Supplement_Feb16th_CSE-20-68_AgendaItemAttachments_1142 F Street — Fresno City Council, February 16, 2022 (part 1 of 2)

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. CSE-20-68, for property located at 1142 F Street (Council District 3)
..Body

RECOMMENDATION

1.CONSIDER Commercial Cannabis Business Permit Application No. CS E-20-68 for a retail permit at 1142 F Street;

EXECUTIVE SUMMARY
Commercial Cannabis Business (CCB) Permit No. CSE-20-68 is a cannabis social equity application for a retail cannabis business located at 1142 F Street in Fresno, located on F Street between Mariposa Street and Fresno Street.

The City Manager’s preliminary approval for CCB Permit No. CSE-20-68, 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 Social Equity Commercial Cannabis Business Permit (originally published October 19, 2020, revised on August 13, 2021). In addition, this application was ranked fourth, overall among the retail cannabis social equity applications, and ranked second among social equity applications in District 3.

On December 23, 2021 the City Manager’s Office received a letter of appeal from the City Councilmember for District 3, Miguel Arias. The appeal states, “ I want to ensure the community has amble time to review and provide input on these critical items.”

BACKGROUND
Commercial Cannabis Business (CCB) Permit No. CSE-20-68 was filed timely pursuant the cannabis social equity application requirements . This application is for a retail cannabis business located at 1142 F Street in Fresno, located on F Street between Mariposa Street and Fresno Street.

The business will operate as “High Speed Healing”. The social equity applicant is Tyrone Carter. The other business owner Renatta Carter-Ford.

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 and revised on August 13, 2021. The evaluation process included the following:
 Phase I: Determination of Eligibility as a Social Equity Applicant  Phase II: Provision of Technical Assistance and Application Review  Phase III: Proposed Location and Proof of Capital Submission  Phase IV: Applicant Interview and Ranking
 Phase V: City Manager’s Final Determination

Phase II Criteria Evaluation was conducted by a panel of City Staff membe rs, from different departments. Social Equity applicants were evaluated on a pass/fail basis for the requirements in phase II and III. Applicants were then ranked during Phase IV, establishing an eligibility list. The subject application, No. CSE-20-68 ranked fourth, overall among the retail cannabis social equity applications, and ranked second among social equity applications in District 3.

The City Manager issued a preliminary approval of application No. CSE-20-68 on December 17, 2021.

Appeal of the City Manager’s Decision
On December 23, 2021 the City Manager’s Office received a letter of appeal from the City Councilmember for District 3, Miguel Arias. The appeal states, “I want to ensure the community has amble time to review and provide input on these critical items.”

Location Restrictions
The subject property is zoned DTN (Downtown Neighborhood), 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 two public comments highlighting concerns. They include:
 The area is already troubled by criminal behavior and transients and belief that a dispensary would increase the problem.
 Concern that illegal cannabis shops have already been operating in the area and has caused nuisance, loitering, and a recent robbery.

This project received seven public comments supporting this project and a petition signed by 22 local businesses. The reasons for support include:
 Belief that owner is a person of high integrity that has been very involved with the Chinatown community.
 Belief that the location will improve the historic area.  Belief that the business would provide an added level of safety to the area and encourage more investment.
 Positive reference for one of the owners of positive work history at a cannabis farm.  Belief that the applicants provide positive representation and are successful local entrepreneurs that will responsibly operate the dispensary.

RESPONSE TO THE CONCERNS RAISED
1) The applicant is required to prepare 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 must be with the Fresno Municipal Code as a condition of approval. 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. CSE-20-68 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 Social Equity Commercial Cannabis Business Permit (originally published October 19, 2020, Revised August 13, 2021). In addition, this application was the second highest-ranking application amongst all the social equity retail CCB Permit applications the City received for Council District 3.

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 CSE-20-23

2. Exhibit B – Zoning Inquiry Letter

3. Exhibit C – Preliminary Approval Letter

4. Exhibit D – Appeal Letter from Councilmember Arias

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
Application Type
Social Equity Criteria
Applicant (Entity) Information
Social Equity Cannabis Business
Permit Application
CSE-20-68
Submitted On: Nov 13, 2020
Applicant
Renatta Carter-Ford

In order to qualify as a social equity applicant, applicants must satisfy at least one of the following criteria:

1. Low income household and either:
a. A past conviction for a cannabis crime, or
b. Immediate family member with a past conviction for a cannabis crime.

