Agenda — Cudahy City Council, April 1, 2025 (part 4 of 6)

Administrative Review Record - Aqua Tergere, LLC

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SANTA ANA ST.

SALT LAKE AVE.

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CL JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

N LEGENDS SITE NOTES EXISTING BUILDING ±12,000 SF ADDITION EXISTING ±950 SF EXISTING ELECTRICAL ROOM ±212 SF EXISTING SHED TO REMAIN N.I.C. EXISTING SHED TO REMAIN N.I.C. EXISTING SHED TO REMAIN N.I.C. BUILDING SECURITY ±456 SF PARKING CALCULATIONS ZONE: INNOVATIVE INDUSTRIAL APN: APN: ZONE: INNOVATIVE INDUSTRIAL SINGLE FAMILY USE: RESIDENTIAL USE: COMMERCIAL / INDUSTRIAL ZONE: INNOVATIVE INDUSTRIAL WINDOW MANUFACTURER ZONE: INNOVATIVE INDUSTRIAL USE: COMMERCIAL / MANUFACTURER WINDOW INDUSTRIAL PROJECT INFORMATION LANDSCAPE CALCULATIONS BOTH PROPERTIES SHARED ACCESS TO USE: COMMERCIAL / INDUSTRIAL ZONE: INNOVATIVE INDUSTRIAL WINDOW MANUFACTURER ZONE: INNOVATIVE INDUSTRIAL SINGLE FAMILY USE: RESIDENTIAL ZONE: INNOVATIVE INDUSTRIAL SINGLE FAMILY USE: RESIDENTIAL ZONE: INNOVATIVE INDUSTRIAL SINGLE FAMILY USE: RESIDENTIAL ZONE: INNOVATIVE INDUSTRIAL USE: RESIDENTIAL SINGLE FAMILY ZONE: INNOVATIVE INDUSTRIAL USE: RESIDENTIAL SINGLE FAMILY ZONE: INNOVATIVE INDUSTRIAL ZONE: INNOVATIVE INDUSTRIAL SINGLE FAMILY USE: RESIDENTIAL USE: RESIDENTIAL SINGLE FAMILY ZONE: INNOVATIVE INDUSTRIAL USE: COMMERCIAL / INDUSTRIAL ZONE: INNOVATIVE INDUSTRIAL WINDOW MANUFACTURER 6

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JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

N LEGENDS SITE NOTES SCALE: ENLARGED SITE PLAN
B 1/16"= 1'-0"

N EXISTING BUILDING ADDITION EXISTING EXISTING ELECTRICAL ROOM BUILDING SECURITY

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N LEGENDS DEMOLITION FLOOR NOTES WALL LEGEND

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EXHIBIT “E”

ADDITIONAL BUSINESS STANDARDS
(IF APPLICABLE)

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EXHIBIT “F”

STANDARDS AND CONDITIONS FOR CONSTRUCTION
(IF APPLICABLE)

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CONDITIONS OF APPROVAL – EXHIBIT F
COMMERCIAL CANNABIS PERMIT NO, CCP18-0011
DEVELOPMENT AGREEMENT NO. DA18-011C
8210 ATLANTIC AVENUE –AQUA TERGERE, LLC

GENERAL CONDITIONS OF APPROVAL
Condition of Approval No. 1 - Financial Responsibility for Compliance Monitoring and Enforcement
a. Cost Responsibilities: The Permittee shall bear the full costs of all City staff time, materials, and City-retained consultants associated with condition compliance review and monitoring, CEQA mitigation monitoring, other permit monitoring programs, and enforcement activities, actions, and processes conducted pursuant to the City of Cudahy Municipal Code (§ 5.20.060) related to this Commercial Cannabis Permit (CCP) and Development Agreement (DA). Such condition compliance review, monitoring and enforcement activities may include (but are not limited to): periodic site inspections; preparation, review, and approval of studies and reports; review of permit conditions and related records; enforcement hearings and processes; drafting and implementing compliance agreements; and attending to the modification, suspension, or revocation of permits. Costs will be billed at the rates set forth in the Planning Division or other applicable City Fee Schedule, and at the contract rates of City-retained consultants, in effect at the time the costs are incurred.

Establishment of Compliance Account: Within 10 calendar days of the effective date of the final decision approving this CCP, the Permittee shall submit a new, updated, and completed reimbursement agreement for Condition Compliance Case No. CCP18-0011 in a form provided by the City, obligating the Permittee to pay all condition compliance review, monitoring, and enforcement costs, and any civil administrative penalties, subject to the Permittee’s right to challenge all such charges and penalties prior to payment.
b. Billing Process: The Permittee shall pay all City invoices within 30 days of receipt thereof. Failure to timely pay an invoice shall subject the Permittee to late fees and charges set forth in the City Fee Schedule, and shall be grounds for suspension, modification, or revocation of this CCP. The Permittee shall have the right to challenge any charge or penalty prior to payment.

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Condition of Approval No. 2 - Defense and Indemnification a. The Permittee shall defend, at the Permittee's sole expense with legal counsel acceptable to the City, against any and all claims, actions, or proceedings against the City, any other public agency with a governing body consisting of the members of the City Board of Supervisors, or any of their respective board members, officials, employees and agents (collectively, “Indemnified Parties”) arising out of or in any way related to the City’s issuance, administration, or enforcement of this CUP. The City shall promptly notify the Permittee of any such claim, action or proceeding and shall cooperate fully in the defense. b. The Permittee shall also indemnify and hold harmless the Indemnified Parties from and against any and all losses, damages, awards, fines, expenses, penalties, judgments, settlements, or liabilities of whatever nature, including but not limited to court costs and attorney fees (collectively, “Liabilities”), arising out of or in any way related to any claim, action or proceeding subject to subpart (a) above, regardless of how a court apportions any such Liabilities as between the Permittee, the City, and/or third parties.
c. Except with respect to claims, actions, proceedings, and Liabilities resulting from an Indemnified Party’s sole active negligence or intentional misconduct, the Permittee shall also indemnify, defend (at Permittee’s sole expense with legal counsel acceptable to City), and hold harmless the Indemnified Parties from and against any and all claims, actions, proceedings, and Liabilities arising out of, or in any way related to, the construction, maintenance, land use, or operations conducted pursuant to this CCP, regardless of how a court apportions any such Liabilities as between the Permittee, the City, and/or third parties. The City shall promptly notify the Permittee of any such claim, action, or proceeding and shall cooperate fully in the defense.
d. Neither the issuance of this CCP, nor compliance with the conditions hereof, shall relieve the Permittee from any responsibility otherwise imposed by law for damage to persons or property; nor shall the issuance of this CCP serve to impose any liability upon the Indemnified Parties for injury or damage to persons or property.

Condition of Approval No. 3 Relationship of CCP Conditions, Laws, and Other Entitlements
The Permittee shall implement the Project in compliance with all applicable requirements and enactments of federal, state, and local authorities. In the event of conflict between various requirements, the more restrictive requirements shall apply. In the event the City Manager determines that any CCP condition contained herein is in conflict with any other CPP condition contained herein, when principles of law do not

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provide to the contrary, the CCP condition most protective of public health and safety and environmental resources shall prevail to the extent feasible.

No condition of this CCP for uses allowed by the City Municipal Code shall be interpreted as permitting or requiring any violation of law, lawful rules, or regulations, or orders of an authorized governmental agency. Neither the approval of this CPP, nor compliance with the conditions of this CPP, shall relieve the Permittee from any responsibility otherwise imposed by law for damage to persons or property.

The Permittee shall obtain a business tax certificate and regulatory licenses for the operation of Commercial Cannabis operations.

Condition of Approval No. 4 - Contact Person
PURPOSE: To establish a contact person responsible for responding to City and/or community complaints.

The Permittee shall designate a contact person(s) to respond to complaints from citizens and the City which are related to the permitted uses of this CUP.

The Permittee shall provide the City with the contact information (e.g., name and/or position title, address, business and cell phone numbers, and email addresses) of the Permittee’s Community Agent who receives all orders, notices, and communications regarding matters of condition and code compliance at the Project site.

Timing: Prior to the issuance of a Zoning Clearance for use inauguration, the Permittee shall provide the Planning Division the contact information of the Permittee’s field agent(s) for the Project file. If the address or phone number of the Permittee’s field agent(s) should change, or the responsibility is assigned to another person, the Permittee shall provide Planning Division staff with the new information in writing within three calendar days of the change in the Permittee’s field agent.

The Planning Division maintains the contact information provided by the Permittee in the Project file. The Planning Division has the authority to periodically confirm the contact information consistent with the requirements of this permit.

Condition of Approval No. 5 - Resolution of Complaints
PURPOSE: To establish a process to resolve complaints.

The following process shall be used to resolve complaints related to the Project:
a. The Permittee shall post the telephone number for the designated Contact Person as identified pursuant to Condition No. 4 in a visible location on the site.

The Contact Person shall be available via telephone on a 24-hour basis.

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Persons with concerns about an activity as it is occurring may directly contact the Contact Person;
b. If City staff receives a written complaint about the Project, the City Manager, or his designee, may contact the Permittee’s Contact Person or the Permittee to request information regarding the alleged violation; and c. If, following a complaint investigation by City staff, a violation of the City Municipal Code or a condition of this CCP is confirmed, City staff may initiate enforcement actions, in accordance with City Municipal Code.

Condition of Approval No. 6 - Reporting of Major Incidents PURPOSE: To ensure that the Planning Director is notified of major incidents associated with, or resulting from, the Project, he Permittee shall immediately notify the Planning Director by telephone, email, FAX, and/or voicemail of any incidents (e.g., fires, explosions, spills, landslides, or slope failures) that could pose a hazard to life or property inside or outside the Project Site.

Upon request of any City, County or State regulatory agency, the Permittee shall provide a written report of any incident that shall include, but not limited to: a description of the facts of the incident; the corrective measures used, if any; and the steps taken to prevent a recurrence of the incident.

Timing: The Permittee shall provide the written report to the requesting agency and Planning Division within seven days of receiving the request.

The Planning Division maintains any documentation provided by the Permittee related to major incidents in the Project file.

Condition of Approval No. 7 - Change of Permittee
To ensure that the Planning Division is properly and promptly notified of any change of Permittee, the Permittee shall file, as an initial notice with the Planning Director, the new name(s), address(es), telephone/FAX number(s), and email addresses of the new owner(s), lessee(s), operator(s) of the permitted uses, and the company officer(s). The Permittee shall provide the Planning Director with a final notice once the transfer of ownership and/or operational control has occurred.

The initial notice must be submitted with the new Permittee’s contact information. The final notice of transfer must include the effective date and time of the transfer and a letter signed by the new Property Owner(s), lessee(s), and/or operator(s) of the permitted uses acknowledging and agreeing to comply with all conditions of this CCP.

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Timing: The Permittee shall provide written notice to the Planning Director 10 calendar days prior to the change of ownership or change of Permittee. The Permittee shall provide the final notice to the Planning Director within 15 calendar days of the effective date of the transfer.

The Planning Division maintains notices submitted by the Permittee in the Project file and has the authority to periodically confirm the information consistent with the requirements of this permit.

COMMERCIAL CANNABIS PRODUCTS MANUFACTURING (ORD. 673, SEC

5.20.110)
PURPOSE: The purpose and intent of this Section is to permit and regulate the commercial Cannabis Products Manufacturing to promote the health, safety, morals, and general welfare of the resident and businesses within the City. The City is authorized to regulate this activity pursuant to State Law.

Condition of Approval No. 8 - Manufacturing Operating Fees.

Operator/Permittee must pay all operating fees as stipulated within Development Agreement No. DA18-011C.

Condition of Approval No. 9 – Manufacturing Properties.

Commercial Cannabis Products Manufacturing is a permitted use only on properties within the applicable Permit Zone with a valid Cultivation Permit and other requisite permits and entitlements.

Condition of Approval No. 10 – Quality Control Employee.

The Permittee must employ at least one (1) member of its personnel dedicated full time to quality control.

Condition of Approval No. 11 – Standard Operating Procedures and Batch Record.

The Manufacturing Permittee must establish standard operating procedures and batch record that comply with current good manufacturing practices and applicable State Law, including MAUCRSA.

Condition of Approval No. 12 – Labeling and Packaging.
a) All Cannabis Products produced by a Manufacturing Permittee must be packaged in child resistant containers prior to leaving the Premises for such Manufacturing Permittee in accordance with applicable State Law, including MAUCRSA.
b) All Cannabis Products produced by a Manufacturing Permittee must be labeled in compliance with applicable State Law, including MAUCRSA. c) Labeling Requirements – Edibles

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i. Before a Manufacturing Permittee prepares any edible Cannabis or edible Cannabis Product for retail sale, it shall be labeled and placed in tamperevident packaging which at least meets the requirements of State Law, including, but not limited to, MAUCRSA.
ii. All items to be sold or distributed shall be individually wrapped at the original point of preparation by the Cannabis Permittee. iii. Labeling must include a warning if nuts or other known allergens are used, and must include the total weight (in ounces or grams) of Cannabis in the package, not to exceed ten (10) milligrams of tetrahydrocannabinol (THC) per serving.
iv. A warning that the item is a medication and not a food must be clearly legible on the front of the package and/or must comply with state packing requirements.
v. The package must have a label warning that the product is to be kept away from children.
vi. The label must also state that the product contains Cannabis and must specify the date of Manufacture and the Manufacture Permittee’s information, including, but not limited to, address, and phone number. vii. Distribution must be in a properly labeled opaque package when distributed.
viii.The City Manager, or designee, may impose additional packaging and labeling requirements on Cannabis or Cannabis Products.

Condition of Approval No. 13 – Use of Solvents.
a) Manufacturing Permittees may conduct Manufacturing using any type of solvents, including Volatile Solvents, or Manufacturing processes if such Manufacturing complies with the requirements of this Chapter and State or local law, including but not limited to Health and Safety Code Section 11362.775 (or any successive State Law) all applicable fire and building codes in the City and any other laws of the City designed to ensure the safety of such operation. b) Manufacturing Permittees using Volatile Solvents for Manufacturing Cannabis Products must operate in a manner to reduce the risk of explosion or danger to public health, including through the use of a close-loop or solvent dispersion system consistent with the requirements of Health and Safety Code Section 11362.775 (or any successive State Law).

Condition of Approval No. 14 – Use of Hazardous and Flammable Materials.

If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in California Fire Code Section 202, are to be used in the processing of commercial Cannabis, then the provisions of California Fire Code Section 407 shall be applicable where hazardous materials are subject to permits under California Fire Code Section 50

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(Hazardous Materials) are located on the Premises or where required by the applicable building or fire official.

Timing: Prior to the issuance of a Temporary/Certificate of Occupancy, the Permittee must obtain LA County Fire Approval for site design, water and access, and hazardous materials.

Condition of Approval No. 15 – Compressed Gases.

Storage, use, and handling of compressed gases in compressed gas containers, cylinders, tanks, and systems shall comply with California Fire Code Chapter 53.

Partially full compressed gas containers, cylinders, or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with California Fire Code Chapter 50 for general requirements and California Fire Code Chapter 53 addressing specific hazards, including California Fire Code Chapter 58 (Flammable Gases), California Fire Code Chapter 60 (Highly Toxic and Toxic Materials), California Fire Code Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids, and California Fire Code Chapter 64 (Pyrophoric Materials). Prevention, control, and mitigation of dangerous conditions related to storage, use, dispensing, mixing, and handling of flammable and combustible liquids shall be in accordance with California Fire Code Chapters 50 and

57. Timing: Prior to the issuance of a Temporary/Certificate of Occupancy, the Permittee must obtain LA County Fire Approval for site design, water and access, and hazardous materials.

OTHER OPERTIONAL CONDITIONS
PURPOSE: To ensure compliance with all applicable City, State and other regulatory agency requirements.

Condition of Approval No. 16 – Final Floor Plan Approval Permittee must submit to and obtain approval from the City Manager, or his designee, on all proposed Final Floor Plans. All Final Floor Plans shall be stamped and dated by the Planning Department. Changes to the floor plan design or other elements (including, but not limited to security, fire or hazmat details) require administrative approval by the Planning Department, prior to any construction activity or Building Permit Issuance.

Timing: Prior to Zoning Clearance for Use Inauguration, Permittee shall prepare and submit a Final Floor Plan which demonstrates compliance with all City and State Commercial Cannabis regulations.

Condition of Approval No. 17 – Payment of Development Agreement Fees

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Operator(s) must pay all required DA fees in accordance with DA terms. Failure to pay fees, as assessed by the City Manager, will constitute a breach of the DA and may result in suspension or immediate revocation of the DA.

Condition of Approval No. 18 – Additional Plans and Approvals Purpose: To ensure all Commercial Cannabis facilities meet the development standards of the zoning code, policies, goals and programs of the general plan and City economic development activities—including City beautification and future public improvement projects.
i. Landscape Plan – The Operator must submit a landscaping plan, designed by a licensed landscape architect or arborist. The plan must include a five-foot landscaped dedication measured from the property line, as illustrated on the approved Site Plan. The plan must include drought tolerant desert plants, approved by the City.
ii. Fencing Plan – Fencing must be provided along the front perimeter of all Commercial Cannabis facilities. Fencing may be constructed between 8 feet and 10 feet in the front and up to 15 feet in the back.

Materials: Corrugated metal, wrought iron, concrete and block wall are all allowed materials. Alternative materials may be allowed with City approval. Chain-link and razor wire are strictly prohibited. Fences may be required to be constructed 5 feet from the property line to allow for future City improvements. All fencing plans must be submitted to and approved by the City prior to construction.
iii. Façade Improvement Plan - All new Commercial Cannabis facilities must submit a Façade Improvement Plan for City approval. The plan must include new paint, siding or other building improvement materials, in a color scheme approved by the City. Plans must also include new paving, as needed, parking striping, and other site improvements, as determined by the City.
iv. LA County Public Health Permit – The Operator must submit obtain a Cannabis Public Health Permit from the Los Angeles County Public Health.
v. City Business License – All operators must file for a City business license to conduct business within the City, pay all required business license fees and obtain a City Business License prior to conducting sales transactions in the City.

Condition of Approval No. 19 – Site Maintenance
PURPOSE: To ensure that the Project site is maintained in a neat and orderly manner so as not to create any hazardous conditions or unsightly conditions which are visible from outside of the Project site.

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The Permittee shall maintain the Project site in a neat and orderly manner, and in compliance with the Project description. Only equipment and/or materials which the City Manager, or his designee, determines to substantially comply with the Project description shall be stored within the Project site during the life of the Project.

The Permittee shall maintain the Project site in compliance with Condition No. 1 and the approved plans for the Project.

Monitoring and Reporting: The City Building Inspector, City Cannabis Enforcement staff, or Planning Department staff have the authority to conduct periodic site inspections to ensure the Permittee’s ongoing compliance with this condition.

Condition of Approval No. 20 – Commercial Cannabis Permit (CCP) Modification Prior to undertaking any operational or construction-related activity which is not expressly described in these conditions, the Permittee shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of this CCP. The City Manager may, at his sole discretion, require the Permittee to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required.

Condition of Approval No. 21 - Construction Activities
Prior to any construction, the Permittee shall obtain a Zoning Clearance for construction from the Planning Division and a Building Permit from the Building and Safety Division.

Condition of Approval No. 22 - Acceptance of Conditions and Schedule of Enforcement Responses
The Permittee’s acceptance of this CCP and/or commencement of construction and/or operations under this CCP shall constitute the Permittee’s formal agreement to comply with all conditions of this CCP. Failure to abide by and comply with any condition of this CCP shall constitute grounds for enforcement action provided in the City Municipal Code which shall include, but is not limited to, the following:
a. Public reporting of violations to the Planning Commission and/or City Council; b. Suspension of the permitted land uses;
c. Modification of the CCP conditions listed herein;
d. Recordation of a “Notice of Noncompliance” on the deed to the subject property; e. The imposition of civil administrative penalties; and/or f. Revocation of this CUP.

The Permittee is responsible for being aware of and complying with the CCP conditions and all applicable federal, state, and local laws and regulations. In the event of any actual and direct conflict between these Conditions of Approval and the terms of the

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approved Development Agreement, the terms of the Development Agreement shall control and take precedence.

Condition of Approval No. 23. - Time Limits
A. Use inauguration: 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. Once the approval decision becomes effective, the Permittee must obtain a Zoning Clearance for Use Inauguration in order to initiate the land uses set forth herein. i. This CCP shall expire and become null and void if the Permittee fails to obtain a Zoning Clearance for use inauguration within 90 days – from the date the approval decision of this CCP becomes effective.

The City Manager may grant an extension of time to the Permittee in order to obtain the Zoning Clearance for use inauguration if the Permittee can demonstrate to the satisfaction of the City Manager that the Permittee has made a diligent effort to implement the Project, and the Permittee has requested the time extension in writing at least 30 days prior to 90-day expiration date.
ii. Within 90 days of the permit effective date, as specified on the project approval letter, the Permittee must complete construction of Phase I (if applicable), as indicated on the approved Final Floor plan and obtain a Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time to the Permittee, if the Permittee can demonstrate to the satisfaction of the City Manager that the Permittee has made a diligent effort to implement the Project iii. Within 180 of the permit effective date, the Permittee must complete all Tenant Improvements and construction as indicated on the approved Final Floor Plan and obtain a Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time to the Permittee, if the Permittee can demonstrate to the satisfaction of the City Manager that the Permittee has made a diligent effort to implement the Project.
iv. Prior to the issuance of the Zoning Clearance for construction or use inauguration, all fees and charges billed to that date by the City, as well as any fines, penalties, and sureties, must be paid in full. After issuance of the Zoning Clearance for Use Inauguration, any final billed processing fees must be paid within 30 days of the billing date or the City may revoke this CCP.

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B Permit Life or Operations Period: This CCP will expire on September 17, 2028. However, the Development Agreement contains terms and conditions for extending operations for an additional 10 years. The lack of additional notification of the expiration date provided by the City to the Permittee shall not constitute grounds to continue the uses that are authorized by this CCP after the CCP expiration date. The uses authorized by this CCP may continue after the CCP expiration date if:
(1) The Permittee has filed a permit modification application 90 day prior to September 17, 2028; and
(2) The City decision-maker grants the requested modification.

The uses authorized by this CCP may continue during processing of a timely-filed modification application, at the City Managers sole discretion.

In the event of any actual and direct conflict between these Conditions of Approval and the terms of the approved Development Agreement, the terms of the Development Agreement shall control and take precedence. [end of conditions]

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ATTACHMENT M.

City Council Agenda
November 20, 2018

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AGENDA

A REGULAR MEETING

OF THE CUDAHY CITY COUNCIL
and JOINT MEETING of the
CITY OF CUDAHY AS SUCCESSOR AGENCY and HOUSING SUCCESSOR AGENCY

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, November 20, 2018 – 6:30 P.M.

Written materials distributed to the City Council within 72 hours of the City Council meeting shall be available for public inspection in the City Clerk’s Office at City Hall located at 5220 Santa Ana Street, Cudahy, CA 90201.

In compliance with the Americans with Disabilities Act (ADA) if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (323) 773-5143 at least 72 hours in advance of the meeting.

