Agenda packet — Santee City Council, August 27, 2025 (part 2 of 3)

RESOLUTION NO.
10 g. California native/drought-tolerant plants shall be used to the maximum extent feasible to minimize the need for irrigation. Where irrigation is necessary, then the system shall be designed and installed to prevent overspray or irrigation runoff during normal operations and during a break in the line.
h. Provide a narrative in the source control section regarding the types of material to be stored outdoors and how materials shall be covered and/or protected from the outside elements and be stored above the finished grade to prevent contact with the storm water runoff.
i. The final project submittal shall include a standalone Operation and Maintenance (O&M) Plan in accordance with the City of Santee BMP Design Manual.

29. Construction Site Storm Water Compliance (Engineering) a. Provide proof of coverage under the General Permit for Discharges of Storm Water Associated with Construction Activity (Construction General Permit, WQ 2022-0057-DWQ) prior to start of construction. This project disturbs one or more acres of soil or disturbs less than one acre but is part of a larger common plan of development that in total disturbs one or more acres.

Construction activity subject to this permit includes clearing, grading and disturbances to the ground such as stockpiling, or excavation. b. Submit a copy of the draft project specific Storm Water Pollution Prevention Plan (SWPPP) to the City for review and approval. The Construction SWPPP should contain a site map(s) which shows the construction site perimeter, existing and proposed buildings, lots, roadways, storm water collection and discharge points, general topography both before and after construction, and drainage patterns across the project. The Construction SWPPP must list Best Management Practices (BMP’s) the applicant will use to protect storm water runoff and the placement of those BMP’s. Section XIV of the Construction General Permit describes the SWPPP requirements.

ROUGH GRADING: Prior to any grading or site preparation activities the applicant shall complete the following to the satisfaction of the applicable Department.

30. Prior to the start of construction activities and issuance of grading permits, the Project applicant, or its designee, shall ensure that all 75 horsepower or greater diesel-powered equipment are powered with California Air Resources Board (CARB)-certified Tier 4 Interim engines or better. (Planning) RESOLUTION NO.
11 31. A “noise disturbance coordinator” shall be established. The noise disturbance coordinator shall be responsible for responding to any local complaints about construction noise. The noise disturbance coordinator shall determine the cause of the noise complaint (e.g., starting too early, bad muffler) and shall be required to implement reasonable measures to reduce noise levels. (Planning)

32. The Project will construct an 8'-0" tall approximately 568-foot-long wall along the northern perimeter of the project site. A portion of this wall will include an overlapping wall section to allow for drainage and access. The Project will begin the installation of this wall concurrently with the commencement of rough grading and complete its installation prior to the start of precise grading. (Planning)

33. Construction equipment with a manufacturer’s noise rating of 85 dBALMAX or greater, may only operate at a specific location for 10 consecutive workdays. If work involving such equipment will be operating for more than 10 consecutive workdays, a notice must be provided to all property owners and residents within 300 feet of the site no later than 10 days before the start of construction. A sign, legible at a distance of 50 feet, shall also be posted at the construction site. All notices and the signs must be approved by the City and shall indicate the dates and durations of construction activities, as well as a telephone number for a noise disturbance coordinator. (Planning)

34. In conformance with CEQA, the Migratory Bird Treaty Act and the California Fish and Game Code, brushing, clearing and /or grading shall not be allowed during bird breeding season (between January 15 and September 15). If vegetation is to be cleared during the breeding season, a qualified biologist shall perform a nesting bird survey within the proposed construction area and appropriately sized buffer no more than 72 hours prior to vegetation disturbance. If the planned vegetation disturbance does not occur within 72 hours of the nesting bird survey, then the area will be resurveyed. If nesting birds are found, then the qualified biologist will establish an adequate buffer zone (on a species-by species, caseby-case basis) in which construction activities would be prohibited until the nest is no longer active. The size of the buffer zone is determined by the biologist based on the amount, intensity, and duration of construction and can be altered based on site conditions. If appropriate, as determined by the biologist, additional monitoring of the nesting birds may be conducted during construction to ensure that nesting activities are not disrupted. (Planning)

35. In areas near or adjacent to Environmentally Sensitive Areas, construction limits shall be clearly demarcated using highly visible barriers (such as silt fencing), which shall be installed under the supervision of a qualified biologist prior to the commencement of work. Construction personnel shall strictly limit their activities, vehicles, equipment, and construction materials to the project footprint, including designated staging areas, and routes of travel. The construction areas shall be limited to the minimal area necessary to complete the proposed project. The RESOLUTION NO.
12 fencing shall remain in place until the completion of all construction activities and shall be promptly removed when construction is complete. (Planning)

36. A qualified biological monitor shall conduct construction monitoring of all work conducted within/adjacent to environmentally sensitive areas during all vegetation removal and ground-disturbing activities such as staging and grading, for the duration of the proposed project to ensure that practicable measures are being employed to avoid incidental disturbance of habitat outside the project footprints and to survey for sensitive wildlife species. When vegetation removal and ground-disturbing activities are not occurring, as-needed monitoring at the project sites shall occur. (Planning)

37. In areas near or adjacent to Environmentally Sensitive Areas, a qualified biologist shall conduct a Worker Environmental Awareness Program (WEAP) training session for project and construction personnel prior to the commencement of work.

The training shall include a description of the species of concern and their habitats, the general provisions of the Endangered Species Acts (FESA and CESA), the penalties associated with violating the provisions of the acts, the general measures that are being implemented to conserve the species of concern as they relate to the project, and the access routes to and project site boundaries. (Planning)

38. Prior to the start of ground-disturbing activities, the project paleontologist shall conduct a paleontological resource training workshop to be attended by earth excavation personnel. (Planning)

39. Prior to the start of ground-disturbing activities, the applicant shall retain a qualified archaeologist who meets the Secretary of the Interior’s Professional Qualifications Standards for archaeology (U.S. Department of the Interior 2012).

The applicant shall also retain a Native American monitor of Kumeyaay decent. (Planning)

40. The qualified archaeologist shall conduct cultural resources sensitivity training for all construction personnel. Construction personnel shall be informed of the types of archaeological resources that may be encountered, and of the proper procedures to be enacted in the event of an inadvertent discovery of archaeological resources or human remains. The applicant shall ensure that construction personnel attend the training and sign an attendance acknowledgement form. The applicant shall retain documentation demonstrating attendance. (Planning)

41. Prior to delivery of combustible materials to the Project site, fire apparatus access roads shall be installed leading to within 150 feet of any area where combustible materials will be placed. These fire apparatus access roads must provide all weather driving capabilities, and support the weight of a fire engine (78,000 lbs.).

The first layer of asphalt is permitted. All underground utilities including fire RESOLUTION NO.
13 mains, fire hydrants and fire service underground devices shall be installed prior to the delivery of construction materials. (Fire)
DURING GRADING: During any grading, site preparation or construction activities, the applicant shall complete the following conditions to the satisfaction of the applicable Department:

42. All vehicles, equipment, tools, and supplies shall stay within the limits of the impact area. (Planning)

43. During construction activities, the following best management practices (BMPs) shall be implemented:
a. All equipment maintenance, staging, and dispensing of fuel, oil, or any other such activities shall occur in developed or designated non-sensitive upland habitat areas. The designated upland areas shall be located to prevent runoff from any spills from entering Waters of the US.
 Construction Storm Water Pollution Prevention Plan
(SWPPP) and a soil erosion and sedimentation plan
shall be developed (where requirements are met) to
minimize erosion and identify specific pollution
prevention measures that shall eliminate or control
potential point and nonpoint pollution sources on site
during and following the project construction phase.

The SWPPP shall identify specific BMPs during project
construction to prevent any water quality standard
exceedances. In addition, the SWPPP shall contain
provisions for changes to the plan such as alternative
mechanisms, if necessary, during project design
and/or construction to achieve the stated goals and
performance standards.
b. Trash shall be stored in closed containers so that it is not readily accessible to scavengers and shall be removed from the construction site on a daily basis.
c. Water quality shall be visually monitored by the biological monitor to ensure that no substantial increases in turbidity occur during construction. d. All relevant natural resource permits and authorizations shall be obtained from appropriate agencies (i.e., USACE, RWQCB, and CDFW) prior to the initiation of construction activities. Permit conditions contained within the permits and authorizations shall be employed throughout the duration of the project.
e. Hydrologic connectivity shall be maintained within drainages during the duration of construction. Brush, debris material, mud, silt, or other pollutants from construction activities shall not be placed within drainages and shall not be allowed to enter a flowing stream.

RESOLUTION NO.
14 f. Dust control measures shall be implemented by the contractor to reduce excessive dust emissions. Dust control measures shall be carried out at least two times per day on all construction days, or more during windy or dry periods, and may include wetting work areas, the use of soil binders on dirt roads, and wetting or covering stockpiles.
g. No pets shall be allowed in, or adjacent to, the project sites. h. Rodenticides, herbicides, insecticides, or other chemicals that could potentially harm wildlife or native plants shall not be used near or within Environmentally Sensitive Areas within or near the roadway segments. i. Construction equipment shall be cleaned of mud or other debris that may contain invasive plants and/or seeds and inspected to reduce the potential of spreading noxious weeds before mobilizing to the site and before leaving the site during the course of construction.
j. The cleaning of equipment will occur at least 300 feet from Environmentally Sensitive Area fencing. (Planning)

44. The construction contractor shall use construction equipment powered by California Air Resources Board certified Tier 4, or newer, engines and haul trucks that conform to current U.S. Environmental Protection Agency truck standards. (Planning)

45. The on-site construction superintendent shall ensure implementation of standard BMPs as required by the San Diego Air Pollution Control District (SDAPCD) Rules 50, 51, 52, 54 and 55 Fugitive Dust Control. (Planning)

46. The on-site construction superintendent shall ensure implementation of applicable California Department of Resources Recycling and Recovery (CalRecycle) Sustainable (Green) Building Program Measures, as specified on the CalRecycle website. (Planning)

47. The Construction Contractor shall ensure that construction of the project complies with the recommendations identified in the project specific geotechnical investigation. Recommendations related to general construction, seismic considerations, earthwork, foundations, building floor slabs, lateral earth pressures, corrosivity, drainage, storm infiltrations, exterior concrete and masonry flatwork and paved areas shall be adhered to during all project design and construction. (Planning)

48. All feasible noise reducing strategies should be implemented where possible including:
a. Ensuring that construction equipment is properly maintained and equipped with noise control components, such as mufflers, in accordance with manufacturers’ specifications;
b. Re-routing of construction equipment away from adjacent noise-sensitive uses;
RESOLUTION NO.
15 c. Locating noisy construction equipment away from surrounding noisesensitive uses; d. Using sound aprons or temporary noise enclosures around noisegenerating equipment; e. Positioning storage of waste materials, earth, and other supplies in a manner that will function as a noise barrier for surrounding noise-sensitive uses;
f. Using the quietest practical type of equipment;
g. Using electric powered equipment instead of diesel or gasoline engine powered equipment;
h. Using shrouding or shielding and intake and exhaust silencers/mufflers; and i. Any other effective and feasible strategies to reduce construction noise exposure for surrounding noise-sensitive uses. (Planning)

49. All idling equipment shall be turned off when not in use. (Planning)

50. Equipment shall be properly serviced and maintained to manufacturers standards ensuring that vehicles and their loads are secured from rattling and banging. (Planning)

51. The qualified archaeologist, or an archaeological monitor (working under the direct supervision of the qualified archaeologist), shall observe all initial grounddisturbing activities, including but not limited to brush clearance, vegetation removal, grubbing, grading, and excavation. The qualified archaeologist, in coordination with the applicant and the City, may reduce or discontinue monitoring if it is determined by the qualified archaeologist that the possibility of encountering buried archaeological deposits is low based on observations of soil stratigraphy or other factors. Archaeological monitoring shall be conducted by an archaeologist familiar with the types of archaeological resources that could be encountered within the project site. The archaeological monitor shall be empowered to halt or redirect ground-disturbing activities away from the vicinity of a discovery until the qualified archaeologist has evaluated the discovery and determined appropriate treatment (as prescribed below). The archaeological monitor shall keep daily logs detailing the types of activities and soils observed, and any discoveries. After monitoring has been completed, the qualified archaeologist shall prepare a monitoring report that details the results of monitoring. The report shall be submitted to the City and any Native American groups who request a copy. A copy of the final report shall be filed at the South Coastal Information Center (SCIC). (Planning)

52. A Native American Monitor of Kumeyaay decent shall be present for any preconstruction meeting and for all ground disturbing activities associated with the project. Should any cultural or tribal cultural resources be discovered, no further grading shall occur in the area of the discovery until the City Planner, or designee, with concurrence from the Native American Monitor, are satisfied that treatment of the resource has occurred. In the event that a unique archaeological RESOLUTION NO.
16 resource or tribal cultural resource is discovered, and in accordance with Public Resources Code Section 21083.2(b)(1), (2), and (4), the resource shall be moved and buried in an open space area of the Project site, such as slope areas, which will not be subject to further grading activity, erosion, flooding, or any other ground disturbance that has the potential to expose the resource. The on-site area to which the resource is moved shall be protected in perpetuity as permanent open space. No identification of the resource shall be made on-site; however, the Applicant shall plot the new location of the resource on a map showing latitudinal and longitudinal coordinates and provide that map to the Native American Heritage Commission (NAHC) for inclusion in the Sacred Lands File (SLF). Disposition of the resources shall be at the discretion of the City of Santee, but in accordance with the foregoing. (Planning)

53. In the event of the unanticipated discovery of archaeological materials, all work shall immediately cease in the area (within 100 feet) of the discovery until it can be evaluated by the qualified archaeologist in consultation with the Native American monitor. Construction shall not resume until the qualified archaeologist has conferred with the applicant and the City on the significance of the resource. (Planning)

54. If it is determined that the discovered archaeological resource constitutes a historical resource or a unique archaeological resource under CEQA, avoidance and preservation in place is the preferred manner of mitigation. Preservation in place may be accomplished by, but is not limited to, avoidance, incorporating the resource into open space, capping, or deeding the site into a permanent conservation easement. In the event that preservation in place is demonstrated to be infeasible and data recovery through excavation is the only feasible mitigation available, a Cultural Resources Treatment Plan shall be prepared and implemented by the qualified archaeologist in consultation with the applicant and the City that provides for the adequate recovery of the scientifically consequential information contained in the archaeological resource. The qualified archaeologist and the City shall consult with appropriate Native American representatives in determining treatment for prehistoric or Native American resources to ensure cultural values ascribed to the resources, beyond those which are scientifically important, are considered. (Planning)

55. If human remains are encountered, all work shall halt in the vicinity (within 100 feet) of the discovery and the San Diego County Coroner will be contacted in accordance with PRC Section 5097.98 and Health and Safety Code Section 7050.5. The applicant and the City will also be notified. If the County Coroner determines that the remains are Native American, the NAHC will be notified in accordance with Health and Safety Code Section 7050.5, subdivision (c), and PRC Section 5097.98 (as amended by AB 2641). The NAHC will designate a Most Likely Descendant (MLD) for the remains per PRC Section 5097.98. The MLD shall complete the inspection of the site within 48 hours of being granted access and shall provide recommendations for the treatment of the remains. Until RESOLUTION NO.
17 the landowner has conferred with the MLD, the applicant will ensure that the immediate vicinity where the discovery occurred is not disturbed by further activity, is adequately protected according to generally accepted cultural or archaeological standards or practices. (Planning)

56. A project paleontologist or paleontological monitor shall be present during all earthwork in formations with moderate to high paleontological sensitivity. A paleontological monitor (working under the direction of the project paleontologist) shall be on site on a full-time basis during all original cutting of previously undisturbed deposits. (Planning)

57. If fossils are discovered, the project paleontologist (or paleontological monitor) shall recover them. In most cases, fossil salvage can be completed in a short period of time. However, some fossil specimens (e.g., a bone bed or a complete large mammal skeleton) may require an extended salvage period. In these instances, the project paleontologist (or paleontological monitor) has the authority to temporarily direct, divert, or halt grading to allow recovery of fossil remains in a timely manner. (Planning)

58. Prepared fossils, along with copies of all pertinent field notes, photos, and maps, shall be deposited in the designated fossil repository. 8. Post-Construction Final Report: A final summary paleontological mitigation report that outlines the results of the mitigation program shall be completed and submitted to the City of Santee within two weeks of the completion of each construction phase of the proposed Project. This report shall include discussions of the methods used, stratigraphic section(s) exposed, fossils collected, inventory lists of cataloged fossils, and significance of recovered fossils. (Planning)

59. The applicant shall comply at all times with the following work hour requirements:
a. No site work, building construction, or related activities, including equipment mobilization will be permitted to start on the project prior to 7:00 am and all work for the day shall be completed by 7:00 pm, no exceptions. b. No work is permitted on Sundays or City Holidays.
c. No deliveries, including equipment drop off and pick-up, shall be made to the project except between the hours of 8:00 am and 6:00 pm, Monday through Saturday, excluding Sundays and City Holidays. Deliveries of emergency supplies or equipment necessary to secure the site or protect the public are permitted.
d. If the applicant fails or is unable to enforce compliance with their contractors, subcontractors and material suppliers regarding the specified work hours, additional reduction in work hours may be imposed by the Engineering Department.

RESOLUTION NO.
18 In addition to the above the applicant shall erect one or more signs stating the work hour restrictions. Signs shall be installed as may be required, in the vicinity of the project construction trailer if a job site trailer is used, or at such other locations as may be deemed appropriate by the Engineering Department. The sign shall be a minimum of 24” x 36” and shall be weather proofed. The sign content shall be provided by the Engineering Department. (Engineering)

60. Trench work when required within City streets shall be completed within two weeks of the initial start date, including placement of the final trench patch.

Trench plates or temporary pavement placement shall be installed at the end of each workday. Advance warning signs on lighted barricades notifying the public of trench plates and or uneven pavement shall be placed and maintained until permanent pavement repairs are made. The maximum length of time including weekends and holidays that trench plates may remain on the street is 72 hours after which temporary or permanent asphalt paving shall be placed.

61. Vehicle access on Mission Gorge Road, Cuyamaca Street, Olive Lane, Town Center Parkway, Carlton Hills Boulevard, Woodside Avenue, and Riverview Parkway shall be maintained at all times and all work shall be done at night unless otherwise approved by the Director of Engineering/City Engineer. When day work is permitted, work hours shall be from 8:30 am to 3:30 pm, including set up and breakdown of traffic control. No day work will be permitted during the holiday season, defined as beginning the Saturday before Thanksgiving Day and shall extend through New Year’s Day, unless otherwise approved by the Director of Engineering/City Engineer. (Engineering)

62. Comply with all applicable sections of the Municipal Code, Land Development Manual and Public Works Standards of the City of Santee. (Engineering) BUILDING PERMIT: Prior to approval of any building plan and the issuance of any building permit the applicant shall complete the following to the satisfaction of the applicable Department.

63. On building plans, accessible parking spaces are to be identified when parking is provided. Parking spaces for common areas shall also be identified. (Building)

64. On building plans, provide the location of the USPS mailboxes and the designated USPS parking stall. Illustrate the accessible route to the mailboxes, clear space in front of the boxes and reach ranges in compliance with California Building Standards Code. CBC 11B- (206, 305 & 308). (Building)

65. All construction plans shall include the following notes:
a. Operations shall conform to the City's Municipal Code Section 5.04.090. b. All equipment shall be equipped with properly maintained mufflers.

