis consultants. Two weeks later, on May 15, 2018, the City adopted resolutions approving the seven agreements. On June 5, 2018, the City executed development agreements with Cuper Development, Go Cudahy, Davina, Genius Distribution, Herbal Dragon, Daniel and Goliath, and 420 LLC (“operators”).
The development agreements comprise 41 pages, without exhibits, and were adopted as law in Ordinances No. 676 through 682. The development agreements confirm that the “City concluded that the pursuit of the Project will serve the best interests of its citizens and that the public health, safety, and welfare are best served by entering into this obligation.” (Dev.
Agmt. Recital M). The City “found that the Project” is “in the best interest of the City of Cudahy and its residents.” (Agmt. Recital P).
The development agreements identify that one of its main “purpose” is “to establish certain development rights” in the project “regardless of intervening changes” in order to “reduce the economic risk of development.” (Dev. Agmt. Recital A).
The City agreed that the development agreements “establish certain development rights” and “vest certain rights in the operator.” (Dev. Agmt. Recital B). “The City agrees the operator’s land use entitlements for the project shall vest” (Dev. Agmt Recital N), “the operator may operate cannabis-related activities” (Dev. Agmt. § 4(a)), and the “property may be used for commercial cannabis” cultivation, manufacturing, and distribution. (Id. § 1(c)).
2.2 The City Agreed to Proceed in Good Faith and Implemented the Agreement in Accordance with its Terms and to the Fullest Extent Permitted by Law.
The agreements include many provisions requiring the City to act in good faith. “If the operator disagrees with” cost recovery fees “the operator and the City shall work, in good faith to resolve operator’s written request. The dispute shall be decided in favor of operator if the City does not respond to the written request within thirty days of actual receipt.” (Dev.
Agmt. § 8(d)). If a citizen initiative imposes a cannabis tax, the “operator agrees to renegotiate in good faith the terms of this development agreement with the City.” (Dev. Agmt. § 9(b)).
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 6
If conflicting state or federal law impact the project the parties shall “meet and confer in good faith and attempt to modify this agreement to bring it into compliance with any such federal or state law.” (Dev. Agmt. § 23(o)). If an amendment is necessary to comply with conflicting state or federal law “the City shall cooperate with the operator in securing any City permits, licenses or other authorizations that may be required as a result of any amendment resulting from actions initiated by the City.” (Dev. Agmt. § 23(o)).
Contractually, the City promised to ensure the agreements remains in force: “The parties shall cooperate with each other and undertake such reasonable actions as may be appropriate to ensure this agreement remains in full force and effect and is implemented in accordance with its terms and to the fullest extent permitted by state or federal law.” (Dev. Agmt. § 23(c)).
Several actions taken by the City to terminate the agreement as a result of refusing to pay illegal fees are intended to terminate the agreement in bad faith in violation of the many promises made by the City in the development agreements.
2.3 Approved Plans Were Incorporate in the Agreements and the City Contractually Agreed Redesigning Approved Plans is Considered a Default.
Section 3 titled “Operator’s Site and Floor Plans” incorporate the site and floor plans as an exhibit: “The operator’s site plan and floor plan for the facility are attached hereto as Exhibit D and incorporated into the application.” (Dev. Agmt. § 3(a)). The “cannabis permit application” and its detailed construction plans were also incorporated. (Dev. Agmt. § 1(d)).
The development agreements confirm that “the Project will consist of a vertically integrated” facility providing “cannabis production, processing, and distribution.” (Dev. Agmt.
Recital I). The existing “industrial/warehouse building” comprising 68,000-square-feet will be divided into seven spaces. (Dev. Agmt. Recital I). Construction includes the “renovation or remodeling of existing buildings.” (Dev. Agmt. § 13).
The City contractually agreed that its “failure” to “perform any term or provision of this agreement” after “notice and cure period shall constitute a default.” (Dev. Agmt. § 14(a)). The City also agreed to provide “an extension of time” for “any default by City.” (Dev. Agmt. § 23(i)). The City contractually agreed that any redesign of approved plans would constitute a default and require fees during this period of delay to be extended, i.e., waived.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 7
2.4 City Agreed to Expedite Permits and Contractually Promised that Delays by the City in Expediting Permits is Considered a Default.
The City agreed that the “Operator shall receive priority processing for any corresponding City permits.” (Dev. Agmt. Recital F). The City “acknowledge[d] that changes to the project or development plans and related approvals may be appropriate and mutually desirable to carry out the intent and purpose of this agreement.” (Dev. Agmt. § 23(n)).
The City agreed if conflicting laws “require changes in plans, maps or permits approved by the City, this agreement shall remain in full force” and the parties shall “meet and confer in good faith and attempt to modify this agreement to bring it into compliance” and “the City shall cooperate with operator in securing any City permits.” (Dev. Agmt. § 23(o)).
