City Council Meeting July 11, 2022
Item 5.3
Applicant is requesting a Conditional Use Permit and
Development Agreement to occupy approximately
2,000 sq. ft. tenant space for a retail cannabis
dispensary and delivery facility within an existing
multi-tenant building on a 0.83-acre site.
The cannabis dispensary will be located on the 1st
floor of the High 5 Plaza Building located on South
Harlan Road.
On November 8, 2021, City Council introduced an
Ordinance to amend the LMC to establish regulations and approve merit-based criteria for scoring commercial
cannabis applications.
On December 13, 2021, Ordinance No. 21-428 was passed and adopted, thereby amending the LMC to allow
regulation of commercial cannabis business operations in the City.
On February 14, 2022, City Council approved the issuance of a retail cannabis dispensary request for proposal.
On March 14, 2022, City Council was presented with one (1) timely response to the RFP from Central California
Greens, and subsequently selected Central California
Greens to proceed to the application process.
On April 18, 2022, Staff received an application and plans from Central California Greens for a Conditional Use Permit and Development Agreement.
On May 2, 2022, City Council provided direction on the terms of the Draft Development Agreement between the
City and Central California Greens.
The project will be staffed by one (1) armed security guard at all times. An additional security guard will be present during the delivery of cannabis products to the store.
At least one (1) employee will always be present on the sales floor area when customers are in the building. The number of customers will not exceed twice the number of employees at any given time.
The project will include indoor and outdoor security
cameras that are monitored by a 3rd party off-site. The camera footage will be made available to the City as
conditioned.
All cannabis goods are delivered in finished form (prepackaged) and stored in a completely enclosed and alarmed secured product storage area with limited
access by employees.
The project anticipates that cannabis products will be delivered to the business by licensed distributors one
(1) to four (4) times a week. The delivery of goods is
anticipated to be a locked crate and will be monitored
by a security guard, with an additional security guard
on site during delivery times.
Off-site delivery of cannabis products will be conducted during the hours of operation of the store (8:00 am to 9:00 pm).
All cannabis products are stored in the trunk of the vehicle or within a locked fully-enclosed cage that will be bolted to the vehicle for security purposes.
It is anticipated that two (2) delivery drivers will be hired for the proposed project. Central California Greens is
required to provide the City details of the vehicles (make, model, VIN number, etc.).
The Development Agreement will establish the following:
◦ An Advanced Payment of $79,165.50 to be paid within
sixty (60) days of the Effective Date of the Development Agreement; and
◦ A 2% fee of gross receipts from online sales and delivery sales and a 5% fee on on-site retail sales
The fee may be appropriated for any lawful purpose in the discretion of the City Council and may be devoted to 1) drug awareness programs; 2) recreational programs; 3)
public safety programs; and 4) programs to address food insecurity and hunger in the City.
Planning Commission voted 3-2 at their regular
meeting of June 15, 2022 recommending approval of
the proposed Conditional Use Permit and
Development Agreement.
Concern was raised related to the queuing system and
the outdoor check-in area.
Categorically Exempt according to the California
Environmental Quality Act Article 19 Section 15301
Class 1 “Existing Facilities”.
The proposed project is located within an existing
building on a 0.83-acre site. Site improvements such
as paving, lighting, landscaping, off-street parking,
and curb, gutter and sidewalk are fully developed.
Planning Commission and Staff recommend the City
Council:
Hold a public hearing, and
Adopt a Resolution Approving a Conditional Use
Permit for the Central California Greens project.
First Reading and Introduce an Ordinance to
Approve a Development Agreement Between the City
of Lathrop and Central California Greens, Inc.