2. Low income household in a zip code identified as at least 60% according to the CalEnviroScreen for five (5) consecutive year period and either:
a. A past conviction for a cannabis crime, or
b. Immediate family member with a past conviction for a cannabis crime.

3. Low income household and either:
a. Five (5) years cumulative residency in a zip code identified as at least 70% according to the CalEnviroScreen, or
b. Ten (10) years cumulative residency in a zip code identified by CalEnviroScreen.

4. Business with no less than fifty-one percent (51%) ownership by individuals who meet Criteria 1 and 2 above.

5. Cannabis social enterprise with no less than fifty-one percent (51%) ownership by individuals who meet Criteria 1 and 2 above.

6. An individual with a membership interest in a cannabis business formed as a cooperative.

Do you meet the above criteria, and want to apply as a Social Equity Applicant?
Yes
Please state your annual income: Do you have a past cannabis conviction? No
Do you claim eligibility based on a family member past
cannabis conviction?
Yes
Do you represent a cannabis social enterprise?
No
Do you have a membership interest in a cannabis cooperative? No

Application Type
Proposed Location
Supporting Information
Applicant (Entity) Name:

Renatta Carter-Ford
DBA:
--
Physical Address:
1142 F Street
City:

Fresno
State:

CA
Zip Code:
93706
Primary Contact Same as Above?
Yes
Primary Contact Name:

Renatta Carter-Ford
Primary Contact Title:

Co-Owner
Primary Contact Phone:

Primary Contact Email: HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?:

No
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.

Permit Type
Retail (Storefront)
Business Formation Documentation:

S-Corporation
Property Owner Name:

Renatta Carter-Ford
Proposed Location Address:
1142 F Street
City:

Fresno
State:

CA
Zip Code:
93706
Property Owner Phone:

Property Owner Email: Assessor's Parcel Number (APN):
--
Proposed Location Square Footage:
--
List all fictitious business names the applicant is operating under including the address where each business is located:

None

Business Name: High Speed Healing SOCIAL EQUITY APPLICANT - IF SUBMISSION REQUIREMENTS MET, APPLICATION PASSES Application #: CSE-20-68 ADVANCEMENT IS NOT BASED ON PHASE II SCORE PER APPLICATION PROCEDURES.

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 6
Master's Degree or Higher Reported: Score 8 8
Experience: (among ownership team, select one at highest level) Regulated Cannabis Retail Ownership Experience CA 13 13 Regulated Cannabis Retail Experience CA (management level or below): Score 10 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 23
Construction Cost Estimate:

Construction Cost Estimate Provided: Score 8 8 6 4 0 Not included Construction Contingency Factor Included: Score 6 6 0 Not included All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 0 Not included Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included Operation and Maintenance Cost Estimates:

Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 4
Some info provided in short statement and
proforma, but very general and didn't include a
separate section for operation costs or start up
costs.

All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 0 Not included 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 0 Not included

1.2 Sub-Total: 50 4
Proof of Capitalization Specific to one or more Owners: Score 5 5 5 Proof of Capitalization Specific to Business Name/Address: Score 5 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:

Did they forget to attached construction and start up costs documentation? No doc separate from Proof of capitalization and Proforma Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15 Proof of capitalization in the amount of in
liquid assets and Loan for
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 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 15 Bank statements plus promisary note

1.3 Sub-Total: 50 40
Three Years of Data Provided: Score 10 10 8 6 6 Very basic, needs detail. Profit estimates high 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
Only lump sum wages listed, no benifits or
explanation
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
Annual Net Revenue Identified: 3 2 2
Annual Cost Escalators Identified: 4 4 3 2 0 Not included Annual Estimated Sales Tax Payments to State Provided: 2 2 2 Annual Estimated Sale Tax Payments to City of Fresno Provided: 5 2 Annual Business Tax License and Cannabis Permit Fee Provided: 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 27
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 2
Opening and Closing Procedures Provided: Score 10 10 8 6 8 covers all items but reads as a general guide.

Doesn't sound specific to business.

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 18

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 Talks about Urban Leaf Los Angeles Market analysis.

