Agenda Packet — Salinas City Council, June 18, 2024 (part 1 of 9)

Tuesday, June 18, 2024
4:00 PM
City of Salinas
200 Lincoln Ave., Salinas, CA 93901
www.cityofsalinas.org

SALINAS ROTUNDA
City Council
Mayor Kimbley Craig
Councilmembers:

Carla Viviana González, District 1 - Tony Barrera, District 2 Jesus Valenzuela, District 3 - Orlando Osornio, District 4 Andrew Sandoval, District 5 - Anthony Rocha, District 6 Rene Mendez, City Manager
Christopher A. Callihan, City Attorney
City Clerk’s Office: (831) 758-7381
Meeting Agenda - Final
City Council Meeting Agenda - Final June 18, 2024

ZOOM WEBINAR PARTICIPATION
JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://us02web.zoom.us/j/86127260119
To participate telephonically, call any number below:
+1 669 900 9128 US (San Jose) +1 669 444 9171 US +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 719 359 4580 US +1 253 205 0468 US +1 689 278 1000 US +1 301 715 8592 US (Washington DC) +1 305 224 1968 US +1 309 205 3325 US +1 312 626 6799 US (Chicago) +1 360 209 5623 US +1 386 347 5053 US +1 507 473 4847 US +1 564 217 2000 US +1 646 558 8656 US (New York) +1 646 931 3860 US Webinar ID: 861 2726 0119
If prompted to enter a participant ID, press #.

PLEDGE OF ALLEGIANCE

ROLL CALL

PROCLAMATION
Juneteenth
National Portuguese Month, June 2024
California Rodeo Salinas, July 18 - 21, 2024
National Parks and Recreation Month, July 2024

PUBLIC COMMENT PROCEDURES
If you wish to make a general public comment or comment on a specific agenda item, you are encouraged to attend the City Council meeting in person. Public comment may also be submitted via email at [email protected] and will be entered into the record.

PUBLIC COMMENT TIME RESTRICTIONS
Public comments generally are limited to two minutes per speaker; the Mayor may further limit the time for public comments depending on the agenda schedule.

GENERAL PUBLIC COMMENTS
Receive public communications on items that are not on the agenda and that are in the City of Salinas’ subject matter jurisdiction. Comments on Consent, Consideration, and Closed session items should be held until the items are reached. The public may request that the legislative body consider adding an item for consideration on a future agenda. The public may comment on scheduled agenda items, including closed session items, as they are considered.

City of Salinas Page 2 Printed on 6/17/2024
City Council Meeting Agenda - Final June 18, 2024

PUBLIC HEARINGS
ID#24-330 Conditional Use Permit 2022-048 (1228 South Main Street); Appeal of CannaCruz, Inc. and referral from the Salinas Planning Commission Recommendation: Consider CannaCruz, Inc.'s appeal of the Planning Commission's denial of Conditional Use Permit 2022-048 and consider CannaCruz, Inc.'s application for a major amendment to Commercial Cannabis Permit 2023-007 to relocate from 1156 Abbott Street to 1228 South Main Street upon appeal of the Selection Committee's denial and upon referral from the Salinas Planning Commission.

ID#24-363 Wastewater Collection Public Hearing
Recommendation: Conduct a public hearing and determine the official number of written protests received on the proposed collection of wastewater collection fees and charges on the property tax roll by Monterey County and, if the number of valid protest votes is below 50% of the number of property owners or customers authorized to vote, approve a Resolution approving the City's 2024-2025 Annual Rate Report for Wastewater Collection and directing collection of the fees and charges detailed in the report on the Monterey County Tax Roll.

CONSENT AGENDA
All matters listed under Consent Agenda may be enacted by one motion unless a member of the Council or the public requests discussion or a separate vote.

ID#24-364 Minutes
Recommendation: Approve minutes of May 21, 2024, June 4, 2024, and June 11, 2024.

ID#24-361 Financial Claims
Recommendation: Approve financial claims report.

ID#24-155 Boronda Road Congestion Relief Project Phase 1, CIP 9510 Recommendation: Approve a Resolution approving the plans and specifications for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510; and award contract to Granite Construction Company for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510 in the amount of $15,637,796.93 (Base Bid minus Items 142, 143, 144 Plus Items 145, 146, 147, 148,149); and approve a transfer of funds in the amount of $5,300,000 to CIP 9510 - Boronda Road Congestion Relief Project.

ID#24-233 AVP Salinas-based Artist Grants Pilot Program Recommendation: Approve a Resolution approving the Alisal Vibrancy Plan Salinas-based Artist Grants Pilot Program ("Program"), and appropriating $150,000 from Capital Improvement Program 9246, EDE Alisal Vibrancy Plan, to fund the Program.

ID#24-282 Landscape Maintenance Districts Agreements for Services City of Salinas Page 3 Printed on 6/17/2024
City Council Meeting Agenda - Final June 18, 2024
Recommendation: Approve a Resolution approving specifications for the Annual Maintenance Districts' Landscape Services for the Harden Ranch, Mira Monte, Airport, and Woodside Maintenance Districts; and awarding contracts for Landscape Maintenance Services for Harden Ranch Maintenance District for an amount not to exceed $210,000 and Mira Monte, Airport, and Woodside Maintenance Districts for an amount not to exceed $207,057; and authorizing the City Manager to enter into agreements for services with Brightview Landscape Services, Inc. for landscape maintenance services.

ID#24-302 Master Services Agreements For On-Call Consultants For Project Management, Environmental Services, Construction Management, And Inspection Services
Recommendation: Approve a Resolution authorizing the establishment of a three-year On-Call List of consultants for project management, environmental services, construction management, and inspection services to include 4Leaf, Inc., CSG Consultants Inc., Rincon Consultants Inc., Epicus Group, Denise Duffy & Associates, Inc., Ausonio, Inc., and Cumming Group; and authorize the City Manager to execute the Master Services Agreement for Professional Services with the seven consultants on for a compensation amount not-to-exceed amount of $300,000.

ID#24-311 Amendment No. 3 to the Master Service Agreement for Professional Services with CSG Consultants, Inc.

Recommendation: Approve a Resolution authorizing the City Manager to execute Amendment No. 3 to the Master Service Agreement for Professional Services between the City of Salinas and CSG Consultants, Inc. in the amount not to exceed $1,150,696.50 to provide design, inspection, project management, construction management, labor compliance and environmental services for various Capital Improvement Projects (CIPs).

ID#24-312 Direct Purchase of Body Armor for Firefighters Recommendation: Approve a Resolution authorizing the Purchasing Agent to complete the direct purchase of body armor and ballistic helmets from AARDVARK in the amount of $134,627.50, to include a 10% contingency for a total not to exceed amount of $148,090.25.

ID#24-315 R&B Helicopters, Inc. Lease Amendment No. 1 - 240 Mortensen Avenue Recommendation: Approve a Resolution authorizing the Mayor to enter into an Amendment to the Lease Agreement with R & B Helicopters, Inc. to grant an extension through June 30, 2025, with options for additional extensions on a month-to-month basis.

ID#24-321 Purchase of SMART Irrigation Controllers
Recommendation: Approve a Resolution authorizing the Purchasing Agent to complete the purchase of 48 SMART irrigation controllers from Martin's Irrigation Supply, Inc. for the amount of $184,177.98, plus a 10% contingency, for a total amount not to exceed $202,596.

ID#24-335 Closter Park Playground Equipment Purchase
Recommendation: Approve a Resolution authorizing the Purchasing Agent to complete the purchase of playground equipment for Closter Park from Landscape Structures, Inc. in an amount not to exceed $198,594; and approve the reallocation of $1,000,000 in ARPA Park Irrigation Upgrades for Closter Park Improvements.

ID#24-336 Agreement for Services with AMS.NET, Johnson Electronics, and MJ Communications For Security Cameras and Access Controls City of Salinas Page 4 Printed on 6/17/2024
City Council Meeting Agenda - Final June 18, 2024
Recommendation: Approve a Resolution authorizing the City Manager to execute an Agreement for Services with AMS.NET Inc., Johnson Electronics Inc., and MJ Communications Inc. for the design, build, installation and maintenance of security cameras and access control systems at City owned facilities in a total amount not to exceed $1,000,000.

ID#24-339 Acceptance of the City Hall Emergency Roof Repairs Recommendation: Approve a Resolution accepting the City Hall Emergency Roof Repair Project for maintenance and responsibility.

ID#24-340 Subrecipient Funding Agreements for Homeless Services Projects for FY 24-25
Recommendation: Approve a Resolution authorizing the City Manager to negotiate and execute Subrecipient Agreements for homeless services projects for FY 2024-2025 and authorizing the amendment of Subrecipient Funding Agreement No. 22SESG01 with Central Coast Center for Independent Living.

ID#24-341 Direct Purchase of Vigilant Fixed License Plate Reader (LPR) Camera Systems and Payment of the Annual Subscription Fee
Recommendation: Approve a Resolution authorizing the Purchasing Agent to complete the direct purchase of L5F Fixed License Plate Reader (LPR) camera systems and associated equipment and services from Vigilant Solutions, LLC for a total cost not to exceed $49,812.82; and a Resolution approving the expenditure of $35,559.43 and authorizing the City Manager to execute the associated annual subscription agreement for the period of July 1, 2024, through June 30, 2025, for the annual subscription fee with Vigilant Solutions, LLC.

ID#24-342 Direct Purchase of 12-Passenger Van
Recommendation: Approve a Resolution authorizing the Purchasing Agent to complete the direct purchase of one 2024 Ford Transit 12-Passenger Van for a total cost not to exceed $61,365.70.

ID#24-345 Agreement for Services with Cadence Team, Inc. for Network Infrastructure Maintenance and Support
Recommendation: Approve a Resolution authorizing the City Manager to execute an Agreement for Services (Agreement) with Cadence Team, Inc. to provide network infrastructure maintenance, and support for a one (1) year term in an amount not to exceed $60,000.

ID#24-350 HVAC Maintenance Service Agreement Amendment No. 2 Recommendation: Approve a Resolution authorizing the City Manager to execute Amendment No. 2 with Environmental Systems Inc. for HVAC Maintenance Services to modify the compensation terms to increase the annual rate of compensation by Two Hundred Eighty Dollars ($280) for a total not to exceed amount of Seventy Thousand Seven Hundred Fifty Dollars ($70,750).

ID#24-355 Purchase of Battery Backup System for Servers Recommendation: Approve a Resolution authorizing the Purchasing Agent to purchase an Uninterruptible Power Supply system from CDW-G LLC., for server equipment in an amount not to exceed $81,000.

ID#24-356 Amendment No. 5 to Agreement for Services with Benitez Security Services, Inc.

City of Salinas Page 5 Printed on 6/17/2024
City Council Meeting Agenda - Final June 18, 2024
Recommendation: Approve a Resolution authorizing the City Manager to execute Amendment No. 5 to Agreement for Services (No. 22ARPA04) with Benitez Security Services, Inc. to increase the compensation amount for a total amount not to exceed $1,285,237 and to extend the term to October 31, 2024.

ID#24-366 City Observed Holidays and Side-Letter Agreement for Public Safety Units Recommendation: Approve a Resolution authorizing the City Manager to sign side-letter agreements with the Fire Supervisors Association (FSA), Salinas Firefighters Local 1270, and Police Managers Association (PMA) recognizing Cesar Chavez Day and Juneteenth as holidays.

COUNCILMEMBERS’ REPORTS, APPOINTMENTS AND FUTURE AGENDA ITEMS Receive communication from Councilmembers on reports, appointments and future agenda items. Councilmember comments are generally limited to three minutes.

ADJOURNMENT
_____________________________
Patricia M. Barajas, City Clerk

AGENDA MATERIAL / ADDENDUM
Any addendums will be posted within 72 hours of regular meetings or 24 hours of special meetings and in accordance with Californian Government Code Section 54954.2 and 54956. City Council agenda reports and other writings distributed to the legislative body may be viewed at the Salinas City Clerk’s Office, 200 Lincoln Avenue, Salinas, and are posted on the City’s website at www.cityofsalinas.org in accordance with California Government Code section 54597.5. The City Council may take action that is different than the proposed action reflected on the agenda.

Disability-related modification or accommodation, including auxiliary aids or services, may be requested by any person with a disability who requires a modification or accommodation in order to participate in the meeting. Language interpretation may be requested as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Requests should be referred to the City Clerk’s Office At 200 Lincoln Avenue, Salinas, 758-7381, as soon as possible but by no later than 5 p.m. of the last business day prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the city by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

PUBLIC NOTIFICATION
This agenda was posted on June 14, 2024 in the Salinas Rotunda and City's website.

Meetings are streamed live at https://salinas.legistar.com/Calendar.aspx, televised live on Comcast Channel 25 and on http://www.youtube.com/thesalinaschannel at 4:00 p.m. on the date of the regularly scheduled meeting and will be broadcast throughout the day on Friday, Saturday, Monday and Wednesday following the meeting. For the most up-to-date Broadcast Schedule for The Salinas Channel on Comcast 25, please visit or subscribe to our Google Calendar located at http://tinyurl.com/SalinasChannel25. All past City Council meetings may also be viewed on the Salinas Channel on YouTube at http://www.youtube.com/thesalinaschannel.

City of Salinas Page 6 Printed on 6/17/2024
City Council Meeting Agenda - Final June 18, 2024
City of Salinas Page 7 Printed on 6/17/2024
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-330, Version: 1
Conditional Use Permit 2022-048 (1228 South Main Street); Appeal of CannaCruz, Inc. and referral from the Salinas Planning Commission
Consider CannaCruz, Inc.'s appeal of the Planning Commission's denial of Conditional Use Permit 2022-048 and consider CannaCruz, Inc.'s application for a major amendment to Commercial Cannabis Permit 2023-007 to relocate from 1156 Abbott Street to 1228 South Main Street upon appeal of the Selection Committee's denial and upon referral from the Salinas Planning Commission.

City of Salinas Page 1 of 1 Printed on 6/14/2024
powered by Legistar™
Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 18, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, COMMUNITY DEVELOPMENT DIRECTOR
THROUGH: COURTNEY GROSSMAN, PLANNING MANAGER
BY: THOMAS WILES, SENIOR PLANNER
TITLE: CONDITIONAL USE PERMIT 2022-048 (1228 SOUTH MAIN STREET); APPEAL OF PLANNING COMMISSION

DETERMINATION
RECOMMENDED MOTION:

Consider the appeal of the Planning Commission’s denial of CannaCruz Inc.’s application for Conditional Use Permit 2022-048 to:
a) Change the use from Retail to a proposed two-tenant Shopping Center within an existing 20,162 square-foot building located at 1228 South Main Street in the Commercial Retail - South Main Street Focused Growth Overlay District (CR–FG-3) Zoning District; b) Allow for a 41-space (51%) Parking Reduction per Zoning Code Table 37-50.100; c) Except the use from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure; and d) Allow for Alternative Means of Compliance for landscaping located at 1228 South Main Street in the Commercial Retail – South Main Street Focused Growth Overlay District (CR-FG-3).

EXECUTIVE SUMMARY:

On August 23, 2022, CannaCruz, Inc. (“CannaCruz”), in an effort to relocate its commercial cannabis business (dispensary with associated delivery and distribution), submitted an application for Conditional Use Permit 2022-048 (CUP 2022-048) to change the use of an existing 20,162 square-foot building located at 1228 South Main Street in the Commercial Retail - South Main Street Focused Growth Overlay District (CR–FG-3) Zoning District from Retail to a proposed two-tenant Shopping Center. The two tenant uses include a 9,413 square-foot retail furniture store in the front portion (Unit “A”) of the building and a 10,749 square-foot cannabis dispensary with accessory delivery and distribution retail use in the rear portion (Unit “B”). CUP 2022-048 includes the allowance of a 41-space (51%) Parking Reduction pursuant to Zoning Code Table 37-

50.100, exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for Page | 2
landscaping. On April 3, 2024, the Planning Commission considered and denied CannaCruz’s application for CUP 2022-48. On April 17, 2024, CannaCruz submitted an appeal of the Planning Commission’s determination.

Related to CUP 2022-048 is CannaCruz’s application for a major amendment to its Commercial Cannabis Permit 2023-007 (“CCP 2023-007”) which is also on appeal to the City Council. In order for CannaCruz to relocate from 1156 Abbott Street to 1228 South Main Street, both CUP 2022- 048 and CCP 2023-007 must be approved.

Staff is requesting that the City Council receive the report, consider whether to grant or to deny CannaCruz’s appeal of the Planning Commission’s denial of Conditional Use Permit 2022-048 (related to the establishment of a commercial cannabis use at 1228 South Main Street), make findings in support of its determination, and make findings with respect to compliance with the California Environmental Quality Act (CEQA).

BACKGROUND:

CannaCruz is currently operating an existing cannabis dispensary with accessory delivery and distribution at 1156 Abbott Street (CCP 2023-003). CannaCruz has stated they need to relocate due to their lease ending. CannaCruz applied for Conditional Use Permit 2022-048 (CUP 2022- 048) to change the use of 1228 South Main Street from Retail to a proposed two-tenant Shopping Center within an existing 20,162 square-foot building. Proposed uses include a 9,413 square-foot retail furniture store in the front portion (Unit “A”) and a 10,749 square-foot cannabis dispensary with accessory delivery and distribution retail use in the rear portion (Unit “B”). CUP 2022-048 includes a, a 41-space (51%) Parking Reduction per Zoning Code Table 37-50.100 (40 off-street parking spaces), exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for landscaping located on a 1.02-acre site at 1228 South Main Street in the Commercial Retail - South Main Street Focused Growth Overlay District (CR–FG-3) Zoning District; and
The property is owned by Samuel & Marguerite Kobrinsky, Trustees. A furniture store previously occupied the building until December 31, 2021. The following provides an overview of the land uses and zoning districts adjacent to the project site:

North: Restaurant and Multi-family Residential / Commercial Retail – South Main Street Focused Growth Overlay District (CR-FG-3)
South: Restaurant and Commercial / Commercial Retail – South Main Street Focused Growth Overlay District (CR-FG-3)
East: Shopping Center / Commercial Retail – South Main Street Focused Growth Overlay District (CR-FG-3)
West: Commercial / Commercial Retail – South Main Street Focused Growth Overlay District (CR-FG-3)
The project was originally scheduled for a Special Planning Commission public hearing on January 10, 2024. However, the hearing was cancelled due to concerns with zoning compliance. On Page | 3
December 29, 2023, the Applicant requested a 90-day time extension pursuant to Government Code Section 65957. Staff met with the Applicant on January 24, 2024, and February 28, 2024, to address outstanding issues. Revised plans were subsequently submitted, and a new hearing was scheduled for Planning Commission consideration on March 20, 2024. However, to ensure the complete processing of CCP 2023-007, the item was continued to the April 3, 2024, Planning Commission meeting.