RESOLUTION NO.
19 c. The construction contractor shall place noise-generating construction equipment and locate construction staging areas at the greatest possible distance from sensitive uses whenever feasible during all project construction.
d. The construction contractor shall use on-site electrical sources to power equipment rather than diesel generators where feasible. (Planning)

66. The following shall be incorporated into the project construction plans: “Control of Construction Hours. Construction activities occurring as part of the project shall be subject to the limitations and requirements of Section 5.04.090 of the City Municipal Code which states that construction activities may occur between 7:00 a.m. and 7:00 p.m. Mondays through Saturdays. No construction activities shall be permitted outside of these hours or on Sundays and federal holidays.” (Planning)

67. Should temporary sales office and/or model homes(s) be desired, the applicant shall comply with the requirements of Subsection 13.06.070 E of the Santee Zoning Ordinance without the requirement to file an application for a Temporary Use Permit. Any required building permits shall first be obtained prior to the operation of a sales office and/or model home(s). (Planning)

68. All areas for storage of refuse containers, and collection and service areas, shall be enclosed or effectively screened from public view by use of a fence, wall, landscaping, berms or a combination thereof. (Planning)

69. Provide a fence plan in compliance with the fence requirements in Section

13.10.050 of the Santee Municipal Code. All interior fences shall be made of quality materials and perimeter and retaining walls shall be decorative to the satisfaction of the Planning & Building Director. (Planning)

70. A construction safety plan is required at the time of building permit application.

This plan must be approved by the Santee Fire Department prior to Construction permit issuance. Please reference CFC Chapter 33. This plan shall also include a phasing plan as approved by the Fire and Building Code Officials. (Fire)

71. The fire lane width shall be measured curb to curb (or parking space striping to parking space striping) and shall extend vertically from grade to the highest point of any structures or obstacles constructed adjacent to the fire lane. No building elements, balconies, drains, projections, or any other object shall encroach into this clear space. The fire lane(s) shall be identified by painting curbs red with white-stenciled letters indicating “NO PARKING – FIRE LANE” (where appropriate). Alternatively, signs shall be installed on the edge of the curb indicating the same. The signs shall be every 75 feet (or other approved spacing) and at the entrance to the Project area. Exact placement shall be approved by RESOLUTION NO.
20 the fire code official prior to installation. Parking spots shall not encroach into apparatus driving areas or turns. (Fire)

72. The applicant shall include provisions in their design contract with their design consultants that following approval by the City, all construction drawings or technical reports accepted by the City, exclusive of architectural building plans, shall become the property of the City. Once accepted, these plans may be freely used, copied or distributed by the City to the public or other agencies, as the City may deem appropriate. A letter of acknowledgement of this requirement from each design consultant is required at the time of plan submittal. This letter shall be in a format acceptable to the Director of Engineering/City Engineer. (Engineering)

73. To coordinate with the City Geographic Information System, horizontal and vertical control for all construction drawings, grading plans, landscape plans, street improvement plans, plot plans, etc., shall be obtained from ROS 11252.

All plans, exclusive of building plans, shall be prepared at an engineering scale of 1”=20’ unless otherwise approved by the project engineer. (Engineering)

74. Applicant shall ensure that all property corners are properly monumented. If corners have been lost or do not exist, corners shall be set, and a Record of Survey filed prior to issuance of a building permit. (Engineering)

75. Starting with the first plan check submittal, all plan sets shall be submitted concurrently to Padre Dam Municipal Water District for review and approval. The City does not coordinate the review process with Padre Dam, this is the responsibility of the design engineer and the landscape architect. Failure to properly coordinate this review may result in delay in the issuance of permits required for construction. It is incumbent upon the applicant to oversee the plan submittals of their design consultants. (Engineering)

76. Street Improvement Plans shall be submitted to the Engineering Department for review and acceptance. Prior to the start of construction of any improvements, public or private, within the limits of the public right-of-way, the applicant shall have plans accepted, agreements executed, securities posted, and an encroachment permit issued. All improvements shall be installed in accordance with City standards and at the applicant's cost unless otherwise indicated. The following improvements are conditioned as part of this development:
(Engineering)
a. Construct a minimum 32-foot-wide commercial driveway on North Woodside Avenue per City of Santee Standards. The driveway design shall be per the City of Santee Public Works Standard Drawing PW-38 and to the satisfaction of the Director of Engineering/City Engineer.

RESOLUTION NO.
21 b. Widen North Woodside Avenue to parkway standards that include 26 feet of paved roadway and 36 feet of right-of-way north of the centerline. Show the overall full right-of-way width of 66 feet, and show curb, gutter, sidewalks, street lighting, fire hydrants and pedestrian ramps at curbs. c. Prior to obtaining a Building Permit to construct buildings and structures under Development Review Permit DR-2023-0002, the applicant shall comply with the following conditions:
1) The applicant shall fund its fair share of the cost of reconstructing a portion of Woodside Avenue North. Based on the additional traffic impacts to this roadway, an estimated additional amount of $476,000 is required to offset future truck traffic volumes directly related to the Palisades Santee Commerce Center project.

Payment in the amount of $476,000 shall be made to the City of Santee.
2) The applicant shall provide a sidewalk connection to Mission Gorge Road at the west terminus of Woodside Avenue. The applicant shall provide a cash security of $50,000 as the applicant obtains the necessary permits to install said improvements. Should the improvements not be installed at the time the applicant obtains first occupancy, funds could be forfeited to the City of Santee general fund for use at the City’s discretion.
d. Street Improvement Plans shall be amended to reflect the finalized required improvements per sections PDF-TRA-1 and MM-TRA-2 as identified in the Executive Summary section of the project EIR dated February 2025. e. Street Improvement plans shall be one hundred percent (100%) complete at the time of plan check submittal, be prepared in accordance with City guidelines and the requirements set forth herein and be ready for acceptance by the City. Partial or incomplete submittals will not be accepted for plan check. The applicant shall make an electronic submittal via the City of Santee Permitting and Licensing Portal. The items to be submitted include but are not limited to the following:
1) 100% complete improvement plans.
2) Estimate for the cost of construction.
3) Resolution of Approval approving the project.

In addition to the above electronic submittal requirements, one hard copy of the full-sized improvement plans shall be provided to the project engineer.

Plan check and inspection fees shall be paid in accordance with the City Fee Schedule. The amount due will be determined by staff after the initial intake. To begin the review process, fees must be paid in full.

RESOLUTION NO.
22 OCCUPANCY: Prior to any occupancy, final grading release, or use of the premises in reliance of this permit the applicant shall complete the following to the satisfaction of the applicable Department.

77. In conformance with San Diego Air Pollution Control District’s (SDAPCD) Rule

67.0.1, Architectural Coatings, the project shall use low volatile organic compound (VOC) paints. (Planning)

78. A bond, equal to the cost of full landscape installation, shall be deposited with the Planning & Building Department and retained for a minimum of one year or until the landscaping is established to the satisfaction of the Planning & Building Director. (Planning)

79. The Project site shall be secured in an approved manner by the Fire and Building Code Officials. Fire fighter access shall be given via a Knox Company product suitable for rapid entry in the event of an incident on site. (Fire)

80. Fire hydrant locations shall be approved by the Fire Marshal prior to installation.

Eight (8) on-site private fire hydrants shall be provided. A minimum fire flow requirement of 4,000 gallons per minute at 20 psi for a 4-hour duration will be provided. Fire hydrants on site shall have one 4” port and two (2) 2½” ports. (Fire)

81. A deferred submittal is required to be submitted to the Santee Fire Department.

Per the Fire Protection Technical Report, an early suppression fast response (EFSR) sprinkler system shall be installed throughout the warehouse area. (Fire)

82. A deferred submittal is required for automatic fire alarm systems or dedicated functional fire alarm systems and must be submitted to the Santee Fire Department. (Fire)

83. Knox Company fire department connections (FDC) plugs shall be installed on all fire department connections for the automatic fire sprinkler systems, when FDC’s are required. (Fire)

84. An exterior approved audio/visual device shall be connected to every automatic sprinkler system in an approved location. Such sprinkler water-flow alarm devices shall be activated by water flow equivalent to the flow of a single sprinkler of the smallest orifice size installed in the system. (Fire)

85. Each vehicular access gate shall be equipped with Knox key switches and automatic sensors for gate override. All gates shall have a manual release device or other means to open the gate in the event of power failure. (Fire)

86. Address Numbers shall be block-style, a minimum of 12” in height and black in color (or other approved color), in contrast with their background. (Fire) RESOLUTION NO.
23 87. Per the Fire Protection Technical Report, the fire pump will be voluntarily upgraded from an electric pump relying on electricity from the grid to a diesel engine-based system. The need for a fire pump shall be determined upon the demand for the automatic fire sprinkler system, standpipe system, and private fire hydrant system. If it is demonstrated that the domestic water supply can support all systems with at least a 10% safety factor, the fire pump may not be required, as approved by the Fire Marshal. (Fire)

88. Prior to permit issuance, the property owner shall provide a completed and signed Owner's Certificate stating the intended use and hazard classification of the building in accordance with NFPA 13, to ensure proper sprinkler system design. (Fire)

89. If there are multiple fire sprinkler risers, each system shall have a postindicating valve and fire department connection for that system located on the exterior of the building in an approved location, unless otherwise approved by the Fire Marshal. (Fire)

90. A deferred submittal is required for a Standpipe System. This may be combined with the automatic fire sprinkler system deferred submittal. (Fire)

91. Fire department connections (FDC) should be within 50’ of a fire hydrant and shall be no more than 100’ from a fire hydrant. (Fire)

92. The emergency responder radio coverage system (ERRCS) shall be designed, installed, and tested in compliance with the applicable California Fire Code Section 510, NFPA 1221, and NFPA 72 standards. Plans and technical specifications shall be submitted for review and approval by the Santee Fire Department prior to installation. The ERRCS shall provide adequate radio coverage on the required frequency bands throughout the entire building, including all floors and areas where coverage is critical for emergency operations. The system shall be capable of future expansion and modifications.

A certified technician holding a valid FCC general radio operator’s license and approved in-building system training shall perform installation and testing. Final acceptance testing and documentation shall be submitted prior to issuance of occupancy or final permit. Any deviations or modifications to the ERRCS must receive prior approval by the fire marshal. (Fire)

93. Provide two print copies and a digital copy of both the final approved Storm Water Quality Management Plan and the Operation and Maintenance Plan. (Engineering)

94. Submit a print and digital copy of the BMP Certification package. The BMP certification package includes but is not limited to: ‘wet’ signed and stamped certification form(s), all BMP related product receipts and materials delivery RESOLUTION NO.
24 receipts, an inspection and installation log sheet, and photographs to document each stage of BMP installation. (Engineering)

95. Prior to issuance of the final occupancy, an executed contract must be in place with a qualified storm water service provider and a copy of the SWQMP provided to the consultant and the property manager/owner. (Engineering)

96. A Storm Water Facilities Maintenance Agreement accepting responsibility for all structural BMP maintenance, repair and replacement as outlined in said O&M plan binding on the land throughout the life of the project will be required prior to issuance of building permit. (Engineering)

97. Provide a hydrology study and hydraulics analysis to determine the boundary and elevation of the floodway and floodplain for the San Deigo River adjacent to the project in accordance with the Santee Flood Damage Prevention Ordinance. (Engineering)

98. Submit a current preliminary title report (dated within six months of plan submittal) and all documents listed in the title report. Copies of recorded documents must be clear and legible copies of the original recorded document. (Engineering)

99. Applicant shall place all new utilities required to serve the project underground.

No overhead facilities or extension of overhead facilities is permitted. In addition, the applicant shall underground any existing overhead facilities on-site and underground any overhead facilities adjacent to the project to the satisfaction of the Director of Engineering/City Engineer. Adjacent facilities are defined as existing overhead facilities in the abutting half street and may include extension of the undergrounding to either side of the project to the nearest existing utility pole. (Engineering)
100. Applicant shall dedicate right-of-way along North Woodside Avenue adjacent to the site such that the ultimate right-of-way width to centerline is 36 feet.

Additional right-of-way may be required as necessary to provide adequate transition to match existing improvements. (Engineering) 101. Plant all new trees within 10 feet of the public right-of-way with root control barriers. (Engineering)
102. Construct all improvements within the public right-of-way and improvements as shown on the approved precise grading plans. Improvements shall be completed to the satisfaction of the Director of Engineering/City Engineer. (Engineering)
ONGOING: The following conditions shall apply during the term of this permit.

RESOLUTION NO.
25 103. All groundcover installed pursuant to an approved landscape plan shall provide on-hundred (100) percent coverage within nine (9) months of planting or additional landscaping, to be approved by the City, shall be required in order to meet this standard. Property owners are responsible for the continual maintenance of all landscape areas on-site and between the property line and the curb. All landscaped areas shall be kept free from weeds and debris and maintained in a healthy, growing condition, and shall receive regular pruning, fertilizing, mowing and trimming. Any damaged, dead, diseased or decaying plant material shall be replaced within thirty (30) days from the date of damage.(Planning)
104. Mechanical equipment, including but not limited to HVAC equipment, shall be screened and architecturally integrated in terms of material, color, shape and size. The screening design shall blend with the building design. (Planning) 105. Parking areas and driveways shall be well maintained, free of potholes, ruts, and cracks. (Planning)
106. If noise complaints are received for alleged violations of the Municipal Code, the City may require the Applicant to conduct nighttime noise monitoring up to three times for each alleged violation at the source of the complaints. If monitoring shows noise levels exceed projections by 10 dBA or more (instantaneous), the Applicant may be required to submit a Noise Mitigation Plan to the satisfaction of the Planning and Building Director identifying measures to bring operations into compliance with the EIR projections. The noise monitoring shall be conducted by a qualified noise consultant approved in advance by the City. (Planning) SECTION 4: The applicant shall defend, indemnify, and hold harmless the City of Santee and its officers, employees, and agents from any claim, action, or proceeding against the City and/or its officers, employees or agents to attack or set aside, void, or annul the approval of the City of Santee concerning DR-2023-0002, or any action relating to or arising out of its approval.

SECTION 5: The terms and conditions of DR-2023-0002 shall be binding upon the permittee and all persons, firms, and corporations having an interest in the property subject to DR-2024-0001 the heirs, executors, administrators, successors and assigns of each of them, including municipal corporations, public agencies and districts.

SECTION 6: The approval of DR-2023-0002 expires on August 27, 2028, at 5:00 p.m. except where substantial use has commenced prior to its expiration. If use of the development has not commenced within the three-year period, said expiration date may be extended pursuant to a request for time extension received 60 days prior to the original expiration date. The City Council expressly grants to the City Planner the authority to extend the expiration date of this approval pursuant to Section 13.04.090 of the Santee Municipal Code, when a request for an extension is filed 60 days prior to the original expiration date.

RESOLUTION NO.
26 SECTION 7: Pursuant to Government Code Section 66020, the 90-day approval period in which the applicant may protest the imposition of any fees, dedications, reservations, or exactions imposed pursuant to this approval, shall begin on August 27, 2025.

SECTION 8: The City of Santee hereby notifies the applicant that State Law (AB3158), effective January 1, 1991, requires certain projects to pay fees for purposes of funding the California Department of Fish and Wildlife. In order to comply with State Law, the applicant should remit to the City of Santee Department of Planning & Building, within two (2) working days of the effective date of this approval (the "effective date" being the end of the appeal period, if applicable), a certified check payable to the "San Diego County Clerk" in the amount of $50.00. Failure to remit the required fee in full within the time specified above will result in notification to the State that a fee was required but not paid, and could result in State imposed penalties and recovery under the provisions of the Revenue and Taxation Code. In addition, Section 21089 (b) of the Public Resources Code, and Section 711.4 (c) of the Fish and Game Code, provide that no project shall be operative, vested, or final until the required filing fee is paid.

SECTION 9: The documents and materials that constitute the record of proceedings on which these findings have been based are located with the City Clerk at the City of Santee City Clerk’s office at 10601 Magnolia Avenue, Building #3, Santee, CA 92071.

ADOPTED by the City Council of the City of Santee, California, at a Regular Meeting thereof held this 27th day of August 2025, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

JAMES JEFFRIES, CITY CLERK
RESOLUTION NO.
1 RESOLUTION FOR CONDITIONAL USE PERMIT (P2023-1) FOR A 300,145 SQUARE-FOOT INDUSTRIAL BUILDING LOCATED AT 10990 N. WOODSIDE

AVENUE IN THE LIGHT INDUSTRIAL (IL) ZONE AND CERTIFY THE FINAL ENVIRONMENTAL IMPACT REPORT (ENV-2024-0003)
APPLICANT: North Palisade Opco, LLC
APN: 381-070-52-00
RELATED CASE FILES: DR-2023-0002 & ENV-2024-0003
WHEREAS, the Section 13.06.030 of the Santee Municipal Code (SMC) requires a Conditional Use Permit to allow increases in the maximum building height of 40 feet; and
WHEREAS, on February 14, 2025, North Palisade Opco, LLC submitted a complete application for Development Review Permit (DR-2023-0002) to construct a 300,145 square-foot industrial building and Conditional Use Permit (P2023-1) for the building height to be 50 feet located at 10990 N. Woodside Avenue in the Light Industrial (IL) zone; and
WHEREAS, the site can be adequately served by all required utilities and public services; and
WHEREAS, the proposed project is located within Airport Influence Area 2 of Gillespie Field but is outside of noise and safety zones therefore does not require review by the San Diego Airport Land Use Commission; and
WHEREAS, the project is subject to the payment of development impact fees in effect at the time of issuance of building permits; and WHEREAS, development impact fees ensure that new development will not burden the existing service population with the cost of facilities required to adequately support new development; and
WHEREAS, new development requires the construction of capital improvements, including, without limitation, drainage improvements, traffic improvements, traffic signals, public park facilities, community facilities, other public improvements, public services, and community amenities; and
WHEREAS, the purpose of the development impact fees imposed on the subject project is to provide a funding source from the project to fund-related capital improvements that serve the project, specifically drainage improvements, traffic improvements and traffic signals; and
WHEREAS, it is in the interest of the public’s health, safety and welfare for the project to pay the costs of constructing these public facilities that are reasonably related to the impacts of the project; and
RESOLUTION NO.
2 WHEREAS, a reasonable relationship exists between the use of the development impact fees and the project as capital improvements funded by these fees are expected to provide a citywide network of parks, public facilities, drainage and traffic-related facilities beneficial to the project; and
WHEREAS, the project’s facilities need, specifically the need for parks, public facilities, drainage, traffic and traffic signal facilities, is based on the project’s residential classification, the demand generated by the project for those facilities, and the project’s corresponding fair share contribution toward funding of said needed facilities; and WHEREAS, the development impact fees established for the project are based in accordance with current fee ordinances in effect at issuance of the building permit; and WHEREAS, the project is consistent with the applicable General Plan Land Use Designation, all applicable General Plan policies, and the Zoning Ordinance land use regulations; and
WHEREAS, the subject project is not subject to Measure N as the project is not a General Plan amendment, within a Planned Development Area, a new Specific Planning Area, nor would it increase the residential density permitted by law, make changes to the General Plan Residential Land Use categories that would intensify use, make changes to the land use designation of any parcel in a manner that intensifies use, nor make changes to slope criteria, minimum parcel sizes, or lot averaging provisions of the General Plan that would permit increased density or intensity of use; and WHEREAS, the Planning & Building Department scheduled Conditional Use Permit P2023-1 for public hearing on August 27, 2025; and WHEREAS, on August 27, 2025, the City Council held a duly advertised public hearing on Conditional Use Permit P2023-1; and
WHEREAS, the City Council considered the Staff Report, CEQA Environmental Impact Report, Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program, all recommendations by staff, public testimony, and all other relevant information contained in the administrative record regarding the project.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santee, California, after considering the evidence presented at the public hearing, as follows:

SECTION 1: On August 27, 2025, the City Council certified the Final Environmental Impact Report; adopted Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program under CEQA.

SECTION 2: The findings in accordance with Section 13.06.030 of the SMC for a Conditional Use Permit are made as follows:

RESOLUTION NO.
3 A. The proposed development meets the purpose and design criteria prescribed in these procedures and other pertinent sections of the zoning ordinance and municipal code.

That the proposed development, as conditioned, meets the purpose and design criteria prescribed in the Zoning Ordinance and the Municipal Code because the project complies with the IL zone including lot coverage, landscaping, and building setbacks. In addition, the project design is consistent with the requirements of the Fire Code, and all proposed improvements will meet the public works standards of the City. The project proposes a 300,145 square-foot industrial building which meets maximum lot coverage.

B. The proposed development is compatible with the General Plan.

The proposed development conforms to the Santee General Plan. The project proposes an industrial/warehouse building which is consistent with the IL designation in the Land Use Element of the General Plan. The project is consistent with the General Plan’s goals and policies promoting employment-generating uses, economic vitality, and compatible site design.

SECTION 3: P2023-1 is hereby approved subject to the following conditions:

ANY PERMIT: Prior to the approval of any plan, issuance of any permit, and prior to occupancy or use of the premises in reliance of this permit, the applicant shall complete the following to the satisfaction of the applicable Department.