Rules of Decorum
“Members of the Public are advised that all PAGERS, CELLULAR TELEPHONES and any OTHER COMMUNICATION DEVICES are to be turned off upon entering the City Council Chambers.” If you need to have a discussion with someone in the audience, kindly step out into the lobby.

Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.

Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Physical or verbal altercations with other individuals in the meeting room; and • Going beyond the allotted two-minute public comment period granted.

When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior, and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room, and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.)

CLARA STREET PARK

TURNER HALL
4835 Clara Street
Cudahy, CA 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
Chris Garcia, Mayor
Christian Hernandez, Vice Mayor
Jose Gonzalez, Council Member
Cristian Markovich, Council Member
Baru Sanchez, Council Member

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It should also be noted that any person who WILLFULLY disturbs or breaks up the City Council meeting may be arrested for a misdemeanor offense. (Penal Code, § 403.)

1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Gonzalez
Council / Agency Member Markovich
Council / Agency Member Sanchez
Vice Mayor / Vice Chair Hernandez
Mayor / Chair Garcia

3. PLEDGE OF ALLEGIANCE

4. PRESENTATIONS

5. PUBLIC COMMENTS
(Each member of the public may submit one comment card if he or she wishes to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak for two (2) minutes concerning items under the City Council’s jurisdiction, including items on the agenda and closed session items.) (Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.))

6. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)
(This is the time for the City Council / Agency to comment on any topics related to “City Business,” including announcements, reflections on city / regional events, response to public comments, suggested discussion topics for future council meetings, general concerns about particular city matters, questions to the staff, and directives to the staff (subject to approval / consent of the City Council majority members present, regarding staff directives). Each Council / Agency Member will be allowed to speak for a period not to exceed three (3) minutes. Notwithstanding the foregoing, the City Council Members shall not use this comment period for serial discussions or debate between members on City business matters not properly agendized. The City Attorney shall be responsible for regulating this aspect of the proceeding.)

7. CITY MANAGER REPORT (information only)

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8. REPORTS REGARDING AD HOC, ADVISORY, STANDING, OR OTHER COMMITTEE

MEETINGS

9. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

10. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion. There will be no separate discussion of these items unless a Council / Agency Member so requests, in which event the item will be removed from the Consent Calendar and considered separately.) A. Approval of the Local Agency Investment Fund (LAIF) for the Month of September 2018 (page 9) Presented by Finance Director
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of September 2018 in the amount of $4,853,141.21.

B. Approval of the City Demands and Payroll Including Cash and Investment Report for the Month of September 2018 (page 13)
Presented by Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,262,626.36 including Cash and Investment Report by Fund for the month of September 2018.

C. Consideration to Adopt a Resolution No. 18-50, approving the City of Cudahy’s Natural Hazard Mitigation Plan (NHMP) (page 31)
Presented by City Manager
Recommendation: The City Council is requested to adopt a Resolution No. 18-50, approving the City of Cudahy’s NHMP.

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D. Adoption of a Proposed Resolution No. 18-51 Repealing and Superseding Resolution No. 18-27 for Employer Paid Member Contributions (EPMC) for Employees (page 409) Presented by City Manager
Recommendation: The City Council is requested to adopt a proposed amended Resolution No. 18-51 that repeals and supersedes Resolution No. 18-27 for Employer Paid Member Contributions (EPMC) for City employees.

E. Consideration to Review and Approve the Draft Minutes of November 6, 2018, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 415) Deputy City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Agency Draft Minutes for November 6, 2018.

F. Adoption of Ordinance No. 696, by Second Reading Approving Development Agreement (DA) No. DA18-002C (Location: 4311 Santa Ana Street, Applicant: 420 Realty, LLC) (page 425) Presented by Interim Community Development Manager
Recommendation: The City Council is requested to:

1. Authorize the City Manager to allow a payment plan, if requested, for the Community Benefit Program as outlined in the Development Agreement (DA);

2. Allow the City Manager to select the alternative terms of payment of the Operating Fees, if requested, to begin accruing 90 days after the Effective Date of the DA rather than accrue beginning the month of the Effective Date of the DA;

3. Provide direction to City staff on whether to modify or not modify the DA to bind the operator to any future Cannabis Tax that may be imposed by the City and/or by a voter approved Cannabis Tax;

4. Approve DA No. DA18-002C publicly noticed November 6, 2018 City Council meeting and authorize the Mayor to execute said Agreements on behalf of the City; and

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5. Adopt Ordinance No. 696 by Second Reading by title only, approving the DA by and between the City and 420 Realty, LLC.

G. Adoption of Ordinance No. 697, by Second Reading Approving Development Agreement (DA) No. DA18-011C (Location: 8210 Atlantic Avenue Applicant: Aqua Tergere, LLC) (page 551) Presented by Interim Community Development Manager
Recommendation: The City Council is requested to:

1. Authorize the City Manager to allow a payment plan, if requested, for the Community Benefit Program as outlined in the Development Agreement (DA);

3. Provide direction to City staff on whether to modify or not modify the DA to bind the operator to any future Cannabis Tax that may be imposed by the City and/or by a voter approved Cannabis Tax;

4. Approve DA No. DA18-011C publicly noticed November 6, 2018 City Council meeting and authorize the Mayor to execute said Agreements on behalf of the City; and

5. Adopt Ordinance No. 697 by Second Reading by title only, approving the DA by and between the City and Aqua Tergere, LLC.

H. Consideration to Approve the First Amendment to a Communications Site Lease Agreement TMobile West Tower LLC (page 661) Presented by Interim Community Development Manager
Recommendation: The City Council is requested to approve the First Amendment to the Communications Site Lease Agreement with T-Mobile West Tower LLC.

I. Addendum to California Cities for Self-Reliance Joint Powers Authority (JPA) Agreement to Admit the City of Gardena as a Trade Member (page 717)
Presented by City Manager

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Recommendation: The City Council is requested to approve an addendum to California Cities for Self-Reliance Joint Powers Authority (JPA) Agreement to reinstate the City of Gardena as a Trade Member.

11. PUBLIC HEARING - NONE

12. BUSINESS SESSION
A. Appointment of City representative to the Greater Los Angeles County Vector Control District Board of Trustees (page 725)
Presented by Deputy City Clerk
Recommendation: The City Council is requested to appoint a representative to the Board of Trustees of the Greater Los Angeles County Vector Control District.Contributions (EPMC) for City employees.

B. Discuss From Lot to Spot’s request to maintain the potential parklet which will be located across from Park Avenue Elementary School.

Presented by City Manager
Recommendation: The City Council is requested to receive a presentation by “From Lot to Spot” and discuss and/or provide direction in regards to the proposed parklet.

13. COUNCIL DISCUSSION – NONE

RECESS TO CLOSED SESSION
This is the time at which the City Council will meet in Closed Session to go over items of business on the closed session agenda.

14. CLOSED SESSION

CUDAHY SUCCESSOR AGENCY CLOSED SESSION ITEM
Closed Session Pursuant to Government Code Section 54956.9(d)(4) – Conference with Legal Counsel to discuss facts and circumstances that may form the basis of initiating litigation on behalf of the Successor Agency and/or City – [One (1) Matter]

RECONVENE TO OPEN SESSION

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ATTACHMENT N.

City Council Minutes
November 20, 2018

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MINUTES
CUDAHY CITY COUNCIL REGUAR MEETING and
CITY OF CUDAHY AS SUCCESSOR AGENCY and

HOUSING SUCCESSOR AGENCY TO THE CUDAHY
DEVELOPMENT COMMISSION JOINT MEET!NG
November 20,2018 6:30 P.M.

1. CALLTOORDER
Mayor / Chair Garcia called the meeting to order at 6:32 p.m.

2. ROLLCALL
PRESENT: Council/ Agency Member Gonzalez (arrived at6:32 p.m. after roll call) Council/ Agency Member Markovich
Vice Mayor / Vice Chair Hernandez
Mayor / Chair Garcia
ABSENT: Council / Agency Member Sanchez
ALSO PRESENT: City Manager Jose E. Pulido, City Attorney, Richard Padilla, Deputy Attorney Martin de los Angeles, Deputy City Clerk Richard lglesias, and Administrative Aide, Andres Rangel.

3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Markovich.

4. PRESENTATIONS - NONE

5. PUBLIC COMMENTS
Susie de Santiaqo, asked City Councilto provide support needed for item 128.

MAYOR GARCIA DIRECTED TO MOVE CITY COUNCIL COMMENTS TO THE END OF THE

MEETING AGENDA WITH NO OPPOSITION

6. CITY COUNCIL COMMENTS . NONE

7. CITY MANAGER REPORT (information only)

8. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER COMMITTEE MEETINGS. NONE

9. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

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Motion: lt was moved by Vice Mayor Hernandez, and seconded by Mayor Garcia to waive full text reading of all Resolutions and Ordinances by single motion.

10. CONSENT CALENDAR (ltems 10A through 101)
CITY ATTORNEY REQUESTED TO PULL ITEM 1OH
A. Approval of the Local Agency lnvestment Fund (LAIF)for the Month of September 2018 Presented by the Finance Director
The City Council is requested to approve the Local Agency lnvestment Fund (LAIF) Report for the month of September 2018 in the amount of $4,853,1 41.21.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to approve the Local Agency lnvestment Fund (LAIF) Report for the month of September 2018 in the amount of $4,853 ,141.21. The motion carried (4-0-1) by the following roll call vote.

AYES: Gonzalez, Markovich, Hernandez, and Garcia NOES: None ABSENT: Sanchez
ABSTAIN: None
B. Approval of the City Demands and Payroll lncluding Cash and lnvestment Report for the Month of September 2018
Presented by the Finance Director
The City Council is requested to approve the Demands and Payroll in the amount of $1,262,626.36 including Cash and lnvestment Report by Fund for the month of September 2018.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to approve the Demands and Payroll in the amount of $1,262,626.36 including Cash and lnvestment Report by Fund for the month of September 2018. The motion carried (4-0-1) by the following roll call vote.

AYES: Gonzalez, lVarkovich, Hernandez, and Garcia NOES: None ABSENT: Sanchez
ABSTAIN: None
C. Consideration to Adopt a Resolution No. 18-50, approving the City of Cudahy's Natural Hazard Mitigation Plan (NHMP)
Presented by the City Manager
The City Council is requested to adopt a Resolution No. 1B-50, approving the City of Cudahy's NHMP.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to adopt a Resolution No. 18-50, approving the City of Cudahy's NHMP. The motion carried (4- 0-1) by the following roll call vote.

City Council/$uccessor Agencv lv'linules crl 1 '1120i 18

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AYES: Gonzalez, Markovich, Hernandez, and Garcia NOES: None ABSENT: Sanchez
ABSTAIN: None
D. Adoption of a Proposed Resolution No. 18-51 Repealing and Superseding Resolution No. 18-27 for Employer Paid Member Contributions (EPMC) for Employees Presented by the City Manager
The City Council is requested to adopt a proposed amended Resolution No. 18-51 that repeals and supersedes Resolution No. 18-27 for Employer Paid Member Contributions (EPMC) for City employees.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to adopt a proposed amended Resolution No. 18-51 that repeals and supersedes Resolution No. 1B-27 for Employer Paid Member Contributions (EPMC) for City employees. The motion carried (4-0-1) by the following roll call vote.

AYES: Gonzalez, Markovich, Hernandez, and Garcia
NOES: None
ABSENT: Sanchez
ABSTAIN: None
E. Consideration to Review and Approve the Draft Minutes of November 6, 2018, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Presented by the Deputy City Clerk
The City Council is requested to review and approve the City Council / Agency Draft Minutes for November 6, 2018.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to review and approve the City Council / Agency Draft Minutes for November 6, 2018. The motion carried (4-0-1) by the following roll call vote.

AYES: Gonzalez, Markovich, Hernandez, and Garcia
NOES: None
ABSENT: Sanchez
ABSTAIN: None
F. Adoption of Ordinance No. 696, by Second Reading Approving Development Agreement (DA) No. DA18-002C (Location: 4311 Santa Ana Street, Applicant: 420 Realty, LLC) Presented by the lnterim Community Development Manager
The City Council is requested to:

1. Authorize the City Manager to allow a payment plan, if requested, for the Community Benefit Program as outlined in the Development Agreement

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(DA);

3. Provide direction to City staff on whether to modify or not modify the DA to bind the operator to any future Cannabis Tax that may be imposed by the City and/or by a voter approved Cannabis Tax;

4. Approve DA No. DA18-002C publicly noticed November 6,2018 City Council meeting and authorize the Mayor to execute said Agreements on behalf of the City; and

5. Adopt Ordinance No. 696 by Second Reading by title only, approving the DA by and between the City and 420 Realty, LLC.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to Adopt of Ordinance No. 696, by Second Reading Approving Development Agreement (DA) No. DA18-002C (Location: 4311 Santa Ana Street, Applicant: 420 Realty, LLC). The motion carried (4-0-1) by the following roll call vote.

AYES: Gonzalez, Markovich, Hernandez, and Garcia
NOES: None
ABSENT: Sanchez
ABSTAIN: None
G. Adoption of Ordinance No. 697, by Second Reading Approving Development Agreement (DA) No. DA18-011C (Location: 8210 Atlantic Avenue Applicant: Aqua Tergere, LLC) Presented by the lnterim Community Development Manager
The City Council is requested to:

1. Authorize the City Manager to allow a payment plan, if requested, for the Community Benefit Program as outlined in the Development Agreement (DA);

3. Provide direction to City staff on whether to modify or not modify the DA to bind the operator to any future Cannabis Tax that may be imposed by the City and/or by a voter approved Cannabis Tax;

4. Approve DA No. DA1B-O11C publicly noticed November 6,2018 City Council meeting and authorize the Mayor to execute said Agreements on behalf of the City; and
City Council/Successr:r Agenr;y lr,{inutes rtl 11,20'18 Page 4 ol 7

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5. Adopt Ordinance No. 697 by Second Reading by title only, approving the DA by and between the City and Aqua Tergere, LLC.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to adopt Ordinance No. 697, by Second Reading Approving Development Agreement (DA) No.

DA18-011C (Location: 8210 Atlantic Avenue Applicant: Aqua Tergere, LLC). The motion carried (4-0-1) by the following roll call vote.

AYES: Gonzalez, Markovich, Hernandez, and Garcia NOES: None ABSENT: Sanchez
ABSTAIN: None
H. Consideration to Approve the First Amendment to a Communications Site Lease Agreement T-Mobile West Tower LLC
Presented by the lnterim Community Development Manager
The City Council is requested to approve the First Amendment to the Communications Site Lease Agreement with T-Mobile West Tower LLC.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to table this item to the next meeting.
l. Addendum to California Cities for Self-Reliance Joint Powers Authority (JPA) Agreement to Admit the City of Gardena as a Trade Member
Presented by the City Manager
The City Council is requested to approve an addendum to California Cities for Self-Reliance Joint Powers Authority (JPA) Agreement to reinstate the City of Gardena as a Trade Member.

Motion: lt was moved by Council Member Markovich, and seconded by Vice Mayor Hernandez to approve an addendum to California Cities for Self-Reliance Joint Powers Authority (JPA) Agreement to reinstate the City of Gardena as a Trade Member. The motion carried (a-0-1) by the following roll call vote.

AYES: Gonzalez, Markovich, Hernandez, and Garcia
NOES: None
ABSENT: Sanchez
ABSTAIN: None
,11. PUBLIC HEARING. NONE

12. BUSINESS SESSION
A. Appointment of City representative to the Greater Los Angeles County Vector Control District Board of Trustees
Presented by the Deputy City Clerk
The City Council is requested to appoint a representative to the Board of Trustees of the Greater Los Angeles County Vector Control District Contributions (EPMC) for City employees, City Councill$uccessor Agency Minuies a{ 11120t18

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Motion: lt was moved to table this item to this next Council Meeting B. Discuss From Lot to Spot's request to maintain the potential parklet which will be located across from Park Avenue Elementary School.

Presented by the City Manager
The City Council is requested to receive a presentation by "From Lot to Spot" and discuss and/or provide direction in regards to the proposed parklet.

Motion: City Council received presentation, and directed staff to go over all options possible, and bring back item at a later Council meeting.

13. COUNCIL DISCUSSION - NONE

RECESS TO CLOSED SESSION
City Attorney, Richard Padilla recessed the meeting to close session at 7:11 p.m.

14. CLOSED SESSION

CUDAHY SUCCESSOR AGENCY CLOSED SESSION ITEM
Closed Session Pursuant to Government Code Section 54956.9(d)(4) - Conference with Legal Counsel to discuss facts and circumstances that may form the basis of initiating litigation on behalf of the Successor Agency and/or City - [One (1) Matter]

RECONVENE TO OPEN SESSION
City Attorney Richard Padilla reconvened the Regular Meeting in Open Session al7:23 p.m.

15. CLOSED SESSION ANNOUNCEMENT
City Attorney Richard Padilla announced that with respect to item 14, direction was given, but no final action was taken.

16. ADJOURNMENT
The City Council / Agency meeting was adjourned at 7:24 p.m Chris
City Council/Successor Agency Minutes o{ 11120118 Page 6 cl 7 Mayor

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ATTEST
Richard I AS
Deputy City
City Council/Successor Agency Mint.rtes <:f 11124118 Parge 7 ol 7

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ATTACHMENT O.

City Council Staff Report
November 20, 2018

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STAFF REPORT
Date: November 20, 2018
To: Honorable Mayor/Chair and City Council/Agency Members From: Jose E. Pulido, City Manager/Executive Director
By: Ebony J. McGee Andersen, Economic Development Principal Planner Salvador Lopez Jr., Interim Community Development Manager Subject: Adoption of Ordinance No. 697, by Second Reading Approving Development Agreement (DA) No. DA18-011C (Location: 8210 Atlantic Avenue Applicant:

Aqua Tergere, LLC)

RECOMMENDATION
The City Council is requested to:

1. Authorize the City Manager to allow a payment plan, if requested, for the Community Benefit Program as outlined in the Development Agreement (DA);

3. Provide direction to City staff on whether to modify or not modify the DA to bind the operator to any future Cannabis Tax that may be imposed by the City and/or by a voter approved Cannabis Tax;

4. Approve DA No. DA18-011C publicly noticed November 6, 2018 City Council meeting and authorize the Mayor to execute said Agreements on behalf of the City; and

5. Adopt Ordinance No. 697 by Second Reading by title only, approving the DA by and between the City and Aqua Tergere, LLC.

Item Number
10G

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BACKGROUND

1. In 1996, the California Legislature approved Proposition 215, also known as the Compassionate Use Act (the “CUA”), which was codified under Health and Safety Code Section 11262.5 et sec. and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and where recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes.”

2. In 2004, the California Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code, § 11362.7 et seq.) (the “MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances.

The Federal Controlled Substances Act (21 U.S. C., § 801 et seq.) makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute, or dispense marijuana. Despite such federal prohibition, on August 29, 2013, the United States Department of Justice issued a memorandum (the “Cole Memo”) stating that, notwithstanding the federal classification of marijuana as a schedule 1 controlled substance, jurisdictions that have legalized marijuana in some form are less likely to be subject to federal enforcement under the Controlled Substances Act if they have implemented strong and effective regulatory and enforcement systems to follow eight guiding principles: (1) preventing the distribution of marijuana to minors; (2) preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; (3) preventing the diversion of marijuana from states where it is legal under state law in some form to other states; (4) preventing state authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (5) preventing violence and the use of firearms in the cultivation and distribution of marijuana; (6) preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; (7) preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and (8) preventing marijuana possession or use on federal property.

3. On February 1, 2012, California Governor Brown dissolved the redevelopment areas in cities statewide thereby negating $3 million annually in funds to the Cudahy Community

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Development Commission (CDC).

4. On July 12, 2014, the City Council held a Special Meeting to prepare a draft strategic plan (Attachment A) which among other things identified the need to establish an economic development plan, develop consistent revenue generators, implement a business retention program, and above all use these various tools to adopt a balanced budget.

5. On August 11, 2014, the City Council entered into an Employment Agreement with Jose E.

Pulido for the City Manager position.

6. On August 10, 2015, the City Council approved the addition of an Economic Development Ordinance No. 652 with the goal of providing the City with an economic development venue to implement its General and Strategic Plan.

7. In September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis.

8. On October 26, 2015, the City Council approved Ordinance No. 653 to amend the municipal code to provide investment and development opportunities in our depilated and underutilized industrial zones through a Development Agreement (DA).

9. On August 22, 2016, the City Council adopted Interim Urgency Ordinance No. 656U to establish a temporary moratorium on medical “commercial cannabis activities,” as defined under the MMRSA, for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 661, on September 26, 2016.

The MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”) under Senate Bill 837 in June 2016, which also included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees.

10. On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a).).

Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants.

11. On November 14, 2016, the City Council adopted Urgency Ordinance No. 663 to prohibit outdoor personal marijuana cultivation and establish regulations and a permitting process

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for indoor personal marijuana cultivation.

AUMA also created a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products.

12. On January 9, 2017, Interim Urgency Ordinance No. 666 was adopted by the City Council to establish a temporary moratorium on nonmedical “commercial cannabis activities” for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 667, on February 27, 2017.

13. On June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau of Cannabis Control. MAUCRSA refers to medical cannabis as “medicinal cannabis” and nonmedical/recreational cannabis as “adult-use cannabis.”

14. On June 27, 2017, as part of an Economic Development Ad Hoc Committee presentation on City Council opportunities, commercial cannabis regulations and strategies were discussed by the City Council. Based upon such discussion and direction from the City Council, the City sought to establish an overlay zone in the City in which certain medicinalonly commercial cannabis activities could be conducted in accordance with MAUCRSA and the City’s police power under Section 7 of Article XI of the California Constitution.

15. On July 31, 2017, the Cudahy Planning Commission adopted Planning Commission Resolution No. 17-03, which: (1) found that the proposed Ordinance No. 673 is consistent with the General Plan and compliant with CEQA; and (2) recommended City Council approval of the proposed Ordinance No. 673.

16. At its meeting of August 24, 2017, the City Council approved Ordinance No. 673 for First Reading.

17. On September 11, 2017, the City Council held a Second Reading of Ordinance No. 673.

18. On September 25, 2017, the City entered into Professional Services Agreements (PSA) with Vincent Sarmiento and Glenn Ward Calsada for cannabis legal counsel; MGO for technical consultation, economic projection and application screening and review; and emja Planning + Development, for policy development, permit processing, project management and on-going compliance enforcement services in connection with the City’s Cannabis Program.

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19. On September 21, 2017, an amendment to the City’s fee schedule, was approved and adopted by City Council.

20. On December 4, 2017, the Commercial Cannabis Permit applications were initially due to the City, after a 45-day application period. However, due to technical difficulties with the online application program, the City Manager extended the application submission deadline to December 15, 2017.

21. On December 15, 2017, the City received 41 applications for commercial cannabis license types were received by the City, including those for cultivation, manufacturing, retail delivery, distribution and testing.

22. By February 1, 2018, the City received reimbursement agreements from applicants to ensure all staff and consultant time, including permit processing, monitoring and compliance costs, will be reimbursed to the City by the applicant.

