Staff Report
REPORT TO THE CITY COUNCIL
February 16, 2022
FROM: GEORGEANNE WHITE, City Manager
Office of the Mayor & City Manager
BY: JENNIFER RUIZ, Project Manager
Office of the Mayor & City Manager
SUBJECT
..Title
HEARING – Consideration of an appeal of the City Manager’s decision to approve retail Commercial Cannabis Business Permit No. C-20-3, for property located at 4248 W Ashlan Avenue (Council District 1)
..Body
RECOMMENDATION
1.CONSIDER Commercial Cannabis Business Permit Application No. C-2 0-3 for a retail permit at 4248 W Ashlan Avenue;
EXECUTIVE SUMMARY
Commercial Cannabis Business (CCB) Permit No. C-20-3 is for a 7,800 square foot retail cannabis business located at 4248 W Ashlan Avenue in Fresno, located on the north side of Ashlan Avenue west of Highway 99.
The City Manager’s preliminary approval for CCB Permit No. C-20-3, sent to the applicant on December 17, 2021, was based on the available information that indicates the applicant has met the requirements outlined in the Fresno Municipal Code Chapter 9, Article 33, as well as the requirements set forth in the Application Procedures & Guidelines for a Commercial Cannabis Business Permit (originally published October 19, 2020 and revised 5/28/21, 6/10/21, and 8/13/2021).
In addition, this application was the third highest scoring application amongst all the retail CCB Permit applications the City received for district one.
On December 30, 2021 the City Manager’s Office received a letter of appeal from the City Councilmember for District One, Esmeralda Soria. The appeal states, “I am appealing the permit to allow public participation in the awarding process.”
BACKGROUND
Commercial Cannabis Business (CCB) Permit No. C-20-3 was filed timely on December 1, 2020. This application is for a 7,800 square foot retail cannabis business located at 4248 W Ashlan Avenue in Fresno, located on the north side of Ashlan Avenue west of Highway 99.
The business will operate as “Authentic”. The applicant entity is Authentic 559 LLC. The owners of this company are: James Kim (La Habra, CA); Jonathon Avidor (Simi Valley, CA); Matthew Garza (Clovis, CA); Tak Sato (Los Angeles, CA).
Application Evaluation and Preliminary Approval
FMC 9-3317(a) requires the City Manager to adopt a procedure guideline and review criteria by which the top applicants in each category of each commercial cannabis activity shall be evaluated, with a final determination made by the City Manager. Local preference shall be included in the review criteria.
The application procedures adopted by the City Manager were published on the City’s website and available to applicants on October 19, 2020. Amendments to the procedures were published May 29, 2021; June 10, 2021; and August 13, 2021. The evaluation process included the following:
Phase I: Determination of Eligibility
Phase II: Criteria Evaluation and Initial Ranking (1,600 points possible) Phase III: Interviews and Second Ranking (2,400 points possible) Phase IV: City Manager’s Final Determination and Issuance of CCB Permit
Phase II Criteria Evaluation was conducted by a panel of City Staff members, from different departments, using a scoring rubric developed by the City Manager’s Office to evaluate responses, as required by the application procedures. The subject application, No. C-20-3 scored 1,297 points out of 1,600 possible points for Phase II (Score of 81.06%). This represents the third highest score achieved amongst all Council District 1 retail applicants in Phase II.
Phase III Interviews and Second ranking were conducted by a panel of three City staff. Pursuant to the application procedures, Phase III interview scores are tabulated and combined with Phase II scores to establish an overall ranking of the applications. The subject application, No. C-20-3 achieved an overall final score of 87.87%. This represents the third highest score achieved amongst all Council District 1 retail applicants in Phase III.
The City Manager issued a preliminary approval of application No. C-20-3 on December 17, 2021.
Appeal of the City Manager’s Decision
On December 30, 2021 the City Manager’s Office received a letter of appeal from the City Councilmember for District One, Esmeralda Soria. The appeal states, “I am appealing the permit to allow public participation in the awarding process.”
Location Restrictions
The subject property is zoned CG (Commercial General), which is one of the allowable zone districts for cannabis retail businesses. (FMC 9-3307(a).) The subject location meets the zone district requirement, per Section 15-2739.B.1.a of the FMC, for a cannabis retail business.
FMC Section 9-3307(c) provides that all buildings in which a cannabis retail business is located shall be no closer than eight hundred (800) feet from any property boundary containing any of the following:
(1) A cannabis retail business.
(2) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12). (3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted. (4) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted.
The subject property is not located within 800 feet of the property boundary of any of the above- mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business.
Public Noticing
The subject application is a Commercial Cannabis Business (CCB) Permit. Pursuant to FMC 9- 3316(h) a notice was sent after the filing of the initial application to all properties and property owners of record within a 1,000-foot radius of the subject property as shown on the latest available assessment role. Pursuant to FMC 9-3317(b), notice of the City Manager’s preliminary approval of this CCB permit was also sent to all properties and property owners of record within a 1,000-foot radius of the subject property as shown on the latest available assessment role. Notice of this Council Hearing was sent February 4, 2022 to all properties and property owners of record within a 1,000-foot radius of the subject property as shown on the latest available assessment role.
This project received three public comments highlighting a number of concerns. They include:
Allegations that an owner has a hidden criminal background. Allegations that there is an undisclosed owner in a leadership position in the company. Claims that the company has bad online reviews from its employees. Claims that its associated companies paid employees under the table and failed to pay appropriate payroll taxes.
Concern that cannabis attracts thieves and that judgement of individuals is altered, affecting safety of the community.
Allegations that the CEO resigned from the company due to fraud. Allegations that an owner had an order of abatement granted against him for cannabis related offenses, thus making the company prohibited from holding a CCB Permit.
This project received two public comments in support of the project. The reasons for support include:
Belief by the property owner that the location was a great location for the project. Belief by the applicant that the process warranted the approval.
RESPONSE TO THE CONCERNS RAISED
1) The individuals named in the allegations were removed from the company’s ownership in December 2021.
2) The applicant has prepared a detailed security plan, developed by a professional security consultant, which will include significant video surveillance, alarms, access control, and armed security guards 24-hours-a-day. The security plan measures are compliant with the Fresno Municipal Code. These measures will not only protect the cannabis retail business, it would add to the security presence in the immediate area.
Conclusion
The City Manager’s preliminary approval for CCB Permit No. C-20-3 was based on the available information that indicates that the applicant has met the requirements outlined in the Fresno Municipal Code Chapter 9, Article 33, as well as the requirements set forth in the Application Procedures & Guidelines for a Commercial Cannabis Business Permit (originally published October 19, 2020 and revised 5/28/21, 6/10/21, and 8/13/2021). In addition, this application was the third highest scoring application amongst all the retail CCB Permit applications the City received for Council District 1.
ENVIRONMENTAL FINDINGS
This approval is not a project for the purposes of CEQA Guidelines Section 15378
LOCAL PREFERENCE
The applicant met the local preference criteria.
FISCAL IMPACT
The business estimates significant tax revenue contributions to the City.
Attachments:
1. Exhibit A – Application C-20-3
2. Exhibit B – Zoning Inquiry Letter
3. Exhibit C – Preliminary Approval Letter
4. Exhibit D – Appeal Letter from Councilmember Soria
5. Exhibit E – Correspondence in Opposition to the Project
6. Exhibit F – Correspondence in Support of the Project
7. Exhibit G – Map of Proposed Project Site
8. Exhibit H – Public Hearing Notice
9. Exhibit I – Report to Council Presentation
EXHIBIT A
Applicant (Entity) Information
Application Type
Proposed Location
Commercial Cannabis Business
Permit Application
C-20-3
Submitted On: Dec 01, 2020
Applicant
Ellen Wysocki
[email protected]
Applicant (Entity) Name:
Authentic 559 LLC
DBA:
Authentic Fresno
Physical Address:
4248 W Ashlan Avenue
City:
Fresno
State:
CA
Zip Code:
93722
Primary Contact Same as Above?
No
Primary Contact Name:
Brian Mitchell
Primary Contact Title:
Co-CEO / Co-Owner
Primary Contact Address:
728 E Commercial St.
Primary Contact City:
Los Angeles
Primary Contact State:
CA
Primary Contact Zip Code:
90012
Primary Contact Phone:
Primary Contact Email:
[email protected]
HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR
ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?:
Yes
Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both
Both
Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location.
Permit Type
Retail (Storefront)
Business Formation Documentation:
Limited Liability Company
Property Owner Name:
MMPF LLC - Manager is Manuel Perales
Proposed Location Address:
4248 W Ashlan Avenue
City:
Fresno
State:
CA
Zip Code: Property Owner Phone:
Supporting Information
Application Certification
93722
Property Owner Email: Assessor's Parcel Number (APN):
510-100-48S
Proposed Location Square Footage:
7800
List all fictitious business names the applicant is operating under including the address where each business is located:
The applicant was formed for the purpose of applying for a cannabis permit in Fresno and does not have any operations yet.
Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years?
No
Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction?
Yes
If so, please list and explain:
El Cerrito, Fairfield, Tracy, El Centro, Union City, Stanton, and Concord. These are all for storefront retail applications.
I hereby certify, under penalty of perjury, on behalf of myself and all owners, managers and supervisors identified in this application that the statements and information furnished in this application and the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued.
In addition, I understand that the filing of this application grants the City of Fresno permission to reproduce submitted materials for distribution to staff, Commission, Board and City Council Members, and other Agencies to process the application.
Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits, and photographs for any purpose unrelated to the City's
consideration of this application.
Furthermore, by submitting this application, I understand and agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of Fresno Municipal Code and State law. Under penalty of perjury, I hereby declare that the information contained in within and submitted with the application is true, complete, and accurate. Iunderstand that a misrepresentation of the facts is cause for rejection of this application, denial of a permit or revocation of an issued permit. A denial or revocation on these grounds shall not be appealable (FMC 9-3319(d)).
Name and Digital Signature
true
Title
Retail Expansion Analyst
Please note: the issuance of a permit will be determined based on the application you submit and any major changes to your business or proposal (i.e. ownership, location, etc.) after your application is submitted may result in a denial.
All applications submitted are considered public documents for Public Records Act request purposes.
For details about the information required as part of the application process, see the Application Procedures &
Guidelines, City of Fresno Municipal Code Article 33 and any additional requirements to complete the application process. All documents can be found online via this link.
For questions please contact the City Manager’s Office at 559.621.5555.
Business Name: Authentic 559 LLC
Application #: C-20-3
CANNABIS BUSINESS PERMIT APPLICATION REVIEW - RETAIL Points Possible
All or
None Exceptional Good Acceptable
Applicant
Score
Evaluation Notes (Explain each time points are
deducted)
SECTION 1: BUSINESS PLAN 300 Points Possible for Section 1 Resume:
Resumes Provided for All Owners: Score 5 5 5
Resumes Provided in 2-page Format: Score 2 2 2
Education: (select highest academic level among ownership team, cannabis specific education separately)
Cannabis specific education/training (accredited) 2 2
High School Degree Reported: Score 4 4
Bachelor's Degree Reported: Score 6 6
Master's Degree or Higher Reported: Score 8 8 8
Experience: (among ownership team, select one at highest level) Regulated Cannabis Retail Ownership Experience CA 13 13 13 Regulated Cannabis Retail Experience CA (management level or below): Score 10 10 Other Retail Business Experience Reported, More than 5 years: or 8 8 Other Retail Business Experience Reported, Less than 5 Years: Score 5 5
1.1 Sub-Total: 30 28
Construction Cost Estimate:
Construction Cost Estimate Provided: Score 8 8 6 4 6 Needs detail Construction Contingency Factor Included: Score 6 6 6
All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 4 Needs detail Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 1 Very little explanation, just says based on
experience
Operation and Maintenance Cost Estimates:
Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 6 Needs detail All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 4 Needs detail for salaries, etc.
Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 0 Not included Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 1 Very little explanation, just says based on
experience
1.2 Sub-Total: 50 28
Proof of Capitalization Specific to one or more Owners: Score 5 5
1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner. (30 points possible)
1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs.(50 points possible)
1.3 Proof of capitalization in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City. (50 Points Possible) Criteria Narrative:
Criteria Narrative:
Proof of Capitalization Specific to Business Name/Address: Score 5 5 5
In name of Shryne/SGI which will be same company
that owns Authentic 559/letter of explanation
Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15 Assets in excess of Certified Audited Financial Report Provided for one or more Owners: Score 5 5 Score one of the following for a maximum 20 points:
Capital source is 100% liquid (cash in owners bank, no debt obligation) 20 20 20 Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 Capital consists of non-liquid assets (i.e. real property) 8 8 Capital consists of a mixture of liquid and non-liquid assets 15 15
1.3 Sub-Total: 50 40
Three Years of Data Provided: Score 10 10 8 6 8 Needs detail Total Gross Revenue Estimates Provided: 3 3 3
Total Gross Revenue by Product Type (flower and manufactured) Identified: 3 3 Total Personnel Costs Provided: 5 5 4 3 3 Just listed as line item. Needs more detail Total Property Rental or Purchase Costs Provided: 2 2 2 Total Utilities Costs Provided: 2 2 2
Total Cannabis Product Purchase Expense Provided 2 2 2
All Contract Services Identified: 2 2 2
Annual Net Revenue Identified: 3 2 2
Annual Cost Escalators Identified: 4 4 3 2 3 Shows some cost escalation but no explanation Annual Estimated Sales Tax Payments to State Provided: 2 2 2 Annual Estimated Sale Tax Payments to City of Fresno Provided: 5 2 2 Annual Business Tax License and Cannabis Permit Fee Provided: 2 2 2 Annual Net Income Provided: 5 5 5
Scoring Guidance: full points for realistic figures for all three years. Dock points for severe miscalculations, unrealistic estimates, or providing less than the request three years.
1.4 Sub-Total: 50 38
Hours of Operation Provided: Score 5 5 5
Hours of Operation Provided for all 7 days of the week: Score 3 3 3 Hours of Operation Provided for Holidays: Score 2 2 0 Holidays not mentioned Opening and Closing Procedures Provided: Score 10 10 8 6 8 Does not describe role of contracted security guards
in opening nor closing procedures
Scoring Guidance: full points for describing information in detail. Dock points for leaving information out or not providing enough detail.
1.5 Sub-Total: 20 16
1.6 Daily operations. With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in which you are applying for a permit. (100 points possible)
1.4 Pro forma for at least three years of operation.
1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible) Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
1.6.1 Fully describe the day-to-day operations if your applying for a retail permit:
i. Describe customer check-in procedures. 20 20 15 10 20 II. Identify location and procedures for receiving deliveries during business hours. 10 10 8 6 10 iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations. 10 10 10 IndicaOnline; 18 POS locations iv. The estimated number of customers to be served per hour/day. 20 20 15 10 15 Did not describe method of estimation/source v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. 20 20 15 10 20
vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation. (if no delivery service application must state this clearly for full points) 20 20 15 10 20
1.6 Sub-Total: 100 95
Section 1 Total: 300 245
SECTION 2: SOCIAL POLICY AND LOCAL ENTERPRISE 400 Points Possible for Section 2 Description of Commitment to pay a Living Wage provided: Score 10 10 8 6 10 Definition of Living Wage Provided: Score 5 5 4 3 5
Living Wage Defined as Greater than Minimum Wage: Score 5 5 5 is minimum per CBA
2.1 Sub-Total: 20 20
Wages and Salary
CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 5 CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432) 5 5 0 Health Care Benefits
CCB Offers Medical Coverage to All Employees: Score 5 5 5 CCB Offers Dental Coverage to All Employees: Score 3 3 3 CCB Offers Vision Coverage to All Employees: Score 3 3 3 CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1 0 Not mentioned Employee Pays $0 for Employee Medical Premium: Score 3 3 0 Employee Pays $0 for Employee Dental Premium: Score 2 2 0 Employee Pays $0 for Employee Vision Premium: Score 2 2 0 Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision):
Score 2 2 2 Employer pays 70% of premium
Leave Benefits
Number of Paid Vacation/PTO Days Per Year: (10+ days = excep; 6-9 days = Good; 3-5 days Acceptable) 5 5 4 3 4 Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable) 5 5 4 3 5 Number of days paid time off for Sick/Medical time: (7+ days= Exceptional, 4-6 days = Good, 3 days = acceptable (8 hour day)) 5 5 4 3 4
Retirement
Offers employee retirement plan 2 2 2
Criteria Narrative:
Criteria Narrative:
2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. (20 points possible) Scoring Guidance: https://livingwage.mit.edu/counties/06019
2.2 Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. (50 points possible)
Offers company match for employee retirement plan 2 2 2 Employer funded pension in addition to 401k
2.2 Sub-Total: 50 35
CCB Provides Tuition Reimbursement for Certificates: Score 3 3 0 CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 3
LA Tech college provides employee courses free of
charge. Proposed partnership with FCC.
CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations Training: Score 3 3 0
CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 5
2.3 Sub-Total: 20 8
General Recruitment Plan Provided: Score 10 10 8 6 10
Social Policy Recruitment Plan Provided: Score 10 10 8 6 10 Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 10 Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 6 No targets other than social policy and local hire
targets referenced in FMC
2.4 Sub-Total: 50 36
Owners
Number of Owners: 5
Number of Owners that live within the City of Fresno: 0 Number of Owners that live in the County of Fresno: 1
Number of Owners that Own a Business in the City of Fresno: 1 51%+ ownership interest percent of the Owners live or own a business in the City : Score 80 80 80 51%+ ownership interest percent of the Owners live or own a business in the County : Score 40 40 Less than 50 percent of the Owners live or own a business in the Cityf no owners are local, score zero) 20 20 Managers
Number of Managers (salaried, non-owners) 7
Number of Managers that live in the City of Fresno: 3
Number of Managers that Own a Business in the City of Fresno:
Criteria Narrative:
Criteria Narrative: LOI with Fresno City College to pay up to 3 scholarship to cover 2-years for qualified social equity. Offer for PT employment.
Criteria Narrative:
Data, non-scored. Write response in Evaluation Notes
column.
Data, non-scored. Write response in Evaluation Notes
column.
IF full points achieved for Ownership category, don't score managers.
Section is total of 80 points possible.
2.3 Describe compensation to and opportunities for continuing education and employee training.(20 points possible)
2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. (50 points possible)
2.5 Describe the extent to which the Commercial Cannabis Business will be a locally managed enterprise whose owners and /or managers reside within or own a commercial business within the City of Fresno, for at least one year prior to March 2, 2020.(80 points possible)
100 percent of the Managers live or own a business in the City: Score 20 20 75 to 99 percent of the Managers live or own a business in the City: Score 15 15 50 to 74 percent of the Managers live or own a business in the City: Score 10 10 Less than 50 percent of the Managers live or own a business in the City: Score 5 5 5 Specified 3 local managers
2.5 Sub-Total: 80 80
Responsibilities Described for All Titles/Positions: Score 20 20 15 10 20
2.6 Sub-Total: 20 20
Does CCB have more than five employees: 5 5 5
CCB has signed a peace agreement: Score 5 5 5 signed, CBA in effect
2.7 Sub-Total: 10 10
Work Force Plan Provided: Score 10 10 8 6 10
Commitment to Local Hire Provided: 10 10 8 6 10
Commitment to Offer Apprenticeships Provided: 10 10 8 6 10 Commitment paying for continuing education provided 10 10 8 6 6 Limited to classes provided by company, not at
discretion of employee
Description of commitment to paying a living wage provide. (Score same as sec. 2.1) 10 10 8 6 10
2.8 Sub-Total: 50 46
CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 100 Mentorship and Training: Score yes
Equipment Donation: Score yes
Shelf Space: Score yes
Legal Assistance: Score yes
Finance Services Assistance: Score
Other Technical Assistance: Score compliance, application assistance, connection to distribution network
Scoring Guidance: full points for willingness to serve with detailed plan offering at least three aspects mentioned above or of similar benefit. Less points for willingness to serve but vague or unclear commitment. Zero points if there is no clear commitment to serve as Incubator.
Criteria Narrative:
2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support.(100 points possible) Criteria Narrative:
Data to inform score on first line of this section. Write response in Evaluation Notes column.
2.8.3. Commitment to pay a living wage to its employees
2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible)
2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible)
2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible)
2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an application for employment with the applicant/permittee.
2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and Criteria Narrative:
Criteria Narrative:
2.9 Sub-Total: 100 100
Section 2 Total: 400 355
SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3 CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 8 Needs more detail CCB will established a dedicated contact person to receive complaints: Score 10 10 10 CCB will establish a dedicated phone number to receive complaints: Score 5 5 5 CCB will establish a dedicated email address to receive complaints: Score 5 5 5 CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 0 Info not provided CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation: Score 10 10 10 Stated in Section 3.2
Other measure unique to business (i.e. website complaint form) 5 5 5 Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points for leaving out aspect, vagueness, or reactive plans.
3.1 Sub-Total: 50 43
CCB will maintain a listserv of community residents to update and information residents of business operations.
10 10 0 Info not provided
CCB will schedule or attend periodic community meetings (at least annually) to engage with residents about the CCB operation: Score 10 10 10
CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 40 Needs more detail CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Info not provided CCB will hire residents from the community work at the CCB: Score 20 20 0 Info not provided Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness, or reactive plans.
3.2 Sub-Total: 100 50
CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Info not provided CCB has prepared a nuisance odor control plan: Score 10 10 8 6 6 Needs more detail Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary:
Score 5 5 5 Stated in Section 3.4
Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting the premise boundary: Score 5 5 5
CCB has established an odor reporting system: Score 5 5 0 Info not provided CCB will install a nuisance odor monitoring system: Score 10 10 0 Info not provided Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible)
3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible)
3.3 Describe odor mitigation practices.(40 points possible)
3.3 Sub-Total: 40 16
CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 10 Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans.
3.4 Sub-Total: 10 10
Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 8 Needs more detail Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10 Odor control measures are identified for different nuisance odor sources: Score 10 10 0 Info not provided
3.5 Sub-Total: 30 18
Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures: Score 10 10 10
Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting. 10 10 10
3.6 Sub-Total: 20 20
CCB has identified the sources of waste generated by the business operation: Score 10 10 10
CCB has prepared a source-separation plan to segregate different sources of waste generated by business operations: Score 10 10 10
The source-separation plan identifies policy, procedures, and locations where different sources of waste are to be collected for disposal: Score 10 10 8 6 10
The source-separation plan describes specific measures to control the collection and disposal cannabis waste: Score 10 10 10
The name of licensed cannabis disposal company provided: Score 10 10 10
3.7 Sub-Total: 50 50
Section 3 Total: 300 207
SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant: Score 10 10 10
Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by) 10 10 0 no mention of assessmnt Criteria Narrative:
3.7 Describe the waste management plan. (50 points possible) Criteria Narrative:
4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible)
3.4 Identify potential sources of odor. (10 points possible)
3.5 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. (30 points possible)
3.6 Describe all proposed staff odor training and system maintenance.(20 points possible) Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 5 moderate details Safety Plan includes Site Plan of Premise: Score 10 10 10 section 4.5 Safety Plan includes Building Layout Plan: Score 10 10 10 4.5
4.1 Sub-Total: 50 35
Written Accident/Incident Procedure Provided: Score 20 20 15 10 20 Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 10 Total Number of Scenarios Described: Score 12 different possible injuries Active Shooter Incident Described: Score 10 10 0 not mentioned Robbery Incident Described: Score 10 10 0 not mentioned
4.2 Sub-Total: 50 30
Evacuation Plan Provided: Score 20 20 15 10 20
Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 20 Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 5 no over all site plan
4.3 Sub-Total: 50 45
Location of Fire Suppression System Elements Identified: Score 10 10 10 Type of Fire Suppression System Elements Identified: Score 20 20 15 10 20 Location of Fire Extinguishers Identified: Score 10 10 10 Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 10
4.4 Sub-Total: 50 50
Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 20 Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 20 Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 not mentioned Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 not mentioned Other Medical Emergency Conditions Described: Score 20 20 15 10 0 not mentioned
4.5 Sub-Total: 100 40
Section 4 Total: 300 200
SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 Security Plan Prepared by Consultant: Score 10 10 10
Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 10
4.3 Describe evacuation routes. (50 points possible)
4.2 Describe accident and incident reporting procedures. (50 points possible) Criteria Narrative:
4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible)
5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible) Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible) Criteria Narrative:
Data-write response in Evaluation Notes Column
Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 10 Security Plan includes Site Plan of Premise: Score 10 10 10 Security Plan includes Building Layout Plan: Score 10 10 10
5.1 Sub-Total: 50 50
Premises (Security) Diagram Provided: Score 20 20 15 10 20 Diagram is drawn to correct scale: Score 5 5 5
Diagram provides required details for premise: Score 5 5 5 Diagram shows the location of all security cameras: Score 5 5 5 Descriptions of activities to be conducted in each area of the premise 5 5 5 Limited-Access Areas Clearly Marked: Score 5 5 5
Number and Location of All Security Cameras Identified: Score 5 5 5
5.2 Sub-Total: 50 50
Intrusion Alarm and Monitoring System Identified: Score 15 15 15 Name and Contact Information for Monitoring Company Provided: Score 5 5 5 Total Points of Entry into Premise Identified: Score 5 5 5 All Points of Entry to be Alarmed Identified: 5 5 5
Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10 Backup Power Supply Identified: Score 10 10 10
5.3 Sub-Total: 50 50
Written Cash-Handling Procedure Provided: Score 30 30 20 15 30 Dual-Custody is Practiced for all cash handling: Score 10 10 10 Video Surveillance Used to Monitor All Cash Handling: Score 20 20 20 Armored Car Service Used for Bank Deposits: Score 10 10 10 All Cash Deposited weekly with Bank: Score 10 10 10
Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20
5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and testing areas.