1. The applicant shall obtain approval of Development Review Permit (DR-2023- 0002). (Planning)

2. All construction shall be in substantial conformance with the project plans approved on August 27, 2025, and as amended by this Resolution. (All Departments)

3. The applicant shall comply with all applicable requirements of the SMC, Land Development Manual, and Public Works Standards of the City of Santee. (All Departments)

4. The applicant shall obtain building permits, as necessary, for the proposed work in compliance with all applicable SMC sections, Uniform Building Code, California Building Code (CBC), Uniform Plumbing Code, National Electric Code, Uniform Mechanical Code, Public Works Standards of the City of Santee, and all requirements of the Fire Department. (All Departments)

5. The project shall be in compliance with the adopted California Building Standards Code at the time of building permit application and shall be subject to expirations for plan review per SMC Section 11.04.030 (Building)
RESOLUTION NO.
4 6. All building permits are subject to expiration pursuant to CBC Section 105. (Building)

7. This project is subject to the requirements for persons with disabilities outlined in CBC Title 24, Part 2, Section 11B (Accessibility Standards). (Building)

8. Following project approval and prior to any plan submittals, the applicant may schedule with the City Project Planner a post approval meeting to discuss the project conditions of approval, timing of design and construction and implementation of the project conditions. The applicant should include their project design team including project architect, their design engineer and their landscape architect. (Planning)

9. Minor or Major Revisions to the Development Review Permit, such as changes to the building elevations, site design, or landscaping design, shall be approved by the Planning & Building Director unless in the Director’s judgment, a Major Revision should be reviewed by the City Council. (Planning) SECTION 4: The applicant shall defend, indemnify, and hold harmless the City of Santee and its officers, employees, and agents from any claim, action, or proceeding against the City and/or its officers, employees or agents to attack or set aside, void, or annul the approval of the City of Santee concerning P2023-1, or any action relating to or arising out of its approval.

SECTION 5: The terms and conditions of P2023-1 shall be binding upon the permittee and all persons, firms, and corporations having an interest in the property subject to P2023-1 the heirs, executors, administrators, successors and assigns of each of them, including municipal corporations, public agencies and districts.

SECTION 6: The approval of P2023-1 expires on August 27, 2028, at 5:00 p.m. except where substantial use has commenced prior to its expiration. If use of the development has not commenced within the three-year period, said expiration date may be extended pursuant to a request for time extension received 60 days prior to the original expiration date. The City Council expressly grants to the City Planner the authority to extend the expiration date of this approval pursuant to Section 13.04.090 of the Santee Municipal Code, when a request for an extension is filed 60 days prior to the original expiration date.

SECTION 7: Pursuant to Government Code Section 66020, the 90-day approval period in which the applicant may protest the imposition of any fees, dedications, reservations, or exactions imposed pursuant to this approval, shall begin on August 27, 2025.

SECTION 8: The City of Santee hereby notifies the applicant that State Law (AB3158), effective January 1, 1991, requires certain projects to pay fees for purposes of funding the California Department of Fish and Wildlife. In order to comply with State Law, the applicant should remit to the City of Santee Department of Planning & Building, within two RESOLUTION NO.
5 (2) working days of the effective date of this approval (the "effective date" being the end of the appeal period, if applicable), a certified check payable to the "San Diego County Clerk" in the amount of $50.00. Failure to remit the required fee in full within the time specified above will result in notification to the State that a fee was required but not paid, and could result in State imposed penalties and recovery under the provisions of the Revenue and Taxation Code. In addition, Section 21089 (b) of the Public Resources Code, and Section 711.4 (c) of the Fish and Game Code, provide that no project shall be operative, vested, or final until the required filing fee is paid.

ADOPTED by the City Council of the City of Santee, California, at a Regular Meeting thereof held this 27th day of August 2025, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

JAMES JEFFRIES, CITY CLERK
The Environmental Impact Report attachment is available via the link below:
https://www.cityofsanteeca.gov/departments/cityclerk/document-central/city-clerk/council-agendas/2025/08- 27-2025-item-8-final-eir-attachment.pdf
The Appendices to Environmental Impact Report are
available via the link below:
https://www.cityofsanteeca.gov/departments/cityclerk/document-central/city-clerk/council-agendas/2025/08- 27-2025-item-8-final-eir-attachment-appendices.pdf
The Project Plans attachment is available via the link below:
https://www.cityofsanteeca.gov/departments/cityclerk/document-central/city-clerk/council-agendas/2025/08- 27-2025-item-8-project-plans-attachment.pdf

From: Sandi Sawa <[email protected]>
Sent: Monday, August 18, 2025 8:40 AM
To: Madeline Mattson <[email protected]>
Subject: FW: Palisade Santee Commerce Center - Follow-Up Sandi Sawa, MPL, AICP
Director of Planning and Building/City Planner
(619) 258-4100 x 167
[email protected]
Please note that my next regular day off is Friday, August 29th.

From: Gary Halbert <[email protected]>
Sent: Monday, August 18, 2025 8:39 AM
To: Laura Koval <[email protected]>
Cc: Sandi Sawa <[email protected]>
Subject: RE: Palisade Santee Commerce Center - Follow-Up Councilmember Koval,
Thank you. We’ll look this over and will include it in our CAS package when the project comes to Council for consideration.

Gary
Gary Halbert
Interim City Manager
(619) 258-4100 x295
[email protected]
From: Laura Koval <[email protected]>
Sent: Friday, August 15, 2025 1:28 PM
To: Gary Halbert <[email protected]>
Subject: Fwd: Palisade Santee Commerce Center - Follow-Up FYI. Follow up based on my meeting with them.

Kind Regards,
Laura Koval
Councilwoman
City of Santee
Please pardon typos; sent via mobile
Begin forwarded message:

From: William Jacobs <[email protected]> Date: August 15, 2025 at 12:47:23 PM PDT
To: Laura Koval <[email protected]>
Cc: Jim Bartell <[email protected]>, Joe Mishurda <[email protected]>
Subject: Palisade Santee Commerce Center - Follow-Up
Hi Councilmember Koval,
Good afternoon, following up on our meeting regarding the Palisade Santee Commerce Center, I wanted to provide additional information in response to your questions:

Does VMT include truck trips or just commuting trips?
VMT is calculated for passenger vehicle trips only. The air quality study includes truck trips, however.

Regarding the projected level of service impact at the SR-67 and N.

Woodside Ave. when is the peak delay?
The peak delay is projected to occur during the PM peak hour, with a slightly lower delay in the AM peak hour. I misspoke during our meeting and there are delays during both periods.

The main sources of the delay are:

AM Peak Hours: Woodside eastbound traffic making a left turn to head north on N. Woodside Ave. through the intersection with SR-67. The project will add about two trips per minute during the peak hours.

PM Peak Hours: N. Woodside southbound traffic making a right turn to head west on Woodside Ave. through the intersection with SR-67. The project will add about two trips per minute during the peak hours.

In the highest-demand scenario, vehicles passing through the intersection during peak hours would experience a modest delay of 16- 20 seconds compared to current conditions.

We project that this facility will employ many local workers, meaning these trips would, in theory, relieve SR-52 use and help alleviate other traffic.

Please let us know if you have any additional questions and thank you again for meeting with us.

Respectfully,
Will
William Jacobs
Senior Development Manager
North Palisade Partners
1330 Factory Place, Suite 105
Los Angeles, CA 90013
Cell: (626) 840-7570
[email protected]
www.northpalisade.com

NORTH PALISADE
--PARTNERS--

60139.00154\44058237.1
RESOLUTION NO.
1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTEE, CALIFORNIA

APPROVING COMMUNITY BENEFIT AGREEMENTS WITH FOUR RETAIL

COMMERCIAL CANNABIS BUSINESSES AND FINDING THE ACTION EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15303
WHEREAS, the City Council adopted a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program for the Santee Cannabis Business Ordinance in July 2022 (State Clearinghouse No. 2022060058); and WHEREAS, in August 2022, the City Council enacted Ordinance 602, the Cannabis Business Permit Ordinance of the City of Santee (City), codified as Chapter

7.04 of the Santee Municipal Code (SMC); and
WHEREAS, at a hearing on March 27, 2024, the City Council adopted Ordinance 614, the Commercial Cannabis Retail Business (CCB) Application Process, which includes Application Procedures and Review Criteria (Procedures), fees and related documents; and
WHEREAS, Ordinance 614 is covered by the analysis in the 2022 MND; and WHEREAS, the Procedures include detailed instructions on the methodology to be used to select up to four CCBs to be awarded CCB Permits; and WHEREAS, in accordance with the Procedures, on July 11, 2025, the City Council selected four CCBs to be eligible to be awarded a CCB Permit upon satisfaction of the remaining requirements of the City’s Procedures; and
WHEREAS, the Procedures state that the selected applicants shall enter into a Community Benefit Agreement with the City that sets forth terms and conditions under which the cannabis business will operate that are in addition to the requirements of the SMC; and
WHEREAS, the Community Benefit Agreement must be approved by the City Council before a CCB permit will be issued; and
WHEREAS, since July 11, 2025, each of the four selected CCBs has negotiated and agreed to a Community Benefit Agreement with the City; and WHEREAS, each project and project site has been assessed and determined exempt from CEQA pursuant to CEQA Section 15303 New Construction or Conversion of Small Structures because all sites are located within an urbanized area, are zoned for the permitted use, have all public services available and are not adjacent to an environmentally sensitive area and the proposed use will not utilize hazardous materials or build or convert space exceeding 10,000 square feet.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santee, California, as follows:
60139.00154\44058237.1
RESOLUTION NO.
2 SECTION 1: The Recitals provided above are true and correct and are hereby incorporated into this Resolution.

SECTION 2: The City Manager is authorized to execute Community Benefit Agreements with:

A. Hilife Group Santee LLC (BUZZ)
B. Santee Project LLC (Dr. Green Thumb’s)
C. East County Prospect LLC (Green Reserve)
D. 9805 Prospect LLC (Flyte)
SECTION 3: Staff shall file Notices of Exemption for the following projects:

A. BUZZ Commercial Cannabis Business Permit Retail Application (CAN-001032- 2024) 8011 Mission Gorge Road, Santee, CA 92071, APN: 383-261-25-00 B. Santee Project LLC (Dr. Green Thumb’s) Commercial Cannabis Business Permit Retail Application (CAN-001022-2024) 10439 Prospect Ave, Suite A, Santee, CA 92071, APN: 384-250-13-00
C. Flyte Commercial Cannabis Business Permit Retail Application (CAN-001023- 2024) 9805 Prospect Ave/8547 Cuyamaca St, Santee, CA 92071. APN: 384- 190-74-00
D. Green Reserve Commercial Cannabis Business Permit Retail Application (CAN-001020-2024) 10612 Prospect Ave, Santee, CA 92071, APN: 384-260- 09-00, 384-260-10-00, 384-260-11-00
SECTION 4: This Resolution will take effect immediately upon its passage.

ADOPTED by the City Council of the City of Santee, California, at a Regular Meeting held on August 27, 2025, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

JAMES JEFFRIES, CITY CLERK
60139.00154\44038060.4

Page 1 ends

CBA – Hilife Group Santee LLC (BUZZ)

COMMUNITY BENEFIT AGREEMENT
This Community Benefit Agreement (“Agreement”), is entered into as of August 27, 2025 (“Effective Date”), by and between the City of Santee, a California charter city (“City”), and Hilife Group Santee LLC dba BUZZ, a California limited liability corporation (“Operator”). City and Operator may also be referred to individually as a “Party” or together as “Parties.”

RECITALS
WHEREAS, on July 11 2025, the City, through Resolution No. 101-2025, selected Operator as one of four businesses to pursue a commercial cannabis business permit (“Permit”) to operate a Commercial Cannabis Business (“CCB”) at that certain real property located at 8011 Mission Gorge Road, Santee, California, APN: 383-261-25-00 (the “Property”).

WHEREAS, pursuant to City Council Ordinance No. 602, codified at Santee Municipal Code (“SMC”) Chapter 7.04, the application process for a cannabis business permit included a mandatory component on community benefits, the terms of which are to be set out and memorialized in a community benefit agreement. (SMC § 7.04.110(A)).

WHEREAS, community benefits include, but are not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare. (SMC § 7.04.330(C)).

WHEREAS, Operator’s application, dated October 18, 2024, proposed certain community benefits, and Operator acknowledges that it was selected by the City, at least in part, due to the community benefits that Operator proposed to the City.

WHEREAS, the community benefits that Operator offered are in addition to the requirements of SMC Chapter 7.04 and are incorporated into the terms and conditions under which Operator’s CCB will operate. (SMC § 7.04.110(B)).

WHEREAS, as part of its application to the City for the Permit, Operator signed both a Financial Responsibility, Indemnity and Consent to Inspection Terms agreement and an Agreement on Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification of City, both of which are attached as Exhibit “A” and are incorporated here as if fully set forth.

WHEREAS, subsequent to Operator’s selection on July 11, 2025, the City and Operator negotiated the details and final terms of the community benefits that Operator will provide to the City.

WHEREAS, the City seeks to support business viability while upholding high standards for facility aesthetics and public perception through the negotiated phased community benefit fee contained in this Agreement.

WHEREAS, Operator’s failure to abide by any of the terms of its community benefit agreement may constitute grounds for revocation of the Permit. (SMC § 7.04.190).

WHEREAS, through this Agreement, the Parties memorialize the community benefits that Operator will provide to City for the term of its Permit and any renewal periods related thereto. 60139.00154\44038060.4

Page 2 ends

CBA – Hilife Group Santee LLC (BUZZ)

AGREEMENT
In consideration of the foregoing recitals, the mutual understandings contained in this Agreement, and other good, valuable, and sufficient consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

Section 1. Incorporation of Recitals and Exhibits
The Recitals set forth above, including the documents attached as Exhibit A, are true and correct and are hereby incorporated into the terms of this Agreement.

Section 2. Term
This Agreement will commence on the Effective Date and shall remain in effect so long as Operator has a valid, City-issued Permit to operate the CCB at the Property.

Section 3. Definitions

3.1 Date of First Sale refers to the date on which Operator’s CCB makes its first sale authorized by the CCB Permit.

3.2 Gross Receipts refer to any amount the purchaser is required to pay to purchase cannabis or cannabis products from the Operator, including the selling price of the cannabis or cannabis products, any expense the Operator passes on to the purchaser, any charges for services, and any delivery fees, without deduction except for refunds and taxes required by law to be included in or added to the purchase price and collected at the time of sale.

3.3 Operating Years one through three will be measured from the Date of First Sale:

A. Operating Year 1 will begin on the Date of First Sale and end 365 days later.

B. Operating Year 2 will begin one calendar year after the Date of First Sale and end 365 days later.

C. Operating Year 3 will begin two calendar years after the Date of First Sale and end 365 days later.

3.4 Quarter refers to a period of three months measured on a calendar year basis ending on March 31, June 30, September 30, and December 31.

Section 4. Community Benefits and Investment

4.1 Annual Community Benefit Fee Payable to the City:

A. Annual Gross Receipts.

Annually for its first three years in operation from the Date of First Sale, Operator will remit to the City a set percentage of its Gross Receipts as a direct Community Benefit Fee. For the first three years, the required Community Benefit Fee will be measured by:
60139.00154\44038060.4

Page 3 ends

CBA – Hilife Group Santee LLC (BUZZ)
Operating Year 1: 7.0% of Gross Receipts
Operating Year 2: 7.5% of Gross Receipts
Operating Year 3: 8.0% of Gross Receipts
Upon request or before the conclusion of Operating Year 3, the City and Operator will evaluate the percentage then in place in view of Operator’s performance and experience to determine an appropriate Community Benefit Fee calculation for subsequent years. The Community Benefit Fee will remain at 8% unless and until modified by the Parties in writing.

The Community Benefit Fee is not a tax to be charged directly to the purchaser. While Section 5 of this Agreement provides for the circumstance in which the Community Benefit Fee may eventually be replaced by a voter approved tax on the commercial sale of cannabis, until that time, the Community Benefit Fee is a mutually agreed upon condition of issuance of a cannabis business permit as specified in SMC §§ 7.04.110 and

7.04.330(C). The Operator shall not separately charge customers for either the Community Benefit Fee or the Community Investment Fee, and shall not separately list or attribute on its sales receipts or in any other direct manner a portion of the purchase price for products as being a result of the Community Benefit Fee or the Community Investment Fee. The Community Benefit Fee and the Community Investment Fee are solely the responsibility of the Operator to pay from its Gross Receipts.

B. Paid Quarterly.

The Community Benefit Fee due will be measured and paid on a quarterly basis. Within 30 days of the end of each Quarter, Operator will:

1. Statement: Send a return to the City Finance Director, on a form to be provided, reporting total Gross Receipts for the Quarter. The Quarterly Statement must be certified as correct by an authorized officer of the Operator; and

2. Payment. Remit payment of the Community Benefit Fee equal to the percentage of Gross Receipts during the Quarter due by applicable Operating Year.

C. End of Calendar Year:

Within 90 days of the end of each calendar year, or within 90 days of the date in which the Operator ceases to operate the CCB at the Property, Operator will provide the City Finance Director with an Annual Financial Statement for the proceeding calendar year. Since the amount of the Community Benefit Fee due will follow an Operating Year cycle, it is anticipated that the Annual Financial Statement will reflect a change in the fee calculation upon the anniversaries of the Date of First Sale. The Annual Statement must be certified as correct by a certified public accountant. 60139.00154\44038060.4

Page 4 ends

CBA – Hilife Group Santee LLC (BUZZ)
Questions about underpayment or overpayment may be raised by either Party at any time, but to the extent such issues have not been reconciled by the end of the calendar year, they should be identified in the Annual Financial Statement.

Annual Financial Statements are required independently of and regardless of whether Operator applies to renew Operator’s CCB Permit.

D. Late Payment:

Payments received more than 30 days after the end of any Quarter are late and will accrue interest at the rate of 0.5% monthly until paid in full. In addition, a late payment may provide grounds for a notice of default under Section 8 below.

4.2 Community Investment:

In addition to the Community Benefit Fee payable to the City, Operator will also make monetary donations or contributions for the benefit of the community in an annual amount equivalent to no less than 1% of its Gross Receipts (“Community Investment Fee”).

A. Approved Investments:

Investment in the City of Santee community (defined as the City’s municipal boundaries) may take the form of in-kind donations with a verifiable monetary value, financial sponsorship or support of community events such as fairs, afterschool programs, youth centers, local public or private schools, school athletic programs, school clubs, community centers, homeless shelters, senior centers and/or senior living facilities, and parks and recreation programs, paid time to volunteer at qualifying events, and the payment of mutually agreeable fees and charges.

As part of Operator’s application and in representations to City Council, Operator identified the following forms of community investment, that, while not binding, would satisfy this Community Investment requirement:

1. Employee volunteer hours at sponsored events where the employee is paid for the volunteers hours as regular work hours.

2. Direct monetary donations to local charitable or community organizations.

3. Back-to-school supplies.

4. Holiday toy and food drive.

5. Support for community veterans.

6. Local park clean-up days.
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CBA – Hilife Group Santee LLC (BUZZ)
B. Notice to the City:

Prior to the First Date of Sale, and annually thereafter, the Operator must provide the City Manager with a written notice of the investments in the City of Santee community that Operator will make for the year. The City Manager will have 15 days from the date of the notification to comment on the written notice. If no comment is offered, the donation, contribution, sponsorship or other investment will be deemed to satisfy this requirement.

The Operator may change its community investment at any time by providing written notice to the City Manager. The City Manager will have 15 days to comment on the change. If no comment is offered, the change is deemed to satisfy this requirement.

C. Annual Accounting:

Within 90 days of the end of each calendar year, Operator will provide the City Manager with a written accounting of its full investment in the community and establish its value at no less than 1% of its Gross Receipts during the calendar year.

Failure to timely report or to establish the requisite value of the Community Investment may provide grounds for a notice of default under Section 8 below.

4.3 Other Community Benefits:

In addition to the Community Benefit Fee paid to the City and the Community Investment, Operator’s application and representations to the Council identified Other Community Benefits it plans to offer related to local outreach to City residents for open positions and actions intended to benefit the local workforce and/or Operator’s local employees. Operator’s intended efforts include:

A. Operator will pay a minimum wage of $20 per hour.

B. Eighty-eight percent of Operator’s annual payroll hours will target local hires.

C. Operator will use best efforts to hire local services not specific to cannabis such as architects, contractors, material vendors, security guards, recruiting/hiring services, accountants, bookkeepers, IT/computer maintenance, and janitorial services.

