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HomeMy WebLinkAboutPure SL LLC ApplicationCITY OF SAN LUIS OBISPO Community Development Department 919 Palm Street, San Luis Obispo, CA 93401 805.781.7170 Commercial Cannabis Business Operator Permit Application 7/1/2020 A. Business Information Business Name: Property Address: Assessor Parcel Number: Zoning Designation: B. Business Type (Check all that apply) Cultivation - Specialty (Up to 5,000 Sq. Ft. Max) Cultivation - Small (5,001 - 10,000 Sq. Ft. Max) Cultivation – Nursery (Up to 10,000 Sq. Ft. Max) Manufacture (Non-volatile Raw Product Extraction) Manufacture (Cannabis Infusion) Manufacture (Itinerant – No permanent facility) Manufacturer (Research and Development) Distributor Testing Laboratory Transporter Microbusiness (No more than 50% gross receipts from cultivation, distribution and manufacturing) Microbusiness (More than 50% gross receipts from cultivation, distribution and manufacturing) Retailer Non-Storefront (Adult-use) Retailer Non-Storefront (Medical) Retail Non-Storefront (Adult-use and Medical) C.Definitions Applicant - The entity petitioning for the Cannabis Business Operator Permit. Principal(s) - The individual members of the applicant team. Primary Principal - An individual who has a 10% or greater ownership stake of the applicant business, which includes partners, officers, directors, and stockholders of every corporation, limited liability company, or general limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; the managers of the commercial cannabis business. Operator - An applicant that has been licensed and conducts or conducted active cannabis operations. Majority - A greater number; more than half. An equal number does not constitute a majority. D. Applicant Information Name of Primary Responsible Party Completing the Application: Title: DOB: Social Security No: If applicant is a not for Limited Liability Company 3355 E. Spring St., #300, Long Beach, CA 90806 Pure SL LLC 7-22-2020 Pure SL LLC 187 Tank Farm Rd., San Luis Obispo, CA 93401 Airport Overlay Area (C-S) X mail Address: Preferred method of contact (check one) Mail Phone Email E. Additional Responsible Party Information Name: Title: DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email Please attach additional sheets if there are more than 2 Responsible Parties. F. Information on Property Owner or Landlord Name: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s Statement of Consent to operate a commercial cannabis business on the property. G. Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: City or County: Start Date: End Date: Business Name: Business Type: Please attach additional sheets if necessary. X Please find all permit and license information included at the end of the application. Ric Paul X X X X Kevin Marrone Founder and Executive Vice President X X RRequired Submissions (Please check the box for each attachment) P a c P in a please submit the following documents as they pertain to your business type in bound form with a copy of this application in the front, a table of contents, and dividers for each section. Please provide one hard copy and a digital copy in a readable PDF form. please keep all explanations and descriptions brief; concise information, spreadsheets, and bullet pointed formation is encouraged. The total submittal shall not exceed more than 75 pages. For any items that do not apply, please provide a brief explanation as to why they do not apply. Copy of the Application Table of Contents Base the table of contents in the order of the Evaluation Criteria for your business type. The Criteria can be found online here and a Merit Criteria Example Sheet can be found here. Additional information below that is not directly linked to the Evaluation Criteria shall also be listed in the table of contents. (This is a list of supporting documentation that can be used to address the items listed in the Evaluation Criteria). Business Operations Plan Business Plan: A plan describing how the commercial cannabis business will operate in accordance with City code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the site. Products and Services: A list/description of the general products and services the business will provide recommend that products/services be listed within a spreadsheet format). Community Relations Plan: A plan 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. State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds (when available). Proof of Corporation Status: Provide proof of valid corporation status and doing business as (DBA), which includes the identification of an agent of service. Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s permit, and the applicant’s most recent year financial statement and tax return (for first time applicants, the business operations tax account will be set up in-house after the application has been submitted). Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cannabis business. Financial Capacity: Financial information such as bank balances, available loans and other sources of funding the enterprise. Budget: A copy of the applicant’s most recent annual budget for operations (if available). Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support (maximum 2 pages). Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by the business to the community (maximum 2 pages). Security Plan: A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the business site. The security plan must be prepared by a qualified professional. Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate security lighting for the business site (maximum 2 pages). Site and Floor Plans: A dimensioned site plan of the business site, including all buildings, structures, driveways, parking lots, landscape areas and boundaries. Also provide dimensioned floor plans for each level of each building that makes up the business site, including the entrances, exits, walls and cultivation areas, if applicable. The plans shall also include the following information about the site: current zoning, parking requirements, consistency with development standards for the zone, if new development planned for the site, and any other site development information (maximum 5 pages). Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists for the use (maximum 1 page). X X X X X X X X X Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings (maximum 2 pages). Hazardous Materials Plan: To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state and local requirements for management of such substances (maximum 2 pages). Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free power sources to provide reliable and efficient energy solutions for their business (maximum 2 pages). H. I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification of the information contained on this application. I.Indemnification I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee under the City of San Luis Obispo regulations for Commercial Cannabis Businesses, shall not become a personal liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall defend with counsel acceptable to the City), indemnify and hold harmless the City of San Luis Obis po, the San Luis Obispo City Council, and its respective officials, officers, employees, representatives, agents and volunteers from any liability, damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedings, or judgments including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) against the City to attach, set aside, void or annul, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, in any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys’ fees. J. Nonrefundable Filing Fee I, the applicant, understand and accept that the nonrefundable filling fee must be submitted with the competed Commercial Cannabis Business Operators Permit Application and will be retained by the City regardless of the out- come of the application review. K. Background – Request for Live Scan Services Fo t in I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California rm BCIA 8016, as determined by the City of San Luis Obispo, by a duly authorized business must be provided for the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and interested parties. L.Disqualification Application was received late. Application is incomplete or inaccurate. Facility does not meet City business licensing standards. More than one application is received for the same cannabis business type on one property (stacking of applications). X X X X X X X M.Applica nt’s Certific ation I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis Obispo Municipal Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the approval of the Commercial Cannabis Business Operators Permit shall, in no way, permit any activity contrary to the San Luis Obispo Municipal Code, or any activity which is in violation of any applicable law. I certify under penalty of perjury under the laws of the State of California, that I have personal knowledge of the information contained in this application, and that the information contained herein is true and correct. Signature: Date: The information contained on this document is subject to disclosure under the Public Records Act. Applicants providing false or misleading information in the permitting process will result in rejection of the application and/or nullification or revocation of any issued permit. All commercial cannabis permits must be approved by the City Council. The City may attach conditions to the permit. A commercial cannabis permit may be denied if any of the following findings are made: i) The application does not meet all requirements of the commercial cannabis ordinance; or ii) Approval would very likely result in harm to public safety, health, or welfare; or iii) Potential negative impacts of the use cannot be mitigated with conditions or through the ordinance requirements. Applicants will be notified regarding application completeness. Permits / Licenses Following is a listing of our licenses (as of 4/16/2020): Entity Name of License Jurisdiction License Number Pure CA, LLC Seller's Permit California SR AA 103-183130 