CITYOF MENDOTA
ooCanttaloupe Center Of The World"
VICTOR MARTINEZ
Mayor
JOSE ALONSO
Mayor Pro Tempore
LIBE,RTAD "LIBERTY" LOPEZ
JESSE LUA MENDOZA
JOSEPH R. RIOFRIO
AGENDA
MENDOTA CITY COUNCIL
Regular City Council Meeting
City Council Chambers
725 Riofrio Street
Mendota, California 93640
April 15, 2025
6:00 PM
CRISTIAN GONZALEZ
City Manager
JOHN KINSEY
City Attorney
The Mendota City Councilwelcomes you to its meeting. Regular City Council meetings are scheduled for the first and third Tuesday of every month. Your interest and participation are encouraged and appreciated. Notice is hereby given that the City Council may discuss and/or take action on any or all of the items listed on this agenda. Please silence your cell phones. Thank you for your respect and consideration.
Any public writings distributed by the City of Mendota to at least a majority of the City Council regarding any item on this regular meeting agenda will be made available at the front counter at City Hall, located at 643 Quince Street Mendota, California 93640, during normal business hours: Monday through Friday from 8am - 5pm. ln compliance with the Americans with Disabilities Act, individuals requiring special assistance to participate at this meeting please contact the City Clerk at (559) 655-3291 or (559) 577-7692. Notification of at least 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to the meeting.
Si necesita servicios de interpretaci6n para participar en esta reuni6n, comuniquese con la Secretaria de la Ciudad al (559) 655-3291 o (559) 577-7692 entre las 8am y las Spm de lunes a viernes. La notificaci6n de al menos 24 horas antes de la reuni6n permitir6 al personal adoptar las disposiciones necesarias para garantizar su participaci6n en la reuni6n.
CALL TO ORDER
ROLL CALL
FLAG SALUTE
INVOCATION
FINALIZE THE AGENDA
1. Adjustments to Agenda
2. Adoption of final Agenda
MAYOR AND COUNCIL REPORTS AND INFORMATIONAL ITEMS
1. Council Member(s)
2. Mayor
City Council Agenda 1 April 15, 2025
643 Ouince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Fax: (559) 655-4064
TDD/[TY 866-735-2919 (English) TDD/[TY 866-833-4703 (Spanish) cityolmendota.com
The City ol Mendota is an equal opportunity prouider and employer
2. PUBLIC COMMENT
At this time, members of the public may address the City Council on any matter not listed on the agenda involving matters within the jurisdiction of the City Council. Please complete a "request to speak" form and limit your comments to THREE (3) MINUTES. Please give the completed form to the City Clerk prior to the start of the meeting. All speakers shall observe proper decorum. The Mendota Municipal Code prohibits the use of boisterous, slanderous, or profane language. All speakers must step to the podium and state their names and addresses for the record. Please watch the time.
APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING
1. Minutes of the regular City Council meeting of April 1,2025 Notice of waiving of the reading of all resolutions and/or ordinances introduced and/or adopted under this agenda.
CONSENT CALENDAR
Matters listed under the Consent Calendar are considered to be routine and will be enacted by one motion and one vote. There will be no separate discussion of these items. lf discussion is desired, that item will be removed from the Consent Calendar and will be considered separately.
MARCH 25, 2025 THROUGH APRIL 7 , 2025
A. WARRANT LIST CHECK NOS. 56166 THROUGH 56266
b. TOTAL FOR COUNCIL APPROVAI- = $866,510.40
Proposed ratification of a letter of support for Assembly Bill 36 (Soria): Streamlining Prohousing Designations.
Proposed ratification of a letter of support for Assembly Bill 457 (Soria):
Streamlining Farmworker Housing Development in Fresno, Madera, and Merced Counties.
Proposed ratification of a letter of support for lntersect Power in connection with the Darden Clean Energy Project.
CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Potential initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code section 54956.9 (one potential case).
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3 4
1 City Council Agenda 2 April 15, 2025
1 PUBLIG HEARING
Public hearing to review and consider the status of the Development Agreement default, entitlements, and termination of the Development Agreement with Odyssey Agricultural Development, LLC, Odyssey Agricultural Holdings, LLC, and Valley Agricultural Holdings, LLC.
a. Receive report from Assrstant City Attomey Castro
b. lnquiies from City Councilto staff
c. Mayor Martinez opens the public hearing
d. Once all comment has been received, Mayor Maftinez c/oses the public heaing
e. City Council provides input and takes action as appropriate Public hearing to conduct the annual review of performance under the Development Agreement with Odyssey Agricultural Development, LLC, Odyssey Agricultural Holdings, LLC, and Valley Agricultural Holdings, LLC. a. Receive repoft from Assistant City Attomey Castro
b. lnquiries from City Councilto staff
c. Mayor Martinez opens the public heaing
d. Once all comment has been received, Mayor Martinez c/oses the public hearing
e. City Council provides input and takes action as appropriate
DEPARTMENT REPORTS AND INFORMATIONAL ITEMS
Animal Control, Code Enforcement, and Police Department a) March Monthly Logs
City Attorney
City Manager
ADJOURNMENT
CERTIFICATION OF POSTING
l, Celeste Cabrera-Garcia, City Clerk of the City of Mendota, do hereby declare that the foregoing agenda for the Mendota City Council regular meeting of Tuesday, April 15, 2025, was posted on the outside bulletin board located at City Hall,643 Quince Street, Mendota, California 93640, and at the City Council Chambers located at 725 Riofrio Street, Mendota, California 93640, on Friday, April 11
Clerk
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2. 3.
City Council Agenda 3
2025 bv5 p
I 15,2025
Minutes of City Council Meeting 1 April 1, 2025
MINUTES OF MENDOTA
REGULAR CITY COUNCIL MEETING
Regular Meeting April 1, 2025
Meeting called to order by Mayor Martinez at 6:02 PM
Roll Call
Council Members Present: Mayor Victor Martinez and Council Members Libertad “Liberty” Lopez, and Jesus “Jesse”
Mendoza, and Joseph R. Riofrio
Council Members Absent: Mayor Pro Tem Jose Alonso
Flag salute led by Council Member Lopez
Invocation led by Police Chaplain Robert Salinas
FINALIZE THE AGENDA
1. Adjustments to Agenda.
2. Adoption of final Agenda.
A motion was made by Council Member Lopez to adopt the agenda, seconded by Council Member Riofrio; unanimously approved (4 ayes, absent: Alonso).
PRESENTATION
1. Billie Hansen with Mid Valley Disposal to provide an update and present the Recycler of the Year Award to Latino Market.
Billie Hansen with Mid Valley Disposal provided an update on their work and deferred to Fernando Botello who presented the Recycler of the Year Award to Latino Market.
Discussion was held on the information presented.
Minutes of City Council Meeting 2 April 1, 2025
MAYOR AND COUNCIL REPORTS AND INFORMATIONAL ITEMS
1. Council Member(s)
Council Member Riofrio commented on businesses in the City undergoing renovations; the proposed new gas station in the City; the Eastside Streetlight project, including positive feedback that was received; the Federal Advocacy trip, including benefits of conducting these types of trips; a food giveaway that was previously held in the community; the need to continue to bring new businesses and housing to the City; and a meeting with Congressman Adam Gray that took place during the Federal Advocacy trip.
Council Member Lopez commented on the Eastside Streetlight project, including positive feedback that was received; thanked Council Member Mendoza for his work on the Autism Awareness Banner Program; commented on the condition of the railroad tracks on State Highway 33; her graduate school graduation taking place on May 10th; and thanked everyone for attending.
Council Member Mendoza commented on the Eastside Streetlight project, including the positive impact it is having on the Eastside of the community; the Federal Advocacy trip, including meetings held with the United States Department of Transportation, the United States Department of Housing and Urban Development, and various elected officials; thanked the community for their support; thanked Mayor Martinez for his work during the Federal Advocacy trip; commented on the month of April being Autism Awareness Month; the Autism Awareness Banner Program, and thanked staff for their work with the Autism Awareness Banner Program.
2. Mayor
Mayor Martinez thanked the community for their support; thanked the City Council and staff for their work; commented on the Derrick and Oller Roundabout project, including negative comments he has received and the need to educate the community; planned road repair projects, including the Divisadero Street Reconstruction project; the Eastside Streetlight project; the proposed new soccer field at Rojas-Pierce Park; a meeting with Habitat for Humanity to bring new housing to the City; a potential housing development on Westlands Water District land near the City; and thanked everyone for their work.
Discussion was held on the update provided by Mayor Martinez; the recent Pool Park Rehabilitation meeting; and Pool Park being opened during Easter Weekend.
PUBLIC COMMENT
Ofelia Ochoa thanked the Council for their work and commented on the positive progress of the community.
Discussion was held on the comments made by Ms. Ochoa and on La Granja de Favian.
Minutes of City Council Meeting 3 April 1, 2025
APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING
1. Minutes of the regular City Council meeting of March 4, 2025, and the special City Council joint work/study session of March 18, 2025.
2. Notice of waiving of the reading of all resolutions and/or ordinances introduced and/or adopted under this agenda.
A motion was made by Council Member Lopez to approve items 1 and 2, seconded by Council Member Riofrio; unanimously approved (4 ayes, absent: Alonso).
CONSENT CALENDAR
Matters listed under the Consent Calendar are considered to be routine and will be enacted by one motion and one vote.
There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Calendar and will be considered separately.
1. FEBRUARY 26, 2025 THROUGH MARCH 14, 2025
a. WARRANT LIST CHECK NOS. 56073 THROUGH 56165
b. TOTAL FOR COUNCIL APPROVAL = $835,581.27
2. Proposed adoption of Resolution No. 25-16, designating surplus real property and approving a Lease Agreement with La Granja De Favian.
3. Proposed adoption of Resolution No. 25-19, approving a proposal for Information Technology managed services with Datapath; authorizing the City Manager to enter into an agreement and execute all necessary documents.
4. Proposed adoption of Resolution No. 25-20, authorizing the City Manager to purchase a vehicle in an amount not to exceed $80,000.00 plus taxes and fees and execute all documents necessary to effectuate the purchase.
5. Proposed adoption of Resolution No. 25-21, approving the dissolution of the Mendota Public Safety Sub-Committee and directing staff to explore and present alternative committee structures that comprehensively address all aspects of public safety in the future.
6. Proposed ratification of a letter of support for the LEAP Institute’s “Green Raiteros” Program service area expansion.
A motion was made by Council Member Riofrio to approve items 1 through 6 of the Consent Calendar, seconded by Council Member Mendoza; unanimously approved (4 ayes, absent:
Alonso).
DEPARTMENT REPORTS AND INFORMATIONAL ITEMS
1. Animal Control, Code Enforcement, and Police Department a) February Monthly Logs
Minutes of City Council Meeting 4 April 1, 2025
Police Lieutenant Renteria provided the monthly report for the Animal Control Department, including monthly statistics; provided the monthly report for the Police Department, including a job opening for a Community Service Officer; an increase in graffiti throughout the City; working with the Firebaugh Police Department to arrest the individual suspected of causing the increase of graffiti; vehicle thefts decreasing; and Monday, April 14, 2025 being the proposed move in day at the new Police Department.
Discussion was held on the update provided by Lieutenant Renteria; complaints being received about community members not maintaining their yards, including the need to warn community members that their yards must be maintained; tree roots lifting sidewalks throughout the City; the need to continue to address stray dogs in the City; the need to address the increase in graffiti throughout the City; an individual crashing into a fence at McCabe Elementary School, including this individual being arrested; kids engaging in animal cruelty, and the need to offer mental health services to kids who display negative behavior.
2. City Engineer
a) Update
City Engineer Osborn provided an update on the Derrick and Oller Roundabout project.
Discussion was held on the update provided by City Engineer Osborn; the Citywide Railroad Improvement project; ways that the City Council or the Fresno Council of Governments can assist with moving the Citywide Railroad Improvement project forward; the need to continue to apply to Surface Transportation Block Grants to receive funding; the 2025 Alley Paving project; the Amador and Smoot Street Extension project; the Divisadero Street Reconstruction project; the 5th and Quince Street Reconstruction project; the proposed new soccer field at Rojas-Pierce Park, including funding that was approved to install new turf at the Danny Trejo Soccer Field; potentially adding additional fencing at the Eddie Porras Basketball Courts (“Basketball Courts”) to help address individuals playing soccer on the Basketball Courts; the need to continue to plan for future road repair projects and the need to continue to invest in the City’s infrastructure.
3. City Attorney
Assistant City Attorney Castro provided an update on Accessory Dwelling Units (“ADUs”) including ADU laws being the same for the Cities of Mendota, Firebaugh and Kerman due to State laws; the City not being able to prohibit individuals from owning property if they do not reside in the City; landlords needing a business license in the Cities of Mendota and Kerman in order to rent out their properties; the Landlord Accountability Act in the Mendota Municipal Code (“MMC”) which subjects landlords to inspections to ensure living conditions are up to par; and parking laws in the City, including educating community members of the 72 hour parking limit on streets.
Discussion was held on the update provided by Assistant City Attorney Castro; the need for individuals to maintain their yards, including ways to address this issue under the MMC; Minutes of City Council Meeting 5 April 1, 2025
issuing warnings to individuals who do not properly maintain their yards; and possibly including a message on the monthly newsletter informing individuals that their yards must be properly maintained, per the MMC.
4. City Manager
City Manager Gonzalez provided an update on personnel in the City; the need for a new Community Service Officer; a bid opening for one of the components of the Community Center; thanked Mayor Martinez, Mayor Pro Tem Alonso and Council Member Mendoza for their work on the State and Federal Advocacy trips; new 14 unit apartments on Oller Street; a proposed new gas station; thanked Karina Beltran, Ofelia Ochoa and Assistant City Attorney Castro for their work with La Granja de Favian Lease Agreement; and thanked staff and consultants for their work.
Discussion was held on the update provided by City Manager Gonzalez; the State and Federal Advocacy trips; upcoming drag racing events held by Ramon Gonzalez, including positive comments received due to these events; and the Community Center project.
ADJOURNMENT
With no more business to be brought before the City Council, a motion for adjournment was made at 7:19 p.m. by Council Member Lopez, seconded by Council Member Mendoza; unanimously approved (4 ayes, absent: Alonso).
_______________________________
Victor Martinez, Mayor
ATTEST:
_______________________________
Antonio Pizano, Deputy City Clerk
CITY OF MENDOTA
CASH DISBURSEMENTS
03/25/2025 - 04/07/2025
CK# 056166 - 056266
Check Date Check Number Check Amount Vendor Name Department Description March 26, 2025 W002H $ 4,366.25 THE BANK OF NEW YORK GENERAL MJPFA 2022 LEASE REVENUE BOND SERIES 2022 March 25, 2025 56166 $ 194,116.00 CITY OF MENDOTA PAYROLL GENERAL PAYROLL TRANSFER 3/10/2025-3/23/2025 March 27, 2025 56167 $ 296.84 ADT SECURITY SERVICES GENERAL SECURITY SERVICE FOR ROJAS PIERCE CONCESSION 4/14/2025 - 6/30/2025 AND SERVICE FOR WATER TREATMENT 4/04/25 - 5/03/2025 March 27, 2025 56168 $ 39,462.97 AETNA LIFE INSURANCE COMPANY GENERAL MEDICAL INSURANCE FOR APRIL 2025 March 27, 2025 56169 $ 517.28 AFLAC GENERAL AFLAC INSURANCE FOR MARCH 2025 March 27, 2025 56170 $ 51.49 AIRGAS USA, LLC WATER, SEWER RENT CYLINDER SMALL CARBON DIOXIDE FEBRUARY 2025 March 27, 2025 56171 $ 335.81 ALERT-0-LITE STREETS
SIGNS FOR STREETS - (1) 12.5" MEASURING WHEEL, (1) STOP SIGN POST COVER, (1) RED FHIP STOP POST COVER
March 27, 2025 56172 $ 6,566.60 AMERITAS GROUP GENERAL VISION AND DENTAL INSURANCE FOR APRIL 2025 March 27, 2025 56173 $ 1,493.29 AT&T GENERAL, WATER, SEWER AT&T PHONE SERVICE 1/25/2025 - 2/24/2025 FOR 2 MONTHS March 27, 2025 56174 $ 1,724.74 AT&T MOBILITY GENERAL POLICE DEPARTMENT PHONE SERVICE 2/12/25-3/11/2025 March 27, 2025 56175 $ 59.71 AUTOZONE, INC. GENERAL LAMP GARDEN BATTERY DURALAST LAWN FOR PARKS March 27, 2025 56176 $ 2,377.48 BADGER METER WATER ORION CELLULAR LTE SERV.UNIT FOR FEBRUARY 2025 March 27, 2025 56177 $ 431.60 BSK ASSOCIATES WATER, SEWER
GENERAL EDT MONTHLY SERVICE AND WASTE WATER WEEKLY GRAB SAMPLE BOD,TDS FOR 3/4/2025
March 27, 2025 56178 $ 717.67 CALIFORNIA BUSINESS MACHINES GENERAL, WATER, SEWER COPIER CONTRACT SERVICE BASE FOR FEBRUARY AND MARCH 2025 March 27, 2025 56179 $ 158.28 FLEXT PRINT, LLC GENERAL, WATER, SEWER LOW & HIGH DENSITY & MONO COLOR LINES March 27, 2025 56180 $ 38.00 CENTRAL VALLEY GENERAL (1) SCREENING SERVICE FOR POLICE DEPARTMENT March 27, 2025 56181 $ 295.04 CHEMSEARCH WATER (1)SERVICE CHARGE-DRAIN MAINTENANCE March 27, 2025 56182 $ 398.88 CINTAS CORPORATION NO. 2 GENERAL, WATER, SEWER FIRST AID KIT SUPPLIES: POLICE DEPARTMENT, CITY HALL, PUBLIC
WORKS, WASTE TREATMENT AND WASTE WATER TREATMENT PLANT
March 27, 2025 56183 $ 179.11 CORELOGIC INFORMATION GENERAL, WATER, SEWER REAL QUEST SERVICES FOR FEBRUARY 2025 March 27, 2025 56184 $ 1,133.36 CORBIN WILLITS SY'S INC. GENERAL, WATER, SEWER ENHANCEMENT&SERVICE FEES FOR APRIL 2025 March 27, 2025 56185 $ 177,872.06 CORE BUSINESS INTERIORS GENERAL, WATER, SEWER FURNITURE FOR NEW COUNCIL CHAMBER AND POLICE DEPARTMENT March 27, 2025 56186 $ 428.60 CROWN SERVICES CO. GENERAL, SEWER TOILET W/SINK1XWK-1300 2ND ST-WWTP, BASS AVE (POOL PARK), BASS AVE & HWY 33 (LOZANO PARK) FOR 2/14/2025 - 3/13/2025
March 27, 2025 56187 $ 216.74 DATA TICKET, INC. GENERAL DAILY CITATION PROCESSING & DAILY NOTICES FOR FEBRUARY 2025 March 27, 2025 56188 $ 2,606.05 DELTA SAND, GRAVEL & RECYCLING WATER, STREETS (3) CLASS II AG BASE ROCK PER TRUCK LOAD FOR YARD STOCK PILE
AND COLD PATCH FROM MADERA TO CITY OF MENDOTA
March 27, 2025 56189 $ 51,022.37 FRESNO COUNTY SHERIFF GENERAL, WATER DISPATCH SERVICES FOR DECEMEBER 2024 - FEBRUARY 2025, AND RMS - JMS ACCESS FEE FOR NOVEMBER 2024 - JANUARY 2025
March 27, 2025 56190 $ 30.00 GONZALEZ TOWING & TRANSPORT GENERAL TIRE REPAIR AND ALIGNMENT FOR POLICE DEPARTMENT VEHICLE M88 March 27, 2025 56191 $ 734.53 HAVEN'S FOR TOTAL SECURITY, IN GENERAL, WATER
KEY WITH CHIP FOR FORD VEHICLE FOR WATER DEPARTMENT AND A
PASSAGE LEVER & GRADE STORE ROOM LEVER
March 27, 2025 56192 $ 1,279.02 HD SUPPLY WHITE CAP CONSTRUCTION STREETS STREET SOLAR LIGHTING PROJECT SUPPIES - 36" SONOTUBE
RAINGAUARD
March 27, 2025 56193 $ 7,641.59 ICAD INC WATER, SEWER NEW WONDERWARE WORKSTATION TO SUPPORT NEW PC LICENSE March 27, 2025 56194 $ 330.00 INTERNATIONAL INSTITUTE GENERAL, WATER, SEWER CITY CLERK ANNUAL MEMEBERSHIP FEE FOR C.CABRERA GARCIA AND
ANTONIO PIZANO
March 27, 2025 56195 $ 800.00 TJ LAW & ASSOCIATES INVESTIGAT GENERAL (1) LAW ENFORCEMENT BACKGROUND INVESTIGATION March 27, 2025 56196 $ 337.14 LEAF GENERAL, WATER, SEWER (2) KYOCERA COPIER SYSTEMS MARCH 2025 March 27, 2025 56197 $ 3,271.66 LIGHTHOUSE ELECTRICAL INC SEWER
REPAIRED CONDUCTORS & TESTING AT WASTE WATER TREATMENT
FACILITY
March 27, 2025 56198 $ 102.85 JULIANA LOPEZ GENERAL
FUEL REIMBURSEMENT FOR TRAINING IN SAN JOSE CA 3/17/2025 - 3/21/2025
CITY OF MENDOTA
CASH DISBURSEMENTS
03/25/2025 - 04/07/2025
CK# 056166 - 056266
March 27, 2025 56199 $ 198.00 LOU'S GLOVES, INC. WATER, SEWER SUPPLIES FOR THE WATER DEPARTMENT: (20) NITRILE, EXAM GRADE,
POWDER-FREE, TEXTURED, NEON, LARGE
March 27, 2025 56200 $ 635.76 MENDOTA 1 SMOG GENERAL
2023 DODGE - DURANGO: OIL, FILTER CHANGE AND REPLACE REAR PADS
AND FRONT ROTOR
March 27, 2025 56201 $ 1,164.76 METRO UNIFORM GENERAL RAZOR BODY ARMOR EQUIPMENT FOR POLICE DEPARTMENT March 27, 2025 56202 $ 2,479.44 MUTUAL OF OMAHA GENERAL LIFE AD&D,LTS,STD INSURANCE FOR APRIL 2025 March 27, 2025 56203 $ 2,546.50 NORTHSTAR CHEMICAL WATER CHEMICAL SUPPLIES : (745)SODIUM HYPOCHLORITE-12.5%MILL MEETS
NSF/ANSI
March 27, 2025 56204 $ 487.31 OFFICE DEPOT GENERAL, WATER, SEWER CITY HALL OFFICE SUPPLIES AND WATER DEPARTMENT SUPPLIES:
PAPERS, SHARPIES, REPORT COVERS, DIVIDERS & TAPE
March 27, 2025 56205 $ 1,558.18 PACE SUPPLY CORP WATER
SPECIAL DEPARTMENT SUPPLIES: (2) CURB STOP, (5) CPLG FORD, (5) ROR55
March 27, 2025 56206 $ 59,421.04 PG&E
GENERAL,WATER, SEWER,
STREETS
WATER DEPARTMENT AND CITYWIDE UTILITIES FOR 2/5/2025 - 3/6/2025, & POLICE DEPARTMENT UTILITIES FOR 1/14/2025 - 2/06/2025
March 27, 2025 56207 $ 146.93 PITNEY BOWES INC. GENERAL, WATER, SEWER
POSTAGE METER RENTAL AND SERVICE AGREEMENT JANUARY - MARCH 2025
March 27, 2025 56208 $ 4,172.68 PLATT ELETRIC SUPPLY STREETS STREET LIGHTS FOR BELMONT - (6)LMK LAS45S-T4-480V AND (3000) THHN-6 BLACK, WHITE AND GREEN
March 27, 2025 56209 $ 6,730.00 PRICE PAIGE & COMPANY CERTIFIE
GENERAL, WATER, SEWER,
STREETS, REFUSE
PROFESSIONAL SERVICE RENDERED: JUNE 30, 2024 AUDITED
FINANCIALS
March 27, 2025 56210 $ 1,158.22 PRINT SHACK REFUSE (4000) FLYERS FOR SB 1383 March 27, 2025 56211 $ 2,024.75 PURCHASE POWER GENERAL, WATER, SEWER POSTAGE METER REFILLS 02/19/2025 - 2/20/2025 AND 3/07/2025 - 3/09/2025 March 27, 2025 56212 $ 537.32 R.G. EQUIPMENT COMPANY GENERAL PARK SUPPLIES : (12) RECYCLING BLADES AND (3) TIMMER LINES March 27, 2025 56213 $ 386.24 RAMON'S TIRE & AUTO SERVICE
GENERAL, WATERS, SEWER,
STREETS
TIRE REPAIRS FOR 2018 FORD POLICE INTERCEPTOR, 2024 DODGE DURANGO, AND 2021 RAM 1500 CLASSIC
March 27, 2025 56214 $ 500.00 REYES FAMILY FOUNDATION, INC. GENERAL
DEPOSIT REIMBURSMENT FOR ROJAS PIERCE PARK MAIN PAVILLION
CONCESSION & KEYS
March 27, 2025 56215 $ 1,269.74 SIGNMAX STREETS
STREET SUPPLIES : STEEL BASE FOR STOP SIGN, (8) TRAFFIC SIGN AND (100) DRIVE RIVET 3/8 JUMBO HEAD STE
March 27, 2025 56216 $ 4,838.45 SITEONE LANDSCAPE SUPPLY LLC GENERAL (60) RAIN BIRD 8005 ADJUSTABLE ROTOR 5IN RISER FOR PARKS March 27, 2025 56217 $ 4,509.93 SORENSEN MACHINE WORKS
GENERAL, WATER, SEWER,
STREETS CITYWIDE DEPARTMENT SUPPLIES FOR FEBRUARY 2025
March 27, 2025 56218 $ 409.36 UNION PACIFIC RAILROAD COMPANY STREETS LEASE AGREEMENT FOR 10TH & MARIE, MARIE ST ENCROACHMENT, NORTH OF BELMONT AVE FOR APRIL 2025
March 27, 2025 56219 $ 60.00 STATE WATER RESOURCES CONTROL WATER WATER TREATMENT OPERATOR 2 CERTIFICATION FOR OPERATOR
#33994
March 27, 2025 56220 $ 1,077.78 STATE OF CALIFORNIA STREETS SIGNALS & LIGHTING BILLING FOR JULY 2024 TO SEPTEMBER 2024 March 27, 2025 56221 $ 1,056.00 TELSTAR INSTRUMENTS SEWER CALIBRATE EQUIPMENT SWRCB ONCE YEARLY SERVICE 2/21/2025 March 27, 2025 56222 $ 4,369.19 HOME DEPOT WATER, SEWER, STREETS
STREET LIGHT POLE MATERIALS, FACILITY REPAIR ITEMS, SEWER
BUILDING SUPPLIES AND SOLAR LIGHT PROJECT SUPPLIES
March 27, 2025 56223 $ 498.00 THE PIN CENTER GENERAL, WATER, SEWER (200) NEW PINS -CITY OF MENDOTA LOGO FOR COUNCIL AT EVENTS AND
MEETINGS
March 27, 2025 56224 $ 240.00 TOP DOG TRAINING CENTER GENERAL SERVICE K9 MONTHLY MAINTENANCE TRAINING LOPEZ & YANOSCH FOR 3/08/2025 AND 3/15/2025
March 27, 2025 56225 $ 5,000.00 TOWNSEND PUBLIC AFFAIRS, INC. GENERAL CONSULTING SERVICES FOR THE MONTH OF MARCH 2025 March 27, 2025 56226 $ 150.00 TRANSUNION RISK AND ALTERNATIVE GENERAL TRANSUNION RISK & ALTERNATIVE DATA FOR FERBRUARY 2025 March 27, 2025 56227 $ 1,776.11 TRIANGLE ROCK PRODUCTS,LLC GENERAL, STREETS (81.10) CMIX 60/40,ENVIROMENTAL FEE-AGG & ASPHALT March 27, 2025 56228 $ 121.32 UNIFIRST CORPORATION GENERAL, WATER, SEWER SUPPLIES FOR CLEANING - (1) WET MOP, (2) MOPS-UNFRAMED, (40)
TERRY CLOTHS
March 27, 2025 56229 $ 1,075.02 VERIZON WIRELESS GENERAL, WATER, SEWER CITYWIDE CELLPHONE SERVICE 3/07/2025 - 4/06/2025 March 27, 2025 56230 $ 1,129.77 VESTIS GROUP, INC. GENERAL, WATER, SEWER PUBLIC WORKS UNIFORM SERVICE FOR JANUARY AND MARCH 2025 March 27, 2025 56231 $ 728.49 VULCAN MATERIALS COMPANY GENERAL, STREETS (5.75) COLD MIX 3/8 SC8, ENVIRONMENTAL FEE - AGG & ASPHALT March 27, 2025 56232 $ 41.80 CULIGAN WATER GENERAL MONTHLY SERVICE FEE FOR MARCH 2025 March 27, 2025 56233 $ 1,349.30 WEST VALLEY CONSTRUCTION COMPA WATER REIMBURSEMENT FOR HYDRANT METER RENTAL & WATER USAGE April 2, 2025 56234 $ 89,063.48 BLACKSTONE CHEVROLET OF FRESNO GENERAL, WATER, SEWER 2025 CHEVROLET TAHOE Z71 VIN:GNS6PRD7SR245406 IRIDESCENT PEARL TRICOAT PER RESOLUTION NO. 25 - 20
April 7, 2025 56235 $ 628.04 ACME ROTARY BROOM SERVICE STREETS STREETS SWEEPER BRUSH - 1 SET(18EA) 58" ALL PRO BROOM BADGE
STRIP BRUSH SET
CITY OF MENDOTA
CASH DISBURSEMENTS
03/25/2025 - 04/07/2025
CK# 056166 - 056266
April 7, 2025 56236 $ 334.59 ADT SECURITY SERVICES GENERAL, WATER, SEWER SECURITY SERVICE-DMV AND CITY HALL 4/13/2025 - 5/12/2025 April 7, 2025 56237 $ 751.02 AMAZON CAPITAL SERVICES, INC GENERAL, WATER, SEWER APRIL 2025 ITEMS - CITY HALL, NEW COUNCILS CHAMBERS & POLICE
DEPARTMENT OFFICE SUPPLIES
April 7, 2025 56238 $ 2,378.46 BADGER METER WATER BADGER METER - ORION CELLULAR LTE SERVICE UNIT FOR MARCH 2025 April 7, 2025 56239 $ 250.00 BINATIONAL OF CENTRAL CALIFORNIA GENERAL DEPOSIT REIMBURSEMENT FOR FACILITY USE ROJAS PARK 3/26/25 April 7, 2025 56240 $ 1,011.80 BSK ASSOCIATES WATER, SEWER GENERAL EDT TREATMENT & DISTRIBUTION SERVICE FOR 3/11/2025 & 3/18/2015, AND WEEKLY GRAB SAMPLES FOR 3/18/2025
April 7, 2025 56241 $ 91.00 CABRERA, CELESTE GENERAL MILEAGE REIMBURSEMENT FOR SAN JOAQUIN VALLEY CLERKS MEETING April 7, 2025 56242 $ 171.50 FLEXT PRINT, LLC GENERAL,WATER, SEWER LOW & HIGH DENSITY & MONO COLOR LINES April 7, 2025 56243 $ 517.76 COLONIAL LIFE GENERAL LIFE INSURANCE PREMIUM FOR MARCH 2025 April 7, 2025 56244 $ 175.00 COMMUNITY MEDICAL CENTER GENERAL (1) FEBRUARY 2025 LEGAL BLOOD DRAWS FOR THE POLICE
DEPARTMENT
April 7, 2025 56245 $ 14,147.60 EMPLOYER DRIVEN INSURANCE SERVICE GENERAL BILLING SUMMARY FOR APRIL 2025 AND CLAIMS FOR FEBRUARY 2025 April 7, 2025 56246 $ 8,909.84 FARMERS LUMBER AND SUPPLY CO. GENERAL POOL PARK SUPPIES - (112) 6X6X8 PT April 7, 2025 56247 $ 944.46 FRESNO WIRE ROPE & RIGGING, IN GENERAL SUPPLIES FOR PARKS - (2) 1000', (10) FORGED CLP, (10) THIMBLE April 7, 2025 56248 $ 33,160.00 GERALD MELE & ASSOCIATES, INC. GENERAL PROFESSIONAL SERVICE - SCHEMATIC DESIGN & DEVELOPMENT April 7, 2025 56249 VOID
April 7, 2025 56250 $ 3,371.00 JON'S FLAGS & POLES INC GENERAL (2) ART CHARGE, (5) AUTISM FLAG, (1) CUSTOM NYLON PRINT April 7, 2025 56251 $ 1,503.18 KOPPEL & GRUBER GENERAL
CFD NO. 2006 - 1 AND L & L DISTRICT ANNUAL ADMINISTRATIVE SERVICE FOR JANUARY - MARCH 2025
April 7, 2025 56252 $ 51,160.00 LIGHTHOUSE ELECTRICAL INC WATER WASTE TREATMENT PLANT GENERATOR 15% LABOR & 65% MATERIAL
PRICE FOR FINAL BILL
April 7, 2025 56253 VOID
April 7, 2025 56254 $ 816.68 MENDOTA 1 SMOG GENERAL
2021 FORD, 2018 JEEP GRAND CHEROKEE AND 2023 DODGE DURANGO
VEHICLE MAINTANCE
April 7, 2025 56255 $ 1,164.76 METRO UNIFORM GENERAL
RAZOR BODY ARMOR FOR DAVID MALDONADO FROM POLICE
DEPARTMENT
April 7, 2025 56256 $ 1,743.49 MID VALLEY DISPOSAL, INC REFUSE PUBLIC WORKS REFUSE SERVICE MARCH 16-31, 2025 April 7, 2025 56257 $ 2,384.10 PACE SUPPLY CORP WATER SUPPLIES FOR WATER DEPARTMENT - (3) REPAIR CLAMP, (3) RMCCL April 7, 2025 56258 $ 28,930.50 PROVOST & PRITCHARD
GENERAL, WATER, SEWER,
STREETS
PROFESSIONAL SERVICE DIVISADERO & INEZ ST RECONSTRUCTION AND 2024 LOCAL ST IMPROVEMENT FOR FEBRUARY 2025
April 7, 2025 56259 $ 3,162.82 SITEONE LANDSCAPE SUPPLY LLC GENERAL (12) BERMUDA GRASS SEED, (12) KELLOGG TOPPER, (12) RISER FOR PARKS
April 7, 2025 56260 $ 535.00 TECH MASTER PEST MANAGEMENT GENERAL, WATER, SEWER
PEST CONTROL SERVICE FOR ROJAS PARK, CITY HALL, DMV, YOUTH
CENTER, PUBLIC WORKS, WATER DIVISON, & POLICE DEPARTMENT April 7, 2025 56261 $ 2,905.66 TRIANGLE ROCK PRODUCTS,LLC GENERAL, STREETS (28.07) ST 3/8 CM SC 3000 & ENVIROMENTAL FEE FOR STREETS AND PARKS
April 7, 2025 56262 $ 173.00 USA BLUEBOOK WATER, SEWER
SUPPLIES FOR WATER DEPARTMENT (12) PURELL INSTANT HAND
CLEANSER AND (1) CONDUCTIVITY SOLUTION
April 7, 2025 56263 $ 373.32 VESTIS GROUP, INC. GENERAL, WATER, SEWER PUBLIC WORKS UNIFORM SERVICE 3/27/2025 AND 4/03/2025 April 7, 2025 56264 $ 440.00 SALVADOR VILLASENOR GENERAL SPLASH-PAD PARK SIGNS April 7, 2025 56265 $ 13.10 VICTOR DIAZ WATER MQ CUSTOMER REFUND FOR DIA0031 April 7, 2025 56266 $ 58.84 JOSE GONZALEZ WATER MQ CUSTOMER REFUND FOR GON0129 $ 866,510.40
CITYOF MENDOTA
ooCantaloupe Cente, Of The World"
April 1,2025
Assemblymember Matt Haney
Assembly Housing and Community Development Committee
California State Capitol
Sacramento CA 95814
RE: AB 36 (Soria): Streamlining Prohousing Designations - SUPPORT Dear Chair Haney:
On behalf of the City of Mendota, I am pleased to write in support of AB 36 (Soria), which integrates the application for the Prohousing Designation Program (PDP) with the housing element update cycle to help small prohousing local governments with limited resources better qualiff for state housing and infrastructure programs.