D. Operator will join and maintain and active membership in the Santee Chamber of Commerce.

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CBA – Hilife Group Santee LLC (BUZZ)
determined by the electorate, the Community Investment and Other Community Benefits established in Sections 4.2 and 4.3 will remain in place.

Section 6. Records and Audits

6.1 Record Keeping: Operator must record at the time of sale, in the presence of the customer, receipts from sales or other transactions, whether cash or credit, in a manner that accumulates and consecutively numbers all transactions. A receipt from any transaction showing the correct amount of the purchase shall be offered to the customer at the time of any transaction, including any cash sale.

Transactions not ordinarily recorded in a cash register or point of sale terminal must be noted on and kept in a ledger format. Operator must keep:

A. Full and accurate books of account and records including, without limitation, a sales journal, general ledger and all bank account statements showing deposits and withdrawals.

B. All cash register or point of sale terminal receipts.

C. Detailed original records of any refunds, discounts, or costs of goods sold.

D. All documents necessary to demonstrate compliance with this Agreement.

6.2 Record Retention. Operator must keep and maintain, safe and intact, all of the records, books and accounts required by this Agreement, for a minimum period of five (5) years following the end of the Term.

6.3 Right to Review and Audit. Pursuant to this Agreement, the City is entitled to examine Operator’s books and records throughout the Term of this Agreement and the record retention period for purposes of determining, confirming or evaluating Operator’s Gross Receipts. This right to audit is independent of the City’s right to audit granted by any other means, including as specified in SMC §§ 7.04.310(A) and 7.04.330(B). Operator will make such records available to the City, including the City’s auditor, representative or agent, for examination at any reasonable time, on ten days advance written notice. The City has the right to make abstracts from the records, to make copies of any or all of the records and to examine and make copies of any or all contracts, and licenses. In addition, at the request of the City or the City’s representative, the Operator will provide copies of the Operator’s state and local sales and use tax returns. The City will preserve the confidentiality of such information to the fullest extent permitted by applicable California law, as determined by the City Attorney.

6.4 Audit Deficiency. If an audit finds that less than the agreed upon Community Benefit Fee based upon actual Gross Receipts has been paid, the City will send the Operator a notice of deficiency. Operator will have ten days from the date of the notice to respond and to pay any undisputed amount due. If the Operator disputes all or part of any alleged underpayment, Operator’s response must state the basis of its dispute. The Parties agree to attempt to resolve any dispute within ten days of the date of Operator’s response. If agreement cannot be reached, the City may invoke its Default remedies defined in Section 8. 60139.00154\44038060.4

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CBA – Hilife Group Santee LLC (BUZZ)

6.5 Audit Costs. The cost of the type of audit subject to this Agreement is included in the annual regulatory fee paid by the Operator and will be paid for from such funds.

Section 7. Active Parking Management
Operator will provide active parking management in order to avoid nuisance issues related to spill over traffic or parking. Operator commits to working with the City Manager to quickly resolve any parking or traffic issues that may arise as a result of the Operator’s business activities. Upon written request from the City Manager, Operator will plan and submit a formal Parking Management Plan addressing the specific issues identified in the written request from the City Manager for review and approval by the City Manager. At all times, Operator is obligated to work with the City Manager to address parking and traffic issues at the Property and neighboring businesses and streets, and must implement all reasonable direction from the City Manager regarding parking and traffic management.

Section 8. Flyer and Vehicle Advertising Restrictions
Operator agrees that, as a condition of its commercial cannabis business permit and in alignment with the City’s interest in maintaining public cleanliness, safety, and aesthetic standards, in minimizing nuisance, and in protecting those who are not old enough to purchase cannabis products, it will not: (a) hand unsolicited flyers, advertisements, or other promotional materials to pedestrians in public spaces, except where specifically authorized; or (b) place flyers, advertisements, or promotional materials on parked vehicles, including under windshield wipers or on window, on public or private property. These restrictions apply solely to the time, place and manner of advertising and do not prohibit the Operator from engaging in lawful commercial speech through other means. Operator acknowledges that these restrictions are content-neutral and narrowly tailored to advance substantial city interests in litter prevention, traffic safety, protection of minors, and protection of private property, and that they leave open ample alternative means of communication.

Section 9. Default; Remedies
Any violation of this Agreement following notice and failure to cure shall constitute “Default”. The City shall provide written notice of default to the Operator specifying the complaint of default. The Operator will not be in Default if within ten (10) days from receipt of such notice, the Operator cures or corrects the Default to the reasonable satisfaction of City. In the event that Operator fails to cure or correct any such default within the time specified, or to reach written agreement with the City to the contrary, the Parties acknowledge and agree that such Default constitutes a failure to perform a condition of Operator’s Permit, giving rise to the City’s authority to revoke the Permit pursuant to SMC Section 7.04.190. Authority to revoke Operator’s Permit is in addition to any other remedies available to the City at law or in equity, or as further set forth herein, such as the accrual of interest in the event of late payment, as a result of any Default.

Section 10. Institution of Legal Actions
In addition to the provisions of Section 8, if the Operator fails to cure or correct any Default, the City may institute an action at law or in equity against Operator to enforce this Agreement, to seek specific performance of the terms of this Agreement, to cure, correct, or remedy any Default, to recover damages for any Default, to recover the specified amounts due for failure to comply with the terms of this Agreement, or to obtain any other remedy consistent with the purpose of this 60139.00154\44038060.4

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Agreement. Such legal actions must be instituted in the Superior Court of the County of San Diego, State of California, or in the Southern District of the United States District Court.

Section 11. Notices, Demands and Communications Between the Parties Any approval, disapproval, demand, document or other notice (“Notice”) that either Party may desire to give to the other under this Agreement must be in writing and may be given by any commercially acceptable means at the address of the party set forth below, or at any other address as that party may later designate by Notice.

OWNER/OPERATOR: Hilife Group Santee, LLC
Buzz Cannabis
8011 Mission Gorge Road
Santee, California
Attn: Ray Ibrahim
CITY: City Manager
City of Santee
10601 Magnolia Ave.

Santee, CA 92071
Section 12. Inaction Not a Waiver of Default
The City does not waive its rights or remedies as to a Default by the failure or delay in asserting its rights with respect to any other Default. Nothing shall deprive the City of its right to institute and maintain an action or proceeding for Default that it deems necessary to protect, assert or enforce any such rights or remedies.

Section 13. Attorneys’ Fees
If either Party is required to initiate or defend litigation against the other party, the prevailing party in such action, in addition to any other relief which may be granted, will be entitled to recover reasonable attorneys’ fees, including fees for any appeal, as well as all other reasonable costs for investigation, depositions, discovery and necessary costs the court allows that are incurred in such litigation. All such fees are deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to a final judgment.

Section 14. Successors and Assigns
This Agreement may not be assigned or transferred by the Operator independently of the Operator’s CCB Permit, the transfer of which is governed by Santee Municipal Code section

7.04.240.

Section 15. Waiver, Release and Hold Harmless
By entering into this Agreement, Operator expressly waives any and all challenges to the Permit referenced herein and the condition(s) imposed thereon, including without limitation the Community Benefit Fee and/or the amount(s), which have been voluntarily agreed upon.

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CBA – Hilife Group Santee LLC (BUZZ)
is reasonable consideration for the City’s issuance of the Permit and obligation to protect public health, safety, and welfare.

Operator expressly waives and releases any and all rights to file a lawsuit for monetary damages against the City based on this Agreement. This includes, but is not limited to, any and all rights to seek a refund for the Community Benefit Fee paid to the City.

Operator also agrees and acknowledges that the provisions in Exhibit “A” hereto, including but not limited to the additional waiver, release and hold harmless provisions, survive and are expressly incorporated into this Agreement as enforceable provisions of this Agreement. To the extent of conflict between the indemnity, waiver, release and hold harmless provisions of this Agreement and those in Exhibit “A”, the more stringent provisions protecting the City shall apply.

Section 16. Governing Law
This Agreement is governed by the laws of the State of California. Venue shall be in San Diego County.

Section 17. Time of Essence
Time is of the essence for each and every provision of this Agreement.

Section 18. Relationship Between Operator and City
It is hereby acknowledged that the relationship between the Parties is not that of a partnership or joint venture. The Operator and the City shall not be deemed or construed for any purpose to be the agent of the other. The City has no obligation or duty with respect to the Operator’s CCB operations. Operator agrees to indemnify, hold harmless and defend the City and its officials, officers, employees, volunteers and agents from any claim made against the Operator arising from a claimed relationship of partnership or joint venture between the Operator and the City and/or its officials, officers, employees, volunteers and agents with respect to the CCB operations on the Property, including without limitation any provisions of this Agreement. In this regard, if any such claim is asserted, the City will give prompt notice to the Operator, and the Operator shall defend such claim by counsel of City’s choosing and shall pay for the City’s defense (including all costs, reasonable attorney’s fees, expert witness fees, and related expenses) of such claims.

Section 19. Indemnification
To the fullest extent permitted by law, Operator will defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Operator, its officials, officers, employees, subcontractors, consultants or agents in connection with Operator’s CCB operations, the Permit, the Property, and/or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Operator’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Operator or the City, its officials, officers, employees, agents or volunteers.
60139.00154\44038060.4

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Operator also agrees and acknowledges that the provisions in Exhibit “A” hereto, including but not limited to the additional indemnity provisions, survive and are expressly incorporated into this Agreement as enforceable provisions of this Agreement. To the extent of conflict between the indemnity, waiver, release and hold harmless provisions of this Agreement and those in Exhibit “A”, the more stringent provisions protecting the City shall apply.

Section 20. Cooperation.

The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

Section 21. No Third Party Beneficiaries.

There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

Section 22. Modification
Any alteration, change, or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance, signed on behalf of each Party.

Section 23. Severability
If any term, provision, condition or covenant of this Agreement or its application to any Party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.

Section 24. Counterparts and Electronic Signatures
This Agreement may be signed in counterparts, each of which shall constitute an original, and electronic signatures are acceptable and shall have the same force and effect as original wet signatures.

IN WITNESS WHEREOF, the Operator and the City have signed this Agreement to be effective as of the date first stated above.

CITY OF SANTEE OPERATOR
By: _________________________________ By: ___________________________ CITY MANAGER Print Name:

Title: _________
Date: Date:

60139.00154\44038060.4

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CBA – Hilife Group Santee LLC (BUZZ)
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: __________________________________
Shawn Hagerty, City Attorney

Date:

Attachment:

Exhibit A: Operator’s Financial Responsibility, Indemnity and Consent to Inspection Terms agreement and Agreement on Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification of City
60139.00154\44038060.4

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CBA – Hilife Group Santee LLC (BUZZ)
Exhibit A
Operator’s Signed Financial Responsibility,
Indemnity and Consent to Inspection Terms
agreement and Agreement on Limitations of City’s
Liability, and Certifications, Assurances, Warranties,
and Indemnification of City
Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-1

CITY OF SANTEE

COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
(RETAIL APPLICATIONS)

FINANCIAL RESPONSIBILITY, INDEMNITY AND

CONSENT TO INSPECTION TERMS
(Must be completed by all owners)
Dated: _____________________, 2024
I hereby agree to the following terms:

1. I herewith pay the sum of $25,711 for the application fee for the review and processing of an application for commercial cannabis business permit.

2. The entire fee amount paid to the City of Santee (“City”) is non-refundable. There is no guarantee - expressed or implied - that by submitting the application or paying the application fee that I will obtain a permit to operate a commercial cannabis business.

3. All costs incurred by the City in processing said application, including staff time, attorney’s fees, Consultant’s fees and overhead, shall be funded from the fees paid. This is a personal obligation and shall not be affected by sale or transfer of the property subject to the application, changes in business organization, or any other reason.

4. I acknowledge and agree to the defense, waiver, and indemnification obligations stated in the attached “Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties and Indemnification to City”, incorporated herein by reference.

5. The City will promptly notify the Applicant(s) and Owner(s) of any claim, action, or proceeding that is or may be subject to this Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. The City may, within its unlimited and sole discretion, participate in the defense of any such claim, action, or proceeding.

6. I will fund a deposit account (“Fund”) to reimburse the City’s cost, including attorney’s fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an initial sum of $20,000 to the Fund to reimburse the appropriate portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months’ worth of budgeted expenditures by the City relating to the City’s defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. Once all remaining September 30
Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-2
and outstanding reimbursements have been paid to the City by me, City shall return any remaining unused portion of the deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed to defend the City. To the extent the City uses any of its resources to respond to such claim, action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney’s time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

8. I consent and expressly allow, authorize, and permit the City, all its departments, agents, and employees, to enter upon and inspect the subject property identified in the application, with or without prior notice, for the purposes of processing this application or inspection or photographing for compliance with all laws, regulations, and conditions placed on land use approvals or the cannabis business permit. No additional permission or consent to enter upon the property is necessary or shall be required. By signing this agreement, I further certify and warrant I am authorized to, and hereby do, consent, and allow such inspections on behalf of each and all Owners of the property and Applicants.

9. I understand that all materials submitted in connection with the application are public records that the City may in accordance with applicable law determine are subject to inspection and copying by members of the public. By filing an application, I agree that the public may, if the City determines the law requires it, inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City’s website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the California Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hardcopy or electronic format.

10. This Agreement shall constitute a separate agreement from any cannabis business permit approval, and that if the cannabis business permit, in part or in whole, is revoked, invalidated, rendered null or set aside by a court of competent jurisdiction, I agree to be bound by the terms of this Agreement, which shall survive such invalidation, nullification or setting aside.

11. This Agreement shall be construed and enforced in accordance with the laws of the State of California and in any legal action or other proceeding brought by either party to enforce or interpret this Agreement; the appropriate venue is the San Diego County Superior Court.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached “Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties and Indemnification to City”.

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-3
Applicant(s)/Owner(s):

Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
ZĂǇ/ďƌĂŚŝŵ
ĞƐŵĂ/ďƌĂŚŝŵ
ƌĂŶĚŽŶ'ĂƌŵŽ
ĞƌĞŬ'ĂƌŵŽ
ZŝƚĂ,ŝƌŵĞǌ
Signature
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
^ŝŐŶĂƚƵƌĞ
____________________________________
Signature
Printed Name
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
WƌŝŶƚĞĚEĂŵĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
WƌŝŶƚĞĚEĂŵĞ
Steven Abbo
Diah P. Asker, Jr.
~~ll
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to: (1) any repeal or amendment of any provision of the Santee Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the cannabis business' owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant's sole cost and expense. I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorney's fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge ("Costs"), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

C. OBLIGATIONS INDEPENDENT OF AWARD OF PERMIT, LICENSE, OR ENTITLEMENTS The obligations under this Agreement shall apply regardless of whether a cannabis business permit or any related permits or entitlements are issued.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnificatio n to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7 .04, and all other applicable sections of the Municipal Code.
~ > » 1<av 71,~/h
A;Jf Signature Printed'Name and Title
¥,i,Je Groue f'4n/-ef!_1 LLC.
' ame of Business Entity
/IJ/;z/2_'1
~OIi Mt.f..J;rJfJ GO\f5e &l ~utriee cA
Address of Permitted Location q-207 /
Date
Applicant Signature Printed Name and Title
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 Ca~ • . I')
County of ,eSN
Signature__,~---=~----------- (Seal)
I
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I

MICHELLE BONNET I
COMM. #2390320 o NOTARY PUBLIC-CALIFORNIA ~ SAN DIEGO COUNTY - My Commission Expires I JANUARY 11, 2026
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
Agreement on Limitations 1o_f City's Liability, and
Certifications, Assuranc1es, Warranties, and
lndemnificatiCJ•n to City
(~lust be completed by all owners)
A. WAIVER, RELEASE AND Ht:>LD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Coun<:il, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilitins, costs (including attorney's fees), suits or other expenses which arise out of, or which arei in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used lby the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and ;agents from any and all actual and alleg1:1d claims, losses, damages, in_juries, liabilities, costs (including attorney's fees), suits or other expens,~s which arise out of, or which are in any way relate to: ( 1) any repeal or amendment of any provision of the Santee~ Municipal Code· or Zoning Ordinance relating to commercial cannabis activity; or (2) aniy investigation, arrest or prosecution of me, or the cannabis business' owners, operators, employees, clients 0 1r customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIF--Y
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commissions, officers, officic1ls, employees, and ;agents from and aga1inst any and all actual and alle,ged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proc•~edings undertaken in connection with the approval, denial, or appeal of the requested cann_abis business permit and any land use entitlement' related thereto, iii) aray subsequent approv,31s or licensing/permits relating to the requested ci3nnabis business permit and any land use entitlement related ·thereto, iv) the processing of the requested cannabis business permit and any land u:se entitlemei;1t related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approv.al, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement r~lated thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulation,s, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the· future regarding any zoning law amendmelilt(s) related to the cannabis business, x) tl1e operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business· permit or any related land use entitletnent, or the appeal of either, xii) City's compliance or failure to comply w1th applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant's sole cost and expense. I shall beat any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorney's fees for outside legal counsel, expert witness fees,. court costs, and other litigation expenses) arising out of or related to any challenge ("Costs"), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws . . J
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other applicable sections of the Municipal Code.
~ Hilife Group Santee, LLC
Name of Business Entity
,It!>, ~4
Date
n/a
Applicant Signature
n/a
Name of Business Entity
n/a
Date
Printed Name and Title
8011 Mission Gorge Rd, Santee, CA 92071
Address of Permitted Location
n/a
Printed Name and Title
n/a
Address of Permitted Location
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 ~ , .() a
County of Sct \'\ J I;:::'.)~
Subscribed a'1_ sworn to (or i ed) before me on this 3 rd ~ay of O C t Ob e ii ' 2024, by <; 1 V ~ l1 , proved to me on the basis of satisfactory Signature
evidence to be the person~ who appeared before me.

JM!l-~ (Seal)
Agreement of limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
Agreement on Limitations of City's Liability, and
C,ertifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by ml owners)
A. WAIVER. REL·EASE ~NC1 HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City•) and its City Council, boards and commissions, officers, officials, employeM. and agents from any and all actual and alleg€ld claims, losses, damages, injuries, liabllllies, cost:s (fncludin;i attorl'\8)"s fees), :surts or other expenses whJch arise oul of, or whio'h are In arty way relate to the app)icalion for a cannabis business permit., the fssu.ance of lhe cannabis business p~rmlt, the process used by the City in making ,ts decision, ttle enforcement of the conditioos of the cannabis business permit°' the cannabis bua.ness' operations.

I hereby waive, r,elease and hold harmleS:s the City and its c,ry Council. boards a11d commlssloos, officers, officials, employees, and agents from any and all actual and alleged claims, losses. damage&, Injuries. liabflities, costs {Including attorney's fees), suits or other expenses Which arise out of, or which are in any way relal.e to: (1) any repeal or amendment of any provision of tha Santee Municipal Code or Zonlng Ordinance relating to commercial cannabis activity; or (2) any in\flestigation, an-es.\ or prosecution of me, or the cannabis business' owners. operators, employees, clients or customers, for a violation of slate or rederal laws, rules or regulations relating to cannabis activities.

B. AG ff:EEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commls:SIOilS. officers, officials, employees, and agents from and against any and all actual and alleged Uabilities, d&mand:5, claims, losses. damages, injvries, actions or proCMdl119s and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees). which ar~se out of, or which are in any way related to i) the requested cannab~ business permJt and any land us0 entJtlement related thereto. ii) the proceectjngs undertaken n connection with the approval, denial, or appeal of the requested cannabis oosiness permit and any Land usa enliUement relamd thoreto, II) any subsequent approvals or llcensi11g/permfts relating to the requested cannabis business ~ rmlt and any land use entitlement re.lated thereto, tv) lhe processing of lhe requested cannabis business permit and any land use entitlemant related thereto, v) any amendmerits to the approvaJs for the requested cannabis business permit and any land use entitlemont related thereto, vi) the City's approval, consida.ratlon, analysis, review. issuance, deniall or appeal of lhe cannabis busrness permit; vii) the City's approval. CO(!Sidera~ion, analysis, revl,ew, ltisuance, denjal' or app@al of any land use entltlament related thereto, viii) th~ City's drafting, adoption and passage of an ordinance. and related resoau1ions, policies, rules and regulations, allowing tor cannabis b\Js nesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary ·n Ole fUrture regarding any zoning law amendmant(s) related to the cannabis bu~lness, ,x) the operation of' the cannabis business or aetivity, xr) 1th.e pmCQSs used by ttle City in making Its decision to approve, cons·der, anal~o. review, issl>e, or deny, lhe cannabls business permit or any related I.and use entlllement, or the appeal of either, xii) City's compllance or falh.rre to comply with applicable laws and regulatl0tl$ or xiii) the alleged violatioo of any federal, state or Agreement ot l.imiratlon5 of City's Llab,llf\', , ncl Ct'rtifie<1tjons. Assur,mc~ , w an~ntiM, .ind Indemnification to Otv local laws l>y th9 cannabis busif"8ss or eny of •ts. office rs, employees. oir agente, except where such lie.bility is carn~ed by Ille sole negligence or wlllful misconduct of the City.