Analysis:

Note: Analysis of related Commercial Cannabis Permit 2023-007 is contained in a separate City Council Staff Report dated June 18, 2024.

Conditional Use Permit 2022-048
The subject site is designated Retail by the 2002 Salinas General Plan and is located in the CRFG-3 (Commercial Retail – South Main Street Focused Growth Overlay) Zoning District. Per Zoning Code Section 37-30.190, the CR district allows a wide range of commercial retail uses such as retail stores, lodging, commercial recreation, personal services, business services and financial services. Until December 31, 2021, the site was occupied by a furniture store known as Legacy Furniture. The proposed Cannabis Dispensary is considered a retail use. Per Zoning Code Section 37-30.200, Table 37-30.90 and Section 37-40.220, retail uses are typically subject to consideration of an administrative Site Plan Review (SPR) process and would not require a CUP except for a parking reduction that exceeds an administrative level threshold. The request for more than a 30% parking reduction triggers consideration of a CUP by the Planning Commission.

The table below summarizes the square footage of the building by proposed use. (see Exhibits “E” and “L” of CUP 2022-048):

Description (floor plan) Area
(s.f.)
Percent
of Unit
“A”/”B”
Zoning Code
Use Classification
Correlation
Percent
of
Bldg.

Dispensary (Unit “B”)
(lobby, 565 s.f.)
6,543 61% (“B”) Retail 32%
Distribution/Fulfillment
(Unit “B”)
2,718 25% (“B”) Warehouse/Distribution 13%
Employee/Common Area
(Unit “B”)
1,488 14% (“B”) Accessory 8%
Furniture Store (Unit “A”) 9,413 100% (“A”) Retail 47%
Total: 20,162 100%
(both)
n/a 100%
As shown above, 79% (32%+47%=79%) of the floor area of the building would be allocated to retail (dispensary and furniture store) and 21% (13%+8%=21%) for distribution/fulfillment and employee/common area, which conforms with the Retail zoning district requirements.

The project site is located in the South Main Street Focused Growth Overlay District (FG-3). Per Page | 4
Zoning Code Section 37-40.200, the purpose of the Focused Growth Overlay District is the following:
(a) Create healthy neighborhood centers where residents of all economic and cultural backgrounds can live, work, walk, shop, exercise, and spend quality time outdoors; (b) Increase pedestrian activity by creating neighborhood centers that are conveniently accessed by public transit;
(c) Provide a mixture of uses to keep the neighborhoods active at all times of the day, not just morning and evening (as in the case of residential zones) or business hours (for commercial zones);
(d) Reduce vehicle trips and traffic by encouraging a mixture of uses and activities in one location;
(e) Encourage creative architecture and public design that communicate a neighborhood's locale, purpose, priorities, and personality to those who use the space; and (f) Create revitalized neighborhoods through infill development and redevelopment activities.

The proposed project substantially complies with the purposes of the FG-3 District through infill development by revitalizing an existing vacant building providing additional retail opportunities.

Per Zoning Code Section 37-40.250, the Mixed Use Development standards shall apply to all development in the Focused Growth Overlay. The primary entrance for the retail furniture use, Unit “A”, will be from South Main Street which will provide eyes to the street as per Zoning Code Section 37-30.280(f)(1). The South Main Street frontage will provide natural surveillance per Zoning Code Section 37-30.280(d) with the placement of windows, doors, and walkways.

The primary entrance for Unit “B” will be from a side entrance which is relatively close to the driveway entrance from South Main Street. The main entrance to the cannabis dispensary and distribution use, Unit “B”, would provide natural surveillance with the placement of windows, doors, and a walkway facing the north elevation. Ancillary storage for the retail use for Unit “B” would be in the rear of the unit and not located within the public view.

The project includes a six (6) foot tall fence along the west and south property lines and maintenance of an existing fence along the north property line to separate the use from adjacent properties. The project includes changes to the exterior building elevations and retention of the existing freestanding sign.

Landscaping:

The project includes landscaping along the South Main Street frontage and within the parking lot area. Per the project plans, 6,323 square-feet of the project site (14%) and 887 square-feet of the parking area (6%) would be landscaped, which exceeds the minimum Zoning Code requirements of 10% and 5% respectively. The applicant is requesting approval of Alternative Means of Compliance for landscaping pursuant to Zoning Code Section 37-50.690(i), wherein enhanced landscaping would be installed along the South Main Street frontage where visible to the public in lieu of the required property line and parking lot planters pursuant to Zoning Code Section 37- Page | 5

50.690(g)(1)(B) and (g)(4). Alternative Means of Compliance for Landscaping requires enhanced landscaping (trees, shrubs, and groundcover) to be installed along the South Main Street frontage, which will achieve results comparable to those achieved through strict interpretation of the Zoning Code as required per Zoning Code Sections 37-50.690(g)(1)(B) and (g)(4). Landscape and irrigation plans (see Exhibit “M” of CUP 2022-048) are compliant with a condition in CUP 2022- 048 that the proposed walkway from South Main Street to the main entrance of Unit “A” does not exceed four-feet (4’) in width to minimize hardscape along the public frontage.

Recycle/Trash Exception:

The recycling and solid waste facility is proposed to be located in the rear of the building in a secure 283 square-foot area, which requires consideration of an exception. The facility substantially complies with Zoning Code Section 37-30.280(t) because its location will be convenient for commercial users and associated odors and noise will not adversely impact nearby residential and commercial uses. On June 15, 2023, the City’s recycling and solid waste provider Republic Services reviewed the proposed design and stated that it meets their service requirements.

Pursuant to Zoning Code Section 37-50.200(d), the Conditional Use Permit would authorize an exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure per Exhibit “E” of CUP 2022-048 (Proposed Floor Plan). Prior to the issuance of any building permit, proposed occupancy of Unit “A” and/or any additional changes in the use of the shopping center, shall require written confirmation from the City’s solid waste service provider to ensure that the recycling and solid waste provisions of the project will meet the service needs of the service provider.

Off-Street Parking Reduction
The project plans indicate the provision of 40 off-street parking spaces, including two (2) accessible spaces. Per Zoning Code Section 37-50.360, Table 37-50.100, a minimum of 81 offstreet parking spaces are required for the proposed shopping center (20,146/250 = 81). Due to the shortfall of parking, approval of the project requires consideration of a 41-space (51%) Parking Reduction. Planning Commission consideration is required for Parking Reductions exceeding 30%. In order to approve a Parking Reduction any one of the four (4) findings stated in Zoning Code Section 37-50.370(a)(1 – 4) need to be established. (1) Parking and loading requirements for an existing building(s), due to the exceptional shape or size of the site or other unusual site conditions, are burdensome to the point where they prevent a reasonable range of uses similar to other properties in the same zoning district;
(2) The use or activity is participating in a facilities trip reduction plan in accordance with Section 37-50.330: Vehicle trip reduction;
(3) Multiple uses with different peak parking hours are sharing the same parking and loading spaces; or
(4) Survey or other data exists which supports a reduction in parking and loading spaces for Page | 6
uses which, by their nature, are not likely to be converted to another use with greater parking requirements.”
The Applicant is requesting a Parking Reduction per Section 37-50.370(a)(4), which states:
(4) Survey or other data exists which supports a reduction in parking and loading spaces for uses which, by their nature, are not likely to be converted to another use with greater parking requirements.

The Applicant has submitted a traffic demand study entitled “CannaCruz Salinas Parking Demand Study dated February 9, 2024” (attached with the Staff Report and shown as Exhibit “L” of CUP 2022-048), which describes the proposed shopping center as follows:

1. 5,726 square-foot cannabis dispensary;

2. 2,387 square-foot distribution area;

3. 2,660 square-foot employee area; and

4. 9,373 square-foot furniture store.

Per Page 3 of the study, the Applicant states that due to a specific parking rate for cannabis dispensary and furniture store uses in the Zoning Code, that if the specific uses were broken down, then only 39 off-street parking spaces would be required. This is less than the 40 proposed on-site spaces. Page 4 of the study cites parking demand at existing cannabis dispensaries located in Aptos, Moss Landing, Prunedale, and Salinas. On Page 11, using the weighted average peak parking demand rate calculations for the cited dispensaries, the project is estimated to generate a peak parking demand of 37 off-street parking spaces, which is within the proposed 40 spaces. The 16 square-feet difference between the project plans and the Parking Demand Study is for common area such as walkways, which will not have impact on the requirement for off-street parking. The application materials indicate that the project would include 20 employees, with a maximum of 10 on-site employees at one time (see attached “CannaCruz Salinas Parking Demand Study dated February 9, 2024”).

The proposed CUP 2022-048 must be approved in order to allow for a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution in Unit “B” for the related amendment to Commercial Cannabis Permit 2023-003 to be considered. This is because the requested 51% Parking Reduction must be approved.

April 3, 2024, Planning Commission Meeting
On April 3, 2024, the Planning Commission considered CUP 2022-048. On April 3, 2024, the Planning Commission denied CannaCruz’s application for CUP 2022-048. Planning Commissioners expressed concern that the amendment to CCP 2023-007 should be considered concurrently with CUP 2022-048. Planning Commissioners also commented that consideration of amendments to CCP 2023-007 should be deferred to the City Council as a policy consideration.

In a letter dated April 17, 2024, CannaCruz appealed the Planning Commission’s April 3, 2024, decision to deny CannaCruz’s application for a Conditional Use Permit (CUP 2022-048). (A copy of CannaCruz’s April 17, 2024, letter is attached to this report for reference.) The appeal was Page | 7
originally scheduled for City Council consideration on June 11, 2024, in order to meet the sixtyday period required by Salinas Municipal Code section 37-60.1300; however, CannaCruz agreed to continue the appeal before the Salinas City Council to June 18, 2024. (A copy of CannaCruz’s May 21, 2024, email agreeing to continue the appeal to June 18, 2024, is attached to this report for reference.)
Police Department Considerations
The Salinas Police Department issued three memoranda related to CannaCruz’s Amendment Application: February 26, 2024; March 16, 2024; and March 19, 2024. (The Police Department memoranda are attached to this report for reference.)
The March 16, 2024, Memorandum addressed the proposed parking reduction and proposed relocation of CannaCruz to 1228 South Main Street and concluded there are “no issues with the parking reduction or relocation of the dispensary.” The March 16, 2024, Memorandum further concluded that “[a]lthough the subject site is located adjacent to a residential areas, it is the opinion of the Chief of Police that the operation of a Commercial Cannabis business in such location would not tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential units as stipulated by Municipal Code Section 5-07.27(d).” Release of the March 16, 2024, Memorandum was an administrative error:

The Memorandum was not a final draft intended for distribution.

The March 19, 2024, Memorandum replaced the March 16, 2024, Memorandum and addressed the proposed parking reduction and relocation of CannaCruz to 1228 South Main Street location and concluded that there “are no issues with the parking reduction proposed by the Conditional Use Permit or relocation of the dispensary.” (emphasis in original) The March 19, 2024, Memorandum additionally, however, raised concerns with traffic volumes and a nearby intersection and driveway location which has had approximately eighteen traffic collisions, one being fatal. The March 19, 2024, Memorandum also raised concerns with criminal activity at other cannabis dispensaries in Salinas and elsewhere in Monterey County. With respect to the proposed location’s adjacency to a residential use, the March 19. 2924, Memorandum concludes that in “the opinion of the Chief of Police…the operation of the Commercial Cannabis business in such location would tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential units as stipulated by Municipal Code Section 5-07.27(d).” The Police Department has identified issues related with the proposed related CCP 2023-007, which are discussed in the Staff Report for the Major Amendment to the Commercial Cannabis Permit.

Time Consideration:

The project was deemed complete on November 18, 2023. Originally, final action was required by January 17, 2024, pursuant to CEQA Section 15107. As stated above, on December 29, 2023, the Applicant requested a 90-day time extension pursuant to Government Code Section 65957.

Per Government Code Section 65957, the new deadline for action was April 16, 2024. On April 3, 2024, the Salinas Planning Commission denied CUP 2022-048. On April 12, 2024, the Applicant appealed the Planning Commission’s denial of CUP 2022-048 to the Salinas City Page | 8
Council. On May 14, 2024, the Salinas Commercial Cannabis Permit Selection Committee denied CCP 2023-007. On May 16, 2024, the Applicant appealed the Salinas Commercial Cannabis Permit Selection Committee denial of CCP 2023-007 to the Salinas Planning Commission. On May 21, 2024, pursuant to Zoning Code Section 37-60.1300(a), the Applicant requested an extension to the hearing date for the appeal to the City Council to allow for both CUP 2022-048 and CCP 2023-007 to be considered on the same City Council hearing date. On June 5, 2024, the Salinas Planning Commission determined to neither affirm, reverse, or modify the Selection Committee’s determination on CCP 2023-007 and referred the Selection Committee’s determination and appeal thereof to the City Council for consideration.

CEQA CONSIDERATION:

Depending on the Council’s action with respect to the above appeal the Council will need to either find the project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15332 (In-fill Development Projects), if approved, or statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15270 (Projects Which are Disapproved), if denied.

If the project is approved, it will need to be determined to be exempt from the California Environmental Quality Act under Section 15332 (In-fill Development Projects) of the CEQA Guidelines. The project site consists of 1.02-acres and is served by existing utilities and public services. Approval of the project would not result in any significant effects relating to traffic, noise, air quality or water quality.

If the project is denied, it will need to be determined to be exempt from the California Environmental Quality Act (CEQA) under Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines. This is because as per this Section, CEQA does not apply to projects which a public agency rejects or disapproves.

Alternatives Available to the Council:

The City Council is asked to consider CannaCruz’s appeal of the Planning Commission’s denial of CUP 2022-048. In doing so, the City Council should consider the information presented in this report and the information presented during the public hearing on this appeal and should then exercise its discretion and render a decision supported by specifically articulated findings.

The City Council has the following alternatives:

1. Grant CannaCruz’s appeal and approve Conditional Use Permit 2022-048.

2. Deny CannaCruz’s appeal and deny Conditional Use Permit 2022-048.

FINDINGS:

The City Council must establish findings to approve or deny the Conditional Use Permit and Commercial Cannabis Permit applications to change the use from Retail to a proposed two-tenant Page | 9
Shopping Center within an existing 20,162 square-foot building at 1228 South Main Street that includes a 10,749 square-foot Cannabis Dispensary with Accessory Delivery and Distribution retail use in the rear portion of the building, and to amend Commercial Cannabis Permit 2023-003 to relocate an existing Cannabis Dispensary with accessory Delivery and Distribution from 1156 Abbott Street to the subject site.

The City Council must approve the proposed Conditional Use Permit 2022-048 (CUP 2022-048) allowing for a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution in Unit B for the related amendment to Commercial Cannabis Permit 2023-003 (CCP 2023-007) to be considered. Findings for the City Council to consider in making a determination on CUP 2022-048, including a 41-space (51%) Parking Reduction, an exception to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for landscaping, include the following:
a. The proposed location of the use and structure is in accordance with the objectives of the Salinas General Plan, the Zoning Code and the purposes of the district in which the site is located;
b. The use and structure will comply with the provisions of the Salinas Zoning Code, including the specific conditions required for the proposed use and structure; and c. The proposed location of the conditional use and the proposed conditions under which it would be operated or maintained are consistent with the Salinas General Plan and will not be detrimental to the public health, safety, or welfare of persons residing or working in or adjacent to the neighborhood of such use, nor detrimental to properties or improvements in the vicinity or the general welfare of the City of Salinas.

STRATEGIC PLAN INITIATIVE:

If approved, this action supports the Council’s Strategic Goals of Economic Development through the retention and addition of retail services and jobs.

DEPARTMENTAL COORDINATION:

The proposed project has been discussed among the Current Planning and Permit Services Divisions of the Community Development Department, the City Attorney, Police Department, the Public Works Department, and the Fire Department.

FISCAL AND SUSTAINABILITY IMPACT:

No significant impacts to the City’s General Fund are anticipated with this application.

