Woodland City Council
October 15, 2024

• Legal notice was published in the Woodland Daily Democrat on October 3, 2024, twelve days prior to the public hearing.
• Notices were mailed to all property owners and tenants within a minimum of 600 feet of the project site on October 4, 2024.
• Pursuant to City of Woodland Municipal Code 17.110.100.D., the site was posted with a highly visible notice, of a minimum four foot by eight foot in size mounted on a freestanding sign or posted on the building frontage, 10 days prior to the scheduled public hearing date on October 15, 2024.

Reviewing Agency Comments
The project has been circulated to other city divisions and departments for review as well as to agencies outside the City of Woodland who have an interest in the application, including Waste Management and Yolo County. All reviewing agency comments have been integrated into the conditions of approval.

Conclusion:

Staff recommends that the City Council: 1) Receive the staff report; 2) Conduct a public hearing; 3) Find that the project is exempt from further environmental review pursuant to Class 1 and Class 32 categorical exemptions under the California Environmental Quality Act (CEQA) and find that the exemptions reflect the independent judgment of the City as lead agency under CEQA; 4) Adopt Resolution No. _____ approving a Conditional Use Permit for a storefront retail cannabis dispensary at 163 Court Street in the City’s Community Commercial Mixed Use zone conditioned upon approval of the appropriate Cannabis Business Permit and the recommended conditions of approval; and 5) Adopt Resolution No. _____approving an Operating Agreement between P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary and the City of Woodland for a cannabis retail business and Cannabis Business Permit located in the City of Woodland.

Prepared by: Anna Canales, Assistant Planner
Reviewed by: Erika Bumgardner, Deputy Director of Community Development

Attachments:

1. Proposed Resolution - Woodland Cannabis Dispensary CUP and Conditions of Approval

2. Proposed Resolution - Woodland Cannabis Dispensary Operating Agreement

3. Operating Agreement_Woodland Cannabis Dispensary

4. Project Application

5. Qualifications of Owners

6. Site Plan

7. Neighborhood Compatibility & Community Relations Plan

8. Odor Control Plan

9. Resolution PC 24-05

10. Public Comments 9.19.24

11. Publication Proof

I

RESOLUTION NO. ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND,

CALIFORNIA APPROVING A CONDITIONAL USE PERMIT FOR A STOREFRONT RETAIL CANNABIS DISPENSARY AT 163 COURT STREET WITHIN THE CITY

COMMUNITY COMMERCIAL MIXED USE ZONE CONDITIONED UPON

APPROVAL OF THE APPROPRIATE CANNABIS BUSINESS PERMIT AND THE

RECOMMENDED CONDITIONS OF APPROVAL
WHEREAS, On June 7, 2022, the City Council approved Ordinance no 1685 and 1686 to amend City Zoning and Municipal Code to enact regulations to allow the consideration and permitting of retail commercial cannabis uses as set forth in Woodland Municipal Code section

17.84.120 which allows for consideration of up to four (4) cannabis retail conditional use permits and Chapter 5.28 of the Municipal Code to incorporate retail commercial cannabis business and operational requirements for Cannabis Business Permits; and WHEREAS, as set forth in Woodland Municipal Code section 17.84.120, proposed cannabis retailers are required to obtain a conditional use permit, subject to the recommendation of the Planning Commission and final approval of the City Council; and WHEREAS, on February 27, 2023, the City issued a request for proposals, inviting interested parties to participate in the selection process for a Preliminary Cannabis Business Permit, which would authorize applicants to apply for a Retail Cannabis Conditional Use Permit and enter into Operating Agreement negotiations to establish a commercial cannabis business, and requiring that applications be submitted in person by 3:00 pm on April 5, 2023; and WHEREAS, the City received a total of 12 proposals in response to the request for applications; and
WHEREAS, a Proposal Review Committee was formed, consisting of staff members from the Police, Finance, and Community Development Departments, as well as a representative from HdL, a consultant retained by the City for their subject matter expertise, to conduct a competitive selection process; and
WHEREAS, after an initial review of the proposals, the Proposal Review Committee met in July 2023 to interview 12 proposal teams for the Preliminary Cannabis Business Permit and subsequently awarded Preliminary Cannabis Business Permits to the top four applicants, making them eligible to apply for a Retail Cannabis Conditional Use Permit; and WHEREAS, as required by the City of Woodland Municipal Code, the Proposal Review Committee gave particular consideration to each proposal's capacity, capitalization, security measures, and history, as well as the community benefits offered by the proposed commercial cannabis business, and also considered any other factors deemed necessary by the City to maintain and promote public health, safety, and general welfare; and WHEREAS, the Proposal Review Committee ranked P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary as 2 out of 12, with a score of 95%; and

Resolution No. ___

WHEREAS, the City of Woodland City Council hereby finds that the proposed cannabis retailer use to be located at 163 Court Street (“Site”), as set forth in Planning Application No. PLNG 24-00029 submitted by business applicant P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary (“Applicant”), conforms to the requirements and intent of Chapter 17.84.120 of the Woodland Zoning Code regarding commercial cannabis uses and the City General Plan, and further that, under the circumstances of the particular case, the use will not constitute a nuisance or be detrimental to the public welfare of the community; and WHEREAS, On September 19, 2024, the Planning Commission held a duly noticed public hearing concerning the proposed cannabis retailer use to be located at 163 Court Street as set forth in Planning Application No. PLNG 24-00029. After the hearing, the Planning Commission recommended 5 to 0 (two absences) City Council approve the Conditional Use Permit and Operating Agreement for Retail Commercial Cannabis land use as proposed; and WHEREAS, the project is exempt from further environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 Categorical Exemption, Existing Facilities) and CEQA Guidelines Section 15332 (Class 32 Categorical Exemption, Infill Development), as the City Council of the City of Woodland finds as follows:
• The project consists of minor alterations for interior tenant improvements to operate a cannabis business that requires specific spaces to conform with state and local regulations. • The project is located on a site that is less than 5 acres and will not have any biological, air, water, traffic, or noise impacts; and
WHEREAS, a public notice describing the proposed cannabis conditional use permit was published in the Woodland Daily Democrat, a newspaper of general circulation, and mailed to property owners and property tenants within 600 feet of the project site; and, a highly visible site posting of four (4) feet by eight (8) feet was posted in a visible location on the project site for ten (10) days before the City Council public hearing date; and WHEREAS, the City Council held a duly-noticed public hearing on October 15, 2024, as required by law to consider all of the information presented by staff and public testimony presented in writing and at the meeting.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Woodland, based on facts in the staff report, written and oral testimony, and exhibits presented, approves a Conditional Use Permit for a cannabis retail use located at 163 Court Street, as set forth in Planning Application No. PLNG 24-00029, prepared by P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary based on the following findings:

SECTION 1. Recitals. The City of Woodland City Council hereby adopts the above recitals as true and correct findings of the City of Woodland City Council and incorporates them into this Resolution by this reference.

SECTION 2. Findings. In support of issuing a conditional use permit for the proposed

Resolution No. ___

cannabis retailer use to be located at 163 Court Street, as set forth in Planning Application No. PLNG 24-00029, the City of Woodland City Council hereby makes the following additional findings, pursuant to the requirements of Woodland Municipal Code (“WMC”) Section 17.100.100(H) and

17.84.120(c)(3):
1) The proposed use is consistent with the General Plan and Zoning Code, in that the use is conditionally permitted consistent with zoning and general plan requirements, and appropriate conditions to address potential concerns and impacts have been made part of the approval.
2) The site is physically suitable for the type, density, intensity of the use being proposed, including access, utilities, and the absence of physical constraints. 3) The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and future land uses in the vicinity including transportation and service facilities.
4) Granting the Conditional Use Permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located.
5) The proposed project is categorically exempt from further environmental review pursuant to CEQA sections 15301 and 15303 as the proposal involves operation, repair, maintenance, leasing and licensing of existing facilities, and involves the conversion of a small structure not exceeding 2,500 square feet where retail cannabis dispensing is a conditionally permitted use.
6) The proposed use at the Site is subject to additional findings and considerations set forth in WMC section 17.84.120(3). The City of Woodland City Council has considered all relevant evidence regarding the Site and the Applicant’s proposed use, and finds that Applicant’s proposed cannabis retailer use at the Site satisfies those considerations, as follows:
a) Pursuant to WMC section 17.84.120(3)(a), the City of Woodland City Council has considered the type of proposed use by the Applicant. The proposed cannabis retailer will provide sales of cannabis and cannabis products. The City of Woodland City Council finds that these goods and services will provide unique, currently unavailable, and varied goods and services to the community by the Applicant’s use at the proposed location.
b) Pursuant to WMC section 17.84.120(3)(b), the City of Woodland City Council has considered all evidence and testimony relevant to the Applicant’s proposed use, and determines that the proposed use will not be detrimental to the health, safety and welfare of the community. The use is located in the Community Commercial Mixed Use zone and not adjacent to sensitive uses; and therefore will not result in negative impacts on existing uses in the area. The project is subject to approval of a

Resolution No. ___

conditional use permit, including conditions of approval incorporated into the project, and subject to local and state regulatory standards, licenses and permits, to ensure that the use will not be detrimental to the health, safety and welfare of the community. Applicant’s failure to abide by those conditions of approval may result in permit revocation.
c) Pursuant to WMC section 17.84.120(C)(3)(c), the City of Woodland City Council finds that the proposed use would enhance the economic viability of the area in which it is proposed to be located because it will provide new goods and services not currently available to the surrounding area and will bring retail activity to the proposed location.
d) Pursuant to WMC section 17.84.120(C)(3)(d), the City of Woodland City Council finds that the Applicant has adequately addressed the potential community benefits of the use to offset potential adverse impacts. The City of Woodland City Council has determined that these community benefits adequately offset any potential adverse impacts of the proposed use.
e) Pursuant to WMC section 17.84.120(C)(3)(e), the City of Woodland City Council has considered all evidence and testimony pertaining to Applicant’s proposed use, including the extent of support or opposition to the proposed use and location from members of the community.
f) Pursuant to WMC section 17.84.120(C)(3)(f), the City of Woodland City Council further finds that, based on other proposed locations considered concurrently with the Site, there will be no more than two (2) cannabis retailers located within a one thousand (1,000) radius of the Site at the time of this Resolution, except otherwise approved by City Council, which protects against an overconcentration of the type of proposed use and further protects the public health and safety. g) Pursuant to WMC section 17.84.120(C)(3)(g), and consistent with the above findings, the City of Woodland City Council further finds that the proposed use would not lead to a further overconcentration of that particular type of premises in the area.
h) Pursuant to WMC section 17.84.120(C)(3)(h), the City of Woodland City Council has considered the Applicant’s application, including the relevant background and history of the Applicant. Based on the information provided, the City of Woodland City Council has determined that there are no prior problems or complaints pertaining to Applicant’s operation of other businesses or cannabis operations on premises giving rise to public health, safety, and welfare concerns. The applicant has additionally operated retail cannabis businesses in other jurisdictions with no known problems or complaints.
i) Pursuant to WMC section 17.84.120(C)(3)(i), the City of Woodland City Council is not aware of a history or high prevalence of police or crime-related problems in the area of the Site giving rise to specific safety concerns.

Resolution No. ___

j) Pursuant to WMC section 17.84.120(C)(3)(j), the City of Woodland City Council finds that the proposed use would enhance recreational or entertainment opportunities in the area.

In light of the above findings and considerations regarding the proposed use and location, the City of Woodland City Council therefore finds that the conditional use conforms to the requirements and intent of WMC Chapter 17.84.120 regarding commercial cannabis uses and the City’s General Plan, and that any conditions and requirements stipulated in Applicant’s conditional use permit have been or will be met, and that the use will not constitute a nuisance or be detrimental to the public welfare of the community. These findings are further established and incorporated into the project approval, attached hereto as Exhibit “A” and incorporated herein by reference.

SECTION 3. Approval. In accordance with the City of Woodland City Council findings stated in Section 2 and Exhibit A of this Resolution, the City of Woodland City Council hereby approves Planning Application Number PLNG 24-00029 for the issuance of a Retail Cannabis Conditional Use Permit to P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary for the proposed cannabis retailer use at 163 Court Street. The recommended approval and issuance of the conditional use permit is expressly conditioned on Applicant’s continued compliance with all of the findings and conditions of approval specified in Applicant’s conditional use permit, Article

17.84.120 of the Woodland Zoning Code, Chapter 5.28 of the Woodland Municipal Code, and all other applicable local and state laws and regulations pertaining to commercial cannabis retailers.

Nothing in this Resolution shall be deemed to waive the City’s right to revoke Applicant’s conditional use permit in the event Applicant violates any of the aforementioned conditions.

PASSED AND ADOPTED, by the City Council of the City of Woodland at a regular meeting of the City Council held on the 15th day of October 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Tania Garcia-Cadena, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________ _______________________________ Sarah Lansburgh, City Clerk Ethan Walsh, City Attorney

Resolution No. ___

EXHIBIT A
Conditions of Approval
PLNG 24- 00029
Address: 163 Court Street
Cannabis Business: P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary Conditions of Approval
General Conditions

1. Approval. Planning Application # PLNG 24-00029, submitted by Applicant P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary for the proposed cannabis business “Woodland Cannabis Dispensary” is approved to permit retail sales of cannabis and cannabis products, and, in a building size of approximately 3,512 square feet located at 163 Court Street and with hours of operation of Monday – Sunday 9 am – 9 pm.

2. Substantial Conformance. The use shall be implemented in substantial conformance with the Conditional Use Permit (Planning Application: PLNG 24-00029) as approved by the City Council, and subject to all applicable provisions of Woodland Municipal Code Section 5.28, Commercial Cannabis Business Permits, and Section 7.84.120, Commercial Cannabis Businesses, except as modified herein.

Prior to issuance of a Cannabis Business Permit and, if applicable, Certificate of Occupancy, all conditions of approval and required improvements shall be completed to the satisfaction of the city.

Changes in the use or an increase in the intensity or size of operation may require approval of a new use permit or a modification to the existing use permit.

3. Regulatory Permit. The approval of the Conditional Use Permit and commencement of business operations shall be contingent upon the applicant submitting a Cannabis Business Permit application and all of the materials and documentation required by Woodland Municipal Code Chapter 5.28.180, Applications for Cannabis Business Permits, to the Community Development Director for review and approval. Applicants shall obtain and maintain at all times a valid Cannabis Business Permit including approval of an Operating Agreement, prior to occupancy of the building and continuing at all times that the business is in operation, including payment of all required fees for application review. The Cannabis Business Permit shall be timely renewed and maintained in accordance with the applicable procedures set forth in Woodland Municipal Code Chapter 5.28 as a condition of continuing the retailer use under the approved conditional use permit.

All requirements, terms and conditions of the Cannabis Business Permit, Operating Agreement, and applicable state license(s) shall be considered conditions of this conditional use permit. Failure to comply with all applicable state and local laws and ordinances, the Cannabis Business Permit, Operating Agreement, and/or applicable state license(s) shall be deemed a violation of the conditional use permit and may result in revocation of the use permit.

4. Indemnification. The applicant shall defend, indemnify, and hold harmless the City of Woodland, its agents, officers or employees from any claim, action or proceeding against the City or its agents, officers or employees to attack, set aside, void or annul an approval of the subject application by the City, its

Resolution No. ___

legislative body, advisory agencies or administrative officers. The City will promptly notify the applicant of any such claim, action or proceeding against the City and the applicant will either, at the City's discretion, undertake defense of the matter and pay the City's associated legal costs, or will advance funds to pay for defense of the matter by the City Attorney.

5. Other Permits and Licenses. The applicant shall obtain all other permits and licenses required by the City for the use, including a Cannabis Business Permit pursuant to Woodland Municipal Code Chapter

5.28, and any other City permits required for retail cannabis uses prior to occupancy of the building and operation of the business, and shall pay all required fees in the amount currently established as applicable, or in the amount to be adopted by City Council. All cannabis businesses must, prior to establishing and operating any such cannabis business, obtain and maintain at all times a valid license issued by the State, as may be applicable, and any other applicable local or regulatory licenses.

6. Building and Fire Requirements. Prior to occupancy and/or issuance of a Cannabis Business Permit, applicant shall comply with all applicable Building and Fire requirements to the satisfaction of the Building Official and the Fire Marshall. The applicant shall obtain all necessary and appropriate permits for the project prior to occupancy, including but not limited to building and encroachment permits, and pay all required fees.

7. Runs with the Land. The terms and conditions of approval of the conditional use permit shall run with the land, and shall be binding upon and be to the benefit of the heirs, legal representatives, successors, and assignees of the property owner. Where a conditional use has abandoned the site or has ceased activity for a period of six (6) months, expressly including due to the failure to obtain or maintain other necessary regulatory licenses and permits to operate the business, the approved conditional use permit may be subject to revocation for non-use. Under these circumstances, and if such non-use results in revocation of the conditional use, a new application for a conditional use permit must be processed per the requirements of the City's then-existing zoning ordinance.

8. Permit Expiration. The Conditional Use Permit must be exercised within one year of issuance, or it shall be deemed null and void by act of law (Woodland Municipal Code Section 17.96.130, Expiration and Extension). A permit for use of a building or a property is exercised when a valid City business license, Cannabis Business Permit, and all necessary permits have been issued, and the permitted use has commenced on the site in accordance with applicable conditions of approval contained herein.

9. Other Applicable Requirements. The project approval is subject to all applicable requirements of the Federal, State, City of Woodland and any other affected governmental agencies. Approval of this request shall not waive compliance with all sections of the Municipal Code, all other applicable Federal, State and City Ordinances, and applicable Community or Specific Plans or Design Guidelines in effect at the time of building permit issuance. The duty of inquiry as to such requirements shall be upon the applicant.

10. Compliance with Conditions. Prior to any use of the project site, all Conditions of Approval shall be completed to the satisfaction of the Community Development, Police, and Fire Departments. In the event that any of the conditions of this permit are not satisfied, the Community Development Director may request a public hearing be set before the Planning Commission to determine whether the Conditional Use Permit should be revoked. Additionally, upon showing of a compelling public necessity demonstrated at a noticed public hearing, the City of Woodland, acting through the appropriate entity, may add, amend, or delete conditions of this permit.

Resolution No. ___

11. Violations. Upon receipt of a Cannabis Business Permit the applicant shall be subject to provisions relating to violations contained in Municipal Code Section 5.28.090, or as may be amended.

12. Environmental Recording Fee. Applicant shall provide the Community Development Department with a check for the sum of $50 made out to Yolo County to record the CEQA environmental document (Notice of Exemption) with the County.

13. Applicant’s Responsibility to Inform. The applicant shall be responsible for informing all subcontractors, consultants engineers, or other business entities providing services related to the project of their responsibilities to comply with all pertinent requirements herein in the City of Woodland Municipal Code, including the requirement that a business license be obtained by all entities doing business in the City as well as hours of operation requirements in the City.

Planning Conditions

16. Education. The cannabis retailer shall provide information or disclaimers to all customers regarding the effects of cannabis consumption and legal consequences of consumption or possession under federal law, in a form approved by the City.

17. Parking. The project shall provide and maintain the number of on-site parking spaces consistent with the requirements of Section 17.68 of the Woodland Municipal Code, based on gross square footage of retail use, consistent with City standards unless otherwise approved by the Community Development Director.

18. Bicycle Parking. The project shall provide bicycle parking, consistent with the requirements of Section

17.68.070 of the Woodland Municipal Code. The location of the racks and locking mechanism details shall be subject to review and approval by the Community Development Department prior to issuance of permits. Bicycle parking shall be installed prior to occupancy.

19. Signage. Signage shall require a Sign Permit subject to approval by the Community Development Department in compliance with Woodland Municipal Code Section 17.100.140, Sign Permits – Permanent Signs, and may require a Building permit prior to installation.,

20. Trash Maintenance. The site shall be kept free of trash or debris at all times. Graffiti or any other type of vandalism shall be removed or otherwise remediated within 72 hours of occurrence.

21. Landscape. Prior to operation, all existing landscape planter areas shall be replanted and maintained per City Standards. Vegetative matter shall cover no less than 75% of the required landscape area unless otherwise approved by the Community Development Director. Maintenance shall include but is not limited to watering, fertilizing, weeding, cleaning, pruning, trimming, spraying and cultivation.

22. A storefront cannabis dispensary permittee shall not allow cannabis, cannabis products, or cannabis accessories on the dispensary site to be visible from the public right of way, the unsecured areas surrounding the buildings on the site, or the site’s main entrance and lobby.

23. No storefront cannabis dispensary shall grow or cultivate cannabis, except for immature nursery stock cannabis plants, on the dispensary site.

Building Conditions

Resolution No. ___

The following comments are from the City of Woodland Building Division and are applicable to the referenced project:

24. This project must meet all criteria and mandates for these City adopted codes or the most current code:

A. 2022 California Building Code
B. 2022 California Plumbing Code
C. 2022 California Mechanical Code
D. 2022 California Electrical Code
E. 2022 Building Energy Efficiency Standards
F. 2022 California Green Building Code
G. The Code of the City of Woodland

25. Other City and County Agencies (Health, Fire, Public Works, and Planning) may be required to approve the project prior to a building permit being issued.

Recycle plan is required at time of permit issuance along with a $1000 deposit.

Prior to any demolition work being performed, clearance from Yolo Solano Air Quality Management District is required.

26. Any deferred submittals that are not a part of the initial permit application must be listed on the cover sheet of the plan at the time of application for the project.

27. All plans, computations and specifications to be prepared and designed by an architect or engineer licensed by the state of California.

28. A licensed architect or licensed engineer shall be responsible for reviewing and coordinating all submittal documents prepared by others, including deferred submittal items, for compatibility with the design of the building.

Fire Conditions
The following comments are from the City of Woodland Fire Department and are applicable to the referenced project:

29. Project Condition. Prior to permit approval to install gates or barriers: The installation of perimeter fencing, gates, or obstacles that obstruct fire apparatus access roads shall require a separate plan submittal, review, and approval by the Woodland Fire Department prior to installation.

30. Advisory: An operational permit for a Cannabis dispensary will be required. The permit(s) will cost $342.00 and be billed at the time of the fire inspection.

31. Advisory: Addressing and suite numbers shall be readily visible, contrasting in color to the background.

32. Project Condition. Prior to permit approval: Tennant improvement plans shall be submitted to the City of Woodland Building and Fire Department for review and approval due to the interior remodel of the space.

33. Advisory: Please be aware that, at a minimum or as applicable, the following items will be inspected, tested, or reviewed at the time of inspection.

Resolution No. ___

• Existing exit signs and emergency lighting shall be in good working order and capable of supplying illumination for not less than 90 mins. Testing records are required. Test to be conducted at fire inspection.
• New and existing fire extinguishers shall be current and labeled with a State Fire Marshalapproved service label. • Existing exits, exit doors, and door hardware are not obstructed, are in good working order, and shall meet the minimum requirements of the CFC.
• Housekeeping shall be orderly, and storage shall be stored in an approved manner per the CFC.
• All electrical and cords shall comply with the CFC.
• All electrical panels shall have a minimum 36-inch clearance before the panel. • Verify that the address and suite numbers are visible from the assigned street. • Verify fire lanes are marked.
• Verify all landscaping is three feet away from fire department equipment. • Verify that fire department equipment is painted, marked, labeled, and secured as applicable.
• Existing walls and ceilings are free from holes that would lead to fire extension. • Verify Knox Box keys.

Police Conditions
The following comments are from the City of Woodland Police Department and are applicable to the referenced project:

34. Security personnel shall be on site twenty-four hours a day or alternative security as authorized by the city manager or his/her designee(s), and must have a verified response security patrol when closed.

Security personnel must be licensed by the state of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager or his/her designee (s), with such approval not to be unreasonably withheld. Firearms may be carried by security personnel while they are on duty if authorized by the chief of police.

35. Security Plan. Prior to issuance of a Business Cannabis Permit, applicant shall submit a final Security Plan and Lighting Plan pursuant to Woodland Municipal Code Section 5.28.260, Cannabis Business Site Security, for review and approval by the Police Chief and Community Development Director. Photometric data may be required to indicate that parking and public areas are equipped with one (1) foot-candle of minimum maintained illumination per square foot of parking surface to include the entire paved area or public/employee exterior access ways. Photometric data must also confirm the absence of “hot spots” or areas of ten (10) foot-candle of illumination per square foot or more.

Engineering and Public Works Conditions
The following comments are from the City of Woodland Engineering Division and Public Works Department and are applicable to the referenced project:

General Conditions

36. The existing water service shall be backflowed per City Standards/Details.

RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WOODLAND, CALIFORNIA APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN OPERATING AGREEMENT WITH P.F.F.

CONSULTING INC., DBA WOODLAND CANNABIS DISPENSARY,

FOR A CANNABIS RETAIL FACILITY LOCATED AT
163 COURT STREET, WOODLAND, CA 95695
WHEREAS, the applicant P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary, submitted a Conditional Use Permit application to operate a Retail Cannabis Facility (“Cannabis Business”) in a building size of approximately 3,512 square feet located at 163 Court Street and with hours of operation of Monday – Sunday 9 am – 9 pm; and WHEREAS, the City Council, following a Planning Commission recommendation to approve the use, approved granting a Conditional Use Permit to the Cannabis Business to conduct commercial cannabis activities at the Subject Property, subject to conditions of approval and contingent on issuance of a cannabis business permit, state license(s) and execution of an Operating Agreement; and
WHEREAS, Woodland Municipal Code Chapter 5.28 provides that the City shall enter into an Operating Agreement and Indemnification, in conjunction with the issuance of a Cannabis Business Permit, in which the Cannabis Business agrees to abide by the requirements of the Municipal Code and any other operating terms and conditions as mutually agreed by the parties; and
WHEREAS, the City Council of the City of Woodland has determined that there may be both community benefit and potential adverse impacts that may result from the operation of cannabis businesses in the City, and therefore desires to ensure all such impacts are adequately mitigated and offset through the requirement for community benefits the businesses provide to the City and its residents; and
WHEREAS, the Cannabis Business and the City have mutually agreed to certain minimum payments or actions to the City of Woodland to provide for community support projects, programs, and other services and activities that will positively contribute to the community and minimize any adverse impacts or increases in need for services caused by the operation of the Cannabis Business in the community; and
WHEREAS, the proposed Operating Agreement additionally addresses other mutually agreeable terms and conditions regarding operation of the Cannabis Business, including minimum insurance requirements, security procedures, and indemnification.

NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Woodland hereby resolves as. follows:

1. The City Council adopts the findings above as true and correct.

2. The City Council hereby approves of an Operating Agreement between the City and

P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary generally consistent with the terms and conditions provided in the Operating Agreement attached hereto as Attachment 1.