AB 36 directs the Departrnent of Housing and Community Development (HCD) to use the information cities with populations under 50,000 persons and counties under 200,000 already provide in their housing elements to determine their eligibility for the PDP. Additionally, the bill extends the time until prohousing designations expire for an additional two years.
The City of Mendota, known as the "Cantaloupe Center of the World," is a small, rural community located in the heart of Califomia's Central Valley. With a population of approximately 12,000 residents, Mendota is an agricultural hub that plays a vital role in feeding Califomia and beyond.
The City faces unique challenges, including high poverty rates, limited access to resources, and a lack of affordable housing options. Despite these challenges, Mendota remains committed to supporting housing development and economic growth while preserving its strong agricultural heritage. The City works tirelessly to enhance the quality of life for residents by fostering community partnerships, advocating for rural needs, and promoting sustainable development.
The PDP designates local govemments going above and beyond the requirements of state housing law to promote housing development in their communities as 'oprohousing", rewarding them with priority access to critical housing and infrastructure programs. However, the application for the PDP is complex and requires extensive documentation, making it difficult for rural jurisdictions with limited staffto apply even when they have adopted strong prohousing policies. AB 36 eases the administrative burden on smaller cities and counties by having HCD analyze the information local governments already provide in their housing elements to determine whether they qualiff as prohousing. This minimizes unnecessary duplication of work by local governments with limited resources without lowering the standards to be designated as prohousing. To combat California's housing crisis, we must equitably recognize and incentivize the work local governments of all sizes are doing to promote housing development.
643 Ouince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Fax: (559) 655-4064
TDD/ITY 866-735-2919 (English) TDDffTY 866-833-4703 (Spanish) cityolmendota.com
The City ol Mendota is an equal opportunity prouider and employel For these reasons, the City of Mendota is proud to support AB 36 and respectfully requests an "AYE" vote.
Sincerely,
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Victor Martinez
Mayor
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CITYOF MENDOTA
ocCantaloupe Center Of The Vorld"
April 1,2025
Assemblymember Matt Haney
Assembly Housing and Community Development Committee
California State Capitol
Sacramento CA 95814
RE: AB 457 (Soria): Streamlining Farmworker Housing Development in Fresno, Madera, and Merced Counties - SUPPORT
Dear Chair Haney:
On behalf of the City of Mendota, I am pleased to write in support of AB 457 (Soria), which seeks to streamline the approval of affordable farmworker housing in the Counties of Fresno, Madera, and Merced.
AB 457 will allow the ministerial approval of up to 150 units of affordable farmworker housing within 15 miles of farm or grazing lands in the Counties of Fresno, Madera, and Merced, along with a CEQA exemption for these developments. This bill extends a pilot program created for the Counties of Santa Clara and Santa Cruz by AB 3035 (Pellerin 2024) to also apply in the agricultural heartland of the Central Valley.
The City of Mendota, located in the heart of Califomia's Central Valley, is a small yet vibrant agricultural community with a population of approximately 12,000 residents. Known as the "Cantaloupe Center of the World," Mendota is a vital contributor to California's agricultural economy, producing a wide range of crops and providing employment opportunities for thousands of farmworkers. However, the community faces significant challenges, including a shortage of affordable housing, high poverty rates, and limited access to essential services. The City of Mendota is committed to advocating for policies that address the unique needs of rural and agricultural communities, including the development of affordable, dignified housing options for farmworkers who are essential to the region's economy.
While California's housing crisis is mostly seen as an urban issue, its effects on rural areas are equally devastating. Developments on agricultural land in particular face unique challenges such as a lack of critical water and sewer infrastructure as well as long distances to necessary amenities.
AB 457 addresses these challenges by streamlining the development of up to 150 units of aJflordable farmworker housing within 15 miles of farm or grazing land, providing flexibility and better access to amenities and easing connections to infrastructure. AB 457 cuts unnecessary red tape and promotes the development of affordable, dignified housing for the farmworker communities who are the backbone of the Central Valley. 643 0uince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Fax: (559) 655'4064
TDD/[TY 866-735-2919 (English) TDD/[TY 866-833-4703 (Spanish) cityolmendola.com
The City ol Mendota is an equal opportunity prouider and employer For these reasons, the City of Mendota is proud to support AB 457 and respectfully requests an .'AYE" vote.
Sincerely,
5ffi,./,{n
Victor Marti fiez
Mayor
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CITYOF MENDOTA
.6Cantaloupe Center Of The World"
April 9,2025
RE: Darden Clean Energy Project Community Benefits
To Whom It May Concern,
Intersect Power has been a valued partner and strong supporter of both the City of Mendota and of the Mendota Community Corporation. Their ongoing contributions have significantly enriched our coflrmunity and reflect a sincere dedication to the well-being of our residents.
Specifically, Intersect Power provided funding for our 2nd Annual Christmas Celebration and Toy Giveaway. This event brought joy and festive cheer to countless families. Children had the opportunity to decorate omaments, enjoy treats, and be entertained by local performances, culminating in the distribution of free toys that brought smiles to many faces.
Furthermore, Intersect Power has pledged support for the 2025 Mendota Earth Day Celebration, highlighting their commitment to environmental stewardship. They have also committed to be the Grand Event Sponsor for our June Firework Celebration, funher demonstrating their dedication to community events and celebrations.
Intersect Power has consistently shown a willingness to invest in Mendota, working directly to improve the lives of our residents on the westside. Their partnership has been invaluable, and I look forward to continuing to work with them in the future.
Sincerely,
, n
tfL,f,* ,,,{lo{WVictor Marttnez L*'
Mayor
City of Mendota
643 Ouince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Fax: (559) 655-4064
TDD/[TY 866-735-2919 (English) TDD/ITY 866-833-4703 (Spanish) cityolmendota.com
The City ol Mendota is an equal opportunity provider and employer 1 AGENDA ITEM – STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: CRISTIAN GONZALEZ, CITY MANAGER
SUBJECT: PUBLIC HEARING TO REVIEW AND CONSIDER STATUS OF DEVELOPMENT
AGREEMENT DEFAULT, ENTITLEMENTS, AND TERMINATION OF DEVELOPMENT
AGREEMENT WITH ODYSSEY AGRICULTURAL DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, AND VALLEY AGRICULTURAL HOLDINGS, LLC; CONSIDERATION OF PLANNING COMMISSION’S FEBRUARY 19, 2025,
RECOMMENDATION REGARDING TERMINATION OF THE DEVELOPMENT
AGREEMENT
PUBLIC HEARING TO CONDUCT THE ANNUAL REVIEW OF PERFORMANCE UNDER
THE DEVELOPMENT AGREEMENT WITH ODYSSEY AGRICULTURAL
DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, AND VALLEY
AGRICULTURAL HOLDINGS, LLC
DATE: APRIL 15, 2025
ISSUE
The City Council of the City of Mendota is holding two public hearings:
1. PUBLIC HEARING TO REVIEW AND CONSIDER STATUS OF DEVELOPMENT
AGREEMENT DEFAULT, ENTITLEMENTS, AND TERMINATION OF
DEVELOPMENT AGREEMENT WITH ODYSSEY AGRICULTURAL
DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, AND VALLEY AGRICULTURAL HOLDINGS, LLC; CONSIDERATION OF PLANNING COMMISSION’S FEBRUARY 19, 2025, RECOMMENDATION REGARDING TERMINATION OF THE DEVELOPMENT AGREEMENT.
2. PUBLIC HEARING TO CONDUCT THE ANNUAL REVIEW OF PERFORMANCE
UNDER THE DEVELOPMENT AGREEMENT WITH ODYSSEY AGRICULTURAL
DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, AND VALLEY AGRICULTURAL HOLDINGS, LLC.
Both hearings (jointly referenced below as the “Hearings”) concern the development agreement with Odyssey Agricultural Development, LLC, Odyssey Agricultural Holdings, LLC, and Valley Agricultural Holdings, LLC, for the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portion of APN 013-030-68ST) located at 418 West Belmont Avenue, Mendota, California 93640.
BACKGROUND
Odyssey Agricultural Development, LLC (“OAD”), Odyssey Agricultural Holdings, LLC (“OAH”), and Valley Agricultural Holdings, LLC (“VA”; together with OAD and OAH, the “Developers”) own and operate a commercial cannabis business on approximately 36 acres (portion of APN 013-030-68ST) located at 418 West Belmont Avenue in the City of Mendota 2 (“City”). This business is a private enterprise subject to a development agreement with the City (the “DA”; Exhibit 1) ensuring legal compliance with the City’s applicable licensing and zoning requirements under the Mendota Municipal Code (“MMC”).
1. Approval of Developers’ DA
In 2017, the City amended the MMC to create a commercial cannabis overlay district to “serve and promote the public health, safety, and welfare of the citizens of Mendota, to facilitate the establishment of permitted commercial cannabis businesses within the city while ensuring that such businesses do not interfere with other lawful land uses, and to provide new sources of revenue to fund city services.” (Mendota Ord. No. 17-13; MMC, § 17.99.010, subd. (B).) The City identified approximately fifty acres of unused, surplus land it owned, and approved publication of a request for proposals seeking businesses interested in leasing and developing that land for commercial cannabis operations within the City. (Mendota Reso. No. 17-62.) Shortly thereafter, the City withdrew its request for proposals. (Mendota City Council Meeting Minutes, January 9, 2018.)
In 2018, the City revised its earlier request for proposals and reissued it, seeking businesses interested in purchasing and developing the land at issue from the City for any useful purpose, including commercial cannabis activity. (Mendota Reso. No. 18-74.) The City reviewed responses to its request for proposals and approved entering into negotiations with VA (also known as the Axiom Group at that time) regarding the surplus land. (See Mendota City Council Meeting Minutes, January 22, 2019, and February 12, 2019.) In October 2019, the City approved Resolution No. 19-79, approving a purchase and sale agreement (the “PSA”) whereby VA agreed to purchase the City’s surplus property for its full appraised value. (Mendota Reso. No. 19-79; Mendota City Council Meeting Minutes, October 22, 2019.) Among other things, the PSA required VA to obtain development entitlements from the City and state, including full compliance with the California Environmental Quality Act (“CEQA”; Pub. Res. Code, §§ 21000, et seq.), at its own expense.
In 2020, VA submitted Application No. 20-23 for a development agreement with the City. The City, as the lead agency responsible for approving a project in its boundaries under CEQA, engaged with environmental consultants regarding VA’s project and eventually adopted a mitigated negative declaration and mitigation monitoring and reporting program indicating the project would not have a substantial impact on the environment if using the proposed mitigation measures. (Mendota Reso. No. 21-01.) On January 26, 2021, the City approved an amendment to the PSA to split the project between two entities, thirty-six acres of which were to be purchased by OAH. (Mendota Reso. No. 21-11.) The City also approved the DA with the Developers, which was not challenged within the ninety-day statute of limitations. (Mendota Ord. No. 21-03; Gov. Code, § 65009, subd. (c)(1).) The City’s sale of thirty-six acres to OAH closed on or about March 22, 2021.
The City recorded the DA with the Office of the Fresno County Recorder on April 16, 2021.
2. Developers’ Request for Conditional Use Permit Revisions 3 Developers requested modifications of their site plans which were approved alongside their Conditional Use Permit (“CUP”; Exhibit 2) in Planning Commission Resolution No. 20-07 and DA in City Council Ordinance No. 21-03. As presented during the August 24, 2021, City Council meeting, the revised site plans contemplate dividing the multiple commercial cannabis license uses from within one (1) 45,000 square-foot building to eight (8) separate structures of the following sizes:
One (1) 9,000 square-foot greenhouse building;
Two (2) 10,000 square-foot processing/manufacturing buildings; One (1) 10,000 square-foot building for corporate offices and employee break rooms;
One (1) 18,000 square-foot distribution building;
One (1) 30,000 square-foot drying/processing building; One (1) 30,000 square-foot manufacturing/drying/processing building; and One (1) 64,000 square-foot indoor cannabis cultivation building.
As with the original site plans, the revised site plans contemplate using the remainder of the site for outdoor cannabis cultivation. City staff’s discussions Developers’ representatives clarified the proposed site reorganization would not affect the total square footage allocated to outdoor cannabis cultivation on the property.
The CUP tasks the City with monitoring the operation of your facility for violations of the conditions of approval. (Exhibit 2, CUP, Operations, § 4.) As approved, the site plans should “depict locations and dimensions of existing and proposed features, utilities, and other improvements.” (Exhibit 2, CUP, General & Site, § 9.)
Development and operation of the project site shall be in substantial conformance with the Site Plan dated September 29, 2020 and the operational statement dated October 13, 2020 as incorporated herein by reference. The City Planner shall determine the extent to which incremental or minor changes to the site plan, the landscape plan, and/or the operational statement meet this requirement.
(Exhibit 2, CUP, General & Site, § 16.)
Following the approval of the CUP, the site plan was flipped on its vertical axis to accommodate site access. This modification was deemed incremental or minor by the City Planner, and no further action was required beyond filing an updated site plan.
In contrast, however, the City Planner has indicated the proposed permanent structure revisions and expansions detailed on the revised site plan discussed above are potentially perceived as resulting in substantial, increased industrial uses of the site, regardless of whether the commercial cannabis license uses are listed in the CUP and DA. Also, the existing site plans did not contemplate the expansion of Developers’ operations in multiple “phases” as presented during the August 24, 2021, City Council meeting. Accordingly, an amendment to the CUP to incorporate the revised site plans and phases of construction, supported by a CEQA addendum 4 indicating no new environmental impacts will occur as a result of these modifications, might be required here in the future.
On September 21, 2021, the City sent a letter to Developers outlining the position above, and stating:
This letter shall serve as notice that, in accordance with Article XI, Section 7 of the California Constitution, the City will exercise its discretion not to expend its enforcement resources to prevent your development of the project site during the pendency of the CUP amendments discussed above. This enforcement discretion is being exercised on a short-term, temporary basis only in recognition of the brief duration of the uses discussed above and your urgent need to proceed to harvest the plants grown in accordance with your existing CUP and DA.
Please be advised that, this letter is non-binding and shall not create any obligation or liability (including any obligation to start or continue negotiations), and no course of conduct or dealing (including, but not limited to, discussions, negotiations, emails, or other correspondence or the exchange of draft documents) shall create any binding obligations on the City’s behalf other than fully executed and delivered approvals. (See Cal. Code Regs., tit. 14, §§ 15004, subd. (b)(4), and 15352.) Any confirmation by the City that it has an interest or willingness to perform as laid out herein shall not foreclose the City’s future consideration of all relevant alternatives or mitigation measures that CEQA may otherwise require to be considered, including, but not limited to, the alternative of not moving forward with amendments to the project at all. All future project approvals are conditions upon your successful compliance with all statutory and regulatory requirements associated with the successful implementation of the same (e.g. obtaining all discretionary permits, including, but not limited to: CEQA documentation, review, and approvals; final adjudication of any legal challenges based on CEQA; and all environmental, title, physical, water quality, and economic aspects of the project having been assessed and resolved sufficiently for the issuance of an amended conditional use permit).
Accordingly, before engaging in any temporary or permanent construction that conflicts with your existing site plans, you must first execute the attached Acknowledgment and Waiver. In so doing, you will acknowledge your understanding that the City will be conducting a comprehensive review of your forthcoming application for an amended CUP and, as a result, you may be required to comply with new or different conditions of approval or regulations. In addition, you will agree that, if, after conducting its 5 review, the City adopts new or different conditions of approval or regulations, you will comply with all such regulations and will not claim that your use of the Property constitutes a legal nonconforming use. (Exhibit 3.) Developers signed an Acknowledgment and Waiver indicating any work on their project site was pending future approval of a CUP amendment, including approvals of other supporting documents and decisions related thereto. (Exhibit 4.) Throughout 2022, the Developers worked to improve their property as outlined above.
3. Annual Public Benefit Fee Requirements in Developers’ DA Developers’ DA requires them to make Quarterly Payments in a minimum annual amount of $600,000.00, representing the Developers’ Public Benefit Fee obligations. (Exhibit 1, DA, § 4.2, subd. (a)(2)(iii)(a).) Developers are obligated to pay 4% of their project’s gross annual receipts instead if that amount exceeds $600,000.00. (Exhibit 1, DA, § 4.2, subd. (a)(2)(iii)(b).)
4. 2022 and 2023 DA Compliance and Public Review Hearings Developers failed to make the required $150,000.00 quarterly public benefit fee payment in February 2022.
At its February 22, 2022, regular City Council meeting, the City received presentations from both Developers and Boca Del Rio Agriculture, LLC (“Boca”; Developers’ neighbor who conducts similar commercial cannabis activities subject to another development agreement) regarding the “state of the local cannabis industry” and the status of their respective developments. (See Mendota City Council Meeting Minutes, February 22, 2022.) During the presentation, Developers explained they have invested $8,200,000.00 in capital for infrastructure improvements, spent $3,400,000.00 in operating expenses, paid $1,500,000.00 in state tax, and provided approximately $600,000.00 in Public Benefit Fees to the City with only $462,391 in total revenue. Developers asserted they had taken approximately $13,200,000.00 in losses as a result of their operations in the City as of February 22, 2022. To that end, Developers indicated they lost 5-7% of their crop to a wind storm in the end of 2021. Developers stated there was a 50-90% decrease in the value of wholesale cannabis due to a shortage of retail outlets and overregulation throughout California. It is noteworthy that California has maintained its 2022 decision not to charge a cannabis cultivation tax. (See https://www.cdtfa.ca.gov/industry/cannabis/distributors-manufacturers-cultivators.htm.) On April 13, 2022, the City Manager contacted Developers via email to state that the City Council expects compliance with all DA payments and conditions as soon as possible. On or about April 18, 2022, Developers sent a picture of a check for the outstanding amounts due to the City Manager. On May 20, 2022, the City Manager contacted Developers to confirm Developers’ $150,000.00 check was returned for insufficient funds. In response, Developers wired a payment of $150,000.00 to the City, which cleared, satisfying Developers’ first of four Public Benefit Fee Quarterly Payment obligations for 2022. 6 Developers failed to make the required $150,000.00 quarterly public benefit fee payment in May 2022.
On July 1, 2022, California stopped charging commercial cannabis cultivators, like Developers, the state cannabis cultivation tax.
On July 12, 2022, Developers appeared before the City Council for an annual review hearing. (See Mendota City Council Meeting Minutes, July 12, 2022.) During the hearing, Developers reiterated concerns regarding the DA’s fees and the City’s general commercial cannabis activity fees. (Id.) The City Council requested Developers come into compliance with the DA and present alternative fee structures for consideration. (Id.) On July 21, 2022, Developers sent a letter to the City Manager outlining their work under the DA, requesting reforms to the City’s generally applicable fees related to commercial cannabis activity, and requesting a fee deferral in the amount of $600,000.00 for “Q2 2022, Q3 2022, Q4 2022 and Q1 2023. (Exhibit 5.) Developers proposed repayment of those amounts in twelve quarterly installments of $50,000.00 beginning in Q2 2023. (Id.) On August 2, 2022, another $150,000.00 came due, but went unpaid. Developers failed to pay the outstanding amounts due by October 29, 2022, and were officially in default after that date. (See Exhibit 1, DA, § 8.1.)
On October 11, 2022, Developers appeared at a City Council meeting to explain their inability to comply with the DA’s fee provisions. (See Mendota City Council Meeting Minutes, dated October 11, 2022.) Among other things, Developers cited making substantial investments into their own facilities, State licensing fees, and lack of profitability. (Id.) On November 2, 2022, another $150,000.00 came due, but went unpaid.
On November 18, 2022, the City sent Developers a Notice of Default and Demand for Cure.
Developers failed to pay the outstanding amounts due before the December 18, 2022, cure deadline. (Exhibit 1, DA, § 8.1.)
On December 13, 2022, Developers sent another letter to the City Manager requesting reforms to the City’s generally applicable fees related to commercial cannabis activity as applying to 2% of gross receipts in 2023 and beyond, and requesting a payment for the outstanding $450,000.00 due to the City in $35,000.00 quarterly installments. (Exhibit 6.) In light of Developers’ default, the City issued Notices of Development Agreement Review Hearings for January 18, 2023, by mailing, posting, and newspaper publication on or before January 8, 2023. (Exhibit 1, DA, § 8.1; Gov. Code, §§ 65865, 65867, 65868, 65090, 65091, 65094.)
The Planning Commission’s January 18, 2023, meeting proceeded as scheduled, wherein Developers offered testimony regarding their continued inability to pay the undisputed amounts due under the DA. Developers requested the Planning Commission recommend the City consider revising all cannabis businesses’ fee structures and consider approving Developers’ 7 requested repayment plan. (Exhibit 6.) The Planning Commission voted to forward these recommendations to the City Council for consideration.
Following this January 18, 2023, Planning Commission hearing, the City issued a Notice of Development Agreement Review Hearing for February 2, 2023, by mailing, posting, and newspaper publication on or before January 22, 2023.
On January 30, 2023, Developers sent the City a letter outlining procedural objections to the processes leading to the February 2, 2023, hearing. (Exhibit 7.) City staff responded to Developers on January 31, 2023, explaining Developers’ procedural objections are unfounded where the City’s conduct has actually given Developers additional time to pay the undisputed sums due to the City. (Exhibit 8.)
On February 2, 2023, the City Council hosted a public hearing to hear Developers’ comments and consider the Planning Commission's recommendations. (See Mendota City Council Meeting Minutes, dated February 2, 2023.) At the conclusion of the hearing, the City Council unanimously voted to proceed with terminating the DA for nonpayment. (Id.) Developers paid the City $350,000.00 before the expiration of the five-day cure period.
5. 2024 DA Compliance and 2025 Default Review Hearings
On May 2, 2024, $150,000.00 came due, but went unpaid. (Exhibit 9.) On August 2, 2024, $150,000.00 came due, but went unpaid. (Id.) On September 16, 2024, Developers made a payment of $100,000.00, bringing their unpaid balance down to $200,000.00. (Id.)
On November 2, 2024, $150,000 came due, but went unpaid. (Id.) This brought Developers’ unpaid balance up to $350,000.00. (Id.)
On December 6, 2024, the City sent Developers a Notice of Default and Demand for Cure (“Demand”). (Id.) In part, the Demand stated:
As of the date of this notice, a total of $350,000 is currently past due to the City. (See Development Agreement, §§ 4.2-4.6.) Pursuant to Section 8.1, subdivisions (a) and (e), of the Development Agreement, the City demands Developers cure this default by paying the City all outstanding amounts due within forty-six days of the date of this notice. Such deadline to cure Developers’ default expires at 5:00 p.m. on January 21, 2025. (Id., emphasis in original.) This forty-six-day cure period exceeded the thirty-day minimum period required by Subdivisions (a) and (b) of Section 8.1 of the DA. (Exhibit 1, DA, § 8.1, subd. (a).)
8 Developers failed to make the required payments to the City before 5:00 p.m. on January 21, 2025. (Exhibit 10.) Accordingly, Developers are in formal default of the DA. During this default, Developers are prohibited from submitting any permit applications to or receiving any permits from the City. (Exhibit 1, DA, § 8.1, subd. (f).) Pursuant to Subdivisions (b) and (c) of Section 8.1 of the DA, the City issued a Notice of Public Hearing to Review and Consider Status of Development Agreement Default, Entitlements, and Termination of Development Agreement for Wednesday, February 19, 2025, at 6:30 p.m., by mailing, posting, and newspaper publication before the applicable February 9, 2025, deadline. (Exhibit 1, DA, § 8.1; Exhibits 10-12; Gov. Code, §§ 65865, 65865.1, 65867, 65868, 65090, 65091, 65094.) These public notices cost the City more than $340.00, plus legal fees yet to be determined.
Another $150,000.00 came due on February 2, 2025, but went unpaid. (Exhibit 10.) This brought Developers’ unpaid balance up to $500,000.00; however, only the outstanding $350,000.00 figure in the Demand was in formal default at the time of the Planning Commission’s February 19, 2025, meeting. (Id.)
On February 18, 2025, Developers contacted the City to assert they would be paying all outstanding public benefit fees as follows: $175,000 on February 19, 2025; $175,000 on March 6, 2025; and $150,000 on March 26, 2025. (Exhibit 13.)
The Planning Commission hosted a public hearing on February 19, 2025, to review the status of Developers’ public benefit fee default under the DA. (Exhibit 14.) During the hearing, public participants appeared before the Planning Commission to assert Developers have failed to comply with the DA’s requirement that Developers and their agents maintain workers’ compensation insurance in connection with all activities onsite. (Exhibit 1, DA, § 6.1, subd. (c).) After finding Developers had failed to cure their default status for unpaid public benefit fees, the Planning Commission voted to recommend the City Council consider terminating the DA.
Developers issued public benefit fee payments to the City in the following amounts: $175,000 on February 19, 2025; $87,500 on March 7, 2025; and $87,500 on March 10, 2025. Those payments cured the formal default status related back to the Demand. To date, Developers have not paid the outstanding $150,000 that came due on February 2, 2025.
Pursuant to Subdivisions (b) and (c) of Section 8.1 of the DA, the City issued notices for the Hearings scheduled on Tuesday, April 15, 2025, at 6:00 p.m., by mailing, posting, and newspaper publication before the applicable April 5, 2025, deadline. (Exhibit 1, DA, § 8.1; Exhibits 15-17; Gov. Code, §§ 65865, 65865.1, 65867, 65868, 65090, 65091, 65094.) These enforcement efforts have cost the City several hundred dollars for public notices plus legal fees yet to be determined
ANALYSIS
9 The instant hearing was set to allow the City Council to consider the status of Developer’s default under the DA, consider the Planning Commission’s February 19, 2025, recommendation, and review Developers’ performance under the DA’s requirements. (See Exhibits 13-17.)
1. Relevant DA Provisions
The DA’s terms relevant to public benefit fees, default, and termination are as follows:
Section 4.2. Public Benefit.
(a) The Parties acknowledge and agree that this Agreement confers substantial private benefits upon Developer, OAH, and VA that will place burdens upon City infrastructure, services, and neighborhoods. Accordingly, the Parties
intend to provide consideration to City to offset these impacts that is commensurate with the private benefits
conferred on Developer, OAH, and VA (the “Public
Benefit Fee”). Developer, OAH, and VA acknowledge that
the Public Benefit Fees provided for herein are greater than the annual fee provided for in Mendota Municipal Code
section 17.99.070 and, despite this fact, voluntarily agree to pay the fees contemplated herein, acknowledging that the private benefits conferred are of equal or greater
consideration to the fees, and waives any right to challenge said fees as a violation of any law. In consideration of the foregoing, Developer, OAH, and/or VA shall remit to City:
(1) A one-time Public Contribution Payment in the
amount of ONE HUNDRED AND TWENTY
THOUSAND DOLLARS ($120,000) (the
“Contribution Payment”) within thirty (30) days of
Developer, OAH, and/or VA closing escrow on that
certain Purchase and Sale Agreement and Joint
Escrow Instructions entered into by and between
Developer, OAH, VA, and City on or about October
22, 2019, and thereby, Developer, OAH, and/or VA
obtaining fee title interest to the Property. City
acknowledges that Developer’s, OAH’s, and/or
VA’s obligation to remit the Contribution Payment
to the City, or any portion thereof, is strictly
conditioned on (a) the Agreement having obtained
final City approval, (b) Developer having obtained
the Conditional Use Permit as discussed in Section
2.5 above, (c) Developer having obtained any and
all “Subsequent Entitlements, Approvals, and
Permits” as discussed in Section 2.6 above, and (d)
10 Developer having obtained any and all “Subsequent
City Approvals” as discussed in Section 3.1 above.
(2) As described in Section 17.99.070 of the Mendota
Municipal Code, an annual “Public Benefit Fee” in
the greatest amount of the following, as applicable:
(i) FIVE DOLLARS ($5.00) per square foot for
so long as the Developed Portions of the
Property are less than two hundred thousand
(200,000) square feet; or
(ii) FOUR DOLLARS ($4.00) per square foot
for so long as the Developed Portions of the
Property are between two hundred thousand
(200,000) square feet and four hundred
ninety-nine, nine hundred ninety-nine
thousand (499,999) square feet; or
(iii) For so long as the Developed Portions of
the Property are five hundred thousand
(500,000) square feet or greater, the
greater amount of the following:
(A) SIX HUNDRED THOUSAND
DOLLARS ($600,000); or
(B) Four percent (4%) of the Project’s
annual Gross Receipts, as defined in
Section 1.4.
To the extent that Section 4.2(a)(2) is applicable for the calculation of the Public Benefit Fee, said fee will be adjusted pursuant to the Consumer Price Index for the
Fresno/Clovis metropolitan area (All Urban Consumers)
published by the United Stated Department of Labor,
Bureau of Labor and Statistics (“Index”). The adjustment shall be made based on the first Index published in the year for which the Public Benefit Fee is paid and shall be
subject to a maximum increase of 2% in any given year.
(3) The annual Public Benefit Fee described in Section
4.2, above, shall be paid in quarterly installments on
the first (1st) business day of every third (3rd)
month (“Quarterly Payment”).
11 (b) Developer, OAH, and/or VA shall remit the Contribution Payment and the Public Benefit Fee as applicable, to City as described in subdivisions (a.1), (a.2), and (a.3) of this Section. Failure to remit the Contribution Payment and
Public Benefit Fee, as applicable, is a material breach of this Agreement and shall be sufficient grounds for
revocation of all entitlements associated with the
Project. For purposes of clarity and avoidance of doubt, the Parties agree and acknowledge that Developer’s,
OAH’s, and/or VA’s obligation to commence making the
Public Benefit Fee payment to the City shall commence on the first day of Project operation when the first crop is planted and not prior to that date.
(Exhibit 1, DA, § 4.2, emphasis added.)
Section 4.5. Late Fee.
Developer, OAH, and VA acknowledge that, to ensure proper compliance with the terms of this Agreement and any applicable laws, City must engage in costly compliance review, inspections, and, if necessary, enforcement actions to protect the health, safety, and welfare of its residents. Liquidated damages and interest provisions are necessary to assist City in compliance review and enforcement actions. If Developer, OAH, or VA fail to make any payment when due as required by this Agreement, including the Public Benefit Amount, City may impose a “Non-Performance Late Fee.” A Non-Performance Late Fee of one percent (1%) shall be applied to all past due payments. City shall deliver to Developer, OAH, and/or VA a “Notice of Non-Performance Late Fee,” attached hereto as Exhibit C. Payment of the NonPerformance Late Fee shall be in a single installment due on or before a date fifteen (15) calendar days following delivery of the Notice of Non-Performance Late Fee. The Parties hereto
acknowledge and agree that the sums payable under this Section
4.5 shall constitute liquidated damages and not penalties and are in addition to all other rights of the City, including the right to call a default. The Parties further acknowledge that (i) the amount of loss or damages likely to be incurred is incapable or is difficult to precisely estimate, (ii) the amounts specified herein bear a reasonable relationship to, and are not plainly or grossly disproportionate to, the probable loss likely to be incurred in connection with any failure by Developer, OAH, or VA to remit payment as required by this Agreement, (iii) one of the reasons for the Parties’ agreement as to such amounts was the uncertainty and cost of litigation regarding the question of actual damages, and (iv) 12 the Parties are sophisticated business parties and have been represented by sophisticated and able legal counsel and negotiated this Agreement at arm’s length.
Section 4.6. Interest on Unpaid Non-Performance Late Fee.
If Developer, OAH, and/or VA fail to pay the Non-Performance Late Fee after City has delivered the Notice of Non-Performance Late Fee, then, in addition to the principal amount of the NonPerformance Late Fee, Developer, OAH, and/or VA shall pay City interest at the rate of eighteen percent (18%) per annum, computed on the principal amount of the Non-Performance Late Fee, from a date fifteen (15) calendar days following delivery of the Notice of Non-Performance Late Fee.
(Exhibit 1, DA, §§ 4.5, 4.6.)
Section 8.1. General Provisions.
(a) Subject only to any extensions of time by mutual consent in writing, or as otherwise provided herein, the failure or delay by any Party to perform in accordance with the terms and provisions of this Agreement shall constitute a default.