Clty may (bOt Is not obligate<I toJ defend such cilalfer,ge as City. in its sole discreticm, determines :appro;priate. all at applicanf s S-ole cost alld expen5e. 1 shall be-ar any and all fosses., damages, injuries, fiablllties., eosts, and e~nses {Including, wlU-1out llmft.atlori, staff lime and in-house attorney's fees on a f,urny-loa.ded basis, attorney's f~es for outside tegal cournseJ, expert witness fees, court costs. and other litigation ex,penses) arising out of or related to any ol\allenge ("Costs~). whetheit incurred by me, City, or awarded to any lhird party, and shaJI pay lo ttte City upon demand any Costs tncurt-ed by tt,e City.

C, OBLIGATIONS INDEPENDENT OF AWARD OF PERMll, LICENSE, OR ENTITLEMENTS The ,obagadons under thls Agreement shell apply reg.atdless of whettier e cannabis bu,slness permit or any reJaied permits or entlUemenl:s are Issued.

D. OBLIGATIONS SURV~1VE EXPIRATION OF PERMIT, UC:ENSE, OR ENTITLEMENT'S The obligations under this Agreemen1 shall survive the expiration of any cannabis business pe<mil Of related permit or entitlement issued by the City, No modification of the permit, other approval!, changa In applicable laws a rld regulatilons, m char,ge In processing melhofXts shall alter the applicant"s indemnity obligation.
lfL PROSECUTION! UNDER FEDERAL LAW
I understand !hat I, oltlet applicar\t$, O...Vl'l-'HS, operators, employees, .and member~ of the cannabis business may b€l subject lo prosecution under FederaJ laws.

Asrcom nt of Limitations of City's Uab llltv, and Certlfica,tloru, .i\ssurences, Wa1rantles, and 1ndemnlfkat1on to City F•5
F. AUTHORIZiED TO SlfGN
The person(s) whose signature appears below 19/(are) aultlotiz.ecl to sign this Agreement on behalf of Ole business, applicantJpermiltee, and operators, and each of ltlem I if more than one, has submilred tliis 1nformalio11 and a[I attachments. as required by tile applk..at1on precess to obfain a oannabiis permit rrom lhe City of Sa11tee.

I declare under penally or perjury that the information provided on U,1s form Is true and com~ot and do hereby apply ·fOf a 1J)8rmil pursuant to City of Santee Mu.nlolpal Code, Chapter 7.04. and all OlnBr applicable SCCOOllS of the Munio1pal Code.
~lout-4- AJjplcant Signature
HILIFE ,GROUP SANTEE.,LLC
Name of Business Entity
1 OIOCZ/2024
Applicant Signature
Name of BtJsiness IErllity
Oate
DEREK GAR-MO, MEMBER ahtJ f'1q,~r
Printed Name and Tide
8011 MISSION GOREG RO. SANTEE CA. 92-071
Address o1 Permitted l ocation
Printed Name and Title
A<ldr,ess or Pe-.rmltted LoC'..ation
A notary public 01 olher officer completing thi5 Oe'rtificate veriines only lhe idontity of the individual wt10 signed ltle document 10 whldi fhls certificate la attached, and oot the lruthfulnc:sG, ~ccuraoy, or validity of lhat documenl.

State of Ca~°::~ D'
Coonzym ~ _ l~
Subs,cri~~ l:jl!'!.OflJ to ~ ajf~S,1,ttefore m8 on lhis _2_ day of ~ ,

20.24, by J,..lf.,Lt,.f-., lPtl.lfYU..) , proved to me on lhe ba.sc,s of salisfactol)' evidence to be the persori(s) wtio appeared before me.
(Saal)
A.Q,teeml!nm o fUnaitaliOM ot Ci,\i':r. Liabi lity, and ce,ttflcarr:lan~, Assurances, Warranties, and Indemnification to Citv F-6
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold hannless the City of Santee ("City'') and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business pennit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business pennit, or the cannabis business' operations.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabllitles, demands, claims, losses, damages, Injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary In the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compDance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below ls/(are) authorized to sign this Agreement on behalf of the business, applicanUpermittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the Information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other applicable sections of the Municipal Code.
-~~ Applicant Signature
Hilife Group Santee, LLC
Name of Business Entity
Date
n/a
Applicant Signature
n/a
Name of Business Entity
n/a
Date·
f3RANOotv G-tA~MO f{)~IY)0[R
Printed Name and Title
8011 Mission Gorge Rd, Santee, CA 92071
Address of Permitted Location
n/a
Printed Name and Title
n/a
Address of Permitted Location
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 Calif9mia ()
County of ~c..."' ; <?Jo
Subscribed and sworn to (or affirmed) before me on this~ day of O c:-L.~ , 2024, by (2 ,wJ on (;,.c..re,Q , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.
(Seal)
l--· ALINUHAILY I ii: • Commission No. 2430723 ~ NOTARY PUBLIC - CALIFORNIA i f SAN DIEGO COUNTY l
J Commi$$i0n Expires December 13, 21126 t
Agreement of Limitations of City's liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by fill owners}
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees). suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suit? or other expenses which arise out of, or which are in any way relate Jo: (1) any repeal or amendment of any provision of the Santee Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of rne, or the cannabis business' owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold ·harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval. denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval. consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant's sole cost and expense. I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorneis fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge ("Costs"), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

Applicant Signature Printed Name and Title
Hl/4"~ 6r014f S,411/ee-, LLc.

Name of Business Entity
@IIJV\rrSJrQ11 GovyeRd ~trkc.4
Address of Permitted Location 1'~07/
\o,..~~1° 2-<--f
Date
Applicant Signature
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 Cal~tqrnia D . County of WVJ _ f:@,O
Subscribe nd sworn tp (or affirmed) before me on this _2 day of (Jc.,,-+obeY- · . . 2024, by Z... , proved to me on the basis of satisfactory evidence to bet e person~ who appeared before me.

I
Signature __ _,_Pvl8_ -=· .--'~"-""--· -....:· =;.;..._- (Seal) MICHELLE BONNET l
COMM. #23903200 NOTARY PUBLIC-CALIFORNIA ~ SAN DIEGO COUNTY _.

My Commission Explu JANUARY 111 2026
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be complete'd by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to: (1 ) any repeal or amendment of any provision of the Santee Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the cannabis business' owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and .hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii} the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compliance or failure to comply with applicable laws and regulations or xiii) the alleged violat!on of any federal, state or Agreement of Limitations of City' s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence 'or willful misconduct of the City.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws. __;
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

Printed Name and Title e
\-1,, ~£€ Crro~ .S,~ LU_
Name of Business Entity
/olf#~y Date /
Applicantignature Printed Name and Title
Name of Business Entity ermitted Location
Date N /tx
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 Ca~orni~.

County of OOJ\ __.0 ~
Subscribed and sworn to (pr affirm.ad) before me on this ~day of Qe;b)be,r: , 2024, by ~ l om vuro , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature ~~NU) (Seal)
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees),. suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cann.abis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boatds' and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to: ( 1) any repeal or amendment of any provision of the Santee Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the c~nnabis business' owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and , commissions, officers, officials, employees, and agents from and against any ·and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and att9rney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and ariy land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses,• ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's complianC:e or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification .to City F-4
..
.
•• 1 •
local laws by the cannabis business or any of its officers, employees or agents,. except where such liability is caused by the sole negligence or willful misconduct of the City. • City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant's sole cost and expense7 I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitatio,n, staff time and in-house attorney's fees on a fully-loaded basis, attorney's fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of ar related to any challenge ("Costs"), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

D. OBLIGATIONS SURVIVE EXPIRATION OF PERMIT, LICENSE, OR ENTITLEMENTS The obligations under this Agreement shall survive the expiration of any cannabis business permit or related permit or entitlement issued by the City. No modification of the permit, other approval, change in applicable laws and regulations, or change in processing methods shall alter the applicant's indemnity obligation. • •
E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and lndemnific'ation to City F-5
I ; •
. , . -
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application proce~s to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other applicable sections of the Municipal Code.
~ Applicant Signature ~~- Printed Name and Title
. - ~~ H ,q ~ , 1 {1c. <no ,; e ~ LL-c.

Name of Business Enfoy
I {) • /. :)__tJ:1.1/
Date
;{DI/ M 1611m Gt~ · Pd ~rike.1c~
Address of Permitted Lcation 12.i:J7 /
Applicant Signature
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 S~tv 01t:40
Subscribed and sworn to (or affirmed) before me on this_\ _ day of 0 c.1ol)~i'l , 2024, by Qu\l\ Pt:11toS /l\S1qR ;11t , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature ~2.%~~!'::
1 ~~~-"---____ _ (Seal)

PEDRO OLII/EIRA
Notary Public • Califor"la !
San Ol4!iO County
Commission# 2494S28
My Comm. Expires Aug 8,.l!l28
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
..
60139.00154\44038280.4

COMMUNITY BENEFIT AGREEMENT
This Community Benefit Agreement (“Agreement”), is entered into as of August 27, 2025 (“Effective Date”), by and between the City of Santee, a California charter city (“City”), and Santee Project LLC, a California limited liability corporation, currently operating as Dr. Green Thumb’s (“Operator”). City and Operator may also be referred to individually as a “Party” or together as “Parties.”

RECITALS
WHEREAS, on July 11 2025, the City, through Resolution No. 101-2025, selected Operator as one of four businesses to pursue a commercial cannabis business permit (“Permit”) to operate a Commercial Cannabis Business (“CCB”) at that certain real property located at 10439 Prospect, Santee, California, APN 384-250-13-00 (the “Property”).

WHEREAS, Operator’s application, dated October 15, 2024, proposed certain community benefits, and Operator acknowledges that it was selected by the City, at least in part, due to the community benefits that Operator proposed to the City.

WHEREAS, subsequent to Operator’s selection on July 11, 2025, the City and Operator negotiated the details and final terms of the community benefits that Operator will provide to the City.

WHEREAS, Operator’s failure to abide by any of the terms of its community benefit agreement may constitute grounds for revocation of the Permit. (SMC § 7.04.190).

Page 2 ends

CBA – Dr. Green Thumb’s

Section 2. Term
This Agreement will commence on the Effective Date and shall remain in effect so long as Operator has a valid, City-issued Permit to operate the CCB at the Property.

Section 3. Definitions

3.1 Date of First Sale refers to the date on which Operator’s CCB makes its first sale authorized by the CCB Permit.

3.3 Operating Years one through three will be measured from the Date of First Sale:

A. Operating Year 1 will begin on the Date of First Sale and end 365 days later.

B. Operating Year 2 will begin one calendar year after the Date of First Sale and end 365 days later.

C. Operating Year 3 will begin two calendar years after the Date of First Sale and end 365 days later.

3.4 Quarter refers to a period of three months measured on a calendar year basis ending on March 31, June 30, September 30, and December 31.

Section 4. Community Benefits and Investment

4.1 Annual Community Benefit Fee Payable to the City:

A. Annual Gross Receipts.

Page 3 ends

CBA – Dr. Green Thumb’s
Operating Year 1: 7.0% of Gross Receipts
Operating Year 2: 7.5% of Gross Receipts
Operating Year 3: 8.0% of Gross Receipts
Upon request or before the conclusion of Operating Year 3, the City and Operator will evaluate the percentage then in place in view of Operator’s performance and experience to determine an appropriate Community Benefit Fee calculation for subsequent years. The Community Benefit Fee will remain at 8% unless and until modified by the Parties in writing.

B. Paid Quarterly.

The Community Benefit Fee due will be measured and paid on a quarterly basis. Within 30 days of the end of each Quarter, Operator will:

2. Payment. Remit payment of the Community Benefit Fee equal to the percentage of Gross Receipts during the Quarter due by applicable Operating Year.

C. End of Calendar Year:

Page 4 ends

CBA – Dr. Green Thumb’s
Questions about underpayment or overpayment may be raised by either Party at any time, but to the extent such issues have not been reconciled by the end of the calendar year, they should be identified in the Annual Financial Statement.

Annual Financial Statements are required independently of and regardless of whether Operator applies to renew Operator’s CCB Permit.

D. Late Payment:

4.2 Community Investment:

A. Approved Investments:

1. Volunteer hours up to 40 hours annually for which the employee is paid at the same hourly rate as if part of the regular work week.

2. Direct monetary donations to local charitable or community organizations.

3. Support Santee Little League.

B. Notice to the City:

Page 5 ends

CBA – Dr. Green Thumb’s
sponsorship or other investment will be deemed to satisfy this requirement.

C. Annual Accounting:

Failure to timely report or to establish the requisite value of the Community Investment may provide grounds for a notice of default under Section 9 below.

4.3 Other Community Benefits:

A. Operator will pay a minimum wage of $20 per hour.

B. Seventy percent of Operator’s annual payroll hours will target local hires.

C. Operator will enlist a network of local contractors and designers for buildout and will material-source locally.

D. Operator will participate in community events, including educational events, cannabis farmers markets and public appearances.

E. Operator will join and maintain and active membership in the Santee Chamber of Commerce.

Section 5. Commercial Cannabis Tax
If the City electorate establishes a commercial citywide cannabis tax during the Term of this Agreement, the Community Benefit Fee to be paid to the City established in Section 4.1 will expire upon date the new tax becomes effective and is charged to the customer upon sale. Operator’s commitment to providing Quarterly and Annual Statements will not expire. Unless otherwise determined by the electorate, the Community Investment and Other Community Benefits established in Sections 4.2 and 4.3 will remain in place.

Section 6. Records and Audits

Page 6 ends

CBA – Dr. Green Thumb’s
from any transaction showing the correct amount of the purchase shall be offered to the customer at the time of any transaction, including any cash sale.

Transactions not ordinarily recorded in a cash register or point of sale terminal must be noted on and kept in a ledger format. Operator must keep:

A. Full and accurate books of account and records including, without limitation, a sales journal, general ledger and all bank account statements showing deposits and withdrawals.

B. All cash register or point of sale terminal receipts.

C. Detailed original records of any refunds, discounts, or costs of goods sold.

D. All documents necessary to demonstrate compliance with this Agreement.

6.5 Audit Costs. The cost of the type of audit subject to this Agreement is included in the annual regulatory fee paid by the Operator and will be paid for from such funds.

Page 7 ends

CBA – Dr. Green Thumb’s
Management Plan addressing the specific issues identified in the written request from the City Manager for review and approval by the City Manager. At all times, Operator is obligated to work with the City Manager to address parking and traffic issues at the Property and neighboring businesses and streets, and must implement all reasonable direction from the City Manager regarding parking and traffic management
Section 8. Flyer and Vehicle Advertising Restrictions
Operator agrees that, as a condition of its commercial cannabis business permit and in alignment with the City’s interest in maintaining public cleanliness, safety, and aesthetic standards, in minimizing nuisance, and in protecting those who are not old enough to purchase cannabis products, it will not: (a) hand unsolicited flyers, advertisements, or other promotional materials to pedestrians in public spaces, except where specifically authorized; or (b) place flyers, advertisements, or promotional materials on parked vehicles, including under windshield wipers or on window, on public or private property. These restrictions apply solely to the time, place and manner of advertising and do not prohibit the Operator from engaging in lawful commercial speech through other means. Operator acknowledges that these restrictions are content-neutral and narrowly tailored to advance substantial city interests in litter prevention, traffic safety, protection of minors, and protection of private property, and that they leave open ample alternative means of communication.

Section 10. Institution of Legal Actions
In addition to the provisions of Section 9, if the Operator fails to cure or correct any Default, the City may institute an action at law or in equity against Operator to enforce this Agreement, to seek specific performance of the terms of this Agreement, to cure, correct, or remedy any Default, to recover damages for any Default, to recover the specified amounts due for failure to comply with the terms of this Agreement, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of San Diego, State of California, or in the Southern District of the United States District Court.

Page 8 ends

CBA – Dr. Green Thumb’s
OWNER/OPERATOR: Santee Project LLC
10439 Prospect Ave, Ste A
Santee, CA 92071
Attn: Ebon Johnson and James Tooma
CITY: City Manager
City of Santee
10601 Magnolia Ave.

7.04.240.

Operator agrees and acknowledges that the Community Benefit Fee called for under this Agreement is mutually agreed to, has not been compelled or otherwise imposed by the City, and is reasonable consideration for the City’s issuance of the Permit and obligation to protect public health, safety, and welfare.

Page 9 ends

CBA – Dr. Green Thumb’s
Section 16. Governing Law
This Agreement is governed by the laws of the State of California. Venue shall be in San Diego County.

Section 17. Time of Essence
Time is of the essence for each and every provision of this Agreement.

Operator also agrees and acknowledges that the provisions in Exhibit “A” hereto, including but not limited to the additional indemnity provisions, survive and are expressly incorporated into this Agreement as enforceable provisions of this Agreement. To the extent of conflict between the indemnity, waiver, release and hold harmless provisions of this Agreement and those in Exhibit “A”, the more stringent provisions protecting the City shall apply.

Section 20. Cooperation.

Page 10 ends

CBA – Dr. Green Thumb’s
Section 21. No Third Party Beneficiaries.

There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

Section 22. Modification
Any alteration, change, or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance, signed on behalf of each Party.

IN WITNESS WHEREOF, the Operator and the City have signed this Agreement to be effective as of the date first stated above.

CITY OF SANTEE OPERATOR
By: _________________________________ By: _______________________________ CITY MANAGER Print Name:

Title:

Date: Date:

APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: __________________________________
Shawn Hagerty, City Attorney

Date:

Attachment:

Page 11 ends

CBA – Dr. Green Thumb’s
Exhibit A
Operator’s Signed Financial Responsibility,
Indemnity and Consent to Inspection Terms
agreement and Agreement on Limitations of City’s
Liability, and Certifications, Assurances, Warranties,
and Indemnification of City
e

CALIFORNIA

2. FINANCIAL RESPONSIBILITY, INDEMNITY
AND NSENT □ INSPECTl N AGREEMENT

CITY OF SANTEE

COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
(RETAIL APPLICATIONS)

FINANCIAL RESPONSIBILITY, INDEMNITY AND

CONSENT TO INSPECTION TERMS
(Must be completed by all owners)
Dated: _/1--()_ ..... ___ !5. _ _ __,. 2024
I hereby agree to the following terms:

1. I herewith pay the sum of $25,711 for the application fee for the review and processing of an application for commercial cannabis business permit.

2. The entire fee amount paid to the City of Santee ("City'') is non-refundable. There is no guarantee - expressed or implied - that by submitting the application or paying the application fee that I will obtain a permit to operate a commercial cannabis business.

3. All costs incurred by the City in processing said application, Including staff time, attorney's fees, Consultant's fees and overhead, shall be funded from the fees paid. This is a personal obligation and shall not be affected by sale or transfer of the property subject to the application, changes In business organization, or any other reason.

4. I acknowledge and agree to the defense, waiver, and indemnification obligations stated in the attached "Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties and Indemnification to City", incorporated herein by reference.

5. The City will promptly notify the Applicant(s) and Owner(s) of any claim, action, or proceeding that is or may be subject to this Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties, and Indemnification to City. The City may, within its unlimited and sole discretion, participate in the defense of any such claim, action, or proceeding.

6. I will fund a deposit account ("Fund") to reimburse the City's cost, including attorney's fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an Initial sum of $20,000 to the Fund to reimburse the appropriate portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months' worth of budgeted expenditures by the City relating to the City's defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to Its defense remain unrelmbursed, whichever Is later. Once all remaining Agreement of Limitations of City's liability, and Certifications, Assurances, Warranties, and Indemnification to City F-1
and outstanding reimbursements have been paid to the City by me, City shall return any remaining unused portion of the deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed to defend the City. To the e.xtent the City uses any of its resources to respond to such claim, action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney's time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

8. I consent and expressly allow, authorize, and permit the City, all its departments, agents, and employees, to enter upon and inspect the subject property identified in the application, with or without prior notice, for the purposes of processing this application or inspection or photographing for compliance with all laws, regulations, and conditions placed on land use approvals or the cannabis business permit. No additional permission or consent to enter upon the property Is necessary or shall be required. By signing this agreement, I further certify and warrant I am authorized to, and hereby do, consent, and allow such inspections on behalf of each and all Owners of the property and Applicants.