3. The City Manager, or his or her designee, is authorized to execute an Operating Agreement in substantially the form provided in Attachment 1, subject to any minor, technical, non-substantive or necessary changes approved by the City Attorney, and any other supporting documents necessary to execute the Operating Agreement. The City Attorney is hereby authorized to make clarifying and confirming changes to the Agreement, provided the total payment amount under the Agreement does not change.

4. The Operating Agreement shall be executed prior to issuance of a Cannabis Business Permit.

PASSED AND ADOPTED, by the City Council of the City of Woodland at a regular meeting of the City Council held on the 15th day of October, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Tania Garcia-Cadena, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________ _______________________________ Sarah Lansburgh, City Clerk Ethan Walsh, City Attorney

Exhibit 1
[Operating Agreement]

1 OPERATING AGREEMENT FOR A CANNABIS RETAIL BUSINESS AND

PRELIMINARY CANNABIS BUSINESS PERMIT

LOCATED IN THE CITY OF WOODLAND
P.F.F. CONSULTING INC., DBA WOODLAND CANNABIS DISPENSARY 163 COURT STREET, WOODLAND CA 95695
This Operating Agreement for a Cannabis Business (hereinafter “Agreement”), dated ____, 2024, (“Effective Date”), is entered into by and between the City of Woodland (the “City”), a California municipal corporation, and P.F.F. Consulting Inc., dba Woodland Cannabis Dispensary, a cannabis retail facility (“Cannabis Business”). The City and Cannabis Business may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
WHEREAS, On June 21, 2022, the City Council of the City of Woodland approved Ordinance Nos. 1685 and 1686 to allow consideration for up to four retail cannabis businesses within the City of Woodland.

WHEREAS, on February 27, 2023, the City of Woodland opened a competitive application review process for preliminary cannabis business permit applications, which closed on April 5, 2023. A total of 12 Preliminary Cannabis Business Permit applications were received.

WHEREAS, after conducting a complete, thorough, and objective review in consideration of all applications, the four top scoring applications were selected to continue through the final application review process, including the approval of an operating agreement to memorialize the requirements as provided for in the regulations governing commercial cannabis retail permits, Chapter 17..84.120 and 5.28 of the Woodland Municipal code, as well as statements and agreements provided in the application materials and as part of the interview process; and WHEREAS, Cannabis Business is one of the four top scoring applicants and has applied for and received a Conditional Use Permit concurrently with the approval of this Agreement for the operation of a retail cannabis business at 163 Court Street, Woodland California, as more specifically described in Exhibit “A”, attached hereto and incorporated herein by this reference (the “Subject Property”).

WHEREAS, Section 5.28.180(A)(9) of the Woodland Municipal Code provides that the City shall enter into an Operating Agreement and Indemnification, in conjunction with the issuance of a Cannabis Business Permit, in which the Cannabis Business agrees to abide by the requirements of the Municipal Code and any other operating terms and conditions as mutually agreed by the parties; and
WHEREAS, the City Council of the City of Woodland has determined that there may be both community benefit and potential adverse impacts that may result from the operation of cannabis businesses in the City, and therefore desires to ensure all such impacts are adequately mitigated and offset through the requirement for community benefits the businesses provide to the City and its residents; and

2 WHEREAS, the Cannabis Business and the City have mutually agreed to certain minimum payments or actions to the City of Woodland to provide for community support projects, programs, and other services and activities that will positively contribute to the community and minimize any adverse impacts or increases in need for services caused by the operation of the Cannabis Business in the community.

NOW, THEREFORE, in consideration of the mutual promises, conditions, and covenants set forth herein, the Parties agree as follows:

AGREEMENT

1. Incorporation of Recitals. The Recitals, and all defined terms set forth in this Agreement, are hereby incorporated into this Agreement as if set forth herein in full.

2. Definitions. The following terms shall have the following meanings for purposes of this Agreement, but other terms may be defined elsewhere in this Agreement.

A. “Assignment” means: (i) a sale, exchange or other transfer of this Agreement, the Cannabis Business’s rights hereunder, or substantially all of the Cannabis Business’s assets dedicated to operation of the retail cannabis business under this Agreement to a third party; (ii) a sale, exchange or other transfer of thirty (30) percent or more of the outstanding common stock of the Cannabis Business; (iii) any reorganization, consolidation, merger re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Cannabis Business or any of its shareholders is a party which results in a change of ownership or control of thirty (30) percent or more of the value or voting rights in the stock of Cannabis Business; and (iv) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, provided that the effect of such occurrence is to change control of Company or responsibility for this Agreement to an entity that is not controlled by Company’s ultimate parent entity (as defined on the Effective Date of this Agreement in 16 CFR § 801.1(a)(3)).

B. “Cannabis business permit” means the regulatory permit issued by the City to the Cannabis Business pursuant to the provisions of Chapter 5.28 of the Woodland Municipal Code.

C. Cannabis retailer” means a premises permanently located in the City licensed by the State of California pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code Section 26000 et seq., as may be amended, where cannabis is provided for retail sale to consumers, including an establishment that delivers cannabis as part of a retail sale, as permitted by Chapter 17.84.120 of the Woodland Municipal Code.

D. “City” means the City of Woodland.

E. “City Permits” means all building permits, conditional use permits, zoning amendments, operating agreements, and other permits, including the Cannabis

3 Business Permit, licenses, entitlements, and agreements that the City, acting in its governmental capacity, must issue or approve for the Cannabis Business to operate in accordance with this Agreement.

F. “Commencement Date” means the date that all of the following have occurred: (1) the City has issued all necessary City Permits; (2) the Cannabis Business has obtained all necessary State Licenses to operate; and (3) the Cannabis Business has obtained a certificate of occupancy.

G. “Community Development Director” means the Community Development Director and his or her designee.

H. “Conditional Use Permit” means the conditional use permit issued by the City to the Cannabis Business pursuant to Chapter 17.100.100 of the Woodland Municipal Code.

I. “Effective Date” means the date first entered above as the Effective Date that both Parties have signed this Agreement.

J. “Gross Receipts” means the total amount actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in “gross receipts” shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, all cost of materials used, labor or service costs, interest paid or losses or other expenses. The following shall not be included in the definition of “Gross Receipts: (1) Cash discounts allowed and taken on sales; (2) Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit; and (3) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded.

K. “Manager” means a person with responsibility and authority over the establishment, management, supervision, or oversight of the operation of the Cannabis Business.

L. “State License” means all licenses required to be issued by the State of California for operation of the Cannabis Business pursuant to Division 10 of the Business and Professions Code and applicable state regulations, including Division 42 of Title 16, Division 8 of Title 3, and Division 1 of Title 17 of the California Code of Regulations, as those provisions may be amended.

M. “Subject Property” means that certain property located at 163 Court Street, Woodland California, as more specifically described in Exhibit “A”, attached hereto an incorporated herein by this reference, which is the location of the Cannabis Business’s retail cannabis business.

N. “Term” means the period of time this Agreement is in effect, and any renewal periods, as specified in Section 3.

4 3. Term of Agreement. The Term of this Agreement shall commence on the Effective Date and continue for a period of two (2) years therefrom (“Initial Term”), unless earlier terminated as specified in this Agreement. Prior to the expiration of the Initial Term and any subsequent Renewal Period, the Parties may mutually agree to extend the Term of this Agreement for up to two (2) additional two-year (2-year) terms to run consecutively (each a “Renewal Period”).

4. General Terms and Conditions. The Cannabis Business shall comply with all of the following terms and conditions for the Term of this Agreement:

A. This Agreement is only valid for the Cannabis Business at the Subject Property identified in this Agreement. An assignment of this Agreement or any interest herein by the Cannabis Business is not permitted unless consented to in advance in writing by the City, which consent may be conditioned, granted or withheld in City’s sole and absolute discretion.

B. The applicant shall apply for and receive approval for a final Cannabis Business Permit and all other required City permits, such as building permits, including receipt of a Certificate of Occupancy,prior to commencement of operations. i. Submission of Complete Tenant Improvement Plans: The applicant shall submit a complete submittal to the City Building Division for all applicable tenant improvements within three (3) months following the Effective Date of this agreement. The submission must include all necessary documentation, plans, and approvals required by the City to ensure compliance with applicable codes and regulations.
ii. Commencement of Construction: All construction related to the applicable building permits must commence within six (6) months of the Effective Date of this agreement. Failure to meet these timelines will result in the termination of the Operating Agreement.

C. Any conditions placed on the Cannabis Business Permit and the Conditional Use Permit are hereby incorporated as conditions of this Agreement. Violations of the Cannabis Business Permit, the Conditional Use Permit and/or applicable State Licenses shall be deemed violations of this Agreement and shall constitute a material breach of this Agreement.

D. The applicant shall commence operation of the cannabis business within 12 months of the approval date of the CUP consistent with Section 17.96.130 of the Woodland Municipal Code, or the City will withdraw the preliminary business permit award and this agreement shall be null and void.

E. The Cannabis Business shall obtain and maintain at all times a valid Cannabis Business Permit, Conditional Use Permit, and applicable State License(s) prior to and during operation of the Cannabis Business.
i. As soon as practicable, the Cannabis Business shall inform the City when it obtains its necessary State License(s), and shall provide a copy of the State

5 License(s) to the Community Development Director. The City shall cooperate with the Cannabis Business as appropriate and as needed to facilitate the State’s issuance of a State License(s) to the Cannabis Business. ii. The City shall diligently process the Cannabis Business’s applications for all City Permits. This Agreement does not commit the City in advance to approve the City Permits; nor does this Agreement constrain the City’s discretion to determine compliance with all requirements regarding issuance of any City Permits. Nothing in this Agreement relieves the Cannabis Business of the obligation to comply with all requirements and application procedures set forth in Chapter 5.28 and Section 17.84.120 of the Woodland Municipal Code.

F. The Cannabis Business understands, acknowledges and agrees to comply with all applicable then-existing state and local laws and regulations applicable to operation of the Cannabis Business, including Chapter 5.28 of the Woodland Municipal Code.

5. Operational Requirements. In addition to all operating requirements set forth in Article IV of Chapter 5.28 of the Woodland Municipal Code, the Cannabis Business shall comply with the following specific operational requirements:

A. The Cannabis Business shall immediately notify the City Police Department of any criminal activity, or suspected criminal activity, occurring at the Subject Property. In the event of any internal security system breach, including a faulty alarm system, broken or damaged surveillance cameras or other video recording equipment, or broken or damaged locks, doors, or lighting which may increase risk of criminal activity at the Subject Property, the Manager of the Cannabis Business shall notify the City Police Department as soon as practicable after becoming aware of the security system breach.

The Cannabis Business shall diligently attempt to fix or resolve any such security breach immediately; if circumstances require additional time and delay to remedy, the Cannabis Business shall so notify City police and provide an estimated timeline the breach will be cured.

B. If the Cannabis Business receives any criminal threats, or otherwise suspects any criminal targeting related to movement of product or cash from or to the Subject Property, the Cannabis Business shall immediately notify the City Police Department.

C. The City’s Chief of Police, or his or her designee, may perform site inspections of the Cannabis Business during hours of operation, upon reasonable notice. The scope of the inspection shall be to ensure compliance with all conditions on the Cannabis Business, including compliance with state rules and regulations, such as but not limited to, track and trace requirements, product storage, labeling, and disposal of product, as well as accounting, ledgers for distribution, and other records and operating procedures. Upon reasonable notice by the City, the Cannabis Business shall provide proof, including through visual observation and confirmation by City staff, of any storage, disposal or distribution of product as may be necessary to ensure business compliance. Should the City discover any evidence of falsification of records or other practices inconsistent with City or State requirements, the Cannabis Business shall, upon written notice from

6 the City, immediately cease and desist operations until such time that the issues have been resolved, to the satisfaction of the City, in accordance with state and local regulations.

6. Consideration. As consideration for the rights and benefits it enjoys under this Agreement, including its operation of approved cannabis uses in the City during the Term, the Cannabis Business shall do all of the following:

A. Tax Payment. The cannabis business shall pay the required ten (10%) percent tax as required per Woodland Municipal Code Chapter 3.36, Cannabis Business Tax. i. Monthly Payments shall be calculated per calendar month, due and payable on the 15th day of the subsequent calendar month in accordance with Woodland Municipal Code Section 3.36(B). By way of example only, a Monthly Payment for the month of September would be calculated from September 1 through September 30, due and payable on October 15. ii. If a Monthly Payment is not paid in full within fifteen (15) days after it is due and payable, penalties and interest shall accrue as set forth in Woodland Municipal Code Section 3.36.100.
iii. Monthly Payments shall be made to the City’s Finance Department. In the event the Cannabis Business intends to pay a Monthly Payment in cash in an amount that exceeds $5,000, the Cannabis Business shall notify the City in advance to make prior arrangements.
iv. Accompanying the Monthly Payment, the Cannabis Business shall deliver to the City a report (“the Monthly Report”) showing (1) Gross Receipts of the Cannabis Business for the immediate prior month; 2) a cumulative total of all amounts of Gross Receipts received by the Cannabis Business to date for the calendar year, (3) a calculation of the Monthly Payment currently due to the City; and (4) a calculation of the cumulative total of all Monthly Payments made to the City to date for the calendar year.

B. Community Benefits Plan. Pursuant to Section 5.28.180 (A)(6)(b), Exhibit “B” to this agreement, Community Benefit Plan, which is attached hereto and incorporated into this Agreement by this reference, describes the benefits the cannabis business has provided or will provide to the local community including direct aid, participation in, and commitment to funding the work of local nonprofits, community, civic, or social service based organizations, as well as the development of public outreach and education program related to risks of youth and drugs, and any other agreed upon community benefit between the City and applicant. The Cannabis business shall comply with and implement that Community Benefit Plan as a requirement of this Agreement.
i. Each year, at the time of the annual Cannabis Business Permit review, the Cannabis business shall submit a Community Benefits Plan Summary Report in which all activities in support of local community organizations

7 or events as outlined in the Community Benefit Plan (Exhibit “B”), including the Community Benefit Payment, shall be identified, including the community service hours provided by the cannabis business (inclusive of staff service volunteer hours) in the year, and the Cannabis Business shall provide to City or its designee all appropriate receipts, payment verification and any other documentation requested by City as deemed necessary by City in its discretion to verify the Cannabis business’s compliance with the Community Benefit Plan.

C. Social Policy and Local Enterprise Plan. Pursuant to Section 5.28.180(A)(6)(c), Exhibit “C” to this Agreement describes the Cannabis Business’s Social Policy and Local Enterprise Plan.
i. Each year, at the time of the annual Cannabis Business Permit review, the Cannabis Business shall submit an updated Social Responsibility and Local Enterprise Plan in which the employee benefits, workforce development actions, local hiring practices, and minimum employee wage paid are identified for the prior year.
i. Minimum agreed upon hourly wage (living wage). The Cannabis Business hereby agrees to provide a minimum hourly working wage in the amount of $20 for remainder of the calendar year following the Effective Date of this Agreement. The wages for employees of the Cannabis Business shall increase at the same rate as the state minimum wage.

D. Cannabis Business agrees to abide by the requirements of Chapter 5.28 of the Woodland Municipal Code and any other operating terms and conditions as mutually agreed by the parties to ensure that the social policy and local enterprise plan commitments and community benefits derived from the proposed cannabis business adequately address potential adverse impacts stemming from the operation of the Cannabis Business.

E. Records. The Cannabis Business shall keep accurate and adequate records and documentation to reflect its monthly gross receipts and information concerning required payments. Pursuant to section 5.28.340 of the Woodland Municipal Code, the Cannabis Business shall maintain all such records for at least three (3) years, and shall produce those records to the City within 24 hours after receipt of the City’s request.

7. Termination. The City and/or Cannabis Business may terminate this Agreement prior to expiration of the Term for the reasons and subject to the requirements set forth below. The Cannabis Business understands and acknowledges that the right to operate the Cannabis Business is expressly contingent on full execution of an Operating Agreement, as required by section

5.28.180(A)(9) of the Woodland Municipal Code. As such, termination of this Agreement shall

8 result in the immediate termination of the Cannabis Business’s operations, unless and until a new Operating Agreement is executed by the Parties
A. City’s Termination Rights. Without prejudice to its other remedies at law or in equity, the City may terminate this Agreement, at any time and in its sole discretion, effective thirty (30) days after the City provides written notice of termination to the Cannabis Business, if any of the following circumstances occurs:
i. The Cannabis Business breaches its obligation to pay the Monthly Payments of the Cannabis business tax when due and fails to cure the breach within thirty (30) days after the City provides the Cannabis Business with a written notice of default.
ii. The Cannabis Business breaches its obligation to perform in accordance with any material provision of this Agreement, other than the obligation to pay the Monthly Payment, and: (A) does not cure the breach within thirty (30) days after the City provides the Cannabis Business with a written notice of breach or, if the breach cannot reasonably be cured within 30 days, (B) does not begin work to cure the breach within thirty (30) days after the City provides the Cannabis Business with a written notice of breach. The Parties may mutually agree in writing to extend the time period to cure the breach. The express designation in this Agreement of a provision as “material” does not imply that other provisions are not material.
iii. The Cannabis Business fails to obtain and maintain at all times prior to and during operation of the Cannabis Business a valid Cannabis Business Permit and State License(s), or violates any condition of approval of the Conditional Use Permit.
iv. The uses and business activities of the Cannabis Business are declared unlawful by order of Court, or become illegal by operation of State law.

B. Cannabis Business’s Termination Rights. The Cannabis Business may, at any time and in its sole discretion, effective thirty (30) days after the Cannabis Business provides written notice of termination to the City, may terminate this Agreement if the Cannabis Business has permanently ceased operations, or intends to cease operations within thirty (30) days, in the City of Woodland.

8. Release & Indemnification. The Cannabis Business shall release and hold harmless the City, its agents, officers, elected officials, staff and employees (collectively, “City Parties”) from any and all claims, injuries, damages, or liabilities of any kind arising from: (i) any repeal or amendment of Chapter 5.28 of the Woodland Municipal Code, or any provision of the Zoning Code relating to the Cannabis Business, and (ii) any arrest or prosecution of the Cannabis Business or its owners, Managers, staff, employees, or members for violation of state or federal laws. The Cannabis Business shall further defend, indemnify and hold harmless the City Parties from and against any and all claims or actions: (i) brought by adjacent or nearby property owners or any other parties for any damages, injuries, or other liabilities of any kind arising from or related to the

9 Cannabis Business operations at the Subject Property, and (ii) brought by any party for any problems, injuries, damages, or other liabilities of any kind, including bodily injury, death or property damage, arising out of the distribution of cannabis or cannabis products at the Subject Property. The obligations in this Section 8 Release & Indemnification shall survive any expiration or termination of this Agreement.

9. Insurance.

A. Time for Compliance. The Cannabis Business shall not begin operations until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. Failure to provide and maintain all required insurance shall constitute a material breach of this Agreement.

B. Types of Required Coverages. Without limiting the indemnity provisions of this Agreement, the Cannabis Business shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance:
i. Commercial General Liability. Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence.

Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions limiting coverage for (1) products and completed operations; (2) contractual liability; (3) third party action over claims; or (4) cross liability exclusion for claims or suits by one insured against another.
ii. Automobile Liability. Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1) with minimum limits of $1,000,000 each accident. iii. Workers’ Compensation. Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.

If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.

C. Endorsements.
i. The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability shall be endorsed to provide the following:
a. Additional Insured. The City’s indemnified parties shall be additional insureds with regard to liability and defense of suits or claims arising

10 out of the performance of the Agreement. Additional Insured Endorsements shall not (1) be restricted to “ongoing operations”; (2) exclude “contractual liability”; (3) restrict coverage to “sole” liability of Consultant; or (4) contain any other exclusions contrary to the Agreement.
b. Primary Insurance and Non-Contributing Insurance. This insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance.
c. Severability. In the event of one insured, whether named or additional, incurs liability to any other of the insureds, whether named or additional, the policy shall cover the insured against whom claim is or may be made in the same manner as if separate policies had been issued to each insured, except that the limits of insurance shall not be increased thereby.
d. Cancellation. The policy shall not be canceled or the coverage suspended, voided, reduced or allowed to expire until a thirty (30) day prior written notice of cancellation has been served upon the City except ten (10) days prior written notice shall be allowed for non-payment of premium.
e. Duties. Any failure by the named insured to comply with reporting provisions of the policy or breaches or violations of warranties shall not affect coverage provided to the indemnified parties.
f. Applicability. That the coverage provided therein shall apply to the obligations assumed by the Cannabis Business under the indemnity provisions of this Agreement, unless the policy or policies contain a blanket form of contractual liability coverage.
ii. The policy or policies of insurance required by this section for Workers’ Compensation shall be endorsed, as follows:
a. Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City’s indemnified parties. b. Cancellation. The policy shall not be canceled or the coverage suspended, voided, reduced or allowed to expire until a thirty (30) day prior written notice of cancellation has been served upon the City except ten (10) days prior written notice shall be allowed for non-payment of premium.

D. Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City’s indemnified parties in the same manner and to the

11 same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

E. Evidence of Insurance. The Cannabis Business shall, concurrently with execution of this Agreement or as soon thereafter as may be authorized by the City, deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, the Cannabis Business shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

F. Failure to Maintain Coverage. The Cannabis Business agrees to suspend and cease all operations hereunder during such period of time if the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City.

G. Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

H. Insurance for Subcontractors. All subcontractors shall be included as additional insureds under the Cannabis Business’s policies, or the Cannabis Business shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of this Agreement, including adding the City as an Additional Insured.

10. Notice. Any notice or other communication provided pursuant to this Agreement must be in writing and shall be considered properly given and effective only when mailed or delivered in the manner provided by this Section 11 to the persons identified below. A mailed notice or other communication shall be considered given and effective on the third day after it is deposited in the United States Mail (certified mail and return receipt requested). A notice or other communication sent in any other manner will be effective or will be considered properly given when actually delivered. A Party may change its address for these purposes by giving written notice of the change to the other Party in the manner provided in this Section 11.

If to the City:

City of Woodland
City Manager’s Office
300 First Street
If to Cannabis Business:

12 Woodland, California 95695
Attention: Ken Hiatt

11. Force Majeure.

A. “Force Majeure Event” means a cause of delay that is not the fault of the Party who is required to perform under this Agreement and is beyond that Party’s reasonable control, including the elements (such as floods, earthquakes, windstorms, and unusually severe weather), fire, energy shortages or rationing, riots, acts of terrorism, war or war-defense conditions, acts of any public enemy, epidemics, the actions or inactions of any governmental entity (excluding the City) or that entity’s agents, litigation, labor shortages (including shortages caused by strikes or walkouts), and materials shortages.

B. Except as otherwise expressly provided in this Agreement, if the performance of any act required by this Agreement to be performed by either the City or Cannabis Business is prevented or delayed because of a Force Majeure Event, then the time for performance shall be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused.

12. Waiver. A Party’s failure to insist on strict performance of this Agreement or to exercise any right or remedy upon the other Party’s breach of this Agreement shall not constitute a waiver of any performance, right, or remedy. A Party’s waiver of the other Party’s breach of any provision in this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or any other provision. A waiver is binding only if set forth in writing and signed by the waiving Party.

13. Relationship of Parties. This Agreement does not create any employment relationship, ownership interest, or other association between the City and Cannabis Business. Nothing herein shall be construed to create the relationship of principal and agent, partnership or other joint venture between the City and Cannabis Business.

14. Attorneys’ Fees. The Party prevailing in any litigation concerning this Agreement, the Subject Property, or the Cannabis Business operations, shall be entitled to an award by the court of reasonable attorneys’ fees and litigation costs. If the City is the prevailing party, then this Section shall apply whether the City is represented in the litigation by the designated City Attorney or by outside counsel.

15. Severability. If a court with jurisdiction finds any provision of this Agreement to be invalid, void, or unenforceable, then the remaining provisions shall remain in full force and effect, and to this end this Agreement shall be severable.

16. Counterparts. The parties may execute this Agreement in counterparts, each of which shall constitute an original, but all of which shall collectively constitute this same Agreement.

17. Integration and Modification. This Agreement sets forth the Parties’ entire understanding and agreement regarding the matters addressed herein. This Agreement supersedes all prior or contemporaneous agreements, representations, and negotiations (written, oral, express, or implied) and may be modified only by written agreement signed by both Parties.

13 (Signature Page Follows)

IN WITNESS WHEREOF, the parties enter into this Agreement as of the date first set forth on this Agreement.

City of Woodland
By: _________________________
Ken Hiatt, City Manager
Dated: __________, 2024
Approved as to Form
Woodland City Attorney
By: ____________________________
Ethan Walsh, City Attorney
Cannabis Business:

P.F.F. Consulting Inc. dba Woodland
Cannabis Dispensary
By: _________________________
Dated: __________, 2024
By: _____________________
Dated: __________, 2024

EXHIBIT “A”

DESCRIPTION OF SUBJECT PROPERTY

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

WOODLAND, COUNTY OF YOLO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL ONE:

COMMENCING AT A POINT ON THE NORTH LINE OF COURT STREET AT A POINT 200.75 FEET WEST OF A POINT WHERE THE WEST LINE OF CLEVELAND

STREET INTERSECTS THE NORTH LINE OF COURT STREET IN THE CITY OF

WOODLAND, COUNTY OF YOLO, STATE OF CALIFORNIA, RUNNING THENCE NORTH 159 FEET TO AN ALLEY, THENCE WEST 55.5 FEET, TO THE NORTHEAST CORNER OF PROPERTY CONVEYED TO EMMA C. COLLIER, BY DEED RECORDED MAY 23, 1955, IN BOOK 454 OF OFFICIAL RECORDS, AT PAGE 203; THENCE SOUTH ALONG THE EAST LINE OF SAID COLLIER PROPERTY, 159.00 FEET TO THE NORTH LINE OF SAID COURT STREET; THENCE EAST 55.5 FEET

TO THE PLACE OF BEGINNING, AND BEING THE SAME PARCEL OF LAND CONVEYED TO A. DAHLER BY TWO SEPARATE DEEDS, RECORDED MARCH 12, 1886, IN BOOK 40, PAGE 78 OF DEEDS, IN THE OFFICE OF THE COUNTY OF YOLO; AND RECORDED APRIL 10, 1905, IN BOOK 66, PAGE 46 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF YOLO.

