Agenda packet — Lake Elsinore City Council, July 8, 2025 (part 1 of 8)

City of Lake Elsinore
City Council Meeting
Agenda – Final
Brian Tisdale, Mayor
Robert E. Magee, Mayor Pro Tem
Steve Manos, Council Member
Timothy J. Sheridan, Council Member
Natasha Johnson, Council Member
Jason Simpson, City Manager
Meeting Date:

July 08, 2025
Closed Session: NONE
Public Session: 7:00 PM
Cultural Center
183 N. Main Street
Lake Elsinore, CA 92530
The City of Lake Elsinore appreciates your attendance. Citizens’ comments, input, and interests provide the City Council with valuable information regarding issues that impact the community.

Meeting Information
Meetings are held on the 2nd and 4th Tuesday of every month, and the agenda is posted 72 hours prior to each meeting outside of City Hall. The agenda and related reports are also available on the City’s website at www.Lake-Elsinore.org. Meetings are conducted in person, televised live on Spectrum Cable Station Channel 29 and Frontier Cable Channel 31, and streamed online at http://www.lakeelsinore.org/city-government/city-council/webcast-videos. If you are attending the meeting in person, please park in the lot across the street from the Cultural Center to help us minimize the impact of meetings on the Downtown Business District. Thank you for your cooperation.

Public Comments – Addressing the City Council
Any person wishing to address the City Council on items not included on the Agenda may do so during Public Comments for 1 minute at the beginning of the meeting or during Public Comments for 3 minutes at the end of the meeting. We respectfully ask those interested in addressing the City Council to either submit a request to speak online at http://www.lake-elsinore.org/city-government/agendasand-minutes or complete and present a “Request to Speak” form to the City Clerk at the meeting. This Form is available on the table located inside the Council Chamber. Members of the public may also provide comments on Agenda items by noting the item on the “Request to Speak” form and will be called to address the City Council when the item is considered by the City Council during the meeting.

Written Communications
If you would like to submit written public comments, you may do so prior to the meeting either by entering them online at the link above or emailing them to the City Clerk at calvarez@lakeelsinore.org. Any written communications or additional documents distributed to the City Council within 72 hours of the meeting will also be made available to the public in accordance with Government Code Section 54957.5.

Accessibility Accommodations
In compliance with the Americans with Disabilities Act, any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the City Clerk’s Department at (951) 674-3124, Option 6, at least 48 hours before the meeting to make reasonable arrangements to ensure accessibility.

City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 2
Dream Extreme 2040 is the City’s FIRST long-term strategic plan to assist the City in its pursuit of achieving its vision. The plan is a living document that will be updated regularly and serve as the framework to guide all decision-making over the next 20 years by identifying key Anchors, Aspirations, and Strategies.

Our Vision is that the City of Lake Elsinore will be the ultimate destination where all can live, work, play, build futures, and fulfill dreams.

The Anchors are the City of Lake Elsinore’s unique community assets and opportunities: The Lake, Downtown, and Action and Adventure.
• The Lake: Lake Elsinore is a vital community asset. Protecting, enhancing, and celebrating the Lake is critical to the health of the City and community. • Downtown: Enhancing and creating the highest-quality downtown experience will serve to establish a strong sense of place that will shape the City’s identity as a place where residents and visitors can live, work, and play.
• Action and Adventure: Lake Elsinore’s programs, facilities, and natural environment will define the City as a destination for action and adventure for both visitors and residents.

Our Aspirations are broad, long-term goals that encapsulate what we hope to achieve in Lake Elsinore’s future. The City has identified 4 key aspirations to work towards.

Items on the agenda that align with Aspirations from the Dream Extreme 2040 Plan are noted by the Aspiration’s icon to highlight City Council actions that help the City pursue its goals.

To read the plan and learn more about its implementation in the City, visit www.Lake-Elsinore.org/DreamExtreme2040.

City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 3
CALL TO ORDER - 7:00 P.M.

The Regular Meetings of the City Council and the Successor Agency will be called to order.

PLEDGE OF ALLEGIANCE

ROLL CALL

PRESENTATIONS/CEREMONIALS
1) Business in Action Monthly Spotlight – Keller Williams Realty (KW) The Lakes Recognize Keller Williams Realty (KW) The Lakes as the City of Lake Elsinore’s Business in Action Monthly Spotlight for June 2025.
2) Riverside County Sheriff's Office 2025 Second Quarter Statistical Update PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE
(Please read & complete a Request to Address the City Council/Successor Agency form prior to the start of the meeting and turn it in to the City Clerk/Clerk. The Mayor/Chair or City Clerk/Clerk will call on you to speak.)

CITY COUNCIL CONSENT CALENDAR
3) Minutes of the Regular City Council Meeting of June 24, 2025 Approve the Minutes.
4) Acceptance of a Donation of Undeveloped Real Property (APN 373-061-010) Approve and authorize the City Manager to Execute a Donation Agreement and Joint Escrow Instructions and such other ancillary documents as may be necessary to complete the donation of approximately 0.14 acres of undeveloped property (APN 373-061-010) in such final form as approved by the City Attorney. 5) Second Reading of an Ordinance Approving Amendments to Title 17 (Zoning), Chapter 17.156 of the Lake Elsinore Municipal Code Related to Cannabis Uses Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENTS TO TITLE 17, AMENDING AND RESTATING CHAPTER 17.156 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING CANNABIS USES. 6) Second Reading of Ordinances Amending Development Agreements for Six Existing Cannabis Businesses to Revise the Community Benefit Fees

1. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT (DA-2024-03) FOR MODERN LEAF CULTURE (DBA MODERN LEAF AND EMBR) LOCATED AT 31877 CORYDON ROAD, UNITS 120 AND 150 (APN: 370-051-016 AND 370-051-030);
City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 4

2. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-01) FOR ALBA
SYSTEMS LOCATED AT 31879 CORYDON ROAD, UNIT 150 (APN: 370-051- 025);

3. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-02) FOR LAKE
ELSINORE INVESTMENT CORP (DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET (APN: 377-220-021);

4. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-04) FOR GREEN
ORIGINS LE (DBA THE SYNDICATE 1) LOCATED AT 504 CENTRAL AVENUE, BUILDING O (APN: 377-420-002);

5. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-05) FOR IE LICENSING (DBA THE SYNDICATE 2) LOCATED AT 31885 CORYDON ROAD, UNITS 130, 140, AND 150 (APN: 370-031-017, 370-031-018 AND 370-031-019); and

6. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-06) FOR THE HEALING TREE LOCATED AT 480 3RD STREET (APN: 377-140-033).
7) Citywide Landscaping and Street Lighting District and the Landscaping and Street Lighting Maintenance District No. 1 for Fiscal Year 2025-26

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT AND

PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT FOR FISCAL YEAR 2025-26 FOR THE CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT (LLMD); and

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT AND

PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT FOR FISCAL YEAR 2025-26 FOR THE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO.1.
8) Fiscal Year 2025-26 Special Taxes for Community Facilities Districts and Assessment District No. 2021-1 (Canyon Hills)

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF

SPECIAL TAXES WITHIN EACH COMMUNITY FACILITIES DISTRICT LISTED FOR FISCAL YEAR 2025-26; and
City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 5

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN REASSESSMENT DISTRICT NO. 2021-1 (CANYON HILLS) FOR FISCAL YEAR 2025-26.
9) Notice of Decision - Planning Commission Approval of Planning Application No. 2021-34 (Evergreen/Dutch Bros) for a Commercial Design Review and Amendment to Conditional Use Permit No. 2021-12 for a New 980 Sq. Ft. Drivethrough Dutch Bros Coffee Shop on an approximately 1.13-Acre Site Located South of Central Avenue (SR-74) and east of Cambern Avenue within the Evergreen Commercial Development
Receive and file the Notice of Decision for Planning Application No. 2021-34 approved by the Planning Commission on June 17, 2025.
10) Change Order No.1 with Elsinore Valley Municipal Water District to Provide Construction Inspection Services for the Camino Del Norte Sewer Extension Project. EVMWD W.O. 2025-00164-INS
Approve and authorize the City Manager to execute Change Order No. 1 with Elsinore Valley Municipal Water District for $76,240.00 to provide Inspection Construction Services for the Camino Del Norte Sewer Extension Project. 11) Change Order No. 1 to the Agreement with Aneen Construction Inc. to Provide Public Works Construction Services for the Camino Del Norte Sewer Extension Project (Project No. Z30016)
Approve and authorize the City Manager to execute Change Order No. 1 to the Agreement with Aneen Construction Inc. in the amount of for $432,246.00 for Public Works Construction Services for the Camino Del Norte Sewer Extension Improvements Project in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $43,224.60 for uncertainties and adjustments. 12) Agreement with Dost Engineering for Design of the SB 821 Spring Street Pedestrian Facilities Program Project in the Amount of $80,100 Approve and authorize the City Manager to execute a Professional Services Agreement with Dost Engineering for the design of the SB-821 Spring Street Pedestrian Facilities Program Project in the amount of $80,100 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $8,010.00 for uncertainties and adjustments.
13) Amendment No. 3 to the Agreement with Rightway Site Services, Inc. for Citywide Portable Sanitation Services Agreement
Approve and authorize the City Manager to execute Amendment No. 3 to the Agreement with Rightway Site Services, Inc. for Citywide portable sanitation services and increase compensation by an additional $4,897.11 for a total amount not to exceed $109,897.11 in such final form as approved by the City Attorney.

City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 6
14) Amendment No. 4 to the Agreement with Excel Landscape, Inc. for Monthly Landscape Services for Citywide Facilities and Streetscapes Approve and authorize the City Manager to execute Amendment No. 4 to the Agreement with Excel Landscape, Inc. to extend the Term of the Original Agreement, as amended on a month-to-month basis for three (3) additional months with Excel Landscape, Inc., in an amount not to exceed $31,680 per month and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $3,168.00 for unforeseen additional work in Fiscal Year 2025-26 beginning July 1, 2025. 15) Amendment No. 5 to the Agreement with RP Landscape & Irrigation, Inc. for Monthly Landscape Services for Citywide Parks
Approve and authorize the City Manager to execute Amendment No. 5 to extend the Term of the Original Agreement, as amended on a month-to-month basis for three (3) additional months with RP Landscape & Irrigation, Inc. in an amount not to exceed $74,530.35 per month and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $7,453.00 for unforeseen additional work, in FY 2025-26, beginning July 1, 2025.
16) Annual On-Call Services Agreements for Citywide Portable Sanitation Services Approve and authorize the City Manager to execute On-Call Services Agreements with Rightway Site Services, Inc. in the amount of $120,000, and Reliable Rentals, Inc. in the amount of $34,800 for Citywide Portable Sanitation Services in such final form as approved by the City Attorney.

SUCCESSOR AGENCY CONSENT CALENDAR
17) Minutes of the Regular Successor Agency Meeting of June 24, 2025 Approve the Minutes.
18) Agreement with Hemet Fence for the Removal/Replacement of Iron Fencing at Lake Elsinore Diamond Stadium
Approve and Authorize the Executive Director to execute Agreement with Hemet Fence for the removal/replacement of iron fencing at Lake Elsinore Diamond Stadium in an amount not to exceed $45,000.00 in such final form as approved by the Agency Attorney authorize the Executive Director to execute change orders not to exceed the 10% contingency amount of $4,500 for unanticipated costs.

PUBLIC HEARINGS
19) Approve Placing Delinquent Weed Abatement Charges on the Tax Roll Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, CONFIRMING AN ITEMIZED WRITTEN REPORT SHOWING COST

OF WEED ABATEMENT, CONFIRMING THE ITEMIZED WRITTEN REPORT FOR EACH SEPARATE PARCEL OF LAND REQUIRED BY SECTION 39574 OF THE

GOVERNMENT CODE OF THE STATE OF CALIFORNIA, AND PROVIDING THAT

THE COSTS THEREOF ON EACH PARCEL OF LAND SHALL CONSTITUTE A

SPECIAL ASSESSMENT LIEN AGAINST SAID PARCELS OF LAND PURSUANT TO SECTION 39574 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA,

AND PROVIDING FOR THE FILING OF SAID ASSESSMENTS AS PROVIDED IN SAID GOVERNMENT CODE.

City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 7
20) Placement of Delinquent Refuse Bills on the Fiscal Year 2025-26 Tax Roll Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, AFFIRMING THE REPORT OF DELINQUENT RESIDENTIAL REFUSE FEES AND DIRECTING THEIR COLLECTION ON THE PROPERTY TAX ROLLS. 21) Public Hearing and Election for Annexation Proceedings for Annexation No. 15 Into Community Facilities District No. 2015-1 (Safety Services)

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY

SERVICES), ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES), AND CALLING ELECTIONS THEREIN; and

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) CERTIFYING THE RESULTS OF THE JULY 8, 2025, ANNEXATION AND SPECIAL TAX ELECTIONS.
22) Public Hearing and Election for Annexation Proceedings for Annexation No. 23 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 34249 Canyon Hills Heights

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN

THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 23);

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, DECLARING ELECTION RESULTS FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 23); and

3. Introduce AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN

ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.
23) Public Hearing and Election for Annexation Proceedings for Annexation No. 25 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 33725 & 25475 (Tuscany Valley & Tuscany Crest)

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN

THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 25); City Council Agenda - Final July 08, 2025
City of Lake Elsinore Page 8

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, DECLARING ELECTION RESULTS FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 25); and

3. Introduce by title only and waive further reading an ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF

LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.
24) Placement of Delinquent Nuisance Abatement Charges on the Tax Roll Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS

AGAINST PARCELS OF LAND WITHIN THE PUBLIC NUISANCE ABATEMENT COSTS FOR THE FISCAL YEAR 2025-26.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
(Please read & complete a Request to Address the City Council/Successor Agency form prior to the start of the meeting and turn it in to the City Clerk/Clerk. The Mayor/Chair or City Clerk/Clerk will call on you to speak.)

CITY MANAGER COMMENTS

CITY ATTORNEY COMMENTS

CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED

ADJOURNMENT
The Lake Elsinore City Council will adjourn to the next Regular meeting on Tuesday, July 22, 2025 in the Cultural Center located at 183 N. Main Street. Closed Session will commence at 5:00 p.m. or such later time as noticed on the Agenda, and the regular Open Session business meeting will commence at 7:00 p.m.

AFFIDAVIT OF POSTING
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, do hereby affirm that a copy of the foregoing agenda was posted at City Hall at 5:00 p.m. on Thursday, July 3, 2025. _________________________
Candice Alvarez, MMC
City Clerk
1) Business in Action Monthly Spotlight – Keller Williams Realty (KW) The Lakes Recognize Keller Williams Realty (KW) The Lakes as the City of Lake Elsinore’s Business in Action Monthly Spotlight for June 2025.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Gina Gonzalez, Director of Economic Development and Legislative Affairs Date: July 8, 2025
Subject: Business in Action Monthly Spotlight – Keller Williams Realty (KW) The Lakes
Recommendation
Recognize Keller Williams Realty ( KW) The Lakes as the City of Lake Elsinore’s Business in Action Monthly Spotlight for June 2025.

Background
The City of Lake Elsinore’s Business in Action Monthly Spotlight highlights outstanding local businesses that contribute to the community’ s economic growth, exceptional customer service, and community involvement. For the month of June 2025, the City is proud to recognize Keller Williams Realty (KW) The Lakes for its dedication to dedication to high quality residential and commercial real estate services in the City of Lake Elsinore and its active engagement in supporting local events and initiatives and giving back to the community.

Discussion
Keller Williams Realty (KW) The Lakes, a locally owned business, has been serving the Lake Elsinore community with passion and excellence for seven years. Knownfor providing high-quality residential and commercial real estate services and for building careers that emphasize a worklife balance, KW The Lakes has established a loyal customer base and a reputation for exceptional customer service, responsiveness, technology, and community engagement.

Beyond its core services, KW The Lakes is deeply committed to the local community. The business frequently hosts and sponsors events, trainings, social gatherings, and activities, and gives back to local residents. Their commitment to high-quality service and giving back exemplifies the values of a thriving local business.

