Agenda — Indio City Council, October 5, 2022 (part 3 of 4)

AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 314 of 527 5 Commercial Cannabis Business.
(g) When an entity is an owner in a Commercial Cannabis Business, all entities and individuals with a financial interest in the entity shall be disclosed to the City and may be considered owners of the Commercial Cannabis Business. For example, this includes all entities in a multi layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or non -member managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial int erests until only individuals remain.

(0) "Package" means any container or receptacle used for holding cannabis or cannabis products.

(P) "Person" shall mean any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.

(Q) "Physician's recommendation" shall have the same meaning as that appearing in Business and Professions Code Section 26001(ap).

(R) "Premises" all have the same meaning as that appearing in Business and Professions Code Section 26001(aq).

(S) "Retailer" or "Storefront Retailer" shall have the same meaning as that contained in Section 26070(a)(1) of the California Business and Professions Code.

(T) "State license" means a permit or license issued by the State of California, or one of its departments or divisions, under the MAUCRSA and any subsequent related State of California legislation, to engage in cannabis activity. A state license alone will not authorize the holder to operate a Cannabis Business, as state law also requires a license or other authorization issued by a local jurisdiction.

(U) "Youth center" means any:

(1) Public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to:

(a) Private youth membership organizations or clubs,
(b) Social service teenage club facilities,
(c) Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or
(d) Similar amusement park facilities, and
(e) Must be used for youth activities at least 60 percent of the time in a

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(2) It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on City, county, or state parks.

(3) This definition shall not include any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor's office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

123.07 Cannabis Business Permit Required to Engage in Cannabis Business Activity.

No person may engage in any Cannabis Business within the City, including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product, unless the person meets all of the following requirements:

(A) Possess a valid Cannabis Business Permit from the City;

(B) Possess a valid business license from the City;

(D) Is currently in compliance with all applicable state and local laws and regulations pertaining to the Cannabis Business and the cannabis activities, including the duty to obtain any required state licenses.

123.08 Cannabis Owners Criminal Background.

(A) Any person who is an owner of a Cannabis Business must be legally authorized to do so under applicable state law.

(B) Cannabis Business owners shall be required to submit to a criminal background check for themselves. Business owners shall be required to complete a criminal background check prior to issuance or transfer of a Cannabis Business Permit.

(1) Whether the owner has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 316 of 527 7 (2) Whether the owner has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

(3) Whether the owner as ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

(4) Whether the owner has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

(5) Whether the owner has ever been convicted of a felony involving fraud, deceit, or embezzlement.

(D) Evidence of a conviction of any the offenses enumerated in Section 123.0B(c) of this Code shall be grounds for denial or revocation of a Cannabis Business Permit.

123.09 Persons Prohibited from Holding a Permit.

(A) A person is prohibited from holding or maintaining a Cannabis Business Permit if any of the following apply:

(1) The applicant has been denied a cannabis license or permit, or has had a cannabis license or permit suspended or revoked by any city, county, city and county or any other state cannabis licensing authority;

(2) The applicant was notified by the state, county, or city that it was conducting cannabis activity in violation of State law or City ordinances, codes, and requirements, and failed to cure the violation in a timely manner;

(3) Evidence that the applicant is delinquent in payment of federal, state, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;

123.10 Maximum Number and Type of Authorized Cannabis Businesses Permitted.

This section is intended to create a maximum number and types of Cannabis Businesses that may be issued permits to operate in the City.

(A) The following cannabis license types are authorized to operate in the City of Indio.

(1) Cannabis Storefront Retailer.

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 317 of 527 8 (2) Cannabis Non-Storefront Retailer.

(B) Cannabis license types not identified in Section 123.10 (A) are prohibited from obtaining a Cannabis Business Permit in the City of Indio.

(C) The number of each type of Cannabis Business that shall be permitted to operate in the City shall be established by resolution by the City Council.

The population of the City of Indio shall be based on the official census population estimate, as periodically updated by the US Department of Commerce, Census Bureau.

(E) Each year following the City's initial award of permits, if any, or at any time in the City Council's discretion, the City Council may reassess the number of Cannabis Business Permits which are authorized for issuance and make any changes by resolution.

(F) The City Council, at its sole discretion, may determine that the number and/or types of Cannabis Business Permits should remain the same or be modified.

123.11 Community Benefits.

(A) The application Procedure Guidelines and Review Criteria, set forth in Section 123.13 of this Chapter, shall include a component on community benefits.

(B) Any community benefits that a Cannabis Business agrees to provide shall be incorporated into the terms and conditions under which the Cannabis Business will operate with the City's approval, if and when a Cannabis Business Permit is issued.

Such terms and conditions shall be in addition to the requirements of this Chapter.

123.12 City's Reservation of Rights.

The City reserves the right to reject any or all applications for a Cannabis Business Permit. Prior to permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the Cannabis Business Permit program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 318 of 527 9 a failure to comply with other requirements in this Chapter, an application may be rejected for any of the following reasons:

(A) The application was received after the designated time and date of the deadline.

(B) The application did not contain the required elements, exhibits, or was not organized in the required format.

(C) The application was considered not fully responsive to the request for a permit application, i.e. was substantially incomplete.

123.13 Procedure Guidelines and Review Criteria to Evaluate Cannabis Business Permit Applications.

(A) By resolution, the City Council shall adopt Procedure Guidelines and Review Criteria for the City's evaluation of Cannabis Business permit applications and subsequent issuance.

(B) The Procedure Guidelines shall provide the process for soliciting applicatio ns including time frames, limitations, requirements, forms, and rules for completing applications.

(C) The Review Criteria shall include detailed instructions on the methodology to be used to evaluate applications on a point, or other evaluation system, tied to particular sets of criteria.

(D) The Review Criteria shall be used to determine which candidates will be eligible to proceed to the final selection process as determined by City Council resolution.

(E) The City Manager shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the Procedure Guidelines and Review Criteria.

(F) At the time of filing, each applicant shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the application process.

(G) For applicants with ten or more employees, the applicant shall attest that the applicant will enter into a labor peace agreement as defined in Business and Professions Code Section 26001(y) and will abide by the terms of the agreement, and the applicant shall provide a copy thereof to the City. For applicants that have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that within 30-days of cannabis permit from the City, the applicant will enter into and abide by the labor peace agreement.

123.14 Exercise of a Cannabis Business Permit.

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 319 of 527 10 (A) A Cannabis Business Permit shall be exercised within twelve (12) months of the final selection process, as defined by the Procedure Guideline and Review Criteria. A Cannabis Business Permit shall be considered exercised shall be when any of the following occur:

(1) A Certificate of Occupancy has been issued,

(2) The permitted use(s) has commenced on the site, and

(3) A City Building Permit or Grading Permit is secured, and construction lawfully commenced.

(B) Failure to exercise a Cannabis Business Permit within the timeframe established in Section 123.14 (A) shall result in denial of the application.

(C) The City Manager, in his/her sole discretion, may extend the timeframe established in Section 123.14 (A), if he/she determines that the applicant has made a good faith effort to exercise the Cannabis Business Permit within the defined timeframe.

123.15 Abandonment of Permit.

If the Cannabis Business has not been in regular and continuous operation in the preceding four (4) months at the permitted location, the Cannabis Business Permit shall be considered abandoned, unless mitigating circumstance occur which was beyond the control of the permittee and an extension has been authorized by the City Manager.

123.16 Reapplying for a Cannabis Business Permit.

If an applicant is denied a permit due to a disqualifying factors including, but not limited to, failing a background check or not complying with any state, or local jurisdictions regulatory requirements in which legal or administrative action has been taken, a new application may not be filed by the applicant for one (1) year from the date of the denial. This section shall not apply to an approved applicant not awarded a permit resulting from the City not selecting them for one of the permits in the application process.

123.17 Term of a Cannabis Business Permit.

All permits issued under the provisions of this chapter shall be effective for a period not to exceed one (1) year from the date of issuance. The City Manager may renew a permit through the procedures identified in Section 123.18 of this Code.

123.18 Renewal of Cannabis Business Permits.

(A) An application for renewal of a Cannabis Business Permit shall be filed by the Cannabis Business Permittee at least sixty (60) calendar days prior to the expiration date of the current permit.

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 320 of 527 11 (B) The renewal application shall contain all the information required for new applications.

(C) The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter.

(D) An application for renewal of a Cannabis Business Permit may be rejected if any of the following exists:

(1) The application is filed less than sixty (60) days before its expiration or a shorter time period which shall be at the discretion of the City Manager.

(2) The Cannabis Business Permit is suspended or revoked at the time of the application.

(3) The Cannabis Business has not been in regular and continuous operation in the four (4) months prior to the renewal application or the approved extension of the deadline from the City Manager.

(4) The Cannabis Business has failed to conform to the requirements of the Cannabis Business Permit or this Chapter or any regulations adopted pursuant to this Chapter.

(5) The permittee fails or is unable to renew its State of California license.

(6) If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the Cannabis Business Permit.

(7) Violation of Section 123.08 of this Code.

(E) The City Manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare. Appeals from the decision of the City Manager shall be handled pursuant to this Chapter.
(F) If a renewal application is denied, a person may file a new application pursuant to this Chapter not sooner than one (1) year from the date of the denial.

123.19 Suspension, Revocation or Modification of Permits.

Cannabis Business Permits may be suspended, revoked or modified for any violation of

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 321 of 527 12 this Chapter, any state or local laws, rules, and/or any standards, policies, procedures, or regulations adopted pursuant to this Chapter relating to Cannabis Businesses. A decision of the City to suspend, revoke or modify a Cannabis Permit is appealable as set forth in this Chapter.

123.20 Effect of State License Suspension.

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the Cannabis Business Permit of the Cannabis Business. If the State of California or its respective department or division reinstates or reissues the State license, the Cannabis Business may seek reinstatement of its Cannabis Business Permit if the business can demonstrate that the grounds for revocation of the license by the state no longer exist or that the underlying deficiency has otherwise been cured. Any Cannabis Business Permittee shall inform the City of any suspension of a state license.

123.21 Effect of State License Revocation or Termination.

Revocation or termination of a license issued by the State of California, or by any of its departments or divisions, shall immediately revoke or terminate the Cannabis Business Permit of the Cannabis Business. Any Cannabis Business Permittee shall inform the City of any revocation or termination of a state license.

123.22 Appeals.

Appeals relating to denial of an application; to revoke, suspend or modify a permit; to deny renewal of an application for a permit; or to add conditions to a permit shall be conducted as prescribed in this Chapter.

123.23 Appeals and Contents of Appeal

(A) Within ten (10) calendar days after service of the notice of the decision of the City to deny advancement to the final selection process; to revoke, suspend or modify a permit; to deny a renewed application for a permit; or to add conditions to a permit, an applicant or permittee may appeal such action by filing a written appeal with the City Clerk setting forth the reason why the decision was not proper. For appeals of a denial of an application prior to the final decision process, reasons shall be stated with specificity and shall address the issues outlined in Section 123.24 (A). Date of service shall mean the date when a notice or written decision was personally delivered to the applicant or permittee or the date when the notice was caused to be delivered by certified, first class mail. In cases in which the city can verify delivery of a notice to an applicant or in which an applicant is documented as refusing delivery, lack of receipt of the notice cannot form the basis for an appeal.

(B) The Notice of Appeal shall be in writing and signed by the person making the

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 322 of 527 13 appeal ("Appellant"), or their legal representative, and shall contain the following:

(1) Name, address, and telephone number of the appellant.

(2) Specify decisions, actions, or a particular part thereof, made that are the subject of the appeal.

(3) Include a true and correct copy of the notice issued by the City Manager for which the appellant is appealing.

(4) State with specificity the reasons and grounds for making the appeal, including, but not limited to, a statement of facts upon which the appeal is based in sufficient detail to enable the City Council, or any appointed hearing officer, to understand the nature of the controversy, the basis of the appeal, and the relief requested.

(5) All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer or body to consider at the hearing.

(6) An appeal fee as established by Resolution of the City Council.

(A) Failure of the City Clerk to receive a timely appeal constitutes a waiver of the right to appeal the notice issued by the City Manager. In this event, the City Manager's notice of revocation, nonrenewal, or suspension shall be final.

(8) In the event a written Notice of Appeal is timely filed, the nonrenewal, suspension, or revocation shall not become effective until a final decision has been rendered and issued by the City Council or appointed hearing officer. Notices of appeal not served in a timely manner or served by non -operational business shall not serve to allow such business to operate pending appeal.

(C) If no appeal is timely filed in the event of a decision of nonrenewal, the Cannabis Businesses Permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written Notice of Appeal.

123.24 Appointment and Scope of Hearing Officer or Body.

(A) Denial of Application Prior to Final Decision Process. The City Manager, or an appointed hearing officer, as set forth by City Council Resolution, will hear appeals that address the following issues:

(1) Any deviation from the City's published Procedure Guidelines and Review Criteria that adversely affected the applicant by altering the outcome of the City's decision on the application. Examples of appealable deviations

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 323 of 527 14 include, but are not limited to:

i. Failure on the part of the City to provide appropriate notification regarding changes to the application process via website postings and/or email to the applicant prior to the time the application was submitted;

ii. Failure on the part of the City to provide an applicant an equal opportunity to modify an application where that opportunity was provided to other applicants;

iii. Failure on the part of the City to correctly apply the Review Criteria, as established by City Council resolution, in reviewing the application;

(2) Any appeal based upon this section must be supported by a preponderance of the evidence that the applicant presented the relevant information with completeness and in the a ppropriate section of the application. Information presented in the application that is incomplete in nature or that is relevant to a question posed by the City on the application form but appears in the incorrect section, even if complete, may be grounds for the dismissal of the appeal.

(B) All Other Appeals. The City Council, or an appointed hearing officer or body, as set forth by City Council Resolution, shall hear appeals relating the denial of a renewed application, revocation, suspension or modification a permit, or addition of conditions to a permit.

(C) Notwithstanding Section 123.24 (A) (1), an applicant that is eligible to participate in the final selection process, as set forth in the Procedure Guidelines and Review Criteria, but is not selected during the final selection process, shall not be eligible to appeal the outcome of the process.

123.25 Appeal Hearing Process and Proceedings.

(A) Review by City Council, City Manager, Appointed Hearing Officer or Body.

(1) Appellants who file a timely written Notice of Appeal will be entitled to an administrative hearing before the City Council, City Manager, hearing officer or body, as set forth by the City Council by Resolution.

(2) Upon receipt by the City Clerk of a timely -filed Notice of Appeal, the City Clerk shall forward such appeal to the hearing officer who shall schedule a hearing within thirty days (30) days. In the event such hearing cannot be heard within that time period or a mutually agreed upon time with the appellant, then the City Clerk shall schedule the appeal to be heard within forty-five (45) days or

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 324 of 527 15 as reasonably possible.

(3) The appellant(s) listed on the written Notice of Appeal shall be notified in writing of the date, time, and location of the hearing at least ten (10) days before the date of the hearing ("Notice of Appeal Hearing").

(4) A request by an appellant or by the City to continue a hearing must be submitted to the City Clerk in writing no later than three (3) business days before the date scheduled for the hearing. The City C ouncil, City Manager, appointed hearing officer or body may continue a hearing for good cause or on its own motion; however, in no event may the hearing be continued for more than thirty (30) calendar days, unless there is a stipulation by all parties to do so.

(8) At the date, time and location set forth in the Notice of Appeal Hearing, the City Council, City Manager, appointed Hearing Officer or body shall hear and consider the testimony of the appellant(s), City staff, and/or their witnesses, as well as any documentary evidence properly submitted for consideration.

(1) Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded.

(2) The City bears the burden of proof to establish the grounds for nonrenewal, suspension, revocation, modification of the permit, or adding conditions to the permit by a preponderance of evidence. Appellant(s) bear the burden of proof regarding denial of an application or denial of advancement to the final selection process established by the City Council.

(3) The issuance of the City's notice constitutes prima facie evidence of grounds for the denial, nonrenewal, suspension or revocation.

(4) The hearing officer or body may accept and consider late evidence not submitted initially with the Notice of Appeal upon a showing by the appellant of good cause.

The hearing officer or body shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.

(5) The appellant may bring a language interpreter to the hearing at their sole expense.

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appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.

(D) If the appellant, or their legal representative, fails to appear at the appeal hearing, the City Council, City Manager, appointed hearing officer or body, may cancel the appeal hearing and send a notice thereof to the appellant by certified, first class mail to the address (es) stated on the Notice of Appeal. A cancellation of a hearing due to non - appearance of the appellant shall constitute the appellant's waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the City's notice of decision is final and binding.

(E) Final Decision. Following the conclusion of the hearing, the City Council, City Manager, appointed hearing officer or body shall issue a written decision within twenty (20) days which (i) determines if the action appealed from is affirmed or overturned and (ii) specifies the reasons for the decision.

(F) The written decision of the City Council, City Manager, appointed hearing officer or body shall provide that it is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6 for judicial review.

(G) A copy of the written decision shall be served by certified, first class mail on the appellant. If the appellant is not the owner of the real property in which the Cannabis Business is located, or proposed to be located, a copy of the final decision may also be served on the property owner by first class mail to the address shown on the last equalized assessment roll. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this Chapter.

123.26 Change in Location; Updated Application Form.

(A) Any time the business location specified in the regulatory permit is changed, the permittee shall submit an updated application form to the City Manager for approval prior to the change in location. The process and the fees for the processing of the application form shall be the same as the process and fees set forth in Sections 123.18 and 123.27.

(B) Within fifteen (15) calendar days of any other change in the information provided in the updated application form or any change in status of compliance with the provisions of this Chapter, including any change in the Cannabis Business ownership or management members, the applicant shall file an updated application form with the City Manager for review along with an application amendment fee.

123.27 Transfer of Cannabis Business Permit.

(A) The owner of a Cannabis Business Permit shall not transfer ownership or control

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 326 of 527 17 of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager in accordance with the provisions of this Chapter (as though the transferee were applying for an original Cannabis Business Permit). The proposed transferee's application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee). The transferee's application will be treated as a new application, and will be evaluated according to procedures adopted by the City Manager, pursuant to Section 123.43.

(B) Cannabis Business Permits issued through the grant of a transfer by the City Manager shall be valid for a period of one year beginning on the day the City Manager approves the transfer of the permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit and pay the appropriate fee in the manner required by this Chapter.

(C) A Cannabis Business Permit shall not be transferred when the City has notified the permittee in writing that the permit has been or may be suspended or revoked.

(D) Any attempt to transfer a Cannabis Business Permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this Chapter.

Such a purported transfer shall be deemed a ground for revocation of the permit.

123.28 City Business License.

Prior to commencing operations, a Cannabis Business shall obtain a City of Indio business license.

123.29 Building Permits and Inspection.

This includes but is not limited to obtaining any required building permit(s), Fire Department approvals, Police Department approval, Code Enforcement, Planning, and County Health Department approvals, and any other applicable zoning and land use permit(s) and approvals.

123.30 Authorization from the Community Development Director.

Prior to commencing operations, a Cannabis Business must obtain authorization from the Community Development Director certifying that the business is located on a site that meets all of the requirements of Sections 123.29, 123.31 and 123.32 of this Code.

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 327 of 527 18 123.31 Right to Occupy and to Use Property.

Prior to the City 's issuance of a Cannabis Business Permit pursuant to this Chapter, any person intending to open and to operate a Cannabis Business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. If the proposed location will be leased from the property owner, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this Chapter and consents to the operation of the Cannabis Business on the owner's property.

123.32 Location and Design of Cannabis Businesses.

(A) A Cannabis Business must meet land use and building standards pursuant to Title 15 of this Code, including:

(1) Conform with the City's general plan, any applicable specific plan, master plan, and design requirements.

(2) Comply with all applicable zoning and related development standards.

(3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

(B) A Cannabis Business must meet the following rules relating to proximity to sensitive uses:

(1) Shall be no closer than six hundred (600) feet from any zoned parcel in the City designated as a sensitive use under Section 123.32 (B) (2) or 250 feet from any church located in a residential zone, that is in existence at the time the permit is issued. The distance shall be determined by the horizontal distance measured in a straight line from the closest property line of the sensitive use to the closest property line of the lot on which the Cannabis Business is to be located, without regard to intervening structures.

(:;,) Sensitive uses include:

(a) A school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre -school, transitional kindergarten, and K-12).

(b) A commercial daycare center licensed by the State, County or City.

123.33 Limitations on City's Liability.

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 328 of 527 19 To the fullest extent permitted by law, the City of Indio shall not assume any liability whatsoever with respect to having issued a Cannabis Business Permit pursuant to this Chapter or otherwise approving the operation of any Cannabis Business. As a condition to the approval of any Cannabis Business Permit, the applicant shall be required to meet all of the following conditions prior to receiving the Cannabis Business Permit:

(A) Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the City of Indio, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City's issuance of the Cannabis Business Permit, the City 's decision to approve the operation of the Cannabis Business or activity, the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the Cannabis Business or any of its officers, employees or agents.

(B) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City's Risk Manager.

(C) Reimburse the City for all costs and expenses, including but not limited to legal fees and court costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of the applicant's Cannabis Business Permit or related to the City's approval of a cannabis activity. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.