PARCEL TWO:

BEGINNING AT A POINT ON COURT STREET, WEST OF CLEVELAND STREET IN

SAID CITY OF WOODLAND, WHERE THE EAST LINE OF A LOT NOW OR

FORMERLY OWNED BY HENRY DAHLER, ET AL, INTERSECTS THE NORTH LINE OF COURT, (THIS POINT IS ALSO IDENTIFIED AS BEING 200.75 FEET

WEST OF THE WEST LINE OF CLEVELAND STREET) AND RUNNING THENCE

NORTH ALONG THE EAST LINE OF SAID DAHLER LOT ONE HUNDRED SIXTY (160) FEET, MORE OR LESS, TO A TWENTY (20) FOOT ALLEY; THENCE EAST ALONG THE SOUTH LINE OF SAID ALLEY, FIFTY-FIVE (55) FEET, MORE OR

LESS, TO THE NORTHEAST CORNER OF THE LOT CONVEYED BY MAGGIE REARDON TO D.A. RALLS BY DEED DATED NOVEMBER 29, 1909, AND RECORDED NOVEMBER 30, 1909, IN BOOK 74 OF DEEDS, PAGE 102;

THENCE SOUTH ALONG THE WEST LINE OF LOT OWNED BY RALLS ONE HUNDRED SIXTY (160) FEET MORE OR LESS TO THE NORTH LINE OF COURT STREET; THENCE WEST ALONG THE NORTH LINE OF COURT STREET FIFTYFIVE (55) FEET, MORE OR LESS, TO THE PLACE OF BEGINNING.

APN: 005-562-023-000

EXHIBIT “B”

COMMUNITY BENEFIT PLAN
Community Benefit Payment
Woodland Cannabis Dispensary commits to donating 2% of the company's annual business gross receipts to local 501(c)(3) non-profit(s)that are active in the City of Woodland.

Event Sponsorships
WCD commits to providing support and education to the community through sponsorships and educational booths and would like to sponsor at least one event per year and have an educational booth at the event. The cost of sponsorship will vary according to the event. Including but not limited to the Farmers' markets, Woodland's Annual Tomato Festival, Yolo Farm to Fork, Dinners on Main, Woodland Holiday Parade, Fall Harvest Fest, Christmas Tree Lighting, Craft is Art Christmas Fair, Woodland's First Friday, The Honey Festival, The Almond Festival, Woodland Chamber of Commerce events, Woodland Rotary events, and Golf tournaments.

Big Days of Giving
In addition to the 2% of the company's annual business gross receipts, WCD will provide 5% of net profits to a local charity one day a year called the Big Day of Giving. WCD commits to advertising Big Days of Giving through social media, website and in house signs to ensure customers/members are informed of the best days to shop to contribute to the community.

Adopt-A-Highway Program
WCD has committed to maintaining the stretch of roadside on Highway 5 heading North between E Kentucky Ave. and East St. exits through the Caltrans Adopt-A-Highway Program.

WCD has contracted with an Adopt-A-Highway approved vendor to maintain the beautification of this area.

Meals on Wheels Program
Yolo County Meals on Wheels is closed for 10 holidays each year. On those days, they provide a sack lunch (delivered the day before along with a regular hot meal) to their home delivery clients so they don't miss a meal. WCD has committed to being a sponsor of one of these 10 holidays by providing donations that help to provide a more substantial meal with extra nutrition, such as additional protein, a carton of eggnog, fresh fruit, and a treat. The donation would include items for special occasions like flags for the 4th of July, to make the meal special for the holiday.

Volunteer Services: Hours of Commitment
As part of the Community Benefit Plan to the City of Woodland, WCD commits to providing paid time for employees who want to volunteer for local charities and events. 8 hours per month will be provided for full time employees and 4 hours per month for part time employees.

WCD will provide an in-house employment position for a Community Outreach Coordinator.

The Community Outreach Coordinator will coordinate with local charities and the Chamber of Commerce to ensure that WCD employees are volunteering effectively.

EXHIBIT “C”

SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
Local Hiring
Upon the start of operations, Woodland Cannabis Dispensary intends to hire 10 employees from the City of Woodland, 10 of which will be full-time. With the growth of business, Woodland Cannabis Dispensary anticipates hiring up to 25 employees.

WCD is committed to hiring 100% Woodland and Yolo County residents, and is committed to creating a diverse environment in terms of age, race, ethnicity, national origin, gender, and socioeconomic status.

Employee Wages and Compensation
WCD is committed to providing a living wage to all employees, with starting wages ranging from $20 to $40 per hour depending on position and experience, and is committed to granting raises after a 90-day probationary, educational, and training period, with additional raises possible on an annual basis, upon promotion, or based on performance. WCD is committed to offering bonus incentive programs, including an annual monetary holiday bonus based on tenure and additional bonuses or gift certificates for exceptional performance. The company is committed to providing staff with regular paid meals on busy days and holidays, as well as winter and summer company parties. As part of the Community Benefit Plan, WCD is committed to providing paid time for employees to volunteer for local charities and events, up to 8 hours per month for full-time employees and 4 hours per month for part-time employees.

Continuing Education
WCD is committed to providing employees with paid continuing education, including weekly education, field trips, guest speakers, and online training. WCD is also committed to staying updated on cannabis science, therapeutic uses, and safe consumption. WCD will provide lectures on cannabis updates, products, research, and industry standards, and is also committed to offering outside continuing education options, including industry conferences and online courses from platforms such as Healer.com, AmericansForSafeAccess.com, GreenFlowerMedia.com, and ProjectCBD.com.

WCD is committed to promoting from within through the Ownership Incubator Program ("OIP"). The company is committed to supporting employees' professional growth and offering opportunities to found their own cannabis ventures.

P.F.F. Consulting, Inc.
dba: Woodland Cannabis Dispensary (WCD)
Community Relations and Neighborhood Compatibility Plan WCD’s goal is to maintain a symbiotic relationship with neighboring businesses and the residents of the community. The ownership team has already begun making introductions and sharing information about WCD with neighboring businesses and residents, providing contact information and encouraging them to contact WCD directly if concerns arise. WCD will be an active member of the Neighborhood Watch program and will partake in neighborhood meetings to keep the company up to date on community issues.

Community Introductory Letter
Neighborhood outreach is WCD’s primary method to seek community input. WCD has already taken the walk through the community within 600 feet of the premise and introduced the team to establish open lines of communication and build a foundation for great community relations. WCD invited neighbors to planned open houses and informed neighbors that they were available for questions and communication at any time. During neighborhood canvassing, WCD did not receive any negative reactions or comments related to the application for a commercial retail cannabis business at the location. In contrast, WCD received a great deal of positive feedback. In an effort to continue fostering these relationships, WCD prepared a Neighborhood Introductory Letter, which we will continue to distribute throughout the community to ensure neighbors know that they are available for any questions or concerns.

Open Houses
WCD has already held three successful Open Houses in 2021 and 2022 and is planning for a few more in 2023. These Open Houses were advertised in the Daily Democrat 12 as well as by the WCD team walking
the neighborhood and handing out Introduction letters to our neighbors within 600 feet of our location.

WCD believes that by providing an open line of communication with our neighbors we will be able to address their concerns proactively as we provide them with a better understanding of how we can have a positive impact on the community. WCD has found that providing transparency and an open forum for the community to meet the operators and tour the facility often eliminates concerns and encourages positive communication. Providing a space where our neighbors can see firsthand the education, professionalism, and security features of the facility has been a very positive experience. WCD will continue ongoing open houses after opening, along with other events, on an annual basis or as needed to ensure all concerns from our neighbors or the community are being heard and addressed. WCD will encourage its neighbors and community to bring to WCD’s attention any concerns they may have about WCD’s operations, procedures, or customers/member’s behavior. WCD considers feedback crucial to its success in the community, and the WCD team is committed to promptly resolving any community concerns.
2 https://www.dailydemocrat.com/2022/04/15/woodland-cannabis-collective-holds-open-house/ 1 https://www.dailydemocrat.com/2022/09/28/woodland-cannabis-collective-to-host-dispensary-open-house-friday/

P.F.F. Consulting, Inc.
dba: Woodland Cannabis Dispensary (WCD)
Community Relations and Neighborhood Compatibility Plan Membership Guidelines
WCD’s first line of defense in nuisance mitigation is prevention. The Membership Guidelines are a set of guidelines that the company’s staff, customers/members, vendors, contractors, and visitors must follow at all times. These guidelines outline the importance of responsible and safe cannabis use, as well as the expectations of WCD customers/members with regard to behavior in and around the establishment.

Many adverse impacts can be prevented by establishing clear rules and procedures that deter negative actions. All persons will agree to follow the guidelines when they join the Woodland Cannabis Dispensary. If a person does not follow the Membership Guidelines, they will lose their membership access to the facility.

Signage Plan
In an effort to prevent undesirable behaviors that may lead to neighborhood complaints, WCD will provide signage throughout the premises displaying the most important rules. WCD will provide the following signage in accordance with our Security Plan, City of Woodland, and State of California Cannabis Regulations. Each sign described below will be at least eight inches by 10 inches in size and will be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the business site. "Juveniles are Prohibited from Entering this Site." “Smoking, Ingesting, or Otherwise Consuming Cannabis on this Site Or within 50 feet of this Site is Prohibited.” "The sale or diversion of cannabis or cannabis products without a permit issued by the City of Woodland is a violation of State law and the Woodland City Code." "Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest." "Patrons must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance." "Warning: the use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery." “Video Surveillance and Camera Recording System is in Operation 24/7.”
Security
WCD will employ uniformed Private Patrol Security Officers licensed by the Bureau of Security and Investigative Services to ensure that customers/members, employees, and visitors, as well as the facility, neighbors, and parking lot, remain safe and secure. The presence of security is an added benefit to the neighborhood, which WCD is happy to provide. Onsite security will monitor the video surveillance system capturing the building interior, perimeter, and all surrounding parking lot areas, including the back alley, to ensure all Membership Guidelines city and State regulations are being followed at all times.

If and when need be, the PPSOs will be trained and capable of enforcing all rules and regulations.

Security cameras have been helpful to many neighbors who have been in need of surveillance for different types of incidents that do not involve the dispensaries. WCD will provide video footage of any incident when appropriate which in turn has a positive impact on neighbor relations and builds a trusting relationship in the community.

CONFIDENTIAL AND PROPRIETARY
1

P.F.F. Consulting, Inc.
dba: Woodland Cannabis Dispensary (WCD)
Community Relations and Neighborhood Compatibility Plan Proactive Complaint Response
WCD will take all complaints seriously and will work to resolve issues in a prompt, thorough, and respectful manner. Initial and annual employee training(s) will include guidance on the importance of positive and respectful neighbor relations. All staff will be trained to report all noise, lighting, odor, litter, loitering, traffic or any other complaints to management immediately.

Noise
WCD’s retail environment is similar to an office. The music played in the lobby and point of sales area is always kept at a low volume so that conversations can easily be heard. Per WCD Membership Guidelines, WCD asks all customers/members to be kind and respectful to staff, other patrons, the premises, neighboring businesses, and residences. WCD understands that noise pollution impedes the tranquility of the community, and WCD will proactively address potential issues by limiting noise from customers/members and addressing expectations with all potential customers/members.

Light
WCD will ensure that security lighting will not be a nuisance to our neighbors or pollution to our skies by selecting proper light fixtures with the ability to direct light downwards rather than up or out. A portion of WCD’s exterior lighting will be motion-sensitive. This guarantees there is no light intrusion on the neighbors. Windows will be tinted to prevent interior light from escaping to ensure that the lights are not invasive to neighbors. WCD's proposed location is fortunate to be in a stand alone building with a private parking lot, a large amount of lighting, and on a street that is lit up in the evening and night-time hours. This will give the neighbors, pedestrians, and customers/members a sense of security.

Odor
As required by state regulations, all products will arrive at the licensed retail premises in tamper-evident child-resistant packaging. The packaging prevents odor from becoming a nuisance at retail storefront locations. WCD will not package any cannabis products onsite and will only remove the product from a package when it is deemed cannabis waste. All cannabis waste will be kept in a smell-proof sealed container. WCD will use carbon and HEPA air filters in the HVAC system to eliminate any potential residual odors in and outside of the building. Furthermore, backup portable air purifiers with carbon and HEPA filtration will assist in keeping any odor contained within the licensed premises. WCD will utilize HEPA active carbon air filtration and negative pressure airflow. This system, coupled with staff training on odor control and mitigation practices, will work effectively and efficiently to neutralize odor.

Public Consumption
Consumption of cannabis will not be allowed nor tolerated on or near the premises in compliance with the City of Woodlands ordinance. This rule is included in WCD’s Membership Guidelines that all new customers/members must agree to. As part of the company’s prevention procedures will be to post signs prominently at each entrance with a clear and legible notice consistent with the City of Woodland’s ordinance: “Smoking, Ingesting, or Otherwise Consuming Cannabis on this Site Or within 50 feet of this Site is Prohibited.” Security guards will be monitoring the entire site via 24/7 video surveillance. When a person is seen on camera violating this rule, he or she will lose their rights at Woodland Cannabis Dispensary.

CONFIDENTIAL AND PROPRIETARY
2

P.F.F. Consulting, Inc.
dba: Woodland Cannabis Dispensary (WCD)
Community Relations and Neighborhood Compatibility Plan Loitering
Loitering will not be permitted on the premises of WCD. The company’s Membership Guidelines and Signage will provide the rules to follow. "Patrons must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance." Security cameras, monitored by PPSOs and company managers, will be active during operating hours, and both parties will be available to kindly enforce the rules if necessary.

Litter
WCD is dedicated to the preservation and beautification of its location and its neighboring properties.

Therefore, the WCD team has committed the staff to provide daily community walks in which WCD will pick up litter and assess the surrounding neighborhood for signs of loitering and graffiti. WCD gladly accepts the responsibility to ensure a safe and secure environment as well as upkeep and improve the grounds, the facility and the surrounding neighborhood. WCD Membership Guidelines prohibit littering and require customers/members to dispose of trash in proper receptacles. WCD will place trash and recycling receptacles in conspicuous locations to help promote proper waste management. WCD’s company waste and recycling dumpsters will be kept locked at all times. No cannabis waste will be disposed of in the dumpster. Instead, cannabis waste will be held in the product storage room in a sealed box until a cannabis waste company compliantly transports waste away from the premises.

Vehicle and Pedestrian Traffic
WCD expects foot and vehicle traffic in the neighborhood to increase with the addition of our business.

The premises include a large parking lot with 20 private parking spaces with 1 ADA space available. Along the street are three additional spaces directly in front of the building on Court Street and seven additional spaces across the street. To keep parking readily available and reduce traffic, WCD will encourage customers/members to utilize our “Express Order'' program. Customers/Members can order online or over the phone to expedite their visit to WCD, thus reducing traffic congestion. WCD uniformed Private Proprietary Security Officer (P.P.S.O.) will monitor security cameras in the parking lot to identify any parking or traffic issues and address them immediately.

Responsible Party for Community Outreach and Communication WCD has appointed Chief Executive Officer and owner Laura Mendez as the company’s Community Liaison and 24/7 contact for concerns and complaints. The Community Liaison will be available to address any questions, concerns, or complaints from residents and neighboring businesses via phone, email, or in person, twenty-four hours a day, seven days a week and will be onsite during operating hours Monday through Friday.

WCD will display on the front door the name, cell phone number, and email address of the Community Liaison for ease of access for neighbors, interested parties, the city, and law enforcement. The Community Liaison will also be available to the Woodland City Manager and Woodland Police Department at all times to address any issues related to WCD.

The Community Liaison will have access to the video cameras on their phone and computer to be able to view the premises at all times. The Community Liaison will perform a daily review of call and email complaint logs to ensure that all complaints have been addressed promptly and that WCD’s operations

CONFIDENTIAL AND PROPRIETARY
3

P.F.F. Consulting, Inc.
dba: Woodland Cannabis Dispensary (WCD)
Community Relations and Neighborhood Compatibility Plan do not have adverse effects on the surrounding community. Annual Community Impact reports will be presented and reviewed by the board and available for the City to review.

Conclusion
Woodland Cannabis Dispensary is committed to being an asset to the neighboring community and to the City of Woodland. WCD will adhere to strict standards provided by the City of Woodland, Yolo County, and the State of California to ensure that the business operations are safe, professional, and complimentary to the neighborhood. WCD plans to promptly address any community concerns to ensure that the business is not a nuisance. WCD values the community and seeks to proactively communicate with the neighbors and address issues before they arise to the level of a complaint. WCD looks forward to the opportunity to demonstrate its compatibility with the neighborhood and to bring a sense of safety to a vacant building. WCD will continue its efforts to build a relationship by being involved in any neighboring issues and participating in solutions.

CONFIDENTIAL AND PROPRIETARY
4

P.F.F. Consulting, Inc.
dba: Woodland Cannabis Dispensary (WCD)
Odor Control Plan
WCD will consistently ensure air quality and temperature by monitoring the HVAC and odor mitigation systems. WCD will stay current on any new odor-eliminating products and update them as necessary to maintain the safest, most effective odor-filtration system. WCD is dedicated to staying in compliance with the City’s regulations requiring that odor shall not be detected outside of the facility, anywhere on adjacent property or public rights-of-way, or around the exterior of the premises. WCD will update our HVAC air duct system, which will include an exhaust air filtration system with odor control that prevents internal odors from being emitted externally and an air system that creates negative air pressure between the commercial cannabis business’ interior and exterior so that any odors generated inside the facility are not detectable. This system utilizes active carbon and HEPA filters to reduce all associated odors. The temperature in the building where products are kept will be set at 70 degrees to keep the product fresh and minimize any odor. All cannabis products, apart from those on display in cases on the sales floor, will be stored in a limited-access safe room in the back of the building. Doors at the premises will be self-closing to aid in odor containment and for added security precautions. During shipment intake, vendors will enter through a secure back door and then enter a receiving room, where WCD will complete the product intake process. This receiving room has no windows or breezeways, so will not allow any odor to escape.

Potential Sources of Odor
WCD will not perform any packaging or processing of cannabis onsite. As required by state regulations, all products will arrive at WCD in pre-sealed packaging, thereby reducing any associated odor. We will not allow smoking or vaping on the premises and will request that all members keep their purchased product sealed until after they have departed from the premises. WCD does not foresee potential odor from pre-packaged products becoming a nuisance. WCD will not cultivate, manufacture, or package cannabis, so there is no odor risk from raw or unpackaged products.

Odor Control Devices and Techniques
WCD will employ the highest quality carbon and HEPA filtration within the HVAC system, as well as portable backup carbon filters in the areas of the facility that have the highest potential for odor breach.

All appropriate ventilation and filtration systems will be designed and installed to control noxious odors and prevent detection of odors from cannabis outside the premises. Active carbon filters are efficient in the removal of volatile organic compounds and odors. Such filters are excellent for use in commercial and industrial high efficiency systems. By maintaining negative pressure with frequent exhaust, air naturally flows into rather than out of the area, decreasing the risk of odors being emitted to adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public. All air filtration systems will comply with California Fire and Mechanical Codes.

System Maintenance
WCD will contract with a licensed, local HVAC professional to upgrade and maintain the filtration system.

WCD will implement regular scheduled maintenance of our air filtration system every three months. We will replace the active carbon filters every month. Any malfunctions will be documented and addressed promptly. Repair and maintenance activities will be carried out by a licensed, local HVAC specialist, with the exception of filter replacement, which will be performed by a manager. All maintenance will be logged with the date and a manager’s initials and kept on file. Managers will evaluate this system regularly to ensure that it is properly running at all times.

CONFIDENTIAL AND PROPRIETARY
1

TO: THE MEMBERS OF THE PLANNING COMMISSION
AGENDA: City Council Regular Meeting
DATE: October 15, 2024
ITEM #: I.11
SUBJECT: Sundial Collective Retail Cannabis Conditional Use Permit Recommendation for Action: Staff recommends that the City Council: 1) Receive the staff report; 2) Conduct a public hearing; 3) Find that the project is exempt from further environmental review pursuant to Class 1 and Class 32 categorical exemptions under the California Environmental Quality Act (CEQA) and find that the exemptions reflect the independent judgment of the City as lead agency under CEQA; 4) Adopt Resolution No. _____ approving a Conditional Use Permit for a storefront retail cannabis dispensary at 3 Court Street in the City’s Community Commercial Mixed Use zone conditioned upon approval of the appropriate Cannabis Business Permit and the recommended conditions of approval; and 5) Adopt Resolution No. _____approving an Operating Agreement between Sundial Collective Woodland, LLC and the City of Woodland for a cannabis retail business and Cannabis Business Permit located in the City of Woodland.

Staff Contact:

Anna Canales, Assistant Planner, [email protected] Fiscal Impact:

Application Processing Costs. The project applicant covers all costs associated with processing the subject Conditional Use Permit application and related Operating Agreement through an Advanced Funding Agreement. Similarly, the selection process for all applicants was covered through individual funding agreements.

The City collects two types of revenue associated with cannabis businesses outside the specific Conditional Use Permit application processing costs noted above. Those include Permit fees and Cannabis Tax.

Permit Revenue. When a new business applies for a Cannabis Business Permit, contingent in this case on approval of a Conditional Use Permit and Operating Agreement, the City will collect $50,056 to allow for staff to review and process the application. This includes site visits by both Community Development and Police staff. Thereafter, businesses are responsible for requesting a renewal of the permit on an annual basis and subject to a renewal fee of $21,222. The permit renewal fee pays for program oversight, business plan review by the Community Development Department, Police site visits and Police compliance, accounting and an annual financial audit. The City does not make revenue above the cost of service on these fees and is legally only allowed to charge the City’s cost of doing business. New Cannabis Business Permit and renewal fees adjust annually based on CPI.

Cannabis Tax. In November 2022, Woodland voters approved a local tax on cannabis businesses that would help to fund general city services. Retail cannabis businesses are subject to a 10 percent tax based on gross receipts. It is difficult to estimate the future potential cannabis tax revenue that may be realized from cannabis retail sales as it will depend upon the success of the business. At minimum, assuming a similar realized revenue generation as existing commercial cannabis manufacturing, distribution and testing businesses, it is estimated that the city will see additional annual revenue from the four retail cannabis businesses of $250,000, but likely much greater given the higher volume of taxable sales from retail uses. To date, the City has collected $1.1 Million in tax (formerly “community benefit”) revenue from existing commercial cannabis businesses.

Report in Brief:

Commercial Cannabis Business, Sundial Collective – Woodland, LLC (“Sundial Collective”) (PLNG 24-00035), has applied for a Conditional Use Permit (CUP) to operate a storefront retail cannabis dispensary at 3 Court Street in the City’s Community Commercial Mixed Use zone; Assessor’s Parcel Number 005-552-016. This application follows a recent zoning code update, effective June 7, 2022, which allows retail cannabis land use in certain zones and allows the city to consider up to four conditional use permits for this land use citywide.

The process for considering retail cannabis operators began with a competitive preliminary review on February 27, 2023, where four of a total of 12 applicants were selected to advance to the Conditional Use Permit application stage. Sundial Collective was selected as one of these four applicants.

Sundial Collective’s project proposal entails the use of a project site located at 3 Court Street and has undergone a comprehensive review by City departments, including the City Planning Division, Engineering Division, Public Works Department, Fire Department, Building Division, and the City Police Department. The applicant's location and proposed operation are consistent with applicable zoning and development standards, and the applicant has prepared a preliminary Security Plan has been submitted and reviewed by the Woodland Police Department and a final plan shall be approved prior to operation.

As part of the review process, an Operating Agreement (Attachment 3) has been negotiated between the City and the applicant. This agreement will be reviewed by the City Council and will incorporate the commitments outlined in the Community Benefit Plan and Social Policy and Local Enterprise Plan. These documents are attached to the operating agreement for reference as part of permitting and annual reporting.

In conformance with Woodland Municipal Code (WMC) Section 17.84.120, a highly visible posting measuring 4 feet by 8 feet has been displayed on the project site, notices were sent to property owners and tenants within a 600-foot radius of the site, and a notice of the meeting was published in the local newspaper twelve days before the City Council meeting date.

The purpose of this hearing is for City Council to review and make a determination on the Conditional Use Permit and the corresponding Operating Agreement.

Upon issuance of a Conditional Use Permit and prior to operating, the applicant will be required to obtain a City Cannabis Business Permit and corresponding City Building Permits for tenant improvements necessary for the proposed operation.

Background:

On December 5, 2017, the City Council approved Ordinance 1629, adding Article 21.6 (now Section

17.84.120) to Chapter 25 (now Chapter 17) of the Municipal Code, which regulates the zoning of commercial cannabis. At the same time, the council approved Ordinance 1630, adding Chapter 13A (now Chapter 5.28) to the Municipal Code, establishing regulations for commercial cannabis business permits. These regulations allowed for up to six conditional use permits for manufacturing, distribution, and testing cannabis operations within Industrial or Industrial/Light Industrial Flex Overlay zones as defined in the General Plan.

On June 7, 2022, the City Council amended Chapter 17.110 (now Section 17.84.120) through Ordinance 1685 and Chapter 5.28 through Ordinance 1686, updating the regulations for cannabis retail businesses, which now authorizes City Council to consider up to four retail cannabis conditional use permits, allowing the sale of cannabis at authorized storefront retail cannabis dispensary

locations, with the option for delivery from these locations. These four permits may be issued in designated commercial and corridor mixed-use zones.

On February 27, 2023, the City issued a request for applications, inviting interested parties to participate in the selection process for a Preliminary Cannabis Business Permit to authorize applicants to apply for a Retail Cannabis Conditional Use Permit and enter into Operating Agreement negotiations to establish a commercial cannabis business. Applications were to be submitted in person by 3:00 pm on April 5, 2023. The City received a total of 12 proposals.

As part of the preliminary process, which involved three phases of review, applicants were required to submit detailed plans for the safety, security, and operational characteristics of the proposed storefront retail cannabis dispensary use, including the following:
• Business Plan
• Odor Control Plan
• Tax Compliance
• Insurance
• Community Benefit Plan
• Social Policy and Local Enterprise Plan
• Security Plan
• Neighborhood Compatibility and Community Relations Plan A Proposal Review Committee was formed, consisting of staff members from the Police, Finance, and Community Development Departments, as well as a representative from HdL (consultants retained by the City for their subject matter expertise) to conduct a competitive selection process. As required by the City of Woodland Municipal Code, the Committee gave particular consideration to each proposal's capacity, capitalization, security measures, and history, as well as the community benefits offered by the proposed commercial cannabis business. After an initial review, the Committee met July 17-18, 2023 to interview the twelve applicants for the Preliminary Cannabis Business Permit. Following the interviews, the city invited the top four ranked applicants to the fourth phase of the review process, which entails the negotiation of an Operating Agreement and application for the Conditional Use Permit. As the City Council is aware, Woodland Responsible and Compliant Retail, LLC dba Embarc Woodland filed a Petition for Writ of Mandamus and Complaint for Injunctive Relief challenging the review process for the Preliminary Cannabis Business Permits. That litigation is currently pending, but the City is moving forward with the review of the Conditional Use Permits and Operating Agreements with the top four ranked applicants in the meantime.