Any Party alleging a default or breach of this Agreement (“Charging Party”) shall give the other Party (“Charged Party”) not less than thirty (30) calendar days’ written notice, which shall specify the nature of the alleged default and the manner in which the default may be cured. During any such thirty (30) calendar day period, the Charged Party shall not be considered in default for purposes of
termination of this Agreement or institution of legal
proceedings for the breach of this Agreement.
(b) After expiration of the thirty (30) calendar day period, if such default has not been cured or is not in the
process of being diligently cured in the manner set forth in the notice, or if the breach cannot reasonably be
cured within thirty (30) calendar days, the Charging
Party may, at its option, institute legal proceedings
pursuant to this Agreement or give notice of its intent to terminate this Agreement pursuant to Government
Code section 65868. In the event City is the Charging
Party, City may, in its sole discretion, give notice, as required by law, to the Charged Party of its intent to
revoke or rescind any operable Conditional Use Permit
or other entitlement related to or concerning the
Project.
13 (c) Prior to the Charging Party giving notice to the Charged Party of its intent to terminate, or prior to
instituting legal proceedings, the matter shall be
scheduled for consideration and review by City in the
manner set forth in Government Code sections 65865,
65867, and 65868 or the comparable provisions of the
Mendota Municipal Code within thirty (30) calendar days from the expiration of the thirty (30) day notice period. (d) Following consideration of the evidence presented and said review before City, and after providing the
Charged Party an additional five (5) calendar day
period to cure, the Charging Party may institute legal
proceedings against the Charged Party or may give
written notice of termination of this Agreement to the
Charged Party.
(e) Evidence of default may arise in the course of a regularly scheduled periodic review of this Agreement pursuant to Government Code section 65865.1, as set forth in Section
8.2. If any Party determines that another Party is in default following the completion of the normally scheduled
periodic review, without reference to the procedures
specified in Section 8.1(c), said Party may give written notice of termination of this Agreement, specifying in the notice the alleged nature of the default and potential actions to cure said default where appropriate. If the alleged default is not cured in thirty (30) calendar days or within such longer period specified in the notice or the defaulting Party is not diligently pursuing a cure or if the breach cannot reasonably be cured within the period or the defaulting party waives its right to cure such alleged default, this Agreement may be terminated by the non-defaulting Party by giving written notice.
(f) In the event Developer, OAH, and/or VA are in default under the terms and conditions of this Agreement, no
permit application shall be accepted by City nor will
any permit be issued to Developer, OAH, and/or VA
until the default is cured, or the Agreement is
terminated.
(g) In the event that a person or entity other than the Developer, OAH, and/or VA are in default, Developer,
OAH, and/or VA shall use commercially reasonable efforts to bring the person or entity in default into compliance.
The City shall provide the Developer, OAH, and/or VA
14 with notice and opportunity to cure as provided for in paragraph (a) through (e) above, except that the time
periods in paragraphs (a), (b), (c), and (e) shall be ninety (90) days.
(Exhibit 1, DA, § 8.1, emphasis added.)
Section 8.5. Cumulative Remedies of Parties.
In addition to any other rights or remedies, City, Developer, OAH, and/or VA may institute legal or equitable proceedings to cure, correct, or remedy any default, enforce any covenant, or enjoin any threatened or attempted violation of the provisions of this Agreement, so long as any such action conforms to Section 8.1(c) of this Agreement.
(Exhibit 1, DA, § 8.5.)
2. Relevant Government Code Provisions
(a) Any city, county, or city and county, may enter into a development agreement with any person having a legal or equitable interest in real property for the development of the property as provided in this article.
(b) Any city may enter into a development agreement with any person having a legal or equitable interest in real property in unincorporated territory within that city’s sphere of influence for the development of the property as provided in this article.
However, the agreement shall not become operative unless annexation proceedings annexing the property to the city are completed within the period of time specified by the agreement. If the annexation is not completed within the time specified in the agreement or any extension of the agreement, the agreement is null and void.
(c) Every city, county, or city and county, shall, upon request of an applicant, by resolution or ordinance, establish procedures and requirements for the consideration of development agreements upon application by, or on behalf of, the property owner or other person having a legal or equitable interest in the property. (d) A city, county, or city and county may recover from applicants the direct costs associated with adopting a resolution or ordinance to establish procedures and requirements for the consideration of development agreements.
15 (e) For any development agreement entered into on or after January 1, 2004, a city, county, or city and county shall comply with Section 66006 with respect to any fee it receives or cost it recovers pursuant to this article.
(Gov. Code, § 65865.)
Procedures established pursuant to Section 65865 shall include provisions requiring periodic review at least every 12 months, at which time the applicant, or successor in interest thereto, shall be required to demonstrate good faith compliance with the terms of the agreement. If, as a result of such periodic review, the local agency finds and determines, on the basis of substantial evidence, that the applicant or successor in interest thereto has not complied in good faith with terms or conditions of the
agreement, the local agency may terminate or modify the agreement.
(Gov. Code, § 65865.1, emphasis added.)
A public hearing on an application for a development agreement shall be held by the planning agency and by the legislative body. Notice of intention to consider adoption of a development agreement shall be given as provided in Sections 65090 and 65091 in addition to any other notice required by law for other actions to be considered concurrently with the development agreement. (Gov. Code, § 65867, emphasis added.)
(a) A development agreement is a legislative act that shall be approved by ordinance and is subject to referendum.
(b) A development agreement shall not be approved unless the legislative body finds that the provisions of the agreement are consistent with the general plan and any applicable specific plan. (c) A development agreement that includes a subdivision, as defined in Section 66473.7, shall not be approved unless the agreement provides that any tentative map prepared for the subdivision will comply with Section 66473.7.
(d) Notwithstanding Section 65803, this section shall also apply to a charter city.
(Gov. Code, § 65867.5.)
16 A development agreement may be amended, or canceled in whole or in part, by mutual consent of the parties to the agreement or their successors in interest. Notice of intention to amend or cancel any portion of the agreement shall be given in the manner provided by Section 65867. An amendment to an
agreement shall be subject to the provisions of Section 65867.5. (Gov. Code, § 65868, emphasis added.)
FISCAL IMPACT
Developers currently owe the City $150,000.00 in public benefit fees.
Enforcement costs and legal fees yet to be determined.
RECOMMENDATIONS
Staff recommends the City Council listen to testimony submitted by Developers, if any; discuss Developers’ performance under the DA and their default status; and consider the Planning Commission’s recommendations regarding the outstanding public benefit fees due to the City under the DA and next steps regarding the City’s enforcement of the DA.
Exhibits:
1. Development Agreement
2. Conditional Use Permit
3. City Letter Regarding Request for Conditional Use Permit Modifications
4. Acknowledgment and Waiver from Odyssey Agricultural Holdings, LLC
5. Developers’ Letter dated July 21, 2022
6. Developers’ Letter dated December 13, 2022
7. Developers’ January 30, 2023, Letter to City Staff
8. City’s January 31, 2023, Letter to Developers
9. Notice of Default and Demand for Cure dated December 6, 2024
10. City’s February 4, 2025, Letter Providing Notice of Public Hearing to Review and Consider Status of Development Agreement Default, Entitlements, and Termination of Development Agreement before the Planning Commission on February 19, 2025
11. Posted Notice of Public Hearing to Review and Consider Status of Development Agreement Default, Entitlements, and Termination of Development Agreement before the Planning Commission on February 19, 2025
12. Published Notice of Public Hearing to Review and Consider Status of Development Agreement Default, Entitlements, and Termination of Development Agreement before the Planning Commission on February 19, 2025
13. February 18, 2025, Correspondence from Developers
14. February 19, 2025, Special Planning Commission Meeting Agenda
15. City’s April 1, 2025, Letter Providing Notice Two Public Hearings Before the City Council on April 15, 2025
17 16. Posted Notice of Two Public Hearings Before the City Council on April 15, 2025
17. Published Notice of Public Hearing to Review and Consider Status of Development Agreement Default, Entitlements, and Termination of Development Agreement on April 15, 2025
EXHIBIT EXHIBIT EXHIBIT 11
Bl AAP LUA ROR RAMP
2021-0078341
FRESNO County Recorder Paul Dictos, CPA
AND WHEN RECORDED SIATL Wednesday, May 12, 2021 11:32:09 AM TO: Titles: 1 Pages: 43
Fees: Q.00
City of Mendota CA SB2 Fee: ®.00
643 Quince Street Tener) es
Mendota, California 93640 crty 6F MENDOTA
Attn: Cristian Gonzalez
SPACE ABOVE THIS LINE FOR RECORDER’S USE
Recording Fee Exempt per Government Code §6103 and §27388.1(2)(D)
DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into this 26th. day of March , 2021, by and between the CITY OF MENDOTA, a municipal corporation of the State of California (“City”), ODYSSEY AGRICULTURAL DEVELOPMENT, LLC, a California limited liability company (“Developer”), ODYSSEY AGRICULTURAL HOLDINGS, LLC, a California limited liability company (“OAH”), and VALLEY AGRICULTURAL HOLDINGS, LLC, a California limited liability company (“VA”). City, Developer, OAH, or VA may be referred to herein individually as a “Party” or collectively as the “Parties.” There are no other parties to this Agreement.
RECITALS
A. On October 9, 2015, Governor Jerry Brown signed three bills into law (Assembly Bill 266, Assembly Bill 243, and Senate Bill 643) which are collectively referred to as the Medical Cannabis Regulation and Safety Act (“MCRSA”). MCRSA establishes a statewide regulatory system for the cultivation, processing, transportation, testing, manufacturing, and distribution of medical marijuana to qualified patients and their primary caregivers.
B. On November 8, 2016, California voters enacted Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act, also known as the Adult Use of Marijuana Act (“AUMA”), which establishes a comprehensive system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical cannabis, including cannabis products, for use by adults 21 years and older, and to tax the growth and retail sale of cannabis for nonmedical use.
GC On June 27, 2017, Governor Jerry Brown signed into law the Medicinal and AdultUse Cannabis Regulation and Safety Act (“MAUCRSA”), which creates a single regulatory scheme for both medicinal and adult-use cannabis businesses. MAUCRSA retains the provisions in MCRSA and AUMA that granted local jurisdictions control over whether businesses engaged in Commercial Cannabis Activity, as defined in Section 1.4 of this Agreement, may operate in a particular jurisdiction.
D. Government Code section 65865 requires an applicant for a development agreement to hold a legal or equitable interest in the real property that is the subject of the development agreement. On or about October 22, 2019 the City and VA entered into that certain Purchase and Sale Agreement to purchase that certain real property located approximately one-quarter mile east of W. Belmont Avenue, and approximately one-half mile north of Guillan Park Drive, in the City of Mendota, County of Fresno, State of California, Assessor’s Parcel Number 013-030-68ST (the Site”), as more particularly described in the legal descriptions attached hereto as Exhibit A and depicted on the Site Map attached hereto as Exhibit B.
E. The members of VA determined that it would be in their respective best interests to cause VA to assign the right to purchase the Site under the Purchase and Sale Agreement to two single-purpose entities: (1) OAH; and (2) BOCA DEL RLO HOLDINGS, LLC (“BDR”). On January 26, 2021, the City Council of the City of Mendota approved a third amendment to the Purchase and Sale Agreement, permitting VA to assign its right to purchase the Property to BDR and OAH. VA has assigned its interest in approximately thirty-five (35) acres of the Property to OAH.
F; Prior to close of escrow on Developer’s purchase of the Property, Developer shall submit an application to the City to subdivide the Property into two (2) separate legal parcels, with the first parcel being sixty percent (60%) of the Property, or approximately thirty-five (35) acres (to be operated by Developer, OAH, and/or VA), and the second parcel being forty percent (40%) of the Property, or approximately twenty-four (24) acres (to be operated by BOCA DEL RIO AGRICULTURE, LLC, a California limited liability company; BDR; and/or VA).
G. Developer, OAH, and/or VA proposes to improve, develop, and use the Property as a guard-gated and secure Cannabis Facility for cultivation, manufacturing, and distribution of Cannabis and Cannabis Products, as defined in Section 1.4 of this Agreement, in strict accordance with California Cannabis Laws, as defined in Section 1.4 of this Agreement, as they may be amended from time to time, and the Municipal Code of the City of Mendota as it existed on the Effective Date (the “Project”). Developer, OAH, and/or VA intend to develop the Project in two distinct phases, specifically: (1) the first phase of the Project will consist of land development and the construction of “Outdoor and Mixed Light Cultivation” structures as defined in Section 1.4 of this agreement, located in various areas throughout the Site (“Phase I’), and (2) the second phase of the Project may consist of the construction of a “headhouse” used for the processing of harvested cannabis, administrative offices, employee breakroom(s), restrooms, and other ancillary Project needs (“Phase 2”).
H. 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 ef seq. (the “Development Agreement Statute”), which authorizes 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.
I. On September 12, 2017, the City Council of Mendota (“City Council”) adopted Ordinance No. 17-13, creating the Commercial Cannabis Overlay District and establishing zoning limitations and requirements for all cannabis businesses located therein, including the proposed
cannabis facility to be located at the Site.
J, On June 11, 2019, the City Council adopted Ordinance No. 19-06, establishing additional requirements for the operation and entitlement of commercial cannabis businesses operating within the City.
K. Prior to the City’s adoption of Ordinance No. 19-06, VA submitted a request to the City for consideration of a development agreement for the Project pursuant to the requirements of Chapter 17.99 of the Mendota Municipal Code.
L, On September 8, 2020, the City Council adopted Ordinance No, 20-16, establishing additional requirements for the operation and entitlement of commercial cannabis businesses operating within the City.
M. Government Code § 65867 requires the Planning Commission to hold a public hearing to review an application for a development agreement.
N. On December 29, 2021, after a duly noticed and held meeting in accordance with Government Code § 65867, the City’s Planning Commission voted to recommend approval of VA’s application for a development agreement for the Project.
O. On January 12, 2021, the City Council, in a duly noticed public hearing, introduced and conducted the first reading of Ordinance No. 21-XX, an Ordinance to Approve a Development Agreement by and Between the City of Mendota and Valley Agricultural Holdings, LLC.
P; Pursuant to Government Code section 65867.5, on January 26, 2021, the City Council reviewed, considered, adopted, and entered into this Agreement pursuant to Ordinance No. 21-XX. ©.
Q. This Agreement is entered into pursuant to the Development Agreement Statute and the Mendota Municipal Code.
R. City, Developer, OAH, and VA desire to enter into this Agreement to: (i) facilitate the orderly development of the Site in general and specifically to ensure that such development is consistent with Title 17 of the Mendota Municipal Code; (ii) create a physical environment that is consistent with, complements, and promotes the purposes and intent of the Commercial Cannabis Overlay District and the regulations adopted therewith; (iii) protect natural resources from adverse impacts; and (vi) reduce the economic risk of development of the Site to both City, Developer, OAH, and VA.
S. The Parties intend through this Agreement to allow Developer, OAH, and/or VA to develop and manage the Project in accordance with the terms of this Agreement. ‘D The City Council has determined that this Agreement is consistent with City’s General Plan and have conducted all necessary proceedings in accordance with City’s Municipal Code for the approval of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the Parties do hereby agree as follows:
AGREEMENT
ARTICLE 1
GENERAL PROVISIONS
Section 1.1, Findings. City hereby finds and determines that entering into this Agreement furthers the public health, safety, and general welfare and is consistent with City’s General Plan, including all text and maps in the General Plan.
Section 1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into and made a part of this Agreement. In the event of any inconsistency between the Recitals and the provisions of Articles | through 10 of this Agreement, the provisions of Articles 1 through 10 shall prevail. Section 1.3. Exhibits. The following “Exhibits” are attached to and incorporated into this Agreement:
p icnatl Descripi
Exhibit A Legal Description (Entire Site)
Exhibit B Site Map (Entire Site)
Exhibit C Legal Description (Developer/OAH/VA Parcel)
Exhibit D Site Map (Developer/OAH/VA Parcel)
Exhibit E Notice of Non-performance Late Fee
Exhibit F Notice of Termination
Exhibit G Assignment and Assumption Agreement
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meaning:
(a) “Additional Insureds” has the meaning set forth in Section 6.1. (b) “Additional License” means a state license to operate a cannabis business pursuant to the California Cannabis Laws that is not an Authorized License. (c) “Adult-Use Cannabis” means a product containing cannabis, including, but not limited to, concentrates and extractions, intended for use by adults 21 years of age or over in California pursuant to the California Cannabis Laws.
(d) “Agreement” means this Development Agreement, inclusive of all Exhibits attached hereto.
(e) “Application” means the application for a development agreement submitted by
Developer to the City.
(f) “Assignment
and Assumption Agreement” has the meaning set forth in Section 10.1. (g) “AUMA” means the Adult Use of Marijuana Act (Proposition 64) approved by California voters on November 8, 2016.
(h) “Authorized License” has the meaning set forth in Section 2.3. (i) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation. (j) “California Building Standards Codes” means the California Building Code, as amended from time to time, in Part 2, Volumes | and 2, as part of Title 24 of the California Code of Regulations, as may be adopted by the Mendota Municipal Code. (k) “California Cannabis Laws” includes AUMA, MAUCRSA, CUA, the Medical Marijuana Program Act of 2004 codified as Health and Safety Code sections 11362.7 through
11.62.83, and any other applicable state laws that may be enacted or approved. (1) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.
For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term “marijuana” may be used interchangeably.
(m) “Cannabis Business” means a cannabis business operating pursuant to an Authorized License.
(n) “Cannabis Product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
(0) “CEQA” means the California Environmental Quality Act, as set forth in Division 13 (Commencing with Section 21000) of the California Public Resources Code, and the CEQA Guidelines as set forth in Title 14 (Commencing with Section 15000) of the California Code of Regulations. (p) “City” means the City of Mendota, a municipal corporation having general police
powers,
(q) “City Council” means the City of Mendota City Council. (r) “City Manager” means the City Manager of the City of Mendota, or his or her designee.
(s) “Charged Party” has the meaning set forth in Section 8.1. (t) “Charging Party” has the meaning set forth in Section 8.1. (u) “Commercial Cannabis Activity” means to cultivate, manufacture, distribute, or test a cannabis product provided for by Division 10 (commencing with Section 26000) of the Business and Professions Code.
(v) “Conditional Use Permit” means a conditional use permit for the Project issued by the City pursuant to Mendota Municipal Code Chapter 17.08.050. (w) “Contribution Payment” has the meaning set forth in Section 4,2. (x) “CUA” means the Compassionate Use Act (Proposition 215) approved by California voters on November 5, 1996.
(y) “Developer” means Odyssey Agricultural Development LLC and its assignees or successors as allowed herein. Developer also has the meaning set forth in Section 6.1. (z) “Developed Portions of the Property” means the designated structure or structures and land specified in the development agreement application that is owned, leased, or otherwise held under the control of Developer, OAH, and/or VA.
(aa) “Development Agreement Statute” has the meaning set forth in Recital H. (bb) “Exhibits” has the meaning set forth in Section 1.3. (cc) “Gross Receipts” shall mean total revenue received or receivable by the Developer, OAH, and/or VA from any Commercial Cannabis Activity on the Property or from operation of the Project on the Property, including: all sales; the total amount of compensation received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise; and gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends, or other remunerations, however designated. Included in "Gross Receipts" shall be all receipts, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:
(1) Cash discounts allowed and taken on Commercial Cannabis Activity sale;
(2) Any tax required by law to be included in or added to the purchase price of Commercial Cannabis Activity and collected from the consumer or purchaser; (3) Such part of the sale price of property returned by purchasers in any Commercial Cannabis Activity upon rescission of a contract of sale as is refunded either in cash or by credit; and (4) Receipts of refundable deposits in any Commercial Cannabis Activity, except that such deposits when forfeited and taken into income of the business shall not be excluded.
The intent of this definition is to ensure that in calculating the payments required under Section
17.99.070(A) of the Mendota Municipal Code, all sales related to Commercial Cannabis Activity or any other cannabis and cannabis products at the Property or through the Project are captured. This definition shall therefore be given the broadest possible interpretation consistent with this intent. (dd) “Indoor Cultivation” means a Type 1A, Type 2A, Type 3A, and Type SA license classifications, as set forth in Business and Professions code sections 26061(a)(2), 26061(a)(6), 26061(a)(9), and 26061(b)(2).
(ee) “Major Amendment” means an amendment that shall have a material effect on the terms of the Agreement. Major Amendments shall require approval by the City Council. (ff) “Marijuana” has the same meaning as cannabis and those terms may be used interchangeably.
(gg) “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, codified as Business and Professions Code section 26000 ef seq. (hh) “MCRSA” has the meaning set forth in Recital A.
(ii) “Ministerial Fee” or “Ministerial Fees” have the meanings set forth in Section 4.1. (ij) “Minor Amendment” means a clerical amendment to the Agreement that shall not materially affect the terms of the Agreement (e.g., change of notice address) and any amendment described as minor herein.
(kk) “Mixed-Light Cultivation” means a Type 1B, Type 2B, Type 3B, and Type 5B license classifications, as set forth in Business and Professions code sections 26061(a)(3), 26061(a)(7), 26061(a)(10), and 26061(b)(3).
(i) “Mortgage” has the meaning set forth in Article 7.
(mm) “Non-Performance Late Fee” has the meaning set forth in Section 4.3. (nn) “Notice
of Non-Performance Late Fee” has the meaning set forth in Section
4.3,
7 (00) “Notice
of Termination” has the meaning set forth in Section 9.1. (pp) “Processing Costs” has the meaning set forth in Section 1.11. (qq) “Project” has the meaning set forth in Recital G. (rr) “Project Litigation” has the meaning set forth in Section 10.6.
(ss) “Public Benefit Fee” has the meaning set forth in Section 4.2. (tt) “Outdoor Cultivation” means Type 1, Type 2, Type 3, and Type 5 license classifications, as set forth in Business and Professions code sections 26061(a)(1), 26061 (a)(5), 26061 (a)(8), and 26061(b)(1)
(uu) “Site” has the meaning set forth in Recital D.
(vv) “State
Cannabis Manufacturing Regulations” means the regulations related to cannabis manufacturing issued by a State Licensing Authority in accordance with Chapter 13 (commencing with Section 26130) of Division 10 of the Business and Professions Code, which may be amended from time to time.
(ww) “State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of a state cannabis license, or the state agency authorized to take disciplinary action against a business licensed under the California Cannabis Laws. (xx) “State Taxing Authority” has the meaning set forth in Section 4.2, (yy) “Subsequent City Approvals” has the meaning set forth in Section 3.1. (zz) “Term” has the meaning described in Section 1.7.
Section 1.5, Project is a Private Undertaking. The Parties agree that the Project is a private development and that City has no interest therein, except as authorized in the exercise of its governmental functions. City shall not for any purpose be considered an agent, partner, or joint venturer of Developer, OAH, VA, or the Project.
Section 1.6. Effective Date of Agreement. This Agreement shall become effective upon the date that the ordinance approving this Agreement becomes effective and title to the Site is vested in the Developer (the “Effective Date”), Section 1.7. Term. The “Term” of this Agreement is twenty (20) years from the Effective Date, unless terminated or extended earlier, as set forth in this Agreement.
(a) Government Tolling or Termination. City may provide written notice to Developer, OAH, and/or VA to cease all Commercial Cannabis Activity, upon which Developer, OAH, and/or VA shall immediately comply, only if City is specifically required to comply with
federal or state law and such federal or state law requires cessation of Cannabis Cultivation Activities. If City temporarily halts this Agreement to comply with federal or state law, this Agreement shall be tolled for an equivalent period of time (the “Tolling Period”). Developer, OAH, and/or VA shall not accrue or be liable to City for any Ministerial Fees or Public Benefit Amount during the Tolling Period. Developer, OAH, and/or VA shall resume paying any applicable fees after the Tolling Period ends. City and Developer, OAH, and/or VA shall discuss in good faith the termination of this Agreement if the Tolling Period exceeds one (1) calendar year. (b) Developer/OAH/VA Tolling or Termination. Developer, OAH, and/or VA shall not temporarily halt or suspend this Agreement for any purpose without causing a default of this Agreement, except as otherwise allowed by this Agreement. (c) Developer/OAH/VA Termination. Developer, OAH, and/or VA may provide written notice to City of intent to cease all Commercial Cannabis Activity, if Developer, OAH, and/or VA are required, directed, or believes, in their sole and absolute discretion, they must temporarily halt or terminate Commercial Cannabis Activity. In such an event, Developer’s, OAH’s, and/or VA’s obligations under this Agreement shall terminate. Any resumption of Commercial Cannabis Activity shall be subject to approval by the City Manager.
Section 1.8. Priority of Enactment. In the event of conflict between the various land use documents referenced in this Agreement, the Parties agree that the following sequence of approvals establishes the relative priority of the approvals, each approval superior to the approvals listed thereafter: (a) General Plan, (b) Agreement, (c) Conditional Use Permit, and (d) Subsequent City Approvals, as defined in Section 3.1 of this Agreement.
Section 1.9. Amendment of Agreement. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing. The City Council hereby expressly authorizes the City Manager to approve a Minor Amendment to this Agreement, upon notification of the City Council. A Major Amendment to this Agreement shall be approved by the City Council. The City Manager shall, on behalf of City, have sole discretion for City to determine if an amendment is a Minor Amendment or a Major Amendment. Nothing in this Agreement shall be construed as requiring a noticed public hearing, unless required by law.
Section 1.10. Recordation of Development Agreement. The City Clerk shall cause a copy of this Agreement to be recorded against the title of the Site within ten (10) business days of the Effective Date.
Section 1.11. Funding Agreement for Processing Costs. Developer has deposited fifteen thousand dollars ($15,000) with City to pay for the Application, all actual fees and expenses incurred by City that are related to the preparation, processing and annual review of this Agreement, including recording fees, publishing fees, staff time, consultant and attorney fees and costs (collectively, “Processing Costs”). The Processing Costs are refundable solely to the extent of non-expended Processing Costs. Developer shall be entitled to a refund of available Processing Costs only after City determines all financial obligations associated with the Project have been received and paid by City.
(a) Apportionment of Processing Costs. If the amount deposited for purposes of Processing Costs is insufficient to cover all Processing Costs, City shall provide notice to Developer, OAH, and/or VA and Developer, OAH, and/or VA shall deposit with City such additional funds necessary to pay for all Processing Costs within thirty (30) calendar days. The failure to timely pay any such additional amounts requested by City shall be considered a material default of this Agreement and City may immediately terminate this Agreement and all entitlements associated with the project.
(b) Accounting. Developer may request, and City shall issue within two (2) weeks, an accounting and written acknowledgement of Processing Costs paid to City.
ARTICLE 2
DEVELOPMENT OF PROPERTY
Section 2.1. Vested Right of Developer/OAH/VA. During the Term, in developing the Site consistent with the Project described herein, Developer, OAH, and VA are assured that the development rights, obligation terms, and conditions specified in this Agreement, including, without limitation, the terms, conditions, and limitations set forth in the Exhibits, are fully vested in Developer, OAH, and VA and may not be modified or terminated by City except as set forth in this Agreement or with Developer, OAH, and/or VA written consent.
Section 2.2. Vested Right to Develop. In accordance with Section 2.1, Developer, OAH, and/or VA shall have the vested right to develop and use the Project consistent with this Agreement, the existing City regulations and codes, the Conditional Use Permit, and Subsequent City Approvals. Developer, OAH, and VA hereby acknowledge and agree that a condition of approval for the Conditional Use Permit will be that this Agreement remain in full force and effect for the duration of the Term and that any assignment or transfer of Developer’s, OAH’s, and/or VA’s interests under this Agreement may be made only with the City’s consent in accordance with Section 10.1 herein.
Section 2.3. Permitted Uses and Development Standards. Developer, OAH, and/or VA shall be authorized to develop, construct, and use the Site for Commercial Cannabis Activity consistent with the following license
types (the “Authorized License”):
License Description State License Type(s)
Cultivation Indoor LA/2A/3A/5A
Mixed Light Cultivation 1B/2B/3B/SB
Outdoor Cultivation 1/2/3/5
Cultivation Nursery 4
Manufacturing | 6
Manufacturing 2 fi
Laboratory Testing 8
Distribution 11
Transportation 12
Cultivation Processor C-P
Developer, OAH, and/or VA or their tenants or assignees shall be permitted to use the Site consistent
/0
with the Authorized License for the Term of this Agreement and during the time Developer, OAH, and/or VA, or their tenants or assignees, are applying for the Authorized License with the applicable State Licensing Authority. Notwithstanding the foregoing, Developer, OAH, and/or VA, or their tenants or assignees, are required to apply for and obtain the Authorized License from the State of California, If the State Licensing Authority does not grant the Authorized License to Developer, OAH, and/or VA, or their tenants or assignees, Developer, OAH, and/or VA, or their tenants or assignees, shall immediately cease Commercial Cannabis Activity on the Site. Developer and/or OAH, or their tenants or assignees, shall also, within ten (10) calendar days of receiving notice from the State Licensing Authority, notify City of the State Licensing Authority’s denial or rejection of any license. If the Authorized License is not granted by the State of California, Developer, OAH, and/or VA, or their tenants or assignees, shall immediately cease operations. In this situation, this Agreement shall terminate immediately. The Parties intend for this Agreement and the Conditional Use Permit to serve as the definitive and controlling documents for all subsequent actions, discretionary or ministerial, relating to development of the Site and Project.
Section 2.4. Major Amendment to Permitted Uses, Developer, OAH, and/or VA may request to add one or more of the license types then authorized by the California Cannabis Laws to the Authorized License. If City Council allows any Additional Licenses, City Council shall make a finding of whether Developer’s, OAH’s, and/or VA’s, or their tenants’ or assignees’, Additional Authorized Licenses will have any additional impact on City neighborhoods, infrastructure, or services. Developer, OAH, and/or VA shall be required to compensate City for all additional impacts on City infrastructure or services associated with any Additional Licenses and the Public Benefit Fee amount shall be revised accordingly. This process shall be a Major Amendment to this Agreement.
Section 2.5. Development Permit. By entering into this Agreement, City understands and acknowledges that prior to Developer, OAH, and/or VA commencing any development or construction activities on the Site, or the operation of any Commercial Cannabis Activity on the Site, Developer, OAH, and/or VA are required to obtain from the City a Conditional Use Permit and any applicable Subsequent City Approvals. Developer, OAH, and/or VA shall be required to comply with all provisions of the Mendota Municipal Code and any other City rules and administrative guidelines associated with implementation of the Commercial Cannabis Overlay District. Nothing in this Agreement shall be construed as limiting the ability of City to amend the Mendota Municipal Code or issue rules or administrative guidelines associated with implementation of the Commercial Cannabis Overlay District or Developer’s, OAH’s, and VA’s obligation to strictly comply with the same.
Section 2.6. Subsequent Entitlements, Approvals, and Permits. Successful implementation of the Project shall require Developer, OAH, and/or VA to obtain additional approvals and permits from City and other local and state agencies. City shall comply with CEQA in the administration of all Subsequent City Approvals. In acting upon any Subsequent City Approvals, City’s exercise of discretion and permit authority shall conform to this Agreement. Notwithstanding the foregoing, in the course of taking action on the Subsequent City Approvals, City will exercise discretion in adopting mitigation measures as part of the Conditional Use Permit. Any entitlements and/or development standards required by the City that are not contemplated in the Conditional Use Permit shall, to the extent practicable, be consistent with the County of Fresno’s development standards for “Exclusive Agricultural” uses as set forth in the Fresno County Ordinance Code - Division 6, Zoning Ordinance. The exercise of this discretion is not prohibited by this Agreement, but the exercise of
that discretion must be reasonable and consistent with this Agreement. Nothing in this Agreement shall preclude the evaluation of impacts or consideration of mitigation measures or alternatives, as required by CEQA.
Section 2.7. No Commitment to Project Approval. Developer, OAH, and VA understand and acknowledge that City shall be under no obligation whatsoever to approve or to issue to Developer, OAH, or VA any development entitlement, including, but not limited to, a Conditional Use Permit or any applicable Subsequent City Approvals, related to Developer’s, OAH’s, and/or VA’s development or construction activities on the Site, or the operation of any Commercial Cannabis Activity on the Site. City will conduct environmental review of the relevant activity or activities in accordance with the requirements of CEQA prior to granting any approval associated with the Development Entitlements. Developer, OAH, and VA acknowledge and agree that, in accordance with Seller’s obligations under CEQA, City may, after conducting appropriate environmental review, decide not to approve some or all of the required development entitlements, or may approve some or all of the development entitlements subject to conditions. The Parties expressly intend that nothing in this Agreement shall be interpreted as a commitment by City to grant any development entitlements to Developer, OAH, or VA prior to City’s completion of appropriate environmental review in accordance with CEQA, or as an abrogation of the City’s obligation to exercise its independent judgement in deciding whether to grant any development entitlement or whether to impose conditions on any development entitlement.
Section 2.8. Initiatives and Referenda. If any City ordinance, rule, or regulation, or addition to the Mendota Municipal Code is enacted or imposed by a citizen-sponsored initiative or referendum after the Effective Date that would conflict with this Agreement, an associated Conditional Use Permit, Subsequent City Approvals, or reduce the development rights or assurances provided to Developer, OAH, and VA in this Agreement, such Mendota Municipal Code changes shall not be applied to the Site or Project; provided, however, the Parties acknowledge that City’s approval of this Agreement is a legislative action subject to referendum. City shall cooperate with Developer, OAH, and/or VA and shall undertake such reasonable actions as may be appropriate to ensure this Agreement remains in full force and effect and is implemented in accordance with its terms to the fullest extent permitted by state or federal law.
Section 2.9. Regulation by Other Government Entities. Developer, OAH, and VA acknowledge that City does not have authority or jurisdiction over any other government entities’ ability to grant governmental approvals or permits or to impose a moratorium or other limitations that may negatively affect the Project or the ability of City to issue a permit to Developer, OAH, and VA or comply with the terms of this Agreement. Any moratorium imposed by another government entity, including the State Licensing Authority, on City shall not cause City to be in breach of this Agreement.
Section 2.10. Developer’s Right to Rebuild. Developer, OAH, and/or VA may renovate portions of the Site or the OAH Parcel any time within the Term of this Agreement consistent with the Mendota Municipal Code. Any such renovation or rebuild shall be subject to all design, building code, and other requirements imposed on the Project by this Agreement.