The City contractually agreed that its “failure” to “perform any term or provision of this agreement” after “notice and cure period shall constitute a default.” (Dev. Agmt. § 14(a)). The City also agreed to provide “an extension of time” for “any default by City.” (Dev. Agmt. § 23(i)). The City contractually agreed that its failure to expedite construction would require fees during this period of delay to be extended, i.e., waived.
2.5 Construction Procedures Were Incorporated in the Agreements and the City Agreed Any Construction Delays by the City is Considered a Default.
Section 13 titled “Standard Conditions for Construction” incorporate the construction procedure as an exhibit: “During any on-site construction activities related to development of the project site and any buildings thereon, or renovation or remodeling of existing buildings, operator shall comply with all applicable terms and conditions of City’s standard conditions for construction, attached and incorporated as Exhibit F.” (Dev. Agmt. § 13).
The construction included dividing an existing 68,000-square-foot “industrial/warehouse building” into seven spaces. (Dev. Agmt. Recital I). The operator agreed to comply with the “construction requirements contained in the agreement.” (Dev. Agmt. § 1(d)).
The City agreed that its “failure” to “perform any term or provision of this agreement” after a “cure period shall constitute a default.” (Dev. Agmt. § 14(a)). The City agreed to provide “an extension of time” for “any default by the City.” (Dev. Agmt. § 23(i)). In effect, if the City required any construction procedure, other than the one attached to the agreement, it would be in default and any fees due would be extended, i.e., waived, during the period of default.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 8
2.6 Force Majure Delays Require an Extension for Local, State or National Emergencies and an Extension for Any Default by the City.
Section 23(i) titled “Force Majeure” provides “an extension of time” during delays due to “local, state or national emergencies” or delays due “any default by the City” as follows:
“23(i). Force Majeure. If delays are caused by unforeseen events beyond the control of the operator, such delays will entitle operator to an extension of time as provided in this section. Such unforeseen events (‘Force Majeure’) shall mean war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party’s control, or any default by the City hereunder, which Force Majeure event substantially interferes with the development, construction or operation of the Project.” On March 19, 2020, Governor Newsom ordered all individuals to stay home at their place of residence, except the individuals working in critical infrastructure sectors identified in the order. The order restricted all non-essential travel and activities outside the home. On March 19, 2020, the County of Los Angeles issued a Mandatory Stay at Home Order. On March 23, 2020, the City of Cudahy adopted Resolution No. 20-06 which declared a Local Emergency due to the public threat caused by the coronavirus and shut down all non-essential businesses.
The City contractually agreed when it closed the operators’ construction for 15 months during coronavirus, this was a force majeure delay due to the “local, state or national emergencies” and all fees during this period were extended, i.e., waived. The City also contractually agreed that its “failure” to “perform any term or provision of this agreement” after a “cure period shall constitute a default.” (Dev. Agmt. § 14(a)).
The City also agreed that any City caused force majeure delay in redesigning approved plan (Dev. Agmt. §§ 1, 3(a)), or any City caused force majeure delay in failing to expedite permits (Dev. Agmt. Recital F), or any City caused force majeure delay with inspections or construction (Dev. Agmt. § 13) require that fees during this period be extended, i.e., waived.
The City agreed that its “failure” to “perform any term or provision of this agreement” after a “cure period shall constitute a default.” (Dev. Agmt. § 14(a)).
On April 18, 2022, Philip Kfoury, sent a letter to City Manager Noyola, documenting the “difficulties in obtaining approval” that City consultants restarted the “approval process from the beginning” that “COVID-19 pandemic created further delays” prohibiting construction work, and that these were “Force Majeure-related items and totally out of our control.” January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 9
City Manager Noyola responded in language repeated in many letters that he agreed the delays impacted their business during a portion of the time past due fees have accrued:
“You have provided the City with information and documentation of disruptions and difficulties with business development and/or operations caused by the COVID-19 pandemic. These difficulties appear to have impacted your business operations for a portion of the time past due fees have accrued.” However, City Manager Noyola did not comply with the City’s contractual promise that the documented force majeure delays entitled the operators to an extension of time, i.e., waiver of fees “for a portion of the time past due fees have accrued.” Instead, the City placed the operators in default, and stopped all construction, for refusing to pay disputed and illegal fees during the force majeure delays. The City’s demand for fees during the pandemic closure of construction is a breach of the City’s contractual promises under section 23(i).
2.7 The City Breached the Development Agreements by Placing the Operators in Default Status and Agreeing to Only Issue Conditional 90-Day Occupancy Permits, Only Renewable if Disputed and Illegal Fees are Current.