23. On March 20, 2018, the City Council approved a General Plan Update (General Plan 2040) which established new Zoning Districts.

24. On July 17, 2018, The City Council adopted the Zoning Code Amendment which formally established the new zoning districts and uses therein. As a result, the existing Commercial Manufacturing (CM) zone became a Light Industrial (LI) Subdistrict, which is consistent with the General Plan Land Use Designation.

25. To date, the City has processed 14 Development Agreements and 7 Commercial Cannabis Permits applications submitted by applicants, in accordance with City Ordinance No. 673.

26. On September 7, 2018, the Planning Department and City Clerk’s Office provided public notice regarding to the Planning Commission hearing on this matter in accordance with the requirements of Government Code §65091 and the City Municipal Code. The Planning Division mailed notices to all owners of property within 300 feet of the project site and placed a legal ad in the Press Telegram.

27. On September 17, 2018, at a duly noticed public hearing, the Planning Commission considered an application for Commercial Cannabis Permit (“CCP”), [CCP18-0011], and Development Agreement (“DA”) [DA18-011C], respectively, submitted by Aqua Tergere, LLC ("Applicant"). A staff presentation was made, and public testimony was heard. A summary of the hearing (Attachment B) has been prepared and is now part of the permanent file of the case.

By majority vote of the members present, the Planning Commission decided not to recommend CCP18-011 and DA18-011C to the City Council.

28. On October 1, 2018, the Applicants herein submitted their written Notice of Appeal (Attachment A) to the Clerk of the Council, pursuant to Section 20.84.160 of the Cudahy

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Zoning Code. The Applicants/Appellants claim the Planning Commission “failed to articulate findings and provide supporting evidence identifying specifics in the record that are the reason for the denial.”
The Appeal of the denial of the CCP, having been timely filed, accompanied by the required processing fee, and reciting the grounds for appeal of the determination, is now properly before the City Council for de novo consideration. As a result, the City Council has the authority to reverse, modify, or affirm the underlying Planning Commission decision in whole or in part based on the evidence presented.

Notwithstanding the Planning Commission's recommendation of disapproval of the DA, the City Council may approve the DA provided that the DA meets the minimum requirements under state law for approval by ordinance and the City Council finds that its provisions are consistent with the general plan (as amended) and any applicable zoning or specific plans. Cudahy Municipal Code Section 20.84.580. The City Council may also disapprove the DA or condition its approval on any other terms, conditions and requirements that the City Council deems proper. Cudahy Municipal Code Section

20.84.570

29. On November 6, 2018, the City Council overturned the Planning Commission’s denial of Commercial Cannabis Permit (CCP) No. CCP18-0011 and Ordinance No. 697, and adopted Resolution No. 18-49, approving Commercial Cannabis Permit No. CCP18-0011, and introduced Ordinance No. 697 for First Reading by title only, approving the DA No. DA18- 011C by and between the City and Aqua Tergere, LLC.

ANALYSIS
Approximately four years ago, the City Council identified a growing number of vacant and dilapidated warehouses within the City. These vacancies created a blighted condition in the City’s industrial areas. With the decline in local and national manufacturing industry, businesses once operating successfully, closed and left the City, causing employment opportunities and sales tax dollars to drastically decrease. Because of these circumstances, the City Council worked to create new economic development tools for the City, including the establishment of a new economic development chapter to the City’s municipal code (Ordinance 6530). The new chapter outlined economic development tool such Development Agreements to take advantage of emerging business trends. Last month, the City Council adopted the City’s 2040 General Plan update to address outdated land-use policies. These additions will help further the City’s economic development goals and policies.

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To implement the City Council’s and community’s goals to address underperforming, blighted areas in the City, the Council formed an Economic Development Ad hoc Committee. The primary task of the ad hoc committee was to research economic opportunities for the underperforming areas and buildings within the City. The ad hoc committed looked to introduce new industries that would generate revenue for the City and create sustainable employment opportunities for Cudahy residents. The committee also wanted to ensure underutilized or abandoned industrial areas were developed into a vibrant hub of entrepreneurial activity. Consistent with these objectives, approximately two years ago, the City Council identified Commercial Cannabis as an emerging industry suitable for the industrial areas and vacant warehouse spaces. After a thorough analysis of the industry and business opportunities the industry could bring, the City Council directed the City Manager to assemble and retain a consulting team to assist with the implementation of a regulatory framework for allowing commercial cannabis activities in the City. Under the direction of the City Manager, the consulting team developed an application process, permit eligibility criteria, development standards, development agreement terms and conditions. In consultation with the applicants and City Manager, the consulting team negotiated the operational fees and community benefit program fees stipulated within the development agreements. In addition to the potential new City revenues resulting from operational fees (based on gross receipts), a Community Benefit Program fund is expected to help the City fund projects such as new parks, capital improvement projects, youth recreation programs, and holiday and special community events.

Pursuant to the City Council’s direction to the City Manager, and the State of California’s December 31, 2017 deadline to issue Cannabis-related business licenses, City staff and the consultant team prepared a procurement process to consider applicants prior to the State of California deadline. A total of 21 applicants submitted application materials for 41 licenses by the deadline. During the past four months, City staff and the consultant team have diligently worked to ensure the project is complete, as stipulated by the City’s Development Agreement Ordinance No. 653 and Commercial Cannabis Ordinance No. 673. Staff has determined the project is completed and meets the requirements necessary for the City Council to consider and make a recommendation to the City Council. The project will be heard and considered by the City Council on November 6, 2018 and was publicly noticed on October 26, 2018 in the Press Telegram.

PROJECT SITE LOCATION AND ASSESSOR’S PARCEL NUMBER
The project site is located at 8210 Atlantic Avenue. The Tax Assessor’s Parcel Number (APN) is 6224-023-020.

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Figure 1.1 - Proposed Project Site
Project Description

The proposed project includes a Commercial Cannabis Permit, which is a type of conditional use permit, to allow for a Commercial Cannabis Facility and a Development Agreement (DA) for commercial cannabis activities including manufacturing within an existing, currently vacant, approximately 2,665 square foot industrial building. The site is currently developed with one commercial building and two modular buildings. The existing modular buildings will be removed prior to the commencement of any on-site activities or improvements. The proposed project will be built in one phase and includes the following commercial cannabis activities:
• Manufacturing: The manufacturing area consists of a 240 square foot prefabricated class1/division1 FlexMod extraction room that will house state of the art closed-loop extraction systems; a 356 square foot room where minor post extraction manipulations will occur (ie. Decarboxylation degassing, and drying), a 488 square foot post-process room that meets class1/division2 safety standards that will house processing and evaporation equipment; a 266 square foot storage and transfer room that will hold both intake and outtake manifests as well as storage of fresh plant material; an 80 square foot product storage vault where bulk and packaged product will be stored; and a 360 square foot packaging and labeling room containing boxes, glass jars, and child-proof packaging of extraction products. The facility also includes 106 square feet of restrooms where employee’s can change into proper work attire and utilize the facilities. The

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proposed facility includes a total of 1,084 (240 C1D1, 356 pre process, 488 post process) square feet of production space and 2,665 square feet of total premises space. • General Business Offices: The facility will be open from 8 a.m. to 8 p.m., Monday through Friday, with up to eight (8) employees at the highest running shit.

Parking/Loading/Access: The proposed project provides 15 parking spaces, including 1 accessible van spaces. Loading will take place on-site. Vehicular access to the site will be through an existing driveway on Atlantic Avenue. Within the site, access to the structures will be through the secured front office entrance. The project complies with the CAL Green Tier 1 by incorporating stormwater pollution prevention measures, installing energy- and waterefficient equipment, and planting native and drought-tolerant landscaping at the front of the property.

Security: The project will secure the facility against unauthorized entry by installing security lights on the exterior of the building to illuminate the side yards and parking area, installing commercial-grade locks, installing an alarm and video surveillance system, establishing procedures for identifying authorized persons, establish inventory controls, and install a secure surveillance vault to maintain the integrity of records. In addition, the applicant will engage a licensed security company to provide an operational security plan in compliance with Ordinance 673.

Aqua Tergere, LLC will employ approximately 10 employees. As a term of the Development Agreement with the City, the facility must offer 50% of the employment opportunities to City residents. This will result in at least five (5) jobs in the City. Currently, the site offers no employment opportunities to residents or otherwise, as the facility is vacant. The existing industrial building is located on a 35,140 square foot lot, which is unmaintained with no landscaping. With the façade and site improvements proposed by the applicant, the site would include a new security fence with lighting, 24-hour security cameras, new landscaping, various tenant improvements, and parking lot upgrades. All development will be consistent with the City’s proposed design and landscaping guidelines.

Aqua Tergere, LLC has agreed to provide living wages, full-time employment, and medical benefits to their employees, as a term of their development agreement with the City. In addition to employment and other economic opportunities, Aqua Tergere, LLC would further the City’s beautification efforts by providing on-site improvements, extensive landscaping, and enhance the security measures to the facility. Aqua Tergere, LLC has demonstrated to the City that they are an exemplary corporate partner and would be dedicated to meeting the goals of the City and community.

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Commercial Cannabis Permit (CCP) and License Types
Pursuant to the Cudahy Municipal Code (CMC) Chapter 20.120.030 (Ordinance No. 673), all Commercial Cannabis activities, except retail dispensaries, shall be allowed within the Urban Agriculture Overlay Zone with a Development Agreement adopted in accordance with accordance with the Development Agreement Law (Government Code Section 65864 et. Seq.) and CMC Chapter 20.28 (Development Agreements). The City shall issue Commercial Cannabis Permits (CCP) as defined in Chapter 5.20.020(c). Cannabis permits may authorize Commercial Cannabis Activity, including, but not limited to, Cannabis Cultivation, Manufacturing, Distribution, Retail Delivery, Microbusinesses and Testing. Commercial Cannabis activities may be conditionally permitted within the Urban Agriculture Overlay Zone.

Commercial Cannabis Permits are a distinct and unique Conditional Use Permit which can only be granted within the Urban Agriculture Overlay Zone and in accordance with applicable state law.

Each Commercial Cannabis Operator is required, by Ordinance 673, to have both a Commercial Cannabis Permit and a Development Agreement that authorizes the specific Commercial Cannabis activities. The development agreement establishes annual operating and Community Benefit Program (CBP) fees that would be paid by the Operator to the City, upon execution of the agreement. The proposed development agreements with all commercial cannabis operators require Operators to pay a monthly operating fee of $0.42 per square foot of the premises, as identified in each respective development agreement, until the owner is operating and selling products under the City and State regulatory permits.

Once operators are operating or generating income, the monthly operating fee would be the greater of $0.42 per square foot of production space or 1%-2% of gross receipts, based on the license type.

Table 2.1, below, summarizes the proposed operators and respective license types as well as the operating fees the City has assessed on each license type.

Table 2.1 Operator License Fees
Operator License Type Fee Assessment* Monthly
NonOperating SF
Fee ($0.42 x
premises sf)
CBP Fee
Aqua Manufacturing 2% of gross receipts when

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Tergere,
LLC
(DA18-
011C)
gross receipts exceed
$455.28, which
represents $0.42 per
square foot of the total
1,084 square feet of
production space.
$664.02 on
1,581 SF of
premises
space
$66,667.00
Total Fee
Assessment
$455.28 minimum $664.02 $66,667.00
*see Development Agreement for definition of production space and fee assessment details for each operation.

The proposed operation would generate a minimum of $455.28 ($5,463.36 annually) while operational and $664.02 monthly ($7,968.24 annually) revenue for the City in the event the facility does not become operational. The non-operational fee represents the cost to the operator to hold each license. However, once the facility is generating revenue, the City would receive 1%-2% of gross receipts, when gross receipts exceed the square foot rate for production space.

General Plan and Zoning
The proposed project is located within the Commercial Urban Agriculture Overlay Zone. The Commercial Urban Agriculture Overlay Zone is the only area within this City where Commercial Cannabis uses are allowed under the City Cannabis Ordinance No. 673. The zone allows for all commercial cannabis activities including, cultivation, manufacturing, distribution and retail delivery.

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Figure 3.1 – Zoning and General Plan Land Use Designations Table 3.1 below indicates existing Cudahy 2040 General Plan and Zoning Land Use Designations for the proposed project site and surrounding area.

Table 3.1 – Existing General Plan and Zoning Information (Exhibit 1) Surrounding
Site
Locations
Existing Land Use
General Plan
Designation
Zoning
Designation
Proposed
Project Site
Vacant Industrial
Building Entertainment (ENT)
Commercial
Manufacturing –
Urban Agriculture
Overlay Zone
North
Multi-Family
Residential
Entertainment (ENT)
and High Density
Residential (HDR)
High Density
Residential – Urban
Agriculture Overlay
Zone
South Commercial/Industrial Entertainment (ENT)
Commercial
Manufacturing –

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Buildings (Future
Commercial Cannabis
Uses)
Urban Agriculture
Overlay Zone
East
Commercial/Industrial
Buildings (Future
Commercial Cannabis
Uses)
Light Industrial (LI)
Commercial
Manufacturing –
Urban Agriculture
Overlay Zone
West
Commercial/Industrial
Buildings
Entertainment (ENT)
Community
Commercial – Urban
Agriculture Overlay
Zone
The project site is currently developed with one vacant building totaling 2,665 square feet and two modular buildings (to be removed). To the south, east and west of the project site are various commercial and manufacturing facilities. To the west of the project site is Venture Auto, Inc. and multi-family residence (originally a single-family resident converted into multiple units). To the north of the site is multi-family housing development and the County of Los Angeles Department Public Social Services (DPSS). The facilities to the south and west of the project site are zoned for Commercial Cannabis actives and one parcel southwest of the project site has a Commercial Cannabis Permit application pending review by the City.

Table 3.2 below indicates the proposed City of Cudahy General Plan and Zoning Land Use Designations for the proposed project site and surrounding area.

Table 3.2 – Proposed General Plan and Zoning Information Surrounding Site
Locations Proposed Land Use Proposed General Plan Designation Proposed Zoning
Designation
Proposed Project
Site
Commercial Cannabis
Facility
No change No change
North No applications pending No change No change
South Commercial Cannabis
Facilities
No change No change
East No applications pending No change No change
West No applications pending No change No change
The proposed project includes Commercial Cannabis manufacturing in an existing, currently vacant, building. There is no General Plan or Zoning Designation proposed for the project

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site. There are no proposed projects to the north or east of the project site at the current time. There is one Commercial Cannabis facility proposed for the property to the southwest of the project site.

Consistency with the Cudahy 2040 General Plan
The 2040 General Plan outlines several goals, policies and programs designed to guide development within the City and achieve the design goals expressed by the community during the General Plan Update process. The section below, identifies the applicable General Plan goals, policies and programs and demonstrates how the proposed project will comply with or meet the requirements.

1. Goal LU -1 (land use): Complete, integrated, and defined neighborhoods, corridors, and districts.
• Policy LUE 1.1: Develop, maintain, and enhance the beneficial and unique character of the different neighborhoods, districts and open spaces.

The proposed project will contribute to defining the Commercial Urban Agriculture Overlay zone by developing a business within the emerging commercial cannabis industry. The proposed facility is located within the general area of other approved commercial cannabis sites, along Cecila St. The unifying design themes of each commercial cannabis facility will create a cohesive, modern, improved urban landscape for the area.

2. Goal LUE -3 (land use): Aesthetically pleasing, definitive, and inclusive urban design • Require building and site frontages that define public streets with high-quality architectural and landscape design, including small-scale architectural elements and plan changes.
• Require new and renovated building be designed to avoid styles, colors, and materials that negatively impact the environment or the design character of the neighborhood and center in which they are located.

The proposed project fronts Atlantic Avenue, which is a public street. The project includes a landscape buffer at the property line between the adjacent parcel where access is taken and the proposed fencing. Landscaping elements include drought-tolerant native plant species with water efficient irrigation. As a condition of approval, the facility operator must submit to the City, for review and approval, a façade improvement plan and landscaping plan which are required to be designed to meet the City’s design and landscaping guidelines. The design

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elements include modern architecture with a neighborhood character that is highlighted by creative design spaces. The façade improvements for the existing building will comply with the design and character goals outlined in the General Plan.

3. Goal LUE (land use) – 6: Enhanced character in neighborhoods • Policy LUE 6.2: Require that new additions, renovations, and infill development be sensitive to neighborhood context and building form and scale.

The proposed project is an infill development project as the proposed facility will be operating within one existing building. While the project does not include any major construction or additions, the design and scale has been evaluated to ensure compatibility with existing and future development. The area is currently largely industrial uses, including warehouses, manufacturing facilities and storage facilities. Most existing buildings are singlestory on deep rectangular lots. The proposed project is consistent with the existing neighborhood.
• Policy LUE 6.4: Require commercial and industrial uses to screen service facilities from public view. New development should enclose loading docks and bays when directly adjacent to residential uses.

The proposed facility design includes a security wall which will screen all commercial cannabis activities from pedestrian view and prevent access from the immediately adjacent residential uses to the north and west of the facility. All loading activities will occur behind the facilities security wall. No facility activities will be visible from the public view shed.

4. Goal ED-1 (economic development): A diverse and healthy economy • Policy ED-1.1: Promote long-term partnerships and programs that facilitate business recruitment, retention, and expansion through partnerships with businesses, property owners, and educational, arts, and environmental communities and other stakeholder groups.

The Commercial Cannabis Program helps the City meet this economic development goal and policy by creating long-term partnerships with facility operators. The proposed project includes a 10-year development agreement and a commercial cannabis permit. Over the 10- year life of the permit, the Operator is required, as a term and condition of operation, to contribute to the economy of the City by providing employment opportunities, paying operational fees and by making an annual contribution to the General Fund with the

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Community Benefits Program fee. The proposed development agreement stipulates that the Operator will contribute a minimum of $66,667 annually to the City for community benefits and programs. This will result in $666,667 in revenue for the City over the 10-year permit life.

Each of the Commercial Cannabis sites will be required to make the same contribution as a term of their retrospective development agreements. If all proposed project sites are approved, the community benefit contribution alone would result in approximately $9.3 million in revenue for the City over 10 years.

5. Goal ED – 2: A thriving business climate that attracts and retains new businesses of diverse types and sizes.
• Policy ED – 2.3: Incentivize business to locate in Cudahy. • Policy ED – 2.4: Streamline development and business application process to ensure they are thorough and efficient.

The Commercial Cannabis program offers cannabis industry leaders a unique and diverse operating area in the City. The City is conveniently located near the 710, I-5, 105 and 91 freeways. In addition to major roadways, the City is near the Los Angeles International Airport and Long Beach Port – both of which are major domestic and international import/export hubs. Being located just outside the City of Los Angeles, Cudahy provides Operators an opportunity to legalize their existing cannabis businesses in an unsaturated market, with an expedited permitting process, while remaining within short distance to major retail dispensaries within greater Los Angeles area. As such, the City has attracted some of the largest-most successful cannabis brands in the industry, like Aqua Tergere, LLC. As the operator and long-term tenant, the company is committed to maintaining a corporate partnership with the City.

6. Goal ED – 3: A skilled and adaptable local workforce • Policy ED – 3.1: Strive to increase the number of Cudahy resident who both live and work in Cudahy.
• Policy ED – 3.3: Continue to support industries that provide a range of jobs at prevailing living ages through land use policy and local incentives.

As previously mentioned, the proposed development agreement includes a provision that requires the Operator to provide 50% of the employment opportunities generated by the facility to Cudahy residents. The existing building is vacant, thus providing no jobs for residents. Other business in the City are not required to meet this requirement, therefore, if the building was leased or purchased by another business, the City would not necessarily gain

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any new jobs. Further, the proposed development agreement requires that all employees are paid a living wage, as determined by the Los Angeles Living Wage Ordinance, as well as fulltime employment with benefits.

By agreeing to provide local jobs with living wages, Aqua Tergere, LLC will assist the City with meeting this goal and policy.

Urban Agriculture Overlay Business Standards
The proposed project is subject to the City of Cudahy Municipal Code (CMC), Title 20, Chapter

20.120 – Commercial Urban Agriculture Overlay Zone. Table 7.1 below indicates the applicable Business Development Standards of how the proposed project complies with these standards.

Table 7.1 – Commercial Cannabis Business Standards
CMC Section Business Standard Consistency Analysis
(Does the project
meet the standard?)

COMMERCIAL

CANNABIS

PRODUCTS

MANUFACTURING
(ORD. 673, SEC

5.20.110)
Commercial Cannabis Products
Manufacturing is a permitted use only
on properties within the applicable
Permit Zone with a valid Cultivation
Permit and other requisite permits and
entitlements.

Yes; the project is
located within the
Urban Agriculture
Overlay Zone as
required by the City
Zoning Code and will
operate with an
approved CCP, if
granted.

A Manufacturing Permittee must employ
at least one (1) member of its personnel
dedicated full time to quality control.

Yes; the project
includes a Condition
of Approval (COA No.
10) which requires
compliance with this
standard.

The Manufacturing Permittee must
establish standard operating procedures
and batch record that comply with
current good manufacturing practices
and applicable State Law, including
Yes; the project
includes a Condition
of Approval (COA No.
11) which requires
compliance with this

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MAUCRSA. standard.
a) All Cannabis Products produced by
a Manufacturing Permittee must be
packaged in child resistant containers
prior to leaving the Premises for such
Manufacturing Permittee in accordance
with applicable State Law, including
MAUCRSA.
b) All Cannabis Products produced by
a Manufacturing Permittee must be
labeled in compliance with applicable
State Law, including MAUCRSA.

Yes; the project
includes a Condition
of Approval (COA No.
12) which requires
compliance with this
standard.
a) Manufacturing Permittees may
conduct Manufacturing using any type of
solvents, including Volatile Solvents, or
Manufacturing processes if such
Manufacturing complies with the
requirements of this Chapter and State
or local law, including but not limited to
Health and Safety Code Section
11362.775 (or any successive State Law)
all applicable fire and building codes in
the City and any other laws of the City
designed to ensure the safety of such
operation.
b) Manufacturing Permittees using
Volatile Solvents for Manufacturing
Cannabis Products must operate in a
manner to reduce the risk of explosion
or danger to public health, including
through the use of a close-loop or
solvent dispersion
Yes; the project
includes a Condition
of Approval (COA No.
13) which requires
compliance with this
standard.

If hazardous materials, flammable gas,
flammable liquefied gas, flammable and
combustible liquids, or other flammable
material, as those terms are defined in
California Fire Code Section 202, are to
be used in the processing of commercial
Cannabis, then the provisions of
Yes; the facility will
use Type 7
Manufacturing
(volatile solvents)
methods and includes
a condition to obtain
LA County Fire

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California Fire Code Section 407 shall be
applicable where hazardous materials
are subject to permits under California
Fire Code Section 50 (Hazardous
Materials) are located on the Premises
or where required by the applicable
building or fire official.
approval prior to
operation (COA No.
14)
Storage, use, and handling of
compressed gases in compressed gas
containers, cylinders, tanks, and systems
shall comply with California Fire Code
Chapter 53. Partially full compressed gas
containers, cylinders, or tanks containing
residual gases shall be considered as full
for the purposes of the controls
required. Compressed gases classified as
hazardous materials shall also comply
with California Fire Code Chapter 50 for
general requirements and California Fire
Code Chapter 53 addressing specific
hazards, including California Fire Code
Chapter 58 (Flammable Gases),
California Fire Code Chapter 60 (Highly
Toxic and Toxic Materials), California Fire
Code Chapter 63 (Oxidizers, Oxidizing
Gases and Oxidizing Cryogenic Fluids,
and California Fire Code Chapter 64
(Pyrophoric Materials). Prevention,
control, and mitigation of dangerous
conditions related to storage, use,
dispensing, mixing, and handling of
flammable and combustible liquids shall
be in accordance with California Fire
Code Chapters 50 and 57.