Section 2.11. Changes in California Building Standards Codes. Notwithstanding any provision of this Agreement to the contrary, development of the Project shall be subject to changes occurring
from time to time to the California Building Standards Codes.
Section 2.12. Changes Mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Mendota Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines associated with the Commercial Cannabis Overlay District.
As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations. Upon discovery of a subsequently enacted federal or state law meeting the requirements of this Section, City, Developer, OAH, and/or VA shall provide the other Parties with written notice of the state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Mendota Municipal Code or this Agreement. Promptly thereafter, City, Developer, OAH, and/or VA shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, City, Developer, OAH, and/or VA will attempt to preserve the terms of this Agreement and the rights of Developer, OAH, and VA derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer, OAH, and/or VA for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer’s, OAH’s, or VA’s proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement.
Section 2.13. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the development contemplated by this Agreement, City agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion, that it is not reasonably possible to so address such health and safety emergency so as to not have a material adverse impact on the Project, to select that option for addressing the situation which, in City’s discretion, minimizes, so far as reasonably possible, the impact on development and use of the Project in accordance with this Agreement, while still addressing such health and safety emergency in a manner acceptable to City.
ARTICLE 3
ENTITLEMENT AND PERMIT PROCESSING, INSPECTIONS
Section 3.1. Subsequent City Approvals. City has the authority to permit the development, construction, and conditionally permitted use contemplated in this Agreement. City agrees to timely review, pursuant to the terms of this Agreement, the Mendota Municipal Code as it existed on the Effective Date, and applicable law, any Subsequent City Approvals reasonably necessary to complete the goals, objectives, policies, standards, and plans described in this Agreement.
Subsequent City Approvals include any applications, permits, and approvals required to complete the improvements necessary to develop the Site, in general accordance with this Agreement (“Subsequent City Approvals”). Nothing herein shall require City to provide Developer, OAH,
and/or VA with Subsequent City Approvals prior to, or without complying with, all of the requirements in this Agreement, the Mendota Municipal Code as it existed on the Effective Date, and any applicable law.
Section 3.2. Timely Processing. City shall use its reasonable best efforts to process, within a reasonable time, any Subsequent City Approvals or environmental review requested by Developer during the Term of this Agreement.
Section 3.3. Cooperation between City and Developer/OAH/VA. Consistent with the terms set forth herein, City agrees to cooperate with Developer, OAH, and/or VA, on a timely basis, in securing all permits or licenses that may be required by City or any other government entity with permitting or licensing jurisdiction over the Project.
Section 3.4. Further Consistent Discretionary Actions. The exercise of City’s authority and independent judgment is recognized under this Agreement, and nothing in this Agreement shall be interpreted as limiting City’s discretion or obligation to hold legally required public hearings. Except as otherwise set forth herein, such discretion and action taken by City shall, however, be consistent with the terms of this Agreement and not prevent, hinder, or compromise development or use of the Site as contemplated by the Parties in this Agreement.
ARTICLE 4
PUBLIC BENEFIT, PROCESSING, AND OVERSIGHT
Section 4.1. Processing Fees and Charges. Developer, OAH, and/or VA shall pay to City those processing, inspection, plan checking, and monitoring fees and charges required by City which are in force and effect at the time those fees and charges are incurred (including any post-Effective Date increases in such fees and charges) for processing applications and requests for building permits, inspections, other permits, approvals and actions, and monitoring compliance with any permits issued or approvals granted or the performance of any conditions (each a “Ministerial Fee” and collectively, the “Ministerial Fees”).
Section 4.2. Public Benefit.
(a) The Parties acknowledge and agree that this Agreement confers substantial private benefits upon Developer, OAH, and VA that will place burdens upon City infrastructure, services, and neighborhoods. Accordingly, the Parties intend to provide consideration to City to offset these impacts that is commensurate with the private benefits conferred on Developer, OAH, and VA (the “Public Benefit Fee”). Developer, OAH, and VA acknowledge that the Public Benefit Fees provided for herein are greater than the annual fee provided for in Mendota Municipal Code section 17,99,070 and, despite this fact, voluntarily agree to pay the fees contemplated herein, acknowledging that the private benefits conferred are of equal or greater consideration to the fees, and waives any right to challenge said fees as a violation of any law. In consideration of the foregoing, Developer, OAH, and/or VA shall remit to City:
(1) A one-time Public Contribution Payment in the amount of ONE HUNDRED AND TWENTY THOUSAND DOLLARS ($120,000) (the “Contribution Payment”) within thirty (30) days of Developer, OAH, and/or VA closing escrow on that certain Purchase and Sale Agreement and Joint Escrow Instructions entered into by and between Developer, OAH, VA, and City on or
about October 22, 2019, and thereby, Developer, OAH, and/or VA obtaining fee title interest to the Property. City acknowledges that Developer’s, OAH’s, and/or VA’s obligation to remit the Contribution Payment to the City, or any portion thereof, is strictly conditioned on (a) the Agreement having obtained final City approval, (b) Developer having obtained the Conditional Use Permit as discussed in Section 2.5 above, (c) Developer having obtained any and all “Subsequent Entitlements, Approvals, and Permits” as discussed in Section 2.6 above, and (d) Developer having obtained any and all “Subsequent City Approvals” as discussed in Section 3.1 above. (2) As described in Section 17.99.070 of the Mendota Municipal Code, an annual “Public
Benefit Fee” in the greatest amount of the following, as applicable:
(i) FIVE DOLLARS ($5.00) per square foot for so long as the Developed Portions of the Property are less than two hundred thousand (200,000) square feet; or (ii) FOUR DOLLARS ($4.00) per square foot for so long as the Developed Portions of the Property are between two hundred thousand (200,000) square feet and four hundred ninety-nine, nine hundred ninety-nine thousand (499,999) square feet; or (iii) For so long as the Developed Portions of the Property are five hundred thousand (500,000) square feet or greater, the greater amount of the following:
(a) SIX HUNDRED THOUSAND DOLLARS ($600,000); or
(b) Four percent (4%) of the Project’s annual Gross Receipts, as defined in Section 1.4.
To the extent that Section 4,2(a)(2) is applicable for the calculation of the Public Benefit Fee, said fee will be adjusted pursuant to the Consumer Price Index for the Fresno/Clovis metropolitan area (All Urban Consumers) published by the United Stated Department of Labor, Bureau of Labor and Statistics (“Index”). The adjustment shall be made based on the first Index published in the year for which the Public Benefit Fee is paid and shall be subject to a maximum increase of 2% in any given year,
(3) The annual Public Benefit Fee described in Section 4.2, above, shall be paid in quarterly installments on the first (1st) business day of every third (3rd) month (“Quarterly Payment”). (b) Developer, OAH, and/or VA shall remit the Contribution Payment and the Public Benefit Fee as applicable, to City as described in subdivisions (a.1), (a.2), and (a.3) of this Section.
Failure to remit the Contribution Payment and Public Benefit Fee, as applicable, is a material breach of this Agreement and shall be sufficient grounds for revocation of all entitlements associated with the Project. For purposes of clarity and avoidance of doubt, the Parties agree and acknowledge that Developer’s, OAH’s, and/or VA’s obligation to commence making the Public Benefit Fee payment to the City shall commence on the first day of Project operation when the first crop is planted and not prior to that date.
Section 4.3. Reporting. Developer, OAH, and/or VA shall provide City with copies of any reports
provided to a State Licensing Authority or a State Taxing Authority within forty-five (45) calendar days of that submission. Failure or refusal of Developer, OAH, and/or VA to (a) provide any such report to City, State Licensing Authority, or the State Taxing Authority within the time required by that entity, or (b) pay the Public Benefit Amount or amount due to a State Licensing Authority or State Taxing Authority when the same are due and payable, shall constitute full and sufficient grounds for the revocation or suspension of the Conditional Use Permit and all entitlements associated with the Project. Section 4.4, Records. Subsequent tenants or assignees shall keep records of all Commercial Cannabis Activity in accordance with Chapter 16 (commencing with Section 26160) of Division 10 of the Business and Professions Code and the State Retail Cannabis Regulations. All records required by this Article 4 shall be maintained and made available for City’s examination and duplication (physical or electronic) at the Site or at an alternate facility as approved in writing by the City Manager or his or her designee. Upon request, Developer, OAH, and/or VA shall make all records relating to this Article 4 available to City within three (3) calendar days. Section 4.5. Late Fee. Developer, OAH, and VA acknowledge that, to ensure proper compliance with the terms of this Agreement and any applicable laws, City must engage in costly compliance review, inspections, and, if necessary, enforcement actions to protect the health, safety, and welfare of its residents. Liquidated damages and interest provisions are necessary to assist City in compliance review and enforcement actions. If Developer, OAH, or VA fail to make any payment when due as required by this Agreement, including the Public Benefit Amount, City may impose a “NonPerformance Late Fee.” A Non-Performance Late Fee of one percent (1%) shall be applied to all past due payments. City shall deliver to Developer, OAH, and/or VA a “Notice of Non-Performance Late Fee,” attached hereto as Exhibit C. Payment of the Non-Performance Late Fee shall be in a single installment due on or before a date fifteen (15) calendar days following delivery of the Notice of Non-Performance Late Fee. The Parties hereto acknowledge and agree that the sums payable under this Section 4.5 shall constitute liquidated damages and not penalties and are in addition to all other rights of the City, including the right to call a default. The Parties further acknowledge that (i) the amount of loss or damages likely to be incurred is incapable or is difficult to precisely estimate, (ii) the amounts specified herein bear a reasonable relationship to, and are not plainly or grossly disproportionate to, the probable loss likely to be incurred in connection with any failure by Developer, OAH, or VA to remit payment as required by this Agreement, (iii) one of the reasons for the Parties’ agreement as to such amounts was the uncertainty and cost of litigation regarding the question of actual damages, and (iv) the Parties are sophisticated business parties and have been represented by sophisticated and able legal counsel and negotiated this Agreement at arm’s length.
Section 4.6. Interest on Unpaid Non-Performance Late Fee. If Developer, OAH, and/or VA fail to pay the Non-Performance Late Fee after City has delivered the Notice of Non-Performance Late Fee, then, in addition to the principal amount of the Non-Performance Late Fee, Developer, OAH, and/or VA shall pay City interest at the rate of eighteen percent (18%) per annum, computed on the principal amount of the Non-Performance Late Fee, from a date fifteen (15) calendar days following delivery of the Notice of Non-Performance Late Fee. Section 4.7, Exempt from City Tax. For the Term of this Agreement, Developer, OAH, and VA shall be exempt from any City tax on commercial cannabis businesses. Notwithstanding the
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foregoing, Developer, OAH, and/or VA and Project shall be subject to any and all taxes, assessments, or similar charges or fees of general applicability enacted by the federal government, state government, or County of Fresno, including any tax applicable to an area greater than the City limits to which City may be a party (i.e., county tax sharing agreement), In the event that the City applies a new tax on commercial cannabis businesses during the term of this Agreement, the City shall refund or credit the amount owed by Developer, OAH, and/or VA pursuant to the Public Benefit Fee by an equal amount to any new tax on commercial cannabis businesses.
Section 4.8. Employing City Residents. Developer, OAH, and/or VA agree to use their best efforts to promote the hiring and employment of local City residents to construct, if necessary, and operate the business(es) within the Project. As part of such efforts, Developer, OAH, and/or VA agree to include in any lease, license, or other conveyance of any right to use the Project such language that any transferee of such interest shall use its best efforts to hire and employ local City residents for its business. Section 4.9, Contracting with Local Businesses. Developer, OAH, and VA agree to use their best efforts to promote the contracting of local businesses to construct, if necessary, and operate the business(es) within the Project. As part of such efforts, Developer, OAH, and/or VA agree to include in any lease, license or other conveyance of any right to use the Project such language that any transferee of such interest shall use its best efforts to contract with local City businesses for its business. Section 4.10. Manner of Payment. All payments required to be made to City pursuant to this Agreement shall be paid by Developer, OAH, and/or VA via check, ACH payment, or wire transfer through a bank licensed and in good standing with all appropriate regulatory bodies. No payment required pursuant to this Agreement may be made in cash. Developer, OAH, and VA understand and agree that any failure to comply with this Section 4.10 shall constitute a material breach of this Agreement.
Section 4.11. Development Incentive. To provide an incentive for Developer’s development of the Property and construction of the Project, and to facilitate Developer’s prompt performance of its obligations under this Agreement in a manner that will maximize the financial benefit to City over the Term of this Agreement, City shall, within the first year of the Project’s operation, recognize a $25,000 credit in Developer’s favor to be applied to any liability of Developer to the City. The liability or liabilities to which the credit is applied shall be determined by the City Manager in consultation with Developer.
ARTICLE 5
PUBLIC FACILITIES, SERVICES, AND UTILITIES
Section 5.1. City Use of Public Benefit Fee. City shall use the Public Benefit Amount to pay for the impact on and maintenance or improvement of City neighborhoods, for the general welfare of the residents of Mendota, and the existing level of service of City infrastructure and services to accommodate for the Project.
ARTICLE 6
INSURANCE AND INDEMNITY
Section 6.1. Insurance. Developer, OAH, and/or VA shall require all persons doing work on the Project, including their contractors and subcontractors (collectively, “Developer” for purposes of this Article 6 only), to obtain and maintain insurance of the types and in the amounts described in this Article with carriers reasonably satisfactory to City. (a) General Liability Insurance. Developer, OAH, and/or VA shall maintain commercial general liability insurance or equivalent form with a limit of not less than One Million Dollars ($1,000,000) (or as otherwise approved, in writing, by City) per claim and Two Million Dollars ($2,000,000) each occurrence. Such insurance shall also:
(i) Name City, its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives as “Additional Insureds” by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed additional insured.
(ii) Be primary with respect to any insurance or self-insurance programs covering City, its officials, employees, agents, and representatives. (iii) Contain standard separation of insured provisions. (b) Automotive Liability Insurance. Developer, OAH, and/or VA shall maintain business automobile liability insurance or equivalent form with a limit of not less than One Million Dollars ($1,000,000) for each accident. Such insurance shall include coverage for owned, hired, and non-owned automobiles. Such insurance shall also:
(i) Name City, its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives as Additional Insureds by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above-listed Additional Insureds. (ii) Be primary with respect to any insurance or self-insurance programs covering City, its officials, employees, agents, and representatives, (iii) Contain standard separation of insured provisions. (c) Workers’ Compensation Insurance. Developer, OAH, and/or VA shall take out and maintain during the Term of this Agreement, workers’ compensation insurance for all of Developer’s, OAH’s, and/or VA’s employees employed at or on the Project, and in the case any of the work is subcontracted, Developer, OAH, and/or VA shall require any general contractor or subcontractor similarly to provide workers’ compensation insurance for such contractor’s or subcontractor’s employees, unless such employees are covered by the protection afforded by Developer, OAH, and/or VA . In case any class of employee engaged in work on the Project is not protected under any workers’ compensation law, Developer, OAH, and/or VA shall provide and shall cause each contractor and subcontractor to provide adequate insurance for the protection of
employees not otherwise protected. Developer, OAH, and VA hereby indemnify City for any damage resulting from failure of Developer, OAH, and/or VA, their agents, employees, contractors, or subcontractors to take out or maintain such insurance. Workers’ compensation insurance with statutory limits and employer’s liability insurance with limits of not less than One Million Dollars ($1,000,000) for each accident shall be maintained.
Section 6.2. Other Insurance Requirements. Developer, OAH, and VA shall do all of the following:
(a) Prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance that clearly evidence all insurance required in this Article, including evidence that such insurance will not be canceled, allowed to expire, or be materially reduced in coverage without thirty (30) days prior written notice to City. (b) Provide to City, upon request, and within seven (7) calendar days of said request, certified copies of endorsements and policies, and properly executed certificates of insurance evidencing the insurance required herein. © Replace or require the replacement of certificates, policies, and endorsements for any insurance required herein expiring prior the termination of this Agreement. @) Maintain all insurance required herein from the Effective Date of this Agreement to the earlier of the expiration of the Term or the mutual written termination of this Agreement. © Place all insurance required herein with insurers licensed to do business in California with a current Best’s Key Rating Guide reasonably acceptable to City. Section 6.3. Indemnity. To the fullest extent permitted by law, Developer, OAH, and/or VA shall defend, indemnify, and hold harmless City and its agents, elected and appointed officials, officers, employees, consultants, and volunteers (collectively, “City’s Agents”) from any and all liability arising out of a claim, action, or proceeding against City, or City’s Agents, to attack, set aside, void, or annul an approval concerning the Project, this Agreement, any applicable Conditional Use Permit, or Subsequent City Approvals.
Upon receiving notice of a claim, action, or proceeding, Developer, OAH, and/or VA shall assume the defense of the claim, action, or proceeding through the prompt payment of all attorneys’ fees and costs, incurred in good faith and in the exercise of reasonable discretion, of City’s counsel in defending such an action. City shall have the absolute and sole authority to control the litigation and make litigation decisions, including, but not limited to, selecting counsel to defend City and settlement or other disposition of the matter. The City’s remedies are limited to that portion of the Project that is in breach of this Section 6.3.
Section 6.4. Failure to Indemnify; Waiver. Failure to indemnify City, when required by this Agreement, shall constitute a material breach of this Agreement and of any applicable Conditional Use Permit and Subsequent City Approvals, which shall entitle City to all remedies available under law, including, but not limited to, specific performance and damages. Failure to indemnify City shall constitute grounds upon which City may rescind its approval of any applicable Conditional Use Permit or entitlements associated with the Project. Developer’s, OAH’s, and/or VA’s failure to
indemnify City shall be a waiver by Developer, OAH, and/or VA of any right to proceed with the Project, or any portion thereof, and a waiver of Developer’s, OAH’s, and/or VA’s right to file a claim, action, or proceeding against City or City’s Agents based on City’s rescission or revocation of any Conditional Use Permit, Subsequent City Approvals, or City’s failure to defend any claim, action, or proceeding based on Developer’s, OAH’s, and/or VA’s failure to indemnify City. Section 6.5. Waiver of Damages. Notwithstanding anything in this Agreement to the contrary, the Parties acknowledge that City would not have entered into this Agreement had it been exposed to liability for damages from Developer, OAH, and/or VA and, therefore, Developer, OAH, and VA hereby waive all claims for damages against City for breach of this Agreement. Developer, OAH, and VA further acknowledge that under the Development Agreement Statute, land use approvals (including development agreements) must be approved by the City Council and that, under law, the City Council’s discretion to vote in any particular way may not be constrained by contract.
Developer, OAH, and VA therefore waive all claims for damages against City in the event that this Agreement or any Project approval is: (1) not approved by the City Council or (2) is approved by the City Council, but with new changes, amendments, conditions, or deletions to which Developer, OAH, and/or VA are opposed. Developer, OAH, and VA further acknowledge that, as an instrument which must be approved by ordinance, a development agreement is subject to referendum; and that, under law, the City Council’s discretion to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained by contract, and Developer, OAH, and VA waive all claims for damages against City in this regard.
ARTICLE 7
MORTGAGEE PROTECTION
Section 7.1. Supremacy Over Liens. This Agreement, once executed and recorded, shall be superior and senior to any lien placed upon the Site or any portion thereof following recording of this Agreement, including the lien of any deed of trust or mortgage (“Mortgage”). Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, This Agreement shall be deemed in default and terminate as to an interest in the Site or Project upon the foreclosure or transfer of that interest, whether by operation of law or any other method of interest change or transfer, unless the City Manager has authorized such change or transfer in advance, in writing, which such authorization shall not be unreasonably withheld or conditioned.
ARTICLE 8
DEFAULT
Section 8.1. General Provisions.
(a) Subject only to any extensions of time by mutual consent in writing, or as otherwise provided herein, the failure or delay by any Party to perform in accordance with the terms and provisions of this Agreement shall constitute a default. Any Party alleging a default or breach of this Agreement (“Charging Party”) shall give the other Party (“Charged Party”) not less than thirty (30) calendar days’ written notice, which shall specify the nature of the alleged default and the manner in which the default may be cured. During any such thirty (30) calendar day period, the Charged Party shall not be considered in default for purposes of termination of this Agreement or institution of legal
proceedings for the breach of this Agreement.
(b) After expiration of the thirty (30) calendar day period, if such default has not been cured or is not in the process of being diligently cured in the manner set forth in the notice, or if the breach cannot reasonably be cured within thirty (30) calendar days, the Charging Party may, at its option, institute legal proceedings pursuant to this Agreement or give notice of its intent to terminate this Agreement pursuant to Government Code section 65868. In the event City is the Charging Party, City may, in its sole discretion, give notice, as required by law, to the Charged Party of its intent to revoke or rescind any operable Conditional Use Permit or other entitlement related to or concerning the Project. (c) Prior to the Charging Party giving notice to the Charged Party of its intent to terminate, or prior to instituting legal proceedings, the matter shall be scheduled for consideration and review by City in the manner set forth in Government Code sections 65865, 65867, and 65868 or the comparable provisions of the Mendota Municipal Code within thirty (30) calendar days from the expiration of the thirty (30) day notice period. (d) Following consideration of the evidence presented and said review before City, and after providing the Charged Party an additional five (5) calendar day period to cure, the Charging Party may institute legal proceedings against the Charged Party or may give written notice of termination of this Agreement to the Charged Party.
(e) Evidence of default may arise in the course of a regularly scheduled periodic review of this Agreement pursuant to Government Code section 65865.1, as set forth in Section 8.2. If any Party determines that another Party is in default following the completion of the normally scheduled periodic review, without reference to the procedures specified in Section 8.1(c), said Party may give written notice of termination of this Agreement, specifying in the notice the alleged nature of the default and potential actions to cure said default where appropriate. If the alleged default is not cured in thirty (30) calendar days or within such longer period specified in the notice or the defaulting Party is not diligently pursuing a cure or if the breach cannot reasonably be cured within the period or the defaulting party waives its right to cure such alleged default, this Agreement may be terminated by the non-defaulting Party by giving written notice. (f) In the event Developer, OAH, and/or VA are in default under the terms and conditions of this Agreement, no permit application shall be accepted by City nor will any permit be issued to Developer, OAH, and/or VA until the default is cured, or the Agreement is terminated. (g) In the event that a person or entity other than the Developer, OAH, and/or VA are in default, Developer, OAH, and/or VA shall use commercially reasonable efforts to bring the person or entity in default into compliance. The City shall provide the Developer, OAH, and/or VA with notice and opportunity to cure as provided for in paragraph (a) through (e) above, except that the time periods in paragraphs (a), (b), (c), and (e) shall be ninety (90) days. Section 8.2. Annual Review. City shall, at least every twelve (12) months during the Term of this Agreement, review the extent of good faith, substantial compliance of Developer, OAH, and/or VA and City with the terms of this Agreement. Such periodic review by City shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code section
65865.1. City shall deposit in the mail or fax to Developer, OAH, and/or VA a copy of all staff reports and, to the extent practical, related exhibits concerning this Agreement or the Project’s performance, at least seven (7) calendar days prior to such periodic review. Developer, OAH, and/or VA shall be entitled to appeal a determination of City or City Manager to the City Council. Any appeal must be filed within ten (10) calendar days of the decision of City or the City Manager, respectively. Developer, OAH, and/or VA shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before City, the City Manager, or City Council, as applicable. Section 8.3. Estoppel Certificates. City shall, with at least twenty (20) calendar days’ prior written notice, execute, acknowledge, and deliver to Developer, OAH, VA, Developer’s, and/or OAH’s lender, potential investors, or assignees an Estoppel Certificate in writing which certifies that this Agreement is in full force and effect, that there are no breaches or defaults under the Agreement, and that the Agreement has not been modified or terminated and is enforceable in accordance with its terms and conditions.
(a) At Developer’s, OAH’s, and/or VA’s option, City’s failure to deliver such Estoppel Certificate within the stated time period shall be conclusive evidence that the Agreement is in full force and effect, that there are no uncured breaches or defaults in Developer’s, OAH’s, and/or VA’s performance of the Agreement or violation of any City ordinances, regulations, and policies regulating the use and development of the Site or the Project subject to this Agreement.
Section 8.4. Default by City. In the event City does not accept, review, approve, or issue any permits or approvals in a timely fashion, as defined by this Agreement, or if City otherwise defaults under the terms of this Agreement, City agrees that Developer, OAH, and/or VA shall not be obligated to proceed with or complete the Project, and shall constitute grounds for termination or cancellation of this Agreement by Developer, OAH, and/or VA. Section 8.5, Cumulative Remedies of Parties. In addition to any other rights or remedies, City, Developer, OAH, and/or VA may institute legal or equitable proceedings to cure, correct, or remedy any default, enforce any covenant, or enjoin any threatened or attempted violation of the provisions of this Agreement, so long as any such action conforms to Section 8.1(c) of this Agreement.
Section 8.6. Enforced Delay, Extension of Times of Performance. Delays in performance, by either Party, shall not be deemed a default if such delays or defaults are due to war, insurrection, strikes, walkouts, riots, floods, earthquakes, fires, casualties, acts of God, governmental restrictions imposed where mandated by governmental entities other than City, enactment of conflicting state or federal laws or regulations, new or supplementary environmental regulations enacted by the state or federal government, litigation, or other force majeure events. An extension of time for such cause shall be in effect for the period of forced delay or longer, as may be mutually agreed upon.
ARTICLE 9 TERMINATION
Section 9.1. Termination Upon Completion of Development. This Agreement shall terminate upon the expiration of the Term, unless it is terminated earlier pursuant to the terms of this Agreement. Upon termination of this Agreement, City shall record a notice of such termination in substantial conformance with the “Notice of Termination” attached hereto as Exhibit D, and this Agreement shall be of no further force or effect except as otherwise set forth in this Agreement.
Section 9.2. Effect of Termination on Developer/OAH/VA Obligations. Termination of this Agreement shall eliminate any further obligation of Developer, OAH, and/or VA to comply with this Agreement, or some portion thereof, if such termination relates to only part of the Site or Project.
Termination of this Agreement, in whole or in part, shall not, however, climinate the rights of Developer, OAH, and/or VA to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination. Section 9.3. Effect of Termination on City’s Obligations. Termination of this Agreement shall eliminate any further obligation of City to comply with this Agreement, or some portion thereof.
Termination of this Agreement shall not, however, eliminate the rights of City to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination.
Section 9.4, Survival After Termination. The rights and obligations of the Parties set forth in this Section 9.4, Section 2.9, Section 6.3, Section 10.3, Section 10.4, Section 10.5, Section 10.7, and any right or obligation of the Parties in this Agreement which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination.
ARTICLE 10
OTHER GENERAL PROVISIONS
Section 10.1. Assignment and Assumption. The rights granted to Developer, OAH, and/or VA under this Agreement are personal to Developer, OAH, and/or VA and Developer, OAH, and VA shall not have the right to sell, assign, or transfer all or any part of its rights, title, and interests in all or a portion of Site, or Project, subject to or a part of this Agreement, to any person, firm, corporation, or entity during the Term of this Agreement without the advance written consent of the City Manager.
(a) The City Manager’s consent shall not be unreasonably withheld or conditioned; however, Developer, OAH, and VA hereby acknowledge and agree that in no event shall it be unreasonable for the City Manager to withhold or condition consent if the proposed assignee or transferee cannot:
(i) Demonstrate financial resources in the form of a financial statement, balance sheet, or tax returns that attest to the assignee or transferee’s financial health and ability to finance and operate the proposed business for a minimum of twelve (12) months; and (ii) | Demonstrate technical expertise through utilization of a substantial portion of the Project’s existing management team or through a detailed description of the transferee’s experience in operating the same or similar type of project. (b) Upon City’s receipt of written notice that Developer, OAH, and/or VA propose to assign or transfer any of its rights or interests under this Agreement, the City Manager shall, within thirty (30) days of receiving all requested information regarding the proposal from Developer, OAH, and/or VA, notify Developer, OAH, and/or VA in writing whether the City intends to withhold or condition its consent pursuant to this Section 10.1 and the reasons therefor.
(c) If the City Manager notifies Developer, OAH, and/or VA that the City intends to withhold consent pursuant to this Section 10.1, the Parties shall meet and confer in good faith to determine whether, in lieu of withholding consent, the City’s concerns can be adequately addressed by imposing appropriate conditions on the City’s consent. (d) ‘If the Parties are unable to reach agreement regarding the proposed assignment or transfer, Developer, OAH, and/or VA may, within ten (10) days after meeting and conferring pursuant to subdivision (c) above, appeal the City Manager’s decision to the City Council. In such event, the City Council shall finally determine, in its sole and absolute discretion, whether the withholding or conditioning of consent to the proposed assignment or transfer is reasonable. (e) Any assignment or transfer in violation of this Section 10.1 will be automatically void and will be considered an immediate, material breach of this Agreement such that City may elect to immediately terminate this Agreement. If the City Manager approves an assignment or transfer of any interest detailed in this Section 10.1, City, Developer, OAH, and VA shall execute an “Assignment and Assumption Agreement” in the form attached hereto as Exhibit E. Nothing in this Section 10.1 applies to Developer’s, OAH’s, and/or VA’s capitalization or ownership provisions.
Section 10.2. Covenants Running with the Land. For so long as this Agreement is in full force and effect, all of the provisions contained in this Agreement shall be binding upon the Parties and their respective heirs, successors and assigns, representatives, lessees, and all other persons acquiring all or a portion of interest in the Site or Project, whether by operation of law or in any manner whatsoever. All of the provisions contained in this Agreement shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to California law, including California Civil Code section!468,. Each covenant herein to act or refrain from acting is for the benefit of or a burden upon the Project, as appropriate, runs with the Site, and is binding upon Developer, OAH, and VA .
Section 10.3. Notices. Any notice or communication required hereunder between City and Developer, OAH, and/or VA must be in writing, and may be given either personally, by facsimile (with original forwarded by regular U.S. Mail), by registered or certified mail (return receipt requested), or by Federal Express, UPS, or other similar couriers providing overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. If given by facsimile transmission, a notice or communication shall be deemed to have been given and received upon actual physical receipt of the entire document by the receiving Party’s facsimile machine, Notices transmitted by facsimile after 5:00 p.m. on a normal business day, or on a Saturday, Sunday, or holiday shall be deemed to have been given and received on the next normal business day. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on a receipt issued by the courier. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which
such notice or communication shall be given. Such notices or communications shall be given to the Parties at their addresses set forth below:
If to City:
And to:
If to Developer:
And to:
If to OAH:
And to:
Ifto VA:
And to:
City of Mendota 643 Quince Street Mendota, CA 93640
Attention: Cristian Gonzalez, City Manager
Wanger Jones Helsley PC
265 E. River Park Circle, Suite 310
Fresno, California 93720
Attention: John P. Kinsey, Esq.
Odyssey Agricultural Development LLC 2222 E. Olympic Blvd.
Los Angeles, CA 90021 Attention: Legal Department
Weinberg Gonser LLP
10866 Wilshire Boulevard, Suite 1650
Los Angeles, CA 90024
Attention: Russell Greenman, Esq.
Odyssey Agricultural Holdings LLC 2222 E,. Olympic Blvd. Los Angeles, CA 90021 Attention: Legal Department Weinberg Gonser LLP
10866 Wilshire Boulevard, Suite 1650
Los Angeles, CA 90024
Attention: Russell Greenman, Esq.
Valley Agricultural Holdings LLC
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764 Attention: Richard Munkvold Valley Agricultural Holdings, LLC 2151 E. Convention Center Way, Suite 114
Ontario, CA 91764 Attention: Steven B. Imhoof, Esq.
Section 10.4. Governing Law and Binding Arbitration. The validity, interpretation, and performance of this Agreement shall be controlled by and construed pursuant to the laws of the State
of California. Any dispute, claim, or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation, or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by binding arbitration in Fresno, California, before one arbitrator. The arbitration shall proceed pursuant to the Comprehensive Arbitration Rules and Proceedings of the Judicial Arbitration and Mediation Services, Judgment on the arbitration award may be entered in any court having jurisdiction thereof.
Section 10.5. Invalidity of Agreement/Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any term or provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, any provisions that are not invalid or unenforceable shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this Agreement on the basis that this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this Agreement is not required because the Agreement is invalid, unenforceable, or illegal.
Section 10.6. Cumulative Remedies. In addition to any other rights or remedies, City, Developer, OAH, and/or VA may institute legal or equitable proceedings to cure, correct, or remedy any default, to specifically enforce any covenant or agreement herein, or to enjoin any threatened or attempted violation of the provisions of this Agreement. The prevailing party in any such action shall be entitled to reasonable attorneys’ fees and costs. Notwithstanding the foregoing or any other provision of this Agreement, in the event of City default under this Agreement, Developer, OAH, and VA agree that Developer, OAH, and VA may not seek, and shall forever waive any right to, monetary damages against City, but excluding therefrom the right to recover any fees or charges paid by Developer, OAH, and/or VA in excess of those permitted hereunder. Section 10.7. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity challenging this Agreement or any associated entitlement, permit, or approval granted by City to Developer, OAH, and/or VA for the Project (collectively, “Project Litigation”), the Parties agree to cooperate with each other as set forth herein. City may elect to tender the defense of any lawsuit filed and related in whole or in part to Project Litigation with legal counsel selected by City. Developer, OAH, and/or VA will indemnify, hold City harmless from, and defend City from all costs and expenses incurred in the defense of such lawsuit, including, but not limited to, damages, attorneys’ fees, and expenses of litigation awarded to the prevailing party or parties in such litigation. Developer, OAH, and/or VA shall pay all litigation fees to City, within thirty (30) days of receiving a written request and accounting of such fees and expenses, from City. Notwithstanding the aforementioned, City may request, and Developer, OAH, and/or VA will provide to City within seven (7) days of any such request, a deposit to cover City’s reasonably anticipated Project Litigation fees and costs.
Section 10.8. Constructive Notice and Acceptance. Every person who after the Effective Date and recording of this Agreement owns or acquires any right, title, or interest to any portion of the Site is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person
acquired an interest in the Site, and all rights and interests of such person in the Site shall be subject to the terms, requirements, and provisions of this Agreement.