Found response on pg 67

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:

II. Identify location and procedures for receiving deliveries during business hours. 10 10 8 6 8 Did not discuss scheduling of deliveries iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations. 10 10 0 did not give name of system iv. The estimated number of customers to be served per hour/day. 20 20 15 10 0 did not give estimate v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products. 20 20 15 10 0
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 0 Does not discuss delivery service.

1.6 Sub-Total: 100 28
Section 1 Total: 300 140
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 6 stated they were committedd to paying greater
than living wage pg 2
Definition of Living Wage Provided: Score 5 5 4 3 0 did not define nor state rate Living Wage Defined as Greater than Minimum Wage: Score 5 5 0

2.1 Sub-Total: 20 6
Wages and Salary
CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 0 Did not define or state rate 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 0 Did not describe employee benefits CCB Offers Dental Coverage to All Employees: Score 3 3 0 CCB Offers Vision Coverage to All Employees: Score 3 3 0 CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1 0 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 0
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 0 Did not describe time off Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable) 5 5 4 3 0 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 0
Retirement
Offers employee retirement plan 2 2 0 Did not mention retirement plan Offers company match for employee retirement plan 2 2 0 Criteria Narrative: Outdoor signage, pg 70 may not comply with code.

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)

2.2 Sub-Total: 50 0
CCB Provides Tuition Reimbursement for Certificates: Score 3 3 0 Did not mention education nor training CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 0 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 0

2.3 Sub-Total: 20 0
General Recruitment Plan Provided: Score 10 10 8 6 0 Mentioned ordinance requirement but did not Social Policy Recruitment Plan Provided: Score 10 10 8 6 0 make committment or discuss recruitment
strategies
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 0 Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 0

2.4 Sub-Total: 50 0
Owners
Number of Owners: 2
Number of Owners that live within the City of Fresno: 2 Number of Owners that live in the County of Fresno: 0
Number of Owners that Own a Business in the City of Fresno: 0 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% equity of the Owners live or own a business in the City (If no owners are local, score zero) 20 20 Managers
Number of Managers (salaried, non-owners) did not mention managers Number of Managers that live in the City of Fresno:

Number of Managers that Own a Business in the City of Fresno:
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 Criteria Narrative:

Criteria Narrative:

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)
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

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 8-10 employees CCB has signed a peace agreement: Score 5 5 5 will sign

2.7 Sub-Total: 10 10
Work Force Plan Provided: Score 10 10 8 6 0
Commitment to Local Hire Provided: 10 10 8 6 10 30% committment with 100% goal Commitment to Offer Apprenticeships Provided: 10 10 8 6 0 not mentioned Commitment paying for continuing education provided 10 10 8 6 0 not mentioned Description of commitment to paying a living wage provide. (Score same as sec. 2.1) 10 10 8 6 6 wage rate not mentioned but commitment made

2.8 Sub-Total: 50 16
CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 N/A This is a social equity application Mentorship and Training: Score
Equipment Donation: Score
Shelf Space: Score
Legal Assistance: Score
Finance Services Assistance: Score
Other Technical Assistance: Score
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.

2.9 Sub-Total: 100 0
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:

Section 2 Total: 400 132
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 0 Info not provided CCB will established a dedicated contact person to receive complaints: Score 10 10 0 Info not provided CCB will establish a dedicated phone number to receive complaints: Score 5 5 0 Info not provided CCB will establish a dedicated email address to receive complaints: Score 5 5 0 Info not provided 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 0 Info not provided
Other measure unique to business (i.e. website complaint form) 5 5 0 Info not provided 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 0
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 0 Info not provided CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 0 Info not provided 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 0
CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 5 CCB has prepared a nuisance odor control plan: Score 10 10 8 6 10 Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary:

Score 5 5 0 Info not provided
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 10 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 30
CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 0 Info not provided Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans.

