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HomeMy WebLinkAboutMOM SLO LLC1 Goren, Rebecca From:Bailey, Georgina Sent:Tuesday, February 23, 2021 9:22 AM To:Dustin Tardiff; Dietrick, Christine; Johnson, Derek Cc:Becky Hall; Hermann, Greg Subject:RE: MOM SLO LLC - Request for Approval and Amendment to CANN-0064-2019 [SLOMC 9.10.120] Hello Dustin, The City acknowledges and accepts your correspondence as notification in writing of Megan’s Organic Market MOM’s) proposal to transfer ownership between the current members of MOM,SLO:Melissa Seligman,Levi Seligman,Lindsey Law,and Keith Sweeney,to new members of MOM,Inc:Tarrah Graves,Phoebe Lipari,Allison Borges,and Jillian Cardona.Likewise,the city acknowledges and accepts your correspondence as notification in writing that MOM SLO will be completely absorbed into the MOM USA entity as part of the overall proposed action. The City will review the proposal with the Cannabis Steering Committee,who will make a determination on how to move forward with the proposal.The Steering Committee will meet next week to review this material.Once I have direction from the Steering Committee I will reach out to Dustin and Megan Souza on the determination and any subsequent next steps. The City asks that none of the proposed actions take final effect until the City reviews the proposal and communicates its decision.Consistent with Chapter 9.10.120 subsection C,any attempt to transfer without City approval is prohibited and any such action immediately voids,nullifies and terminates the commercial cannabis operator permit. Please reach out to me in the interim with any questions you may have. Georgina From:Dustin Tardiff dustin@tardiffsaldo.com> Sent:Monday,February 22,2021 3:34 PM To:Dietrick,Christine cdietric@slocity.org>;Johnson,Derek djohnson@slocity.org>;Bailey,Georgina gbailey@slocity.org> Cc:Becky Hall becky@tardiffsaldo.com> Subject:MOM SLO LLC Request for Approval and Amendment to CANN 0064 2019 SLOMC 9.10.120] This message is from an External Source. Use caution when deciding to open attachments, click links, or respond. To: Cannabis Program Coordinator, Georgina Bailey City Attorney, Christine Dietrick City Manager, Derek Johnson CONFIDENTIAL COMMUNICATION This email is to give notice to the City of San Luis Obispo pursuant to Section 9.10.120 of the SLO Municipal Code that MOM SLO, LLC dba Megan’s Organic Market at 280 Higuera Street in San Luis Obispo 2 MOM SLO”) is proposing to make a transfer under section 9.10.120(B) and, to the extent that it is required, are seeking approval to amend the current MOM SLO Commercial Cannabis Operator Permit. MOM SLO is the holder of Commercial Cannabis Operator Permit CANN-0064-2019 (“MOM SLO CCOP”), one of three retail Commercial Cannabis Operator Permits within the City of SLO. Current members of MOM SLO, Melissa Seligman, Levi Seligman, Lindsey Law, and Keith Sweeney wish to sell their respective interests in MOM SLO, which total 35%, to MOM USA, LLC, a California Limited Liability Company which is to be wholly owned by MOM, Inc. a Delaware Corporation. The individual owners of MOM, Inc. are Megan Souza, Tarrah Graves, Phoebe Lipari, Allison Borges, and Jillian Cardona - all residents of SLO County with the exception of Ms. Cardona who is currently a resident of Santa Barbara County. Megan Souza is also a current owner of MOM SLO and has already passed a background check by the City. Tarrah Graves is a current employee of MOM SLO and has also already passed a background check by the City. Ms. Borges, Ms. Lipari, and Ms. Cardona have not yet gone through the background check process of the City. MOM SLO is requesting that the MOM SLO CCOP be amended to include Tarrah Graves, Phoebe Lipari, Allison Borges, and Jillian Cardona, as that is required under section 9.10.120(B)(3), and that the current owners seeking to sell their interest in MOM SLO, Melissa Seligman, Levi Seligman, Lindsey Law, and Keith Sweeney, be removed from the MOM SLO CCOP. Additionally, Megan Souza and Eric Powers’ collective interest in MOM SLO will be completely absorbed into the MOM USA entity as part of this proposed transaction. Although City approval is not required under section 9.10.120 for this aspect of the transaction, we would request City approval for this transfer/relinquishment as well, and that the CCOP be amended to reflect the same. MOM SLO is currently, and has been, in good standing and in compliance with all applicable regulations. MOM SLO is prepared to pay any and all necessary fees and charges and/or provide all information reasonably necessary to the City of SLO upon request in order to obtain the requisite approval for the proposed transaction and amendment (SLOMC 9.10.120(B)(1)). The reason for the proposed transfer is to facilitate future growth of the MOM SLO and Megan’s Organic Market brand and business, which hopes to expand throughout California (and maybe someday beyond), while maintaining its flagship and principal place of business right here in the City of San Luis Obispo. In addition, Megan’s Organic Market is currently primarily female owned and operated, however, provided the City of SLO grants approval to the requested transfer and amendment to the CCOP, it will become 100% female owned – a goal that Megan’s Organic Market has always had. We believe that having a wholesome, fully female-owned business, with the potential and plans for tremendous statewide and national growth, and one that prioritizes community service, education, and responsible environmental stewardship, headquartered in SLO would benefit the local economy, and would be a great addition to the city’s list of homegrown business success stories. Please find attached a copy of the term sheet outlining the proposed transaction (which the parties would like to remain confidential); a copy of the Articles of Organization and most recent Statement of Information for MOM SLO, LLC; a copy of the formation documents for MOM, Inc.; and a copy of the Articles of Organization and most recent Statement of Information for MOM USA, LLC. The MOM USA, LLC statement of information attached lists Megan Souza and Eric Powers as the current managers (both are also current owners of MOM SLO LLC), however ownership will be changed as described above (i.e., MOM USA, LLC will become wholly owned by MOM, Inc.) upon approval of this proposed transaction and amendment of the CCOP. We can provide the City with those updated corporate records if/when that becomes necessary. We are excited and anxious to work towards the approval of this proposed transaction and the amendment of the MOM SLO CCOP. All current and proposed permitees are ready and available to answer any further questions or meet with the City as is needed or helpful. Please reach out to me directly at your soonest convenience to let us know what else we can do or provide to assist the City. Thank you for your consideration. 3 DUSTIN M TARDIFF ATTORNEY AT LAW 6699 Bay Laurel Place, Ste 1 Avila Beach, CA 93424 (map) dustin@tardiffsaldo.com | 805-457-4578 TARDIFFSALDO.COM