123.34 Records and Recordkeeping.

On no less than an annual basis (at or before the time of the renewal of a Cannabis Business Permit issued pursuant to this Chapter), or at any time upon reasonable request of the City, each Cannabis Business shall file a sworn statement detailing the number and amount of sales by the Cannabis Business during the previous twelve - month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and/or fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business's operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City.

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 329 of 527 20 (B) Each owner and operator of a Cannabis Business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the Cannabis Business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the Cannabis Bu siness. The register required by this paragraph shall be provided to the City Manager upon request.

(C) All Cannabis Businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing processes until purchase as set forth in the MAUCRSA.

123.35 Security Measures.

(A) A Cannabis Business permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the Cannabis Business. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all of the following:

(1} Perimeter fencing and exterior lighting systems (including motion sensors) for after- hours security as approved by the Chief of Police and/or the C ommunity Development Director were applicable.

(1) Preventing individuals from remaining on the premises of the Cannabis Business if they are not engaging in an activity directly related to the permitted operations of the Cannabis Business. In cases in which the individual will not voluntarily leave the premises, the cannabis employee shall contact the Police Department.

(2) Establishing limited access areas accessible only to authorized Cannabis Business personnel.

(3) Installing 24-hour security surveillance cameras of at least high -definition (HD} quality to monitor all entrances and exits to and from the premises, all interior spaces within the Cannabis Business which are open and accessible to the public, all interior spaces where cannabis, cash, or currenc y, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The Cannabis Business shall be responsible for ensuring that the security

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 330 of 527 21 surveillance camera's footage is remotely accessible by the City Manager, and that it is compatible with the City's software and hardware. In addition, if required, remote and real-time, live access to the video footage from the cameras shall be provided to the Chief of Police at the expense of the permittee. Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the Chief of Police upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the Cannabis Business and shall be capable of enlargement via projection or other means.

Internet Protocol address information shall be provided to the Police Department by the Cannabis Business, to facilitate remote monitoring of security cameras by the Department or its designee. Each business shall have network security protocols that are certified by Underwriters Laboratories.

(4) Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in re al time by a security company licensed by the State of California Bureau of Security and Investigative Services.

(5) Panic buttons shall be installed in all Cannabis Businesses with direct notification to the Police Department dispatch and shall be configured to immediately alert dispatch for the Police Department.

(6) Having a professionally installed, maintained, and monitored real -time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services. The permittee shall be required to obtain an alarm permit from the Police Department.

(7) Any security measures, such as bars, installed on the windows or the doors of the Cannabis Business shall be installed only on the interior of the building.

(8) Security personnel shall be on -site 24 hours a day or alternative security as authorized by the City Manager and must have a security patrol when closed.

Security personnel must be licensed by the State of California Bureau of Security and Investigative Services pe rsonnel and shall be subject to the prior review and approval of the City Manager, with such approval not to be unreasonably withheld.

(9) Each Cannabis Business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

(10) Each Cannabis Business shall have an accounting software system in place to provide point of sale data as well as audit trails of both product and cash, where applicable.

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 331 of 527 22 (11) Each Cannabis Business shall demonstrate to the Chief of Police, City Manager or their designees, compliance with the state's track and trace system for cannabis and cannabis products.

(12) Each Cannabis Business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.

(13) Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises.

(14) Emergency access and emergency evacuation plans that are in compliance with state and local fire safety standards.

(8) Each Cannabis Business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and/or operational issues. The designated security representative/liaison shall, on behalf of the Cannabis Business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager upon request that meets the following requirements:

(1) Confirms that a designated Manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.

(2) Identifies all Managers of the Cannabis Business and their contact phone numbers.

(3) Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the Manager's office.

(4) Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.

(5) Identifies a sufficient number of licensed, interior, and exterior security personnel who will monitor individuals inside and outside the Cannabis Business, the parking lot, any adjacent property under the business' control, and ensure that the parking lot is cleared of employees and their vehicles one-half hour after closing.

(C) As part of the application and licensing process each Cannabis Business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 332 of 527 23 (D) The Cannabis Business shall cooperate with the City whenever the City Manager makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.

(E) A Cannabis Business shall notify the City Manager within twenty-four (24) hours after discovering any of the following:

(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

(2) Diversion, theft, loss, or any criminal activity involving the Cannabis Business or any agent or employee of the Cannabis Business.

(a) The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the Cannabis Business.

(b) Any other breach of security.

(F) Compliance with the foregoing requirements shall be verified by the City Manager prior to commencing business operations. The City Manager may supplement these security requirements once operations begin, subject to review by the City Manager if requested by the business owner.

123.36 Fees and Charges.

(A) No person may commence or continue any cannabis activity in the City, without timely paying in full all fees and charges required for the operation of a Cannabis Business.

Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the City Council which may be amended from time to time.

(8) All Cannabis Businesses authorized to operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license, permit, registration, and other fees required under federal, state, and local law. Each Cannabis Business shall cooperate with the City with respect to any request to audit the Cannabis Business' books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes or fees required to be paid during any period.

(C) Prior to operating in the City and as a condition of issuance of a permit, the operator of each cannabis facility shall enter into an operational and/or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this Chapt er, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 333 of 527 24 conditions that will protect and promote the public health, safety and welfare.

123.37 General Operating Requirements.

(A) Cannabis Businesses may operate only during the hours specified in the Cannabis Business Permit issued by the City.

(8) Restriction on Sales and Consumption. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the Cannabis Business.

(C) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a Cannabis Business Permit, or on any of the vehicles owned or used as part of the Cannabis Business. No outdoor storage of cannabis or cannabis products is permitted at any time.

(D) Reporting and Tracking of Product and of Gross Sales. Each Cannabis Business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the Cannabis Business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other infor mation which may be deemed necessary by the City. The Cannabis Business shall ensure that such information is compatible with the City's record - keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by the permittee.

(E) All cannabis and cannabis products sold, distributed, or manufactured shall be cultivated, manufactured, and transported by s tate licensed facilities that maintain operations in full conformance with the State and local regulations.

(F) Emergency Contact. Each Cannabis Business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.

(G) Signage and Notices.

(1) In addition to the requirements otherwise set forth in this section, business identification signage for a Cannabis Business shall conform to the requirements of Chapter 150 Billboards and Signs, including, but not limited to, seeking the issuance of a City sign permit.

(2) No signs placed on the premises of a Cannabis Business shall obstruct any entrance or exit to the building or any window.

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(3) Each entrance to a Cannabis Business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the Cannabis Business is prohibited.

(4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No Cannabis Business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the Cannabis Business or elsewhere including, but not limited to, the public right-of-way.

(5) Signage shall not depict any image of cannabis or cannabis products. No banners, flags, snipe signs, billboards, or other prohibited signs may be used at any time.

(6) In accordance with state law and regulations or as stipulated in the City's Cannabis Business Permit, holders of a Cannabis Business Permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any Cannabis Business located in the city limits utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This paragraph is not intended to place limitations on the ability of a Cannabis Business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.

(H) Minors.

(1) Persons under the age of twenty -one (21) years shall not be allowed on the premises of a Cannabis Business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a Cannabis Business who is not at least twenty- one (21) years of age.

(2) The entrance to the Cannabis Business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the Cannabis Business.

(3) Notwithstanding Section 123.37(h)(1), persons aged 18 to 20 years shall be allowed on the premises of a Cannabis Business if they can produce a physician's recommendation. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the physician's recommendation.

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(I) Odor Control. Odor control devices and techniques shall be incorporated in all Cannabis Businesses to ensure that odors from cannabis are not detectable off site.

Cannabis Businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the Cann abis Business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the Cannabis Business. As such, Cannabis Businesses must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designee(s) determine is a more effective method or technology:

(1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

(2) An air system that creates negative air pressure between the Cannabis Business's interior and exterior, so that the odors generated inside the Cannabis Business are not detectable on the outside of the Cannabis Business.

(J) Display of Permit and City Business License. The original copy of the Cannabis Business Permit issued by the City pursuant to this Chapter and the City issued business license shall be posted inside the Cannabis Business in a location readily visible to the public.

(K) Background Check. Pursuant to Califor nia Penal Code Sections 11105(b)(11) and 13300(b)(11 ), which authorizes City authorities to access state and local summary criminal history information for cannabis employment, licensing, or certification purposes and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner must submit fingerprints and other information deemed necessary by the Chief of Police or his/her designee(s) for a background check by the City of Indio Police Department. Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11 ), which requires that there be a requirement or exclusion from cannabis employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a Cannabis Business unless they have first cleared the background check, as determined by the Chief of Police or his/her designee(s), as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City of Indio to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a Cannabis Business Permit is submitted. Evidence of a conviction of any of the offenses enumerated in Business and Professions Code Section 26057(b)(4), absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the

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(L) Loitering. The owner and/or operator of a Cannabis Business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. The Cannabis Business shall notify the Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

(M) Permits and other Approvals. Prior to the establishment of any Cannabis Business or the operation of any such business, the person intending to establish a Cannabis Business must first obtain all applicable planning, zoning, buildin g, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such Cannabis Business intends to establish and to operate pursuant to Section 123.32 and all applicable requirements in this Chapter.

(N) Each cannabis operator shall establish minimum training standards for all employees. The City Manager shall have the discretion to require other training for the business operations should the City identify deficiencies or non-compliance issues with City or state requirements.

123.38 Operating Requirements for Store Front Retail Facilities.

(A) No more than the number of cannabis retailers adopted by Council resolution may operate within the City at any one time and shall be issued a permit by the City.

(8) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years. If the potential customer is 18 to 20 years old, retailer shall confirm the customer's possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (Medical Marijuana Card). For adult -use purchases, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.

(C) Individuals must show their government -issued identification, and, in the case of medical cannabis facilities, their physician's recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71 in order to g ain access into the retailer. The government -issued identification and, if applicable, doctor's recommendation or cannabis card must also be shown at the point -of-sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.

(D) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 337 of 527 28 activities. Security personnel may be allowed to carry firearms if authorized by the Chief of Police.

(E) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on -site in the retail sales area of the retailer.

Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

(F) All restroom facilities shall remain locked and under the control of management.

(G) Permitted Store Front Retailers are authorized to conduct cannabis sales by delivery, pursuant to the requirements set forth in Section 123.40.

(H) Retailers authorized to conduct retail activities shall only serve customers who are within the permitted premises, or at a delivery address that meets the requirements of this division.

(1) The sale and delivery of cannabis goods shall not occur through a pass through window or a slide-out tray to the exterior of the premises.

(2) Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.

(3) No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.

(4) All cannabis goods sold by a retail business shall be contained in child resistant packaging.

(5) Retailers shall record point -of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point -of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.

(6) A retail permittee who is engaged in retail sale shall hire or contract for security personnel who are at least 21 years of age to provide security services for the permitted retail premises. All security personnel hired or contracted for by the permittee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Division 3 of the Business and Professions Code.

(I) Access to Retailer Premises.

(1) Access to the premises of a retail permittee shall be limited to individuals who are at least 21 years of age.

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 338 of 527 29 (2) Notwithstanding Section 123.37 (h)(1), individuals who are at least 18 years of age and in possession of a valid physician's recommendation shall be granted access to the premises of a retail permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician's recommendation.

(I} Authorized Sales. A retailer shall only sell adult-use cannabis and adult-use cannabis products to individuals who are at least 21 years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, but n ot yet 21, if those individuals are in possession of a valid physician's recommendation. Medicinal cannabis sales to individuals 21 years of age and older are unrestricted.

(J) Limited Access Areas. A retailer shall establish limited -access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager, Chief of Police, or their designees upon request.

(K) Operating hours of the Store Front Retailer Permit shall be limited to the hours of 6:00 a.m. through 10:00 p.m., seven days a week.

(L) Store Front/Retail Security Requirements. All provisions incorporated within Section 123.35 of this Code (Security Measures), are directly applicable to and binding on all Cannabis Businesses, including all Store Front/Retail businesses.

123.39 Operating Requirements for Non-Store Front Retail (Delivery-Only) Facilities.

(A) No more than the number of Non -Store Front Retailers adopted by Council resolution may operate within the City at any one time and shall be issued a permit by the City.

(8) A non -storefront retailer permittee shall be authorized to conduct retail sales exclusively by delivery. The permitted premises of a non -storefront retailer permittee shall be closed to the public.

(C) A non-storefront retailer permittee shall comply with all the requirements applicable to retailer permittees, except for those provisions related to public access to the permitted premises and the retail area.

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 339 of 527 30 (D) Operating hours of the Non-Store Front Retailer Permit shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

123.40 Store Front and Non-Store Front Retail Delivery Requirements.

(A) Prior to providing cannabis goods to a delivery customer, operators are required to verify the age and the necessary documentation of each customer. They must ensure that medical customers are at least eighteen (18) years of age and verify that the customer has a valid doctor's recommendation. In the case of adult -use customers, they must verify that the customer is at least twenty-one (21) years of age. Sales shall only be made to persons matching these criteria.

(B) Retail delivery services shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

(C) Prior to commencing delivery operations, a cannabis Retailer and cannabis Non Store Front Retailer shall provide the following information to the City:

(1) Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

(2) The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

(3) Proof of insurance as required in Section 123.33(b) for any and all vehicles being used to deliver cannabis goods.

(4) The permittee shall provide the City with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.

(5) The permittee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.

123.41 Operating Requirements for Out-of-City Delivery Services.

(A) All Cannabis Businesses which conduct deliveries into or within the City of Indio shall be required to obtain a permit from the City of Indio in order to conduct retail sales regardless of whether they are located in the City or another local jurisdiction.

(B) Prior to commencing operations, a cannabis out -of-City delivery service shall comply with the following requirements:

(1) Obtain from the City a permit authorizing the delivery of cannabis and cannabis

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(2) The retail business operating the delivery service shall provide the City Manager with evidence of a valid state and local license for a Cannabis Business on whose authorization the delivery service is performing the delivery function.

(3) The retail business operating the delivery service shall furnish to the City Manager the year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

(C) Operating hours of the Out-of-City Delivery Service shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

123.42 Permissible Delivery Locations and Customers.

Cannabis delivery businesses permitted to engage in delivery of cannabis and cannabis products inside the City of Indio are subject to the following requirements:

(A) A permitted Cannabis Business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

(8) A permitted Cannabis Business shall comply with all requirements of state and local law pertaining to the Cannabis Business Permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to in order to enforce this Chapter.

(C) Any kiosk, i-Pad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, other than a retail location permitted by the city, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Chapter.

123.43 Promulgation of Regulations, Standards and Other Legal Duties.

(A) In addition to any regulations adopted by the City Council, the City Manager is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of C annabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter.

(8) Regulations shall be published on the City's website.

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 341 of 527 32 (C) Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis Businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.

123.44 Community Relations.

(A) Each Cannabis Business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the Cannabis Business can be provided. Each Cannabis Business shall also provide the above information to all businesses and residences located within one hundred (100) feet of the Cannabis Business.

(B) During the first year of operation pursuant to this Chapter, the owner, manager, and community relations representative from each Cannabis Business holding a permit issued pursuant to this Chapter shall attend meetings with the City Manager, and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such Cannabis Business shall meet with the City Manager when and as requested by the City Manager.

123.45 Fees Deemed Debt to the City.

The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable via an authorized administrative process as set forth in the City ordinance or in any court of competent jurisdiction.

123.46 Permit Holder Responsible for Violations.

The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the Cannabis Business whether or not said violations occur within the permit holder's presence.

123.47 Inspection and Enforcement.

(A) The City Manager, or designee charged with enforcing the provisions of the City of Indio Municipal Code, or any provision thereof , may enter the location of a Cannabis Business at any time, without notice, and inspect the location of any Cannabis Business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law.

(B) It is unlawful for any person having responsibility over the operation of a Cannabis

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 342 of 527 33 Business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a Cannabis Business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a Cannabis Business under this Chapter or under state or local law.

(C) The City Manager, or designee charged with enforcing the provisions of this Chapter may enter the location of a Cannabis Business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of Indio shall be logged, recorded, and maintained in accordance with established procedures by the City of India's City Manager or these regulations.

123.48 Violations declared a public nuisance.

Each and every violation of the provisions of this Chapter constitutes a misdemeanor and is hereby deemed unlawful and a public nuisance. The City reserves the right to pursue any available legal remedy to address violations of this Chapter.

123.49 No Vested Rights

No person(s) (including any Applicant, Owner, and/or Permittee) shall have any vested rights to any permit, right, and/or interest under this chapter, regardless of whether such person(s) sold, distributed, and/or otherwise engaged in acts related to the use of Cannabis prior to the adoption of the ordinance codified in this Chapter."

SECTION 3. CEQA. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to the State CEQA Guidelines Section 15060(c)(3), because it is not a project as defined by the CEQA Guidelines Section 15378. Adoption of the O rdinance does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment as it is an ordinance setting forth the regulatory process for cannabis permits.

SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or its application to any person or circumstance, is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 5. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published in the manner prescribed by law.

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Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 343 of 527 34 PASSED, APPROVED AND ADOPTED this 21st day of September, 2022.

WAYMOND FERMON
MAYOR

ATTEST:

CYNTHIA HERNANDEZ, CMC

CITY CLERK

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City Council
May 18, 2022

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Roxanne Diaz, City Attorney
Subject: Introduction of Ordinance No. 1780 adding a new Chapter 123 to Title XI of the Indio Municipal to regulate and permit commercial cannabis activities in the City; and making a determination that the Ordinance is not subject to the California Environmental Quality Act pursuant to CEQA Guidelines 15060(c)(3)

RECOMMENDATION:

Waive full reading of Ordinance No. 1780 adding a new Chapter 123 to Title XI of the Indio Municipal Code to regulate and permit commercial cannabis activities in the City, introduce the ordinance by title only and request the City Clerk to read the title.

SUMMARY:

Ordinance No. 1780 establishes a regulatory framework to permit commercial cannabis activities in the City. If adopted, the ordinance will permit only cannabis retail activity. Staff and the City’s consultant will return with proposed policies and procedures for the processing, review and selection of the applications at a later date. Separately, the City Council also has before it a related land use ordinance that establishes the locations in the City where retail commercial cannabis businesses are permitted.

BACKGROUND INFORMATION:

In the later part of 2021, the City Council requested that the City Manager bring forward the discussion on permitting cannabis uses in the City. To that end, the City engaged Hinderliter, De Llamas and Associates (“HdL”) to assist the City with the discussion and potential drafting of an ordinance. HdL is a leader in cannabis consulting services, providing jurisdictions in California, with assistance or development of regulations and/or ordinances, application proc ess development, application review, tax administration including audit services and other services related to the cannabis industry. HdL proceeded with meeting with staff in addition to providing an overview of the economic market conditions and approach to the City Council at various study sessions. The result is the proposed ordinance which has previously been reviewed with the Council and the Planning Commission for the City Council’s formal consideration.

Ordinance No. 1780 provides the regulatory framework for permitting commercial cannabis activities in the City. As proposed, the ordinance permits cannabis retail activity, establishes sensitive use buffers and establishes requirements regarding security, recordkeeping, signage, odor and customer access. This ordinance does not establish the locations where cannabis retail businesses can locate.

The location for such businesses is set forth in a separate land use ordinance that will also be reviewed

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As stated above, this regulatory ordinance provides detailed general operating requirements in the following areas: odor control, age -verification, signage, background checks, record keeping and inventory tracking. In addition , hours of operation for the retail businesses are limited to 9:00 am through 9:00 p.m., seven days a week and no on -site consumption is allowed. The ordinance also contains detailed security requirements such as exterior lighting, alarm system, 24-hour video camera surveillance, panic buttons and requires the business owner to establish emergency response protocols. Last, each commercial cannabis business will be required to enter into an operating agreement with the City prior to opening that will include a negotiated public benefit fee and any other community benefits that is offered by the business.

Staff reviewed Ordinance No. 1780 and determined that as a regulatory ordinance, Ordinance No. 1780 is not subject to the California Environmental Quali ty Act (“CEQA”) as it is not a project as defined by CEQA.

ATTACHMENTS:

Ordinance No. 1780

APPROVAL(S):

Kevin H. Snyder, Dir. Of Community Development Approved - 12 May 2022 Roxanne Diaz, City Attorney Approved - 12 May 2022
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 13 May 2022 Bryan H. Montgomery, City Manager Approved - 13 May 2022

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ORDINANCE NO. 1780

AN ORDINANCE OF THE CITY OF INDIO ADDING A NEW CHAPTER
123 ENTITLED CANNABIS BUSINESS ACTIVITIES TO TITLE XI,

BUSINESS REGULATIONS , OF THE INDIO MUNICIPAL CODE TO

REGULATE COMMERCIAL CANNABIS USES IN THE CITY

THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:

SECTION 1. Chapter 123 (Cannabis Activities) of Title XI (Business Regulations) of the Indio Municipal Code is hereby repealed in its entirety.