Yes; the facility will
use Type 7
Manufacturing
(volatile solvents)
methods and includes
a condition to obtain
LA County Fire
approval prior to
operation (COA No.
14)
Urban Agriculture Overlay Proposed Design Standards

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The Urban Agriculture Overlay Zone business and operational standards were established with the adoption of Ordinance 673; however, the ordinance did not provide specific design or development standards for the zone. Table 8.1 below, represents the approved designed standards for the Cannabis Zone to be incorporated in the recently approved Zoning Ordinance. To ensure consistency with the approved design standards, the proposed project has been designed to comply with the standards and the project includes conditions of approval which would ensure compliance with development standards and design guidelines.

Design/Development Standard Consistency
Analysis
Landscaping All new Commercial Cannabis Permits must
provide landscaping using drought-tolerant,
desert landscaping, as approved by the City.

Landscaping may include surface planters,
above ground planters, and other innovating
planting solutions, approved by the City. A 5-
foot landscape dedication is required at the
front of new and existing buildings. Exceptions
may be made for existing buildings with no
existing front yard setback.

Yes; the project
includes a
condition (COA No.
18) that requires
compliance with
these standards.

Parking 1 parking space for every 2 employees during
the peak shift; OR a parking plan approved by
the City.

Façade
Improvements
All new Commercial Cannabis Permits must
include a Façade Improvement Plan for City
approval. The plan must include new paint,
siding or other building improvement materials,
in a color scheme approved by the City.

Plans must also include new paving, as needed,
parking striping, and other site improvements,
as determined by the City.

Fencing Fencing must be provided along the front
perimeter of all Commercial Cannabis facilities.

Fencing may be constructed between 8 feet
and 10 feet in the front and up to 15 feet in the
back.

Materials: Decorative or reinforced metal,
wrought iron, concrete and block wall are all
allowed materials. Alternative materials may

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be allowed with City approval. Chain-link and
razor wire are strictly prohibited. Fences may
be required to be constructed 5 feet from the
property line to allow for future City
improvements.

All fencing plans must be submitted to and
approved by the City prior to construction.

Set Backs When applicable, as determined by the City
Manager, a 5-foot front yard set-back may be
required for dedication for future City Public
Right of Way improvements.

CONDITIONAL USE PERMIT FINDINGS AND SUPPORTING EVIDENCE Commercial Cannabis Permits are Conditional Use Permits pursuant to the provisions of Ordinance 673 and the City Manager’s determination. The City Council must make certain findings to grant a Conditional Use Permit pursuant to Section 20.44.070 of the Cudahy Municipal Code (CMC). The ability to make the required findings is evaluated below.

1. The site for a proposed conditional use should be adequate in size and shape to accommodate the yards, walls and fences, parking and loading, landscaping and other development features prescribed in this chapter, or required by the commission, city council or other authorized agent in order to integrate the conditional use with the land and uses in the neighborhood. [CMC § 20.44.070(1)]
The proposed project does not include any new construction. The project site has one building constructed. The other two buildings/structures on-site will be removed or demolished. The development standards for the Commercial Manufacturing – Urban Agriculture Overlay Zone will be met with the development of this project. Based on the evidence presented in this staff report, the proposed project is consistent with the development standards and design guidelines established for the Urban Agriculture Overlay Zone.

Based on the discussion above, this permit approval finding can be made.

2. The Commission shall consider the nature, condition, and development of adjacent uses, buildings, and structures and the effect the proposed conditional use may have on such adjacent uses, buildings and structures. [CMC § 20.44.070(2)]

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The surrounding properties to the south, east and west are industrial uses and zoned for commercial cannabis activity. The properties to the north are multi-family housing and the County of Los Angeles DPSS. The proposed project is in the ideal area for Commercial Cannabis activities in the City as it is within the designated Urban Agriculture Overlay and will occupy one currently vacant building.

Based on the discussion above, this permit approval finding can be made.

3. The Site for a proposed conditional use should relate to streets and highways adequate in width and pavement to carry the kind and quantity of traffic such use would generate. [CMC § 20.44.070(3)]
Atlantic Avenue is adequate in width and pavement to carry the quality of traffic generated by the proposed use. The proposed project is located behind a parcel that abuts Atlantic Avenue. The proposed project will take access from the parcel to the west through an access agreement with the landowner. The proposed project does not include any new construction and the proposed use (Commercial Cannabis Facility) will not increase the intensity of the previous manufacturing use. Therefore, no additional traffic is anticipated to be generated by the proposed project.

Based on the discussion above, this permit approval finding can be made.

CALIFORNIA ENVIORNMENTAL QUALITY ACT (CEQA)
Pursuant to CEQA (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (Title 14, California Code or Regulations, Division 6, Chapter 3, §15000 et seq.), the subject application is a “project” that is subject to environmental review.

The proposed project is exempt from CEQA pursuant to the CEQA Guidelines Section 15301.

The proposed project does not include any new construction beyond interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances, in accordance with CEQA Section 15301(a).

CONCLUSION
Since February 1, 2012, when California Governor Jerry Brown dissolved all redevelopment agencies, the City has suffered from lack of development funding and opportunities. Prior to

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dissolution, the City received approximately $3 million in annual revenues from redevelopment agency funding. To overcome the loss, the City Council has prioritized economic development initiatives and programs to redevelop dilatated and underutilized industrial areas.

Consistent with this objective the City Council approved the addition of both an Economic Development Ordinance No. 652 to allow the City to implement its General Plan objectives and projects. Shortly thereafter, the City Council approved the Development Agreement Ordinance No. 653 to allow private investment groups to capitalize on emerging market trends such as the Cannabis industry. The proposed project would provide job opportunities in the City as well as significant economic and fiscal contribution to the City’s General Fund.

Based on the information presented above, the proposed project is consistent with the City Council’s economic development goals; the 2040 General Plan goals, policies and programs; and the applicable zoning regulations. Pursuant to the City’s Economic Development Ordinance No. 652, Development Agreement Ordinance 653, the Commercial Cannabis Ordinance 673 and the Zoning Code, the City Council is requested to review the proposed project and to make the findings required to grant Commercial Cannabis Permit No. CCP18- 0011 and approve Development Agreement (DA) No. DA18-011C for the Commercial Cannabis Facility to be operated by Aqua Tergere, LLC located at 8210 Atlantic Avenue (APN 6224-023-020), to the City Council.

FINANCIAL IMPACT
The proposed development agreement would require the operator to provide full-time employment opportunities to residents. The proposed facility is projected to hire up to 10 employees with 50% being City residents. The building facility is currently vacant and therefore currently providing no employment opportunities or generating any sales tax revenue for the City. Because no business is currently being operated, the City is also losing potential business license revenues. Such has been the case for several years.

By allowing the proposed uses, the City would not only bring new jobs to the residents, but also potential tax revenue generated by sales tax and business license tax. In addition to tax revenues, the City would get between 1% and 2% of the facilities gross receipts. California is currently the most profitable cannabis market in the nation with market projections upwards of $5.3 Billion in the first year of the legal market (2018). The Los Angeles market leads all other regions—including Colorado and Las Vegas—with cannabis sales. BDS Analytics calculated sales from Colorado, Oregon, and Washington and California for four months (March through June) in 2017. California state dispensaries sold $894 million worth of

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cannabis products versus Colorado's $516 million, Washington's $302 million and Oregon's $163 million. Some small cultivation sites, similar in size to the proposed project, are projecting annual revenues upwards of $4 million per year. Such revenues would result in a $80,000 annual revenue for the City on the cultivation license, alone.

As described in the 2040 General Plan Consistency section, above, the proposed development agreement stipulates that the Operator will contribute a minimum of $66,667 annually to the City for community benefits and programs. This will result in $666,667 in revenue for the City over the 10-year permit life. Each of the Commercial Cannabis sites will be required to make the same contribution as a term of their retrospective development agreements. As previously mentioned, if the City approves all proposed project sites, the community benefit contribution would result in approximately $9.3 million in revenue for the City over 10 years.

For Fiscal Year (FY) 2018-19 the minimum monthly Operating Fee is projected to be approximately $1,365.84 based upon square footage. In the event the business is not operating in the FY, the minimum fee the City will receive is approximately $1,992.06. The minimum annual Operating Fee for FY 2018-19 is estimated to be $[inter amount]. This Operating Fee is projected for the period April 1, 2019 to June 30, 2019, if the City takes the following actions:

1. City Council approves the proposed Ordinances and Development Agreements on November 6, 2018;

2. Second Reading of this Ordinance is on November 20, 2018; and

3. Ordinance (Development Agreement) is effectuated 30 days thereafter.

In subsequent years, based upon the size and various licenses types, the site would conservatively bring in approximately $7,968.24 in annual revenue to the City through minimum operational fees; however, the proposed operation is managed by a successful, experience cannabis company with profit projections that far exceed the minimum fee projections. The City anticipates Operating Fee minimum revenues from the nine locations being proposed to the Planning Commission and City Council to be $1,365.84 for Fiscal Year 2018-19. This site represents 1% of the $465,000 revenue projection.

In addition to operating fees, operators will pay a Community Benefit Program fee of $66,667.00, annually, to the City General Fund to support community programs. Based on the economic and fiscal analysis above, the proposed project will have a positive fiscal impact on the City.

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It is possible that the City may, in the future, impose a city-wide Cannabis Tax (by Citizen Initiative or otherwise). However, the proposed development agreements do not bind operators to an unknown future Cannabis Tax. Staff recommends that the Commission consider this issue when reviewing the economic impacts of the development agreements and, if appropriate, require operators to expressly agree to be bound by any such future Cannabis Tax. However, it is expected that operators would object to such a condition.

LEGAL DESCRIPTION
The proposed development would occur on a legal lot. The proposed property is a legal lot described and shows as follows:

THE NORTHERLY 160 FEET OF LOTS 213 AND 214 OF TRACT NO. 180, IN THE CITY OF CUDAHY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 13, PAGE 198 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

ATTACHMENTS
ORDINANCE NO. 697

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ORDINANCE NO. 697

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CUDAHY, CALIFORNIA, APPROVING: (1) A DEVELOPMENT

AGREEMENT BY AND BETWEEN THE CITY OF CUDAHY AND

AQUA TERGERE, LLC, A CALIFORNIA LIMITED LIABILITY
COMPANY AND (2) THE ISSUANCE OF A COMMERCIAL CANNABIS
PERMIT
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a property development agreement with any person having legal or equitable interest in real property for the development of such property in order to establish certain development rights; and WHEREAS, in accordance with California law, the City of Cudahy has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreement with the City; and WHEREAS, on September 11, 2017, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities (cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement; and
WHEREAS, all procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 – Existing Facilities.

This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301;
WHEREAS, on September 17, 2018, the City of Cudahy Planning Commission ("Planning Commission") conducted a properly noticed public hearing to consider approval of a Commercial Cannabis Permit [CCP] and a Development Agreement (as defined below), at which testimony and evidence, both written and oral, were presented to and considered by the Planning Commission; and
WHEREAS, by majority vote the members present, the Planning Commission, decided to deny a CCP for the Site and made a recommendation of disapproval of the Development Agreement; and
WHEREAS, the Applicant(s) timely submitted a written notice of appeal to the City Clerk,

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accompanied by the required filing fees, and including stated grounds for the appeal; and WHEREAS, the entire matter is properly before the City Council for independent consideration and de novo review; and
WHEREAS, the City Council may reverse, modify or affirm the Planning Commission decision, in whole or in part; and
WHEREAS, the City Council shall approve a development agreement by ordinance; and WHEREAS, subsequent to receipt of the appeal of the Planning Commission's decision, the City Council conducted a properly noticed public hearing to consider the approval of a CCP and Development Agreement, at which testimony and evidence, both written and oral, were presented to and considered by the City Council; and
WHEREAS, the City Council finds the Project is: consistent with the objectives, policies, general land uses and programs specified in the general plan, as amended; compatible with the uses authorized in the Overlay Zone; in conformity with good land use practices; will not be detrimental to the health, safety and general welfare of the City; and is in the best interest of the City of Cudahy and its residents.

NOW THEREFORFE, THE CITY COUNCIL OF THE CITY OF CUDAHY
DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS
That the above Recitals are true and correct and are incorporated as though fully set forth herein.

SECTION 2. APPROVAL OF DEVELOPMENT AGREEMENT
That the City Council hereby approves the Development Agreement By and Between the City of Cudahy and Aqua Tergere, LLC a California limited liability company ("Development Agreement") [DA#18-011C], a copy of which is attached hereto and incorporated herein by this reference as Exhibit "A," subject to the terms and conditions stated therein.

SECTION 3. APPROVAL OF COMMERCIAL CANNABIS PERMIT
That the City Council hereby approves Commercial Cannabis Permit No. CCP 18-0011, subject to the terms and conditions stated therein, to allow a Commercial Cannabis Facility for the Site located at 8210 Atlantic Avenue, City of Cudahy, CA as set forth in the Development Agreement. A copy of the permit is attached hereto and incorporated herein by this reference as Exhibit "B." The Commercial Cannabis Permit shall be issued upon execution by the City of the Development Agreement.

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SECTON 4. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.

SECTION 5. EFFECTIVE DATE OF ORDINANCE
That this Ordinance shall take effect thirty (30) days after its second reading by the City Council.

SECTION 6. EXECUTION OF DEVELOPMENT AGREEMENT
The Development Agreement shall not be executed by the City until on or after the effective date of the Ordinance.

SECTION 7. RECORDATION OF DEVELOPMENT AGREEEMENT
That the City Clerk is hereby directed to record the fully executed Development Agreement with the County Recorder for the County of Los Angeles no later than ten (10) days after its execution.

SECTION 8. CERTIFICATION
That the City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published, in full or in summary format, according to law.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 20th day of November, 2018.

Chris Garcia
Mayor

ATTEST:

Richard Iglesias
Deputy City Clerk

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No.697 was introduced for a first reading on the 6th day of November, 2018 and approved for a second reading and adopted by said Council at its regular meeting held on the 20th day of November, 2018 by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Richard Iglesias
Deputy City Clerk

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EXHIBIT "A"

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF CUDAHY

AND AQUA TERGERE, LLC

A CALIFORNIA LIMITED LIABILITY COMPANY

SEE ATTACHMENT

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SPACE ABOVE THIS LINE FOR RECORDER'S USE
Recording Fee Exempt per Government Code §6103

COMMERCIAL CANNABIS

DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF CUDAHY AND

AQUA TERGERE, LLC
THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made and entered into this __________ day of ________________, 2018, (the “Execution Date”), by and between the CITY OF CUDAHY, a California municipal corporation (“City”) and AQUA TERGERE, LLC a California limited liability company ("Owner"). City and Owner are sometimes referenced together herein as the “Parties.” In instances when a provision hereof applies to each of the Parties individually, either may be referenced as a “Party.” The Parties hereby jointly render the following statement as to the background facts and circumstances underlying this Agreement.

RECITALS
A. The State of California enacted California Government Code Sections 65864 et seq. (“Development Agreement Statutes”) to authorize municipalities to enter into development agreements with those having an interest in real property to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development in connection with the development of real property within their jurisdiction.

B. The purpose of the Development Agreement Statutes is to authorize municipalities, in their discretion, to establish certain development rights in real property for a period of years regardless of intervening changes in land use regulations, to vest certain rights in the Owner, and to meet certain public purposes of the local government.

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C. As authorized by the Development Agreement Statutes, the City has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreements with the City.

D. Owner currently holds a legal or equitable interest in real property considered in this Agreement which has a development area approximately 2665 square feet located at 8210 Atlantic Ave., City of Cudahy, State of California (the “Site”). The Site includes Assessor’s Parcel Number: 6224-023-020, and is more fully described in Exhibit A and shown on the map in Exhibit B. Both exhibits being attached hereto and incorporated herein by this reference.

E. Presently, Owner has a leased interest a portion of the Site for the purpose of medicinal cannabis related activities which shall include, but not be limited to, facilities where cannabis is planted, grown, harvested, dried, cured, graded, trimmed, extracted, manufactured into cannabis products, distributed, or transported and sold not as a store-front retail dispensary, or that does all or any combination of those activities (“Medicinal Cannabis”). Such Medicinal Cannabis facilities shall operate in accordance with all applicable provisions of Business and Professions Code §§26000-26231.2; California Health and Safety Code Safety Code §§ 11357-11362.9 and 11362.7- 11362.85; Revenue and Taxation Code §§ 34010-34021.5; Vehicle Code §§ 2429.7 and 23222; Water Code §§ 1831, 1847, and 13276; and the City of Cudahy Municipal Code as it applies to such facilities (collectively the “California Cannabis Laws”). Prior to operating a medicinal cannabis cultivation facility, Owner shall be required to obtain a Medicinal Commercial Cannabis Permit from the City pursuant to City Ordinance No. 673.

F. Ultimately, Owner intends upon obtaining a state license issued, pursuant to California Cannabis Laws, to operate a medicinal commercial cannabis or adult use facility at the Site. The definition of "Owner" hereunder shall mean and refer to the fee simple owner and/or any authorized tenant of the Site to the extent such party holds or is covered by a Regulatory Permit. In the event the City of Cudahy permits adult use cannabis commercial activity, Owner shall receive priority processing for any corresponding City permits for the same to the extent authorized by law.

G. On December 4, 2017 Owner applied to this City for a Medicinal Cannabis Manufacturing Permit (hereinafter "Regulatory Permit”) to conduct Medicinal Commercial Cannabis Activities. No such activities are permitted without a Development Agreement within or outside the boundaries set forth in the Overlay Zone/Permit Area illustrated in Exhibit “A” to City Ordinance No. 673.

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H. Owner presently intends to develop and open a medicinal marijuana facility on the Site consistent with the California Cannabis Laws and Project Approvals (known as the “Project”). The Project will include taking fresh and dried plant material and selectively extract the plant oils and components to produce a concentrate of products of medicinal cannabis of the same, only to other legally permitted persons and entities under the California Cannabis Laws (“licensed persons”), who operate retail dispensary outlets or other licensed facilities under the California Cannabis Laws, but would not include the dispensing or sale of Cannabis Products at the Project Site without further authorization by the City.

I. The proposed Project includes a Commercial Cannabis Permit, which is a type of conditional use permit, to allow for a Commercial Cannabis Facility and a Development Agreement (DA) for commercial cannabis activities including manufacturing within an existing, currently vacant, approximately 2,665 square foot industrial building. The site is currently developed with one commercial building. The proposed project will be built in one phase. More specifically, the proposed project would include:
• Manufacturing: The manufacturing area consists of a 240 square foot prefabricated class1/division1 FlexMod extraction room that will house state of the art closed-loop extraction systems, a 356 square foot pre post process room where minor post extraction manipulations will occur (ie. decarboxylation, degassing, and drying), a 488 square foot post-process room that meets class1/division2 safety standards that will house processing and evaporation equipment, a 266 square foot storage and transfer room that will hold both intake and outtake manifests as well as storage of fresh plant material, an 80 square foot product storage vault where bulk and packaged product will be stored, and a 360 square foot packaging and labeling room containing boxes, glass jars, and child-proof packaging of extraction products. The facility also includes 106 square feet of restrooms where employee’s can change into proper work attire and utilize the facilities. The site includes a total of 1,084 (240 C1D1, 356 pre process, 488 post process) square feet of production space and 2,665 square feet of total premises space.

Hours of Operation: The facility will be open from 8 a.m. to 8 p.m., Monday through Friday, for general business hours with approximately eight (8) employees per shift.

Owner will employ approximately 10 employees.

Parking/Loading/Access: The proposed project provides 15 parking spaces, including 1 accessible van spaces. Loading will take place on-site. Vehicular access to the site will be through an existing driveway on Atlantic Avenue. Within the site, access to the structures will be through the secured front office entrance. The project complies with the CAL Green Tier 1 by incorporating stormwater pollution prevention measures, installing energy- and water-efficient equipment, and planting native and droughttolerant landscaping at the front of the property.

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Note MAUCRSA now authorizes a person to apply for and be issued more than one State license at one location provided the licensed premises are separate and distinct. See also, Cudahy Municipal Code Section 5.20.050(b)(2).

Owner has applied for one [1] license(s): Manufacturing J. On September 11, 2017, the City adopted Ordinance No. 673 permitting Certain Medicinal Commercial Cannabis Activities in strict compliance with the California Cannabis Laws under specified conditions and provisions. A referendum petition was circulated for signatures; however, on November 1, 2017, the County Clerk for the County of Los Angeles determined that the referendum lacked sufficient signatures to delay the effective date of Ordinance No. 673. The City has recently been presented with a citizen initiative to repeal Ordinance 673 and ban all marijuana uses in all zones.

Applicant is advised to consult with legal counsel on this matter.

K. All procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied.

L. The City has given public notice of its intention to adopt this Agreement and has conducted public hearings thereon pursuant to California Government Code §65867.

The City has found that the provisions of this Agreement and its purposes are consistent with the objectives, policies, general land uses and programs specified in City’s General Plan, zoning code and municipal ordinances.

M. The City, in entering into this Agreement, acknowledges that certain City obligations hereby assumed shall survive beyond the terms of the present Council members, that this Agreement will serve to bind City and future Councils to the obligations hereby undertaken, and that this Agreement shall limit the future exercise of certain governmental and proprietary powers of City. By approving this Agreement, the

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Aqua Tergere, LLC Page 5 of 40 City of Cudahy
Development Agreement
DA # 18-019C
Council has elected to exercise certain governmental powers at the time of entering into this Agreement rather t han defer its actions to some undetermined future date. The terms and conditions of this Agreement have undergone extensive review by City and the Council and have been found to be fair, just and reasonable. City has concluded that the p ursuit of t he Project will serve t he best interests of its citizens and that t he public health, safety and welfare are best served by entering into this obligation. Owner has represented to City that it would not consider or engage in the Project absent City approving this Agreement.

N. The City agrees that Owner’s land use entitlements for the Project shall vest for the term of this Agreement as described below.

O. After conducting a duly noticed hearing on September 17, 2018, in conjunction with Section 20.28.030 of the City’s Municipal Code, the Planning Commission of the City reviewed, considered and recommended disapproval of the execution of this Agreement and denial of a Commercial Cannabis Permit [CCP] for the SiteNotwithstanding said disapproval and denial, the Owner made a timely request that the entire matter proceed to hearing before the City Council for independent consideration and de novo review on appeal.