June Monthly Spotlight

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By recognizing KW The Lakes as the Business in Action Monthly Spotlight, the City aims to celebrate their contributions and encourage other businesses tofollow their example insupporting and enhancing the Lake Elsinore community.

Fiscal Impact
There is no fiscal impact associated with this recognition.

Attachments
None
Economic Development
2) Riverside County Sheriff's Office 2025 Second Quarter Statistical Update

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REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: July 8, 2025
Subject: Riverside County Sheriff's Office 2025 Second Quarter Statistical Update RSO
3) Minutes of the Regular City Council Meeting of June 24, 2025 Approve the Minutes.

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Attachments
Attachment 1 - Draft Minutes
City Clerk's Office
City of Lake Elsinore
City Council Meeting
Minutes – Draft
Brian Tisdale, Mayor
Robert E. Magee, Mayor Pro Tem
Steve Manos, Council Member
Timothy J. Sheridan, Council Member
Natasha Johnson, Council Member
Jason Simpson, City Manager
Meeting Date:

June 24, 2025
Closed Session: 5:30 PM
Public Session: 7:00 PM
Cultural Center
183 N. Main Street
Lake Elsinore, CA 92530

CALL TO ORDER
The Regular Meeting of the City Council was called to order at 5:30 p.m.

ROLL CALL

Present: 5 - Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale

Absent: 0 - None

PUBLIC COMMENTS FOR CLOSED SESSION ITEMS
There were no speakers.

CLOSED SESSION - 5:30 P.M.

A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Gov’t Code Section 54956. 8)
Property: APN 374-173-004
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Berthanna Taylor Under negotiation: Price and terms of payment
B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Gov’t Code Section 54956. 8)
Property: APN 373-151-014
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Letticia Cervantes Under negotiation: Price and terms of payment
City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 2
C. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Gov’t Code Section 54956. 8)
Property: APN 389-020-056 ( portion)
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Vista Charter Public Schools Under negotiation: Price and terms of payment

RECONVENE/CALL TO ORDER
The Regular Meeting of the City Council reconvened and the Regular Meeting of the Successor Agency was called to order at 7:00 p.m.

PLEDGE OF ALLEGIANCE
Council Member Johnson led the Pledge of Allegiance.

ROLL CALL

Present: 5 - Council/ Agency Members Manos, Sheridan, and Johnson; Mayor Pro Tem/Vice Chair Magee; and Mayor/ Chair Tisdale

Absent: 0 - None

CLOSED SESSION REPORT
Assistant City Attorney Mann reported that all three items were discussed; however, no reportable action was taken.

PRESENTATIONS/CEREMONIALS
1) Parks & Recreation Month Proclamation 2025
Present a Proclamation to the City of Lake Elsinore Community Services Department proclaiming the month of July 2025 as “Park and Recreation Month” in the City of Lake Elsinore.

Mayor Tisdale presented the Proclamation to Community Services Director Skinner.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE
There were no speakers.

CITY COUNCIL CONSENT CALENDAR
A motion was made by Council Member Manos, seconded by Council Member Johnson to approve the City Council Consent Calendar. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None
City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 3
2) Minutes of the Regular City Council Meeting of June 10, 2025 Approve the Minutes.

This item was approved on the City Council Consent Calendar. 3) CC Warrant Report Dated May 26, 2025 to June 01, 2025 Receive and File.

This item was approved on the City Council Consent Calendar. 4) CC Warrant Report Dated June 02, 2025 to June 08, 2025 Receive and file.

This item was approved on the City Council Consent Calendar. 5) CC Warrant Report Dated June 09, 2025 to June 15, 2025 Receive and file.

This item was approved on the City Council Consent Calendar. 6) CC Investment Report for May 2025
Receive and file the Investment Report for May 2025.

This item was approved on the City Council Consent Calendar. 7) Annual Adoption of Investment Policy
Approve the 2025 Investment Policy.

This item was approved on the City Council Consent Calendar. 8) Annexation No. 24 Into Community Facilities District No. 2015-2 (Maintenance Services) for PM 38195 & 38281 ( Evergreen)
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF

THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED ( ANNEXATION NO. 24) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 4
9) Annexation No. 26 Into Community Facilities District No. 2015-2 (Maintenance Services) for APN Nos. 377-380-003 & 377-100-003 (Cambern Apartments) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015- 2 ( MAINTENANCE SERVICES) OF

THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED ( ANNEXATION NO. 26) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.

This item was approved on the City Council Consent Calendar. 10) Intention to Establish Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)

1. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE ( CANYON HILLS

HEIGHTS), TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE

COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS

2. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF LAKE ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $ 14,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025- 1 OF THE CITY OF LAKE ELSINORE CANYON HILLS HEIGHTS).

This item was approved on the City Council Consent Calendar. 11) Formation of Community Facilities District No. 2025- 2 ( Cambern Apartments Services) of the City of Lake Elsinore
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025- 2 OF THE CITY OF LAKE ELSINORE ( CAMBERN

APARTMENTS SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON

PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES.

This item was approved on the City Council Consent Calendar. 12) Second Reading of an Ordinance Amending Section 3.08.065 of the Lake Elsinore Municipal Code, Increasing the Amount of the City Manager's Contract Authority to $50,000
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION

3.08.065 OF THE LAKE ELSINORE MUNICIPAL CODE, INCREASING THE AMOUNT OF THE CITY MANAGER’ S CONTRACT AUTHORITY TO $ 50,000.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 5
13) Agreement with City Net for Street Outreach Services Approve and authorize the City Manager to execute a Professional Services Agreement with City Net for Street Outreach Services in an annual amount not to exceed $ 291,181 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of 29,118.10 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 14) Change Order No. 3 to the Public Works Construction Agreement with SAS Construction, Inc. for Concrete Footings and Foundation, Bid Set A, on the New City Hall Project (CIP Project No. Z20006)
Approve and authorize the City Manager to execute Change Order No. 3 to the Public Works Construction Agreement with SAS Construction, Inc. for the Concrete Footings and Foundation, Bid Set ' A,' on the New City Hall Project ( CIP Project No. Z20006) in an amount not to exceed $ 219,500.00 in such final form as approved by the City Attorney, authorize the City Clerk to record the notice of completion once the entire scope of work is complete, and return withheld retention to the contractor.

This item was approved on the City Council Consent Calendar. 15) Agreement with SAS Construction for the Interior, Exterior Wall, and Ceiling Drywall and Insulation, Bid Set “ H”, on the New City Hall Project (CIP Project No.

Z20006)
Approve and authorize the City Manager to execute a Public Works Construction Agreement with SAS Construction for an amount not to exceed $ 1,070,000.00 in such final form as approved by the City Attorney, authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $ 107,000.00 for construction uncertainties and adjustments; and authorize the City Clerk to record the notice of completion once the entire scope of work is complete and return withheld retention to the contractor.

This item was approved on the City Council Consent Calendar. 16) Purchase of a Back- up Generator from Quinn Caterpillar for the New City Hall Project (CIP No. Z20006)
Approve and authorize the City Manager to execute a purchase order with Quinn Caterpillar for a back-up generator for the new City Hall Project ( CIP Project # Z20006) in an amount not to exceed $ 113,545.45.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 6
17) Agreement with Pye-Barker for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No. Z20006) Approve and authorize the City Manager to execute a Public Works Construction Agreement with Pye-Barker in an amount not to exceed $ 156,379.20 for the Design and Installation of the Fire Alarm System in the City Hall Building Project ( CIP Project No. Z20006) in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of 15,637.00 for construction uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 18) Contractor Services Agreement with Azteca Cleaning Services, LLC for On-Call Cleaning Services
Approve and authorize the City Manager to execute a contract with Azteca Cleaning Services, LLC in an amount not to exceed $ 300,000 for on-call cleaning services in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $30,000 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 19) Agreement with Lorena Hancock for Recreation Classes Approve and authorize the City Manager to execute an Independent Contractor Agreement with Lorena Hancock in an amount not to exceed $ 50,000 for recreation classes in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $ 5,000 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 20) Agreement with National Junior Basketball League for Basketball League, Practices, Games, and Instruction
Approve and authorize the City Manager to execute an Independent Contractor Agreement with National Junior Basketball League in an amount not to exceed 75,000 for basketball league, practices, games, and instruction in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $7,500 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 21) Parcel Map No. 38614
Approve Parcel Map No. 38614 subject to the City Engineer’ s acceptance as being true and correct, authorize the City Clerk to sign the map and arrange for the recordation, and approve and authorize the City Manager to execute the Construction of Improvements Agreement with Lake Elsinore Plaza 2.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 7
22) Cooperative Agreement with the State of California Department of Transportation for the I-15 Nichols Road Interchange
Approve and authorize the City Manager to execute a Cooperative Agreement with the State of California Department of Transportation ( Caltrans) for the I-15 Nichols Road Interchange Improvement Project in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar. 23) Professional Services Agreement with Fehr & Peers to Provide Environmental Clearance, Final Design ( PS&E) and Construction Support for HSIP Cycle 12 Citywide Signalized Intersections Systemic Safety Improvements Project Approve and authorize the City Manager to execute a Professional Services Agreement with Fehr & Peers for Environmental Clearance, Final Design, and Construction Support services for the HSIP Cycle 12 Citywide Signalized Intersections Systemic Safety Improvements Project in the amount of $ 82,100 in such final form as approved by the City Attorney and authorize City Manager to execute change orders not to exceed a 10% contingency for unanticipated costs.

This item was approved on the City Council Consent Calendar. 24) KB Home Coastal TR 25475 & 33725 Tuscany Crest Haul Route Approve a request for the haul route, including hours of operation for the Tuscany Crest project, and authorize the Mayor and City Manager to execute the haul route construction agreement.

This item was approved on the City Council Consent Calendar. 25) Amendment No. 1 to the Professional Services Agreement with Lochner formerly KOA Corporation) for the HSIP Cycle 11 Project Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Lochner ( formerly KOA Corporation) in the amount of $ 125,049 plus a 10% contingency for additional services to complete pedestrian ramp design for the HSIP Cycle 11 Project for a total contract amount not to exceed $ 205,038, in such final form as approved by City Attorney.

This item was approved on the City Council Consent Calendar. 26) Purchase of One (1) Diesel Elgin Broom Badger Sweeper Approve and authorize the City Manager to execute a Purchase Order with Haaker Equipment in an amount not to exceed $ 358,849.99 for One ( 1) Diesel Elgin Broom Badger Sweeper in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of 35,884.99 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 8
27) Approval of Fiscal Year 2025-26 Rates with the County of Riverside for Maintenance of City Traffic Signals and Safety Lighting Approve the Fiscal Year 2025-26 rates for the County of Riverside Transportation Department ( County) Agreement for Traffic Signal and associated hardware maintenance, emergency call-out services, and inventory of City traffic signal equipment maintained by the County.

This item was approved on the City Council Consent Calendar. 28) On-Call Agreement with CM Wash Equipment for Maintenance of Wash Stations and Equipment for Citywide Facilities
Approve and authorize the City Manager to execute a Contractor Services Agreement with CM Wash Equipment for the maintenance of wash stations and equipment for Citywide Facilities in an amount not to exceed $ 60,000.00 annually in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency of $6,000.00 for unanticipated costs.

This item was approved on the City Council Consent Calendar. 29) Agreement with Blue Triton Brands, Inc. (DBA ReadyRefresh) for Citywide Water Delivery Services
Approve and authorize the City Manager to execute an Agreement with Triton Brands, Inc. ( DBA ReadyRefresh) for water delivery services in an amount not to exceed 11,000.00 per Fiscal Year in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency of $1,100.00 for unanticipated costs.

This item was approved on the City Council Consent Calendar.

SUCCESSOR AGENCY CONSENT CALENDAR
A motion was made by Agency Member Johnson, seconded by Agency Member Manos to approve the Successor Agency Consent Calendar. The motion carried by the following vote:

Aye: 5 Agency Members Manos, Sheridan, and Johnson; Vice Chair Magee; and Chair Tisdale
Nay: 0 None
30) Minutes of the Regular Successor Agency Meeting of June 10, 2025 Approve the Minutes.

This item was approved on the Successor Agency Consent Calendar. 31) SA Investment Report for May 2025
Receive and file the Investment Report for May 2025.

This item was approved on the Successor Agency Consent Calendar.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 9
32) SA Warrant Report Dated May 26, 2025 to June 01, 2025 Receive and file.

This item was approved on the Successor Agency Consent Calendar. 33) SA Warrant Report Dated June 02, 2025 to June 08, 2025 Receive and file.

This item was approved on the Successor Agency Consent Calendar. 34) SA Warrant Report Dated June 09, 2025 to June 15, 2025 Receive and file.

This item was approved on the Successor Agency Consent Calendar.

PUBLIC HEARINGS
35) Preliminary Capital Improvement Plan (CIP) Budget for Fiscal Years 2025-26 to 2029-30
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2025- 26 TO 2029- 30.

The Public Hearing was opened at 7:13 p.m.

Assistant Administrative Services Director Rafferty presented the staff report.

There were no speakers.

The Public Hearing was closed at 7:22 p.m.

A motion was made by Council Member Johnson, seconded by Council Member Manos to adopt the Resolution. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None
36) Amendment to Title 17 (Zoning), Chapter 17.156 of the Lake Elsinore Municipal Code Related to Cannabis Uses

1. Find the proposed amendment to the Lake Elsinore Municipal Code Exempt from the California Environmental Quality Act ( CEQA), pursuant to CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3); and

2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENTS TO TITLE 17, AMENDING AND RESTATING CHAPTER 17.156 OF THE LAKE ELSINORE MUNCIPAL CODE REGARDING CANNABIS USES.

City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 10
The Public Hearing was opened at 7:23 p.m.

Community Development Director Abraham presented the staff report.

There were no speakers.

The Public Hearing was closed at 7:29 p.m.

A motion was made by Council Member Johnson, seconded by Council Member Sheridan to approve Recommendation No. 1 and introduce the Ordinance. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None
37) Request to Amend Development Agreements for Six Existing Cannabis Businesses to Revise the Community Benefit Fees

1. Find that the proposed projects are exempt from the California Environmental Quality Act ( CEQA) pursuant to CEQA Guidelines Section 15301 ( Existing Facilities);

2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT ( DA-2024- 03) FOR MODERN LEAF CULTURE DBA MODERN LEAF AND EMBR) LOCATED AT 31877 CORYDON ROAD, UNITS 120 AND 150 (APN: 370-051-016 AND 370-051-030);

3. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-01) FOR ALBA
SYSTEMS LOCATED AT 31879 CORYDON ROAD, UNIT 150 ( APN: 370-051- 025);

4. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025- 02) FOR LE
INVESTMENT GROUP ( DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET ( APN: 377-220-021);

5. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025- 04) FOR GREEN ORIGINS LE ( DBA THE SYNDICATE 1) LOCATED AT 504 CENTRAL AVENUE, BUILDING O (APN: 377-420-002);

6. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025- 05) FOR IE LICENSING DBA THE SYNDICATE 2) LOCATED AT 31885 CORYDON ROAD, UNITS 130, 140, AND 150 (APN: 370-031-017, 370-031-018 AND 370-031-019); and City Council Minutes - Draft June 24, 2025
City of Lake Elsinore Page 11

7. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025- 06) FOR THE
HEALING TREE LOCATED AT 480 3RD STREET ( APN: 377-140-033).

The Public Hearing was opened at 7:31 p.m.

Principal Planner Huynh presented the staff report.

There were no speakers.

The Public Hearing was closed at 7:35 p.m.

A motion was made by Council Member Sheridan, seconded by Council Member Johnson to approve Recommendation No. 1 and introduce all six Ordinances.

The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

BUSINESS ITEM
38) Adoption of the FY 2025-26 Annual Operating Budget, Schedule of Authorized Positions, and the Gann Limit

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING THE FY 2025- 26 ANNUAL OPERATING

BUDGET AND ESTABLISHING THE CONTROLS ON CHANGES IN THE
APPROPRIATIONS;

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, REVISING THE SCHEDULE OF AUTHORIZED POSITIONS; and

3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS GANN LIMIT FOR FY 2025- 26 AND SELECTING THE POPULATION AND INFLATION FACTOR ACCORDINGLY.