City Manager Noyola stated in many letters that the operators “will remain in default status on their development agreement until all past due fees have been paid” and once the fees are paid “the City will only issue a temporary certificate of occupancy for the site valid for 90 days. The temporary certificate of occupancy may be reissued if the Operator remains in compliance” with the fees. The default status by the City Manager prevented any construction work for failing to pay illegal fees and violated the development agreement.
The City contractually promised that the City Council would review the operators’ compliance and modify and terminate the agreement. (Dev. Agmt. § 19(a)). This did not occur in violation of the agreement. The City agreed that the procedure to place the operators in default required the procedure identified in § 14. This procedure was not followed, of course, refusing to pay illegal fees is not a default.
The City also promised that it may “modify this Agreement (except no modification shall increase Owner’s liability nor reduce Owner’s rights).” (Dev. Agmt. § 19). Denying construction for refusing to pay illegal fees is an un-permitted modification and a breach of the agreements. The parties agreed that only “minor amendments that do not affect a substantive provision of this Agreement may be approved by the City Manager on behalf of the City.” (Dev.
Agmt. § 23(a)). The default without construction permission is not minor, it major, and the City Manager placed the operators in default as a pretext to securing illegal fees, this violated the development agreements.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 10
The City believes that a business which has not yet opened for over five years, and is prevented from opening by the City, must pay operating fees to the City. Moreover, once the fees are paid, the City limit operations to a temporary occupancy permit lasting only 90 days.
In effect, it takes over fives to open, but the operations get a limited 90-day window. The operators are private landowners, they have rights, more importantly, their rights are agreed upon in the contract with the City. The attempt by City Manager Noyola to limit occupancy permits to ensure payment of illegal fees, in bad faith, its illegal extortion, and it’s a breach of the development agreements..
The agreements have no discussion about issuance of a “temporary occupancy permit.” On the contrary the agreements confirm that the agreement “vest certain rights in the operator.” (Dev. Agmt. Recital B). “The City agrees the operator’s land use entitlements for the project shall vest” (Dev. Agmt Recital N), “the operator may operate cannabis-related activities” (Dev.
Agmt. § 4(a)), and the “property may be used for commercial cannabis” cultivation, manufacturing, and distribution. (Dev. Agmt. § 1(c)). The City contractually agreed that the agreement “shall remain in full force and effect so long as the subject property is used for a commercial cannabis facility.” (Dev. Agmt. § 2). The City agreed that the “agreement remains in full force and effect and is implemented in accordance with its terms.” (Dev. Agmt. § 23(c).) The operators are not in default for refusing to pay disputed and illegal fees. In failing to set annual review hearings, the City denied the operators a forum to present force majeure delays. The City contractually promised that the operators could not “compel such hearing, and no implication will be made to operator’s detriment if a hearing is not in fact held.” (Dev. Agmt. § 19(a)). City staff prevented a hearing before the City Council, and this allowed City staff to push illegal fees without review. There was no waiver by the operators in not addressing the illegal fees sooner. The failure to hold yearly review hearings was on the City, which breached the development agreement, municipal code and state law.
A the very minimum, the fees during the pandemic shut-down is flatly illegal. Assuming arguendo, that the operators are in default (they’re not) for refusing to pay illegal fees, the best that the City can do under the agreements is refuse to issue buildings: “No building permit shall be issued . . . after the operator is determined by the City to be in default . . . until such default thereafter is cured by the operator or is waived by the City.” (Dev. Agmt. § 14(f)).
The operators are in their 68th month in attempting to open. Building permits were issued years ago, and the permits vested. Since the operators are not seeking building permits and denying them the right to proceed with construction for already issued building permits, is a violation of the development agreements. Certainly, the City is aware that building permits are not the same as occupancy permits. The word “temporary occupancy permit” is missing from the agreements and not existent in the municipal code. The issuance of temporary occupancy permits for failure to pay illegal fees is in bad faith and a breach of the development agreements.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 11
2.8 City Correspondence Confirms the Scheme to Extort Illegal Fees, the City Contacted the State and Reported them in Default, the City Would Only Issue Temporary Operating Permits and Placing the Operators in Default.
In the scheme to secure dispute illegal fees, the City contacted the State and reported the operators as being in default with the City. This extortion scheme is explicitly documented in City correspondence. On April 8, 2022, a text message from building inspector Louis Morales to City Manager Noyola, noted operator, cupper development, owes $600,000 and he is aware of a “request from the State” and had an idea that will “get them to the table now.” The City was aware that after five years, one of the operators (Go Cudahy) was close to opening. Hence, the City accepted the scheme to “force them to the table” by contacting the California department of cannabis control and informed them, that cannabis operators, were in default with the City and therein jeopardized renewal of their state cannabis permit. The State permit was a requirement of the development agreement. The City’s bad faith is self-evident.