3.4 Sub-Total: 10 0
Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 10 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 20
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 0 Info not provided

3.6 Sub-Total: 20 10
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 0 Info not provided
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 6 Incomplete information The source-separation plan describes specific measures to control the collection and disposal cannabis waste: Score 10 10 0 Info not provided
The name of licensed cannabis disposal company provided: Score 10 10 0 Info not provided

3.7 Sub-Total: 50 16
Section 3 Total: 300 76
SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant: Score 10 10
Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by) 10 10 Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 Safety Plan includes Site Plan of Premise: Score 10 10
Criteria Narrative:

3.7 Describe the waste management plan. (50 points possible)

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:

Safety Plan includes Building Layout Plan: Score 10 10

4.1 Sub-Total: 50 0
Written Accident/Incident Procedure Provided: Score 20 20 15 10 Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 Total Number of Scenarios Described: Score
Active Shooter Incident Described: Score 10 10
Robbery Incident Described: Score 10 10

4.2 Sub-Total: 50 0
Evacuation Plan Provided: Score 20 20 15 10
Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 Evacuation Route Distance to Public Right of Way: Score 10 10 8 6

4.3 Sub-Total: 50 0
Location of Fire Suppression System Elements Identified: Score 10 10 Type of Fire Suppression System Elements Identified: Score 20 20 15 10 Location of Fire Extinguishers Identified: Score 10 10 Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6

4.4 Sub-Total: 50 0
Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 Gunshot Wound Medical Emergency Described: Score 20 20 15 10 Other Medical Emergency Conditions Described: Score 20 20 15 10

4.5 Sub-Total: 100 0
Section 4 Total: 300 0
SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 Security Plan Prepared by Consultant: Score 10 10
Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 Security Plan includes Site Plan of Premise: Score 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:

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 includes Building Layout Plan: Score 10 10

5.1 Sub-Total: 50 0
Premises (Security) Diagram Provided: Score 20 20 15 10 Diagram is drawn to correct scale: Score 5 5
Diagram provides required details for premise: Score 5 5 Diagram shows the location of all security cameras: Score 5 5 Descriptions of activities to be conducted in each area of the premise 5 5 Limited-Access Areas Clearly Marked: Score 5 5
Number and Location of All Security Cameras Identified: Score 5 5

5.2 Sub-Total: 50 0
Intrusion Alarm and Monitoring System Identified: Score 15 15 Name and Contact Information for Monitoring Company Provided: Score 5 5 Total Points of Entry into Premise Identified: Score 5 5 All Points of Entry to be Alarmed Identified: 5 5
Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 Backup Power Supply Identified: Score 10 10

5.3 Sub-Total: 50 0
Written Cash-Handling Procedure Provided: Score 30 30 20 15 Dual-Custody is Practiced for all cash handling: Score 10 10 Video Surveillance Used to Monitor All Cash Handling: Score 20 20 Armored Car Service Used for Bank Deposits: Score 10 10 All Cash Deposited weekly with Bank: Score 10 10
Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20

5.4 Sub-Total: 100 0

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:

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:

CCB will use onsite security guards: Score 10 10
All onsite guards will be licensed and bonded: Score 10 10 All onsite security guards will be licensed to carry firearms: Score 10 10 Onsite security guards will be on duty before CCB opens for business: Score 10 10 Onsite security guards will be on duty after CCB closes for business: Score 10 10

5.5 Sub-Total: 50 0
Section 5 Total: 300 0
Section 1: Business Plan Total Points: 300 140
Section 2: Social Policy & Local Enterprise Total Points: 400 132 Section 3: Neighborhood Compatibility Total Points: 300 76 Section 4: Safety Plan Total Points: 300 0
Section 5: Security Plan Total Points: 300 0
Total Points Achieved: 1600 348
PASS

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.

BUSINESS PLAN

BUSINESS PLAN
1 1. Executive Summary
3 2. 1.5 & 1.6 Company Description, Hours of Operations, Opening and Closing

Procedures, Daily Operations
3 4. Competitive Analysis & Marketing Plan
9 5. 1.1 Ownership & Qualification, Resumes, Roles and Responsibilities 10 6. 1.6.1.E. Products and Services
13 Climate Control and Lighting Maintenance
34 7. Sales Strategy
69 Street Promotion
69 Dispensary Events
69 Outdoor Signage
69 Digital Marketing
70 8. 1.3 Proof of Capitalization & Funding
70 9. 1.2 & 1.4 Budget & Financial Projections (See Attached Spreadsheet) 70 1. Executive Summary

High Speed Healing, established to provide high quality cannabis flower and extract

medicine to adult users of marijuana within the State of California. This conforms with