Assistant Administrative Services Director Rafferty presented the staff report.

There were no speakers.

A motion was made by Council Member Johnson, seconded by Council Member Manos to adopt all three Resolutions. The motion carried by the following vote:

Aye: 4 Council Members Manos, Sheridan, and Johnson; and Mayor Tisdale Nay: 1 Mayor Pro Tem Magee

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - THREE MINUTES
There were no speakers.

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City of Lake Elsinore Page 12

CITY ATTORNEY COMMENTS
Assistant City Attorney Mann had no comments.

CITY MANAGER'S COMMENTS
City Manager Simpson recognized and thanked Assistant Administrative Services Director Rafferty and Finance Staff for their work on the budgets that were adopted.

CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED
Council Member Sheridan shared that youth may ride Riverside Transit Agency buses for free through December 31, 2026; shared that Melissa Howlett, the Governor’ s Regional Business Development Specialist came to the City on June 19, 2025; reported on the Town Hall Fire Safety Discussion that was held on June 19, 2025 at the Summit Park Recreation Center; spoke on his attendance at the Lake Elsinore NAACP Juneteenth Celebration at Diamond Stadium; advised that the 2025 Lawn & Garden Equipment Exchange that was scheduled for Saturday, June 28, 2025 has been canceled; and invited the community to take advantage of the Riverside University Health System’ s free vaccine clinic that will be held on Friday, June 27, 2025 from 11:00 a.m. – 3:00 p.m. at the Lake Elsinore Senior Activity Center.

Council Member Manos invited the community to attend the Live at the Lakefront Summer Concert Series at 7:00 p.m. on July 10, 17, 24, and 31 at Launch Pointe.

Council Member Johnson shared updates for the month of May from the Homeless Task Force.

Mayor Pro Tem Magee reported on his attendance at the Riverside County Transportation Commission Executive Committee meeting on June 11, 2025; invited the community to attend or participate in the 2025 Auto-Cross Racing event on July 5, 2025 at Diamond Stadium; shared that free microchips for pets are available at the Animal Friends of the Valleys vaccine clinic to Lake Elsinore residents; and highlighted that personal fireworks are illegal in Lake Elsinore, provided information on reporting illegal fireworks, and shared how to celebrate the 4th of July safely.

Mayor Tisdale reported on his attendance at the Northwest Mosquito & Vector Control District Board meeting on June 19, 2025; announced and provided information regarding the Lakeshore Drive Sidewalk Project; and shared events and ways residents can safely celebrate the 4th of July in Lake Elsinore.

ADJOURNMENT
The Lake Elsinore City Council adjourned at 8:11 p.m. to the next Regular meeting on Tuesday, July 8, 2025, in the Cultural Center located at 183 N. Main Street. Closed Session will commence at 5:00 p.m. or such later time as noticed on the Agenda, and the regular Open Session business meeting will commence at 7:00 p.m.
4) Acceptance of a Donation of Undeveloped Real Property (APN 373-061-010) Approve and authorize the City Manager to Execute a Donation Agreement and Joint Escrow Instructions and such other ancillary documents as may be necessary to complete the donation of approximately 0.14 acres of undeveloped property (APN 373-061-010) in such final form as approved by the City Attorney.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Gina Gonzalez, Economic Development and Legislative Affairs Director David Mann, Acting City Attorney
Date: July 8, 2025
Subject: Acceptance of a Donation of Undeveloped Real Property ( APN 373-061-010)
Recommendation
Approve and authorize the City Manager to Execute a Donation Agreement and Joint Escrow Instructions and such other ancillary documents as may be necessary to complete the donation of approximately 0.14 acres of undeveloped property (APN 373-061-010) in such final form as approved by the City Attorney.

Background
The undeveloped parcel is approximately 0.14 acres and is part of the Country Club Heights Subdivision, with azoning designation of R-1 (APN 373-061-010). A site mapshowing thelocation of the property is attached as Exhibit A to the Donation Agreement.

Discussion
The property owner, Michelle Hernandez, contacted the Economic Development Department about donating her property tothe City. Ms. Hernandez resides inLos Angeles andhas nointerest in maintaining her parcel in Lake Elsinore or building on the unimproved land.

The parcel may be suitable for future residential development, including as an affordable housing opportunity site.

Acceptance of Undeveloped Property

Page 2 of 2 ends

The City Council considered this donation in closed session on June 10, 2025. Thereafter, the City Attorney’s Office prepared the attached Donation Agreement for consideration by the City Council.

Fiscal Impact
Acceptance of the donation would likely result in the City incurring out-of-pocket costs for a title report, title insurance, and escrow fees. Such costs are estimated at $5,000.

Attachments
Attachment 1 – Donation Agreement
Exhibit A – Site Map
Exhibit B – Grant Deed
City Attorney's Office/Economic Development
1 APN: 373- 061- 010

DONATION AGREEMENT AND JOINT ESCROW INSTRUCTIONS

THIS DONATION AGREEMENT AND JOINT ESCROW INSTRUCTION
Agreement”) is made this 8th day of July, 2025 by and between the CITY OF LAKE ELSINORE, a California municipal corporation, herein called “ City,” and MICHELLE HERNANDEZ, herein called “ Donor.” The City and Donor are sometimes individually referred to as “ Party” and collectively as “ Parties.”
WHEREAS, Donor is the owner of certain real property located in Riverside County, and as more particularly described on Exhibit A attached hereto (the “ Real Property”); WHEREAS, City desires to acquire the Real Property for purposes of providing future housing.

NOW, THEREFORE, City and Donor agree as follows:

1. Dedication of Property. Donor shall offer to dedicate the Property to City and City shall accept the offer of dedication of the Property, or interest therein, upon the terms and conditions set forth in this Agreement. “ Property” means collectively the Real Property, all improvements presently or hereafter existing on the Real Property, all water rights, all mineral rights, all plans and specifications relating to the present or planned construction of improvements on the Real Property, including all governmental permits or licenses, utility contracts, service contracts, maintenance contracts, operating contracts, or other intangible property (if any) now or in the future owned by Donor in connection with the development, operation, or ownership of the Property or other rights of any kind or character relating to the ownership, use, or operation of the Property, including all materials purchased by Donor for use on the Property or in the construction of improvements on the Property, and all of Donor’s rights in and to any fees paid to any governmental agency or utility.

2. Obligations of Donor.

2.1 Fee Interest. Upon acceptance by City, Donor shall convey, assign and transfer its fee interest in the Property to City, free and clear of all liens, encumbrances, easements, leases ( recorded or unrecorded), bonds, assessments, and taxes except for ( i) liens for nondelinquent property taxes and assessments, and (ii) those liens and encumbrances and easements which, in the sole discretion of City, are acceptable pursuant to Section 6.

2.2 Representations and Warranties of Donor. Donor represents and warrants to City that as of the date of this Agreement and as of the Close of Escrow:

2.2.1 Hazardous Substances. The Property is: (i) free from Hazardous Substances; ( ii) contains no buried or partially buried storage tanks located on the Property; ( iii) has not been used for the generation, storage or disposal of any Hazardous Substance and no 2 Hazardous Substance has been spilled, disposed of, or stored on, under, or at the Property; and ( iv) has never been used as a dump or landfill;

2.2.2 Compliance with Law. The Property is in material compliance with all applicable Laws and Environmental Laws;

2.2.3 Leases. No leases, licenses, or other agreements allowing any third party rights to use the Property are or will be in force as of the Closing;

2.2.4 Litigation and Investigations. There is no pending or threatened litigation, administrative proceeding, or other legal or governmental action with respect to the Property, and Donor has received no notice, warning, administrative complaint, judicial complaint, or other formal or informal notice alleging that conditions on the Property are or have been in violation of any Laws or Environmental Laws, or informing Donor that the Property is subject to investigation or inquiry regarding the violation of any Laws or Environmental Laws.

2.2.5 Condition of Property. There are no natural or artificial conditions upon the Property or any part of the Property that could result in a material and adverse change in the condition of the Property;

2.2.6 Access to the Property. There is vehicular access to the Property either directly through a public right of way or through a recorded easement; and

2.2.7 No Insolvency Proceedings. Donor has not ( i) made a general assignment for the benefit of creditors; ( ii) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by its creditors; (iii) suffered the appointment of a receiver to take possession of all or substantially all of its assets; ( iv) suffered the attachment or other judicial seizure of substantially all of its assets; or (v) admitted in writing its inability to pay its debts as they come due.

2.2.8 No Other Agreements, Undertakings or Tenancies. Donor will not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the City.

2.2.9 Disclosure. Donor has disclosed to City all information, records, and studies in Donor’ s possession in connection with the Property, including any reports or studies concerning Hazardous Substances. All information that Donor has delivered to City, either directly or through Donor’ s agents, is accurate and Donor has disclosed all material facts concerning the operation, development, or condition of the Property.

Donor shall promptly notify City of any facts that would cause any of the representations contained in this Agreement to be untrue as of the Close of Escrow. If City reasonably concludes that a fact materially and adversely affects the Property, City shall have the option to terminate this Agreement by delivering written notice to Donor and Escrow Agent. If City terminates this Agreement pursuant to this Section, Escrow Agent shall cancel the Escrow and Donor shall be responsible for all costs of escrow. 3 2.3 Indemnity. Donor agrees to indemnify City and agrees to defend and hold City harmless from all loss, cost, liability, expense, damage, or other injury, including without limitation, attorneys’ fees and expenses, to the fullest extent not prohibited by applicable law, and all other costs and expenses incurred by reason of, or in any manner resulting from (i) the breach of any warranties and representations in Section 2.2, and ( ii) all third- party claims for Donor’ s intentional acts or willful misconduct related to the Property occurring prior to the Close of Escrow.

2.4 Definitions.

2.4.1 “ Environmental Laws” means all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance (as defined subsequently in this Agreement), or pertaining to occupational health or industrial hygiene ( and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Property), occupational or environmental conditions on, under, or about the Property, as now in effect, including without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( CERCLA) and the Superfund Amendments and Reauthorization Act of 1986 (SARA) [42 U.S.C.A. §§ 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 ( RCRA) and the Solid Waste Disposal Act [ 42 U.S.C.A. §§ 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 U.S.C.A. §§ 1251 et seq.]; the Toxic Substances Control Act ( TSCA) [ 15 U.S.C.A. §§ 2601 et seq.]; the Hazardous Materials Transportation Act (HMTA) [49 U.S.C.A. §§ 5101 et seq.]; the Federal Insecticide, Fungicide, and Rodenticide Act ( FIFRA) [ 7 U.S.C.A. §§ 136 et seq.]; the Clean Air Act (CAA) [42 U.S.C.A. §§ 7401 et seq.]; the Safe Drinking Water Act (SDWA) [42 U.S.C.A. §§ 300f et seq.]; the Surface Mining Control and Reclamation Act of 1977 ( SMCRA) 30 U.S.C.A. §§ 1201 et seq.]; the Emergency Planning and Community Right-to-Know Act of 1986 ( EPCRA or EPCRTKA) [ 42 U.S.C.A. §§ 11001 et seq.]; the Occupational Safety and Health Act of 1970 (OSHA) [29 U.S.C.A. §§ 655, 657]; the California laws regarding the underground storage of hazardous substances [ H & S C §§ 25280 et seq.]; the Hazardous Substance Account Act [H & S C §§ 25300 et seq.]; the California laws regarding hazardous waste control [H & S C 25100 et seq.]; the Safe Drinking Water and Toxic Enforcement Act of 1986 [ H & S C §§ 25249.5 et seq.]; the Porter-Cologne Water Quality Control Act [Wat C §§ 13000 et seq.], and any amendments of or regulations promulgated under the statutes cited above and any other federal, state, or local law, statute, ordinance, or regulation now in effect that pertains to occupational health or industrial hygiene, and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Property, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use.

2.4.2 “ Hazardous Substances” includes without limitation:
i) Those substances included within the definitions of
hazardous substance,” “ hazardous waste,” “ hazardous material,” “ toxic substance,” “ solid waste,” or “ pollutant or contaminant” in CERCLA, RCRA, TSCA, HMTA, or under any other Environmental Law;
4 ii) Those substances listed in the United States Department of Transportation ( DOT) Table [ 49 CFR 172.101], or by the Environmental Protection Agency EPA), or any successor agency, as hazardous substances [ 40 CFR Part 302]; iii) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and iv) Any material, waste, or substance that is: a petroleum or refined petroleum product, asbestos, polychlorinated biphenyl, designated as a hazardous substance pursuant to 33 U.S.C.A. § 1321 or listed pursuant to 33 U.S.C.A. § 1317, a flammable explosive, or a radioactive material.

3. Escrow. By this Agreement, City and Donor establish an escrow (“ Escrow”) with a reputable title company chosen by City ( the “ Escrow Agent”), subject to the provisions of the standard conditions for acceptance of escrow and the terms and conditions in this Agreement, with a signed counterpart of this document to be delivered as escrow instructions to Escrow Agent. In the event of any conflict between the terms of this Agreement and the standard conditions for acceptance of escrow, the terms of this Agreement shall control. City’ s agent for matters related to the Closing of Escrow shall be the Executive Director or his designee.

4. Feasibility Period.

4.1 During the period commencing on the date of this Agreement and terminating on a date which is sixty ( 60) days from the date of this Agreement (“ Feasibility Period”), City may undertake an inspection of the Property. Said inspection may include: (i) a review of the physical condition of the Property, including but not limited to, inspection and examination of soils, environmental factors, Hazardous Substances, if any, and archeological information relating to the Property; and (ii) a review and investigation of the effect of any zoning, maps, permits, reports, engineering data, regulations, ordinances, and laws affecting the Property.

Within ten ( 10) days following the full execution of this Agreement by both parties, Donor shall deliver to City copies of all architectural plans, surveys, specifications, and other documents pertaining to the physical, geological, or environmental condition of the Property that are owned by or in the possession of Donor.

4.2 If City’ s environmental consultant requires additional time to determine the existence and extent of any Hazardous Substances on the Property, City shall have the right, exercisable by delivering written notice to Donor prior to the expiration of the Feasibility Period, to extend the Feasibility Period for up to an additional sixty (60) days to complete the testing.

4.3 If City disapproves of the results of the inspection and review or the results of any Phase I Environmental Report, City may elect, prior to the last day of the Feasibility Period or any extension thereof), to terminate this Agreement by giving Donor written notification prior to the last day of the Feasibility Period (or any extension thereof). If City fails to properly notify Donor of the intent to terminate this Agreement, City shall be deemed to be satisfied with the results of the inspection and shall be deemed to have waived the right to terminate this Agreement pursuant to this provision.

5. Access.
5 5.1 Access to the Property during the Feasibility Period shall be given to City, its agents, employees, or contractors during normal business hours upon at least one (1) business day’ s notice to Donor, at City’ s own cost and risk, for any purposes, including, but not limited to, inspecting the Property, taking samples of the soil, and conducting an environmental audit including an investigation of past and current uses of the Property). City shall indemnify and defend Donor against and hold Donor harmless from all losses, costs, damages, liabilities, and expenses, including, without limitation, reasonable attorney fees arising out of City’ s entry onto the Property or any activity thereon by City or its agents, employees, or contractors prior to the Close of Escrow except to the extent any such losses, costs, damages, liabilities, and expenses arise out of the gross negligence or willful acts of Donor. Any entry onto the Property by City or its agents, employees, or contractors shall be at reasonable times. The provisions of this Section shall survive the Close of Escrow. Notwithstanding anything herein to the contrary, City and Donor agree that City shall not incur any liability hereunder merely by the discovery of an “ Existing Adverse Condition” ( as defined below) regardless of whether such Existing Adverse Condition, once revealed, negatively impacts the value of the Property or otherwise causes Donor to incur liabilities, costs or expenses. The term “ Existing Adverse Condition” shall mean an adverse condition existing on or with respect to the Property that is discovered or revealed by City in the course of its Property inspection hereunder.

5.2 In addition to the provisions of Section 4.1, City and its agents, employees, or contractors shall have the right, from the date of this Agreement until the Closing Date, to contact any federal, state, or local governmental authority or agency to investigate any matters relating to the Property. Donor agrees to cooperate reasonably with City and its agents, employees, or contractors in the inspection of the Property and agrees to deliver to City all information in Donor’ s possession or control pertaining to the condition of the Property, including engineering and environmental reports, studies, tests, monitoring results, and related documentation.