Inspector Morales and City Manager Noyola used fear of economic loss, and fear under color of law, to secure fees that were not owed, or at the very minimum were honestly dispute, to jeopardize the operators’ state permits, so that they will “get them to the table now” is in bad and supports a civil RICO claim for extortion. It also violates the development agreement by failing to follow the procedure for default under § 14 outlined in the agreement.
The operators learned that the City had reported to the State that they were not in good standing with the City, and therefore they could not renew their state license. The operators were blindsided by the City’s extortion in securing non-operating fees, at large majority of which were caused by City delays. This also was the first time the operators were told that the City would not be forgiving any fees for any reason.
On April 18, 2022, Philip Kfoury, sent a letter to City Manager Noyola, describing the unforeseen delays and the “difficulties in obtaining approval from the City to begin work.” That Willdan, the City’s consultants restarted the “approval process from the beginning.” That the “pandemic created further delays” and the State prohibited them “from continuing work.” The letter stated that these were “Force Majeure-related items and totally out of our control.” January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 12
The April18, 2022 letter stated that “the City reported to the State that these licenses were not compliant, resulting in the state denying them provisional state licenses.” He asked the City to communicate to “appropriate state agencies that the licenses are in compliance” so they can “receive a provisional license.” The letter asked for confirmation “that Go Cudahy LLC will receive a Certificate of Occupancy for its portion of the facility” so that it “can begin operations.” This is mandated by the agreement. The operators quickly learned they would only receive a temporary occupancy permit in breach of the agreements. On April 22, 2022, a text from inspector Morales to City Manager Noyola, stated he told the operators the “City’s position for payment for Cuper Development and their provision license issue.” It was later discovered that the plan to get the operators to pay disputed fees included that they would only receive temporary 90-day occupancy permits, and required them to return to the City for permits every 90 days, wherein the City would ensure they are current on their disputed fees. This scheme violates a plethora of the City’s promises under the agreements.
On April 22, 2022, Philip Kfoury, sent a letter to City Manager Noyola, asking him to inform the State that they are “working towards compliance” and that the operators could amortize what is owed over two years, but could not make substantial payments as requested.
The letter noted that it has been five years since they started and are still months from opening:
On May 2, 2022, City Manager Noyola, sent a letter stating that the City would not waive any fees, but the City “is willing to enter into a onetime, forbearance agreement” but the operators “shall remain in default status under its development agreement until all past due fees are paid in full.” The letter noted the operators need a certificate of occupancy to open and “the City will only issue a temporary certificate of occupancy” valid for 90 days, but the temporary permits are renewed if the operators are current with their fees:
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 13
On May 26, 2022, the operators asked once again for the City to inform the State that “Local Compliance is underway” and for further dialogue with the City on the non-operating fees. The letter noted that the “Operators were unable to move forward with the projects because of various delays outside of anyone’s control” in this passage:
On October 18, 2022, City Manager Noyola stated in a letter regarding Go Cudahy that it provided the City with documentation of difficulties with the business caused by the pandemic which impacted the business operations while fees accrued.
Instead of removing fees for City-caused delays, City Manager Noyola continued to demand the fees and used various illegal tactics noted above to extort these disputed fees. In the words of City Manager Noyola, the operators “will remain in default status on its development agreement until all past due fees... have been paid.” The default status prevented construction for failing to pay illegal fees and violated § 14(a), § 19(a), and § 23(i). § 4(a))..
The letter stated that “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 . . .”
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 14
The letter stated that “While in default status, the City will only issue a temporary certificate of occupancy for the site valid for 90 days. A temporary certificate of occupancy may be reissued if the Operator remains in compliance . . .” In effect, a business that has not been able to open for over five years, is given a gift, it can pay illegal fees for not being open, it can pay cost recovery fees which are magically the same amount, $3,954.66, for each month during the past year. As is apparent, the City seeks to secure payment of the fees, not by getting the facilities open, but by providing a temporary occupancy permit for a mere 90 days. The occupancy permit is held over its head to ensure the payment of illegal fees. This is not good faith, and it violates the development agreements.
The development agreements do not provide temporary occupancy permits if the operator defaults. The best that the City can do is deny a building permit. The development agreement provides: “No building permit shall be issued or building permit application accepted for any structure on the property after City determines operators to be in default of the terms and conditions of this Agreement until such default thereafter is cured by operator or is waived by City.” (Dev. Agmt. § 14(f)). The “failure to delay by either party to perform any term or provision of this Agreement beyond” a “cure period shall constitute a default.” (Id.) The City breached the development agreements by not complying with Section 14. Of course, the operators are not in default, and placing them in default was done in bad faith..