9. I understand that all materials submitted in connection with the application are public records that the City may In accordance with applicable law determine are subject to Inspection and copying by members of the public. By filing an application, I agree that the public may, if the City determines the law requires it, Inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City's website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the California Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hardcopy or electronic format.

10. This Agreement shall constitute a separate agreement from any cannabis business permit approval, and that if the cannabis business permit, in part or in whole, Is revoked, invalidated, rendered null or set aside by a court of competent jurisdiction, I agree to be bound by the terms of this Agreement, which shall survive such Invalidation, nullification or setting aside.

11. This Agreement shall be construed and enforced In accordance with the laws of the State of California and In any legal action or other proceeding brought by either party to enforce or Interpret this Agreement; the appropriate venue is the San Diego County Superior Court.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached "Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties and Indemnification to City".

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-2
Appllcant(s)/OWner(s):

Printed Name Signature
Printed Name
1~u?~~
Sign/ture
Printed Name
Printed Name Signature
Printed Name Signature
Agreement of limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-3
e

CALIFORNIA

2. AGREEMENT N LIMITATIONS F CITY'S
LIABILITY ANll INllEMNIFICA TI N □ CITY
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City•) and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are In any way relate to: (1) any repeal or amendment of any provision of the Santee Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the cannabis business' owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto {including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to I) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, Issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, anaJyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

0. OBLIGATIONS SURVIVE EXPIRATION OF PERMIT, LICENSE, OR ENTITLEMENTS The obligations under this Agreement shall survive the expiration of any cannabis business permit or related permit or entitlement issued by the City. No modification of the permit, other approval, change in applicable laws and regulations, or change in processing methods shall alter the applicant's indemnity obligation.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City f-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and c3if attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form ls true and correct and do hereby a ply r a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other a - Ii • bl actions of the Municipal Code.
t,Q; 15 ... J.O~=\
~44:s:::M~~
Applicant Signature
SHfe-e fvatf e-t } l --.C:..::

Name of Busines ntity
/tJ /15/202..'f oa& ; 1
.C-/WJl/tY W: ;/o\JL/' oMi#-
Printed Name and Title
l6ll31 '.\?ro1i y?d::kbK.s1i'A-: Sev-v~ c/f;uq.. J
Address of Permitted Location
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 ~ Q, tcJ ~
Subscribed and sworn to (or affirrned) before me on this \ '5~ay of O C....\-o 'C>e. Y- , 2024, by %»en A..\s,e ;».,.._.,,.. -> s. :t G its"d w :iw&: , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature (Seal)
• E"'""---· ··t:01N°tcHANTAi.iro1i'I
COMM# 2452605 'ID --..--r--,::: SAN DIEGO County ::1:
!1.-s\l>:S--'IIL"" .allfor nla Notary Pu.blld:
omm Exp A1,.1g. 2, 2027 : ................ -... " .. ·-·. ,-.. ..... .

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicanVpermittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

ApplicantSignature
Name of Business Entity
Applicant Signature
Name of Business Entity
7er~ T~~"- &t./»ta,-
Pnnted Name and Title
lo lf 3 Cf Y raS P~-f 4Y/'!'. Sq h -ke f-ild11
Address of Permitted Location
Printed Name and Title
Io Lf 3 9 frD~P~c:. t 1Jv1:. ~ ,e~ q-z,.,-, 1
Address of Permitted Location
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 CalifQ.mla
County of '::> c....""' 0, ~~
Subscribed and sworn to (or affirmed) before me on this \ G5~day of 6c.+o'o:€. Y , 2024, by »~~ :toe C't'IQ.... s?'!>er"= \I'\•'< 'nc,.. , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature (Seal)
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
60139.00154\44038411.4

Page 1 ends

CBA – Green Reserve

COMMUNITY BENEFIT AGREEMENT
This Community Benefit Agreement (“Agreement”), is entered into as of August 27, 2025 (“Effective Date”), by and between the City of Santee, a California charter city (“City”), and East County Prospect LLC dba Green Reserve, a California limited liability corporation (“Operator”).

City and Operator may also be referred to individually as a “Party” or together as “Parties.”

RECITALS
WHEREAS, on July 11 2025, the City, through Resolution No. 101-2025, selected Operator as one of four businesses to pursue a commercial cannabis business permit (“Permit”) to operate a Commercial Cannabis Business (“CCB”) at that certain real property located at 10612 Prospect Avenue, Santee, California, APN: 384-260-09-00, 384-260-10-00 and 384-260-11-00 (the “Property”).

WHEREAS, Operator’s application, dated October 23, 2024, proposed certain community benefits, and Operator acknowledges that it was selected by the City, at least in part, due to the community benefits that Operator proposed to the City.

WHEREAS, subsequent to Operator’s selection on July 11, 2025, the City and Operator negotiated the details and final terms of the community benefits that Operator will provide to the City.

WHEREAS, Operator’s failure to abide by any of the terms of its community benefit agreement may constitute grounds for revocation of the Permit. (SMC § 7.04.190).

Page 2 ends

CBA – Green Reserve

Section 2. Term
This Agreement will commence on the Effective Date and shall remain in effect so long as Operator has a valid, City-issued Permit to operate the CCB at the Property.

Section 3. Definitions

3.1 Date of First Sale refers to the date on which Operator’s CCB makes its first sale authorized by the CCB Permit.

3.3 Operating Years one through three will be measured from the Date of First Sale:

A. Operating Year 1 will begin on the Date of First Sale and end 365 days later.

B. Operating Year 2 will begin one calendar year after the Date of First Sale and end 365 days later.

C. Operating Year 3 will begin two calendar years after the Date of First Sale and end 365 days later.

3.4 Quarter refers to a period of three months measured on a calendar year basis ending on March 31, June 30, September 30, and December 31.

Section 4. Community Benefits and Investment

4.1 Annual Community Benefit Fee Payable to the City:

A. Annual Gross Receipts.

Page 3 ends

CBA – Green Reserve
Operating Year 1: 7.0% of Gross Receipts
Operating Year 2: 7.5% of Gross Receipts
Operating Year 3: 8.0% of Gross Receipts
Upon request or before the conclusion of Operating Year 3, the City and Operator will evaluate the percentage then in place in view of Operator’s performance and experience to determine an appropriate Community Benefit Fee calculation for subsequent years. The Community Benefit Fee will remain at 8% unless and until modified by the Parties in writing.

B. Paid Quarterly.

The Community Benefit Fee due will be measured and paid on a quarterly basis. Within 30 days of the end of each Quarter, Operator will:

1. Statement: Send a return to the City Finance Director, on a form to be provided, reporting total Gross Receipts for the Quarter. . The Quarterly Statement must be certified as correct by an authorized officer of the Operator; and

2. Payment. Remit payment of the Community Benefit Fee equal to the percentage of Gross Receipts during the Quarter due by applicable Operating Year.

C. End of Calendar Year:

Page 4 ends

CBA – Green Reserve
Questions about underpayment or overpayment may be raised by either Party at any time, but to the extent such issues have not been reconciled by the end of the calendar year, they should be identified in the Annual Financial Statement.

Annual Financial Statements are required independently of and regardless of whether Operator applies to renew Operator’s CCB Permit.

D. Late Payment:

4.2 Community Investment:

A. Approved Investments:

1. Up to five volunteer hours per month to be paid to employee as regular work hours.

2. Direct monetary donations to local charitable or community organizations.

3. Support the Santee Firefighter Association.

B. Notice to the City:

Page 5 ends

CBA – Green Reserve
sponsorship or other investment will be deemed to satisfy this requirement.

C. Annual Accounting:

Failure to timely report or to establish the requisite value of the Community Investment may provide grounds for a notice of default under Section 9 below.

4.3 Other Community Benefits:

A. Operator will pay a minimum wage of $18 per hour.

B. Ninety to 100% of Operator’s annual payroll hours will target local hires.

C. Operator will prioritize hiring Santee residents for short-term and long-term contract jobs such as design and permitting consultants, construction services, ongoing contracted security services and cleaning services.

D. Operator will join and maintain and active membership in the Santee Chamber of Commerce.

E. Operator will hold monthly meetings at the Sportsplex to receive community feedback.

F. Operator offers $10,000 down payment assistance to employees who are first time homebuyers to purchase a home in Santee.

Page 6 ends

CBA – Green Reserve
Section 6. Records and Audits

Transactions not ordinarily recorded in a cash register or point of sale terminal must be noted on and kept in a ledger format. Operator must keep:

A. Full and accurate books of account and records including, without limitation, a sales journal, general ledger and all bank account statements showing deposits and withdrawals.

B. All cash register or point of sale terminal receipts.

C. Detailed original records of any refunds, discounts, or costs of goods sold.

D. All documents necessary to demonstrate compliance with this Agreement.

6.5 Audit Costs. The cost of the type of audit subject to this Agreement is included in the annual regulatory fee paid by the Operator and will be paid for from such funds. 60139.00154\44038411.4

Page 7 ends

CBA – Green Reserve
Section 7. Active Parking Management
Operator will provide active parking management in order to avoid nuisance issues related to spill over traffic or parking. Operator commits to working with the City Manager to quickly resolve any parking or traffic issues that may arise as a result of the Operator’s business activities. Upon written request from the City Manager, Operator will plan and submit a formal Parking Management Plan addressing the specific issues identified in the written request from the City Manager for review and approval by the City Manager. At all times, Operator is obligated to work with the City Manager to address parking and traffic issues at the Property and neighboring businesses and streets, and must implement all reasonable direction from the City Manager regarding parking and traffic management.

Page 8 ends

CBA – Green Reserve
Section 11. Notices, Demands and Communications Between the Parties Any approval, disapproval, demand, document or other notice (“Notice”) that either Party may desire to give to the other under this Agreement must be in writing and may be given by any commercially acceptable means at the address of the party set forth below, or at any other address as that party may later designate by Notice.

OWNER/OPERATOR: East County Prospect LLC
c/o Mattia & Yousif Law
3835 Avocado Blvd, Suite 265
La Mesa, CA 91941
CITY: City Manager
City of Santee
10601 Magnolia Ave.

7.04.240.

Page 9 ends

CBA – Green Reserve
Operator also agrees and acknowledges that the provisions in Exhibit “A” hereto, including but not limited to the additional waiver, release and hold harmless provisions, survive and are expressly incorporated into this Agreement as enforceable provisions of this Agreement. To the extent of conflict between the indemnity, waiver, release and hold harmless provisions of this Agreement and those in Exhibit “A”, the more stringent provisions protecting the City shall apply.

Section 16. Governing Law
This Agreement is governed by the laws of the State of California. Venue shall be in San Diego County.

Section 17. Time of Essence
Time is of the essence for each and every provision of this Agreement.

60139.00154\44038411.4

Page 11 ends

CBA – Green Reserve
Exhibit A
Operator’s Signed Financial Responsibility,
Indemnity and Consent to Inspection Terms
agreement and Agreement on Limitations of City’s
Liability, and Certifications, Assurances, Warranties,
and Indemnification of City
CllY OF SANTEE

COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
(RETAIL APPLICATIONS)
Dated: C/ -· l(
FINANCIAL RESPONSIBILllY, INDEMNllY AND

CONSENT TO INSPECTION TERMS
(Must be completed by all owners)
. 2024
I hereby agree to the following terms:

1. I herewith pay the sum of $25,711 for the application fee for the review and processing of an application for commercial cannabis business permit.

2. The entire fee amount paid to the City of Santee ("City") is non-refundable. There is no guarantee - expressed or implied - that by submitting the application or paying the application fee that I will obtain a permit to operate a commercial cannabis business.

3. All costs incurred by the City in processing said application, including staff time, attorney's fees, Consultant's fees and overhead, shall be funded from the fees paid. This is a personal obligation and shall not be affected by sale or transfer of the property subject to the application, changes in business organization, or any other reason.

6. I will fund a deposit account ("Fund") to reimburse the City's cost, including attorney's fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an initial sum of $20,000 to the Fund to reimburse the appropriate portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months' worth of budgeted expenditures by the City relating to the City' s defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. Once all remaining Agreement of Limitations of City's Liability. and Certifications, Assurances, Warranties, and Indemnification to City F-1
and outstanding reimbursements have been paid to the City by me, City shall return any remaining unused portion of the deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed ~o defend the City. To the extent the . City uses any of its resources to respond to such claim, ·action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney's time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

8. I consent and expressly allow, authorize, and permit the City, all its departments, agents, and employees, to enter upon and inspect the subject property identified in the application, with or without prior notice, for the purposes of processing this application or inspection or photographing for compliance with all laws, regulations, and conditions placed on land use approvals or the cannabis business permit. No · additional permission or consent to enter upon the property is necessary or shall be required. By signing this agreement, I further certify and warrant I am authorized to, and hereby do, consent, and allow such inspections on behalf of each and all Owners of the property and Applicants.

9. I understand that all materials submitted in connection with the application are public records that the City may in accordance with applicable law determine are subject to inspection and copying by members of the public. By filing an application, I agree that the public may, if the City determines the law requires it, inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City's website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the California Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hard copy or electronic format.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached "Agreement on Limitations of City's liability, and Certifications, Assurances Warranties and Indemnification to City".

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties; and Indemnification to City F-2
Applicant(s)/Owner(s):

X .J;:/ i, q, ,,z ~ f O I~ S
Printed Name
Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-3
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, da·mages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to: (1) any repeal or amendment of • any provision of the Santee Municipal Code or Zoning Ordinance relating to com'mercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the cannabis business' owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and reguiations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except'i,vhere such liability is caused by the sole negligence or willful misconduct of the City.

City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant's sole cost and expense. I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including; without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorney·~ fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge ("Costs"), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

D. OBLIGATIONS SURVIVE EXPIRATION OF PERMIT, LICENSE, OR ENTITLEMENTS The obligations under this Agreement shall suNive the expiration of any cannabis business permit or related permit or entitlement issued by the City. No modification of the permit, other approval, change in applicable laws and regulations, or change in processing methods shall alter the applicant's indemnity obligation.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

Applicanignature
East County Prospect LLC
Name of Business Entity
09/04/2024
Date
Applicant Signature
Name of Business Entity
Date
Printed Name and Title
10612 Prospect Ave, Santee, CA 92071
Address of Permitted Location
Printed Name and Title
Address of Permitted Location
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 L
County of 5an ht.£8D
Subscribed and sworn to or a,ffirmed) before me on this ___::i___ day of 5.t.f f • , 2024, by I fYl l , proved to me on the basis of satisfactory evidence to be the person~ who appeared before me.

Signature ~fll_OIJL (Seal)
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
60139.00154\44038171.4

Page 1 ends

CBA - Flyte

COMMUNITY BENEFIT AGREEMENT
This Community Benefit Agreement (“Agreement”), is entered into as of August 27, 2025 (“Effective Date”), by and between the City of Santee, a California charter city (“City”), and 9805 Prospect LLC dba Flyte, a California limited liability corporation (“Operator”). City and Operator may also be referred to individually as a “Party” or together as “Parties.”

RECITALS
WHEREAS, on July 11 2025, the City, through Resolution No. 101-2025, selected Operator as one of four businesses to pursue a commercial cannabis business permit (“Permit”) to operate a Commercial Cannabis Business (“CCB”) at that certain real property located at 9805 Prospect, Santee, California, 384-190-74-00 and 384-190-44-00 (the “Property”).

WHEREAS, Operator’s application, dated October 21, 2024, proposed certain community benefits, and Operator acknowledges that it was selected by the City, at least in part, due to the community benefits that Operator proposed to the City.

WHEREAS, subsequent to Operator’s selection on July 11, 2025, the City and Operator negotiated the details and final terms of the community benefits that Operator will provide to the City.

WHEREAS, Operator’s failure to abide by any of the terms of its community benefit agreement may constitute grounds for revocation of the Permit. (SMC § 7.04.190).

Page 2 ends

CBA - Flyte

Section 2. Term
This Agreement will commence on the Effective Date and shall remain in effect so long as Operator has a valid, City-issued Permit to operate the CCB at the Property.

Section 3. Definitions

3.1 Date of First Sale refers to the date on which Operator’s CCB makes its first retail sale authorized by the CCB Permit.

3.2 Gross Receipts refer to any amount the purchaser is required to pay to purchase cannabis or cannabis products from the Operator, including the selling price of the cannabis or cannabis products, any expense the Operator passes on to the purchaser, any charges for services, and any delivery fees without deduction except for refunds and taxes required by law to be included in or added to the purchase price and collected at the time of sale.

3.3 Operating Years one through three will be measured from the Date of First Sale:

A. Operating Year 1 will begin on the Date of First Sale and end 365 days later.

B. Operating Year 2 will begin one calendar year after the Date of First Sale and end 365 days later.

C. Operating Year 3 will begin two calendar years after the Date of First Sale and end 365 days later.

3.4 Quarter refers to a period of three months measured on a calendar year basis ending on March 31, June 30, September 30, and December 31.

Section 4. Community Benefits and Investment

4.1 Annual Community Benefit Fee Payable to the City:

A. Annual Gross Receipts.

Page 3 ends

CBA - Flyte
Operating Year 1: 7.0% of Gross Receipts
Operating Year 2: 7.5% of Gross Receipts
Operating Year 3: 8.0% of Gross Receipts
Upon request or before the conclusion of Operating Year 3, the City and Operator will evaluate the percentage then in place in view of Operator’s performance and experience to determine an appropriate Community Benefit Fee calculation for subsequent years. The Community Benefit Fee will remain at 8% unless and until modified by the Parties in writing.

B. Paid Quarterly.

The Community Benefit Fee due will be measured and paid on a quarterly basis. Within 30 days of the end of each Quarter, Operator will:

2. Payment. Remit payment of the Community Benefit Fee equal to the percentage of Gross Receipts during the Quarter due by applicable Operating Year.

C. End of Calendar Year:

Page 4 ends

CBA - Flyte
Questions about underpayment or overpayment may be raised by either Party at any time, but to the extent such issues have not been reconciled by the end of the calendar year, they should be identified in the Annual Financial Statement.

Annual Financial Statements are required independently of and regardless of whether Operator applies to renew Operator’s CCB Permit.

D. Late Payment:

4.2 Community Investment:

A. Approved Investments:

Investment in the City of Santee community (defined as the City’s municipal boundaries) may take the form of, but are not limited to, in-kind donations with a verifiable monetary value, financial, sponsorship or support of community events such as fairs, afterschool programs, youth centers, local public or private schools, school athletic programs, school clubs, community centers, homeless shelters, senior centers and/or senior living facilities, and parks and recreation programs, paid time to volunteer at qualifying events, and the payment of mutually agreeable fees and charges.

As part of Operator’s application and in representations to City Council, Operator identified the following examples of community investment that, while not binding, would satisfy this Community Investment requirement:

1. Volunteer hours up to 40 hours annually where the employee is paid for the volunteer hours as regular work hours.

2. Direct monetary donations to local charitable or community organizations.

B. Notice to the City:

Prior to the First Date of Sale, and annually thereafter, the Operator must provide the City Manager with a written notice of the types of investments in the City of Santee community that Operator will make for the year. The City Manager will have 15 days from the date of the notification to comment on the written notice. If no comment is offered, the donation, contribution, 60139.00154\44038171.4

Page 5 ends

CBA - Flyte
sponsorship or other investment will be deemed to satisfy this requirement.

C. Annual Accounting:

Failure to timely report or to establish the requisite value of the Community Investment may provide grounds for a notice of default under Section 9 below.

4.3 Other Community Benefits:

A. Operator will pay a minimum wage of $21.50 per hour.

B. Seventy-five percent of Operator’s annual payroll hours will target local hires.

C. Operator will source all vendors and contractors for site construction and development locally.

D. Operator will participate in community and educational events.

E. Operator will join and maintain an active membership in the Santee Chamber of Commerce.

Section 5. Commercial Cannabis Tax
If the City electorate establishes a commercial citywide cannabis tax during the Term of this Agreement, the Community Benefit Fee to be paid to the City established in Section 4.1 will expire upon date the new tax becomes effective and is first charged to a customer upon sale. Operator’s commitment to providing Quarterly and Annual Statements in accordance with Section 4.1 of this Agreement will not expire. Unless otherwise determined by the electorate, the required Community Investment and Other Community Benefits established in Sections 4.2 and 4.3 will remain in place.
60139.00154\44038171.4

Page 6 ends

CBA - Flyte
Section 6. Records and Audits

Transactions not ordinarily recorded in a cash register or point of sale terminal must be noted on and kept in a ledger format. Operator must keep:

A. Full and accurate books of account and records including, without limitation, a sales journal, general ledger and all bank account statements showing deposits and withdrawals.

B. All cash register or point of sale terminal receipts.

C. Detailed original records of any refunds, discounts, or costs of goods sold.

D. All documents necessary to demonstrate compliance with this Agreement.

6.5 Audit Costs. The cost of the type of audit subject to this Agreement is included in the annual regulatory fee paid by the Operator and will be paid for from such funds. 60139.00154\44038171.4

Page 7 ends

CBA - Flyte
Section 7. Active Parking Management
Operator will provide active parking management in order to avoid nuisance issues related to spill over traffic or parking. Operator commits to working with the City Manager to quickly resolve any parking or traffic issues that may arise as a result of the Operator’s business activities. Upon written request from the City Manager, Operator will plan and submit a formal Parking Management Plan addressing the specific issues identified in the written request from the City Manager for review and approval by the City Manager. At all times, Operator is obligated to work with the City Manager to address parking and traffic issues at the Property and neighboring businesses and streets, and must implement all reasonable direction from the City Manager regarding parking and traffic management.

Page 8 ends

CBA - Flyte
Section 11. Notices, Demands and Communications Between the Parties Any approval, disapproval, demand, document or other notice (“Notice”) that either Party may desire to give to the other under this Agreement must be in writing and may be given by any commercially acceptable means at the address of the party set forth below, or at any other address as that party may later designate by Notice.

OWNER/OPERATOR: Mr. Chris Salem
9805 Prospect, LLC
8617 Cuyamaca Street, Suite 2
Santee, CA 92071
With a Copy to:

Fennemore
600 B Street, Suite 1700
San Diego, CA 92101
Attn: Kelly Black
CITY: City Manager
City of Santee
10601 Magnolia Ave.

7.04.240.

Page 9 ends

CBA - Flyte
Operator agrees and acknowledges that the Community Benefit Fee called for under this Agreement is mutually agreed to, has not been compelled or otherwise imposed by the City, and is reasonable consideration for the City’s issuance of the Permit and obligation to protect public health, safety, and welfare.

Section 16. Governing Law
This Agreement is governed by the laws of the State of California. Venue shall be in San Diego County.

Section 17. Time of Essence
Time is of the essence for each and every provision of this Agreement.

60139.00154\44038171.4

Page 11 ends

CBA - Flyte
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: __________________________________
Shawn Hagerty, City Attorney

Date:

Attachment:

Page 12 ends

CBA - Flyte
Exhibit A
Operator’s Signed Financial Responsibility,
Indemnity and Consent to Inspection Terms
agreement and Agreement on Limitations of City’s
Liability, and Certifications, Assurances, Warranties,
and Indemnification of City
FLYTE

SANTEE, CALIFORNIA
e

CALIFORNIA

2. FINANCIAL RESPONSIBILITY,

INDEMNITY AND CONSENT TO

INSPECTION AGREEMENT

CITY OF SANTEE

COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
(RETAIL APPLICATIONS)

FINANCIAL RESPONSIBILITY, INDEMNITY AND

CONSENT TO INSPECTION TERMS
(Must be completed by all owners)
I hereby agree to the following terms:

1. I herewith pay the sum of $25,711 for the application fee for the review and processing of an application for commercial cannabis business permit.

5. The City will promptly notify the Applicant(s) and Owner(s) of any claim, action, or proceeding that is or may be subject to t his Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties, and Indemnification to City. The City may, within its unlimited and sole discretion, participate in the defense of any such claim, action, or proceeding.

6. I will fund a deposit account ("Fund") to reimburse the City's cost, including attorney's fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an initial sum of $20,000 to the Fund to reimburse the appropriate portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months' worth of budgeted expenditures by the City relating to the City's defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. Once all remaining Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-1
and outstanding reimbursements have been paid to the City by me, City shall return any remaining unused portion of the deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed to defend the City. To the extent the City uses any of its resources to respond to such claim, action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney's time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

9. I understand that all materials submitted in connection with the application are public records that the City may in accordance with applicable law determine are subject to inspection and copying by members of the public. By filing an application, I agree that the public may, if the City determines the law requires it, inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City's website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the california Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hardcopy or electronic format.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached "Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties and Indemnification to City''.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-2
Applicant(s)/Owner(s):

Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-3

CITY OF SANTEE

COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
(RETAIL APPLICATIONS)

FINANCIAL RESPONSIBILITY, INDEMNITY AND

CONSENT TO INSPECTION TERMS
(Must be completed by~ owners)
Dated: OcT0/3£/?. 11 2024
I hereby agree to the following terms:

1. I herewith pay the sum of $25,711 for the application fee for the review and processing of an application for commercial cannabis business permit.

4. I acknowledge and agree to the defense, waiver, and indemnification obligations stated in the attached "Agreement on Limitations of City's liability, and Certifications, Assurances Warranties and Indemnification to City", incorporated herein by reference.

5. The City will promptly notify the Applicant(s) and Owner(s) of any claim, action, or proceeding that is or may be subject to this Agreement on limitations of City's liability, and Certifications, Assurances Warranties, and Indemnification to City. The City may, within its unlimited and sole discretion, participate in the defense of any such claim, action, or proceeding.

6. I will fund a deposit account ("Fund") to reimburse the City's cost, including attorney's fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an initial sum of $20,000 to the Fund to reimburse the appropriate portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months' worth of budgeted expenditures by the City relating to the City's defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. Once all remaining Agreement of limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-1
and outstanding reimbursements have been paid to the City by me, City shall return any remaining unused portion of the deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed to defend the City. To the extent the City uses any of its resources to respond to such claim, action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney's time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

9. I understand that all materials submitted in connection with the application are public records that the City may in accordance with applicable law determine are subject to inspection and copying by members of the public. By filing an application, I agree that the public may, if the City determines the law requires it, inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City's website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the california Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hardcopy or electronic format.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached "Agreement on Limitations of City's Liability, and Certifications, Assurances Warranties and Indemnification to City''.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-2
Applicant(s)/Owner(s):

Isl!(/) [1 ~/10(/()J
Printed Name
Printed Name Signature
Printed Name Signature
Printed Name Signature
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-3
_ _ __ _ __ - ------------~---- ---·-----------.,.~ .. unwww--,-..u.,.,.w-.--.~ II 91 FLYTE

SANTEE, CALIFORNIA
e

CALIFORNIA

2. AGREEMENT ON

LIMITATIONS OF CITY'S

LIABILITY AND

INDEMNIFICATION TO CITY
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other applicable sections of the Municipal Code.
fr~ ((&l/1 z 11/A{}(jf1· /tJ(JJJvcK, cro
Printed Name and Title '
t!£~Bt!P.f[!;:! ac rio ( ftoJfEcr ~/Jc, s4NTr £ , r;1 r?tJl/ Address of Permitted Location
Date
Applicant Signature Printed Name and Title
Name of Business Entity Address of Permitted Location
Date
A notary pubf 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 ~"" Q:
0o
Subscribed and sworn to or affirmed) before me on this 0~ day of Oc+o.bc..r , 2024, by Z. ;40 YI , proved to me on the basis of satisfactory evidence to be the personGli4 whd appeared before me.
/// ----- Signature _,,_.,,r;.~....,.:'-- '- ... ;;;..--' --===~--- (Seal) Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6

CALIFORNIA

JURAT CERTIFICATE
A Notary Public or other officer compleling 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 San Diego
Subscribed and sworn to ( or affirmed) before me on this a y day of _~-c~A~·o_h~-e.._\('~--~ 20--2.:L., by t:1m I z /ti IJ O tlfYJ I
Signature of Notary Public (Notary Seal)

OPTIONAL INFORMATION
The ju rat contained within this document is in accordance with California law. Any affidavit subscribed and sworn to before a notary shall use the preceding wording or substantially similar wording pursuant to Civil Code sections 1189 and 8202. A jura1 cer1ifica1e ca111101 be affixed to a document se111 by mail or othenvise delivered to a notary public, i11c/11di11g electronic means, whereby the signer did not personally appear before the 11ota,y public, even if the signer is known by the notary public. The seal and signature ca111101 be affixed to a document wi1hout 1he correct 1101arial wording. As an addi1ional op1io11 an affian1 can produce 011 afjidavi1 on 1he same docwnenl as 1he 110/arial cenijica,e wording ro eliminale rhe use of addirional docwnema1io11.

RESCRIPTION OF ATTACHED DOCUMENT
:~~~",¼- o~ L;':i!°"·I--J,," s "t li'i'.i
I, ~d,'½ 1 41\d c-w~~te,.~:o., ~, "'-5.S..,,..~,..tL-~
-.,,,..r"......f-kt (Title of document) °'-'◄ ,\ . .Ar.. •••~11 ~ca tlo r t-O lj~
Number of Pages _:l_(Inc!udingjurat)
DocumentDate 10 /c'-l I 1oz.~
I
(Additional Information)
MMX V. BAN2 510.409.1334 www.BayAreaNotary.com

CAP A CITY CLAIMED BY THE SIGNER
-1--+- Individual
Corporate Officer
Partner
_ Attorney-In-Fact
Trustee
Other: _ _ ___________ _
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other ap • ·ca~I sectrQ s of the Municipal Code.
\4,?.o '=ki\ari D.o-cJ, COO
Printed Na e and Title
crxos P{ osfcl LLC
Name of Business Enuty '
9 2DS ~ rt ~ c.. S;1.. Cf\ ci 2.o-=J-J
Address ofP rmitted Location 1
Date
Applicant Signature Printed Name and Title
Name of Business Entity Address of Permitted Location
Date
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 £ ma D,'tJ o
Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6

CALIFORNIA

JURAT CERTIFICATE
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 San Diego
Subscribed and sworn to ( or affirmed) before me on this OY day of OL to b ~ v20~ by ~ -z.'..,:f\ '--2:,~~v'\ WITNESS MY HAND AND OFFICIAL SEAL.

Si;i;;;e of Notary Public (Notary Seal)

OPTIONAL INFORMATION
Tire ju rat contained within this document is in accordance with Califomia law. Any affidavit subscribed and swam to before a notary shall use the preceding wording or substantially similar wording pursuant to Civil Code sections 1189 and 8202. A ju rat certificate cannot be affixed to a document sent by mail or othe,wise delivered to a notary public, including elec1ronic means, whereby the signer did not personally appear be.fore the notary public, even if the signer is known by the notary public. The seal and signature cannot be affixed lO a doc11111e111 wirhow the correct notarial wording. As cm additional option an affiant can produce an affidavit 0 11 the same document as the notarial cenificate wording ro eliminate the use of additional docu111e11tatio11.

DESCRIPTION OF AITAG-IED DOCUMENT
~Cj-~e,r,1Ul } t>-'\ qVllli tcd·:o.,.s o{ c,.;-../~
l,b,ll,; 1,·1:1, ''"& Cil'r.f, lAh'Ol') S. 't}~ll'()tnt, r. wc,~,.:;e,-1 (Title ofdocument)ev,) 1,,Jt"11\;t1C:,\itA Number of Pages ~(lncludingjurat) '"-o t;.,
Document Date l O } p'j I 'J..o Z..'-1
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(Additional lnfonnation)
MMX V. BAN2 510.409.1334 www.BayAieaNotary.com

CAP A CITY CLAIMED BY THE SIGNER
--~ Individual
Corporate Officer
Partner
_ Attorney-In-Fact
Trustee
Other: _____________ _
Agreement on Limitations of City's Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee ("City") and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business' operations.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Cou,ncil, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney's fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City's approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City's approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City's drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City's compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

City may {but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant's sole cost and expense. I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorney's fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge ("Costs"), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City's Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

Applicant Signature
Name of Business Entity
l O /11.../ /z_y
Date
Applicant Signature
Name of Business Entity
Printed Name and Title
~4'.t- CU.."-{Q1Y\C4k.dt
q ~or RrOJre.ltt\Ve J.,\:k(, cA 4 to:J--1
Address of Permitted Location

SEE ATTACHED

CALIFORNIA JURA T
l\/\(v-h1) Ja.\erY'\ 1 C)(.tj1)e('
Printed Name and Title
~ s-Lf: J O,LyaYJU.a..d+
q~~ A-uJfJ~fue /o.,\+ee, C4 qwµ
Address of Permitted Location
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 Calif,Snia ,
County of • Q y\ D I -t.s CJ
Subscribe an~ sworn to (or ~ffirmed) before me on this t 4 ~ 1-. day of Qc-+c.i ~,,- , 2024, by v1 .,- S °'- Iv---.. , proved to me on t e basis of satisfactory evidence to be the persoPJ.J+;i,..,-,,,,.._,o appeared before me. (Seal) .... COMM. #2392433 I ~ .. 6 NOTARY PUBLIC-CALIFORNIA ~ f,J SAN DIEGO COUNTY !:? I ' · My Commission Expires
FEBRUARY 1, 2026 I Ii.. lil:t 11!1 ......... ;
t of Limitations of City's Liability, and Certifications, Assurances, Warra nties, and Indemnification to City F-6
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
validi of that document.

State of California
County of SAN DIEGO
--h
Subscri~ 'f"d sworn to (or afflrme~efore me on thffi } b day of -~o b.v- , 2024, by 0\.-r+."' ~o.. IV"-.
proved to me on the basis of satisfactory evidence to be the person(?' who appeared before me.

J.GOMEZ I
COMM. #2392433 n
NOTARY PUBLIC·CAUFORNIA U>
SAN DIEGO COUNTY g My Commlaslon Expires
FEBRUARY 1. 2026 . (,--..._.. ;.....,....;;.--~~nit

NOTICE OF EXEMPTION
TO: Office of Planning and Research
CEQAnet Web Portal
https://ceqanet.opr.ca.gov
FROM: (Public
Agency)
City of Santee
Planning & Building Department
County Recorder
County of San Diego
P.O. Box 121750
San Diego, CA 92112-1750
Address: 10601 Magnolia Avenue,
Building 4
Santee, CA 92071

1. Project Title: BUZZ Commercial Cannabis Business Permit Retail Application (CAN-001032-2024)

2. Project Applicant: Hilife Group Santee, LLC
DBA: BUZZ
8011 Mission Gorge Road
Santee, CA 92071
(619) 857-3001

3. Project Location – Identify street
address, cross streets or attach a
map showing project site
(preferably a USGS 15’ or 7 1/2’
topographical map identified by
quadrangle name):

Street address:8011 Mission Gorge Road, Santee, CA 92071 APN: 383-261-25-00
Cross streets: Mission Gorge Road and Crossway Court
Location Map attached
(a) Project Location – City: Santee
(b) Project Location – County: San Diego

4. Description of nature, purpose, and
beneficiaries of Project:

This project is a Commercial Cannabis Business Permit for the establishment of a retail cannabis business in accordance with the City’s Cannabis Business Permit Ordinance (Santee Municipal Code Chapter 7.04). The retail business would occupy 3,363 square feet of existing commercial retail space within an existing multitenant neighborhood shopping center. The project will update the shopping center with new paint, exterior lighting, landscaping and video surveillance. The shopping center is on a 0.73-acre corner lot located at 8011 Mission Gorge Road in the General Commercial (GC) Zone.

5. Name of Public Agency approving
project: City of Santee

6. Name of Person or Agency
undertaking the project, including
any person undertaking an activity
that receives financial assistance
from the Public Agency as part of
the activity or the person receiving a
lease, permit, license, certificate, or
other entitlement of use from the
Public Agency as part of the activity:

BUZZ
Ray Ibrahim – Manager & Member
2605 Camino Del Rio S, Suite 200
San Diego, CA 92108
(619) 857-3001

7. Exempt status: (check one)
(a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) Not a project.

CALIFORNIA PLANNING & BUILDING DEPARTMENT
□
□
(c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))
(d) Categorical
Exemption.

State type and section number:

Class 3. Section 15303 New Construction or Conversion of Small Structures
(e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(f) Statutory Exemption.

State type and section number:
(g) Other. Explanation:
(h) Reason why the project was
exempt:

The project consists of the conversion of 3,363 square feet of existing retail space within an existing multi-tenant neighborhood shopping center to a retail cannabis business. The multi-tenant neighborhood shopping center is located on a 0.73-acre corner lot in the GC Zone, in an urbanized area with all necessary public services available to serve the site. The surrounding area is developed with urban uses and would not be considered
environmentally sensitive. The project proposes converting two of the existing retail suites (3,363 square feet) within the shopping center, adding additional landscaping, painting and adding exterior lighting. The conversion does not exceed 10,000 square feet and the proposed retail use will not involve significant amounts of hazardous substances. Through review of the project and project site, none of the exceptions in Section 15300.2 exist and the project may rely on the categorical exemption.
(i) Lead Agency Contact Person: Rachael Lindebrekke, Associate Planner (j) Telephone: 619-258-4100, extension 205

8. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.

9. Has a Notice of Exemption been filed by the public agency approving the project? Yes No

10. Was a public hearing held by the lead agency to consider the exemption? Yes No

11. If yes, the date of the public hearing was: 7/8/2025, 7/10/2025, 7/11/2025 and 8/13/2025 Signature: Date: ____________Title: Associate Planner
Rachael Lindebrekke
Signed by Lead Agency Signed by Applicant
Date Received for Filing:
(Clerk Stamp Here)
Authority cited: Sections 21083 and 21100, Public Resources Code.

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.

CALIFORNIA PLANNING & BUILDING DEPARTMENT
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1. Project Title: Santee Project, LLC Commercial Cannabis Business Permit Retail Application (CAN-001022-2024), operating as Dr. Green
Thumb’s

2. Project Applicant: Santee Project, LLC
Operating as Dr. Green Thumb’s
8760 Campo Rd
La Mesa, CA 91941
(619) 319-7878

3. Project Location – Identify street
address, cross streets or attach a
map showing project site
(preferably a USGS 15’ or 7 1/2’
topographical map identified by
quadrangle name):

Street address: 10439 Prospect Ave, Suite A, Santee, CA 92071 APN: 384-250-13-00
Cross streets: Prospect Ave and Franken Street
Location Map attached
(a) Project Location – City: Santee
(b) Project Location – County: San Diego

4. Description of nature, purpose, and
beneficiaries of Project:

This project is a Commercial Cannabis Business Permit for the establishment of a retail cannabis business in accordance with the City’s Cannabis Business Permit Ordinance (Santee Municipal Code Chapter 7.04). The retail business would occupy the ground floor (1,820 square feet) of a 4,950 square foot existing industrial office building. The top floor will remain an industrial office and the 13,680 square foot multi-tenant industrial building also located on the site will remain. The project will update the 4,950 square foot building with new paint, windows, exterior lighting, landscaping and video surveillance. The multi-tenant industrial center is on a 1.16-acre lot located at 10439 Prospect Ave, Suite A in the General Industrial (IG) Zone.

5. Name of Public Agency approving
project: City of Santee

Santee Project LLC
Ebon A Johnson Sr – Member Manager
8760 Campo Rd
La Mesa, CA 91941
(619) 319-7878

7. Exempt status: (check one)
(a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268)

CALIFORNIA PLANNING & BUILDING DEPARTMENT
□
(b) Not a project.
(c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))
(d) Categorical
Exemption.

State type and section number:

Class 3. Section 15303 New Construction or Conversion of Small Structures
(e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(f) Statutory Exemption.

State type and section number:
(g) Other. Explanation:
(h) Reason why the project was
exempt:

The project consists of the conversion of the bottom floor (1,820 square feet) of 4,950 square foot existing industrial office building.

The multi-tenant industrial center is on a 1.16-acre lot in the IG Zone, in an urbanized area with all necessary public services available to serve the site. The surrounding area is developed with urban uses and would not be considered environmentally sensitive.

The top floor will remain an industrial office and the 13,680 square foot multi-tenant industrial building also located on the site will remain. The project will update the 4,950 square foot building with new paint, windows, exterior lighting, landscaping and video surveillance. The conversion does not exceed 10,000 square feet and the proposed retail use will not involve significant amounts of hazardous substances. Through review of the project and project site, none of the exceptions in Section 15300.2 exist and the project may rely on the categorical exemption.
(i) Lead Agency Contact Person: Rachael Lindebrekke, Associate Planner (j) Telephone: 619-258-4100, extension 205

8. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.

9. Has a Notice of Exemption been filed by the public agency approving the project? Yes No

10. Was a public hearing held by the lead agency to consider the exemption? Yes No

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.

CALIFORNIA PLANNING & BUILDING DEPARTMENT
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1. Project Title: Green Reserve Commercial Cannabis Business Permit Retail Application (CAN-001020-2024)

2. Project Applicant: East County Prospect LLC
DBA: Green Reserve
15122 Cross Stone Dr
San Diego, CA 92127
(858) 531-3333

3. Project Location – Identify street
address, cross streets or attach a
map showing project site
(preferably a USGS 15’ or 7 1/2’
topographical map identified by
quadrangle name):

Street address: 10612 Prospect Ave, Santee, CA 92071
APN: 384-260-09-00, 384-260-10-00, 384-260-11-00
Cross streets: Prospect Ave and Tumbleweed Ter
Location Map attached
(a) Project Location – City: Santee
(b) Project Location – County: San Diego

4. Description of nature, purpose, and
beneficiaries of Project:

This project is a Commercial Cannabis Business Permit for the establishment of a retail cannabis business in accordance with the City’s Cannabis Business Permit Ordinance (Santee Municipal Code Chapter 7.04). The retail business would occupy up to 3,500 square feet of existing industrial space within an existing multitenant industrial center. The project will update the suite with new paint, exterior lighting, landscaping and video surveillance. The industrial center is on a 0.37-acre lot located at 10612 Prospect Ave in the Light Industrial (IL) Zone.

5. Name of Public Agency approving
project: City of Santee

Green Reserve
Ilham Polis – Member
15122 Cross Stone Dr
San Diego, CA 92127
(858) 531-3333

7. Exempt status: (check one)
(a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) Not a project.
(c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))

CALIFORNIA PLANNING & BUILDING DEPARTMENT
□
□
□
(d) Categorical
Exemption.

State type and section number:

Class 3. Section 15303 New Construction or Conversion of Small Structures
(e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(f) Statutory Exemption.

State type and section number:
(g) Other. Explanation:
(h) Reason why the project was
exempt:

The project consists of the conversion of up to 3,500 square feet of existing industrial space within an existing multi-tenant industrial center. The industrial center is on a 0.37-acre lot in the IL Zone, in an urbanized area with all necessary public services available to serve the site. The surrounding area is developed with urban uses and would not be considered environmentally sensitive. The project proposes converting a vacant suite (up to 3,500 square feet) within the multi-tenant industrial center, adding additional landscaping, painting and adding exterior lighting. The conversion does not exceed 10,000 square feet and the proposed retail use will not involve significant amounts of hazardous substances. Through review of the project and project site, none of the exceptions in Section 15300.2 exist and the project may rely on the categorical exemption.
(i) Lead Agency Contact Person: Rachael Lindebrekke, Associate Planner (j) Telephone: 619-258-4100, extension 205

8. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.

9. Has a Notice of Exemption been filed by the public agency approving the project? Yes No

10. Was a public hearing held by the lead agency to consider the exemption? Yes No

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.

CALIFORNIA PLANNING & BUILDING DEPARTMENT
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1. Project Title: Flyte Commercial Cannabis Business Permit Retail Application (CAN-001023-2024)

2. Project Applicant: 9805 Prospect, LLC
DBA: Flyte
10109 Challenger Ct
Spring Valley, CA 91978
(619) 750-9499

3. Project Location – Identify street
address, cross streets or attach a
map showing project site
(preferably a USGS 15’ or 7 1/2’
topographical map identified by
quadrangle name):

Street address: 9805 Prospect Ave/8547 Cuyamaca St, Santee, CA 92071
APN: 384-190-74-00
Cross streets: Prospect Avenue and Cuyamaca Street
Location Map attached
(a) Project Location – City: Santee
(b) Project Location – County: San Diego

4. Description of nature, purpose, and
beneficiaries of Project:

This project is a Commercial Cannabis Business Permit for the establishment of a retail cannabis business in accordance with the City’s Cannabis Business Permit Ordinance (Santee Municipal Code Chapter 7.04). The retail business would occupy 2,284 square feet of existing commercial retail space within an existing multitenant shopping center. The project will update the shopping center with new paint, exterior lighting, landscaping, video surveillance and a wall mural. The shopping center is on a 0.71-acre corner lot located at 9805 Prospect Ave/8547 Cuyamaca St in the General Commercial (GC) Zone.

5. Name of Public Agency approving
project: City of Santee

Flyte
Ramiz Naoum – Owner & Chief Executive Officer
10109 Challenger Ct
Spring Valley, CA 91978
(619) 750-9499

7. Exempt status: (check one)
(a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) Not a project.

CALIFORNIA PLANNING & BUILDING DEPARTMENT
□
□
(c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))
(d) Categorical
Exemption.

State type and section number:

Class 3. Section 15303 New Construction or Conversion of Small Structures
(e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(f) Statutory Exemption.

State type and section number:
(g) Other. Explanation:
(h) Reason why the project was
exempt:

The project consists of the conversion of 2,284 square feet of existing retail space within an existing multi-tenant shopping center to a retail cannabis business. The multi-tenant shopping center is located on a 0.71-acre corner lot in the GC Zone, in an urbanized area with all necessary public services available to serve the site.

The surrounding area is developed with urban uses and would not be considered environmentally sensitive. The project proposes converting an existing 2,284 square foot retail suite within the shopping center, adding additional landscaping, painting and adding exterior lighting. The conversion does not exceed 10,000 square feet and the proposed retail use will not involve significant amounts of hazardous substances. Through review of the project and project site, none of the exceptions in Section 15300.2 exist and the project may rely on the categorical exemption.
(i) Lead Agency Contact Person: Rachael Lindebrekke, Associate Planner (j) Telephone: 619-258-4100, extension 205

8. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.

9. Has a Notice of Exemption been filed by the public agency approving the project? Yes No

10. Was a public hearing held by the lead agency to consider the exemption? Yes No

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.

CALIFORNIA PLANNING & BUILDING DEPARTMENT
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Attachment 1

STAFF REPORT

APPROVAL OF ORGANIZATIONAL RESTRUCTURING, SALARY SCHEDULE

AMENDMENTS AND APPROPRIATION OF GENERAL FUND RESERVES TO THE FISCAL YEAR 2025-26 OPERATING BUDGET

CITY COUNCIL MEETING
AUGUST 27, 2025

SUMMARY
Staff recommends that the City Council approve the proposed organizational restructuring plan, and adopt the attached resolution amending the City's Salary Schedule to reflect updates for select director positions and new classifications, and appropriating General Fund Reserves to support implementation in Fiscal Year 2025-26.

The proposed changes aim to streamline City operations, improve internal service delivery, ensure pay equity among department heads, and improve staffing efficiency in key departments. The report also includes a recommendation to convert two part-time Office Assistant positions into a full-time Administrative Secretary position, shared between the Fire and Community Services Departments.

DISCUSSION

1. ORGANIZATIONAL RESTRUCTURING
In response to City Council direction, staff evaluated restructuring opportunities to improve operational efficiency, reduce redundancies, and consolidate key functions. The organizational restructuring plan consists of three primary actions, as originally proposed, now with updated financial details. The following organizational changes are proposed:

A. Transfer of Fleet Maintenance Division from the Fire Department to Community Services/Public Services
This change transfers the City’s Fleet Maintenance Division from the Fire Department to the Community Services/Public Services Department and establishes a new Fleet Supervisor position.

This position will report to the Public Services Manager in the Community Services/Public Services Department and will help streamline departmental functions while relieving the Deputy Fire Chief of non-core administrative duties—allowing the Fire Department to focus more fully on emergency response services.

Benefits:
• Aligns fleet operations with public works and maintenance functions • Reduces administrative burden on the Fire Department
• Centralizes vehicle management under one department
Staff Report -Approval of Organizational Restructuring, Salary Schedule Amendments and Budget Appropriation August 27, 2025
2 FY 2025-26 Budget Impact:
• Fleet Supervisor Salary & Benefits (9 months): $109,590 • One-Time Setup Costs (equipment, workstation, etc.): $11,000 • Uniform/Training/Supplies: $3,660
Total Estimated Cost: $124,250
A transition period of eight to ten months is anticipated to allow for the recruitment and onboarding of the Fleet Supervisor, as well as the phased transfer of operational, administrative, and physical resources. It is anticipated that the Fleet Maintenance Division will be fully operational under the Community Services Department by the start of the next budget cycle (FY 2026–27).

B. Reorganization of the Building Department
As part of the City’s ongoing efforts to establish a full-serve Building Department, strengthen internal capacity and reduce reliance on contract services, staff is proceeding with a phased reorganization of the Building Department. To support this transition, the City recently engaged a retired annuitant to serve as the Interim Building Official, providing leadership, continuity, and expert guidance throughout the restructuring process.

In addition to this temporary appointment, staff proposes the addition of two permanent positions to further support in-house service delivery, a Plans Examiner and Building Inspector.

The costs associated with the new positions will be completely offset by a reduction in the Building Division Expert/Consulting Services budget.

Benefits:
• Improved service consistency and responsiveness
• Long-term cost savings by reducing contract expenditures • Enhanced customer service and turnaround times for permit processing and inspections
FY 2025-26 Budget Impact:
• Plans Examiner Salary & Benefits (9 months): $109,590 • Building Inspector Salary & Benefits (9 months): $87,730 • One-Time Setup Costs (equipment, workstations, etc.): $21,000 • Reduction in Expert Consulting Services: −$218,320
Net Estimated Cost: $0
This reorganization is expected to result in improved service quality and long-term operational efficiencies while keeping ongoing fiscal impacts minimal.

Staff Report -Approval of Organizational Restructuring, Salary Schedule Amendments and Budget Appropriation August 27, 2025
3 C. Reassignment of the Confidential Secretary to the City Manager/City Council to the City Clerk’s Office
This action reassigns the Confidential Secretary currently supporting the City Manager/City Council to the City Clerk’s Office, filling the administrative support gap created by the elimination of the Administrative Secretary position.

Benefits:
• Improved alignment of administrative support for the City Council • Strengthened coordination between Council services and the City Clerk • No net increase in personnel
FY 2025-26 Budget Impact:
• No additional personnel cost (position already funded in existing budget) • One-Time Setup Costs: $10,000
Total Estimated Cost: $10,000

2. SALARY SCHEDULE AMENDMENTS
Staff is recommending the following amendments to the adopted salary schedule:

A. Salary Band Adjustments
Staff is recommending that the adopted salary schedule be amended to reflect salary band adjustments for the Director of Human Resources and Director of Community Services positions to ensure parity with comparable department heads within the City and across San Diego County.

An external salary review of department director positions across 17 San Diego County cities found that most cities place all or most of their department heads within the same salary band.

A corresponding internal review of Santee’s director-level positions identified slight differences among roles with comparable levels of responsibility.

Currently, the Director of Planning and Building and the Director of Engineering share a top salary of $212,635.18, while the Director of Community Services is slightly lower at $212,546.59 (<0.01%), and the Director of Human Resources is lower at $210,103.84 (1.2%). To ensure internal alignment and maintain consistency with regional practices, staff recommends adjusting the salary bands for the Directors of Community Services and Human Resources to match those of Planning and Engineering.

FY 2025-26 Budget Impact:
• Estimated cost for Human Resources Director salary band increase: $3,000 • No budget impact for Community Services salary band increase Staff Report -Approval of Organizational Restructuring, Salary Schedule Amendments and Budget Appropriation August 27, 2025
4 B. New Classifications
The following three new classifications will be added to the adopted salary schedule:
• Fleet Supervisor
• Plans Examiner
• Building Inspector

3. INCREASE NUMBER OF APPROVED BUDGETED POSITIONS
Staff is proposing an increase in the number of approved budgeted positions in the FY 2025- 26 Operating Budget to include the three new positions recommended above as part of the organizational restructuring, and an additional full-time Administrative Secretary position as discussed below.

A. Conversion of Part-Time Office Assistants to Full-Time Administrative Secretary To better support both the Fire Department and Community Services/Public Services Department, staff recommends converting two part-time (20-hour/week) Office Assistant positions into one full-time, benefited Administrative Secretary position. This role would be shared between the departments and provide improved continuity and administrative support.

The approved Fiscal Year 2025-2026 budget allocated funding for one part-time Office Assistant at 20 hours/week to the Public Services Department and one part-time Office Assistant at 20 hours/week to the Fire Department. To better meet the needs of both departments, this budget modification replaces these two part-time positions with one full-time, benefited Administrative Secretary, to be shared between the two departments.

This proposed change will better serve both the Fire Department and the Community Services Department with a full-time employee in the position. The Administrative Secretary position is responsible for a higher level of responsibility than an Office Assistant. The Administrative Secretary would be able to support and back-up existing administrative support in both departments. Additionally, employer studies show that a full-time employee is more likely to reflect greater commitment and stability, consistency in work quality and volume of productivity, and are more suitable for roles that require continuity and work-specific knowledge; reducing turnover and interruption in services externally and support internally.

FY 2025-26 Budget Impact:
• Net additional cost of $67,870 for a new full-time Administrative Secretary position • Budget adjustments include increasing regular salaries and benefits in Public Services and Fire Departments, offset by reducing temporary positions Staff Report -Approval of Organizational Restructuring, Salary Schedule Amendments and Budget Appropriation August 27, 2025
5 RECOMMENDATION
Staff recommends that the City Council approve the proposed organizational restructuring as outlined in this report and adopt the attached resolution amending the adopted Salary Schedule to reflect updated salary bands for the Director of Human Resources and Director of Community Services and to include three new classifications; and authorize the appropriation of $205,120 from General Fund Reserves to the Fiscal Year 2025-26 Operating Budget to implement the reorganization plan and take related actions as detailed in this report.

Attachment 2
RESOLUTION NO. _____
1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTEE,

CALIFORNIA, APPROVING THE ORGANIZATIONAL RESTRUCTURING, AMENDING

THE ADOPTED SALARY SCHEDULE, APPROPRIATING GENERAL FUND RESERVES TO THE FISCAL YEAR 2025-26 OPERATING BUDGET AND TAKING RELATED

ACTIONS
WHEREAS, the City Council directed the Interim City Manager to evaluate options for restructuring City departments to streamline operations, reduce redundancies, and improve service delivery; and
WHEREAS, on July 9, 2025, the Interim City Manager presented recommendations for proposed organizational restructuring; and
WHEREAS, the proposed plan includes personnel changes, salary schedule amendments, and the appropriation of General Fund Reserves to support implementation during Fiscal Year 2025–26; and
WHEREAS, staff recently conducted an internal and external review of department director salaries and found minor inconsistencies with the salary bands for the Director of Human Resources and the Director of Community Services; and WHEREAS, it is recommended that the salary schedule be amended to align the salary bands of the Directors of Human Resources and Community Services with the Directors of Planning and Engineering; and
WHEREAS, it is also recommended that the two part-time Office Assistant positions, one in the Public Services Department and one in the Fire Department, be converted to a full-time benefited Administrative Secretary position to be split between the two departments to better meet the operational needs of both departments; and WHEREAS, the City Council finds it to be in the public interest to adopt the recommended changes to improve internal efficiency, align with best practices, and maintain competitive and equitable compensation for City staff.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Santee, California does hereby find, determine and declare as follows:

Section 1
The City Council hereby approves the reorganizational restructuring plan as outlined in the staff report dated August 27, 2025.

Section 2
The City Council hereby adopts an Amended Salary Schedule as presented in Exhibit “A”, including the following amendments:

Attachment 2
RESOLUTION NO. _____
2 A. Adjustments to the salary band for the Director of Human Resources and the Director of Community Services to align with the salary band of the Director of Planning and Building and Director of Engineering of $157,725.57 to $212,635.18.

B. Addition of new classifications as follows:

1. Fleet Supervisor with an annual salary band of $98,599.44 to $119,848.71

2. Plans Examiner with an annual salary band of $98,599.44 to $119,848.71

3. Building Inspector with an annual salary band of $75,147.10 to $91,341.42 Section 3
The following personnel and staffing changes are hereby authorized by the City Council:

A. Conversion of two part-time Office Assistant positions in the Fire Department and Public Services Department to a budgeted full-time benefited Administrative Secretary position to be shared by the Fire Department and Public Services Department.

B. Increase in the total number of authorized full-time funded positions from 160 to 164 to include the addition of (1) Fleet Supervisor, (1) Plans Examiner, (1) Building Inspector, and (1) Administrative Secretary.

Section 4
The City Council hereby authorizes and appropriates $205,120 from General Fund Reserves to the Fiscal Year 2025-26 Operating Budget to fund the organizational restructuring plan and other staffing and personnel changes as described in this resolution and staff report as follows:

A. Appropriate $124,250 for the transition of Fleet Maintenance to Public Services and hire a Fleet Maintenance Supervisor.

B. Adjust the Building Division operating budget to include salary, benefits and onetime costs for the addition of the Plans Examiner and Building Inspector positions, at a total cost of $218,320, and reduce the Building Division Expert/Consultant Services budget by -$218,320, for a net appropriation of $0.

C. Appropriate $10,000 to the City Clerk’s budget for one-time office and equipment setup costs for the reassignment of the Confidential Secretary.

D. Appropriate $3,000 to the Human Resources Department to cover the additional salary and benefit costs associated with the salary band adjustment for the Director of Human Resources.

E. Appropriate an additional $67,870 split between the Public Services Department and the Fire Department to fund the additional salary and benefit costs associated Attachment 2
RESOLUTION NO. _____
3 with converting the two part-time Office Assistant positions to the full-time benefited Administrative Secretary position.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Santee, California, at a Regular meeting thereof held this 27th day of August, 2025, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

JAMES JEFFRIES, CITY CLERK
EXHIBIT A: Salary Schedule Effective August 27, 2025
Range Classification A B C D E
29 Account Clerk Hourly 26.21 27.52 28.89 30.34 31.86
Annual 54,513.00 57,238.73 60,100.73 63,106.02 66,261.09 35 Administrative Secretary Hourly 30.39 31.91 33.51 35.18 36.94 Annual 63,218.63 66,379.50 69,698.53 73,183.80 76,842.86 Assistant City Clerk Hourly 36.54 to 52.20
Annual 76,003.90 to 108,577.02
Assistant to the City Manager Hourly 69.94 to 99.13
Annual 145,465.73 to 206,197.88
50 Assistant Engineer Hourly 44.02 46.22 48.53 50.96 53.51 Annual 91,559.35 96,137.58 100,944.71 105,991.60 111,291.44 43 Assistant Planner Hourly 37.03 38.88 40.83 42.87 45.01 Annual 77,025.82 80,876.98 84,920.93 89,167.12 93,625.07 58 Associate Civil Engineer / Hourly 53.63 56.31 59.13 62.09 65.19 Associate Traffic Engineer Annual 111,556.03 117,134.32 122,991.37 129,140.74 135,598.07 49 Associate Planner Hourly 42.95 45.09 47.35 49.71 52.20 Annual 89,326.36 93,792.73 98,482.44 103,406.91 108,577.02 33 Building Development Technician I Hourly 28.93 30.38 31.89 33.49 35.16 Annual 60,172.21 63,180.72 66,339.80 69,657.02 73,140.07 35 Building Development Technician II Hourly 30.39 31.91 33.51 35.18 36.94 Annual 63,218.63 66,379.50 69,698.53 73,183.80 76,842.86 42 Building Inspector Hourly 36.13 37.93 39.83 41.82 43.91 Annual 75,147.10 78,904.21 82,849.39 86,992.08 91,341.42 Building Official Hourly 64.25 to 83.83
Annual 133,640.12 to 174,370.03
City Clerk Hourly 53.51 to 74.93
Annual 111,301.96 to 155,850.18
City Engineer Hourly 71.45 to 96.78
Annual 148,621.62 to 201,297.64
City Manager Hourly 126.14 to 126.14
(Single Rate) Annual 262,355.93 to 262,355.93
EFFECTIVE AUGUST 27, 2025

HOURLY, GENERAL AND MANAGEMENT SALARY SCHEDULE

CITY OF SANTEE

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Santee City CouncilAugust 27, 2025

Santee City Council
August 27, 2025