6. Title.

6.1 Immediately following the execution of this Agreement by both Parties, City shall cause Escrow Agent to issue to City (with a copy to Donor) a preliminary report for an ALTA Standard Policy of Title Insurance, setting forth all liens, encumbrances, easements, restrictions, conditions, pending litigation, judgments, administrative proceedings, and other matters affecting Donor’ s title to the Property (“ Preliminary Report”), together with copies of all documents relating to title exceptions referred to in the Preliminary Report.

6.2 Following the full execution of this Agreement by both Parties, City may cause a survey and/or an ALTA Survey of the Property to be prepared by a registered surveyor or professional engineer (“ Survey”). Donor agrees to deliver to City, promptly following the full execution and delivery of this Agreement, copies of any survey of the Property in the possession of Donor.

6.3 City shall approve or disapprove, in writing to Donor with a copy to Escrow Agent, each exception shown on the Preliminary Report and each encroachment, overlap, or boundary line dispute, or any other matter that materially and adversely affects title to the Property or that violates any law, rule, or regulation reflected on the Survey (each an “ Exception”) within twenty (20) business days following the receipt of the Preliminary Report or the Survey (if any), 6 whichever is later. City’ s failure to object within the twenty ( 20) day period shall be deemed to be a disapproval of the Exceptions. The Exceptions approved by City hereunder shall be referred to as the “ Approved Exceptions.”

6.4 If any Exception is disapproved or deemed disapproved ( each a Disapproved Exception”), Donor shall have the right, but not the obligation, within thirty ( 30) days following expiration of the twenty (20) day period provided under Section 6.3 above, to cause each Disapproved Exception to be discharged, satisfied, released, or terminated, as the case may be, of record, and in a form that is reasonably satisfactory to City and Escrow Agent, all at Donor’ s sole cost and expense. Donor agrees to deposit into Escrow the sum sufficient to discharge any Disapproved Exception that may be discharged only by the payment of money. If Donor is unable or unwilling to obtain a discharge, satisfaction, release, or termination of any Disapproved Exception within the period specified above, then this Agreement shall automatically terminate ten (10) business days after expiration of the 30-day period for curing the Disapproved Exceptions or after Donor advises City in writing that Donor is unable or unwilling to cause such discharge, satisfaction, release, or termination, whichever occurs first, unless within such 10-business- day period City waives in writing such Disapproved Exception, in which event such Disapproved Exception shall be deemed an Approved Exception under this Agreement. If this Agreement terminates pursuant to the foregoing sentence, then Donor shall pay all charges of the Escrow Agent in connection with this transaction, including the charges of the surveyor and environmental engineering company; and the Parties shall be relieved of all further obligations and liabilities to each other under this Agreement except as otherwise provided herein, and all funds and documents deposited with Escrow Agent shall be promptly refunded or returned, as the case may be, by Escrow Agent to the depositing Party. Anything above to the contrary notwithstanding, it is understood and agreed that City’s indemnity obligations under Section 5 shall not terminate upon termination of this Agreement pursuant to this or any other provision hereof.

7. Reserved.

8. Close of Escrow.

8.1 Title. Simultaneously with the Close of Escrow, Escrow Agent shall issue an ALTA Standard Policy of Title Insurance ( formerly referred to as a CLTA Title Policy) (“ Title Policy”) in the amount of $10,000 or such lesser amount as approved by the City Manager, subject only to (i) liens for real property taxes, bonds, and assessments not then due, and ( ii) the Approved Exceptions.

8.2 Donor’ s Deposits into Escrow. Donor shall deposit with Escrow Agent on or prior to the Close of Escrow the following documents:
i) a grant deed in the form attached hereto as Exhibit “ C” executed and acknowledged by Donor, conveying to City good and marketable fee simple title to the Property, subject only to the Approved Exceptions (“ Deed”); ii) copy of the Installation Contract and the Completion Notice described in Section 7;
7 iii) a copy of the development project’ s fence plan, as required by Section 9(v), below;
iv) all funds required to be placed in escrow by Donor; and v) Donor’ s approval of the draft of Escrow Agent’s closing statement.

8.3 City’s Deposits into Escrow. City’s approval of the Survey (if any), and City’ s approval of the draft of Escrow Agent’ s closing statement. City shall deposit with Escrow Agent prior to or after the Close of Escrow, the documents related to the Installation Contract described in Section 7.

8.4 Closing Date. The conveyance of the Property to City and the closing of this transaction (“ Close of Escrow”) shall take place within one hundred twenty ( 120) days Closing Date”) following the establishment of an Escrow pursuant to Section 3 of this Agreement.

8.5 Closing Statements. No more than two days prior to the Closing Date, Escrow Agent shall deliver to City and to Donor, for their respective approvals, drafts of Escrow Agent’s closing statement showing all receipts and disbursements of the Escrow.

8.6 Closing Instructions. On the Closing Date ( or any extension thereof), Escrow Agent shall close Escrow as follows:
i) record the Deed ( marked for return to City) with the Riverside County Recorder;
ii) issue the Title Policy;
iii) prorate taxes, assessments, rents, and other charges as provided in Section 8.7 below;
iv) retain an amount of Donor’s funds sufficient to pay the contractor under the Installation Contract described in Section 7; v) prepare and deliver to both City and Donor one signed copy of Escrow Agent’ s closing statement showing all receipts and disbursements of the Escrow; vi) If Escrow Agent is unable to simultaneously perform all of the instructions set forth above, Escrow Agent shall notify City and Donor and retain all funds and documents pending receipt of further instructions jointly issued by City and Donor.

8.7 Closing Costs and Prorations. Donor shall pay the following closing costs and prorations through the Close of Escrow:
8 i) All governmental conveyancing fees and taxes due upon transfer of the Property, except that no documentary transfer tax will be payable with respect to this transaction, pursuant to Revenue and Taxation Code Section 11922; ii) The recording charges in connection with recordation of the Deed; except that this Deed is entitled to be recorded without a fee pursuant to Government Code Section 27383 because the Deed is for the benefit of a public agency; iii) All charges in connection with issuance of the Title Policy; iv) All costs associated by environmental reports, including the Phase I Environmental Site Assessment Report, and any further testing and reports which may be reasonably necessary as a result of such report;
v) All charges related to any survey undertaken in connection with an ALTA Extended Policy of Title Insurance;
vi) All charges in connection with the Installation Contract; vii) All charges in connection with removing any Disapproved Exceptions pursuant to Section 6.4 and to cure any defect in vesting in order to satisfy the condition set forth in Section 9(v); and
viii) All fees and charges levied by Escrow Agent.

8.8 Real Estate Taxes, Bonds, and Assessments. Donor shall pay real property taxes at the Close of Escrow based on the most current real property tax bill available, including any additional property taxes that may be assessed after the Close of Escrow, regardless of when notice of those taxes is received or who receives the notice. Donor may seek reimbursement from the Riverside County Tax Assessor’ s office for any property taxes that have been assessed for a period after the Close of Escrow as City is a public agency exempt from payment of such taxes.

City further agrees to cooperate with Donor to provide any necessary information to the Assessor’ s office in connection with such request for refund. All installments of any bond or assessment that constitutes a lien on the Property at the Close of Escrow shall be paid by Donor.

8.9 Possession. Possession of the Property shall be delivered to City at the Close of Escrow.

9. Acceptance. The acceptance of the Property by City and the Closing of Escrow ( as defined in Section 8) are subject to the satisfaction of the following no later than the Closing Date:
i) City’ s approval of the condition of the Property as provided in Section 4 and title to the Property as provided in Section 6. In addition, Donor shall remove any debris or trash from the Property prior to the Close of Escrow; ii) The representations and warranties of Donor set forth in Section 2.2 shall be true and accurate as of the Closing Date; 9 iii) Donor’ s performance of all obligations under this Agreement;
iv) No adverse material change shall have occurred with respect to the condition of the Property from the end of the Feasibility Period through the Closing Date; v) City’ s approval of the development project’ s fence plan; and vi) Escrow Agent being prepared to issue the Title Policy on the Close of Escrow, subject only to the Approved Exceptions.

10. Reserved.

11. This Agreement and Escrow may be terminated by City upon three ( 3) days written notice to Donor and Escrow Agent if the conditions to closing set forth in Section 9 have not been fulfilled on or before the Closing Date. Upon termination by City pursuant to this Section 12, Donor shall be responsible for all costs and expenses of Escrow Agent.

12. As used in this Agreement, notice includes but is not limited to, the communication of any notice, request, demand, approval, statement, report, acceptance, consent, waiver and appointment. All notices must be in writing. Notice is given either ( i) when delivered in person to the person or company intended named below, or (ii) when sent via reputable overnight courier such as Federal Express), addressed by name and addressed to the party or persons intended, as follows:

To Donor: Michelle Hernandez
To City: Attn: City Manager
Lake Elsinore City Hall
130 South Main Street
Lake Elsinore, CA 92530
Phone: (951) 674-3124
until such time as a party gives notice of the change of address in accordance with the terms of this section.

13. This Agreement shall not be changed, modified or amended except upon the written consent of the Parties hereto.

14. This Agreement is the result of negotiations between the Parties and is intended by the Parties to be a final expression of their understanding with respect to the matters herein contained. This Agreement supersedes any and all other prior agreements and understandings, oral or written, in connection therewith. No provision contained herein shall be construed against the City solely because it prepared this Agreement in its executed form. 10 15. Donor, their assigns and successors in interest, shall be bound by all the terms and conditions contained in this Agreement, and all the parties thereto shall be jointly and severally liable thereunder.

16. This Agreement is not binding until executed by the City Manager.

17. Notwithstanding any other provision of this Agreement or any other agreement between any of the Parties hereto, once the Property is conveyed to and accepted by the City, the City shall have no obligation to return the Property to the Donor under any circumstances, except in the sole and exclusive discretion of the City.

18. Pursuant to City’ s Policies and Procedures for Execution of IRS Form 8283 for Bargain Sales and Donations, City agrees to cooperate with Donor to acknowledge receipt of the donation of the Property by signing Internal Revenue Form 8283 ( Non- Cash Charitable Contributions) before the Close of Escrow and any other tax-related forms or documents reasonably requested by Donor and to return any such forms to Donor within thirty business ( 30) days after City’s receipt of such forms from Donor. Notwithstanding the foregoing, City makes no representation or warranty to Donor regarding the tax attributes of this transaction, nor shall City endorse or otherwise acknowledge any valuation of the Property for tax purposes, it being understood that the Donor has obtained its own appraisals and tax advice for such purposes.

19. This Agreement may be executed in one or more counterparts. Each shall be deemed an original and all, taken together, shall constitute one and the same instrument. signature page follows]
11 IN WITNESS WHEREOF, the Parties hereto have signed this Agreement as of the respective dates set forth below.

CITY”

CITY OF LAKE ELSINORE,
a California municipal corporation
Dated: , 2025 By:

Jason Simpson
City Manager
ATTEST
City Clerk
APPROVED AS TO FORM:

City Attorney
DONOR”

MICHELLE HERNANDEZ
Dated: , 2025
Michelle Hernandez
1 EXHIBIT “ A”

LEGAL DESCRIPTION OF PROPERTY
TO BE INSERTED]
The following is provided for informational purposes until a legal description can be confirmed by the Title Company:

The undeveloped parcel is approximately 0.14 acres and is part of the Country Club Heights Subdivision off Franklin Street and Channing Way, with a zoning designation of R-1 (APN 373- 061-010).

EXHIBIT B

GRANT DEED
Recorded at request of and return to:

CITY OF LAKE ELSINORE
Lake Elsinore City Hall
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk

FREE RECORDING
This instrument is for the benefit of the CITY
OF LAKE ELSINORE and is entitled to be
recorded without fee. ( Gov. Code, § 27383)
Space above this line reserved for Recorder’ s use)

CITY OF LAKE ELSINORE

GRANT DEED
APN: 373- 061- 010
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, MICHELLE HERNANDEZ, herein called “ Grantor”, hereby GRANTS to CITY OF LAKE ELSINORE, a municipal corporation (“Grantee”), the real property in the County of Riverside, State of California, described as:

See Exhibit “A” attached hereto and made a part hereof
IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of the __ th day of _______, 2025.

Signature of Donor

ATTACH NOTARY ACKNOWLEDGEMENT

CITY OF LAKE ELSINORE

CERTIFICATE OF ACCEPTANCE
This is to certify that the real property conveyed by MICHELLE HERNANDEZ, on the Grant Deed dated _______________, 2025, to the CITY OF LAKE ELSINORE, a California municipal corporation ( Grantee), is hereby accepted by the undersigned officer on behalf of the City Council of the City of Lake Elsinore (“ City Council”) pursuant to authority conferred by Resolution No. 99-17 of the City Council adopted on March 23, 1999 and Minute Order approved July 8, 2025 and the City of Lake Elsinore consents to recordation thereof by its duly authorized officer.

Dated: GRANTEE:

CITY OF LAKE ELSINORE, a municipal
corporation
By: ________________________________
Jason Simpson, City Manager
5) Second Reading of an Ordinance Approving Amendments to Title 17 (Zoning), Chapter 17.156 of the Lake Elsinore Municipal Code Related to Cannabis Uses Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENTS TO TITLE 17, AMENDING AND RESTATING CHAPTER 17.156 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING CANNABIS USES.

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REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: July 8, 2025
Subject: Second Reading of an Ordinance Approving Amendments to Title 17 Zoning), Chapter 17.156 of the Lake Elsinore Municipal Code Related to Cannabis Uses
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENTS TO TITLE 17, AMENDING AND RESTATING CHAPTER 17.156 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING CANNABIS USES.

Background/Discussion
At its Regular meeting on June 24, 2025, the City Council introduced by title only and waived further reading of the Ordinance.

Attachments
Attachment 1 - Ordinance
City Clerk's Office
ORDINANCE NO. 2025-1504

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENTS TO TITLE 17, AMENDING AND RESTATING CHAPTER 17.156 OF THE LAKE ELSINORE MUNICIPAL CODE

REGARDING CANNABIS USES
Whereas, Chapter 17.156 (Cannabis Uses) of the Lake Elsinore Municipal Code (LEMC) sets forth the regulation for cannabis related uses;
Whereas, the City desires to amend Chapter 17.156 of the LEMC to more efficiently regulate cannabis uses in accordance with State law in order to promote the health, safety, and general welfare of the residents and businesses within the City; Whereas, pursuant to LEMC Section 17.415.040 ( Zoning Amendments), the Planning Commission (Commission) has been delegated the responsibility of making recommendations to the City Council (Council) regarding zoning ordinance text amendments; Whereas, on May 20, 2025, at a duly noticed Public Hearing, the Commission considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve the amendment to Title 17 of the LEMC; and
Whereas, on June 24, 2025, at a duly noticed Public Hearing, the Council considered the Commission's recommendation as well as evidence presented by the Community Development Department and other interested parties regarding this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE, AND ORDAIN AS FOLLOWS:

Section 1: The foregoing recitals are true and correct and are hereby incorporated into these findings by this reference.

Section 2: The Council has reviewed and analyzed the proposed amendment to Title 17 of the LEMC, pursuant to the California Planning and Zoning Laws (Cal. Gov. Code Sec 65000 et. seq.), Lake Elsinore General Plan ( GP), and the LEMC and finds that the proposed amendment is consistent with the requirements of California Planning and Zoning Law and with the goals and policies of the GP and the LEMC.

Section 3: The Council hereby finds and determines that the proposed amendment to the Lake Elsinore Municipal Code is exempt from the California Environmental Quality Act (Cal. Publ.

Res. Code §§ 21000 et seq. “ CEQA”) and the State CEQA Guidelines ( 14. Cal. Code Regs 15000 et seq.), specifically pursuant to pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines.

Section 4: In accordance with Government Code Section 65855, the Council makes the following findings regarding the amendment to Title 17 of the Lake Elsinore Municipal Code:

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1. The proposed zoning code amendments will not be: a) detrimental to the health, safety, comfort, or general welfare of the persons residing or working within the neighborhood of theproposed amendment or within the City, or b) injurious totheproperty or improvements in the neighborhood or within the City.