Planning Commission Recommendation: At its September 19, 2024, meeting, the City Planning Commission passed the following resolution evaluating the project proposal for compliance with zoning standards and land use requirements:

Planning Commission Resolution PC 24-06 (Attachment 9) (Sundial Collective Woodland, LLC - PLNG 24-00035) by a vote of 4-1-2 recommending City Council approve a Conditional Use Permit and Operating Agreement for a retail cannabis land use located at 3 Court Street in the city's Community Commercial Mixed Use zone.

Public comments were provided to the Planning Commission for the item and have been attached (Attachment 10).

Project Proposal

On July 2, 2024, Sundial Collective applied for a Retail Cannabis Conditional Use Permit. The applicant is requesting approval from the City Council for a Conditional Use Permit and Operating Agreement which will allow Sundial Collective to occupy an approximately 4,000 square foot existing building at 3 Court Street, as a storefront retail cannabis dispensary (Attachment 4 and 6, Project Application and Site Plan). Under the terms and conditions of approval, Sundial Collective will be required to obtain a Cannabis Business Permit for a Storefront Retail Cannabis Dispensary, (Ordinance 1685 and 1686), and appropriate State Licensing (Type 10 – Storefront Retailer). A Type 10 license allows for a storefront retailer to have a physical location where cannabis goods are sold.

Storefront retailers can also deliver cannabis goods.

Upon the start of operations, Sundial Collective Woodland intends to hire 15 employees from the City of Woodland, 10 of which will be full-time. With the growth of business, Sundial Collective plans to hire an additional five employees after two years, reaching a total of 20 employees. The proposed operating hours are Monday – Sunday from 9 am to 9 pm.

Project Site Description
Sundial Collective’s project site covers approximately 0.24 acres and includes a single building. The subject building at 3 Court Street is an existing 4,000 square foot, one-story building (Attachment 6, Site Plan). The property is bordered by commercial uses and West Street to the west, residential and office land uses on the east and north, with Court Street forming the southern boundary.

Interior “tenant improvements” will be made to the existing building; no new construction is proposed.

The property is zoned for Community Commercial Mixed Use land uses. The proposed use is permitted in this zone with the approval of a Conditional Use Permit and Operating Agreement by the City Council as the final acting body.

Community Benefit and Social Policy and Local Enterprise Plan Review Community Benefit and Social Policy and Local Enterprise Plans have been included with this report as Exhibits to Attachments 3 for the Commission’s review/reference. A summary is provided below.

Below is an overview of the Community Benefit commitments of Sundial Collective (Attachment 3):

Community Benefit Payment
Sundial Collective commits to contributing 2.5% of its annual gross receipts to local 501(c)(3) nonprofits active in Woodland.

Present and Ongoing Donations
Community Fund: Sundial Collective commits to donating to a needs-based fund for local nonprofits experiencing financial hardship and/or to assist with projects lacking funding.

Volunteerism: Sundial Collective commits to paying employees for volunteer hours with local nonprofits and will commit to providing each employee with an option to earn 20 hours of paid volunteer time each month.

Non-Profit Partnerships: Sundial Collective commits to continued work with non-profits that do work focused on youth education, youth drug prevention, and pregnancy education in the City of Woodland.

Youth Education and Outreach
Sundial Collective commits to partnering with local community-based organizations and local government to develop a campaign that will educate youth and the community on the prevention of youth cannabis consumption.

Strategy includes:
• Targeted Media
• Stopping youth access to cannabis

• Leverage current partnerships with non-profits that focus on preventing youth from consuming cannabis
• Volunteer time to help educate youth about cannabis and its effects on minors • Donate monetary funding and time to groups and organizations that help prevent youth drug use
Below is an overview of the Social Policy and Local Enterprise commitments of Sundial Collective (Attachment 3):

Local Hiring
Sundial Collective is committed to hiring all employees from the City of Woodland and is committed to working with Teamsters and local hiring agencies to find employees who live in the City of Woodland. Sundial Collective is committed to hiring a General Manager, Shift Managers, and Inventory Manager that will be preferentially given to local residents of Woodland.

Employee Wages and Compensation
Sundial Collective is committed to providing higher than living wage to all employees and raises based on employee performance, with performance reviews conducted every 90 days to determine raise eligibility.

Sundial Collective is committed to starting operations with 15 employees from the City of Woodland. 10 employees will be full-time. Sundial Collective is committed to hiring 5 additional employees once the business is established and service needs increase, with an anticipated total employee count of 20 employees within the first two years and up to 25 employees after three years.

Sundial Collective is committed to providing the following employee benefits:
• Holiday Pay: Time and a half for all employees who work on a holiday. • Vacation: Full-time employees receive 14 paid vacation days per year. • Paid Sick Leave: All employees receive 48 hours of sick leave on their first day of employment, renewing annually. Sick time can increase up to 120 hours per year, depending on tenure.
• Paid Funeral Leave: Three days of paid leave.
• Health Insurance: Full-time employees are eligible for Sundial Collective's CalChoice health plan, with either an HMO or PPO, with the premium paid for by Sundial Collective. Dental and vision insurance are also available.
• Employee Stock Plan: Employees are eligible for stock incentive plans to earn an equity stake in the business. Stock will vest over a number of years, with additional stock potentially offered as a performance bonus or award upon management promotions. • Discounts: Employees receive 30% off all products at Sundial Collective. • Uniforms: Each employee is provided with five shirts, a hat, and a pair of shoes. New uniforms are provided when needed, at the General Manager's discretion.

Continuing Education
Sundial Collective is committed to providing opportunities for career advancement in the following areas:
• Security measures and controls for the prevention of diversion, theft, or loss • Emergency response procedures (EAP)

• Cannabis strains, products, and their effects
• Quality assurance, packaging, and labeling requirements • Recognizing signs of substance abuse or instability in customers • Prohibition of smoking cannabis in public spaces
• Responsible adult use of cannabis
• Regulatory compliance
• Treez Point-of-Sales Systems
• METRC, the California mandatory seed-to-sale platform • IIPP
• Sexual harassment
• Customer relations
• Identifying valid IDs
• Discrimination
Sundial Collective is committed to working with vendors to provide employee education and brand training for all products sold at its retail store and is committed to paying for all employee training and compensating employees for their time in training.

Security Plan
The interior of the premises will be remodeled to represent the Sundial Collective brand and to meet state and local requirements for the proposed operation. New walls will be constructed to create a secured lobby at the front customer entrance. The constructed lobby will be used to verify customer IDs and physician recommendations before allowing entrance to the retail floor. Once a customer has been verified, they will be granted entry through a buzz in limited access door. Customers will be allowed on the sales floor after they are identified and confirmed to be eligible to purchase cannabis products.

The rear of the building’s interior will have restricted access to customers and additional walls will be constructed to create secured storage, vendor intake, offices, bathrooms, order fulfillment, and a vault area. All areas where cannabis and cannabis products are stored or pass through will be limited access and be equipped with electronic locking doors that only authorized employees will be able to access. The proposed modifications include:
• New interior partition walls.
• New interior finishes, including flooring, paint, light fixtures, display cases, wall art, and refrigerator displays.
• Flooring will be removed to expose the existing concrete. The concrete will be ground and polished to create durable and safe flooring. The interior drywall will be finished so that it has a flat coating. The drywall will then be painted with white zero-VOC paint to allow for easy cleaning.
• Burglar systems, including hold-up alarms, panic buttons at reception, secured storage areas, cash handling areas, contact sensors on doors and windows, and motion sensors. • Fire monitoring system: Bay Alarm will install a fire monitoring system. The alarm system will include carbon monoxide and smoke detectors with audible sirens. Alarms will be installed in every room within the premises. Fire extinguishers will be installed in accordance with local and state law.
• Installation of electronic access doors to control customer entry and limited access entry. • HVAC upgrades and carbon filter installation.
• Interior Signage.
• City Business License.

• City Cannabis Permit.
• DCC License.
• Seller’s Permit.
• Electrical and low voltage upgrades as necessary to support exterior signage, lighting, and standard trash and recycling receptacle needs.
• Sundial Collective will comply with all development standards set forth by the city and state.

The exterior of the facility will remain the same. It consists of stucco and wood façade and windows. The only changes to the exterior will be paint and signage. The paint used will be zero-VOC.
• New exterior “Sundial Collective” signage – Signage will be reviewed under a separate submission.
• Exterior lighting as needed for security and signage illumination. • Security shutters for interior windows.
• Each window will have security film, preventing the sight of cannabis and cannabis products from the exterior of the facility. Each window will be covered with a metal rolldown door to prevent attempted entry, criminal activity, and vandalism. • Surveillance system as needed to comply with city and state regulations. • Repaint the exterior of the building.
• Re-roof the building, as needed.
• Re-stripe and make improvements to the parking lot, as needed. • Provide updated Low Impact Development landscaping.
• Install solar paneling.
• Installing bike racks to promote energy-efficient travel, Sundial Collective offers 5% off customer purchases when they travel to the store on a bicycle.

The proposed upgrades to the facility will not have a negative impact on the surrounding community.

Visually, the public perception will not be that Sundial Collective is a cannabis dispensary. No products will be visible from the exterior, and the sign does not include any language surrounding cannabis. The visual aesthetics will blend in with surrounding uses.

Sundial Collective has safety measures in place to ensure that cannabis is only purchased by qualified customers. Sundial Collective will educate the community on the effects of cannabis, especially for the youth population.

Mitigation of Youth Exposure
Security Measures
• No cannabis products will be visible from the exterior of the building, preventing youth exposure.
• Security will monitor the exterior premises and entrance to ensure no minors are loitering on the property or trying to gain entry to the facility.
• The facility will have a "secured vestibule" at the front entrance labeled "Lobby." This area will allow management and security to control access to the retail floor entry door. Security will open the retail sales floor door after an individual is verified as a qualified guest and successfully checked into the TREEZ POS system. This door will be equipped with an electronic access system that requires a unique fob issued by the security company to grant entry to the retail sales floor.

Age Verification
• Every guest must be age-verified before being granted access to the retail sales floor. A valid government-issued ID will be scanned into the TREEZ POS operating system. The TREEZ 2D scanner alerts the employee and/or security guard if an ID is expired and if the person is over

21. All IDs are saved into the guest's TREEZ profile, which prevents the attempted use of a fake ID and using someone else's ID.
• All employees and security guards will be trained in identifying fake IDs.

Exterior Signage to Deter Youth
• “No persons under the age of 21 are allowed on the premises, excluding medical patients age 18+ who hold a valid MMIC or physician’s recommendation.” • “No Person Under 21+ Allowed.” – Posted to each entrance. • "No Loitering".

Child Resistant Packaging
• All products that will be sold at Sundial Collective are required to be in Child Resistant or Tamper Proof Packaging.

Sundial Collective intends to ensure that the security system employed, which will monitor the surrounding neighborhood for 100 ft in every direction, has a positive effect on the community and thwarts any potential criminal activity. In addition to Sundial Collective’s 24/7 live camera monitoring and surveillance, security guards will be present 24 hours a day, 7 days a week.

Outdoor activities will be minimal for this project. The trash bins will be located inside a gated and walled area at the exterior of the premises. Security guards will walk the premises daily to check for policy violations, litter, and loiterers. Security will meet vendors at the rear vendor entrance to escort them to and from the facility's interior with management. Retail sales will only occur inside the designated areas of the facility.

Sundial Collective will ensure the property and surrounding area are free of litter and graffiti. The property will be maintained in a neat and clean manner. All vegetation will be maintained at the facility on a regular schedule.

These and any additional security measures required by the Woodland Police Department shall be included in the final Security Plan approved by the Police Department and made part of the Cannabis Business Permit.

Discussion:

Applicable Laws, Codes & Ordinances
This project is subject to several laws, codes, and ordinances as described below:
• The City of Woodland General Plan
• The City of Woodland Zoning Ordinance
• City of Woodland Cannabis Business Permit Requirements • California Environmental Quality Act (CEQA)

• Regulations of the California Department of Cannabis Control 2035 General Plan Consistency
The proposed project is consistent with various policies and actions in the General Plan; including Land Use Policy 2.A.6 (Infill Development); Policy 2.D.I (Jobs/Housing Relationship); and Policy

4.C.16 (Safety and Security).

Specifically, the project is consistent with General Plan goals and policies which encourage Woodland residents and visitors to support retail establishments that are located in the City of Woodland (Policy 4.C.8). Currently, Woodland residents and visitors do not have the opportunity to purchase cannabis products locally and instead rely on delivery services from neighboring counties and cities. Establishing storefront retailers in Woodland will gain the City some share in this market through the generation of sales tax.

As previously mentioned in this report, applicants for a retail commercial cannabis conditional use permit and operating agreement were required to prepare and provide a Security Plan for proposed sites and facilities which support the deterrence of crime through site planning and design, consistent with Policy 4.C.16 (Safety and Security) and Policy 2.E.7(Public Safety and Community Design). This plan was reviewed by the City of Woodland Police Department and shall meet State requirements.

The proposed use is located on a parcel designated for commercial land uses and will operate out of an existing commercial building (Policy 2.J.I – Enhanced Design Character of Existing Centers).

Zoning Consistency
The project site is zoned Community Commercial Mixed Use. The City Community Commercial Mixed Use zone is applied to areas near entry access nodes to the community and supports regional commercial uses and light industrial uses.

Pursuant to City of Woodland Municipal Code 17.36.020, Table 17.36.020-1, a Cannabis Retail use may be established in the Community Commercial Mixed Use zone subject to use permit approval.

Development Standards
The proposed storefront retail cannabis dispensary would be established in an existing multi-tenant commercial building previously occupied by commercial uses. Tenant improvements will be made to the existing building to meet the operational requirements of the proposed use, including those outlined in the project's security plan; no new construction is proposed onsite.

The project is consistent with land use, lot coverage, landscaping, building type, building height, and setback requirements for the Community Commercial Mixed Use zone. Vehicle access to the site is provided from an existing driveway from East Main Street. At the time of tenant improvements, staff will conduct a staff-level architectural review consistent with existing practice for minor improvements to existing buildings.

Parking
The number of required off-street parking spaces for the proposed storefront retail cannabis dispensary use is consistent with the parking requirements for retail land use per City of Woodland Municipal Code Section 17.68.

The premises has 13 parking spaces and 1 dedicated ADA parking space in the parking lot. Two of the spaces will be outfitted with 48-amp Tesla charges for electric vehicles. Employees are encouraged to rideshare and ride bikes to work. Sundial anticipates having 3-5 employee vehicles

on-site at any given time.

Zoning Verification
A zoning verification was conducted as part of the associated preliminary cannabis business permit to verify compliance with the location limitations for commercial cannabis land uses established in the City of Woodland Municipal Code Section 17.84.120, which is also consistent with State requirements.

At the time of staff’s analysis of the location proposed for the storefront retail cannabis dispensary use, no known sensitive uses were identified within the minimum buffer distance of 600 feet from any property containing a school providing instruction in any grades Kindergarten through twelve (12), a day care center or a youth center, and is not within 600 feet of a public park. There were no more than two retail cannabis dispensaries within 1,000 feet of the project site. The proposed site would be more than 500 feet away from any other storefront retail cannabis dispensary use.

Conditional Use Permit Review
A Conditional Use Permit (CUP) affords broad public review and evaluation of those uses which require special consideration to ensure proper integration into the community; mitigation of any potentially adverse impacts; and making the required findings to permit the use. In considering an application for a conditional use, due regard shall be given to the nature and condition of the proposed or existing use and all adjacent uses and structures and may impose such requirements and conditions with respect to location, construction, maintenance, and operation, as may be deemed necessary for the protection of adjacent properties and public interest. Conditional Use Permit analysis typically includes consideration of proposed use; hours of operation; consistency with zoning standards such as parking; compatibility with existing uses and structures in the surrounding area; and other criteria as may be deemed appropriate.

A CUP runs with the land unless the CUP is revoked. Once approved, should ownership of the land or the business change, the CUP would remain valid at the location approved.

Following a public hearing, the City Council may approve a use permit application, with or without conditions, if all the following findings can be made:

Use Permit Findings

1. The proposed use is consistent with the General Plan.

The proposed storefront retailer use would be compatible with the underlying General Plan designation and zoning district and operate similarly to other existing retail businesses subject to usespecific standards. The proposed project is consistent with various policies and actions in the General Plan; including Land Use Policy 2.A.6 (Infill Development); Policy 2.D.I (Jobs/Housing Relationship); and Policy 4.C.16 (Safety and Security).

Specifically, the project would be consistent with General Plan goals and policies which encourage Woodland residents and visitors to support retail establishments that are located in the City of Woodland (Policy 4.C.8). The preparation and provision of a security plan support the deterrence of crime through site planning and design, consistent with Policy 4.C.16 (Safety and Security) and Policy 2.E.7(Public Safety and Community Design).

The proposed use would be located on a parcel designated for commercial land uses and would operate out of an existing commercial building (Policy 2.J.I – Enhanced Design Character of Existing Centers).

2. The proposed use is consistent with the purposes of the Zoning Code, and the purposes of the applicable zone.

The proposed use would be located on a commercial site designated Community Commercial Mixed Use on the 2035 General Plan land use diagram and is zoned Community Commercial Mixed Use.

Pursuant to City of Woodland Municipal Code 17.36.020, Table 17.36.020-1, a Cannabis Retail use may be established in the Community Commercial Mixed Use zone subject to use permit approval.

The proposed project site is not within a 600-foot radius of a school providing K-12 instruction, a daycare center, a youth center, or a public park.

The proposed retail storefront cannabis dispensary will not be located within 500 feet of another retail storefront cannabis dispensary.

3. The site is physically suitable for the type, density, intensity of the use being proposed, including access, utilities, and the absence of physical constraints.

The operations of Sundial Collective are based in retail and will not impact any other commercial retail business in the area.

The interior of the premises will be remodeled to represent the Sundial Collective brand and to meet state and local requirements for the proposed operation. New walls will be constructed to create a secured lobby at the front customer entrance. The constructed lobby will be used to verify customer IDs and physician recommendations before allowing entrance to the retail floor.

Once a customer has been verified, they will be granted entry through a buzz in limited access door.

Customers will be allowed on the sales floor after they are identified and confirmed to be eligible to purchase cannabis products.

The rear of the building’s interior will have restricted access to customers and additional walls will be constructed to create secured storage, vendor intake, offices, bathrooms, order fulfillment, and a vault area. All areas where cannabis and cannabis products are stored or pass through will be limited access and be equipped with electronic locking doors that only authorized employees will be able to access. The proposed modifications include:
• New interior partition walls.
• New interior finishes, including flooring, paint, light fixtures, display cases, wall art, and refrigerator displays.
• Flooring will be removed to expose the existing concrete. The concrete will be ground and polished to create durable and safe flooring. The interior drywall will be finished so that it has a flat coating. The drywall will then be painted with a white zero-VOC paint to allow for easy cleaning.
• Burglar systems, including hold-up alarms, panic buttons at reception, secured storage areas, cash handling areas, contact sensors on doors and windows, and motion sensors. • Fire monitoring system: Bay Alarm will install a fire monitoring system. The alarm system will include carbon monoxide and smoke detectors with audible sirens. Alarms will be installed in every room within the premises. Fire extinguishers will be installed in accordance with local and state law.
• Installation of electronic access doors to control customer entry and limited access entry. • HVAC upgrades and carbon filter installation.
• Interior Signage.

• City Business License.
• City Cannabis Permit.
• DCC License.
• Seller’s Permit.
• Electrical and low voltage upgrades as necessary to support exterior signage, lighting, and standard trash and recycling receptacle needs.

Sundial Collective will comply with all development standards set forth by the city and state. The exterior of the facility will remain the same. It is comprised of stucco and wood façade and windows.

The only changes to the exterior will be paint and signage. The paint used will be zero-VOC. • New exterior “Sundial Collective” signage – Signage will be reviewed under a separate submission.
• Exterior lighting as needed for security and signage illumination. • Security shutters for interior windows
• Each window will have security film, preventing the sight of cannabis and cannabis products from the exterior of the facility. Each window will be covered with a metal rolldown door to prevent attempted entry, criminal activity, and vandalism. • Surveillance system as needed to comply with city and state regulations. • Repaint the exterior of the building.
• Re-roof the building, as needed.
• Re-stripe and make improvements to the parking lot, as needed. • Provide updated Low Impact Development landscaping.
• Install solar paneling.
• Installing bike racks to promote energy-efficient travel, Sundial Collective offers 5% off customer purchases when they travel to the store on a bicycle.

The premises has 13 parking spaces and 1 dedicated ADA handicap parking space in the parking lot.

Two of the spaces will be outfitted with 48-amp Tesla charges for electric vehicles. Employees are encouraged to rideshare and ride bikes to work.

Sundial Collective will not have the exterior appearance of a cannabis dispensary. No products will be visible from the exterior, and the sign does not include any language surrounding cannabis. The visual aesthetics will blend in with surrounding uses.

Sundial Collective has safety measures in place to ensure that cannabis is only purchased by qualified customers. Sundial Collective will educate the community on the effects of cannabis, especially for the youth population.

4. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity, including transportation and service facilities.

The proposed use is compatible with the surrounding commercial area. The storefront retailer would be located within an existing commercial building similar in design, size and operating characteristics as other single-story retail and restaurant buildings along Court Street.

No new construction is proposed onsite. The building architecture and site improvements, including lighting, landscaping, parking have previously been found consistent with land use, lot coverage,

building type, building height, and setback requirements for the Community Commercial Mixed Use district.

5. Granting the Conditional Use Permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located.

Sundial Collective is not requesting to modify the exterior of the premises as the exterior already ensures that it blends seamlessly with the surrounding area.

Sundial Collective’s security guards will monitor the site and are required to ensure there is no loitering in the area.

6. The proposed project has been reviewed in compliance with CEQA.

Staff has determined that a Class 1 Categorical Exemption (Existing Facilities) pursuant to Section 15301 of the CEQA Guidelines and a Class 32 Categorical Exemption (Infill Development) pursuant to Section 15332 of the CEQA Guidelines is the appropriate level of CEQA review for this document.

Class 1 consists of the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agencies’ determination. Class 32 exemption consists of projects characterized as in-fill development within urbanized areas. The class consists of environmentally benign in-fill projects located on sites that are less than 5 acres and consistent with local general plan and zoning requirements. The project will not have any biological, air, water, traffic, or noise impacts. The proposed use would occupy approximately 4,000 square foot existing building that has previously been occupied by commercial uses similar to the proposed project.

In addition to the CUP findings outlined above, the Cannabis Ordinance 1685 (Municipal Code

17.84.120): provides other specific factors that shall be considered by the City Council, including the following:

1. The type of proposed use by the applicant.

The proposed use would be located on a commercial site designated Community Commercial Mixed Use on the 2035 General Plan land use diagram and is zoned Community Commercial Mixed Use.

Pursuant to City of Woodland Municipal Code 17.36.020, Table 17.36.020-1, a Cannabis Retail use may be established in the Community Commercial Mixed Use zone subject to use permit approval.

2. Whether the proposed use will be detrimental to the health, safety and welfare of the community.

The project site is a commercial area comprised of a variety of commercial retail and service uses along Court Street, with residential uses present further east and west of West Street. The zoning verification conducted as part of the associated preliminary request for proposals process verified compliance with the location limitations for storefront retailers established in WMC Section 17.84.120.

At the time of staff’s analysis of the location proposed for the storefront retail cannabis dispensary use, no known sensitive uses were identified within the minimum buffer distance of 600 feet from any property containing a school providing instruction in any grades Kindergarten through twelve (12), a day care center or a youth center, and is not within 600 feet of a public park.

Furthermore, operation of the proposed storefront retailer in accordance with the standards established in WMC Section 5.28 as well as the applicant’s Safety and Neighborhood Compatibility

Plans will ensure that a storefront retailer's use at this location would not have detrimental effects on the surrounding neighborhood.

3. Whether the use would enhance the economic viability of the area in which it is proposed to be located, including adjacent and surrounding properties.

The proposed facility will provide a new source of employment and revenue for the City while remaining under close regulation and oversight by both the City and State.

At the time of approval of a Cannabis Business Permit, an application will be required to Prepare and submit a Community Benefit Plan and Social Policy and Local Enterprise Plan describing the applicant’s plans for local outreach and hiring of residents of the City of Woodland for open positions and/or compensation for continuing education, and any other actions proposed by the applicant that are intended to benefit the local workforce and/or applicant’s local employees.

4. Whether the applicant has adequately addressed potential community benefits of the use to offset potential adverse impacts.

Sundial Collective is committed to contributing 2.5% of their annual business gross receipts per year to active 501(c)(3) non-profits active in the City of Woodland and to hiring all employees directly from the City of Woodland, creating fifteen (15) jobs initially with a commitment to hire 5 additional employees once the business is established and service needs increase, with an anticipated total employee count of twenty (20) employees within the first two years and up to 25 employees after three years. A detailed summary of their community benefit and local enterprise plan is provided above in the background section of this report and as Exhibits B and C to the Operating Agreement (Attachment 3).

5. The extent of support or opposition to the proposed use and location from members of the community, and the applicant’s plans to ensure strong community relations and compatibility with the surrounding neighborhood.

Prior to the submission of applications, public notice of the proposed retail cannabis use was provided to owners and tenants within a 600-foot radius of the project site, the site was posted with a highly visible notice, of a minimum four-foot by eight-foot in size mounted on a freestanding sign or posted on the building frontage, 10 days before the scheduled public hearing date, and a Legal notice was published in the Woodland Daily Democrat at least twelve days before the public hearing date.

Sundial Collective commits to continued work with non-profits that do work focused on youth education, youth drug prevention, and pregnancy education in the City of Woodland. This is outlined in detail in the Community Benefit Plan.

Sundial Collective will plan to have a Community Relations manager who will be responsible for outreach and communication for the Woodland community and will be the liaison between Sundial Collective and the surrounding community.

Sundial Collective has prepared and submitted a Community Relations and Neighborhood Compatibility Plan (Attachment 7) describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. The plan describes how the cannabis business will proactively address and respond to complaints from the surrounding community related to noise, light, odor, litter, vehicles and pedestrian traffic and any other activities that could become a nuisance

or have impacts on the cannabis business’s neighbors and the surrounding community.

Public comment received prior to the publication of this report is provided as Attachment 10.

6. The number of cannabis uses located or proposed to be located within 1,000 feet of the proposed location.

There are no cannabis uses located or proposed to be located within 1,000 feet of the proposed location at 3 Court Street.

7. The extent to which the proposed use would cause a further overconcentration of that particular type of use in the area.

At this time, there is no overconcentration of cannabis uses.