5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices (Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area.
5.2.5 Number and location of all video surveillance cameras. (50 points possible)
5.4 Briefly describe cash handling procedures which covers day to day transactions with customers, vendors armor carrier vehicles and transporting it to the bank.(100 points possible)
5.3 Identify intrusion alarm and monitoring system including the name and contact information for the monitoring company (if the company has been selected).(50 points possible) Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
5.2 Premises (Security) Diagram. In addition to diagrams submitted for other sections of the application, applicants are expected to submit a premises diagram (or site plan) which, focuses on the proposed security measures and how they relate to the overall business. (Pursuant to CCR Title 16, Division 42, §5006. Premises Diagram).
5.2.1 The diagram shall be accurate, dimensioned and to scale (minimum scale ¼"). The scale may be smaller if the proposed location exceeds more than a 1/2-acre parcel but must not be printed on larger than an 11" x 17" sheet of paper. (Blueprints and engineering site plans are not required at this point of the application process)
5.2.2 The diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows, and doorways. The activity in each room and the location of all cameras must be identified in the diagram.
Criteria Narrative:
5.4 Sub-Total: 100 100
CCB will use onsite security guards: Score 10 10 10
All onsite guards will be licensed and bonded: Score 10 10 0 No mention of being bonded All onsite security guards will be licensed to carry firearms: Score 10 10 10 Onsite security guards will be on duty before CCB opens for business: Score 10 10 10 Onsite security guards will be on duty after CCB closes for business: Score 10 10 10
5.5 Sub-Total: 50 40
Section 5 Total: 300 290
Section 1: Business Plan Total Points: 300 245
Section 2: Social Policy & Local Enterprise Total Points: 400 355 Section 3: Neighborhood Compatibility Total Points: 300 207 Section 4: Safety Plan Total Points: 300 200
Section 5: Security Plan Total Points: 300 290
Total Points Achieved: 1600 1297
81.06%
TOTAL SCORE
5.5 Discuss whether the CCB will utilize the services of on-site security guards. Include in the discussion: (50 points possible)
5.5.1 Number of guards.
5.5.2 Hours guards will be on-site.
Criteria Narrative:
5.5.3 Locations at which they will be positioned.
5.5.4 Guards' roles and responsibilities.
City of Fresno
Commercial Cannabis Business Permit
Application EvaluationBusiness Name: Authentic
Application # C-20-3 D1
Score 1 Score 2 Score 3 Average%
Phase III
Points
Possible
Phase III
Points Actual
Phase II
Points
Possible
Phase II
Points
Actual Total Score
Section 1: Business Plan 90% 90% 95% 91.67% 300 275.00 300.00 245 520 Section 2: Social Policy 90% 93% 95% 92.67% 500 463.33 400.00 355 818.33 Section 3: Neighborhood 92% 89% 90% 90.33% 300 271.00 300.00 207 478 Section 4: Safety 90% 90% 90% 90.00% 300 270.00 300.00 200 470 Section 5: Security 90% 91% 95% 92.00% 300 276.00 300.00 290 566 Section 6: Location 95% 95% 96% 95.33% 200 190.67 - 0 190.67 Section 7: Community Benefits 95% 93% 95% 94.33% 500 471.67 - 0 471.67 Total Score (points) 2400 2217.67 1600.00 1297 3514.67
Total % 87.87%
1. BUSINESS PLAN
1.1. Owner Qualifications
The applicant Authentic 559 LLC (“Authentic Fresno”) is owned by Shryne Group Inc. (“Shryne”) and Fresno County local Matt Garza. Shryne is the parent entity and owner of various other cannabis retail, manufacturing, cultivation, distribution, real estate and IP assets.
1. Industry Best Testing Standards
Shryne’s three cultivation facilities, three manufacturing facilities and three distribution centers are each equipped with the most rigorous testing, inspection and compliance standards to ensure that the products which are eventually delivered and sold at Authentic Fresno are the safest and purest cannabis products in the world.
For example, while the State of California only requires products to undergo one stage of regulatory
compliance testing prior to being sold to consumers pursuant to 16 CCR § 5715, all of Authentic Fresno’s products will undergo two additional layers of testing to ensure the safety of our products as follows:
1. All of the flower and trim cultivated at our cutting-edge cultivation facilities and any third-party flower we purchase for use in our manufactured products are initially sent to our third-party testing provider CannaSafe, one of the most trusted names in cannabis testing. The flower and trim are tested for:
i.
cannabinoid potency (e.g., THC and CBD levels)
ii. pesticide levels of more than 70 different types of pesticides iii. microbial pathogens (e.g., fungi, E. coli, salmonella) iv. mycotoxins (e.g., Aflatoxin B1, Ochratoxin A, etc.) v. heavy metals (lead, mercury, cadmium, arsenic, etc.) vi. moisture levels (to determine whether products are ready for long term storage) vii. foreign materials (e.g., molds, sand, dirt, hairs, cinders, etc.) viii. terpene identification and quantification (e.g., β-Myrcene, α-Pinene, β-Caryophyllene, etc.) Any flower or trim which do not pass every aspect of this initial test is destroyed.
2. Next, any flower or trim which has been extracted into an oil, wax or other concentrates will undergo a second round of testing with CannaSafe for three reasons. One, while the initial testing when the concentrate was in a flower or trim form should have picked up all impurities, the levels of potency, metals or foreign materials oftentimes increase when the flower or trim is distilled into concentrate form. Two, double checking for contaminants prior to any concentrate being used and touching our manufacturing equipment is essential to prevent cross contamination of other products which will be used by our manufacturing equipment. Finally, particularly for concentrates purchased from third parties, testing at this stage involves testing for residual solvents such as acetone, benzene, ethanol, methanol and other solvents which producers sometimes use in the distillation process.
In contrast, cannabis dispensaries that are not vertically integrated cannot guarantee the safety and quality of the products they are selling because they do not control the cultivation and manufacturing processes.
2. Product Quality
In addition to the purity and safety of the products which Shryne’s vertical integration can assure, this integration permits us to offer the highest quality and most effective products in the market today.
The two extra layers of testing at the cultivation and extraction levels allow us to inspect cannabinoid composition and potency levels, terpene levels (which can affect taste) and moisture levels (which can af
fect shelf life and texture), all of which need to meet Shryne’s proprietary formulation standards.
Such attention to detail and commitment to producing the highest quality flower, edibles, oils and other products have led to our products having a cult like following at our stores and at over 90% of stores in California. In fact, our Honeyleaf, Efex, Palmas, Stiiizy, Biiit, and Liiit brands which come in flower, oil, edible, tincture, pure-CBD and other delivery systems are some of the most popular products in California as evidenced by the fact that we were named the most popular marijuana brand in the United States as of December 2019 according to Pioneer Intelligence and Brand of the Year by California Cannabis Awards
3. Many of the customers at our retail stores cite our vast selection of these in-house brands as one of the main reasons they continue to return to our stores. Much like other popular brands such as Burberry or Nike which also have their own dedicated retail stores, the loyal following of our in- house brands equates to an instant customer base upon opening of our retail stores. 3 https://www.greenstate.com/cannabis-awards/california-cannabis-awards-hand-out-top-honors-to-industry-leaders-in-2019/
3. Competitive Pricing
In addition to the safety and quality of the products sold at our stores, our vertical integration provides all our retail stores the competitive advantage of being able to sell our products at prices which are on average 27% less than the average licensed California dispensary.
In California, illicit market sales of marijuana currently dwarf the sale of marijuana at legally licensed dispensaries on a 3:1 basis due to the cheaper prices these illicit market sellers are able to charge. 4 Illicit
market stores and delivery services are unaffected by the state and city taxes, restrictions on hours of operation, sale volume limits, product testing requirements and other regulations which increase the prices of legally sold products. As a result, legal dispensaries are struggling to meet their estimated tax promises to cities and the State or even stay open because illegal stores are able to sell products at 25% less than legal stores.
5 Authentic Fresno, on the other hand, will be able to leverage its parent company’s “in-house” cultivation, manufacturing and distribution operations so that the end product sold to our consumers will be on average 27% cheaper than our competitors.
4 https://www.sacbee.com/news/politics-government/capitol-alert/article234150842.html 5 https://www.cnbc.com/2019/07/11/las-black-market-for-weed-thr eatens-the-growth-of-its-legal-business.html
https://bdsanalytics.com/new-report-californias-legal-cannabis-market-on-track-to-reach-3-1-billion-in-2019-sales-7-2-billion-in-2024/
See below revenue numbers and taxes paid for the month of September 2020 (Union Street San Francisco opened in October and is not included).
City Gross Sales Sales Tax Local Cannabis Tax
6 https://www.cnbc.com/2019/03/28/medmens-financial-troubles-are-a-warning-for-the-marijuana-industry.html https://mjbizdaily.com/profits-are-a-rarity-californias-new-r egulated-marijuana-market-six-months-in/
1.2. Budget
4. Employees arrive at the retail storefront location and proceed to the employee parking area to park their vehicle.
5. Employees exit vehicle and perform a brief visual inspection of the outer perimeter of the facility for loitering, tampering, unlawful entry, or any other security or safety issue.
6. Employees ensure air conditioning/heat is set and turned on as appropriate.
7. Employees verify that carbon filters/HV AC are in working order and cannabis odor is not present inside or outside the facility.
8. Employees check to ensure line up area inside and outside have markers for customers to stand at least 6 feet apart.
9. Employees turn on and start computer and verify IndicaOnline is working.
10. Employees ensure all city and state cannabis and business licenses are properly displayed.
11. Employees ensure all educational handouts and other materials for customers are visible and available for the day’s customers.
12. Employees ensure all no-loitering signs, no consumption on-site signs and age requirement signs are properly displayed.
13. Employees turn on equipment at point-of-sale locations.
14. Employees check store email and respond to emails as necessary. Review other notes from prior night’s closing team.
15. Manager will access the safes to withdraw appropriate amounts of cash for point-of-sale locations and provide to Sales Associates.
16. Security and Employees verify that security cameras are working.
17. All employees verify that limited-access room key card works and that cannabis and safes are secure.
18. Employees check that waste bins were emptied the night before and any empty boxes or containers are cleared away.
19. Employees check if the soap dispensers and first-aid box need replenishing.
20. Employees report any equipment failures to manager on site.
21. Employees sweep sidewalk and parking lot and pick up litter on sidewalk outside premises.
22. Manager and Employees check all areas for cleanliness.
23. Employees check reception desk for any messages from the closing employee.
24. Verify locked counters have adequate amounts of cannabis and that inventory is properly sealed, packaging is intact and not damaged, and all products are not otherwise defective, leaking, or damaged.
25. Manager meets with employees to review daily goals, duties, and objectives.
26. Manager checks off opening procedures checklist.
27. Employees unlock front door for customers.
Closing Procedures
1. 15 minutes prior to closing, store will announce to customers that the store is closing.
2. Employees will verify that all customers have left the store.
3. After all customers have left, employees will lock the doors.
4. Employees will transfer all cannabis from sales floor into inventory room.
5. General Manager will transfer all money from the point of sales to the vault.
6. General Manager will perform daily cash reconciliation.
7. A Co-manager will generate log of all sales and transmit log to Track-and-Trace.
8. Employees ensure retail counters, safes, and inventory control room is locked.
9. Empty all waste bins and clear away any boxes or containers.
10. Clean all working and computer surfaces, using company-approved cleaning materials and methods.
11. Set cooling or heating system for after-hours setting.
12. Leave any necessary messages for the morning shift the following day.
13. Enable all alarms.
14. Manager reviews and signs the closing procedures checklist.
15. Exit and lock doors.
16. Verify no loitering around the premises pursuant to FMC Article 33 § 9-3310(b)(2)(vi).
17. Check in with the overnight security guard.
1.6. Additional Criteria for Retail Applications
1.6.1. Day-to-Day Operations for a Retail License
i. Describe Customer Check-In Procedures.
After the store opening procedures are completed, Authentic Fresno will be ready for customers to be checked in starting at 9:00 a.m. daily. Upon entering the store through the front entrance, every customer’s temperature will be taken as a sign for COVID-19 symptoms. After the temperature check, each customer and medical patient will be required to check in and show their IDs at the reception desk placed at the front of the secure lobby prior to entering the sales floor pursuant to FMC Article 33 § 9-3310(b)(1)(i).
This lobby/waiting area will have markers for customers to stand in line at least 6 feet apart as they wait to be checked in at the reception desk. The markers will extend out into the parking lot area of the property so that customers are required to stand at least 6 feet apart while they wait in the designated line outside.
The lobby and sales floor will be separated by an electronic “buzz-in” door and persons without proper identification will not be permitted to cross this door into the retail floor pursuant to FMC Article 33 § 9-3310(a)(4). All employees will be trained on acceptable forms of identification according to 16 CCR § 5404(c), a summary of which is included below:
A. If the customer is 21+ years of age and entering the dispensary area, the customer must provide:
i. A document issued by federal, state, county, or municipal government, or a political subdivision or agency thereof, including a valid motor vehicle operator’s license, that contains the name, date of birth, height, gender, and a photograph of the person; ii.
A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photograph; or
iii.
A valid passport issued by the United States or by a foreign government.
B. If the customer is 18-20 years of age, the customer must provide one of the previously mentioned forms of identification and possess a valid physician’s recommendation or a Medical Marijuana Card. Under no circumstances will doctor recommendations be provided at the dispensary.
C.
Only customers verified to be over the age of 21 and medical patients verified to be over the age of 18 will be allowed to remain on the premises in accordance with FMC Article 33 § 9-3309(i)(1).
D.
Check-In Associates will not accept any form of
identification that is physically adulterated in any way that impedes the employee from verifying the
individual’s identity to include the photograph, physical attribute descriptions, and physical address location.
Check-In Associates will not accept identification that is expired. Check-In Associates will be trained by
security personnel to recognize false and adulterated
forms of identification, and any individual caught
presenting false information will be banned from the facility.
Pursuant to FMC Article 33 § 9-3309(i)(2),
Authentic Fresno
will also prominently post notices at the entrance to the dispensary clearly and legibly stating that no person under the age of 21 (except a medical patient over the age of 18) is permitted on the premises. Pursuant to FMC Article 33 § 9-3309(k), Authentic Fresno will also conspicuously post in the lobby the original copy of the commercial cannabis permit
Behind Glass
Grab and Go
The customer will be able to approach any of the retail counters to more closely peruse the product offerings and consult with highly trained sales associates on the different strains and product types available for purchase. Authentic Fresno’s expert sales associates will warmly greet the
customer and will offer to every customer its educational materials on the science of cannabis, safe dosing, delivery methods, and the different strains of cannabis and their effects, which will be updated on a bi-weekly basis. Employees will all wear conspicuous badges, in accordance with 16 CCR § 5043, identifying themselves as employees so that customers can readily ascertain who they can approach for questions.
Once the customer decides what they will purchase, the
sales associate will request the customer’s identification a second time for additional security measures and, if
applicable, doctor’s recommendation as a second line of defense against underage purchases of cannabis and to
pull up the customer’s profile that has been created in the IndicaOnline point-of-sales system in accordance with FMC Article 33 § 9-3309(e).
As part of Shryne Group’s mission to be accountable for all inventory, Shryne Group will mandate the following product intake procedures to ensure the accountability and safe receipt of all products delivered to this store:
•
Before an order is placed with a vendor, the General Manager or Co-manager will confirm that the distributor scheduled to deliver the products has a valid and active cannabis distribution license in compliance with FMC Article 33 § 9-3309(f). Once verified, management will execute a purchase order. Authentic Fresno and the distributor will then agree to a time window when the delivery will be made (preferably between the hours of 9:00 a.m. and 5:00 p.m. when there are sufficient employees and security to support the delivery (but never outside of 9:00 a.m. and 9:00 p.m.)). •
Upon a distributor’s arrival to the premises, a security guard or an operations employee will check the identification of the driver to ensure the delivery has been scheduled for that time and day. Upon confirming the identity of the vehicle and driver, the vehicle will be directed towards the right side of the building towards the loading area. The employee who checked the identity of the driver will then communicate to the security guard standing inside the loading/unloading area to unlock and open the side door.
•
The driver will park the vehicle and exit the vehicle
and unlock the double doors of the vehicle. At least two employees will unload the products and move them into the vestibule with the armed security guard present during the entire process. The employees will check each batch being offloaded against the purchase order to ensure the correct batches of orders are being delivered. A more thorough check of the products are conducted in the inventory room as described below. Once the cannabis products have been offloaded, the driver will depart and the manager will place the delivered items into the secure inventory room while still in the presence of a security guard. •
Delivery schedules will be staggered so that criminals cannot time or schedule a robbery. • Once the products are in the inventory room, an inventory manager will count each individual item in the delivery and compare it to the shipping manifest, confirming:
• Distributor’s name and license;
• Driver’s name;
• Delivery date and time;
• Invoice number;
• Product name;
• Product description;
• Product weight;
• Unit of measure;
• Number of units;
• Price per unit; and
• Total price.
• Each item will also be inspected to confirm that the products have not been adulterated with all packaging intact.
• The inventory manager will then verify that the Certificate of Analysis (COA) received from the distributor is:
•
The COA that corresponds to the goods;
• Identical to the corresponding COA recorded in Track-and-Trace; and • Less than 12 months old.
• The inventory manager will then confirm that each product is labeled with the batch number that matches the batch number on the corresponding COA and that the label on each product is consistent with the COA regarding cannabinoid content and contaminants required to be listed by law. •
Once the contents and amount of the products are confirmed, they will immediately be entered into Authentic Fresno’s inventory platform IndicaOnline and METRC’s track and trace system.
• No cash will ever be exchanged at the drop off to further reduce the risk of a robbery. • Finally, one surveillance camera will track the vehicle’s entrance into the loading area and the entire off-loading process.
iii. Identify the Name of the Point-of-Sale System to be Used and the Number of Point-of-Sale Locations.
Authentic Fresno will utilize the point of sale system IndicaOnline9, which Shryne Group uses at all of its other retail locations. Every new customer will be required to register with IndicaOnline after verifying that they are at least 21 years old. IndicaOnline will register the following information onto the system which is integrated with METRC and the other retail stores which Shryne operates:
•
Name
• Address
• Date of Birth
• Photo ID
• Height and Weight
• Past Purchase Records to
inform the customer of
potential recalls
•
Email and Phone Number
• Whether the customer has a
Medical Card
All of this information permits Authentic Fresno to contact customers in case of an emergency like a recall or defective product. IndicaOnline also keeps track of past purchases so a customer does not exceed the legally permissible amount and permits our sales team to send direct messages regarding store sales if the customer has opted in to receive such information.
Additionally, the IndicaOnline Point of Sale system is integrated into the METRC track and trace system so that all sales, returns and movement of inventory in and out of the store is sent via METRC to the State of California.
9 https://indicaonline.com/dispensaries/
There will be 18 Point of Sale systems along the counters to assist the large number of customers we expect at our store.
Once it is a customer’s turn to purchase a product, the sales associate will first check the customer’s ID a second time as a second line of defense against underage purchasing. If the customer is eligible to make a purchase, the sales associate will pull up the customer’s profile on IndicaOnline, confirm that the customer’s purchase does not exceed his or her daily limit and scan the product for sale on the IndicaOnline system, which will update the inventory count in the store. Every purchase will also be automatically sent to the State of California through the system’s integration with METRC. iv.
Estimate the Number of Customers to be Served per Hour/Day.
Shryne Group estimates that this Fresno dispensary will serve on average 43 customers per hour and an average of 556 customers per day. The store will serve the most customers in between 12pm to 2pm and between 6pm to 8pm during the weekdays and from 2pm to 7pm on the weekends.
The store will also
likely serve the most customers Friday through Sunday. The table below shows the estimated number of customers on each day.
v. Describe the Proposed Product Line to be Sold and Estimate the Percentage of Sales of Flower and Manufactured Products.
Customers at Authentic Fresno will be able to choose from over 330 SKUs and 12 dif ferent types of
products, including flowers, oils, vapes, pre-rolls, topicals, and edibles from the over 70 California vendors Shryne Group is currently engaged with and 15 of Shryne Group’s own in-house brands, including Stiiizy, Honeyleaf, Efex, Palmas, Biiit, and Liiit. In fact, our in-house brands are the most popular brands in California as evidenced by the fact that we were named the most popular marijuana brand in the United States as of December 2019 according to Pioneer Intelligence 10 and named 2019
Brand of the Year by California Cannabis Awards11. Shryne’s products are currently carried at 90% of cannabis retail stores in California and many of our customers at our retail stores cite our vast selection of these in-house brands as one of the main reasons they continue to return to our stores.
10 https://www.benzinga.com/markets/cannabis/19/10/14621437/report-cannabis-brands-stiiizy lowell-and dosist-dominate-marketing-while-mattio-pr-moves-the-ne 11 http://www.californiacannabisawards.com/
Whether the customer is looking for physical pain relief, assistance sleeping or is simply looking to unwind, Authentic Fresno’s wide array of products from Shryne Group’s own in-house brands and offerings from only the most reputable vendors will ensure there is something for every customer.
Because of Shryne Group’s vertical integration, approximately 60% of products sold at our stores will have been within our chain of custody and tested multiple times from seed to sale. All third-party products will also be strictly tested and their manufacturing and cultivation sites will be inspected to ensure that such third-party products also meet Authentic Fresno’s safety, testing and purity standards.
See below the initial list of 330 SKUs we plan to carry at Authentic Fresno. An additional 50 – 100 SKUs will be added once the store is operational to account for products from Fresno-based cultivators and manufacturers.
To assist customers in taking in and discerning the various products for sale, Authentic Fresno will also permit third-party brands it carries to advertise their products free of charge through empty “vendor boxes,” which will line the shelves along the walls behind the counters. The products will also be separated by delivery type (e.g., flower, gummies) and by strain (e.g., sativa, indica, hybrid) to assist the customer in identifying what they are looking for.
In accordance with 16 CCR § 5025(d), Authentic Fresno will not sell alcohol or tobacco products at its dispensary.
vi.
Describe Delivery Service Procedures, Number of Vehicles and Product Security During T
ransportation.
Our experience in other cities has shown us that a well operated delivery business can provide an extra 30% in sales to the storefront retailer. The fact that our store is located within 250 feet off of the 99 Highway will allow us to deliver to areas as far as 60 miles away from the retail store. This expansive reach will be necessary to cater to all of the customers who are unable to travel to Authentic Fresno’s retail premises to still obtain the high-quality cannabis products they desire.
Delivery Service Procedures
Receiving Delivery Orders
Authentic Fresno customers will be able to make delivery orders through our proprietary online delivery platform called Blaze. Customers are required to create an online profile with valid ID and a recent photograph of the customer holding their ID. ID is checked again at the time of delivery. See below our easy to use interface which permits online shoppers to filter by product type, price and weight.
Once a new delivery order is received, a sales associate will first confirm that the order complies with daily sales limits and can be legally processed.
The sales associate will then check that all of the desired products are in stock and that the order can be fulfilled in accordance with the customer’s expectations.
If all of the requested goods are available, then the sales associate will process the order as requested by first documenting the customer’s identifying information and checking the delivery address online to ensure that it is: (i) a physical address in California; (ii) not on publicly owned land or on land or in a building leased by a public agency; and (iii) not a school providing instruction in kindergarten or any grades 1 through
12, day care center, or youth center in accordance with 16 CCR § 5416.
Delivery Order Processing
As part of order fulfillment, a sales associate will prepare a Delivery Request Receipt that contains the following information in accordance with 16 CCR § 5420(a):
i.
Authentic Fresno’s name and address;
ii. The first name and employee number of the employee who will deliver the order; iii. The first name and employee number of the employee who will have prepared the order for delivery;
iv.
The first name and Authentic Fresno-assigned customer number for the customer who placed the delivery order;
v.
The date and time of the delivery order;
vi. The delivery address provided by the ordering customer; vii. A detailed description of all of the requested cannabis goods, including their weight, volume, or another accurate measure of the amount; and
viii.
The total amount paid for the delivery, including any taxes, fees, the cost of the cannabis goods, and any other charges related to the delivery.
The same Delivery Request Receipt will later be updated by the Delivery Employee to include the date and time the order was delivered, as well as the ordering customer’s signature confirming their receipt of
the order. The sales associate will also record this information in the customer’s profile in the point-of-sale system, so that cannabis goods sold by Authentic Fresno can be tracked in the event of a product recall.
All ordered cannabis goods will be gathered from inventory storage by the Inventory Manager and he or she will visually inspect each product to ensure that it is not expired, that the packaging is intact and unopened, and that the product labeling is intact and legible. The Inventory Manager will then provide the items to the sales associate. The sales associate will either scan or manually document each item into the POS system. The following information will also be entered directly into Track-and Trace in accordance with 16 CCR § 5049(b):
i. Name and type of cannabis goods;
ii. Unique Identifiers (UID) of cannabis
goods;
iii. Amount of cannabis goods, by weight or
count;
iv.
Date and time of sale; and
v. Any other information required by
licensing authorities.
Delivery orders will only be fulfilled if Authentic Fresno has connectivity to Track-and-Trace.
To conclude order documentation, the sales associate will then add the ordered products to the delivery driver
’s Delivery Inventory Ledger, which will include for each good the: (i) type; (ii) brand; (iii) retail value; (iv) UID; and (v) weight or volume. Based on then-current retail prices, the sales associate will verify that the Delivery Inventory Ledger contains less than of cannabis goods as pursuant to 16 CCR § 5418(a). All delivery orders will then be placed into opaque exit packages, the same as previously mentioned, and will be provided to the Delivery Employee with copies of the corresponding Delivery
Request Receipts and the Delivery Inventory Ledger in accordance with 16 CCR § 5418(e) & (g).
Delivery Vehicle Loading
When delivery vehicles are loaded for delivery, it will take place in Authentic Fresno’s loading area.
Pursuant to 16 CCR § 5044(d)(1), the delivery area will be under 24-hour video surveillance.
Cannabis
goods will be loaded into the enclosed delivery vehicle by delivery employees, who will ensure that all cannabis goods are locked in a fully-enclosed box, container, or cage that is secured on the inside of the vehicle (but is not comprised of any part of the body of the vehicle) that is not visible to the public in accordance with 16 CCR § 5417(b).
Authentic Fresno’s Pre-Dispatch Checklist will be used by delivery employees to ensure that all of the following items are in their possession and functioning properly prior to departure:
•
Delivery Inventory Ledger
• Delivery Request Receipt
• Delivery Stop Log
• Copy of Business license
• Copy of State license
• Driver’s license
• Employee identification
badge
•
Age verification device
• Mobile telephone
• GPS device
• Sufficient fuel
• Alarm system
• Inventory containers and
locks
•
Vehicle operator’s manual
• Spare tire and jack
GPS Tracking12
To facilitate identifying the geographic location of each delivery vehicle and creating a record of all travel, each delivery vehicle will be outfitted with a dedicated GPS device that will be owned by Authentic Fresno and used only for delivery.
Each GPS device will be permanently or temporarily
affixed to the inside of a delivery vehicle, and devices will remain active throughout all deliveries to enable Authentic Fresno to identify and document each vehicle’s location at all times during the delivery process.
Authentic Fresno will maintain for at least 90 days a record of all of the locations traveled to by Delivery Employees during deliveries, and Authentic Fresno will provide these records to the City and the Bureau of Cannabis Control immediately upon request.
Delivery Stop Log
In accordance with 16 CCR § 5418(f), a Delivery Stop Log will be maintained by Delivery Employees.
This is a log of any stops from the time the delivery employee leaves the dispensary to the time he or she returns, including the reasons for each stop.
After deliveries are completed, the Delivery Driver will provide the Log to management, who will ensure that the log is retained and available for inspection for at least seven years in compliance with 16 CCR § 5418(f).
In accordance with 16 CCR § 5418(h)
(3), Delivery Employees will provide the log to the City, the Bureau of Cannabis Control, or any law enforcement officer immediately upon request while out on deliveries.
Delivery Employee Communication
Communication between management and Delivery Employees will occur through the use of hands-free telephones.
Before departing from the dispensary for a delivery, a Delivery Employee will place and receive a test call to management to confirm that the telephones are properly functioning. In addition to general communications, Delivery Employees will utilize the hands-free telephones to report all adverse delivery events to management, who will record all adverse events in a dedicated incident log.
Completing a Delivery
Five minutes prior to a driver’s arrival at the customer’s delivery address, the customer will be notified that the delivery is 5 minutes away
. When a Delivery Employee arrives at a customer’s delivery address, he or she will first attempt to contact the ordering customer by knocking on his or her door or ringing the doorbell.
If the ordering customer does not respond after a reasonable time, the Delivery Employee will return to the delivery vehicle and will attempt to call the customer using the telephone number 12 In accordance with 16 CCR § 5417(d).
the customer provided with the order. If there is still no response within 10 minutes of the Delivery Employee’s first attempt to contact the ordering customer, he or she will return to the dispensary with the customer’s entire order. If there is a response, the Delivery Employee will ensure that he or she is communicating with the customer who placed the order by checking the customer’s appropriate identification and will scan the identification with an age verification device to confirm that the identification is valid and that the customer is of legal age to purchase cannabis in compliance with 16 CCR § 5415(f).
After the customer’s identity and age have been verified, the Delivery Employee will process payment and will physically transfer the cannabis goods to the customer. The customer will then sign the Delivery Request Receipt provided by the Delivery Employee and will be provided with a copy of the receipt as required in 16 CCR § 5420(b).
The Delivery Employee will also retain a copy
of the signed Delivery Request Receipt to provide to management, who will maintain the receipt in accordance with Authentic Fresno’s record retention policy and applicable rules and regulations as stated in 16 CCR § 5420(b).
Number of Delivery V
ehicles
Authentic Fresno intends to utilize 6 vehicles, which will be electric or hybrid vehicles, to provide delivery services for its customers.
Product Security during Transportation
Product security during transportation is a priority to Authentic Fresno, as it reduces the likelihood of product diversion and underage access. As such, Authentic Fresno will enforce the following policies, among others, to ensure that products remain secure throughout the delivery process in compliance with 16 CCR § 5418 (a-d):
•
All Delivery Employees will be at least 21 years old.
• All deliveries will be made by Authentic Fresno’s Delivery Employees (as opposed to third party contractors).
•
We will only employ Delivery Employees with a good driving history (e.g., no DUIs, driving with suspended license, etc.)
•
Deliveries will only be made during store hours.
• Cannabis products will not be visible from the outside. • Delivery Employees will not be permitted to perform a large number of deliveries on each route to limit the amount of cash and products in the vehicle. Delivery Employees will not carry cannabis goods worth more than at any time.
• Only authorized employees will be allowed in the delivery vehicle during a cannabis goods delivery. • Delivery Employees will not leave the store with cannabis goods without at least one delivery order that has already been received and processed by the store (e.g., no roaming with cannabis goods). • While carrying cannabis goods for delivery, Delivery Employees will only travel in an enclosed delivery vehicle and will ensure the cannabis goods are not visible to the public. •
While making deliveries, the Delivery Employee shall only travel from the store to the delivery address, to the delivery address to another delivery address or back to the store. The Delivery Employee shall not deviate from the delivery path except for necessary rest, fuel, vehicle repair stops or due to unsafe road conditions.
•
Delivery vehicles will not have any marking on the exterior of the vehicle that may indicate the presence of cannabis inside the vehicle.
•
Delivery Employees will not leave cannabis goods unattended in the delivery vehicle unless the vehicle is locked and the alarm system is active.
•
A dedicated GPS device will be affixed to the inside of each delivery vehicle, enabling Authentic Fresno to identify each vehicle’s location during delivery.
Additionally, as mentioned previously, Delivery Employees will be in constant communication with the store’
s inventory and delivery team via hands-free telephones. Delivery Employees are instructed to dial 9-1-1 if they feel threatened or they believe a crime is about to be committed. The inventory and delivery team at the store will also keep track of the delivery vehicle’s whereabouts and will call the Delivery Employee if there are unscheduled stops or other unusual activities. If they are not able to connect with the Delivery Employee, the inventory manager will contact the police if he or she reasonably believes there is a crime being committed or that the Delivery Employee is otherwise in danger.
2. SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
2.1. Living Wages
Authentic Fresno is committed to paying a living wage. We have a “universal” Collective Bargaining Agreement with the United Food and Commercial Workers International Union (UFCW) Local 8, which covers Fresno’s jurisdiction, and have agreed in our CBA to pay living wages in all the cities in which we operate. Pursuant to the CBA, Authentic Fresno’s minimum base pay will be per hour for our most junior employees and will go all the way up to an hour for more senior hourly employees.
The compensation floor is per hour more than the minimum wage in Fresno of per hour for companies with more than 25 employees and more than the living wage of Fresno according to M.I.T.’s living wage calculator.
13 Employees are also entitled to wage increases every 6 months.
The General Manager and Co-Managers will be salaried and will receive per year.
As the cost of living and the minimum wages increase, Authentic Fresno is committed to increasing its minimum wage to match these costs of living increases so that all employees continue to receive living wages.
2.2. Employee Benefits
In addition to living wages, Authentic Fresno will offer a comprehensive benefits package governed by our CBA, which is one of the best in the industry.
Insurance Benefits. Authentic Fresno will offer Medical, Dental, and Vision Insurance benefits to its retail employees through Anthem. Employees can choose from the Gold, Silver, Bronze PPO Plans or the HMO Plan. The company will cover 70% of all insurance premiums of its employees.
Holidays. Full-Time Employees receive 10 paid-holidays per year and receive double wages if they work on such holidays.
Paid Time Off. Employees will receive 72 hours of paid time off per year.
Sick/ Personal Leave. Employees receive 6 work days (48 hours) of paid sick leave per year.
Maternity/Paternity Leave. Authentic Fresno provides up to six (6) weeks of maternity and paternity leave. 13 https://livingwage.mit.edu/counties/06019
Continuing Education and Compensation for Education
Authentic Fresno and Shryne Group are committed to working with employees to develop each individual’s talents, skills and abilities. As detailed below, Authentic Fresno will provide its employees with a world class cannabis education. In addition, through the Shryne Group, Authentic Fresno will provide training and continuing education beyond cannabis. The aim of this program is to provide employees with a foundation to thrive at Authentic Fresno and in their future endeavors.
Workforce Development
In addition to providing competitive wages and the most comprehensive benefits in the industry, Authentic Fresno will provide workforce development for its Fresno employees at no cost to them and will pay for our employees to receive college credits from these courses. Shryne’s goal is to develop well-trained, skilled workers. Shryne and Los Angeles Trade Tech College have an agreement for instructors from Los Angeles Trade Tech College to teach classes at all of Shryne’s retail, manufacturing, distribution and cultivation facilities in California. The classes will be held every two to three weeks at the Fresno store or via Zoom and will be free of charge to the employees. Employees who were initially scheduled to work during the classes will be paid to attend the class. Classes include:
•
Microsoft Word
• Microsoft Excel
• Creating PowerPoint Presentations
• Accounting
• Supply Chain Logistics
• Leadership
• Effective Communication
Classes are 2-3 hours long and upon completion, the employees will receive 1-3 college units which can be transferred to any 2 or 4 year college. Shryne Group will pay for these college units so that our employees will receive these college units at no cost to them. Employees also receive career development counseling throughout the process and are considered for promotions or pay raises upon completion. Curriculums are typically 8 – 10 classes each and are grouped by subject matter and seniority. For example, the Microsoft Package curriculum are geared more towards junior employees while the Leadership curriculum are for managers and up. This program launched in March 2020 and has been a huge success with over 200 employees having completed one of the curriculums.
Angeles to learn about the cannabis industry. One of the participants of this program, Julian Domingo, has become Head of Cultivation at our Los Angeles facility and is 3 months away from obtaining his Certificate of Retail Management. Authentic Fresno hopes to replicate this program’s success in Fresno.
Our Letter of Intent with Fresno City College is attached at the end of Section 7.1 below.
Employee Training
Authentic Fresno’s employment practices begin with hiring diverse, quality staff. In that regard, Authentic Fresno will hold a local job fair at its store prior to opening to attract local residents to apply in conjunction with the UFCW. A background check will be conducted on every potential employee Authentic Fresno is considering hiring. Once hired, every retail employee, will undergo 6 paid days of training prior to working at the store to ensure that employees are knowledgeable, friendly, and professional. The 6 days are broken up as follows:
Day 1 – State and City Laws and Regulations Governing Cannabis Day 2 – Understanding All Rules and Related SOPs of the Authentic Retail Store Day 3 – Sexual Harassment, Anti Diversion and Safety at the Workplace Training Day 4 – Educating Against Abuse of Cannabis, Science of Cannabis, and Safe Dosing Day 5 – Record Management, Inventory Management, and Cash Management Day 6 – Interacting with and Educating the Customer
Additionally, each new retail employee who has completed the 6-day training program will initially be paired with a more experienced retail employee behind the retail counter for the first 30-days of their employment. The manager and the other retail employees are tasked with supervising the new employee during the first 30-day period to ensure compliance with all laws, regulations and store SOPs.
Given the ever-changing nature of the cannabis industry, our training program also emphasizes continuous improvement, and the Fresno retail team will be updated and retrained on a continual basis as state and local laws and rules change. Managers are required to provide monthly reviews of each retail employee for the first 90 days of employment so that any deficiencies can be addressed and remediated immediately.
Additionally, the General Manager will hold monthly store meetings to touch on the following:
• Customer feedback and areas for improvement
• New product launches
• Recognition of instances of exceptional
customer service
• Changes in laws or regulations
• Concerns or questions from retail employees
This extensive and proprietary training program will allow Authentic Fresno to instill our employees with the values of our founders which Shryne was built upon. Our retail employees are our ambassadors to our customers and the communities in which we operate and we take great pride in ensuring that our pillars of safety, inclusion, and education of the public are portrayed by our employees.
Customers at our retail stores frequently comment that one of the reasons they come back to our stores is the level of knowledge and professionalism of our employees. As a reflection of our highly trained employees, we were proud to learn that one of our Los Angeles store employees, Valerie Davalos, was recently named one of the top 25 cannabis retail employees in the United States by Green Entrepreneur
14. Valerie was recognized for her expert knowledge in all of the products we offer and her ability to educate customers on safe and effective use and dosage. Shryne is extremely proud of Valerie and the other 800 employees who have completed our rigorous training program and strive to provide the best customer service at all our stores.
14 https://www.greenentrepreneur.com/slideshow/343079
2.4. Plans to Recruit Individuals Who meet Social Policy Section 9-3316(B)(1) We plan to hire at least 50% of our employees from people who meet the criteria listed in FMC Article 33 § 9-3316(b)(1) (the Employment Social Policy section). We will recruit and hire individuals who meet those criteria as follows:
•
Fresno Economic Development Corporation15: We have entered into a partnership with the Fresno Economic Development Corporation (FEDC) whereby we will donate annually towards their job and business development efforts in Fresno. As part of this partnership, we are working with the FEDC to recruit individuals who have annual family income below 80% AMI, lived in foster care as a minor, are unemployed or are receiving public assistance. The FEDC has agreed 15 https://www.fresnoedc.com/
to help us recruit individuals who meet the criteria in FMC Article 33 § 9-3316(b)(1) through the following:
• The FEDC will act as a liaison with the Fresno Department of Social Services who assists Fresno residents who require social services and are looking for jobs; • The FEDC has a “job matching” website whereby employers and individuals seeking employment are matched based on skill set and interests of the employee candidate; •
The FEDC will assist us in holding job fairs and targeting job fairs towards individuals who meet certain criteria.
Our agreement with the FEDC is included in Section 7.1 below. •
JVS16 and Vet Hunters17: We currently work with JVS (Jobs.Vision.Success.) and Vet Hunters to place veterans at our various facilities across California. If selected to open a store in Fresno, we will work with these organizations to find veterans for positions at our store. Our Co-Founder, James Kim, is a disabled army veteran who served a 13-month tour in Iraq with the 101st Airborne Division, and he is committed to hiring as many veterans at our operations as possible. •
Fresno City College: We have entered into a partnership with Fresno City College to provide scholarships for Fresno residents who have annual family income below 80% AMI or who live in low to moderate income tracts in the city to attend Fresno City College.
As part of our partnership,
Fresno City College will help us identify low income residents who would be interested in working at our facility. Our agreement with Fresno City College is included in Section 7.1 below. •
UFCW: Our union partner, the UFCW, will host expungement clinics at our store as we have done at our other locations which is more fully described in Section 7.1 below. W e have been able to meet
very qualified candidates at our past expungement clinics and we hope to be able to recruit and hire individuals who were convicted of a cannabis related crime which could have been misdemeanors or citations under current law.
In addition to the existing partnerships we have in place with the Fresno Economic Development Corps., JVS, Vet Hungers, Fresno City College and the UFCW, we will work with our local owner, Matt Garza, who has deep ties to the community to recruit and hire individuals who meet the criteria under Fresno’s Social Policy.
16 https://www.jvs-socal.org/veteran-services/
17 https://vethunters.org/
Additionally, we plan to hire 70% of our employees from within the City of Fresno. Prior to our opening, we will hold job fairs targeted towards local residents in conjunction with the UFCW and our local partner Matt Garza so that we can identify local residents. The Fresno Economic Development Corps. has also agreed to help us identify local residents so that we can meet our goal of hiring at least 70% Fresno residents.
2.5. Local Ownership and Management
Matt Garza owns 51% of the applicant entity, Authentic 559 LLC, and is a life-long resident of Fresno County. Matt has owned and operated a local business within the City of Fresno since August 2017. The business, G7 Commercial LLC, is a real estate investment and management company which develops real estate within the City of Fresno. G7 Commercial LLC operates out of 4535 E Belmont Avenue, Fresno, CA 93702. This business developed a raisin farm within the City of Fresno in 2019 and has developed numerous other properties within Fresno. Matt currently resides in (Fresno County) and has lived there since May 2016. Matt has lived on and off in the City of Fresno, including during his time at Fresno State University. See below the first and last page of the lease executed by G7 Commercial LLC for their headquarter at 4535 E Belmont Avenue, Fresno CA 93702.
2.7. Labor Peace Agreement and Collective Bargaining Agreement Authentic Fresno will have more than 5 employees. Shryne Group, Authentic Fresno’s parent entity, entered into a Labor Peace Agreement with the UFCW Local 8, which covers the Fresno area. The Labor Peace Agreement applies to all of Shryne Group’s subsidiaries, including Authentic Fresno. We also entered into a Collective Bargaining Agreement with the UFCW Local 8 on March 25, 2020 and our Authentic Fresno store will be unionized under the terms of this CBA if the employees so desire. A letter of support from the local UFCW 8 is set forth below.
These programs reflect our company’s mission to provide as many people as possible the opportunity to make a career in cannabis and to own or operate a cannabis business. By combining structured educational classes through Fresno City College or our Workforce Development Program with hands-on experience working at our facilities, we hope our programs create successful owners and operators of cannabis businesses.
2.8.3. Living Wages
Pursuant to our Collective Bargaining Agreement with the UFCW Local 8, we will pay living wages of for our associates, for our Co-Managers and to our
General Manager. These wages are well in excess of Fresno’s living wage of Our associates are also eligible for raises every 6 months. As the cost of living increases in Fresno, we will increase our minimum wages so that we are always paying our employees well over the living wage in Fresno.
2.9. Social Equity Incubation
Shryne Group currently supports 13 individuals in San Francisco, Oakland and Los Angeles who qualify as social equity cannabis owners in these respective cities. These social equity applicants were all required to have a household income below 80% of the average median income in the respective cities in which they live (i.e. Los Angeles, San Francisco, and Oakland). In these cities, Shryne Group has provided 10 social equity individuals between 25 – 50% of the ownership of the stores currently in operation and of the stores which will open in the fourth quarter of 2020 at NO costs to these social equity partners. Shryne Group pays for the startup and buildout costs of these stores and is providing all of the legal, accounting and business support (including our wide distribution network) necessary to operate the business. Many of these social equity partners also work at the stores which they own so that they can learn about the cannabis industry which they have an ownership interest in. In Oakland, Shryne Group is also incubating 3 social equity individuals by providing them with free rent on spaces for them to operate their manufacturing and distribution businesses and also by providing them with legal, accounting and business assistance for their businesses. We have also committed to providing social equity owner Marquin Chandler of Oakland shelf space for his cannabis brands.
Most recently, our social equity partner Cindy De La Vega became the first Latina to own a cannabis dispensary in San Francisco. We paid for 100% of the buildout of this San Francisco store, all of the legal and accounting fees and all other fees and expenses which were required to obtain the cannabis license and get the store up and running. Cindy owns 50% of this store as our social equity partner.
As we have done in San Francisco, Oakland and Los Angeles, we are committed to serving as a Social Equity Business Incubator in Fresno. We are committed to providing at least a year to the Fresno Community Reinvestment Fund to assist Social Equity cannabis operators. Additionally, we are committed to providing the following to the Social Equity Applicants in Fresno:
•
Providing legal, accounting and compliance advice;
• Providing assistance so that Social Equity Applicants can properly fill out all city and state cannabis license forms (we have held seminars to assist Los Angeles Social Equity Applicants fill out their city and state cannabis license forms);
•
Providing shelf space to Fresno Social Equity manufacturers, cultivators and distributors; • Providing Social Equity Applicants with equipment for their businesses; • Providing mentorship and assisting Social Equity Applicants to develop their business plan; and • Connecting Social Equity Applicants with our large distribution network so that manufacturers, distributors and cultivators have a place to sell or distribute their products and so that retailers have access to a stable and reputable supply chain of products.
Our doors will always be open to the Social Equity Applicants of Fresno and we hope to be able to provide the support to help them succeed in Fresno as we have done in other cities in which we operate.
3. NEIGHBORHOOD COMPATIBILITY PLAN
3.1. Complaint Management Related to Noise, Light, Odor, Litter and Traffic As a first step to building a relationship with our neighbors, Authentic Fresno held a virtual open house on September 3, 2020 and invited all neighbors within 1000 feet of our location to attend. Invitations were sent in English and Spanish to ensure that all of our neighbors had the opportunity to participate.
At this virtual open house, we were able to introduce ourselves to the neighbors and able to answer questions regarding our operations. If we are awarded a license, we will host another open house approximately 4 weeks prior to opening to listen to any concerns from the neighboring residents and businesses. At this open house, we will introduce our Community Benefits Director DeRon Waller and provide his contact information so that the neighbors can contact us with any questions or concerns.
DeRon’s contact information will also be posted on the front door of the facility so that the community has a point of contact to address any concerns.
Additionally, as explained in more detail below, Authentic Fresno will implement proactive measures to manage noise, light, odor, litter and traffic.
Noise
Authentic Fresno will proactively manage noise at its premises. Authentic Fresno will ensure that sound is not detectable outside its premises. In accordance with FMC Chapter 10 § 10-105 (Fresno’s noise ordinance), Authentic Fresno’s operations will not exceed 65 decibels when measured outside to ensure we do not make any noise which causes discomfort or annoyance to any persons living or working in the area. Authentic Fresno has adopted the following techniques to reduce sound. First, Authentic Fresno will not utilize exterior speakers to broadcast music or to make announcements. Second, Authentic Fresno will not play music inside in excess of 50 decibels at any time. Third, windows and doors will not be left open during operating hours. Fourth, Authentic Fresno will build out its stores with physical soundproofing as a courtesy to neighbors. Fifth, Authentic Fresno will not host events at its location that result in large crowds gathering. Finally, security will patrol to verify noise is not detectable outside the premises.
Light
Authentic Fresno will incorporate light into all aspects of its operation to provide literal transparency to its business, allowing customers and staff to see clearly exactly what goes on in and around the sales area. A well-lit space is also vital for customer security. At the same time, light can bother neighbors, especially at night. Authentic Fresno has taken great care to utilize lighting that will facilitate safety without imposing such a burden.
Authentic Fresno will ensure its lighting is not excessive, obtrusive, or misdirected. Authentic Fresno will proactively manage light in the following ways. First, Authentic Fresno will not illuminate its interior premises when it is closed for business. Lighting necessary for security operations will be the only exception. Second, Authentic Fresno will utilize shielded lighting on the exterior of its premises.
Shielded lighting will ensure that light only travels downward on the premises, not upward and outward towards neighbors. In addition, the outdoor lighting’s intensity will be only what is reasonably necessary for security purposes.
These light-control measures and the fact that we do not have any immediate neighbors within 100 feet will ensure that light from Authentic Fresno’s premises does not intrude onto its neighbors’ properties.
Odor
Authentic Fresno will utilize one of the most comprehensive odor control programs in the industry, which is more fully described in Section 3.3. For example, Authentic Fresno will install carbon filters on its premises to purify the air and employees will regularly monitor the lifespan of and replace carbon filters as necessary to ensure the system is working properly. Authentic Fresno will also utilize a negative air pressure system so that air is only disbursed out of the building after it has been cleaned by our carbon filtration system. Moreover, Authentic Fresno will retain an environmental engineer to maintain its carbon filter system. In addition, Authentic Fresno will only accept and sell pre-packaged cannabis goods. It will neither package cannabis goods on-site nor allow any consumption of cannabis goods on-site. The lack of raw packaging and consumption will substantially reduce odor-causing activities. Security will monitor exterior odors while on patrol and employees will document any instances of odor or odor complaints with the Odor Documentation Forms described in Section 3.3.
Any neighbor complaints or instances of odor detected by security or employees will be immediately documented and remediated within 24 hours. If the odor cannot be remediated internally, engineers will be engaged within 24 hours to remediate the issue.
In short, Authentic Fresno’s state of the art odor control system, its proactive protocols which requires employees to be vigilant about detecting odor and our commitment to remediate any odor will ensure that odor does not negatively affect the neighborhood. To date, Shryne Group has not received a single complaint regarding odor associated with its stores.
Litter
As part of our daily store opening standard operating procedures and in compliance with FMC Article 33 § 9-3309(n), operations and retail employees will be tasked with sweeping the exterior prior to the opening of the store. Employees will also conduct cleanup of the exterior throughout the day and are trained to be on the lookout for any litter in the exterior. During the shift change, typically at 2pm, incoming and outgoing employees are required to ensure that there is no litter in the exterior of the facility. Any litter spotted by any of the employees will either be swept or picked up by the employees and disposed of.
Vehicle Traffic
To proactively manage traffic, Authentic Fresno has selected a location with 94 parking spots and away from residences and other businesses (the Ashlan Inn, the business closest to our location, is permanently closed). The fact that the store has 94 dedicated parking spaces and is surrounded by vacant lots should minimize any increase in traffic from the popularity of our store.
Additionally, the property has two points of ingress and egress from Ashlan Ave. Thus, any dispensary- related increase in traffic will be negligible in comparison to the overall traffic flow. Second, the abundant parking means that customers will have ample access to parking and will not need to park on any of the streets nearby.
If parking becomes problematic (which is very unlikely), Authentic Fresno will work to engage parking attendants as it has at its Downtown Los Angeles store. This will ensure order and efficiency in the parking lot and reduce the chance of congestion or overfill from the parking lot. Finally, Authentic Fresno may offer discounts to customers during non-peak hours and discounts to customers who pre- order their products for pickup. This will encourage customers to access the store when it is less busy.
Pedestrian Traffic
4248 W Ashlan Ave does not have heavy pedestrian traffic due to the fact that there is only two businesses within 500 feet of this location (a 7-Eleven and Valero gas station). The sidewalk on Ashlan Avenue is also separated from the store by our large parking lot which should prevent any customers from affecting pedestrian traffic near our store. The sidewalks will also ensure safe and orderly pedestrian access to the property.
In order to ensure pedestrians and customers do not become a nuisance to neighbors, customers will not be permitted to loiter around the store. Authentic Fresno’s security team will monitor pedestrian activities at the location and will conduct perimeter walks around the vicinity of our location to ensure there is no loitering, illegal activity or consumption of cannabis products near our store. Any lines that form due to the store’s popularity will be formed in an orderly fashion on the south and eastern side of the building so that lines do not impede pedestrians from using the sidewalk. Due to the large parking lots which are dedicated to our location and our proactive measures against loitering, we do not foresee having any negative effect on pedestrian traffic.
Responding to Complaints
Authentic Fresno takes complaints seriously. While we plan to take every measure to prevent any sources of complaints, if there are ever any complaints against Authentic Fresno, we will promptly and proactively resolve the matter. Authentic Fresno has adopted a comprehensive complaint resolution procedure. Authentic Fresno’s complaint-resolution procedure will be as follows: (i) receive and record
the complaint; (ii) investigate the complaint; (iii) record the result of the investigation and any resulting actions; (iv) follow up with and respond to the individual who made the complaint; and (v) use the information to improve existing procedures. Shryne has incorporated this model across all its locations with great success.
i.
Receiving the Complaint
Authentic Fresno will provide multiple channels for receiving complaints, including a telephone number,
a Community Liaison (DeRon Waller), an email address, physical mail, personal visits, and social media platforms. Such contact information will be posted on the front door of the facility so that people can easily contact us with any issues. Authentic Fresno will train employees in active listening. Employees will respond to complaints in a professional and compassionate demeanor. They will communicate to the person registering the complaint that Authentic Fresno takes all complaints seriously. As soon as Authentic Fresno receives a complaint, it will promptly enter the complaint into the complaint log which is maintained for at least 7 years and also emailed to the General Manager and Co-Managers. An investigation will also commence immediately.
ii.
Investigating the Complaint
The General Manager will be responsible for investigating all complaints. If the General Manager is unavailable, a Co-Manager will be equipped to obtain the appropriate information. Authentic Fresno will investigate complaints in a systematic fashion. Authentic Fresno has developed complaint investigation worksheets for investigating complaints. Specific complaint investigation forms include noise, light, odor, litter, and traffic and require the General Manager or Co-Manager to request and record the following information during the complaint intake:
Noise
Details include: Date, type, and intensity of the noise; where the complainant was located when they heard the noise; and where on the premises the complainant believed the noise was coming from.
Light Details include: Time the light was observed; which fixture produced the nuisance light; and where the complainant was located when the light was observed.
iii. Recording the Results
The General Manager will document the conclusion of their investigation and recommendations of corrective actions. In addition, Authentic Fresno will record any corrective action taken in response to the complaint in its complaint log. Authentic Fresno will maintain a file of all complaints and outcomes in the course of its recordkeeping. The documentation will be clear enough that anybody reviewing the records can determine that a clear, well-reasoned, and diligent effort to resolve the complaint was undertaken. Records relating to complaints will be maintained for at least seven years. iv
. Following Up with Complainant
The General Manager will notify the complainant of the outcome of the investigation. If the complaint cannot be corroborated, the General Manager will notify the complainant the complaint was investigated and that no definite source was found. The General Manager will encourage the complainant to notify Authentic Fresno in the future if they observe unacceptable light, noise, odor, litter or traffic. The General Manger will also emphasize that notification should be made as soon as possible to enable Authentic Fresno to investigate and resolve the problem. At no point will any employee of Authentic Fresno downplay or trivialize the complaint even if the source of the complaint cannot be verified.
Every employee will be taught during its training course to be empathetic to every person making a complaint and to take every complaint very seriously.
v.
Taking Corrective Action
If a complaint is substantiated, Shryne will implement a corrective action plan to ensure the conduct does not occur again. Corrective action may include, but is not limited to, revising policies and procedures, fixing lighting, HV AC or other equipment, training and retraining staff, and utilizing third- party experts.
3.2. Nuisance Management
Outreach and Feedback
Authentic Fresno’s neighborhood compatibility starts with neighborhood outreach. As mentioned previously, Authentic Fresno hosted a virtual open house in September and will host another open house and job fair prior to its opening to provide the community an opportunity to express any concerns they have about our business and its impact on the surrounding community. We will hand out educational materials about our company and stress our commitment to being a thoughtful and giving member of the community.
To mitigate nuisances on an ongoing basis, Authentic Fresno will provide multiple channels for giving feedback. Authentic Fresno will maintain a Community Liaison (DeRon Waller), a telephone number, on-site customer service employees, social media platforms, and a website for receiving community feedback. All of this information will be posted on the front door entrance. Authentic Fresno’s aim is to make neighbors feel comfortable enough to approach us with any feedback or concerns. Authentic Fresno will expeditiously attend to complaints as detailed in its complaint procedure. Authentic Fresno’s intention is to avoid, address, and resolve complaints without any city intervention.
Authentic Fresno will also mitigate nuisances through its relationship with police. Prior to our opening, the Fresno Police will be invited to tour the facility and provide any feedback on our security systems.
We will maintain open lines of communication with law enforcement and city officials. Authentic Fresno hopes to earn the city’s trust that it will properly respond to neighborhood concerns so that complaints do not escalate into investigations.
As we have at our other locations, Authentic Fresno will proactively cooperate with the Fresno Police if they are investigating a crime which occurred near our facility which we may have video recordings or other pertinent information about. Authentic Fresno will provide all video footage as requested by the Fresno Police regardless of whether the incident directly involves Authentic Fresno or its customers or employees.
Finally, Authentic Fresno will continue to host annual local stakeholder meetings to address community concerns and to receive stakeholder feedback. Stakeholders will include residential neighbors, neighboring businesses, law enforcement, city officials, non-profits, addiction treatment professionals, religious institutions, and other interested parties. The stakeholder meetings will present opportunities for collaboration and to adjust operations to meet community expectations.
Good Neighbor Policy
See below, a DRAFT Authentic Fresno Good Neighbor Policy which will be posted at our store and be available to our customers. This is a working draft that is being developed through the input we received during our open house and our past experiences at our other retail locations. As we continue to hold more open houses and have discussions with the community, this Good Neighbor Policy will be further revised to reflect continuous feedback from the community.
Residents living and working in the neighborhood have the right to enjoy a reasonable level of peace and quiet and our Good Neighbor Policy and complaint response procedures outlined above evidence our commitment to this belief. The Good Neighbor Policy prohibits consumption of drugs or alcohol on the premise, loitering, littering, double-parking and requires that all employees take extra care to prevent noise, odor and lighting which may negatively impact the neighbors around us.
Our Good Neighbor Policy will dictate how customers should act on and around the premises.
Displaying a courteous and respectful attitude always makes for better neighbor relations and a more positive experience for all community members. Disorderly conduct, public consumption of cannabis, rowdiness, loud music, or loitering is not consistent with our values. Those customers found in violation will not be permitted to return to the dispensary. Our security and management will make sure customers adhere to the Good Neighbor Policy. We will respond to complaints from neighbors when behavior occurs around the premises that is inconsistent with Good Neighbor Policy.
Premises Management
Authentic Fresno will institute major renovations to our proposed location’s facade, signage, painting, roof work, parking lot, and landscaping so that the building looks brand new. Authentic Fresno believes the money spent on these types of renovations are well spent. A well maintained property will make the store more inviting and reduce the likelihood of loitering, vandalism or illegal activities around the store.
Authentic Fresno’s policies and procedures will provide for the restoration of any area defaced by graffiti either by painting over the area with a color matching the original design scheme or by removing the graffiti within 48 hours of the occurrence pursuant to FMC Article 27 § 15-2739(M).
Security guards and employees will routinely check for graffiti and report any instances discovered to management, who will arrange for prompt repainting or removal.
The security guards will take primary responsibility for on-site patrol, including all areas of the premises and the parking lot. In addition, staff members will be trained to report any incidents or circumstances that conflict with company best practices. We will display prominent, visible signage to deter visitors from loitering or consuming intoxicating substances, such as alcohol and cannabis, on or near its premises. Specifically, Authentic Fresno will post “No Loitering, Public Drinking, or Public Smoking/ Consumption of Cannabis” signs both inside and outside of the premises. Moreover, Authentic Fresno will prohibit individuals from remaining on its premises if they are not engaging in an activity expressly related to its retail operations.
All Authentic Fresno staff will be responsible for the internal and external appearance of its business, both in terms of physical presentation and brand image. As noted in Section 3.1, staff will ensure that litter around the premises is picked up at the beginning and end of each day. Authentic Fresno employees will also sweep the area immediately in front of the storefront. Authentic Fresno will also utilize property management to ensure the interior and exterior is cleaned daily. Authentic Fresno takes pride in its professional reputation and in retaining the enduring goodwill of neighboring tenants and property owners.
3.3. Odor Mitigation Practices
Because no packaging or other manufacturing of cannabis will be conducted at this site, odor will not affect the surrounding area as long as all of our odor mitigation practices are followed.
Standard Operating Procedures to Prevent Odor
Authentic Fresno’s employees are required to check all inventory of cannabis products to ensure that all packages are properly sealed and packaged so that they do not emanate any odors. Because oils, edibles and other manufactured goods do not emanate any cannabis odor, employees will be trained to pay special attention to the packaging of raw flower and pre-roll flower to ensure they do not have any damage or openings and no odor is emanating from them.
Additionally, employees will be required to check that all windows and doors (other than the front door which remains unlocked during operations) are properly locked, closed and sealed. The HV AC system, negative air pressure, and the carbon filtration system, which are described in Section 3.5 below, will ensure that all air passes through the carbon filtration system and only through the roof outlets.
Security guards and our employees will also make sure that people are not consuming any cannabis products within the store or within the general area of our store. Signs will be posted throughout our store that consumption of cannabis on our property is prohibited and against the law. Our security guards will also conduct perimeter walks to prevent loiterers from consuming cannabis on our parking lot or in the area around our parking lot. By preventing loiterers and customers from consuming cannabis on or around our facility, we will prevent a common source of cannabis odor which plagues other cannabis dispensaries.
Employee Odor Detection System
In addition to the preventative practices described previously, Authentic Fresno will train employees on how to detect, prevent, and remediate odor outside its facility. Employees will also be aware of all corrective options available. Employees who detect any odors or are made aware of any odors are trained to do the following:
•
Investigate the likely source of the odor.
• Utilize on site management practices to resolve the odor event. • Take steps to reduce the source of objectionable odors. • Determine if the odor traveled offsite by surveying the perimeter and making observations of existing wind patterns.
•
Document the event for further operational review.
An Odor Detection Form (ODF) shall be provided to those who suspect objectionable odors emanating from inside the facility. ODFs are available per request, on-site. We shall maintain records of all odor detection notifications and/or complaints that will include the remediation measures employed. The records shall be made available to the BCC, City, or the general public on request.
The form is below:
In addition to odor mitigation practices, our odor control devices and techniques described in Section
3.5 and the fact that our location is a standalone property with our own parking lots surrounding the premises without any residences or businesses nearby should reduce the risk of any odor affecting the community.
3.4. Potential Sources of Odor
Cannabis flower and cannabis flower in pre-rolls are the only products which we will carry at our facilities which will have the potential to have any odor since the edibles, oils, tinctures and other products do not emanate any smell. The potential sources for odor from these products include the inventory room, sales room, and any safe in which cannabis goods are stored. As mentioned in Section
3.3, packages will be checked daily to ensure that they are properly sealed and packaged so that they are not emanating any smell.
Authentic Fresno will not allow raw flower to be packaged on-site which will substantially reduce the risk of any odors emanating in the area. Loiterers and customers will also be prevented from smoking or otherwise consuming any cannabis products on or around the facility, which will also reduce the likelihood of any odors. Any customers who are caught consuming cannabis on or near the facility will be prevented from shopping at our store again. Our security guards will also surveil the parking lot area to prevent customers from consuming any cannabis products in their cars or otherwise on or near the facility.
When inventory shipments are received and are being taken into the inventory room or storage room, Authentic Fresno will utilize odor-neutralizing materials such as enzymatic catalysts which can degrade odorous compounds. These materials will be applied to surface areas throughout the store to reduce the risk of any odors.
In summary, the raw flower and the pre-rolls we sell on the sales floor and which we store in our inventory rooms are the main potential sources of cannabis odor. The odor mitigation practices described in Section 3.3 and the devices and techniques described in Section 3.5, shall prevent any such potential sources of odor from causing odors inside or outside of the store.
3.5. Odor Control Devices and Techniques
Authentic Fresno’s odor control plan ensures odors from cannabis are not detectable beyond the licensed premises. The first step of Authentic Fresno’s air quality management and odor mitigation plan will be to employ adequate heating, ventilation, and air conditioning (“HV AC”) systems as required by FMC Article 33 § 9-3309(j). Authentic Fresno will work with licensed engineers to assess and improve any existing HV AC system at the proposed location to ensure superior air quality and mitigate any odors that result from the proposed retail space.
Authentic Fresno will replace and maintain the highest quality carbon filters to provide clean air for all employees and consumers. In addition to the HV AC system, Authentic Fresno will engage with a local mechanical engineering firm to assess the facility, identify opportunities for improvement, and increase air quality and odor capture. Improvements may include but will not be limited to: (i) air handler selection so outside air can be conditioned and brought into the space without recirculation of smell into the occupied environment; (ii) dedicated systems for each area of the facility that engages in a different retail practice; (iii) air filtration and purification so exhaust and supply air does not negatively impact neighbors or customers; and (iv)
the use of carbon air filters or scrubbers.
Air Pressure
Authentic Fresno’s facility will be kept under negative pressure by means of an exhaust system with carbon filters for odor mitigation so that the odors generated inside the business will not be detectable on the outside of the business or at any of the properties in the immediate surrounding area. The exhaust discharge shall be designed with a high velocity outlet to eject the exhaust up and away from any neighbors or pedestrian traffic.
Carbon Filters
We believe that the best filtration system for cannabis facilities is carbon filtration. The various inventory, retail and storage areas will all be separated from other areas, allowing for odor control methods to be specific to the activity being performed. The carbon-filtered ventilation will utilize the Koch Filter DuraPure, which is used in cigar lounges, airport facilities, chemical plants and other businesses which require a high-powered air filtration system. The DuraPURE utilizes premium grade granular 60% activated carbon and its unique V-shaped frame holds up to 26 pounds of activated carbon.
Portable, carbon-filtered recirculating Can-Lite 14” x 40” (SKU: 358598) fans will further minimize or eliminate odors in the cultivation, storage and vault rooms and retail area, and will be placed near access points such as doors.
The combination of carbon exhaust air filtration and building pressure control represent the current best available technology.
Air Design Technique
The facility shall have no operable windows and will be kept locked and sealed at all times. All doors shall be sealed with proper weather stripping, keeping circulating and filtered air inside the facility. As mentioned previously, our employees will be trained to confirm that all doors and windows are properly closed, locked, and sealed.
Additionally, our Standard Operating Procedures require that employees check our products on a daily basis to ensure they are properly sealed and not emanating any odors. Our security guards and employees also vigilantly check for any consumption in the parking lot or near the vicinity of our store.
Our employees are also trained to detect any odors outside of the facility and to track the source of any odors which are detectable outside. Our professional HV AC specialists are engaged if we are not able to get rid of the odor within 24 hours. These techniques and our comprehensive odor mitigation system have successfully kept all our other retail locations free of cannabis odor.
3.6. Staff Odor Training and System Maintenance
Staff Odor Training
As mentioned previously, Authentic Fresno’s employees are trained as follows to minimize the likelihood that any odor is detectable outside of our store:
•
Employees are required to check every piece of inventory of cannabis products on a daily basis to ensure that all packages are properly sealed and packaged so that they do not emanate any odors.
Employees are trained to pay special attention to the packaging of raw flower and pre-roll flower to ensure they do not have any damage or openings and no odor is emanating from them. •
Employees are required to check that all windows and doors (other than the front door which remains unlocked during operations) are properly locked, closed and sealed. The HV AC system, negative air pressure, and the carbon filtration system, which were described in Section 3.5 previously, will ensure that all air passes through the carbon filtration system and only through the roof outlets.
•
Employees will also work with our security guards to make sure that people are not consuming any cannabis products within the store or within the general area of our store. •
Employees will be trained on how to detect, prevent, and remediate odor outside its facility.
Employees who detect any odors or are made aware of any odors are trained to do the following:
•
Investigate the likely source of the odor.
• Utilize on site management practices to resolve the odor event. • Take steps to reduce the source of objectionable odors. • Determine if the odor traveled offsite by surveying the perimeter and making observations of
tracking; (iii) documentation and notification of malfunctions; (iv) scheduled and performed training sessions; and (v) monitoring of administrative and engineering controls. Odor mitigation records will be made available to the City of Fresno and the Bureau of Cannabis Control upon request.
3.7. Waste Management Plan
Non-Cannabis Waste
Authentic Fresno will engage Fresno’s Department of
Public Utilities – Trash Disposal & Recycling Division
for its non-cannabis trash and recycling needs. Authentic Fresno strives to recycle 70-75% of all of its waste
produced. Packaging materials for cannabis products which are delivered to our store from distribution vehicles is our largest source of waste, and we will recycle all such cardboard boxes and packaging materials at this store as we have at our other stores. Shoppers will also receive
off their next purchase for bringing in their shopping bags which we also recycle. Non-cannabis waste will be disposed of in the trash bin on the northeastern corner of the property.
Cannabis Waste
Authentic Fresno will dispose of cannabis waste in a manner that ensures it is unusable and not diverted.
Authentic Fresno strives to prevent introduction of defective and/or unsafe cannabis in the marketplace.
Thus, safe and secure cannabis waste disposal will be a high priority.
Cannabis Disposal Locations
The cannabis waste will be kept inside a sealed and locked 20-gallon secure polyethylene container in the limited access section of the inventory room which will be locked until the container is picked up by our third party vendor Cannabis Waste Solutions
19 19 https://cannabis-waste.com/about/
Cannabis Goods Subject to Disposal
The destruction of cannabis goods prior to disposal will be done in accordance with 16 CCR § 5054 and recorded on video. Cannabis and cannabis products will be disposed of in accordance with all applicable waste management laws, including but not limited to, Division 30 of California’s Public Resources Code. In order to properly dispose of cannabis and cannabis products, the processes laid out in 16 CCR § 5054(d) will be followed. Those actions include, at a minimum, removing or separating the cannabis goods from any packaging, or container, and rending it unrecognizable and unusable. Vape cartridges will also be made unusable in accordance with 16 CCR § 5054.
The following cannabis products will be disposed of according to our Standard Operating Procedures:
•
Any returned type of cannabis flower or cannabis product including but not limited to edibles, pre- rolls, vape cartridges and topicals by a customer.
• Any empty or damaged packaging that is used to contain cannabis goods. • Recycled vape cartridges.
• Cannabis goods that have passed their expiration date. • Cannabis goods that fell onto the floor or have been otherwise contaminated. • Any cannabis good abandoned on the premises (left behind by a customer) may not be re-sold and must be disposed of as cannabis waste.
Methods of Destroying Cannabis Waste
Cannabis goods intended for disposal will be destroyed, at a minimum, by removing the goods from any packaging or container and rending them unrecognizable and unusable. Whenever practicable, Authentic Fresno will use a destruction method that is environmentally friendly and will result in compostable cannabis waste. For example, cannabis flower will be rendered unusable by grinding the flower and incorporating it with yard waste so that the resulting mixture is at least 50% non-cannabis waste by volume. At the time of pickup Cannabis Waste Solutions will spray a proprietary solution on the cannabis waste to further rend the cannabis unusable. The non-toxic rending fluid is added to saturate the biomass material. This fluid changes the color, taste, and texture of the biomass. It alters the chemical composition of the biomass. The active ingredients are both water and solvent soluble making any re-extraction impossible.
Waste Records
Authentic Fresno will account for destroyed cannabis goods in METRC and IndicaOnline. Authentic Fresno will record the following within 24 hours of each cannabis waste destruction or disposal:
(i)
name and type of cannabis goods; (ii) UID of cannabis goods; (iii) amount of cannabis goods, by weight or count; (iv) date and time of destruction or disposal; (v) name of employee performing destruction or disposal; (vi) reason for destruction and disposal; and (vii) entity disposing of the cannabis waste. Authentic Fresno will maintain cannabis waste destruction and disposal records for at least seven years per Authentic Fresno’s recordkeeping procedures as pursuant to 16 CCR § 5037(a)(7).
Authentic Fresno’s waste management vendor
, Cannabis Waste Solutions, will pick up the secure
containers every week from Authentic Fresno’s secure inventory room and will transport it into its facilities, where waste will be either recycled into energy for California’s power grid or made into various “new-gen” materials for the construction industry. Authentic Fresno will obtain documentation from the waste facility evidencing the date and time of the facility’s receipt of the cannabis waste and will maintain this documentation for at least seven years in compliance with 16 CCR § 5037(a)(7). See below Cannabis Waste Solutions Recycle Back Program which all of Shryne’s stores are a part of.
Waste Security
Authentic Fresno’s Director of Compliance will be responsible for waste management and will record on digital video all instances when cannabis product is being destroyed. All cannabis waste will be disposed of in the secure waste receptacle located in the limited-access area of the inventory room.
Before disposing of the cannabis, the batch number and product information from which the cannabis waste came from must be noted in the Retail Cannabis Disposal Log along with other pertinent information. A co-manager or General Manager must review and initial the Retail Cannabis Disposal Log prior to disposition.
After rendering the cannabis unusable as described below, the Director of Compliance and another employee will lock the cannabis waste into a 20-gallon secure polyethylene container provided by Cannabis Waste Solutions which will be further locked in the limited access section of the inventory room. The Director of Compliance and the General Manager will be the only employees with keys to the waste container. Only authorized employees can access the limited- access room with an electronic card. Cannabis waste will not be disposed of in the dumpster located on the property. Instead, Authentic Fresno will utilize Cannabis Waste Solutions, a licensed cannabis waste removal service.
PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 1 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
INTRODUCTION
Authentic 559 LLC dba Authentic Fresno is planning to develop a retail store commercial cannabis business in Fresno, CA and they have retained The Fire Consultants, Inc. (TFC) to evaluate the project and develop a fire safety plan to identify applicable fire protection criteria for the facility. This report will identify the major applicable fire protection requirements pertaining to the facility and will serve as the basis of discussion between design team members and the appropriate authorities (Fresno Police Department, Fresno Fire Department, Fresno City Manager, etc.) regarding these elements.
The major design objectives are to protect the occupants and inventory from a potential fire and achieve and maintain compliance with the applicable codes. This report does not provide requirements from the insurer but incorporates these where they have been provided to us by the operator.
APPLICABLE CODES
The project will be subject to the requirements of the 2019 California Building Code (CBC) and California Fire Code (CFC) with City of Fresno amendments, and City of Fresno Administrative Regulations for Commercial Cannabis Business.
BUILDING DESCRIPTION
The Authentic Fresno retail store will be approximately 7,800 square feet, will occupy an existing building built in 2000 and will have a layout as shown in Section 4.3. The City- approved floor plan and building to be occupied will be determined later, after City approval of the proposed project. The building will include approximately 2,500 SF front-of house (public access) and the rest will be back-of-house (employee only).
OVERVIEW
The Authentic Fresno retail store is classified as Mercantile Group M per the Building Code and will include both front-of-house areas and back-of-house areas. The front-of- house areas will include an entry check-in lobby and retail sales and display area. The back of house area will include the secured inventory room, break area, vault, offices, security offices, restrooms, deliveries, and Loading/Unloading areas. The retail store will sell a variety of cannabis products, including flower, pre-rolls, vapor products, edibles, capsules, topicals, tinctures, concentrates and other accessories. The products will come pre-packaged from distributors; the retail store will not undertake any packaging in the store. The retail store will not include any operations related to cannabis growing, processing, or extraction.
PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 2 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
SAFETY PLAN
The City of Fresno requires a Safety Plan for cannabis retail stores. This document is provided to address City requirements for a Safety Plan for the Authentic Fresno cannabis retail store at 4248 W Ashlan Ave.
4.1 SAFETY PLAN PREPARED BY A PROFESSIONAL FIRE PREVENTION AND
SUPPRESSION CONSULTANT
The Safety Plan and this summary of the Safety Plan were both prepared by The Fire Consultants, Inc. The Fire Consultants, Inc. is a fire protection engineering and consulting firm with widespread experience conducting fire protection and life safety assessments, developing fire protection reports and code compliance assessments, as well as, designing fire alarm, sprinkler and special suppression systems and reviewing those designs by others. Our firm has consulted on thousands of projects in multiple states, including California, Oregon and Washington. The main author of the Safety Plan and this summary of the Safety Plan is Mr. John Stauder, P.E., who is a licensed professional engineer, holding both Mechanical Engineering (M 33333) and Fire Protection Engineering (FP 1668) licenses in California. Mr. Stauder is also licensed in the states of Arizona, Oregon and Washington.
4.2 ACCIDENT AND INCIDENT REPORTING PROCEDURES
According to Authentic Fresno’s Employee Manual, an accident or incident is an unplanned occurrence that resulted or could have resulted in injury to people or damage to property, equipment or the environment. Even minor injuries such as cuts or sprains are considered accidents and “near misses” of even these “minor” accidents are also considered incidents.
Upon any accident or incident, an employee who experiences or witnesses an accident or who is initially told of the incident or accident by a customer must immediately report the accident or incident to one of the Co-Managers or the General Manager. The Co- Manager or General Manager will immediately assess whether the police, paramedics, fire department or any other authority should be contacted. The Co-Manager or General Manager will also determine whether medical treatment is required for any employee, customer or independent contractor. If appropriate, the Co-Manager or General Manager will also secure the scene to ensure the source of the accident or incident does not cause another accident or incident before the source is remediated.
Once the proper authorities have been contacted, medical treatment applied and the area of the incident or accident is secured, the employee who witnessed the accident or incident will assist a Co-Manager or the General Manager in filling out the accident/incident report below. The form will have the “employee” section and the “Manager” section so that a record of the incident/accident’s firsthand account is documented. The “Manager” section ensures that management follows up with this
PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 6 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
The occupant load for the uses of the spaces in the retail store is tabulated below per CBC Table 1004.5.
Use of Space
Occupant
Load Factor
(sq ft/person)
Space
Approx.
Area
(sq ft)
Occupant
Load
(persons)
Check-in Lobby 660 44Unconcentrated
Assembly 15 net Break Room 218 15
Mercantile 60 gross Sales and Display Area 1888 32
Secured Inventory Room 846 3
Retail Counters 1112 4
Deliveries 790 3
Loading/Unloading (1) 42 1
Storage, Stock,
Shipping Areas 300 gross
Loading/Unloading (2) 80 1
Office (1) 144 1
Office (2) 144 1
Security Office 250 2
Restroom (1) 70 1
Restroom (2) 70 1
Business Areas 150 gross
Circulation 982 7
Total 116
The retail store is separated into front-of-house areas and back-of-house areas. The retail store layout provides separate exiting from each area without passing through the other area. The occupant load for the public-accessed front-of-house area is 76 (including lobby and Retail area), and the occupant load for the back-of-house area is
40. The occupant load for front of the house area is more than 50 occupants, requiring two exits.
The egress path of travel limitations (feet) for the occupancy within the retail store is provided below per CBC Chapter 10 for sprinkler protected buildings, as the existing building is sprinkler protected. This is required to be measured along the natural path of PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 7 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
travel. The proposed layout is within these travel distances for sprinklered buildings, as shown in Figure 1.
Occupancy Common Path of
Travel Exit Access Travel Dead End Length
Group M
(Sprinklered) 75 250 50
Where the occupant load will exceed 49, or where the common path limitation is exceeded, a minimum of two exits are required per CBC Table 1006.2.1. These exits are required to be separated by a minimum of one-third the area longest diagonal of the area served for sprinkler protected buildings. The overall retail store facility will contain six separate exits, to meet the required separation; one at the front entry, one from the retail space and four at the rear, back-of-house area as shown in Figure 1. Authentic Fresno will install listed panic hardware on the exterior exit doors to meet CBC 1010.1.10 and UL 305.
CBC 1010.1.9 requires all egress doors to be readily openable from the egress side at all times, requiring only one operation to open the door, without the use of a key or special knowledge or effort, except in specific situations. The Ordinance Article 33 of the Fresno City Code for Commercial Cannabis Business requires the retail area access door be locked at all times with buzz-in access through the electronic/mechanical door from lobby. This door shall be unlocked and readily openable from egress side (retail side), all times. The main door is allowed to be provided with a locking device on the egress side, provided the following requirements are met:
a. The locking device is readily distinguishable as locked, and b. A readily visible durable sign is posted on the egress side of the door (inside) on or adjacent to the door, stating “THIS DOOR TO REMAIN UNLOCKED WHEN THIS SPACE IS OCCUPIED” in 1-inch black letters on a contrasting background.
Certain egress doors in the retail store will be provided with card readers to control access into the retail store, back-of-house area, and cannabis goods storage and inventory rooms, as noted on the sketch in Figure 2. This is to meet Article 33 of the Fresno City Code for Commercial Cannabis Business. These doors will be arranged to meet the following provisions per CBC Section 1010.1.9.10 to allow for free egress:
a. The door hardware that is affixed to the door leaf has an obvious method of operation that is readily operated under all lighting conditions b. The door hardware is capable of being operated with one hand and does not require more than one operation for unlatching
c. Operation of the door hardware directly interrupts the power to the electric lock and unlocks the door immediately
d. Loss of power to the electric locking system automatically unlocks the door e. Operation of the panic hardware releases the lock
f. The locking system units are listed in accordance with UL 294 The exit path from the occupied spaces in the rooms or through corridors will need to be a minimum unobstructed width of 36 inches where serving less than 50 occupants; the PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 8 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
width increases to 44 inches if serving 50 or more occupants per CBC Table 1020.2.
The aisles are required to meet these widths, and the aisle accessways (if not required to be accessible) are required to be at least 30 inches wide per CBC Section 1018.3 and 1018.4. As discussed above, the retail store is separated into a front-of-house area and a back-of-house area. Since the public areas has more than 50 occupants, two exits should be provided. Two exits will be provided directly from front of house areas and separate exits will be provided for back of house area. The exit path is allowed to pass through intervening rooms that are accessory to one another, provided that the required width is met, and a discernable path of egress travel is provided per CBC 1016.2.
Exit signs are required for rooms where two exits are required, per CBC Section 1013.
The facility will be provided with illuminated exit signs to facilitate egress. Emergency lighting will be provided for the means of egress in the facility to meet CBC Section 1008. The facility will be provided with emergency access and emergency evacuation plans to meet state and local fire standards.
The facility will not employ any devices that emit any medium such as smoke or fog that could obscure the means of egress in the building as prohibited per CFC Section 316.5.
4.4 FIRE EXTINGUISHERS AND OTHER FIRE SUPPRESSION EQUIPMENT
LOCATION
Sprinklers
The existing building includes automatic sprinkler system. The retail store facility shall maintain the existing automatic sprinkler system, as this greatly enhances life safety, enables code compliance more easily and provides property protection and can reduce business interruption in case of a fire.
The secured cannabis goods storage and inventories will include storage of the products on racks or shelves in cardboard packaging. The retail display area will contain products in display cases. The inventory is anticipated to include up to a Class IV commodity per the CFC and NFPA 13, Standard for the Installation of Sprinkler Systems, containing primarily the cannabis products in cardboard and plastic packaging. This is not considered a high-hazard commodity such as flammable liquids or rubber tires or Group A plastics. The product stacking on the display shelving and storage shelving will need to be maintained where the top of storage is no higher than 12 feet above the floor or at least 18 inches below the ceiling sprinklers (subject to NFPA 13 requirements). The inventory is not considered a high-hazard commodity and therefore should not be classified as high-piled combustible storage per the CFC if the top of the storage is maintained under 12 feet.
Subject to the capability of the existing water supply, fire main and existing sprinkler system design, the existing automatic sprinkler system can be utilized to protect the new use and occupancy of the retail store. The display and storage areas may be up to 10 feet in height or at least 18 inches below the ceiling sprinklers (subject to NFPA 13 requirements) and will require protection as Ordinary Hazard Group II (OH2) per NFPA PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 9 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
13 Table 13.2.1. The storage may contain up to 15% unexpanded plastic by weight or 25% by volume. If the existing sprinkler system can’t meet OH2 design criteria, the storage arrangement will require modification to meet the available sprinkler system limitations and NFPA 13 requirements.
Storage of any plastics or foams such as shipping supplies will need to be maintained under 6 feet to avoid classification as high-piled combustible storage and be maintained under 5 feet in order to be protected as Ordinary Hazard Group 2 per NFPA 13 Table
13.2.1. As the design progresses, the existing sprinkler system design will need to be evaluated with a licensed sprinkler contractor (C-16 Contractor). The sprinkler system design shall be in accordance with NFPA 13, Standard for the Installation of Sprinkler Systems and California Building and Fire Code and City of Fresno amendments. The sprinkler system will need to be inspected, tested, and maintained in accordance with the California amended version of NFPA 25, Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems.
Fire Alarm
Based on discussion with the Owner/operator, we understand that the existing retail store location is provided with a fire alarm system. The existing fire alarm including initiation devices and occupant notification shall be maintained once the project is awarded to Authentic Fresno. Typically, the fire alarm will consist of combination smoke / carbon monoxide / heat detection and sprinkler waterflow connected to a fire alarm control panel, and that initiation of such devices will automatically notify emergency responders and employees and public customers.
Since an automatic sprinkler system is provided, the facility shall include at least one exterior approved audible device, activated by sprinkler water flow as required by CBC Section 903.4.2. Upon actuation of the automatic sprinkler system, the fire alarm notification appliances throughout the facility will activate. The fire alarm system will also be required to monitor the sprinkler system.
The fire alarm system will need to be installed, inspected, tested, and maintained in accordance with NFPA 72, National Fire Alarm and Signaling Code and California Fire Code and Title 19.
PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 10 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
Fire Extinguishers
The retail store is anticipated to contain Class A fire hazards, which are ordinary combustibles such as paper and wood, and Class C fire hazards, which are electrical fires. The primary hazard in the facility is anticipated to be Class A fire hazards.
The fire extinguishers in the facility are required to be rated at a minimum 2A:10B:C for the hazards in the building and spaced up to 75 feet travel distance per CBC Table 906.3(1).
The fire extinguishers are required to be located in conspicuous locations per CFC Section 906, either mounted on brackets or inside fire extinguisher cabinets, where they will be readily accessible and immediately available for use, with the top no more than 5 feet above the floor. See diagram below for the proposed locations of fire extinguishers in the retail store. The fire extinguishers will need to be installed and maintained in accordance with CFC Section 906.2 and California Code of Regulations, Title 19, Division 1, Chapter 3.
Exact fire extinguisher locations will be provided to meet 2019 California Building and Fire Code Section 906 as part of the tenant improvement permit submittal. The possible location of devices for fire alarm system and fire alarm control panel is provided below. The location of manual pull station shall be confirmed with AHJ.
The possible location of devices for fire alarm system and fire alarm control panel is provided in the diagram below, and contemplates approximately:
[5] Fire extinguishers being located at Deliveries, Counters, Retail and Secured Inventory
[25] Smoke and Carbon Dioxide Detectors being placed in all rooms [20] Horn and Strobe being placed in all rooms
[1] Knox Box being located at main entrance
PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 14 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
In addition to the Fire and Medical Emergency Policies and Training mentioned above, Authentic Fresno has the following policies and procedures to maintain a safe working environment.
First Aid Log
Any injury or illness that is reported to a first-aid facility or medical facility must be recorded on a First-Aid Log form. This includes non-occupational cases and injuries, or illnesses treated that involve vendors, suppliers, Contractors/Subcontractors, client personnel, and any other third party. First-Aid Logs or any portion of a log are not for general distribution. Requests for such information shall be processed by the human resource manager/supervisor.
First Aid Kits
First aid supplies shall be easily accessible when required. First-aid kits and required contents shall be maintained in a serviceable condition. Unit-type kits shall have all items in the first-aid kit individually wrapped, sealed, and packaged in comparable sized packages. The commercial or cabinet-type kits do not require all items to be individually wrapped and sealed, but only those which must be kept sterile. Items such as scissors, tweezers, tubes of ointments with caps, or rolls of adhesive tape, need not be individually wrapped, sealed, or disposed of after a single use or application.
A roster, denoting the telephone numbers and addresses of doctors, hospitals and ambulance services available to the Authentic Fresno retail store, shall be posted at or near each first-aid station.
Safety Rules for All Employees
It is the policy of Authentic Fresno that everything possible will be done to protect employees from accidents, injuries and/or occupational disease while on the job. Safety is a cooperative undertaking requiring an ever-present safety consciousness on the part of every employee. If an employee is injured, positive action must be taken promptly to see that the employee receives adequate treatment. No one likes to see a fellow employee injured by an accident. Therefore, all operations must be planned to prevent accidents. To carry out this policy, the following rules will apply:
1. All employees shall follow the safe practices and rules contained in this manual and such other rules and practices communicated on the job. All employees shall report all unsafe conditions or practices to the proper authority, including the human resources manager/supervisor.
2. The human resources supervisor/manager shall be responsible for implementing PROPOSED CANNABIS RETAIL STORE – FRESNO, CA 20-2314 – Page 15 4248 W ASHLAN AVE FIRE SAFETY PLAN November 18, 2020
these policies by insisting that employees observe and obey all rules and regulations necessary to maintain a safe workplace and safe work habits and practices.
3. Good housekeeping must be practiced at all times in the work area. Clean up all waste and eliminate any dangers in the work area.
4. Suitable clothing and footwear must be worn at all times, shoes with thin or torn soles are not permitted.
5. All employees will participate in safety meetings conducted by their supervisor on a regular basis to continuously provide a safe workplace for all. This is an essential part of Authentic Fresno’s program for protecting our employees from accidents and illness.
6. Anyone under the influence of intoxicating liquor or drugs, including prescription drugs which might impair motor skills and judgment, shall not be allowed on the job.
7. Horseplay, scuffling, and other acts which tend to have an adverse influence on safety or well-being of other employees are prohibited.
8. Work shall be well planned and supervised to avoid injuries in the handling of heavy materials and while using equipment.
9. No one shall be permitted to work while the employee's ability or alertness is so impaired by fatigue, illness, or other causes that it might expose the employee or others to injury.
10. There will be no consumption of alcohol or cannabis on the job.
11. All injuries should be reported to the Supervisor, or 911 so that arrangements can be made for medical or first aid treatment.
12. When lifting heavy objects, use the large muscles of the leg instead of the smaller muscles of the back.
13. Do not throw things, especially material and equipment. Dispose of all waste properly and carefully.
5. SECURITY PLAN
6. LOCATION
6.1. Description of Proposed Location
Overall Property
Our proposed location is 4248 W Ashlan Avenue, Fresno, CA 93722. The assessor’s parcel number is 510-100-48S and is zoned CG. As verified by the Zoning Inquiry Letter submitted with this application, there are no schools, daycares or youth centers within 800 feet from this location.
The single, standalone building is set back behind 21 parking spots to the south of the building and a large parking lot flanking the east side of the building so that our popular operation will not create any parking issues for the surrounding businesses. There are only 3 other buildings within 400 feet of this location – one is the former Ashlan Inn, which has closed and is not occupied, the second is the 7-Eleven 150 feet away and separated by a large parking lot, and the third is Valero Gas Station on the other side of Ashlan Avenue. The rest of the surrounding area is undeveloped and vacant lots. This lack of businesses and residences nearby means that our presence will have minimal effects on our neighbors and will further reduce the likelihood of traffic or parking becoming an issue at this location. As can be seen in our site diagram, our location will have two points of ingress and egress off of W Ashlan Ave which will reduce the likelihood of any bottlenecks being created due to our operations. Customers can also utilize the sidewalks on both sides of Ashlan Avenue to access the store.
Building
The building is a one story 7,800 square foot building on approximately 1.23 acres which is surrounded by 94 parking spots. The wooden building is currently occupied by restaurant Yosemite Falls Cafe which will vacate if we are approved for a cannabis license. Authentic Fresno will institute major renovations to the building’s facade, signage, painting, roof work, parking lot, and landscaping so that the building looks brand new, while still keeping it within the character of the surrounding area. As can be seen in the exterior rendering below and pursuant to FMC Article 33 § 9-3309(d), the store will not have any cannabis signs, cannabis products or other logos or words which identify that cannabis is sold at the location. Products will also not be visible from the exterior.
Sensitive Uses
FMC Article 33 § 9-3307(c) requires that all cannabis locations be at least 800 feet away from:
1. A cannabis retail business.
2. A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12).
3. A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted.
4. A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted.
We have reviewed the area and there are no sensitive uses within 800 feet of our proposed location. The closest sensitive uses nearby are as follows:
Compatibility with Designated Zone
Our property is zoned Commercial – General (CG) along with the immediately adjacent properties.
Across Ashlan Ave are also commercially zoned properties (Community Commercial). To the northeast, the properties are zoned Light Industrial (IL). Our property is far enough from residential zones to not impact traffic in their area and it is surrounded by open areas that will encourage future developments which would increase property values and revitalize this underused area of the city.
Being located next to a 7-Eleven and a Valero elicits a sense of convenience where residents won’t have to go too far out of their way to obtain the items they enjoy. Just down the road to the west are a variety of restaurants, a grocery store, auto parts store, and a Starbucks.
Additionally, there are no parks within walking distance so residents do not need to be worried about customers purchasing our product and then immediately consuming it in the vicinity. There is an assisted living home, Paintbrush Assisted Living, within walking distance which will allow the retirees to have ready access to medicine.
Proximity to Police and Fire
Our location is less than 3 miles away from police and fire stations. While we hope that they are never called upon in an emergency situation, their proximity to our store means that they can quickly arrive at our store to assist.
Fresno Police Department Northwest District
3074 W Shaw Ave, Fresno, CA 93711
6-7 minute drive
Less than 3 miles away
Fresno Fire Station No.12
2874 W Acacia Ave, Fresno, CA 93705
4-6 minute drive
Less than 3 miles away
Site Improvements
As detailed in the floor plan, the property located at 4248 W. Ashlan Ave will be converted from a restaurant to an expansive retail store. From entry to exit, every surface and facet of our store reflects quality through attention to detail and clean design. It is our goal to express the quality of our products through stark lines and colors, well-lit interiors, and cutting-edge technology.
Parking Lot Improvements
The parking lot will be resurfaced as needed and the parking spot lines will be repainted for visibility.
Additionally, landscaping will be redone to include drought resistant plants along the parking lot area.
The existing freestanding sign will be updated to match the renovated façade of the building as discussed in the following section. This sign will be in compliance with 16 CCR § 5040 and FMC Article 26.
To ensure visitor safety, adequate lighting will be installed throughout the parking lot which will be aimed downward in order to prevent light spillage onto our neighbors’ properties.
Building Exterior Improvements
With a sound structure already in place, Authentic Fresno will upgrade the exterior façade to create a modern yet unassuming feel. The existing log-cabin siding will be resurfaced to stucco with a clean white paint and black accents along windows, door frames, and columns to complement the existing stone façade which will remain.
A main entrance/exit door will be added to the left side of the protruding room from the rest of the building. This is to ensure one entrance to be used by the members of the public to enter/exit the premises in accordance with FMC Article 33 § 9-3310(b)(1)(ii). Having the main entrance to the left allows for additional space for customers to line up along the front of the building and to wrap at the existing patio area to the right, and then continue along the back of the building to ensure 6 foot distancing because of COVID. This will keep customers out of harms was by leaving the parking lot completely open to vehicles. Please see the render below of the Exterior.
Site Security Improvements
As further discussed in the Security Plan, security cameras will blanket the interior and exterior of the property in addition to shatter-resistant window film which will be darkened as to ensure general public cannot see into the interior in compliance with state regulations.
Floor Plan Improvements
Design Team
Authentic Fresno has contracted with the Temeka Group
25 of Corona, CA, to work with us in creating
the vision for both our interior and exterior space. With a world-class team of professionals, Temeka has provided architectural designs, elevations, millwork, and signage to fully develop the concept.
After creating a layout for the interior space, the skilled fabricators at Temeka will then design, build, and install custom fixtures for a finished look that contributes to the overall customer experience. The highest standards of craftsmanship go into the millwork and cabinetry which are made in-house at the Temeka facility.
The Temeka Group means excellence, as is evidenced by their impressive list of clientele, which includes multiple dispensary stores, The George Jones Museum, Reef Stores, Vans, Amazon, Uber, The Glen Campbell Museum, Guess, and Quicksilver, as well as designing the gift shops for professional 25 https://www.temekagroup.com
sports teams including the LA Lakers, Dodgers, Galaxy, Anaheim Ducks, and Toronto Maple Leaves.
It is our privilege at Authentic Fresno to work with the Temeka Group and believe their experience and high standards will be representative of the quality that Authentic Fresno seeks to convey.
Lobby
A glass wall will be installed to separate the lobby from the retail area providing customers a further glimpse in to their future experience while keeping in mind FMC Article 33 § 9-3310(a)(4)’s requirement for a separated lobby with buzz-in entry system for added security. The lobby will feature rotating work from local artists. The door to the right of the reception desk in the entry to the retail floor.
The door to the left of the desk is a one way door for customers exiting the retail floor.
Retail Floor
The existing carpet and tile flooring will be replaced with black-and-white marble-effect epoxy flooring.
As a customer’s eyes take in the unique flooring and travel up the length of the walls they will see the lit up glass casing counters which house our products for immediate sale and defines our modern design concept which is the hallmark of our stores. Allowing maximum visibility while keeping the product pristine and secured.
The walls will be adorned with vendor shelving to display empty product packages which highlight the products of the vendors we sell at the store. The HD TVs on the walls will also showcase the products we sell to add to the visual experience at our store. Authentic stores are renowned for their modern and luxurious interior and Hollywood Reporter recognized our store as an “art gallery cannabis emporium” in their August 21, 2019 feature on our downtown Los Angeles store. 26 The recessed lighting will include LED light fixtures throughout to keep the sales floor properly illumi- nated for staff and customers.
Accessibility
The location is less than 400 feet off of the Ashlan Avenue Exit off of the 99 Highway. The store will also be highly visible from the 99 Highway for the 88,000 cars that traverse it daily. This part of Ashlan Avenue also has a high 20,300 daily traffic count and is less than half a mile away from popular destinations such as Starbucks, Walgreens, Foster Freeze and Subway which are all on Ashlan Avenue.
Additionally, the proximity to the freeway will also bolster our industry best delivery platform, Blaze, permitting us to deliver to addresses up and down the 99. See below a map of the area. 26 https://www.hollywoodreporter.com/news/la-brand-stiiizy-opens-flagship-art-gallery-cannabis-emporium-1233500 Similarities with Our Los Angeles Location
Our Los Angeles location is the highest grossing store in California at approximately $55 million per year. Four main reasons for our success in Los Angeles are (1) its close proximity to the 101 Freeway, (2) 40 parking spaces, (3) 6,500 square feet and (4) our reputation for selling safe, high quality products at illicit market prices. We believe this Fresno location checks off each of these characteristics which make our Los Angeles store a success. The Fresno location has even better visibility from the freeway, more parking spots and a larger retail floor. Add in the fact that the Los Angeles store has 10 other dispensaries it competes with within a 5 mile radius, and we have every reason to believe this Fresno location should have as much success as our Los Angeles location. See below our revenue numbers for the Los Angeles location during the last three months:
Floor Plan
As can be seen in the floor plan following, the customer will enter the store through the public entrance
on the south side of the building. The customer will enter into a 660 square foot lobby where the check- in associates will check the customer’s ID and register their profiles into our Point of Sale system. The customer will be buzzed into our retail floor directly north of the lobby area after IDs are verified.
The 3000 square foot retail floor will have a continuous shopping counter on the west, north and east side of the retail floor. The rest of the 3000 square foot space will be mostly open floor for customers to take in the visual experience and for customers to form lines. A locked employees only door on the west side of the retail floor will permit employees to stand behind the employee only portion of the shopping counters and for employee to access the rest of the employee-only back of house area. These employee- only areas include the security office on the south west side of the building, a 790 square foot delivery preparation area on the north west side of the building, a secured inventory room on the east side of the retail floor, two offices and a secure loading and unloading area on the far east side of the building next to the secure entrance/exit.
6.2. Photograph of Building Frontage
See below photographs of the front of the building.
6.3. Premise Diagram
See below a premise diagram that shows the overall parcel and neighboring parcels and buildings. As can been seen in the diagram following, the large 1.23 acre lot will contain 94 dedicated parking spots on the south and east side of the property. The business to the north of us has permanently closed and the 7-Eleven to the east of our parcel is the only other business adjacent to our Business. The business will have two driveways to enter and exit the parking lot off of West Ashlan Avenue on the south side of the store entrance. Due to our business sitting in the middle of such a large parcel and away from other businesses, we should have very little impact on any other persons or businesses.
7. COMMUNITY BENEFITS AND INVESTMENTS PLAN
Shryne Group has a track record of providing community benefits in all of the cities where we operate.
In the past year alone, we’ve donated over to various non-profits such as the Boys and Girls Club, Food Share, Imperial Valley Food Bank, United Playaz, and veterans’ organizations such as Battle Brothers and Vet Hunters. Our employees also utilize their 24 hours of paid time off for volunteerism by volunteering at local homeless shelters, clean-up projects such as Battle for the Bay and local food drives. In addition to the commitments we have already made set forth in Section 7.1 below, we will provide monetary support, food and supplies and volunteer time on a monthly basis to homeless shelters, veteran organizations and other organizations which assist Fresno citizens of need. See below examples of volunteerism by our employees just within the past 3 months.
7.1 Social Responsibility Plan
In continuing our history of social responsibility in every city where we operate, we have made the following contributions and commitments in Fresno.
• Fresno County Economic Development Corporation27: The Fresno County Economic Development Corporation is the premier non-profit organization in Fresno committed to job and business development in Fresno. During the height of the COVID-19 pandemic when thousands were experiencing job loss, we made an initial contribution of to the Fresno County Economic Development Corporation to support their job training and job creation efforts. We have also committed to provide an annual contribution of a year if we have the honor of opening a business in Fresno. In our discussions with this organization, we are hoping to help fund the Central Valley Training Center, which is partnered with the California High Speed Rail Authority, to provide a 16 week apprenticeship training that will then provide job placement to program participants on the high speed rail system. We will also partner with the Fresno County Economic Development Corporation to recruit low-income Fresno residents, unemployed Fresno residents, former foster home youths and Fresno residents living in low income census tracts for positions at our company.
We look forward to discussing various partnerships with the Fresno County Economic Development Corporation to create more job opportunities for Fresno residents. See the end of this section for our LOI with the Fresno County Economic Development Corporation. •
Shryne Foundation: Authentic Fresno will utilize the Shryne Group’s own charitable giving group, the Shryne Foundation for continued support in the community. The Shryne Foundation has an advisory board consisting of Shryne Group management, which will work with selected local community representatives to guide the charitable priorities as needed in the city of Fresno.
Areas of focus for the Foundation include drug education and youth related prevention, economic development, education, environment, homelessness, and drug abuse. Under these areas of focus we will be able to address community needs such as new technology, job training, or a healthy lifestyle/ nutrition cam
paign. Additional organizations we are committed to supporting through the Foundation include the Boys & Girls Clubs of Fresno County, Central California Food Bank, Marjaree Mason Center, Pinedale Community Group, and the United Way of Fresno among others. We are committed to providing a year to this Foundation annually.
27 https://www.fresnoedc.com/
• Fresno City College: Authentic Fresno has partnered with Fresno City College to implement and execute our Scholarship and Apprenticeship Program. We will sponsor 3 Fresno residents who would qualify as a Social Equity Applicant under FMC
Article 33 § 9-3316(b)(6) to attend classes at
Fresno City College towards their Certificate of Retail Management Certificate (or another certificate if they so desire). Books and other similar expenses will also be paid for. These scholarship recipients will also have the opportunity (but are not obligated) to work part-time at one of our retail, cultivation, manufacturing or distribution facilities in Central California. Our goal with this program, which has been a great success in Los Angeles, is to provide low income individuals, individuals who have been convicted of a cannabis crime and other Fresno citizens who would qualify as a Social Equity Applicant the educational foundation and hands on experience in cannabis to be able to own or operate his or her own cannabis business. See the end of this section for our LOI with the Fresno City College.
•
Local, Unionized Jobs for Veterans, Formerly Incarcerated and Low Income Residents: As mentioned previously
, we will hire at least 70% Fresno residents and provide unionized, living wage jobs. We have a partnership with JVS28 for them to place veterans at our organization and hope to recruit Fresno veterans for our store. We will also work directly with the Fresno County Economic Development Corps to identify low income residents who have annual family income below 80% AMI, are unemployed or receiving public assistance. As mentioned below, we will also look to hire local residents who were convicted of cannabis related offenses who we will have the opportunity to meet at our expungement clinics.
•
Assisting Fresno Social Equity Applicants: As mentioned previously, we currently support 13 individuals
in San Francisco, Oakland and Los Angeles who qualify as social equity cannabis owners in these respective cities. In Oakland, we are also incubating 3 social equity individuals by providing them with free rent on spaces for them to operate their manufacturing and distribution businesses and also by providing them with legal, accounting and business assistance for their businesses. We have also committed to providing various social equity business owners shelf space for their cannabis brands. We are committed to providing the following to the Social Equity Applicants in Fresno:
28 https://www.jvs.org/
• Fresno Santa’s Village/Fresno Police Department: We also supported the Fresno Police Department with monetary contributions in each of 2019 and in 2020 towards their annual Santa’s Village event. W
e will continue to support this cause every year.
Local Co-Owner Matt Garza also has a long history of giving back to the Fresno community. Matt and his family contribute to various local causes, including contributing annually to the following causes:
•
Monetary contributions to Fellowship of Christian Athletes • Donation of shoes and clothes to Valley Children Medical Center • Participation in St. Jude’s Catholic Church food and gift drives • Hosting Casa Fresno Madera to raise funds to support foster children • Donation of money and athletic equipment to various Fresno County schools Matt and the Shryne Group look forward to identifying additional organizations and individuals who we can assist as part of our community benefits pledge. At the very least, we are committed to having all of our employees volunteer at least 24 hours a year at the expungement clinics described below, the Valley Children Medical Center, Marjaree Mason Center and veteran and homeless or ganizations
within Fresno. Each of our stores average around 300 volunteer hours per year and we believe we will surpass 300 hours at this location because of the local ties we have already established through Matt Garza’s local connections. Our employees will be able to take advantage of the monthly volunteer events organized through our Community Benefits Director DeRon Waller and they will be permitted to find volunteer events on their own to take full advantage of the volunteerism encouraged by our organization.
7.1.1. Expungement Clinics
Pursuant to Proposition 47, which permits Californians to reclassify or expunge certain criminal records, we have hosted expungement clinics in conjunction with our union partner, the UFCW. We strongly believe that it is inequitable for certain crimes, including simple drug possession, to prevent people from future job opportunities and are committed to holding expungement clinics in Fresno at least twice a year. To the right is our a flyer for a recent expungement clinic we held at our store in San Bernardino.
7.1.2. Environmentally Sustainable Business Model
Authentic Fresno will be governed by Shryne Group’s Climate Action Plan, which is a commitment to ensure climate neutrality by 2025. The plan requires Authentic Fresno to use sustainability sourced materials such as lumber from the Timber Products Company, which is environmentally certified and adheres to the Sustainable Forestry Initiative and the California Forest Protection Act. All the timber we use will also come from environmentally responsible tree farms, will contain no added formaldehyde and will use finishing which will not result in release of any VOCs (volatile organic compounds).
Authentic Fresno will also utilize solar power through solar panels placed on the exterior and the roof. Our solar inverter will convert direct current electricity into usable alternating current electricity.
Because the inverter will be connected to the power grid, any excess power generated by the solar system will be fed into the grid for others in the community to use. Additionally, we will use LED lighting and automatic sensors to limit unnecessary electrical use. To further minimize power consumption, we will install natural lighting solutions such as Solatubes which captures natural light from the outside and generates light in exponential amounts through the use of reflective materials which bounce off of each other.
Our goal at every store is to recycle 75% of all materials. Our retail stores receive large amounts of cardboard and other packaging materials, and we will reuse all of this packaging materials for our own deliveries. We also provide customers with $0.50 off their purchase if they bring their previous Authentic or Stiiizy (our 2 retail brands) shopping bag into the store.
Our cannabis waste management company, Cannabis Waste Solutions, also recycles our cannabis waste to be used for asphalt or construction materials, and this commitment to recycling is one of the reasons we engage them at all our facilities.
All of our delivery vehicles to be used out of Fresno will be electric or hybrid vehicles to further reduce our carbon footprint. We will also install Electric Vehicle Charging Stations and install bike racks to encourage customers and employees to reduce greenhouse gas emissions.
7.1.3. Using Vacant Brownfield Land
As can be seen in the photo below, the northeastern portion of the parcel we will own, contains a vacant and undeveloped area which is currently in disrepair. With the City’s approval, we hope to develop this area of our parcel into a parking lot and signage to advertise our business. This area is currently accumulating large amounts of trash and other wastes and we believe developing this area into parking or some other use will be a benefit to the community.
Science of Cannabis 101
Smoking
• Cannabinoids inhaled into lungs and Alveoli (small air sacks in your lungs) enter the bloodstream then cross
the blood-brain barrier
•
Effects occur within 90 seconds
• Smoking allows user to enjoy benefits of all
cannabinoids and terpenes of the flower together
•
The various strains allow users to experiment and find
one that works best for their needs
Vapes
• Smokeless delivery which uses warm air or heat rather than a flame
•
Similar effect to smoked cannabis, but you are typically heating extract instead of flower
• Early onset - effects appear within 90 seconds
•
Some pens are disposable while others are cartridges
Edibles
• Food products that have been infused with cannabis
• Companies use different methods to extract the
cannabinoids and then add them to their products
• Edibles hit people harder because THC turns into
11 -hydroxy-THC by liver cells before entering the
bloodstream
•
Effects occur between 15 minutes to 2 hours after
ingestion
We also have educational materials on our website geared towards parents who want to teach their kids about the dangers of underage cannabis use. The content contains recommended links such as to the CDC’s website on teen drug use to provide scientific information regarding teen drug prevention and abuse. See below an example of the type of information we share on our website.
Additionally, we have created a foundation called the Shryne Foundation which is a fund dedicated to youth drug prevention and education, economic development, education and homelessness. The Foundation would be co-managed by Shryne Group executives and members of the Fresno community and would provide monetary contributions to fund drug education programs and drug prevention programs in coordination with the City of Fresno. We are committed to providing a year to this Foundation annually.
We have also recently partnered with the leading Spanish language magazine in California, Para Todos (http://paratodos.com/pt/), for us to provide monthly educational articles on cannabis for their Spanish language readers. The topics covered in our monthly articles include preventing youth access, health and science of cannabis, dosing and other topics which can educate the Spanish speaking community in Fresno and other cities in California on the risks of youth use of cannabis and drug addiction.
Additionally, Authentic Fresno will host monthly education seminars on cannabis products and related safety issues. Interactive presentations by an Authentic Fresno employee or other cannabis expert will be followed by Q&A sessions. Past presentations include optimal and safe dosing amounts, the dangers of driving under the influence, and different consumption methods and their effects.
Shryne Group has also engaged former Ultimate Fighting Championship veteran Tyson Griffin to participate in our cannabis education seminars at all its retail locations
29. Tyson is an advocate of the
safe consumption of cannabis and CBD, as well as stretching exercises, to reduce joint pain, anxiety, and depression. Once the proposed store is open, Tyson will hold regular educational seminars at the store to educate citizens on safe cannabis use along with cannabis and holistic well-being.
We are committed to educating our customers and youth on drug abuse prevention. All cannabis products should only be consumed by persons who are at least 21 years old and in a safe and responsible fashion. The success of our industry depends on this.
7.3 Commitment to Fresno Community Reinvestment Fund
In addition to providing assistance to local cannabis equity businesses by providing them with legal, accounting and compliance services, providing shelf space and advising them on their business, Shryne Group is committed to providing at least a year to the Fresno Community Reinvestment Fund to further assist local cannabis equity businesses.
29 https://www.tysongriffin.com/
ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT
This Assignment and Assumption of Purchase Agreement (the “Assignment”) is made as of November 1, 2020, by and between SGI Retail LLC, a California limited liability company (the “Assignor”), and Authentic 559 LLC (the “Assignee”) with reference to the following facts:
In consideration of the foregoing premises and the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1. Assignment and Assumption. Assignor hereby assigns to Assignee the Purchase and Sale Agreement dated as of September 4, 2020 , by and between Assignor and MMPF, LLC for the premises located at 4248 W. Ashlan Avenue, Fresno, CA 93722 (the “ Purchase Agreement”) and Assignee hereby assumes and agrees to perform and discharge those obligations and liabilities under the Purchase Agreement.
2. Counterparts. This Assignment may be executed in one or more counterparts, each of which shall for all purposes be deemed an original and all of such counterparts, taken together, shall constitute one and the same Assignment. The exchange of copies of this Assignment and of signature pages by facsimile transmission or .PDF delivered via email will constitute effective execution and delivery of this Assignment as to the parties and may be used in lieu of the original Assignment for all purposes.
3. Governing Law. This Assignment and the rights of the parties hereunder will be governed by, interpreted, and enforced in accordance with the laws of the State of California without regard for conflict of laws rules.
4. Severability. If any provision of this As signment is held to be illegal, invalid or unenforceable under the present or future laws effective during the term of this Assignment, such provision will be fully severable and the remaining provisions of this Assignment will remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first set forth above.
ASSIGNOR ASSIGNEE
SGI Retail LLC Authentic 559 LLC
______________________ __________________________ Name: Brian Mitchell Name: Brian Mitchell
Its: Authorized Signatory Its: Authorized Signatory
Brian Mitchell (Nov 23, 2020 12:50 PST)
Brian Mitchell
Brian Mitchell (Nov 23, 2020 12:50 PST)
Brian Mitchell
PLANNING AND DEVELOPMENT DEPARTMENT
2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604
(559) 621-8277 FAX (559) 498-1026
November 19, 2020 Please reply to:
Rob Holt
(559) 621-8056
Brian Mitchell
Shryne Group
728 E Commercial St
Los Angeles, CA 90012
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20 -04070 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 4248 WEST
ASHLAN AVENUE
(APN 510-100-48S)
Thank you for your inquiry regarding the allowance of new cannabis retail uses. The requested information about cannabis retail uses was analyzed using Article 27, Chapter 15 of the Fresno Municipal Code (FMC) of the City of Fresno. Please note, all research for this inquiry is based on existing land development of the subject property . If there are multiple buildings on the subject property, this research was based on the address provided in the request. This research does not take into effect of future development unless provided in your application request. With that, research of a proposed cannabis retail business on the subject property conveys the following:
1. All cannabis retail businesses must be located on property zoned DTN ( Downtown Neighborhood), DTG ( Downtown General ), CMS ( Commercial Main Street ), CC (Commercial Community), CR ( Commercial Regional), CG ( Commercial General), CH (Commercial Highway), NMX ( Neighborhood Mixed-Use), CMX ( Corridor/Center Mixed- Use), RMX ( Regional Mixed -Use), and must meet all of the requirements for development in these zones, including, but not limited to, parking, lighting, building materials, etc.
The subject property is zoned CG , which is one of the allowable zone districts for cannabis retail businesses. Development standards of the CG zone district are available in Sections 15-1203, 15-1204, and 15-1205
of the FMC. The subject location meets
the zone district requirement, per Section 15-2739.B.1.a of the FMC, for a cannabis retail business.
2. All building(s) in which a cannabis retail business is located shall be no closer than 800 feet from any property boundary containing the following: (1) A cannabis retail business; (2) A school providing instruction for any grades pre- school through 12 (whether public, private, or charter, including pre- school, transitional kindergarten, and K -12); (3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted; and, (4) A youth center that is in existence at the time a complete commercial cannabis business permit is submitted.
Zoning Inquiry P20-04070
4248 West Ashlan Avenue
November 19, 2020
The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business.
3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC.
4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District), they shall be dispersed evenly by Council District.
The subject property is in Council District 1 . There are currently no cannabis retail businesses located in Council District 1. This location requirement is satisfied for a cannabis retail business.
Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15 -2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc.
This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for erro rs and omissions. All information was obtained from public records held by the Planning and Development Department.
A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have quest ions regarding this matter, please contact me by telephone at 559-621-8056 or at [email protected].
Cordially,
Rob Holt, Planner III
Development Services Division
Planning and Development Department
PLANNING AND DEVELOPMENT DEPARTMENT
2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604
(559) 621-8277 FAX (559) 498-1026
November 19, 2020 Please reply to:
Rob Holt
(559) 621-8056
Brian Mitchell
Shryne Group
728 E Commercial St
Los Angeles, CA 90012
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20 -04070 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 4248 WEST
ASHLAN AVENUE
(APN 510-100-48S)
Thank you for your inquiry regarding the allowance of new cannabis retail uses. The requested information about cannabis retail uses was analyzed using Article 27, Chapter 15 of the Fresno Municipal Code (FMC) of the City of Fresno. Please note, all research for this inquiry is based on existing land development of the subject property . If there are multiple buildings on the subject property, this research was based on the address provided in the request. This research does not take into effect of future development unless provided in your application request. With that, research of a proposed cannabis retail business on the subject property conveys the following:
1. All cannabis retail businesses must be located on property zoned DTN ( Downtown Neighborhood), DTG ( Downtown General ), CMS ( Commercial Main Street ), CC (Commercial Community), CR ( Commercial Regional), CG ( Commercial General), CH (Commercial Highway), NMX ( Neighborhood Mixed-Use), CMX ( Corridor/Center Mixed- Use), RMX ( Regional Mixed -Use), and must meet all of the requirements for development in these zones, including, but not limited to, parking, lighting, building materials, etc.
The subject property is zoned CG , which is one of the allowable zone districts for cannabis retail businesses. Development standards of the CG zone district are available in Sections 15-1203, 15-1204, and 15-1205
of the FMC. The subject location meets
the zone district requirement, per Section 15-2739.B.1.a of the FMC, for a cannabis retail business.
2. All building(s) in which a cannabis retail business is located shall be no closer than 800 feet from any property boundary containing the following: (1) A cannabis retail business; (2) A school providing instruction for any grades pre- school through 12 (whether public, private, or charter, including pre- school, transitional kindergarten, and K -12); (3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted; and, (4) A youth center that is in existence at the time a complete commercial cannabis business permit is submitted.
Zoning Inquiry P20-04070
4248 West Ashlan Avenue
November 19, 2020
The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business.
3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC.
4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District), they shall be dispersed evenly by Council District.
The subject property is in Council District 1 . There are currently no cannabis retail businesses located in Council District 1. This location requirement is satisfied for a cannabis retail business.
Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15 -2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc.
This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for erro rs and omissions. All information was obtained from public records held by the Planning and Development Department.
A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have quest ions regarding this matter, please contact me by telephone at 559-621-8056 or at [email protected].
Cordially,
Rob Holt, Planner III
Development Services Division
Planning and Development Department
EXHIBIT B
PLANNING AND DEVELOPMENT DEPARTMENT
2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604
(559) 621-8277 FAX (559) 498-1026
November 19, 2020 Please reply to:
Rob Holt
(559) 621-8056
Brian Mitchell
Shryne Group
728 E Commercial St
Los Angeles, CA 90012
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20 -04070 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 4248 WEST
ASHLAN AVENUE
(APN 510-100-48S)
Thank you for your inquiry regarding the allowance of new cannabis retail uses. The requested information about cannabis retail uses was analyzed using Article 27, Chapter 15 of the Fresno Municipal Code (FMC) of the City of Fresno. Please note, all research for this inquiry is based on existing land development of the subject property . If there are multiple buildings on the subject property, this research was based on the address provided in the request. This research does not take into effect of future development unless provided in your application request. With that, r esearch of a proposed cannabis retail business on the subject property conveys the following:
1. All cannabis retail businesses must be located on property zoned DTN ( Downtown Neighborhood), DTG ( Downtown General ), CMS ( Commercial Main Street ), CC (Commercial Community), CR ( Commercial Regional), CG ( Commercial General), CH (Commercial Highway), NMX ( Neighborhood Mixed-Use), CMX ( Corridor/Center Mixed- Use), RMX ( Regional Mixed -Use), and must meet all of the requirements for development in these zones, including, but not limited to, parking, lighting, building materials, etc.
The subject property is zoned CG , which is one of the allowable zone districts for cannabis retail businesses. Development standards of the CG zone district are available in Sections 15-1203, 15-1204, and 15-1205
of the FMC. The subject location meets
the zone district requirement, per Section 15-2739.B.1.a of the FMC, for a cannabis retail business.
2. All building(s) in which a cannabis retail business is located shall be no closer than 800 feet from any property boundary containing the following: (1) A cannabis retail business; (2) A school providing instruction for any grades pre- school through 12 (whether public, private, or charter, including pre- school, transitional kindergarten, and K -12); (3) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted; and, (4) A youth center that is in existence at the time a complete commercial cannabis business permit is submitted.
Zoning Inquiry P20-04070
4248 West Ashlan Avenue
November 19, 2020
The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business.
3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC.
4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District) , they shall be dispersed evenly by Council District.
The subject property is in Council District 1 . There are currently no cannabis retail businesses located in Council District 1. This location requirement is satisfied for a cannabis retail business.
Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc.
This information was researched by the unde rsigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for erro rs and omissions. All information was obtained from public records held by the Planning and Development Department.
A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have quest ions regarding this matter, please contact me by telephone at 559-621-8056 or at [email protected].
Cordially,
Rob Holt, Planner III
Development Services Division
Planning and Development Department
EXHIBIT C
EXHIBIT D
EXHIBIT E
From: Damian A. Martin
To: Douglas Sloan
Cc: Thomas Esqueda; Gregory Barfield; Jennifer Ruiz; "Jeff Augustini"; [email protected] Subject: RE: For Your Information Regarding Authentic 559 LLC (C-20-3) Date: Monday, January 24, 2022 8:21:56 PM
Attachments: Authentic 559 LLC - Application Form.pdf
Pasadena - Recission of Abatement Terms RE Tony Huang.pdf External Email: Use caution with links and attachments
City Attorney Sloan:
Sorry for emailing you again . . . my esteemed colleague and Catalyst - Fresno LLC, d.b.a. Catalyst - Highway 99’s litigation counsel, Jeff Augustini, called my attention to an issue that I originally missed that you really ought to be immediately aware of as well.
In the attached application, Authentic 559 LLC answered “No” to the following question: “Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years?” Given the attached order of abatement against Mr. Tony Huang, the answer of “no” by Authentic 559 LLC to such a critical application question is obviously false and was knowingly false at the time that Authentic 559 LLC submitted its application to the City of Fresno.
Again as below, I restate my position that your client has no other choice legally speaking except to revoke the preliminary approval that it granted to Authentic 559 LLC. See Section 9-3316(d) (“If it is later discovered that any false information was provided by the applicant, the application shall be denied, and if a commercial cannabis business permit was granted, it shall be revoked with no opportunity for an appeal. [emphasis added]).
Respectfully,
Damian A. Martin, Esq., M.B.A.
Phone: 757-652-0460
Email: [email protected]
PRIVILEGE AND CONFIDENTIALITY NOTICE: This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521 and is legally privileged. The contents of this e- mail message and any attachments are intended solely for the party or parties addressed and named in this message. This communication and all attachments, if any, are intended to be and to remain confidential. If you are not the intended recipient of this message, or if this message has been addressed to you in error, please immediately alert the sender by reply e-mail and then delete this message and its attachments. Do not deliver, distribute, or copy this message and or any attachments if you are not the intended recipient. Do not disclose the contents or take any action in reliance upon the information contained in this communication or any attachments. Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by this sender for damage arising in any way from its use.
CIRCULAR 230 NOTICE: To comply with U.S. Treasury Department and IRS regulations, we are required to advise you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this transmittal, is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding penalties under the U.S. Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this email or attachment.
FEDERAL LAW DISCLAIMER: Under federal law, it is a crime to possess, use, distribute, or sell cannabis and any products containing cannabis. Advice regarding compliance with California law in no way constitutes advice regarding compliance with federal law and Damian A. Martin’s, legal services are in no way intended to assist any client in violating federal law.
From: Damian A. Martin <[email protected]>
Sent: Thursday, January 20, 2022 3:56 PM
To: 'Douglas Sloan' <[email protected]>
Cc: [email protected]; [email protected]; 'Jennifer Ruiz' <[email protected]>; 'Jeff Augustini' <[email protected]>; [email protected] Subject: RE: For Your Information Regarding Authentic 559 LLC (C-20-3)
City Attorney Sloan:
For the sake of formality (since these are very formal circumstances that we now find ourselves in), please allow me to reintroduce myself as Damian Martin, administrative legal counsel for Catalyst - Fresno LLC, d.b.a. Catalyst - Highway 99.
To begin, please see my below email to refresh your memory of the time I tried to warn your client about awarding preliminary approval to Authentic 559 LLC because their CEO had been charged with felony fraud and resigned from Authentic 559 LLC disgracefully and unlawfully in violation Sections 9-3316(d), 9-3318(a)(8), 9-3321, and 9-3325(a)(1) of the Fresno Municipal Code (“FMC ”). That point
noted, besides the legal reasons your client had for not issuing preliminary approval to Authentic 559 LLC, there is a simple, commonsense policy reason for not granting a cannabis business approval to an organization with a CEO that resigned due to felony fraud charges . . . a CEO leads and sets the tone for an organization, and, if a CEO is so unscrupulous so as to get charged with felony fraud and resign disgracefully and unlawfully in violation of the FMC, the rest of the organization probably behaves unscrupulously and in violation of the FMC as well . . . in other words, where there is smoke, there is fire . . . well, my Client found the fire, and his name is Tony Huang.
Pursuant to the attached application form for Authentic 559 LLC, Tony Huang (“Mr. Huang ”) is the
Head of Operations and 19.5% co-owner of Authentic 559 LLC. In other words, Tony Huang means the definitions of “owner” and “applicant” under Section 9-3304 of the FMC. Under Section 9-3318 of the FMC, the following shall be grounds for denial of a commercial cannabis business permit: “The applicant has been noticed, charged, cited, or convicted of violating any law or ordinance relating to the operation of a commercial cannabis activity.” Unsurprisingly, Mr. Huang has been noticed, charged, cited, and convicted of violating any law or ordinance relating to the operation of a commercial cannabis activity.
To demonstrate, pursuant to the attached Recission of Abatement Terms RE Tony Huang, Mr.
Huang, amongst other things, had an order of abatement granted against him by the City of Pasadena “with regard to the operation of an unlawful cannabis dispensary which is a public nuisance and a violation of the Pasadena Municipal Code” (foot notes omitted). One of the many damning findings in Pasadena’s order of abatement against Mr. Huang includes: “The CITY has taken enforcement measures against HUANG including the issuance of multiple administrative citations and obtaining a COMMISSION Order in an effort to compel HUANG’s compliance with the PMC yet HUANG remains non-compliant.”
As a result of the attached order of abatement against Mr. Huang, your client has no other choice legally speaking except to revoke the preliminary approval that it granted to Authentic 559 LLC. Your client also needs to inform your client’s City Council about the information regarding Mr. Huang and his order of abatement by the City of Pasadena that your client now has (or had) in its possession in advance of and during the now scheduled appeal hearing for Authentic 559 LLC’s preliminary approval.
Having said that and given (i) you and your client’s history of ignoring my emails and (ii) that my Client has active litigation against your client, I leave you and your client’s next move between you and your deputy attorneys / outside counsel and my Client’s litigation counsel, Jeff Augustini (copied on this email).
Respectfully,
Damian A. Martin, Esq., M.B.A.
Phone: 757-652-0460
Email: [email protected]
PRIVILEGE AND CONFIDENTIALITY NOTICE: This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521 and is legally privileged. The contents of this e- mail message and any attachments are intended solely for the party or parties addressed and named in this message. This communication and all attachments, if any, are intended to be and to remain confidential. If you are not the intended recipient of this message, or if this message has been addressed to you in error, please immediately alert the sender by reply e-mail and then delete this message and its attachments. Do not deliver, distribute, or copy this message and or any attachments if you are not the intended recipient. Do not disclose the contents or take any action in reliance upon the information contained in this communication or any attachments. Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by this sender for damage arising in any way from its use.
CIRCULAR 230 NOTICE: To comply with U.S. Treasury Department and IRS regulations, we are required to advise you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this transmittal, is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding penalties under the U.S. Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this email or attachment.
FEDERAL LAW DISCLAIMER: Under federal law, it is a crime to possess, use, distribute, or sell cannabis and any products containing cannabis. Advice regarding compliance with California law in no way constitutes advice regarding compliance with federal law and Damian A. Martin’s, legal services are in no way intended to assist any client in violating federal law.
From: Damian A. Martin <[email protected]
>
Sent: Thursday, October 28, 2021 9:33 AM
To: 'Jennifer Ruiz' <[email protected]>
Cc: 'Douglas Sloan' <[email protected]>; [email protected] Subject: For Your Information Regarding Authentic 559 LLC (C-20-3)
Project Manager Ruiz:
We have interacted a few times already, but for the sake of the formality associated with this email, please allow me to reintroduce myself as Damian Martin, administrative legal counsel for Catalyst - Fresno LLC, d.b.a. Catalyst - Highway 99. Given yesterday’s City Council appeal and the resulting denial of TAT Fresno LLC, I am obviously emailing you to advocate on behalf of my client that it receives the now open preliminary approval in Fresno City Council District 1.
On that note, my client is appreciative of the opportunity to be reconsidered for preliminary approval and the work that you and the rest of City Staff have done to bring the City’s application process to this point. Personally, I do not envy your task, especially given that the City’s process has the added wrinkle of City Council appeals and the additional scrutiny associated therewith. As a result, other than observing that issuing the now open preliminary approval in City Council District 1 to the next highest scoring and qualified (more on this one below) applicant is probably the easiest, fairest, and least controversial method, I will not belabor you here with my opinion on how to move forward.
That said, either / any way you move forward, I do need to call to your attention that Authentic 559 LLC is not a qualified applicant, and it should be rejected from the City’s Commercial Cannabis Business Permit (“CCBP
”) application process, and it certainly should not be granted the now open preliminary approval in City Council District 1. Authentic 559 LLC has conducted an unlawful and unpermitted change in ownership / control, has provided false / misleading information in their application, and has the possibility of being convicted of a disqualifying criminal offense.
To demonstrate, it is well-known that Authentic is a subsidiary cannabis brand of the Shryne Group (see https://shrynegroup.com/assets/; see also Section 1.1 of Authentic 559 LLC’s CCBP application).
It is also well-known that Brian Mitchell was the CEO of the Shryne Group and is accordingly listed as an owner and officer / manager on all of Shryne Group’s subsidiary businesses and permit applications, Authentic, STIIIZY, etc. Unsurprisingly and according to the attached application form that I downloaded from the City’s website, Mr. Mitchell is listed as an at least 14.25% owner and Co- CEO of Authentic 559 LLC. Mr. Mitchell is also listed as the LLC manager on Authentic 559 LLC’s attached Statement of Information with the California Secretary of State. Mr. Mitchell is also listed all over Authentic 559 LLC’s CCBP application (which is not attached due to file size and the fact that you obviously already have it) and his supposed qualifications are obviously a component of Authentic 559 LLC’s current CCBP application score.
However, Mr. Mitchell is no longer the CEO of the Shryne Group, presumably because he has recently been charged with multiple fraud-based felonies:
1. https://www.businesswire.com/news/home/20210921006170/en/Jon-Avidor-Named-CEO- of-Shryne-Group
2. https://www.ganjapreneur.com/former-ceo-of-california-cannabis-brand-charged-with- fraud/
3. https://www.danvillesanramon.com/square/2021/09/26/walnut-creek-three-charged-with- fraud-in-workers-compensation-scheme
4. https://marijuanapackaging.com/blogs/marijuana-companies/former-cannabis-ceo- charged-with-multiple-counts-of-fraud
The fact that Mr. Mitchell is no longer the CEO of Shryne Group and Authentic 559 LLC is an unpermitted change of ownership / control in violation of Section 9-3325(a)(1) of the FMC, which is only permitted upon license renewal and obviously not during the application process while the City is evaluating applicants against each other. The fact that Mr. Mitchell is listed on Authentic 559 LLC’s as an at least 14.25% owner and Co-CEO but is no longer CEO and will not actually be an active and participating member of Authentic 559 LLC’s business in Fresno is a violation of Sections 9- 3316(d), 9-3318(a)(8), and 9-3321 of the FMC. If Mr. Mitchell is ultimately convicted of the charges against him, Authentic 559 LLC will be in violation of Section 9-3318(a)(5) of the FMC. In other words and to reiterate, Authentic 559 LLC is not a qualified applicant, and it should be rejected from the City’s CCBP application process, and it certainly should not be granted the now open preliminary approval in City Council District 1.
For reference in dealing with such a situation as it is not the first time something like this has happened in a high visibility cannabis license approval process, attached is a letter from the City of Pasadena. The City of Pasadena was confronted with a similar situation with MedMen and MedMen’s former CEO, Adam Bierman, who eventually stepped down as CEO of MedMen after MedMen’s cannabis dispensary application in Pasadena was approved. In other words and in case this situation needed to branded / sloganized, Brian Mitchell is like Adam Bierman but with a Federal indictment hanging over his head (ouch!). Ultimately and unsurprisingly and as Fresno must do here with Brian Mitchell and Authentic 559 LLC, the City of Pasadena revoked MedMen’s cannabis dispensary application approval.
Respectfully,
Damian A. Martin, Esq., M.B.A.
Phone: 757-652-0460
Email: [email protected]
PRIVILEGE AND CONFIDENTIALITY NOTICE: This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521 and is legally privileged. The contents of this e- mail message and any attachments are intended solely for the party or parties addressed and named in this message. This communication and all attachments, if any, are intended to be and to remain confidential. If you are not the intended recipient of this message, or if this message has been addressed to you in error, please immediately alert the sender by reply e-mail and then delete this message and its attachments. Do not deliver, distribute, or copy this message and or any attachments if you are not the intended recipient. Do not disclose the contents or take any action in reliance upon the information contained in this communication or any attachments. Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by this sender for damage arising in any way from its use.
CIRCULAR 230 NOTICE: To comply with U.S. Treasury Department and IRS regulations, we are required to advise you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this transmittal, is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding penalties under the U.S. Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this email or attachment.
FEDERAL LAW DISCLAIMER: Under federal law, it is a crime to possess, use, distribute, or sell cannabis and any products containing cannabis. Advice regarding compliance with California law in no way constitutes advice regarding compliance with federal law and Damian A. Martin’s, legal services are in no way intended to assist any client in violating federal law.
From: Jennifer Ruiz
To: Kam Tanimasa
Subject: FW: For Your Information Regarding Authentic 559 LLC (C-20-3) Date: Friday, January 21, 2022 10:38:25 AM
Attachments: Authentic 559 LLC - Application Form.pdf
Pasadena - Recission of Abatement Terms RE Tony Huang.pdf Please include in public comment for C-20-3. Thank you,
From: Damian A. Martin <[email protected]>
Sent: Thursday, January 20, 2022 3:56 PM
To: Douglas Sloan <[email protected]>
Cc: Thomas Esqueda <[email protected]>; Gregory Barfield <[email protected]>; Jennifer Ruiz <[email protected]>; 'Jeff Augustini' <[email protected]>; [email protected]
Subject: RE: For Your Information Regarding Authentic 559 LLC (C-20-3)
External Email: Use caution with links and attachments
City Attorney Sloan:
For the sake of formality (since these are very formal circumstances that we now find ourselves in), please allow me to reintroduce myself as Damian Martin, administrative legal counsel for Catalyst - Fresno LLC, d.b.a. Catalyst - Highway 99.
To begin, please see my below email to refresh your memory of the time I tried to warn your client about awarding preliminary approval to Authentic 559 LLC because their CEO had been charged with felony fraud and resigned from Authentic 559 LLC disgracefully and unlawfully in violation Sections 9-3316(d), 9-3318(a)(8), 9-3321, and 9-3325(a)(1) of the Fresno Municipal Code (“FMC ”). That point
noted, besides the legal reasons your client had for not issuing preliminary approval to Authentic 559 LLC, there is a simple, commonsense policy reason for not granting a cannabis business approval to an organization with a CEO that resigned due to felony fraud charges . . . a CEO leads and sets the tone for an organization, and, if a CEO is so unscrupulous so as to get charged with felony fraud and resign disgracefully and unlawfully in violation of the FMC, the rest of the organization probably behaves unscrupulously and in violation of the FMC as well . . . in other words, where there is smoke, there is fire . . . well, my Client found the fire, and his name is Tony Huang.
Pursuant to the attached application form for Authentic 559 LLC, Tony Huang (“Mr. Huang ”) is the
Head of Operations and 19.5% co-owner of Authentic 559 LLC. In other words, Tony Huang means the definitions of “owner” and “applicant” under Section 9-3304 of the FMC. Under Section 9-3318 of the FMC, the following shall be grounds for denial of a commercial cannabis business permit: “The applicant has been noticed, charged, cited, or convicted of violating any law or ordinance relating to the operation of a commercial cannabis activity.” Unsurprisingly, Mr. Huang has been noticed, charged, cited, and convicted of violating any law or ordinance relating to the operation of a commercial cannabis activity.
To demonstrate, pursuant to the attached Recission of Abatement Terms RE Tony Huang, Mr.
Huang, amongst other things, had an order of abatement granted against him by the City of Pasadena “with regard to the operation of an unlawful cannabis dispensary which is a public nuisance and a violation of the Pasadena Municipal Code” (foot notes omitted). One of the many damning findings in Pasadena’s order of abatement against Mr. Huang includes: “The CITY has taken enforcement measures against HUANG including the issuance of multiple administrative citations and obtaining a COMMISSION Order in an effort to compel HUANG’s compliance with the PMC yet HUANG remains non-compliant.”
As a result of the attached order of abatement against Mr. Huang, your client has no other choice legally speaking except to revoke the preliminary approval that it granted to Authentic 559 LLC. Your client also needs to inform your client’s City Council about the information regarding Mr. Huang and his order of abatement by the City of Pasadena that your client now has (or had) in its possession in advance of and during the now scheduled appeal hearing for Authentic 559 LLC’s preliminary approval.
Having said that and given (i) you and your client’s history of ignoring my emails and (ii) that my Client has active litigation against your client, I leave you and your client’s next move between you and your deputy attorneys / outside counsel and my Client’s litigation counsel, Jeff Augustini (copied on this email).
Respectfully,
Damian A. Martin, Esq., M.B.A.
Phone: 757-652-0460
Email: [email protected]
PRIVILEGE AND CONFIDENTIALITY NOTICE: This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521 and is legally privileged. The contents of this e- mail message and any attachments are intended solely for the party or parties addressed and named in this message. This communication and all attachments, if any, are intended to be and to remain confidential. If you are not the intended recipient of this message, or if this message has been addressed to you in error, please immediately alert the sender by reply e-mail and then delete this message and its attachments. Do not deliver, distribute, or copy this message and or any attachments if you are not the intended recipient. Do not disclose the contents or take any action in reliance upon the information contained in this communication or any attachments. Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by this sender for damage arising in any way from its use.
CIRCULAR 230 NOTICE: To comply with U.S. Treasury Department and IRS regulations, we are required to advise you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this transmittal, is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding penalties under the U.S. Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this email or attachment.
FEDERAL LAW DISCLAIMER: Under federal law, it is a crime to possess, use, distribute, or sell cannabis and any products containing cannabis. Advice regarding compliance with California law in no way constitutes advice regarding compliance with federal law and Damian A. Martin’s, legal services are in no way intended to assist any client in violating federal law.
From: Damian A. Martin <[email protected]
>
Sent: Thursday, October 28, 2021 9:33 AM
To: 'Jennifer Ruiz' <[email protected]>
Cc: 'Douglas Sloan' <[email protected]>; [email protected] Subject: For Your Information Regarding Authentic 559 LLC (C-20-3)
Project Manager Ruiz:
We have interacted a few times already, but for the sake of the formality associated with this email, please allow me to reintroduce myself as Damian Martin, administrative legal counsel for Catalyst - Fresno LLC, d.b.a. Catalyst - Highway 99. Given yesterday’s City Council appeal and the resulting denial of TAT Fresno LLC, I am obviously emailing you to advocate on behalf of my client that it receives the now open preliminary approval in Fresno City Council District 1.
On that note, my client is appreciative of the opportunity to be reconsidered for preliminary approval and the work that you and the rest of City Staff have done to bring the City’s application process to this point. Personally, I do not envy your task, especially given that the City’s process has the added wrinkle of City Council appeals and the additional scrutiny associated therewith. As a result, other than observing that issuing the now open preliminary approval in City Council District 1 to the next highest scoring and qualified (more on this one below) applicant is probably the easiest, fairest, and least controversial method, I will not belabor you here with my opinion on how to move forward.
That said, either / any way you move forward, I do need to call to your attention that Authentic 559 LLC is not a qualified applicant, and it should be rejected from the City’s Commercial Cannabis Business Permit (“CCBP
”) application process, and it certainly should not be granted the now open preliminary approval in City Council District 1. Authentic 559 LLC has conducted an unlawful and unpermitted change in ownership / control, has provided false / misleading information in their application, and has the possibility of being convicted of a disqualifying criminal offense.
To demonstrate, it is well-known that Authentic is a subsidiary cannabis brand of the Shryne Group (see https://shrynegroup.com/assets/
; see also Section 1.1 of Authentic 559 LLC’s CCBP application).
It is also well-known that Brian Mitchell was the CEO of the Shryne Group and is accordingly listed as an owner and officer / manager on all of Shryne Group’s subsidiary businesses and permit applications, Authentic, STIIIZY, etc. Unsurprisingly and according to the attached application form that I downloaded from the City’s website, Mr. Mitchell is listed as an at least 14.25% owner and Co- CEO of Authentic 559 LLC. Mr. Mitchell is also listed as the LLC manager on Authentic 559 LLC’s attached Statement of Information with the California Secretary of State. Mr. Mitchell is also listed all over Authentic 559 LLC’s CCBP application (which is not attached due to file size and the fact that you obviously already have it) and his supposed qualifications are obviously a component of Authentic 559 LLC’s current CCBP application score.
However, Mr. Mitchell is no longer the CEO of the Shryne Group, presumably because he has recently been charged with multiple fraud-based felonies:
1. https://www.businesswire.com/news/home/20210921006170/en/Jon-Avidor-Named-CEO- of-Shryne-Group
2. https://www.ganjapreneur.com/former-ceo-of-california-cannabis-brand-charged-with- fraud/
3. https://www.danvillesanramon.com/square/2021/09/26/walnut-creek-three-charged-with- fraud-in-workers-compensation-scheme
4. https://marijuanapackaging.com/blogs/marijuana-companies/former-cannabis-ceo- charged-with-multiple-counts-of-fraud
The fact that Mr. Mitchell is no longer the CEO of Shryne Group and Authentic 559 LLC is an unpermitted change of ownership / control in violation of Section 9-3325(a)(1) of the FMC, which is only permitted upon license renewal and obviously not during the application process while the City is evaluating applicants against each other. The fact that Mr. Mitchell is listed on Authentic 559 LLC’s as an at least 14.25% owner and Co-CEO but is no longer CEO and will not actually be an active and participating member of Authentic 559 LLC’s business in Fresno is a violation of Sections 9- 3316(d), 9-3318(a)(8), and 9-3321 of the FMC. If Mr. Mitchell is ultimately convicted of the charges against him, Authentic 559 LLC will be in violation of Section 9-3318(a)(5) of the FMC. In other words and to reiterate, Authentic 559 LLC is not a qualified applicant, and it should be rejected from the City’s CCBP application process, and it certainly should not be granted the now open preliminary approval in City Council District 1.
For reference in dealing with such a situation as it is not the first time something like this has happened in a high visibility cannabis license approval process, attached is a letter from the City of Pasadena. The City of Pasadena was confronted with a similar situation with MedMen and MedMen’s former CEO, Adam Bierman, who eventually stepped down as CEO of MedMen after MedMen’s cannabis dispensary application in Pasadena was approved. In other words and in case this situation needed to branded / sloganized, Brian Mitchell is like Adam Bierman but with a Federal indictment hanging over his head (ouch!). Ultimately and unsurprisingly and as Fresno must do here with Brian Mitchell and Authentic 559 LLC, the City of Pasadena revoked MedMen’s cannabis dispensary application approval.
Respectfully,
Damian A. Martin, Esq., M.B.A.
Phone: 757-652-0460
Email: [email protected]
PRIVILEGE AND CONFIDENTIALITY NOTICE: This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521 and is legally privileged. The contents of this e- mail message and any attachments are intended solely for the party or parties addressed and named in this message. This communication and all attachments, if any, are intended to be and to remain confidential. If you are not the intended recipient of this message, or if this message has been addressed to you in error, please immediately alert the sender by reply e-mail and then delete this message and its attachments. Do not deliver, distribute, or copy this message and or any attachments if you are not the intended recipient. Do not disclose the contents or take any action in reliance upon the information contained in this communication or any attachments. Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by this sender for damage arising in any way from its use.
CIRCULAR 230 NOTICE: To comply with U.S. Treasury Department and IRS regulations, we are required to advise you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this transmittal, is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding penalties under the U.S. Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this email or attachment.
FEDERAL LAW DISCLAIMER: Under federal law, it is a crime to possess, use, distribute, or sell cannabis and any products containing cannabis. Advice regarding compliance with California law in no way constitutes advice regarding compliance with federal law and Damian A. Martin’s, legal services are in no way intended to assist any client in violating federal law.
From: sgreporting
To: Cannabis Regs; Thomas Esqueda
Subject: Shryne Group’s Attempt to get Dispensaries in Fresno Date: Thursday, November 11, 2021 5:49:30 AM
External Email: Use caution with links and attachments
Hello, I saw a recent article about Authentic 559 and Brian Mitchell and how your city is trying to determine the path forward.
I want to ensure you have a very transparent, accurate view of the company Shryne Group. These guys are masters at creating a facade of responsible business ownership, as you’ve experienced first hand no doubt with Brian’s presentations, and then subsequent hidden criminal background.
But it goes much, much deeper than this, and there’s plenty of publicly available information to this fact. You do NOT WANT this company operating in your city, I promise.
First of all, the application posted to your website by Shryne doesn’t mention Sam Cho at all—he’s the head of the company and anyone who works/worked there or ever interacted with the company knows he runs everything.
Literally the entire retail and brand are ran by this guy and his office is in the management area of the la headquarters.
If you were to walk in and ask to speak to “the owner, Sam Cho”, reception would ask you to please sign in while they notify Sam, they wouldn’t say, “Who’s Sam Cho? I think you’re mistaken, none of the owners are named Sam”.
Why is he not on the deck? Could it be because he has a criminal background and wants to avoid having to do LiveScans?
Next, check out the reviews on Glassdoor for this company… not a great look for a business that claims to be all about its employees.
https://www.glassdoor.com/Reviews/Shryne-Group-Reviews-E4136283.htm Next, Shryne was formed in 2019, but allegedly, the companies under that parent that it used to manage employees: JBTB holdings and Complete Management Solutions, paid hundreds of employees under the table until the beginning of 2020 and skirted who knows how much payroll tax in the process.
Judging from the CEOs history, this sounds like par for the course. Since JBTB and STIIIZY both started in 2017, you guys should ask to see proof of payroll from then until 2020, would be interesting to see what they come up with…
These guys are bad. They may be the worst. They are savvy and have many attorneys and PR folks on staff to keep their image clean, but STIIIZY started as, and continues today, as one of the biggest black market brands in the industry. Everyone knows they sell and have sold back door product and that’s how they’ve funded their growth this whole time.
Just take a look at these Reddit links:
https://www.reddit.com/r/fakecartridges/comments/nnz630/lets_talk_about_backdooring/ https://www.reddit.com/r/Stiiizy/comments/leknnb/we_need_the_truth_about_grey_market_stiiizy/ https://www.reddit.com/r/Stiiizy/comments/eacmk0/could_b_fake_bc_illegal_state_but_these_pods/ https://www.reddit.com/r/fakecartridges/comments/inrjza/black_market_vs_grey_market_vs_white_market_brands/ https://www.reddit.com/r/fakecartridges/comments/cplpx7/my_plug_has_real_stiiizy_wtf/ https://www.reddit.com/r/fakecartridges/comments/i3kkel/does_stiiizy_sell_in_the_black_market/ I’m sure there are other dispensary candidates ran by honest, empathetic people who actually deserve a license in your city and will be long lasting and not a complete stain like these guys.
Chase them out of town, they need to be shut down. They’re a criminal, abusive organization that has taken advantage of their employees, social equity partners and the community at large.
EXHIBIT F
From: Manuel Perales
To: Cannabis Regs
Subject: Office Of Cannabis Oversight Contact Form
Date: Wednesday, September 8, 2021 4:55:31 PM
External Email: Use caution with links and attachments
First Name Manuel
Last Name Perales
Email [email protected]
Phone
Number
(559) 999-1853
Subject 4248 W. Ashlan location
Message It was very disappointing to hear that my location was not approved for cannabis licensing. I feel it was a great location, free standing building, parking, off the freeway.
I really hope everything was handled legally, professionally, without favors or corruption when it comes to the final list for approvals.There is a lot of rumors out there and certain people getting more then one or two license. Why not spread the license to others, one owner got three? makes no sense.
I guess we will see how this goes over the next few months.
Thank you
A concerned fresno citizen.
IP Address 98.224.76.27
User-Agent
(Browser/OS)
Google Chrome 91.0.4472.114 / OS X
Referrer https://www.fresno.gov/citymanager/office-of-cannabis-oversight/
SHRYNE GROUP, INC. | 728 E. COMMERCIAL STREET | LOS ANGELES, CALIFORNIA 90012
A CALIFORNIA COMPANY
November 2, 2021
City Manager Thomas Esqueda
2600 Fresno Street, Room 2064
Fresno, CA 93721
Dear Mr. Esqueda,
Thank you and your office for the very thorough and transparent cannabis application process to date. We are excited about the possibility of being able to serve the Fresno community as we have done at over 20 cities across California.
On behalf of Authentic 559 LLC with its proposed location of 4248 W Ashlan, Fresno, CA 93722 in District 1, we respectfully urge you to select Authentic 559 LLC to receive the 3 rd
preliminary approval for a cannabis retail license in District 1 for the reasons laid out below.
Past Practice
Article 33 Section 9-3317(a) states that “The City Manager shall adopt a procedure guideline and Review Criteria by which the top applicants in each category of each commercial cannabis activity shall be evaluated with a final determination made by the City Manager.” Consistent with Section 9-3317(a), the City of Fresno did adopt a procedure guideline and Review Criteria which was set forth in the Application Procedures & Guidelines For a Commercial Cannabis Business Permit which was revealed on October 19, 2020. To date, at every juncture of the application process, the City of Fresno has also adopted a process whereby applicants have been selected based on the order of their score. For example, applicants were chosen to proceed to Phase III (the Interview Phase) based on their order of their scored ranking. As such, the top 5 scoring applicants in each District after Phase II were selected to proceed to Phase III. Even when an exception was made for allowing a 6th interview spot in District 4, the City selected the 6th highest scoring applicant in District 4 (Higher Level of Care) to proceed to Phase III.
This practice of choosing applicants in order based on their scores continued after the Phase III process as the City selected the top overall scoring applicants after Phase III to be awarded preliminary approval. In the event that an applicant was buffered out by a higher scoring applicant or a Social Equity applicant who had already been preliminarily awarded a license, again, the next highest scoring applicant was awarded the preliminary approval in every instance.
FAQ Guidance
In addition to the adopted and logical process of choosing applicants to move forward to Phase III and to receive preliminary approval in descending order of their scores, the FAQ dated
SHRYNE GROUP, INC. | 728 E. COMMERCIAL STREET | LOS ANGELES, CALIFORNIA 90012
A CALIFORNIA COMPANY
November 18, 2020 under Application Procedures Question 8 also suggests that applicants should be given priority based on their application scores. Question 8 and Answer 8 is below:
“Can multiple different businesses propose the same location for their permit?” “Yes, as long as you include the required letter of intent to lease or a leasing agreement, this is acceptable. If both applications score highly, only the higher ranked application would move forward.”
Again, this is further evidence that the City has adopted the logical procedure of giving priority to applicants who have been scored higher by the evaluation committee.
Conclusion
The City has so far throughout the entire application process, granted preliminary approvals and selected Phase III qualifying applicants in descending order of their score. Even when applicants were buffered out, the next highest scoring applicant was chosen for preliminary approval. The City has been very consistent in this practice of deferring to the evaluation committee’s scores and it would be arbitrary and capricious for the City, at this juncture, to utilize a different method of choosing which applicant moves “up” in lieu of the appealed applicants. The Fresno cannabis ordinance and the Application Procedures & Guidelines For a Commercial Cannabis Business Permit do not contemplate a different selection process for when an applicant is appealed by a City Councilmember versus when applicants are given preliminary approval after the Phase III process or when they are chosen to proceed to Phase III. Deviating from Fresno’s consistent practice and its FAQs which prioritize higher scorers is not contemplated and should not be permitted.
R e s p e c t f u l l y ,
_____________________
T a k S a t o
P r e s i d e n t o f S h r y n e G r o u p I n c .
_____________________
M a t t G a r z a
Owner of Authentic 559 LLC
EXHIBIT G
0 250 500 750 1,000125
Feet
GIS Data Disclaimer: City of Fresno disclaims any responsibility for the accuracy or correctness of the data.
Neither the City of Fresno nor any officer, or employee warrants the accuracy, reliability or timeliness or any of the data provided. In no event shall City of Fresno become liable to users of these data, or any other party, for any loss or damages, consequential or otherwise, including but not limited to time, money, or goodwill, arising from the use, operation or modification of the data. In using these data, users further agree to indemnify, defend, and hold harmless City of Fresno for any and all liability of any nature arising out of or resulting from the lack of accuracy or correctness of the data, or the use of the data. rkway DrKatyLn
Mitre AveAshlan AveGriffith WayGolden State BlAustinWay Golden State BlvdHollandAve Vernal AveSaratoga AveBerlin AveSonora LnBrunswick Ave
Ashcroft Ave
Blythe AveAshlan Ave 99OfrpRichert Ave
Cecelia Ave99Ofrp99OfrpSwift Ave99Onrp99 OnrpParkwayDr
99SR99 SR
John Steinbeck
Elementary
C-20-3
Application No: C-20-3, Name: Authentic 559 LLC
Address: 4248 W ASHLAN AVE
Business Type
Retail
Cultivation
Microbusiness (Non-Retail)
Preliminary Approved Site
Schools
Youth Facilities
Libraries
Boys and Girls Club
Day Care
Identified Parks and Green Space
Identified Sensitive Use Areas
Streets
800' Sensitive Use Area
Parcels
EXHIBIT H
CITY OF FRESNO
CITY MANAGER’S OFFICE
NOTICE OF PUBLIC HEARING
COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
NO. C-20-3
NOTICE IS HEREBY GIVEN that the Fresno City Council, in accordance with Section 9-3317 of the Fresno Municipal Code will conduct a pu blic hearing to consider and make a determination on the following application filed by Ellen Wysocki on behalf of Authentic 559 LLC , pertaining to property located at 4248 W Ashlan Avenue in Fresno, located on the north side of Ashlan Avenue west of Highway 99.
1. Commercial Cannabis Business Permit Application No. C -20-3: A request to operate a cannabis retail business on the subject parcel in the CG (Commercial General) zone district.
*The above documents are available for public review via the upcoming City Council Agenda.
Due to the closures of public facilities in response to COVID -19, City Hall may not be open to the public, however any interested person may appear electronically, by either Zoom meeting or telephone with instructions provided on the Council Agenda, at the public hearing and present written testimony, via an eComment or by email to [email protected], or speak in favor or against the proposal. Unless otherwise required by law to be accepted by the City at or prior to a City Council meeting or hearing, no documents shall be accepted for City Council review unless they are submitted to the Office of Cannabis Oversight or the City Clerk at least 24 hours prior to the commencement of the City Council meeting at which the associated agenda item is to be heard. If you challenge the above application in court, you may be limited to raising only those issues, you, or someone else, raised at the public hearing described in this notice, or in written correspondence delivered to the Fresno City Council or contact person below, at, or prior to, the public hearing. Action by the Council is final.
NOTE: This public hearing notice is being mailed to surrounding property within 1,000 feet of the project site pursuant to the requirements of Fresno Municipal Code Section 9-3317.
For additional information regarding this project, contact Jennifer Ruiz , Project Manager , Office of Cannabis Oversi ght, 2600 Fresno Street, Fresno, Californi a 93721- 3604, by phone at (559) 621- 8037 or via e- mail at [email protected] .
Si necesita información en Español,
comuníquese con Jose Valenzuela al teléfono (559) 621- 8070 o por correo electrónico a [email protected]. If you would like additonal information about the project , documents are available to view at: http://www.fresno.gov/cannabis
OFFICE OF THE CITY MANAGER
Thomas Esqueda, City Manager
Dated: January 11, 20222
SEE MAP ON REVERSE SIDE
Office of Cannabis Oversight
Office of the City Manager
2600 Fresno Street · Fresno, CA 93721 · Phone (559) 621-5555
FRESNO CITY COUNCIL
Date: Wednesday, February 16, 2022
Time: 1:00 p.m., or thereafter
Place: City Hall – in person and/or electronic.
Watch the live broadcast via the Zoom link located on the Council Agenda found at the City’s website:
https://fresno.legistar.com/Calendar.aspx
Jennifer Ruiz
CITY MANAGER’S OFFICE
2600 FRESNO STREET
FRESNO CA 93721-3604
THIS IS A LEGAL NOTICE REGARDING
4248 W Ashlan Avenue
C-20-3
VICINITY MAP
Subject Property
EXHIBIT I
Authentic 559 LLC
Retail – Commercial Cannabis Business Permit
No. C-20-3
COUNCIL DISTRICT 1
Authentic 559 LLC
4248 W Ashlan Avenue (C-20-3)
7,800 Square Feet
Located on the north side of Ashlan
Avenue west of Highway 99.
Meets requirements of FMC &
Application procedures.
Preliminary Approval: December
17, 2021
Appeal: December 30, 2021 from
Councilmember Soria, “to allow
public participation in the
awarding process.”
Authentic 559 LLC
4248 W Ashlan Avenue (C-20-3)
This project received three public comments highlighting a number of concerns. They include:
• Allegations that an owner has a hidden criminal background. • Allegations that there is an undisclosed owner in a leadership position in the company.
• Claims that the company has bad online reviews from its employees.
• Claims that its associated companies paid employees under the table and failed to pay appropriate payroll taxes.
• Concern that cannabis attracts thieves and that judgement of individuals is altered, affecting safety of the community. • Allegations that the CEO resigned from the company due to fraud.
• Allegations that an owner had an order of abatement granted against him for cannabis related offenses, thus making the company prohibited from holding a CCB Permit.
Image from application materials – shows rendering of proposed redesign of building exterior.
Response to the Concerns Raised:
1. The individuals named in the allegations were removed from the company’s ownership in December 2021.
2. The applicant has prepared a detailed security plan, developed by a professional security consultant, which will include significant video surveillance, alarms, access control, and armed security guards 24-hours-a-day. The security plan measures are compliant with the Fresno Municipal Code. These measures will not only protect the cannabis retail business, it would add to the security presence in the immediate area.
Authentic 559 LLC
4248 W Ashlan Avenue (C-20-3)
This project received two public comments in support of the project. They include:
• Belief by the property owner that the location was a great location for the project. • Belief by the applicant that the process warranted the approval.
Authentic 559 LLC
4248 W Ashlan Avenue (C-20-3)
Applicant
Presentation
AUTHENTIC IS A RETAIL BRAND OWNED AND
OPERATED BY SHRYNE GROUP
THIS DOCUMENT IS CONFIDENTIAL
4248 W Ashlan Ave,
Fresno, CA 93722
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP
SHRYNE GROUP ASSETS
OPEN RETAIL
Suisun City
Alameda
Davis
Jurupa Valley
Los Angeles
Modesto
Moreno Valley
Benicia
Marina
Palm Desert
Pacheco
Pomona
Wildomar
Vista
San Bernardino (2)
San Francisco
San Francisco Mission
San Francisco Union Square
San Francisco Potrero Hill
RETAIL IN DEVELOPMENT
Lompoc Oxnard
Los Angeles (7) Concord
Oakland Fairfield
Riverside County (2) Sacramento
San Francisco Costa Mesa
Santa Rosa El Centro
El Cerrito Barstow
CULTIVATION
Humboldt County
Los Angeles
Oakland
Lompoc
Los Angeles Indoor Farm
MANUFACTURING
Humboldt County
Los Angeles
Oakland
Lompoc
DISTRIBUTION
Humboldt County
Los Angeles
Oakland
Concord
Lompoc
BUSINESS PLAN – OPERATIONAL EXPERIENCE
LEGEND: CULTIVATION MANUFACTURING DISTRIBUTION RETAIL RETAIL IN DEVELOPMENT OPEN IN DEVELOPMENT INDOOR GROW OUTDOOR GROWD $19.5M
Annual Revenue
per Store
20 Operational Retail
Stores
$24M
Est. 1st Year
Operations At This
Location
6X
State Average
Revenue
No.1
Cannabis Employer
in CA with 2500
Employees
30Total
Cannabis Operations
$450M+
2021 Revenue
4.5M
Transactions Since
2018
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP LOCATION – 4248 W Ashlan Avenue
400 Feet
From 99 Highway Exit
Surrounded By
Vacant Lots
Accessible
To Madera, Selma, Visalia, Merced
No Negative Impact
On Community
1.23 Acre Lot
Away From Residences
and Other Businesses
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP 7,800 FT2
Standalone Building
94 Dedicated Parking Spots
18 Point of Sale Locations to Serve
LOCATION - BUILDING
10.15.20V1
EL CENTRO, CA
EXTERIOR
550
Customers Per Day
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP
UNIONIZED
WITH THE
LABOR AND EMPLOYMENT PLAN
SHRYNE GROUP OFFERS
GREAT BENEFITS
80 Hours of
PTO
70% Subsidized
Medical/Dental
Insurance
Employer Funded
Pension Fund
24 Hours of PTO
to Volunteer
40- 45
Employees
$16.25 - $24.50
Living Minimum Wage
for Retail Employees
$50K - $70K
Managers’
Salary
2,500
Employees
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP
SOCIAL EQUITY AND DIVERSITY
Currently Sponsoring 10 Social Equity Cannabis Business Owners • Incubating Oakland Social Equity Manufacturer
• Provided Capital and Built 4 Stores in San Francisco
• In the Process of Building 5 Stores in Los Angeles
72% of Employees Identify with Race Other than White
5 Social Equity Partners in Los Angeles Currently Working at HQ Sponsored 3 Social Equity Partners Junior College Certificates Reserve Shelf Space For Social Equity Brands
Hosted Expungement Clinics For People Affected By
War on Drugs
Regular Contributor to Last Prisoner’s Project
Minority Owned Business Enterprise
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AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP
HISTORY OF COMMUNITY GIVING IN FRESNO
Fresno County Economic
Development Corporation
Shryne Hosted Informational Session For
Fresno Social Equity Applicants
Multiple Food Drives
Fresno’s Santa Village/Fresno Police
Department
Boys & Girls Club Summer Camps
With Matt Garza
Valley Children Medical Center
Saint Jude Catholic Church Food Drive
Casa Fresno Madera For Foster Children
Fresno County School Donations
FRESNO’S SANTA VILLAGE
CASA FRESNO EVENT AT GARZA HOME
FOOD DRIVE ORGANIZED BY MATT GARZA
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP
FRESNO COMMUNITY BENEFITS
Here Are a Few Community Commitments
We Are Making in Fresno’s District 1
$25,000
Annual Contributions
to Fresno Economic
Development Corp.
Annual Contributions To
Local Causes Identified By
Advisory Board such as
Lions Park
Scholarships to 93722 and
93705 Residents of Need with
Apprenticeship At Existing
Facilities
3 3% Profit
($20,000 Minimum)
$50,000
to Assist Fresno Local
Equity Applicants
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP CATALYST – 9 LAWSUITS AGAINST CITIES
At a recent City Council
hearing, Catalyst admitted
to having filed at least 8
lawsuits against cities.
You’re filing
lawsuits left and right,
which is not a good
look.
”
”
Nils
Nehrenheim
Redondo Beach
Councilman
CONFIDENTIAL
AUTHENTIC IS A RETAIL BRAND OWNED AND OPERATED BY SHRYNE GROUP
COUNCILMEMBER FLYERS