P. After conducting a duly noticed hearing on _______________, ____, in conjunction with Section 20.28.060 of the City’s Municipal Code, and after independent consideration and de novo review on appeal, the City Council approved the execution of this Agreement and issuance of a CCP for the Site. The City Council found the Project: consistentwith the objectives, policies, general land uses and programs specified in the general plan,as amended; compatible with the uses authorized in the Overlay Zone; in conformity with good land use practices; will not be detrimental to the health, safety and general welfare of the City; and is in the best interest of the City of Cudahy and its residents.

12:7+(5()25( in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

1. Government Code and Municipal Code Required Elements a. Description of Property. Land situated in the City of Cudahy, County of Los Angeles State of California ; whose street address is 8210 Atlantic Ave., City of Cudahy.

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Aqua Tergere, LLC Page 6 of 40 City of Cudahy
Development Agreement
DA # 18-019C
b. Owner and Other Person with Legal or Equitable Interest.

Owner: Aqua Tergere, LLC
Nature of Interest: Lease for 5 years with Option to Renew for an additional 5 years.

If Owner is not the fee simple owner of the Site, check box below:
[x] Owner represents and warrants that the property owner has consented in writing to the execution and recordation of this Agreement against the Site. Owner represents that the property owner is the common owner of adjacent parcels and that its has the lawful consent of the property owner to access the Site by crossing his adjacent parcels for access purposes. The property owner has expressly consented to all terms of this Agreement as a covenant running with the land.

See attached Landlord Consent agreement, incorporated herein by this reference (Exhibit C).
c. Permitted Uses. The subject property may be used for any medicinal commercial cannabis facility as presently authorized under 5.20.110 [Medicinal Cannabis Products Manufacturing] of the municipal code, and for any other use as authorized under applicable provisions of the municipal code. d. Zoning. Owner shall guarantee that such activities outlined in Owner’s Medicinal Commercial Cannabis Permit Application (“Application”) conducted pursuant to this Agreement and under the Regulatory Permit shall comply with the City’s municipal code, including the zoning ordinance and any and all development and construction requirements contained therein. Owner shall not conduct any business under this Agreement or under the Regulatory Permit without having obtained all necessary permits, licenses, and approvals from the City and State of California.
e. Reservation or Dedication of Land for Public Purposes. Sufficient roadway, sidewalk, and utility easements shall be reserved or dedicated to City for such purposes.

2. Term
This Agreement shall commence on the Effective Date and it shall end ten (10) years from the starting date, and it shall remain in full force and effect so long as the subject property is used for a commercial cannabis facility as authorized

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under 5.20.110 of the municipal code (as amended); provided, however, such use is not abandoned for a period of more than ninety (90) days.

This Agreement SHALL be extended for one (1) additional ten (10) year period following the expiration of the initial ten (10) year term upon the occurrence of all of the following:
(i) The Owner shall give written notice to the City no later than one hundred twenty (120) days before the expiration of the initial ten (10) year term that the Owner desires to extend this Agreement for an additional ten (10) year period;
(ii) The Owner shows adequate evidence to the City that it has a legal and/or equitable interest in the Property and/or will have such interests for the duration of the extended term of the Agreement; (iii) The Owner shall deposit all fees required by the City necessary for processing the extension request and drafting necessary documentation;
(iv) The Owner shall not be in default of any provision of any agreement between City and Owner relative to the development of the Property or of any condition of approval imposed upon any entitlement granted by the City relative to the development of the Property for which Owner has been given a written notice to cure by the City and for which Owner has not cured or commenced to cure such default within thirty (30) days, if and as provided by such agreement or condition of approval.

3. Owner’s Site and Floor Plans
a. Owner’s site plan and floor plan for the facility are attached hereto as Exhibit D and incorporated into the Application.
b. A preliminary landscape plan shall be prepared and reviewed and approved by the City Manager and/or Community Development Manager. A final landscape plan shall be prepared and submitted in conjunction with building and site improvement plans prior to issuance of building permits for construction activities.

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c. An exterior signage plan shall be prepared and reviewed and approved by the City Manager and/or Community Development Manager in accordance with the procedures and requirements of Section 5.20.050(d) of the municipal code.

4. Facility Operations
a. Standard Operating Procedures. Owner is a lawful entity that will only sell to other legally permitted persons and entities under the California Cannabis Laws. Prior to operating a medical marijuana cultivation, manufacturing, distribution, or delivery facility, Owner shall be required to obtain a Cannabis Permit from the City pursuant to City Ordinance No. 673. Further, and notwithstanding anything to the contrary, Owner may operate such medicinal cannabis-related activities as permitted in accordance with California state law, as may be amended, including without limitation, as long as such activity is not inconsistent with the Cudahy Municipal Code.

During the term of its regulatory Permit and the term of this Agreement, Owner shall lawfully operate in accordance with all state and local laws. Owner shall employ exemplary operating procedures to comply with state and local laws.

Owner’s facility shall employ safety and security measures for the safety and security of its employees, visitors, vendors, and neighboring communities and properties.

Owner shall fully comply with the minimum Business Standards regulating Medicinal Commercial Cannabis Activity set forth in new Section 5.20.050 of the Cudahy Municipal Code and such more specific operational requirements set forth in Exhibit E, "Business Standards", attached hereto. b. Security Plan. Owner shall secure approval of its proposed security plan by the Los Angeles County Sheriff or the City prior to operating. The security plan shall include, at a minimum and as appropriate, provisions for video surveillance, perimeter fencing and security, protection of the building(s) from vehicle intrusion, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professionally monitored alarm system.

Equipment and systems used for video surveillance and building alarms shall be approved by City. See Cudahy Municipal Code Section 5.20.050(r) for minimum security requirements.

Video surveillance shall include, at a minimum, all site and facility entrances and access points, all spaces accessible by the public, all secured areas of the facility with restricted access, all interior spaces and rooms where medicinal cannabis products are handled and processed, shipping and receiving areas, cash storage

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areas, and other areas necessary to protect the safety of employees and the public and to ensure medical marijuana products are received, handled, stored, packaged, shipped, and distributed in compliance with applicable state and local laws and regulations. The video surveillance system shall be web-based with direct access provided to the Los Angeles County Sheriff upon request.

The security system shall also include sensors to detect entry and exit from all secure areas, panic buttons in appropriate locations, and a professionally monitored alarm system with glass breakage sensors and motion detectors.

Owner shall employ properly trained and licensed third-party security personnel to protect the welfare and safety of Owner and employees, and to ensure public safety to the neighboring community. Owner shall use security personnel 24 hours, 7 days a week. Security personnel may be armed so long as proper licensing and insurance requirements are followed and met by the third-party operator providing such security services.
c. Fire Department Approval. Owner shall not operate any facility, and no permit, license, or other approval issued by City shall be valid unless and until the Los Angeles County Fire Department has approved Owner’s site plan, floor plan, safety plan, and any other plans that require its approval. d. Possession of Firearms. Except for licensed and bonded security personnel, no person employed by Owner shall be in possession of any firearm while on the premises or location without having first obtained a license from the appropriate state or local agency authorizing the person to be in possession of such firearm. Every such person in possession of a firearm while on the premises or location must provide the City Manager and the Los Angeles County Sheriff, ten days before bringing the firearm onto the premises, with the following:
1) A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess such firearm; 2) A copy of his or her law enforcement identification (if he or she is employed by a law enforcement agency);
3) A copy of his or her California driver’s license or California identification card; and
4) Any other information reasonably required by the Los Angeles County Sheriff to show that the individual is in compliance with the provisions of all laws regarding the possession and use of a firearm.

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e. Identification Display. Each owner, manager, employee, and individual member engaged in the cultivation, processing, manufacturing, distribution, or transporting of cannabis shall at all times while engaged in the duties of his or her position wear in plain sight, on his or her person and at chest level, a valid identification badge, issued by Owner.
f. Employee Background Checks/Procedures for Inventory Control to Prevent Non-Medical Diversion of Medical Cannabis. Only employees who receive clearance from the proper oversight authority shall be permitted to enter Owner’s facility. Each employee will have to meet a criminal background investigation conducted by the Los Angeles County Sheriff, which at minimum shall include a LiveScan criminal history check, which City shall make a good faith effort to facilitate within a reasonable time following the issuance of a commercial cannabis permit(s) or license(s) to Owner.

Owner shall take all necessary and reasonable steps to prevent the distribution of any of its medicinal cannabis products to minors; prevent revenue from the sale or distribution of its medicinal cannabis and/or infused products from going to criminal enterprises, gangs and cartels; prevent the diversion of cannabis from California to any other state; prevent state-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; prevent violence and the use of firearms in the cultivation, manufacture, testing, delivery and distribution of cannabis; discourage and educate against drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use; disavow growing cannabis on public lands that creates attendant public safety and environmental dangers posed by such illegal uses; and discourage and educate against cannabis possession or use on federal property.
g. Quality Control and Testing. Owner shall utilize quality control measures and testing to ensure only the highest quality of commercial cannabis and infused products will be produced. Owner shall inspect the product to insure its identity and quantity, and shall have a testing lab perform testing of random samples prior to distribution to its patient collective membership affiliates.

Inspection and testing will be conducted by a testing lab off-site. Testing standards and procedures shall be in accordance with applicable state law and regulations.

All medicinal commercial cannabis products will undergo a quality assurance review in accordance with state law prior to distribution. Inventory procedures will be utilized for tracking and taxing purposes by the state. Owner shall employ

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an efficient record-keeping system to make transparent its financing, testing, and adverse effect recording, as well as recall procedures. Owner shall employ an efficient record-keeping system that will reflect its financing, testing, and adverse effect recording and product recall procedures.
h. Packaging of Medicinal Commercial Cannabis and Infused Products. All Owner commercial cannabis products shall be packaged and labeled as required by California Cannabis Law and applicable requirements and regulations issued by the State of California pursuant thereto. In addition to those packaging and labeling requirements, and packaging and labeling requirements set forth in Owner’s Regulatory Permit application, as amended or supplemented, all medicinal commercial cannabis products shall be packaged in an opaque childproof container which shall contain a label or be accompanied by a leaflet or inset that states, at a minimum:
1) The name, address and telephone number of the licensed medicinal commercial cannabis facility to which the medicinal commercial cannabis product is distributed, sold, or transferred;
2) The amount of medicinal commercial cannabis in the container; and 3) The date the medicinal commercial cannabis was transferred to a licensed commercial cannabis facility.

Owner intends to produce infused products and shall secure any approval from the County of Los Angeles Health Department required for manufacturing and handling such products. Owner infused products shall not be produced, manufactured, stored or packaged in private homes. All medicinal commercial cannabis infused products shall be individually wrapped at the original point of preparation.
i. Point of Sale Tracking System. Owner shall maintain an inventory control and reporting system that accurately documents the location of medicinal cannabis products from inception through distribution, including descriptions, weight, and quantity. The inventory control and reporting system shall comply with the track and trace program required by California Cannabis Law and regulations issued thereunder.

Owner shall employ a electronic point of donation/sale system approved by the State of California for all point of donations/sales tracking from seed or inception to product distribution to other licensed commercial cannabis facilities. Such approved system shall track all medicinal commercial cannabis products, each

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edible, harvested flower, and/or manufactured concentrate, as well as gross sales (by weight and sale). Owner's point of sale system shall have the capacity to produce historical transactional data in accordance with City's requirements. j. Record Keeping. Owner shall maintain records for all medicinal commercial cannabis and/or infused products. Owner shall comply with all record-keeping responsibilities that are set forth in Municipal Code Sections

5.20.050(s), 5.20.110(e) & 5.20.120(n), including complete and up-to-date records regarding the amount of commercial cannabis cultivated, produced, manufactured, harvested, stored, tested, distributed, delivered or packaged at Owner’s facility.
k. Processing, Handling, Storing, and Distribution of Medicinal Commercial Cannabis and Related Products. Medicinal commercial cannabis cultivation, handling, storing, and processing shall be concealed from public view at all stages of growth and processing, and there shall be no exterior evidence of cultivation or processing occurring at the premises from a public right-of-way or from an adjacent parcel. Commercial cannabis cultivation, handling, storing, processing, or distribution shall not create offensive odors; create excessive dust, heat, noise, smoke, traffic, or other impacts that are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; or be hazardous due to use or storage of materials, processes, products, or wastes.

Owner shall store its commercial cannabis and/or commercial cannabis products in a locked safe room with T-card identification access for management only. The safe room shall be constructed of fire-rate walls with numerous cameras installed to view all entries and exits from the safe room, as well as all other activities performed within Owner’s facility. Owner will not conduct outdoor operations except as related to lawful delivery and transportation of medicinal commercial cannabis and infused products. Owner will not store medicinal commercial cannabis or related products in its delivery vehicle outside normal operating hours of the facility.

Medicinal commercial cannabis products shall be sold or distributed only to licensed dispensaries in California. Excess or contaminated product will be securely stored on-site until it is properly disposed. Disposal may include composting, incineration, land-fill disposal through the local waste management hauler, or other disposal methodology in accordance with state and county health and safety codes and regulations.

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l. Odor Control. All structures shall have ventilation and filtration systems installed that prevent commercial cannabis plant odors from exiting the interior of the structure. The ventilation and filtration system shall be approved by the Building Official and installed prior to commencing cultivation or manufacturing within the allowable structure. Facility air intake, exhaust, and recirculating system shall be of industrial grade. Activated charcoal, recirculating, and closed loop aeration systems will be utilized as necessary for effective odor control and management.
m. Description of Banking Plan. Owner shall seek to open a bank account under the name of Owner or its associated management company to provide transparency for funds received, operational costs, including payroll, tax payments to the state and federal governments. Should a bank account not be forthcoming, Owner shall implement other industry standard banking and/or other industry standard transactional mechanisms.
n. Transportation Plan. Owner shall comply with all state and local law regarding transportation, including the rules governing delivery service. Owner shall retain a list of names and cellular contact numbers for all employees engaged in transportation of commercial cannabis products and provide it to the applicable oversight authority, keeping the list current and up to date.

Owner will keep complete and up-to-date records documenting each transfer of commercial cannabis to other lawful cooperative corporations, including the amount provided, the form or product category in which the commercial cannabis was provided, the date and time provided, the name of the employee making the transfer, the name and address of the other lawful cooperative corporation to whom delivery is made, and the amount of any related donation or other monetary transaction.

5. Community Relations, Employment, and Wages
a. Public Outreach and Education Program. The Owner shall coordinate and cooperate with City and other Owners of medicinal commercial cannabis facilities located within City of Cudahy in the establishment and implementation of appropriate public outreach and education programs, including but not limited to outreach and interface with public and private schools, youth organizations, religious organizations, health care providers, drug abuse treatment providers and mental health and drug counseling providers. The public outreach and education programs shall be approved by City.

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b. Community Benefits Program. The Owner shall coordinate and cooperate with the City and other Owners of medicinal commercial cannabis facilities located within the City of Cudahy in the establishment, implementation, and funding of a community benefits program which could include such items as capital improvements, new community recreation facilities, expansion and/or improvement to existing facilities or other physical improvements that provide a benefit to the community, support of holiday and special community events, and support of local public service, public safety, litigation defense and special districts and social and community organizations. This community benefits program may be implemented by the City. The City will invite public participation in the decision-making process for identifying and prioritizing community needs and benefits, and identifying appropriate projects to be funded by the entity implementing this community benefits program. All projects under the community benefits program must be approved by the City.

Owner agrees, as a business expense, to pay the City the yearly sum of $66,667.00. Unless initialed below by the City Manager, this yearly sum shall be deposited in full into a dedicated account set up by the City in order to create, fund and implement a City-approved community benefits program. _________ If initialed here by the City Manager, Owner has been approved for the following payment plan: Within thirty days of the Effective Date of this Agreement, the Owner shall deposit into the City's dedicated account, in good funds, twenty percent (20%) of the yearly sum of $66,667.00 [initial payment calculated at $13,333.40] and shall pay the balance thereof over a period of ten (10) months payable in equal monthly installments of $5,333.36 per month. Each monthly payment shall be due and payable on the 1st day of each month and shall be deemed late on the 5th day of the month. The amount and schedule of payments may only be modified by the written consent of the City Manager at his sole and complete discretion.

Thereafter, on the anniversary date of the Effective Date of this Agreement, and yearly through-out the entire term of this Agreement and any extension thereof, Owner shall pay to the City, as a business expense, the yearly sum of $66,667.00, payable in the same manner as set forth above. c. Designation of Persons Responsible for Community Relations. At the time of this Agreement, Owner’s day-to-day operations manager, Charles Arden, will be responsible for community inquiries and complaints and on-site during normal business hours.

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d. Interface with Los Angeles County Sheriff / Inspections. Owner’s day-today operations manager, Carlos Seals, will interface with the Los Angeles County Sheriff Department's assigned designee to ensure its operation complies with state and local laws and regulations. The City Manager, or designee, or the Los Angeles County Sheriff's Department's assigned designee acting at the City Manager's request and per his specific and limiting instructions, shall have the right to enter all Premises from time to time unannounced during hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this Agreement and state and local laws and regulations, without the requirement of a search warrant, subpoena, or court order, and subject to appropriate cost recovery fees set forth in this Agreement, or adopted by the City. See, Cudahy Municipal Code Section 5.20.050(t).
____________________ Owner's Initials
e. Local Recruitment, Hiring, and Training Programs. Owner is committed to making a good-faith effort to recruit, hire, and train City residents for employment by Owner. A good-faith effort means Owner shall take the following or similar actions to recruit and employ City residents: 1) Contact local recruitment sources to identify qualified individuals who are City residents, 2) Advertise for qualified City residents in trade papers and newspapers of general circulation in the area, and 3) Develop a written plan to recruit and employ City residents as a part of the its workforce. At a minimum, the Owner commits to a local annual hiring goal of 30% of total operational jobs for permanent and apprentice employees. This goal shall apply horizontally, across all departments and managerial positions. The Owner shall not be penalized or deemed in default under this Agreement if it is unable to achieve such a goal. "Local" is defined as within a 1-mile radius of the boundaries of the Overlay Zone. The Owner shall contact and work with a job referral agency assigned by the City Manager to implement a local hiring policy for permanent and apprentice employees. The purpose of the hiring policy is to facilitate the training and employment of local and disadvantaged job applicants for jobs with the Overlay Zone. Applicants for jobs shall not be disqualified from hiring solely on the basis of an arrest or conviction for a Cannabis-related crime that occurred prior to November 8, 2016, and could have been prosecuted as a misdemeanor or citation under current California law. The Owner shall report on compliance with the local hiring goals as part of its annual audit report. f. Living Wages. Living Wages. Owner shall pay all employees of the Facility, at a minimum, a Living Wage. A “Living Wage” is the higher of whatever the Owner currently pays its employees for similar work elsewhere or the following: the Full Cash Wage required to be paid by an employer to any

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individual under the City of Los Angeles Minimum Wage Ordinance [LAMC Sections 187 and 188], as adjusted annually.
g. Full-time Work. Owner shall make its best efforts to fill every position with a full-time employee. However, at no time shall Owner have a labor force that is composed of less than 50% full-time employees within its labor force, and Owner shall make a good faith effort to maintain a full-time employee level of 75%.

Owner agrees to provide to its eligible employees leave benefits, health and wellness benefits and other employee benefits to the extent such benefits are required to be paid for by Owner under applicable state and federal employment laws.

6. Indemnification Agreement by each Cannabis Permittee Pursuant to Cudahy Municipal Code Section 5.20.070(g), the City Manager may require each Cannabis Permittee to execute a separate Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Cannabis Permit, the Cannabis Permittee's Commercial Cannabis Activities, and any action taken by the Cannabis Permittee. The Indemnification Agreement shall include the defense of the City and reimbursement of all fees, costs and expenses incurred by the City related to any action arising from this Agreement.

7. Fees, Costs, and Future Taxes
a. Fees. Owner agrees to pay all permit fees and charges referenced in Section 5.20.070(f) of the municipal code, in the amounts adopted by the City Council by resolution, as well as any fees set forth in this Agreement. Permit application, processing, and renewal fees shall be due and payable at the time application is made.
b. Costs. As defined in Article 8, Owner agrees to reimburse City for all additional reasonable costs of City resulting from the operation of a medicinal commercial cannabis facility authorized under applicable provisions of the municipal code, council resolutions and administrative policies and regulations.

Reimbursement to City for such costs shall be due and payable as set forth in Article 8.

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c. Operating Fees.

As used herein, “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the Cannabis Permittee applicant or Cannabis Permittee where the Commercial Cannabis Activity will be or is conducted. The parties stipulate and agree that the square footage for the Premises upon the Effective Date of this Agreement is and shall be during the term of this Agreement: 1581 square feet.

As used herein, “Commercial Cannabis Activities” means all permitted activities: e.g., cultivation, possession, manufacture, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or distribution of Cannabis and/or Cannabis Products.

As used herein, “Gross receipts” shall mean the total amount actually received or receivable in the course of business in a calendar year or calendar month from sales or the performance of acts or services for which charge is made or credit allowed. “Gross receipts” include, without limitation, all receipts, cash, credit, property received in lieu of cash, and any other valuable consideration taken in exchange for goods, services or other valuable consideration. See, Cudahy Municipal Code Section 5.04.030(9).

As used herein, "Production Space" means the area on or within the Premises intended for Commercial Cannabis Activities excluding non-operational common areas such as restrooms, cafeterias, break rooms, hallways, corridors, vestibules, parking structures or surface street lots. The parties stipulate and agree that the square footage for the Production Space shall be 1084 square feet.

The City Manager is specifically authorized to set and adjust the square footage for the Premises Space and Production Space and to determine the corresponding operating fee as the Project is completed.

Owner agrees to pay to City, in order to enable City to promote, protect, and enhance the healthy, safety, and welfare of the community and its residents and its quality of life, the greater of the following monthly fees (1) or (2):

1) a monthly operating fee of [.42 x total square foot of the "Premises"] until Owner is operating on the Premises, and selling product under its City Regulatory Permit and State Regulatory Permit. Once Owner is

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operational and generating revenue, the monthly operating fee is [.42 x total square foot of "Production Space"];

or,
2) a monthly operating fee(s) of:
2% of Gross Receipts for operations from the Cannabis
Manufacturing Permit on the Premises.

Facilities with multiple licenses must not commingle respective sales proceeds, and blend percentage rate of Gross Receipts.

[_______________] If initialed here by the City Manager, Operating Fees shall begin to accrue ninety (90) days after the end of month of the Effective Date of this Agreement. Otherwise, Operating fees shall begin to accrue in the month of the Effective Date of this Agreement. The operating fee shall be due and payable on the 10th day of each calendar month through-out the term of this Agreement.

Failure to pay the fee within thirty (30) days after the due date shall result in a penalty for nonpayment in a sum equal to 25% of the total amount due.

Additional penalties will be assessed in the following manner: 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 on the due date.
d. Owner understands and agrees that the fees set forth above shall be paid in a manner and in accordance with a payment schedule set or modified by City.

The cultivation, manufacturing, testing, distribution, and delivery space to which the fee applies is as identified on the attached floor plan. e. If Owner makes any changes to the interior layout of the facility that increases the amount of space allocated to those uses to which the per-squarefoot fee applies, Owner shall notify City of such changes at least fourteen (14) calendar days prior to making such changes, and the per-square-foot fee shall be modified accordingly. If Owner fails to give City notice as required herein, Owner shall be responsible for paying to City a per-square-foot fee based on any increase in the amount of space allocated to those uses to which the per-squarefoot fee applies retroactive to the date the Regulatory Permit became effective.