2.9 Three months ago, the City Demanded Immediate Payment of $200,000 From the Only Operator to Open Or Face Immediate Revocation.
On Sept. 6, 2023, City Manager Noyola demanded in a text message that Go Cudahy make an “immediate payment of $200,000" for overdue non-operating fees, allowing three days to pay, or the cannabis operator would be placed in default and face immediate revocation.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 15
The astounding demand in seeking “an immediate payment of $200,000" by City Manager Noyola is in a text message that confirms that failure to pay would result in the operator being sent “straight to a revocation hearing.” What is most ironic is that the the$200,000 was due since City Manager Noyola stated one year prior that he agreed that the “documentation of disruptions and difficulties with business development and/or operations caused by the pandemic impacted your business operations for a portion of the time past due fees have accrued.” The $200,000 was force majeure fees. Hence, the text demand violated the development agreement. See Dev. Agmt. § 14(a), § 19(a) and § 23(i).
Since the $200,000 demand by text message was not actually due, it was in bad faith and a clear example of extortion under the color of official right (City Manager) and constitute extortion under fear of economic loss (immediate revocation) and supports civil RICO claims.
The City demands $200,000 in illegal fees but is fully aware that the economic landscape has changed. The City’s economic development strategic plan 2023 stated that “rising industry taxes has led to cannabis-based businesses shutting down to diminishing profit margins...” On Nov. 15, 2023, the City stated in response to a Public Records Request that the cannabis operators have been billed by the City total non-operating fees of $5,404,282. The City has billed the cannabis operators as follows: $579,561 (2018); $1,396,975 (2019); $1,136,548 (2020); $941,915 (2021); $858,243 (2022); $491,037 (2023).
More facts displaying abuse include the October 17, 2023, letter from former federal prosecutor Daffodil Tyminski, who sought a hearing before the City Council. On October 24, 2023, attorney Paloma Perez-McEvoy responded for the City and stated the Mitigation Fee Act does not apply to development agreements. The city’s attorney’s letter stated: “the City Council considered your October 17 Demand and has decided not to negotiate the repayment of fees and to continue with the administrative process.”
More facts displaying the abuse include that one year ago the operators submitted revised floor plans for the building to City Manager Noyola for approval. Those plans have been pending for a year without approval. The City agreed the operator would “receive priority processing for any City permits. (Dev. Agmt Recital F). The City also agreed that “changes to the project . . . may be appropriate and mutually desirable.” (Dev. Agmt. § 23(n)).
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 16
3. THE CITY BREACHED THE AGREEMENTS BY REFUSING TO WAIVE FEES DURING THE PANDEMIC CLOSURE AS PROMISED IN SECTION 23(i).
The agreements provide that “unforeseen events,” including “local, state or national emergencies” which “substantially interfere with” the project, are defined as force majeure and “such delays will entitle the operators to an extension of time” (Dev. Agmt. § 23(i)).
City Manager Noyola agreed in many letters that “documentation of disruptions and difficulties with business development and/or operations caused by the COVID-19 pandemic” have “impacted your business operations for a portion of the time past due fees have accrued.” The operators were also shut down for 453 days (15 months), from March 19, 2020, when the shelter-in-place orders started (Executive Order N-33-20), through June 15, 2021, when they ended (Executive Order N-07-21). The City seeks $511,140 in fees non-operating fees of $28,560 per month for 15 months, and community benefit fees of $66,667 per year for
1.2 years during the 15 months the operators were shut down.
In many invoices, the City demanded fees during the time that the City was closed due to the pandemic. It was not the intention of the City for the operators to pay fees if they were delayed by the City or closed by the City, see § 23(i)). The City’s demand for fees during the pandemic closure is a breach of the City’s contractual promise under section 23(i).
4. THE CITY BREACHED THE AGREEMENTS BY FAILING TO EXPEDITE APPROVALS AND BY SEEKING FEES FOR DELAYS CAUSED BY THE CITY.
The City caused delays in redesigning the approved plan (Dev. Agmt. §§ 1, 3(a)), the City failed to expedite permits (Dev. Agmt. Recital F), and the City was responsible for delays with inspections and construction (Dev. Agmt. § 13). These delays are a breach of the City’s contractual promise that any “delay” to “perform” its promises “shall constitute a default.” (Dev. Agmt. § 14(a)). The City also agreed that “any default by the City” which delayed the project “will entitle the operators to an extension of time.” (Dev. Agmt. § 23(i)). The operators were entitled to a waiver of fees for delays by the City and its consultants.