ATTACHMENTS:

Draft Conditional Use Permit 2022-048 approval document with the following exhibits:

Exhibit "A" Vicinity Map
Page | 10
Exhibit "B" Site Map (Sheet A0.0)
Exhibit "C" Site Plan (Sheet A1.0)
Exhibit "D" Existing Floor Plan (Sheet A2.0)
Exhibit "E" Proposed Floor Plan (Sheet A2.1)
Exhibit “F” Exterior Elevations (Sheet A4.0)
Exhibit “G” Landscape, Fencing, and Bicycle Parking Details (Sheet A9.0) Exhibit “H” Conceptual Landscape Plans (Sheet L1.0)
Exhibit "I" Engineer’s Report dated March 6, 2024
Exhibit "J" Police Department comments dated March 19, 2024 Exhibit “K” Permit Center comments dated February 28, 2024 Exhibit "L" CannaCruz Salinas Parking Demand Study dated February 9, 2024 Exhibit “M” Alternative Means of Compliance for Landscaping Draft Commercial Cannabis Permit 2023-007 approval document CannaCruz Salinas Parking Demand Study from Rick Engineering Company dated February 9, 2024
December 15, 2021, Zoning Information Letter from Adam Garrett to Grant Palmer Commercial Cannabis Permit 2023-003
Ordinance No. 2566 (N.C.S.) and Report to the City Council dated January 26, 2016 Ordinance No. 2597 (N.C.S.) and Report to the City Council dated August 15, 2017 Ordinance No. 2598 (N.C.S.) and Report to the City Council dated September 5, 2017 Ordinance No. 2600 (N.C.S.) and Report to the City Council dated November 7, 2017 June 5, 2024 Planning Commission Staff Report without exhibits June 5, 2024 Planning Commission unofficial minutes
June 4, 2024 Letter from JRG Attorneys at Law appealing Planning Commission denial of CCP 2023-007
June 4, 2024 Letter from Walker+Reed Attorneys at Law opposing CCP 2023-007 May 21, 2024, Email from Trinh Retterer to Christopher Callihan re CCP 2023-007 Amendment Appeal and extending appeal deadline for CUP 2022-048
May 16, 2024, Email (with attached Development Review Application) from Trinh Retterer to City Attorney re CCP 2023-007 Amendment Appeal
May 15, 2024, Letter from City Attorney to Trinh Retterer and Peter D. Brazil re Commercial Cannabis Permit (CCP 2023-007) Major Amendment: Selection Committee Review; Notice of Denial
May 7, 2024, Letter from City Attorney to Trinh Retterer re Commercial Cannabis Permit (CCP 2023-007) Major Amendment
Request for Amendment to Commercial Cannabis Permit (CCP) dated April 29, 2024 (with attachments)
April 17, 2024, Letter from Peter D. Brazil to Lisa Brinton re Conditional Use Permit CUP 2022- 048 Appeal of Planning Commission Decision
April 12, 2024, Letter of Appeal of Planning Commission denial of CUP 2022-048 from JRG Attorneys at Law
April 3, 2024 Planning Commission Staff Report without exhibits April 3, 2024 Planning Commission Official Minutes
Planning Commission Resolution 2024-04
April 3, 2024 CannaCruz CUP 2022-048 Letter to Planning Commission April 2, 2024 Walker+Reed Attorneys at Law Letter opposing CUP 2022-048 and CCP 2023-007 Page | 11
Comments from the Salinas Police Department dated February 26, 2024, March 16, 2024, and March 19, 2024
December 29, 2024 Letter from JRG Attorneys at Law requesting extension to the Permit Streamlining Act for CUP 2022-048
June 9, 2024 Letter of Opposition from Charlie Sammut
Public Correspondence concerning proposed projects dated March 26, 2024 to April 1, 2024 Correspondence from Elli’s Restaurant dated January 12 and 16, 2024 Correspondence from Dr. Ronconi dated December 4, 2023 to January 11, 2024 Sensitive Use for Cannabis Map for 1228 South Main Street CannaCruz Employee Handbook
CannaCruz Operations Manual for Salinas
CannaCruz Salinas Pro Forma
CannaCruz Salinas Security Plan
Cc: CannaCruz, Inc., Applicant
Trinh Retterer and Peter D. Brazil, JRG Attorneys at Law Samuel and Marguerite Kobrinsky, Trustees, Property Owner Other Interested Parties
I:\ComDev\Planning Share Space\Conditional Use Permits\2022 CUP's\CUP 2022-048 - 1228 S Main St\06-18-24 CC Materials\06-18-24 CUP 2022-048 CC Appeal Staff Report.docx

Page 1 of 15 ends

When recorded, return to:

CITY OF SALINAS
Community Development Department
65 West Alisal Street, Salinas, CA 93901
Attn: Thomas Wiles, Senior Planner
SPACE ABOVE FOR RECORDER’S USE ONLY
_____________________________________________________________________________________________________________ Title of Document
CONDITIONAL USE PERMIT NO. 2022-048
(Related to CCP 2023-007)
City of Salinas
Community Development Department
WHEREAS, on March 20, 2024, the Salinas Planning Commission, at the request of the Applicant, Canna Cruz Inc., held a duly noticed special public hearing to consider Conditional Use Permit 2022-048; request to change the use from Retail to a proposed two-tenant Shopping Center within an existing 20,162 square-foot building; and
WHEREAS, on March 20, 2024, the Salinas Planning Commission continued this item to the April 3, 2024 public hearing; and
WHEREAS, the two shopping center uses include a 9,413 square-foot furniture store retail use in the front portion of the building and a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution retail use in the rear portion; and WHEREAS, the proposed shopping center includes 40 off-street parking spaces, which is below the required 81 off street parking spaces by the Zoning Code, resulting in a request for a 41- space (51%) Parking Reduction per Zoning Code Table 37-50.100; and WHEREAS, CUP 2022-048 includes a requested exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for landscaping; and WHEREAS, applicant also requests to amend Commercial Cannabis Permit 2023-003 to allow the relocation of an existing Cannabis Dispensary with accessory Delivery and Distribution from 1156 Abbott Street to the subject site located at 1228 South Main Street within proximity of sensitive use buffers (CCP 2023-007); and
WHEREAS, on April 3, 2024, the Salinas Planning Commission denied CUP 2022-048 pursuant to Planning Commission Resolution 2024-04; and

Page 2 of 15 ends

WHEREAS, on April 12, 2024, the Applicant appealed the Salinas Planning Commission denial of CUP 2022-048 to the Salinas City Council; and WHEREAS, on May 21, 2014, pursuant to Zoning Code Section 37-60.1300(a), the Applicant requested an extension to the hearing date for the appeal to the City Council to allow for both CUP 2022-048 and related CCP 2023-007 to be considered on the same City Council hearing date
WHEREAS, on June 18, 2024, the City Council weighed the evidence presented at said public hearing, including the Staff Report which is on file at the Community Development Department together with the record of environmental review; and made the following findings; a. The proposed location of the use and structure is in accord with the objectives of the Salinas Zoning Code and the purposes of the zoning district in which the site is located; b. The use and structure will comply with use and development standards of the Salinas Zoning Code, including the specific conditions required for the proposed use and structure;
c. The location of the use and structure and the proposed conditions under which it would be operated and maintained will be consistent with the Salinas General Plan and will not be detrimental to the public health, safety, or welfare of persons residing or working in or adjacent to the neighborhood of such use, nor detrimental to properties or improvements in the vicinity or the general welfare of the City of Salinas; and d. This conditional use has been evaluated in accordance with the California Environmental Quality Act, as amended; and that the Salinas Planning Commission has reviewed and considered an exemption from the California Environmental Quality Act.

NOW, THEREFORE, the Salinas City Council hereby grants and issues Conditional Use Permit No. 2022-048 pursuant to Article VI, Division 8: Conditional Use Permits, of Chapter 37 of the Salinas City Code and upon the following terms and conditions and not otherwise, to wit:

ISSUED TO: Canna Cruz, Inc.

PROPERTY OWNER: Samuel & Marguerite Kobrinsky, Trustees FOR USE: Change the use from Retail to a proposed two-tenant Shopping Center within an existing 20,162 square-foot
building with a 9,413 square-foot furniture store retail use in the front portion and a 10,749 square-foot Cannabis
Dispensary with accessory Delivery and Distribution retail use in the rear portion under Commercial Cannabis Permit 2023-007 (CCP 2023-007).

ON PROPERTY LOCATED AT: 1228 South Main Street

Page 3 of 15 ends

ASSESSOR'S PARCEL NO.: 016-161-052-000
ZONING DISTRICT: Commercial Retail - South Main Street Focused Growth Overlay District (CR–FG-3)
ENVIRONMENTAL REVIEW ACTION & DATE: Exempt from the California Environmental Quality Act (CEQA) under Section 15332 (In-Fill Development Projects) on June 18, 2024.

EXPIRATION DATE: None, once properly established, unless the subject retail use (Cannabis Dispensary with accessory Delivery and Distribution and Furniture Store) ceases operation for a continuous period of six (6) months or more.

RIGHT TO OPERATE/DEVELOP

1. The Permittee shall have the right to change the use from Retail to a proposed twotenant Shopping Center within an existing 20,162 square-foot building with a 9,413 square-foot furniture store retail use in the front portion and a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution retail use under CCP 2023-007 in the rear portion. This CUP includes a 41-space (51%) Parking Reduction per Zoning Code Table 37-50.100, exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for landscaping, on the above-described property in accordance with the following exhibits incorporated herein by reference and made a part of this Permit:

LIMITATIONS ON USE

2. Hours of operation for the dispensary shall be limited to 8:30 a.m. to 9:00 p.m.

Page 4 of 15 ends

Monday through Sunday. Hours of operation for the office, storage, and packaging areas shall be limited to 9:00 p.m. to 12:00 a.m. Monday through Sunday.

3. If the subject shopping center retail use (Cannabis Dispensary with accessory Delivery and Distribution and Furniture Store) ceases operation for a continuous period of six (6) months or more, this Conditional Use Permit shall become null and void.

4. The Cannabis Dispensary with accessory Delivery and Distribution use shall comply with the terms and conditions of related Commercial Cannabis Permit 2023-007.

5. A minimum six (6) foot tall fence shall be constructed along the north, west and south property lines, except for 15-feet from the front yard property line along the South Main Street frontage, where with maximum allowed height shall be three (3) feet.

6. Retail sales floor area shall not comprise less than 51% (5,495 square-feet) of the 10,773 square-foot Cannabis Dispensary with accessory Delivery and Distribution (Unit “B”).

7. To minimize hardscape, the walkway from South Main Street sidewalk into the front entrance of Unit “A” not exceed four-feet (4’) in width.

8. Unit “A” shall not be occupied until a building permit for a Tenant Improvement permit is processed and finaled. This shall be noted on the building permit plans (see Exhibit “K”).

NPDES REQUIREMENTS

9. The development shall conform to all National Pollutant Discharge Elimination System (NPDES) and Low Impact Development (LID) requirements and standards in effect and required by the City Engineer when building permits are issued. The project will require a Storm Water Control Plan (SWCP) that identifies Stormwater Development Standards (SWDS) Compliance to be incorporated into the project (see attached Exhibit “I”).

FIRE PROTECTION REQUIREMENTS

10. All applicable requirements of the Salinas Fire Department including those items identified in Titles 19, 24 and 25 of the California Administrative Code must be met and may include, but not be limited to, provisions for fire alarm systems, fire extinguishers, sprinkler systems, emergency vehicle access and installation of fire hydrants.

Page 5 of 15 ends

11. If required, all fire sprinkler apparatus shall be incorporated into the overall site plan and building design. Such apparatus shall be located within building interiors, garages, stairwells, utility areas, trash areas and/or other areas substantially out of the public view. Fire Department connection pipes shall be painted to match the adjacent building.

CRIME PREVENTION REQUIREMENTS

12. Prior to the issuance of any building permit, the applicant shall consult with the Police Department regarding crime prevention and security. Written confirmation from the Police Department demonstrating compliance with this condition shall be submitted to the Community Development Department prior to issuance of a building permit. Operation of the 10,749 square-foot retail use (Cannabis Dispensary with accessory Delivery and Distribution) shall comply with the attached Police Department comments dated March 19, 2024 (see Exhibit “J”), with all terms and conditions of related CCP 2023-007, and/or any future renewed and/or approved Commercial Cannabis Permit.

PARKING REQUIREMENTS

13. A minimum of 40 on-site parking spaces shall be provided including two (2) onsite parking space designated for people with disabilities in accordance with Article V, Division 2: Parking, Loading, and Outdoor Lighting. Bicycle parking (rack) shall be provided in accordance with Zoning Code Section 37-50.400 and Exhibit “G”. Pursuant to Zoning Code Section 37-50.370(a)(4), this Conditional Use Permit authorizes a 41-space 51-percent parking reduction as identified in Exhibit “L”, because survey or other data exists which supports a reduction in parking and loading spaces for uses which, by their nature, are not likely to be converted to another use with greater parking requirements. Any future uses with a greater offstreet parking demand than analyzed in the parking survey described in Exhibit “L” shall require an Amendment to this Conditional Use Permit.

14. All off-street parking and loading areas shall be graded, paved, drained, landscaped, striped, and maintained in accordance with Article V, Division 2: Parking, Loading, and Outdoor Lighting of the Salinas City Code.

SIGNS

15. A Master Sign Plan and a Sign Permit issued in accordance with Article V, Division 3: Signs of the Salinas City Code, shall be required for all signs. All signs shall be in compliance with the Master Sign Plan.

16. No canvas signs, banners, pennants, flags, streamers, balloons or other temporary or wind signs; no mobile, A-frame, or portable signs; no roof or canopy signs extending above a building roof; no signs that resemble any official marker erected

Page 6 of 15 ends

by the city, state or any governmental agency, or that by reason of position, shape, color or illumination would conflict with the proper functioning of any traffic sign or signal or would be a hazard to vehicular or pedestrian traffic; no signs which produce odor, sound, smoke, fire or other such emissions; and no animated, flashing, moving or rotating signs shall be permitted unless permitted in accordance with Article 5, Division 3: Signs of the Salinas Zoning Code, as may be amended from time to time.

OUTDOOR LIGHTING

17. Any new exterior lighting may be installed in accordance with Zoning Code Section 37-50.480 under the following limitations:
a. No floodlighting will be allowed on any structure.
b. Parking lot lighting shall be shielded to confine light spread to within the site boundaries and shall not exceed 25 feet in height. c. Prior to the issuance of a Building Permit, the applicant shall submit a detailed lighting plan for review and approval by the Community Development Department.

BUILDING MATERIALS AND COLORS

18. Prior to the issuance of a building permit, the materials and colors per zoning code requirements shall be identified on the building permit plans including a separate colors and materials page.

LANDSCAPING

19. Landscaping shall comply with the requirements of the State of California “Model Water Efficient Landscape Ordinance” (AB 1881) and Article V, Division 4 of the Salinas Zoning Code. Prior to the issuance of a Building Permit, the applicant shall submit detailed final landscape and irrigation plans for review and approval by the Community Development Department. The landscape and irrigation plans shall include the following:
a. Per Zoning Code Section 37-20(b)(4), landscape areas shall incorporate plantings using a three-tier system: 1) grasses and groundcovers, 2) shrubs, and 3) trees.
b. Landscape plans shall show the location, type, size, and names of all plantings: ground covers (1-gallon minimum), shrubs (5-gallon minimum), and trees (15-gallon minimum).
c. Irrigation plans shall show size and location of irrigation pipe, heads, bibs, and backflow devices.

Page 7 of 15 ends

d. Plants shall be maintained and trimmed to three feet in height within the Areas of Unrestricted Visibility triangles at the driveways (15 feet) and street corners (25 feet).
e. All landscape islands within the parking area shall include a minimum of one 15-gallon tree.
f. Planters adjacent to the buildings shall be landscaped with shrubs of a minimum of 5-gallon size, 1-gallon containers for mass planting, and groundcover.
g. Exposed soil shall be landscaped with drought resistant groundcover that will propagate and take root quickly. A minimum two-inch layer of mulch shall be applied except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated.
h. Turf shall be limited to 25% of the total landscaping area. No turf shall be permitted in areas with a dimension of less than eight (8) feet, or on slopes exceeding ten-percent.
i. Alternative Means of Compliance for Landscaping shall be approved per Zoning Code Section 37-50.690(i) as shown on Exhibit “M” because enhanced landscaping including, but not limited to trees, shrubs, mounding, decorative boulders, and groundcover) shall be installed along the South Main Street frontage shall achieve results comparable to those achieved through strict interpretation the Zoning Code as required per Zoning Code Sections 37-50.690(C)(3) and (4). j. To minimize hardscape, the landscape and irrigation plans shall show that the walkway from South Main Street sidewalk into the main entrance of Unit “A” not to exceed four-feet (4’) in width. k. Plant material shall conform to the following spacing standards:
i. A minimum of thirty feet from the property corner at a street intersection to the center of the first tree or large shrub; ii. A minimum of fifteen feet between center of trees and ten feet between large shrubs to light standards;
iii. A minimum of ten feet between center of trees or large shrubs and fire hydrants;
iv. A minimum of fifteen feet from the intersection of a driveway (for commercial, mixed use, or public/semipublic and industrial uses) with a street right-of-way to the center of any tree having a diameter larger than eighteen inches at maturity or large shrub

Page 8 of 15 ends

and a minimum of ten feet for residential uses.

RECYCLING AND SOLID WASTE DISPOSAL AREA

20. Pursuant to Zoning Code Section 37-50.200(d), this Permit authorizes an exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure as per Exhibit “E” (Proposed Floor Plan). On June 15, 2023, the City’s recycling and solid waste provider Republic Services reviewed the proposed facility and stated that it meets their service requirements. Prior to the issuance of a building permit, future occupancy of Unit “A” and/or any additional changes in the use of the shopping center, shall require written confirmation from the City’s solid waste service provider to ensure that the recycling and solid waste provisions of the project will meet the service needs of the service provider.

MAINTENANCE

21. All parking areas, driveways, other paved surfaces, accessways and grounds shall be regularly maintained and kept free of weeds, litter, and debris. All traffic signs and pavement markings shall be clear and legible at all times. All landscaped areas shall be maintained free of weeds, trash, and debris, and all plant material shall be continuously maintained in a healthy, growing condition. All exterior building and wall surfaces shall be regularly maintained, and any damage caused by weathering, vandalism, or other factors shall be repaired in conformance with the terms and conditions of this Permit.

22. The Applicant, or successor-in-interest shall eradicate graffiti painted or marked on the facility within seventy-two (72) hours of occurrence pursuant to Municipal Code Section 5-03.19(a)(4).

PUBLIC IMPROVEMENTS

23. All existing damaged and hazardous sidewalks, and unused driveways shall be reconstructed to City standards prior to issuance of a Certificate of Occupancy.

24. Public improvements to serve the development shall be reviewed and approved by the City Engineer and shall be installed in accordance with City standards. All utilities shall be installed underground with details to be included on the final improvement plans.

UTILITIES/EQUIPMENT SCREENING

25. All new utility lines shall be placed underground and all new power transformers shall be placed underground where permitted by the utility company. Where transformers must be pad-mounted above ground, they shall be located away from

Page 9 of 15 ends

the general public view or shall be effectively concealed by landscaping or a screen fence of a design approved by the utility company and the City Planner.

26. All new mechanical equipment and appurtenances (i.e. gas, water meters, electrical boxes, HVAC systems, refrigeration equipment, etc.), building or ground mounted, shall be screened from public view and adjacent properties. Roof vents shall be painted to blend with roof materials. Details shall be shown on the final construction and/or land plans and are subject to the approval of the City Planner.

PERMIT NOT TO SUPERSEDE OTHER REQUIRED LICENSING OR PERMITS

27. The issuance of this Permit shall not relieve the Permittee of any requirement to obtain permits or licensing from any county, regional, state or federal agencies. If applicable, a City Business License shall be obtained prior to commencement of use.

28. This Permit may be subject to water and sanitary sewer allocations. The Permittee will proceed at their own risk as water and sanitary sewer allocation may not be available at the time requested.

MODIFICATION OF APPROVED USE AND PLANS

29. Any modification to the terms and conditions of this Permit are subject to the issuance of a new Permit. The City Planner may approve minor modifications to this Permit if the City Planner finds the modification to be in substantial compliance with the original approval.

VIOLATION; REVOCATION

30. Use of the property shall be conducted in such a way that it does not constitute a nuisance to the use and enjoyment of surrounding properties or the City. Any permittee, person, firm, corporation, whether as principal, agent, employee or otherwise, violating, causing or maintaining the violation of any of the provision of this Permit shall be guilty of a misdemeanor or an infraction, as charged.