The proposed amendments to Title 17 (Zoning) ofthe Municipal Code have been analyzed relative to their potential detrimental effects. It has been determined that the amendments have no impact on the public’s health, safety, comfort, and general welfare because they will provide additional regulation of cannabis businesses within the City.

2. The proposed zoning code amendments are consistent with the General Plan's Goals, Policies, and Implementation Programs and the development standards established with the LEMC.

The proposed amendments to Title 17 (Zoning) of the Municipal Code do not create new zoning districts, remove existing zoning districts, or rezone property. They will also not interfere with theimplementation ofthe General Plan's goals, policies, and implementation programs.

Section 5: Based upon the evidence presented, both written and testimonial, and the above findings, the City Council hereby approves the amendment of Title 17 of the Lake Elsinore Municipal Code as follows:

Chapter 17.156

CANNABIS USES
Sections:

17.156.010 Purpose and intent.

17.156.020 Interpretation and applicability.

17.156.030 Exemptions

17.156.040 Definitions.

17.156.050 Permitted locations.

17.156.060 Limitation on uses.

17.156.070 Permits required.

17.156.080 Cannabis business license.

17.156.090 Requirements for all cannabis facilities.

17.156.100 Cannabis retail businesses.

17.156.110 Cannabis distribution.

17.156.120 Cannabis cultivation.

17.156.130 Cannabis manufacturing.

17.156.140 Cannabis testing laboratory.

17.156.150 Enforcement.

17.156.160 M-1 and M-2 district zones.

17.156.010 Purpose and intent.

The purpose and intent of this chapter are to regulate the retail sale, dispensing, cultivation, processing, manufacturing, testing, and distribution of cannabis in a manner that protects the public health, safety, and welfare of the City and mitigates the costs to the community of the oversight of these activities.

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Nothing in this chapter shall be construed to: allow persons to engage in conduct that endangers others or causes a public nuisance; or allow any activity relating to the cultivation, manufacturing, testing, distribution, or consumption of cannabis that is otherwise illegal under California law.

17.156.020 Interpretation and applicability.

Operation of cannabis facilities within the City shall be permitted upon the application and approval of a conditional use permit both pertaining to the location of the facility in accordance with the criteria and procedures set forth in this chapter and the City’s municipal code, upon application and subject to such additional regulations as may be promulgated pursuant to this chapter.

A. The cultivation, processing, and distribution of cannabis in the City are controlled by the provisions of this chapter.

B. Nothing in this chapter is intended, nor shall it be construed, to burden any defense to criminal prosecution otherwise afforded by California law.

C. Nothing in this chapter is intended, nor shall it be construed, to preclude a landlord from limiting or prohibiting cannabis cultivation, consumption, processing, and distribution or other related activities by tenants.

D. Nothing in this chapter is intended, nor shall it be construed, to exempt any cannabis-related activity from any applicable local or State construction, environmental, electrical, plumbing, land use, labor, or employment laws or any other building or land use standards or permitting requirements.

E. Nothing in this chapter is intended, nor shall it be construed, to make legal any sale, cultivation, transportation, manufacture, or other use of cannabis that is otherwise prohibited or noncompliant under California law, as amended from time to time.

F. All cannabis cultivation, retail sales, dispensing, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, retail sales, dispensing, distribution, testing, and manufacturing facilities within City limits shall be subject to the provisions of this chapter, regardless of whether the use existed or occurred prior to adoption of this chapter.

17.156.030 Exemptions.

A. There shall be a limited exemption from enforcement for violations of this chapter by qualified patients for cannabis cultivation for their own use in all residential zone classifications when all of the following conditions and standards are complied with:

1. The premises shall contain a legally permitted private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping, and sanitation facilities with proper ingress and egress.

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2. A qualified patient may cultivate up to 100 square feet of cultivation area for personal use. A primary caregiver may cultivate up to 100 square feet for the personal medical use of a single qualified patient, and may cultivate for no more than five maximum individual qualified patients. At least one qualified patient or one primary caregiver must live on the premises.

3. A person may cultivate up to 100 square feet of cultivation area for personal use.

4. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer.

5. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five acres are exempt from this fencing provision so long as all other standards and conditions of this subsection ( A) are complied with and any barriers used are otherwise consistent with the municipal code.

6. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least 10 feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (A)(6) of this section to the boundary line of the premises.

7. The designated cannabis cultivation area must not be visible from any public right-ofway.

8. Qualified patients for whom the cannabis plants are being cultivated shall have valid medical cannabis identification cards issued by the Riverside County Department of Public Health. Any primary caregiver cultivating cannabis plants for a qualified patient shall have a copy of the qualified patient’s valid medical cannabis identification card issued by the Riverside County Department of Public Health, which shall be kept on the premises.

9. The cannabis cultivation site shall not be upon any premises containing a childcare center, church, or youth-oriented facility.

17.156.040 Definitions.

When used in this chapter, the following words shall have the meanings ascribed to them in this section. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources:

A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time;
B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83); Ord. No. 2025-1504

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C. The MMRSA (California Business and Professions Code Sections 19300 through 19355) as may be amended from time to time;
D. The AMUA (Proposition 64, The Adult Use of Cannabis Act).

Cannabis” has the same meaning as in California Health and Safety Code Section 11018 and Proposition 64, Cannabis Legalization, as may be amended from time to time. For the purpose of this chapter, “cannabis” does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.

Cannabis business license” means a business license issued by the City pursuant to Title 5 LEMC allowing for the lawful operation of cannabis facility within the City.

Cannabis cultivation” means the planting, growing, harvesting, drying or processing of any cannabis plants or any part thereof for use consistent with the Compassionate Use Act California Health and Safety Code Section 11362.5), the Medical Cannabis Program Act California Health and Safety Code Section 11362.7 et seq.), and Proposition 64, Cannabis Legalization.

Cannabis delivery” means the commercial transfer of cannabis or cannabis products from a cannabis retail business with an approved conditional use permit, up to an amount allowed by the State of California Department of Cannabis Control, to a primary caregiver, qualified patient, or customer at a physical address in California in compliance with all State laws and regulations.

Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of cannabis and/or cannabis products between entities operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code.

Cannabis facility” means any business that conducts cannabis cultivation, retail sales, dispensing, distribution, testing, or manufacturing.

Cannabis manufacturing facility” means a facility where the production of cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of cannabis products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid conditional use permit, and a development agreement if applicable, all issued in accordance with this chapter and the City’s municipal code, and operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code.

Cannabis non-retail business” means any part of the facility or location that is not part of the cannabis retail business including but not limited to cultivation, distribution, manufacturing, and/or testing laboratory.

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Cannabis retail business” means any facility or location where cannabis is made available to or distributed by or distributed to one or more individuals operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code.

Cannabis testing laboratory” means a facility for testing, analysis, and/or research. Similar types of lab uses include medical labs, soils, materials testing labs, and forensic labs.

Laboratories are a necessary component of the cannabis licensing scheme because testing is required to be done on each cannabis crop to determine constituents such as cannabinols CBDs), tetrahydrocannabinol ( THC), pesticide residuals, mold, and fungus.

Enforcement officer” means any City employee or any agent of the City with the authority to enforce any provision of this code, codes adopted by the City, or State laws enforceable by the City. Enforcement Officers are authorized to issue citations for all violations of this chapter.

Indoor” means any location within the City that is within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit, or housing unit.

Occupied” means currently, presently, and lawfully utilized in accordance with an issued certificate of occupancy.

Outdoor” means any location within the City that is not within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit, or housing unit.

Parcel” means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (California Government Code Section 66410 et seq.).

Private residence” means a house, apartment unit, mobile home, or other similar dwelling, and includes any accessory structure that is fully enclosed, secure, and located upon the grounds of the private residence.

School” means any educational facility that primarily provides educational services to individuals under the age of 18.

State cannabis track-and-trace system” means the State of California Cannabis Track-andTrace (CCTT) system used statewide to record the inventory and movement of cannabis and cannabis products through the commercial cannabis supply chain and administered by the California Department of Food and Agriculture.

17.156.050 Permitted Locations.

A. Cannabis uses shall only be located in the Limited Manufacturing ( M-1) or General Manufacturing ( M-2) zoning districts.

B. Cannabis uses shall not be located within 1,000 feet of any school, community center, or park that is in existence at the time a complete conditional use permit application is submitted for a new cannabis use.

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17.156.060 Limitation on uses.

A. In no case shall the maximum number of permits issued for cannabis facilities be more than 10 permits combined within the City’s M-1 and M-2 zoning districts. A cannabis facility legally established prior to the effective date of this ordinance, codified in this Chapter, shall be allowed to continue operating so long as it is operated and maintained in accordance with the conditions of approval prescribed at the time of its establishment.

B. No further cannabis licenses for new locations will be issued by the City until the total number of cannabis uses is less than 10, after which time the City may issue further licenses not to exceed 10 total cannabis facilities operating at one given time.

C. Section 17.156.050.A is only intended to establish a maximum number of cannabis facilities that may be permitted to operate in the City. Nothing in this Chapter shall mandate that the City Council issue all the cannabis use permits that are potentially available.

17.156.070 Licenses and permits required.

A. All cannabis facilities shall obtain the following permits prior to commencing operation:

1. Valid a conditional use permit

2. Building permit(s)

3. Certificate of occupancy

4. A City cannabis business license

17.156.080 Cannabis business license.

A. Except as otherwise set forth in this chapter, it shall be unlawful for any person or entity to operate or maintain, in or upon any property, a cannabis facility without first obtaining all required State licenses andacannabis business licenseissuedby the City. Each State license type available in the MMRSA or AMUA is eligible to apply for a cannabis business license.

Unless otherwise set forth in this chapter, no person shall engage in a cannabis use or operate a cannabis facility without possessing all applicable State licenses and all applicable City permits and licenses. Revocation of a State license shall constitute grounds for the City to suspend or revoke any permit or license issued by the City.

B. All cannabis facility permittees shall be subject to an annual regulatory inspection by the City to ensure compliance with all of the applicable provisions of this chapter.

C. It shall be unlawful for the owner of a building to allow or maintain the use of any portion of a building by a cannabis facility unless the tenant has a valid conditional use permit, cannabis business license, and certification of occupancy issued by the City. Each owner of a building whose tenant is applying for a cannabis facility to operate in the City shall execute an acknowledgement that the applicant has the owner’s permission and consent to operate a cannabis facility at the subject property.

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D. The cannabis facility permittee shall display its current valid State license and cannabis business license issued in accordance with this chapter at all times inside the lobby or waiting area of the main entrance to the site, in a conspicuous manner so that it may be readily seen by all persons entering the site.

E. It shall be unlawful to operate or maintain any cannabis facility without fully complying with all terms, requirements, and conditions of applicable State licenses and City permits, licenses, and other approvals.

17.156.090 Requirements for all cannabis facilities.

A. Safety. Cannabis facilities shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public. Cannabis facilities shall not create a public nuisance or adversely affect thehealth or safety ofthenearby residents, businesses or employees working at the cannabis facility by creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, unsafe conditions or other impacts, or be hazardous due to the use or storage of materials, processes, products, and runoff of water, pesticides or wastes.

B. Criminal History. No cannabis facility permittee or manager of a cannabis facility shall operate a cannabis facility if such person has been convicted of a felony or is currently on parole or probation for thesale or distribution of acontrolled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a cannabis use facility solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar Federal statute or State law under which the expungement was granted.

C. Hours of Operation. The maximum hours of operation that a cannabis retail business is may be open to the public shall be daily from 7:00 a.m. to 10:00 p.m. unless the more restrictive hours have been imposed as a condition of approval on the cannabis facility’s conditional use permit. All other cannabis non-retail uses, including distribution, manufacturing, cultivation, and testing laboratory, may operate only during the hours specified in the conditional use permit granted by the City.

D. Odor Control. All cannabis facilities shall be sited and operated in a manner that prevents cannabis odors from being detected offsite and shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis use facilities that is distinctive to its operation is not detected outside of the operation’s facility, anywhere on adjacent lots 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 facility. In order to control nuisances such as odors, humidity, and mold, cannabis facilities shall install and maintain at a minimum the following equipment, or any other equipment that can be proven to be an equally or more effective method or technology to control these nuisances:

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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 use facility’s interior and exterior, so that the odors generated by the cannabis use facility are not detectable on the outside of the cannabis use facility.

E. Exterior Signs. Signage for a cannabis facility shall comply with the following:

1. In addition to the requirements set forth in this section and California Business and Professions Code section 26152 as may be amended, business identification signage for a cannabis use facility shall comply with the provisions of Chapter 17.196 LEMC.

2. No cannabis facility shall advertise by having a person or device holding a sign or an air dancer sign advertising the activity to passersby, whether such person, device, or air dancer is on the lot of the cannabis use facility or elsewhere, including, but not limited to, the public right-of-way.

3. No cannabis facility shall publish or distribute advertising or marketing that is attractive to children.

4. No cannabis use facility shall advertise or market cannabis or cannabis products on motor vehicles.

5. No sign shall advertise or market cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products.

6. No signs placed on the lot of a cannabis use facility shall obstruct any entrance or exit to the building or any window.

7. Each entrance to a cannabis use facility shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the lot of the cannabis facility is prohibited.

8. No banners, flags, billboards, or other prohibited signs may be used at any time.

9. Additional signs required to be posted inside the cannabis facility shall follow the requirements as stated in the sections below pertaining to the specific operating requirements for each cannabis use type.

F. Reserved.

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G. Site Security. Each cannabis facility shall submit a site security plan, which must include the following:

1. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.

2. Video from the security surveillance cameras must be recorded at all times (24 hours a day, seven days a week) and maintained for at least 30 days. The video recordings shall be made available to the City upon request.

3. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm.

4. A site security plan must be submitted with the conditional use permit planning application and approved prior to occupancy.

H. Consumption prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site.

I. Alcohol prohibited. No cannabis distribution permittee or manager shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the distribution facility property; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or operate a business onor adjacent to the distribution facility property that sells alcoholic beverages. No alcoholic beverages shall be allowed or stored on the distribution facility property.

J. Persons younger than 21 prohibited. No person younger than 21 years of age shall be on the site (except within a cannabis retail business if such person has a valid medical prescription) or operate a cannabis facility in any capacity, including but not limited to, as a manager, staff, employee, contractor, or volunteer.

K. Parking. Parking shall be provided in accordance with Chapter 17.148 LEMC, Parking Requirements.

L. Visibility. Inno case shall live cannabis plants be visible from a public or private road, sidewalk, park, or common public viewing area.

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17.156.100 Cannabis retail businesses.

A. A cannabis retail business shall be permitted only in conjunction with either a cannabis cultivation, distribution, or manufacturing facility. A standalone cannabis retail business is strictly prohibited.

B. A cannabis retail business shall have adequate locked storage on the property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the property in secured rooms that are completely enclosed or in a safe that is bolted to the floor.

C. A cannabis delivery retailer operating without a storefront shall be closed to the public. A cannabis delivery retailer shall also operate in accordance with the applicable provisions pursuant to Section 17.156.100.

D. Cannabis and cannabis products not in the cannabis retail business display area shall be maintained in a locked, secure area.

E. Restroom facilities shall be locked and under the control of the cannabis retail business.

F. A cannabis retail business shall ensure that all cannabis and cannabis products held for sale by the cannabis retail business are cultivated, manufactured, transported, distributed, and tested by California-licensed and permitted facilities that are in full conformance with State laws and regulations.

G. Cannabis retail businesses shall not sell any cannabis or cannabis product unless such products are labeled and, in a tamper-evident package, in compliance with the California Business and Professions Code and any additional rules promulgated by alicensing authority.

H. Cannabis retail businesses shall not provide free samples of any type, including cannabis products, to any person and shall not allow any person to provide free samples on the cannabis retail business’s lot.

I. Deliveries of cannabis and cannabis products shall be to a customer at a physical address and conducted in accordance with California Business and Professions Code section 26090, as may be amended, and all State laws and regulations pertaining to the delivery of cannabis and cannabis products.