California Law which clearly and specifically allows cannabis sales to adults for

medicinal and recreational use. And this law is coming into effect with emerging specific

administrative rules and enforcement mechanisms throughout the expansion of the

cannabis program. The healthful physical, spiritual and mental benefits of marijuana

(the cannabis plant and its derivatives) are more than legend, and are increasingly

understood, with the benefit of modern science, to be unique in the plant kingdom, for

its substantial and unique blend of beneficial and benign properties. Our nation has an

emerging appreciation and understanding of cannabis, as medicinal marijuana and as a

supplement of high value. Judicious and controlled use of marijuana is proving to be a

key part of the emerging pharmacopeia of healthful self-care, rather than just a smoke

screen for pot-heads to get stoned. The negative strictures against reasonable

personal use of marijuanaare being overcome through grass-roots-uses of marijuana

products in the real world, and the overwhelming positive effects of prudent marijuana

use, for a broad spectrum of the American public. The scale, speed and imports of the

overall societal change, toward a more rational and pragmatic use of the marijuana

plant is dramatic and rapid; leading to positive social, financial and health changes at a

scale not often seen in a lifetime. It is the intention of the founders and supporters of

High Speed Healing to support and take advantage of this important cultural shift and

the emerging industries to which this shift is giving rise.

2. 1.5 & 1.6 Company Description, Hours of Operations, Opening and Closing

Procedures, Daily Operations

High Speed Healing exists to produce and deliver the highest quality cannabis flower,

extracts, edibles and topical consumer products to a growing base of customers, while

simultaneously delivering the safest, most healthful legal and uplifting experience

possible to them. As leaders in the legal use of marijuana, our role also requires that

we provide education and training to our customers, and we’re here to play our part.

We will continue the practices, which will ensure our ongoing profitability in this booming

industry, consistent with providing health outcomes for our customers, our society and

our environment as well. We are committed to acting as a responsible dispensary

company providing and distributing pure, consistent and healthy products, in the

marijuana, concentration, extractionandedibles categories; thus bringing a more

healthful and positive light to the industry, lifestyle, and our products in particular. Our

practice and business plan begin with providing vital and vibrant genetics, quality

extracts and a stable distribution channels and strong customer service. Vertical

Integration it is, in a wholesome way. It is our objective, over time is therefore, to

become one of a handful of the very top-rated dispensaries in the community.

3. 1.6 - Hours of Operation

The company’s operating hours will be:

Sunday-Saturday 10 AM- 10 PM Excluding holidays

Holiday hours may vary

Daily Opening the Business

Getting ready for business can be hectic if you are all over the place trying to do

everything at the same time. Ensure your day takes off on the right foot with this

opening a retail store checklist that covers all the bases.

1. Preparation

A good practice for store managers is to arrive at the business premises at least thirty

minutes before opening time. But before you leave the house, make sure you have your

keys and anything else you will need for the day. Forgetting something important and

having to rush back home would be a time-wasting mistake.

Opening and closing times are considered high-risk periods for robberies. Because of

this, it is advised that no less than two people be on hand for the store opening process.

Making sure everyone is on time is key.

2. Building Inspection

Before you open the store, do a walk around the building or outside of the store

premise. Inspect windows, doors, air vents for signs of forced entry. If there is any

tampering inside or outside the store, call the police and do not enter.

As you inspect the building, your colleague should carefully observe the surroundings

for any suspicious behavior like loitering nearby or unfamiliar cars. Do not proceed if

you notice anything unusual.

3. Entry

Once you are sure that it is safe, open the store door and relock it after entry. Disable

the alarm. If your security system requires a panic or distress code, make sure all

members who open the store are familiar with it. Store doors should never be left

unlocked before the store opens. Employees should be let in one at a time and the door

locked after each entry.

If your store’s security system includes security cameras, ensure the tapes are changed

and the unit is recording.

4. General Inspection

After turning on the lights, it’s time to get down to business. Walk the floor to do a store

evaluation:

Are there any wet spots on the floor, walls, or ceilings? This could be a sign of a faulty

HVAC system, a leaky roof, or plumbing issues.

Any traces of vermin or pests? It may be time to call the exterminator.

Inspect the housekeeping. Go over areas where necessary, making note of any

feedback to give the staff or cleaning service.

Check that all shelves are stocked and tags are well arranged.