Nonetheless, the City demanded fees notwithstanding its many delays. The warehouse is still not open 68 months after signing the development agreements, and this is impossible without City delays; after all, the operators have decades of construction experience. The reason that after 68 months six facilities are still not open is due to City consultants who redesigned the approved plans, changed the approved construction procedure, and delayed inspections.
These delays explain why the renovation of an existing warehouse is still not open 68 months after securing approval when the operators believed it would be open within one year.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 17
The “mutual intention of the parties as it existed at the time of contracting” (Civ. Code, § 1636) is that any “delay” by the City to “perform” its promises “shall constitute a default.” (Dev. Agmt. § 14(a)). Six operators are still not open because the City breached its performance by redesigning approved plans and delayed approval of the construction. Additionally, the City is in default for demanding any fees during these City caused delays.
The only procedure to document these reviews under the agreements was at the annual review hearing where the “operators shall document any request for an extension of the term due to delays beyond the control of operators (see Section 23(j), Force Majeure).” (Dev. Agmt. § 19(a)). By failing to hold any annual review hearings during the past 68 months, the City denied the operators a forum to present City caused delays. “The operator has no obligation to compel such hearing, and no implication will be made to operator’s detriment if a hearing is not in fact held.” (Dev. Agmt. § 19(a)). Moreover, City staff prevented any hearing before the City Council, and this allowed staff to set illegal fees without review.
The fees due during City caused delays 68 months later fell on the City Council, who failed to review City caused delays by not holding annual review hearings. See Dev. Agmt. § 14(a), § 19(a) and § 23(i). The reasonable estimate is as follows. The parties anticipated it would take one year to open. Hence, the one-year falls on the operators. Deducting this one year from the 68 months leaves 58 months. Removing the 15 months during the pandemic further leaves 43 months. The operators suggest 30 months for the city-caused redesign and construction delays. This includes the fact that the City has illegally placed the project in default, halting any construction for over a year, and has even recently failed to return permits submitted over one year ago.
The fees during these 30 months of delays total $1,023,468 (community benefit fees of $66,667 for 2.5 years and non-operating fees of $28,560 per month for 30 months). The City is in default for its demand for fees during construction delays caused by the City.
5. CITY BREACHED THE AGREEMENTS BY DEMANDING NON-OPERATING FEES AS SHOWN BY THE PARTIES INTENT AT THE TIME OF SIGNING.
The City seeks operating fees from businesses that are not operating. The word “nonoperating fees” is not found in the development agreements, or the municipal code. On the other hand, community benefit fees are provided for in CMC § 5.20.020(16), which defines “development agreement” to means an agreement “which provides agreed-upon community benefits to the city.” The cost recovery fees are provided for in CMC § 5.20.070(6), mandating that the “development agreement” shall require the operators to “fully reimburse the city” for all costs, expenses and fees related to the commercial cannabis production. There is no provision in the municipal that a development agreements include operating fees.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 18
The development agreement in Section 7(c) titled “Operating Fees” defines the words premises, commercial cannabis activities, gross receipts, and production space, but does not define the word non-operating fees or the word operating fees. (Dev. Agmt § 7(c)). The definition of production space notes it excludes “non-operational common areas.” The word non-operating fees is not found in the agreements or the municipal code. The development agreement applies “operating fees” to a business that is “operating.” The agreement provides that the “production space” and “gross receipts” fees apply when a operator is open and operating. Accordingly, the word ambiguous and must be discerned from “the mutual intention of the parties as it existed at the time of contracting.” (Civ. Code, § 1636.)
5.1 Councilman Hernandez’s Recollection of the Intention of the Non-Operating Fees at the Time of Approval Confirms Non-Operating Feed Do Not Apply. “The mutual intention of the parties as it existed at the time of contracting” (Civ. Code, § 1636) is of high value from vice mayor Christian Hernandez, who spearheaded the cannabis policy and framework for the development agreements. He states from first-hand knowledge that he believed the City’s position of the non-operating fees at time of approval as follows:
Non-operational fees were included in the development agreements to prevent cannabis operators from holding licenses without opening. In 2018, the City was looking for serious cannabis businesses with a genuine desire to operate as soon as possible. The City was interested in new sources of recurring annual revenue for its general fund and community programs. In the cities of Lynwood, Palm Desert, and Coachella, cannabis licenses resold their licenses to operators who had no urgency to open. This was discussed at hearings, and fees for non-operations were incorporated to prevent license holders from flipping their licenses to operators who would not open rights away.
Naturally, non-operating fees were never intended to last in perpetuity, and they were not expected during natural disasters or other delays beyond the operator’s control. Otherwise, the operators would have to pay non-operational fees for delays beyond their control. Cannabis license holders were also expected to be operating within a year. The City expected its staff and consultants to expedite permits and inspections. Opening the cannabis facility was the City’s top priority.