J. Cannabis retail businesses shall not include a drive-in, drive-through, or walk-up window where retail sales of cannabis or cannabis products are sold to persons or persons within or about a motor vehicle.

K. Cannabis retail businesses with an approved conditional use permit may provide cannabis deliveries consistent with State law.

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L. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis retail business where they will be visible to members and customers in the normal course of a transaction, stating:

1. “ Smoking, ingesting, or consuming cannabis on this property or within 20 feet of the business is prohibited.”

2. “ Persons younger than 21 years of age are prohibited from entering this property unless they are a qualified patient or a primary caregiver.”

3. “ Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.”
M. Access to the cannabis retail business shall be restricted as follows:

1. All entrances into a cannabis retail business’s building shall be locked from the exterior at all times, with entry controlled by business personnel.

2. A manager must beonthecannabis retail business siteat all times when any other person, except for security guards, is on the site.

3. While on the cannabis retail business site, managers and staff of the cannabis retail business permittee must wear their cannabis retail business identification badge at all times.

4. Any person other than managers or staff shall be escorted by a manager at all times while in the cannabis retail business building.

17.156.110 Cannabis distribution.

A. Cannabis and cannabis products shall only be transported between permitted and licensed cannabis facilities.

B. A cannabis distribution facility shall have adequate locked storage on the distribution facility property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the distribution facility property in secured rooms that are completely enclosed or in a safe that is bolted to the floor.

C. Cannabis and cannabis products shall be tracked utilizing the State track-and-trace system for cannabis and cannabis products.

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D. Records of distribution, both internal and as part of the State track-and-trace system, must be made available to enforcement officers upon request.

E. Cannabis distribution facilities shall ensure that appropriate samples of cannabis or cannabis products are tested by a permitted and licensed testing facility prior to distribution and shall maintain a copy of the test results in its files.

F. Cannabis distribution facilities shall not be open to the public.

G. Cannabis distribution facilities shall not transport or store non-cannabis goods.

H. Access to the cannabis distribution facility shall be restricted as follows:

1. No cannabis distribution permittee shall open their facility to the public.

2. No cannabis distribution permittee shall allow anyone on the distribution site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters.

3. A manager must be on site at the facility at all times when any other person, except for security guards, is on the site.

17.156.120 Cannabis cultivation.

A. No person owning, renting, leasing, occupying, or having charge or possession of any parcel shall cause or allow such parcel to be used for the outdoor cultivation of any cannabis plant, except as provided pursuant to Section 17.156.030.

B. Cannabis cultivation shall be limited to interior areas. No person owning, renting, leasing, occupying, or having charge or possession of any parcel shall cause or allow indoor cultivation of cannabis on such parcel to be visible from any street, sidewalk, or other place freely accessible by the public.

C. Plants cultivated shall be tracked utilizing the State track-and-trace system for cannabis and cannabis products.

D. Records of cultivation, both internal and as part of the State track-and-trace system, must be made available to enforcement officers upon request.

E. The cultivation site shall have a building with a main entrance that is visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas.

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F. All cultivation areas in any building on the cultivation site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee.

G. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation.

H. Any person cultivating cannabis with the use of grow lights, fans, ventilation devices, or any other electrical or mechanical equipment shall comply with all applicable building and fire code requirements adopted by the City of Lake Elsinore, and shall obtain all permits required for such installation.

I. No person shall conduct any retail sales of any goods or services on or from a permitted cultivation site unless a cannabis retail business has also been approved to operate in conjunction with the cultivation facility. Retail sales shall only occur within the cannabis retail business portion of the facility.

J. Access to the cannabis cultivation facility shall be restricted as follows:

1. No cannabis cultivation permittee shall open their facility to the public.

2. No cannabis cultivation permittee shall allow anyone on the cultivation site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters.

3. A manager must be on site at the facility at all times when any other person, except for security guards, is on the site.

17.156.130 Cannabis manufacturing.

A. Cannabis manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way.

B. Manufacturing facilities with a State license of a Type 6 (nonvolatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter.

C. All product manufacturing must conform to rules and requirements set forth by the California Department of Public Health for cannabis manufacturing, including those for testing, labeling, and quality assurance.

D. No person shall conduct any retail sales of any good or services on or from a permitted cannabis manufacturing site unless a cannabis retail business has also been approved to Ord. No. 2025-1504

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operate in conjunction with the manufacturing facility. Retail sales shall only occur within the cannabis retail business portion of the facility.

E. Rules, regulations, and local permitting requirements imposed on a manufacturer and its associated product manufacturing site by the City shall conform to the state licensing requirements for manufacturers, as set forth by the California Business and Professions Code, Division 10.

F. Access to the cannabis manufacturing facility shall be restricted as follows:

1. No cannabis manufacturing permittee shall open their facility to the public.

2. No cannabis manufacturing permittee shall allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters.

3. A manager must be on site at the facility at all times when any other person, except for security guards, is on the site.

17.156.140 Cannabis testing laboratory.

A. Cannabis testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis testing laboratory operations shall be visible from any public right-ofway.

B. All entrances into the building(s) of the cannabis testing laboratory site shall be locked at all times, with entry controlled by the cannabis testing laboratory permittee’s managers and staff.

The cannabis testing laboratory site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the testing areas.

C. All testing areas in any building of the cannabis testing laboratory site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee.

D. Each building with a testing area shall have an area designed for the secure transfer of cannabis from a vehicle to the testing area.

E. Each building with a testing area shall have adequate storage space for cannabis that has been tested or is waiting to be tested. The storage areas shall be separated from the main Ord. No. 2025-1504

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entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee.

F. No person shall conduct any retail sales of any goods or services on or from a permitted cannabis testing laboratory site.

G. Access to the cannabis testing facility shall be restricted as follows:

1. No cannabis testing permittee shall open their facility to the public.

2. No cannabis testing permittee shall allow anyone on the testing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters.

3. A manager must be on site at the facility at all times when any other person, except for security guards, is on the site.

17.156.150 Enforcement.

A. Violations of this chapter shall constitute a public nuisance and may be enforced according to the procedures set forth in Chapter 8.18 of the LEMC and by the enforcement remedies conferred upon the City by Civil Code Section 3494, Code of Civil Procedure Section 731, Government Code Section 38773, or other remedies provided by law, including injunctive relief. Nothing in this provision is intended to impair any viable legal defense to a person using or in possession of cannabis pursuant to the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time.

B. Each day a violation of this chapter continues constitutes a separate and distinct violation.

C. The remedies provided in this chapter are intended to be cumulative and may be used in lieu of or in conjunction with each other.

17.156.160 M-1 and M-2 district zones.

Should there be a conflict between the provisions of this chapter and Chapter 17.136 or 17.140 LEMC, this chapter shall control.

Section 6: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications ofthe Ordinance which canbegiveneffect without theinvalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable.

Section 7: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

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Section 8: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law.

Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 8th day of July 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2024-1504 was introduced by the City Council of the City of Lake Elsinore, California, at its Regular meeting of June 24, 2025, and adopted at its Regular meeting of July 8, 2025, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk
6) Second Reading of Ordinances Amending Development Agreements for Six Existing Cannabis Businesses to Revise the Community Benefit Fees

1. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

2. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-01) FOR ALBA SYSTEMS LOCATED AT 31879 CORYDON ROAD, UNIT 150 (APN: 370-051-025);

3. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-02) FOR LAKE ELSINORE INVESTMENT CORP (DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET APN: 377-220-021);

4. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-04) FOR GREEN ORIGINS LE (DBA THE SYNDICATE 1) LOCATED AT 504 CENTRAL AVENUE, BUILDING O APN: 377-420-002);

5. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-05) FOR IE LICENSING ( DBA THE SYNDICATE 2) LOCATED AT 31885 CORYDON ROAD, UNITS 130, 140, AND 150 (APN: 370-031-017, 370-031-018 AND 370-031-019); and

6. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-06) FOR THE HEALING TREE LOCATED AT 480 3RD STREET (APN: 377-140-033).

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: July 8, 2025
Subject: Second Reading of Ordinances Amending Development Agreements for Six Existing Cannabis Businesses to Revise the Community Benefit Fees Recommendation

1. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT (DA-2024-03) FOR MODERN LEAF CULTURE (DBA MODERN LEAF AND EMBR) LOCATED AT 31877 CORYDON ROAD, UNITS 120 AND 150 (APN: 370-051-016 AND 370-051-030);

2. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-01) FOR ALBA SYSTEMS LOCATED AT 31879 CORYDON ROAD, UNIT 150 (APN: 370-051-025);

3. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-02) FOR LAKE ELSINORE INVESTMENT CORP DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET (APN: 377-220-021);

4. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-04) FOR GREEN ORIGINS LE ( DBA THE SYNDICATE 1) LOCATED AT 504 CENTRAL AVENUE, BUILDING O (APN: 377-420-002); DA Ordinances – 2nd Readings

Page 2 of 2 ends

5. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT ( DA-2025-05) FOR IE LICENSING ( DBA THE SYNDICATE 2) LOCATED AT 31885 CORYDON ROAD, UNITS 130, 140, AND 150 (APN: 370-031-017, 370- 031-018 AND 370-031-019); and

6. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-06) FOR THE HEALING TREE LOCATED AT 480 3RD STREET (APN: 377-140-033).

Background/Discussion
At its Regular meeting on June 24, 2025, the City Council introduced by title only and waived further reading of all six Ordinances.

Attachments
Attachment 1 – Ordinance DA 2024-03
Attachment 2 – Ordinance DA 2025-01
Attachment 3 – Ordinance DA 2025-02
Attachment 4 – Ordinance DA 2025-04
Attachment 5 – Ordinance DA 2025-05
Attachment 6 – Ordinance DA 2025-06
City Clerk's Office
ORDINANCE NO. 2025-1504

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT DA-2024-03) FOR MODERN LEAF CULTURE (DBA MODERN LEAF AND EMBR) LOCATED AT 31877 CORYDON ROAD, UNITS 120 AND 150 (APN: 370-051-016 AND 370-051-030)
Whereas, Joshua Grant has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) Amendment No. 2024-03 (Exhibit A) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 31877 Corydon Road, Units 120 and 150 (APN: 370-051-016 and 370-051-030); Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process ( LEAP) and Joint Project Review ( JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 ( Development Agreements) of the Lake Elsinore Municipal Code (LEMC) the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on May 20, 2025, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2024-03; and Whereas, on June 24, 2025, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

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2. The project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines, as the Project is wholly located within an existing building and does not include any earth-disturbing activities. Therefore, Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

3. The project is consistent with the Protection of Narrow Endemic Plant Species Guidelines and the Additional Survey Needs and Procedures because the project is not located withinany Narrow Endemic Plant Species Survey Areas or Critical Species Survey Areas.

4. The project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 2: The Council hereby finds and determines that the project is categorically exempt from California Environmental Quality Act ( Cal. Publ. Res. Code §§ 21000 et seq.

CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 ( Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’s development agreement would not result in new construction, additional square footage, or expansion of the existing use.

Section 3: That in accordance with California Planning and Zoning Law and Section

19.12.080.B of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2024-03:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial ( LI). The proposed project is consistent the LI land use designation and with the objectives, policies, general land uses and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Limited Industrial ( LI) General Plan Land use designation and the Limited Manufacturing ( M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare and good land use practices.

The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development Ord. No. 2025-1504

Page 3 of 4 ends

agreement amendment will ensure the cannabis facility continues to have beneficial impacts to the surrounding community. Furthermore, the project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects.

4. It will not be detrimental to the health, safety, and general welfare.

The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operating without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

5. It will not adversely affect the orderly development of property or the preservation of property values.

The cannabis facility is an existing business that has been operation without land use issues and has not caused adverse impacts for existing businesses and future developments. The proposed development agreement amendment will ensure the cannabis facility continues to operate as such.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

The proposed development agreement amendment includes all mandatory provisions required by Government Code § 65865.2 and does not include any provisions that are not authorized by the Development Agreement Act.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-03 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this Ordinance.

Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law.

Ord. No. 2025-1504

Page 4 of 4 ends

Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 8th day of July 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

EXHIBIT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
Space Above Line For Recorder’ s Use Only)
Exempt from Recording Fees Per Gov. Code § 27383)

SECOND AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND

MODERN LEAF CULTURE, INC
Approved July 9, 2025
Ordinance No. 2025-_____
temp_903E10. docx - 1-

SECOND AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND MODERN LEAF CULTURE, INC.

This Second Amendment to Development Agreement (“ Second Amendment”), dated for identification only as of July 1, 2025, is made by and between the City of Lake Elsinore, a California municipal corporation (“ City”), and Modern Leaf Culture, Inc., a California corporation Developer”). This Amendment shall take effect on the “ Amendment Effective Date,” as this term is hereafter defined. City and Developer may each be referred to herein individually as a Party” or collectively as the “Parties.”

RECITALS
A. On January 8, 2019, pursuant to Ordinance No. 2019-1399, the City approved and adopted that certain “ Development Agreement by and between the City of Lake Elsinore and Modern Leaf Culture, Inc.,” which Development Agreement was recorded on October 3, 2022 in the Official Records of Riverside County, California as Instrument No. 2022- 0416273 ( the Development Agreement”).

B. On December 8, 2020, pursuant to Ordinance No. 2020- 1440, the City approved and adopted that certain, the City approved and adopted that certain “ First Amendment To Development Agreement by and between the City of Lake Elsinore and Modern Leaf Culture, Inc.,” which Development Agreement was recorded on December 1, 2022 in the Official Records of Riverside County, California as Instrument No. 2022- 0489050 ( the “ First Amendment”).

C. In connection with the Developer Agreement and the First Amendment, Developer acquired an equitable interest in that certain real property located at 31877 Corydon Road, Suite 120, in the City of Lake Elsinore, County of Riverside, State of California, Assessor Parcel Number 370- 051- 016 which is within a manufacturing zoning district ( the “ Site”).

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

E. The total Cannabis Retail Business Floor Area (as defined below) is [ ] sq. ft. The total Non- Retail Cannabis Business Floor Area ( as defined below) is [ ] sq. ft. The Floor Plan depicting the total floor area is attached hereto as Exhibit C.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, Joshua Grant and the owner of the Suite 150 Site, Proventure LLC.

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

H. Developer uses the Site for a Cannabis Business in accordance with California Cannabis Laws and the LEMC, as each may be amended from time to time (the “Project”). 2-
I. On July 9, 2025, the City Council approved Ordinance No. 2025-____ amending the Lake Elsinore Municipal Code (“ LEMC”) Chapter 17.156 to: (i) streamline the regulation of cannabis- related business; ( ii) to limit the number of cannabis- related business in the City.

J. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code section 65864 et seq. (the “ Development Agreement Statute”), which authorizes the City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property that is subject to a development agreement application.

K. Consistent with the requirements of the Development Agreement Statute, the City adopted LEMC, Chapter 19.12 (“ Development Agreement Ordinance”), authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City along with amendments thereto. LEMC, Section 19.12.020, provides for amendments to a development agreement “ is the same as the procedure for entering into an agreement in the first instance.” LEMC, Section 19.12.010 requires submittal of an application along with information and supporting data as requested by the Director of Community Development for consideration of any development agreement. Developer has satisfied this requirement.

L. On May 20, 2025, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider the application for this Second Amendment and recommended to the City Council approval of this Amendment.

M. On June 24, 2025, the City Council held a duly noticed public hearing to consider this Second Amendment and found and determined that this Second Amendment: ( a) is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan and any applicable specific plan; ( b) is compatible with the uses authorized in, and the regulations prescribed for the Site and the surrounding area and will not adversely affect the orderly development of the Site or the preservation of property values; ( c) is in conformity with public convenience, general welfare, and good land use practices; (d) will have an overall positive effect on the health, safety and welfare of the residents of and visitors to the City; and ( e) constitutes a lawful, present exercise of the City’s police power and authority under the Development Agreement Statute and Development Agreement Ordinance.

N. Based on the findings set forth in Recital L herein, the City Council entered into this Amendment pursuant to and in compliance with the requirements of the Development Agreement Statute and the Development Agreement Ordinance; and did, therefore, in approving this Amendment introduce for first reading Ordinance No. 2025-___ (the “Enabling Ordinance”).