Make sure the in-store signage is up to date. Take down any signs for promotions that

may have ended the previous day.

5. Turn on Electronic Systems

Once you’ve ensured everything is where it should be and nothing is wrong, it’s time to

turn on your electronic systems.

Turn on and check your cash registers to make sure they are ready to go. Remove the

cash register tills from the safe. If your registers do not have sufficient funds, count the

money you will need away from the sight of the front door.

Boot up your computers or retail POS system, televisions, sound systems, and activate

the air conditioning. Ensure your screens are showing the correct promotions with

accurate and current details.

6. Prepare the Storefront

Whether your store is in a mall or a stand-alone building, it is your responsibility to make

sure your store-front is appealing. Clear out any litter or debris and place any outdoor

signs and banners you may have. Also look at your display window from the outside to

make sure your display is appealing and nothing is out of place.

7. Hold a Staff Meeting

After creating your daily task-list and lunch and break schedules, call a short meeting

with all the staff of the shift. Assign the duties and make sure everyone understands

what they have to complete within the day. You should also go over any important

information such as daily targets and notices for the upcoming period.

As the effects of COVID-19 remain ongoing, make sure your staff is educated on the

most up-to-date best practices around health and safety standards. Meeting these

standards for your staff and customers is critical to remaining open for business.

You’re all set for the day!

Closing Down at the End of the Day

Closing procedures are important as they determine how the next day will begin. To

make sure you don’t overlook any details and create more work for the next morning,

here’s a retail store closing checklist to follow.

1. Prerequisites

Just as with opening the store, some things need to be done before the actual closing

time. Wait for all customers to leave the store before turning off any screens or lights.

Similarly, make sure all customers have checked out and exited before closing the last

As with opening procedures, store closing procedures should be done in pairs or more.

You should be even keener on security in the evening, as robbers know there is more

likely to be more money on the premises in the evening.

2. Clearing the Store

Do not rush your customers out of the store, but it is appropriate to make an

announcement 15 minutes before closing time. This enables them to wrap up their

browsing and head to the registers.

Always confirm that everyone has left the store by inspecting all areas including

restrooms, stockrooms, and closets. When this is confirmed, bring in all the banners,

signs, and shopping carts that had been placed on the sidewalk or outside the store.

Lock all doors, including the main entrance and exit doors. A supervisor should stand by

the door to let customers and employees out, relocking the door after each exit.

Customers and employees who are leaving should be observed to ensure they have not

carried out any unpaid merchandise.

3. Restock and Recovery

Return all non-defective returned merchandise to stock. Staff should start reorganizing

items on the shelves while waiting for the customers to leave so that not much

straightening up is needed to be done after.

4. Housekeeping

When closing a retail store, procedures on cleaning are determined by whether your

establishment utilizes an overnight cleaning and restocking service or if the staff does it.

On top of clearing the aisles of any merchandise, carts or litter, dusting and mopping the

floors is usually done at closing time.

If you use a cleaning crew, preparing a cleaning checklist can help make sure nothing is

left undone.

Empty all trash, but do not place the bags in the dumpster until the next morning. This

will deter any theft of product through the trash for later removal.

5. Closing Registers and POS Systems

The steps of the closing down process will greatly rely on the size and type of retail

business you are running. Here's an example of what a general step by step should look

like:

Set out a specific time for counting cash and closing all safes and cash drawers. Cash

should be counted away from registers, customers lingering in the store, and away from

the sight of the front door.

The countdown of money should be witnessed and formally acknowledged by a

manager.

●
Turn off your POS hardware.

●
Settle all credit card machines.

●
Place the tills in the safe and leave the cash registers open as best practice to

avoid damage if a break-in takes place.

Any retail store should have its own clear and systematic standard operating procedure

as well as a cashier cleaning checklist for reconciling sales at the end of the day.

6. Final Walkthrough

After shutting down any computers, working displays, overhead music, and seasonal

items such as lights, televisions, and more, walk the floor one final time before shutting

off the lights.

Make sure everything is where it should be, and check that the windows and doors are

properly locked. Activate the alarm system and know the duress code before exiting the

store through the front door. All closing personnel should leave together.

Close the doors and double check that they are securely locked before leaving.

High Speed Healing understands the need for optimization of business processes.