Pure CA, LLC Annual Manufacturing License Type 7 Volatile Extraction (Adult and Medicinal Cannabis Products) California CDPH- 10001194 Pure CA, LLC Adult-Use and Medicinal Distribution License California C11-0000292-LIC Pure CA, LLC City of Lynwood Business License Tax Certificate Lynwood, CA 2315968 Pure CA, LLC Adult-Use and Medicinal Retailer Nonstorefront License California C9-0000072-LIC PurePenn, LLC Office of Medical Marijuana Grower/Processor Permit Pennsylvania GP-5016-17 PurePenn, LLC Office of Medical Marijuana Grower/Processor Operational Inspection Pennsylvania GP-5016-17 FSWFL LLC Nevada State Business License Nevada NV20141451857 Green Harvest (DBA) FSWF, LLC State of Nevada Medical Marijuana Cultivation Registraion Certificate- Department of Taxation Nevada 81700356720034300000 Green Harvest (DBA) FSWF, LLC State of Nevada Marijuana Cultivation Facility License- Department of Taxation Nevada 38329603677293790867 Green Harvest (DBA) FSWF, LLC State of Nevada Medical Marijuana Production Registration Certificate- Department of Taxation Nevada 84513239111237996349 Green Harvest (DBA) FSWF, LLC State of Nevada Marijuana Product Manufacturing License- Department of Taxation Nevada 65689461925309882262 FSWFL LLC Business License: City of North Las Vegas MM02 Cultivation- GS North Las Vegas, Nevada 105645 FSWFL, LLC Business License: City of North Las Vegas MM08 Production- GS North Las Vegas, Nevada 105646 Green Harvest (DBA) FSWF, LLC Business License: City of Henderson, Nevada Inter-Jurisdictional Business Henderson, Nevada 2016302571 Green Harvest (DBA) FSWF, LLC State of Nevada Sales Tax Permit- Department of Taxation Nevada 1017287406-002 Pure UT LLC Utah Medical Marijuana Pharmacy (Dispensary) License Utah RS20006 Pure UT Processing LLC Utah Marijuana Processing License Utah N/A Sapphire Enterprises, LLC City of Sacramento Cultivation Sacramento, CA 19-OP-0009-6 Sapphire Enterprises, LLC City of Sacramento Distribution Sacramento, CA 19-OP-00414-6 Sapphire Enterprises, LLC State license (CDFA) Cultivation California CCL19-0000529 Sapphire Enterprises, LLC State license (CDFA) Nursery California CCL19-0000765 Sapphire Enterprises, LLC State license (BCC) Distribution California C11-0000254-LIC 1 Table of Contents EVALUATION CRITERIA ................................................................................................................................. 3 1. COMMUNITY BENEFIT ...................................................................................................................... 3 1.1A Over 90% of employees will be San Luis Obispo County residents. (10 points) or 60% - 90% of employees will be San Luis Obispo County residents. (5 points) .......................................................... 3 1.1B Providing over 20 hours per month of community support. (5 points) or Providing 10-20 hours per month of community support. (2 points) ....................................................................................... 3 1.2A Over 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from businesses within 90 miles. (10 points) or 50% - 80% of supply and equipment expense (non- labor, non-rent expense) will be sourced from local businesses within 90 miles. (5 points) ............... 3 1.2B Provide over $1,000 per month for community support. (5 points) or Provide up to $1,000 per month for community support. (2 points) ............................................................................................ 4 1.3B Applicant can demonstrate a history of supporting local community programs for the past one years. (5 points) .................................................................................................................................... 4 2. EQUITY AND LABOR ......................................................................................................................... 5 2.1 Applicant includes 3 or more principals with 2% equity or higher who have earned at or below the median household income at the time of application. (8 points) or Applicant includes 1 or 2 primary principals who have earned at or below the median household income at the time of application. (4 points) ........................................................................................................................... 5 2.2 Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median local income for similar positions in other mainstream businesses. (8 points) or Business will have an average pay rate for entry and mid-level positions of at least 20% more than the median local income for similar positions in other mainstream businesses. (4 points) ................ 5 2.3 Base wages of employees exceed the minimum wage by at least $3.00/hr. ................................. 6 3. FINANCIAL INVESTMENT .................................................................................................................. 7 3.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain business operations. ............................................................................................................................................ 7 3.2 Applicant commits to develop raw land that has been zoned for commercial use for a commercial cannabis facility. ................................................................................................................ 8 3.3 Applicant commits to major improvements, including façade rehabilitation, building expansion, site improvements and/or other investments in an underutilized/underdeveloped site that has been zoned for commercial use for a commercial cannabis facility..................................................... 8 3.4 The proposed cannabis business site can accommodate the required number of parking spaces with safe and convenient access for customers/employees. ............................................................... 9 SUPPORTING DOCUMENTATION ............................................................................................................... 10 1. BUSINESS OPERATIONS PLAN ........................................................................................................ 10 2. COMMUNITY BENEFIT .................................................................................................................... 29 2 3. EDUCATION PLAN ........................................................................................................................... 31 4. SECURITY PLAN ............................................................................................................................... 33 5. LIGHTING PLAN ............................................................................................................................... 44 6. SITE AND FLOOR PLANS ................................................................................................................. 46 7. WATER EFFICIENCY PLAN ............................................................................................................... 51 8. ODOR CONTROL PLAN .................................................................................................................... 52 9. HAZARDOUS MATERIALS PLAN ...................................................................................................... 54 10. ENERGY EFFICIENCY PLAN .......................................................................................................... 56 APPENDIX A. Letter of Endorsement – City of Lynwood, California ......................................................... 58 APPENDIX B. Letter of Endorsement – Pennsylvania Department of Health .......................................... 59 3 EVALUATION CRITERIA 1. COMMUNITY BENEFIT A. Applicant demonstrates a commitment to City through local hiring and community support. 1.1A Over 90% of employees will be San Luis Obispo County residents. (10 points) or 60% - 90% of employees will be San Luis Obispo County residents. (5 points) Pure SL is committed to hire, contract and spend money locally. We commit to hiring San Luis Obispo SLO) residents to comprise 95% of Pure SL employees. We always aim for 100% local hiring, however this is sometimes not possible. As such, In the event we are unable to hire 100% from with the City of San Luis Obispo, we will extend the candidate search to include residents within San Luis Obispo County. 1.1B Providing over 20 hours per month of community support. (5 points) or Providing 10-20 hours per month of community support. (2 points) Pure SL will provide 25 or more hours of community support per month, equating to 300 hours per year! To support the SLO community, Pure SL will partner with several local agencies to identify community needs and volunteer efforts including Restorative Partners, The United Way of San Luis Obispo County, The County of San Luis Obispo Department of Social Services, Woods Humane Society and The San Luis Obispo Food Bank, to name a few. Pure SL will encourage employee involvement and participation in our neighborhood by providing every employee with two days of paid Volunteer Time Off (VTO) annually to volunteer at an organization of their choice in the community. Our VTO policy results in additional money and manpower being donated to our local communities. Please find a letter of endorsement from the City of Lynwood, California (included as Appendix A) as evidence of the positive impact Pure SL is committed to implementing in San Luis Obispo, as well as a letter of endorsement from the Pennsylvania Department of Health (included as Appendix B). 1.2A Over 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from businesses within 90 miles. (10 points) or 50% - 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from local businesses within 90 miles. (5 points) Pure SL will aim to source 100% of supply and equipment expense (non-labor, non-rent expense) from businesses within 90 miles of San Luis Obispo for items such as office furniture, office supplies and our delivery fleet (Toyota Prius). We have been successful with local sourcing in both Pennsylvania and California. We do not anticipate any non-labor, non-rent expense items that would need to be purchased outside of the 90-mile radius. 4 B. Continued support of community programs in San Luis Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to youth programs). 1.2B Provide over $1,000 per month for community support. (5 points) or Provide up to $1,000 per month for community support. (2 points) Pure SL will establish an independent 501(c)3 community benefit organization (CBO) with a mission of supporting and improving the City and its residents. The CBO will have a board of directors that includes representation from the Mayor, City Council, multiple local resident and business populations, and Pure SL. We will finance the CBO through a contribution of up to $15,000 per year, or approximately $1,250 per month. The CBO will create a Board in which to discuss funding for the SLO public parks, the San Luis Coastal Unified School District, as well as additional areas of local concern including social services, infrastructure, economic development, housing and homeless services, and others identified by the community. Additionally, we would like to sponsor community events. The Board will determine the best use and allocation of these funds. We have successfully managed a CBO in McKeesport, Pennsylvania. The "McKeesport Community Fund" provides monetary resources for residents and stakeholders to improve their neighborhoods and schools through education and job training; at-risk and special needs youth; projects to improve infrastructure, removing blight, affordable housing; legal services; local entrepreneurship and economic development; drug treatment and sober living; and healthcare assistance. Key constituents from the Board decided on the best use of the funds. 1.3B Applicant can demonstrate a history of supporting local community programs for the past one years. (5 points) Pure SL’s parent company, Moxie, has been managing The McKeesport Community Fund of The Pittsburgh Foundation since 2017 under company name “PurePenn LLC.” We have a history and a commitment to fostering the well-being of the community and giving a portion of revenue back to the community to support revitalization. The McKeesport Community Fund provides monetary resources for residents and stakeholders in order to improve their neighborhoods and schools as they deem fit through education and job training; at-risk and special needs youth; projects to improve infrastructure, removing blight, affordable housing; legal services; local entrepreneurship and economic development; drug treatment and sober living; and healthcare assistance. McKeesport’s mayor and elected leaders view responsible economic development opportunities as a public/private partnership. We’ve worked with them closely and we are committed to the relationship for the long term. Approximately $50,000 is donated annually to McKeesport community organizations through strategic grantmaking. For more information on The McKeesport Community Fund, please visit: https://pittsburghfoundation.org/mckeesportcommunityfund. Please find a letter of endorsement from the City of Lynwood, California (included as Appendix A) as evidence of the positive impact Pure SL is committed to implementing in San Luis Obispo, as well as a letter of endorsement from the Pennsylvania Department of Health (included as Appendix B). 5 2. EQUITY AND LABOR Applicant commits to equity ownership and competitive compensation in comparison to other mainstream commercial businesses. Applicants commitment will be confirmed during annual permit renewal process. Pure SL commits to: Exceeding the minimum wage by at least $per hour; An average pay rate for entry and mid-level positions of the median local income for similar positions in other mainstream businesses; Providing a living wage of at least a minimum of the stated minimum wage for full - time employees, including a benefit package with education, health benefits and bonuses; Continuing to work with the Chamber of Commerce and the San Luis Obispo County Chapter of SCORE to identify social equity partners; and Identifying potential employees who are at or below the median household income in San Luis Obispo by reaching out to local organizations, such as Restorative Partners, The United Way of San Luis Obispo County and The County of San Luis Obispo Department of Social Services. 2.1 Applicant includes 3 or more principals with 2% equity or higher who have earned at or below the median household income at the time of application. (8 points) or Applicant includes 1 or 2 primary principals who have earned at or below the median household income at the time of application. (4 points) Although we have not yet identified social equity partners, Pure SL we have made the following efforts and progress in finding partners to work with: We contacted the San Luis Obispo Chamber of Commerce; and We contacted the San Luis Obispo County Chapter of SCORE. If we are awarded a license, as part of our hiring process, we plan to reach out to the following to identify potential employees in need of jobs who are at or below the median household income in San Luis Obispo (as identified here: https://www.slocity.org/home/showdocument?id=23428): Restorative Partners; The United Way of San Luis Obispo County; and The County of San Luis Obispo Department of Social Services. 2.2 Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median local income for similar positions in other mainstream businesses. (8 points) or Business will have an average pay rate for entry and mid-level positions of at least 20% more than the median local income for similar positions in other mainstream businesses. (4 points) Pure SL commits to an average pay rate for entry and mid-level positions of the median local income for similar positions in other mainstream businesses as follows: 6 Pure SL Positions EDD Equivalent Position # of Positions Direct to Consumer Lead Sales Representative Will likely scale up to Delivery Drivers. Additionally, for full-time employees, Pure SL will provide a benefit package with education, health benefits and bonuses. We plan to have an option pool to issue to employees. 2.3 Base wages of employees exceed the minimum wage by at least $ Pure SE will commit to per hour (for employers with 25 employees or less) by $hour for a base wage of $per hour. To meet the California minimum wage rate schedule, this base wage will increase as follows: $per hour 2022). For full-time employees, we provide a living wage of at least above the stated minimum wage for full-time employees, including a benefit package with education, health benefits and bonuses. 7 3. FINANCIAL INVESTMENT Applicant has plans and capital to support a vibrant business within the City. 3.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain business operations. Pure SL is fully capitalized by our parent company, MXY Holdings, LLC. As evidence of this capitalization, please see the following bank statement attesting to MXY Holding’s liquid capital of over $ TORREY PINES BANK Torrey Pines Bank, a division of Western Alliance Bank. Member FDIC. PO Box 26237 • Las Vegas, NV 89126-0237 Return Service Requested MXY HOLDINGS LLC 3355 SPRING ST SUITE 300 LONG BEACH CA 90806-2447 Last statement: May 31, 2020 This statement: June 30, 2020 Total days in statement period: 30 Page 1 of 11 0) Direct inquiries to: 877-476-2265 Torrey Pines Bank 601 W 5TH Street Suite 100 Los Angeles CA 90071 EFFECTIVE JULY 1, 2020, OUR FUNDS AVAILABILITY POLICY WILL CHANGE. IF WE DELAY FUNDS ON A CHECK YOU DEPOSIT, THE AMOUNT MADE AVAILABLE TO YOU ON THE FIRST BUSINESS DAY AFTER YOUR DEPOSIT WILL INCREASE FROM 200 TO $225. ALSO, CHECKS DEPOSITED IN EXCESS OF $5,525 MAY BE SUBJECT TO LONGER DELAYS (INCREASED FROM $5,000). FOR MORE INFORMATION, PLEASE CONTACT YOUR LOCAL BRANCH. Analyzed Business Checking Account number CHECKS Number Date Amount Number Date Amount 8 Following is the corporate entity structure for Pure SL LLC: 3.2 Applicant commits to develop raw land that has been zoned for commercial use for a commercial cannabis facility. We are going to develop the existing site to improve the property for use as a non-storefront retail business. Our proposed property at 187 Tank Farm Road, San Luis Obispo is an existing structure that is appropriately zoned in the Airport Overlay Overlay Area (C-S). We commit to building out the interior to accommodate a delivery business with enhanced lighting and security features. On the exterior, drought- resistant plants would be added on the exterior to enhance the overall appearance. 3.3 Applicant commits to major improvements, including façade rehabilitation, building expansion, site improvements and/or other investments in an underutilized/underdeveloped site that has been zoned for commercial use for a commercial cannabis facility. Pure SL commits to major improvements, including façade rehabilitation, building expansion, site improvements and/or other investments in an underutilized/underdeveloped site located at 187 Tank Farm Road that has been zoned for commercial use for a commercial cannabis facility. We will build out the facility to include office space, a secure product storage room with access restrictions, a shipping / receiving room, a break room, and a general area for packaging and fulfillment. as additional interior and exterior lighting for each area. Pure SL will maintain the integrity of the current location in order to prevent the non-storefront retail facility from causing any negative aesthetic on the neighborhood. Our goal is to make the location appear just like any other business and not draw unneeded attention to the proposed site. There will not be signage containing any logos or information that identifies, advertises, or lists the services or the products offered. 9 Prior to opening, we will hire local area contractors to help us with site improvements such as general contracting for demo and construction, landscaping, security, computer and server equipment, electrical and HVAC upgrades, fire safety improvements and interior furnishings. We have successfully built out properties in both Pennsylvania and California. 3.4 The proposed cannabis business site can accommodate the required number of parking spaces with safe and convenient access for customers/employees. Our non-storefront retail property will accommodate more than the required number of parking spaces we need approximately 5 parking spaces per shift) with safe and convenient access for employees and vendors. The landlord will provide 7 unreserved parking spaces per City code for Pure SL’s use. There will be no retail sales to customers on the premises and, as such, no need for customer parking. Additionally, there is one roll-up door to accommodate deliveries. The following architectural site plan shows the parking lot: 10 SUPPORTING DOCUMENTATION 1. BUSINESS OPERATIONS PLAN Business Plan: A plan describing how the commercial cannabis business will operate in accordance with City code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the site. Transporting Cannabis Delivery Hours Hours of delivery will be limited PST. There will be no deliveries between the hours of Pacific Time. Inventory Ledger Before leaving the facility, our delivery drivers will have a provided to the delivery driver. For each After each customer delivery, the delivery inventory ledger will be updated to reflect the current inventory in possession of the delivery driver and maintained electronically. (§ 5418) Delivery Request Receipt A delivery request receipt will be prepared for each delivery of cannabis goods and will contain the following information: 11 Delivery Route While making deliveries of cannabis goods, Pure SL’s delivery employee Delivery Policies and Procedures Pure SL will adhere to the following delivery policies and procedures: o All delivery customers must provide a valid proof of identification. Persons 21 years of age or older may purchase adult-use cannabis goods. Persons 18 years of age or older may purchase medicinal cannabis goods with a valid physician’s recommendation. o Delivery employees must verify the age by inspecting a valid form of identification of all delivery customers, in person, before they complete delivery of the cannabis goods. o Delivery must be made to a physical address that is not on publicly owned land, a school, a day care, or a youth center. o During delivery, the employee must carry a copy of the retailer’s license, the employee’s government-issued identification, and an identification badge provided by the licensed retailer. o The delivery employee will o A delivery request receipt must be prepared for each delivery of cannabis goods and contain all the items listed in the Bureau of Cannabis Control section § 5420. o Delivery will be made in person by a direct employee of Pure SL. No deliveries will be made by an independent contractor, third-party courier service, or an individual employed through a staffing agency. o Delivery will be made using an enclosed motor vehicle equipped with a GPS device and secure storage for cannabis goods. o Any vehicle used by Pure SL is for the purpose of delivery. Delivery Employees All deliveries of cannabis goods will be performed by a delivery employee who is directly employed by Pure SL. Delivery employees will be at least 21 years of age. All deliveries of cannabis goods will be made in person. A delivery of cannabis goods will not be made through the use of an unmanned vehicle. The process of delivery begins when the delivery employee leaves our premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to our premises after delivering the cannabis goods, or attempting to deliver cannabis goods, to the customer(s). During the process of delivery, our delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops. 12 Delivery employees must, during deliveries, carry a copy of Pure SL’s current license, the employee’s government-issued identification, and a Pure SL identification badge. Prior to providing cannabis goods to a delivery customer, delivery employees will confirm the identity and age of the delivery customer. Pure SL will maintain an accurate list of our delivery employees and will provide the list to the City and the Police Department upon request. Delivery Vehicles us achieve sustainability goals and lower cost of ownership while helping SLO and surrounding areas improve air quality and reduce noise levels. Pure SL delivery employees, carrying cannabis goods for delivery, will only travel in an enclosed motor vehicle. Our vehicles will not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only employees of Pure SL for whom delivery is being performed will be in the delivery vehicle. While carrying cannabis goods for delivery, our employees will ensure the cannabis goods are not visible to the public. Delivery employees will not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Delivery vehicles will be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device will be owned by Pure SL and used for delivery only. The GPS device will be permanently or temporarily affixed to the delivery vehicle and will remain active and inside of the delivery vehicle during delivery. At all times, Pure SL will be able to identify the geographic location of all delivery vehicles that are making deliveries and document the history of all locations traveled to by a delivery employee while engaged in delivery. This information will be provided to the City and Police Department upon request. Upon request, we will provide the City and Police Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification number, license plate number and Department of Motor Vehicles registration information. We will train our delivery employees to understand that any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the City or Police Department and may be stopped and inspected at our premises or during delivery. (§ 5417) A distinct number will be assigned to each delivery employee employed by Pure SL that allows us to identify the employee in documents or records by using the employee number rather than the employee’s 13 full name. These records will be maintained in Metrc system and made available to the City and SLO Police Department upon request. Insurance At all times, Pure SL will carry and maintain commercial general liability insurance in the aggregate in an amount no less than $for each loss from an insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance. (§ 5308) The following transport vehicle information will be provided to the City and police department for any vehicles used to transport cannabis: Proof that Pure SL is the registered owner under the Vehicle Code for each used to transport cannabis goods. The year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for each vehicle and trailer used to transport cannabis goods. Proof of insurance for each vehicle used to transport cannabis goods. (§ 5312) Cannabis Delivered to Facility For cannabis and cannabis products delivered to our facility, we will contract with a licensed distributor or a licensed microbusiness authorized to engage in distribution. We will accept shipments of cannabis goods only between the hours Our non-storefront delivery/secure storage entrance is not available for use by the public. Cash Handling Secure Storage Cash Handling 14 Cash Counting Daily Reconciliation If we identify an imbalance in the amount of cannabis after the daily reconciliation or through other means due to theft, criminal activity, or suspected criminal activity, we will immediately determine how the reduction occurred and take and document corrective action. after the first discovery of the reduction due to theft, criminal activity, or suspected criminal activity, we will inform the City and SLO Police Department in writing of the theft, criminal activity, or suspected criminal activity. We will retain all bank records for a period of seven (7) years. Inventory Control As an organization backed by multistate operators with experience operating across the country, Pure SL’s leadership has tremendous experience with seed-to-sale track and trace systems. To ensure complete traceability, we will ensure that every product sold at our facility is traceable and tracked from receipt to the time of sale or destruction in the system using Metrc. Our Inventory Manager will successfully complete all required track and trace system training, including any orientation and continuing education and will ensure that each user is trained on Metrc prior to its access or use. The Inventory Manager maintain a complete, accurate, and up-to-date list of all Metrc system users, consisting of their full names and usernames. (§ 5048) We will record in the track and trace system all commercial cannabis activity, including: Packaging of cannabis goods. Sale and transfer of cannabis goods. Transportation of cannabis goods to a licensee. Receipt of cannabis goods. Return of cannabis goods. Destruction and disposal of cannabis goods. Laboratory testing and results. Name and type of the cannabis goods. Unique identifier of the cannabis goods. Amount of the cannabis goods, by weight or count, and total wholesale cost of the cannabis goods, as applicable. Date and time of the activity or transaction. Name and license number of other licensees involved in the activity or transaction. GPS device information identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. If cannabis goods are being destroyed or disposed of, the following will be recorded in Metrc: The name of the employee performing the destruction or disposal. 15 The reason for destruction and disposal. The entity disposing of the cannabis waste. Description for any adjustments made in the track and trace system, including, but not limited to: o Spoilage or fouling of the cannabis goods. o Any event resulting in damage, exposure, or compromise of the cannabis goods. We will enter and record complete and accurate information into the track and trace system and will correct any known errors entered the system. (§ 5049). We will reconcile the physical inventory of cannabis goods at our premises with the records in the database at least once every For any discrepancies between our physical inventory and the track and trace system database (the difference in actual inventory compared to records pertaining to inventory of at least 3 percent of the average monthly sales), we will conduct an audit, and notify the City and the SLO Police Department. (§ 5051) Documentation for data or information entered into the track and trace system will be retained in our records for at least seven (7) years and made available to the City and SLO Police Department upon request. (§ 5424; § 5037) Products and Services: A list/description of the general products and services the business will provide (recommend that products/services be listed within a spreadsheet format). Products Pure SL will store and deliver the following products: Products Types Description Concentrates Shatter Most commonly consumed through flash-vaporization or “dabbing”. Allows less use for more effect and better result, no residual contaminants from the plan, no lingering smoke stink, no combustion. Batter Sauce Vape Pens / Cartridges Elite Cartridge For consumption through vaporization and easily transported for on-the- go use. No impurities, 510 threaded, highly concentrated, high potency. Live Resin Pen (LRP) Capsules and Oils Capsules May be consumed through vaporization, oral ingestion, topical use or as a sub-lingual. No impurities, no heat needed for medicinal effects and is much easier to give measurable doses. Syringe Tincture Cannabis- Infused Gummies Pina Colada, Melonwreck, Member Berry, Pineapple Express, Blue Raspberry. Services Pure SL services will include: Online Store Identification Verification Delivery (quick delivery, or select a later date) Loyalty Rewards Product Returns 16 Customer Support Community Relations Plan: A plan 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. Pure SL will hire a qualified local individual from within San Luis Obispo to serve as our Community Liaison. Our Community Liaison will attend public meetings and health fairs, address any questions about the facility, and educate the public on facility operations and the health benefits for qualified patients. We will provide key community stakeholders, including residents and businesses within 1,000 feet of our facility, with contact information for our Community Liaison and an alternate staff member to reach if anyone has questions or concerns about our operations. We will provide a 24/7 hotline for calls after business hours. Messages will be responded to within one (1) business day, per company policy. Additionally, Pures SL owners, Jordan Lams and Kevin Marrone, can be contacted as follows: Jordan: ( Kevin: ( Our Community Liaison will visit with other tenants located at our proposed facility location of 187 Tank Farm Road to explain Pure SL’s policies and procedures and address any concerns they may have. Tenants include: 7 Sisters Brewing Co LLC, Firma Consultants, Habitat For Humanity Restore, Kelly-Moore Paints, Kohana Pharmacy & Center for Regenerative Medicine, Matt Clark Tile & Stone and Therapies To Grow On. Our Community Liaison will develop a communications plan to regularly interact with residents and inform community stakeholders of our operations and initiatives. We plan to use our website and social media outreach to include responses to frequently asked questions as well as to provide our contact information. The Community Liaison will hold quarterly meetings, open to the public, to answer questions or concerns, deliver information about the facility, and interact with members of the community in a consistent and neighborly way. The quarterly meetings will provide a good opportunity for u s to receive feedback, respond to questions, review our quality assurance protocols and share information about our progress. These meetings also provide an excellent forum to share and discuss medical research, news, and addiction and treatment information associated with cannabis. State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds (when available). The following represents a selection of our current holdings and achievements by state: California: Awarded first and second state licenses Licensed for vertical integration Ranked as the 2018 Brand of the Year Operating an 11,000 SF Type-7 Manufacturing and Distribution Center located in central Los Angeles County Cannabis cultivation facility in Sacramento Florida: 17 Manage and operate a network of 2 cultivation and manufacturing facilities and 21 retail locations with a network of delivery operations. Pennsylvania: Awarded 1 of 25 available Grower / Processor licenses 35,000 SF built out and operational and an additional 90,000 SF in progress. Nevada: Operate an 11,000 SF cultivation facility and a 10,000 SF manufacturing facility in Northern Las Vegas. Utah: Awarded 1 of 14 medical pharmacy licenses to operate in Payson, Utah Arizona: Brand licensing deal with a 2,000,000 sq. ft. facility in operation Ohio: Awarded state Processing License in January 2019 Michigan: Ultra-engineered hybrid greenhouse in Marshall New Jersey: Joint venture executed with one of twelve existing vertically integrated Alternative Treatment Centers Additionally, we have pending applications in Illinois, West Virginia, Maryland and New Jersey. Permits / Licenses Following is a listing of our licenses (as of 4/16/2020): Entity Name of License Jurisdiction License Number Pure CA, LLC Seller's Permit California SR AA 103-183130 Pure CA, LLC Annual Manufacturing License Type 7 Volatile Extraction (Adult and Medicinal Cannabis Products) California CDPH- 10001194 Pure CA, LLC Adult-Use and Medicinal Distribution License California C11-0000292-LIC Pure CA, LLC City of Lynwood Business License Tax Certificate Lynwood, CA 2315968 Pure CA, LLC Adult-Use and Medicinal Retailer Nonstorefront License California C9-0000072-LIC PurePenn, LLC Office of Medical Marijuana Grower/Processor Permit Pennsylvania GP-5016-17 PurePenn, LLC Office of Medical Marijuana Grower/Processor Operational Inspection Pennsylvania GP-5016-17 FSWFL LLC Nevada State Business License Nevada NV20141451857 Green Harvest (DBA) FSWF, LLC State of Nevada Medical Marijuana Cultivation Registraion Certificate- Department of Taxation Nevada 81700356720034300000 Green Harvest (DBA) FSWF, LLC State of Nevada Marijuana Cultivation Facility License- Department of Taxation Nevada 38329603677293790867 Green Harvest (DBA) FSWF, LLC State of Nevada Medical Marijuana Production Registration Certificate- Department of Taxation Nevada 84513239111237996349 Green Harvest (DBA) FSWF, LLC State of Nevada Marijuana Product Manufacturing License- Department of Taxation Nevada 65689461925309882262 FSWFL LLC Business License: City of North Las Vegas MM02 Cultivation- GS North Las Vegas, Nevada 105645 FSWFL, LLC Business License: City of North Las Vegas MM08 Production- GS North Las Vegas, Nevada 105646 Green Harvest (DBA) FSWF, LLC Business License: City of Henderson, Nevada Inter-Jurisdictional Business Henderson, Nevada 2016302571 Green Harvest (DBA) FSWF, LLC State of Nevada Sales Tax Permit- Department of Taxation Nevada 1017287406-002 Pure UT LLC Utah Medical Marijuana Pharmacy (Dispensary) License Utah RS20006 Pure UT Processing LLC Utah Marijuana Processing License Utah N/A Sapphire Enterprises, LLC City of Sacramento Cultivation Sacramento, CA 19-OP-0009-6 Sapphire Enterprises, LLC City of Sacramento Distribution Sacramento, CA 19-OP-00414-6 Sapphire Enterprises, LLC State license (CDFA) Cultivation California CCL19-0000529 Sapphire Enterprises, LLC State license (CDFA) Nursery California CCL19-0000765 Sapphire Enterprises, LLC State license (BCC) Distribution California C11-0000254-LIC 18 A copy of the licenses is included on subsequent pages. Bureau of Cannabis Control 833) 768-5880 Adult-Use and Medicinal - Distributor License LICENSE NO: C11-0000292-LIC LEGAL BUSINESS NAME: Pure CA, LLC PREMISES: 2990 MARTIN LUTHER KING JR. BLVD LYNWOOD, CA 90262 VALID: 6/10/2019 EXPIRES: 6/9/2020 Bureau of Cannabis Control 833) 768-5880 Adult-Use and Medicinal - Retailer Nonstorefront License Provisional Delivery LICENSE NO: C9-0000072-LIC LEGAL BUSINESS NAME: Pure CA, LLC PREMISE: 2990 MARTIN LUTHER KING JR. BLVD LYNWOOD, CA 90262 VALID: 6/10/2019 EXPIRES: 6/9/2020 Non-Transferable Prominently display this license as required by Title 16 CCR § 5039 19 DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR W HICH ISSUED CALIFORNIA STATE BOARD OF EQUALIZATION SELLER'S PERM IT ACCOUNT NUM BER 12 / 04 / 2017 SR AA 103 - 183130 PURE CA , LLC 2990 MART I N LUTHER K I NG JR BLVD LYNWOOD , CA 90262 - 1830 NOTICE TO PERM ITTEE: You arerequiredto obey all Federaland Statelaws that regulate or control your business.This perm itdoes not allow you to do otherwise. IS HEREBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE PERSONAL PROPERTY AT THE ABOVE LOCATION. THIS PERMIT IS VALID ONLY AT THE ABOVE ADDRESS. THIS PERM IT IS VALID UNTIL REVOKED OR CANCELED AND IS NOT TRANSFERABLE.IF YOU SELL YOUR BUSINESS OR DROP OUT OF A PARTNERSHIP,NOTIFY US OR YOU COULD BE RESPONSIBLE FOR SALES AND USE TAXES OW ED BY THE NEW OPERATOR OF THE BUSINESS. Not valid at any other address For generaltax questions,please callour Custom er Service Center at 1-800-400-7115 (TTY:711). For inform ation on your rights,contact the Taxpayers'Rights Advocate office at 1-888-324-2798 or 1-916-324-2798. BOE-442-R REV.16 (11-14) CALIFORNIA DEPARTM ENT OF TAX AND FEE ADM INISTRATION CANNABIS TAX PERM IT PERM IT NUM BER CD STF 095 - 000166 PURE CA , LLC 2990 MART I N LUTHER K I NG JR BLVD LYNWOOD , CA 90262 - 1830 THIS PERM IT HAS BEEN ISSUED TO YOU UNDER SECTION 34014 OF THE CALIFORNIA REVENUE AND TAXATION CODE.PLEASE RETAIN FOR YOUR RECORDS. THIS PERM IT IS NOT TRANSFERABLE. For general tax questions,please call our Custom er Service Center at 1-800-400-7115 (TTY:711). For inform ation on your rights,contact the Taxpayers’Rights Advocate Office at 1-888-324-2798 or 1-916-324-2798. CDTFA-442-CD (1-18) 20 Bureau of Cannabis Control 833) 768-5880 Adult-Use and Medicinal - Distributor License Provisional LICENSE NO: C11-0000292-LIC LEGAL BUSINESS NAME: Pure CA, LLC PREMISE: 2990 MARTIN LUTHER KING JR. BLVD LYNWOOD, CA 90262 VALID: 6/10/2019 EXPIRES: 6/9/2020 Non-Transferable Prominently display this license as required by Title 16 CCR § 5039 21 Adult-Use - Distributor License Provisional LICENSE NO: C11-0000254-LIC LEGAL BUSINESS NAME: Sapphire Enterprises, LLC PREMISE: 6260 88TH ST SACRAMENTO, CA 95828-1140 Bureau of Cannabis Control 833) 768-5880 VALID: 6/4/2019 EXPIRES: 6/3/2020 Non-Transferable Prominently display this license as required by Title 16 CCR § 5039 22 23 24 Proof of Corporation Status: Provide proof of valid corporation status and doing business as DBA), which includes the identification of an agent of service. Our entity is Pure SL LLC (formerly Moxie Pomona LLC). Please see the attached incorporation documents and the name change filing. 25 26 Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s permit, and the applicant’s most recent year financial statement and tax return for first time applicants, the business operations tax account will be set up in-house after the application has been submitted). As Pure SL is a new entity, this information is pending. Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cannabis business. At all times, Pure SL will carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss from an insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance. (§ 5308) 27 Financial Capacity: Financial information such as bank balances, available loans and other sources of funding the enterprise. Pure SL is fully capitalized by our largest shareholder, MXY Holdings, LLC. As evidence of this capitalization, please see the following bank statement attesting to MXY Holding’s liquid capital: TORREY PINES BANK Torrey Pines Bank, a division of Western Alliance Bank. Member FDIC. PO Box 26237 • Las Vegas, NV 89126-0237 Return Service Requested MXY HOLDINGS LLC 3355 SPRING ST SUITE 300 LONG BEACH CA 90806-2447 Last statement: May 31, 2020 This statement: June 30, 2020 Total days in statement period: 30 Page 1 of 11 Direct inquiries to: 877-476-2265 Torrey Pines Bank 601 W 5TH Street Suite 100 Los Angeles CA 90071 EFFECTIVE JULY 1, 2020, OUR FUNDS AVAILABILITY POLICY WILL CHANGE. IF WE DELAY FUNDS ON A CHECK YOU DEPOSIT, THE AM OUNT MADE AVAILABLE TO YOU ON THE FIRST BUSINESS DAY AFTER YOUR DEPOSIT WILL INCREASE FROM 200 TO $225. ALSO, CHECKS DEPOSITED IN EXCESS OF $5,525 MAY BE SUBJECT TO LONGER DELAYS (INCREASED FROM $5,000). FOR MORE INFORMATION, PLEASE CONTACT YOUR LOCAL BRANCH. Analyzed Business Checking Account number CHECKS Number Date Amount Number Date Amount 28 Budget: A copy of the applicant’s most recent annual budget for operations (if available). The budget is included below. Strat Plan Strat Plan Strat Plan Strat Plan Strat Plan Strat Plan Q1 '21 Q2 '21 Q3 '21 Q4 '21 2021 2022 Revenue Pure SL LLC Profit & Loss Statement (accrual basis) For the years ended Dec 2020-22 29 2. COMMUNITY BENEFIT The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support (maximum 2 pages). Local Hiring Pure SL is committed to hire, contract and spend money locally. We commit to hiring San Luis Obispo residents to comprise 100% of Pure SL employees. We estimate hiring needs to be approximately 10 employees initially and ramping up to approximately 15 employees thereafter for the following positions: Direct to Consumer Lead, Web Development Operations Manager, Ecommerce Campaign Manager, Operations General Manager, Customer Service/Driver Dispatch and Delivery Drivers. Additionally, Pure SL commits to: Exceeding the minimum wage by at An average pay rate for entry and mid-level positions of than the median local income for similar positions in other mainstream businesses; and Providing a living wage of at least a above the stated minimum wage for full - time employees, including a benefit package with education, health benefits and bonuses. Our hiring process require extensive background checks, personality tests and other interviewing techniques to ensure we match the right people with our culture. Employees will be provided with clearly defined responsibilities, clearly understood chains of authority and thorough training. Our staff will be expected to uphold Moxie’s professional brand image. Pure SL will aim to source 100% of supply and equipment expense (non-labor, non-rent expense) from businesses within 90 miles of San Luis Obispo. Prior to opening, we will hire local area contractors to help us with the following site improvements: General Contractor, Demo and Construction Signage and Landscaping Security System and Guards Computers/Servers Electrical, HVAC and Dehumidification Upgrades Vault Generator Transformer Interior Furnishings: Display Cabinets, Furniture, Desks Our local hiring plan will include: Hosting local community job fairs. Partnering with local workforce development agencies and community-based organizations to identify, screen, and help place potential candidates. Partnering with local organizations and staffing agencies to post job openings on their career websites and, where applicable, place a direct link to our recruitment portal. Conducting workforce training and ready-to-work programs either individually or in partnership with other community organizations to help prepare diverse individuals to enter the industry. Posting positions on local job boards. Partnering with our labor union to identify qualified local employees. 30 Establishing an employee referral program to incentivize employees to refer qualified family members and friends to apply for open positions. Working with local agencies to identify potential employees who are at or below the median household income in San Luis Obispo (as identified here: https://www.slocity.org/home/showdocument?id=23428) to assess interest in employment.). Community Support Community Benefit Organization Pure SL will establish an independent 501(c)3 community benefit organization (CBO) with a mission of supporting and improving the City and its residents. The CBO will have a board of directors that includes representation from the Mayor, City Council, local residents and businesses, and Pure SL. The CBO will create a Board in which to discuss funding for the SLO public parks, the San Luis Coastal Unified School District, as well as additional areas of local concern including social services, infrastructure, economic development, housing and homeless services, and others identified by the community. The Board will determine the best use and allocation of these funds. Volunteering To support the SLO community, Pure SL will partner with several local agencies to identify community needs and volunteer efforts including Restorative Partners, The United Way of San Luis Obispo County, The County of San Luis Obispo Department of Social Services, Woods Humane Society and The San Luis Obispo Food Bank, to name a few. Pure SL will encourage employee involvement and participation in our neighborhood by providing every employee with two days of paid Volunteer Time Off (VTO) annually to volunteer at an organization of their choice in the community. Our VTO policy results in additional money and manpower being donated to our local communities. Annual Food Drive Pure SL will host an annual food drive that will be specifically designed to benefit the local community. We will obtain sponsorships from our vendor partners as well as collect food and monetary donations on behalf of the community. All items collected will be distributed locally in partnership with local charities. Community Support To support local SLO restaurants, Pure SL will order lunch for delivery/takeout to our facility for employees once per week on different days so all employees, regardless of shift, have opportunities to enjoy lunch provided by local restaurants. We look forward to ordering from Firestone Grill, Woodstock’s Pizza, Old San Luis Barbecue Company, Eureka!, Thai Boat and Mama’s Meatballs, to name a few, as well as food trucks such as Taqueria 805, The Greasy Wiener and Zen Dog. Event Sponsorship Pure SL will work with the city to determine the best events to sponsor, such as Pride in the Plaza as an example. 31 3. EDUCATION PLAN A plan describing the type of cannabis education and prevention efforts that will be provided by the business to the community (maximum 2 pages). Community Liaison Pure SL will hire a qualified local individual from within San Luis Obispo, who is bilingual (Spanish speaking), to serve as our Community Liaison. Our Community Liaison will attend public meetings and health fairs, address any questions about the facility, and educate the public on facility operations and the health benefits for qualified patients. We will provide key community stakeholders, including residents and businesses within 1,000 feet of our facility, with contact information for our Community Liaison and an alternate staff member to reach if anyone has questions or concerns about our operations. Additionally, we will provide a 24/7 hotline for calls after business hours. Messages will be responded to within one (1) business day, per company policy. Our Community Liaison will develop a communications plan to regularly interact with residents and inform community stakeholders of our operations and initiatives. We plan to use our website and social media outreach to include responses to frequently asked questions as well as to provide our contact information. The Community Liaison will hold quarterly meetings, open to the public, to answer questions or concerns, deliver information about the facility, and interact with members of the community in a consistent and neighborly way. The quarterly meetings will provide a good opportunity for u s to receive feedback, respond to questions, review our quality assurance protocols and share information about our progress. These meetings also provide an excellent forum to share and discuss medical research, news, and addiction and treatment information associated with cannabis. Our Community Liaison will develop a communications plan to regularly interact with residents, on a quarterly basis, and inform community stakeholders of our operations and initiatives. We plan to use our website and social media outreach to include responses to frequently asked questions as well as provide our contact information. The Community Liaison will hold quarterly meetings, open to the public, to answer questions or concerns, deliver information about the facility, and interact with members of the community in a consistent and neighborly way. The quarterly meetings will provide a good opportunity for us to receive feedback, respond to questions, review our quality assurance protocols and share information about our progress. These meetings also provide an excellent forum to share and dis cuss medical research, news, addiction and treatment information, and the costs and benefits associated with cannabis. Quarterly meetings provide opportunities to: Keep the community informed about the operations of the facility and how future constructi on, expansion, or operations could impact surrounding areas; Provide education about the facility and type of operations taking place; Obtain community input, collaboration and participation in a manner in which our facility and employees can interact with residents and community stakeholders; and 32 Discuss company quality controls. These processes will be explained to the public so that they are made to feel comfortable in their understanding that the products and processes used to create the final product are safe, reliable and consistent. In addition to quarterly events, Pure SL will maintain an educational component on its website, available 24/7, complete with a compilation of information explaining the safety policies and procedures. All information shared publicly, via social media and other methods will be in both English and Spanish. Company Policies Through diligent management of daily operations, Pure SL will ensure that our operations will not be a nuisance to the neighbors or negatively impact the neighborhood. We have established several policies to ensure the health, safety, and welfare of the public, employees, neighboring properties and end users which our Community Liaison will share with the public as follows: Clean Street Policy We minimize nuisances such as trash, litter, and graffiti. Our security guards and personnel monitor the site and the immediate vicinity of the site to ensure that there is no loitering. No cannabis products will be visible from the exterior of the business. Prohibited Activities On-site consumption of cannabis or cannabis products is specifically prohibited at all times. There will be no retail sale of alcohol or tobacco, on-site consumption of food, alcohol or tobacco by patrons. No storage of alcoholic beverages on premises. No cannabis goods will be delivered by means or method to any person within a motor vehicle. Delivery employees shall not consume cannabis goods while working No dispersant of cannabis via diffuser or any other vaporizer device. No free samples of any cannabis or cannabis products will be distributed at any time. No commercial cannabis activities will be conducted on behalf of, at the request of, or pursuant to a contract with any person (natural or corporate) not duly licensed. Additionally, our Community Liaison will educate the community about security measures in place including hiring security personnel, vaults for product storage, video surveillance and maintaining professional partnerships with local law enforcement and emergency response agencies, allowing access to the facility as required by law and Pure SL policy. 33 4. SECURITY PLAN A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the business site. The security plan must be prepared by a qualified professional. QUALIFICATIONS 34 35 36 37 38 39 40 41 42 43 44 45 46 6. SITE AND FLOOR PLANS 47 48 49 50 51 7. WATER EFFICIENCY PLAN The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists for the use (maximum 1 page). Pure SL is dedicated to conducting its operations in a manner that is ecologically sustainable from an energy consumption, water consumption and waste generation standpoint. In furtherance of these goals, we will consult with and, as necessary, retain an Environmental or Architectural Engineer to assist with its Environmental Plan and will, at a minimum, adopt and adhere to Best Management Practices that include methods, policies and procedures. The primary water source will be municipal water. As this is a non-storefront retail facility, usage is not anticipated to be above normal for a delivery facility and primarily used for cleaning purposes such as hand washing, equipment cleaning, and toilet usage. All sinks within the building will be made automatic to reduce unnecessary water usage. Additionally, new water saving toilets will be installed in the restrooms. We will instruct, train and educate our staff on water conservation measures and techniques including: Not allowing water to run during washing/rinsing procedures when no active washing or rinsing is occurring; Using the toilet to flush and dispose of small items that are more properly disposed of using trash containers; and Identifying and reporting to appropriate management members of leaks in any portion of the water delivery, distribution and plumbing systems in and about the premises. Pure SL will employ water conserving equipment and materials, as follows: Water meter monitor including technology to identify leaks; The use of low flow equipment in sinks and toilets; and The use of cleaning agents that do not rely on water. We will train and instruct staff in the following methods for preventing discharge to sewer drains: Identification of chemicals and other substances that are inappropriate for discharge into sewer drains; Development of a spill prevention and control program; Prohibiting the use of petroleum-based cleaning products, acids, phosphates or other similar agents or solvents that may produce liquid discharge or run-off; Prohibiting the use of any products which contain heavy metals or which breakdown into heavy metals; Proper storage and segregation of all cleaning and sanitizing products to prevent leakage; Frequent sweeping of the premises; and Placement of dumpsters and other waste containers in areas that are not directly exposed to rainwater or with covers that are watertight. Drought tolerant and low water usage landscaping will be planted on the exterior. 52 8. ODOR CONTROL PLAN A detailed plan describing how the applicant will prevent all odors generated from the cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings maximum 2 pages). Pure SL will solely conduct non-storefront retail operations from our facility and, as such, there will be no odors from cultivation or manufacturing. With regards to cannabis storage, all spaces within our facility that contain cannabis goods will be equipped with a carbon scrubbing filter. These filters are highly effective at eliminating odor that could be caused from the permeation of our cannabis goods. The filters will include a powerful fan that will pull the air of the room towards the filter, pulling it through carbon (a known odor eliminator), and then reintroduced into the room (scrubbing). Inline fans are designed specifically for the task of eliminating the scent and odor of cannabis and related products. Fans are designed and configured for the size of the rooms for which they are placed in. minimize odor, we will install a VenTech fan. VenTech Fan which has been modified to establish a superior air flow and be suitable for various environments such as hospital rooms, indoor growing rooms, commercial cooling and more. The fan features a superior aerodynamic body mand of steel and construction with powder coated baked paint for stability and maximum efficiency. This activated VenTech virgin charcoal air filter effectively eliminates odors and particulates from the air. When used together with a centrifugal inline fan, it results in a clean airflow through greenhouses, hospital rooms, lavatories, and food processing facilities. Any odors emitted by the cannabis inside the facility will be eliminated prior to being exhausted from the building by this system. Odor will not be detectable from the building exterior, or from the common areas such as walkways, hallways, breezeway, foyers and lobby area. The Operations General Manager/supervisor will assess the on-site and off-site odors daily for the potential release of objectionable odors. S/he will be responsible for assessing and documenting odor impacts on a daily basis. Should objectionable off-site cannabis odors be detected by the public and we are notified in writing, the following protocols will take place immediately: 53 Investigate the likely source of the odor. Utilize on site management practices to resolve the odor event. Take steps to reduce the source of objectionable odors. Determine if the odor traveled off-site by surveying the perimeter and making observations of existing wind patterns. Document the event for further operational review. If employees are not able to take steps to reduce the odor-generating source, they are to immediately notify the Operations General Manager. If necessary we will retain a certified engineer to review the problem and make recommendations for corrective actions. All fans, scrubbers, exhaust systems, and ventilation equip ment will be regularly inspected on a monthly basis to confirm they are appropriately maintained and kept in an optimal state. The filters will be changed at a minimum of once every 365 days or as per manufacture recommendation. Regular maintenance and/or equipment upgrades will be carried out as necessary to maximize efficiency. Employees will be trained on Air Quality Best Practices including: Regular inspection of our filters and replacing the filters if it is releasing a smell near the filter effluent or has reached its lifespan according to the manufacturer’s specifications. Timing our filter replacement schedule so that filters are replaced in early May, the beginning of the ozone season. This ensures that the filter is at peak performance for VOC removal during the high ozone season resulting in the greatest public health benefits. Using a pre-filter to help preserve the life span of our carbon filters because it can capture particles before they take up surface area on the filter. Pre -filters are to be replaced every 6-8 months for proper air flow. Maintenance activities are logged and made available upon request. Records will include: Purchases of replacement carbon filters Maintenance tracking Equipment malfunctions and maintenance Scheduled and completed air quality training sessions Monitoring of administrative and engineering controls Additionally, Pure SL will have a 24/7 manned telephone number where any member of the community can call to report issues or express concerns. 54 9. HAZARDOUS MATERIALS PLAN To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state and local requirements for management of such substances (maximum 2 pages). Pure SL will not dispose of cannabis goods, unless disposed of as cannabis waste. Cannabis waste will be stored, managed, and disposed of in accordance with all applicable waste management laws, including, but not limited to, Division 30 of the Public Resources Code. (§ 5054) For purposes of our non-storefront retail operation, cannabis waste includes: Cannabis plant waste, including roots, stalks, leaves, and stems that have not been processed with solvent; and Manufactured cannabis waste, including extracted oils, paste or other manufactured products not fit for sale. Cannabis goods intended for disposal will remain at our facility until rendered into cannabis waste. We will ensure that: Access to the cannabis goods is restricted to Pure SL, its employees or agents; and Storage of the cannabis goods allocated for disposal is separate and distinct from other cannabis goods. To be rendered as cannabis waste for proper disposal, including disposal as defined under Public Resources Code section 40192, cannabis goods will first be destroyed at our facility. This includes, at a minimum, removing or separating the cannabis goods from any packaging or container and rendering it unrecognizable and unusable. We will take precautionary measures to prevent cannabis product including plant material from entering the city wastewater collection system, storm drain system or any unsecured rubbish disposal system. Additionally, cannabis waste will not be burned. Cannabis waste will be secured in a receptacle or area that is restricted to Pure SL, its employees, or an authorized waste hauler. We will report all cannabis waste activities, up to and including disposal, in the track and trace system. Throughout the waste disposal process, we will ensure there is adequate screening or other protection against the entry of pests. Rubbish will be disposed of so as to minimize the development of odor and minimize the potential for the waste becoming an attractant, harborage, or breeding place for pests. Litter and waste will be properly removed and the waste disposal systems maintained in an adequate manner so that they do not constitute a source of contamination in areas where cannabis plants or products are exposed. Bulk waste containers will be secured to prevent unauthorized access. Employees will not remove any waste from the facility. We will utilize GAIACA to remove any waste classified as hazardous waste per section 40141 of the California Public Resources Code from the facility. The Operations General Manager will inspect the item scheduled for destruction and verify that the tamper proof seal has not been compromised. Per Pure SL operating procedures, all cannabis and unusable cannabis-infused product will be weighed, recorded and entered into our inventory control 55 system prior to mixing and disposal in accordance with local and state rules and regulations. Verification of this event will be conducted in an area with video surveillance. Our standard approach to rendering cannabis unusable includes grinding and incorporating the waste with non-consumable, solid waste such that the resulting mixture is comprised of at least fifty percent non-cannabis waste. Compostable mixed waste will be mixed with food or yard waste, as well as vegetable-based grease or oils. Material utilized for non-compostable waste disposal might include paper, cardboard, and plastic waste, as well as soil. The following steps summarize our approach: Results of the destruction will be entered into the State’s Metrc track and tra ce system. The following information will be recorded: All Records of final destinations and verifiable destruction and disposal will be kept for a minimum of 7 years. 56 10. ENERGY EFFICIENCY PLAN Documentation that the applicant has identified the best way, including carbon free power sources to provide reliable and efficient energy solutions for their business (maximum 2 pages). Pure SL seeks to minimize the potential for negative impacts on people, the community, and the environment within the City if San Luis Obispo. We recognize that the reduction of energy use and maximization of energy efficiency is a proven strategy for minimizing impact to the environment, as well as cutting and controlling costs. Pure SL will implement a wide range of environmentally conscience procedures and processes in a wide range of its daily practice to improve the environmental impact the facility has on its environment. We will actively be pursuing certifications from several eco-friendly associations, such as a Leadership in Energy and Environmental design (LEED), as well as achieving as high of an ENERGY STAR score as possible. We are also using the U.S. Guiding Principles for High Performance and Sustainable Buildings models as a guiding point for its environmental policies. Additionally, Pure SL will consult with and, as necessary, retain an Environmental or Architectural Engineer to assist with its Environmental Plan and will, at a minimum, adopt and adhere to Best Management Practices that include methods, policies and procedures as follows: Carbon Offset Exceeds Consumption Recognizing the needs to be environmentally conscious and a good corporate citizen and neighbor, Pure SL has made a commitment to remain carbon neutral or carbon negative in its operations. We will achieve this by purchasing carbon offset credit equal to 110% of the facility’s total carbon footprint. The calculation of the carbon footprint includes both facility operations and vehicle transportation. The size of the carbon footprint and amount of offset credits to be purchased will increase over the setup Zero Emissions For distribution services, Pure SL currently uses Ford Transit Connect Vans and with plans to transition to the new Ford Transit 1 all-electric version anticipated for the 2022 model year. This will help us achieve sustainability goals and lower cost of ownership while helping San Luis Obispo and surrounding areas improve air quality and reduce noise levels. The new Transit model will be smart and connected with technology solutions like in-vehicle high-speed data architecture and cloud-based services to offer new ways to optimize fleet performance. For delivery services, we use the highly energy efficient Toyota Prius. Energy Usage We will be using energy-efficient systems throughout the facility. This includes the heating and cooling of the building, air flow systems, lighting, and any equipment deemed capable of reducing energy usage. As stated, we will be actively pursuing the highest ENERGY STAR score possible. Heating and Cooling The walls of the facility will be built with state-of-the-art insulation material. This improved insulation will be able to maintain temperature with a low degree of fluctuation. The insulation will reduce the amount of work the heating and cooling units have to utilize to maintain the temperature which will reduce energy usage. 57 Lighting Fixtures Alternative Energy Methods We will be investigating multiple forms of alternative energy sour ces such as solar panels on the parking lot to generate on-site renewable energy to reduce grid power consumption. Commuting Our local hiring practices ensure that transportation distances of employees to and from work are minimized and employees are incentivized to use public transportation, rideshare, bicycle or walk to and from work. Recycling and Reuse By incorporating recycling into our operations, we significantly reduce the tonnage of waste to be landfilled or burned, extending the life of landfills, increasing the efficiency of waste-to energy facilities, saving money, and deferring the cost of new disposal facilities. Recycling minimizes the environmental impact (odors, emissions, leaching) of mixed waste disposal. Natural resources are preserved when solid waste is managed as a resource. In addition, recycling has proven to be popular among people concerned about solid waste and its effect on the environment. Pure SL is currently engaged in discussions with a recycling company (Restalk) that makes paper and plastic products from plant waste materials, including stems, leaves and post-processed flower. We intend to develop an ongoing relationship with Restalk, or a similar recycling manufacturer, that will facilitate conversion of the waste materials into product packaging. Additionally, all training materials and educational materials will be printed on 100% renewable cannabis paper. We are committed to preserving environmental quality by recycling as much waste as we can. There will be blue receptacles throughout the facility for collection of recyclables such as glass, paper, and plastics. The waste in these blue receptacles will be collected daily and placed into a recycling dumpster outside the facility. To assist in our recycling efforts, we will have labeled recycling bins in the hallways, offices and public areas for commingled waste types including e-waste, plastic, metal, glass, paper and organic. When full or as needed, the bins will be emptied by janitorial/maintenance staff members, who will take the recyclables to the designated service area for each floor of the building. The recyclables will then be collected from these service areas and transported to a recycling facility. Landscaping Landscaping for the facility will utilize drought-resistant / tolerant plants to minimize watering requirements. Cleaning Supplies Only environmentally-friendly cleaning supplies will be used. 58 APPENDIX A. Letter of Endorsement – City of Lynwood, California 59 APPENDIX B. Letter of Endorsement – Pennsylvania Department of Health