1 ORDINANCE NO. 871
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PATTERSON
APPROVING THE FOURTH AMENDMENT TO THE DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF PATTERSON AND
NUCLEUS HOMEOPATHICS, INC.
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code section 65864 et seq. (the “Development Agreement Statute”), which authorizes the City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property that is subject to a development agreement application; and
WHEREAS, on December 5, 2017, the City Council approved Ordinance No. 815, which authorized the City of Patterson (the “City”) and Nucleus Homeopathics, Inc. (the “Developer”) to enter into a development agreement for the operation of a cannabis manufacturing business (the “Project”) located at 100 West Las Palmas Avenue, Suite G, Patterson, CA 95373, identified as Stanislaus County Assessor’s Parcel Number 131-003-017 (the “Development Agreement”); and WHEREAS, on July 17, 2018, the City Council approved Ordinance No. 820 approving the First Amendment to the Development Agreement adding a distribution license to the Developer’s Authorized License; and
WHEREAS, on December 4, 2018, the City Council approved Ordinance No. 835 approving the Second Amendment to the Development Agreement to add a cannabis cultivation license to Developer’s Authorized License; and
WHEREAS, on April 21, 2020, the City Council approved Ordinance No. 842 approving the Third Amendment to the Development Agreement to authorize continued operations of the Project at an alternative location located at 240 Park Center Drive, Patterson, CA 95363 (the “Site”); and
WHEREAS, Section 4.2 of the Development Agreement requires Developer to pay to the City certain amounts to offset the impacts to City infrastructure, services, and neighborhoods, commensurate with the private benefits conferred on Developer (the “Public Benefit Amount”); and
WHEREAS, Developer failed to remit multiple required Public Benefit Amount payments, resulting in an overdue Public Benefit Amount (the “Delinquent Public Benefit Amount”) and a default of the Development Agreement pursuant to Section 8.1(a); and 2 WHEREAS, on May 23, 2023, the City and Developer reached a resolution (the “Resolution”) to settle the Delinquent Public Benefit Amount, cure the default, and bring the Project current and back into good standing; and
WHEREAS, Section 1.9 provides that the Development Agreement may only be amended by mutual consent of the Parties, that all amendments must be in writing, and that major amendments must be approved by the City Council; and
WHEREAS, the agreement between the City and Developer requires a Fourth Amendment to the Development Agreement to update its terms, and to confirm and memorialize the terms of the Resolution; and
WHEREAS, on July 13, 2023, the Planning Commission adopted Resolution No. 2023- 05 recommending that the Patterson City Council adopt an ordinance to approve a Fourth Amendment to the Development Agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PATTERSON ORDAINS AS FOLLOWS:
SECTION 1. The City Council approves the Fourth Amendment to the Development Agreement by and between the City and Developer to modify Section 4.2, subdivision (a) to acknowledge receipt of Developer’s Delinquent Public Benefit payment and resolution of Developer’s past-due Public Benefit Amounts, and to set a Public Benefit amount of Seven Thousand Dollars ($7,000.00), or five percent (5%) of Developer’s gross receipts from operations, whichever is higher, due to the City on the first business day of each month going forward, effective the first business day following the conclusion of the Project’s first quarter of operation; to remove the current Section 4.7 and replace it with new language stating that Developer will be subject to the City’s cannabis tax on an ongoing basis; and to add a new Section 2.13 to the Development Agreement, requiring Developer to ensure the Project is open and operational within twelve (12) months of the effective date of the Fourth Amendment and, should the Project require additional time to become operational, allowing an extension of this period to eighteen (18) months upon Developer’s showing that progress is being made to the City’s satisfaction.
SECTION 2. The City shall review the Development Agreement and Amendment, taken together, for compliance with its terms and conditions not less than once every twelve (12) months from the effective date of the Development Agreement.
SECTION 3. Notice of the public hearing on the Ordinance was published in the Patterson Irrigator, a newspaper of general circulation; and notices of the public hearing on the proposed Amendment were mailed to all interested parties and property owners within three hundred (300) feet of the property, according to the most recent assessor’s roll.
SECTION 4. Environmental impacts for the Amendment have been reviewed and assessed by the City pursuant to CEQA (Public Resources Code section 21000 et seq.). The 3 Amendment is not a “project” under CEQA since the Amendment does not cause a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
SECTION 5. If any section, subsection, sentence, clause, phrase, or word of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more section(s), subsection(s), sentence(s), clause(s), phrase(s), or word(s) be declared invalid.
SECTION 6. This Ordinance shall become effective thirty (30) days from and after its final passage and adoption, and publication of the Ordinance shall occur in a newspaper of general circulation at least fifteen (15) days prior to its effective date, or a summary of the Ordinance published in a newspaper of general circulation at least five (5) days prior to adoption and again at least fifteen (15) days prior to its effective date.
The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Patterson, held on the 15
th day of August 2023, by __________________, who moved its introduction, which motion was duly seconded by ___________________. Said Ordinance was given a second reading at a regular meeting of the City Council held on the ___, day of __________, 2023, and after such reading, _________________ moved its adoption, seconded by , and said Ordinance was thereupon adopted by the following roll call vote:
AYES:
NOES:
EXCUSED:
APPROVED:
_________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
___________________________
Aracely Alegre
City Clerk of the City of Patterson