Alternatively, any violation of this Permit may be prosecuted administratively pursuant to the City’s Administrative Remedies Ordinance and/or other applicable laws, regulations or codes. Upon determination by the City Planner that there are reasonable grounds for revocation of this Permit, a revocation hearing shall be set to be heard before the Salinas Planning Commission in accordance with Article VI, Division 18: Enforcement and Penalties of the Salinas Zoning Code or such codes as may be subsequently adopted.

SUBSTANTIAL ACTION TIME LIMIT

31. This Permit shall expire one year after its effective date unless:

Page 10 of 15 ends

a. A building permit has been issued and construction diligently pursued; b. A certificate of occupancy has been issued;
c. The use is established in conformance with the provisions of the Zoning Code; or
d. The City Planner determines that substantial action has commenced to carry out the terms and intent of the Conditional Use Permit.

PERMIT VALIDATION

32. Pursuant to Zoning Code Section 37-60.530, this Permit shall be null and void and all terms and conditions shall have no force or effect unless this Permit is signed by the Permittee(s) and returned to City of Salinas Community Development Department within 90 days of approval. It is the applicant's responsibility to track the 90-day expiration date. No notice will be sent.

STANDARD CONDITIONS

33. Pursuant to Salinas City Code Section 1-8.1: Civil action enforcement, and Section 1-8.2: Liability for costs, permittee shall reimburse the City of Salinas for all costs and expenses (including but not limited to fees and charges of architects, engineers, attorneys, and other professionals, and court costs) incurred by the City in enforcing the provisions of this Permit.

34. The applicant(s) shall defend, indemnify, and hold harmless the City of Salinas or any of its boards, commissions, agents, officers, and employees from any claim, action or proceeding against the City, its boards, commissions, agents, officers, or employees to attack, set aside, void, or annul, the approval of this project/use. For Tentative Maps, this shall also apply when such claim or action is brought within the time period provided for in applicable state and/or local statutes. The City shall promptly notify the applicant(s) of any such claim, action, or proceeding. The City shall cooperate in the defense. Nothing contained in this condition shall prohibit the City from participation in a defense of any claim, action, or proceeding if the City bears its own attorney's fees and costs, and the City defends the action in good faith.

35. Notwithstanding any of the provisions in this permit, all improvements and uses shall comply with all other ordinances and regulations of the City of Salinas and all local, state and federal laws and regulations.

36. No further development other than that shown on this permit or attached exhibits shall be allowed unless or until an amendment to this permit has been approved.

Requests for a minor modification of an approved permit may be granted by the City Planner provided the modification is substantially in compliance with the original approval and conditions.

Page 11 of 15 ends

NOTICE OF CHALLENGE LIMITATIONS

37. Code of Civil Procedure Section 1094.6 requires all Court challenges to the decision to grant this Permit be initiated within 90 days of the final decision of the City in this matter.

EXECUTIONS
THIS CONDITIONAL USE PERMIT was approved by action of the Salinas City Council on June 18, 2024, and shall become effective immediately:

Effective Date:_ June 18, 2024 ____________________________________ Courtney Grossman
Planning Manager, City of Salinas
(Signatures Listed Below on Pages 10 through 14 Must Be Notarized)

Page 12 of 15 ends

THIS CONDITIONAL USE PERMIT is hereby accepted upon the express terms and conditions hereof, and the undersigned Permittee agrees to strictly conform to and comply with each and all of this Permit's terms and conditions.

Dated:_______________ ___________________________
Bradford Palmer
Permittee
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 MONTEREY
On __________________ 202__, before me, _______________________, Notary Public, personally appeared _______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________

Page 13 of 15 ends

Dated:_______________ ___________________________
Grant Palmer
Permittee
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

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________

Page 14 of 15 ends

CONSENT is hereby granted to the Permittee to carry out the terms and conditions of this Conditional Use Permit.

Dated:_______________ ___________________________
Samuel Kobrinsky, Trustee
Property Owner
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

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________

Page 15 of 15 ends

Dated:_______________ ___________________________
Marguerite Kobrinsky, Trustee
Property Owner
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

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________
I:\ComDev\Planning Share Space\Conditional Use Permits\2022 CUP's\CUP 2022-048 - 1228 S Main St\06-18-24 CC Materials\CUP 2022-048 - 06-18-24 Draft CC version.docx

Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JUNE 18, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: COURTNEY GROSSMAN, PLANNING MANAGER
BY: THOMAS WILES, SENIOR PLANNER
TITLE: MAJOR AMENDMENT TO COMMERCIAL CANNABIS PERMIT
2023-007; APPEAL ON REFERRAL FROM PLANNING

COMMISSION
RECOMMENDED MOTION:

Consider CannaCruz, Inc.’s appeal of the Selection Committee’s denial on referral from the Planning Commission for a major amendment to Commercial Cannabis Permit 2023-007 to relocate an existing Cannabis Dispensary with accessory Delivery and Distribution from 1156 Abbott Street to the subject site located at 1228 South Main Street within proximity of sensitive use buffers.

EXECUTIVE SUMMARY:

On April 29, 2024, CannaCruz, Inc. (“CannaCruz”) submitted an application for a major amendment (“Amendment Application”) to Commercial Cannabis Permit 2023-007 (“CCP 2023- 007”) to relocate an existing Cannabis Dispensary with accessory Delivery and Distribution from 1156 Abbott Street to 1228 South Main Street. Following the City Attorney’s determination that the Amendment Application contained all the required information, the Amendment Application was forwarded to the Selection Committee appointed by the Interim City Manager for their review in accordance with Article VII of Chapter 5 of the Salinas Municipal Code. On May 14, 2024, the Selection Committee met to consider the Amendment Application and at that meeting denied the Amendment Application. On May 16, 2024, CannaCruz submitted the present appeal of the Selection Committee’s denial of the Amendment Application. The City Council must approve the proposed Conditional Use Permit 2022-048 (CUP 2022-048) allowing for a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution in Unit “B” for the related amendment to Commercial Cannabis Permit 2023-003 (CCP 2023-007) to be considered.

DISCUSSION:

On January 26, 2016, the Salinas City Council adopted Ordinance No. 2566 allowing for the establishment, operation, and regulation of commercial cannabis businesses for the dispensing, Page | 2
distribution, cultivation, and manufacturing of medical marijuana and medical marijuana products. (A copy of the City Council’s January 26, 2016, Report to the City Council and of Ordinance No. 2566 (N.C.S.) are attached to this report for reference. Ordinance No. 2566 repealed a prohibition on the establishment and operation of medical marijuana cultivation facilities and manufacturing facilities, allowed for a limited number of commercial cannabis businesses to open and to operate, provided for a competitive process for the limited number of commercial cannabis permits, and imposed operating restrictions on such businesses in order to protect neighboring properties and businesses from the negative effects of commercial cannabis businesses and in order to protect the health, safety, an welfare of the general public. In adopting the ordinance, the City Council found that reasonable regulations on commercial cannabis businesses were necessary to address the negative impacts and nuisance impacts of such businesses. At the time of the City Council’s adoption of Ordinance No. 2566, one medical marijuana edible manufacturing and wholesale distribution facility had begun operating in the city prior to the City’s having established any land use controls or requirements on the operation of such businesses. Included among the regulations in Ordinance No. 2566 were restrictions on the proximity of commercial cannabis businesses to sensitive uses. The City Council also found that without regulations on the operation of commercial cannabis businesses, there would be an immediate threat to the public health, safety, and welfare from the establishment of commercial cannabis businesses in the City.

The City Council subsequently amended Ordinance No. 2566 (the City’s commercial cannabis business regulations) on three occasions:
a. Ordinance No. 2597 (N.C.S.) adopted on August 15, 2017, increased the maximum number of permits which may be issued in the dispensary, manufacturing, and cultivation categories; provided for an administrative process for cannabis testing facilities; and included administrative revisions to the City’s commercial cannabis regulations to reflect changes in state law and changes in the City’s implementation of the commercial cannabis business regulations. (A copy of Ordinance No. 2597 and the associated Report to the City Council are attached to this report for reference.)
b. Ordinance No. 2598 (N.C.S.) adopted on September 5, 2017, recodified several chapters and articles of the Salinas Municipal Code, including those related to the regulations on commercial cannabis businesses. No changes were made to the content of those provisions outlining the regulations on commercial cannabis businesses. (A copy of Ordinance No. 2598 (N.C.S.) and the associated Report to the City Council are attached to this report for reference.)
c. Ordinance No. 2600 (N.C.S.) adopted on November 29, 2017, updated the regulations on commercial cannabis businesses codified at Article VII of Chapter 5 of the Salinas Municipal Code. Specifically, Ordinance No. 2600 specified that businesses involving adult-use cannabis and cannabis products may operate within the city. Ordinance No. 2600 also clarified the City’s permitting structure for commercial cannabis businesses, clarified the operating requirements of various types of commercial cannabis businesses, established reasonable regulations relating to the growing of cannabis within a private residence for personal use, and included administrative changes to the regulations to reflect changes in state law and in the City’s implementation of the Salinas Municipal Code. (A copy of Page | 3
Ordinance No. 2600 (N.C.S.) and the associated Staff Report to the City Council are attached to this report for reference.)
Commercial Cannabis Permit 2023-007
Note: Analysis of related Conditional Use Permit 2022-048 is stated in a separate City Council Staff Report dated June 18, 2024.

CannaCruz’s Proposed Relocation to 1228 South Main Street In the context of the above-described commercial cannabis regulations, in late 2021, CannaCruz began the process of attempting to relocate from its current location at 1156 Abbott Street to its proposed location at 1228 South Main Street. In response to CannaCruz’s request for zoning information related to the 1228 South Main Street location, in a Zoning Information Letter dated December 15, 2021, the City identified that the proposed location was within 1,000 feet of six sensitive uses identified in the Salinas Municipal Code (section 5-07.27) including four alcoholrelated uses, one smoke shop, and one church. (A copy of the City’s December 15, 2021, letter is attached to this report for reference.) The Zoning Information Letter did not identify the proposed location’s adjacency to a residential use as an issue of concern. The Zoning Information Letter also did not identify approximately nine other alcohol related uses. The following is a list of all of the 15 sensitive uses located within 1,000 feet of the subject property.

1. 72 East San Joaquin Street; religious assembly – Saint Ansgar’s Lutheran Church – 845 feet away;

2. 20 San Miguel Avenue; food and beverage sales with liquor sales – Tokyo Oriental Foods and Gifts – 905 feet away;

3. 1140 South Main Street; food and beverage sales with liquor sales – CVS Pharmacy – 860 feet away;

4. 1150 South Main Street; food and beverage sales with liquor sales – Lucky Supermarket – 640 feet away;

5. 1152 South Main Street; retail sales – smoke and vape shop – Clout Nine Cigar and Vapor – 600 feet away;

6. 1160 South Main Street; restaurant with liquor sales – Round Table Pizza – 490 feet away;

7. 1190 South Main Street; restaurant with liquor sales – Smalley’s Roundup – 350 feet away;

8. 1220 South Main Street; restaurant with liquor sales – Mi Taqueria – 50 feet away;

9. 1237 South Main Street; restaurant with liquor sales – Taqueria Super Pollo – 462 Page | 4
feet away;

10. 1250 South Main Street; restaurant with liquor sales – Elli’s – 20 feet away;

11. 1275 South Main Street; food and beverage sales with liquor sales – Star Market – 438 feet away;

12. 1300 South Main Street; service station with liquor sales – Shell – 456 feet away;

13. 1320 South Main Street; food and beverage sales with liquor sales – Nob Hill Foods – 600 feet away;

14. 1334 South Main Street; restaurant with liquor sales – Guadalajara Grill, LLC – 845 feet away; and

15. 1366 South Main Street; restaurant with liquor sales – Stonies Taphouse & Bistro – 902 feet away
Based on the December 2021 Zoning Information Letter, CannaCruz continued the process of relocating to the proposed location and on August 23, 2022, submitted an application for Conditional Use Permit 2022-048 (CUP 2022-048) to change the use at 1228 South Main Street from Retail to a proposed two-tenant Shopping Center within an existing 20,162 square-foot building. The two tenant uses include a 9,413 square-foot retail furniture store in the front portion (Unit “A”) of the building and a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution retail use in the rear portion (Unit “B”). CUP 2022-048 also includes the allowance of a 41-space (51%) Parking Reduction per Zoning Code Table 37-50.100, exception from the requirements of Zoning Code Section 37-50.200 to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for landscaping Planning Commission consideration is required for Parking Reductions exceeding 30%. On August 24, 2023, an application was submitted for an amendment to their Commercial Cannabis Permit to relocate to the proposed location.

April 3, 2024, Planning Commission Meeting
On April 3, 2024, the Planning Commission considered CUP 2022-048. CCP 2023-007 was also originally scheduled to be considered by the Planning Commission on April 3, 2024, however, due to concerns from the City Attorney and the Community Development Director with the completeness of the application and the process by which the application was reviewed, CCP 2023- 007 was not presented to the Planning Commission for consideration.

On April 3, 2024, the Planning Commission denied CannaCruz’s application for CUP 2022-048.

Planning Commissioners expressed concern that the amendment to CCP 2023-007 should be considered concurrently with CUP 2022-048. Planning Commissioners also commented that consideration of amendments to CCP 2023-007 should be deferred to the City Council as a policy consideration. In a letter dated April 17, 2024, CannaCruz appealed the Planning Commission’s April 3, 2024, decision to deny CannaCruz’s application for a Conditional Use Permit (CUP 2022- Page | 5
048). (A copy of CannaCruz’s April 17, 2024, letter is attached to this report for reference.) The appeal was originally scheduled for City Council consideration on June 11, 2024, in order to meet the sixty-day period required by Salinas Municipal Code section 37-60.1300; however, CannaCruz agreed to continue the appeal before the Salinas City Council to June 18, 2024. (A copy of CannaCruz’s May 21, 2024, email agreeing to continue the appeal to June 18, 2024, is attached to this report for reference.)
June 5, 2024, Planning Commission Meeting
On June 5, 2024, the Planning Commission considered CCP 2023-007. After hearing public testimony from both the Applicant and the public concerning the proposed Commercial Cannabis Permit, the Planning Commission by a unanimous 7-0 vote determined to neither affirm, reverse, or modify the Selection Committee’s determination and refer the Selection Committee’s determination and appeal thereof to the City Council for consideration. (Correspondence submitted to the Planning Commission from JRG Attorneys at Law and Walker+Reed Attorneys at Law dated June 4, 2024, are attached to this Report for reference.) During the public hearing the Planning Commission received public comment both for and against CannaCruz’s proposed relocation. Members of the public expressed concern for the potential negative impacts on the community including the potential for youth exposure to cannabis products, impacts on traffic, and impacts on parking. Planning Commissioners commented positively on the security measures proposed by CannaCruz and CannaCruz’s management of its current commercial cannabis business at 1156 Abbott Street. Planning Commissioners also expressed concern about potential negative impacts which may result from the proposed relocation including traffic impacts and proximity to sensitive uses. Planning Commissioners also expressed concern over the City’s processes including the need for the Municipal Code and cannabis regulations to be updated, the lack of available locations for cannabis businesses to open and operate (because of the restrictions imposed on proximity to sensitive uses). Ultimately, the Planning Commission neither affirmed nor denied CannaCruz’s appeal and instead referred the appeal to the City Council for consideration in part due to the fact that the City Council would also be considering CannaCruz’s appeal of CUP 2022-048 on June 18, 2024. Draft Planning Commission minutes from the June 5, 2024 public hearing have been attached for review.

Commercial Cannabis Permits—Amendment Procedures
The holder of a Commercial Cannabis Permit issued by the City may request amendments to their permits pursuant to the procedures outlined in Salinas Municipal Code section 5-07.09. Pursuant to section 5-07.09, the holder of a Commercial Cannabis Permit may request a change to the business location by submitting all items normally required for a new application, except that information related to the principals or operations that will remain unchanged and are not directly related to the site may be excluded. The application for a change to the business location must submit all items normally required for a new application as outlined on section 5-07.07.

Selection Committee’s Determination and Findings
As outlined in section 5-07.09(a)(2) the Selection Committee is required to review the proposed new location and may approve an amendment to the new location if it can make the following findings:
a. The new site would not be located within the distances specified in section 5-07.27, unless an exception is approved pursuant that section;
b. The relocation to the new site would not create any significant negative impacts greater than those that existed at the original site;
c. The proposed location is located in an appropriate zoning district for the proposed use; and d. Owners of real property located within three hundred feet of the proposed site have been notified and have had an opportunity to provide information to the City regarding the proposed site.

On May 14, 2024, the Selection Committee met to consider the Amendment Application and at that meeting denied the Amendment Application. During that meeting, the Selection Committee conveyed their reasons for the denial and the findings of fact upon which their decision was based to the City Attorney. In a letter to Trinh Retterer and Peter D. Brazil dated May 15, 2024, the City Attorney informed CannaCruz that the Selection Committee had denied CannaCruz’s Amendment Application and also informed CannaCruz of the reasons for the denial. (A copy of the City Attorney’s May 15, 2024, letter is attached to this Report for reference.) As described in the May 15, 2024, letter, the Selection Committee denied CannaCruz’s Amendment Application for the following reasons:
a. The proposed location (1228 South Main Street) is located within 1,000 feet of two sensitive uses listed in section 5-07.27: a smoke-shop (Clout Nine Smoke Shop) located at 1152 South Main Street and a location where alcohol is sold or served for individual consumption on the premises (Ellis’ Restaurant) located at 1250 South Main Street; the proposed location is immediately adjacent to the alcohol related use. The Selection Committee did not find that the intent of Article VII of Chapter 5 of the Salinas Municipal Code, as outlined in section 5-07.01, could otherwise be met. b. The proposed location (1228 South Main Street) is located adjacent to a residential use and, therefore, a determination must be made by either the Police Chief or the Community Development Director as to whether the operation of a commercial cannabis business at this location would tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential uses as required by section 5-07.27(d).
c. Article VII of Chapter 5 of the Salinas Municipal Code reflects the City’s policy and intent that commercial cannabis businesses should not be located in proximity to sensitive uses and reflects the City’s overall master planning perspective that commercial cannabis Page | 7
businesses are best suited for industrial or commercial areas that are not in proximity to sensitive uses, including residential areas.