Section 10.9. Statute of Limitations and Laches. City, Developer, OAH, and VA agree that each Party will undergo a change in position in detrimental reliance upon this Agreement from the time of its execution and subsequently. The Parties agree that section 65009(c)(1)(D) of the California Government Code, which provides for a ninety (90) day statute of limitations to challenge the adoption of this Agreement, is applicable to this Agreement. In addition, any person who may challenge the validity of this Agreement is hereby put on notice that, should the legality or validity of this Agreement be challenged by any third party in litigation, which is filed and served more than ninety (90) days after the execution of this Agreement, City, Developer, OAH, and VA shall each assert the affirmative defense of laches with respect to such challenge, in addition to all other available defenses. This Section in no way limits the right of a Party, claiming that the other Party breached the terms of this Agreement, to bring a claim against the other Party within the four (4) year statute of limitations set forth in Section 337 of the California Civil Code.
Section 10.10. Change in State Regulations. In no event shall Developer, OAH, or VA operate the Project in violation of the Agreement, or any applicable regulations issued pursuant to the California Cannabis Laws, as may be amended from time to time. Section 10.11. Standard Terms and Conditions. (a) Venue. Venue for all legal proceedings shall be in the Superior Court of California in and for the County of Fresno,
(b) Waiver. A waiver by any Party of any breach of any term, covenant, or condition herein contained or a waiver of any right or remedy of such Party available hereunder, at law or in equity, shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.
(c) Completeness of Instrument. This Agreement, together with its specific references, attachments, and Exhibits, constitutes all of the agreements, understandings, representations, conditions, warranties, and covenants made by and between the Parties hereto.
Unless set forth herein, no Party to this Agreement shall be liable for any representations made, express or implied.
(d) Supersedes Prior Agreement. It is the intention of the Parties hereto that this Agreement shall supersede any prior agreements, discussions, commitments, or representations, written, electronic, or oral, between the Parties hereto with respect to the Site and the Project. (e) Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement. (f) Number and Gender. In this Agreement, the neutral gender includes the feminine and masculine, and the singular includes the plural, and the word “person” includes corporations,
21 partnerships, firms, or associations, wherever the context requires, (g) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” or “can” are permissive.
(h) Term Includes Extensions. All references to the Term of this Agreement shall include any extensions of such Term.
(i) Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(j) Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement.
(k) Time is of the Essence. Time is of the essence in this Agreement in each covenant, term, and condition herein.
(I) Authority, All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.
(m) Document Preparation. This Agreement will not be construed against the Party preparing it, but will be construed as if prepared by all Parties, (n) Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.
(0) Attorney’s Fees and Costs. If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.
(p) Calculation of Time Periods. All time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.
(q) Confidentiality. Both Parties agree to maintain the confidentiality of the other
Party’s “Confidential Information” under this Agreement and shall not disclose such information to third parties. “Confidential Information” shall include, but not be limited to, business plans, trade secrets, and industry knowledge. Confidential Information shall not apply to information that: (i) is in the public domain at the time of disclosures or (ii) is required to be disclosed pursuant to a court order, governmental authority, or existing state law.
[SIGNATURES ON FOLLOWING PAGE]
ta
oe
IN WITNESS WHEREOF, this Agreement has been entered into by and between Developer, Odyssey, and City as of the Effective Date of the Agreement, as defined above. “CITY” “DEVELOPER”
Date: March | iI , 2021 Date: March 2% _, 2021
CITY OF MENDOTA, ODYSSEY AGRICULTURAL
a California Municipal Corporation DEVELOPMENT, LLC,
a California limited liability company
20 Cristian Gonzalez
ath City Manager
nullity,
om OF MEM
St OF. TKO
Attest: SOHO LOY “OAH”
/| S CAS VE
+ = Date: March 2 b , 2021
é ’ x=
== ‘ =
City Clerk % § ODYSSEY AGRICULTURAL HOLDINGS,
% LLC,
O.. Py CITT UN TK AW ol a California limited liability company ByAaron ann
: Managing Member
/
Apet!
Date: McG , 2021 “VA”
Approved to as Form: Date: March Lb , 2021
ts VALLEY AGRICULTURAL HOLDINGS,
LLC, a California anus eeny company
Jot{r/ P. Kinsey LEE
oly Attorney DEF
a
ann
thorized Signatory
20 ACKNOWLEDGMENT
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.
State of California County of
Los Angeles )
On March 26, 2021 before me, Jeanette Valdez, Notary Public
(insert name and title of the officer)
personally appeared _ Aaron Mamann ’
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. | 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. ee fics vo (Seal)
___{ _\
JEANETTE VALDEZ
Notary Public - California
Los Angeles County
Commission # 2196706
My Comm. Expires May 12, 2021
SSS YAN SS
\ \O
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.
State of California )
County of CANA ) On NM NCAAWiW)0 , before me ( aN ce, ( A NOA- SNAG , a Notary Public, personally appeared Onthan Sova who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/afe subscribed to
the within instrument and acknowledged to me that he/shie/théy executed the same in his/her/théir authorized capacity(iés), and that by his/het/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.
CELESTE CABRERA-GARCIA
Witness my hand and official seal. Y Notary Public - California Fresno County
a Commission # 2263396
anon" My Comm. Expires Nov 16, 2022
(Signature)
(Seal)
EXHIBIT “A”
Legal Description Entire Site:
That portion of the North half of Section 32, Township 13 South, Range 15 East, Mount Diablo Base and Meridian, according to the official plat thereof, in the City of Mendota, County of Fresno, State of California, described as follows:
Commencing for reference at the Northwest corner of said Section 32; thence South 1°30’52” West, along the West line of said Section 32, a distance of 736.94 feet; thence
South 89°00’35” East, 135.56 feet to the Northwest corner of that parcel described in the Grant Deed recorded as Document 2009-0093031, Official Records of Fresno County; thence
South 89°00’35” East, along the North line of said parcel, 1401.95 feet to the Northeast corner of said parcel and the TRUE POINT OF BEGINNING; thence South 89°00’35” East, along the easterly prolongation of said North line, 1622.80 feet, more or less, to the East line of that parcel conveyed to the City of Mendota by the Grant Deed recorded as Document 2007-0027736, Official Records of Fresno County; thence South 1°30’52” West, along said East line, 1610.64 feet, more or less, to the Southeast corner of last said parcel; thence
North 89°00’°35” West, along the South line of last said parcel, 1622.75 feet, more or less, to the Southeast corner of said parcel described in Document 2009-009303 1; thence North 1°30’46” East, along the East line of said parcel described in Document 2009- 0093031, a distance of 1610.64 feet to the TRUE POINT OF BEGINNING.
Containing an area of 60.00 acres, more or less.
END OF DESCRIPTION
2/1/21
APN 013-030-68ST (portion)
SS
\\
\
\ POINT OF COMMENCEMENT
NORTHWEST CORNER OF
| SECTION 32 — 13/15 \.
| _ _ : -
|
L_+—S1'30'52"W 736.94 TRUE POINT OF BEGINNING
foo 135,56"
f — - $89°00'35"E 1622.80’ =
~~ §89°00'35"E 1401.95" = ?
|
|
| z : Al Pa ce J 8) ENTIRE SITE 8
= 2009-0093031 7m 60.00 ACRES =
id O.RF.C. N $ 8
| = = || . : | ||
| |
Le N89°00'35"W 1622.75'
RS | |
N89°00'35"W 2944.70’
DECLARATION OF TAKING, DOC. 74385 BK. 5626, PG. 838, Seti
BOUNDARIES OF
2007-0027736
SCALE IN FEET
— =
DOCUMENT
O.R.F.C.
2/1/2021 TOSS All G:\Mendote_City of-S335\5536 On—Golng Plenniing Services\Oty Project Faes\353620013-2023 — 20-23 — Volley Ag Holdings (AXOM)\Surves\Bockgrounc & Working Docs\Exhbit 8 — Entire Site mep.deg —Tim Odom
PRITCHARD
2/1/21
0 250 500 1000
[Cc 1968] A PORTION OF THE NORTH HALF OF SECTION 32 CAND Saves PROVOST& TOWNSHIP 13 SOUTH, RANGE 15 EAST, M.D.B.&M. DATE: 1/20/2001
CITY OF MENDOTA
JOB NO; 333620013
CONSULTING GROUP
An Employee Owned Company
EXHIBIT B SHEET 1 OF 4
EXHIBIT “C”
Legal Description
OAH Parcel:
That portion of the North half of Section 32, Township 13 South, Range 15 East, Mount Diablo Base and Meridian, according to the official plat thereof, in the City of Mendota, County of Fresno, State of California, described as follows: Commencing for reference at the Northwest corner of said Section 32; thence South 1°30’52” West, along the West line of said Section 32, a distance of 736.94 feet; thence
South 89°00’35” East, 135.56 feet to the Northwest corner of that parcel described in the Grant Deed recorded as Document 2009-0093031, Official Records of Fresno County; thence
South 89°00’35” East, along the North line of said parcel, 1401.95 feet to the Northeast corner of said parcel and the TRUE POINT OF BEGINNING; thence South 89°00’35” East, along the easterly prolongation of said North line, 973.67 feet; thence South 1°30’°46” West, parallel with the East line of said parcel described in Document 2009-0093031, a distance of 1610.64 feet, more or less, to the South line of that parcel conveyed to the City of Mendota by the Grant Deed recorded as Document 2007- 0027736, Official Records of Fresno County; thence North 89°00°35” West, along the South line of last said parcel, 973.67 feet, more or less, to the Southeast corner of said parcel described in Document 2009-0093031; thence North 1°30’46” East, along the East line of said parcel described in Document 2009- 0093031, a distance of 1610.64 feet to the TRUE POINT OF BEGINNING.
Containing an area of 36.00 acres, more or less.
END OF DESCRIPTION
2/4/21
APN 013-030-68ST (portion)
dom
POINT OF COMMENCEMENT NORTHWEST CORNER OF
SECTION 32 — 13/15 ¥
— —S
_ =
\
S1°30'52"W 736.94’
$89°00'35"E
TRUE POINT OF BEGINNING
135.56’
—$89°00'35"E _973.67'~.
—
SANLUIS DRAIN |
S89°00'35"E 1401.95"
7 we te s| OAH ! =| PARCEL =| gto’
sooe-oo8sosi «ff 36.00 ACRES} ON
O.R.F.C. ¢ 8 &
8 a
= a
) |S \]—Na9‘00'35"W 973.67 KN
|
N89°00'35"W 2944.70’
DECLARATION OF TAKING, DOC. 74385
| BK. 5626, PG. 838, iia
2/4/21
0 250
BOUNDARIES OF
2007-0027736
SCALE IN FEET
i
DOCUMENT
O.R.F.C.
500 1000
2/4/2021 S37 Pil G\Mendota_City of-3536\5555 On—Going Panning Services\City Project Flles\535520013-2023 — 20-23 — Valley Ag Holdings (AMOM)\Survey\Bockground & Working Docs\Eshbit D — Peres! 1 mop.teg —Tim EST. 1968
PROVOST & PRITCHARD
An Employee Owned Company
A PORTION OF THE NORTH HALF OF SECTION 32
TOWNSHIP 13 SOUTH, RANGE 15 EAST, M.D.B.&M.
ODYSSEY AGRICULTURAL DEVELOPMENT, LLC
CITY OF MENDOTA
[AND SURVEYOR: |
T. ODOM, PLS 8468
DATE: 2/4/2021
JOB NO; 333620013
EXHIBIT D SHEET | OF 1
Exhibit E
Notice of Non-Performance Late Fee
Pursuant to Article 4, Section 4.5 of the Development Agreement by and between the City of Mendota (“City”) and ODYSSEY AGRICULTURAL DEVELOPMENT LLC, a California limited liability company (“Developer”), ODYSSEY AGRICULTURAL HOLDINGS LLC, a California limited liability company (“OAH”), and VALLEY AGRICULTURAL HOLDINGS LLC, a California limited liability company (“VA”), for the development of property located at , Mendota, California 93640 (“Agreement”), if Developer, OAH, and/or VA fails to make any payment required by the Agreement, the City may impose a NonPerformance Penalty of one percent (1%) to all past due payments. Pursuant to the Agreement, City shall deliver a Notice of Non-Performance Penalty (“Notice”) to Developer, and Developer shall pay the Non-Performance Penalty in a single installment due on or before a date fifteen (15) calendar days following delivery of the Notice.
City hereby informs Developer, OAH, and VA that Developer, OAH, and/or VA has failed to make payment(s) required by the Agreement. The past due amount is ‘ Accordingly, pursuant to Section 4.5 of the Agreement, a penalty of (“Penalty Amount”) is hereby imposed. Please remit payment of the Penalty Amount by
City Manager Date
City of Mendota
Exhibit F
RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO:
City of Mendota 643 Quince St, Mendota, CA 93640 Attention: City Manager
SPACE ABOVE THIS LINE FOR RECORDER’S USE Recording Fee Exempt per Government Code §6103 Notice of Termination
Pursuant to Article 9, Section 9.1 of the Development Agreement by and between the City of Mendota (“City”) and ODYSSEY AGRICULTURAL DEVELOPMENT LLC, a California limited liability company (“Developer”), ODYSSEY AGRICULTURAL HOLDINGS LLC, a California limited liability company (“OAH”), and VALLEY AGRICULTURAL HOLDINGS LLC, a California limited liability company (“VA”), for the development of property located at , Mendota, California 93640 (“Agreement”), informs
that the Agreement is hereby terminated, in accordance with the terms and conditions as stated therein, pursuant to Article _, Section
In accordance with Article 9, Section 9.1 of the Agreement, City shall record this Notice of Termination.
Title: Date
Entity:
-)
Exhibit G
Assignment and Assumption Agreement
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (“Agreement”) is made and entered into this day of , by and between the CITY OF MENDOTA, a municipal corporation of the State of California (“City”), and ODYSSEY AGRICULTURAL DEVELOPMENT LLC, a California limited liability company (“Developer”), ODYSSEY AGRICULTURAL HOLDINGS LLC, a California limited liability company (“OAH”), and VALLEY AGRICULTURAL HOLDINGS LLC, a California limited liability company (“VA”) (Developer, OAH, and VA collectively, ‘“Assignors”), and x8
(“Assignee”), City, Assignors, or Assignee may be referred to herein individually as a “Party” or collectively as the “Parties.” There are no other parties to this Agreement.
RECITALS
A. City and Assignors entered into a development agreement, dated , for the development of property located at , in the City of Mendota, County of Fresno, State of California, Assessor’s Parcel Number 013-030-68ST (“Development Agreement”), attached hereto as Exhibit “1” and incorporated herein by this reference;
B. Pursuant to Article 10, Section 10.1 of the Development Agreement, Assignors may transfer all or part of its rights, title, and/or interests in all or a portion of Site, or Project, as those terms are defined in the Development Agreement, to any person, firm, corporation, or entity during the Term of the Development Agreement only with the advance written consent of the City Manager, who shall not unreasonably withhold or condition such consent; (OF Assignors desire to transfer to Assignee some or all of Assignors’ rights and obligations under the Development Agreement, in accordance with Article 10, Section 10.1 of the Development Agreement;
Dz. Assignee desires to assume some or all of Assignors’ rights and obligations under the Development Agreement, in accordance with Article 10, Section 10.1 of the Development Agreement;
E. The City Manager has agreed to permit Assignors’ transfer of some or all of Assignor’s rights and obligations under the Development Agreement to Assignee, and to Assignee’s assumption of same, subject to the terms and conditions specified in this Agreement; F; The Parties intend through this Agreement to allow Assignors to transfer, and Assignee to assume, some or all of Assignors’ rights and obligations under the Development Agreement, in accordance with Article 10, Section 10.1 of the Development Agreement.
G. The City Council has conducted all necessary proceedings in accordance with City’s Municipal Code for the approval of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:
AGREEMENT
Section 1. Assignment. Assignors hereby assign to Assignee (all/some) of Assignors’ rights and obligations under the Development Agreement. If Assignor is transferring only some of Assignor’s rights and obligations under the Development Agreement, then the specific rights and obligations subject to transfer shall be specified in Exhibit “1,” attached hereto and incorporated herein by this reference.
Section 2. Assumption. Assignee hereby accepts and assumes the foregoing transfer or assignment of (all/some) of Assignors’ rights and obligations under the Development Agreement.
Section 3. Consent. In accordance with Article 10, Section 10.1 of the Development Agreement, the City Manager hereby consents to Assignors’ transfer of, and Assignee’s assumption of, Assignor’s rights and obligations under the Development Agreement, as specified herein, subject to any reasonable terms and conditions the City Manager may require, as set forth in Exhibit “2,” attached hereto and incorporated herein.
Section 4, Conditions of Assignment. The Parties hereby agree to abide by the terms or conditions of assignment, if any, set forth in Exhibit 2, and acknowledge that City’s consent would not have been provided but for the Parties’ agreement to abide by the terms or conditions of assignment,
Section 4, Effective Date. The assignment and assumption of rights and obligations as specified herein shall be effective on
Section 5. Terms of the Development Agreement. The terms of the Development Agreement are incorporated herein by this reference. Assignors acknowledge and agrees that the representations, warranties, covenants, agreements and indemnities contained in the Development Agreement shall not be superseded hereby but shall remain in full force and effect to the full extent provided therein.
Section 6. Inconsistency. In the event of any conflict or inconsistency between the terms of the Development Agreement and the terms of this Agreement, the terms of the Development Agreement shall govern.
Section 7. Further Actions. Each of the Parties hereto covenants and agrees, at its own expense, to execute and deliver, at the request of the other Parties hereto, such further instruments of transfer and assignment and to take such other action as such the other Parties may reasonably request to more effectively consummate the assignments and assumptions contemplated by this Agreement.
“CITY”
Date: January
, 2021
CITY OF MENDOTA, a California Municipal Corporation
By: — Cristian Gonzalez Its: City Manager
Attest:
City Clerk
Date: January , 2021 Approved to as Form:
John
P. Kinsey
City Attorney
“DEVELOPER” Date:
ODYSSEY AGRICULTURAL DEVELOPMENT, LLC,
a California limited liability company
By:
Its:
“OAH”
Date:
ODYSSEY AGRICULTURAL HOLDINGS,
LLC, a California limited liability company
By: Its:
“VA” Date:
VALLEY AGRICULTURAL HOLDINGS, LLC, a California limited liability company
By:
Its:
“ASSIGNEE” Date:
Name:
Corporate Status:
Title:
Name:
Exhibit 1
(Interest Subject to Transfer)
Exhibit 1
(Interest Subject to Transfer)
Exhibit 2
(Conditions of Consent)
Exhibit 2
(Conditions of Consent)
EXHIBIT EXHIBIT EXHIBIT 22
EXHBIT “A” TO RESOLUTION NO. PC 20-07
SITE PLAN FOR APPLICATION NO. 20-23
ENOSTING RIGHT
OF way
PROPERTY LINE 1610.84”
PARCEL 1
AREA = 34.3 AC
= 1,494,566 SF
PARCEL 2
AREA = 25AC.
= 1,098,412 SF
SITE PLAN
PROPERTY UNE S89'00'35"E 1621.58"
PROJECT DATA
APPLICANT: YALEY AGRIULURAL Fons, Le 2151 E, CONVENTION CENTER WAY, STE 222 GNTARIO, CA 91784 fe BEDNENT AYE ewtora ex 33640 APM: @ O1S-0S0—Ghe/ ARPA: 114 AC ERISTING ZONING: PUBLIC FACILITIES EXISTING LAYO._USE - VACANT PROPOSED USE: caMUaIS CULTWATION, EXTRACTION AND DISTRIBLTION PROPOSED ZONING: M1. UGHT INDUSTRIAL
Code Analysis
8 OOCUPANCY (WORKER BLOGS)
TE YB, UNLMITED AREA BuDG
_| Ft oocurancy (HAG HOUSE)
CONST. TYPE ¥-B, UNLIMITED AREA BLDG YES (\STORY w/ BASCMENT) 02.5; BASIC ALLGWABLE HIGHT: go FEET MSEC ALLOWARLE STORE 22870 BASIC ALLOWABLE ARzA FACTOR: 25.500 50. FT, (SM)
TEP STRUCTURE BLDG
TOTAL AREA
‘cULTVATION FIELDS AREA INCLUDING AISES = 1,048,080 SF / 74 aC (71% COVERAGE) PARCEL 2 = 25 ACRES BUILDING AREA WORKER BUILDINGS BLOG 1 = +/~ 2,000 SF WORKER BUILDINGS BLOG 2 TEVP STRUCTURE BLDG 3
TOTAL AREA = 49,000 SF
CULTWATION FIELDS AREA INCLUDNG AISLES = 664,088 SF / 19.7 AC (63% COVERAGE) Site Keynotes
No. Description
LA) NeW craven access ROAD
2) 7 FOOT HGH PERIMETER FENCE WITH BARBED WRF AND RAZOR WIRE 3] (2) 18" WOE ROLLNG cares a LEADS (NTO HOLCING AREA / SALLYPORT Et (| 10" square secummy cuaro uLONS '5| | CATCH BASIV FOR STORM WATER RETENTION "G] | NEW Access RoMD 4” Ac COVER, 12° scam, 0 ct im PERCENT (ASTM D1SS7) NATIVE MATER AL
EMPLOYEE PARKING STALLS:
FIRE TANK
FIRE TANK PUMP SEPNIC SYSTEM / LEACH FIELD MODULAR / MODELE OFTICc & CMFLOYEE BUILDINGS ror RESTROGNS & BREAK ROOMS = [Bio )olly
Design oon
1915 Carolina Ave. Clovis CA 93611
PH: 559. 593.9692
O 4 4
o D
c
i 0
I
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= 3 = 5 3 ra D < > o
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W. Belmont Ave. Mendota, CA. 93640
Bis
‘CULTIVATION
FUIDRE TEMP.
FIELDS:
STRUCTURE +/—
42,000 SF 1 STORY BuLing
SITE Nee
S\,
i y onusime
Vicinity Map @” Date: 09.29.2020 Drawn By: Sussn Jones Project # 19004 Proposed Site
Plan
Revisions AX
SHEET No.
Al
EXHBIT “A” TO RESOLUTION NO. PC 20-07
SITE PLAN FOR APPLICATION NO. 20-23
3 4
EXHBIT “B” TO RESOLUTION NO. PC 20-07
CONDITIONS OF APPROVAL
APPLICATION NO. 20-23; PORTION OF APN 013-030-68ST
VALLEY AGRICULTURAL HOLDINGS, LLC
As may be used herein, the words “applicant”, “owner,” “operator”, and “developer” shall be interchangeable, excepting when the word is indicated in bold italics. In that event, the condition of approval is specific to the entity named.
Operations
1. The operator shall acquire and maintain any licenses, approvals, waivers, or similar that may be issued by the State of California requisite to cannabis operations and shall comply with all provisions of any State regulatory agency that may have oversight over said operations.
2. The operator shall acquire and maintain all City of Mendota licenses pursuant to Mendota Municipal Code Chapter 8.37, including payment of applicable fees.
3. The contractor and any subcontractor(s) shall acquire a City of Mendota business license, including payment of any applicable business license fees, prior to commencing construction.
4. The City will monitor the operation for violations of conditions of approval. Penalty for violation may include but is not limited to warnings, fines, and/or permit revocation.
General & Site
5. Approval of this conditional use permit is contingent upon of additional processes contained within Application No. 20-23, to wit:
a. City Council approval of a proposed amendment to the General Plan Land Use designation of the site from Public/Quasi-Public Facilities to Light Industrial.
b. City Council approval of a proposed amendment to the zoning of the site from P-F/CO (Public Facilities with the Commercial Cannabis Overlay District) to M-1/CO (Light Manufacturing with the Commercial Cannabis Overlay District).
c. Recordation of a development agreement pursuant to MMC Section
8.37.050(1).
d. Conveyance of the Project Site from the City of Mendota to the Applicant as detailed in the purchase and sale agreement approved October 22, 2019. 5 6. The conditional use permit detailed within Application No. 20-23 shall expire two (2) years following the date of its approval unless, prior to expiration, a building permit for the requested site modifications is issued by the City of Mendota and construction is commenced and being diligently pursued. At the discretion of the City Manager, and upon valid request not less than thirty (30) days prior to its expiration, this conditional use permit may be extended for a period or periods not to exceed two (2) additional years in the aggregate.
7. Development shall comply with all applicable provisions of the City of Mendota General Plan and the Mendota Municipal Code (MMC), including but not limited to: potable water protection regulations (Chapter 13.30), business licensing requirements (Title 5), and Building Code Standards (Title 15); the Subdivision Ordinance (Title 16); the regulations of the applicable zone district(s) and other relevant portions of the Zoning Ordinance (Title 17); and the City of Mendota Standard Specifications and Standard Drawings, unless exceptions therefrom are approved by the City Engineer.
8. Use of the site shall conform to all applicable requirements for the M-1 Light Manufacturing Zone District as modified by the provisions of the CO Commercial Cannabis Overlay District.
9. The site plan shall be revised to reflect the comments of the City Engineer and City Planner provided October 31, 2020 and to depict locations and dimensions of existing and proposed features, utilities, and other improvements.
10. Construction drawings (building and improvement plans; site, grading, irrigation, and landscaping, as applicable) shall be submitted to the Planning and Building Department and City Engineer for review and approval. A building permit shall be acquired prior to start of any construction activities.
11. No new landscaping is required. Any existing landscaping damaged or destroyed as a result of construction shall be repaired or replaced in-kind by the applicant at the discretion of the City Planner.
12. The applicant shall provide a lighting plan for the review and approval of the City Engineer. All exterior lights shall be shielded or otherwise oriented to prevent disturbance to surrounding or neighboring properties or traffic on abutting rightsof-way.
13. The applicant shall consult with and shall comply with the requirements of the San Joaquin Valley Air Pollution Control District, including but not limited to compliance with Regulation VIII (Fugitive PM10 Prohibitions) and Rule 9510 (Indirect Source Review).
14. The applicant shall consult with and shall comply with the requirements of the Fresno County Fire Protection District/CAL FIRE, including but not limited to requirements related to sprinklers, fire hydrants, and fire access. 6 15. The developer shall comply with Health and Safety Code Section 7050.5 and Public Resources Code Sections 5097.98, and 21083.2 and related statutes regarding regulation of cultural and historical resources that may be discovered on the site.
16. Development and operation of the project site shall be in substantial conformance with the Site Plan dated September 29, 2020 and the operational statement dated October 13, 2020 as incorporated herein by reference. The City Planner shall determine the extent to which incremental or minor changes to the site plan, the landscape plan, and/or the operational statement meet this requirement.
17. Following any changes made to the site plan as a result of these conditions or other commentary, correspondence, or official requirement, the applicant shall submit a copy of the final site plan as revised to the Planning Department for inclusion in the project file. Changes made pursuant to these conditions shall be considered minor or incremental.
18. Prior to issuance of a certificate of occupancy, all relevant conditions of approval shall be verified as complete by the Planning Department, and any and all outstanding fees shall have been paid. Any discrepancy or difference in interpretation of the conditions between the subdivider and the Planning Department shall be subject to review and determination by the Planning Commission.
19. All above-ground features including but not limited to lighting, fire hydrants, postal boxes, electrical and related boxes, and backflow devices shall be installed outside of the public-right-of-way. All utilities shall be installed underground.
20. Hours of construction shall be limited to 6:00 AM to 7:00 PM, Monday through Saturday.
21. Construction debris shall be contained within an on-site trash bin and the project site shall be watered for dust control during construction.
22. Any non-structural fencing shall be subject to approval by the Community Development Department consistent with Standard Drawing Nos. M-3 through M7.
23. The applicant shall comply with all relevant components of the California Building Code and associated trade codes.
24. All signage must be approved pursuant to the standards and guidelines of the Mendota Municipal Code prior to installation.
25. Development shall at all times respect existing or new easements by, for, and between all private and public entities, including but not limited to the City of Mendota.
7 26. It shall be the responsibility of the subdivider to grant/secure easements as necessary for the installation and maintenance of private utilities, including but not limited to electricity, gas, telephone, and cable television.
27. Connection points for water and wastewater shall be determined by the City Engineer. Connections shall be made in accordance with City of Mendota standards and shall be coordinated with the Director of Public Utilities.
28. The applicant shall comply with the City of Mendota Cross-Connection Control Regulations contained within MMC Section 13.24.
29. The applicant shall coordinate with the City Engineer and Mid Valley Disposal to establish necessary solid waste procedures and facilities.
Water System Improvements
30. The project is subject to the provisions of the Conditional Will-Serve Letter issued by the City of Mendota on September 8, 2020.
31. The site plan shall be revised to illustrate existing and proposed water facilities.
32. The project shall make connection(s) to the City water system as determined by the City Engineer.
33. The improvement plans shall include the location of existing water mains, valves, and valve boxes located in adjacent streets that the proposed water system is to be connected to.
34. All connections to the existing water mains shall include a temporary reduced pressure double check backflow preventer (see Standard Drawing No. W-8) and follow the connection procedures outlined in that standard, or exhibit compliance with AWWA Standard C651-05.
35. Fire hydrants shall be spaced not to exceed 300 feet on center and shall be individually valved between the hydrant and the water system.
36. Fire flow conditions are subject to review and approval by the Fresno County Fire Protection District/CAL FIRE.
37. A meter, meter box, and service shall be installed to each unit. Applicant shall obtain meter type, size and service requirements from the Public Utilities Department and/or the City Engineer. The construction of the water service with meter shall be installed per Standard Drawing No. W-1 and Standard Specifications.
38. All water meters shall be Badger Model E Series with Nicor Connector (E-Series Ultra Plus for sizes 3/4” and 5/8”) with Badger Model Orion CMNA-N Cellular Endpoint with Nicor Connector fully loaded with through lid mounting kit
39. No water services are allowed within drive approaches. 8 =
40. The project shall comply with City of Mendota's Automated Water Meter Reading System
Sewer System Improvements
41. The site plan shall be revised to illustrate existing and proposed sewer facilities.
42. The project shall connect make connection(s) to the City wastewater system as determined by the City Engineer.
43. No sewer laterals are allowed within driveways. All laterals and cleanouts shall be installed per Standard Drawings No. S-7A and M-1.
Storm Drain Improvements
44. To ensure proper spacing between underground facilities and allow for unimpeded placement of brass cap monuments in the road surfaces at the intersections of the streets, the location of sewer mains shall conform to Standard Drawing No. M-1.
45. Storm drainage facilities shall be constructed per City of Mendota Standard Drawings and Specifications.
46. If applicable, valley gutter construction shall be consistent with City of Mendota Standard Drawing No. ST-14 unless an alternate design is approved by the City Engineer.
Streets
47. The applicant shall provide for acquisition of any and all necessary easements to accommodate access to the site from the current northerly terminus of Belmont Avenue.
48. Any work within the City of Mendota right-of-way shall require an encroachment permit.
49. Any work within Caltrans right-of-way shall require an encroachment permit.
50. All concrete work, including curbs, gutters, valley gutters, sidewalks, drive approaches, curb ramps, and other concrete features shall contain a minimum of six (6) sacks of cementous material per cubic yard unless otherwise approved by the City Engineer.
51. Any broken, damaged, or substandard sidewalk, curb, gutter, or pavement along the project frontages, or any of the above damaged during construction wherever located, shall be removed and replaced as directed by the City Engineer consistent with City Standard Drawings.
52. Drive approaches, as necessary, shall be installed consistent with Standard Drawing No. ST-15.
9 Fees
53. This project is also subject to a development agreement. Fees discussed in that agreement are not included herein and are in addition to this section.
54. The applicant shall be responsible for payment of any and all outstanding planning, building, plan check, engineering, and attorney fees prior to issuance of a certificate of occupancy. This shall include all fees incurred by the City’s consultants or contract staff resulting from preliminary review, correspondence, review of formal application materials, peer review of documents, processing of application materials, attendance at and/or participation in meetings and conference calls, or other services rendered in relation to the project.
55. Concurrently with submittal of improvement and/or building plans, the applicant shall deposit with the City of Mendota funds in an amount estimated by the City Engineer and/or Building Official, respectively, to be sufficient to offset costs to the City for review of such plans. In the event that such funds are not sufficient to cover costs to the City, the City Engineer and/or Building Official, as appropriate, shall contact the applicant to request additional funds, which the applicant shall then deposit with the City.
56. The applicant shall pay to the City of Mendota development impact fees consistent with the City’s current Development Impact Fee Schedule (January 2007). Fees are due in full prior to issuance of a certificate of occupancy.
57. The applicant shall be responsible for payment of fees to the Mendota Unified School District and shall provide the City with evidence of payment, or evidence of the District’s determination that no payment is required, prior to issuance of a certificate of occupancy.
58. The applicant shall be responsible for payment of Fresno County Regional Transportation Mitigation Fees and Fresno County Public Facilities Impact Fees and shall provide the City with evidence of payment, or evidence of the County’s determination that no payment is required, prior to issuance of a certificate of occupancy.
EXHIBIT EXHIBIT EXHIBIT 33
CITYOF MENDOTA
ocCantaloupe Center Of The World"
VIA II.S. MAIL & EMAIL:
&ti clraE I Jen se n @ o Sr.s s qy:lg$tg}3lg. c A ffil
Odyssey Agricultural Development, LLC
2222 E Olympic Blvd
Los Angeles, CA 90021
Attn: Legal Department
Re: Conditional Use Permit Revisions and Delayed Enforcement The City of Mendota ("City") has received your requests to modiff the site plans that were attached to and approved alongside your Conditional Use Permit ("CUP") in Planning Commission Resolution No. 20-07 and Development Agreement ("DA") in City Council Ordinance No. 21-03.
As presented during the August 24,2021, City Council meeting, the revised site plans contemplate dividing the multiple commercial cannabis license uses from within one (1) 45,000 square-foot building to eight (8) separate structures of the following sizes:
One (l) 9,000 square-foot greenhouse building;
Two (2) 1 0, 000 square-foot processing/manufacturing buildings ; One (1) 10,000 square-foot building for corporate offices and employee break rooms;
One (l) 18,000 square-foot distribution building;
One (1) 30,000 square-foot drying/processing building;
One ( I ) 3 0,000 square-foot manufacturing/drying/processing building; and One (1) 64,000 square-foot indoor cannabis cultivation building.
As with the original site plans, the revised site plans contemplate using the remainder of the site for outdoor cannabis cultivation. Discussions with your representatives have clarified the proposed site reorganization will not affect the total square footage allocated to outdoor cannabis cultivation on the property.
The CUP tasks the City with monitoring the operation of your facility for violations of the conditions of approval. (CUP, Operations, $ 4.) As approved, the site plans should "depict locations and dimensions of existing and proposed features, utilities, and other improvements." (CUP, General & Site, $ 9.)