SECTION 2. A new Chapter 123 entitled “Cannabis Business Activities” is hereby added to Title XI (Business Regulations) of the Indio Municipal Code to read as follows:

“CHAPTER 123

CANNABIS BUSINESS ACTIVITIES

123.01 Title
123.02 Purpose and Intent
123.03 Legal Authority
123.04 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter
123.05 Compliance with State and Local Laws and Regulations 123.06 Definitions
123.07 Cannabis Business Permit Required to Engage in Cannabis Business Activity
123.08 Cannabis Owners and Employee Criminal Background 123.09 Persons Prohibited from Holding a Permit or from Employment with a Cannabis Business Permittee
123.10 Maximum Number and Type of Authorized Cannabis Business es Permitted
123.11 Community Benefits
123.12 City’s Reservation of Rights
123.13 Procedure Guidelines and Review Criteria to Evaluate Cannabis Business Permit Applications
123.14 Exercise of a Cannabis Business Permit
123.15 Abandonment of Permit
123.16 Reapplying for a Cannabis Business Permit
123.17 Term of a Cannabis Business Permit
123.18 Renewal of Cannabis Business Permits

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123.19 Suspension, Revocation, or Modification of Permits 123.20 Effect of State License Suspension
123.21 Effect of State License Revocation or Termination 123.22 Appeals
123.23 Appeals and Contents of Appeal
123.24 Appointment of Hearing Officer or Body
123.25 Appeal Hearing Process and Proceedings
123.26 Change in location; Updated Application Form
123.27 Transfer of Cannabis Business Permit
123.28 City Business License
123.29 Building Permits and Inspection
123.30 Authorization from the Community Development Director 123.31 Right to Occupy and to Use Property
123.32 Location and Design of Cannabis Businesses
123.33 Limitations on City’s Liability
123.34 Records and Recordkeeping
123.35 Security Measures
123.36 Fees and Charges
123.37 General Operating Requirements
123.38 Operating Requirements for Store Front Retail Facilities 123.39 Operating Requirements for Non-Store Front Retail (Delivery-Only) Facilities.
123.40 Store Front and Non-Store Front Retail Delivery Requirements. 123.41 Operating Requirements for Out-of-City Delivery Services 123.42 Permissible Delivery Locations and Customers
123.43 Promulgation of Regulations, Standards and Other Legal Duties 123.44 Community Relations
123.45 Fees Deemed Debt to the City
123.46 Permit Holder Responsible for Violations
123.47 Inspection and Enforcement
123.48 Violations Declared a Public Nuisance
123.49 No Vested Rights

123.01 Title.

This Chapter shall be known as the Cannabis Activities Ordinance of the City of Indio.

123.02 Purpose and Intent.

It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same. It is also the purpose and intent of this Chapter to provide access to adult-use cannabis for persons aged 21 and over as authorized by the

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MAUCRSA, while imposing sensible regulations on the use of land to protect the City’s residents, neighborhoods, and businesses from disproportionately negative impacts. It is the purpose and intent of this Chapter to regulate the commercial sale and delivery of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City and to enforce rules and regulations consistent with state law.

123.03 Legal Authority.

This Chapter is adopted pursuant to the authority granted to the City by Section 7 of Article XI of the California Constitution, Title 4, Division 19 of the California Code of Regulations, and the provisions of the MAUCRSA.

123.04 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter.

Except as specifically authorized by this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, or transportation, of cannabis or cannabis products is expressly prohibited in the City.

123.05 Compliance with State and Local Laws and Regulations.

It is the responsibility of the owners and /or operators of any Commercial Cannabis Business within the City limits to ensure that they operate in a manner compliant with this Chapter, all applicable state and local laws, and any regulations promulgated thereunder , including but not limited to the MAUCRSA.

123.06 Definitions.

(A) “Applicant” means a person or entity that submits an application for a Cannabis Business Permit under this Chapter.

(B) “Cannabis” shall have the same meaning as that appearing in Business and Professions Code Section 26001(f).

(D) “City” shall mean the City of Indio, California.

(E) “City Manager” shall mean the City of Indio City Manager or his or her designee.

(F) “Commercial Cannabis Business” or “Cannabis Business” means any business or operation which engages in medicinal or adult -use commercial cannabis activity authorized by this Chapter.

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(G) “Cannabis Business Permit” means a regulatory permit issued by the City pursuant to this Chapter, to a Commercial Cannabis Business and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal of a permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter and any regulations adopted by the City governing the commercial cannabis activity at issue.

(H) “Cannabis Business Permittee” or “Permittee” means a person or entity that has received a Cannabis Business Permit from the City as authorized under this Chapter

(I) Delivery shall have the same meaning as that appearing in Business and Professions Code Section 26001(o).

(J) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.

(K) “Limited-access area” means an area in which cannabis is stored or held and is only accessible to a permittee and authorized personnel.

(L) “Medicinal cannabis” or “Medicinal cannabis product” shall have the same meaning as that appearing in Business and Professions Code Section 26001(ai).

(M) “Non-Storefront retailer” is a subset of “Retailer” and is a permitted retail business that is closed to the public and provides product to customers solely by means of a delivery service which the retailer owns and controls.

(N) “Owner” means any of the following:

(1) A person with an aggregate ownership interest of 10 percent or more in the Commercial Cannabis Business , unless the interest is solely a security, lien or encumbrance.

(2) An individual who manages, directs, or controls the operations of the Commercial Cannabis Business, including but not limited to:

(a) A member of the board of directors of a nonprofit.
(b) A general partner of a Commercial Cannabis Business that is organized as a partnership.
(c) A non-member manager or manager of a Commercial Cannabis Business that is organized as a limited liability company.
(d) The trustee(s) and all persons who have control of the trust and/or the Commercial Cannabis Business that is held in trust.
(e) An individual wi th the authority to provide strategic direction and oversight

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for the overall operations of the Commercial Cannabis Business , such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.
(f) An individual with the authority to execute contracts on behalf of the Commercial Cannabis Business.
(g) When an entity is an owner in a Commercial Cannabis Business, all entities and individuals with a financial interest in the entity shall be disclosed to the City and may be considered owners of the Commercial Cannabis Business . For example, this includes all entities in a multi - layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or non -member managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain.

(O) “Package” means any container or receptacle used for holding cannabis or cannabis products.

(P) “Person” shall mean any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.

(Q) “Physician’s recommendation” shall have the same meaning as that appearing in Business and Professions Code Section 26001(ap).

(R) “Premises” all have the same meaning as that appearing in Business and Professions Code Section 26001(aq).

(S) “Retailer” or “Storefront Retailer” shall have the same meaning as th at contained in Section 26070(a)(1) of the California Business and Professions Code.

(T) “State license” means a permit or license issued by the State of California, or one of its departments or divisions, under the MAUCRSA and any subsequent related State of California legislation , to engage in cannabis activity. A state license alone will not authorize the holder to operate a Cannabis Business, as state law also requires a license or other authorization issued by a local jurisdiction.

(U) “Youth center” means any:

(1) Public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to:

(a) Private youth membership organizations or clubs,
(b) Social service teenage club facilities,

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(c) Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or (d) Similar amusement park facilities, and
(e) Must be used for youth activities at least 60 percent of the time in a calendar year.

(3) This definition shall not include any private martial arts, yoga, ballet, music , art studio or similar studio of this nature nor shall it include any pri vate gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

123.07 Cannabis Business Permit Required to Engage in Cannabis Business Activity.

(A) Possess a valid Cannabis Business Permit from the City;

(B) Possess a valid business license from the City;

123.08 Cannabis Owners and Employee Criminal Background.

(A) Any person who is an owner, employee or who otherwise works within a Cannabis Business must be legally authorized to do so under applicable state law.

(B) Cannabis Business owners, and employees shall be required to submit to a criminal background check for themselves and all persons in their employment. Business owners shall be required to complete a criminal background check prior to issuance or transfer of a Cannabis Business Permit. Employees shall submit to a criminal background check within one month of being hired.

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(1) Whether the owner or employee has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

(2) Whether the owner or employee has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

(3) Whether the owner or employee has ever been con victed of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

(4) Whether the owner or employee has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

(5) Whether the owner or employee has ever been convicted of a felony involving fraud, deceit, or embezzlement.

(D) Evidence of a conviction of any the offenses enumerated in Section 123.08(c) of this Code shall be grounds for denial or revocation of a Cannabis Business Permit, and/or employment with a Cannabis Business permittee in the City of Indio.

123.09 Persons Prohibited from Holding a Permit or from Employment with a Cannabis Business Permittee.

(A) A person is prohibited from holding or maintaining a Cannabis Business Permit, or from being employed at a Cannabis Business, if any of the following apply:

(3) Evidence that the applicant is delinquent in payment of f ederal, state, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;

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123.10 Maximum Number and Type of Authorized Cannabis Businesses Permitted.

This section is intended to create a maximum number and types of Cannabis Businesses that may be issued permits to operate in the City.

(A) The following cannabis license types are authorized to operate in the City of Indio.

(1) Cannabis Storefront Retailer.

(2) Cannabis Non-Storefront Retailer.

(B) Cannabis license types not identified in Section 123.10 (A) are prohibited from obtaining a Cannabis Business Permit in the City of Indio.

(C) The number of each type of Cannabis Business that shall be permitted to operate in the City shall be established by resolution by the City Council.

(D) Notwithstanding Section 123.10 (C), the total number of allowable Cannabis Storefront Retail permits established by City Council resolution shall be no more than one (1) permit for every fifteen thousand (15,000) residents in the City of Indio, and no less than one (1) permit for every twenty -five thousand (25,000) residents in the City of Indio. The population of the City of Indio shall be based on the official census population estimate, as periodically updated by the US Department of Commerce, Census Bureau.

(E) Each year following the City’s initial award of permits, if any, or at any time in the City Council’s discretion, the City Council may reassess the number of Cannabis Business Permits which are authorized for issuance and make any changes by resolution.

(F) The City Council, at its sole discretion, may determine that the number and/or types of Cannabis Business Permits should remain the same or be modified.

123.11 Community Benefits.

(A) The application Procedure Guidelines and Review Criteria, set forth in Section 123.13 of this Chapter, shall include a component on community benefits.

(B) Any community benefits that a Cannabis Business agrees to provide shall be incorporated into the terms and conditions under whi ch the Cannabis Business will operate with the City’s approval, if and when a Cannabis Business Permit is issued. Such terms and conditions shall be in addition to the requirements of this Chapter.

123.12 City’s Reservation of Rights.

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The City reserves the right to reject any or all applications for a Cannabis Business Permit. Prior to permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law . Persons submitting applications assume the risk that all or any part of the Cannabis Business Permit program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to a failure to comply with other requirements in this Chapter, an application may be rejected for any of the following reasons:

(A) The application was received after the designated time and date of the deadline.

(B) The application did not contain the required elements, exhibits, or was not organized in the required format.

(C) The application was considered not fully responsive to th e request for a permit application, i.e. was substantially incomplete.

123.13 Procedure Guidelines and Review Criteria to Evaluate Cannabis Business Permit Applications.

(A) By resolution, the City Council shall adopt Procedure Guidelines and Review Criteria for the City’s evaluation of Cannabis Business permit applications and subsequent issuance.

(B) The Procedure Guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.

(C) The Review Criteria shall include detailed instructions on the methodology to be used to evaluate applications on a point , or other evaluation system, tied to particular sets of criteria.

(D) The Review Criteria shall be used to determine which candidates will be eligible to proceed to the final selection process as determined by City Council resolution.

(E) The City Manager shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the Procedure Guidelines and Review Criteria.

(F) At the time of filing, each applicant shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the application process.

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peace agreement, the applicant shall provide a notarized statement indicating that within 30-days of cannabis permit from the City, the applicant will enter into and abide by the labor peace agreement.

123.14 Exercise of a Cannabis Business Permit.

(A) A Cannabis Business Permit shall be exercised within twelve ( 12) months of the final selection process, as defined by the Procedure Guideline and Review Criteria. A Cannabis Business Permit shall be considered exercised shall be when any of the following occur:

(1) A Certificate of Occupancy has been issued,

(2) The permitted use(s) has commenced on the site, and

(3) A City Building Permit or Grading Permit is secured, and construction lawfully commenced.

(B) Failure to exercise a Cannabis Business Permit within the timeframe established in Section 123.14 (A) shall result in denial of the application.

123.15 Abandonment of Permit.

If the Cannabis Business has not been in regular and continuous operation in the preceding four (4) months at the permitted location , the Cannabis Business Permit shall be considered abandoned, unless mitigating circumstance occur which was beyond the control of the permittee and an extension has been authorized by the City Manager.

123.16 Reapplying for a Cannabis Business Permit.

123.17 Term of a Cannabis Business Permit.

All permits issued under the provisions of this chapter shall be effective for a period not to exceed one (1) year from the date of issuance . The City Manager may renew a permit through the

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procedures identified in Section 123.18 of this Code.

123.18 Renewal of Cannabis Business Permits.

(A) An application for renewal of a Cannabis Business Permit shall be filed by the Cannabis Business Permittee at least sixty (60) calendar days prior to the expiration date of the current permit.

(B) The renewal application shall contain all the information required for new applications.

(D) An application for renewal of a Cannabis Business Permit may be rejected if any of the following exists:

(1) The application is filed less than sixty (60) days before its expiration or a shorter time period which shall be at the discretion of the City Manager.

(2) The Cannabis Business Permit is suspended or revoked at the time of the application.

(3) The Cannabis Business has not been in regular and continuous operation in the four (4) months prior to the renewal application or the approved extension of the deadline from the City Manager.

(4) The Cannabis Business has failed to conform to the requirements of the Cannabis Business Permit or this Chapter or any regulations adopted pursuant to this Chapter.

(5) The permittee fails or is unable to renew its State of California license.

(7) Violation of Section 123.08 of this Code.

Appeals from the decision of the City Manager shall be handled pursuant to this Chapter.

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(F) If a renewal application is denied, a person may file a new application pursuant to this Chapter not sooner than one (1) year from the date of the denial.

123.19 Suspension, Revocation or Modification of Permits.

Cannabis Business Permits may be suspended, revoked or modified for any violation of this Chapter, any state or local laws, rules, and/or any standards, policies, procedures, or regulations adopted pursuant to this Chapter relating to Cannabis Businesses. A decision of the City to suspend, revoke or modify a Cannabis P ermit is appealable as set forth in this Chapter.

123.20 Effect of State License Suspension.

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the Cannabis Business Permit of the Cannabis Business. If the State of California or its respective department or division reinstates or reissues the State license , the Cannabis Business may seek reinstatement of its Cannabis Business Permit if the business can demonstrate that the grounds for revocation of the license by the state no longer exist or that the underlying deficiency has otherwise been cured. Any Cannabis Business Permittee shall inform the City of any suspension of a state license.

123.21 Effect of State License Revocation or Termination.

123.22 Appeals.

Appeals relating to denial of an application; to revoke , suspend or modify a permit; to deny renewal of an application for a permit; or to add conditions to a permit shall be conducted as prescribed in this Chapter.

123.23 Appeals and Contents of Appeal

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or the date when the notice was caused to be delivered by certified, first class mail. In cases in which the city can verify delivery of a notice to an applicant or in which an applicant is documented as refusing delivery, lack of receipt of the notice cannot form the basis for an appeal.

(B) The Notice of Appeal shall be in writing and signed by the person making the appeal (“Appellant”), or their legal representative, and shall contain the following:

(1) Name, address, and telephone number of the appellant.

(2) Specify decisions, actions, or a particular part thereof, made that are the subject of the appeal.

(3) Include a true and correct copy of the notice issued by the City Manager for which the appellant is appealing.

(5) All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer or body to consider at the hearing.

(6) An appeal fee as established by Resolution of the City Council.

(A) Failure of the City Clerk to receive a timely appeal constitutes a waiver of the right to appeal the notice issued by the City Mana ger. In this event, the City Manager’s notice of revocation, nonrenewal, or suspension shall be final.

(B) In the event a written Notice of Appeal is timely filed, the nonrenewal, suspension, or revocation shall not become effective until a final decision has been rendered and issued by the City Council or appointed hearing officer. Notices of appeal not served in a timely manner or served by non -operational business shall not serve to allow such business to operate pending appeal.

123.24 Appointment and Scope of Hearing Officer or Body.

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(1) Any deviation from the City’s published Procedure Guidelines and Review Criteria that adversely affected the applicant by altering the outcome of the City’s decision on the application. Examples of appealable deviations include, but are not limited to:

ii. Failure on the part of the City to provide an applicant an equal opportunity to modify an application where that opportunity was provided to other applicants;

iii. Failure on the part of the City to correctly apply the Review Criteria, as established by City Council resolution, in reviewing the application;

(2) Any appeal based upon this section must be supported by a preponderance of the evidence that the applicant presented the relevant information with completeness and in the appropriate section of the applica tion. Information presented in the application that is incomplete in nature or that is relevant to a question posed by the City on the application form but appears in the incorrect section, even if complete, may be grounds for the dismissal of the appeal.

(C) Notwithstanding Section 123.24 (A) (1), a n applicant that is eligible to participate in the final selection process, as set forth in the Procedure Guidelines and Review Criteria , but is not selected during the final selection process, shall not be eligible to appeal the outcome of the process.

123.25 Appeal Hearing Process and Proceedings.

(A) Review by City Council, City Manager, Appointed Hearing Officer or Body.

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(2) Upon receipt by the City Clerk of a timely-filed Notice of Appeal, the City Clerk shall forward such appeal to the hearing officer who shall schedule a hearing within thirty days (30) days. In the event such hearing cannot be heard within that time period or a mutually agreed upon time with the appellant, then the City Clerk shall schedule the appeal to be heard within forty-five (45) days or as reasonably possible.

(4) A request by an appellant or by the City to continue a hearing must be submitted to the City Clerk in writing no later than three (3) business days before the date scheduled for the hearing. The City Council, City Manager, appointed hearing officer or body may continue a hearing for good cause or on its own motion; however, in no event may the hearing be continued for more than thirty (30) calendar days, unless there is a stipulation by all parties to do so.

(B) At the date, time and location set forth in the Notice of Appeal Hearing, the City Council, City Manager, appointed Hearing Officer or body shall hear and consider the testimony of the appellant(s), City staff, and/or their witnesses, as well as any documentary evidence properly submitted for consideration.

(2) The City bears the burden of proof to establish the grounds for nonrenewal, suspension, revocation, modification of the permit , or adding conditions to the permit by a preponderance of evidence. Appellant(s) bear the burden of proof regarding denial of an application or denial of advancement to the final selection process established by the City Council.

(3) The issuance of the City’s notice constitutes prima facie evidence of grounds for the denial, nonrenewal, suspension or revocation.

(4) The hearing officer or body may accept and consider late evidence not submitted initially with the Notice of Appeal upon a showing by the appellant of good cause.

The hearing officer or body shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.

(5) The appellant may bring a language interpreter to the hearing at their sole expense.

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(6) The City may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the a ppellant requests from the City that a court reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.

(D) If the appellant, or their legal repres entative, fails to appear at the appeal hearing, the City Council, City Manager, appointed hearing officer or body, may cancel the appeal hearing and send a notice thereof to the appellant by certified, first class mail to the address(es) stated on the Notice of Appeal. A cancellation of a hearing due to non - appearance of the appellant shall constitute the appellant’s waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the City’s notice of decision is final and binding.

(E) Final Decision. Following the conclusion of the hearing , the City Council, City Manager, appointed hearing officer or body shall issue a written decision within twenty (20) days which (i) determines if the action appealed from is affirmed or overturned and (ii) specifies the reasons for the decision.

(G) A copy of the written decision shall be served by certified, first class mail on the appellant.

If the appellant is not the owner of the real property in which the Cannabis Business is located, or proposed to be located, a copy of the final decision may also be served on the property owner by first class mail to the address shown on the last equalized assessment roll. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this Chapter.

123.26 Change in Location; Updated Application Form.

(A) Any time the business location specified in the regulatory permit is changed, the permittee shall submit an updated application form to the City Manager for approval prior to the change in location . The process and the fees for the processing of the application form shall be the same as the process and fees set forth in Sections 123.18 and 123.27.

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123.27 Transfer of Cannabis Business Permit.

(A) The owner of a Cannabis Business Permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager stating that the transferee is now the permittee.

Such an amendment may be obtained only if the transferee files an application with the City Manager in accordance with the provisions of this Chapter (as though the transferee were applying for an original Cannabis Business Permit). The proposed transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee). The transferee’s application will be treated as a new applica tion, and will be evaluated according to procedures adopted by the City Manager, pursuant to Section 123.43.

(B) Cannabis Business Permits issued through the grant of a transfer by the City Manager shall be valid for a period of one year beginning on the day the City Manager approves the transfer of the permit. Before the transferee’s permit expires, the transferee shall apply for a renewal permit and pay the appropriate fee in the manner required by this Chapter.

(C) A Cannabis Business Permit shall not be transferred w hen the City has notified the permittee in writing that the permit has been or may be suspended or revoked.

(D) Any attempt to transfer a Cannabis Business Permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this Chapter. Such a purported transfer shall be deemed a ground for revocation of the permit.

123.28 City Business License.

Prior to commencing operations, a Cannabis Business shall obtain a City of Indio business license.

123.29 Building Permits and Inspection.

Prior to commencing operations, a Cannabis Business permittee shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Fire Department approvals, Police Department approval, Code Enforcement, Planning, and County Health Department approvals , and any other applicable zoning and land use permit(s) and approvals.

123.30 Authorization from the Community Development Director.

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123.31 Right to Occupy and to Use Property.

Prior to the City ’s issuance of a Cannabis Business Permit pursuant to this Chapter, any person intending to open and to operate a Cannabis Business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. If the proposed location will be leased from the property owner , the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this Chapter and consents to the operation of the Cannabis Business on the owner’s property.

123.32 Location and Design of Cannabis Businesses.

(A) A Cannabis Business must meet land use and building standards pursuant to Title 15 of this Code, including:

(1) Conform with the City ’s general plan, any applicable specific plan, master plan, and design requirements.