On May 16, 2024, pursuant to Salinas Municipal Code Section 5-07.10 CannaCruz timely submitted the present appeal of the Selection Committee’s denial of the Amendment Application. (A copy of CannaCruz’s May 16, 2024, appeal of the Selection Committee’s denial is attached to this report for reference.)
Police Department Considerations
The Salinas Police Department issued three memoranda related to CannaCruz’s Amendment Application: February 26, 2024; March 16, 2024; and March 19, 2024. (The Police Department memoranda are attached to this report for reference.)
The February 26, 2024, Memorandum specifically addressed only the proposed parking layout at the 1228 South Main Street location and concluded there are “no issues with the parking lot layout.” The February 26, 2024, Memorandum did not address any other issues related to the proposed relocation, including the findings of the Police Chief pursuant to section 5-07.27(d) due to the proposed location’s adjacency to a residential use.

The March 16, 2024, Memorandum addressed the proposed parking reduction and proposed relocation of CannaCruz to 1228 South Main Street and concluded there are “no issues with the parking reduction or relocation of the dispensary.” The March 16, 2024, Memorandum further concluded that “[a]lthough the subject site is located adjacent to a residential areas, it is the opinion of the Chief of Police that the operation of a Commercial Cannabis business in such location would not tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential units as stipulated by Municipal Code Section 5-07.27(d).” Release of the March 16, 2024, Memorandum was an administrative error:

The Memorandum was not a final draft intended for distribution.

With respect to the proposed location’s adjacency to a residential use, the March 19. 2924, Memorandum concludes that in “the opinion of the Chief of Police…the operation of the Commercial Cannabis business in such location would tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential units as stipulated by Municipal Code Section 5-07.27(d).” Of concern to the Salinas Police Department is the proximity of the proposed location to two specific sensitive uses identified in the Salinas Municipal Code and the proposed location’s adjacency to a residential use. Elli’s Restaurant is immediately adjacent to the proposed location Page | 8
and includes a bar where alcoholic beverages are served. Elli’s Restaurant is a popular location for customers to gather in the bar area to drink alcohol, socialize, and watch sporting events. Alcoholic beverages are also served in the dining portion of the restaurant. The combination of an alcohol related use immediately adjacent to a commercial cannabis business creates the potential for foot traffic between the two locations, including foot traffic from intoxicated individuals along the sidewalk on South Main Street and through the driveway of the proposed location in order to gain access to the proposed location at the rear of the building. As discussed below, this portion of South Main Street contains a high-volume of vehicular traffic regularly traveling at speeds above the posted speed limit. Clout Nine Smoke Shop, a second sensitive use, is located within 1,000 feet of the proposed location.

The proposed location is directly adjacent to a residential apartment complex with ten second floor windows with a direct line of sight to the parking lot of the proposed commercial cannabis business. Customers are anticipated to each take approximately six minutes to complete their transactions which would result in vehicles potentially entering and exiting the parking lot each seven to eight minutes throughout the business’s hours of operation, driving along the fence separating the proposed location from the adjacent residential use. Depending on the hours of operation, this could mean that vehicles would be entering and exiting the proposed location during the nighttime hours which would require the use of vehicle headlights. This could result in light from the vehicles’ headlights shining into the apartment windows each time a vehicle entered of existed the parking lot. There is also other potential for customers entering and exiting their vehicles to create noise and other impacts on the adjacent residential use including, potentially, the use of cannabis projects in their vehicles and/or the parking lot of the proposed location. These conditions have the potential to create noise impacts on the adjacent residential use and the occupants of the residential units, some of which may be families with children.

There is only one narrow driveway entrance and exit to the proposed location; the narrow width of the driveway makes it difficult for two cars to fit and safely pass each other as they enter and exit the parking located at the rear of the building. The driveway to the proposed location is accessible only by way of southbound South Main Street (a high volume major arterial roadway that leads in one direction to Highway 68) and immediately south of the intersection of South Main Street and Plaza Circle. This location has had seven vehicle collisions in the last four years, one of which was a fatal collision between a vehicle and a cyclist. In the broader area from South Main Street at San Joaquin Street to South Main Street and Blanco Road, there have been eighteen collisions.

Customers of the proposed location would turn over in six-minute increments; customers are anticipated to each take approximately six minutes to complete their transactions. With the proposed location anticipated to be a high-volume business (a higher volume business than the previous furniture store use), that would mean that more customers/vehicles than have been present in the past would be entering and exiting the proposed location through a narrow driveway and narrow driveway entrance onto South Main Street every seven to eight minutes. This area of South Main Street has high volumes of traffic which regularly moves at speeds in excess of the posted speed limit (see attached CannaCruz Salinas Parking Demand Study from Rick Engineering Company dated February 9, 2024).

Page | 9
The conditions discussed above present a threat to the public health, safety, and welfare. It is anticipated that under these conditions establishment of the proposed commercial cannabis business at this proposed location would tend to cause a situation which may result in repeated police department response or a negative impact on the adjacent residential uses Time Consideration:

Per Government Code Section 65957, the new deadline for action was April 16, 2024. On April 3, 2024, the Salinas Planning Commission denied CUP 2022-048. On April 12, 2024, the Applicant appealed the Planning Commission’s denial of CUP 2022-048 to the Salinas City Council. On May 14, 2024, the Salinas Commercial Cannabis Permit Selection Committee denied CCP 2023-007. On May 16, 2024, the Applicant appealed the Salinas Commercial Cannabis Permit Selection Committee denial of CCP 2023-007 to the Salinas Planning Commission. On May 21, 2024, pursuant to Zoning Code Section 37-60.1300(a), the Applicant requested an extension to the hearing date for the appeal to the City Council to allow for both CUP 2022-048 and CCP 2023-007 to be considered on the same City Council hearing date. On June 5, 2024, the Salinas Planning Commission determined to neither affirm, reverse, or modify the Selection Committee’s determination on CCP 2023-007 and referred the Selection Committee’s determination and appeal thereof to the City Council for consideration.

Alternatives Available to the Council:

The City’s Selection Committee denied CannaCruz’s Amendment Application to relocate its commercial cannabis business to 1228 South Main Street. The reasons for the Selection Committee’s denial are described above and in the attached May 15, 2024, letter. CannaCruz appealed the Selection Committee’s denial to the Planning Commission and on June 5, 2024, the Planning Commission referred the appeal to the City Council.

The City Council is now asked to consider CannaCruz’s appeal of the Selection Committee’s denial. In doing so, the City Council should consider the City’s commercial cannabis regulations, including the regulations related to sensitive uses, and how the commercial cannabis regulations apply to CannaCruz’s application to relocate and operate a commercial cannabis business at 1228 South Main Street. The City Council should consider the information presented in this report and the information presented to it during the public hearing on this appeal and should then exercise its discretion and render a decision supported by specifically articulated findings.

The City Council has the following alternatives:

1. Affirm the determination made by the Selection Committee to deny CannaCruz’s application for a major amendment to Commercial Cannabis Permit 2023-007;

2. Reverse the determination made by the Selection Committee to deny CannaCruz’s application for a major amendment to Commercial Cannabis Permit 2023-007; Page | 10

3. Modify the determination made by the Selection Committee to deny CannaCruz’s application for a major amendment to Commercial Cannabis Permit 2023-007.

Following City Council’s determination, a Resolution consistent with the City Council’s determination will be prepared and brought back to the City Council at a subsequent meeting for consideration and approval.

Findings.

When considering CannaCruz’s appeal and exercising its independent discretion in making a determination supported by specifically articulated findings, the City Council should consider the following:

1. With respect to the proximity of the proposed location to sensitive uses, the City Council may make findings that, based on the information presented to the City Council during its public hearing on the appeal, even though the proposed location is located within 1,000 feet of sensitive uses the intent of the City’s commercial cannabis regulations may otherwise be met. In other words, the City Council could find that even though the proposed location is within 1,000 feet of several alcohol-related uses, a religious assembly use, and a smoke shop the establishment of a commercial cannabis business at the proposed location would not have a negative impact on the health, safety, and welfare of the general public; would not create negative effects on neighboring properties or businesses; and, would otherwise be consistent with the purpose and the intent of the City’s commercial cannabis regulations:
a. [To] promote the development of businesses in the commercial cannabis industry in a responsible manner while imposing regulations to protect the health, safety, and welfare of the residents, neighborhoods, and businesses of Salinas. b. [To] accommodate the needs of medically ill persons that require treatment with medicinal cannabis and medicinal cannabis products.
c. [To] regulate the personal non-medicinal use and consumption of cannabis and cannabis products in a manner consistent with state law. d. [To] regulate cannabis activity in the City of Salinas concurrently with the State of California.

2. With respect to the adjacency of the proposed location to a residential zoning district, the City Council may make findings that even though the proposed location is adjacent to a residential zoning district, based on the information presented to the City Council during its public hearing on the appeal, the operation of a commercial cannabis business at this location would not tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential use.

Page | 11
CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ATTACHMENTS:

Draft Conditional Use Permit 2022-048 approval document with the following exhibits:

Exhibit "A" Vicinity Map
Exhibit "B" Site Map (Sheet A0.0)
Exhibit "C" Site Plan (Sheet A1.0)
Exhibit "D" Existing Floor Plan (Sheet A2.0)
Exhibit "E" Proposed Floor Plan (Sheet A2.1)
Exhibit “F” Exterior Elevations (Sheet A4.0)
Exhibit “G” Landscape, Fencing, and Bicycle Parking Details (Sheet A9.0) Exhibit “H” Conceptual Landscape Plans (Sheet L1.0)
Exhibit "I" Engineer’s Report dated March 6, 2024
Exhibit "J" Police Department comments dated March 19, 2024 Exhibit “K” Permit Center comments dated February 28, 2024 Exhibit "L" CannaCruz Salinas Parking Demand Study dated February 9, 2024 Exhibit “M” Alternative Means of Compliance for Landscaping Draft Commercial Cannabis Permit 2023-007 approval document CannaCruz Salinas Parking Demand Study from Rick Engineering Company dated February 9, 2024
December 15, 2021, Zoning Information Letter from Adam Garrett to Grant Palmer Commercial Cannabis Permit 2023-003
Ordinance No. 2566 (N.C.S.) and Report to the City Council dated January 26, 2016 Ordinance No. 2597 (N.C.S.) and Report to the City Council dated August 15, 2017 Ordinance No. 2598 (N.C.S.) and Report to the City Council dated September 5, 2017 Ordinance No. 2600 (N.C.S.) and Report to the City Council dated November 7, 2017 June 5, 2024 Planning Commission Staff Report without exhibits June 5, 2024 Planning Commission unofficial minutes
June 4, 2024 Letter from JRG Attorneys at Law appealing Planning Commission denial of CCP 2023-007
June 4, 2024 Letter from Walker+Reed Attorneys at Law opposing CCP 2023-007 May 21, 2024, Email from Trinh Retterer to Christopher Callihan re CCP 2023-007 Amendment Appeal and extending appeal deadline for CUP 2022-048
Page | 12
May 16, 2024, Email (with attached Development Review Application) from Trinh Retterer to City Attorney re CCP 2023-007 Amendment Appeal
May 15, 2024, Letter from City Attorney to Trinh Retterer and Peter D. Brazil re Commercial Cannabis Permit (CCP 2023-007) Major Amendment: Selection Committee Review; Notice of Denial
May 7, 2024, Letter from City Attorney to Trinh Retterer re Commercial Cannabis Permit (CCP 2023-007) Major Amendment
Request for Amendment to Commercial Cannabis Permit (CCP) dated April 29, 2024 (with attachments)
April 17, 2024, Letter from Peter D. Brazil to Lisa Brinton re Conditional Use Permit CUP 2022- 048 Appeal of Planning Commission Decision
April 12, 2024, Letter of Appeal of Planning Commission denial of CUP 2022-048 from JRG Attorneys at Law
April 3, 2024 Planning Commission Staff Report without exhibits April 3, 2024 Planning Commission Official Minutes
Planning Commission Resolution 2024-04
April 3, 2024 CannaCruz CUP 2022-048 Letter to Planning Commission April 2, 2024 Walker+Reed Attorneys at Law Letter opposing CUP 2022-048 and CCP 2023-007 Comments from the Salinas Police Department dated February 26, 2024, March 16, 2024, and March 19, 2024
December 29, 2024 Letter from JRG Attorneys at Law requesting extension to the Permit Streamlining Act for CUP 2022-048
June 9, 2024 Letter of Opposition from Charlie Sammut
Public Correspondence concerning proposed projects dated March 26, 2024 to April 1, 2024 Correspondence from Elli’s Restaurant dated January 12 and 16, 2024 Correspondence from Dr. Ronconi dated December 4, 2023 to January 11, 2024 Sensitive Use for Cannabis Map for 1228 South Main Street CannaCruz Employee Handbook
CannaCruz Operations Manual for Salinas
CannaCruz Salinas Pro Forma
CannaCruz Salinas Security Plan
Cc: CannaCruz, Inc., Applicant
Trinh Retterer and Peter D. Brazil, JRG Attorneys at Law Samuel and Marguerite Kobrinsky, Trustees, Property Owner Other Interested Parties
I:\ComDev\Planning Share Space\Conditional Use Permits\2022 CUP's\CUP 2022-048 - 1228 S Main St\06-18-24 CC Materials\06-18-24 CCP 2023-007 CC Appeal Staff Report.docx

Page 1 of 19 ends

COMMERCIAL CANNABIS PERMIT (CCP) 2023-007
(Amends CCP 2023-003)
City of Salinas
WHEREAS, the City of Salinas has adopted Chapter 5, Article VII of its City Code to allow for the operation of commercial cannabis activity within the City of Salinas; and WHEREAS, the City accepted applications for commercial cannabis businesses in accordance with the requirements of Chapter 5, Article VII; and WHEREAS, the City of Salinas granted and issued Commercial Cannabis Business Permit No. 2017-001 pursuant to Chapter 5, Article VII of the Salinas City Code and upon the terms and conditions listed therein; and
WHEREAS, on December 28, 2017, CCP 2017-001 was amended to allow for adult-use cannabis business (First Amended CCP 2017-001); and
WHEREAS, on November 13, 2018, the First Amended CCP 2017-001 was amended to allow for additional time for the business to obtain permits and complete work at the approved premises; and
WHEREAS, on May 23, 2019, a Certificate of Occupancy was issued for the premises of East of Eden, marking the effective date of CCP 2017-001; and WHEREAS, on March 18, 2020, Canna Cruz filed a request to amend CCP 2017-001 and the City of Salinas granted Commercial Cannabis Business Permit No. 2020-013 on May 23, 2020 pursuant to Chapter 5, Article VII of the Salinas City Code and upon the terms and conditions listed in the permit and not otherwise; and
WHEREAS, on June 15, 2021, Canna Cruz filed a request to amend CCP 2020-13 and the City of Salinas granted Commercial Cannabis Business Permit No. 2021-003 on June 23, 2021 pursuant to Chapter 5, Article VII of the Salinas City Code and upon the terms and conditions listed in the permit and not otherwise; and
WHEREAS, on April 8, 2022, Canna Cruz filed a request to amend CCP 2021-003 and the City of Salinas granted Commercial Cannabis Business Permit No. 2022-005 on June 30, 2022 pursuant to Chapter 5, Article VII of the Salinas City Code and upon the terms and conditions listed in the permit and not otherwise; and
WHEREAS, on February 28, 2023, Canna Cruz filed a request to amend CCP 2022-003 and the City of Salinas granted Commercial Cannabis Business Permit No. 2023-003 on May 23, 2023 pursuant to Chapter 5, Article VII of the Salinas City Code and upon the terms and conditions listed in the permit and not otherwise; and

Page 2 of 19 ends

WHEREAS, on June 23, 2023, Canna Cruz filed an Amendment to CCP 2023-003 pursuant to City Code Section 5-07.09 to relocate the business location of CCP 2023-003 from 1156 Abbott Street (APN: 002-881-057-00) to 1228 South Main Street (APN: 016-161-052-000); and
WHEREAS, on August 23, 2022, Canna Cruz applied for related Conditional Use Permit 2022-048 (CUP 2022-048) to change the use from Retail to a proposed two-tenant Shopping Center within an existing 20,162 square-foot building to include a 9,413 square-foot furniture store retail use in the front portion and a 10,749 square-foot Cannabis Dispensary with accessory Delivery and Distribution retail use in the rear portion.

WHEREAS, related CUP 2022-048 also includes a 41-space (51%) Parking Reduction per Zoning Code Table 37-50.10, exception from the requirements of Zoning Code Section 37-

50.200 to allow for internal waste storage to be located within the existing structure, and Alternative Means of Compliance for landscaping; and
WHEREAS, on March 20, 2024, a duly noticed public hearing was scheduled for the Salinas Planning Commission to consider Commercial Cannabis Business Permit 2023-007 (CCP 2023-007) along with related CUP 2022-048; and
WHEREAS, to ensure the complete processing of CCP 2023-007 and CUP 2022-048, the applications were continued to the April 3, 2024 Planning Commission meeting; and WHEREAS, it was determined due to concerns with the completeness of the application for CCP 2023-007, it was not presented for consideration at the April, 3, 2024 Planning Commission hearing; and
WHEREAS, on May 14, 2024, a duly noticed hearing was scheduled for the Salinas Commercial Cannabis Selection Committee to consider CCP 2023-007; and WHEREAS, on May 14, 2024, the Salinas Commercial Cannabis Selection Committee denied CCP 2023-007; and
WHEREAS, on May 16, 2024, the Applicant appealed the Salinas Commercial Cannabis Permit Selection Committee denial of CCP 2023-007 to the Salinas Planning Commission; and WHEREAS, on June 5, 2024, the Salinas Planning Commission determined to neither affirm, reverse, or modify the Selection Committee’s determination on CCP 2023-007 and referred the Selection Committee’s determination and appeal thereof to the City Council for consideration; and
WHEREAS, on June 18, 2024, at a duly noticed public hearing, the Salinas City Council determined that the related Conditional Use Permit 2022-048 (CUP 2022-048) to be categorically exempt from the California Environmental Quality Act (CEQA) and approved CUP 2022-048 pursuant to the terms and conditions of the permit; and

Page 3 of 19 ends

WHEREAS, on June 18, 2024, at a duly noticed public hearing the Salinas City Council also considered Commercial Cannabis Permit 2023-007 (CUP 2023-007); and WHEREAS, pursuant to City Code Section 5-07.08, the City Council has reviewed the amended CCP application.