Development and operation of the project site shall be in substantial conformance with the Site Plan dated September 29,2020 and the operational statement dated October 13,2020 as incorporated herein by reference. The City Planner shall determine the extent to 643 Quince Street Mendota, Galilornia 93640
Telephone: (559) 655-3291 Fresno Line: (559) 266-6456 Fax: (559) 655-4064 TDDfTTY 866-735-2919 (English) TDD/ITY 866-833-4703 (Spanish) ci. mendota.ca.us
The Gity ol Mendota is an equal opportunity prouider and employer which incremental or minor changes to the site plan, the landscape plan, and/or the operational statement meet this requirement.
(CUP, General &, Site, $ L6, emphasis added.)
Following the approval of the CUP, the site plan was flipped on its vertical axis to accommodate site access. This modification was deemed incremental or minor by the City Planner, and no further action was required beyond filing an updated site plan.
In contrast, however, the City Planner has indicated the proposed permanent structure revisions and expansions detailed on the revised site plan discussed above are perceived to result in substantial, increased industrial uses of the site, regardless of whether the commercial cannabis license uses are listed in the CUP and DA. AIso, the existing site plans do not contemplate the expansion of your operations in multiple "phases" as presented during the August 24,2021, City Council meeting. Accordingly, an amendment to the CUP to incorporate the revised site plans and phases of construction must be obtained here. This CUP amendment should be supported by a California Environmental Quality Act ("CEQA") addendum indicating no new environmental impacts will occur as a result of these modifications.
This letter shall serve as notice that, in accordance with Article XI, Section 7 of the California Constitution, the City will exercise its discretion not to expend its enforcement resources to prevent your development of the project site during the pendency of the CUP amendments discussed above. This enforcement discretion is being exercised on a short-term, temporary basis only in recognition of the brief duration of the uses discussed above and your urgent need to proceed to harvest the plants grown in accordance with your existing CUP and DA.
Please be advised that, this letter is non-binding and shall not create any obligation or liability (including any obligation to start or continue negotiations), and no course of conduct or dealing (including, but not limited to, discussions, negotiations, emails, or other correspondence or the exchange of draft documents) shall create any binding obligations on the Crty's behalf other than fully executed and delivered approvals. (See Cal. Code Regs., tit.14, $$ 15004, subd. (b)(4), and 15352.) Any confirmation by the City that it has an interest or willingness to perform as laid out herein shall not foreclose the City's future consideration of all relevant altematives or mitigation measures that CEQA may otherwise require to be considered, including, but not limited to, the alternative of not moving forward with amendments to the project at all. All future project approvals are conditions upon your successful compliance with all statutory and regulatory requirements associated with the successful implementation of the same (e.g. obtaining all discretionary permits, including, but not limited to: CEQA documentation, review, and approvals; final adjudication of any legal challenges based on CEQA; and all environmental, title, physical, water quality, and economic aspects of the project having been assessed and resolved sufficiently for the issuance of an amended conditional use permit).
Accordingly, before engaging in any temporary or permanent construction that conflicts with your existing site plans, you must first execute the attached Acknowledgment and Waiver. In so doing, you will acknowledge your understanding that the City will be conducting a comprehensive review of your forthcoming application for an amended CUP and, as a result, you 2 may be required to comply with new or different conditions of approval or regulations. In addition, you will agree that, if, after conducting its review, the City adopts new or different conditions of approval or regulations, you will comply with all such regulations and will not claim that your use of the Properly constitutes a legal non-conforming use.
Please do not hesitate to contact me if you need to discuss the matters outlined above further
Very truly yours,
Cristian Gonzalez
City Manager for the City of Mendota
3 EXHIBIT EXHIBIT EXHIBIT 44
Acknowledgment and Waiver
I, Odyssey Agricultural Holdings LLC, hereby warrant, acknowledge, and agree to the following:
1. I am the owner, or the authorized agent or representative of the owner, of the property located at 418 W. Belmont Ave., Mendota, CA 93640 (“Property”), and I have the authority to execute this Acknowledgement and Waiver and to bind the owner of the Property to its terms.
2. The City of Mendota (“City”) intends to conduct a comprehensive investigation regarding your use of Property within the City for commercial cannabis activity as laid out in the existing and revised site plans for your project and, based on the results of that investigation, to take appropriate action to regulate the activity, including, among other things, to issue a new or amended Conditional Use Permit that conforms to your revised site plans, to establish or modify regulations related to commercial cannabis activity, and any other lawful action the City is authorized to perform in the exercise of its police power.
3. The City’s determination that my use of the Property in a manner inconsistent with the existing site plans is made on a short-term, temporary basis only for the purpose of allowing the City sufficient time to conduct a review of the revised site plans and to determine the appropriate manner to regulate said activity.
4. The Property may be subject to new or different regulations or conditions of approval in connection with its modified uses pursuant to the revised site plans.
5. I will comply with any and all laws or regulations currently in effect or hereafter imposed with respect to engaging in any temporary or permanent construction that conflicts with existing site plans, including, but not limited to, any laws, regulations, or conditions imposed as a consequence of any amendment of the City’s regulations, any administrative decision regarding my Conditional Use Permit, or any other lawful action of the City.
6. Ifthe City elects to impose new or different regulations or conditions with respect to uses not contemplated by my Conditional Use Permit, I will not claim that my use of the Property constitutes a legal, non-conforming use, or take any other action to continue my use of the Property without complying with such new or different regulations or conditions.
7. I hereby agree to indemnify, defend, and hold harmless the City, its agents, contractors, employees, and successors from and against any and all loss, liability, claim, damage, and expense whatsoever arising out of or based upon engaging in any temporary or permanent construction that conflicts with the existing site plans for commercial cannabis activity, or the imposition in the future of any new or different regulations or conditions on the Property or commercial cannabis activity. {7623/016/01325955.DOCX}
8. I hereby waive and release any and all claims, known or unknown, that I may have against the City, its agents, contractors, employees, and successors arising out of or based upon the use of the Property by engaging in any temporary or permanent construction that conflicts with the existing site plans or any new or different regulations or conditions the City imposes on the Property or commercial cannabis activity in the future. This waiver and release is knowingly made to include unknown claims in accordance with California Civil Code section 1542, which provides, “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
ODYSSEY AGRICULTURAL HOLDINGS LLC
Date: October 42021 4
{7623/016/01325955 DOCX}
EXHIBIT EXHIBIT EXHIBIT 55
ODYSSEY AGRICULTURAL DEVELOPMENT LLC
418 W. BELMONT AVE. | MENDOTA, CA 93640
July 21, 2022
Sent via Email to:
Cristian Gonzalez
City Manager
Re: Odyssey Agricultural Development LLC Development Agreement Dear City Manager Gonzalez,
I am the President of Odyssey Agricultural Development LLC (“Odyssey”) and write in follow up to my presentation to the Mendota City Council on July 12, 2022 (“July 12 Meeting”) as part of the annual review of OAD’s Development Agreement (“DA”) for the property located at 418 W Belmont Ave (the “Property”).
Odyssey greatly appreciates the opportunity granted to it by the City of Mendota to develop one of the largest cannabis farms in the state. Odyssey further appreciates the ongoing support provided by the City Manager and his staff and the openness of the City Council to consider ways to improve the City’s cannabis licensing program. The purpose of this letter is to present proposals for ensuring that Odyssey and Mendota can achieve the shared goals of the DA.
Development Agreement Background
Odyssey and the City entered into the DA in March 2021 with the shared goal of turning the Property into one of the largest cannabis cultivation complexes in the state, which would employ dozens of Mendota residents and support local businesses and vendors. The DA calls for Odyssey to pay to the City a quarterly public benefit fee (“Public Benefit Fee”) of $150,000 or 4% of gross receipts, whichever is greater. Put another way, the City is guaranteed a minimum of $150,000 every quarter, but will be owed more if Odyssey’s annual gross receipts exceed $15 million. From the start, Odyssey has intended to fully realize the potential of the Property as soon as possible to generate well over $15 million in gross receipts and thereby significantly increase the size of Public Benefit Fee.
After signing the DA, Odyssey immediately got to work developing the Property, and between June 2021 and October 2021, Odyssey took a vacant 36-acre parcel and turned it into one of the largest outdoor farms in the state with 11 acres of planted fields and over 35,000 square feet of structures. After dealing with intense windstorms and rains and a myriad of other challenges, Odyssey harvested approximately 10,000 pounds of cannabis at the Property.
Unfortunately, the harvest of the first crop coincided with the beginning of the worst downturn in the cannabis market ever experienced in the California. Whereas wholesale prices for premium outdoor flower were around $800-1000/pound at the time Odyssey planted the 11 acres in July, by October wholesale prices had dropped below $200/pound, which made it impossible for Odyssey to even recoup its investment in the cost of harvest, let alone turn a 2 profit. In fact, to date, Odyssey has generated less than $800,000 in revenue from the first harvest despite investing millions of dollars into the Property. To put that number in context, Odyssey has paid $575,000 in Public Benefit Fees to date, which constitutes approximately 70% of the revenues generated at the Property thus far.
Since October 2021, the market downturn has only worsened, and it is now clear that the California cannabis industry is in for a prolonged price depression. Thousands of cultivators have ceased operations because there is simply no way for them to make a profit or break even under current market conditions. Many predict that only a small percentage of these cultivators will ever plant again.
Despite the incredibly challenging market conditions, Odyssey has stayed true to its word to turn the Property into one of the largest year-round cannabis cultivation farms in California. In February 2022, Odyssey began construction of 48 greenhouses on the Property that, when completed, will allow Odyssey to generate over $15 million per year in gross receipts and employ more than 100 people on the Property full time. This will add to Odyssey’s already substantial economic impact in Mendota, which is currently at least $100,000 per month when accounting for money spent at local businesses and wages paid to two dozen Mendota and Firebaugh residents employed full time at the Property.
Realizing the Property’s full economic impact, however, will require Odyssey to invest millions more in capital and operational expenditures. Under current market conditions, the cashflows generated by the Property are nowhere near sufficient to cover those capital requirements, and Odyssey, as a self-funded company, cannot call on the support of investors to expedite completion of its developments. While Odyssey will be able to eventually finish developing the Property as promised, it will be significantly delayed in allocating the capital necessary to do so if it must continue to pay Public Benefits Fees over the next year. Put simply, Odyssey faces a choice of paying the Public Benefit Fees or finishing the development as soon as possible. It cannot do both. The delay in completing the development will hurt not just Odyssey, but also the City and its residents who will be left to wait for the far greater Public Benefit Fees and employment that will be realized when the Property is fully developed.
Fee Deferral Request
As discussed at the July 12 Meeting, Odyssey believes it is in the shared interest of Odyssey and the City for the City to grant Odyssey a deferral of payment of the Public Benefits Fees to allow Odyssey to finish development of the Property as soon as possible. Odyssey therefore respectfully requests that the City grant Odyssey a deferral of payment of Public Benefit Fees totaling $600,000 for Q2 2022, Q3 2022, Q4 2022 and Q1 2023 (“Deferred Fees”).
Thereafter, Odyssey would pay the Deferred Fees in twelve (12) quarterly installments of $50,000 beginning in Q2 2023. By way of example, in Q2 2023, Odyssey would pay the first $50,000 installment of the Deferral Fee plus the Public Benefit Fee due in that quarter.
Odyssey has demonstrated its commitment to a long-term partnership with the City of Mendota despite facing the worst market conditions ever seen in the cannabis industry. That Odyssey continues to invest millions of dollars to operate and develop the Property (and employ 3 dozens of Mendota residents) when thousands of its competitors have shut down their operations is proof alone of its commitment to the City. Odyssey is not seeking to evade its commitment to the residents of Mendota; rather it is seeking a path forward through the most challenging of economic circumstances to ensure that it can fully meet it promises under the DA for the long term. Odyssey also certainly understands that a deferral of the Public Benefits Fees will have impacts on the City’s current fiscal year budget, however Odyssey, in good faith, fully believes that the City’s long-term fiscal position will be improved by helping Odyssey expedite completion of the development of the Property so that its full economic potential can be realized.
Tax Reform Discussion
Odyssey appreciated the recognition by members of the City Council at the July 12 Meeting of the need to discuss long-term reforms to the City’s Public Benefit Fee/tax structure for all licensed cannabis businesses in Mendota. The cannabis industry is evolving rapidly – for good and bad – and the lofty projections made by businesses and policymakers alike to justify the enormous taxes on cannabis activity have been brought down to earth by the stark reality of current market conditions. Across the state, policy makers and stakeholders are continuously discussing the proposals to lower taxes, and just last month the State of California eliminated the state cultivation tax. While these initial reforms are welcomed, far more is needed to address the layers of state and local taxes that make cannabis the most taxed industry in the state by a large margin.
Many jurisdictions are now realizing that it is not a given that the cannabis businesses they have licensed will be able to survive and prosper in the long term under existing tax structures. Further, as the industry rapidly consolidates, the largest, most successful operators are increasingly picking jurisdictions to invest in based on the local tax structures. This approach is increasingly becoming a necessity because in the hyper-competitive cannabis industry even a small edge on taxes can give a business a major advantage over its competitors.
Odyssey would welcome the opportunity, alongside its fellow Mendota cannabis businesses, to present to the City Council for its consideration a variety of tax policy proposals to set a foundation for the long-term success of the cannabis industry in Mendota.
I am available at your convenience to discuss these matters further. Thank you.
Sincerely,
/s/Alexander Freedman
President, Odyssey Agricultural Development LLC
cc: Hunter C. Castro, Esq. ([email protected])
John Kinsey, Esq. ([email protected])
EXHIBIT EXHIBIT EXHIBIT 66
ODYSSEY AGRICULTURAL DEVELOPMENT LLC
418 W. BELMONT AVE. | MENDOTA, CA 93640
December 13, 2022
Sent via Email to:
Cristian Gonzalez
City Manager
Re: Odyssey Agricultural Development LLC Development Agreement with the City of Mendota (“City”)
Dear City Manager Gonzalez,
I write on behalf of Odyssey Agricultural Development LLC (“Odyssey”) in follow up to Odyssey’s written fee deferral request dated July 21, 2022, and its presentations to the Mendota City Council concerning the same on July 12, 2022, and October 12, 2022.
Despite not having come close to a profit in 18 months of operation at its farm in the City, Odyssey has already paid the City almost $600,000 in public benefit fees and has injected millions of dollars into the local economy. Now, at the worst time in the history of the cannabis industry in California, Odyssey is investing every available dollar to finish development of the farm and make it economically sustainable. This investment will create a foundation for Odyssey to contribute millions of dollars in public benefit fees in years to come. Odyssey greatly appreciates the support of the City thus far and respectfully asks for the City’s further support to help realize the full economic potential of the farm.
As of today, the unpaid public benefit fees under Odyssey’s Development Agreement total $450,000. On July 21, 2022, Odyssey requested a deferral of these fees plus the Q1 2023 fee in the form of a payment plan of $50,000 per quarter for 12 quarters. Per the default notice dated September 29, 2022, the City rejected this request on the grounds it would constitute a gift of public funds. The City did not provide further detail as to any other objection to the payment plan request. Nonetheless, Odyssey proposes a revised payment schedule for the $450,000 in fees currently outstanding:
Payment Date Payment Amount
January 2023 $100,000
April 1, 2023 $35,000
July 1, 2023 $35,000
October 1, 2023 $35,000
January 1, 2024 $35,000
April 1, 2024 $35,000
July 1, 2024 $35,000
October 1, 2024 $35,000
January 1, 2025 $35,000
April 1, 2025 $35,000
July 1, 2025 $35,000
2 In addition to the fee deferral proposal, Odyssey wishes to continue the discussion with the City regarding a general reform of the cannabis fee/tax structure in the City. As shared with City officials on numerous occasions, at the end of 2021 the cannabis industry entered a severe downturn that has only worsened over the course of 2022. While there was initial hope that the industry would quickly recover, hard truths about the industry have become apparent, namely that the industry is heading rapidly towards commoditization where profits margins are a small fraction of what they were in the early days of legalization.
Policy makers across the state have responded to the economic reality of the cannabis industry with significant tax reforms, including the State of California’s elimination of the state cultivation tax entirely. Many cities and counties have followed suit and adopted significant cannabis tax reform in 2022. Below is a non-exhaustive survey of recent tax reductions adopted in local jurisdictions that are major centers of outdoor cultivation.
Jurisdiction Legislative Action
Monterey County -Reduced outdoor cultivation tax from $2.50/sq ft to $1/sq ft
-Directed County Treasurer to offer cultivators
payment plans for taxes owed through 2023
Sonoma County Reduced cultivation tax by 45% through at least June 30, 2023
-Postponed tax payment due dates and suspended
late fees
Calaveras County -60% reduction in square footage canopy tax rate for cultivators (NOTE: This proposal was
considered for adoption on 12/13/22)
Humboldt -Suspended 85% of cultivation tax for 2021
-Suspended 100% of cultivation tax for 2022 and
2023
Lake County -Reduced cultivation tax by 50%
-Postponed tax payment due dates and waived
late fees
Nevada County -Reduced cultivation tax by 50%
These reforms acknowledge several important facts about cannabis tax policy. First, the original tax structures conceived in the first few years after passage of Proposition 64 have been shown to be a simply incompatible with the development of healthy industry and therefore require long-term reform. Second, the extensive fees and taxes cannabis businesses originally agreed to pay, especially those not pegged entirely to a percentage of gross receipts, have become so untenable in these current market conditions that deferrals and postponements of existing obligations are necessary to keep local cannabis businesses afloat. The fact that so many jurisdictions referenced above have decided to suspend and/or postpone collection of taxes says it all. It also demonstrates that the City of Mendota could take legislative action to defer its collection of fees without running afoul of gift of public funds regulations. 3 Considering these facts, Odyssey proposes that beginning in 2023, all public benefit fees for cannabis businesses should be calculated based on 2% of a business’ quarterly gross receipts.
A percent-based fee ensures that the City and cannabis businesses are aligned both in good times and bad. When the cannabis business does well, the City is guaranteed its proportional share that will fund numerous public benefits. When the cannabis business does not do well, the business is not saddled with disproportionate fees that only make it more difficult for the business to recover and generate greater fee revenue in the future. Case in point: despite generating little over $1 million in revenue in 18 months of operation, Odyssey has already incurred $1 million in public benefit fee obligations. No cannabis business can survive, let alone thrive, under such a burdensome tax structure.
In summary, Odyssey proposes payment of the outstanding $450,000 in fees over the course of the next 30 months in addition to a public benefit fee of 2% of quarterly gross receipts beginning in January 2023.
I am available at your convenience to discuss these matters further. Thank you.
Sincerely,
/s/Alexander Freedman
President, Odyssey Agricultural Development LLC
cc: Hunter C. Castro, Esq. ([email protected])
EXHIBIT EXHIBIT EXHIBIT 77
ODYSSEY AGRICULTURAL DEVELOPMENT LLC
418 W. BELMONT AVE. | MENDOTA, CA 93640
January 30, 2023
Sent via US Mail and Email to:
City of Mendota
643 Quince Street
Mendota, California 93640
c/o Cristian Gonzalez, City Manager
[email protected]
Wanger Jones Helsley PC
256 E. River Park Circle, Suite 310
Fresno, California 93720
c/o John Kinsey, Esq
[email protected]
Re: Development Agreement by and between the City of Mendota and Odyssey Agricultural Development, et al.
Dear Cristian and John:
I write on behalf of Odyssey Agricultural Development LLC, Odyssey Agricultural Holdings LLC, and Valley Agricultural Holdings, LLC (collectively, “Odyssey”) regarding their Development Agreement with the City of Mendota dated March 26, 2021 (the “Development Agreement”). More specifically, I write regarding the special meeting of the Mendota City Council on February 2, 2023, at which the City Council intends to consider the status of the Development Agreement, including potential action to terminate the Development Agreement.
On January 18, 2023, the Mendota Planning Commission considered Odyssey’s request to amend the terms of the Development Agreement and voted unanimously to recommend to the City Council that it consider implementing a revised tax structure and consider and approve Odyssey’s proposed plan for deferred payment of public benefit fees. Odyssey is hopeful that the City Council will adopt the Planning Commission’s recommendation and work with Odyssey and other cannabis operators in Mendota to develop a revised cannabis tax structure that will ensure the long-term success of the cannabis industry in the City.
Without undermining that hopefulness, Odyssey nevertheless reserves all rights under the Development Agreement and applicable law and must submit this letter for the record that any action by the City Council at the February 2, 2023, special meeting to terminate the Development Agreement would be invalid and ineffective.
Under Section 8.1 of the Development Agreement, the City must give Odyssey no less than 30 calendar days to cure a default. If the default is not cured within the 30-day notice period, then the City may give Odyssey notice of its intent to terminate the Development Agreement. However, prior to the City giving notice to Odyssey of its intent to terminate the Development Agreement, the City must schedule the matter for consideration and review in a 2 public hearing within 30 calendar days of the expiration of the 30-day notice period. After the duly noticed public hearing within the requisite time frame, the City may give written notice of the termination of the Development Agreement.
On November 18, 2022, the City issued Odyssey a Notice of Default and Demand for Cure (“Notice of Default”), which provided Odyssey until Sunday, December 18, 2022, to cure the alleged default. While December 18, 2022, was 30 calendar days from November 18, 2022, Section 10.11(p) (“Calculation of Time Periods”) of the Development Agreement provides that “[a]ll time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.” As such, the City was required to provide Odyssey until Monday, December 19, 2022—not Sunday December 18, 2022—to cure the alleged default. The City’s failure to give accurate notice and an opportunity to cure as required under the Development Agreement renders any decision stemming from the defective notice invalid and ineffective.
Even if the Notice of Default was not defective, the City Council may not terminate the Development Agreement at its special meeting on February 2, 2023, because the public hearing to consider and review the matters contained in Notice of Default was not scheduled within the time frame required under Section 8.1(c) of the Development Agreement, which requires the City Council to schedule a public hearing for consideration and review “within thirty (30) calendar days from the expiration of the thirty (30) day notice period.” Here, the latest the City Council could have scheduled the requisite public hearing for consideration and review of the Notice of Default was January 18, 2023. The City Clerk scheduled a meeting relating to the Notice of Default for January 18, 2023, but later cancelled the meeting several hours before it was scheduled to be held.
While the City Council is of course free to schedule meetings to consider and review the Development Agreement at its discretion—and Odyssey welcomes the opportunity to engage with the City Council on this matter at any time the City Council desires—its opportunity to terminate the Development Agreement under Section 8.1 as it relates to the Notice of Default has expired.
Again, Odyssey remains hopeful that it will find common ground with the City Council at the upcoming special meeting, and it is simply making a record of the matters referenced in this letter to preserve its rights should the City Council vote to terminate the Development Agreement. I am available at your convenience to discuss these matters to the extent the City feels such a discussion is necessary prior to the February 2, 2023 special meeting. Thank you.
Sincerely,
/s/Alexander Freedman
President, Odyssey Agricultural Development LLC,
Odyssey Agricultural Holdings LLC, and
Valley Agricultural Holdings, LLC
3 cc: Hunter C. Castro, Esq. ([email protected]) Celeste Cabrera-Garcia, City Clerk ([email protected]) EXHIBIT EXHIBIT EXHIBIT 88
OLIVER W. WANGER
TIMOTHY JONES*
MICHAEL S. HELSLEY RILEY C. WALTER
PATRICK D. TOOLE SCOTT D. LAIRD
JOHN P. KINSEY
KURT F. VOTE
TROY T. EWELL
JAY A. CHRISTOFFERSON
MARISA L. BALCH
AMANDA G. HEBESHA**
PETER M. JONESt+ STEVEN M. CRASS}
JEFFREY B. PAPE}
DEBORAH K. BOYETT
STEVEN K. VOTE
WANGER JONES HELSLEY PC
ATTORNEYS
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FAX
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WJH
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HUNTER C. CASTRO
STEPHANIE M. HOSMAN RACHEL L. POMBO NATHAN J. MARTIN
COLTEN D. BALLINGER
Also admitted in Washington Also admitted in Idaho
* Also admitted in Virginia
January 31, 2023
VIA EMAIL ONLY: [email protected]
[email protected]
Re:
Response to January 30, 2023, Letter
To Whom It May Concern:
The City of Mendota (“City”) is in receipt of the January 30, 2023, letter (“Letter”) submitted by Odyssey Agricultural Development, LLC; Odyssey Agricultural Holdings, LLC; and Valley Agricultural Holdings, LLC (collectively, “Developers”), regarding Developers’ objections to the procedures underlying the review hearing set for February 2, 2023. As requested, Developers’ Letter and this response will be included in the record provided to the City Council prior to the hearing regarding the Parties’ Development Agreement (“DA”).
First, Developers objected to the contents of the City’s November 18, 2022, Notice of Default and Demand for Cure (“Notice of Default”). Developers assert the Notice of Default is void because it failed to provide the requisite thirty-day period to cure when its listed deadline of December 18, 2022, fell on a Sunday and not the following Monday, December 19, 2022. (See DA, §§ 8.1, subds. (a) and (b) [initial default procedures], 10.11, subd. (p) [“All time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.”].) As a result, Developers concluded, “The City’s failure to give accurate notice and an opportunity to cure as {7623/034/01547493.DOCX}
www.wjhattorneys.com
WANGER JONES HELSLEY PC
January 31, 2023
notice invalid and ineffective.” (Letter, p. 2.)
Government Code section 65010, subdivision (b), provides:
No action, inaction, or recommendation by any public agency or its legislative body or any of its administrative agencies or officials on any matter subject to this title shall be held invalid or set aside by any court on the ground of the improper admission or rejection of evidence or by reason of any error, irregularity, informality, neglect, or omission (hereafter, error) as to any matter pertaining to petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, or any matters of procedure subject to this title, unless the court finds that the error was prejudicial and that the party complaining or appealing suffered substantial injury from that error and that a different result would have been probable if the error had not occurred. There shall be no presumption that error is prejudicial or that injury was done if the error is shown. (Gov. Code, § 65010, subd. (b), emphasis added.) Developers suffered no prejudice by way of the Notice of Default listing December 18th as the deadline to pay $450,000 past due to the City at that time instead of the 19th. Developers were already formally in default of the DA for failing to pay $300,000 past due to the City in connection with the previous Request for Cure of Default City issued to Developers on September 30, 2022. The failure to list December 19th in place of December 18th on the Notice of Default has no bearing on Developers’ decision not to pay the $350,000 that remains unpaid as of the date of this response. Indeed, even if the City Council were to vote to terminate the DA at the upcoming February 2, 2023, review hearing, Developers would be provided another five days to cure their default. (DA, § 8.1, subd. (d).) No prejudice or injury has resulted from the Notice of Default, and, based on Developers’ representatives’ testimony during the January 18, 2023, Planning Commission review hearing, no different result would have occurred had the Notice of Default stated otherwise.
Second, Developers objected to the upcoming City Council meeting being moved to February 2, 2023, instead of proceeding on January 18, 2023, following the Planning Commission’s review hearing as originally scheduled. Developers assert “the public hearing to consider and review the matters contained in the Notice of Default was not scheduled within the time frame required under Section 8.1(c) of the Development Agreement, which requires the City Council to schedule a public hearing for consideration and review ‘within thirty (30) calendar days from the expiration of the thirty (30) day notice period.’” (Letter, p. 2, emphasis added [arguing for /ess time before considering termination].) Review of a development agreement is a multi-step process that requires at least two meetings, each of which has a ten-day minimum publication requirement. (See Gov. Code, §§ 65090, 65091, 65094, 65865, 65867, 65868.) These onerous procedural requirements are {7623/034/01547493.DOCX}
WANGER JONES HELSLEY PC
January 31, 2023 Page 3 designed to protect Developers from having their interests affected without notice and a meaningful opportunity to be involved in the process.
The City’s interpretation (which is generally entitled to deference) of Section 8.1 differs from that adopted by the Developers.
Prior to the Charging Party giving notice to the Charged Party of its intent to terminate, or prior to instituting legal proceedings, the matter shall be scheduled for consideration and review by City in the manner set forth in Government Code sections 65865, 65867, and 65868 or the comparable provisions of the Mendota Municipal Code within thirty (30) calendar days from the expiration of the thirty (30) day notice period.
(DA, § 8.1, subd. (c), emphasis added.) Section 8.1 does not require the (1) City Council (2) conduct a hearing before the thirty-day period following the Notice of Default’s cure window expires. Instead, within the thirty days following the expiration of the Notice of Default’s cure window, the City, not the City Council, was required to schedule the matter for consideration and review pursuant to Government Code sections 65865, 65867, and 65868. (Jd.) The City did so by timely scheduling the January 18, 2023, Planning Commission review hearing.
The fact that the second review hearing was set for February 2, 2023, is not prejudicial to Developers. In fact, Developers have gained additional time to pay the undisputed sums past due to the City before this second review hearing. The City’s “opportunity to terminate the [DA] under Section 8.1 as it relates to the Notice of Default” has not “expired” as Developers assert. (Letter, p. 2.) Section 8.1, subdivision (c), was designed to ensure the Parties initiate a review process while a default is fresh, not to force immediate publication of back-toback hearing notices in a race to preserve the City’s right to terminate the DA for a material breach. Providing Developers additional time to repay the undisputed amounts due will not work a forfeiture of the City’s rights to enforce the DA. (See DA, §§ 4.2, subd. (b) [Failure to remit the . . . Public Benefit Fee, as applicable, is a material breach of this Agreement and shall be sufficient grounds for revocation of all entitlements associated with the Project.”], 4.3 (“Failure or refusal of [Developers] to . . . pay the Public Benefit Amount . . . shall constitute full and sufficient grounds for the revocation or suspension ok the Conditional Use Permit and all entitlements associated with the Project.”].)
{7623/034/01547493.DOCX}
EXHIBIT EXHIBIT EXHIBIT 99
\ MEW
ire CITY OF MENDOTA
“
ASS °
So
y “Cantaloupe Center Of The World”
December 6, 2024
VIA CERTIFIED MAIL AND E-MAIL:
[email protected]
Odyssey Agricultural Development, LLC Valley Agricultural Holdings, LLC 2222 E. Olympic Blvd. 2151 E. Convention Center Way, Suite 222 Los Angeles, CA 90021 Ontario, CA 91764
Attention: Legal Department Attention: Richard Munkvold Odyssey Agricultural Holdings, LLC Valley Agricultural Holdings, LLC 2222 E. Olympic Blvd. 2151 E. Convention Center Way, Suite 114 Los Angeles, CA 90021 Ontario, CA 91764
Attention: Legal Department Attention: Steven B. Imhoof, Esq.
Weinberg Gonser LLP
10866 Wilshire Blvd., Suite 1650
Los Angeles, CA 90024 Attention: Russell Greenman, Esq.
Re: Notice of Default and Demand for Cure
City of Mendota Development Agreement
To Whom It May Concern:
I am writing in connection with the March 26, 2021, Development Agreement between Odyssey Agricultural Development, LLC (“Developer”), Odyssey Agricultural Holdings, LLC (“OAH”), Valley Agricultural Holdings, LLC (“VA”; collectively with Developer and OAH, the “Developers”), and the City of Mendota (“City”).
Developers are currently in default of the Development Agreement for failing to pay the Public Benefit Fees due to City in the following amounts:
" $150,000 due to the City on May 2, 2024, of which $100,000 was paid on September 16, 2024, and $50,000 remains outstanding.
: $150,000 due to the City on August 2, 2024, of which $150,000 remains outstanding.
. $150,000 due to the City on November 2, 2024, of which $150,000 remains outstanding.
As of the date of this notice, a total of $350,000 is currently past due to the City. (See Development Agreement, §§ 4.2-4.6.)
H/
643 Quince Street Mendota, California $3640
Telephone: (559) 655-3281 Fax: (559) 655-4064 ci.mendota.ca.uis TDD/TTY 866-735-2919 (English) TOD/TTY 866-833-4703 (Spanish) The City of Mendota is an equal opportunity provider and employer HII
Pursuant to Section 8.1, subdivisions (a) and (e), of the Development Agreement, the City demands Developers cure this default by paying the City all outstanding amounts due within forty-six days of the date of this notice. Such deadline to cure Developers’ default expires at 5:00 p.m. on January 21, 2025.
fo Pe jf GCristian Gonzalez
City Manager, City of Mendota
Enclosures: Past-Due 2024 Public Benefit Fee Invoices
CITY OF MENDOTA
“Cantaloupe Center Of The World”
Date: December 6, 2024
Bill To:
Name: ODYSSEY AGRICULTURAL DEVELOPMENT, LLC
Address: 2222 E. OLYMPIC BLVD
LOS ANGELES CA 90021
ATTN: Legal Department
Description Amount Odyssey Development Agreement
Public Contribution Payment Quarter May 2, 2024 $ 50,000.00 Odyssey Development Agreement Public Contribution Payment Quarter August 2, 2024 $ 150,000.00
Odyssey Development Agreement
Public Contribution Payment
Quarter November 2, 2024 $ 150,000.00
Total Amount Due , $ 350,000.00 Due upon receipt Please make payable to City of Mendota. If you have any questions, please contact City Hall at (559) 655-3291. Thank you. 643 Quince Street Viendota, California 93646 Telephone: (659) 655-3291 Fax: (559) 655-4064 ci.mendotd.ca.us TOD/TTY 866-735-2915 {English} TOO/TTY 866-333-4703 (Spanish) The City of Mendota is an equal spportunity provider and employer EXHIBIT EXHIBIT EXHIBIT 1010
ooCantaloupe Cente, Of The World"
NOTICE OF'PI]BLIC HEARING TO REVIEW AND CONSIDER STATUS OX'
DEVELOPMENT AGREEMENT DEFAULT, ENTITLEMENTS, AND TERMINATION
OF DEYELOPMENT AGREEMENT
Government Code $S 65865.1, 65867, 65868
February 4,2025
VIA U.S. MAIL & E-MAIL:
Odyssey Agricultural Development LLC
2222 E. Olympic Blvd.
Los Angeles, CA 90021
Attn: Alex Freedman, President
[email protected]
Odyssey Agricultural Holdings, LLC
2222 E. Olympic Blvd.
Los Angeles, CA 90021
Attn: Legal Department
CITYOF MENDOTA
Valley Agricultural Holdings, LLC
2l5l E. Convention Center Way, Suite 222
Ontario, CA 91764
Attn: Richard Munkvold
Valley Agricultural Holdings, LLC
2l5l E. Convention Center Way, Suite ll4
Ontario, CA 91764
Attn: Steven B. Imhoof
Weinberg Gonser LLP
10866 Wilshire Boulevard, Suite 1650
Los Angeles, CA 90024
Attn: Russell Greenman, Esq.