8. The background and history of the applicant, including the experience and qualifications of the applicant and those persons involved in the management, oversight, and day-to-day operations of the proposed use, the professional training and certifications of the applicant and/or persons involved in the management, oversight and day to day operations of the proposed use, and the nature and extent of the problems on any premises where the applicant has operated a cannabis business in the past.

Sundial Collective’s management consists of the following:

Laythen Martines
• Owner and operator of multiple licensed cannabis companies, including retail, distribution, and cultivation
• Founder of Sundial Collective, Redding’s largest dispensary • Education
o Bachelor of Science in Environmental Resources, Cal Poly Humboldt; and o Expert in computer programming, fluid mechanics, applied hydraulics, water quality, environmental health, water reuse, hydrology, chemistry, thermodynamics, physics, transport phenomena, NEPA, CEQA, limnology, solar thermal engineering, system analysis, mechanics and science of materials, environmental data modeling and analysis, and desalination facility design.
• Experience
o Owner of LGM Investing, LLC, established in August 2016; o Engineer consulting business in Trinity County;
o Over 91 cannabis cultivation clients;
o Mr. Martines assists cultivations in meeting all environmental requirements for CEQA review, developing best management practices for environmental cultivation matters such as wastewater discharge and sediment control. Develops training programs and standard operating procedures. Implements training and SOPs with staff and management;
o Owner of 5 licensed cannabis dispensaries, one licensed distribution facility, and 31 cultivation licenses; and
o Laythen Martines oversees day-to-day operations, manages SOPs, manages core department managers, approves budgeting with the Controller, ensures compliance with METRC, oversees fertilization, pesticide applications, and daily care of cultivation

plants, focuses on customer service, safety and security in all aspects of operations, oversees marketing and public relations, and provides leadership to all departments. • Qualifications
o California Drinking Water Treatment II License #38160; o California Drinking Water Distribution II License #45817; o Valid CA Driver’s License #D3156813;
o 5 operational Cannabis Retail licenses and 2 in the process of being constructed; o 1 Distribution License;
o 31 Cultivation Licenses and one pending build-out and state licensure; o Multiple Lake and Streambed Alterations Permits applied for and successfully obtained for clients from the California Department of Fish and Wild Life; o Highly skilled in AutoCAD, Microsoft Office, Distru, IheartJane, GIS, Hik-Connect, METRC, and TREEZ;
o Certified Weighmaster;
o 18 years of Cannabis Industry experience; and
o CAL/OSHA Certified.

A detailed summary of experience and qualifications is provided in Attachment 5.

9. Whether there is a history of police or crime-related problems in the area of the proposed location which may be exacerbated by establishment of the proposed cannabis use.

There is no history of police crime-related problems in the area of the proposed location, which may be exacerbated by the establishment of the proposed cannabis use.

10. Whether the proposed license would enhance recreational or entertainment opportunities in the area.

Currently, Woodland residents and visitors do not have the opportunity to purchase cannabis products locally and instead rely on delivery services from neighboring counties and cities.

Establishing storefront retailers in Woodland will provide an amenity that does not presently exist in the City.

Cannabis Business Permit Review – Municipal Code Section 5.28 The Cannabis Business Permit provides for the review of operational features for each cannabis business entity and is required in addition to a business license. A Cannabis Business Permit is required before initial operation and requires annual review. Before issuance of the Cannabis Business Permit, fees must be paid, and a Conditional Use Permit and final Operating Agreement authorized. The Cannabis Business Permit is approved by the Community Development Director.

Operating details including a Security Plan, Lighting Plan, Community Benefit Plan, Social Responsibility, and Local Enterprise Plan, as well as an Operating Agreement and Indemnification statement, are required as part of the Cannabis Business Permit review. Some of these items have been provided as part of the Conditional Use Permit review and are included as attachments.

Revocation of Permit
In the event of a violation of the terms and conditions of a retail cannabis business permit, the City may take various enforcement actions as provided under City Code Section 5.28.090 - Violations.

These actions may include fines, penalties, suspension, or revocation of the permit.

Environmental Assessment Status
Staff has determined that a Class 1 Categorical Exemption (Existing Facilities) pursuant to Section

15301 of the CEQA Guidelines and a Class 32 Categorical Exemption (Infill Development) pursuant to Section 15332 of the CEQA Guidelines is the appropriate level of CEQA review for this document.

Class 1 consists of the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agencies’ determination. Class 32 exemption consists of projects characterized as in-fill development within urbanized areas. The class consists of environmentally benign in-fill projects located on sites that are less than 5 acres and consistent with local general plan and zoning requirements. The project will not have any biological, air, water, traffic, or noise impacts. The proposed use would occupy an approximately 4,000 square foot existing building that has previously been occupied by medical office uses.

Public Notification
Public notice advertising for the public hearing on this project was prepared by the Community Development Department in accordance with notification procedures set forth in the City of Woodland’s Municipal Code and State Planning Law. Two methods of public notice were used:
• Legal notice was published in the Woodland Daily Democrat on October 3, 2024, twelve days prior to the public hearing.
• Notices were mailed to all property owners and tenants within a minimum of 600 feet of the project site on October 4, 2024.
• Pursuant to City of Woodland Municipal Code 17.110.100.D., the site was posted with a highly visible notice, of a minimum four foot by eight foot in size mounted on a freestanding sign or posted on the building frontage, 10 days prior to the scheduled public hearing date on October 15, 2024.

Reviewing Agency Comments
The project has been circulated to other city divisions and departments for review as well as to agencies outside the City of Woodland who have interest in the application including Waste Management and Yolo County. All reviewing agency comments have been integrated into the conditions of approval.

Conclusion:

Staff recommends that the City Council: 1) Receive the staff report; 2) Conduct a public hearing; 3) Find that the project is exempt from further environmental review pursuant to Class 1 and Class 32 categorical exemptions under the California Environmental Quality Act (CEQA) and find that the exemptions reflect the independent judgment of the City as lead agency under CEQA; 4) Adopt Resolution No. _____ approving a Conditional Use Permit for a storefront retail cannabis dispensary at 3 Court Street in the City’s Community Commercial Mixed Use zone conditioned upon approval of the appropriate Cannabis Business Permit and the recommended conditions of approval; and 5) Adopt Resolution No. _____approving an Operating Agreement between Sundial Collective Woodland, LLC and the City of Woodland for a cannabis retail business and Cannabis Business Permit located in the City of Woodland.

Prepared by: Anna Canales, Assistant Planner
Reviewed by: Erika Bumgardner, Deputy Director of Community Development

Attachments:

1. Proposed Resolution - Sundial Collective CUP and Conditions of Approval

2. Proposed Resolution - Sundial Collective Operating Agreement

3. Operating Agreement _Sundial Collective Woodland LLC

4. Project Application

5. Qualifications of Owner

6. Site Plan

7. Redacted Neighborhood Compatibility and Community Relations Plan

8. Odor Control Plan

9. Resolution PC 24-06

10. Publication Proof

11. Public Comment 9.19.24

I

RESOLUTION NO. ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND,

CALIFORNIA APPROVING A CONDITIONAL USE PERMIT FOR A STOREFRONT RETAIL CANNABIS DISPENSARY AT 3 COURT STREET WITHIN THE CITY

COMMUNITY COMMERCIAL MIXED USE ZONE CONDITIONED UPON

APPROVAL OF THE APPROPRIATE CANNABIS BUSINESS PERMIT AND THE

RECOMMENDED CONDITIONS OF APPROVAL
WHEREAS, On June 7, 2022, the City Council approved Ordinance no 1685 and 1686 to amend City Zoning and Municipal Code to enact regulations to allow the consideration and permitting of retail commercial cannabis uses as set forth in Woodland Municipal Code section

17.84.120 which allows for consideration of up to four (4) cannabis retail conditional use permits and Chapter 5.28 of the Municipal Code to incorporate retail commercial cannabis business and operational requirements for Cannabis Business Permits; and WHEREAS, as set forth in Woodland Municipal Code section 17.84.120, proposed cannabis retailers are required to obtain a conditional use permit, subject to the recommendation of the Planning Commission and final approval of the City Council; and WHEREAS, on February 27, 2023, the City issued a request for proposals, inviting interested parties to participate in the selection process for a Preliminary Cannabis Business Permit, which would authorize applicants to apply for a Retail Cannabis Conditional Use Permit and enter into Operating Agreement negotiations to establish a commercial cannabis business, and requiring that applications be submitted in person by 3:00 pm on April 5, 2023; and WHEREAS, the City received a total of 12 proposals in response to the request for applications; and
WHEREAS, a Proposal Review Committee was formed, consisting of staff members from the Police, Finance, and Community Development Departments, as well as a representative from HdL, a consultant retained by the City for their subject matter expertise, to conduct a competitive selection process; and
WHEREAS, after an initial review of the proposals, the Proposal Review Committee met in July 2023 to interview 12 proposal teams for the Preliminary Cannabis Business Permit and subsequently awarded Preliminary Cannabis Business Permits to the top four applicants, making them eligible to apply for a Retail Cannabis Conditional Use Permit; and WHEREAS, as required by the City of Woodland Municipal Code, the Proposal Review Committee gave particular consideration to each proposal's capacity, capitalization, security measures, and history, as well as the community benefits offered by the proposed commercial cannabis business, and also considered any other factors deemed necessary by the City to maintain and promote public health, safety, and general welfare; and WHEREAS, the Proposal Review Committee ranked Sundial Collective – Woodland LLC as 3 out of 12, with a score of 93.56%; and

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WHEREAS, the City of Woodland City Council hereby finds that the proposed cannabis retailer use to be located at 3 Court Street (“Site”), as set forth in Planning Application No. PLNG 24-00035 submitted by business applicant Sundial Collective – Woodland LLC (“Applicant”), conforms to the requirements and intent of Chapter 17.84.120 of the Woodland Zoning Code regarding commercial cannabis uses and the City General Plan, and further that, under the circumstances of the particular case, the use will not constitute a nuisance or be detrimental to the public welfare of the community; and
WHEREAS, On September 19, 2024, the Planning Commission held a duly noticed public hearing concerning the proposed cannabis retailer use to be located at 3 Court Street as set forth in Planning Application No. PLNG 24-00035. After the hearing, the Planning Commission recommended 4 to 1 (two absences) City Council approve the Conditional Use Permit and Operating Agreement for Retail Commercial Cannabis land use as proposed; and WHEREAS, the project is exempt from further environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 Categorical Exemption, Existing Facilities) and CEQA Guidelines Section 15332 (Class 32 Categorical Exemption, Infill Development), as the City Council of the City of Woodland finds as follows:
• The project consists of minor alterations for interior tenant improvements to operate a cannabis business that requires specific spaces to conform with state and local regulations. • The project is located on a site that is less than 5 acres and will not have any biological, air, water, traffic, or noise impacts; and
WHEREAS, a public notice describing the proposed cannabis conditional use permit was published in the Woodland Daily Democrat, a newspaper of general circulation, and mailed to property owners and property tenants within 600 feet of the project site; and, a highly visible site posting of four (4) feet by eight (8) feet was posted in a visible location on the project site for ten (10) days before the City Council public hearing date; and WHEREAS, the City Council held a duly-noticed public hearing on October 15, 2024, as required by law to consider all of the information presented by staff and public testimony presented in writing and at the meeting.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Woodland, based on facts in the staff report, written and oral testimony, and exhibits presented, approves a Conditional Use Permit for a cannabis retail use located at 3 Court Street, as set forth in Planning Application No. PLNG 24-00035, prepared by Sundial Collective – Woodland, LLC; based on the following findings:

SECTION 1. Recitals. The City of Woodland City Council hereby adopts the above recitals as true and correct findings of the City of Woodland City Council and incorporates them into this Resolution by this reference.

SECTION 2. Findings. In support of issuing a conditional use permit for the proposed cannabis retailer use to be located at 3 Court Street, as set forth in Planning Application No. PLNG 24-00035, the City of Woodland City Council hereby makes the following additional findings,

Resolution No. ___

pursuant to the requirements of Woodland Municipal Code (“WMC”) Section 17.100.100(H) and

17.84.120(c)(3):
1) The proposed use is consistent with the General Plan and Zoning Code, in that the use is conditionally permitted consistent with zoning and general plan requirements, and appropriate conditions to address potential concerns and impacts have been made part of the approval.
2) The site is physically suitable for the type, density, intensity of the use being proposed, including access, utilities, and the absence of physical constraints. 3) The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and future land uses in the vicinity including transportation and service facilities.
4) Granting the Conditional Use Permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located.
5) The proposed project is categorically exempt from further environmental review pursuant to CEQA sections 15301 and 15303 as the proposal involves operation, repair, maintenance, leasing and licensing of existing facilities, and involves the conversion of a small structure not exceeding 2,500 square feet where retail cannabis dispensing is a conditionally permitted use.
6) The proposed use at the Site is subject to additional findings and considerations set forth in WMC section 17.84.120(3). The City of Woodland City Council has considered all relevant evidence regarding the Site and the Applicant’s proposed use, and finds that Applicant’s proposed cannabis retailer use at the Site satisfies those considerations, as follows:
a) Pursuant to WMC section 17.84.120(3)(a), the City of Woodland City Council has considered the type of proposed use by the Applicant. The proposed cannabis retailer will provide sales of cannabis and cannabis products. The City of Woodland City Council finds that these goods and services will provide unique, currently unavailable, and varied goods and services to the community by the Applicant’s use at the proposed location.
b) Pursuant to WMC section 17.84.120(3)(b), the City of Woodland City Council has considered all evidence and testimony relevant to the Applicant’s proposed use, and determines that the proposed use will not be detrimental to the health, safety and welfare of the community. The use is located in the Community Commercial Mixed Use zone and not adjacent to sensitive uses; and therefore will not result in negative impacts on existing uses in the area. The project is subject to approval of a conditional use permit, including conditions of approval incorporated into the project, and subject to local and state regulatory standards, licenses and permits, to ensure that the use will not be detrimental to the health, safety and welfare of the community. Applicant’s failure to

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abide by those conditions of approval may result in permit revocation. c) Pursuant to WMC section 17.84.120(C)(3)(c), the City of Woodland City Council finds that the proposed use would enhance the economic viability of the area in which it is proposed to be located because it will provide new goods and services not currently available to the surrounding area and will bring retail activity to the proposed location. d) Pursuant to WMC section 17.84.120(C)(3)(d), the City of Woodland City Council finds that the Applicant has adequately addressed the potential community benefits of the use to offset potential adverse impacts. The City of Woodland City Council has determined that these community benefits adequately offset any potential adverse impacts of the proposed use.
e) Pursuant to WMC section 17.84.120(C)(3)(e), the City of Woodland City Council has considered all evidence and testimony pertaining to Applicant’s proposed use, including the extent of support or opposition to the proposed use and location from members of the community. No opposition to the proposed use or location was expressed by the community or the surrounding neighborhood.
f) Pursuant to WMC section 17.84.120(C)(3)(f), the City of Woodland City Council further finds that, based on other proposed locations considered concurrently with the Site, there will be no more than two (2) cannabis retailers located within a one thousand (1,000) radius of the Site at the time of this Resolution, except otherwise approved by City Council, which protects against an overconcentration of the type of proposed use and further protects the public health and safety.
g) Pursuant to WMC section 17.84.120(C)(3)(g), and consistent with the above findings, the City of Woodland City Council further finds that the proposed use would not lead to a further overconcentration of that particular type of premises in the area. h) Pursuant to WMC section 17.84.120(C)(3)(h), the City of Woodland City Council has considered the Applicant’s application, including the relevant background and history of the Applicant. Based on the information provided, the City of Woodland City Council has determined that there are no prior problems or complaints pertaining to Applicant’s operation of other businesses or cannabis operations on premises giving rise to public health, safety, and welfare concerns. The applicant has additionally operated retail cannabis businesses in other jurisdictions with no known problems or complaints. i) Pursuant to WMC section 17.84.120(C)(3)(i), the City of Woodland City Council is not aware of a history or high prevalence of police or crime-related problems in the area of the Site giving rise to specific safety concerns.
j) Pursuant to WMC section 17.84.120(C)(3)(j), the City of Woodland City Council finds that the proposed use would enhance recreational or entertainment opportunities in the area.

In light of the above findings and considerations regarding the proposed use and location,

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the City of Woodland City Council therefore finds that the conditional use conforms to the requirements and intent of WMC Chapter 17.84.120 regarding commercial cannabis uses and the City’s General Plan, and that any conditions and requirements stipulated in Applicant’s conditional use permit have been or will be met, and that the use will not constitute a nuisance or be detrimental to the public welfare of the community.

SECTION 3. Approval. In accordance with the City of Woodland City Council findings stated in Section 2 and Exhibit A of this Resolution, the City of Woodland City Council hereby approves Planning Application Number PLNG 24-00035 for the issuance of a Retail Cannabis Conditional Use Permit to Sundial Collective – Woodland, LLC for the proposed cannabis retailer use at 3 Court Street. The recommended approval and issuance of the conditional use permit is expressly conditioned on Applicant’s continued compliance with all of the findings and conditions of approval specified in Applicant’s conditional use permit, Article 17.84.120 of the Woodland Zoning Code, Chapter 5.28 of the Woodland Municipal Code, and all other applicable local and state laws and regulations pertaining to commercial cannabis retailers. Nothing in this Resolution shall be deemed to waive the City’s right to revoke Applicant’s conditional use permit in the event Applicant violates any of the aforementioned conditions.

PASSED, APPROVED AND ADOPTED, by the City Council of the City of Woodland at a regular meeting of the City Council held on the 15th day of October 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Tania Garcia-Cadena, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________ _______________________________ Sarah Lansburgh, City Clerk Ethan Walsh, City Attorney

Resolution No. ___

EXHIBIT A
Conditions of Approval
PLNG 24- 00035
Address: 3 Court Street
Cannabis Business: Sundial Collective – Woodland LLC
Conditions of Approval
General Conditions

1. Approval. Planning Application # PLNG 24-00035, submitted by Applicant Sundial Collective – Woodland, LLC for the proposed cannabis business “Sundial Collective” is approved to permit retail sales of cannabis and cannabis products, and, in a building size of approximately 4,000 square feet located at 3 Court Street and with hours of operation of Monday – Sunday 9 am – 9 pm.

2. Substantial Conformance. The use shall be implemented in substantial conformance with the Conditional Use Permit (Planning Application: PLNG 24-00035) as approved by the City Council, and subject to all applicable provisions of Woodland Municipal Code Section 5.28, Commercial Cannabis Business Permits, and Section 7.84.120, Commercial Cannabis Businesses, except as modified herein. Prior to issuance of a Cannabis Business Permit and, if applicable, Certificate of Occupancy, all conditions of approval and required improvements shall be completed to the satisfaction of the city. Changes in the use or an increase in the intensity or size of operation may require approval of a new use permit or a modification to the existing use permit.

3. Regulatory Permit. The approval of the Conditional Use Permit and commencement of business operations shall be contingent upon the applicant submitting a Cannabis Business Permit application and all of the materials and documentation required by Woodland Municipal Code Chapter 5.28.180, Applications for Cannabis Business Permits, to the Community Development Director for review and approval. Applicants shall obtain and maintain at all times a valid Cannabis Business Permit including approval of an Operating Agreement, prior to occupancy of the building and continuing at all times that the business is in operation, including payment of all required fees for application review. The Cannabis Business Permit shall be timely renewed and maintained in accordance with the applicable procedures set forth in Woodland Municipal Code Chapter 5.28 as a condition of continuing the retailer use under the approved conditional use permit.

All requirements, terms and conditions of the Cannabis Business Permit, Operating Agreement, and applicable state license(s) shall be considered conditions of this conditional use permit.

Failure to comply with all applicable state and local laws and ordinances, the Cannabis Business Permit, Operating Agreement, and/or applicable state license(s) shall be deemed a violation of the conditional use permit and may result in revocation of the use permit.

4. Indemnification. The applicant shall defend, indemnify, and hold harmless the City of

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Woodland, its agents, officers or employees from any claim, action or proceeding against the City or its agents, officers or employees to attack, set aside, void or annul an approval of the subject application by the City, its legislative body, advisory agencies or administrative officers.

The City will promptly notify the applicant of any such claim, action or proceeding against the City and the applicant will either, at the City's discretion, undertake defense of the matter and pay the City's associated legal costs, or will advance funds to pay for defense of the matter by the City Attorney.

5. Other Permits and Licenses. The applicant shall obtain all other permits and licenses required by the City for the use, including a Cannabis Business Permit pursuant to Woodland Municipal Code Chapter 5.28, and any other City permits required for retail cannabis uses prior to occupancy of the building and operation of the business, and shall pay all required fees in the amount currently established as applicable, or in the amount to be adopted by City Council. All cannabis businesses must, prior to establishing and operating any such cannabis business, obtain and maintain at all times a valid license issued by the State, as may be applicable, and any other applicable local or regulatory licenses.

6. Building and Fire Requirements. Prior to occupancy and/or issuance of a Cannabis Business Permit, applicant shall comply with all applicable Building and Fire requirements to the satisfaction of the Building Official and the Fire Marshall. The applicant shall obtain all necessary and appropriate permits for the project prior to occupancy, including but not limited to building and encroachment permits, and pay all required fees.

7. Runs with the Land. The terms and conditions of approval of the conditional use permit shall run with the land, and shall be binding upon and be to the benefit of the heirs, legal representatives, successors, and assignees of the property owner. Where a conditional use has abandoned the site or has ceased activity for a period of six (6) months, expressly including due to the failure to obtain or maintain other necessary regulatory licenses and permits to operate the business, the approved conditional use permit may be subject to revocation for non-use.

Under these circumstances, and if such non-use results in revocation of the conditional use, a new application for a conditional use permit must be processed per the requirements of the City's then-existing zoning ordinance.

8. Permit Expiration. The Conditional Use Permit must be exercised within one year of issuance, or it shall be deemed null and void by act of law (Woodland Municipal Code Section 17.96.130, Expiration and Extension). A permit for use of a building or a property is exercised when a valid City business license, Cannabis Business Permit, and all necessary permits have been issued, and the permitted use has commenced on the site in accordance with applicable conditions of approval contained herein.

9. Other Applicable Requirements. The project approval is subject to all applicable requirements of the Federal, State, City of Woodland and any other affected governmental agencies. Approval of this request shall not waive compliance with all sections of the Municipal Code, all other applicable Federal, State and City Ordinances, and applicable Community or Specific Plans or Design Guidelines in effect at the time of building permit issuance. The duty of inquiry as to such requirements shall be upon the applicant.

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10. Compliance with Conditions. Prior to any use of the project site, all Conditions of Approval shall be completed to the satisfaction of the Community Development, Police, and Fire Departments. In the event that any of the conditions of this permit are not satisfied, the Community Development Director may request a public hearing be set before the Planning Commission to determine whether the Conditional Use Permit should be revoked. Additionally, upon showing of a compelling public necessity demonstrated at a noticed public hearing, the City of Woodland, acting through the appropriate entity, may add, amend, or delete conditions of this permit.

11. Violations. Upon receipt of a Cannabis Business Permit the applicant shall be subject to provisions relating to violations contained in Municipal Code Section 5.28.090, or as may be amended.

12. Environmental Recording Fee. Applicant shall provide the Community Development Department with a check for the sum of $50 made out to Yolo County to record the CEQA environmental document (Notice of Exemption) with the County.

13. Applicant’s Responsibility to Inform. The applicant shall be responsible for informing all subcontractors, consultants engineers, or other business entities providing services related to the project of their responsibilities to comply with all pertinent requirements herein in the City of Woodland Municipal Code, including the requirement that a business license be obtained by all entities doing business in the City as well as hours of operation requirements in the City.

Planning Conditions

16. Education. The cannabis retailer shall provide information or disclaimers to all customers regarding the effects of cannabis consumption and legal consequences of consumption or possession under federal law, in a form approved by the City.

17. Parking. The project shall provide and maintain the number of on-site parking spaces consistent with the requirements of Section 17.68 of the Woodland Municipal Code, based on gross square footage of retail use, consistent with City standards unless otherwise approved by the Community Development Director.

18. Bicycle Parking. The project shall provide bicycle parking, consistent with the requirements of Section 17.68.070 of the Woodland Municipal Code. The location of the racks and locking mechanism details shall be subject to review and approval by the Community Development Department prior to issuance of permits. Bicycle parking shall be installed prior to occupancy.

19. Signage. Signage shall require a Sign Permit subject to approval by the Community Development Department in compliance with Woodland Municipal Code Section 17.100.140, Sign Permits – Permanent Signs, and may require a Building permit prior to installation.,

20. Trash Maintenance. The site shall be kept free of trash or debris at all times. Graffiti or any other type of vandalism shall be removed or otherwise remediated within 72 hours of occurrence.

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21. Landscape. Prior to operation, all existing landscape planter areas shall be replanted and maintained per City Standards. Vegetative matter shall cover no less than 75% of the required landscape area unless otherwise approved by the Community Development Director.

Maintenance shall include but is not limited to watering, fertilizing, weeding, cleaning, pruning, trimming, spraying and cultivation.

22. A storefront cannabis dispensary permittee shall not allow cannabis, cannabis products, or cannabis accessories on the dispensary site to be visible from the public right of way, the unsecured areas surrounding the buildings on the site, or the site’s main entrance and lobby.

23. No storefront cannabis dispensary shall grow or cultivate cannabis, except for immature nursery stock cannabis plants, on the dispensary site.

Building Conditions
The following comments are from the City of Woodland Building Division and are applicable to the referenced project:

24. This project must meet all criteria and mandates for these City adopted codes or the most current code:

A. 2022 California Building Code
B. 2022 California Plumbing Code
C. 2022 California Mechanical Code
D. 2022 California Electrical Code
E. 2022 Building Energy Efficiency Standards
F. 2022 California Green Building Code
G. The Code of the City of Woodland

25. Other City and County Agencies (Health, Fire, Public Works, and Planning) may be required to approve the project prior to a building permit being issued.

Recycle plan is required at time of permit issuance along with a $1000 deposit.

Prior to any demolition work being performed, clearance from Yolo Solano Air Quality Management District is required.

26. Any deferred submittals that are not a part of the initial permit application must be listed on the cover sheet of the plan at the time of application for the project.

27. All plans, computations and specifications to be prepared and designed by an architect or engineer licensed by the state of California.

28. A licensed architect or licensed engineer shall be responsible for reviewing and coordinating all submittal documents prepared by others, including deferred submittal items, for compatibility with the design of the building.

Fire Conditions
The following comments are from the City of Woodland Fire Department and are applicable to the referenced project:

29. Project Condition. Prior to permit approval to install gates or barriers: The installation of perimeter fencing, gates, or obstacles that obstruct fire apparatus access roads shall require

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a separate plan submittal, review, and approval by the Woodland Fire Department prior to installation.

30. Advisory: An operational permit for a Cannabis dispensary will be required. The permit(s) will cost $342.00 and be billed at the time of the fire inspection.

31. Advisory: Addressing and suite numbers shall be readily visible, contrasting in color to the background.

32. Project Condition. Prior to permit approval: Tennant improvement plans shall be submitted to the City of Woodland Building and Fire Department for review and approval due to the interior remodel of the space.

33. Advisory: Please be aware that, at a minimum or as applicable, the following items will be inspected, tested, or reviewed at the time of inspection. • Existing exit signs and emergency lighting shall be in good working order and capable of supplying illumination for not less than 90 mins. Testing records are required. Test to be conducted at fire inspection.
• New and existing fire extinguishers shall be current and labeled with a State Fire Marshal-approved service label.
• Existing exits, exit doors, and door hardware are not obstructed, are in good working order, and shall meet the minimum requirements of the CFC. • Housekeeping shall be orderly, and storage shall be stored in an approved manner per the CFC.
• All electrical and cords shall comply with the CFC.
• All electrical panels shall have a minimum 36-inch clearance before the panel. • Verify that the address and suite numbers are visible from the assigned street. • Verify fire lanes are marked.
• Verify all landscaping is three feet away from fire department equipment. • Verify that fire department equipment is painted, marked, labeled, and secured as applicable.
• Existing walls and ceilings are free from holes that would lead to fire extension. • Verify Knox Box keys.

Police Conditions
The following comments are from the City of Woodland Police Department and are applicable to the referenced project:

34. Security personnel shall be on site twenty-four hours a day or alternative security as authorized by the city manager or his/her designee(s), and must have a verified response security patrol when closed. Security personnel must be licensed by the state of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager or his/her designee (s), with such approval not to be unreasonably withheld.

Firearms may be carried by security personnel while they are on duty if authorized by the chief of police.

35. Security Plan. Prior to issuance of a Business Cannabis Permit, applicant shall submit a final

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Security Plan and Lighting Plan pursuant to Woodland Municipal Code Section 5.28.260, Cannabis Business Site Security, for review and approval by the Police Chief and Community Development Director. Photometric data may be required to indicate that parking and public areas are equipped with one (1) foot-candle of minimum maintained illumination per square foot of parking surface to include the entire paved area or public/employee exterior access ways. Photometric data must also confirm the absence of “hot spots” or areas of ten (10) footcandle of illumination per square foot or more.

Engineering and Public Works Conditions
The following comments are from the City of Woodland Engineering Division and Public Works Department and are applicable to the referenced project:

General Conditions

36. Prior to building permit issuance, applicant shall obtain an encroachment permit for all work within the public right-of-way including utility connections and water meter, sewer cleanouts, and backflow devices, along with any activity requiring traffic control. The submittal shall include an engineer’s estimate of cost for the public improvements and applicant shall pay a plan check and inspection fee in accordance with the fee schedule. This submittal is separate from the building permit submittal. All public improvements shall conform to the current City of Woodland Standard Specifications.

37. All public improvements are required as a condition of development of this site, and shall be completed prior to certificate of occupancy of the building.

Fees:

38. Owner shall pay all permit fees for construction of offsite infrastructure improvements under the encroachment permit, as approved by City Council and defined in the City Fee Schedule.

39. The conditions of approval set forth herein include certain fees, dedication requirements, reservation requirements and/or other exactions. Pursuant to Government Code, Section 66020(d), these conditions constitute written notice of the amount of such fees, and a description of the dedications, reservations and other exactions.

The applicant is hereby notified that the 90-day protest period, commencing from the date of project approval, has begun. If the applicant fails to file a timely protest regarding any of the fees, dedication requirements, reservation requirements and/or other exactions contained in this notice, complying with all the requirements of Government Code, Section 66020, the applicant will be legally barred from later challenging such fees, dedications requirements, reservation requirements and/or other such exactions. Notwithstanding the foregoing, the City does not waive any rights it may have to enforce any settlement agreement, memorandum of understanding, or other agreement with the applicant which authorizes the City to impose certain fees, and which may waive the applicant's right to challenge the imposition of some or all of the fees, dedication requirements, reservation requirements, and/or other exactions set forth in these conditions of approval.

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Easements Dedications:

N/A
Site Design and Frontage Improvements

40. Backflow protection devices shall be installed on all domestic, landscape, and irrigation water services. Backflow devices shall be tested by a City-approved tester and results provided to the Public Works Department prior to occupancy. Work shall be covered by an encroachment permit.

41. Applicant shall remove and replace existing driveway along West Street with an ADA compliant commercial driveway per City standards.

42. Applicant shall remove and replace all non-ADA compliant, broken, or damage curb, gutter, and sidewalk along West Street per City standards.

RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WOODLAND, CALIFORNIA APPROVING AND AUTHORIZING THE CITY

MANAGER TO EXECUTE AN OPERATING AGREEMENT WITH SUNDIAL

COLLECTIVE WOODLAND, LLC, FOR A CANNABIS RETAIL FACILITY LOCATED AT 3 COURT STREET, WOODLAND, CA 95695
WHEREAS, the applicant Sundial Collective Woodland, LLC, submitted a Conditional Use Permit application to operate a Retail Cannabis Facility (“Cannabis Business”) in a building size of approximately 4,000 square feet located at 3 Court Street and with hours of operation of Monday – Sunday 9 am – 9 pm; and
WHEREAS, the City Council, following a Planning Commission recommendation to approve the use, approved granting a Conditional Use Permit to the Cannabis Business to conduct commercial cannabis activities at the Subject Property, subject to conditions of approval and contingent on issuance of a cannabis business permit, state license(s) and execution of an Operating Agreement; and
WHEREAS, Woodland Municipal Code Chapter 5.28 provides that the City shall enter into an Operating Agreement and Indemnification, in conjunction with the issuance of a Cannabis Business Permit, in which the Cannabis Business agrees to abide by the requirements of the Municipal Code and any other operating terms and conditions as mutually agreed by the parties; and
WHEREAS, the City Council of the City of Woodland has determined that there may be both community benefit and potential adverse impacts that may result from the operation of cannabis businesses in the City, and therefore desires to ensure all such impacts are adequately mitigated and offset through the requirement for community benefits the businesses provide to the City and its residents; and
WHEREAS, the Cannabis Business and the City have mutually agreed to certain minimum payments or actions to the City of Woodland to provide for community support projects, programs, and other services and activities that will positively contribute to the community and minimize any adverse impacts or increases in need for services caused by the operation of the Cannabis Business in the community; and
WHEREAS, the proposed Operating Agreement additionally addresses other mutually agreeable terms and conditions regarding operation of the Cannabis Business, including minimum insurance requirements, security procedures, and indemnification.

NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Woodland as follows:

1. The City Council adopts the findings above as true and correct.

2. The City Council hereby approves of an Operating Agreement between the City and Sundial Collective Woodland, LLC generally consistent with the terms and conditions provided in the Operating Agreement attached hereto as Attachment 1.

3. The City Manager, or his or her designee, is authorized to execute an Operating Agreement in substantially the form provided in Attachment 1, subject to any minor, technical, non-substantive or necessary changes approved by the City Attorney, and any other supporting documents necessary to execute the Operating Agreement. The City Attorney is hereby authorized to make clarifying and confirming changes to the Agreement, provided the total payment amount under the Agreement does not change.

4. The Operating Agreement shall be executed prior to issuance of a Cannabis Business Permit.

PASSED AND ADOPTED, by the City Council of the City of Woodland at a regular meeting the City Council held on the 15th day of October, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Tania Garcia-Cadena, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________ _______________________________ Sarah Lansburgh, City Clerk Ethan Walsh, City Attorney

Exhibit 1
[Operating Agreement]

1 OPERATING AGREEMENT FOR A CANNABIS RETAIL BUSINESS AND

PRELIMINARY CANNABIS BUSINESS PERMIT

LOCATED IN THE CITY OF WOODLAND

SUNDIAL COLLECTIVE WOODLAND, LLC
3 COURT STREET, WOODLAND, CA 95695
This Operating Agreement for a Cannabis Business (hereinafter “Agreement”), dated ____, 2024, (“Effective Date”), is entered into by and between the City of Woodland (the “City”), a California municipal corporation, and Sundial Collective Woodland, LLC, a cannabis retail facility (“Cannabis Business”). The City and Cannabis Business may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
WHEREAS, On June 21, 2022, the City Council of the City of Woodland approved Ordinance Nos. 1685 and 1686 to allow consideration for up to four retail cannabis businesses within the City of Woodland.

WHEREAS, on February 27, 2023, the City of Woodland opened a competitive application review process for preliminary cannabis business permit applications, which closed on April 5, 2023. A total of 12 Preliminary Cannabis Business Permit applications were received.

WHEREAS, after conducting a complete, thorough, and objective review in consideration of all applications, the four top scoring applications were selected to continue through the final application review process, including the approval of an operating agreement to memorialize the requirements as provided for in the regulations governing commercial cannabis retail permits, Chapter 17..84.120 and 5.28 of the Woodland Municipal code, as well as statements and agreements provided in the application materials and as part of the interview process; and WHEREAS, Cannabis Business is one of the four top scoring applicants and has applied for and received a Conditional Use Permit concurrently with the approval of this Agreement for the operation of a retail cannabis business at 3 Court Street, Woodland California, as more specifically described in Exhibit “A”, attached hereto and incorporated herein by this reference (the “Subject Property”).

WHEREAS, Section 5.28.180(A)(9) of the Woodland Municipal Code provides that the City shall enter into an Operating Agreement and Indemnification, in conjunction with the issuance of a Cannabis Business Permit, in which the Cannabis Business agrees to abide by the requirements of the Municipal Code and any other operating terms and conditions as mutually agreed by the parties; and
WHEREAS, the City Council of the City of Woodland has determined that there may be both community benefit and potential adverse impacts that may result from the operation of cannabis businesses in the City, and therefore desires to ensure all such impacts are adequately mitigated and offset through the requirement for community benefits the businesses provide to the City and its residents; and

2 WHEREAS, the Cannabis Business and the City have mutually agreed to certain minimum payments or actions to the City of Woodland to provide for community support projects, programs, and other services and activities that will positively contribute to the community and minimize any adverse impacts or increases in need for services caused by the operation of the Cannabis Business in the community.

NOW, THEREFORE, in consideration of the mutual promises, conditions, and covenants set forth herein, the Parties agree as follows:

AGREEMENT

1. Incorporation of Recitals. The Recitals, and all defined terms set forth in this Agreement, are hereby incorporated into this Agreement as if set forth herein in full.

2. Definitions. The following terms shall have the following meanings for purposes of this Agreement, but other terms may be defined elsewhere in this Agreement.

A. “Assignment” means: (i) a sale, exchange or other transfer of this Agreement, the Cannabis Business’s rights hereunder, or substantially all of the Cannabis Business’s assets dedicated to operation of the retail cannabis business under this Agreement to a third party; (ii) a sale, exchange or other transfer of thirty (30) percent or more of the outstanding common stock of the Cannabis Business; (iii) any reorganization, consolidation, merger re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Cannabis Business or any of its shareholders is a party which results in a change of ownership or control of thirty (30) percent or more of the value or voting rights in the stock of Cannabis Business; and (iv) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, provided that the effect of such occurrence is to change control of Company or responsibility for this Agreement to an entity that is not controlled by Company’s ultimate parent entity (as defined on the Effective Date of this Agreement in 16 CFR § 801.1(a)(3)).

B. “Cannabis business permit” means the regulatory permit issued by the City to the Cannabis Business pursuant to the provisions of Chapter 5.28 of the Woodland Municipal Code.

C. Cannabis retailer” means a premises permanently located in the City licensed by the State of California pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code Section 26000 et seq., as may be amended, where cannabis is provided for retail sale to consumers, including an establishment that delivers cannabis as part of a retail sale, as permitted by Chapter 17.84.120 of the Woodland Municipal Code.

D. “City” means the City of Woodland.

E. “City Permits” means all building permits, conditional use permits, zoning amendments, operating agreements, and other permits, including the Cannabis

3 Business Permit, licenses, entitlements, and agreements that the City, acting in its governmental capacity, must issue or approve for the Cannabis Business to operate in accordance with this Agreement.

F. “Commencement Date” means the date that all of the following have occurred: (1) the City has issued all necessary City Permits; (2) the Cannabis Business has obtained all necessary State Licenses to operate; and (3) the Cannabis Business has obtained a certificate of occupancy.

G. “Community Development Director” means the Community Development Director and his or her designee.

H. “Conditional Use Permit” means the conditional use permit issued by the City to the Cannabis Business pursuant to Chapter 17.100.100 of the Woodland Municipal Code.

I. “Effective Date” means the date first entered above as the Effective Date that both Parties have signed this Agreement.

J. “Gross Receipts” means the total amount actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in “gross receipts” shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, all cost of materials used, labor or service costs, interest paid or losses or other expenses. The following shall not be included in the definition of “Gross Receipts: (1) Cash discounts allowed and taken on sales; (2) Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit; and (3) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded.

K. “Manager” means a person with responsibility and authority over the establishment, management, supervision, or oversight of the operation of the Cannabis Business.

L. “State License” means all licenses required to be issued by the State of California for operation of the Cannabis Business pursuant to Division 10 of the Business and Professions Code and applicable state regulations, including Division 42 of Title 16, Division 8 of Title 3, and Division 1 of Title 17 of the California Code of Regulations, as those provisions may be amended.

M. “Subject Property” means that certain property located at 3 Court Street, Woodland California, as more specifically described in Exhibit “A”, attached hereto an incorporated herein by this reference, which is the location of the Cannabis Business’s retail cannabis business.

N. “Term” means the period of time this Agreement is in effect, and any renewal periods, as specified in Section 3.

4 3. Term of Agreement. The Term of this Agreement shall commence on the Effective Date and continue for a period of two (2) years therefrom (“Initial Term”), unless earlier terminated as specified in this Agreement. Prior to the expiration of the Initial Term and any subsequent Renewal Period, the Parties may mutually agree to extend the Term of this Agreement for up to two (2) additional two-year (2-year) terms to run consecutively (each a “Renewal Period”).

4. General Terms and Conditions. The Cannabis Business shall comply with all of the following terms and conditions for the Term of this Agreement:

A. This Agreement is only valid for the Cannabis Business at the Subject Property identified in this Agreement. An assignment of this Agreement or any interest herein by the Cannabis Business is not permitted unless consented to in advance in writing by the City, which consent may be conditioned, granted or withheld in City’s sole and absolute discretion.

B. The applicant shall apply for and receive approval for a final Cannabis Business Permit and all other required City permits, such as building permits, including receipt of a Certificate of Occupancy, prior to commencement of operations. i. Submission of Complete Tenant Improvement Plans: The applicant shall submit a complete submittal to the City Building Division for all applicable tenant improvements within three (3) months following the Effective Date of this agreement. The submission must include all necessary documentation, plans, and approvals required by the City to ensure compliance with applicable codes and regulations.
ii. Commencement of Construction: All construction related to the applicable building permits must commence within six (6) months of the Effective Date of this agreement. Failure to meet these timelines will result in the termination of the Operating Agreement.

C. Any conditions placed on the Cannabis Business Permit and the Conditional Use Permit are hereby incorporated as conditions of this Agreement. Violations of the Cannabis Business Permit, the Conditional Use Permit and/or applicable State Licenses shall be deemed violations of this Agreement and shall constitute a material breach of this Agreement.

D. The applicant shall commence operation of the cannabis business within 12 months of the approval date of the CUP consistent with Section 17.96.130 of the Woodland Municipal Code, or the City will withdraw the preliminary business permit award and this agreement shall be null and void.

E. The Cannabis Business shall obtain and maintain at all times a valid Cannabis Business Permit, Conditional Use Permit, and applicable State License(s) prior to and during operation of the Cannabis Business.
i. As soon as practicable, the Cannabis Business shall inform the City when it obtains its necessary State License(s), and shall provide a copy of the State

5 License(s) to the Community Development Director. The City shall cooperate with the Cannabis Business as appropriate and as needed to facilitate the State’s issuance of a State License(s) to the Cannabis Business. ii. The City shall diligently process the Cannabis Business’s applications for all City Permits. This Agreement does not commit the City in advance to approve the City Permits; nor does this Agreement constrain the City’s discretion to determine compliance with all requirements regarding issuance of any City Permits. Nothing in this Agreement relieves the Cannabis Business of the obligation to comply with all requirements and application procedures set forth in Chapter 5.28 and Section 17.84.120 of the Woodland Municipal Code.

F. The Cannabis Business understands, acknowledges and agrees to comply with all applicable then-existing state and local laws and regulations applicable to operation of the Cannabis Business, including Chapter 5.28 of the Woodland Municipal Code.

5. Operational Requirements. In addition to all operating requirements set forth in Article IV of Chapter 5.28 of the Woodland Municipal Code, the Cannabis Business shall comply with the following specific operational requirements:

A. The Cannabis Business shall immediately notify the City Police Department of any criminal activity, or suspected criminal activity, occurring at the Subject Property. In the event of any internal security system breach, including a faulty alarm system, broken or damaged surveillance cameras or other video recording equipment, or broken or damaged locks, doors, or lighting which may increase risk of criminal activity at the Subject Property, the Manager of the Cannabis Business shall notify the City Police Department as soon as practicable after becoming aware of the security system breach.

The Cannabis Business shall diligently attempt to fix or resolve any such security breach immediately; if circumstances require additional time and delay to remedy, the Cannabis Business shall so notify City police and provide an estimated timeline the breach will be cured.

B. If the Cannabis Business receives any criminal threats, or otherwise suspects any criminal targeting related to movement of product or cash from or to the Subject Property, the Cannabis Business shall immediately notify the City Police Department.

C. The City’s Chief of Police, or his or her designee, may perform site inspections of the Cannabis Business during hours of operation, upon reasonable notice. The scope of the inspection shall be to ensure compliance with all conditions on the Cannabis Business, including compliance with state rules and regulations, such as but not limited to, track and trace requirements, product storage, labeling, and disposal of product, as well as accounting, ledgers for distribution, and other records and operating procedures. Upon reasonable notice by the City, the Cannabis Business shall provide proof, including through visual observation and confirmation by City staff, of any storage, disposal or distribution of product as may be necessary to ensure business compliance. Should the City discover any evidence of falsification of records or other practices inconsistent with City or State requirements, the Cannabis Business shall, upon written notice from

6 the City, immediately cease and desist operations until such time that the issues have been resolved, to the satisfaction of the City, in accordance with state and local regulations.

6. Consideration. As consideration for the rights and benefits it enjoys under this Agreement, including its operation of approved cannabis uses in the City during the Term, the Cannabis Business shall do all of the following:

A. Tax Payment. The cannabis business shall pay the required ten (10%) percent tax as required per Woodland Municipal Code Chapter 3.36, Cannabis Business Tax. i. Monthly Payments shall be calculated per calendar month, due and payable on the 15th day of the subsequent calendar month in accordance with Woodland Municipal Code Section 3.36(B). By way of example only, a Monthly Payment for the month of September would be calculated from September 1 through September 30, due and payable on October 15. ii. If a Monthly Payment is not paid in full within fifteen (15) days after it is due and payable, penalties and interest shall accrue as set forth in Woodland Municipal Code Section 3.36.100.
iii. Monthly Payments shall be made to the City’s Finance Department. In the event the Cannabis Business intends to pay a Monthly Payment in cash in an amount that exceeds $5,000, the Cannabis Business shall notify the City in advance to make prior arrangements.
iv. Accompanying the Monthly Payment, the Cannabis Business shall deliver to the City a report (“the Monthly Report”) showing (1) Gross Receipts of the Cannabis Business for the immediate prior month; 2) a cumulative total of all amounts of Gross Receipts received by the Cannabis Business to date for the calendar year, (3) a calculation of the Monthly Payment currently due to the City; and (4) a calculation of the cumulative total of all Monthly Payments made to the City to date for the calendar year.

B. Community Benefits Plan. Pursuant to Section 5.28.180 (A)(6)(b), Exhibit “B” to this agreement, Community Benefit Plan, which is attached hereto and incorporated into this Agreement by this reference, describes the benefits the cannabis business has provided or will provide to the local community including direct aid, participation in, and commitment to funding the work of local nonprofits, community, civic, or social service based organizations, as well as the development of public outreach and education program related to risks of youth and drugs, and any other agreed upon community benefit between the City and applicant. The Cannabis business shall comply with and implement that Community Benefit Plan as a requirement of this Agreement.
i. Each year, at the time of the annual Cannabis Business Permit review, the Cannabis business shall submit a Community Benefits Plan Summary Report in which all activities in support of local community organizations

7 or events as outlined in the Community Benefit Plan (Exhibit “B”), including the Community Benefit Payment, shall be identified, including the community service hours provided by the cannabis business (inclusive of staff service volunteer hours) in the year, and the Cannabis Business shall provide to City or its designee all appropriate receipts, payment verification and any other documentation requested by City as deemed necessary by City in its discretion to verify the Cannabis business’s compliance with the Community Benefit Plan.

C. Social Policy and Local Enterprise Plan. Pursuant to Section 5.28.180(A)(6)(c), Exhibit “C” to this Agreement describes the Cannabis Business’s Social Policy and Local Enterprise Plan.
i. Each year, at the time of the annual Cannabis Business Permit review, the Cannabis Business shall submit an updated Social Responsibility and Local Enterprise Plan in which the employee benefits, workforce development actions, local hiring practices, and minimum employee wage paid are identified for the prior year.
i. Minimum agreed upon hourly wage (living wage). The Cannabis Business hereby agrees to provide a minimum hourly working wage in the amount of $20 for remainder of the calendar year following the Effective Date of this Agreement. The wages for employees of the Cannabis Business shall increase at the same rate as the state minimum wage.

D. Cannabis Business agrees to abide by the requirements of Chapter 5.28 of the Woodland Municipal Code and any other operating terms and conditions as mutually agreed by the parties to ensure that the social policy and local enterprise plan commitments and community benefits derived from the proposed cannabis business adequately address potential adverse impacts stemming from the operation of the Cannabis Business.

E. Records. The Cannabis Business shall keep accurate and adequate records and documentation to reflect its monthly gross receipts and information concerning required payments. Pursuant to section 5.28.340 of the Woodland Municipal Code, the Cannabis Business shall maintain all such records for at least three (3) years, and shall produce those records to the City within 24 hours after receipt of the City’s request.

7. Termination. The City and/or Cannabis Business may terminate this Agreement prior to expiration of the Term for the reasons and subject to the requirements set forth below. The Cannabis Business understands and acknowledges that the right to operate the Cannabis Business is expressly contingent on full execution of an Operating Agreement, as required by section

5.28.180(A)(9) of the Woodland Municipal Code. As such, termination of this Agreement shall

8 result in the immediate termination of the Cannabis Business’s operations, unless and until a new Operating Agreement is executed by the Parties
A. City’s Termination Rights. Without prejudice to its other remedies at law or in equity, the City may terminate this Agreement, at any time and in its sole discretion, effective thirty (30) days after the City provides written notice of termination to the Cannabis Business, if any of the following circumstances occurs:
i. The Cannabis Business breaches its obligation to pay the Monthly Payments of the Cannabis business tax when due and fails to cure the breach within thirty (30) days after the City provides the Cannabis Business with a written notice of default.
ii. The Cannabis Business breaches its obligation to perform in accordance with any material provision of this Agreement, other than the obligation to pay the Monthly Payment, and: (A) does not cure the breach within thirty (30) days after the City provides the Cannabis Business with a written notice of breach or, if the breach cannot reasonably be cured within 30 days, (B) does not begin work to cure the breach within thirty (30) days after the City provides the Cannabis Business with a written notice of breach. The Parties may mutually agree in writing to extend the time period to cure the breach. The express designation in this Agreement of a provision as “material” does not imply that other provisions are not material.
iii. The Cannabis Business fails to obtain and maintain at all times prior to and during operation of the Cannabis Business a valid Cannabis Business Permit and State License(s), or violates any condition of approval of the Conditional Use Permit.
iv. The uses and business activities of the Cannabis Business are declared unlawful by order of Court, or become illegal by operation of State law.

B. Cannabis Business’s Termination Rights. The Cannabis Business may, at any time and in its sole discretion, effective thirty (30) days after the Cannabis Business provides written notice of termination to the City, may terminate this Agreement if the Cannabis Business has permanently ceased operations, or intends to cease operations within thirty (30) days, in the City of Woodland.

8. Release & Indemnification. The Cannabis Business shall release and hold harmless the City, its agents, officers, elected officials, staff and employees (collectively, “City Parties”) from any and all claims, injuries, damages, or liabilities of any kind arising from: (i) any repeal or amendment of Chapter 5.28 of the Woodland Municipal Code, or any provision of the Zoning Code relating to the Cannabis Business, and (ii) any arrest or prosecution of the Cannabis Business or its owners, Managers, staff, employees, or members for violation of state or federal laws. The Cannabis Business shall further defend, indemnify and hold harmless the City Parties from and against any and all claims or actions: (i) brought by adjacent or nearby property owners or any other parties for any damages, injuries, or other liabilities of any kind arising from or related to the

9 Cannabis Business operations at the Subject Property, and (ii) brought by any party for any problems, injuries, damages, or other liabilities of any kind, including bodily injury, death or property damage, arising out of the distribution of cannabis or cannabis products at the Subject Property. The obligations in this Section 8 Release & Indemnification shall survive any expiration or termination of this Agreement.

9. Insurance.

A. Time for Compliance. The Cannabis Business shall not begin operations until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. Failure to provide and maintain all required insurance shall constitute a material breach of this Agreement.

B. Types of Required Coverages. Without limiting the indemnity provisions of this Agreement, the Cannabis Business shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance:
i. Commercial General Liability. Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence.

Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions limiting coverage for (1) products and completed operations; (2) contractual liability; (3) third party action over claims; or (4) cross liability exclusion for claims or suits by one insured against another.
ii. Automobile Liability. Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1) with minimum limits of $1,000,000 each accident. iii. Workers’ Compensation. Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.

If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.

C. Endorsements.
i. The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability shall be endorsed to provide the following:
a. Additional Insured. The City’s indemnified parties shall be additional insureds with regard to liability and defense of suits or claims arising

10 out of the performance of the Agreement. Additional Insured Endorsements shall not (1) be restricted to “ongoing operations”; (2) exclude “contractual liability”; (3) restrict coverage to “sole” liability of Consultant; or (4) contain any other exclusions contrary to the Agreement.
b. Primary Insurance and Non-Contributing Insurance. This insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance.
c. Severability. In the event of one insured, whether named or additional, incurs liability to any other of the insureds, whether named or additional, the policy shall cover the insured against whom claim is or may be made in the same manner as if separate policies had been issued to each insured, except that the limits of insurance shall not be increased thereby.
d. Cancellation. The policy shall not be canceled or the coverage suspended, voided, reduced or allowed to expire until a thirty (30) day prior written notice of cancellation has been served upon the City except ten (10) days prior written notice shall be allowed for non-payment of premium.
e. Duties. Any failure by the named insured to comply with reporting provisions of the policy or breaches or violations of warranties shall not affect coverage provided to the indemnified parties.
f. Applicability. That the coverage provided therein shall apply to the obligations assumed by the Cannabis Business under the indemnity provisions of this Agreement, unless the policy or policies contain a blanket form of contractual liability coverage.
ii. The policy or policies of insurance required by this section for Workers’ Compensation shall be endorsed, as follows:
a. Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City’s indemnified parties. b. Cancellation. The policy shall not be canceled or the coverage suspended, voided, reduced or allowed to expire until a thirty (30) day prior written notice of cancellation has been served upon the City except ten (10) days prior written notice shall be allowed for non-payment of premium.

D. Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City’s indemnified parties in the same manner and to the

11 same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

E. Evidence of Insurance. The Cannabis Business shall, concurrently with execution of this Agreement or as soon thereafter as may be authorized by the City, deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, the Cannabis Business shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

F. Failure to Maintain Coverage. The Cannabis Business agrees to suspend and cease all operations hereunder during such period of time if the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City.

G. Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

H. Insurance for Subcontractors. All subcontractors shall be included as additional insureds under the Cannabis Business’s policies, or the Cannabis Business shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of this Agreement, including adding the City as an Additional Insured.

10. Notice. Any notice or other communication provided pursuant to this Agreement must be in writing and shall be considered properly given and effective only when mailed or delivered in the manner provided by this Section 11 to the persons identified below. A mailed notice or other communication shall be considered given and effective on the third day after it is deposited in the United States Mail (certified mail and return receipt requested). A notice or other communication sent in any other manner will be effective or will be considered properly given when actually delivered. A Party may change its address for these purposes by giving written notice of the change to the other Party in the manner provided in this Section 11.

If to the City:

City of Woodland
City Manager’s Office
300 First Street
If to Cannabis Business:

12 Woodland, California 95695
Attention: Ken Hiatt

11. Force Majeure.

A. “Force Majeure Event” means a cause of delay that is not the fault of the Party who is required to perform under this Agreement and is beyond that Party’s reasonable control, including the elements (such as floods, earthquakes, windstorms, and unusually severe weather), fire, energy shortages or rationing, riots, acts of terrorism, war or war-defense conditions, acts of any public enemy, epidemics, the actions or inactions of any governmental entity (excluding the City) or that entity’s agents, litigation, labor shortages (including shortages caused by strikes or walkouts), and materials shortages.

B. Except as otherwise expressly provided in this Agreement, if the performance of any act required by this Agreement to be performed by either the City or Cannabis Business is prevented or delayed because of a Force Majeure Event, then the time for performance shall be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused.

12. Waiver. A Party’s failure to insist on strict performance of this Agreement or to exercise any right or remedy upon the other Party’s breach of this Agreement shall not constitute a waiver of any performance, right, or remedy. A Party’s waiver of the other Party’s breach of any provision in this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or any other provision. A waiver is binding only if set forth in writing and signed by the waiving Party.

13. Relationship of Parties. This Agreement does not create any employment relationship, ownership interest, or other association between the City and Cannabis Business. Nothing herein shall be construed to create the relationship of principal and agent, partnership or other joint venture between the City and Cannabis Business.

14. Attorneys’ Fees. The Party prevailing in any litigation concerning this Agreement, the Subject Property, or the Cannabis Business operations, shall be entitled to an award by the court of reasonable attorneys’ fees and litigation costs. If the City is the prevailing party, then this Section shall apply whether the City is represented in the litigation by the designated City Attorney or by outside counsel.

15. Severability. If a court with jurisdiction finds any provision of this Agreement to be invalid, void, or unenforceable, then the remaining provisions shall remain in full force and effect, and to this end this Agreement shall be severable.

16. Counterparts. The parties may execute this Agreement in counterparts, each of which shall constitute an original, but all of which shall collectively constitute this same Agreement.

17. Integration and Modification. This Agreement sets forth the Parties’ entire understanding and agreement regarding the matters addressed herein. This Agreement supersedes all prior or contemporaneous agreements, representations, and negotiations (written, oral, express, or implied) and may be modified only by written agreement signed by both Parties.

13 (Signature Page Follows)

IN WITNESS WHEREOF, the parties enter into this Agreement as of the date first set forth on this Agreement.

City of Woodland
By: _________________________
Ken Hiatt, City Manager
Dated: __________, 2024
Approved as to Form
Woodland City Attorney
By: ____________________________
Ethan Walsh, City Attorney
Cannabis Business:

Sundial Collective Woodland, LLC
By: _________________________
Dated: __________, 2024
By: _____________________
Dated: __________, 2024

EXHIBIT “A”

DESCRIPTION OF SUBJECT PROPERTY
Parcel One:

Lot 40, The Oaks Subdivision, in the City of Woodland, County of Yolo, State of California, filed August 21, 1912, in Book 2 of Maps, Page 61, in the Office of the County Recorder of said County.

Parcel Two:

Beginning at the intersection of the East line of West Street with the North line of Court Street, as shown on the Map of The Oaks Subdivision filed August 21, 1912, in Book 2 of Maps, Page 61, Yolo County Records; thence from said point of beginning North along the East line of West Street, 136 feet, more or less to the Southwest corner of Lot 40 of The Oaks Subdivision; thence East along the South line of Lot 40, 77 feet to the West line of Lot 41 of The Oaks Subdivision; thence South along the West line of said Lot 41, 136 feet, more or less, to the North line of Court Street; thence West along the North line of Court Street, 77 feet the point of beginning.

Excepting Therefrom, that portion thereof described in the deed to the City of Woodland recorded April 28, 1987, in Book 1853 of Official Records, Page 452.

EXHIBIT “B”

COMMUNITY BENEFIT PLAN
Community Benefit Payment
Sundial Collective Woodland LLC commits to contributing 2.5% of its annual gross receipts to local 501(c)(3) non-profits active in Woodland.

Present Donations
• Community Fund: Sundial Collective Woodland LLC commits to donating to a needs-based fund for local non-profits experiencing financial hardship and/or to assist with projects lacking funding.
• Volunteerism: Sundial Collective Woodland LLC commits to paying employees for volunteer hours with local non-profits and will commit to providing each employee an option to earn 20 hours of paid volunteer time each month.
• Non-Profit Partnerships: Sundial Collective Woodland LLC commits to continued work with non-profits that do work focused on youth education, youth drug prevention, and pregnancy education in the City of Woodland.

Youth Education and Outreach
• Sundial Collective Woodland LLC commits to partnering with local community-based organizations and local government to develop a campaign that will educate youth and the community on the prevention of youth cannabis consumption. • Strategy includes:
o Targeted Media
o Stopping youth access to cannabis
o Leverage current partnerships with non-profits that focus on preventing youth from consuming cannabis
o Volunteer time to help educate youth about cannabis and its effects on minors o Donate monetary funding and time to groups and organizations that help prevent youth drug use

EXHIBIT “C”

SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
Local Hiring
Sundial Collective is committed to hiring all employees from the City of Woodland and is committed to working with Teamsters and local hiring agencies to find employees who live in the City of Woodland. Sundial Collective is committed to hiring a General Manager, Shift Managers, and Inventory Manager that will be preferentially given to local residents of Woodland.

Employee Wages and Compensation
Sundial Collective is committed to providing higher than living wage to all employees and raises based on employee performance, with performance reviews conducted every 90 days to determine raise eligibility.

Sundial Collective is committed to starting operations with 15 employees from the City of Woodland. 10 employees will be full-time. Sundial Collective is committed to hiring 5 additional employees once the business is established and service needs increase, with an anticipated total employee count of 20 employees within the first two years and up to 25 employees after three years.

Sundial Collective is committed to providing the following employee benefits:
• Holiday Pay: Time and a half for all employees who work on a holiday. • Vacation: Full-time employees receive 14 paid vacation days per year. • Paid Sick Leave: All employees receive 48 hours of sick leave on their first day of employment, renewing annually. Sick time can increase up to 120 hours per year, depending on tenure.
• Paid Funeral Leave: Three days of paid leave.
• Health Insurance: Full-time employees are eligible for Sundial Collective's CalChoice health plan, with either an HMO or PPO, with the premium paid for by Sundial Collective. Dental and vision insurance are also available. • Employee Stock Plan: Employees are eligible for stock incentive plans to earn an equity stake in the business. Stock will vest over a number of years, with additional stock potentially offered as a performance bonus or award upon management promotions. • Discounts: Employees receive 30% off all products at Sundial Collective. • Uniforms: Each employee is provided with five shirts, a hat, and a pair of shoes. New uniforms are provided when needed, at the General Manager's discretion.

Continuing Education
Sundial Collective is committed to providing opportunities for career advancement in the following areas:
• Security measures and controls for the prevention of diversion, theft, or loss • Emergency response procedures (EAP)
• Cannabis strains, products, and their effects

• Quality assurance, packaging, and labeling requirements • Recognizing signs of substance abuse or instability in customers • Prohibition of smoking cannabis in public spaces
• Responsible adult use of cannabis
• Regulatory compliance
• Treez Point-of-Sales Systems
• METRC, the California mandatory seed-to-sale platform • IIPP
• Sexual harassment
• Customer relations
• Identifying valid IDs
• Discrimination
Sundial Collective is committed to working with vendors to provide employee education and brand training for all products sold at its retail store and is committed to paying for all employee training and compensating employees for their time in training.

11. Odor Control
The Odor Control Plan for Sundial Collective is located in Section A on page 23 of the PCBA.

Sundial Collective is committed to mitigating all cannabis odor from the proposed facility. Sundial Collective will utilize an HVAC system that has limited exchange of indoor and outdoor air. The facility will have carbon filters throughout the building that will continuously scrub the indoor air, reducing any odors before exiting the building to reduce the chance of outdoor cannabis odor.

11.A. Sources of Odor
Since the onset of recreational cannabis in California in 2018, all products within the retail establishment must be packaged and labeled for final sale before entering the facility. The packaging requirements mandate that the package be resealable, tamper-evident, and child-resistant. In addition to providing product safety, these requirements mean that there are no open packages of bulk cannabis in the retail establishment, limiting cannabis odor.

11.B. Odor Control Devices
Sundial Collective will modify the building’s HVAC system to ensure no odors are detectable outside the facility. Areas of the building where cannabis is stored and handled frequently will be equipped with exhaust fans that hold the space under negative pressure. This controls the direction of airflow and ensures against rogue ventilation. The air is ejected through the exhaust fans and will pass through a carbon filter that neutralizes all odors. The limited access storage areas and the order fulfillment room will be equipped with negative pressure and carbon filters.

The customer sales floor is less likely to experience heavy cannabis odors. To handle lighter odor loads, a duct-mounted self-cleaning needlepoint bipolar ionization system will be installed. This product will be installed in the return air plenum and neutralizes odors by destroying VOCs with multiple-pass filtration.

11.C. System Maintenance
Sundial Collective will contract with a local HVAC-certified maintenance group to provide quarterly servicing of the HVAC equipment, including all odor control equipment. Carbon filters may be replaced during quarterly servicing, or at the specifications of the manufacturer’s instruction, but no less than every 6 months.

11.D. Employee Training
The General Manager, Assistant Manager, and Shift Leads will be trained on proper usage of the HVAC system. Controls will be in place to ensure guests and unauthorized employees cannot alter the HVAC settings.

If a suspected problem occurs with the HVAC, an employee will notify the manager on duty. The manager on duty will then contact the General Manager, who will arrange for the HVAC-certified maintenance team to inspect the facility and make any repairs needed.

TO: THE MEMBERS OF THE PLANNING COMMISSION
AGENDA: City Council Regular Meeting
DATE: October 15, 2024
ITEM #: I.12
SUBJECT: Yolo Cannabis Club Cannabis Conditional Use Permit Recommendation for Action: Staff recommends that the City Council: 1) Receive the staff report; 2) Conduct a public hearing; 3) Find that the project is exempt from further environmental review pursuant to Class 1 and Class 32 categorical exemptions under the California Environmental Quality Act (CEQA) and find that the exemptions reflect the independent judgment of the City as lead agency under CEQA; 4) Adopt Resolution No. _____ approving a Conditional Use Permit for a storefront retail cannabis dispensary at 367 West Main Street, Ste. 353-D in the City’s Corridor Mixed Use – West Main Street zone conditioned upon approval of the appropriate Cannabis Business Permit and the recommended conditions of approval; and 5) Adopt Resolution No. _____approving an Operating Agreement between Infinity Assets Woodland Inc., dba Yolo Cannabis Club, and the City of Woodland for a cannabis retail business and Cannabis Business Permit located in the City of Woodland.

Staff Contact:

Anna Canales, Assistant Planner, [email protected] Fiscal Impact:

Application Processing Costs. The project applicant covers all costs associated with processing the subject Conditional Use Permit application and related Operating Agreement through an Advanced Funding Agreement. Similarly, the selection process for all applicants was covered through individual funding agreements.

The City collects two types of revenue associated with cannabis businesses outside the specific Conditional Use Permit application processing costs noted above. Those include Permit fees and Cannabis Tax.

Permit Revenue. When a new business applies for a Cannabis Business Permit, contingent in this case on approval of a Conditional Use Permit and Operating Agreement, the City will collect $50,056 to allow for staff to review and process the application. This includes site visits by both Community Development and Police staff. Thereafter, businesses are responsible for requesting a renewal of the permit on an annual basis and subject to a renewal fee of $21,222. The permit renewal fee pays for program oversight, business plan review by the Community Development Department, Police site visits and Police compliance, accounting and an annual financial audit. The City does not make revenue above the cost of service on these fees and is legally only allowed to charge the City’s cost of doing business. New Cannabis Business Permit and renewal fees adjust annually based on CPI.

Cannabis Tax. In November 2022, Woodland voters approved a local tax on cannabis businesses that would help to fund general city services. Retail cannabis businesses are subject to a 10 percent tax based on gross receipts. It is difficult to estimate the future potential cannabis tax revenue that may be realized from cannabis retail sales as it will depend upon the success of the business. At minimum, assuming a similar realized revenue generation as existing commercial cannabis manufacturing, distribution and testing businesses, it is estimated that the city will see additional annual revenue from the four retail cannabis businesses of $250,000, but likely much greater given the higher volume of taxable sales from retail uses. To date, the City has collected $1.1 Million in tax

(formerly “community benefit”) revenue from existing commercial cannabis businesses.

Report in Brief:

Commercial Cannabis Business, Infinity Assets Woodland, Inc., dba Yolo Cannabis Club (“Yolo Cannabis Club”)(PLNG 24-00039), has applied for a Conditional Use Permit (CUP) to operate a storefront retail cannabis dispensary with delivery at 367 West Main Street, Ste. 353-D in the City’s Corridor Mixed Use – West Main Street zone; Assessor’s Parcel Number 065-010-033. This application follows a recent zoning code update, effective June 7, 2022, which allows retail cannabis land use in certain zones and allows the city to consider up to four conditional use permits for this land use citywide.

The process for considering retail cannabis operators began with a competitive preliminary review on February 27, 2023, where four of a total of 12 applicants were selected to advance to the Conditional Use Permit application stage. Infinity Assets Woodland, Inc., dba Yolo Cannabis Club (“Yolo Cannabis Club”) was selected as one of these four applicants.

Yolo Cannabis Club’s project proposal entails the use of a project site located at 367 West Main Street, Ste. 353-D in the City’s Corridor Mixed Use – West Main Street zone and has undergone a comprehensive review by City departments, including the City Planning Division, Engineering Division, Public Works Department, Fire Department, Building Division, and the City Police Department. The applicant's location and proposed operation are consistent with applicable zoning and development standards, and a preliminary Security Plan has been submitted and reviewed by the Woodland Police Department and a final plan shall be approved prior to operation.

As part of the review process, an Operating Agreement (Attachment 3) has been negotiated between the City and the applicant. This agreement will be reviewed by the City Council and will incorporate the commitments outlined in the Community Benefit Plan and Social Policy and Local Enterprise Plan. These documents are attached to the operating agreement for reference as part of permitting and annual reporting.

In conformance with Woodland Municipal Code (WMC) Section 17.84.120, a highly visible posting measuring 4 feet by 8 feet has been displayed on the project site, notices were sent to property owners and tenants within a 600-foot radius of the site, and a notice of the meeting was published in the local newspaper twelve days before the City Council meeting date.

The purpose of this hearing is for City Council to review and make a determination on the application and the corresponding operating agreement.

Upon issuance of a Conditional Use Permit and prior to operating, the applicant will be required to obtain a City Cannabis Business Permit and corresponding City Building Permits for tenant improvements necessary for the proposed operation.

Background:

On December 5, 2017, the City Council approved Ordinance 1629, adding Article 21.6 (now Section

17.84.120) to Chapter 25 (now Chapter 17) of the Municipal Code, which regulates the zoning of commercial cannabis. At the same time, the City Council approved Ordinance 1630, adding Chapter 13A (now Chapter 5.28) to the Municipal Code, establishing regulations for commercial cannabis business permits. These regulations allowed for up to six conditional use permits for manufacturing, distribution, and testing cannabis operations within Industrial or Industrial/Light Industrial Flex Overlay zones as defined in the General Plan.

On June 7, 2022, the City Council amended Chapter 17.110 (now Section 17.84.120) through

Ordinance 1685 and Chapter 5.28 through Ordinance 1686, updating the regulations for cannabis retail businesses, which now authorizes City Council to consider up to four retail cannabis conditional use permits, allowing the sale of cannabis at authorized storefront retail cannabis dispensary locations, with the option for delivery from these locations. These four permits may be issued in designated commercial and corridor mixed-use zones.

On February 27, 2023, the City issued a request for applications, inviting interested parties to participate in the selection process for a Preliminary Cannabis Business Permit to authorize applicants to apply for a Retail Cannabis Conditional Use Permit and enter into Operating Agreement negotiations to establish a commercial cannabis business. Applications were to be submitted in person by 3:00 pm on April 5, 2023. The City received a total of 12 proposals.

As part of the preliminary process, which involved three phases of review, applicants were required to submit detailed plans for the safety, security, and operational characteristics of the proposed storefront retail cannabis dispensary use, including the following:
• Business Plan
• Odor Control Plan
• Tax Compliance
• Insurance
• Community Benefit Plan
• Social Policy and Local Enterprise Plan
• Security Plan
• Neighborhood Compatibility and Community Relations Plan A Proposal Review Committee was formed, consisting of staff members from the Police, Finance, and Community Development Departments, as well as a representative from HdL (consultants retained by the City for their subject matter expertise) to conduct a competitive selection process. As required by the City of Woodland Municipal Code, the Committee gave particular consideration to each proposal's capacity, capitalization, security measures, and history, as well as the community benefits offered by the proposed commercial cannabis business. After an initial review, the Committee met on July 17-18, 2023 to interview the twelve applicants for the Preliminary Cannabis Business Permit. Following the interviews, the city invited the top four ranked applicants to the fourth phase of the review process, which entails the negotiation of an Operating Agreement and application for the Conditional Use Permit. As the City Council is aware, Woodland Responsible and Compliant Retail, LLC dba Embarc Woodland filed a Petition for Writ of Mandamus and Complaint for Injunctive Relief challenging the review process for the Preliminary Cannabis Business Permits. That litigation is currently pending, but the City is moving forward with the review of the Conditional Use Permits and Operating Agreements with the top four ranked applicants in the meantime.

Planning Commission Recommendation. At its September 19, 2024 meeting, the City Planning Commission passed the following resolution evaluating the project proposal for compliance with zoning standards and land use requirements:

Planning Commission Resolution PC 24-07 (Attachment 9)(Infinity Assets Woodland Inc., dba Yolo Cannabis Club – PLNG 24-00039) by a unanimous vote (5-0-2) recommending City Council approve a Conditional Use Permit and Operating Agreement for a retail cannabis land use located at 367 West Main Street, Ste. 353-D in the city’s Corridor Mixed Use – West Main zone.

Public comments were provided to the Planning Commission for the item and have been attached

(Attachment 10). In addition to the written comments received, the Planning Commission received oral public comments from Embarc raising concerns regarding the selection process for Preliminary Cannabis Business Permits and asserting Infinity Assets Woodland was not the best applicant for a cannabis retail permit. Representatives of Infinity Assets responded to these objections, and the Planning Commission ultimately recommended approval of a Conditional Use Permit and Operating Agreement, as noted above.

Project Proposal
On August 9, 2024, Yolo Cannabis Club applied for a Retail Cannabis Conditional Use Permit. The applicant is requesting approval from the City Council for a Conditional Use Permit and Operating Agreement which will allow Yolo Cannabis Club to occupy an approximately 1,144 square foot tenant space in an existing building at 367 West Main Street, Ste. 353-D, as a storefront retail cannabis dispensary with delivery services (Attachments 4 and 6, Project Application and Site Plan). Under the terms and conditions of approval, Yolo Cannabis Club will be required to obtain a Cannabis Business Permit for a Storefront Retail Cannabis Dispensary, (Ordinance 1685 and 1686), and appropriate State Licensing (Type 10 – Storefront Retailer). A Type 10 license allows for a storefront retailer to have a physical location where cannabis goods are sold. Storefront retailers can also deliver cannabis goods.

The project estimates a total of 17 employees to manage and operate the dispensary and Yolo Cannabis Club intends to hire at least 80% of staff from Yolo County, including hiring at least 50% from the City of Woodland (i.e. “local hire”), and hiring City of Woodland residents in management positions (i.e. “locally managed”). The proposed operating hours are Monday – Sunday, from 9 am to 9 pm. Retail delivery operations shall be restricted to these same hours.

Project Site Description
Yolo Cannabis Club’s project site covers approximately 8.5 acres and includes a single multi-tenant building located at the southeast corner of the parcel. This building and the subject parcel are part of a larger commercial shopping center with multiple buildings. The subject building at 367 West Main Street is an existing one-story multi-tenant building (Attachment 6 Site Plan). The property is bordered by commercial land uses on the east and north, with County Road 98 forming the northern boundary and residential land uses to the south. The applicant is proposing to occupy Suite 353-D which is 1,144 square feet in size and is a tenant space located near the northeast corner of the building.

Interior “tenant improvements” will be made to the existing Suite 353-D; no new construction is proposed.

The property is zoned for Corridor Mixed Use-West Main Street land uses. The proposed use is permitted in this zone with the approval of a Conditional Use Permit and Operating Agreement by the City Council as the final acting body.

Community Benefit and Social Policy and Local Enterprise Plan Review Community Benefit and Social Policy and Local Enterprise Plans have been included with this report as Exhibits to Attachment 3 for the Commission’s review/reference.

Below is an overview of the Community Benefit commitments of Yolo Cannabis Club (Attachment 3):

Community Benefit Payment
Yolo Cannabis Club commits to establishing a Community Benefit Fund to support local initiatives and commits to contributing 2% of gross receipts to local 501(c)(3) non-profits active in Woodland.

Further, Yolo Cannabis Club commits to prioritizing funding towards such priority areas as public safety initiatives, youth education programs, drug addiction prevention and treatment, recreational and educational programs, and support for local artists and cultural initiatives.

Community Initiatives and Partnerships
Yolo Cannabis Club commits to focusing efforts on key areas including hunger, homelessness, education, youth development, and public services and commits to working with local organizations that are active in the City of Woodland.

Sponsorship of Community Events
Yolo Cannabis Club commits to sponsoring community events, including the Woodland Chamber Holiday Parade, Woodland 4th of July celebration, Honey Festival, Yolo County Fair, and Dinner on Main Street.

Support for Youth Activities
Yolo Cannabis Club commits to providing support to local youth-focused programs, such as Brazilian Jiu-Jitsu at Caio Terra Academy Woodland, Woodland Police Activities League, Woodland Police Department's Youth Community Police Academy, Alvarez Boxing Club, Folklorico Latino de Woodland, Woodland Opera House, CASA - Yolo Court Appointed Special Advocates, Woodland Parks Foundation.

Engagement with Local Business Groups
Yolo Cannabis Club commits to supporting local business groups, including but not limited to, Woodland Chamber of Commerce, Woodland Downtown Business Association, and Yolo County Farm Bureau.

Hosting Community Events
Yolo Cannabis Club commits to hosting community events, including but not limited to an annual block party at Heritage Plaza, Bi-annual food truck events, and local events in support of the Woodland Police Activities League.

Youth Addiction Prevention and Education
Yolo Cannabis Club is committed to supporting efforts to prevent youth addiction through the following activities:
• Providing financial and volunteer support to organizations focused on youth addiction prevention and education;
• Developing and implementing educational programs that outline the risks of youth cannabis addiction;
• Partnering with local youth organizations and schools to deliver these educational programs; • Collaborating with the Yolo County Department of Health and Human Services on initiatives like Friday Night Live (FNL); and
• Supporting Woodland Memorial Hospital’s Family Engagement & Wellness Initiative.

Employee Volunteer Program
Yolo Cannabis Club is committed to developing an Employee Volunteer program that includes the commitment to provide all employees with four paid volunteer hours per month, the commitment to developing quarterly calendars showcasing local volunteer opportunities, and the commitment to partnering with local organizations to create a diverse range of volunteer options.

Additional Community Support Programs
Yolo Cannabis Club is committed to supporting the City of Woodland community through:
• Hosting quarterly public education seminars at Woodland’s senior care facilities and retirement communities, with a focus on educating the elderly about cannabis issues, products, and safe, legal usage;
• Offering discounts for seniors and military veterans; • Providing free medicine weekly to eligible medical patients facing physical disabilities or debilitating illnesses;
• Partnering with organizations like Root & Rebound to fund and support expungement clinics in Woodland;
• Helping individuals navigate legal barriers related to past convictions; • Maintaining active membership with the Woodland Chamber of Commerce and working with local, diverse businesses and contractors for various services and supplies; • Covering the costs of continuing education and training for employees, and offering support for those pursuing adult education courses; and
• Implementing an apprenticeship program to create more opportunities for career advancement for employees.

Below is an overview of the Social Policy and Local Enterprise commitments of Yolo Cannabis Club (Attachment 3):

Local Hiring and Employment Practices
Yolo Cannabis Club is committed to establishing responsible hiring practices that focus on local and diverse talent. Yolo Cannabis Club’s commitments include:

• Hiring at least 80% of staff from Yolo County, including hiring at least 50% from the City of Woodland;
• Implementing a Diversity and Inclusion Plan that prioritizes hiring individuals from disproportionately impacted communities;
• Hosting career fairs within 90 days of license issuance to recruit local talent; and • Partnering with local educational institutions, including Woodland Community College, for recruitment and educational programs.

Employee Wages and Compensation
Yolo Cannabis Club is committed to providing fair compensation to its employees. Yolo Cannabis Club’s commitments include:
• Setting a minimum wage at 115% of the MIT Estimated Living Wage for Yolo County or 150% of the California minimum wage, whichever is higher; and • Regularly reassessing the wage structure to ensure it stays aligned with the cost of living and local economic conditions.

Continuing Education
Yolo Cannabis Club is committed to investing in employee growth and development through ongoing training and education programs. These programs cover aspects of cannabis retail operations, including customer service, compliance, security protocols, and product knowledge. Employees will have access to both internal training sessions and external educational opportunities.

Employee Engagement and Retention
Yolo Cannabis Club is committed to implementing employee engagement strategies, including regular feedback sessions, employee recognition programs, and opportunities for career advancement.

Commitment to Social Responsibility
Yolo Cannabis Club is committed to implementing sustainable business practices to minimize environmental impact. This includes energy-efficient operations, waste reduction, and the use of ecofriendly products.

Community Relations and Compatibility
Yolo Cannabis Club is committed to establishing open lines of communication with residents and businesses near its dispensary. Additionally, Yolo Cannabis Club is committed to having a community liaison who will address concerns and ensure operations are compatible with the neighborhood. Yolo Cannabis Club is also committed to conducting regular community meetings and updates to inform the public about its initiatives and changes in operations.

Support for Local Enterprises
Yolo Cannabis Club is committed to sourcing products and services from local vendors whenever possible and is committed to fostering partnerships with local enterprises to support economic growth and community development.

Security Plan
The interior of the facility will be remodeled to model Yolo Cannabis Club stores and to meet state and local requirements for the proposed operation. The facility will include a secure retail area, customer waiting area, employee offices, and storage rooms. Advanced security measures, including

surveillance cameras, electronic key card access, and a contracted security guard on site, will ensure the safety of customers and staff. Entrance will be granted only to those persons who can be identified by surveillance cameras; persons wearing disguises or articles that obscure their identity will be directed by signage and intercom to remove those items prior to entry. Security Plan includes a contracted security guard on site at all times, electronic key card access for employees, and constant surveillance. HVAC system, equipped with activated carbon filters and HEPA filters, will effectively control odors and maintain a neutral odor profile outside the building. Soundproofing materials and operational protocols will minimize noise levels. There will be no significant dust or glare generated by the operations. The dispensary will not handle hazardous or volatile materials or chemicals. All products will be stored and processed in accordance with state and local regulations to ensure safety. These and any additional security measures required by the City of Woodland Police Department shall be included in the final Security Plan approved by the Police Department and made a part of the Cannabis Business Permit.

Discussion:

Applicable Laws, Codes & Ordinances
This project is subject to several laws, codes, and ordinances as described below:
• The City of Woodland General Plan
• The City of Woodland Zoning Ordinance
• City of Woodland Cannabis Business Permit Requirements • California Environmental Quality Act (CEQA)
• Regulations of the California Department of Cannabis Control 2035 General Plan Consistency
The proposed project is consistent with various policies and actions in the General Plan; including Land Use Policy 2.A.6 (Infill Development); Policy 2.D.I (Jobs/Housing Relationship); and Policy

4.C.16 (Safety and Security).

Specifically, the project is consistent with General Plan goals and policies which encourage Woodland residents and visitors to support retail establishments that are located in the City of Woodland (Policy 4.C.8). Currently, Woodland residents and visitors do not have the opportunity to purchase cannabis products locally and instead rely on delivery services from neighboring counties and cities. Establishing storefront retailers in Woodland will gain the City some share in this market through generation of sales tax.

As previously mentioned in this report, applicants for a retail commercial cannabis conditional use permit and operating agreement were required to prepare and provide a Security Plan for proposed sites and facilities which support the deterrence of crime through site planning and design, consistent with Policy 4.C.16 (Safety and Security) and Policy 2.E.7(Public Safety and Community Design). This plan was reviewed by the City of Woodland Police Department and shall meet State requirements.

The proposed use is located on a parcel designated for commercial land uses and will operate out of an existing commercial building (Policy 2.J.I – Enhanced Design Character of Existing Centers).

Zoning Consistency
The project site is zoned Corridor Mixed Use-West Main Street. The City Corridor Mixed Use-West Main Street zone is applied to areas along commercial and mixed corridors and supports residential, retail, commercial service, office, and light industrial uses.

Pursuant to City of Woodland Municipal Code 17.36.020, Table 17.36.020-1, a Cannabis Retail use

may be established in the Corridor Mixed Use-West Main Street zone subject to use permit approval.

Development Standards
The proposed storefront retail cannabis dispensary would be established in an existing multi-tenant commercial building previously occupied by commercial uses. Tenant improvements will be made to the existing building to meet the operational requirements of the proposed use, including those outlined in the project's security plan; no new construction is proposed onsite.

The project is consistent with land use, lot coverage, landscaping, building type, building height, and setback requirements for the Corridor Mixed Use-West Main Street zone. Vehicle access to the site is provided from an existing driveway from West Main Street. At the time of tenant improvements, staff will conduct a staff-level architectural review consistent with existing practice for minor improvements to existing buildings.

Parking
The number of required off-street parking spaces for the proposed storefront retail cannabis dispensary use is consistent with the parking requirements for retail land use per City of Woodland Municipal Code Section 17.68.

The parking lot is fully paved and striped, providing adequate parking and pedestrian pathways. No modifications to the parking lot will be needed at this time.

Zoning Verification
A zoning verification was conducted as part of the associated preliminary cannabis business permit to verify compliance with the location limitations for commercial cannabis land uses established in the City of Woodland Municipal Code Section 17.84.120, which is also consistent with State requirements.

At the time of staff’s analysis of the location proposed for the storefront retail cannabis dispensary use, no known sensitive uses were identified within the minimum buffer distance of 600 feet from any property containing a school providing instruction in any grades Kindergarten through twelve (12), a day care center or a youth center, and is not within 600 feet of a public park. There were no more than two retail cannabis dispensaries within 1,000 feet of the project site. The proposed site would be more than 500 feet away from any other storefront retail cannabis dispensary use.

Conditional Use Permit Review
Conditional Use Permit (CUP) affords broad public review and evaluation of those uses which require special consideration to ensure proper integration into the community; mitigation of any potentially adverse impacts; and making the required findings to permit the use. In considering an application for a conditional use, due regard shall be given to the nature and condition of the proposed or existing use and all adjacent uses and structures and may impose such requirements and conditions with respect to location, construction, maintenance, and operation, as may be deemed necessary for the protection of adjacent properties and public interest. Conditional Use Permit analysis typically includes consideration of proposed use; hours of operation; consistency with zoning standards such as parking; compatibility with existing uses and structures in the surrounding area; and other criteria as may be deemed appropriate.

A CUP runs with the land unless the CUP is revoked. Once approved, should ownership of the land or the business change, the CUP would remain valid at the location approved.

Following a public hearing, the City Council may approve a use permit application, with or without conditions, if all the following findings can be made:

Use Permit Findings

1. The proposed use is consistent with the General Plan.

The proposed storefront retailer use would be compatible with the underlying General Plan designation and zoning district and operate similarly to other existing retail businesses subject to usespecific standards. The proposed project is consistent with various policies and actions in the General Plan; including Land Use Policy 2.A.6 (Infill Development); Policy 2.D.I (Jobs/Housing Relationship); and Policy 4.C.16 (Safety and Security).

Specifically, the project would be consistent with General Plan goals and policies which encourage Woodland residents and visitors to support retail establishments that are located in the City of Woodland (Policy 4.C.8). The preparation and provision of a security plan support the deterrence of crime through site planning and design, consistent with Policy 4.C.16 (Safety and Security) and Policy 2.E.7(Public Safety and Community Design).

The proposed use would be located on a parcel designated for commercial land uses and would operate out of an existing commercial building (Policy 2.J.I – Enhanced Design Character of Existing Centers).

2. The proposed use is consistent with the purposes of the Zoning Code, and the purposes of the applicable zone.

The proposed use would be located on a commercial site designated Corridor Mixed Use on the 2035 General Plan land use diagram and is zoned Corridor Mixed Use – West Main Street. Pursuant to City of Woodland Municipal Code 17.36.020, Table 17.36.020-1, a Cannabis Retail use may be established in the Corridor Mixed Use – West Main Street zone subject to use permit approval.

The proposed project site is not within a 600-foot radius of a school providing K-12 instruction, a daycare center, a youth center, or a public park.

The proposed retail storefront cannabis dispensary will not be located within 500 feet of another retail storefront cannabis dispensary.

3. The site is physically suitable for the type, density, intensity of the use being proposed, including access, utilities, and the absence of physical constraints.

The operations of Yolo Cannabis Club are based in retail and will not impact any other commercial retail business in the area. The project site is located within a commercial shopping center with easy freeway ingress and egress.

Yolo Cannabis Club proposes no substantial changes to the exterior of the facility, ensuring it remains consistent with the rest of the shopping center.

The parking lot is fully paved and striped, providing adequate parking and pedestrian pathways. No modifications to the parking lot will be needed at this time.

Yolo Cannabis Club will ensure the landscaping proximate to their tenant space is maintained and free of litter or debris. No modifications are proposed to the project site’s landscaping which is currently maintained by the property owner and includes mature trees within the parking lot and a number of small to medium shrubs along the exterior of the existing commercial businesses.

The interior of the facility will be remodeled to meet state and local requirements for the proposed operation. Any necessary upgrades to the HVAC system will be made to ensure there is no emittance of odor from the building.

4. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity, including transportation and service facilities.

The proposed use is compatible with the surrounding commercial area. The storefront retailer would be located within an existing commercial building similar in design, size and operating characteristics as other single-story retail and restaurant buildings along West Main Street.

No new construction is proposed onsite. The building architecture and site improvements, including lighting, landscaping, parking have previously been found consistent with land use, lot coverage, building type, building height, and setback requirements for the Corridor Mixed Use- West Main Street zone.

5. Granting the Conditional Use Permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located.

Yolo Cannabis Club is not requesting to modify the exterior of the premises as the exterior already ensures that it blends seamlessly with the surrounding area.

Yolo Cannabis Club’s security guards will monitor the site and are required to ensure there is no loitering in the area.

Yolo Cannabis Club will queue customers in a manner that will not affect any surrounding businesses during busy times and will control the ingress and egress of guest traffic inside the facility.

6. The proposed project has been reviewed in compliance with CEQA.

Staff has determined that a Class 1 Categorical Exemption (Existing Facilities) pursuant to Section 15301 of the CEQA Guidelines and a Class 32 Categorical Exemption (Infill Development) pursuant to Section 15332 of the CEQA Guidelines is the appropriate level of CEQA review for this document.

Class 1 consists of the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agencies’ determination. Class 32 exemption consists of projects characterized as in-fill development within urbanized areas. The class consists of environmentally benign in-fill projects located on sites that are less than 5 acres and consistent with local general plan and zoning requirements. The project will not have any biological, air, water, traffic, or noise impacts. The proposed use would occupy approximately 1,144 square feet of space within an existing building that has previously been occupied by commercial uses similar to the proposed project.

In addition to the CUP findings outlined above, the Cannabis Ordinance 1685 (Municipal Code

17.84.120) provides other specific factors that shall be considered by the City Council including the following:

1. The type of proposed use by the applicant.

The proposed use would be located on a commercial site designated Corridor Mixed Use – West Main Street on the 2035 General Plan land use diagram and is zoned Corridor Mixed Use – West Main Street. Pursuant to City of Woodland Municipal Code 17.36.020, Table 17.36.020-1, a Cannabis Retail use may be established in the Corridor Mixed Use – West Main Street zone subject to use permit approval.

2. Whether the proposed use will be detrimental to the health, safety and welfare of the community.

The project site is a commercial area comprised of a variety of commercial retail and service uses along West Main Street, with residential uses present further south of West Lincoln Avenue. The zoning verification conducted as part of the associated preliminary request for proposals process verified compliance with the location limitations for storefront retailers established in WMC Section

17.84.120. At the time of staff’s analysis of the location proposed for the storefront retail cannabis dispensary use, no known sensitive uses were identified within the minimum buffer distance of 600 feet from any property containing a school providing instruction in any grades kindergarten through twelve (12), a day care center or a youth center, and is not within 600 feet of a public park.

Furthermore, operation of the proposed storefront retailer in accordance with the standards established in WMC Section 5.28 as well as the applicant’s Safety and Neighborhood Compatibility Plans will ensure that a storefront retailer use at this location would not have detrimental effects on the surrounding neighborhood.

3. Whether the use would enhance the economic viability of the area in which it is proposed to be located, including adjacent and surrounding properties.

The proposed facility will provide a new source of employment and revenue for the City while remaining under close regulation and oversight by both the City and State.

At the time of approval of a Cannabis Business Permit, an application will be required to Prepare and submit a Community Benefit Plan and Social Policy and Local Enterprise Plan describing the applicant’s plans for local outreach and hiring of residents of the City of Woodland for open positions and/or compensation for continuing education, and any other actions proposed by the applicant that are intended to benefit the local workforce and/or applicant’s local employees.

4. Whether the applicant has adequately addressed potential community benefits of the use to offset potential adverse impacts.

Yolo Cannabis Club is committed to contributing 2% of their annual business gross receipts per year to active 501(c)(3) non-profits active in the City of Woodland and to hiring at least 80% of staff from Yolo County, including hiring at least 50% from the City of Woodland, and hiring Woodland residents in management. Yolo Cannabis Club is committed to creating seventeen (17) jobs. A detailed summary of their community benefit and local enterprise plan is provided above in the background section of this report and as Exhibits B and C to the Operating Agreement (Attachment 3).

5. The extent of support or opposition to the proposed use and location from members of the community, and the applicant’s plans to ensure strong community relations and compatibility with the surrounding neighborhood.

Public notice of the proposed retail cannabis use was provided to owners and tenants within a 600- foot radius of the project site, the site was posted with a highly visible notice, of a minimum four-foot by eight-foot in size mounted on a freestanding sign or posted on the building frontage, twelve (12) days before the scheduled public hearing date, and a Legal notice was published in the Woodland

Daily Democrat at least twelve days before the public hearing date.

Yolo Cannabis Club has committed to supporting and hosting a number of local community events which are outlined in detail in the Community Benefit Plan.

Yolo Cannabis Club will plan to have a Director of Community Relations who will be responsible for outreach and communication for the Woodland community and will be the liaison between Yolo Cannabis Club and the surrounding community.

Public comment received prior to the publication of this report is provided as Attachment 10.

6. The number of cannabis uses located or proposed to be located within 1,000 feet of the proposed location.

There are no cannabis uses located or proposed to be located within 1,000 feet of the proposed location at 367 West Main Street, Ste. 353-D.

7. The extent to which the proposed use would cause a further overconcentration of that particular type of use in the area.

At this time, there is no overconcentration of cannabis uses.

8. The background and history of the applicant, including the experience and qualifications of the applicant and those persons involved in the management, oversight, and day-to-day operations of the proposed use, the professional training and certifications of the applicant and/or persons involved in the management, oversight and day to day operations of the proposed use, and the nature and extent of the problems on any premises where the applicant has operated a cannabis business in the past.

Yolo Cannabis Club has an experienced team and a well-considered and documented business plan that appears to be potentially successful with an identified supply line. A detailed summary of experience and qualifications is provided in Attachment 5.

Yolo Cannabis Club’s management team includes the following:

Miguel Rodriguez, Chief Executive Officer
Miguel Rodriguez has over 20 years of experience in the cannabis industry, managing multiple licensed cannabis businesses across California.

Alicia Cotta, Chief Financial Officer & Chief Compliance Officer Alicia Cotta holds a Bachelor of Business Administration degree from Golden Gate University in San Francisco. With over 20 years of experience in financial management and compliance within the cannabis industry, Alicia has successfully overseen financial operations for multiple dispensaries.

Justin Jarin, Chief Operating Officer
Justin Jarin brings over 15 years of operational management experience in the cannabis industry. He has successfully managed day-to-day operations, ensuring compliance with state and local regulations.

Christopher Hester, Security & Facilities Director
Christopher Hester has a background in security management, particularly within high-risk industries such as cannabis. His experience includes developing and implementing comprehensive security

plans, managing security personnel, and ensuring compliance with safety regulations.

Joe Romero, Community Relations Director & Liaison
Joe Romero has extensive experience in community engagement and public relations within the cannabis industry. His role involves fostering positive relationships with the local community and addressing concerns.

Phong Tran, General Manager
Phong Tran has a strong background in retail management, with a focus on customer service and operational efficiency. As General Manager, Phong will oversee daily operations, ensuring compliance with state and local regulations, and maintaining high standards of customer service.

Rick Lobley, Director of Business Development
Rick Lobley has over 10 years of experience in business development within the cannabis industry.

His expertise includes identifying growth opportunities, developing strategic partnerships, and expanding market presence.

9. Whether there is a history of police or crime-related problems in the area of the proposed location which may be exacerbated by establishment of the proposed cannabis use.

There is no history of police or crime-related problems in the area of the proposed location, which may be exacerbated by the establishment of the proposed cannabis use.

10. Whether the proposed license would enhance recreational or entertainment opportunities in the area.

Currently, Woodland residents and visitors do not have the opportunity to purchase cannabis products locally and instead rely on delivery services from neighboring counties and cities.

Establishing storefront retailers in Woodland will provide an amenity that does not presently exist in the City.

Cannabis Business Permit Review – Municipal Code Section 5.28 The Cannabis Business Permit provides for the review of operational features for each cannabis business entity and is required in addition to a business license. A Cannabis Business Permit is required before initial operation and requires annual review. Before issuance of the Cannabis Business Permit, fees must be paid, and a Conditional Use Permit and final Operating Agreement authorized. The Cannabis Business Permit is approved by the Community Development Director.

Operating details including a Security Plan, Lighting Plan, Community Benefit Plan, Social Responsibility, and Local Enterprise Plan, as well as an Operating Agreement and Indemnification statement, are required as part of the Cannabis Business Permit review. Some of these items have been provided as part of the Conditional Use Permit review and are included as attachments.

Revocation of Permit
In the event of a violation of the terms and conditions of a retail cannabis business permit, the City may take various enforcement actions as provided under City Code Section 5.28.090 - Violations.

These actions may include fines, penalties, suspension, or revocation of the permit.

Environmental Assessment Status
Staff has determined that a Class 1 Categorical Exemption (Existing Facilities) pursuant to Section 15301 of the CEQA Guidelines and a Class 32 Categorical Exemption (Infill Development) pursuant to Section 15332 of the CEQA Guidelines is the appropriate level of CEQA review for this document.

Class 1 consists of the operation, repair, maintenance, permitting, leasing, or minor alteration of

existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agencies’ determination. Class 32 exemption consists of projects characterized as in-fill development within urbanized areas. The class consists of environmentally benign in-fill projects located on sites that are less than 5 acres and consistent with local general plan and zoning requirements. The project will not have any biological, air, water, traffic, or noise impacts. The proposed use would occupy approximately 1,144 square feet of space within an existing building that has previously been occupied by commercial uses similar to the proposed project.

Public Notification
Public notice advertising for the public hearing on this project was prepared by the Community Development Department in accordance with notification procedures set forth in the City of Woodland’s Municipal Code and State Planning Law. Two methods of public notice were used:
• Legal notice was published in the Woodland Daily Democrat on October 3, 2024, twelve days prior to the public hearing.
• Notices were mailed to all property owners and tenants within a minimum of 600 feet of the project site on October 4, 2024.
• Pursuant to City of Woodland Municipal Code 17.110.100.D., the site was posted with a highly visible notice, of a minimum four foot by eight foot in size mounted on a freestanding sign or posted on the building frontage, 10 days prior to the scheduled public hearing date on October 15, 2024.

Reviewing Agency Comments
The project has been circulated to other city divisions and departments for review as well as to agencies outside the City of Woodland who have interest in the application including, Waste Management and Yolo County. All reviewing agency comments have been integrated into the conditions of approval.

Conclusion:

Staff recommends that the City Council: 1) Receive the staff report; 2) Conduct a public hearing; 3) Find that the project is exempt from further environmental review pursuant to Class 1 and Class 32 categorical exemptions under the California Environmental Quality Act (CEQA) and find that the exemptions reflect the independent judgment of the City as lead agency under CEQA; 4) Adopt Resolution No. _____ approving a Conditional Use Permit for a storefront retail cannabis dispensary at 367 West Main Street, Ste. 353-D in the City’s Corridor Mixed Use – West Main Street zone conditioned upon approval of the appropriate Cannabis Business Permit and the recommended conditions of approval; and 5) Adopt Resolution No. _____approving an Operating Agreement between Infinity Assets Woodland Inc., dba Yolo Cannabis Club, and the City of Woodland for a cannabis retail business and Cannabis Business Permit located in the City of Woodland.

Prepared by: Anna Canales, Assistant Planner
Reviewed by: Erika Bumgardner, Deputy Director of Community Development

Attachments:

1. Proposed Resolution - Yolo Cannabis Club CUP and Conditions of Approval

2. Proposed Resolution - Yolo Cannabis Club Operating Agreement

3. Operating Agreement _ Yolo Cannabis Club

4. Project Application

5. Qualifications of Owners

6. Site Plan

7. Neighborhood Compatibility and Community Relations Plan Summary

8. Odor Control Plan

9. Resolution PC 24-07

10. Public Comments 9.19.24

11. Publication Proof

1 RESOLUTION NO. ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND,

CALIFORNIA APPROVING A CONDITIONAL USE PERMIT AND FOR A STOREFRONT RETAIL CANNABIS DISPENSARY AT 367 WEST MAIN STREET, STE. 353-D WITHIN THE CITY CORRIDOR MIXED USE WEST MAIN STREET

ZONE CONDITIONED UPON APPROVAL OF THE APPROPRIATE CANNABIS

BUSINESS PERMIT AND THE RECOMMENDED CONDITIONS OF APPROVAL WHEREAS, On June 7, 2022, the City Council approved Ordinance no 1685 and 1686 to amend City Zoning and Municipal Code to enact regulations to allow the consideration and permitting of retail commercial cannabis uses as set forth in Woodland Municipal Code section

17.84.120 which allows for consideration of up to four (4) cannabis retail conditional use permits and Chapter 5.28 of the Municipal Code to incorporate retail commercial cannabis business and operational requirements for Cannabis Business Permits; and WHEREAS, as set forth in Woodland Municipal Code section 17.84.120, proposed cannabis retailers are required to obtain a conditional use permit, subject to the recommendation of the Planning Commission and final approval of the City Council; and WHEREAS, on February 27, 2023, the City issued a request for proposals, inviting interested parties to participate in the selection process for a Preliminary Cannabis Business Permit, which would authorize applicants to apply for a Retail Cannabis Conditional Use Permit and enter into Operating Agreement negotiations to establish a commercial cannabis business, and requiring that applications be submitted in person by 3:00 pm on April 5, 2023; and WHEREAS, the City received a total of 12 proposals in response to the request for applications; and
WHEREAS, a Proposal Review Committee was formed, consisting of staff members from the Police, Finance, and Community Development Departments, as well as a representative from HdL, a consultant retained by the City for their subject matter expertise, to conduct a competitive selection process; and
WHEREAS, after an initial review of the proposals, the Proposal Review Committee met in July 2023 to interview 12 proposal teams for the Preliminary Cannabis Business Permit and subsequently awarded Preliminary Cannabis Business Permits to the top four applicants, making them eligible to apply for a Retail Cannabis Conditional Use Permit; and WHEREAS, as required by the City of Woodland Municipal Code, the Proposal Review Committee gave particular consideration to each proposal's capacity, capitalization, security measures, and history, as well as the community benefits offered by the proposed commercial cannabis business, and also considered any other factors deemed necessary by the City to maintain and promote public health, safety, and general welfare; and WHEREAS, the Proposal Review Committee ranked Infinity Assets Woodland Inc., dba Yolo Cannabis Club as 1 out of 12, with a score of 95.63%; and

Resolution No. ___
2 WHEREAS, the City of Woodland City Council hereby finds that the proposed cannabis retailer use to be located at 367 West Main Street, Ste. 353-D (“Site”), as set forth in Planning Application No. PLNG 24-00039 submitted by business applicant Infinity Assets Woodland Inc., dba Yolo Cannabis Club (“Applicant”), conforms to the requirements and intent of Chapter

17.84.120 of the Woodland Zoning Code regarding commercial cannabis uses and the City General Plan, and further that, under the circumstances of the particular case, the use will not constitute a nuisance or be detrimental to the public welfare of the community; and WHEREAS, On September 19, 2024, the Planning Commission held a duly noticed public hearing concerning the proposed cannabis retailer use to be located at 367 West Main Street, Ste. 353-D as set forth in Planning Application No. PLNG 24-00039. After the hearing, the Planning Commission recommended 5 to 0 (two absences) City Council approve the Conditional Use Permit and Operating Agreement for Retail Commercial Cannabis land use as proposed; and WHEREAS, the project is exempt from further environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 Categorical Exemption, Existing Facilities) and CEQA Guidelines Section 15332 (Class 32 Categorical Exemption, Infill Development), as the City Council of the City of Woodland finds as follows:
• The project consists of minor alterations for interior tenant improvements to operate a cannabis business that requires specific spaces to conform with state and local regulations.
• The project is located on a site that is less than 5 acres and will not have any biological, air, water, traffic, or noise impacts; and
WHEREAS, a public notice describing the proposed cannabis conditional use permit was published in the Woodland Daily Democrat, a newspaper of general circulation, and mailed to property owners and property tenants within 600 feet of the project site; and, a highly visible site posting of four (4) feet by eight (8) feet was posted in a visible location on the project site for ten (10) days before the City Council public hearing date; and WHEREAS, the City Council held a duly-noticed public hearing on October 15, 2024, as required by law to consider all of the information presented by staff and public testimony presented in writing and at the meeting.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Woodland, based on facts in the staff report, written and oral testimony, and exhibits presented, approves a Conditional Use Permit for a cannabis retail use located at 367 West Main Street, Ste. 353-D, as set forth in Planning Application No. PLNG 24-00039, prepared by Infinity Assets Woodland Inc., dba Yolo Cannabis Club based on the following findings:

SECTION 1. Recitals. The City of Woodland City Council hereby adopts the above recitals as true and correct findings of the City of Woodland City Council and incorporates them into this Resolution by this reference.

SECTION 2. Findings. In support of issuing a conditional use permit for the proposed cannabis retailer use to be located at 367 West Main Street, Ste. 353-D, as set forth in Planning