Cannabis operators were paying recovery fees, so the City agreed to expedite their approval process. Since non-operating fees could only provide short-term revenue, they were not the City’s focus. As a result, the City focused on operating fees from the cannabis operators’ gross revenues since they yielded higher recurring revenues for the general fund.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 19
The City implemented the non-operating fees to mitigate the resale of cannabis licenses. Operators were incentivized to open within one year. It created a win-win scenario for the City and the operators. The operators benefitted by generating revenue, and the City benefited from the income they generated through operating fees.
In full disclosure vice mayor Christian Hernandez is a consultant with the operators when he saw the delays being foisted on them. His agreement does not impact his view of his recollection of the City’s position at the time of signing.
5.2 The Operators’ Recollection of the Intention of the Non-Operating Fees at the Time of Contracting Confirms Non-Operating Fees Do Not Apply.
Philip Kfoury, the cannabis operators’ principal, stated his belief of the intention of the parties at the time of contracting regarding the so-called non-operating fees as follows:
During the 2018 approval process, City officials focused on collecting revenue from gross receipts, and we agreed to pay operating fees based on gross revenue.
During the approval process, the City expressed concern about flipping the license to operators and not planning to open quickly. To remove this concern, we agreed to pay operating fees if we (or a future buyer) were allowed to open, but instead squatted on the license. According to my understanding, we would not be charged non-operational fees as long if we made efforts to open.
According to my understanding, the non-operational fees for not opening once we secured the right to open were set as a punishment for not opening. The non-operational fees were based on the total area, which is more than the production area, which is the default fee upon opening. However, we agreed to pay an operating fee based on gross revenues, which was more than the production area for squatting on the license. City officials focused on collecting revenue from gross receipts, not fees from closed businesses trying to open.
Because we expected to open within one year, the focus was on gross revenues, which provided much greater revenue than fees based on project area or production area.
According to our expectations, we would open within a year. In five years, six facilities still need to open. Many of the delays can be attributed to city staff and consultants redoing approved plans, and a portion of the delay is due to the fifteen-month closure during the pandemic. At no time were we able to open and January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 20
instead squatted on our license. During the approval process, it was explained that we would not be liable for non-operational fees if we consistently progressed to open. This was the city’s official position for four years until Alphonso Noyola was hired as city manager. After that, the City changed its position and demanded operating fees from us, even though we were not open because of the countless delays caused by the City, its staff, and its consultants.
Attorney Daffodil Tyminski, a former federal prosecutor, was present at all the hearings during the approval process, and already stated in a letter to the City on July 14, 2023:
“Non-operating fees were designed to be a penalty for squatting on licenses, not a fine for businesses trying to operate but being prevented from doing so by the City. We were consistently told that the City was not currently enforcing payment on those fees if we were progressing towards opening.”
5.3 Non-Operating Fees are Illegal Taxes (No Voter Approval).
The City demands a $1,913,520 ($28,560 x 68 months) non-operating fee for the past 68 months or a yearly operating fee of $285,600 (12 x $28,560 per month) for the time that the business is closed due to City delays. It's not a fee; the non-operating fee is a tax. The City's economic development strategic plan 2023 (Resolution No. 23-41) identified fees on the cannabis operators as a tax in this passage:
“Light industrial processing/warehousing refers to facilities involved in activities such as cultivation, processing, and distribution of cannabis products. These operations may include growing and harvesting plants, manufacturing products like edibles or extracts, and storing inventory. Taxes can be collected through licensing fees, permit fees, and taxes based on the volume or value of products.”
The City is correct, the $1.91 million non-operating fee is a “tax based on the volume.” (Resolution No. 23-41). However, because the “non-operating fee” was not approved by the voters it violates Cal Const Art XIII A §4. “No local government . . . may impose any general tax unless. . . approved by a majority of the voters voting in an election on the issue.” (Gov. Code § 53723.) “No local government may impose any special tax” without a “two-thirds vote of the voters voting in an election on the issue.” (Gov. Code § 53722.) The City was fully aware that a cannabis tax requires approval by the voters by submitting the recent retail cannabis tax to the voters for approval and enacted it in Chapter 5.30 after voter approval. Non-operating fee/tax are illegal taxes because there was no public vote.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 21
CANNABIS RETAILER TAX: Chapter 3.50 the newly enacted Cannabis Retailer Tax approved by the voters imposes “an annual cannabis retailer tax.” (CMC § 3.50.040(1)). The tax is imposed “upon cannabis retailers that engage in business in the city. This cannabis retailer tax is levied based upon business gross receipts.” (CMC § 3.50.010(1)). “The tax rate upon the effective date of this chapter shall be 15 percent of the gross receipts derived from the retail sale of adult-use cannabis or adult-use cannabis products.” (CMC § 3.50.040(3)(a)).
CITY BUSINESS TAX: The municipal code provides a tax on businesses in Chapter 5.08 titled “Business License Tax -- Particular Businesses.” However, it does not include cannabis business in that list. CMC § 5.04.330 lists the “taxes on businesses other than those described in Chapter 5.08" and requires “a license tax based upon gross annual receipts.” If “Gross Annual Receipts” are “$2,000,000 or more” the “Per Annum Fee” is “$2,000 maximum.” The maximum annual fee of $2,000 is far less than the $285,600 yearly fee (12 x $28,560 per month) demanded by the City for the privilege of not being open due to delays by the City.
5.4 Non-Operating Fees/Tax are Illegal Impact Fees (No Findings).
The Mitigation Fee Act (Gov. Code, § 66000 et seq.) limits fees on projects. When a fee is imposed as a condition of approval. Gov. Code § 66001(a) provides procedures to establish fees and requires four findings included that the “reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.” Gov. Code § 66006(e) provides that the “improper allocation of development fees hinders economic growth and is, therefore, a matter of statewide interest and concern. It is, therefore, the intent of the Legislature that this section shall supersede all conflicting local laws and shall apply in charter cities.” Non-operating fees/tax are illegal if they are a fee.
CITY DEVELOPMENT IMPACT FEES: Chapter 15.40, titled "Development impact fees," provides for monetary exactions in connection with project approval. (CMC § 15.40.020(12)).
Chapter 15.40 requires the City to make five statutory findings to impose a legal impact fee, including the "reasonable relationship between the fee and the project." (CMC § 15.40.200).
The City failed to make the necessary findings to charge the operators $1.9 million when their business was closed, mainly because of City delays.
The non-operating fee/tax are illegal if they are a general or special tax because there is no public vote, and if they are a fee, the City failed to make the necessary findings to charge the operators a $1,913,520 ($28,560 x 68 months), or a$285,600 yearly fee (12 x $28,560 per month) during a period when their business is closed, mainly due to City delays. In either case, the non-operating fee/tax violates the agreements, municipal code, and state law.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 22
CITY’S DEVELOPMENT IMPACT FEE STUDY: Further support is found in the City’s development impact fee study, dated April 7, 2021. Under CMC § 15.40.020(19) the “development impact fee study by Willdan dated April 7, 2021" is used to determine an impact fee. The total one-time impact fee is $11,480 ($1,945 traffic fee, $7,480 gen. gov. gee, and $2,055 parking fee). The $11,480 impact fee is far less than the $1.91 million demanded for the privilege of being closed. The City is in default for demanding non-operating fee/tax, from the cannabis operators who were progressing to open.
5.5 The City’s Interpretation of the Non-Operating Fees Apply to Operators Progressing to Open but Unable to Open Is a Breach of the Agreement.
The City has interpreted the “non-operating fees” as being due even irrespective of City cause delays or closures. This files in the face of the “mutual intention of the parties as it existed at the time of contracting” that “delays” and “state or national emergencies” or “any default by City” will “entitle operators to an extension of time.” (Dev. Agmt. § 23(h)). And any “delay” to “perform” its promises by the City “shall constitute a default.” (Dev. Agmt. § 14(a)).
The intention to not collect fees if a facility is not operation is supported by the City’s promise it will not sue for damages for unpaid fees if “the property is not developed, for lost profits or revenues which would have accrued to the City as a result of the development of the property.” (Dev. Agmt. § 14(a)). Simply put, there are no lost profits if the property is not developed and not in operation. This certainly applies if the City causes the failure to open.
The City fails to “give effect to the mutual intention of the parties as it existed at the time of contracting.” (Civ. Code, § 1636). “The whole of a contract is to be taken together, to give effect to every part.” (Civ. Code, § 1641). Instead, the City gives the contract an interpretation that places the operators in breach, after investing $10 million and 68 months into the project.
The City is forcing the breach and fails to recognize that a “contract must receive such an interpretation as will make it lawful.” (Civ. Code, § 1643). The City must “undertake such reasonable actions as may be appropriate to ensure this agreement remains in full force and effect.” (Dev. Agmt. § 23(c)). This requires the City to waive all fees caused by City delays. “The contract may be explained by reference to the circumstances under which it was made, and the matter to which it relates.” (Civ. Code, § 1647.) “Particular clauses of a contract are subordinate to its general intent.” (Civ. Code, § 1650.) The City fails to give effect to the fact that the parties entered into a contract for the development and opening of a cannabis cultivation, manufacturing, and distribution facility. (Dev. Agmt. § 1(c)).
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . PAGE 23