WHEREAS, pursuant to City Code Section 5-07.09(a)(2), the City Council has reviewed the proposed new business location and has made the following findings:
a. Even though the new site is located within the sensitive distances specified in City Code Section 5-07.27, an exception has been approved pursuant to this Section; b. The relocation of the new site would not create any significant negative impacts greater than those that existing at the original site;
c. The proposed location is located in an appropriate Zoning District for the proposed use; and
d. Owners of real property located within 300-feet of the proposed site have been notified and have had the opportunity to provide information to the City regarding the proposed site.

NOW, THEREFORE, the City of Salinas hereby amends CCP 2023-003 by granting and issuing this Commercial Cannabis Business Permit No. 2023-007 pursuant to Chapter 5, Article VII of the Salinas City Code and upon the following terms and conditions and not otherwise, to wit:

ISSUED TO (“Permittee”): Bradford Palmer & Grant Palmer Dba Canna Cruz
FOR USE: Dispensary
WITH ACCESSORY USE(S): Delivery & Distribution (Non-Third Party) FOR TYPE(S): Adult-Use & Medicinal
ON PROPERTY LOCATED AT: 1228 South Main Street, Salinas, California ASSESSOR'S PARCEL NO.: 016-161-052-000
EXPIRATION DATE: This Permit shall expire 12 months from the Effective Date.

Page 4 of 19 ends

RIGHT TO OPERATE
The Permittee shall have the right to operate a Commercial Cannabis Business— Dispensary on the above described property in accordance with this Permit. In addition, the Permittee shall have the right to make deliveries to customers at locations other than the Dispensary storefront.

GENERAL CONDITIONS

1. Permittee may conduct business in either the medicinal (“M”-Type) or adult-use (“A”-Type) markets.

2. Cannabis shall not be smoked, ingested, or otherwise consumed on the premises (“Premises” shall mean 1228 South Main Street, Salinas, California).

3. Per SMC Section 5-07.22, alcoholic beverages shall not be sold, dispensed, or consumed on the premises. Consumption of alcohol on the premises during nonbusiness hours is permissible provided that no alcohol is stored at the site, consumption shall be limited to invited guests at private events, and no monetary or any other form of compensation shall be collected to attend the event or partake in the consumption of alcohol or any other event activities. Service of alcohol shall comply with any and all requirements of the Bureau of Alcoholic Beverage Control, including any requirement to obtain any necessary permits.

4. In general, no person under the age of twenty-one (21) years shall be allowed within the building where cannabis is distributed or sold, except that persons who are at least eighteen (18) years of age and possess a valid physician’s recommendation may be allowed access for the purpose of purchasing medicinal cannabis and cannabis products. Additionally, persons under the age of eighteen (18) who are qualified patients may be allowed in those areas where cannabis is sold or otherwise distributed to qualified patients provided they are accompanied by a person with a valid caregiver’s card. Persons under the age of eighteen (18) years who do not meet the requirements specified above may be allowed in those areas where cannabis is neither sold nor otherwise distributed, provided they are accompanied by a parent or legal guardian. These requirements shall be clearly and legibly posted near the entrance to the Dispensary.

5. Per SMC Section 5-07.29, there shall not be a physician located in or on the premises at any time for the purpose of evaluating patients for the issuance of a medical marijuana recommendation or card.

Page 5 of 19 ends

6. Per SMC Section 5-07.39(g), prior to dispensing medicinal cannabis or medicinal cannabis products to any person, the business shall obtain additional voice verification from the recommending physician’s office that the person requesting cannabis or cannabis products is a qualified patient.

7. Per SMC Section 5-07.29, this Permit and any other Permits or licenses issued to the business from a government agency shall be conspicuously displayed in an interior location of the premises in an area which has patient access.

8. Per SMC Section 5-07.18, the Permittee shall maintain a City of Salinas business license, pay all applicable fees, charges, and taxes, and comply with all applicable provisions and requirements of that business license.

9. Per SMC Section 5-07.15, the Permittee shall pay any applicable taxes and fees, whether federal, state, or local.

10. Per SMC Section 5-07.33, the Permittee shall collect all sales and uses taxes and/or transaction taxes required under local and/or state law, and shall remit those monies to the State of California for disbursement to the City of Salinas in accordance with established reporting principles. Any tax that has not been remitted to the City shall be deemed a debt owed to state agencies and/or the City of Salinas by the person required to collect and remit the tax.

11. This Permit does not vest in any person a property right or other vested right. This Permit confers the privilege to operate a Commercial Cannabis Business for a limited term pursuant to the terms and the conditions of this Permit and of all applicable laws, rules, and regulations. Failure to comply with one or more of the terms and conditions of this Permit or any applicable law, rule, or regulation shall be grounds for immediate revocation of this Permit.

12. If the Commercial Cannabis Permit (CCP) was granted on the basis of false material information, written or oral, given willfully or negligently by the applicant, this Permit shall be immediately revoked.

13. Per SMC Section 5-07.16, violations of SMC Chapter 5, Article VII are deemed unlawful and a public nuisance. If business activity at the premises results in a public nuisance, the Permittees may be subject to injunctive relief and/or revocation of the CCP.

14. Per SMC Section 5-07.08(a), this Permit shall expire one year after the date on which it becomes effective. Application for renewal shall be filed with the Community Development Department no later than 60 days prior to the expiration

Page 6 of 19 ends

date of this Permit. In the event this Permit is not amended in a timely manner, the Permittee shall immediately cease all operations commenced pursuant to this Permit. No extensions to this Permit or to the deadline to submit an application for renewal will be considered or granted. Subject to applicable laws, applications for renewal will be evaluated based solely upon the Permittee’s compliance with applicable laws, regulations, and Permit conditions (including the conditions of this Permit), and shall not be affected by outside actions such as the establishment of a new sensitive use within 1,000 feet of the site, proposals for cannabis businesses by other operators or at other sites, or any other concerns not related to operations at the subject site.

15. Per SMC Section 5-07.23, this CCP is granted only to the below-signed Permittee(s) for the site defined herein. This Permit shall not be amendable to any other site or to any other person. For purposes of this Permit, “person” shall include an individual or any entity. No person shall operate a commercial cannabis business under this Permit at any place or at any location other than that identified on the Permit. No person shall amend ownership or control of this commercial cannabis business or amend this Permit unless the Permittee first obtains the consent of the City and otherwise meets the requirements for the amend under the City Code. Any attempt to amend this Permit without the City’s prior consent will render this Permit immediately void and revoked and no longer of any force or effect and the commercial cannabis business must immediately cease operations.

The Permittee may not assign this Permit or any of the privileges granted hereunder to any other person or entity or allow any other person or entity to operate the commercial cannabis business established pursuant to this Permit.

16. Per SMC Section 5-07.07, no person who has been convicted of a felony or crime of moral turpitude within the past ten years may be engaged (actively or passively) in the operation of any commercial cannabis business, unless the felony or crime is exempted from this restriction as described in SMC Section 5-07.07(b).

17. Per SMC Section 5-07.09, any change as to which individuals are listed as the Permittees of the CCP shall be requested in the form of a permit amendment request. Such requests shall be reviewed by the City’s Cannabis Selection Committee, who shall reject or approve the request based on findings that the new Permittee(s) would comply with the business’s operating requirements and would possess the expertise and ability to operate the business.

Page 7 of 19 ends

NEIGHBORHOOD COMPATIBILITY/ENVIRONMENT

18. Per SMC Section 5-07.33, sales of cannabis and cannabis products at the Dispensary location shall occur only between the hours of 8:30 a.m. and 9:00 p.m.

Monday through Sunday.

19. The Permittee shall maintain the premises’ parking areas, driveways, accessways and grounds, landscaped areas, and exterior building surfaces in accordance with all applicable regulations, as required by the SMC. The premises shall be maintained free of weeds, litter, and debris. Traffic signs and pavement markings shall be maintained to be clear and legible.

20. Per SMC Section 5-07.29(b), any outdoor storage, display, or sale of merchandise of any kind is prohibited.

21. Per SMC Section 5-07.29(a), no cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of the property. All signage proposed for the premises shall be subject to the prior review and approval of the City.

22. Per SMC Section 5-07.33, any cannabis or cannabis product must be in an opaque (non-see-through) package, such as a bag, before it leaves the commercial cannabis business.

23. Per SMC Section 5-07.29, odor prevention devices and techniques, such as a ventilation system with a carbon filter, shall be incorporated to ensure that odors from cannabis are not detectable offsite. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the facility that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment or any other equipment which the City Manager or his/her designee determines has the same or better effectiveness:
a. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; and
b. An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior so that the odors generated inside

Page 8 of 19 ends

the commercial cannabis business are not detectable on the outside of the commercial cannabis business.

24. The Permittee must maintain all weighing devices in compliance with local, state or federal law.

25. The Permittee must follow all local, state and federal requirements for waste disposal. Any waste including cannabis product must be stored in a secure location on-site until disposed of in a legal fashion.

POINT-OF-SALE REQUIRMENTS

26. Per SMC Section 5-07.41, the business shall not make any deliveries within 1,000 feet of any school, park, or daycare center, except that deliveries may be made to an individual at their place of residence.

27. Per State Law (Section 5417 of the Bureau of Cannabis Control Order of Adoption), vehicles used for deliveries to consumers shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only the Permittee or an employee of the Permittee shall be in the delivery vehicle. Cannabis goods shall not be left unattended in a motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. The Permittee shall comply with all other applicable State requirements of the Bureau of Cannabis Control regarding cannabis delivery.

28. Per SMC Section 5-07.41(b), the business shall verify the identity of delivery customers via the presentation of a valid identification card issued by a governmental agency that includes the recipient’s name, date of birth, and photograph (unless the State of California designates alternative forms of identification to be acceptable for this purpose).

29. Per SMC Section 5-07.41(c), the Permittee shall not deliver any cannabis or cannabis products to any person under the age of 21 years, except a person with an identification card. Deliveries shall be made directly to the person placing the request for delivery and may not be delivered to another individual at the site, except that deliveries to a caretaker are permitted, and deliveries to a minor may be made to that minor’s parents or legal guardians.

30. Per SMC Section 5-07.41(d), prior to the sale of any cannabis or cannabis product to a minor, the delivery company shall obtain the consent of the minor’s parents or legal guardians. This may include a one-time blanket approval provided that the terms of the approval are clearly articulated.

31. Per SMC Section 5-07.39(c), any cannabis or cannabis product must be in an

Page 9 of 19 ends

opaque (non-see-through) package, such as a bag, at the time of delivery.

HAZARDOUS MATERIALS

32. A list of all hazardous materials which will be stored or utilized on site shall be provided to the Salinas Fire Chief. This list shall include the amount and methods of storage of these materials. Prior to the commencement of cannabis activity, the Fire Chief shall ensure that the Permittee has obtained all required Permits necessary. At any time between 8:00 a.m. and 8:00 p.m. and without notice, the Fire Chief and/or his/her designee may enter the premises for the purpose of observing compliance with applicable regulations regarding the handling and use of hazardous materials.

SITE SECURITY

33. Per SMC Section 5-07.24, the Permittee shall be responsible and liable for safety and security in and around the commercial cannabis operation, and shall provide adequate security on the premises, including lighting and alarms, to ensure the safety of persons and to protect the premises from theft and other crimes. The Permittee shall maintain the following security measures, unless otherwise determined by the Chief of Police. The City and the Salinas Police Department are also authorized to require additional security measures as deemed necessary. a. The site shall be monitored at all times. This may be accomplished by installing HD security cameras which may be accessed remotely in realtime by the Salinas Police Department. The Permittee shall work with the Salinas Police Department to ensure the video feed is compatible with Police Department software/hardware. Site Monitoring shall include external and internal areas, including all doors, windows, and vehicle entrances/exits. Video and other records shall be preserved for a minimum of forty-five (45) days.
b. Entrances into the dispensary shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the dispensary to separate it from the reception/lobby area. Individuals must show valid identification in order to gain access into the dispensary.
c. Whenever the business or any other party is engaged in loading and unloading of vehicles for the distribution of cannabis, cannabis products, and/or cash to and from the site, a minimum of one security guard shall be present to observe the amend of the cannabis, cannabis product, or cash between the delivering vehicle and the building. This guard shall be

Page 10 of 19 ends

equipped with gear that enables the guard to immediately contact law enforcement as necessary. The business shall maintain a loading area either within the building, an enclosed and secure fenced area, or, if these are infeasible, as close as possible to the building entrance to minimize the amount of transport through the parking lot. Loading and unloading shall not occur from adjacent properties without the prior approval of the property owner.
d. All restroom facilities shall remain locked and under the control of management.
e. Windows shall be secured to prevent unauthorized break-ins – any bars or other physical barrier devices shall be installed in the interior of the building and shall comply with Fire Code requirements.
f. Security systems shall be designed to continue all operations during power outages.
g. Panic buttons shall be installed throughout the facility as deemed necessary h. A minimum of one uniformed security guard shall be present at the premises during business hours so as to maintain a clear view of the parking area and the building entrance, in order to ensure the safety of patients. i. The premises shall be adequately screened and/or fenced to ensure that nearby businesses and properties are not otherwise affected by the operations of the Commercial Cannabis Business.
j. The Permittee shall maintain adequate parking on the site of the premises and make such parking available for patrons of the commercial cannabis business. The Permittee shall ensure that the operations of the Commercial Cannabis Business do not affect the parking lots of other nearby businesses. k. All cannabis product shall be stored in a locked room, safe, or vault. If the product is stored in a room or vault, said room or vault shall be reinforced or otherwise protected so that access may not be gained through the application of force equal or lessor to that produced by a vehicle collision.

If the product is stored in a safe, the safe shall be secured so as to prevent the safe from being removed from the site.
l. Individuals not involved in the cannabis business shall be escorted from the site immediately.

Page 11 of 19 ends

m. The plans shall include procedures detailing the handling of cash on-site.

Said plan shall include the range of cash expected at the site daily; the number of deposits made each day; procedures for making deposits, including personnel involved; whether employees are paid in cash and, if so, when these payments occur; and the amount of cash expected to be stored on-site overnight. Cash stored overnight in excess of $500 shall be stored in a locked room, safe, or vault. If the product is stored in a room or vault, said room or vault shall be reinforced or otherwise protected so that access may not be gained through the application of force equal or lessor to that produced by vehicle collision. If the product is stored in a safe, the safe shall be secured so as to prevent the safe from being removed from the site.

34. Per SMC Section 5-07.19, the Permittee shall keep accurate records of its commercial cannabis activities pursuant to the requirements of the California Business and Professions Code, as it may be amended from time-to-time.

35. Per SMC Section 5-07.24, the Permittee shall notify the Salinas Police Department and the Community Development Department within 24 hours after discovering any of the following: diversion, theft, loss, or any criminal activity involving the commercial cannabis operation; the less or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the commercial cannabis business; or any other breach of security.

36. Per SMC Section 5-07.24(b), the Permittee shall designate a liaison to the Police Department who will be responsible for managing communications regarding all security matters. This person shall be reasonably available to the Police Department or to City Staff regarding security measures.

37. Per SMC Section 5-07.20(a), at any time during hours of operation and without notice, City officials may enter the premises for the purpose of observing compliance of the commercial cannabis operation, including access to and inspection of the commercial cannabis operation’s records, books, accounts, financial data, and any and all data relevant to its Permitted activities for the purpose of conducting an audit or examination. It is unlawful for any person having any responsibility over a commercial cannabis operation to refuse to allow, impede, obstruct, or interfere with an inspection, or the review of the copying of records and monitoring (including recordings) including, but not limited to, the concealment, destruction, and falsification of any recordings or records.

38. The Chief of Police shall make the determination whether any measure taken in accordance with this section of the Permit has been done in an appropriate manner.

Page 12 of 19 ends

If, in the opinion of the Chief of Police, the measures taken do not provide an acceptable level of security, the Chief of Police may immediately suspend or revoke this Permit. Upon such suspension or revocation, the Permittee shall immediately cease all operations commenced pursuant to this Permit.

PATIENT SAFETY/PRODUCT INTEGRITY

39. The Permittee shall comply with all state and local regulations regarding product safety.

40. All cannabis and cannabis products sold shall have been cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the state and local regulations.

41. Per SMC Section 5-07.19(d), subject to the Health Insurance Portability and Accountability Act (HIPPA) regulations, each business shall allow City officials to have access to the Commercial Cannabis Business’s books, records, accounts, and any and all data relevant to its Permitted activities for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data will be produced no later than twenty-four (24) hours after receipt of the City’s request.

42. Businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing process until purchase in accordance with applicable law. Such records will be made available to the City for inspection upon request.

43. The Permittee shall adhere to State requirements of the California Cannabis Trackand-Trace System.

44. Per SMC Section 5-07.39(e), the business shall make all records related to testing laboratory results for the cannabis or cannabis product being delivered available to the consumer upon request.

45. Per SMC Section 5-07.44, all manufactured cannabis products shall be individually wrapped at the original point of preparation. Packaging shall, at a minimum, include the elements as specified in California Business and Professions Code section 26120, as the same may be amended from time-to-time or superseded or replaced by subsequent state legislation or by any department or division of the state of California.

Page 13 of 19 ends

46. All food products, food storage facilities, food-related utensils, equipment and materials shall be approved, used, managed and handled in accordance to the provisions of the California Retail Food Code, California Health and Safety Code sections 113700 - 114437. All food products shall be protected from contamination at all times, and all food handlers must be clean, in good health and free from communicable diseases. The Monterey County Environmental Health Bureau may inspect the commercial cannabis business at any time during business hours to ensure compliance with this section.

47. Per State law (California Business and Professions Code Section 26000 – 26250), the business shall comply with all State regulatory requirements for product packaging, including the following minimum requirements:
a. Prior to delivery or sale, cannabis and cannabis products shall be labeled and placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products.
b. Packages and labels shall not be made to be attractive to children. c. All cannabis and cannabis product labels and inserts shall include the following information prominently displayed in a clear and legible fashion in accordance with the requirements, including font size, prescribed by the bureau or by the State Department of Public Health:

C(1). Labels for cannabis shall include the following information displayed in a clear and legible font:

C(1)(a) “GOVERNMENT WARNING: THIS PACKAGE CONTAINS
CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP
OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY
ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF
AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT.

CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE
HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR
ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE
EXTREME CAUTION.”

C(1)(b) Labels for cannabis products shall include the following information displayed in a clear and legible font:
“GOVERNMENT WARNING: THIS PRODUCT CONTAINS
CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP
OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS

PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY

Page 14 of 19 ends

PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS
A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF
CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS.

CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE
HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS
YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE
USE EXTREME CAUTION.”
C(2) For packages containing only dried flowers, the net weight; (C)(3) Identification of the source and date of cultivation, the type of cannabis or cannabis product and the date of manufacturing and packaging; (C)(4) The appellation of origin, if any;
(C)(5) A list of pharmacologically active ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total. (C)(6) A warning if nuts or other known allergens are used. (C)(7) Information associated with the unique identifier issued by the Department of Food and Agriculture.
(C)(8) For a medicinal cannabis product sold at a retailer, the statement “FOR MEDICAL USE ONLY.”
(C)(9) Any other requirement set by the bureau or the State Department of Public Health.
d. Only generic food names may be used to describe the ingredients in edible cannabis products.
e. In the event the Attorney General determines that cannabis is no longer a Schedule I controlled substance under federal law, the label prescribed in subdivision (C) shall no longer require a statement that cannabis is a Schedule I controlled substance.

48. Per SMC Section 5-07.39(d), no edible cannabis products requiring refrigeration or hot-holding shall be sold or distributed. Baked products (e.g., brownies, bars, cookies, cakes), tinctures, and other non-refrigerated type items may be sold.

Page 15 of 19 ends

49. Per SMC Section 5-07.19(f), business records shall be maintained by the Permittee for a period of not less than seven years. Such records shall be made available for inspection consistent with California Business and Professions Code Section 26160 and any additional rules promulgated by the licensing authority pursuant to that section or the city council by resolution or ordinance.

LABOR & EMPLOYMENT

50. Any person who is an employee or who otherwise works or volunteers for the Permittee shall obtain a Work Permit in accordance with the requirements of the SMC, Section 5-07.25. No person under the age of 21 years of age shall be eligible for a Work Permit.

51. If, during the term of employment, an employee is charged with a felony or crime of moral turpitude, that employee shall immediately have their duties restricted to roles which do not involve the handling of any cannabis product, any access to financial records, or any opportunity to access inventory records, unless they are under the in-person supervision of a manager or principal that has not been accused of any felony or crime involving moral turpitude. A charge for transporting cannabis or cannabis products to or from a legally licensed and/or permitted cannabis business shall not be considered when implementing this paragraph.

Employees that are convicted or plead no contest to a charge of the same shall be immediately barred from performing any duties and their employment shall be promptly terminated in accordance with applicable laws. The business shall notify the Chief of Police in writing within 10 days of becoming aware that an employee has been charged or convicted of a felony or crime of moral turpitude. This permit may be immediately revoked and of no longer any force or effect.

52. Employees shall not consume or be under the influence of any controlled substances during work hours, unless a valid prescription from a medical professional has first been obtained.

53. To the extent permitted by law, the Permittee shall prioritize the hiring of employees from within the City of Salinas, within the Salinas Valley, and within Monterey County, in that order. The business shall annually include with any application for a renewal a list of the number of employees currently hired, the average and median hourly wages for all employees, and the zip codes of employees at the time of hire.

54. The Permittee shall provide compensation to its employees equal to or greater than that described in its application to the City.

Page 16 of 19 ends

PERMIT NOT TO SUPERSEDE OTHER REQUIRED LICENSING OR PERMITS

55. The Permit does not constitute a land-use entitlement or any other vested right and shall not absolve the Permittee of any requirements to obtain any reviews or Permits by the City’s Community Development Department. Said reviews or Permits may include, but are not limited to, Conditional Use Permits, Site Plan Reviews, Building Permits, and/or environmental analyses performed in accordance with the California Environmental Quality Act (CEQA). The Permittee shall obtain all necessary land use entitlements prior to beginning operations or performing any work on site.

56. When applicable, the Permittee must legally hold all required State Licenses under the Medicinal and Adult-Use Regulation and Safety Act, as it may be amended, and under all other applicable state laws. The issuance of this Permit shall not relieve the Permittee of any requirement to obtain Permits or licensing from any county, regional, or state agencies.

MODIFICATION OF APPROVED USE

57. Any modifications to the terms and conditions of this Permit are subject to the issuance of a new Permit. Modifications must be requested through the permit amendment process, as described in SMC Section 5-07.90.

PERMIT VALIDATION

58. This Permit shall be null and void and all terms and conditions shall have no force or effect unless this Permit is signed by the Permittee(s) and returned to City of Salinas Community Development Department.

STANDARD CONDITIONS

59. Pursuant to Salinas City Code Section 1-8.1: Civil action enforcement, and Section 1-8.2: Liability for costs, Permittee shall reimburse the City of Salinas for all costs and expenses (including but not limited to fees and charges of architects, engineers, attorneys, and other professionals, and court costs) incurred by the City in enforcing the provisions of this Permit.

60. The applicant(s) shall defend, indemnify, and hold harmless the City of Salinas or any of its boards, commissions, agents, officers, and employees from any claim, action or proceeding against the City, its boards, commissions, agents, officers, or employees to attack, set aside, void, or annul, the approval or the issuance of this Permit. The City shall promptly notify the Permittee of any such claim, action, or proceeding. The City shall cooperate in the defense. Nothing contained in this condition shall prohibit the City from participation in a defense of any claim, action,

Page 17 of 19 ends

or proceeding if the City bears its own attorney's fees and costs, and the City defends the action in good faith.

61. Notwithstanding any of the provisions in this Permit, the Permittee will at all times comply with all applicable laws and regulations, as the same may be promulgated, amended, or updated from time-to-time.

62. The City may in its discretion amend this Permit from time-to-time in order to address changes to the operations of the Commercial Cannabis Business or changes in applicable laws, rules, or regulations.

63. The Permittee understands and acknowledges that all principals named on this Permit, as well as all owners, managers, supervisors, or employees of the Commercial Cannabis Business, must complete a background check and all principals named on this Permit must clear the background check and meet the requirements of the Salinas Municipal Code. If one or more of the principals or other individuals either fails to complete a background check or fails the background check, this Permit shall become immediately null and void and revoked and the Commercial Cannabis Business must cease all operations permitted hereunder.

NOTICE OF CHALLENGE LIMITATIONS

64. Consistent with California Code of Civil Procedure Section 1094.6, all Court challenges to the decision to issue this Permit must be initiated within 90 days of the date of issuance.

EXECUTIONS
THIS COMMERCIAL CANNABIS PERMIT was approved by action of the City of Salinas City Council on June 18, 2024 and shall become effective immediately pursuant to Salinas Municipal Code Section 5-07-09(d):

Effective Date: June 18, 2024 ___________________________________ Courtney Grossman
Planning Manager
(Signatures Listed Below on Pages 17 and 18 Must Be Notarized)

Page 18 of 19 ends

THIS COMMERCIAL CANNABIS PERMIT is hereby accepted upon the express terms and conditions hereof, and the undersigned Permittee agrees to strictly conform to and comply with each and all of this Permit's terms and conditions.

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________

Page 19 of 19 ends

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________
I:\ComDev\Planning Share Space\Conditional Use Permits\2022 CUP's\CUP 2022-048 - 1228 S Main St\06-18-24 CC Materials\CCP 2023-007 - 06-18-24 Draft CC version.docx
February 9, 2024
Mr. Grant Palmer
CannaCruz, Inc.
115 Limekiln Street
Santa Cruz, CA 95060
SUBJECT: CANNACRUZ SALINAS PARKING DEMAND STUDY
(RICK ENGINEERING COMPANY JOB NUMBER 19633)

Dear Mr. Palmer:

Rick Engineering Company (RICK) has prepared this parking demand study to evaluate the parking requirement of the CannaCruz Salinas cannabis dispensary store, which proposes to relocate from its current site at 1156 Abbott Street in Salinas to a site located at 1228 South Main Street in Salinas.

PROJECT DESCRIPTION
CannaCruz Salinas proposes to redevelop the existing former furniture store (Legacy Fine Furniture) in a 20,146 square-foot free-standing building located at 1228 South Main Street in Salinas. The existing CannaCruz Salinas cannabis dispensary store would be relocated from its current location at 1156 Abbott Street in Salinas to the proposed site at 1228 South Main Street. In addition, a furniture store use is proposed for the front half of the building. Below is a breakdown of the proposed uses and floor areas that would be provided within the 20,146 square-foot building:
• 5,726 square-foot cannabis dispensary
• 2,387 square-foot distribution area
• 2,660 square-foot employee area
• 9,373 square-foot furniture store
The hours of operation for the existing and proposed CannaCruz Salinas sites are from 8:30 AM to 9:00 PM Monday through Sunday. The hours of operation for the proposed furniture store are estimated to be from 10:00 AM to 5:00 PM Monday through Sunday.

The total estimated number of employees for the proposed cannabis dispensary is 20 employees, and a maximum of 7 employees are estimated to be on-site at one time. The total estimated number of employees for the proposed furniture store is 10 employees, and a maximum of 3 employees are estimated to be onsite at one time.

The project proposes to take full access from one driveway on Main Street. A total of 40 parking spaces are currently provided on the site, which includes two (2) ADA parking spaces. The project site plan is illustrated in Exhibit 1 following this letter.

Mr. Grant Palmer
February 9, 2024

Page 2 of 11 ends

EXISTING USE PARKING CONDITIONS
The existing former furniture store (Legacy Fine Furniture) was the original tenant/owner of the 20,146 square-foot building at 1228 South Main Street, and was required to provide a minimum of 34 parking spaces based on the City’s parking requirement for a furniture store use (1 space per 600 square-feet) per Section 37-50.350 of the City of Salinas Municipal Code (Basic Requirements for Off-Street Parking and Loading). The existing 40 parking spaces on the site exceeds the City’s minimum parking requirement by 6 parking spaces.

Table 1 below summarizes the minimum required parking spaces for the existing former furniture store use based on the City’s off-street parking requirement per Section 37-50.350 of the City of Salinas Municipal Code, and also the estimated peak parking demand for a furniture store (Land Use 890) per the 5th Edition Institute of Transportation Engineers (ITE) Parking Generation Manual (January 2019).

Table 1
Existing Use Parking Conditions
Existing Use Size/Area Parking Rate
Minimum
Parking
Spaces
Required
Existing
Parking
Spaces
Provided
Off-Street Parking Requirements per City of Salinas Municipal Code Furniture Store 20,146 sq. ft. Furniture Store: 1 per 600 sq. ft. 34 40 Estimated Existing Parking Demand per ITE Parking Generation Furniture Store
(ITE Land Use 890) 20,146 sq. ft. Weekday: 0.48 per 1,000 SF Saturday: 0.96 per 1,000 SF 191 40 Sources:

Table 37-50.100, Section 37-50.350, City of Salinas Municipal Code (Basic Requirements for Off-Street Parking and Loading.

ITE Parking Generation Manual (5th Edition, January 2019). 1 Based on peak Saturday parking demand rate per ITE Parking Generation Manual (5th Edition, January 2019)

PROPOSED PROJECT PARKING REQUIREMENT
Table 37-50.100 (Schedule A: Off-Street Parking and Loading Spaces Required) in Section 37-50.350 of the City of Salinas Municipal Code does not include a specific parking requirement rate for a cannabis dispensary use. Per Table 37-50.100, any retail sales uses that are not listed as a specific use classification are required to use the general retail sales parking rate of 1 space per 300 square-feet. In addition, because the existing 20,146 square-foot building would be shared by two different tenants/owners, the proposed uses would be defined as a shopping center, which has a parking rate of 1 space per 250 square-feet for floor areas over 15,000 square-feet.

Based on the 5,726 square-foot floor area of the proposed cannabis dispensary use and excluding the other proposed uses, a minimum of 20 parking spaces would be required per the City’s general retail sales parking rate. The proposed distribution use would be similar to a warehousing and storage use, which has a parking rate of 1 space per 1,000 square-feet per Table 37-50.100 in Section 37-50.350 of the City of Salinas Municipal Code. If the City’s warehousing and storage parking rate was applied to the 2,387 square-foot distribution area, an additional 3 parking spaces would be required. If the City’s furniture store parking rate of 1 space per 600 square-feet was applied to the proposed 9,373 square-foot furniture store use, an additional 16 parking spaces would be required, and a combined total of 39 parking spaces would be required for the project.

Mr. Grant Palmer
February 9, 2024

Page 3 of 11 ends

The City of Salinas zoning code does not allow for bifurcation of uses for parking requirements when the primary use is commercial retail, and also because the existing 20,146 square-foot building would be shared by two different tenants/owners, the City’s shopping center (floor areas over 15,000 square-feet) parking rate of 1 space per 250 square-feet would be required to be used for the entire 20,146 square-foot building.

If the City’s shopping center parking rate was applied to the 20,146 square-foot project floor area, a minimum of 81 parking spaces would be required. The project proposes to provide a total of 40 parking spaces; therefore, the project would have a shortage of 41 parking spaces if the City’s shopping center parking rate was used for the entire site.

Table 2 below summarizes the minimum parking spaces that would be required if using a combination of the City’s general retail, warehousing/storage, and furniture store parking rates versus using the City’s shopping center parking rate for the entire 20,146 square-foot building.

Table 2
City of Salinas Off-Street Parking Requirements
Proposed Use Size/Area No. of
Employees City’s Parking Rate
Minimum
Parking
Spaces
Required
Parking
Spaces
Provided
(Surplus/
Shortage)
Minimum Required Parking Based on General Retail/Warehousing/Furniture Store Parking Rates Cannabis Dispensary 5,726 sq. ft.

Total: 30
Onsite: 10
General Retail: 1 per 300 sq. ft. 20
40 Distribution 2,387 sq. ft. Warehousing/Storage: 1 per 1,000 sq. ft. 3 Employee Area 2,660 sq. ft. Ancillary Use 0
Furniture Store 9,373 sq. ft. Furniture Store: 1 per 600 sq. ft. 16 Total 39 40 (+1)
Minimum Required Parking Based on Shopping Center Parking Rate Only Cannabis Dispensary/
Furniture Store 20,146 sq. ft. Total: 30 Onsite: 10
Shopping Center (over 15,000 sq. ft.):
1 per 250 sq. ft. 81 40 (-41)
Source:

Table 37-50.100, Section 37-50.350, City of Salinas Municipal Code (Basic Requirements for Off-Street Parking and Loading Due to the lack of a specific parking rate for a cannabis dispensary use in the City’s Municipal Code, this parking demand study has been prepared to survey four existing cannabis dispensary sites with the purpose of calculating a peak parking demand rate that is specific to a cannabis dispensary use.

Mr. Grant Palmer
February 9, 2024

Page 4 of 11 ends

EXISTING PARKING OCCUPANCY SURVEYS
Parking occupancy surveys were conducted at four existing cannabis dispensaries in the greater SalinasSanta Cruz area on one weekday (Tuesday and Thursday) and on one weekend day (Saturday) to develop a specific parking demand rate for a cannabis dispensary in the local area. The existing cannabis dispensaries were selected based on the following criteria to ensure accuracy and comparability to the proposed site:
• Occupies a stand-alone building that is not shared with other businesses; and • Provides a parking lot that is exclusively used by the cannabis dispensary and is not shared with other uses.

The following existing cannabis dispensaries met the above-listed criteria, and parking occupancy surveys were conducted at these sites on Saturday, May 14, 2022, Tuesday, May 17, 2022, Saturday, June 25, 2022, and Thursday, June 30, 2022:
1) Santa Cruz Naturals, 9077 Soquel Drive, Aptos, CA
2) White Fire Prunedale, 2329 San Miguel Canyon Road, Prunedale, CA 3) One Plant, 10031 Reese Circle, Salinas, CA
4) East of Eden Cannabis Co., 8022 Moss Landing Road, Moss Landing, CA The number of parking spaces provided for each cannabis dispensary site was counted prior to conducting the parking occupancy surveys to determine the parking utilization rates by time of day for each survey site.

Below are the current hours of operation for each of the cannabis dispensary survey sites:

Santa Cruz Naturals
• Monday-Friday: 8:00 AM – 8:00 PM
• Saturday-Sunday: 10:00 AM - 8:00 PM
White Fire Prunedale
• Monday-Sunday: 8:00 AM – 8:00 PM
One Plant
• Monday-Sunday: 9:00 AM – 8:00 PM
East of Eden Cannabis Co.
• Monday-Sunday: 8:00 AM – 8:00 PM
The Institute of Transportation Engineers (ITE) Parking Generation Manual (5th Edition, 2019) provides a time-of-day distribution of parking demand for a cannabis dispensary use, which shows a peak parking demand at 2:00 PM, and with at least 50% of the peak parking demand occurring between 10:00 AM and 7:00 PM.

Based on the published ITE time-of-day parking demand distribution for a cannabis dispensary and the hours of operation for the four selected cannabis dispensary survey sites, the parking occupancy surveys were recorded on an hourly basis beginning at 10:00 AM and ending at 8:00 PM.

Mr. Grant Palmer
February 9, 2024

Page 5 of 11 ends

Table 3 provides the results of the weekday parking occupancy survey, and the results of the weekend parking occupancy survey are provided in Table 4. The raw parking count data is provided in Attachment A following this letter.

Tables 3 and 4 show the following peak parking utilizations of the individual existing cannabis dispensaries:
• Santa Cruz Naturals: Weekday = 38% (5-6 PM); Weekend = 23% (4-6 PM) • White Fire Prunedale: Weekday = 17% (4-6 PM); Weekend = 28% (5-6 PM) • One Plant: Weekday = 61% (3-4 PM); Weekend = 61% (1-2 PM) • East of Eden Cannabis Co.: Weekday = 25% (10 AM-1 PM); Weekend = 50% (3-4 PM) Table 3 shows that the average peak parking utilization of the four cannabis dispensary sites occurs between 3:00 PM and 4:00 PM on a typical weekday, with an average peak parking utilization of 32%.

Table 4 shows that on a typical weekend, the average peak parking utilization of the four cannabis dispensary sites occurs between 3:00 PM and 5:00 PM, with an average peak parking utilization of 35%.

PARKING DEMAND ANALYSIS
The results of the parking occupancy surveys were used to develop weekday and weekend parking demand rates for a cannabis dispensary use, which will be used to determine the estimated peak parking demand and required parking spaces for the proposed CannaCruz Salinas cannabis dispensary store.