That’s why we’ve created an POS system that greatly simplifies day to day tasks while

helping to reduce costs.

Customer Check In Procedures

3. Market Analysis

Our target market is both male and female adults between 30 and 45 years of age, who

are in the middle to upper middle class. With a focus on Los Angeles County with the

largest population center around West Hollywood. Long term expansion of Urban Leaf

Dispensary appears extremely viable. There are about 122 million households in the

US with incomes over $100,000 per year, of which one quarter to one third fit precisely

within the target age, with an equal number more ranging 10 to 15 years on the upper

(baby boom) end, and a substantial additional percentage ranging on the lower age end

of the bell curve. The senior citizen market for medical and adult use is also strong and

burgeoning but is not considered in this analysis. The income brackets above and

immediately below our targeted upper-middle class will likely be covered by our core

marketing efforts and word of mouth, and social media reports from satisfied customers,

opening a broad target market of more than 200 million households. Major Marketing

and Sales Campaigns will be consistently directed to bring High Speed Healing

products to two major groups:

1)
Those who need the product to control symptoms or causes of medical

difficulties and;

2)
Responsible adults interested in a responsible use of marijuana for pleasure or

health.

Beyond medical use and symptom-control, three clear market segments appear largely

untapped. One of those are individuals interested in a responsible, controlled “high”.

The groups in this category are those looking for the controlled high, without the toxic

influence of alcohol,while on an active night out with friends, and those amenable to a

quiet night at home. The second group are those that believe that regular use of

marijuana can provide proactive health benefits. The third group are those interested in

a focus on creative endeavors, who believe that marijuana use enables more free and

productive creativity. We will target each audience segment differently as appropriate to

the market. We are focused on disassociating the High Speed Healing brand with the

overuse and abuse of marijuana and all other drugs of choice. This especially requires

a clear and active disassociation with hardcore “stoner culture” which still is associated

with marijuana is some circles and mindsets. Although profit could be affected, in the

short run, by targeting a moderate and responsible use of marijuana, it is the right thing

to do, and that settles the matter. Management believes that in the long run, promoting

responsible marijuana use will provide the more profitable and healthful choice. We will

connect with each demographic group of our target markets, by delivering relevant

content,through social media outlets, website, blog, help-areas, Q and A, TTM

(TargetedTraditional Media), innate branding exposure, orchestrated word of mouth

strategies, interactive campaigns and story-telling from our sales staff to the vendors

and to the customers. Specific marketing campaigns focused on alternative medicine

and the benefits to elderly are intended, as are campaigns for younger adults, as young

as 27, artists, creatives and makers. All of which will emphasize and promote

responsible cannabis use.

4. Competitive Analysis & Marketing Plan

Our target market is both male and female adults between 30 and 45 years of age, who

are in the middle to upper middle class. With a focus on Los Angeles County with the

largest population center around Fresno, California. Long Term expansion of High

Speed Healing appears extremely viable. There are about 122 million households in the

US with incomes over $100,000 per year, of which one quarter to one third fit precisely

within the target age, with an equal number more ranging 10 to 80 on the upper (baby

boom) end, and a substantial additional percentage ranging on the lower age end of the

bell curve. The senior citizen market for medical and adult use is also strong and

burgeoning but is not considered in this analysis. The income brackets above and

immediately below our targeted upper-middle class will likely be covered by our core

marketing efforts and word of mouth, and social media reports from satisfied customers,

opening a broad target market of more than 200 million households. Major Marketing

and Sales Campaigns will be consistently directed to bring High Speed Healing

products to two major groups:

1)
Those who need the product to control symptoms or causes of medical

difficulties and;

2)
Responsible adults interested in a responsible use of marijuana for pleasure or

health.

Beyond medical use and symptom-control, three clear market segments appear largely

untapped. One of those are individuals interested in a responsible, controlled “high”.

The Groups in this category are those looking for the controlled high, without the toxic

influence of alcohol, while on an active night out with friends, and those amenable to a

quiet night at home. The second group are those that believe that regular use of

marijuana can provide proactive health benefits. The third group are those interested in

a focus on creative endeavors, who believe that marijuana use enables more free and

productive creativity. We will target each audience segment differently as appropriate to

the market. We Are Focused on disassociating the High Speed Healing brand with the