On July 9, 2025, the City Council conducted the second reading of the Enabling Ordinance, thereby approving this Amendment to become effective thirty (30) days after the adoption thereof.

NOW, THEREFORE, in consideration of the mutual terms, obligations, promises, covenants, and conditions contained herein and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties, and each of them, agree as follows:
3-
SECTION 1. EXHIBITS
The Development Agreement has attached to it four exhibits designated alphabetically as Exhibit A through Exhibit D. Exhibits A through D of the Development Agreement shall remain in full force and effect except to the extent that the provisions of this Section 1 of the Second Amendment modify those Exhibits.

The following documents are referred to in this Second Amendment, attached hereto and incorporated herein by this reference:

Exhibit A Legal Description
Exhibit B Site Plan1
Exhibit C Floor Plan1
Exhibit D Property Owner’ s Consent
1 The Approved Site Plan and Floor Plan exhibits are on file as a public record and available for review at the City of Lake Elsinore’ s City Clerk’ s Office located at 130 South Main Street, Lake Elsinore, CA 92530.

SECTION 2. REVISIONS TO DEFINITIONS
The words and phrases used in this Second Amendment as defined terms shall have the meaning set forth in Section 2 of the Development Agreement, except as added and/ or modified below, which defined terms shall be applicable to both the Development Agreement and the Second Amendment.

Amendment Effective Date” means the later of: (i) the latest date of execution shown on the signature page hereto; or ( ii) the Effective Date of the Enabling Ordinance. The Amendment Effective Date does not amend the Effective Date as defined in the Development Agreement, nor does the Amendment Effective Date modify or change the “ Term” or the “ Term Commencement Date.”
Cannabis Business License” or “ Cannabis Business Permit” means the City license established and authorized by LEMC, Section 17.156.080, authorizing permissible Cannabis Business activity, which can only be issued upon City approval of a conditional use permit, development agreement, and Additional City Approvals for each proposed Cannabis Business activity project.

Conditional Use Permit” means Conditional Use Permit No. ____-__ issued by the City to Developer pertaining to Developer’ s original development of the Project and any subsequent amendments thereto. In the event that an amendment to the Conditional Use Permit pertaining to the Suite G Site has not been issued to the Developer as of the Amendment Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of any amendment to the Conditional Use Permit. 4-
Development Regulations” means the following regulations as they are in effect as of the Effective Date and to the extent they govern or regulate the development of the Site, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Effective Date that impairs or restricts Developer’ s rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Developer in writing: the City’s General Plan; any existing Specific Plan that include the Site, and, to the extent not expressly superseded by this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Site during the Term of this Agreement that are set forth in Title 16 of the LEMC ( Subdivisions), Title 17 of the LEMC ( Zoning), except that Chapter 17.156 of Title 17 shall be as amended by Ordinance No. 2025-___, and Title 19 of the LEMC Development). Notwithstanding the foregoing, the term “ Development Regulations,” as used herein, does not include any City ordinance, resolution, code, rule, regulation, or official policy governing any of the following: ( i) the conduct of businesses, professions, and occupations; ( ii) taxes and assessments; ( iii) the control and abatement of nuisances; ( iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; ( v) the exercise of the power of eminent domain; or ( vi) the California Building Standards Codes.

Cannabis Retail Business Floor Area” means interior gross floor area allocated and dedicated to the retail operation of a Cannabis Retail Business and shall include but not limited to reception or entrance lobby area for customer check-in, retail product storage room(s), office(s), and other ancillary area( s) to support the retail operation ( including cannabis delivery).

Cannabis Non-Retail Business Floor Area” means interior gross floor area allocated and dedicated to the cannabis non- retail operation( s) of a Cannabis Non- Retail Business, such as cultivation, distribution, manufacturing, and/or testing laboratory, and shall include but not limited to storage room( s) of finished and raw products, office( s), and other ancillary area( s) to support the non-retail operation(s).

SECTION 3. REVISIONS TO GENERAL PROVISIONS
In order to update certain renumbering of the Lake Elsinore Municipal Code, subparts e and f of Section 1.8 of the Development Agreement entitled Termination are hereby amended to read as follows.
e. abandonment of the Developer’ s Conditional Use Permit pursuant to LEMC, Section 17.415.070(D), including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit;
f. suspension or revocation of Developer’ s Conditional Use Permit pursuant to LEMC, Section 17.415.070(G);
In order to address the potential for Developer modifications to the square footage of area allocated to the Cannabis Retail Business and/or Cannabis Non-Retail Business, Section 1.9(a) of 5-
the Development Agreement entitled Operating Memoranda; Amendment of Agreement is hereby amended to read as follows.
a. Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and the Developer. The Development of the Developer Property may demonstrate that clarifications to this Agreement and the Existing Land Use Regulations are appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law, the Developer shall retain a certain degree of flexibility as provided herein with respect to all matters, items and provisions covered in general under this Agreement, except for those which relate to the ( i) term; or (ii) permitted uses. When and if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications to matters, items or provisions not enumerated in (i) through ( ii) above, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda ( the “ Operating Memoranda”) approved by the Parties in writing which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore public notices and hearings shall not be required. The City Manager shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to this Agreement which requires compliance with the provisions of Section 1.9(b) below. The Parties agree that proposed changes to the Cannabis Retail Business Floor Area and/ or the Cannabis Non- Retail Business Floor Area may be addressed by way of an Operating Memoranda and shall generally include and be evidenced by an updated Floor Plan ( Exhibit C) reflecting such changes.

SECTION 4. REVISIONS TO COMMUNITY BENEFITS FEE
Section 4.2 of the Development Agreement entitled Community Benefits Fee is hereby amended to add the following subparts c and d:
c. Community Benefits Fee Upon the Amendment Effective
Date. Notwithstanding subparts ( a) and ( b) above, concurrent with the Amendment Effective Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to the following fee schedule:
6-
All Cannabis Business
activities
insert rate as of 6/30/25] per square foot
of area allocated to the Cannabis Retail
Business with an annual 4% increase but
in no event to exceed $ 25 per square foot;
and
5 per square foot of area allocated to
Cannabis Non- Retail Business with no
annual increase as provided in subpart d.

Developer may elect to make payments of the Community Benefit Fee due on the Amendment Effective Date and each Adjustment Date (as defined herein) in up to 12 (monthly) equal installments, the first installment to be made on the Amendment Effective Date or Adjustment Date, as applicable. Installment payment plans shall be evidenced by separate agreements of the Parties.
d. Annual Increase. In order to account for the increasing cost of providing City services, the Community Benefits Fee set forth in Section 4.2(c) for any Cannabis Retail Business shall be increased annually commencing on each anniversary of the Amendment Effective Date ( each of which day shall be continued to be referred to as an “Adjustment Date”) until said fee reaches $25 per square foot of Floor Area. Each Adjustment Date shall be continued to be numbered in sequence (e.g., Third Adjustment Date, Fourth Adjustment Date, etc.).

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

4.5 Tax Payment and Facility Payment Offset.
a. In the event that the voters of the City of Lake Elsinore approve a Cannabis business tax or any percentage of gross receipts based fee, Developer shall pay the amount established by any such measure or initiative (“ Tax Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Tax Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied. b. In the event that the voters of the City of Lake Elsinore or the City Council approve a fee based on the square footage of premises where permitted commercial cannabis activities, Developer shall pay the amount 7-
established thereby (“ Facility Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Facility Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied.
c. Imposition of a Tax Payment and/or a Facility Payment obligation by the City or the voters of the City of Lake Elsinore shall not relieve Developer of its obligation to pay the Community Benefit Fee except for the offset as set forth in Sections 4.5.a, 4.5.b, 4.5.c, and 4.5.d above.

SECTION 5. ADDITIONAL PROVISIONS

5.1 Release. In consideration for this Second Amendment and the provisions as set forth herein, and subject to the City Council approving/adopting this Second Amendment Developer, on behalf of itself and its respective successors, assigns, officials, directors, officers, employees, insurers, lenders, lien holders, attorneys, agents, and other representatives, do hereby release the City as any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including attorney’ s fees, of any nature whatsoever, known or unknown, fixed or contingent as of the Amendment Effective Date.

5.2 Counterparts. This Second Amendment may be executed in counterparts, each of which so executed shall be deemed an original, and such counterparts together shall constitute but one Second Amendment.

5.3 No Other Changes. Except as modified by this Second Amendment, the terms and conditions of the Original Development Agreement, remain in full force and effect and shall be incorporated as a part of and interpreted as one integrated agreement covering the subjects included therein. If there are any conflicts between the provisions of this Second Amendment and the original Development Agreement, the provisions of this Second Amendment shall control.

5.4 Recordation by City Clerk. Pursuant to Government Code Section 65868. 5, within ten (10) days of execution of this Second Amendment by the Parties, the City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to Government Code Section 65868.5, the burdens of the Second Amendment shall be binding upon, and the benefits of the agreement shall inure to, all successors in interest to the Parties to the Second Amendment.

SIGNATURES ON NEXT PAGE]
temp_903E10. docx - 8-
IN WITNESS WHEREOF, the Parties have executed this Second Amendment as of the dates set forth below.

CITY”

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
DEVELOPER”
MODERN LEAF CULTURE, INC.,
a California corporation
Date: By:

Robert McKinley
Its: Chief Executive Officer
Date: By:

Brian Horrigan, Secretary
temp_903E10. docx

STATE OF CALIFORNIA )
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person( s) whose name( s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity( ies), and that by his/her/their signature( s) on the instrument the person( s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

Signature of Notary
Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Original Site
A CONDOMINIUM COMPRISING INTEREST IN UNIT # F-2 AS SHOWN ON THE CONDOMINIUM PLAN RECORDED ON JUNE 2, 2005, AS INSTRUMENT NUMBER 2005- 0441925 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (“ PLAN”) AND AS

FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003 INSTRUMENT NUMBER 2003- 592581 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND AS

AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005-0423404 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS ( COLLECTIVELY, THE “ DECLARATION”), WHICH CONDOMINIUM IS LOCATED ON THE REAL PROPERTY DESCRIBED AS PARCEL 2 AS SHOWN BY RECORD OF SURVEY ON FILE IN BOOK 73 PAGE 44 OF RECORDS OF SURVEY, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE DECLARATION.

FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON THE

PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT ABOVE AND

THE ASSOCIATION COMMON AREA OR COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN.

APN: 370- 051- 016- 7
temp_903E10. docx EXHIBIT A
Suite 150 Site
A CONDOMINIUM COMPRISING INTEREST IN UNIT # H-5 AS SHOWN ON THE CONDOMINIUM PLAN RECORDED ON JUNE 2, 2005, AS INSTRUMENT NUMBER 2005- 0441925 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (“ PLAN”) AND AS

FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003 AS INSTRUMENT NUMBER 2003-592581 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND AS

AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005- 0423404 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS ( COLLECTIVELY, THE “ DECLARATION”), WHICH CONDOMINIUM IS LOCATED ON THE REAL PROPERTY DESCRIBED AS PARCEL 2 AS SHOWN BY RECORD OF SURVEY ON FILE IN BOOK 73 PAGE 44 OF RECORDS OF SURVEY, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE DECLARATION.

FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON THE

PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT DESCRIBED

ABOVE AND THE ASSOCIATION COMMON AREA OR COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN.

APN: 370-051-030-9

EXHIBIT B

SITE PLAN
TO BE INSERTED]

EXHIBIT C

FLOOR PLAN
Delineated to Show Cannabis Retail Business Area versus Non- Retail Area( s)] TO BE INSERTED]
temp_903E10. docx EXHIBIT D

EXHIBIT D
PROPERTY OWNER’S CONSENT
ATTACHED]

EXHIBIT D
PROPERTY OWNER’ S CONSENT
PROPERTY OWNER’ S CONSENT
a California ________________, being the owner of the real properties described in Exhibit A to this ____________ Amendment to Development Agreement by and between the City of Lake Elsinore and ______________________, dated for identification as of ________________, 2025 ( the “________ Amendment”), do hereby consent to the recordation of said ____________ Amendment in the Official Records of the County of Riverside. a ___________________
Date: By:

Its: ____________
notary required]

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

ORDINANCE NO. 2025-1505

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT DA-2025-01) FOR ALBA SYSTEMS LOCATED AT 31879 CORYDON ROAD, UNIT 150 (APN: 370-051-025)
Whereas, Gilbert Alba has filed an application with the City of Lake Elsinore ( City) requesting approval of Development Agreement (DA) Amendment No. 2025-01 (Exhibit A) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 31879 Corydon Suite 150 (APN: 370-051-025);
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process ( LEAP) and Joint Project Review ( JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC) the Planning Commission ( Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on May 20, 2025, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-01; and Whereas, on June 24, 2025, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

Ord. No. 2025-1505

Page 2 of 4 ends

2. The project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines as the Project is wholly located within an existing building and does not include any earth disturbing activities therefore Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

4. The project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 2: The Council hereby finds and determines that the project is categorically exempt from California Environmental Quality Act ( Cal. Publ. Res. Code §§21000 et seq.

CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 ( Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’ development agreement would not result in new construction, additional square footage, or expansion of the existing use.

Section 3: That in accordance with California Planning and Zoning Law and Section

19.12.080.B of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-01:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

3. It is in conformity with public convenience, general welfare and good land use practices.

The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development Ord. No. 2025-1505

Page 3 of 4 ends

4. It will not be detrimental to the health, safety and general welfare.

The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operation without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

5. It will not adversely affect the orderly development of property or the preservation of property values.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-01 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this Ordinance.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law.

Ord. No. 2025-1505

Page 4 of 4 ends

Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 8th day of July 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2024-1505 was introduced by the City Council of the City of Lake Elsinore, California, at its Regular meeting of June 24, 2025, and adopted at its Regular meeting of July 8, 2025, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

EXHIBIT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
Space Above Line For Recorder’ s Use Only)
Exempt from Recording Fees Per Gov. Code § 27383)

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND
ALBA CANNABIS SYSTEMS ( ACS) L.L.C.

Approved July 9, 2025
Ordinance No. 2025-_____
1-

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ALBA CANNABIS SYSTEMS (ACS) L.L.C.

This First Amendment to Development Agreement (“ First Amendment”), dated for identification only as of July 1, 2025, is made by and between the City of Lake Elsinore, a California municipal corporation (“ City”), and ALBA Cannabis Systems ( ACS) L.L.C., a California limited liability company (“ Developer”). This Amendment shall take effect on the Amendment Effective Date,” as this term is hereafter defined. City and Developer may each be referred to herein individually as a “ Party” or collectively as the “Parties.”

RECITALS
A. On January 8, 2019, pursuant to Ordinance No. 2019-1398, the City approved and adopted that certain “ Development Agreement by and between the City of Lake Elsinore and ALBA Cannabis Systems (ACS) L.L.C.,” which Development Agreement was recorded on March 6, 2023 in the Official Records of Riverside County, California as Instrument No. 2023- 0063560 the “ Development Agreement”).

B. In connection with the Developer Agreement, Developer acquired an equitable interest in that certain real property located at 31879 Corydon Street, Suite 150 in the City of Lake Elsinore, County of Riverside, State of California, Assessor Parcel Number 370- 051- 025, which is within a manufacturing zoning district (the “Site”).

C. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

D. The total Cannabis Retail Business Floor Area ( as defined below) is [ ] sq. ft. The total Non-Retail Cannabis Business Floor Area (as defined below) is [ ] sq. ft. The Floor Plan depicting the total floor area is attached hereto as Exhibit C.

E. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, Gilbert Antonio Alba.

F. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

G. Developer uses the Site for a Cannabis Business in accordance with California Cannabis Laws and the LEMC, as each may be amended from time to time ( the “ Project”).

H. On July 9, 2025, the City Council approved Ordinance No. 2025-____ amending the Lake Elsinore Municipal Code (“ LEMC”) Chapter 17.156 to: (i) streamline the regulation of cannabis-related business; (ii) to limit the number of cannabis-related business in the City.

I. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code section 65864 et seq. (the “ Development Agreement Statute”), which 2-
authorizes the City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property that is subject to a development agreement application.