Re: Review and Action on Development Agreement Default
Odvssev Agricultural Development. LLC. et al.
To Whom It May Concern:
On December 6,2024,the City of Mendota ("City") issued aNotice of Default and Demand for Cure regarding $350,000 in public benefit fees past due to the City under your Development Agreement. The City demanded you cure this default by paying all outstanding amounts due by 5:00 p.m. on January 21,2025. Further, another public benefit fee payment of $150,000 came due on February 2,2025, but went unpaid. As of the date of this letter, you have yet to cure your default and currently owe $500,000 in past due public benefit fees to the City.
On Wednesday, February 19,2025, at 6:30 p.m., the City will host a public hearing (the "Hearing") to determine the extent of your good faith, substantial compliance with the Development Agreement dated March 26,202l,that allows the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portion of 643 0uince $treet Mendota, California 93640
Telephone: (559) 655-3291 Far: (559) 655'4064
TDD/ffY 866-735-2919 (English) TDD/ITY 866-833-4703 ($panish) ci.mgndota.ca.us
The City ol Mendota is an equal opportunity prouider and Bmployer APN 013-030-683T) located at 418 West Belmont Avenue, Mendota, Califomia 93640. The Hearing will be hosted by the Crty's Planning Commission at the City Council Chambers located at725 Riofrio Street, Mendota, California 93640.
This Hearing is scheduled pursuant to Article 8 of the Development Agreement and GovernmentCodesections65865.1,65867,and65868. DuringtheHearing,youwillbepermitted an opportunity to be heard orally or in writing regarding your performance under the Development Agreement and shall be required to affirmatively demonstrate your current compliance with the terms of the Development Agreement. The City has enclosed copies of all staff reports, agenda items, and notices related to your performance under the Development Agreement issued over the past year.
Please contact Cristian Gorzalez, City Manager, by phone at (559) 655-3291or via email at [email protected] if you have any concerns.
V
Celeste Cabrera CMC
CITYOF MENDOTA
ocCantaloupe Center Of The World"
Date: April 4,2024
Due May 2,2024
Please make payable to City of Mendota, lf you have any questions, please contact City Hall at (559) 655-3291 . Thank you.
Name:
Address:
Bill To:
Odyssey
2222 E. Olympic BIvd
Los Angeles, CA 90021
Attn:
Description Amount
Odyssey Development Ag reement
Public Contribution Payment
Quarter February Znd,2024 Payment
Odyssey Development Ag reement
Public Contribution Payment
Quarter May 2nd ,2024 Payment
$ 150,000,00
$ 150,000.00
Total Amount Due $ 300,000.00
643 Ouince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Fresno Line: (559) 266-6456 Far: (559) 655-4064 TDDffTY 866-735-2919 (English) TDD/[TY 866-833-4703 (Spanish) www. cityolmendota. com
The City ol Mendota is an equal opportunity provider and employer CITY of MENDOTA
643 Quince St.
Mendota CA 93640
(55e)6 55-42e8
Customer lnvoice # lnvoice Date Amount Due
ODYOl 000c40701 3 July 2,2024 $ 300,000.00
ODYSSEY
2222 E. OLYMPIC BLVD
LOS ANGELES CA 90021
Attn.:
lnvoice Description PUBLIC CONTRIBUTION
Terms
Rec
Due upon receipt
01 1215
Line Price
150000.00
150000.00 0002
0001 QUARTER AUGUST 2,2024
PAST DUE MAY 2,2024
CITY of MENDOTA
643 Quince SL
Mendota CA 93640
(55e)65542e8
Customer lnvoice # lnvoice Date Amount Due
ODYOl c41002 October 2,2024 $ 1 50,000.00
Bill To
ODYSSEY
2222 E. OLYMPIC BLVD
LOS ANGELES CA 90021
Attn.:
lnvoice Description Regular lnvoice
Terms
Rec
Due upon receipt
01 1215
Price Line
1 50000 00 QUARTER NOVEMBER 2, 2024
PUBLIC CONTRIBUTION FEE ODYSSEY
0001
0 .00
CITY OF MENDOTA
“Cantaloupe Center Of The World”
December 6, 2024
VIA CERTIFIED MAIL AND E-MAIL:
[email protected]
Odyssey Agricultural Development, LLC Valley Agricultural Holdings, LLC 2222 E. Olympic Blvd. 2151 E. Convention Center Way, Suite 222 Los Angeles, CA 90021 Ontario, CA 91764
Attention: Legal Department Attention: Richard Munkvold Odyssey Agricultural Holdings, LLC Valley Agricultural Holdings, LLC 2222 E. Olympic Blvd. 2151 E. Convention Center Way, Suite 114 Los Angeles, CA 90021 Ontario, CA 91764
Attention: Legal Department Attention: Steven B. Imhoof, Esq.
Weinberg Gonser LLP
10866 Wilshire Blvd., Suite 1650
Los Angeles, CA 90024 Attention: Russell Greenman, Esq.
Re: Notice of Default and Demand for Cure
City of Mendota Development Agreement
To Whom It May Concern:
I am writing in connection with the March 26, 2021, Development Agreement between Odyssey Agricultural Development, LLC (“Developer”), Odyssey Agricultural Holdings, LLC (“OAH”), Valley Agricultural Holdings, LLC (“VA”; collectively with Developer and OAH, the “Developers”), and the City of Mendota (“City”),
Developers are currently in default of the Development Agreement for failing to pay the Public Benefit Fees due to City in the following amounts:
. $150,000 due to the City on May 2, 2024, of which $100,000 was paid on September 16, 2024, and $50,000 remains outstanding.
a $150,000 due to the City on August 2, 2024, of which $150,000 remains outstanding.
" $150,000 due to the City on November 2, 2024, of which $150,000 remains outstanding.
As of the date of this notice, a total of $350,000 is currently past due to the City. (See Development Agreement, §§ 4.2-4.6.)
Hil
643 Quince Sireet Mendota, Calitornia S840
Telephone: (559) 655-3291 Fax; (559) 665-4064 ci.mandota.ga.us TOO/TTY 866-735-2919 (English) TOD/TTY 866-839-4703 (Spanish) The City of Mendota is an equal opportunity provider and employer Hf
Pursuant to Section 8.1, subdivisions (a) and (e), of the Development Agreement, the City demands Developers cure this default by paying the City all outstanding amounts due within forty-six days of the date of this notice. Such deadline to cure Developers’ default expires at 5:00 p.m. on January 21, 2025.
Thank you, FZ ———
Cristian Gonzalez City Manager, City of Mendota
Enclosures: Past-Due 2024 Public Benefit Fee Invoices
CITY OF MENDOTA
“Cantaloupe Center Of The World”
Date: December 6, 2024
Bill To:
Name; ODYSSEY AGRICULTURAL DEVELOPMENT, LLC
Address; 2222 E. OLYMPIC BLVD
LOS ANGELES CA 90021
ATTN: Legal Department
Description Amount
Odyssey Development Agreement Public Contribution Payment Quarter May 2, 2024 $ 50,000.00 Odyssey Development Agreement Public Contribution Payment Quarter August 2, 2024 $ 150,000.00
Odyssey Development Agreement
Public Contribution Payment
Quarter November 2, 2024 $ 150,000.00
Total Arnount Due $ 350,000.00
Due upon receipt
Please make payable to City of Mendota. If you have any questions, please contact City Hall at (559) 655-3291. Thank you.
643 Quince Street Mendota, California 93640 Telephone: (559) G55-3291 Fax: (559) 665-4064 ci.mendota.ca.us TOD/TTY 866-735-2919 (English) TOD/TTY 866-833-4708 (Spanish) The City of Mendota is an equal opportunity provider and employer
CITY OF MENDOTA
“Cantaloupe Center Of The World”
Date: January 28, 2025
Bill To:
Name; Odyssey
Address: 2222 E. Olympic Blvd
Los Angeles, CA 90021
Attn: Legal Department
Description Amount
Odyssey Development Agreement
Public Contribution Payment $ 150,000.00
Quarter February 2nd, 2025
Odyssey Development Agreement
Public Contribution Payment $ 50,000.00
Quarter May 2nd, 2024
Odyssey Development Agreement
Public Contribution Payment $ 150,000.00 Quarter August 2nd, 2024
Odyssey Development Agreement
Public Contribution Payment $ 150,000.00
Quarter November 2nd, 2024
Total Amount Due $ 500,000.00
Due February 2, 2025 Please make payable to City of Mendota. If you have any questions, please contact City Hall at (559) 655-3291. Thank you.
643 Quince Street Mendota, California 93640
Telephone: (559) 655-3291 Fax: (559) 655-4064 ci,mendota.ca.us TDD/TTY 866-735-2519 (English) TOD/TTY 866-833-4703 (Spanish) The City of Mendota is an equal opportunity provider and employer Partiat Payment of M ay 2,2024 Bil,t Received on 9/1612024 DgtG y Dtrcripion C Debhg Crudk; Balanm
w Sep 16, 2024 lncoming lrYlre ODYSSEY AGRICULTURAL DEVELOPMENT LL 79r58412
100,000.00
EXHIBIT EXHIBIT EXHIBIT 1111 1
NOTICE OF PUBLIC HEARING
CITY OF MENDOTA
SPECIAL MEETING OF THE PLANNING COMMISSION
NOTICE IS HEREBY GIVEN THAT, on Wednesday, February 19, 2025, at 6:30pm, or as soon thereafter as possible, the Planning Commission of the City of Mendota will hold a public hearing at a special meeting at the Mendota City Council Chambers, 725 Riofrio Street, Mendota, California 93640, to conduct the following business:
1. PUBLIC HEARING TO REVIEW AND CONSIDER STATUS OF DEVELOPEMNT OF
AGREEMENT DEFAULT, ENTITLEMENTS, AND TERMINATION OF
DEVELOPMENT AGREEMENT with ODYSSEY AGRICULTURAL DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, and VALLEY
AGRICULTURAL HOLDINGS, LLC, regarding the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portion of APN 013-030-68ST) located at 418 West Belmont Avenue, Mendota, California 93640.
All interested persons are invited to appear at the time and place specified above to give testimony regarding the proposed action(s) listed above. Written comments may be provided to the City of Mendota at 643 Quince Street, Mendota, California 93640, or [email protected].
Requests for information may be directed to the City Clerk, Celeste Cabrera-Garcia, at (559) 655- 3291 or [email protected].
If you challenge the above matter(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing, or in written correspondence delivered to the Planning Commission of the City of Mendota at, or prior to, the public hearing, or any comments received during the public review period of the associated entitlements.
Posted By: Antonio Pizano, Deputy City Clerk Date/Time: 2/4/2025 by 3:30pm EXHIBIT EXHIBIT EXHIBIT 1121 2
all in the year 20_____. I certify (or declare) under
penalty of perjury that the foregoing is true and
correct.
Dated at Kerman, California
this ___________________________
day of ___________________________, 20________
FIREBAUGH-MENDOTA JOURNAL
(and) THE MENDOTA TIMES
652 S. Madera Ave.
Kerman, CA 93630
Telephone: 559-846-6689
This space is for the County Clerk’s Filing Stamp
PROOF OF PUBLICATION Proof of Publication
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Fresno,
I am a citizen of the United States; I am over the age
of eighteen years, and not a party to or interested in
the above entitled matter. I am the principal clerk of
the Firebaugh Mendota Journal and The Mendota
Times, a newspaper of general circulation, printed
and published weekly in the City of Kerman, County
of Fresno, and which newspaper has been adjudged a
newspaper of general circulation by the Superior Court
of the County of Fresno, State of California, under the date of 1949, Case Number 135831; that the notice,
of which the annexed is a printed copy (set in type
not smaller that nonpareil), has been published in each regular and entire issue of said newspaper and not in
any supplement thereof on the following date, to-wit:
25 5th
February 25
February 5
CITY OF MENDOTA
PUBLIC NOTICE
PLANNING COM. MEETING
NOTICE OF
PUBLIC HEARING
CITY OF MENDOTA
SPECIAL MEETING
OF THE PLANNING
COMMISSION
NOTICE IS HEREBY
GIVEN THAT, on Wednesday, February 19, 2025, at
6:30pm, or as soon thereafter as possible, the Planning Commission of the City of Mendota will hold a
public hearing at a special
meeting at the Mendota
City Council Chambers,
725 Riofrio Street, Mendota, California 93640, to
conduct the following business:
1. PUBLIC HEARING TO REVIEW AND
CONSIDER STATUS
OF DEVELOPEMNT OF
AGREEMENT DEFAULT,
ENTITLEMENTS, AND
TERMINATION OF DEVELOPMENT AGREEMENT with ODYSSEY
AGRICULTURAL DEVELOPMENT, LLC, ODYSSEY
AGRICULTURAL HOLDINGS, LLC, and VALLEY
AGRICULTURAL HOLDINGS, LLC, regarding the
construction and operation
of a cannabis cultivation,
processing, and distribution facility on approximately 36 acres (portion of APN 013-030-68ST) located at 418 West Belmont
Avenue, Mendota, California 93640.
All interested persons
are invited to appear at the
time and place specified
above to give testimony
regarding the proposed
action(s) listed above.
Written comments may be
provided to the City of Mendota at 643 Quince Street,
Mendota, California 93640,
or ccabrera@cityofmendota.com. Requests for information may be directed to the City Clerk, Celeste
Cabrera-Garcia, at (559)
655-3291 or ccabrera@
cityofmendota.com.
If you challenge the
above matter(s) in court,
you may be limited to raising only those issues you
or someone else raised
at the public hearing, or
in written correspondence
delivered to the Planning
Commission of the City of
Mendota at, or prior to, the
public hearing, or any comments received during the
public review period of the
associated entitlements.
0608:j6c
EXHIBIT EXHIBIT EXHIBIT 1121 3
From: Alex Freedman
To: Celeste Cabrera-Garcia
Cc: Cristian Gonzalez; Hunter Castro
Subject: Re: Notice of Public Hearing
Date: Tuesday, February 18, 2025 10:55:07 AM
Hi Cristian,
We will be wiring $175k tomorrow (2/19) and $175k on 3/6 to clear the balance on the May, August and November public benefit fees and $150,000 on 3/26 for the February public benefit fee. Please feel free to provide this email to the Planning Commission as the Developer's submission for their hearing tomorrow. Thank you for your patience. Please let me know if you have any questions.
Thanks,
Alex
--
Alex Freedman
President & CEO | Traditional
(310) 882-9896
[email protected]
https://www.traditional.com/
On Tue, Feb 4, 2025 at 3:46 PM Celeste Cabrera-Garcia <[email protected]> wrote:
Good afternoon Mr. Freedman,
Please see the attached Notice of Public Hearing to Review and Consider Status of Development Agreement Default, Entitlements, and Termination of Development Agreement.
Please contact Cristian Gonzalez, City Manager, by phone at (559) 655-3291 or via email at [email protected] if you have any concerns.
Sincerely,
Celeste Cabrera-Garcia, MPA, CMC
City Clerk | City of Mendota
643 Quince Street, Mendota, CA 93640
Office: (559) 655-3291 | Mobile: (559) 577-7692
Email: [email protected]
EXHIBIT EXHIBIT EXHIBIT 1121 4
CITYOF MENDOTA
ALBERT ESCOBEDO
ALICIA ESCOBEDO
ALEX GARCIA
VERONICA GILL
MOSES MACIAS
JESSICA SANCHEZ
Alternate Commissioner
ooCantaloupe Center Of The World"
AGENDA
MENDOTA PLANNING COMMISSION
Special Planning Commission Meeting
City Council Chambers
725 Riofrio Street
Mendota, California 93640
February 19, 2025
6:30 PM
CRISTIAN GONZALEZ
City Manager
Public Works/Planning Director
JEFFREY O'NEAL
City Planner
The City of Mendota Planning Commission welcomes you to its meeting. Regular Planning Commission meetings are scheduled for the fourth Tuesday every month. Your interest and participation are encouraged and appreciated.
Notice is hereby given that Planning Commissioners may discuss and/or take action on any or all of the items listed on this agenda, Please silence your cell phones. Thank you for your respect and consideration.
Any public writings distributed by the City of Mendota to at least a majority of the Planning Commission regarding any item on this regular meeting agenda will be made available at the front counter at City Hall located at 643 Quince Street Mendota, California 93640, during normal business hours: Monday through Friday from 8am - 5pm. ln compliance with the Americans with Disabilities Act, those requiring special assistance to participate at this meeting please contact the City Clerk at (559) 655-3291 or (559) 577-7692. Notification of at least forty-eight hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to the meeting.
CALL TO ORDER
ROLL CALL
FLAG SALUTE
FINALIZE THE AGENDA
1. Adjustments to Agenda
2. Adoption of final Agenda
SWEARING IN
City Clerk Cabrera-Garcia to swear in Planning Commissioners Alicia Escobedo, Veronica Gill, Moses Macias, and Jessica Sanchez.
REORGANIZATION OF PLANNING COMMISSION
City Clerk Cabrera-Garcia to conduct the Planning Commission reorganization proceedings and accept nominations for the following offices:
a) Chairperson
b) Vice-Chairperson
Planning Commission Agenda February 19, 2025
1 1
1 643 Quince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Far: (559) 655-4064
TDD/fnf 866-735-2919 (English) TDD/ffY 866-833-4703 (Spanish) ci.mendota.ca.us
The City ol Mendota is an equal opportunity prouider and cmployer 1 PUBLIC COMMENT
At this time, members of the public may address the Planning Commission on only matters not listed on the agenda involving matters within the jurisdiction of the Planning Commission. Please complete a "request to speak" form and limit your comments to FIVE (5) MINUTES. Please give the completed form to the City Clerk prior to the start of the meeting. All speakers shall observe proper decorum. The Mendota Municipal Code prohibits the use of boisterous, slanderous, or profane language. All speakers must step to the podium and state their names and addresses for the record. Please watch the time.
PUBLIC HEARING
Planning Commission public hearing to review and consider status of Development Agreement default, entitlements, and termination of Development Agreement with Odyssey Agricultural Development, LLC, Odyssey Agricultural Holdings, LLC, and Valley Agricultural Holdings, LLC.
a. Receive repoft from Assistant City Attomey Castro
b. lnquiies from Planning Commission to staff
c. Chairperson opens the public heaing
d. Once all comment has been received, the Chairperson c/oses the public hearing
e. Planning Commission provides input and takes action as appropriate
ADJOURNMENT
CERTIFICATION OF POSTING
l, Celeste Cabrera-Garcia, City Clerk of the City of Mendota, do hereby declare that the foregoing agenda for the City of Mendota Planning Commission Special Meeting of Wednesday, February 19, 2025, was posted on the outside bulletin board located at City Hall, 643 Quince Street, Mendota, California 93640, and at the City Council Chambers located at725 Riofrio Street,
14,2025, by 5:00 p.m.
, or Frid ay, February
Celeste re Clerk
Planning Commission Agenda 2 February 19, 2025
EXHIBIT EXHIBIT EXHIBIT 1121 5
o.Cantaloupe Center Of The World"
NOTICE OF PUBLIC HEARING TO REVIEW AND CONSIDER STATUS OF
DEVELOPMENT AGREEMENT DEFAULT, ENTITLEMENTS, AND TERMINATION
OF DEVELOPMENT AGREEMENT
NOTICE OF PUBLIC HEARING: ANNUAL REVIEW OF PERFORMANCE UNDER
DEVELOPMENT AGREEMENT
GOVERNMENT CODE SS 65865.1, 65867,65868
April 1,2025
VIA IJ.S. MAIL & E-MAIL:
Odyssey Agricultural Development LLC
2222 E. Olympic Blvd.
Los Angeles, CA 90021
Attn: Alex Freedman, President
al efl@ tradi ti o nal . c o m
Odyssey Agricultural Holdings, LLC
2222 E. Olympic Blvd.
Los Angeles, CA 9002I
Attn: Legal Department
CITYOF MENDOTA
Valley Agricultural Holdings, LLC
2l5l E. Convention Center Way, Suite 222
Ontario, CA 91764
Attn: Richard Munkvold
Valley Agricultural Holdings, LLC
2l5l E. Convention Center Way, Suite Il4
Ontario, CA 91764
Attn: Steven B. Imhoof
Weinberg Gonser LLP
10866 Wilshire Boulevard, Suite 1650
Los Angeles, CA 90024
Attn: Russell Greenman, Esq.
Re Review and Action on Planning Commission's Recommendation Regarding Development Agreement Default
Annual Review Hearing
Odvssey Aericultural Development. LLC. et aI.
To Whom It May Concern:
The City of Mendota ("City") will be hosting two public hearings (collectively, the "Hearings") on Tuesday, April 1512025, at 6:00 p.m., or as soon thereafter as possible, to review and determine the extent of ODYSSEY AGRICULTURAL DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, and VALLEY AGRICULTURAL HOLDINGS, LLC,S (collectively, the 'oDevelopers") good faith, substantial compliance with the Development Agreement dated March 26, 2021, that allows the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portion of APN 013- 643 Ouince Street Mendota, Calilornia 93640
Telephone: (559) 655-3291 Fax: (559) 655-4064
TDD/[TY 866-735-2919 (English) TDDffTY 866-833-4703 (Spanish) cityolmendota.com
The City ol Mendota is an equal opportunity prouider and employer 030-683T) located at 418 West Belmont Avenue, Mendota, Califomia 93640. The Hearings will be hosted by the City Council at the City Council chambers located at 725 Riofrio Street, Mendota, California 93640.
A true and correct copy of the public notice regarding the Hearings that will be published, posted, and distributed, to the extent required by law, is below:
NOTICE IS HEREBY GIVEN THAT, on April 15,2025, at 6:00
p.m., or as soon thereafter as possible, the City Council of the City of Mendota will hold a public hearing at a regular meeting at the Mendota City Council Chambers, 725 Riofrio Street, Mendota, California 93640, to conduct the following business:
PI.]BLIC HEARING TO REVIEW AND CONSIDER
STATIJS OF DEVELOPMENT AGREEMENT DEFAULT.
DEVELOPMENT AGREEMENT with ODYSSEY
AGRICTJT,TURAL DEVELOPMENT, LLC, ODYSSEY
AGRICIJTTIJRAL HOLDINGS, LLC, and VALLEY
AGRICIJL,TURAL HOLDINGS, LLC, regarding the
construction and operation of a cannabis cultivation,
processing, and distribution facility on approximately 36 acres (portion of APN 013-030-685T) located at 418 West Belmont Avenue, Mendota, California 93640. At a special meeting on February 19, 2025, the Planning Commission
voted to recommend the City Council consider termination of the development agreement.
FURTHER NOTICE IS HEREBY GIYEN THAT, on April 15,
2025, at 6:00 p.m., or as soon thereafter as possible, the City Council of the City of Mendota will hold a public hearing at a regular meeting at the Mendota City Council Chambers,72l Riofrio Street, Mendota, California 93640, to conduct the following business:
PERFORMANCE DEVELOPMENT
AGREEMENT with ODYSSEY AGRICIJT,TIJRAL
DEVELOPMENT, LLC, ODYSSEY AGRICUT,TTJRAL
HOLDINGS, LLC, and VALLEY AGzuCURURAL
HOLDINGS ,LLc,regarding the construction and operation
of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portion of APN 013-030- 685T) located at 418 West Belmont Avenue, Mendota
California 93640.
1 2 F
All interested persons are invited to appear at the time and place specified above to give testimony regarding the proposed action(s) listed above. Written comments may be provided to the City of Mendota at 643 Quince Street, Mendota, California 93640, or [email protected]. Requests for information may be directed to the City Clerk, Celeste Cabrera-Garcia, at (559) 655- 329 I or [email protected].
If you challenge the above matter(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing, or in written correspondence delivered to the City Council of the City of Mendota at, or prior to, the public hearing, or any comments received during the public review period of the associated entitlements.
(Public Notice regarding Hearitrgs, emphasis in original.) The Hearing identified as Number 1 above concerns the City Council's consideration and action, if any, on the Planning Commission's February 19, 2025, recommendation that the City terminate the Development Agreement. This matter commenced with the City's December 6,2024,Notice of Default and Demand for Cure regarding $350,000 in past due public benefit fees. Although the Developers were in formal default for nonpayment at the time of the Planning Commission's recommendation on February 19,2025, those outstanding amounts were received by the City via wire installments of $175,000 on February 19,2025, $87,500 on March 7,2025, and $87,500 on March 10,2025, curing the Developers' formal default status.
The Hearing identified as Number 2 above concems an annual review of the Developers' performance and compliance with the terms of the Development Agreement, pursuant to Article 8 of the Development Agreement and Government Code sections 65865.1 ,65867, and 65868. Please take note that, as of the date of this letter, the Developers are behind on their public benefit fee installment obligations in the amount of $ 1 50,000 which came due on February 2,2025, but went unpaid. Further, public participants at the February 19,2025, public hearing before the Planning Commission asserted the Developers have failed to comply with the Development Agreement's requirement that Developers and their agents maintain workers' compensation insurance in connection with all activities onsite. (Development Agreement, $ 6.1, subd. (c).) During the Hearings, you will be permiued an opportunity to be heard orally or in writing regarding your performance under the Development Agreement and shall be required to affirmatively demonstrate your current compliance with the Development Agreement's requirements. The City has enclosed copies of all staff reports, agenda items, and notices related to your performance under the Development Agreement issued over the past year.
Please contact Cristian Gorualez,City Manager, by phone at (559) 655-3291or via email at [email protected] if you have any concerns.
Very truly
Cabrera-Garcia,
EXHIBIT EXHIBIT EXHIBIT 1121 6
t
NOTICE OF PUBLIC HEARINGS
CITY OFMENDOTA
REGULAR MEETING OF THE CITY COUNCIL
NOTICE IS HEREBY GIYEN THAT, on April 1512025, at 6:00 p.m., or as soon thereafter as possible, the City Council of the City of Mendota will hold a public hearing at a regular meeting at the Mendota City Council Chambers,725 Riofrio Street, Mendota, California 93640, to conduct the following business:
1. PUBLIC HEARING TO REVIEW AND CONSIDER STIIIUS OF DEVELOPMENT AGREEMENT Dtr,F'AIIIT trNTITI ,tr, . AND TERMINATION OF with ODYS sEY AGRICURIJRAL DEVELOPMENI
LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, and VALLEY
AGRICULTURAL HOLDINGS, LLC, regarding the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portionofAPN 013-030-685T) located at4l8 WestBelmontAvenue, Mendota, Califomia 93640. At a special meeting on February 19,2025, the Planning Commission voted to recommend the City Council consider termination of the development agreement.
FURTHER NOTICE IS HEREBY GMN THAT, on April 15,2025, at 6:00 p.m., or as soon thereafter as possible, the City Council of the City of Mendota will hold a public hearing at a regular meeting at the Mendota City Council Chambers,72l Riofrio Street, Mendota, California 93640, to conduct the following business:
2. PUBLIC HEARING: ANNUAL REVIEW OF PERFORMANCE UNDER
With ODYS SEY AGRICIJT,TURAL DEVELOPMENI
LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, and VALLEY
AGRICULTURAL HOLDINGS, LLC, regarding the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately 36 acres (portion of APN 0 1 3 -030-685T) located at 4 I 8 West Belmont Avenue, Mendota, California 93640.
All interested persons are invited to appear at the time and place specified above to give testimony regarding the proposed action(s) listed above. Written comments may be provided to the City of Mendota at 643 Quince Street, Mendota, Califomia 93640, or ccabreratlzJcityofmenclota.com.
Requests for information may be directed to the City Clerk, Celeste Cabrera-Garcia, at (559) 655- 329 I or [email protected].
If you challenge the above matter(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing, or in written correspondence delivered to the City Council of the City of Mendota at, or prior to, the public hearing, or any comments received during the public review period of the associated entitlements.
Po
o 1^ L€ q,bl
EXHIBIT EXHIBIT EXHIBIT 1121 7
all in the year 20_____. I certify (or declare) under
penalty of perjury that the foregoing is true and
correct.
Dated at Kerman, California
this ___________________________
day of ___________________________, 20________
FIREBAUGH-MENDOTA JOURNAL
(and) THE MENDOTA TIMES
652 S. Madera Ave.
Kerman, CA 93630
Telephone: 559-846-6689
This space is for the County Clerk’s Filing Stamp
PROOF OF PUBLICATION Proof of Publication
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Fresno,
I am a citizen of the United States; I am over the age
of eighteen years, and not a party to or interested in
the above entitled matter. I am the principal clerk of
the Firebaugh Mendota Journal and The Mendota
Times, a newspaper of general circulation, printed
and published weekly in the City of Kerman, County
of Fresno, and which newspaper has been adjudged a
newspaper of general circulation by the Superior Court
of the County of Fresno, State of California, under the date of 1949, Case Number 135831; that the notice,
of which the annexed is a printed copy (set in type
not smaller that nonpareil), has been published in each regular and entire issue of said newspaper and not in
any supplement thereof on the following date, to-wit:
25 2nd
April 25
April 2
CITY OF MENDOTA
725 RIOFRIO ST. DEFAULT
NOTICE OF PUBLIC
HEARINGS
CITY OF MENDOTA
REGULAR MEETING OF
THE CITY COUNCIL
NOTICE IS HEREBY
GIVEN THAT, on April 15,
2025, at 6:00 p.m., or as
soon thereafter as possible, the City Council of the
City of Mendota will hold a
public hearing at a regular
meeting at the Mendota
City Council Chambers,
725 Riofrio Street, Mendota, California 93640, to
conduct the following business:
1. PUBLIC HEARING
TO REVIEW AND CONSIDER STATUS OF DEVELOPMENT AGREEMENT DEFAULT,
ENTITLEMENTS, AND
TERMINATION OF DEVELOPMENT AGREEMENT with ODYSSEY
AGRICULTURAL DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, and VALLEY AGRICULTURAL HOLDINGS,
LLC, regarding the construction and operation
of a cannabis cultivation,
processing, and distribution facility on approximately 36 acres (portion of APN 013-030-68ST)
located at 418 West Belmont Avenue, Mendota,
California 93640. At a
special meeting on February 19, 2025, the Planning Commission voted to recommend the City
Council consider termination of the development agreement.
FURTHER NOTICE IS
HEREBY GIVEN THAT,
on April 15, 2025, at 6:00
p.m., or as soon thereafter
as possible, the City Council of the City of Mendota
will hold a public hearing
at a regular meeting at
the Mendota City Council
Chambers, 725 Riofrio
Street, Mendota, California 93640, to conduct the
following business:
2. PUBLIC HEARING: ANNUAL REVIEW
OF PERFORMANCE
UNDER DEVELOPMENT AGREEMENT
with ODYSSEY AGRICULTURAL DEVELOPMENT, LLC, ODYSSEY AGRICULTURAL HOLDINGS, LLC, and
VALLEY AGRICULTURAL HOLDINGS, LLC, regarding the construction and operation of a cannabis cultivation, processing, and distribution facility on approximately
36 acres (portion of APN
013-030-68ST) located
at 418 West Belmont
Avenue, Mendota, California 93640.
All interested persons
are invited to appear at the
time and place specified
above to give testimony
regarding the proposed
PG 1
all in the year 20_____. I certify (or declare) under
penalty of perjury that the foregoing is true and
correct.
Dated at Kerman, California
this ___________________________
day of ___________________________, 20________
FIREBAUGH-MENDOTA JOURNAL
(and) THE MENDOTA TIMES
652 S. Madera Ave.
Kerman, CA 93630
Telephone: 559-846-6689
This space is for the County Clerk’s Filing Stamp
PROOF OF PUBLICATION Proof of Publication
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Fresno,
I am a citizen of the United States; I am over the age
of eighteen years, and not a party to or interested in
the above entitled matter. I am the principal clerk of
the Firebaugh Mendota Journal and The Mendota
Times, a newspaper of general circulation, printed
and published weekly in the City of Kerman, County
of Fresno, and which newspaper has been adjudged a
newspaper of general circulation by the Superior Court
of the County of Fresno, State of California, under the date of 1949, Case Number 135831; that the notice,
of which the annexed is a printed copy (set in type
not smaller that nonpareil), has been published in each regular and entire issue of said newspaper and not in
any supplement thereof on the following date, to-wit:
25 2nd
April 25
April 2
CITY OF MENDOTA
725 RIOFRIO ST. DEFAULT
action(s) listed above. Written comments may be provided to the City of Mendota at 643 Quince Street, Mendota, California 93640,
or ccabrera@cityofmendota.com. Requests for information may be directed to the City Clerk, Celeste
Cabrera-Garcia, at (559)
655-3291 or ccabrera@
cityofmendota.com.
If you challenge the
above matter(s) in court,
you may be limited to raising only those issues you
or someone else raised
at the public hearing, or
in written correspondence
delivered to the City Council of the City of Mendota
at, or prior to, the public
hearing, or any comments
received during the public
review period of the associated entitlements.