8. Cost Recovery Fee

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City shall assess to Owner fees to recover City’s reasonable processing and monitoring costs relating to Owner’s business upon issuance of Owner’s Manufacturing, Cultivation, Testing, Delivery, and Distribution Permits or any Additional Permits (hereinafter “CRF”). CRFs are separate and apart from any operating fees set forth in Article 7
a. Processing Fees. Processing fees for the Application are based upon the direct and indirect costs that City incurs in reviewing the Application. The processing fees for the Application shall be based only on costs that are necessary for processing the Application and implementing the Ordinance, including staff time, legal fees, and consultant fees. “Necessary for” means that but for the Application, the costs would not have been incurred. The processing fee shall not include costs for other City management objectives, unless they are necessary for processing the Application.
b. Monitoring Fees. Monitoring fees for the Manufacturing, Cultivation and Distribution Permits are based upon the direct and indirect costs City incurs in confirming the use of the Property in accordance with the municipal code, the Ordinance, this Agreement, and the Application. The monitoring fees shall be based only on costs that are necessary for conducting these reviews. “Necessary for” means that but for the Manufacturing, Distribution, Testing, Delivery and Cultivation Permits, or any Additional Permits, the costs would not have been incurred. The monitoring fee shall not include costs for other City management objectives, unless they are necessary for monitoring the permitted activities. c. Billing and Payment. The City may elect to bill the Owner the Initial CRF on the first day of the month following the Effective Date of this Agreement.

Thereafter, City shall bill Owner the CRF on the first day of each Quarter with an invoice providing the time spent by City and its representatives. Owner shall pay the CRF invoice within thirty (30) days of the date the bill for the CRF is received by Owner.
d. Disputes If Owner disagrees with the dollar amount provided by City on the CRF invoice, Owner may submit a written request before the disputed fee is due for a substitution of alternative CRF invoice to the City Manager. The written request must include supporting documentation. After review of Owner’s written request, Owner and City shall work, in good faith to resolve Owner’s written request. The dispute shall be decided in favor of Owner if City does not respond to the written request within thirty (30) days of actual receipt.

9. Additional Owner Obligations
a. Reporting of Gross Receipts from Operations

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1) Quarterly Receipts. No later than [For example, January 15, 2018], and every three months thereafter (i.e., April 15, July 15, October, and January 15 of each subsequent year), Owner shall deliver to City a report (the “Quarterly Report”) showing (i) Gross Receipts from operations for the immediate prior three months received by Owner, and a cumulative total of all amounts of Gross Receipts from Operations received by Owner for the calendar year, (ii) a calculation of the quarterly payment due to City for the prior three months, and (iii) a calculation of the cumulative total of all quarterly payments for the calendar year.
2) Statement of Receipts/Annual Audit. The Owner shall keep complete, accurate and appropriate books and records of all receipts from operations in accordance with generally accepted accounting principles.

For purposes herein, “books and records” shall mean all bookkeeping or accounting documents Owner typically utilizes in managing its business operations relating to the Project. Such books and records, as well as all other relevant documents as the City Manager may reasonably require, shall, upon reasonable written notice, be open for inspection by City, its auditors or other authorized representatives. If at any time during the term such books and records prove inadequate in the reasonable judgment of City to record the Gross Receipts from Operations as herein required, Owner shall, upon the written request of the City, procure and maintain such books and records as shall be of a character and from adequate for such purpose. City shall have the right to audit and examine such books, records and documents and other relevant items in the possession of Owner, on no less than an annual basis, or at any time upon reasonable request by the City, to the extent necessary for a proper determination of Gross Receipts from Operations, and all such books, records, documents and other items shall be held available for such audit and examination.

The City’s audit shall be performed by a non-contingency fee independent auditor approved in advance by the City. Upon request by City, Owner shall make all such books, records and documents available to the City Manager, his designee, or to the City approved auditor, and provide removable copies thereof, within thirty (30) of the date of City’s request.

Owner shall pay all costs of such audits. Owner shall preserve such books, records, documents, and other items in Cudahy for a period of not less than one (1) years for the purpose of auditing or re-auditing these accounts upon reasonable notice; except that, if an audit is made within the seven-year period and Owner claims that errors or omissions have occurred, the books and records shall be retained and made available until those matters are resolved. City shall keep strictly confidential all statements of revenue furnished by Owner and all other information

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concerning Owner’s operation of the Premises obtained by City as a result of the inspection audit and examination privileges of City hereunder, except as otherwise required by law. If City receives a request for such information pursuant to the Public Records Act (California Government Code Section 6250, et seq.), City shall provide Owner notice of any such request prior to disclosing any such information and afford Owner the opportunity to obtain a protective order. Within seven (7) years after the receipt of any statement of receipts under this Agreement, City at any time shall be entitled to carry out an audit of such revenue either by City or agent to be designated by City. If it shall be determined as a result of such audit that there has been a deficiency in any payment due under this Agreement made on the basis of such statement, then such deficiency shall become immediately due and payable within thirty (30) days of such determination.
1) Copies of Tax Filings. Owner shall provide the City with courtesy copies of each and every report Owner is required to provide to the County of Los Angeles or the State of California for sales, use, or other tax purposes at the time such filings are made.
b. Future Revenue Mechanisms. During the term of this Agreement, if the City imposes (by Citizen Initiative or otherwise) an alternative revenue mechanism specifically related to cannabis operations (e.g., a cannabis tax), Owner agrees to renegotiate in good faith the terms of this Development Agreement with the City so as to comply with an alternative revenue mechanism.

As used in this section, “alternative revenue mechanism” does not include taxes, fees, or assessments levied on or collected from both medicinal cannabis and non-cannabis operations.

10. Insurance and Indemnity

a. Insurance. Owner shall require all persons doing work on the Project, including its contractors and subcontractors (collectively, “Owner” for purposes of this Article 6 only), to obtain and maintain insurance of the types and in the amounts described in this section and its subsections with carriers reasonably satisfactory to City.
b. General Liability Insurance. Owner shall maintain commercial general liability insurance or equivalent form with a limit of not less than Two Million Dollars ($2,000,000) (or as otherwise approved, in writing, by City) per claim and Two Million Dollars ($2,000,000) each occurrence. Such insurance shall also:

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1) Name City, its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives as “Additional Insureds” by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed additional insured.
2) Be primary with respect to any insurance of self-insurance programs covering City, its officials, employees, agents, and representatives. 3) Contain standard separation of insured provisions.
c. Automotive Liability Insurance. Owner shall maintain business automobile liability insurance or equivalent form with a limit of not less than Two Million Dollars ($2,000,000) for each accident for the vehicles Owner operates in connection with its cannabis business. Such insurance shall include coverage for owned, hired, and non-owned automobiles. Such insurance shall also:
1) Name City, and work in good faith with the City and the insurers to name additional insureds as deemed reasonably necessary. “Additional Insureds” by endorsement with respect to performance of this Agreement.

The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed additional insureds; 2) Be primary with respect to any insurance or self-insurance programs covering City, its officials, employees, agents, and representatives; 3) Contain standard separation of insured provisions.
d. Workers’ Compensation Insurance. Owner shall take out and maintain during the term of this Agreement, workers’ compensation insurance for all of Owner’s employees employed at or on the Project, and in the event any of the work is subcontracted, Owner shall require any general contractor or subcontractor similarly to provide workers’ compensation insurance for such contractor’s or subcontractor’s employees, unless such employees are covered by the protection afforded by Owner. In case any class of employee engaged in work on the Project is not protected under any workers’ compensation law, Owner shall provide and shall cause each contractor and subcontractor to provide adequate insurance for the protection of employees not otherwise protected. Owner hereby indemnifies City for any damage resulting from failure of Owner, its agents, employees, contractors, or subcontractors to take out or maintain such insurance. Workers’ compensation insurance with statutory limits

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and employer’s liability insurance with limits of not less than One Million Dollars ($1,000,000) each accident shall be maintained.
e. Other Insurance Requirements. Owner shall do all of the following:
1) Prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance that clearly evidenced all insurance required in this Article, including evidenced that such insurance will not be canceled, allowed to expire, or be materially reduced in coverage without thirty (30) days prior written notice to City. 2) Provide to City, upon request, and within seven (7) calendar days of said request, certified copies of endorsements and policies, and properly executed certificates of insurance evidencing the insurance required herein.
3) Replace or require the replacement of certificates, policies and endorsements for any insurance required herein expiring prior the termination of this Agreement.
4) Maintain all insurance required herein from the Effective Date of this Agreement to the earlier of the expiration of the term or the mutual written termination of this Agreement.
5) Place all insurance required herein with insurers licensed to do business in California with a current Best’s Key Rating Guide reasonably acceptable to City.
f. Indemnity. Owner agrees to indemnify, defend, and hold City, and its elected and appointed council, boards, commissions, officers, agents, employees, contractors, consultants and representatives, harmless from any and all claims costs and liability for any personal injury or property damage which may arise as a result of any actions or negligent omissions by Owner or Owner’s contractors, subcontractors, agents, or employees in connection with the construction, improvement, or operation of the Project.

11. Termination
a. Termination Upon End of Term. This Agreement shall terminate upon the expiration of the term, unless it is terminated earlier pursuant to the terms of this Agreement. Upon termination of this Agreement, City shall record a notice of

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such termination and this Agreement shall be of no further force or effect except as otherwise set forth in this Agreement.
b. Effect of Termination on Owner’s Obligations. Termination of this Agreement shall eliminate any further obligation of Owner to comply with this Agreement, or some portion thereof, if such termination relates to only part of the Site or Project. Termination of this Agreement, in whole or in part, shall not, however, eliminate the rights of Owner to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination.
c. Effect of Termination on City’s Obligations. Termination of this Agreement shall eliminate any further obligation of City to comply with this Agreement, or some portion thereof. Termination of this Agreement shall not, however, eliminate the rights of City to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination. d. Survival After Termination. The rights and obligations of the Parties set forth in Article 15, Article 21, and Section 23(e), Section 23(f), and Section 23(h), and any right or obligation of the Parties in this Agreement which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination.

12. Resources Efficiency
Owner shall endeavor to reduce its environmental impact when possible. The design of the facility shall include reasonable water and energy conservation measures in accordance with applicable State regulations.

13. Standard Conditions for Construction
During any on-site construction activities related to development of the project site and any buildings thereon, or renovation or remodeling of existing buildings, Owner shall comply with all applicable terms and conditions of City’s Standard Conditions for Construction, attached hereto and incorporated herein by reference as Exhibit F. The Project shall comply with the applicable parking standards established by the City for cannabis activities.

14. Defaults and Remedies
a. Remedies in general. It is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages under this

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Agreement, or with respect to this Agreement or the application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure to delay by either party to perform any term or provision of this Agreement beyond a reasonable notice and cure period shall constitute a default. In the event of alleged default or breach of any terms or conditions of this Agreement, the party alleging such default or breach shall give the other party not less than thirty (30) day notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured during any such thirty (30) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings.

Notwithstanding the foregoing to the contrary, if the alleged default is of such a nature that it cannot be cured within thirty (30) days, the alleged defaulting party shall not be deemed in default as long as such party commences to cure such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion.

After notice and expiration of the thirty (30) day period, the other party to this Agreement, at its option, may institute legal proceedings pursuant to this Agreement.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that City shall not be liable in monetary damages, unless expressly provided for this Agreement, to Owner, to any mortgagee or lender, or to any successors in interest of Owner or mortgagee or lender, or to any other person, and Owner covenants on behalf of itself and all successors in interest to the Property or any portion thereof, not to sue for damages or claim any damages. 1) For any breach of this Agreement or for any cause of action which arises out of this Agreement; or
2) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this Agreement, including, without limitation, any impairment or restriction which Owner characterizes as a regulatory taking or inverse condemnation; or
3) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.

Nothing contained herein shall modify or abridge Owner’s rights or remedies (including its rights for damages, if any) resulting from the exercise by City of its

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power of eminent domain. Nothing contained herein shall modify or abridge Owner’s rights or remedies (including its rights for damages, if any) resulting from bad faith intentional acts, the grossly negligent or malicious acts of City and its officials, officers, agents and employees. Nothing herein shall modify or abridge any defenses or immunities available to City and its employees pursuant to the Government Liability Act and all other applicable statutes and decisional law.

Except as set forth in the preceding paragraph relating to eminent domain, Owner’s remedies shall be limited to those set forth in this Section 14(a), Section 14(b), and Section 14(c).

Notwithstanding anything to the contrary contained herein, City covenants as provided in Civil Code Section 3300 not to sue for or claim any consequential damages or, in the event all or a portion of the Property is not developed, for lost profits or revenues which would have accrued to City as a result of the development of the Property.
b. Specific Performance. The parties acknowledge that money damages and remedies at law are inadequate, and specific performance and other nonmonetary relief are particularly appropriate remedies for the enforcement of this Agreement and should be available to all parties for the following reasons:
1) Except as provided in Sections 14(a) and 14(e), money damages are unavailable against City as provided in Section 14(a) above. 2) Due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, Owner may be foreclosed from other choices it may have had to use the Property or portions thereof. Owner has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate Owner for such efforts; the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis.
c. Release. Except for those remedies set forth in Sections 14(a), 14(b), and 14(c), Owner, for itself, its successors and assignees, hereby releases City, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present

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or future, based or asserted, pursuant to Article 1, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon City because it entered into this Agreement or because of the terms of this Agreement.

Owner acknowledges that it may have suffered, or may suffer, damages and other injuries that are unknown to it, or unknowable to it, at the time of its execution of this Agreement. Such fact notwithstanding, Owner agrees that the release provided in this Section 14(c) shall apply to such unknown or unknowable claims and damages. Without limiting the generality of the foregoing, Owner acknowledges the provisions of California Civil Code Section 1542, which provide:
“A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
Owner hereby waives, to the maximum legal extent, the provisions of California Civil Code Section 1542 and all other statutes and judicial decisions of similar effect.

Owners’ Initials
d. Termination of Agreement for Default of City. Owner may terminate this Agreement in the event of a default by City in the performance of a material term of this Agreement and only after providing written notice to City of default setting forth the nature of the default and the actions, if any, required by City to cure such default and, where the default can be cured, City has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default.

Notwithstanding anything to the contrary, in the event that Owner deem it is necessary and/or advisable to cease operations in Cudahy, then Owner may terminate this Agreement, and such termination shall be effective upon the date of written notice to the City.

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e. Attorneys’ Fees and Costs. In any action or proceeding between City and Owner brought to interpret or enforce this Agreement, or which in any way arises out of the existence of this Agreement or is based upon any term or provision contained herein, the “prevailing party” in such action or proceeding shall be entitled to recover from the non-prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this Agreement, the prevailing party’s reasonable attorneys’ fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 14(e) include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding.
f. Owner Default. No building permit shall be issued or building permit application accepted for any structure on the Property after Owner is determined by City to be in default of the terms and conditions of this Agreement until such default thereafter is cured by Owner or is waived by City. If City terminates this Agreement because of Owner’s default, then City shall retain any and all benefits, including money or land received by City hereunder.

15. Third Party Litigation
a. General Plan Litigation. City has determined that this Agreement is consistent with its General Plan. Owner has reviewed the General Plan and concurs with City’s determination.

City shall have no liability under this Agreement or otherwise for any failure of City to perform under this Agreement, or for the inability of Owner to develop the Property as contemplated by the Agreement, which failure to perform or inability to develop is as the result of a judicial determination that the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law, or that this Agreement or any of City’s actions in adopting it were invalid, inadequate, or not in compliance with the law.
b. Hold Harmless Agreement. Owner hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, attorney's, contractors, consultants and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Owner or Owner’s contractors, subcontractors, agents, or employees’ operations under this Agreement, whether

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such operations be by Owner, or by any of Owner’s contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Owner, or by any of Owner’s contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Owner or any of Owner’s contractors or subcontractors. Owner agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations. c. Indemnification. Owner shall defend, indemnify, and hold harmless City and its elective and appointive boards, commissions, officers, agents, attorney's, contractors, consultants and employees against and from any and all liabilities, demands, claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys’ fees), which any or all of them may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this Agreement and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; (iii) any claims based on or alleging inverse condemnation by any person or entity with an interest in the Property; and (iv) the proceedings undertaken in connection with the adoption or approval of any of the above. In the event of any legal or equitable action or other proceeding instituted by any third party (including a governmental entity or official) challenging the validity of any provision of this Agreement or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding. Notwithstanding the above, City, at is sole option, may tender the complete defense of any third-party challenge as described herein. In the event City elects to contract with special counsel to provide for such a defense, City shall meet and confer with Owner regarding the selection of counsel, and Owner shall pay all costs related to retention of such counsel. d. Environmental Contamination. Owner shall indemnify and hold City, its elective and appointive boards, commissions, officers, agents, attorney's, contractors, consultants and employees free and harmless from any liability, based or asserted, upon any act or omission of Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors, excepting and acts or omissions of City as successor to any portions of the Property dedicated or transferred to City by Owner, for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property,

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including, but not limited to, soil and groundwater conditions, and Owner shall defend, at its expense, including attorneys’ fees, City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. City may in its discretion participate in the defense of any such claim, action or proceeding.

The provisions of this Section 15(d) do not apply to environmental conditions that predate Owner’s ownership or control of the Property or applicable portion; provided, however, that the foregoing limitation shall not operate to bar, limit or modify any of Owner’s statutory or equitable obligations as an owner or seller of the Property.
e. City to Approve Counsel. With respect to Sections 15(a) through 15(d), City reserves the right to approve the attorney(s) which Owner selects, hires or otherwise engages to defend City hereunder, which approval shall not be unreasonably withheld.
f. Accept Reasonable Good Faith Settlement. With respect to Article 15, City shall not reject any reasonable good faith settlement. If City does reject a reasonable, good faith settlement that is acceptable to Owner, Owner may enter into a settlement of the action, as it relates to Owner, and City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgment rendered in connection with such action. This Section 15(f) applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. Owner and City expressly agree that this Section 15(f) does not apply to any settlement that requires an exercise of City’s police powers, limits City’s exercise of its police powers, or affects the conduct of City’s municipal operations. g. Survival. The provisions of Sections 15(a) through 15(f) inclusive, shall survive the termination or expiration of the Agreement.

16. California Environmental Quality Act
Owner shall reimburse City for any and all costs incurred by City related to project review under the California Environmental Quality Act (CEQA), Public Resources Code, §§21000-21189.3, and the Guidelines for California Environmental Quality Act, California Code of Regulations, Title 14, §§15000-15387. If reasonably requested by City, Owner shall conduct and pay for any required CEQA reviews and analyses. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines

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Section 15301 – Existing Facilities. This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301.

17. Rules, Regulations, and Official Policies
Except as otherwise provided in this Agreement, the rules, regulations, and official policies of City governing permitted uses of the land, governing density, and governing the design, improvements, and construction standards and specifications applicable to the development of the Project subject of this Agreement, shall be those rules, regulations, and official policies of City in force at the time of the execution of this Agreement. This Agreement does not prevent City, in subsequent actions applicable to the property, from applying new rules, regulations, and policies which do not conflict with those rules, regulations, and policies applicable to the property as set forth herein, nor does this Agreement prevent City from denying or conditionally approving any subsequent development project application based on such existing or new rules, regulations, or policies.

18. Regulatory Permit Conditions of Approval
Owner shall comply with all conditions of approval of the Regulatory Permit approved by City Council.

19. Periodic Reviews
This Agreement shall be subject to annual review. Owner and Landlord executing this Agreement, or successor in interest thereto, shall demonstrate good faith compliance with the terms of this Agreement. If, as a result of such periodic review, City finds and determines, based on substantial evidence, that Owner or Landlord executing this Agreement, or successor in interest thereto, has not complied in good faith with the terms or conditions of this Agreement, City may terminate or modify this Agreement (except no modification shall increase Owner’s liability nor reduce Owner’s rights), provided that City shall first provide Owner notice of its intent to terminate, with a detailed explanation as to why, and provide Owner the reasonable right to cure the same.
a. Periodic Review. City Council shall review this Agreement annually, on or before each anniversary of the Effective Date, in order to ascertain Owner’s good faith compliance with this Agreement. During the periodic review Owner shall be required to demonstrate good faith compliance with the terms of the Agreement, through submitting an annual monitoring report, records, or equivalent written materials to the Planning Department. The Planning Department will schedule a hearing on the periodic review of the Development Agreement on or following the

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anniversary of the Effective Date, but Owner has no obligation to compel such hearing, and no implication will be made to Owner’s detriment if a hearing is not in fact held. Owner shall document any request for an extension of the term due to delays beyond the control of Owner (see Section 23(j), “Force Majeure”).

Owner shall submit an annual review and administration fee deposit not to exceed City’s estimated internal and third-party costs associated with the review and administration of this Agreement during the succeeding year, consistent with Section 23(k) (“Deposit with City”) below. City shall provide Owner said estimate a reasonable time in advance of the annual review and administration fee deposit being due.
b. Conditional Use Permit. For all intents and purposes, the Regulatory Permit to be issued under this Agreement shall be treated as if it were a Conditional Use Permit issued to Owner for the establishment and operation of its business. The operation of the business at all times shall be required to comply with the terms of this Agreement.
c. Special Review. City Council may order a special review of compliance with this Agreement at any time. The Planning Director or his or her designee shall conduct such special review. During a special review, Owner shall be required to demonstrate good faith compliance with the terms of the Agreement.

The burden of proof on this issue shall be on Owner.
d. Review Hearing. At the time and place set for the review hearing, Owner shall be given an opportunity to be heard. If City Council finds, based upon substantial evidence, that Owner has not complied in good faith with the terms or conditions of this Agreement, City Council may terminate this Agreement notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of City. The decision of City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5. e. Certificate of Agreement Compliance. If, after a periodic or special review, Owner is found to be in compliance with this Agreement, and if Owner requests it, City shall issue a Certificate of Agreement Compliance (“Certificate”) to Owner stating that after the most recent periodic or special review, and based upon the information known or made known to the Planning Director and City Council, that (i) this Agreement remains in effect and (ii) Owner is not in default.

City shall not be bound by a Certificate if a default existed at the time of the periodic or special review, but was concealed from or otherwise not known to the

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Planning Director and City Council, regardless of whether the Certificate is relied upon by assignees or other transferees or Owner.
f. Failure to Conduct Review. City’s failure to conduct a periodic review of this Agreement shall not constitute a breach of this Agreement. g. Cost of Review. The costs incurred by City in connection with the periodic reviews shall be borne by Owner.

20. Assignment
Assignment by Owner. Owner shall not transfer, delegate, sublet or assign its interest, rights, duties, and obligations under this Agreement without the prior written consent of City, which consent shall not be unreasonably withheld. Owner shall submit a transfer application to the City Manager or City Manager's designee and pay any applicable transfer fee. The proposed transferee must show proof of lawful transfer of possession of the applicable location as may be acceptable to the City. Owner is aware it mayy take the City approximately six (6) months to process a transfer application.

Any assignment, delegation, subletting or assignment without the prior written consent of City shall be null and void. Any transfer, delegation, subletting or assignment by Owner as authorized herein shall be effective only if and upon the party to whom such transfer, delegation, subletting or assignment is made is issued a Regulatory Permit as required under Section 5.20.070(i) of the municipal code.

21. Operating Commercial Cannabis Facility
Any party to this Agreement, or successor in interest thereto, shall not operate a commercial cannabis facility authorized under the municipal code unless:
a. It is the holder of a valid Regulatory Permit issued by City in accordance with the procedures and requirement of 5.20.110 [Medicinal Cannabis Products Manufacturing]; of the municipal code; and,
b. At such time as the State of California requires commercial cannabis facilities and businesses to hold a valid license or permit issued by the State of California, it also holds such license or permit, unless, however, such permit or license is not required by the State of California for the type of commercial cannabis facility or business operation that is the subject of this Agreement.

22. Notice

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Any notice or communication required hereunder between City and Owner must be in writing, and may be given either personally, by registered or certified mail (return receipt requested), or by Federal Express, UPS or other similar couriers providing overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on a receipt issued by the courier. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at their addresses set forth below:

If to City: City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Attention: City Clerk
and Special Counsel, Glenn Ward Calsada, Esq.

Law Offices of Glenn Ward Calsada
23283 Ventura Boulevard
Woodland Hills, CA 91364
If to Owner: Aqua Tergere, LLC
8208 Atlantic Avenue
Cudahy, CA. 90201
If to Landlord: Vladimir Calderon
P.O. Box 2637
Downey, CA 90242

With a courtesy copy to:

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23. Miscellaneous Provisions
a. Amendment or Cancellation. This Agreement may be amended, or canceled in whole or in part, only by the written mutual consent of the parties to this Agreement or their successors in interest, except that minor amendments that do not affect a substantive provision of this Agreement may be approved by the City Manager on behalf of the City. The decision whether a proposed amendment is “minor” shall be in the exclusive discretion of the City Manager. b. Waiver. Waiver by City of any one or more of the terms or conditions of this Agreement shall not be construed as waiver of any other term or condition under this Agreement.
c. Enforcement/Reserved Powers. Unless amended or canceled pursuant hereto, this Agreement shall be enforceable by any party hereto, or successor in interest thereto, notwithstanding any subsequent change in any applicable general or specific plan, zoning, subdivision or building regulation, or municipal code amendment adopted by City that conflicts with the terms of this Agreement.

However, this Agreement is subject to the City's "Reserved Powers." For purposes of this Agreement, "Reserved Powers" means the rights and authority excepted from this Agreement's restrictions on the City's police powers and which are instead reserved to the City. The Reserved Powers include the powers to enact regulations or take future discretionary actions after the Effective Date of this Agreement that: (1) are necessary to protect the public health and safety, and are generally applicable on a City-wide basis (except in the event of natural disasters as found by the City Council such as floods, earthquakes and similar acts of God); (2) are amendments to California Marijuana Laws or California Uniform Codes, as adopted by the City of Cudahy, and/or the Cudahy Municipal Code, as applicable, regarding the construction, engineering and design standards for private and public improvements to be constructed on the Site; (3) are necessary to comply with state or federal laws and regulations; or (4) involve sign and parking ordinances and guidelines, changes to the Overlay Zone, Specific Plan or the City's General Plan, whether adopted previous or subsequent to the Effective Date of this Agreement).

If any City ordinance, rule or regulation or addition to the Cudahy Municipal Code is enacted or imposed by a citizen-sponsored initiative or referendum after the Effective Date that would conflict with this Agreement or an associated Regulatory Permit, business license or other authorizations and City approvals, or reduce development rights or assurances provided to the Owner in this Agreement, then such changes, additions or deletions to the Cudahy Municipal Code shall not be applied to the Site or Project; provided, however, the

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parties acknowledge that the City's approval of this Agreement is a legislative action subject to referendum. 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.

Notwithstanding anything to the contrary in this Agreement, site improvements contemplated by this Agreement shall be completed pursuant to the development standards and design guidelines to be adopted by the zoning code amendment.
d. Joint and Several Liability. Owner shall be jointly and severally liable for any amount due under this Agreement, and any breach of this Agreement or failure to pay by one Party shall also constitute a breach of this Agreement by the other Party.
e. Severability. If any part of this Agreement is found to conflict with applicable state laws or regulations, such part shall be inoperative, null, and void insofar as it conflicts with said laws or regulations, or modified or suspended as may be necessary to comply with such state laws or regulations, but the remainder of this Agreement shall continue to be in full force and effect. f. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual, facsimile, or electronic signature.
g. Jurisdiction. The law governing this Agreement shall be that of the State of California. Any suit brought by any party against any other party arising out of the performance of this Agreement or the breach, termination, enforcement, interpretation or validity thereof, shall be filed and maintained in the County of Los Angeles Superior Court.
h. Disclaimer. Despite California’s commercial cannabis laws and the terms and conditions of this Agreement, any Conditional Use Permit, or any Regulatory Permit issued pertaining to Owner or the property specified herein, California commercial cannabis cultivators, transporters, distributors, or possessors may still be subject to arrest by state or federal officers and prosecuted under state or federal law. The Federal Controlled Substances Act, 21 USC § 801, prohibits the manufacture, distribution, and possession of cannabis without any exemptions for medical use.

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i. Force Majeure. If delays are caused by unforeseen events beyond the control of Owner, such delays will entitle Owner 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 City hereunder, which Force Majeure event substantially interferes with the development, construction or operation of the Project.
j. Costs and Fees. Intentionally omitted.
k. Constructive Notice and Acceptance. Every person who after the Effective Date and recording of this Agreement owns or acquires any right, title, or interest to any portion of the Site, is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Site, and all rights and interests of such person in the Site shall be subject to the terms, requirements, and provisions of this Agreement.
l. Binding Effect of Agreement. The Parties agree that the Recitals above are true and correct and intend to be bound by same. Except as otherwise provided, the burdens of this Agreement are binding upon, and the benefits of this Agreement inure to, all authorized successors-in-interest of the Parties and constitute covenants which run with the Site. In order to provide constructive notice thereof, the City Clerk will record this Agreement with the Los Angeles County Recorder within the period required by Government Code Section 65868.5.
m. Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between the City and the Owner is that of a government entity regulating the development of private property and the owner of such property.
n. Changes to Project. The parties acknowledge 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. This Agreement shall not prevent the City from applying, with the consent or at the request of the

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Owner, Subsequent Land Use Regulations or Subsequent Development Approvals that do not directly conflict with the Project, Site or Development Plan authorized under this Agreement. The granting of one such change or request shall not obligate the City to grant other similar changes or requests. As used herein, “Subsequent Development Approvals” include, without limitation, all excavation, grading, building, construction, demolition, encroachment or street improvement permits, occupancy certificates, utility connection authorizations, or other non-discretionary permits or approvals necessary, convenient or appropriate for the Project. As used herein, “Subsequent Land Use Regulations” means ordinances, resolutions and codes adopted or approved by the City after the Effective Date of this Agreement governing the development and use of the land, including general plan amendments, zone changes, variances or conditional use permits affecting the permitted use of the land including density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions of reservation or Dedication of land for public purposes, and the design, improvement and construction and initial occupancy standards and specifications applicable to the Development of the Property. o. Conflicting Federal or State Rules. In the event that any conflicting federal or state laws or regulations, enacted after the Effective Date, prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, this Agreement shall remain in full force and effect as to those provisions not affected; and (i) Notice of Conflict. Either party, upon learning of any such matter, will provide the other party with written notice thereof and provide a copy of any such law, regulation or policy together with a statement of how any such matter conflicts with the provisions of this Agreement; and (ii) Modification Conferences. The parties shall, within thirty (30) days of the notice referenced to in the preceding subsection, meet and confer in good faith and attempt to modify this Agreement to bring it into compliance with any such federal or state law or regulation.
(iii) City Council Hearings. In the event the City believes that an amendment to this Agreement is necessary due to the effect of any federal or state law or regulation, the proposed amendment shall be scheduled for hearing before the City Council. The City Council shall determine the exact nature of the amendment necessitated by such federal or state law or regulation. Owner shall have the right to offer oral and written testimony at the hearing. Any modification ordered by the City Council pursuant to such hearing is subject to judicial review in accordance with California law.

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(iv) City Cooperation. The City shall cooperate with Owner 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. As required by this Agreement, Owner shall be responsible to pay all applicable fees in connection with securing of such permits, licenses or other authorizations.
p. Effective Date. “Effective Date” means the date on which all of the following are true: (i) thirty (30) days have elapsed since the second reading of the Ordinance adopting and approving this Development Agreement and (ii) all Exhibits to this Agreement are finalized, executed and notarized by all affected parties (if applicable) and attached hereto; provided, however, that if these conditions have not been fully satisfied by the Owner the Effective Date may not thereafter occur and this Agreement may not thereafter become effective.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

CITY OF CUDAHY Aqua Tergere, LLC
OWNER

Chris Garcia Name: Charles Arden
Mayor Title: Managing Member

OTHER PARTY

Name:

Title:

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APPROVED AS TO FORM:

Glenn Ward Calsada, Attorney at Law
Special Counsel for the City of Cudahy

EXHIBITS

A LEGAL DESCRIPTION

B PARCEL MAP

C LANDLORD CONSENT

D SITE AND FLOOR PLANS

E ADDITIONAL BUSINESS STANDARDS (IF APPLICABLE)

F STANDARDS AND CONDITIONS FOR CONSTRUCTION (IF APPLICABLE)

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EXHIBIT “A”

LEGAL DESCRIPTION

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APN: 6224-023-020
Los Angeles County
Calderon J Vladimir; Calderon Family Trust
8210 Atlantic Ave, Cudahy, CA 90201
Owner Information
Primary Owner: CALDERON J VLADIMIR;

CALDERON FAMILY TRUST
Secondary Owner:

Mail Address: PO BOX 2637
DOWNEY CA 90242
Site Address: 8210 ATLANTIC AVE
CUDAHY CA 90201
Assessor Parcel Number: 6224-023-020
Census Tract: 5343.01 Housing Tract Number: 180
Lot Number: 213,214 Page Grid: 705-E2
Legal description: Lot: 213,214 Tract No: 180 Abbreviated Description: LOT:213,214 TR#:180 TRACT NO 180 N 160 FT OF LOTS 213 AND LOT 214 IMP1=IND,432SF,YB:1955,1STY;IMP2=IND,2490SF,YB:1965,1STY.

Sale Information
Sale Date: Document #: Sale Amount: N/A
Seller: Sale Type: Cost/SF: N/A
Assessment & Tax Information
Assessed Value: $889,768 Land Value: $856,405 Imp. Value: $33,363 Homeowner
Exemption:
% Improvement: 3.75%
Tax Amount: $11,610.70 Tax Status: Current Tax Year: 2017 Tax Rate Area: 0-631 Tax Account ID:

Property Characteristics
Bedrooms: Year Built: 1965 Pool:

Bathrooms: Square Feet: 2,922 SF Lot Size: 33,623 SF
Partial Baths: Number of Units: 0 No of Stories: 1
Total Rooms: Garage: Fire Place:

Property Type: Industrial Building Style: Owner
Exclusions:

Use Code: Manufacturing (Light) Zoning: CUM2*
Aerial Map

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EXHIBIT “B”

PARCEL MAP

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EXHIBIT “C”

LANDLORD CONSENT

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EXHIBIT “D”

SITE AND FLOOR PLANS

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MAX. TRAVEL DISTANCE = 140'-0" MAX. TRAVEL DISTANCE = 149'-2" 2 3 4 5 6 7 8 ABCDEF 1 9 2 3 4 5 6 7 8 1 9 ABCDEF JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

ENGINEERS
3060 Saturn Street, Suite 250
Brea, CA 92821
Tel: (714) 940-0100
Fax: (714) 940-0700
www.infrastructure-engineers.com ARCHITECT / CIVIL ENG. CONSULTANT STAMP THIS DOCUMENT, WHICH CONCEPTS, DRAWINGS AND INCORPORATES THE DESIGN SPECIFICATIONS IS THE PROPERTY AND COPYRIGHT OF INFRASTRUCTURE ENGINEERS AND SHALL NOT BE USED IN WHOLE OR IN PART ON ANY OTHER WORK WITH INFRASTRUCTURE EXCEPT BY AGREEMENT CUDAHYGRO ENGINEERS. 4311 SANTA ANA STREET
CUDAHY, CA 90201
Fri, 17 Aug 2018 08/03/18 - CUP RESUPMITTAL A0.5
OCCUPANCY AND EGRESS PLAN A.D. SCALE: OCCUPANCY AND EGRESS PLAN A 1/8"= 1'-0" 716 SQ. FT DELIVERY OFFICE 132 SQ. FT OFFICE 143 SQ. FT JANITOR'S 37 SQ. FT CLOSET GOWNING ROOM 204 SQ. FT NURSERY 1153 SQ. FT 705 SQ. FT & LABELING PACKAGING VAULT 143 SQ. FT 490 SQ. FT RECEIVING SHIPPING & CULTIVATION 1460 SQ. FT EXTRACTION 424 SQ. FT 718 SQ. FT DRY / CURE TRIM 171 SQ. FT POST-PROCESSING 449 SQ. FT COMMERCIAL KITCHEN 885 SQ. FTSECURE 582 SQ. FT STORAGE59 SQ. FT STORAGE COLD SHOW ROOM 59 SQ. FT OFFICE 73 SQ. FT 65 SQ. FT SERVER SECURE VAULT 73 SQ. FT 632 SQ. FT DISTRIBUTION RECEPTION CULTIVATION 1008 SQ. FT UNISEX 112 SQ. FT RESTROOM UNISEX RESTROOM 64 SQ. FT ELECTRICAL ROOM 180 SQ. FT CORRIDOR 198 SQ. FT NURSERY EQUIPMENT YARD FERTIGATION ZONE / LEGEND RESTROOM SUMMARY MAXIMUM TRAVEL DISTANCE TO EXITS: OCCUPANCY & EXIT LEGEND OCCUPANT LOAD CALCULATIONS 456 SQ. FT BUILDING SECURITY FERTIGATION ROOM 128 SQ. FT

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SANTA ANA ST.

SALT LAKE AVE.

CL
CL JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

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JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

N LEGENDS SITE NOTES SCALE: ENLARGED SITE PLAN
B 1/16"= 1'-0"

N EXISTING BUILDING ADDITION EXISTING EXISTING ELECTRICAL ROOM BUILDING SECURITY

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2 3
4 5
6 7
8 ABC
D
E
F
1 9
2 3
4 5
6 7
8 1
9 ABC
D
E
F JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

N LEGENDS DEMOLITION FLOOR NOTES WALL LEGEND

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2 3
4 5
6 7
8 ABC
D
E
F
1 9
2 3
4 5
6 7
8 1
9 ABC
D
E
F JOB NO.: DRAWN BY: PA / PM: DATE REMARKS

INFRASTRUCTURE

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EXHIBIT “E”

ADDITIONAL BUSINESS STANDARDS
(IF APPLICABLE)

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EXHIBIT “F”

STANDARDS AND CONDITIONS FOR CONSTRUCTION
(IF APPLICABLE)

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ATTACHMENT P.

Notice of Delinquency dated
October 2, 2019

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ATTACHMENT Q.

Notice of Default dated
May 4, 2021

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CUDAHY
OP £ MINDS, OP!;N DOORS
5220 Santa Ana Street, Cudahy, California 90201 • Phone (323) 773-5143 • Fax (323) 771-2072

SENT VIA USPS CERTIFIED MAIL
May 4, 2021
Attn: Charles Arden, Managing Member
Aqua Tergere, LLC
8208 Atlantic Avenue
Cudahy, CA 90201
RE: 8210 Atlantic Avenue -Aqua Tegere, LLC
Development Agreement No. DA 18-011 C
Commercial Cannabis Permit No. CCP18-0011

NOTICE OF DEFAULT
Dear Aqua Tergere, LLC,
On September 17, 2018 the Planning Commission held a public hearing to consider CCP18-0011 for cannabis Manufacturing at 8210 Atlantic Avenue and did not approve CCP18-0011. On November 20, 2018 the City Council on appeal of Planning Commission decision approved Cannabis Development Agreement No. DA 18-011 C between the City of Cudahy and Aqua Tegere, LLC for cannabis Manufacturing.

The DA requires the annual Community Benefits Program (CBP) payment in the amount of $66,666.00, a Cost Recovery Payment (CRP), and Operating Fee (OF). On March 22, 2021, the City of Cudahy provided you with a summary statement of "Monthly Operating/Non-Operating Fees, CBP, and CRP Past Due" (See attached Statement). It has come to my attention that you are not in full compliance with your obligations under your Development Agreement No. DA 18- 011 C under Ordinance No. 697. Below is a summary of delinquent amounts due to the City.

FEE TYPE PAST DUE AMOUNTS CITY CODE
Community Benefit Program $ 146,000.76 CBP
Cost Recovery Fee $ 48,363.91 UBF
Non-Operating Fee $ 13,944.42 OPFEE
Total Due $ 208,309.09
If you believe this letter is in error, please contact myself or Steven Dobrenen, Finance Director at the phone number above or John Yonai with Tierra West Advisors (City's Consultant) at 323- 265-4400. If you do not contact us within 10 days, we will assume that you do not dispute the amounts demanded by this letter and we will proceed accordingly.

We realize that you do not want to jeopardize your Development Agreement with the City and your State Cannabis license. Therefore, pursuant to Section 14 Defaults and Remedies of the DA, we urge you to forward your payment, in the total amount noted above, no later than 30 DAYS FROM THE DATE OF THIS LETTER, so that further action will not be necessary. Repayment arrangements will only be considered by the City if requested in writing within this 10-day time

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period. There is no guaranty the requested repayment arrangement will be approved by the City.

Please consider this letter a final demand and declaration of default on your obligations under Development Agreement No. DA 18-011C. While in default, the City will take all necessary action to achieve compliance, including but not limited to, rejecting building applications, refusing the issuance of building permits for the subject property, or initiating the revocation process of your Commercial Cannabis Permit No. CCP 18-0011 (if applicable) and, if not timely cured, instituting legal proceedings to terminate your Development Agreement and notify the various applicable State licensing agencies, California Bureau of Cannabis Control.

Thank you and we look forward to your compliance.

Sincerely yours,
Henry Garcia, Acting City Manager
cc: Law Office of Glenn Ward Calsada
Sal Lopez, Director of Planning Community Development
Steven Dobrenen, Finance Director
Tierra West Advisors
Agua Tergere, LLC 912 E. 12 Street, Suite 191, Los Angeles, CA 90021 Mark G. Sanchez, 143 Maple Street, Salinas, CA 93901

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ATTACHMENT R.

Plan Check #440- Application and
Corrections

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ATTACHMENT S.

Inspection Report dated August 17, 2022

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ATTACHMENT T.

Red-Tag Letter dated September 13,
2022

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ATTACHMENT U.

Correspondence from V. Sanchez dated
September 21, 2022

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From: Aqua Tergere
To: Juan Arauz
Subject: Aqua Tergere
Date: Wednesday, September 21, 2022 12:11:52 AM
Hello Juan,
I am reaching out to thank you for taking the time today at the city hall to go over the red tag notices and suggestions to fix them. The situation Aqua Tergere LLC is going through is challenging and rocky but is not a lost cause. With an immediate action plan set forth to remedy the direction course we should be able to get this project back on track.

Originally Aqua Tergere had hired ARDEBILI BORUM CONSULTING ENGINEERS and MG ENGINEERING for the floor, mechanical, electrical, and plumbing plans. They had also hired Mat Rettig who originally was the correspondence between the city of Cudahy and Aqua T. To our understanding he had submitted all the plans, paid the fees, and picked up the plans and permits. We were told that the plans were approved on Nov 21, 2019, and that the waiver was picked up not long after. Unbeknownst to us, when they started construction, they did so at their own pace and led us to believe everything was in order. The third-party inspectors that were supposed to be coming often only did so for a brief time and then never returned back. It took about a year to do the work and then covid lockdowns hit. From that point forward, we had zero communication with anyone from their side, and left us to pick up the pieces. Now we are in this situation and are frantically trying to fix this before it’s a total loss.

Since we have spoken earlier today I have reached out to two local professional licensed Architects / Engineers to re-do the floor, mechanical, electrical, and plumbing plans and waiting for their response. As soon as I can get them engaged in the project, I will have them immediately start working on these corrections. We spoke about as-built plans today and am hoping that some of what is done can be permitted that way. I understand that it is not as easy as drawing plans and there are a lot more details and inspections that come with this idea. I will be emailing you often to keep you updated on progress and to ensure we are not doing anything incorrectly and following proper city protocol.

I am partly reaching out to see if I can get an extension to complete the list of corrections set forth last week. I will have these plans expedited but cannot guarantee they will be complete by midweek until I can get more information from the professionals. I will keep you updated on these plans as more information comes in.

Another reason I’m reaching out is to see about the possibility of Aqua T’s city development agreement being amended. One of my biggest concerns about the project is the fire sprinklers. If the fire department isn’t satisfied with chemical dry line sprinklers, they will ask us to install water sprinklers. And if that becomes the situation, we will have to dig a trench

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from our facility to the street, Atlantic Blvd. This is about 300 feet if not longer from the street to the facility. The cost of that could easily be over 250 thousand dollars to complete. I know this because I faced the same challenge in Baldwin Park when the water pressure wasn’t high enough to keep up with the fire department's standards so we had to dig a trench a quarter of the length and it was not cheap. So, I am asking you and the city if it is possible to explore the idea of amending the agreement to obtain a different license class type.

If Aqua T could amend and obtain a micro license with a type 6 or N manufacturing, type 11 distribution, and possibly type 9 (all negotiable). It would have a lot less code and compliance to get through to pass inspections costing a fraction of type 7 volatile license. Most importantly though, it would start generating revenue for the business and the city at a much faster rate than a stand-alone type 7 would take to pass all agencies and inspections. I bring this up not to backstep or quit, but because I know the time, cost and challenges it takes to complete a COO-compliant facility. Countless problems can arise when building such a facility, especially in a building as old as ours. The goal of this is to generate money for the city and the business as soon as possible. We would be able to do so with a micro license instead of type 7.

I can lay out an exact business plan if this were something you and the city were willing to discuss further.

My final reason for this letter is to discuss Aqua T’s diagram layout. According to the development agreement Aqua T has, we have the entire back parcel for our operations but our landlord has only allowed us access to about half of that parcel. This would give us the necessary space we need to open up operations even further. Ultimately leading to generating more revenue for the city and business. Between future employee parking, business vans, storage, security stations, security cars, and other necessary factors, we are already trying to squeeze a circle into a square peg. Is this something we can discuss further to see if any action can be taken? It isn’t a top priority but an issue that needs to be resolved. According to both the city development agreement and the original plans that were submitted, that space should be open to Aqua T for use.

Thank you again for giving us your time earlier and allowing us to right these wrongs, we do want to see the project complete and succeed as much as you.

Thanks Again,
Vince

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ATTACHMENT V.

Cannabis Deferment and Payment
Program dated December 7, 2023

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Page | 1

5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
December 7, 2022
Via U.S. Mail and Email:

Aqua Tergere, LLC
Attn: Charles Arden, Manager
912 E. 12Th Street #B STE 315
Los Angeles, CA 90021
Re: DA 18-019C for operator located at 8210 Atlantic Avenue Cudahy, CA 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:
x 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
x 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. x Payment agreement terms would be subject to the discretion of the City Manager as negotiated with each operator
x 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.

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Page | 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

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ATTACHMENT W.

Final Demand Letter dated
March 20, 2024

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Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councllmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
March 20, 2023
SENT VIA EMAIL: [email protected]
1 5T CLASS MAIL
Attn: Vince Sanchez
Dear Mr. Sanchez
CUDAHY
OP!;:N MINDS, OP!;:N DOORS
Incorporated November 10, 1960
RE: FINAL DEMAND
8210 Atlantic Avenue, City of Cudahy, CA -Aqua Tergere, LLC Development Agreement No. DA18-011C
Commercial Cannabis Permit No. 18-0011
�LLU .:)dllld 1-\lld .:)lft::t::L
Cudahy,CA,90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
On August 17, 2022, City of Cudahy staff, conducted a site inspection of property located at 8210 Atlantic Avenue. During this inspection, several violations of Building, Mechanical, Electrical, and Plumbing Codes were observed, including occupation of the building without a certificate of occupancy, rendering the structure unsafe for occupancy. As a result, the Building and Safety Division declared the structure, its use, and occupancy unsafe and dangerous, and the subject site was "red tagged".

The following is a list of violations observed by city staff on August 17, 2022:

Building Code:
-All construction completed inside the building was done without engineered drawings and has not completed any plan check procedures and thus no building permits for any work were obtained.
-All structurally insulated panel rooms were constructed without proper plan check approval and with no engineered drawings and without building permits. -Cannabis extraction room located inside building without permits, and without proper LA County Fire Department approval/plan check.

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ATTACHMENT X.

City Council Resolution No. 18-49

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RESOLUTION NO. 18-49

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF CUDAHY, CALIFORNIA,

APPROVING THE ISSUANCE OF COMMERCIAL
CANNABIS PERMIT NO. CCP 18-0011 TO AQUA

TERGERE, A CALIFORNIA LIMITED LIABILITY

COMPANY
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a property development agreement with any person having legal or equitable interest in real property for the development of such property in order to establish certain development rights; and
WHEREAS, in accordance with California law, the City of Cudahy has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreement with the City; and
WHEREAS, on September 11, 2017, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities (cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement; and
WHEREAS, all procedures of the California Environmental Quality Act ("CEQA"), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 - Existing Facilities. This.exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301; WHEREAS, on September 1 7, 2018, the City of Cudahy Planning Commission ("Planning Commission") conducted a properly noticed public hearing to consider approval of a Commercial Cannabis Permit [CCP] and Development Agreement No. DA#18-018C [AQUA TERGERE, LLC], at which testimony and evidence, both written and oral, were presented to and considered by the Planning Commission; and WHEREAS, by majority vote the members present, the Planning Commission, decided to deny a CCP for the Site and made a recommendation of disapproval of the Development Agreement; and

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Rcsollrtion No. 18-49

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WHEREAS, the Applicant(s) timely submitted a written notice of appeal to the City Clerk, accompanied by the required filing fee~, and including stated grounds for the appeal; and WHEREAS, the entire matter is properly before the City Council for independent consideration and de novo review; and
WHEREAS, the City Council may reverse, modify or affirm the Planning Commission decision, in whole or in part; and
WHEREAS, subsequent to receipt of the appeal of the Planning Commission's decision, the City Council conducted a properly noticed public hearing to consider the approval of a CCP and Development Agreement, at which testimony and evidence, both written and oral, were presented to and considered by the City Council; and WHEREAS, the City Council finds the Project is: consistent with the objectives, policies, general land uses and programs specified in the general plan, as amended; compatible with the uses authorized in the Overlay Zone; in conformity with good land use practices; will not be detrimental to the health, safety and general welfare of the City; and is in the best interest of the City of Cudahy and its residents.

NOW THEREFORFE, THE CITY COUNCIL OF THE CITY OF CUDAHY
DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:

SECTION 1. RECITALS
That the above Recitals are true and correct and are incorporated as though fully set forth herein.

SECTION 2. APPROVAL OF COMMERCIAL CANNABIS PERMIT
That the City Council hereby approves Commercial Cannabis Permit No. CCP 18- 0011, subject to the terms and conditions stated therein, to allow a Commercial Cannabis Facility for the Site located at: 8210 Atlantic Avenue, City of Cudahy, CA. A copy of the permit is attached hereto and incorporated herein by this reference as Exhibit "A." The Commercial Cannabis Permit shall be issued upon execution by the City of a Development Agreement for the Site.

SECTON 3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 6th day of November 2018. j

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Resolution No. 18-49

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ATTEST:

Richard Iglesi s
Deputy City rk

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 18-49 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 6th day of November, 2018, and that said Resolution was adopted by the following vote, to-wit:

A YES: Gonzalez, Hernandez, and Garcia
NOES: Sanchez
ABSTAIN: None
ABSENT: Markovich
~ Richard lglesi s
Deputy City

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Resolution No. I 8-49

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EXHIBIT II A"

COMMERCIAL CANNABIS PERMIT

SEE ATTACHMENT
[The Permit will be based upon the Staff Report with
Condition s of Approval and will be Issued in a Letter to Follow] j

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ATTACHMENT Y.

Email and Letter dated May 2, 2023, to
Operator

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From: Cecilia Madrigal
To: Aqua Tergere
Cc: Alfonso Noyola; Glenn Ward Calsada; Stephanie Arechiga; Juan Arauz; Jessica Guillen; Joshua Calhoun; Daniel Sanchez; [email protected]
Subject: RE: Aqua Tergere, LLC: 8210 Atlantic Avenue, FINAL DEMAND Letter Date: Tuesday, May 2, 2023 4:33:00 PM
Attachments: RE_5.2.2023_City Response to Email 4_24_23_AquaTergereLLC.pdf image002.png
Good afternoon,
Thank you for your email received on April 24, 2023, at 9:35 A.M. Please find the City’s formal response attached to this email.

If we do not hear back from you within ten (10) days, we will assume that Aqua Tergere, LLC has no intention to terminate its Development Agreement with the City and we will take all appropriate action against Aqua Tergere, LLC and its principals to protect the City’s interests.

Sincerely,
Cecilia Madrigal-Gonzalez
Senior Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323-773-5143 Ext. 252
www.cityofcudahy.com
From: Aqua Tergere <[email protected]>
Sent: Monday, April 24, 2023 9:35 AM
To: Jessica Guillen <[email protected]>
Cc: Cecilia Madrigal <[email protected]>; Juan Arauz <[email protected]>; [email protected]; Daniel Sanchez <[email protected]>; Joshua Calhoun <[email protected]>; [email protected]
Subject: Re: Aqua Tergere, LLC: 8210 Atlantic Avenue, FINAL DEMAND Letter Dear City of Cudahy,
It is with great regret that we inform you that we have officially shut down our

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project in your city. Unfortunately, our company has gone bankrupt, and we are no longer able to continue our operations.

As a result, we have returned the keys to the landlord, and the building lease has expired. We apologize for any inconvenience this may cause, and we hope that this does not cause any disruptions to the community.

We would also like to inform you that we are officially withdrawing our submission application. We understand the time and effort that the city has put into considering our proposal, and we are truly sorry that we are unable to move forward with the project.

Once again, we apologize for any inconvenience this may have caused, and we appreciate the support and understanding of the City of Cudahy throughout this process.

Sincerely,
Aqua Tergere, LLC
On Mon, Mar 20, 2023 at 3:39 PM Jessica Guillen <[email protected]> wrote:

Good afternoon,
Please find attached Final Demand Letter. Pursuant to the development agreement between the City and Aqua Tergere, you have 30 days from today to produce the items listed in the letter.

Should you have any questions on the contexts of the attachment, please let me know.

Thank you,
Jessica Guillen
Assistant Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143 ext. 229
www.cityofcudahy.com

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ATTACHMENT Z.

Letter from Operator received
May 18, 2023

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ATTACHMENT AA.

Notice of Termination Letter and
Attachments dated
August 22, 2023

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ATTACHMENT BB.

Email Correspondence dated
August 21, 2023

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From: Stephanie Arechiga
To: Aqua Tergere
Cc: Paloma McEvoy; Cecilia Madrigal; Glenn Ward Calsada; Jessica Guillen; Juan Arauz; Alfonso Noyola Subject: RE: AQUA TERGERE, LLC (8210 ATLANTIC AVE)
Date: Thursday, August 31, 2023 2:00:16 PM
Attachments: image001.png
Citys Letter to Aqua Tergere LLC.pdf
City acceptance of AQUA TERGERE"S Surrender of CCP and Termination of Development Agreement.pdf Memorandum of Termination of Aqua Tergere Development Agreement DA18-011C.pdf Good afternoon Charles,
The City is granting a two week extension through Friday, September 15, 2023 for Aqua Tergere, LLC to respond to the City of Cudahy’s letter dated August 22, 2023, attached for reference.

Thank you,
Stephanie A. Arechiga, Esq.

Associate Attorney

OLIVAREZ MADRUGA LAW ORGANIZATION, LLP
500 S GRAND AVE, 12TH FL, LOS ANGELES, CA 90071
TEL: 213.744.0099 • FAX: 213.744.0093
WWW.OMLOLAW.COM
Privileged and Confidential Communication
This e-mail message is intended only for the personal and confidential use of the designated recipients. This message may be an attorney-client communication, and as such is privileged and confidential. If the reader of this message is not an intended recipient, you are hereby notified that any review, use, dissemination, forwarding or copying of this message is strictly prohibited. Please notify us immediately by reply e-mail or telephone, and delete the original message and all attachments from your system.

From: Aqua Tergere <[email protected]>
Sent: Thursday, August 31, 2023 9:45 AM
To: Cecilia Madrigal <[email protected]>
Cc: Glenn Ward Calsada <[email protected]>; Jessica Guillen <[email protected]>; Stephanie Arechiga <[email protected]>; Juan Arauz <[email protected]>; Alfonso Noyola <[email protected]>
Subject: Re: AQUA TERGERE, LLC (8210 ATLANTIC AVE)
Dear Ms. Gonzales and Team,
I'm writing this email to inform you and the city of Cudahy that we have been attempting to reach council and they are unavailable until after the labor day holiday. We are requesting an extension up to and including September 15, 2023 to evaluate and respond to their correspondence.

Thank you,

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Charles Arden,
Aqua Teregere LLC
On Tue, Aug 22, 2023 at 1:56 PM Cecilia Madrigal <[email protected]> wrote:

Dear Mr. Arden,
Please find the attached letter from the City of Cudahy relating to the City’s acceptance of Aqua Tergere LLC (Suspended) to surrender their Cannabis Commercial Permit and termination of Development Agreement.

The documents enclosed must be signed, notarized, and returned no later than 10 days from the date of this letter.

Thank you,
Cecilia Madrigal-Gonzalez
Senior Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323-773-5143 Ext. 252
www.cityofcudahy.com

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ATTACHMENT CC.

Demolition Permit finaled
November 12, 2023

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ATTACHMENT DD.
3rd Party Plan Checker Record Log

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ATTACHMENT EE.

Plan Check #PC18-0001
Complete Plans

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5220 Santa Ana St. | Cudahy, CA
90201
BUILDING PLAN CHECK APPLICATION + EARLY PLAN

CHECK REQUEST
To obtain a building permit, applicant must submit the following:
 FIRST PLAN CHECK: ONE (1) complete set of project plans and a copy of all plans on a USB drive1
;
 FINAL PLAN CHECK: TWO (2) complete sets of project plans and a copy of all plans on a USB drive. Plan sets must be submitted signed/stamped by the designer or licensed professional. \
Early Plan Check may be requested by the applicant. Earl Plan Check includes preliminary building and fire consult, including preliminary site inspections, as needed. To qualify for Early Plan Check, applicants must submit the required fees, a signed reimbursement agreement and a Early Plan Check Waiver. Once plans have be finalized, Applicants may submit for final approval (Plan Check). Once approved, Applicants may receive building permits.

Please complete the form below and submit with project plan sets.

APPLICANT INFORMATION
Applicant (Executive or Controlling
Member) Contact Information
(required):

Name:

Phone:

Email:

Building Application Type: New Building/Construction Tenant Improvements
Grading Plumbing Electrical
Mechanical
Other
1 All additional Plan Checks can be submitted using the FIRST PLAN CHECK guidelines

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__________________________________
Site Address:

Facility telephone number:

RUSH PLAN CHECK RUSH Fee is 50% of total Plan Check Fee 2 Approved Cannabis Permit Type(s):

Cultivation Manufacturing
Distribution
Retail Delivery Micro-business
Testing

PLAN CHECK INFORMATION
A complete set of plans consists of the following mandatory items:

Site Plan
Site plan must comply with the Planning
project site plan depicting such things as
property lines, north arrow, all buildings or
structures, setbacks to property lines and
creeks, driveways, lot dimensions, drainage
features, contour lines, septic system, well,
fire safe standards requirements, etc.

Floor Plan
Show dimensions, use of each room,
windows, doors, plumbing fixtures,
electrical and mechanical features.

Foundation Plan
Show dimensions, type of foundation,
details of all footings (interior and exterior),
fireplace supports, porches, patios, garage
slabs, straps, tie downs, anchor bolts,
retaining walls, crawl space access and
ventilation.

Elevations
Exterior views from each side (min. of 4
sides) showing and identifying all exterior
building materials, windows, doors, roof
pitch, existing and proposed grade,
setbacks to all slopes steeper than 3:1
(hor:ver) stepped footing outline and
appropriate details.

Framing Plan Show all floors, ceilings, roofs, stairs, walls, 2 Plan check fess are calculated at $160/hr. for commercial cannabis projects and plans are typically returned within 5 working days. All plan check fees will be charged to the operators entitlement deposit account, unless otherwise requested.

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SHEET P-1 PAGE 34 OF SET SHEET A 201 PAGE 16 OF SET

PROJECT IS A TENANT

IMPROVEMENT NO FOUNDATION
REQUIRED SHEET A 3.01 PAGE 25 OF SET SHEETS A521 AND A561 PAGE 19 AND 20 OF SET

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decks and porches. Identify the size and
spacing of all framing members, locate all
tie downs, connections and cross reference
all applicable details. Dimension heights of
floors, ceilings and roofs from grade.

Cross Sections
At least one cross section through entire
building from bottom of footing to top of roof
structure. Identify all structural members
and insulation. Include other sections as
required for complex structures, fireplaces,
and special framing details.

Structural Details
Structural details of all foundation, floor,
wall, and roof construction. Include
connections, support of beams, flashing
and wood to earth separation details.

Signed Drawings
Plans must be signed by the designer. If
the structure is commercial/industrial or if
structural changes are proposed, plans
must be signed/stamped by a license
professional.

Disabled Accessibility
Detail for all existing and new disabled
access represented on all commercial
building plans
Title 24 Energy Calcs
All new construction and additions that
increase conditioned floor space and
volume require two (2) signed and stamped
sets of Title 24 energy calculations.

Engineering Calcs
Any non-conventional construction (metal,
concrete, masonry or long spans) requires
two (2) signed and stamped sets of
structural calculations.

Geotechnical Report
Two (2) signed and stamped sets are
required for all new commercial structures,
or if indicated in structural calculations,
building plans, subdivision development
plans or by site evaluation. A plan review
letter from the geotechnical engineer,
verifying that all geotechnical
recommendations have been adhered to,
may also be required.

Truss Calcs & Layout Two (2) signed and stamped sets are required prior to underfloor inspection when
engineered trusses are used. Trusses over
40 feet long require engineered design of
supporting walls at initial plan check

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SHEET A 501 PAGE 18 OF SET SHEET A 521 AND A 561 PAGE 19 AND 20 OF SET STAMPS IN TOP RIGHT CORNER SHEETS E0.1 AND E0.2 PAGE 2 AND 3 OF THIS SET

TENANT IMPROVEMENT NO

NON-CONVENTIONAL CONSTRUCTION

TENANT IMPROVEMENT BUILDING

AND FOUNDATION PRE EXSISTING

TENANT IMPROVEMENT BUILDING

AND FOUNDATION PRE EXSISTING

TENANT IMPROVEMENT BUILDING

AND FOUNDATION PRE EXSISTING

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submittal.

Grading Plan/Permit
Required if project meets the criteria
established by the current California
Building Code.

Conditions of Approval (if, applicable)
All Planning Department Conditions of
Approval shall be included on a separate
sheet, or sheets, of blueprint plan sets to be
submitted for building and grading permit
applications. NOTE: Early Plan Check
plans may not have conditions of approval
at the time of Early Plan Check.

Conditions must be incorporated by
reference on all final approved plans.

Additional Information
Provide the following information:
□ specs and cut sheets for all
equipment to be used
□ specs and cut sheets for all lighting
used for cultivation
□ information regarding water
recycling, equipment and percentage
□ information in water discharge
□ information and show location of
waste storage and management
Mechanical, Electrical, Plumbing and
Structural Plans Provide as required by project
FIRE + SAFETY PLAN CHECKLIST

EVERY APPLICANT AND LICENSEE SHALL DEVELOP AND IMPLEMENT A FIRE SAFETY PLAN. AT A MINIMUM, THE FIRE SAFETY PLAN SHOULD PROVIDE

OCCUPANT INORMATION FOR CONTROL OF FIRE HAZARDS, MAINTENANCE OF

FIRE PROTECTION SYSTEMS, AND EVACUATION PROCEDURES FOR THEIR BULDING.

Note: Some of the information below should be included with Building Plans. This checklist is designed to help applicants prepare plans which identify all items related to fire and hazmat safety. Planning Project Plans will be routed through LACF prior to approval. Building (construction) plans will also be routed to LACF post approval (or with Planning Project Plans if Early Plan Check is selected.

Fire Protection Systems Include sprinkler and fire alarm systems, hose stations, portable fire
extinguishers, emergency lights, voice
communication systems, and exit signs

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TENANT IMPROVEMENT BUILDING

AND FOUNDATION PRE EXSISTING

LAB EQUIPMENT CUT SHEETS
ATTACHED TO EMAIL.

WATER DISCHARGE P1 AND P2 P-1 SITE PLAN PAGE 34 ALL M,E, AND P SHEETS ATTACHED SHOWN ON A000 AND A201 NO FIRE SPRINKLERS AT BUILDING

EMERGENCY LIGHTS, EXIT SIGNS,

AND COMMUNICATION SYSTEMS
SHOWN ON E2.0 PAGE 6 OF SET

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Means of Egress Indicate number of exits with continuous path of travel provided by a doorway,
hall-way, corridor for the escape of
persons from any point in a building, or
room to a public acceptable open space.

Exits Indicate all door locations and sizes,
emergency illumination, widths of flow
paths and travel distances, exit sign
locations and types of signage used.

Alarms and Detection System Indicate smoke detector and audible alarm device designed to sound an
alarm within the room to which it is
located upon detection of smoke.

Provide documentation of annual
certification and/or manufactures
recommendation. Identify the location of
the panel and exterior signage. Indicate
coverage area, alarm panels and
coverage, and all other applicable
information.

Standpipe System Indicate the arrangement of piping,
valves, hose connections for the
purpose of extinguishing a fire with
adequate water pressure
Hazardous Materials Indicate where all hazardous
(flammable) materials will be stored.

Include detailed notes regarding the
following:
□ Max. Allowable Quantities
(MAQs) per Hazardous Materials
Classification
□ Fire Resistance Rating for all
control areas (1hr min required)
□ Water Treatment
□ Waste Storage Receptacles
□ Signage
□ Extinguishing System
□ Ventilation Systems
□ Air Evacuation System
□ Air Evacuation Systems
□ Alarms
□ Doors/Self-closers

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A201 PAGE 16 OF SET
A201 PAGE 16 OF SET
A751 PAGE 21 OF SET
NO FIRE SPRINKLERS ON SITE A751 PAGE 21 OF SET
M2 PAGE 27 OF SET
P1 AND P2 PAGE 32 AND 33 OF SET
A201 PAGE 16 OF SET A000 PAGE 10 OF SET P-1 PAGE 34 OF SET

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Obstructions Ensure during alterations and repairs
that the building and its occupants are
not exposed to undue fire hazards
created by equipment or supplies which
are brought into or around the building
limiting egress
Main Entrance & Access Identify all access to property and building including main entrance, gates,
doors, and driveways. Identify all
exterior doors, windows and loading
docks or areas.

Materials & Storage Identify all storage rooms and containers with appropriate labeling, storage type
and quantities
Hydrants / Shutoffs/ FDC’s Identify surrounding fire hydrants, FDC’s, and emergency shut off valves
Extinguishers Indicate all extinguishers throughout
building (2A:10B:C minimum acceptable
fire extinguisher size)
Property Line & Cross Streets Include building address with surrounding streets and property lines
Electrical Plans Identify all Class 1 – Division 1 or
Division 2
Locations of all explosion proof related
equipment, all receptacle locations and
emergency power sources.

Sprinkler Plans Include the following:
□ Improvement Notes
□ Scope of Work (existing vs.
proposed)
□ Building Information (Occupancy,
construction type, fire protection
systems, number of stores, area
square footage, and occupancy
change (if applicable)
□ Legend (include piping, hangers,
couplings, seismic bracing and
hydraulic reference)

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P-1 PAGE 34 A201 PAGE 16 OF SET P-1 PAGE 34 OF SET A201 PAGE 16 OF SET P-1 PAGE 34 OF SET A001,A002,A003,A004,A005
PAGES 11,12,13,14,15 OF SET
E3.0 PAGE 7 OF SET
A000 PAGE 10 OF SET

NO SPRINKLERS AT BUILDING

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Extraction Areas Provide the following information for
extraction areas:
□ Capacity
□ Piping
□ Inter-locks
□ Alarms
□ Leak Detection/Sensor Locations
□ Mechanical Exhaust
□ Venting
□ Emergency Exhaust Systems
□ Emergency Shut-Offs
□ Alarm Panel
□ Signage
□ Compartmentation (including
location and rating of fire areas,
fire walls, and fire partitions)
□ Protected Openings (fire
doors/self-closing/directional exit,
etc.)
□ Fire Windows
□ Fire Dampers
□ Electronic Equipment
□ Ovens
□ Heating Processes
□ Refrigeration
□ Equipment/Intrinsically Safe Tools
(rated)
CO2 Enrichment Provide detailed information regarding
the following and indicate all applicable
items on all project plans:
□ Tank Location
□ Capacity
□ Piping
□ Inter-locks
□ Alarms
□ Leak Detection/Sensor Locations
□ PEL Detection locations.
□ Mechanical Exhaust
□ Venting
□ Emergency Exhaust System
□ Alarm Panel
□ Shut-offs
□ Signage

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ON PROPERTY
CUT SHEETS ATTACHED FOR C1D1

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Cudahy City CouncilApril 1, 2025

Cudahy City Council
April 1, 2025