(2) Comply with all applicable zoning and related development standards.

(3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

(B) A Cannabis Business must meet the following rules relating to proximity to sensitive uses:

(1) Shall be no closer than six hundred (600) feet from any zoned parcel in the City designated as a sensitive use under Section 123.32 (B) (2), that is in existence at the time the permit is issued . The distance shall be determined by the horizontal distance measured in a straight line from the closest property line of the sensitive use to the closest property line of the lot on which the Cannabis Business is to be located, without regard to intervening structures.

(2) Sensitive uses include:

(a) A school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre -school, transitional kindergarten, and K-12).

(b) A commercial daycare center licensed by the State, County or City.

123.33 Limitations on City’s Liability.

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To the fullest extent permitted by law, the City of Indio shall not assume any liability whatsoever with respect to having issued a Cannabis Business Permit pursuant to this Chapter or otherwise approving the operation of any Cannabis Business. As a condition to the approval of any Cannabis Business Permit, the applicant shall be required to meet all of the following conditions prior to receiving the Cannabis Business Permit:

(A) Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of Indio, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City ’s issuance of the Cannabis Business Permit, the City ’s decision to approve the operation of the Cannabis Business or activity, the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the Cannabis Business or any of its officers, employees or agents.

(B) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City’s Risk Manager.

(C) Reimburse the City for all costs and expenses, including but not limited to legal fees and court costs, which the City may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s Cannabis Business Permit or related to the City ’s approval of a cannabis activity. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.

123.34 Records and Recordkeeping.

(A) Each owner and operator of a Cannabis Business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities for a period not less than seven (7) years. On no less than an annual basis (at or before the time of the renewal of a Cannabis Business Permit issued pursuant to this Chapter), or at any time upon reasonable request of the City, each Cannabis Business shall file a sworn statement detailing the number and amount of sales by the Cannabis Business during the previous twelve -month period (or shorter period based upon the timing of the request), provided on a per -month basis. The statement shall also include gross sales for each month, and all applicable taxes and/or fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City.

(B) Each owner and operator of a Cannabis Business shall maintain a current register of the names and the contact information (including the name, address, and telephone number)

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of anyone owning or holding an interest in the Cannabis Business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the Cannabis Business. The register required by this paragraph shall be provided to the City Manager upon request.

(C) All Cannabis Business es shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing processes until purchase as set forth in the MAUCRSA.

123.35 Security Measures.

(1) Perimeter fencing and exterior lighting systems (including motion sensors) for after- hours security as approved by the Chief of Police and/or the Community Development Director were applicable.

(2) Preventing individuals from remaining on the premises of the Cannabis Business if they are not engaging in an activity directly related to the permitted operations of the Cannabis Business. In cases in which the individual will not voluntarily leave the premises, the cannabis employee shall contact the Police Department.

(3) Establishing limited access areas accessible only to authorized Cannabis Business personnel.

(4) Installing 24 -hour security surveillance cameras of at least high-definition (HD) quality to monitor all entrances and exits to and from the premises, all interior spaces within the Cannabis Business which are open and accessible to the public, all interior spaces where cannabis, cash, or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The Cannabis Business shall be responsible for ensuring that the security sur veillance camera’s footage is remotely accessible by the City Manager, and that it is compatible with the City ’s software and hardware. In addition, if required, remote and real-time, live access to the video footage from the cameras shall be provided to the Chief of Police at the expense of the permittee.

Video recordings shall be maintained for a minimum of ninety (90) days and shall be

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made available to the Chief of Police upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the Cannabis Business and shall be capable of enlargement via projection or other means. Internet Protocol address information shall be provided to the Police Department by the Cannabis Business, to facilitate remote monitoring of security cameras by the Department or its designee. Each business shall have network security protocols that are certified by Underwriters Laboratories.

(5) Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.

(6) Panic buttons shall be installed in all Cannabis Businesses with direct notification to the Police Department dispatch and shall be configured to immediately alert dispatch for the Police Department.

(7) Having a professionally installed, maintained, and monitored real -time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services. The permittee shall be required to obtain an alarm permit from the Police Department.

(8) Any security measures, such as bars, installed on the windows or the doors of the Cannabis Business shall be installed only on the interior of the building.

(9) Security personnel shall be on -site 24 hours a day or alternative security as authorized by the City Manager and must have a security patrol when closed.

Security personnel must be licensed by the State of California Bureau of Security and Investigative Se rvices personnel and shall be subject to the prior review and approval of the City Manager, with such approval not to be unreasonably withheld.

(10) Each Cannabis Business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

(11) Each Cannabis Business shall have an accounting software system in place to provide point of sale data as well as audit trails o f both product and cash, where applicable.

(12) Each Cannabis Business shall demonstrate to the Chief of Police, City Manager or their designees, compliance with the state’s track and trace system for cannabis and cannabis products.

(13) Each Cannabis Business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the

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inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.

(14) Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises.

(15) Emergency access and emergency e vacuation plans that are in compliance with state and local fire safety standards.

(B) Each Cannabis Business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and /or operational issues. The designated security representative/liaison shall, on behalf of the Cannabis Business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager upon request that meets the following requirements:

(1) Confirms that a designated Manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.

(2) Identifies all Managers of the Cannabis Business and their contact phone numbers.

(3) Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the Manager’s office.

(5) Identifies a sufficient number of licensed, interior , and exterior security personnel who will monitor individuals inside and outside the Cannabis Business, the parking lot, any adjacent property under the business’ control, and ensure that the parking lot is cleared of employees and their vehicles one-half hour after closing.

(D) The Cannabis Business shall cooperate with the City whenever the City Manager makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.

(E) A Cannabis Business shall notify the City Manager within twenty -four (24) hours after discovering any of the following:

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(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

(2) Diversion, theft, loss, or any criminal activity involving the Cannabis Business or any agent or employee of the Cannabis Business.

(a) The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the Cannabis Business.

(b) Any other breach of security.

123.36 Fees and Charges.

(A) No person may commence or continue any cannabis activity in the City, without timely paying in full all fees and charges required for the operation of a Cannabis Business. Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the City Council which may be amended from time to time.

(B) All Cannabis Businesses authorized to operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license , permit, registration, and other fees required under federal, state, and local law. Each Cannabis Business shall cooperate with the City with respect to any request to audit the Cannabis Business’ books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes or fees required to be paid during any period.

(C) Prior to operating in the City and as a condition of issuance of a permit, the operator of each cannabis facility shall enter into a n operational and/or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this Chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.

123.37 General Operating Requirements.

(A) Cannabis Business es may operate only during the hours specified in the Cannabis Business Permit issued by the City.

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(B) Restriction on Sales and Consumption. Cannabis shall not be consumed by any person on the premises of any Cannabis Business . No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the Cannabis Business.

(D) Reporting and Tracking of Product and of Gross Sales. Each Cannabis Business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the Cannabis Business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The Cannabis Business shall ensure that such information is compatible with the City ’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by the permittee.

(E) All cannabis and cannabis products sold, distributed, or manufactured shall be cultivated, manufactured, and transported by state licensed facilities that maintain operations in full conformance with the State and local regulations.

(G) Signage and Notices.

(1) In addition to the requirements otherwise set forth in this sec tion, business identification signage for a Cannabis Business shall conform to the requirements of Chapter 150 Billboards and Signs, including, but not limited to, seeking the issuance of a City sign permit.

(2) No signs placed on the premises of a Cannabis Business shall obstruct any entrance or exit to the building or any window.

(4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the

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services or the products offered. No Cannabis Business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the Cannabis Business or elsewhere including, but not limited to, the public right-of-way.

(5) Signage shall not depict any image of cannabis or cannabis products. No banners, flags, snipe signs, billboards, or other prohibited signs may be used at any time.

(6) In accordance with state law and regulations or as stipulated in the City’s Cannabis Business Permit, holders of a Cannabis Business Permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any Cannabis Business located in the city limits utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This paragraph is not intended to place limitations on the ability of a Cannabis Business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.

(H) Minors.

(1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a Cannabis Business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a Cannabis Business who is not at least twenty-one (21) years of age.

(3) Notwithstanding Section 123.37(h)(1), persons aged 18 to 20 years shall be allowed on the premises of a Cannabis Business if they can produce a physician’s recommendation. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the physician’s recommendation.

(I) Odor Control. Odor control devices and techniques shall be incorporated in all Cannabis Businesses to ensure that odors from cannabis are not detectable off -site. Cannabis Businesses shall provide a suffici ent odor absorbing ventilation and exhaust system so that odor generated inside the Cannabis Business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights -of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the Cannabis Business. As such, Cannabis Business es must install and maintain the following equipment, or any

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other equipment which the Community Development Director or his/her designee(s) determine is a more effective method or technology:

(1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

(2) An air system that creates negative air pressure between the Cannabis Business’s interior and exterior, so that the odors generated inside the Cannabis Business are not detectable on the outside of the Cannabis Business.

Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from cannabis employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a Cannabis Business or be allowed to work in a Cannabis Business unless they have first cleared the background check, as determined by the Chief of Police or his/her designee(s) , as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City of Indio to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a Cannabis Business Permit is submitted. Evidence of a conviction of any of the offenses enumerated in Business and Professions Code Section 26057(b)(4), absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the applicant.

(L) Loitering. The owner and/or operator of a Cannabis Business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises.

The Cannabis Business shall notify the Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

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from the relevant governmental agency which may be applicable to the zoning district in which such Cannabis Business intends to establish and to operate pursuant to Section 123.32 and all applicable requirements in this Chapter.

(N) Each cannabis operator shall establish minimum training standards for all employees. The City Manager shall have the discretion to require other training for the business operations should the City identify deficiencies or non -compliance issues with City or state requirements.

123.38 Operating Requirements for Store Front Retail Facilities.

(A) No more than the number of cannabis retailers adopted by Council resolution may operate within the City at any one time and shall be issued a permit by the City.

(B) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years . If the potential customer is 18 to 20 years old, retailer shall confirm the customer’s possession of a valid doctor's recommendation and/or H ealth and Safety Code Section 11362.71 identification ca rd (Medical Marijuana Card). For adult-use purchases, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.

(C) Individuals must show their government-issued identification, and, in the case of medical cannabis facilities, their physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71 in order to gain access into the retailer. The government-issued identification and, if applicable, doctor’s rec ommendation or cannabis card must also be shown at the point-of-sale station at the time of purchase.

Doctor recommendations are not to be obtained or provided at the retail location.

(D) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if authorized by the Chief of Police.

(E) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

(F) All restroom facilities shall remain locked and under the control of management.

(G) Permitted Store Front Retailers are authorized to conduct cannabis sales by delivery, pursuant to the requirements set forth in Section 123.40.

(H) Retailers authorized to conduct retail activities shall only serve customers who are within

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the permitted premises, or at a delivery address that meets the requirements of this division.

(1) The sale and delivery of cannabis goods shall not occur through a pass -through window or a slide-out tray to the exterior of the premises.

(2) Retailers shall not operate as or with a drive -in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.

(3) No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.

(4) All cannabis goods sold by a retail business shall be contained in child -resistant packaging.

(I) Access to Retailer Premises.

(1) Access to the premises of a retail permittee shall be limited to individuals who are at least 21 years of age.

(2) Notwithstanding Section 123.37 (h)(1), individuals who are at least 18 years of age and in possession of a valid physician’s recommendation shall be granted access to the premises of a retail permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation.

(I) Authorized Sales. A retailer shall only sell adult -use cannabis and adult -use cannabis products to individuals who are at least 21 years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, but not yet 21, if those individuals are in possession of a valid physician’s recommendation. Medicinal cannabis sales to individua ls 21 years of age and older are unrestricted.

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(J) Limited Access Areas. A retailer shall establish limited -access areas and permit only authorized individuals to enter the limited -access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times b y an employee of the permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager, Chief of Police, or their designees upon request.

(K) Operating hours of the Store Front Retailer Permit shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

123.39 Operating Requirements for Non-Store Front Retail (Delivery-Only) Facilities.

(A) No more than the number of Non-Store Front Retailers adopted by Council resolution may operate within the City at any one time and shall be issued a permit by the City.

(B) A non-storefront retailer permittee shall be authorized to conduct retail sales exclusively by delivery. The permitted premises of a non-storefront retailer permittee shall be closed to the public.

(D) Operating hours of the Non -Store Front Retailer Permit shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

123.40 Store Front and Non-Store Front Retail Delivery Requirements.

(A) Prior to providing cannabis goods to a delivery customer, operators are required to verify the age and the necessary documentation of each customer. They must ensure that medical customers are at least eighteen (18) years of age and verify that the customer has a valid doctor’s recommendation. In the case of adult-use customers, they must verify that the customer is at least twenty -one (21) years of age. Sales shall only be made to persons matching these criteria.

(B) Retail delivery services shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

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(C) Prior to commencing delivery operations, a cannabis Retailer and cannabis Non -Store Front Retailer shall provide the following information to the City:

(1) Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

(2) The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

(3) Proof of insurance as required in Section 123.33(b) for any and all vehicles being used to deliver cannabis goods.

(5) The permittee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.

123.41 Operating Requirements for Out-of-City Delivery Services.

(B) Prior to commencing operations, a cannabis out -of-City delivery service shall comply with the following requirements:

(1) Obtain from the City a permit authorizing the delivery of cannabis and cannabis products within the City limits. A copy of this permit shall be retained by all drivers.

(C) Operating hours of the Out-of-City Delivery Service shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

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123.42 Permissible Delivery Locations and Customers.

Cannabis delivery businesses permitted to engage in delivery of cannabis and cannabis products inside the City of Indio are subject to the following requirements:

(A) A permitted Cannabis Business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

(B) A permitted Cannabis Business shall comply with all requirements of state and local law pertaining to the Cannabis Business Permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to in order to enforce this Chapter.

(C) Any kiosk , i -Pad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, other than a retail location permitted by the city, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Chapter.

123.43 Promulgation of Regulations, Standards and Other Legal Duties.

(A) In addition to any regulations adopted by the City Council, the City Manager is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of Cannabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter.

(B) Regulations shall be published on the City ’s website.

(C) Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis Businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.

123.44 Community Relations.

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interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such Cannabis Business shall meet with the City Manager when and as requested by the City Manager.

123.45 Fees Deemed Debt to the City.

The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable via an authorized administrative proc ess as set forth in the City ordinance or in any court of competent jurisdiction.

123.46 Permit Holder Responsible for Violations.

The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City, whether comm itted by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the Cannabis Business whether or not said violations occur within the permit holder’s presence.

123.47 Inspection and Enforcement.

(A) The City Manager, or designee charged with enforcing the provisions of the City of Indio Municipal Code, or any provision thereof, may enter the location of a Cannabis Business at any time, without notice, and inspect the location of any Cannabis Business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law.

(B) It is unlawful for any person having responsibility over the operation of a Cannabis Business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a Cannabis Business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a Cannabis Business under this Chapter or under state or local law.

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123.48 Violations declared a public nuisance.

123.49 No Vested Rights

SECTION 2. CEQA. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to the State CEQA Guidelines Section 15060(c)(3), because it is not a project as defined by the CEQA Guidelines Section 15378.

Adoption of the Ordinance does not have the potential for resulting in either a direct physical change in the environment or a reason ably foreseeable indirect physical change in the environment as it is an ordinance setting forth the regulatory process for cannabis permits.

SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or its application to any person or circumstance, is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainin g sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragr aph, sentence, clause, phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 4. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published in the manner prescribed by law.

PASSED, APPROVED, and ADOPTED this 1st day of June 2022 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

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___________________________

WAYMOND FERMON, MAYOR

ATTEST:

__________________________

CYNTHIA HERNANDEZ

CITY CLERK

APPROVED AS TO FORM:

__________________________

ROXANNE DIAZ

CITY ATTORNEY

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AGENDA ITEM #9.15
Second Reading of Re-Introduction of Ordinance No. 1780 adding a new Cha... Page 381 of 527 City of Indio
City Council
October 5, 2022

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Miguel Ramirez-Cornejo, Economic Development Manager Subject: Second Reading of Ordinance No. 1783 approving a Development Agreement between the City of Indio and HCL Indio Land Development, LLC and finding said adoption is exempt from further environmental review pursuant to the provisions of Section 15004 of the Ca lifornia Environmental Quality Act (CEQA) Guidelines for the development of approximately 19.04 Acres of city - owned property located south of the Indio Grand Marketplace (formerly known as the Indio Fashion Mall) generally located west of Monroe Street, e ast of Rubidoux Street and north of John Nobles Avenue.

RECOMMENDATION:

Approve Ordinance No. 1783 a Development Agreement between the City of Indio and HCL Indio Land Development, LLC and finding said adoption is exempt from further environmental revie w pursuant to the provisions of Section 15004 of the California Environmental Quality Act (CEQA) Guidelines.

SUMMARY:

Development Agreement between City of Indio and HCL Indio Land Development, LLC

BACKGROUND INFORMATION:

On August 24, 2022, the Planning Commission recommended approval to the City Council of Resolution No. 2035 of the Development Agreement between the C ity of Indio and HCL Indio Land Development, LLC. Finding said adoption is exempt from further environmental review pursuant to the provisions of Section 15004 of the California Environmental Quality Act (CEQA) Guidelines.

The Planning Commission and City Council previously reviewed in a joint study session the plans to revitalize and re -tenant the former Indio Fashion Mall subsequently renamed the Indio Grand Marketplace. Those renovations are scheduled to begin in fall of 2022. The City Council approve d a Disposition and Development Agreement (“DDA”) on July 20, 2022 with HCL Indio Land Development, LLC that conveyed current city-owned properties totaling approximately 15.35 acres. These properties are located directly to the south of the existing mall property. The approved Disposition and Development Agreement contained a schedule of performance and scope of development, as well as the terms and conditions for the sale and development of that property. It also requires that the property close escrow on or before, December 24, 2022.

While the Disposition and Development Agreement (“DDA”) and Development Agreement (“DA”) are separate and distinct agreements, the sequencing and approvals of each are dependent upon the AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 382 of 527 other. In order for the city -owned property to be conveyed to the developer, the Development Agreement, the Highway 111 Corridor Specific Plan and the CEQA Finding of Consistency must be approved and be effective to allow for the conveyance of the real estate and future development of the development parcel.

The Development Agreement (“DA”) sets forth certain developer obligations as conditions of project approval. Specifically:

1. Design and construction of a park and community gathering space on Parcel 6; and

2. Design and construction of off-site improvements on Monroe Street, John Nobles, and Rubidoux Street.

While the Development Agreement references Parcels 1 -6, these Parcels are not legally created at this time and the current properties affected by the Development Agreement are:

City of Indio is the owner of further identified as: Parcel 1: (APN: 614-100-001), Parcel 2: (APN: 614- 100-002), Parcel 3: (APN: 614-100-003), Parcel 4: (APN: 614-100-004), Parcel 5A: (APN: PORTION 614-100-005), Parcel 5B: (APN: PORTION 614 -100-005), Parcel 6: (APN: 614 -100-006), Parcel 7:
(APN: 614-100- 007), Parcel 8: (APN: 614-100-008), Parcel 9: (APN: 614-100-009), Parcel 10: (APN:
614-100-010), Parcel 11: (APN: 614-100-011), Parcel 12: (APN: 614-100-012), Parcel 13: (APN: 614- 100-013), Parcel 14: (APN: 614-100-021), Parcel 15: (APN: 614-100-022), Parcel 16: (APN: 614-100- 023), Parcel 17: (APN: 614-100-024), Parcel 18: (APN: 614-100-018), Parcel 19: (APN: 614-100-019), Parcel 20: (APN: 614 -100-020), Parcel 21: (APN: 614 -101-001), Parcel 22: (APN: 614 -101-002), Parcel 23: (APN: 614 -101-003), Parcel 24: (APN: 614 -101-004), Parcel 25: (APN: 614 -101-005), Parcel 26: (APN: 614 -101-006), Parcel 27: (APN: 614 -101-007), Parcel 28: (APN: 614 -101-008), Parcel 29: (APN: 614 -101-009), Parcel 30: (APN: 614 -101-010), Par cel 31: (APN: 614 -101-011), Parcel 32: (APN: 614 -101-012), Parcel 33: (APN: 614 -101-013), Parcel 34: (APN: 614 -101-014), Parcel 35: (APN: 614 -101-016), Parcel 36: (APN: 614 -101-017), Parcel 37: (APN: 614 -101-018), Parcel 38: (APN: 614 -101-019), Parcel 39: (APN: 614 -101-020), Parcel 40: (APN: 614 -101-021), Parcel 41: (APN: 614 -101-022), Parcel 42: (APN: 614 -101-023), Parcel 43: (APN: 614 -101-024), Parcel 44: (APN: 614 -101-025), Parcel 45: (APN: 614 -101-026), Parcel 46: (APN: 614 -101-027), Parcel 47: (APN: 61 4-101-028), Parcel 48: (APN: 614 -101-029), Parcel 49: (APN: 614 -101-030), Parcel L 50: (APN: 614 -101-031), Parcel 51: (APN: 614 -101-032), Parcel 52: (APN: 614 -101-033), Parcel 53: (APN: 614 -101-034), Parcel 54A: (APN: PORTION 614 -101-035), Parcel 54B: (APN :

PORTION 614-101-035), Parcel 55: (APN: 614-101-036), Parcel 56: (APN: 614-101-037), Parcel 57A:
(APN: PORTION 614 -101-038), Parcel 57B: (APN: PORTION 614 -101-038) and Parcel 58: (APN:
614-101-039).

These properties are bounded by Rubidoux Street on the east, Monroe Street on the west, John Nobles Avenue on the south, and the existing Indio Marketplace development on the north.

Project Description:

HCL Indio Land Development, LLC has proposed to acquire 15.35 acres of the City’s 19.04 acres for private development. This area will be comprised of new Parcels 1 -5. The remaining 3.69 acres (Parcel 6) will be developed with a public park and public parking to be owned and operated by the City. Prior t o the purchase and transfer of the parcels to HCL Indio Land Development, LLC, a development agreement must be approved by the Indio City Council in accordance with California Government Code Title 17, Division 1, Chapter 4, Article 2.5, Development Agreem ents, Sections 65864-65869.5. The Development Agreement is intended to address required on -site and off -site improvements that are further described below.

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 383 of 527 Overview of HCL Indio Land Development, LLC's Development Vision for Parcels 1-5:

Parcels 1 and 2 comprised of approximately 8.36 acres for multi -family residential land uses. HCL Indio Land Development, LLC proposes to develop.

Parcel 3 comprised of approximately 4.23 acres as hospitality and retail land uses. HCL Indio Land Development, LLC proposes to develop.

Parcels 4 and 5 that are approximately 1.38 acres AND 1.39 acres, respectively, in size as surface parking lots for the benefit of Parcels 1-3 and the surrounding community.

HCL Indio Land Development, LLC's proposed development of Parcels 1 -5 will be required through entitlement processing to demonstrate compliance with the land use allowances and design and development standards of the H ighway 111 Corridor Specific Plan. HCL Indio Land Development, LLC proposes that the design of the vehicular circulation through and around the site will incorporate all of the parcels and their respective developments as a cohesive master -planned project. Each individual parcel is proposed to have its own personal design to allow for individual identity while maintaining certain architectural elements to link the overall site architecturally. The roadway design, parking areas, pedestrian paths and landscaping will provide the design and circulation link between the parcels. HCL Indio Land Development, LLC is proposing that the on-site improvements have high architectural quality, be well landscaped, and be efficiently and aesthetically designed. The shape, scale, exterior design and exterior finishes of future buildings shall be coordinated throughout the development of each parcel and shall conform to the Highway 111 Corridor Specific Plan. HCL Indio Land Development, LLC proposes that the location and scal e of future development shall take into consideration the adjacent property uses, guiding the placement and proximity of the improvements to the surrounding streets, developments, adjacent neighborhoods as well in accordance with relevant regulatory provisions of the Highway 111 Corridor Specific Plan.

Conditions of Approval for Future Development Agreement between the City of Indio and HCL Indio Land Development, LLC:

To ensure that the development of the 19.04 acres meets the visions and policies of the City of Indio General Plan 2040 and is consistent with the Highway 111 Corridor Specific Plan, the aforementioned development agreement shall include the following conditions of approval:

Required Conditions of Approval for On-Site Developer Improvements:

1. Parcel 1 (2.79 acres) shall be combined with the adjacent 1.39 acre Parcel owned by Indio Grand Marketplace LLC through a lot merger approved by the City of Indio to create a 4.18 acre Phase 1 residential development area located in the southeast portion of the Overall Site.

2. A minimum of 125 residential apartments shall be constructed on the combined 4.18 acre site and shall be constructed with three or four stories pursuant to the regulatory provisions of the Highway 111 Corridor Specific Plan and other local, state or federal regulations.

3. Parking for the 125 residential apartments shall be fully contained within the boundaries of the

4.18 acres site, shall be a combination of covered and uncovered parking and shall be designed in accordance with the regulatory provisions of the Highway 111 Corridor Specific Plan and other local, state or federal regulations.

4. The 125 residential apartments shall be rented at market rate prices.

5. The 125 residential apartments shall exhibit high architectural quality pursuant to the regulatory provisions of the Highway 111 Corridor Specific Plan and other local, state or federal regulations and shall have interior amenities to respond to consumer demands.

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 384 of 527

6. The 125 residential apartments shall be supported with on-site amenities inclusive of a central clubroom and resident pool area for the residents.

7. Parcel 2 located in the southwest portion of the Overall Site comprised of approximately 5.57 acres shall be developed with a minimum of 170 residential units and shall be constructed with three or four stories pursuant to the regulatory provisions of the Highway 111 Corridor Specific Plan and other local, state or federal regulations.

Findings:

California Government Code Section 65865 (a) specifies that any city, county, or city and county, may enter into a development agreement with any person having a legal or equitable interest in real property for the development of the property as provided in this artic le. California Government Code Section 65865.1 specifies that procedures established pursuant to Section 65865 shall include provisions requiring periodic review at least every 12 months, at which time the applicant, or successor in interest thereto, shall be required to demonstrate good faith compliance with the terms of the agreement. If, as a result of such periodic review, the local agency finds and determines, on the basis of substantial evidence, that the applicant or successor in interest thereto has not complied in good faith with terms or conditions of the agreement, the local agency may terminate or modify the agreement. California Government Code Section 65865.2 specifies that a development agreement shall specify the duration of the agreement, the permitted uses of the property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The development agreement may include conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that such conditions, terms, restrictions, and requirements for subsequent discretionary actions shall not prevent development of the land for the uses and to the density or intensity o f development set forth in the agreement. The agreement may provide that construction shall be commenced within a specified time and that the project or any phase thereof be completed within a specified time and that the agreement may also include terms and conditions relating to applicant financing of necessary public facilities and subsequent reimbursement over time. California Government Code Section 65865.4 specifies that unless amended or canceled pursuant to Section 65868, or modified or suspended pur suant to Section 65869.5, and except as otherwise provided in subdivision (b) of Section 65865.3, a development agreement shall be enforceable by any party thereto notwithstanding any change in any applicable general or specific plan, zoning, subdivision, or building regulation adopted by the city, county, or city and county entering the agreement, which alters or amends the rules, regulations, or policies specified in Section 65866. California Government Code Section 65866.A specifies that unless otherwise provided by the development agreement, rules, regulations, and official policies governing permitted uses of the land, governing density, and governing design, improvement, and construction standards and specifications, applicable to development of the pr operty subject to a development agreement, shall be those rules, regulations, and official policies in force at the time of execution of the agreement. A development agreement shall not prevent a city, county, or city and county, in subsequent actions appl icable to the property, from applying new rules, regulations, and policies which do not conflict with those rules, regulations, and policies applicable to the property as set forth herein, nor shall a development agreement prevent a city, county, or city a nd county from denying or conditionally approving any subsequent development project application on the basis of these existing or new rules, regulations, and policies. California Government Code Section 65867 specifies that a public hearing on an applicat ion for a development agreement shall be held by the planning agency and by the legislative body and Notice of intention to consider adoption of a development agreement shall be given as provided in Sections 65090 and 65091 in addition to any other notice required by law for other actions to be considered concurrently with the development agreement. California Government Code Section 65867.5 (a) specifies that a development agreement is a legislative act that shall be approved by ordinance and is subject to referendum. California

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 385 of 527 Government Code Section 65867.5 (b) specifies that a development agreement shall not be approved unless the legislative body finds that the provisions of the agreement are consistent with the general plan and any applicable specific plan. Pursuant to Section 15004 of the California Environmental Quality Act (“CEQA”) Guidelines, a public agency may enter into a preliminary agreement regarding a project regarding a project prior to its approval (s), provided that such agreement shall n ot commit an agency to the project. California State law requires that each city adopt a general plan to describe its long-term goals and its policies and programs to achieve those goals. Pursuant to the requirements of the State of California Government C ode Section 65300 et. seq., the City of Indio previously prepared a comprehensive update of its General Plan that contains certain elements, and describes its long -term goals. Accordingly, the general plan is a long -range, comprehensive document that serves as a guide for the orderly development of the City of Indio. Pursuant to the California Environmental Quality Act (Public Resources Code § 21000 et seq.), the City as the lead agency determined that an environmental impact report should be prepared to an alyze all potential adverse environmental impacts of the Indio 2040 General Plan and the City of Indio Climate Action Plan and further determined that a program environmental impact report was appropriate for the Project. On August 12, 2015, a Notice of Preparation ("NOP") was distributed to the State Office of Planning and Research and responsible agencies for review. In addition, a public scoping meeting was held on August 20, 2015 to provide information on the Project and to receive comments on issues to be addressed in the Environmental Impact Report. The City received written comments in response to the NOP, which assisted the City in the scope and analysis for the environmental impact report.

Pursuant to California Environmental Quality Act Guidelines Section 15168, a Draft Program Environmental Impact Report (the "Draft EIR") was prepared for the Project. In accordance with the California Environmental Quality Act ("CEQA") (Cal. Pub. Res. Code §21000 et seq.) and the State Guidelines (the "Guidelines") (14 Cal. Code Regs. §15000 et seq.) promulgated with respect thereto, the City analyzed the Project's potential impacts on the environment. Consistent with Guidelines Section 15105 the City circulated the Draft EIR (including appendices) for the Project t o the public and other interested parties for a 45 day public comment period, from March 15, 2019 to April 29, 2019 by filing a Notice of Availability with the State Office of Planning and Research, publishing a notice in the Desert Sun, a newspaper of gen eral circulation, and releasing the Draft EIR (SCH #2015081021) for public review and comment online at www.indio2040.org; and, Following the close of the public comment period and after review of the comments received on the Draft EIR, the City prepared w ritten responses to all comments received on the Draft EIR and those responses to comments are incorporated into the Final Environmental Impact Report ("Final EIR"). The responses to public agency comments were delivered to each public agency commenter on or before July 3, 2019, which is more than 10 days prior to any certification of the Final EIR. The Final EIR was comprised of the Draft EIR dated March 2019, and all appendices thereto; the Comments and Responses to Comments on the DEIR, addenda and errat a to the DEIR which are contained in a separate volume, and the Mitigation Monitoring and Reporting Program for the Project, all of which are on file with the City Clerk; and, On June 26, 2019, the Planning Commission conducted a duly noticed public hearing to consider the Project and the Final EIR, reviewed the staff report, accepted and considered public testimony. After due consideration, the Planning Commission found that agencies and interested members of the public were afforded ample notice and oppor tunity to comment on the FIER and approved Resolution No. 1901 recommending that the City Council certify the Final EIR, adopt findings of fact pursuant to the California Environmental Quality Act, adopt a mitigation monitoring and reporting program, and a dopt a statement of overriding considerations for the Project, On July 17, 2019, the City Council conducted a duly noticed public hearing to consider the Project and the Final EIR, reviewed the staff report, accepted and considered public testimony and con tinued the public hearing to a date certain date of August 21, 2019 and subsequently continued the public hearing to a date certain of September 18, 2019. On September 18, 2019, based upon the evidence presented at the hearing, including the staff report a nd oral testimony, the City Council certified the Final Environmental Impact Report via Resolution Action. The City Council also adopted the current General Plan 2040 on September 18, 2019. Following the adoption of the General

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 386 of 527 Plan and the certification of the Program Final Environmental Impact Report, the City of Indio applied for and received a $310,000 SB 2 Planning Grant from the California Department of Housing and Community Development. On March 16, 2020, the City of Indio executed an agreement with the California State Department of Housing and Community Development a grant agreement for the development of a Specific Plan for the Highway 111 Corridor inclusive of the properties described herein. This Specific Plan upon adoption by the City of Indio C ity Council shall govern land use and development standards for all affected properties. As part of the Specific Plan development, supplemental environmental analysis was conducted. Pursuant to California Government Code Section 65454, no specific plan may be adopted or amended unless the proposed plan or amendment is consistent with the general plan and as such any future private party development actions contemplated under this Development Agreement must be consistent with the adopted Specific Plan that in turn must be consistent with the City’s adopted General Plan. On August 24, 2022, the Planning Commission approved Resolution No. 2034 recommending to the City Council the adoption of the Highway 111 Corridor Specific Plan and the repeal of the Central Highway 111 Corridor Specific Plan and the Mixed Use Specific Plan -300 (MUSP-300). On August 24, 2022, the Planning Commission approved Resolution No. 2033 recommending to the City Council that it make a Finding of Consistency for with the Program Final Env ironmental Impact Report (FEIR) for the General Plan 2040 certified by the City Council on September 18, 2019 for the Highway 111 Corridor Specific Plan.

The City adopted the Mixed Use Specific Plan -300 (MUSP-300) on December 16, 1996 regulating land use a nd development along both sides of the Highway 111 Corridor from Jefferson Street to Clinton Street. The City adopted the Central Highway 111 Corridor Specific Plan on March 15, 2006 regulating land use and development south of Highway 111, north of John N obles Avenue, west of Arabia Street and east of Highway 111 Beginning in October 2020 and continuing to the present, the City has conducted comprehensive planning efforts for the development of new Specific Plan along Highway 111 from Jefferson Street to Indio Boulevard extending approximately one quarter of a mile on either side of the public right -of-way boundaries of Highway 111. The Highway 111 Corridor Specific Plan is intended to implement the vision of the General Plan 2040 pertaining to land use patterns, intensities, densities, building and site design and public right -of-way improvements. The adoption of the Highway 111 Corridor Specific Plan will repeal and replace the aforementioned Mixed Use Specific Plan -300 (MUSP -300) and the Central Highway 1 11 Corridor Specific Plan. The aforementioned Development Agreement is contingent upon the final adoption and implementation of the Highway 111 Corridor Specific Plan thus necessitating the Planning Commission’s review and recommendation to the City Council. On August 12, 2022, the City mailed notices of public hearing to all property owners within 300 feet on all sides of the certain real properties affected by the Development Agreement and published a legal notice of public hearing in the Desert Sun, the newspaper of record.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$2,700,000 In current year budget: Yes
Current FY General
Fund Impact:
$2,700,000 Budget adjustment: No
Next FY Financial
Impact:
$1,400,000 Strategic Objective: Downtown & Hwy 111
Revitalization
Source of funds: General Fund - Measure X Fund-Org-Object Reference:
1011195

Additional Financial Details:

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 387 of 527 Upon approval of the Ordinance, in accordance with the Development Agreement, the City shall pay the Developer for costs actually incurred in planning, designing, developing, permitting and constructing various Public Improvements, but in no event more than $4,100,000.

ATTACHMENTS:

Final HCL Indio Development Agreement
HCL DA Ordinance 1783

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 388 of 527 1 RECORDING REQUESTED By
WHEN RECORDED MAIL TO:

City of Indio
Attn: City Clerk
Indio City Hall
100 Civic Center Mall
Indio, CA 92210
No Recording Fee, Government Code Section 6103 (Above Space for Recorder’s Use Only)

DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into this 5thst day of October 2022, by and among the City of Indio, a California municipal corporation (the “City”), and HCL Indio Land Development, LLC, a Delaware limited liability company (“Developer”). The City and the Developer are individually referred to herein as a “Party” and collectively referred to as the “Parties.”

RECITALS
This Agreement is made and entered into with regard to the following facts, each of which is acknowledged as true and correct by the Parties to this Agreement:

A. California Government Code Section 65864, et seq. (the “Development Agreement Statute”) authorizes cities to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property; B. Developer has the right to acquire that certain real property located in the City of Indio, California and described in Exhibit A attached hereto and incorporated herein by reference and hereinafter is referred to as the “Property.” Developer intends to construct and develop or cause the construction and development of the Project, which generally includes multi-family housing, townhomes, hotel and retail shops and associated parking lots on the Property;
C. Developer has applied to the City for approval of this mutually binding Agreement, pursuant to the provisions of the Development Agreement Act and other applicable laws;
D. Developer desires to develop the Property in accordance with the provisions of this Agreement, the Applicable Rules and those laws and regulations of other agencies exercising jurisdiction over the Property.

E. Developer has applied for, and City has approved, this Agreement in order to create beneficial development of the Property and a physical environment that will conform to and complement City’s goals, create development beneficial to the community including

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 389 of 527 2 additional housing, and otherwise provide for the development of the Property in accordance with City’s best interests;
F. To provide such certainty, the City desires, by this Agreement, to provide the Developer with assurance that the Developer can proceed with development of the Project with the uses, density and other land use characteristics specified in the Project Approvals. The Developer would not enter into this Agreement, or agree to provide the public benefits and improvements described therein without the City’s agreement that the Project can be developed, during the Term of this Agreement, with the uses, density and other land use characteristics specified in the Project Approvals;
G. The City has determined that, as a result of the development of the Project in accordance with the Project Approvals and this Agreement, substantial benefits will accrue to the public, including without limitation, the provision of housing and the development of hospitality uses and retail on property that has been vacant for over 20 years; H. The City Council has specifically considered and approved the impact and benefits of this Project upon the welfare of the City and has concluded this Agreement is in the City’s best interest;
I. The following actions have been taken with respect to this Agreement and the Project:
(1) On August 24, 2022, pursuant to the requirements of the Development Agreement Act, the Planning Commission of the City of Indio conducted a hearing on the Developer’s application for this Agreement and the proposed Finding of Consistency (CEQA) (the “Environmental Document”) and following the hearing the Planning Commission recommended that the City Council approve this Agreement;
(2) On September 21, 2022 after a duly noticed public hearing and pursuant to the California Environmental Quality Act (Cal. Pub. Resources Code, § 21000 et seq.) (“CEQA”), as amended, the City Council adopted Resolution 2035 adopting the Environmental Document for this Agreement;
(3) On September 21, 2022, following a duly noticed public hearing, the City Council introduced Ordinance No. 1783 and on October 5, 2022 held the second reading and adopted Ordinance No. 1783 approving this Agreement, a copy of which is on file in the City Clerk’s Office at City Hall, which ordinance includes the findings pertaining thereto, including those relating to the CEQA documentation for the Project and this Agreement’s consistency with City’s General Plan and each element thereof and the Specific Plan relating to the Project; (4) All actions taken by City have been duly taken in accordance with all applicable legal requirements, including CEQA, and all other requirements for notice, public hearings, findings, votes and other procedural matters.

J. Pursuant to Section 65867.5 of the Development Agreement Act, the City Council has found and determined that: (i) this Agreement implements the goals and policies of City’s General Plan and the Highway 111 Corridor Specific Plan, provides balanced and diversified

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 390 of 527 3 land uses, and imposes appropriate standards and requirements with respect to land development and usage in order to maintain the overall quality of life and the environment within City; (ii) this Agreement is in the best interests of and not detrimental to the public health, safety and general welfare of City and its residents; (iii) adopting this Agreement is consistent with City’s General Plan, and each element thereof, and the Highway 111 Corridor Specific Plan, and constitutes a present exercise of City’s police power; and (iv) this Agreement is being entered into pursuant to and in compliance with the requirements of Government Code Sections 65867 and 65867.5 of the Development Agreement Act.

NOW, THEREFORE, pursuant to the authority contained in the Development Agreement Act, as it applies to the City, and in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

AGREEMENT

1. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context requires:

1.1“Agreement” means this Development Agreement, including all exhibits attached hereto and all amendments and modifications hereto.

1.2“Applicable Rules” means the rules, regulations, ordinances, resolutions, codes, guidelines, and officially adopted procedures and official policies of the City governing the use and development of real property, including, but not limited to, the City’s Zoning Regulations and building regulations, adopted as of the Effective Date. Among other matters, the Applicable Rules set forth and govern the permitted uses of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, parking requirements, setbacks, and development standards, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction guidelines, standards and specifications applicable to the development of the Property.

1.3“Authorizing Ordinance” means Ordinance No. 1783 approving this Agreement.

1.4“Conditions of Approval” shall mean those conditions of approval imposed by the City upon the Project Approvals.

1.5“Developer Fees” shall mean those fees established, adopted, or imposed by the City pursuant to Section 66000-66008, of the Government Code of the State of California or the California Subdivision Map Act to offset the impact of development on the City’s capital facilities. Such fees may include impact fees, linkage fees, exactions, assessments, fair share charges, or other similar impact fees imposed by the City on or in connection with new development. Developer Fees shall also include fees levied by other public entities and required to be collected by the City. Developer Fees do not mean or include Processing Fees.

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 391 of 527 4 1.6“Development Agreement Act” means Article 2.5 of Chapter 4 of Division 1 of Title 7 (Sections 65864 through 65869.5) of the California Government Code (as the same may be amended and/or re-codified from time to time).

1.7“Director” means the City’s Community Development Director.

1.8“Discretionary Action” or “Discretionary Approval” means an action which requires the exercise of judgment, deliberation or a discretion on the part of the City, including any board, commission or department and any officer or employee thereof, in the process of approving or disapproving a particular activity, as distinguished from an activity which is defined herein as a Ministerial Permit or Ministerial Approval.

1.9“Effective Date” means the date the Authorizing Ordinance becomes effective.

1.10“Ministerial Permit(s)” or “Ministerial Approval(s)” means a permit or approval, including, but not limited to, building permits, grading permits, and certificates of occupancy, which requires the City, including any board, agency, commission or department or any officer or employee thereof, to determine whether there has been compliance with applicable rules, statutes, ordinances, conditions of approval, and/or regulations, as distinguished from an activity which is included in the definition of Discretionary Action or Discretionary Approval.

1.11“Mortgage” means any mortgage, deed of trust, encumbrance, sale leaseback or other security interest encumbering all or any portion of the Property, whether now or hereafter existing, given by Developer for the purpose of securing funds to be used for financing or refinancing the Property or any portion thereof, financing or refinancing the construction of improvements thereon and/or any other expenditures reasonably necessary and appropriate to develop the Project.

1.12“Mortgagee” means the holder of the beneficial interest under any Mortgage.

1.13“Processing Fees” means all processing fees and charges required by the City that are applied uniformly to all construction or development related activity including, but not limited to, fees for land use applications, building permit applications, building permits, grading permits, hauling permits, encroachment permits, demolition permits, subdivision or parcel maps, lot line adjustments, street vacations, inspections, certificates of occupancy and plan check. Processing Fees shall not mean or include Developer Fees. In addition, any and all fees payable under the current Applicable Rules shall be deemed to be included within the term “Processing Fees” and not to be included within the term “Developer Fees,” whether the same are payable upon issuance of a building permit, upon connection of a utility or upon issuance of a certificate of occupancy.

1.14“Project” means the development project as described in Exhibit B as modified by the Project Approvals.

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 392 of 527 5 1.15“Project Approvals” shall include, collectively, this Agreement, the Highway 111 Corridor Specific Plan approved by the City with respect to the Project and shall include any Subsequent Project Approvals (as hereafter defined).

1.16“Property” means the real property described in Exhibit A attached hereto.

1.17“Reserved Powers” means the power and authority of the City to enact regulations and/or take Discretionary Action if the same is expressly found by the City to be necessary to protect residents of the City, those employed in the City, or visitors to the City, from a condition that is dangerous to public health or safety or if the same is required to comply with California or federal laws (whether enacted previous or subsequent to the Effective Date of this Agreement).

1.18“Specific Plan” means the Highway 111 Corridor Specific Plan dated August 2022 and approved by the City Council pursuant to Resolution No. 10326 on September 21, 2022.

1.19“Subsequent Land Use Regulations” means any change in or addition to the Applicable Rules adopted after the Effective Date of this Agreement, including, without limitation, any change in any applicable general or specific plan, zoning, subdivision, or building regulation, including, without limitation, any such change by means of an ordinance, initiative, resolution, policy, order or moratorium, initiated or instituted for any reason whatsoever by the City Council, Planning Commission or any other board, agency, commission or department of City, or any officer or employee thereof, or by the electorate, as the case may be, which would, absent this Agreement, otherwise be applicable to the Project.

1.20“Subsequent Project Approvals” shall mean further Discretionary Actions or Discretionary Approvals, Ministerial Permits and Ministerial Approvals required to carry out the Project, including design review. Following adoption or approval, a Subsequent Project Approval shall become a Project Approval.

1.21“Zoning Regulations” shall mean the official zoning regulations of the City adopted as of the Effective Date of this Agreement.

2. Recitals of Premises Purpose and Intent.

2.1State Enabling Statute. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted the Development Agreement Act which authorizes any city to enter into binding development agreements establishing certain development rights in real property with persons having legal or equitable interests in such property, Section 65864 of the Development Agreement Act expressly provides as follows:
“The Legislature finds and declares that:
“(a) The lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer,

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 393 of 527 6 and discourage investment in and a commitment to comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public. “(b) Assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, and subject to conditions of approval will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic cost of development.”
Notwithstanding the foregoing, to ensure that the City remains responsive and accountable to its residents while pursuing the benefits of development agreements contemplated by the Legislature, the City accepts restraints on its police powers contained in development agreements only to the extent and for the duration required to achieve the mutual objectives of the Parties.

2.2The Project. The Developer intends to develop or cause to be developed the Property as described in the Project Approvals and the final plans submitted to the City, subject to the Applicable Rules, the Project Approvals, and the Conditions of Approval. The Parties hereby agree that, for the Term of this Agreement, the permitted uses, the density and intensity of use, the maximum height and size of proposed buildings, parking requirements, setbacks, and development standards, provisions for reservation or dedication of land for public purposes and location of public improvements, and the design, improvement, construction and other guidelines, standards and specifications applicable to the development of the Property shall be those set forth in the Project Approvals, the Applicable Rules and this Agreement, including the Conditions of Approval.

3. Property Subject to Agreement. This Agreement shall apply to all of the Property.

4.Application of Agreement. This Agreement shall apply to the development and use of the Property. Such development shall be in accordance with the Project Approvals as the same may lawfully be amended from time to time other than by initiative and this Agreement.

5. Term and Effective Date.

5.1Term. The term of this Agreement shall commence on the Effective Date and shall continue for 10 years thereafter (the “Term”), unless the Term is otherwise terminated, modified or extended by circumstances set forth in this Agreement or by mutual consent of the Parties to this Agreement after the satisfaction of all applicable public hearing and related procedural requirements.

5.2Effective Date. This Agreement shall become effective upon the date thirty (30) days after the adoption of the Authorizing Ordinance takes effect (“Effective Date”).

6. Timing of Development. The Parties acknowledge that Developer cannot at this time predict when or if the Property will be developed. Such decisions depend upon numerous factors that are not within the control of Developer. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, (the Pardee Case) that

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 394 of 527 7 the failure of the parties therein to provide for the timing of development resulted in a later adopted initiative restricting the timing of development to prevail over such parties’ agreement, it is the Parties’ intent to cure that deficiency by acknowledging and providing that Developer shall have the right to develop the Property consistent with the Project Approvals and the Conditions of Approval in such order and at such rate and at such times as Developer deems appropriate within the exercise of its sole and subjective business judgment during the Term of this Agreement. This provision shall be broadly construed to provide Developer the greatest amount of time and flexibility (in light of the Pardee Case and/or any other similar or distinguishing cases) as necessary or appropriate to permit Developer to complete the development of the project irrespective of later adopted rules, regulations or initiatives which would otherwise restrict the Developer’s time to complete the Project.

7. Permitted Uses; Density; Building Heights and Sizes; Required Dedications.

The City and Developer hereby agree that the permitted uses of the Property, the density and intensity of such uses, the maximum heights and sizes of the buildings and improvements to be constructed on the Property, and the reservation and dedication of land for public purposes, if any, required in connection with the development of the Property shall be as set forth in and consistent with the Project Approvals, as they may be lawfully amended from time to time other than by initiative. Developer shall not cause or permit any use of the Property that is not permitted by the Project Approvals, and shall not cause or permit the construction of any building or improvement that exceeds the maximum density, building heights and/or building sizes set forth in or otherwise required by the Project Approvals, as they may be lawfully amended from time to time other than by initiative.

8. Developer’s Rights and Limitations Regarding Development of the Property

8.1Vested Rights. Developer shall have and is hereby vested with the rights during the Term of this Agreement to develop the Project in accordance with this Development Agreement, the Specific Plan and related Project Approvals, as they may be lawfully amended from time to time, other than by initiative, all of which are hereby incorporated in this Agreement by reference. Except as otherwise provided under the terms of this Agreement, the Parties agree that the permitted uses, the density and intensity of use, the subdivision requirements, the maximum height and size of proposed buildings, parking requirements, setbacks, and development standards, provisions for reservation or dedication of land for public purposes, if any, and location of public improvements, and the design, improvement, construction and other guidelines, standards and specifications applicable to the development of the Property shall be those set forth in the Project Approvals, the Applicable Rules and this Agreement, including the Conditions of Approval for the Project.

8.2Subsequent Project Approvals. City shall accept for processing, review and action all applications for Subsequent Project Approvals, and City staff shall use their reasonable efforts to process the applications in an expeditious manner, taking into account City’s staffing levels, and all requisite Processing Fees and Developer Fees shall be calculated and paid by Developer at such time as payment for the fees are due and payable, for all or a portion of the Property. City may use its sole and absolute discretion in deciding whether to approve or deny any Subsequent Project Approvals; provided, however, that in exercising the foregoing sole and absolute discretion, City shall not apply a standard different than used in

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 395 of 527 8 evaluating requests of other developers. Unless otherwise requested by Developer, City shall not, without good cause, amend or rescind any Subsequent Project Approvals respecting the Property after City has granted the same.

8.3Development in Accordance with Agreement and Applicable Law.

Developer shall commence and complete the Development in accordance with this Agreement (including, without limitation, the Applicable Rules and the Project Approvals) and in compliance with all laws, regulations, rules, and requirements of all non-City governing entities with jurisdiction over the Property.

8.4Priority Of Specific Plan. The City has determined that the Specific Plan is consistent with the General Plan and the Zoning Regulations. As such, the Parties agree that the Specific Plan shall be the primary document governing the development of the Property and, in the event of a conflict, shall prevail over any other of the existing Zoning Regulations except for this Agreement, which prevails over the Specific Plan.

9. Changes in Applicable Rules

9.1Nonapplication of Changes in Applicable Rules. The adoption of any Subsequent Land Use Regulations after the Effective Date of this Agreement, or any change in, or addition to, the Applicable Rules (other than changes in Developer Fees following the third anniversary of the Effective Date and Processing Fees at any time or other changes as provided in this Agreement), including, without limitation, any changes in the General Plan or the Zoning Regulations (including any regulation relating to the timing, sequencing, or phasing of the Project or construction of all or any part of the Project), adopted after the Effective Date of this Agreement, including, without limitation, any such change by means of ordinance, initiative, referendum, resolution, motion, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by any board, agency, commission or department of the City, or by the electorate, as the case may be, which would, absent this Agreement, otherwise be applicable to the Project and which would conflict in any way with the Project Approvals shall not be applied to the Project unless such changes represent an exercise of the City’s Reserved Powers.

9.2Changes in Uniform Codes. Notwithstanding any provision of this Agreement to the contrary, development of the Project shall be subject to changes occurring from time to time in the provisions of the City’s building, mechanical, plumbing, fire, electrical regulations and similar regulations which are based on the recommendations of a multi-state professional organization and become applicable throughout the City, including, but not limited to, the California Building Code and other similar or related uniform codes.

9.3Changes Mandated by Federal or State Laws or Regulations. Changes in, or additions to, the Applicable Rules adopted or made operative on or after the Effective Date of this Agreement shall apply to the Project, if such changes or additions are specifically mandated to be applied to developments such as the Project, by applicable State or Federal laws or regulations. Where City or Developer believes that such a change or addition exists, that Party shall provide the other Party hereto with a copy of such State or Federal law or regulation and a statement of the nature of its conflict with the provisions of the Applicable Rules and/or of this Agreement. The City’s determination shall be final and conclusive.

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 396 of 527 9 9.4Regulation by Other Public Agencies. Other public agencies not subject to City’s control may possess authority to regulate aspects of the Property and the Development and this Agreement does not limit the authority of other public agencies.

9.5Changes in Processing Fees Under Applicable Rules. The Project shall be subject to any increase in Processing Fees imposed by the City, provided that such a change is applied on a Citywide basis.

9.6Applicable Developer Fees. The Project shall be subject to the payment of Developer Fees of the type and in the amount in effect as of the Effective Date until the third (3rd) anniversary of the Effective Date, and thereafter for the balance of term of this Agreement, in the amount in effect at the time that the Developer Fee becomes due under the Applicable Rules or any law adopted after the Effective Date of this Agreement.

10. Relationship of the Parties. It is hereby specifically understood and acknowledged, that the Project is a private project and that neither the City nor the Developer shall be deemed to be the agent of the other for any purpose whatsoever. The City and the Developer hereby renounce the existence of any form of joint venture or partnership between them and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making the City and the Developer joint venturers or partners.

The City has not, and will not, provide any subsidy or financial assistance to the Developer in carrying out the Project.

11. Public Benefit and Conditions of Approval.

11.1Construction of Public Improvements. As a condition of the City’s approval of the Project and the Specific Plan and City’s entry into this Agreement, Developer shall complete and install the following Public Improvements, at the Developer’s sole cost and expense except for the reimbursements by the City as set forth in this Section 11. As used in this Agreement, the term “Public Improvements” shall mean the following:

11.1.1Off-Site Street Improvements. Roadway and street frontage improvements pursuant to City standards and as more fully described and depicted in Exhibit C attached hereto.

11.1.2Off-Site Public Park Improvements. Park improvements on the

3.69 acre site owned by the City as described in Exhibit D attached hereto (“Park Site”).

11.2Developer’s Obligations. Developer shall construct or cause to be constructed the Public Improvements at its sole cost and expense (except for the reimbursements as provided in this Section 11) pursuant to plans and specifications prepared by Developer and approved by City, which approval shall not be unreasonably withheld conditioned or delayed.

Developer will carry out the design and construction of the Public Improvements in conformity with all applicable laws, including all applicable state labor standards, the City’s engineering standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation (to the extent applicable) the Prevailing Wage Laws (Labor Code Sections 1720 et seq.), Americans With Disabilities Act, 42

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 397 of 527 10 U.S.C. Section 12101, et seq. Government Code Section 4450, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq.

11.3Reimbursement for the Public Improvements. The City shall pay Developer for those costs that Developer actually incurs or pays in planning, designing, developing, permitting and constructing the Public Improvements (collectively, the “Eligible Costs”) but in no event more than $4,100,000. Developer shall be entitled to payment of Eligible Costs not more than once per month commencing on the first calendar month after the commencement of work on the Public Improvements. Developer shall provide the City with a request for reimbursement by the fifth day of any calendar month following commencement of construction of the Public Improvements, which request for funds shall include reasonable backup evidence (i.e. invoices, proof of payment, receipts, etc.) including reasonable evidence of the payment of prevailing wages and compliance with prevailing wage statutes of the costs incurred on the Public Improvements. The City shall notify Developer within five (5) business days following receipt of such request for funds if the City has any objections to the request for funds. Any failure by the City to object to the request for funds within such five (5) day period shall be deemed the City’s approval of the request for funds. If the City objects to any element of the requested reimbursement, its shall notify Developer in writing specifying in detail the basis for such objection, and the parties agree to negotiate in good faith a resolution of such objection as expeditiously as possible. The City shall pay Developer (a) all undisputed amounts of Eligible Costs not later than the fifth day of the first calendar month following its receipt of a request for funds therefor in accordance with this subsection; and (b) any remaining amounts of Eligible Costs following resolution of such disputes not later than the fifth day of the first calendar month following such resolution.

11.4Labor Laws. Developer is aware of the requirements of California Labor Code Section 1770 et seq., and the implementing regulations, which require the payment of prevailing wage rates and the performance of other requirements on construction of “public works” under the applicable provisions of the Labor Code. If a third party having jurisdiction regarding the applicability the prevailing wage laws, a court of law or a valid administrative proceeding, determines that that the construction of the Project, or any portion thereof, are “public works” under the Prevailing Wage Laws, Developer shall have the right, but not the obligation, to forgo reimbursement by City, in which case the City shall have no obligation to reimburse Developer for the costs of constructing and installing the Public Improvements as set forth herein. Developer agrees to defend, indemnify and hold harmless the City and its elected officials, officers, employees, attorneys and agents free and harmless from any claim or liability including without limitation, reasonable attorneys’ fees and court costs, arising from any failure or alleged failure to comply with these provisions of the Labor Code. In addition, by its signature hereunder, Developer certifies that it is aware of the provisions of Section 3700 of the California Labor Code, which require ever employer to be insured against liability for Worker’s Compensation or undertake self-insurance in accordance with the provisions of that Code.

Developer agrees to comply with such provisions and to require its consultants to comply with such provisions before commencing any work on the Public Improvements.

11.5Waiver. Developer, for itself and its contractors, hereby expressly agrees that City has satisfied its obligations under the prevailing wage laws to identify projects as being subject to the prevailing wage laws and any other obligations imposed upon the City under Labor

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 398 of 527 11 Code Section 1726 and/or Section 1781 that are owed to or may be actionable by Developer and its contractors. Furthermore, Developer, for itself and its contractors hereby expressly waives any right of action against the City created under Labor Code Section 1726 and/or Section 1781, whether known, or unknown, foreseen or unforeseen relating to the Project and/or any Public Improvement and shall indemnify and hold City harmless from any claims, penalties, actions or causes of action asserted against the City related thereto.

11.6No Monetary Assistance. The parties acknowledge that this Agreement does not, and is not intended to, vest the Developer with any right to obtain monetary assistance from the City for design, construction or installation of any part of the Project. With the exception of certain Public Improvements described herein, the Project is a privately funded, privately constructed project which the parties understand, based on existing law, decisions of the California courts, and public works determinations of the Director of the Department of Industrial Relations, is not a “public work” within the meaning of Labor Code Section 1720 and is not subject to payment of prevailing wages or other compliance with the Prevailing Wage Laws (Labor Code Sections 1720 et seq.).

12. Default.

12.1Notice. Failure by City or Developer to perform any term or provision of this Agreement for a period of thirty (30) days from the receipt of written notice thereof from the other shall constitute a default under this Agreement, subject to extensions of time by mutual consent in writing. Said notice shall specify in detail the nature of the alleged default and the manner in which said default may be satisfactorily cured. If the nature of the alleged default is such that it cannot reasonably be cured within such thirty (30) day period, the commencement of the cure within such time period and the diligent prosecution to completion of the cure shall be deemed a cure within such period.

12.2Remedies. Subject to the foregoing, after notice and expiration of the thirty (30) day period without cure, the notifying party, at its option, shall have all rights and remedies provided by law and/or may give notice of intent to terminate this Agreement pursuant to Government Code Section 65868. Following such notice of intent to terminate, the matter shall be scheduled for consideration and review by the City Council within thirty (30) calendar days in the manner set forth in Government Code Sections 65867 and 65868. Following consideration of the evidence presented in said review before the City Council and a determination that a default exists, the Party alleging the default by the other Party may give written notice of termination of this Agreement to the other Party. Upon any such termination, the respective rights, duties and obligations of the Parties hereto shall without further action cease as of the date of such termination (except as to duties and obligations that arose prior to the date of such termination). In no event shall monetary damages be available against the City for any alleged default or breach by the City. In no event shall consequential damages be available against Developer or any seller of any portion of the Property for any alleged default or breach of this Agreement.

13. Transfers of Interests in Property or Agreement.

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 399 of 527 12 13.1Transfers. In the event of a proposed transfer of interest in any of the parcels of Property and this Agreement by Developer, Developer agrees to provide City at least thirty days written notice of such proposed assignment prior to the proposed transfer and shall provide satisfactory evidence that the assignee will assume in writing through an assignment and assumption agreement all obligations of Developer under this Agreement. Notwithstanding the foregoing: (i) the terms, covenants and conditions of this Agreement shall be binding upon any transferee whether or not such an assignment and assumption agreement is signed by the assignee upon acquiring the Property; and (ii) no such transfer shall relieve the Developer (transferor) of any obligations under this Agreement.

13.2Assignment and Assumption of Obligations. For all proposed transfers of interest in the Property or in this Agreement, Developer shall provide to City an assignment and assumption agreement a form reasonably satisfactory to the City Attorney.

13.3Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon Developer and its successors and assigns. Whenever the term “Developer” is used in this Agreement, such term shall include any other successors and assigns as herein provided.

14. Covenants. All of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Agreement shall be binding upon the parties and their respective heirs, successors (by merger, reorganization, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees, and all other persons acquiring the Property, or any portion thereof, or any interest therein, whether by operation of law or in any manner whatsoever, and shall inure to the benefit of the parties and their respective heirs, successors and assigns. All of the provisions of this Agreement shall constitute covenants running with the land.

15. Periodic Review of Compliance.

15.1Annual Reviews. The City shall conduct annual reviews to determine whether Developer is acting in good faith compliance with the provisions of this Agreement and Government Code Section 65865.1.

15.2Special Reviews. In addition, the City Council of the City may order a special periodic review of Developer’s compliance with this Agreement at any time. The cost of such special reviews shall be borne by the City, unless such a special review demonstrates that Developer is not acting in good faith compliance with the provisions of this Agreement. In such cases, Developer shall reimburse the City for all costs, direct and indirect, incurred in conjunction with such a special review.

15.3Procedure for Review. The Director shall conduct the review contemplated by this Section 15 to ascertain whether Developer has complied in good faith with the terms and conditions of this Agreement during the period for which the review is conducted.

The Director shall give Developer written notice that any such review has been commenced, and shall give Developer at least twenty (20) days after Developer’s receipt of such notice to provide to the Director such information as Developer deems relevant to such review. In addition, upon

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 400 of 527 13 the written request of the Director, Developer shall furnish such documents or other information as requested by the Director.

15.4Result of Review. If following such a review, the Director finds good faith compliance by Developer with the terms and conditions of this Agreement, the Director shall issue to Developer an executed certificate of compliance, certifying Developer’s good faith compliance with the terms and conditions of this Agreement through the period of such review.

Such certificate shall be in recordable form, and shall contain such information as may be necessary to impart constructive record notice of the finding of good faith compliance hereunder.

Developer shall have the right to record such certificate of compliance in the Official Records of the County of Riverside.

If, following such a review, the Director finds that Developer has not complied in good faith with the terms and conditions of this Agreement, the Director shall specify in writing the respects in which Developer has failed to so comply. The Director shall provide Developer with written notice of such noncompliance as provided in section 12 and the City may follow the default procedures as set forth in section 12.

15.5Effect on Default. Nothing in this section 15 shall be interpreted to prevent the City from providing Developer with a notice of default hereunder at any time, including any time other than during a periodic review under this section 15, or from terminating this Agreement pursuant to the provisions of section 12 following any event of default by Developer.

16. Indemnification.

16.1Indemnity, Hold Harmless and Defend. Developer agrees to and shall indemnify, hold harmless, and defend, City and its respective officers, officials, members, agents, employees, and representatives, from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or in any manner arising from this Agreement. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefore, suffered or alleged to have been suffered by reason of the acts, errors and/or omissions, or a combination thereof, referred to in this Section 16, regardless of whether or not City prepared, supplied, or approved plans or specifications, or both. In the event of litigation, City agrees, at no cost to City, to cooperate with Developer. This indemnification, hold harmless and defense requirement shall survive the termination or expiration of this Agreement. City reserves the right, in cases subject to this indemnity, to reasonably approve the attorney selected by Developer to defend Developer and City in any such action.

16.2Defense. In the event of any court action or proceeding challenging the validity of this Agreement, any of the Project Approvals or the environmental review for the Project, Developer shall defend, at its own expense, the action or proceeding. In addition, Developer shall reimburse City for City’s actual costs in defending any court action or proceeding challenging the validity of this Agreement, any of the Project Approvals or the environmental review and the Developer shall also pay any award of costs, expenses and fees

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 401 of 527 14 that the court having jurisdiction over such challenge makes in favor of any challenger and against the City. Developer shall cooperate with City in any such defense as City may reasonably request and may not resolve such challenge without the agreement of City. In the event Developer fails or refuses to reimburse the City for its costs to defend any challenge to this Agreement, the Project Approvals or the environmental review, City shall have the right to terminate this Agreement, subject to the notice and cure requirements of Section 12 above. In all events, City shall have the right to resolve any challenge in any manner, in its sole discretion.

16.3Deposit. In order to ensure compliance with this section, within twenty days after notification by the City of the filing of any claim, action or proceeding to attack, set aside, void or annul this Agreement, any of the Project Approvals or the environmental review prepared and adopted for the Project, the Developer shall deposit with the City cash or other security in the amount of $25,000, satisfactory in form to the City Attorney, guaranteeing indemnification or reimbursement to the City of all costs related to any action triggering the obligations of this section. If the City is required to draw on that cash or security to indemnify or reimburse itself for such costs, the applicant shall restore the deposit to its original amount within fifteen (15) days after notice from the City. Additionally, if at any time the City Attorney determines that an additional deposit or additional security is necessary to secure the obligations of this section, the Developer shall provide such additional security within fifteen (15) days of notice from the City Attorney. The City shall promptly notify the Developer of any claim, action or proceeding within the scope of this Section and the City shall cooperate fully in the defense of any such claim or action, but shall have the right to resolve any challenge, in any manner, in its sole discretion.

17. Mortgagee Protection.

17.1Encumbrances on the Property. This Agreement shall not prevent or limit Developer from encumbering the Property or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance (“Mortgage”) in which the Property, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value in order to secure financing with respect to the construction, development, use or operation of the Property pursuant to the Project Approvals.

17.2Developer’s Breach Does Not Defeat Mortgage Lien. No breach of this Agreement shall defeat or render void the lien of any Mortgage made in good faith and for value but, unless otherwise provided herein, the terms, conditions, covenants, restrictions, easements, and reservations of this Agreement shall be binding and effective against the holder of any such Mortgage whose interest is acquired by foreclosure, trustee’s sale or otherwise.

17.3Holder Not Obligated to Construct or Complete Improvements. The holder of any Mortgage shall in no way be obligated by the provisions of this Agreement to construct or complete the improvements or to guarantee such construction or completion. In addition, the Mortgagee shall have no right to develop or operate the Property without fully complying with the terms of this Agreement, and to the extent that any covenant to be performed by Developer is a condition to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City’s performance under this Agreement.

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Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 402 of 527 15 17.4Notice of Default to Mortgagee. Whenever the City shall deliver any notice or demand to the Developer with respect to any breach or default by the Developer hereunder, the City shall at the same time deliver a copy of such notice or demand to each holder of record of any Mortgage who has previously made a written request to the City therefor, or to the representative of such lender as may be identified in such a written request by the lender.

17.5Right to Cure. The Mortgagee shall have the right, but not the obligation, to cure, correct or remedy the default, within sixty (60) calendar days after the receipt of the notice from City for monetary defaults, or within sixty (60) calendar days after Developer’s cure period has expired for non-monetary defaults, or, for the defaults that cannot reasonably be cured, corrected or remedied within the period, the Mortgagee may cure, correct or remedy the default if the Mortgagee commences to cure, correct or remedy the default within the sixty (60) calendar day period, and continuously and diligently prosecutes the cure to completion. If the default is of a nature that can only be remedied or cured by the Mortgagee upon obtaining possession of the Property, the Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within the time as is reasonably necessary to cure or remedy the default but in no event more than ninety (90) calendar days after obtaining possession. If a default cannot, with diligence, be remedied or cured within the ninety (90) calendar day period, then the period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences the cure or remedy during the ninety (90) calendar day period, and thereafter diligently pursues the cure to completion.

18. Estoppel Certificate. Within ten (10) business days following any written request, in accordance with the notice provisions of this Agreement, which either Party may make from time to time, the other Party shall execute and deliver to the requesting Party, a statement in writing: (i) certifying that this Agreement is unmodified and in full force and effect (or, if modified stating the nature of such modification and certifying that this Agreement, as so modified, is in full force and effect) and; (ii) acknowledging that there are not any uncured defaults under this Agreement or specifying the dates and nature of such defaults if any are claimed. The failure to deliver such statement within such time shall be conclusive upon the Party which fails to deliver such statement that this Agreement is in full force and effect without modification except as may be represented by the requesting Party and that there are no uncured defaults in the performance of the requesting Party. Said statement(s) shall be in the form reasonably satisfactory to the City, the Developer and to any purchaser, lender, title company, governmental agency, or other person reasonably requesting such statement(s) in connection with sale, use, development, financing or marketing of the Project. The City and the Developer, for their own respective uses, shall also be entitled to obtain a statement of compliance at any reasonable time.

18. Amendment. This Agreement may be amended from time to time, in whole or in part, by mutual written consent of the Parties or their successors in interest, as follows:
(i) City and Developer, by mutual agreement, may terminate or amend the terms of this Agreement, and the amendment or termination shall be accomplished in the manner provided under California law for the enactment of Development Agreement amendments.

Page 22 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 403 of 527 16 (ii) Except as may be otherwise agreed to by the Parties, no amendment of this Agreement shall be required in connection with any Subsequent Project Approval except a Subsequent Project Approval proposed by initiative. Any Subsequent Project Approval issued after the Effective Date of this Agreement other than by initiative automatically shall be incorporated into this Agreement and vested hereby.

19. Miscellaneous Provisions.

19.1Binding Effect. This Agreement, and all of the terms and conditions of this Agreement, shall be binding upon and inure to the benefit of the Parties, any subsequent developer of all or any portion of the Property or the Property, and their respective assigns, heirs or successors in interest, whether or not any reference to this Agreement is contained in the instrument by which the Person acquired an interest in the Property. The provisions of this Agreement shall constitute mutual covenants that shall run with the land comprising the Property for the benefit thereof, and the burdens and benefits of this Agreement shall bind and inure to the benefit of each of the Parties to this Agreement and all successors in interest to the Parties to this Agreement for the Term of this Agreement.

19.2Notices. Any approval, disapproval, demand, document or other notice (“Notice”) which either party may desire to give to the other party under this Agreement must be in writing and may be given by any commercially acceptable means to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice.

To City: City of Indio
100 Civic Center Mall
Indio, CA 92201
Attn.: City Manager
To Developer: HCL Indio Land Development, LLC
12302 Exposition Blvd
Los Angeles, CA 90064
Attention: Manager
With a copy to: Karavas Kiely Schloss & Whitman LLP
11400 West Olympic Boulevard, Suite 1480
Los Angeles, CA 90064
Attention: Michael J. Kiely
Any written notice, demand or communication shall be deemed received upon the date of delivery or inability to deliver or refusal of acceptance, as shown on the return receipt, if delivered by registered or certified mail, and on the next Business Day after delivery to a reputable overnight delivery service for overnight delivery.

19.3Interpretation and Applicable Law. The language in all parts of this Agreement shall, in all cases, be construed as a whole and in accordance with its fair meaning.

This Agreement and any dispute arising under this Agreement shall be governed and interpreted

Page 23 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 404 of 527 17 in accordance with the laws of the State of California and the venue for any legal actions brought by any Party with respect to this Agreement shall be the County of Riverside, State of California for state actions and the Central District of California for any federal actions. The Parties understand and agree that this Agreement is not intended to constitute, nor shall be construed to constitute, an impermissible attempt to contract away the legislative and governmental functions of City, and in particular, City’s police powers. In this regard, the Parties understand and agree that this Agreement shall not be deemed to constitute the surrender or abrogation of City’s governmental powers over the Property.

19.4No Third Party Beneficiaries. The only parties to this Agreement are the City and the Developer and their successors-in-interest. There are no third party beneficiaries and this Agreement is not intended, and shall not be construed, to benefit or be enforceable by any other person whatsoever.

19.5Independent Entity. In entering into and performing this Agreement, each of Developer and City is acting as an independent entity and not as an agent of the other in any respect.

19.6Nonliability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or connection with this Agreement, or for any act or omission on the part of City.

19.7Entire Agreement. This Agreement, including all exhibits attached hereto, constitutes the final, complete and exclusive statement of the terms of the agreement between the Parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous oral or written negotiations, discussions and agreements between the Parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms of this Agreement. No Party has been induced to enter into this Agreement, by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement.

19.8Construction. This terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply.

19.9Attorneys’ Fees. In the event either Party hereto brings an action or proceeding for a declaration of the rights of the Parties, for injunctive relief, for an alleged breach or default, or any other action arising out of this Agreement, or the transactions contemplated hereby, the prevailing Party in any such action shall be entitled to an award of actual attorneys’ fees and costs incurred in such action or proceeding without regard to any rule of court or schedule of such fees maintained by the court, in addition to any other damages or relief awarded, regardless of whether such action proceeds to final judgment.

Page 24 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 405 of 527 18 19.10Waiver. The failure of either Party hereto to insist in any one or more instances upon the strict performance of any of the covenants, agreements, terms, provisions or conditions of this Agreement, or to exercise any election or option herein contained, shall not be construed as a waiver or relinquishment for the future of such covenant, agreement, term, provision, condition, election or option, but the same shall continue and remain in full force and effect. No waiver by any Party hereto of any covenant, agreement, term, provision or condition of this Agreement shall be deemed to have been made unless expressed in writing and signed by an appropriate official or officer on behalf of such Party.

19.11Compliance with Law. Notwithstanding any provisions of this Agreement, the Parties agree to comply with all federal, state and local laws and to act in good faith and reasonably in carrying out the terms of this Agreement.

19.12Counterparts. This Agreement may be executed in one or more counterparts each of which will be deemed an original, but all of which constitute one and the same instrument.

19.13Authorization. Each person executing this Agreement represents and warrants that he or she is authorized and has the legal capacity to execute and deliver this Agreement on behalf of the Party for which execution has been made.

19.14Recordation. This Agreement shall be recorded by City with the County Recorder of Riverside County within the period required by California Government Code Section 65868.5. Amendments approved by the Parties, and any cancellation or termination of this Agreement, shall be similarly recorded.

19.15Alterations. No alteration, amendment or modification of this Agreement shall be valid unless evidenced by a written instrument executed by the Parties hereto with the same formality as this Agreement, and made in the manner required by the Development Agreement Act.

19.16No Joint and Several Liability. At any time that there is more than one Developer, no breach of this Agreement by a developer shall constitute a breach by any other developer. Any remedy, obligation, or liability, including, but not limited to, the obligations to defend and indemnify City, arising by reason of the breach shall be applicable solely to the Developer that committed the breach. However, City shall send a copy of any notice of violation to all Developers, including those not in breach. In addition, a default by any Transferee shall only affect that portion of the Property owned by the Transferee and shall not cancel or diminish in any way Developer’s rights under this Agreement with respect to any portion of the Property not owned by the Transferee. The Transferee shall be responsible for the reporting and annual review requirements relating to the portion of the Property owned by the Transferee, and any amendment to this Agreement between City and a Transferee shall only affect the portion of the Property owned by the Transferee.

19.17Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that

Page 25 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 406 of 527 19 the invalidity or unenforceability does not impair the application of this Agreement as intended by the Parties.

19.18Time is of the Essence. Time is of the essence of this Agreement and every term or performance hereunder.

19.19Authorization. Each person executing this Agreement represents and warrants that he or she is authorized and has the legal capacity to execute and deliver this Agreement on behalf of the Party for which execution has been made. {Signatures on Following Page}

Page 26 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 407 of 527 20 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.
“CITY”
CITY OF INDIO, a California municipal
corporation
By:

Bryan H. Montgomery, City Manager
ATTEST:

Cynthia Hernandez, CMC, City Clerk
APPROVED AS TO FORM:

Steven P. Graham, City Attorney

Page 27 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 408 of 527 21 DEVELOPER:

HCL INDIO LAND DEVELOPMENT,
LLC, a Delaware limited liability company
By HAAGEN COMPANY LLC, its manager
By _________________________________
Alexander Haagen III
Its Manager
Dated:________________________________

Page 28 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 409 of 527

EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY AND SITE PLAN
Real property in the City of Indio, County of Riverside, State of California, described as follows:

PARCEL 1: (APN: 614-100-001)
THE NORTHERLY 150 FEET OF THE SOUTH HALF OF THE WEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN.

EXCEPTING THEREFROM THE WESTERLY 42 FEET. PARCEL 2: (APN: 614-100-002)

THE SOUTH HALF OF THE WEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN.

EXCEPTING THEREFROM THE NORTH 150 FEET.

ALSO EXCEPTING THE SOUTH 25 FEET AS CONVEYED TO THE CITY OF INDIO BY INSTRUMENT RECORDED JANUARY 22, 1954 IN BOOK 1547, PAGE 323 AND OCTOBER 3, 1955 IN BOOK 1801, PAGE 247, OF OFFICIAL RECORDS.

ALSO EXCEPTING THE WEST 42 FEET OF THE NORTH 150 FEET AS CONVEYED TO THE CITY OF INDIO BY DEED RECORDED SEPTEMBER 21, 1962 AS INSTRUMENT NO. 88559, OF OFFICIAL RECORDS.

PARCEL 3: (APN: 614-100-003)

THE WEST HALF OF THAT PORTION OF THE EAST HALF OF THE SOUTHWEST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF SAID EAST HALF OF THE

SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE NORTH 00° 13' 20" EAST ON THE WEST LINE

OP THE EAST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 140.00 FEET TO THE SOUTHWEST CORNER OF PARCEL 1 CONVEYED TO HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE BY DEED RECORDED FEBRUARY 9, 1953 AS INSTRUMENT NO. 6258, OFFICIAL RECORDS;
THENCE NORTH 89° 28' 30" EAST AND PARALLEL WITH THE SOUTH LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 132.11

Page 29 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 410 of 527 FEET TO THE WEST LINE OF PARCEL 2 CONVEYED TO THE HOUSING AUTHORITY

OF THE COUNTY OF
RIVERSIDE, BY DEED ABOVE REFERRED TO;
THENCE SOUTH 00° 14' 10" WEST ON THE WEST LINE OF SAID PARCEL 2, CONVEYED TO THE HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE, 140.00

FEET TO THE SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION;
THENCE SOUTH 89° 28' 30" WEST, ON THE SOUTH LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 132.11 FEET TO THE POINT OF BEGINNING.

PARCEL 4: (APN: 614-100-004)

THE EAST HALF OF THAT PORTION OF THE EAST HALF OF THE SOUTHWEST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF SAID EAST HALF OF THE

SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE NORTH 0° 13' 20" EAST ON THE WEST LINE

OF THE EAST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 140 FEET TO THE SOUTHWEST CORNER OF PARCEL 1 CONVEYED TO HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE BY DEED RECORDED FEBRUARY 9, 1953 AS INSTRUMENT NO. 6258 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE NORTH 89° 28' 30" EAST AND PARALLEL WITH THE SOUTH

LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 132.11 FEET TO THE WEST LINE OF PARCEL 2 CONVEYED TO THE

HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE, BY DEED ABOVE REFERRED TO;
THENCE SOUTH 0° 14' 10" WEST ON THE WEST LINE OF SAID PARCEL 2, CONVEYED TO THE HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE, 140

FEET TO THE SOUTH LINE OF SAID
NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH 89°
28' 30" WEST ON THE SOUTH LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 132.11 FEET TO THE POINT OF BEGINNING.

Page 30 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 411 of 527 PARCEL 5A: (APN: PORTION 614-100-005)

ALL THAT PORTION OF THE EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE WEST LINE OF THE EAST HALF OF SOUTHWEST

QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID

SECTION WHICH BEARS NORTH
00° 13' 20" EAST, 140 .00 FEET FROM THE SOUTHWEST CORNER THEREOF; THENCE NORTH 00° 13' 20" EAST, ALONG THE WEST LINE OF THE EAST HALF OF

THE SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 529.12 FEET TO THE NORTHWEST CORNER THEREOF; THENCE NORTH 89° 31' 45" EAST, ALONG THE NORTH LINE OF THE EAST HALF OF

SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID
SECTION, 332.21 FEET TO THE NORTHEAST CORNER THEREOF;
THENCE SOUTH 00° 14' 10" WEST, ALONG THE EAST LINE OF THE EAST HALF OF

SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 124.08

FEET TO THE NORTHEAST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO MT. ZION CHURCH OF GOD IN CHRIST, ET AL., BY DEED RECORDED SEPTEMBER 24, 1951, IN
BOOK 1305, PAGE 126 OF OFFICIAL RECORDS;
THENCE SOUTH 89° 28' 30" WEST AND PARALLEL WITH THE SOUTH LINE OF THE

EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF
NORTHWEST QUARTER OF SAID SECTION, 140.00 FEET TO THE NORTHWEST CORNER OF SAID PARCEL OF LAND SO CONVEYED TO MT. ZION CHURCH OF GOD IN CHRIST, ET AL;
THENCE SOUTH 00° 14' 10" WEST, AND PARALLEL WITH THE EAST LINE OF THE

EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF

NORTHWEST QUARTER OF SAID
SECTION, 405.00 FEET TO A POINT ON THE WEST LINE OF THAT CERTAIN PARCEL

OF LAND

Page 31 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 412 of 527 CONVEYED TO JESSE NOBLES, A WIDOWER, BY DEED RECORDED APRIL 5, 1950, IN BOOK
1162, PAGE 75 OF OFFICIAL RECORDS.

THENCE SOUTH 89° 28' 30" WEST AND PARALLEL WITH THE SOUTH LINE OF THE

EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF
NORTHWEST QUARTER OF SAID SECTION, 192.11 FEET TO THE POINT OF BEGINNING;

EXCEPTING THEREFROM ALL THAT PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE WEST LINE OF THE EAST HALF OF

SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION WHICH BEARS NORTH 00° 13' 20" EAST, 140.00 FEET FROM THE SOUTHWEST CORNER THEREOF;
THENCE NORTH 89° 28' 30" EAST AND PARALLEL WITH THE SOUTH LINE OF THE

EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF
NORTHWEST QUARTER OF SAID SECTION, 192.11 FEET FOR THE POINT OF

BEGINNING, SAID POINT BEING ON THE WEST LINE

OF SAID PARCEL OF LAND SO CONVEYED TO JESSE NOBLES, BY THE HEREINABOVE REFERRED TO DEED;
THENCE NORTH 0° 14' 10' EAST, AND PARALLEL WITH THE EAST LINE OF THE

EAST HALF OF THE SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 528.95 FEET TO A POINT ON THE NORTH LINE THEREOF;
THENCE SOUTH 89° 31' 45" WEST, ALONG THE NORTH LINE OF THE EAST HALF OF

SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 60.00 FEET; THENCE SOUTH 00° 14' 10" WEST AND PARALLEL WITH

THE EAST LINE OF THE EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST

QUARTER OF SAID SECTION,
529.00 FEET TO A POINT WHICH BEARS SOUTH 89° 28' 30" WEST FROM THE POINT OF BEGINNING;
THENCE NORTH 89° 28' 30" EAST AND PARALLEL WITH THE SOUTH LINE OF THE

EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF

NORTHWEST QUARTER OF SAID
SECTION, 60.00 FEET TO THE POINT OF BEGINNING;

Page 32 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 413 of 527 PARCEL 5B: (APN: PORTION 614-100-005)

BEGINNING AT A POINT ON THE SOUTH LINE OF THE EAST HALF OF SOUTHWEST

QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID

SECTION WHICH BEARS
NORTH 89° 28' 30" EAST 192.08 FEET FROM THE SOUTHWEST CORNER THEREOF,

SAID POINT BEING THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF

LAND CONVEYED TO JOSEPH
MCGEE, JR., ET AL., BY DEED RECORDED FEBRUARY 23, 1950, IN BOOK 1149, PAGE 435 OF OFFICIAL RECORDS;
THENCE NORTH 0° 14' 10" EAST AND PARALLEL WITH THE EAST LINE OF THE

EAST HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF
NORTHWEST QUARTER OF SAID SECTION, 668.95 FEET TO THE POINT ON THE NORTH LINE THEREOF;
THENCE SOUTH 89° 31' 45" WEST, ALONG THE NORTH LINE OF THE EAST HALF OF

THE SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 60.00 FEET;
THENCE SOUTH 0° 14' 10" AND PARALLEL WITH THE EAST LINE OF THE EAST

HALF OF SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST

QUARTER OF SAID
SECTION 669.00 FEET TO A POINT ON THE SOUTH LINE THEREOF; THENCE NORTH 89° 28' 30" EAST ALONG THE SOUTH LINE OF THE EAST HALF OF

SOUTHWEST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 60.00 FEET TO THE POINT OF BEGINNING;
PARCEL 6: (APN: 614-100-006)

THAT PORTION OF THE EAST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

Page 33 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 414 of 527

COMMENCING AT THE SOUTHEAST CORNER OF SAID EAST HALF OF THE

SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26;

THENCE NORTH, ALONG THE EAST LINE OF THE SAID EAST HALF OF THE

SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, A DISTANCE OF 233.60 FEET, TO THE POINT OF BEGINNING OF THE PARCEL OF LAND TO BE DESCRIBED; THENCE WEST,

PARALLEL WITH THE SOUTH LINE OF THE SAID EAST HALF OF

THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, A DISTANCE OF 140.00 FEET;

THENCE NORTH, PARALLEL WITH THE EAST LINE OF THE SAID EAST QUARTER

OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, A DISTANCE OF 311.14 FEET;

THENCE EAST, PARALLEL WITH THE SOUTH LINE OF THE SAID EAST HALF OF

THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, A DISTANCE OF 140.00 FEET, TO A POINT ON THE EAST

LINE OF SAID EAST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26;

THENCE SOUTH, ALONG THE SAID EAST LINE OF THE SAID EAST HALF OF THE

SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, A DISTANCE OF 311.14 FEET, TO THE POINT OF BEGINNING.

PARCEL 7: (APN: 614-100-007)
PARCEL 2 AS SHOWN ON PARCEL MAP RECORDED AUGUST 8, 1968 IN BOOK 1, PAGE 34 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

PARCEL 8: (APN: 614-100-008)
PARCEL 1 AS SHOWN ON PARCEL MAP RECORDED AUGUST 8, 1968 IN BOOK 1, PAGE 34 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

Page 34 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 415 of 527 PARCEL 9: (APN: 614-100-009)

THAT PORTION OF THE EAST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7

EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT 79.00 FEET WEST OF THE SOUTHEAST CORNER OF

SAID EAST HALF OF THE SOUTHWEST QUARTER OP THE NORTHWEST QUARTER

OF THE NORTHWEST

QUARTER, SAID POINT BEING THE SOUTHWEST CORNER OF THAT PARCEL

CONVEYED TO CHRISTOPHER HARDIN AND KATHERINE HARDIN, HUSBAND AND

WIFE, BY DEED RECORDED
FEBRUARY 5, 1954, AS INSTRUMENT NO. 6181, OFFICIAL RECORDS; THENCE NORTH 00° 45' 50" EAST, ON THE WEST LINE OF SAID PARCEL CONVEYED TO CHRISTOPHER HARDIN AND WIFE, 78.00 FEET, MORE OR LESS, TO THE SOUTH

LINE OF THE PARCEL CONVEYED TO JESSE NOBLES, A WIDOWER, BY DEED RECORDED AUGUST 9, 1956 AS INSTRUMENT NO. 55641, OFFICIAL RECORDS;

THENCE WESTERLY, PARALLEL WITH THE SOUTH LINE OF SAID SECTION AND ALONG THE SOUTH LINE OF SAID PARCEL CONVEYED TO NOBLES, 61.00 FEET,

MORE OR LESS, TO THE EASTERLY LINE OF THE PARCEL CONVEYED TO THE

HOUSING AUTHORITY OF THE COUNTY OF
RIVERSIDE BY DEED RECORDED DECEMBER 9, 1953, AS INSTRUMENT NO. 6258, OFFICIAL RECORDS; THENCE SOUTH 0° 14' 10" WEST, ALONG SAID EASTERLY LINE 78.00 FEET, MORE OR LESS, TO THE SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER; THENCE
EASTERLY, ALONG SAID SOUTH LINE 61.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

PARCEL 10: (APN: 614-100-010)

THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OP

SECTION
26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

Page 35 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 416 of 527

BEGINNING AT THE SOUTHEAST CORNER OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26;

THENCE WEST ALONG THE SOUTHERLY LINE OF SAID NORTHWEST QUARTER, 664.40 FEET TO THE TRUE POINT OF BEGINNING;
THENCE NORTH 00° 45' 50" EAST, 78.00 FEET;

THENCE WESTERLY AND PARALLEL TO THE SOUTHERLY LINE OF SAID SECTION 26, 79.00 FEET;
THENCE SOUTH 60° 45' 50" WEST, 78.00 FEET MORE OR LESS TO THE SAID SOUTHERLY LINE; THENCE EAST, ALONG SAID SOUTHERLY LINE 79.00 FEET TO THE TRUE POINT OF BEGINNING.

PARCEL 11: (APN: 614-100-011)
THE NORTH HALF OF THE FOLLOWING DESCRIBED PROPERTY:

THAT PORTION OF THE WEST HALF OF THE WEST HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND

MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAID WEST HALF OF THE WEST

HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH, ALONG THE WEST LINE THEREOF, 95.00 FEET TO THE NORTHWEST CORNER OF THAT CERTAIN

PARCEL OF LAND CONVEYED TO ATKIN WHITE, ET AL, BY DEED RECORDED APRIL 20, 1963 IN BOOK 574, PAGE 553, OFFICIAL RECORDS; THENCE EAST ALONG THE NORTH LINE OF SAID PARCEL, 168.00 FEET, MORE OR LESS, TO THE EAST

LINE OF SAID WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE NORTH ALONG THE SAID EAST LINE, 95.00 FEET TO THE NORTH LINE OF

SAID WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE WEST, ALONG SAID NORTH LINE, 168.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 417 of 527

SAID PROPERTY IS ALSO SHOWN ON LICENSED LAND SURVEYOR'S MAP ON FILE IN BOOK 5, PAGE 14 OF RECORDS OF SURVEY, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

PARCEL 12: (APN: 614-100-012)

ALL THAT PORTION OF THE WEST HALF OF THE WEST HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5
SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY

UNITED STATES GOVERNMENT SURVEY, PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAID WEST HALF OF THE WEST

HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION;
THENCE SOUTH ALONG THE WEST LINE THEREOF, 95.00 FEET TO THE

NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO ATKIN WHITE, ET AL, BY DEED RECORDED APRIL 20, 1943 IN BOOK 574, PAGE 553, OFFICIAL RECORDS;
THENCE EAST, ALONG THE NORTH LINE OF SAID PARCEL, 168.00 FEET, MORE OR

LESS TO THE EAST LINE OF SAID WEST HALF OF THE WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION;
THENCE NORTH ALONG SAID EAST LINE 95.00 FEET TO THE NORTH LINE OF SAID

WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE WEST, ALONG SAID LINE (NORTH LINE), 168.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

EXCEPTING THE NORTHERLY ONE-HALF THEREOF. PARCEL 13: (APN: 614-100-013) PARCELS 1 AND 2 OF PARCEL MAP RECORDED IN BOOK 1 PAGE 64 OF PARCEL

MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA
PARCEL 14: (APN: 614-100-021)

A PORTION OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS

Page 37 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 418 of 527

SHOWN BY UNITED STATES GOVERNMENT SURVEY, PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE WEST LINE OF SAID WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST

QUARTER OF SAID SECTION
26, 192 FEET SOUTH OF THE NORTHWEST CORNER THEREOF; THENCE EAST 166

FEET, MORE OR LESS, TO THE NORTH AND SOUTH CENTERLINE OF THE WEST

HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF

SAID SECTION
26; THENCE SOUTH ALONG SAID CENTERLINE 97 FEET; THENCE WEST 166 FEET,

MORE OR LESS, TO SAID WEST LINE OF SAID WEST HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26; THENCE ALONG SAID WEST LINE 97 FEET TO THE POINT OF COMMENCEMENT.

PARCEL 15: (APN: 614-100-022)
THE SOUTH 60.00 FEET OF ALL THAT PORTION OF WEST HALF OF SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN

THE CITY OF INDIO, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN

BY UNITED STATES GOVERNMENT SURVEY, PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE WEST LINE OF SAID WEST HALF OF SOUTHEAST

QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 95.00 FEET SOUTH OF THE NORTHWEST CORNER THEREOF; THENCE EAST, 168.00 FEET, MORE OR LESS, TO THE NORTH AND SOUTH CENTER

LINE OF THE WEST HALF OF SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION 26;
THENCE SOUTH ALONG SAID CENTER LINE, 254.00 FEET;
THENCE WEST, 168.00 FEET; MORE OR LESS, TO THE WEST LINE OF SAID WEST

HALF OF SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION 26;

Page 38 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 419 of 527 THENCE NORTH ALONG SAID WEST LINE, 254.00 FEET TO THE POINT OF BEGINNING.

PARCEL 16: (APN: 614-100-023)

THE NORTHERLY ONE-HALF OF THAT PORTION OF THE WEST HALF OF THE WEST

HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, BY METES AND BOUNDS:

BEGINNING AT A POINT ON THE WESTERLY LINE OP SAID "WEST HALF OF THE

WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 230.00 FEET NORTHERLY FROM THE SOUTHWEST CORNER THEREOF;
THENCE CONTINUING NORTHERLY ON SAID WESTERLY LINE TO A POINT 349.00

FEET SOUTH OF THE NORTHWEST CORNER OF SAID WEST HALF OF THE WEST

HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE EAST, 168.00 FEET, MORE OR

LESS, TO THE EAST LINE OF THE WEST HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH ON SAID EAST LINE TO A POINT 230.00 FEET NORTH OF

SOUTHEAST CORNER OF SAID WEST HALF OF THE WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST
QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE WEST TO THE POINT OF BEGINNING.

PARCEL 17: (APN: 614-100-024)
THE SOUTH HALF OF THE FOLLOWING DESCRIBED PROPERTY:

THAT PORTION OF THE WEST HALF OF THE WEST HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE WESTERLY LINE OF SAID WEST HALF OF THE

WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 230 FEET NORTHERLY FROM THE SOUTHWEST CORNER THEREOF; THENCE CONTINUING NORTHERLY, ON SAID WESTERLY LINE, TO A POINT 349 FEET SOUTH OF THE NORTHWEST CORNER OF

SAID WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE

Page 39 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 420 of 527 NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE EAST 168 FEET, MORE OR LESS, TO THE EAST LINE OF THE WEST HALF

OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH ON SAID EAST LINE, TO A POINT 230 FEET NORTH OF THE SOUTHEAST CORNER OF

SAID WEST HALF OF THE WEST HALF OF THE SOUTHEAST CORNER

OF SAID WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE WEST, TO THE POINT OF BEGINNING.

PARCEL 18: (APN: 614-100-018)

THAT PORTION OF THE WEST HALF OF THE WEST HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND

MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE WEST LINE OF SAID WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF 711E NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 147.00 FEET NORTH OF THE SOUTHWEST CORNER THEREOF;
THENCE NORTH, ALONG SAID WEST LINE, 83.00 FEET; THENCE EAST 168.00 FEET,

MORE OR LESS, TO THE EAST LINE OF SAID WEST HALF OF THE WEST HALF OF

THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH, ALONG SAID EAST LINE, 83.00 FEET; THENCE WEST 168.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

SAID PROPERTY IS ALSO SHOWN ON LICENSED LAND SURVEYOR'S MAP ON FILE IN BOOK 5, PAGE 14 OF RECORDS OF SURVEY, RECORDS OF SAID COUNTY.

PARCEL 19: (APN: 614-100-019)
ALL THAT PORTION OF THE WEST 1/2 OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE NORTHWEST 1/4 OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7

EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF DESCRIBED AS FOLLOWS:

Page 40 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 421 of 527 COMMENCING AT A POINT ON THE SOUTH LINE OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE NORTHWEST 1/4 OF SAID SECTION 26, DISTANT WESTERLY THEREON, 336.00 FEET FROM THE SOUTHEAST CORNER THEREOF;
THENCE NORTHERLY, ALONG THE WEST LINE OF THE WEST 1/2 OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE NORTHWEST 1/4 OF SAID SECTION 26, A DISTANCE OF 25.00 FEET TO THE TRUE POINT OF BEGINNING, SAID

POINT ALSO BEING THE SOUTHWEST CORNER OF THE LAND CONVEYED TO PRECILLA JOHNSON, BY DEED RECORDED AUGUST 29, 1966 AS INSTRUMENT NO. 87273 OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA;

THENCE NORTHERLY, ALONG THE WESTERLY LINE OF SAID LAND CONVEYED TO PRECILLA JOHNSON, 122.00 FEET TO THE NORTHWEST CORNER THEREOF; THENCE NORTH 89° 27' 00" EAST, ALONG THE NORTHERLY LINE OF SAID LAND

CONVEYED TO
PRECILLA JOHNSON, 146.00 FEET OT THE NORTHWEST CORNER OF THE RIGHT-OF-

WAY FOR STREET PURPOSES CONVEYED TO THE CITY OF INDIO BY DEED RECORDED OCTOBER 3, 1955
IN BOOK 1801 PAGE 253 OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE SOUTH 18° 00' 00" WEST, 49.00 FEET;
THENCE SOUTH 00° 12' 45" WEST, 934 FEET TO THE NORTHERLY LINE OF THE LAND
CONVEYED TO EMMA LEE PAIGE, BY DEED RECORDED APRIL 2, 1953 IN BOOK 1457 PAGE 490
OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA;

THENCE WESTERLY, ALONG SAID LAST MENTIONED NORTHERLY LINE OF THE LAND
CONVEYED TO EMMA LEE PAIGE, 49.16 FEET TO THE NORTHWEST CORNER THEREOF; THENCE SOUTHERLY, ALONG THE WESTERLY LINE OF SAID LAND

CONVEYED TO EMMA LEE PAIGE,

66.00 FEET TO A LINE THAT IS PARALLEL WITH THE SOUTHERLY LINE OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE NORTHWEST 1/4 OF SAID SECTION 26,
AND PASSES THROUGH THE TRUE POINT OF BEGINNING; THENCE WESTERLY,

ALONG SAID LAST MENTIONED PARALLEL LINE, TO THE TRUE POINT OF BEGINNING.

Page 41 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 422 of 527 PARCEL 20: (APN: 614-100-020)

THAT PORTION OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHEAST CORNER OF THE WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST

QUARTER OF SAID SECTION
26; THENCE WESTERLY ON THE SOUTHERLY LINE OF SAID WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER, 200.00 FEET TO
THE POINT OF BEGINNING; THENCE NORTH 00° 46' 15" EAST, 91.00 FEET; THENCE WEST,

50.00 FEET; THENCE SOUTH 00° 46' 15" WEST, 91.00 FEET TO THE SOUTHERLY LINE

OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE EASTERLY

ON SAID SOUTHERLY LINE,

50.00 FEET TO THE POINT OF BEGINNING.

PARCEL 21: (APN: 614-101-001)

ALL THAT PORTION OF THE EAST HALF OF WEST HALF OF SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY

UNITED STATES GOVERNMENT SURVEY, PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHEAST CORNER OF SAID WEST HALF OF SOUTHEAST

QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH ALONG THE EAST LINE OF SAID WEST HALF OF

SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION, 47.5 FEET TO THE NORTHEAST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO MALISSIE LASTER, ET AL. BY DEED RECORDED APRIL 13, 1943, IN BOOK 574, PAGE 439 OF OFFICIAL RECORDS; THENCE WEST

ALONG THE

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AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 423 of 527 NORTH LINE OF SAID PARCEL, 168.00 FEET, MORE OR LESS, TO THE WEST LINE OF

SAID EAST HALF OF WEST HALF OF SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION; THENCE NORTH ALONG SAID WEST LINE, 47.5 FEET TO THE NORTH LINE OF SAID EAST HALF OF WEST

HALF OF SOUTHEAST QUARTER OF NORTHWEST QUARTER OF NORTHWEST QUARTER OF SAID SECTION; THENCE EAST ALONG SAID NORTH LINE, 168.00 FEET. MORE OR LESS, TO THE POINT OF BEGINNING.

SAID PROPERTY IS ALSO SHOWN ON LICENSED LAND SURVEYOR'S MAP ON FILE IN BOOK 5, PAGE 14 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS.

PARCEL 22: (APN: 614-101-002)

THAT PORTION OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7
EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT 47.50 FEET SOUTH OF THE NORTHEAST CORNER OF THE

WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH 95.00 FEET;

THENCE WESTERLY AND PARALLEL WITH THE NORTH LINE OF SAID SECTION, 168.00 FEET, MORE OR LESS, TO THE WESTERLY LINE OF THE EAST HALF OF THE

WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE NORTHERLY ON SAID WESTERLY LINE, 95.00 FEET; THENCE EASTERLY 168.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING;
EXCEPTING THEREFROM THAT PORTION LYING WITHIN LARKSPUR STREET.

PARCEL 23: (APN: 614-101-003)

NORTH HALF OF THAT CERTAIN PARCEL OF REAL PROPERTY, PARTICULARLY DESCRIBED AS FOLLOWS;
BEGINNING AT A POINT 142.50 FEET SOUTH FROM THE NORTHEAST CORNER OF

THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, OF THE SAN BERNARDINO BASE AND MERIDIAN; THENCE SOUTH 95.00 FEET, TO A POINT; THENCE WEST ALONG A LINE PARALLEL WITH THE NORTH LINE OF SAID SECTION, A DISTANCE OF 168.00 FEET, THENCE AT A RIGHT ANGLE NORTH 95.00 FEET TO A POINT; THENCE EAST TO THE POINT OF BEGINNING.

Page 43 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 424 of 527 ALSO SHOWN AS PARCEL 1 ON PARCEL NAP RECORDED IN BOOR 1, PAGE 40 OF PARCEL NAPS, RIVERSIDE COUNTY RECORDS.

PARCEL 24: (614-101-004)

THE SOUTH HALF OF THAT CERTAIN PARCEL PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 142.5 FEET SOUTH OF THE NORTHEAST

CORNER OF THE WEST HALF

OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN

BERNARDINO BASE AND
MERIDIAN; THENCE SOUTH 95 FEET TO A POINT; THENCE WEST ALONG A LINE PARALLEL WITH THE NORTH LINE OF THE SAID SECTION A DISTANCE OF 168 FEET; THENCE NORTH 95 FEET TO A POINT; THENCE EAST TO THE POINT OF BEGINNING.

PARCEL 25: (APN: 614-101-005)
THE NORTH HALF OF THE FOLLOWING DESCRIBED PROPERTY:

BEGINNING AT A POINT ON THE EAST LINE OF THE WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 5
SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, 285.00 FEET SOUTH OF THE NORTHEAST CORNER THEREOF;
THENCE NORTH ON SAID EAST LINE, 47.50 FEET;
THENCE WEST, 168.00 FEET, MORE OR LESS, TO THE EAST LINE OF THE WEST

HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH, ON SAID EAST LINE, 47.50 FEET; THENCE EAST 168.00 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

Page 44 of 80 ends

AGENDA ITEM #9.16
Second Reading of Ordinance No. 1783 approving a Development Agreement b... Page 425 of 527

EXCEPTING THEREFROM THAT PORTION THEREOF CONVEYED TO THE CITY OF INDIO, BY DEED RECORDED JANUARY 7, 1971, AS INSTRUMENT NO, 1478, OF OFFICIAL RECORDS.

PARCEL 26: (APN: 614-101-006)

ALL THAT PORTION OF THE EAST HALF OF THE WEST HALF OF THE SOUTHEAST

QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 3
SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE EAST LINE OF THE WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION, 332.50

FEET SOUTH OF THE NORTHEAST CORNER THEREOF, SAID POINT BEING THE

NORTHEAST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO FLETCHER MAKES AND CLARA V. MAKES, HUSBAND AND WIFE, BY DEED RECORDED APRIL 13, 1943 IN BOOK 574, PAGE 442 OF OFFICIAL RECORDS; THENCE WEST ALONG THE NORTH LINE OF SAID PARCEL, 168.00 FEET, MORE OR

LESS, TO THE WEST LINE OF SAID EAST HALF OF THE WEST HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION;
THENCE NORTH ALONG SAID WEST LINE 71.25 FEET MORE OR LESS TO THE

SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO LILLY CHAPPELL, BY DEED RECORDED MAY 13, 1953 AS INSTRUMENT NO. 23479, OFFICIAL RECORDS;
THENCE EAST ALONG THE SOUTHERLY LINE OF SAID PARCEL 168.00 FEET MORE OR LESS TO THE SOUTHEAST CORNER OF SAID PARCEL;
THENCE SOUTHERLY 71.25 FEET TO THE NORTHEAST CORNER OF THAT CERTAIN

PARCEL OF
LAND CONVEYED TO FLETCHER MAKES AND CLARA V. MAKES, BY DEED RECORDED APRIL 13,
1943 IN BOOK 574, PAGE 442, OFFICIAL RECORDS, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING.

PARCEL 27: (APN: 614-101-007)

Page 45 of 80 ends

Indio City CouncilOctober 5, 2022

Indio City Council
October 5, 2022