1407:114c
PG 2
Animal Control
Monthly Log
March 2025
ADDRESS TYPE DATE BREED/DESCRIPTION SEX OWNER IMPOUND Y/N DOG DISPOSITION CASE DISPOSITION OFFENSE FINE REASON OFFICER TUFT/DERRICK AVE ANIMAL COMPLAINT 3/4/2025 CAT UNK NONE NO DEAD CAT NECESSARY ACTION TAKEN 0 $0.00 DEAD CAT ACOSTA 1000 AIRPORT BLVD LOST & FOUND 3/4/2025 CHIUAHA UNK NO REALSE ANIMAL NECESSARY ACTION TAKEN 1 $0.00 LOST & FOUND ACOSTA CASTRO/GONZALEZ ST ANIMAL COMPLAINT 3/6/2025 BOXER UNK NO AT LARGE CITATION 2 $100.00 AT LARGE ACOSTA 901 AIRPORT BLVD ANIMAL COMPLAINT 3/6/2025 4 LARGE DOGS UNK ON AT LARGE NECESSARY ACTION TAKEN 8 $0.00 AT LARGE ACOSTA 1000 AIRPORT BLVD LOST & FOUND 3/13/2025 1 CHIA/MIX UNK YES SURRENDERD NECESSARY ACTION TAKEN 1 $0.00 SURRENDERD ACOSTA 1100 2ND ST ANIMAL COMPLAINT 3/14/2025 1 CHIA/MIX UNK NONE YES DEAD DOG NECESSARY ACTION TAKEN 0 $0.00 DEAD DOG ACOSTA 419 L ST ANIMAL COMPLAINT 3/14/2025 DOBERMAN UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 2 $0.00 AT LARGE ACOSTA 1100 2ND ST ANIMAL COMPLAINT 3/14/2025 GERMAN SHEPARD UNK NONE YES DEAD DOG NECESSARY ACTION TAKEN 0 $0.00 DEAD DOG ACOSTA 691 LOZANO ST ANIMAL COMPLAINT 3/16/2025 PITBULL/MIX UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 409 MENDOZA CT ANIMAL COMPLAINT 3/18/2025 WEENIER/MIX UNK NONE YES AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA DERRICK/BELMONT ANIMAL COMPLAINT 3/18/2025 GERMAN SHEPARD UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA QUINCE/10TH ANIMAL COMPLAINT 3/18/2025 CHOW UNK NONE YES DEAD DOG NECESSARY ACTION TAKEN 0 $0.00 DEAD DOG ACOSTA PUCHEU/BELMONT ANIMAL COMPLAINT 3/19/2025 GERMAN SHEPARD UNK NO AT LARGE NECESSARY ACTION TAKEN 2 $0.00 AT LARGE ACOSTA 1648 5TH ST ANIMAL COMPLAINT 3/19/2025 DEAD CAT UNK NONE YES DEAD CAT NECESSARY ACTION TAKEN 0 $0.00 DEAD CAT ACOSTA 561 TULE ST ANIMAL COMPLAINT 3/20/2025 2 HUSKIES UNK NONE YES AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA OLLER/11 TH ST ANIMAL COMPLAINT 3/20/2025 1 CHIA/MIX UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 350 SORNSEN AVE ANIMAL COMPLAINT 3/21/2025 LAB UNK NO AT LARGE WARNING 1 $0.00 AT LARGE ACOSTA 902 RIOFRIO/JENNINGS ST ANIMAL COMPLAINT 3/21/2025 CHIUAHA UNK NONE YES AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 1000 AIRPORT BLVD LOST & FOUND 3/21/2025 CHIUAHA UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 0 $0.00 AT LARGE ACOSTA 819 STAMOULES ST ANIMAL COMPLAINT 3/24/2025 DEAD CAT UNK NONE YES DEAD CAT NECESSARY ACTION TAKEN 0 $0.00 DEAD CAT ACOSTA 1055 QUINCE ST ANIMAL COMPLAINT 3/24/2025 DEAD CAT UNK NONE YES DEAD CAT NECESSARY ACTION TAKEN 0 $0.00 DEAD CAT ACOSTA 212 LUA AVE ANIMAL COMPLAINT 3/24/2025 2 PUPIES UNK NONE YES AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 1258 BELMONT AVE ANIMAL COMPLAINT 3/25/2025 1 PITBULL UNK NONE YES AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 1225 OLLER ST ANIMAL COMPLAINT 3/25/2025 1 PIT/MIX UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 7TH/STAMOULES ANIMAL COMPLAINT 3/26/2025 1 LAB UNK NONE NO AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 683 LOZANO ANIMAL COMPLAINT 3/26/2025 1 POODLE/YORKI UNK YES AT LARGE CITATION 2 $260.00 AT LARGE ACOSTA DIVISADERO/I ST LOST & FOUND 3/27/2025 2 CHIUAHA UNK NONE YES AT LARGE NECESSARY ACTION TAKEN 1 $0.00 AT LARGE ACOSTA 273 MARIE ST ANIMAL COMPLAINT 3/27/2025 LAB UNK NO AT LARGE WARNING 1 $0.00 AT LARGE ACOSTA 685 LOZANO ST LOST & FOUND 3/27/2025 SHITSU/MIX UNK NO AT LARGE NECESSARY ACTION TAKEN 2 $0.00 RETURNED ACOSTA 285 I ST ANIMAL COMPLAINT 3/27/2025 DEAD CAT UNK NONE YES DEAD CAT NECESSARY ACTION TAKEN 0 $0.00 DEAD CAT ACOSTA RESCUED: 3 TOTAL: $200.00 $360.00
SLEEP: 14
RETURNED TO OWNER: 6
AT DOG POUND: 19
Code Enforcement
Monthly Log
March 2025
ADDRESS TYPE OF CASE 1ST NOTICE DEADLINE STATUS FINE AMOUNT OFFICER 4TH/L ST CHECK WELFARE 3/1/2025 N/A TURNED OVER TO EMS $0.00 ACOSTA 1000 AIRPORT LOBBY TRAFIC 3/3/2025 N/A NECESSARY ACTION TAKEN $0.00 ACOSTA 7TH/TULE MUNICODE VIOLATION 3/3/2025 N/A WARNING $0.00 ACOSTA STAMOULES/8TH VEHICLE CHECK 3/3/2025 N/A WARNING $0.00 ACOSTA 7TH/LOLITA VEHICLE CHECK 3/4/2025 N/A CITATION $275.00 ACOSTA 690 OLLER ST VEHICLE CHECK 3/4/2025 N/A WARNING $0.00 ACOSTA BLACK/SORENSEN ST VEHICLE CHECK 3/5/2025 N/A TAGGED $0.00 ACOSTA NAPLES/2ND ST VEHICLE CHECK 3/6/2025 N/A CITATION $90.00 ACOSTA NAPLES/2ND ST VEHICLE CHECK 3/7/2025 N/A NECESSARY ACTION TAKEN $0.00 ACOSTA 690 OLLER ST VEHICLE CHECK 3/9/2025 N/A CITATION $275.00 ACOSTA 690 OLLER ST VEHICLE CHECK 3/9/2025 N/A WARNING $0.00 ACOSTA 1267 OLLER ST VEHICLE CHECK 3/10/2025 N/A CITATION $275.00 ACOSTA 617 GARCIA ST VEHICLE CHECK 3/10/2025 N/A CHECKS OK $0.00 ACOSTA MARIE/9TH ST VEHICLE CHECK 3/14/2025 N/A WARNING $0.00 ACOSTA 1000 AIRPORT LOBBY TRAFIC 3/14/2025 N/A NECESSARY ACTION TAKEN $0.00 ACOSTA 800 GARCIA ST VEHICLE CHECK 3/16/2025 N/A CHECKS OK $0.00 ACOSTA 690 OLLER ST VEHICLE CHECK 3/16/2025 N/A CITATION $275.00 ACOSTA 690 OLLER ST VEHICLE CHECK 3/16/2025 N/A WARNING $0.00 ACOSTA 700 DERRICK AVE VEHICLE CHECK 3/16/2025 N/A CHECKS OK $0.00 ACOSTA 609 4TH ST VEHICLE NUISANCE 3/19/2025 N/A NECESSARY ACTION TAKEN $0.00 ACOSTA BASS/2ND ST MUNICODE VIOLATION 3/19/2025 N/A WARNING $0.00 ACOSTA 736 TULE ST MUNICODE VIOLATION 3/20/2025 N/A WARNING $0.00 ACOSTA NAPLES/2ND ST VEHICLE CHECK 3/20/2025 N/A CITATION $50.00 ACOSTA 1816 5TH ST VEHICLE NUISANCE 3/20/2025 N/A CHECKS OK $0.00 ACOSTA 700 DERRICK AVE MUNICODE VIOLATION 3/20/2025 N/A WARNING $0.00 ACOSTA I ST/J ST VEHICLE CHECK 3/20/2025 N/A CITATION $40.00 ACOSTA 1096 PUCHEU ST VEHICLE NUISANCE 3/21/2025 N/A CITATION $40.00 ACOSTA BASS/2ND ST VEHICLE CHECK 3/22/2025 N/A TAGGED $0.00 ACOSTA NAPLES/2ND ST VEHICLE CHECK 3/24/2025 N/A TAGGED $0.00 ACOSTA 573 TULE ST MUNICODE VIOLATION 3/25/2025 N/A WARNING $0.00 ACOSTA 1000 AIRPORT LOBBY TRAFIC 3/27/2025 N/A CITATION $250.00 ACOSTA 121 BARBOZA VEHICLE CHECK 3/27/2025 N/A WARNING $0.00 ACOSTA 1766 9TH ST VEHICLE CHECK 3/27/2025 N/A CITATION $50.00 ACOSTA TOTAL: $1,620.00
MENDOTA POLICE DEPARTMENT
MARCH 2025
CASE# ADDRESS RPT DATE DAYS ARREST CRIME TYPE CHARGES
250000485.1 497 OLLER ST 3/1/2025 Sat YES RESISTING PC 148A1 250000486.1 223 LUA AV 3/1/2025 Sat NO REPOSSESSION
250000487.1 BELMONT AV & DERRICK AV 3/1/2025 Sat NO KIDNAPPING PC 207, PC 236 250000488.1 225 MARIE ST 3/1/2025 Sat NO INCIDENT REPORT 250000489.1 9TH ST 7 PUCHEU ST 3/1/2025 Sat NO FIELD INTERVIEW 250000492.1 997 QUINCE ST 3/1/2025 Sat NO MENTALLY UNSTABLE WI 5150 250000493.1 5TH ST & OLLER ST 3/1/2025 Sat YES DUI ARREST VC 23152 250000494.1 543 STAMOULES ST 3/2/2025 Sun NO INCIDENT REPORT 250000495.1 730 STAMOULES ST 3/2/2025 Sun NO FOUND PROPERTY 250000496.1 638 N JUANITA ST 3/2/2025 Sun NO INCIDENT REPORT 250000497.1 9TH ST & MARIE ST 3/3/2025 Mon YES WARRANT ARREST PC 978.5 250000499.1 7TH ST & STAMOULES ST 3/3/2025 Mon YES OPEN CONTAINER BP 25620 250000502.1 BELMONT AV & PUCHEU ST 3/3/2025 Mon NO FIELD INTERVIEW 250000503.1 500 N KATE ST 3/3/2025 Mon YES NARCOTICS VIOLATION HS 11364 250000506.1 1883 7TH ST 3/4/2025 Tue YES PUBLIC INTOXICATION PC 647F 250000508.1 10TH ST & PUCHEU ST 3/4/2025 Tue NO FIELD INTERVIEW 250000509.1 695 LOZANO ST 3/4/2025 Tue NO OTHER AGENCY ASSIST 250000512.1 350 SORENSEN AV 3/4/2025 Tue NO VANDALISM PC 594 250000514.1 319 L ST 3/4/2025 Tue NO INCIDENT REPORT
250000515.1 638 JUANITA ST 3/5/2025 Wed YES WARRANT ARREST PC 978.5 250000516.1 550 DERRICK AV #20 3/6/2025 Thu NO INCIDENT REPORT 250000518.1 121 RAMIREZ AV 3/6/2025 Thu NO SIMPLE ASSAULT PC 242 250000520.1 202 I ST #25 3/7/2025 Fri NO RUNAWAY JUVENILE 250000521.1 1000 AIRPORT BLVD 3/7/2025 Fri NO INCIDENT REPORT 250000522.1 200 DERRICK AV 3/7/2025 Fri NO INCIDENT REPORT 250000524.1 350 SORENSEN AV 3/7/2025 Fri NO VANDALISM PC 594 250000526.1 30 GURROLA ST 3/8/2025 Sat YES GRAND THEFT AUTO VC 10851, VC 2800.2A 250000527.1 51 VERA CIR 3/8/2025 Sat NO VANDALISM PC 594 250000528.1 GONZALEZ ST & VERA CIR 3/8/2025 Sat YES ATTEMPT CARJACK PC 664 / 215 250000529.1 517 J ST 3/8/2025 Sat YES RESISTING PC 148A1 250000530.1 1417 3RD ST 3/8/2025 Sat YES SIMPLE ASSAULT PC 242 250000531.1 867 OLLER ST 3/8/2025 Sat YES NARCOTICS VIOLATION HS 11364 250000532.1 1076 6TH ST #B 3/9/2025 Sun NO VANDALISM PC 594B1 250000533.1 1266 7TH ST #8 3/9/2025 Sun NO GRAND THEFT AUTO VC 10851, VC 2800.2A 250000534.1 1000 AIRPORT BLVD 3/9/2025 Sun NO LOST PROPERTY 250000535.1 2ND ST & BASS AV 3/9/2025 Sun YES DUI ARREST VC 23152 250000536.1 1074 PUCHEU ST 3/9/2025 Sun NO INCIDENT REPORT DV REL 250000537.1 7TH ST & LOLITA ST 3/9/2025 Sun NO ANIMAL COMPLAINT 250000538.1 1648 10TH ST 3/9/2025 Sun YES REPOSSESSION
250000539.1 8TH ST & PUCHEU ST 3/10/2025 Mon NO FIELD INTERVIEW 250000540.1 901 AIRPORT BLVD 3/10/2025 Mon YES WARRANT ARREST PC 978.5 250000541.1 617 GARCIA ST 3/10/2025 Mon YES WARRANT ARREST PC 978.5 250000542.1 520 DIVISADERO ST 3/10/2025 Mon NO VANDALISM PC 594 250000544.1 457 DERRICK AV 3/10/2025 Mon NO COMMERCIAL BURGLARY PC 459 250000548.1 1840 7TH ST 3/10/2025 Mon NO FIELD INTERVIEW 250000551.1 BLANCO ST & LOZANO ST 3/11/2025 Tue YES GRAND THEFT AUTO VC 10851, PC 496D, PC 12022.1 250000552.1 9TH ST & MARIE ST 3/11/2025 Tue YES PUBLIC INTOXICATION PC 647F 250000556.1 7TH ST & STAMOULES ST 3/12/2025 Wed YES WARRANT ARREST PC 978.5 250000557.1 190 TUFT ST 3/12/2025 Wed NO INCIDENT REPORT 250000558.1 631 JUANITA ST 3/12/2025 Wed NO FIELD INTERVIEW 250000559.1 1000 AIRPORT BLVD 3/12/2025 Wed YES SEX OFFENSE PC 288, PC 647.6
MENDOTA POLICE DEPARTMENT
MARCH 2025
CASE# ADDRESS RPT DATE DAYS ARREST CRIME TYPE CHARGES
250000560.1 800 GARCIA ST 3/12/2025 Wed NO REPOSSESSION 250000561.1 629 DELA CRUZ ST 3/12/2025 Wed NO FIELD INTERVIEW 250000563.1 4TH ST & PUCHEU ST 3/13/2025 Thu NO HIT & RUN VC 20002 250000569.1 1258 BELMONT AV 3/13/2025 Thu NO INCIDENT REPORT 250000575.1 323 RIOS ST 3/13/2025 Thu NO VEHICLE BURGLARY PC 459 250000579.1 1000 AIRPORT BLVD 3/13/2025 Thu NO INCIDENT REPORT 250000583.1 684 NAPLE ST 3/13/2025 Thu YES PUBLIC INTOXICATION PC 647F 250000584.1 DERRICK AV & SMOOT AV 3/13/2025 Thu YES WARRANT ARREST PC 978.5 250000585.1 180 HWY & BELMONT AV 3/13/2025 Thu NO GRAND THEFT PC 487 250000586.1 867 OLLER ST 3/14/2025 Fri NO FIELD INTERVIEW 250000587.1 666 NAPLES ST 3/14/2025 Fri YES PUBLIC INTOXICATION PC 647F 250000588.1 918 OLLER ST 3/15/2025 Sat NO FIELD INTERVIEW 250000590.1 585 J ST 3/15/2025 Sat NO MISSING PERSON
250000593.1 523 CANTU ST 3/16/2025 Sun NO INCIDENT REPORT 250000594.1 901 MARIE ST 3/16/2025 Sun YES NARCOTICS VIOLATION HS 11364, HS 11377 250000597.1 1000 AIRPORT BLVD 3/16/2025 Sun NO CANCELLED 250000598.1 10TH ST & OLLER ST 3/17/2025 Mon YES DUI ARREST VC 23152 250000599.1 1000 AIRPORT BLVD 3/17/2025 Mon NO TAMPERING VC 10852 250000600.1 BARBOZA ST & PEREZ ST 3/17/2025 Mon YES OPEN CONTAINER BP 25620 250000601.1 119 BARBOZA ST 3/17/2025 Mon NO INCIDENT REPORT 250000602.1 5TH ST & OLLER ST 3/17/2025 Mon YES OPEN CONTAINER BP 25620 250000603.1 6TH ST & OLLER ST 3/17/2025 Mon NO ARSON PC 451 250000604.1 1891 8TH ST 3/17/2025 Mon NO SIMPLE ASSAULT PC 242 250000605.1 1840 7TH ST 3/17/2025 Mon YES NARCOTICS VIOLATION HS 11377 250000606.1 8TH ST & NAPLES ST 3/17/2025 Mon YES PUBLIC INTOXICATION PC 647F 250000607.1 840 S KATE ST 3/18/2025 Tue NO GRAND THEFT AUTO VC 10851 250000609.1 1161 OLLER ST 3/18/2025 Tue NO INCIDENT REPORT 250000611.1 114 BARBOZA ST 3/18/2025 Tue NO TRAFFIC COLLISION 250000613.1 9TH ST & MARIE ST 3/18/2025 Tue YES SUSPENDED LICENSE VC 14601 250000614.1 221 LUA AV 3/18/2025 Tue NO FIELD INTERVIEW 250000617.1 617 GARCIA ST 3/19/2025 Wed YES PAROLE VIOLATION PC 3056, PC 166A4 250000618.1 1258 BELMONT AV 3/19/2025 Wed NO INCIDENT REPORT 250000623.1 350 SORENSEN AV 3/19/2025 Wed NO VANDALISM PC 594 250000624.1 7TH ST & QUINCE ST 3/19/2025 Wed NO FIELD INTERVIEW 250000625.1 1000 AIRPORT BLVD 3/20/2025 Thu NO RO VIOLATION PC 166A4 250000626.1 1258 BELMONT AV 3/20/2025 Thu YES WEAPONS POSSESSION (KNIFE) PC 626.10A1 250000628.1 791 LOLITA ST 3/20/2025 Thu YES PUBLIC INTOXICATION PC 647F 250000629.1 691 INEZ ST 3/21/2025 Fri NO VEHICLE BURGLARY PC 459 250000633.1 1000 AIRPORT BLVD 3/21/2025 Fri NO ANIMAL COMPLAINT 250000634.1 8TH ST & STAMOULES ST 3/21/2025 Fri NO FIELD INTERVIEW 250000636.1 818 QUINCE ST 3/22/2025 Sat NO COMMERCIAL BURGLARY PC 459 250000637.1 180 FWY & SAN BENITO AV 3/22/2025 Sat NO FIELD INTERVIEW 250000638.1 206 L ST 3/22/2025 Sat YES AGGRAVATED ASSAULT PC 245A1 250000640.1 715 OLLER ST 3/22/2025 Sat NO INCIDENT REPORT 250000641.1 1248 OLLER ST 3/23/2025 Sun NO INCIDENT REPORT 250000642.1 570 DIVSADERO ST 3/23/2025 Sun NO GRAND THEFT AUTO VC 10851 250000644.1 7TH ST & STAMOULES ST 3/23/2025 Sun YES WARRANT ARREST PC 978.5 250000645.1 779 UNIDA ST 3/23/2025 Sun YES AGGRAVATED ASSAULT PC 69, PC 273AA, PC 243B 250000648.1 ROWE AV & BLACK AV 3/24/2025 Mon NO HIT & RUN VC 20002 250000649.1 9TH ST & OLLER ST 3/24/2025 Mon YES WARRANT ARREST PC 978.5 250000650.1 1282 BELMONT AV 3/24/2025 Mon NO RAPE PC 261.5
MENDOTA POLICE DEPARTMENT
MARCH 2025
CASE# ADDRESS RPT DATE DAYS ARREST CRIME TYPE CHARGES
250000651.1 3123 BASS AV 3/24/2025 Mon NO INCIDENT REPORT 250000656.1 1078 PUCHEU ST 3/24/2025 Mon NO INCIDENT REPORT 250000660.1 211 SMOOT AVE 3/25/2025 Tue NO SIMPLE ASSAULT PC 242 250000663.1 901 MARIE ST 3/25/2025 Tue NO INCIDENT REPORT 250000667.1 200 DERRICK AV 3/25/2025 Tue NO FIELD INTERVIEW 250000668.1 640 GARCIA ST 3/25/2025 Tue NO INCIDENT REPORT 250000671.1 1258 BELMONT AV 3/26/2025 Wed NO INCIDENT REPORT 250000672.1 503 I ST 3/26/2025 Wed NO VANDALISM PC 594
250000673.1 1929 JENNINGS ST 3/26/2025 Wed NO INCIDENT REPORT 250000674.1 SMOOT AV & SORENSEN AV 3/26/2025 Wed NO TRAFFIC COLLISION 250000675.1 439 SILVA ST 3/26/2025 Wed YES SIMPLE ASSAULT PC 242 250000676.1 350 SORENSEN AV 3/26/2025 Wed NO SIMPLE ASSAULT PC 242 250000677.1 528 J ST 3/27/2025 Thu NO VANDALISM PC 594B1 250000678.1 9TH ST & MARIE ST 3/27/2025 Thu NO PETTY THEFT PC 484 250000679.1 103 KATE CT 3/27/2025 Thu NO VANDALISM PC 594B2 250000680.1 4TH ST & NAPLES ST 3/27/2025 Thu YES NARCOTICS VIOLATION HS 11377 250000681.1 760 LOLITA ST 3/27/2025 Thu YES WARRANT ARREST PC 978.5 250000682.1 608 JUANITA ST 3/27/2025 Thu NO VANDALISM PC 594B1 250000683.1 608 JUANITA ST 3/27/2025 Thu NO VANDALISM PC 594B1 250000684.1 528 J ST 3/27/2025 Thu NO MENTALLY UNSTABLE WI 5150 250000685.1 618 JUANITA ST 3/27/2025 Thu NO VANDALISM PC 594B1 250000686.1 1591 11TH ST 3/27/2025 Thu NO INCIDENT REPORT 250000687.1 1000 AIRPORT BLVD 3/27/2025 Thu NO FOUND PROPERTY 250000688.1 1000 AIRPORT BLVD 3/27/2025 Thu NO CANCELLED 250000689.1 600 DELA CRUZ ST 3/27/2025 Thu NO INCIDENT REPORT 250000691.1 9TH ST & OLLER ST 3/28/2025 Fri YES NARCOTICS VIOLATION HS 11377 250000694.1 1266 5TH ST 3/28/2025 Fri NO ANIMAL COMPLAINT 250000695.1 647 PEREZ ST 3/28/2025 Fri YES NARCOTICS VIOLATION HS 11364, HS 11377 250000696.1 200 DERRICK AV 3/28/2025 Fri NO RESIDENTIAL BURGLARY PC 460, PC 594 250000697.1 202 I ST #125 3/28/2025 Fri YES TRESPASS PC 602, PC 647H, PC 978.5 250000698.1 8TH ST & QUINCE ST 3/29/2025 Sat NO FIELD INTERVIEW 250000699.1 1000 AIRPORT BLVD 3/29/2025 Sat YES WARRANT ARREST PC 978.5 250000701.1 HWY 33 & BASS AV 3/29/2025 Sat YES NARCOTICS VIOLATION HS 11350, PC 148.9A 250000702.1 797 UNIDA ST 3/29/2025 Sat YES AGGRAVATED ASSAULT (DV) PC 273.5 250000703.1 1248 OLLER ST 3/29/2025 Sat YES AGGRAVATED ASSAULT (DV) PC 273.5 250000704.1 64 DIAZ ST 3/29/2025 Sat NO VANDALISM PC 594 250000705.1 218 LUA AV 3/29/2025 Sat NO VANDALISM PC 594 250000706.1 7TH ST & OLLER ST 3/30/2025 Sun YES NARCOTICS VIOLATION HS 11377, HS 11364 250000707.1 313 MARIE ST 3/30/2025 Sun NO GRAND THEFT AUTO VC 10851 250000708.1 265 TUFT ST #A 3/30/2025 Sun NO INCIDENT REPORT 250000709.1 1575 2ND ST 3/30/2025 Sun NO VANDALISM PC 594 250000710.1 218 OLLER ST 3/30/2025 Sun NO VANDALISM PC 594 250000712.1 672 NAPLES ST 3/30/2025 Sun NO FIELD INTERVIEW 250000713.1 672 NAPLES ST 3/30/2025 Sun NO FIELD INTERVIEW 250000715.1 WHITESBRIDGE AV & SAN MATEO AV 3/30/2025 Sun YES DUI ARREST VC 23152 250000716.1 1000 AIRPORT BLVD 3/30/2025 Sun NO FOUND PROPERTY 250000718.1 103 KATE CT 3/30/2025 Sun YES NARCOTICS VIOLATION HS 11364 250000719.1 4TH ST & K ST 3/31/2025 Mon YES PROBATION VIOLATION WIC 602A, PC 1203.2, HS 11350 250000720.1 10TH ST & OLLER ST 3/31/2025 Mon YES SUSPENDED LICENSE VC 14601.1 250000721.1 7TH ST & LOLITA ST 3/31/2025 Mon YES NARCOTICS VIOLATION HS 11364 250000722.1 748 QUINCE ST 3/31/2025 Mon NO FIELD INTERVIEW
ALL CRIMES
MENDOTA POLICE DEPARTMENT
MARCH 2025 - MAP
® ®
MENDOTA POLICE DEPARTMENT
MARCH 2025
CRIME TYPE Sun Mon Tue Wed Thu Fri Sat Grand Total
AGGRAVATED ASSAULT 1 1 2
AGGRAVATED ASSAULT (DV) 2 2
ANIMAL COMPLAINT 1 2 3
ARSON 1 1
ATTEMPT CARJACK 1 1
CANCELLED 1 1 2
COMMERCIAL BURGLARY 1 1 2
DUI ARREST 2 1 1 4
FIELD INTERVIEW 2 4 3 3 2 4 18
FOUND PROPERTY 2 1 3
GRAND THEFT 1 1
GRAND THEFT AUTO 3 2 1 6
HIT & RUN 1 1 2
INCIDENT REPORT 6 3 4 4 5 2 2 26
KIDNAPPING 1 1
LOST PROPERTY 1 1
MENTALLY UNSTABLE 1 1 2
MISSING PERSON 1 1
NARCOTICS VIOLATION 3 3 1 2 2 11
OPEN CONTAINER 3 3
OTHER AGENCY ASSIST 1 1
PAROLE VIOLATION 1 1
PETTY THEFT 1 1
PROBATION VIOLATION 1 1
PUBLIC INTOXICATION 1 2 2 1 6
RAPE 1 1
REPOSSESSION 1 1 1 3
RESIDENTIAL BURGLARY 1 1
RESISTING 2 2
RO VIOLATION 1 1
RUNAWAY JUVENILE 1 1
SEX OFFENSE 1 1
SIMPLE ASSAULT 1 1 2 1 1 6
SUSPENDED LICENSE 1 1 2
TAMPERING 1 1
TRAFFIC COLLISION 1 1 2
TRESPASS 1 1
VANDALISM 3 1 1 2 5 1 3 16
VEHICLE BURGLARY 1 1 2
WARRANT ARREST 1 4 2 2 1 10
WEAPONS POSSESSION (KNIFE) 1 1
Grand Total 27 28 16 17 25 14 26 153
8 14
4 5
6 4
12 0
2 4
6 8
10 12
14 16
Sun Mon Tue Wed Thu Fri Sat
ARRESTS PER DAY OF WEEK
MENDOTA POLICE DEPARTMENT
MARCH 2025 - ARRESTS
DAYS ARRESTS
Sun 8
Mon 14
Tue 4
Wed 5
Thu 6
Fri 4
Sat 12
Grand Total 53
8 15
20 9
18 9
7 0
5 10
15 20
25 Sun Mon Tues Wed Thu Fri Sat
CITATIONS PER DAY OF WEEK
MENDOTA POLICE DEPARTMENT
MARCH 2025 - CITES
DAYS COUNT
Sun 8
Mon 15
Tues 20
Wed 9
Thu 18
Fri 9
Sat 7
Grand Total 86
CASE_NO DATE DAY
250000484.1 3/1/2025 Sat
250000490.1 3/1/2025 Sat
250000491.1 3/1/2025 Sat
250000498.1 3/3/2025 Mon
250000500.1 3/3/2025 Mon
250000501.1 3/3/2025 Mon
250000504.1 3/4/2025 Tue
250000505.1 3/4/2025 Tue
250000507.1 3/4/2025 Tue
250000510.1 3/4/2025 Tue
250000511.1 3/4/2025 Tue
250000513.1 3/4/2025 Tue
250000517.1 3/5/2025 Wed
250000519.1 3/7/2025 Fri
250000523.1 3/7/2025 Fri
250000525.1 3/8/2025 Sat
250000543.1 3/10/2025 Mon
250000545.1 3/10/2025 Mon
250000546.1 3/10/2025 Mon
250000547.1 3/10/2025 Mon
250000549.1 3/10/2025 Mon
250000550.1 3/11/2025 Tue
250000553.1 3/11/2025 Tue
250000554.1 3/12/2025 Wed
250000555.1 3/12/2025 Wed
250000562.1 3/13/2025 Thu
250000564.1 3/13/2025 Thu
250000565.1 3/13/2025 Thu
250000566.1 3/13/2025 Thu
250000567.1 3/13/2025 Thu
250000568.1 3/13/2025 Thu
250000570.1 3/13/2025 Thu
250000571.1 3/13/2025 Thu
250000572.1 3/13/2025 Thu
250000573.1 3/13/2025 Thu
250000574.1 3/13/2025 Thu
250000576.1 3/13/2025 Thu
250000577.1 3/13/2025 Thu
250000578.1 3/13/2025 Thu
250000580.1 3/13/2025 Thu
250000581.1 3/13/2025 Thu
250000582.1 3/13/2025 Thu
250000589.1 3/15/2025 Sat
CASE_NO DATE DAY
250000591.1 3/16/2025 Sun
250000592.1 3/16/2025 Sun
250000595.1 3/16/2025 Sun
250000596.1 3/16/2025 Sun
250000608.1 3/18/2025 Tue
250000610.1 3/18/2025 Tue
250000612.1 3/18/2025 Tue
250000615.1 3/18/2025 Tue
250000616.1 3/18/2025 Tue
250000619.1 3/19/2025 Wed
250000620.1 3/19/2025 Wed
250000621.1 3/19/2025 Wed
250000622.1 3/19/2025 Wed
250000627.1 3/20/2025 Thu
250000630.1 3/21/2025 Fri
250000631.1 3/21/2025 Fri
250000632.1 3/21/2025 Fri
250000635.1 3/21/2025 Fri
250000639.1 3/22/2025 Sat
250000643.1 3/23/2025 Sun
250000646.1 3/24/2025 Mon
250000647.1 3/24/2025 Mon
250000652.1 3/24/2025 Mon
250000653.1 3/24/2025 Mon
250000654.1 3/24/2025 Mon
250000655.1 3/24/2025 Mon
250000657.1 3/24/2025 Mon
250000658.1 3/25/2025 Tue
250000659.1 3/25/2025 Tue
250000661.1 3/25/2025 Tue
250000662.1 3/25/2025 Tue
250000664.1 3/25/2025 Tue
250000665.1 3/25/2025 Tue
250000666.1 3/25/2025 Tue
250000669.1 3/26/2025 Wed
250000670.1 3/26/2025 Wed
250000690.1 3/28/2025 Fri
250000692.1 3/28/2025 Fri
250000693.1 3/28/2025 Fri
250000700.1 3/29/2025 Sat
250000711.1 3/30/2025 Sun
250000714.1 3/30/2025 Sun
250000717.1 3/30/2025 Sun
MENDOTA POLICE DEPARTMENT
MARCH 2025– VEHICLE STOPS
TOTAL VEHICLE STOPS – 291
▪ WITH CASE NUMBERS – 99
▪ WITHOUT CASE NUMBERS - 192
99 192
0 50
100
150
200
250
CASES NO CASES
VEHICLE STOPS
CASES, 99,
34%
NO CASES,
192, 66%
MENDOTA POLICE DEPARTMENT
MARCH 2025
CRIME TYPE December JanuaryFebruaryMarch April May June July August September October November December 2025 Totals
FEB-MAR%
Homicide 0 0 0 0 0 NON-CAL
Rape 0 1 0 1 2 NON-CAL
Other Sex Offense 3 0 1 1 2 0%
Robbery 2 2 2 1 5 -50%
Aggravated Assault 7 4 4 2 10 -50%
Aggravated Assault (DV) 2 3 0 3 6 NON-CAL
Simple Assault 2 2 2 6 10 200%
Simple Assault (DV) 1 2 1 0 3 -100%
Residential Burglary 0 0 1 0 1 -100%
Commercial Burglary 1 1 1 2 4 100%
Auto Theft 11 5 2 6 13 200%
Grand Theft 2 0 1 1 2 0%
Petty Theft 2 6 5 1 12 -80%
Vehicle Burglary 3 1 0 2 3 NON-CAL
ID Theft/Fraud 1 1 4 0 5 -100%
Arson 0 1 0 0 1 NON-CAL
Vandalism 9 10 8 15 33 88%
Hate Crimes 0 0 0 0 0 NON-CAL
Possession of Firearm 0 1 0 0 1 NON-CAL
Possession of Knife 0 0 0 1 1 NON-CAL
DUI Arrests 3 1 6 4 11 -33%
Public Intoxication 0 4 2 6 12 200%
Narcotics Violation 4 10 9 12 31 33%
Parole/Probation Violation 0 2 0 2 4 NON-CAL
Restraining Order Violation 1 4 2 2 8 0%
Warrant Arrest 15 5 11 11 27 0%
Mental Health Reports 7 2 2 2 6 0%
Runaway / Missing 1 1 3 2 6 -33%
Trespass 2 0 1 1 2 0%
TOTALS 79 69 68 84 0 0 0 0 0 0 0 0 0 221 24%
MENDOTA POLICE DEPARTMENT
MARCH 2025
MARCH VANDALISM = 16 TOTAL
➢ 9 – VEHICLES
➢ 4 – PARK (Graffiti)
➢ 2– RESIDENCES
➢ 1-PUBLIC WALL
*Damages to vehicles were:
Tires slashed and windows broken.