J. Consistent with the requirements of the Development Agreement Statute, the City adopted LEMC, Chapter 19.12 (“ Development Agreement Ordinance”), authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City along with amendments thereto. LEMC, Section 19.12.020, provides for amendments to a development agreement “ is the same as the procedure for entering into an agreement in the first instance.” LEMC, Section 19.12.010 requires submittal of an application along with information and supporting data as requested by the Director of Community Development for consideration of any development agreement. Developer has satisfied this requirement.

K. On May 20, 2025, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider the application for this First Amendment and recommended to the City Council approval of this Amendment.

L. On June 24, 2025, the City Council held a duly noticed public hearing to consider this First Amendment and found and determined that this First Amendment: ( a) is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan and any applicable specific plan; ( b) is compatible with the uses authorized in, and the regulations prescribed for the Site and the surrounding area and will not adversely affect the orderly development of the Site or the preservation of property values; ( c) is in conformity with public convenience, general welfare, and good land use practices; (d) will have an overall positive effect on the health, safety and welfare of the residents of and visitors to the City; and ( e) constitutes a lawful, present exercise of the City’s police power and authority under the Development Agreement Statute and Development Agreement Ordinance.

M. Based on the findings set forth in Recital L herein, the City Council entered into this Amendment pursuant to and in compliance with the requirements of the Development Agreement Statute and the Development Agreement Ordinance; and did, therefore, in approving this Amendment introduce for first reading Ordinance No. 2025-___ ( the “ Enabling Ordinance”).

On July 9, 2025, the City Council conducted the second reading of the Enabling Ordinance, thereby approving this Amendment to become effective thirty ( 30) days after the adoption thereof.

SECTION 1. EXHIBITS
The Development Agreement has attached to it four exhibits designated alphabetically as Exhibit A through Exhibit D. Exhibits A through D of the Development Agreement shall remain in full force and effect except to the extent that the provisions of this Section 1 of the First Amendment modify those Exhibits.
3-
The following documents are referred to in this First Amendment, attached hereto and incorporated herein by this reference:

Exhibit A Legal Description
Exhibit B Site Plan1
Exhibit C Floor Plan1
Exhibit D Property Owner’s Consent
1 The Approved Site Plan and Floor Plan exhibits are on file as a public record and available for review at the City of Lake Elsinore’ s City Clerk’ s Office located at 130 South Main Street, Lake Elsinore, CA 92530.

SECTION 2. REVISIONS TO DEFINITIONS
The words and phrases used in this First Amendment as defined terms shall have the meaning set forth in Section 2 of the Development Agreement, except as added and/or modified below, which defined terms shall be applicable to both the Development Agreement and the First Amendment.

Amendment Effective Date” means the later of: (i) the latest date of execution shown on the signature page hereto; or (ii) the Effective Date of the Enabling Ordinance. The Amendment Effective Date does not amend the Effective Date as defined in the Development Agreement, nor does the Amendment Effective Date modify or change the “ Term” or the “ Term Commencement Date.”
Cannabis Business License” or “ Cannabis Business Permit” means the City license established and authorized by LEMC, Section 17.156.080, authorizing permissible Cannabis Business activity, which can only be issued upon City approval of a conditional use permit, development agreement, and Additional City Approvals for each proposed Cannabis Business activity project.

Development Regulations” means the following regulations as they are in effect as of the Effective Date and to the extent they govern or regulate the development of the Site, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Effective Date that impairs or restricts Developer’ s rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Developer in writing: the City’s General Plan; any existing Specific Plan that include the Site, and, to the extent not expressly superseded by this Agreement, all other land use 4-
and subdivision regulations governing the permitted uses, density and intensity of use for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Site during the Term of this Agreement that are set forth in Title 16 of the LEMC (Subdivisions), Title 17 of the LEMC (Zoning), except that Chapter 17.156 of Title 17 shall be as amended by Ordinance No. 2025-___, and Title 19 of the LEMC Development). Notwithstanding the foregoing, the term “ Development Regulations,” as used herein, does not include any City ordinance, resolution, code, rule, regulation, or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; ( iii) the control and abatement of nuisances; ( iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; ( v) the exercise of the power of eminent domain; or ( vi) the California Building Standards Codes.

Cannabis Retail Business Floor Area” means interior gross floor area allocated and dedicated to the retail operation of a Cannabis Retail Business and shall include but not limited to reception or entrance lobby area for customer check- in, retail product storage room( s), office( s), and other ancillary area(s) to support the retail operation (including cannabis delivery).

Cannabis Non- Retail Business Floor Area” means interior gross floor area allocated and dedicated to the cannabis non-retail operation(s) of a Cannabis Non-Retail Business, such as cultivation, distribution, manufacturing, and/ or testing laboratory, and shall include but not limited to storage room(s) of finished and raw products, office(s), and other ancillary area(s) to support the non- retail operation( s).

SECTION 3. REVISIONS TO GENERAL PROVISIONS
In order to update certain renumbering of the Lake Elsinore Municipal Code, subparts e and f of Section 1.8 of the Development Agreement entitled Termination are hereby amended to read as follows.
e. abandonment of the Developer’ s Conditional Use Permit pursuant to LEMC, Section 17.415. 070( D), including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit;
f. suspension or revocation of Developer’ s Conditional Use Permit pursuant to LEMC, Section 17.415. 070( G);
In order to address the potential for Developer modifications to the square footage of area allocated to the Cannabis Retail Business and/or Cannabis Non-Retail Business, Section 1.9(a) of the Development Agreement entitled Operating Memoranda; Amendment of Agreement is hereby amended to read as follows.
a. Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and the Developer. The Development of the Developer Property may demonstrate that clarifications to this Agreement and the Existing Land Use Regulations are appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law, the 5-
Developer shall retain a certain degree of flexibility as provided herein with respect to all matters, items and provisions covered in general under this Agreement, except for those which relate to the ( i) term; or ( ii) permitted uses. When and if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications to matters, items or provisions not enumerated in ( i) through ( ii) above, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda ( the “ Operating Memoranda”) approved by the Parties in writing which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore public notices and hearings shall not be required. The City Manager shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to this Agreement which requires compliance with the provisions of Section 1.9(b) below. The Parties agree that proposed changes to the Cannabis Retail Business Floor Area and/or the Cannabis Non-Retail Business Floor Area may be addressed by way of an Operating Memoranda and shall generally include and be evidenced by an updated Floor Plan (Exhibit C) reflecting such changes.

All Cannabis Business
activities
insert rate as of 6/30/25] per square foot
of area allocated to the Cannabis Retail
Business with an annual 4% increase but
in no event to exceed $ 25 per square foot;
and
5 per square foot of area allocated to
Cannabis Non- Retail Business with no
annual increase as provided in subpart d.

Developer may elect to make payments of the Community Benefit Fee due on the Amendment Effective Date and each Adjustment Date (as defined herein) in up to 12 (monthly) equal installments, the first installment to be made on the Amendment Effective Date or Adjustment Date, as applicable. Installment payment plans shall be evidenced by separate agreements of the Parties.
6-
d. Annual Increase. In order to account for the increasing cost of providing City services, the Community Benefits Fee set forth in Section 4.2(c) for any Cannabis Retail Business shall be increased annually commencing on each anniversary of the Amendment Effective Date ( each of which day shall be continued to be referred to as an “ Adjustment Date”) until said fee reaches $ 25 per square foot of Floor Area. Each Adjustment Date shall be continued to be numbered in sequence ( e.g., Third Adjustment Date, Fourth Adjustment Date, etc.).

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non- Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

4.5 Tax Payment and Facility Payment Offset.
a. In the event that the voters of the City of Lake Elsinore approve a Cannabis business tax or any percentage of gross receipts based fee, Developer shall pay the amount established by any such measure or initiative (“Tax Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Tax Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied. b. In the event that the voters of the City of Lake Elsinore or the City Council approve a fee based on the square footage of premises where permitted commercial cannabis activities, Developer shall pay the amount established thereby (“ Facility Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Facility Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied.
c. Imposition of a Tax Payment and/or a Facility Payment obligation by the City or the voters of the City of Lake Elsinore shall not relieve Developer of its obligation to pay the Community Benefit Fee except for the offset as set forth in Sections 4.5.a, 4.5.b, 4.5.c, and 4.5.d above.

SECTION 5. ADDITIONAL PROVISIONS

5.1 Release. In consideration for this First Amendment and the provisions as set forth herein, and subject to the City Council approving/adopting this First Amendment Developer, on behalf of itself and its respective successors, assigns, officials, directors, officers, 7-
employees, insurers, lenders, lien holders, attorneys, agents, and other representatives, do hereby release the City as any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including attorney’ s fees, of any nature whatsoever, known or unknown, fixed or contingent as of the Amendment Effective Date.

5.2 Counterparts. This First Amendment may be executed in counterparts, each of which so executed shall be deemed an original, and such counterparts together shall constitute but one First Amendment.

5.3 No Other Changes. Except as modified by this First Amendment, the terms and conditions of the Original Development Agreement, remain in full force and effect and shall be incorporated as a part of and interpreted as one integrated agreement covering the subjects included therein. If there are any conflicts between the provisions of this First Amendment and the original Development Agreement, the provisions of this First Amendment shall control.

5.4 Recordation by City Clerk. Pursuant to Government Code Section 65868.5, within ten ( 10) days of execution of this First Amendment by the Parties, the City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to Government Code Section 65868. 5, the burdens of the First Amendment shall be binding upon, and the benefits of the agreement shall inure to, all successors in interest to the Parties to the First Amendment.

SIGNATURES ON NEXT PAGE]
temp_2AC597. docx - 8-
IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the dates set forth below.

CITY”

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
DEVELOPER”
ALBA Cannabis Systems (ACS) L.L.C.,
a California limited liability company
Date: By:

Gilbert Antonio Alba,
Its: Managing Member

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

A CONDOMINIUM COMPRISING INTEREST IN UNIT# G-5 AS SHOWN ON THE CONDOMINIUM PLAN RECORDED ON JUNE 2, 2005, AS INSTRUMENT NUMBER 2005- 0441925 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS (“ PLAN”) AND AS

FURTHER DESCRIBED IN THE DECLARATION OF RESTRICTIONS FOR INDUSTRIAL CONDOMINIUM OWNERSHIP RECORDED ON AUGUST 5, 2003 INSTRUMENT NUMBER 2003-592581 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS AND AS

AMENDED IN THE FIRST AMENDMENT OF DECLARATION OF RESTRICTIONS FOR BLUE LAKE CONDOMINIUM OWNERSHIP RECORDED ON MAY 27, 2005 AS INSTRUMENT NUMBER 2005- 0423404 IN THE RIVERSIDE COUNTY OFFICIAL RECORDS ( COLLECTIVELY, THE “ DECLARATION”), WHICH CONDOMINIUM IS LOCATED ON THE REAL PROPERTY DESCRIBED AS PARCEL 2 AS SHOWN BY RECORD OF SURVEY ON FILE IN BOOK 73 PAGE 44 OF RECORDS OF SURVEY, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

EXCEPTING THEREFROM AND RESERVING EASEMENTS AS DEFINED IN THE DECLARATION.

FURTHER EXCEPTING THEREFROM ALL NUMBERED CONDOMINIUM UNITS ON THE

PLAN AND DESCRIBED IN THE DECLARATION OTHER THAN THE UNIT CONVEYED

ABOVE AND THE ASSOCIATION COMMON AREA OR COMMON AREA AS DEFINED IN THE DECLARATION OR SHOWN ON THE PLAN.

APN 370- 051- 025]
temp_2AC597. docx EXHIBIT B

EXHIBIT B

SITE PLAN
TO BE INSERTED]
temp_2AC597. docx EXHIBIT C

EXHIBIT C

FLOOR PLAN
Delineated to Show Cannabis Retail Business Area versus Non- Retail Area( s)] TO BE INSERTED]
temp_2AC597. docx EXHIBIT D

EXHIBIT D
PROPERTY OWNER’S CONSENT
ATTACHED]

EXHIBIT D
PROPERTY OWNER’ S CONSENT
PROPERTY OWNER’ S CONSENT
Gilbert A. Alba, being the owner of the real properties described in Exhibit A to this First Amendment to Development Agreement by and between the City of Lake Elsinore and ALBA CANNABIS SYSTEMS ( ACS) L.L.C., dated for identification as of ________________, 2025 the “ First Amendment”), do hereby consent to the recordation of said First Amendment in the Official Records of the County of Riverside.

ACS LLC
a ___________________
Date: By:

Gilbert A. Alba,
Its: ____________
notary required]
temp_2AC597. docx

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

ORDINANCE NO. 2025-1506

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT DA-2025-02) FOR LAKE ELSINORE COMMUNITY INVESTMENT CORP ( DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET (APN: 377-220-021) Whereas, Joseph Martin has filed an application with the City of Lake Elsinore ( City) requesting approval of Development Agreement (DA) Amendment No. 2025-02 (Exhibit A) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 311 W Minthorn Street (APN: 377-220-021);
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 ( Development Agreements) of the Lake Elsinore Municipal Code (LEMC) the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on May 20, 2025, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-02; and Whereas, on June 24, 2025, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

Ord. No. 2025-1506

Page 2 of 4 ends

6.3.1 of the MSHCP are not applicable.

4. The project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 2: The Council hereby finds and determines that the project is categorically exempt from California Environmental Quality Act ( Cal. Publ. Res. Code §§ 21000 et seq.

CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 ( Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’ development agreement would not result in new construction, additional square footage, or expansion of the existing use.

Section 3: That in accordance with California Planning and Zoning Law and Section

19.12.080.B of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-02:

1. It is consistent with the objectives, policies, general land uses, and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial ( LI). The proposed project is consistent with the LI land use designation and with the objectives, policies, general land uses, and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

3. It is in conformity with public convenience, general welfare and good land use practices.

The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development Ord. No. 2025-1506

Page 3 of 4 ends

4. It will not be detrimental to the health, safety and general welfare.

The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operation without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

5. It will not adversely affect the orderly development of property or the preservation of property values.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-02 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this Ordinance.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law.

Ord. No. 2025-1506

Page 4 of 4 ends

Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 8th day of July 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2024-1506 was introduced by the City Council of the City of Lake Elsinore, California, at its Regular meeting of June 24, 2025, and adopted at its Regular meeting of July 8, 2025, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

EXHIBIT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
Space Above Line For Recorder’ s Use Only)
Exempt from Recording Fees Per Gov. Code § 27383)

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND

LAKE ELSINORE COMMUNITY INVESTMENT CORP
Approved July 9, 2025
Ordinance No. 2025-_____
1-

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE

AND LAKE ELSINORE COMMUNITY INVESTMENT CORP
This First Amendment to Development Agreement (“ First Amendment”), dated for identification only as of July 1, 2025, is made by and between the City of Lake Elsinore, a California municipal corporation (“ City”), and Lake Elsinore Community Investment Corp, a California corporation (“ Developer”). This Amendment shall take effect on the “ Amendment Effective Date,” as this term is hereafter defined. City and Developer may each be referred to herein individually as a “ Party” or collectively as the “Parties.”

RECITALS
A. On January 8, 2019, pursuant to Ordinance No. 2019-1403, the City approved and adopted that certain “ Development Agreement by and between the City of Lake Elsinore and Lake Elsinore Community Investment Corp,” which Development Agreement was recorded on September 10, 2020 in the Official Records of Riverside County, California as Instrument No. 2020-0425522 (the “ Development Agreement”).

B. In connection with the Developer Agreement, Developer acquired an equitable interest in that certain real property located at 311 W. Minthorn Street in the City of Lake Elsinore, County of Riverside, State of California, Assessor Parcel Numbers 377- 220- 003- 6, 377- 220- 019- 1 and 377-220-021-2, which is within a manufacturing zoning district (the “Site”).

C. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

E. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, Danette Leonard.

F. The Property Owner has provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

G. Developer uses the Site for a Cannabis Business in accordance with California Cannabis Laws and the LEMC, as each may be amended from time to time ( the “ Project”).

H. On July 9, 2025, the City Council approved Ordinance No. 2025-____ amending the Lake Elsinore Municipal Code (“ LEMC”) Chapter 17.156 to: (i) streamline the regulation of cannabis-related business; (ii) limit the number of cannabis-related businesses in the City.