Individual peak parking demand rates were calculated for each of the four existing cannabis dispensaries based on the number of parking spaces per thousand square-feet of building area. The approximate building areas of the four cannabis dispensary locations are listed below:
• Santa Cruz Naturals: 1,674 square-feet
• White Fire Prunedale: 1,646 square-feet
• One Plant: 7,240 square-feet (includes distribution and storage space) • East of Eden Cannabis Co.: 3,048 square-feet
Weekday and weekend peak parking demand rates for the four above-listed cannabis dispensary locations were calculated by dividing the peak parking demand (highest occupied parking spaces) by the building area in thousands of square-feet, as shown in the following equation: A = B / (C / 1,000), where A is the peak parking demand rate, B is the peak parking demand highest occupied parking spaces), and C is the building area in square-feet, which is divided by 1,000 to convert building area to thousand square-feet.

The results of the weekday and weekend peak parking demand rate calculations are shown in Table 5 and Table 6, respectively.

As shown in Table 5, the average weekday peak parking demand rate was calculated at 1.75 parking spaces per thousand square-feet.

Table 6 shows that the average weekend peak parking demand rate was calculated at 1.92 parking spaces per thousand square-feet.

Mr. Grant Palmer
February 9, 2024 Page 6 of 11
Table 3
Existing Weekday Parking Occupancy Surveys
Time
Santa Cruz Naturals
9077 Soquel Drive
Aptos, CA
White Fire Prunedale
2329 San Miguel
Canyon Road
Prunedale, CA
One Plant
10031 Reese Circle
Salinas, CA
East of Eden Cannabis Co.
8022 Moss Landing Road
Moss Landing, CA

TOTAL SURVEY
SITES
Parking Supply Parking Supply Parking Supply Parking Supply Parking Supply 13 18 18 8 57
Occupied
Parking
Spaces
Percent
Utilization
Occupied
Parking
Spaces
Percent
Utilization
Occupied
Parking
Spaces
Percent
Utilization
Occupied
Parking
Spaces
Percent
Utilization
Total
Occupied
Spaces
Average
Percent
Utilization
10:00 - 11:00 AM 2 15% 1 6% 8 44% 2 25% 13 23%
11:00 AM - 12:00 PM 1 8% 2 11% 10 56% 2 25% 15 26%
12:00 - 1:00 PM 1 8% 2 11% 8 44% 2 25% 13 23%
1:00 - 2:00 PM 1 8% 1 6% 7 39% 1 13% 10 18% 2:00 - 3:00 PM 2 15% 0 0% 9 50% 1 13% 12 21% 3:00 - 4:00 PM 4 31% 2 11% 11 61% 1 13% 18 32%
4:00 - 5:00 PM 4 31% 3 17% 8 44% 0 0% 15 26% 5:00 - 6:00 PM 5 38% 3 17% 9 50% 0 0% 17 30% 6:00 - 7:00 PM 3 23% 1 6% 6 33% 1 13% 11 19% 7:00 - 8:00 PM 2 15% 1 6% 7 39% 0 0% 10 18% Note: Hour with the highest parking demand for each individual site is shaded in gray, and the hour with the highest overall parking demand is outlined in thick box and indicated in bold.

Mr. Grant Palmer
February 9, 2024 Page 7 of 11
Table 4
Existing Weekend Parking Occupancy Surveys
Time
Santa Cruz Naturals
9077 Soquel Drive
Aptos, CA
White Fire Prunedale
2329 San Miguel
Canyon Road
Prunedale, CA
One Plant
10031 Reese Circle
Salinas, CA
East of Eden Cannabis Co.
8022 Moss Landing Road
Moss Landing, CA

TOTAL SURVEY
SITES
Parking Supply Parking Supply Parking Supply Parking Supply Parking Supply 13 18 18 8 57
Occupied
Parking
Spaces
Percent
Utilization
Occupied
Parking
Spaces
Percent
Utilization
Occupied
Parking
Spaces
Percent
Utilization
Occupied
Parking
Spaces
Percent
Utilization
Total
Occupied
Spaces
Average
Percent
Utilization
10:00 - 11:00 AM 1 8% 2 11% 9 50% 0 0% 12 21%
11:00 AM - 12:00 PM 2 15% 1 6% 10 56% 2 25% 15 26%
12:00 - 1:00 PM 2 15% 1 6% 9 50% 1 13% 13 23%
1:00 - 2:00 PM 1 8% 1 6% 11 61% 1 13% 14 25% 2:00 - 3:00 PM 0 0% 2 11% 8 44% 2 25% 12 21% 3:00 - 4:00 PM 2 15% 4 22% 10 56% 4 50% 20 35% 4:00 - 5:00 PM 3 23% 4 22% 10 56% 3 38% 20 35% 5:00 - 6:00 PM 3 23% 5 28% 9 50% 1 13% 18 32% 6:00 - 7:00 PM 1 8% 3 17% 9 50% 1 13% 14 25% 7:00 - 8:00 PM 1 8% 2 11% 6 33% 3 38% 12 21% Note: Hour with the highest parking demand for each individual site is shaded in gray, and the hour with the highest overall parking demand is outlined in thick box and indicated in bold.

Mr. Grant Palmer
February 9, 2024

Page 8 of 11 ends

Table 5
Weekday Peak Parking Demand Rate Calculations
Time
Santa Cruz Naturals
9077 Soquel Drive
Aptos, CA
White Fire Prunedale
2329 San Miguel Canyon Road
Prunedale, CA
One Plant
10031 Reese Circle
Salinas, CA
East of Eden Cannabis Co.
8022 Moss Landing Road
Moss Landing, CA
Average
Weekday
Peak
Parking
Demand
Rate
(per KSF)
Parking Supply Parking Supply Parking Supply Parking Supply 13 18 18 8
Building Size (Sq. Ft.) Building Size (Sq. Ft.) Building Size (Sq. Ft.) Building Size (Sq. Ft.) 1,674 1,646 7,240 3,048
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
10:00 - 11:00 AM 2 15% 1 6% 8 44% 2 25%

1.75 11:00 AM - 12:00 PM 1 8% 2 11% 10 56% 2 25% 0.66
12:00 - 1:00 PM 1 8% 2 11% 8 44% 2 25%
1:00 - 2:00 PM 1 8% 1 6% 7 39% 1 13% 2:00 - 3:00 PM 2 15% 0 0% 9 50% 1 13% 3:00 - 4:00 PM 4 31% 2 11% 11 61% 1.52 1 13% 4:00 - 5:00 PM 4 31% 3 17% 1.82 8 44% 0 0% 5:00 - 6:00 PM 5 38% 2.99 3 17% 9 50% 0 0% 6:00 - 7:00 PM 3 23% 1 6% 6 33% 1 13% 7:00 - 8:00 PM 2 15% 1 6% 7 39% 0 0% Note: Peak parking demand rates for the individual cannabis dispensaries are shaded in gray and indicated in bold. KSF = Thousand Square-Feet 1 Each parking demand rate was calculated by dividing the peak parking demand (highest occupied parking spaces) by the building area in thousands of square-feet, as shown in the following equation: A = B / (C / 1,000), where A is the parking demand rate, B is peak parking demand highest occupied parking spaces), and C is the building area in square-feet, which is divided by1,000 to convert building area to thousand square-feet.

Mr. Grant Palmer
February 9, 2024

Page 9 of 11 ends

Table 6
Weekend Peak Parking Demand Rate Calculations
Time
Santa Cruz Naturals
9077 Soquel Drive
Aptos, CA
White Fire Prunedale
2329 San Miguel Canyon Road
Prunedale, CA
One Plant
10031 Reese Circle
Salinas, CA
East of Eden Cannabis Co.
8022 Moss Landing Road
Moss Landing, CA
Average
Saturday
Peak
Parking
Demand
Rate
(per KSF)
Parking Supply Parking Supply Parking Supply Parking Supply 13 18 18 8
Building Size (Sq. Ft.) Building Size (Sq. Ft.) Building Size (Sq. Ft.) Building Size (Sq. Ft.) 1,674 1,646 7,240 3,048
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
Occupied
Parking
Spaces
Percent
Utilization
Peak
Parking
Demand
Rate1
(per KSF)
10:00 - 11:00 AM 1 8% 2 11% 9 50% 0 0%

1.92 11:00 AM - 12:00 PM 2 15% 1 6% 10 56% 2 25%
12:00 - 1:00 PM 2 15% 1 6% 9 50% 1 13%
1:00 - 2:00 PM 1 8% 1 6% 11 61% 1.52 1 13% 2:00 - 3:00 PM 0 0% 2 11% 8 44% 2 25% 3:00 - 4:00 PM 2 15% 4 22% 10 56% 4 50% 1.31 4:00 - 5:00 PM 3 23% 1.79 4 22% 10 56% 3 38% 5:00 - 6:00 PM 3 23% 5 28% 3.04 9 50% 1 13% 6:00 - 7:00 PM 1 8% 3 17% 9 50% 1 13% 7:00 - 8:00 PM 1 8% 2 11% 6 33% 3 38% Note: Peak parking demand rates for the individual cannabis dispensaries are shaded in gray and indicated in bold. KSF = Thousand Square-Feet 1 Each parking demand rate was calculated by dividing the peak parking demand (highest occupied parking spaces) by the building area in thousands of square-feet, as shown in the following equation: A = B / (C / 1,000), where A is the parking demand rate, B is peak parking demand highest occupied parking spaces), and C is the building area in square-feet, which is divided by 1,000 to convert building area to thousand square-feet.

Mr. Grant Palmer
February 9, 2024

Page 10 of 11 ends

Based on the calculated peak parking demand rates shown in Tables 5 and 6, weighted average peak parking demand rates for an entire week (7 days) were calculated for the individual survey sites, from which an overall weighted average parking rate for an entire week was calculated. The weighted average calculations were made by applying the weekday peak parking demand rates over a 4-day period from Monday through Thursday, and by applying the weekend peak parking demand rates over a 3-day period from Friday through Sunday.

The following equation shows how the weighted average peak demand parking rates were calculated: A = ((B x 4) + (C x 3)) / 7, where A is the weighted average peak parking demand rate, B is the weekday peak parking rate, and C is the weekend peak parking demand rate. The overall average peak parking demand rate was calculated by dividing the sum of the individual average peak parking demand rates of the survey sites by the number of survey sites (4).

Table 7 shows the results of the weighted average peak parking demand rates for the individual survey sites and the overall weighted average peak parking demand rate.

Table 7
Weighted Average Peak Parking Demand Rate Calculations
Survey Site
Weekday
Peak Parking
Demand
Rate
(per KSF)
Weekend
Peak Parking
Demand Rate
(per KSF)
Weighted
Average
Peak Parking
Demand Rate
(per KSF)
Santa Cruz Naturals
9077 Soquel Drive, Aptos, CA 2.99 1.79 2.47
White Fire Prunedale
2329 San Miguel Canyon Road
Prunedale, CA

1.82 3.04 2.34
One Plant
10031 Reese Circle, Salinas, CA 1.52 1.52 1.52
East of Eden Cannabis Co.
8022 Moss Landing Road
Moss Landing, CA

0.66 1.31 0.94
Overall Weighted Average Peak Parking Demand Rate (per KSF) 1.82 1The weighted average calculations were made by applying the weekday peak parking demand rates over a 4-day period from Monday through Thursday, and by applying the weekend peak parking demand rates over a 3-day period from Friday through Sunday.

As shown in Table 7, an overall average peak parking demand rate of 1.82 parking spaces per thousand square-feet was calculated for a cannabis dispensary use. To compare with the City’s parking rates that are typically based on 1 parking space per floor area size, the calculated cannabis dispensary peak parking demand of 1.82 parking spaces per thousand square-feet would be approximately 1 parking space per 550 square-feet.

Based on the overall weighted average peak parking demand rate shown in Table 7, the estimated peak parking demand for the proposed CannaCruz Salinas cannabis dispensary and proposed furniture store is shown below in Table 8. Because the calculated peak parking demand rate for a cannabis dispensary (1 parking space per 550 square-feet) would be higher than that of a furniture store (1 parking space per 600 square-feet), the cannabis dispensary parking rate was applied to the entire 20,146 square-foot building.

Mr. Grant Palmer
February 9, 2024

Page 11 of 11 ends

Table 8
Estimated Peak Parking Demand of Proposed Project
Land Use Size Unit Peak Parking
Demand Rate
Peak
Parking
Demand
(No. of Spaces)
Existing
On-Site
Parking
Spaces
Parking
Surplus
Cannabis Dispensary/
Furniture Store 20.146 KSF 1 per 550 SF (1.82 per KSF) 37 40 3 KSF = Thousand Square-Feet
1 Based on weighted weekday/weekend average peak parking demand rate that was derived from the parking occupancy counts that were collected at four existing cannabis dispensary facilities.

As shown in Table 8, the proposed CannaCruz Salinas cannabis dispensary is estimated to generate a peak parking demand for 37 parking spaces. The project site currently provides 40 parking spaces.

CONCLUSIONS
This parking demand study was prepared to evaluate the parking requirement of the CannaCruz Salinas cannabis dispensary store, which proposes to relocate from its current site at 1156 Abbott Street in Salinas to a site located at 1228 South Main Street in Salinas.

Since the City of Salinas Municipal Code does not include any published parking rate for a cannabis dispensary use, parking occupancy surveys were conducted at four cannabis dispensary sample sites in the greater Salinas/Santa Cruz area. Parking demand rates were calculated based on the peak parking demand and building square-footage of each cannabis dispensary. The weighted average weekday/weekend peak parking demand rates were calculated for each surveyed cannabis dispensary, and an overall weighted average peak parking demand rate was calculated and applied to the proposed CannaCruz Salinas site.

Utilizing these site-specific parking rates, the CannaCruz Salinas cannabis dispensary and proposed furniture store was estimated to generate a peak parking demand for 37 parking spaces, resulting in a surplus of 3 parking spaces. Therefore, the results of this parking demand study show that the existing 40 on-site parking spaces are anticipated to provide sufficient parking for the proposed project.

It must be noted that this parking demand analysis is conservative by using the project’s entire building square-footage (20,146 square-feet) to calculate the peak parking demand rather than only the retail sales areas of the combined cannabis dispensary and furniture store (15,099 square-feet). Most existing cannabis dispensaries have floor areas under 10,000 square-feet, with the four survey cannabis dispensaries providing examples of typical floor area sizes for this type of use.

If you have any questions regarding the results of this analysis, please contact me directly at (619) 291- 0707.

Sincerely,

RICK ENGINEERING COMPANY

David Mizell, AICP Mark Jugar, P.E., T.E., P.T.O.E.

Associate Traffic Planner Associate
L:\Files\19633\text\19633.003.CannaCruzSalinasPkgStudy_REVISED_2024-0209.docx Attachments
(E.) ROLL-UP DOOR

DISTRIBUTOR

PRODUCT STORAGE
630 ft²

ORDER FULFILLMENT
1067 ft²

SECURED

CASHIER AREA
504 ft²
MERCH. SALES AREA
1360 ft²

ENTRY / LOBBY
565 ft²

RETAIL AREA
2200 ft²

BREAK ROOM
200 ft²
OFFICE
192 ft²
RETAIL

STORAGE
62 ft²

SAFE ROOM
SERVER ROOM 89 ft²
68 ft²

DISTRIBUTOR

PRODUCT INTAKE / SAMPLING (BY TEST LAB)
/ BATCH STORAGE
407 ft²

SECURITY OFFICE
152 ft²
POS

ONE-WAY GLASS

XPRESS XPRESS XPRESS XPRESS

ARTWORK
POS

FALSE WALL - WINDOW DISPLAYS

RECEPTION DESK
MERCH.

POS
(E.) RAMP
UP

STAFF LOCKERS
(TO BE DETERMINED BY SITE VISIT)
UP

CASHIER CASHIER CASHIER

CASHIER

CASHIER
(E.) RAMP
UP

PASSAGEWAY
206 ft²

ARTWORK / PHOTO MOMENT ARTWORK / PHOTO MOMENT

VENDOR POP-UP STATION
416 ft²
(E.) STAIRS UP

MEDIA AREA
619 ft²

ONE-WAY GLASS
COUNTER + WALL SHELVES

PRODUCT DISPLAY CASES

PRODUCT DISPLAY CASESPRODUCT DISPLAY CASES

NO PARKING

DISTRIBUTOR

SECURE VEHICLE LOADING AREA

WASTE STORAGE
283 ft²

STORAGE
67 ft²
(E.) W/C
80 ft²
(E.) W/C
80 ft²
ENTRY
ENTRY
S. MAIN STREET

NEW BIKE RACKS

NEW BIKE RACKS
21'-6 1/16" 34'-5" 10'-5 1/8" 13'-8" 9'-11" 9'-5 7/16" 16'-5 5/8" 7'-5" 7'-5" 64'-6 1/8" 201'-10"
6'-9" 14'-0"
6'-6" 5'-9" 15'-9" 10'-5"5'-5"
29'-2" 14'-5" 14'-6" 29'-4"
47'-4 1/2" 35'-6" 35'-0"
30'-8"
81'-6 3/16"
40'-10 1/8" 19'-1" 19'-0" 19'-5" 19'-0" 28'-4" 18'-2" 19'-7" 14'-9" 29'-10" 120'-2" 90'-2"
SHEET NO.

DATESCALE
NO. DATE REVISION / ISSUE

SHEET SIZE
11x17
1 2
SALINAS, CA.

PROFESSIONAL SEAL

DRAWN BY

PROPOSED FLOOR PLAN
COMMENTS:

R.F.

AS NOTED
1 A02

PROPOSED FLOOR PLAN
SCALE: 1/16" = 1'-0"
1228 MAIN STREET, SALINAS CA. 93901
APN: 016-161-052
2-7-24

CANNABIS RETAIL DISPENSARY

PROPOSED TENANT IMPROVEMENT
NOTE:Distribution – pre-test batches, sampling, post-test batches, packaging, labeling, records storage, surveillance system storage, loading/unloading/inventory intake, order fulfillmentFulfillment – receipt of retail orders and fulfillment of retail orders from distribution product storage (wholesale to retail) TOTAL RETAIL = 5,726 SQ. FT. TOTAL RETAIL FULFILLMENT = 2,387 SQ. FT TOTAL EMPLOYEE/OFFICE = 1,134 SQ. FT.

COMMON AREA = 1,526 SF SQ. FT.

UNIT B

PROPOSED CHANGE OF USE TO

CANNABIS RETAIL &

ANCILLARY DISTRIBUTION
9,247 ft² UNIT A

NO CHANGE IN USE PROPOSED

EXISTING FURNITURE RETAIL
9,373 ft²

ATTACHMENT A

Metro Traffic Data Inc.
310 N. Irwin Street - Suite 20
Hanford, CA 93230 Prepared For: