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HomeMy WebLinkAbout21CV-0734 - Declaration Filed_Chad Pfarr (1)1 - DECLARATION OF MICHAEL CODRON IN SUPPORT OF OPPOSITION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2728BESTBEST& KRIEGERLLPJEFFREY V. DUNN, Bar No. 131926 jeffrey.dunn@bbklaw.com DANIEL L. RICHARDS, Bar No. 315552 daniel.richards@bbklaw.com BEST BEST & KRIEGER LLP 18101 Von Karman Avenue, Suite 1000 Irvine, California 92612 Telephone: (949) 263-2600 Facsimile: (949) 260-0972 Attorneys for Defendants and Respondents City of San Luis Obispo and City Council of and for the City of San Luis Obispo EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT CODE SECTION 6103 SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO NHC SLO, LLC, Petitioner and Plaintiffs, v. CITY OF SAN LUIS OBISPO; CITY COUNCIL OF AND FOR THE CITY OF SAN LUIS OBISPO; AND DOES 1-10, INCLUSIVE, Defendants and Respondents. Case No. 21CV-0734 Judge: Rita Federman DECLARATION OF MICHAEL CODRON IN SUPPORT OF OPPOSITION TO PLAINTIFF NHC SLO, LLC’S EX PARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE: PRELIMINARY INJUNCTION Date: January 31, 2022 Time: 8:30 a.m. Dept: 2 ELECTRONICALLY FILED 1/28/2022 5:32 PM 2 - DECLARATION OF MICHAEL CODRON IN SUPPORT OF OPPOSITION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2728BESTBEST& KRIEGERLLPDECLARATION OF MICHAEL CODRON I, Michael Codron, declare as follows: 1. I have personal knowledge of the following facts, and if called to testify thereto, I could and would do so competently. 2. I am the Director of Community Development for the City of San Luis Obispo. My office was responsible for receiving, processing, and maintaining applications and associated supporting materials for Commercial Cannabis Operator Permits. 3. On January 29, 2019, NHC SLO, LLC submitted a Commercial Cannabis Business Operators Permit Application to the City of San Luis Obispo. Attached hereto as Exhibit A is a true and correct redacted copy of that Application. 4. On January 29, 2019, NHC SLO, LLC submitted a digital Commercial Cannabis Business Operators Permit Application to the City of San Luis Obispo. Attached hereto as Exhibit B is a true and correct redacted copy of excerpts of that application. I declare under penalty of perjury under the laws of the State of California that the forgoing is true and correct. Executed this 28th day of January, 2022, at ___________, California. Michael Codron 82508.00018\34761652.1 Michael Codron Digitally signed by Michael Codron Date: 2022.01.28 09:14:17 08'00' San Luis Obispo County EXHIBIT A CITY OF SAN LUIS OBISPO Community Development Department r' 919 Palm Street, San Luis Obispo, CA 93401 805.781.7170 r Commercial Cannabis Business Operators Permit App rron A. Business Information Business Name: Natural Healing Center - SLO Property Address: 2600 & 2640 Broad Street, San Luis Obispo, CA 93401 Assessor Parcel Number: 004-925-033 & 004-925-034 Zoning Designation: C-R 004-925-035 (Proposal Will Merge Lots) B. Business •apply) Cultivation - Specialty (Up to 5,000 Cultivation - Small (5,001 - 10,000 Cultivation - Nursery (Up to 10,000 Sq. Ft. Max Sq. Ft. Max) Sq, Ft. Max) El Manufacture (Non-volatile Raw Manufacture (Cannabis Infusion) El Manufacture (Itinerant --No Product Extraction permanent facility) LJ Manufacturer (Research and Distributor Testing Laboratory Development) Retailer Storefront (Medical) El Retailer Storefront (Adult -use) Retailer Storefront (Adult -use and Medical) Retailer Non -storefront (Adult -use) I Retail Non -Storefront (Medical) Retail Non -storefront (Adult -use and Microbusiness (No more than 50% Medical Transporter Microbusiness ( More than 50% GR* GR* from cultivation, distribution from cultivation, distribution and and manufacturing) manufacturing) vI uaz nC4r_IPLZ 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 1011/6 of the stock, capital, profits, voting rights, or membership interest of the comITIercial 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: Helios Dayspring Title: Managing Member/CEO DOB: 05/ Security No: 564- applicant is a not for profit, corporation, partnership or other business entity, please identify Name of Business Entity: NHC SLO LLC Type of Ownership: Limited Liability Company Federal Tax Id: 83-3339575 Start Date: 12/11/2018 Mailing Address: 7510 Los Osos Valley Rd, San Luis Obispo, CA 93405 Primary Phone No: Email Address: helios@nhcgroverbeach.com Preferred method of contact (check one) Alt. Phone No: Mail ® Phone Email E. Additional Responsible Party Information Nicholas- Title: COO Snrinl Sarurity Nn• Mailing Address: Primary Phone No: Email Address: DOB: Alt. Phone No: Preferred method of contact (check one) Mail ® Phone ® Email Please attach additional sheets if there are more than 2 Responsible PartiesF. Information on Property Owner or Landlord Name: CK Gilbert LLC / CCKL Broad LLC Please note: Helios Dayspring has an executed purchase agreement for these properties. Mailing Address: 225 Ranchito Lane, SLO & 1305 Garden St, SLO 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 Owners Statement of Consent to operate a commercial cannabis business on the property. InformationG. Related License 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: Helios Dayspring City or County: San Luis Obispo County Start Date: 11/01/2011 End Date: 12/31/2018 Business Name: House of Holistics Corp. Business Type: Medical Delivery Service Please attach additional sheets if necessary. — Please see Section 1.05: State Licenses of the accompanying application for other cannabis business permit information. Required Submissions (Please check the box for each attachment) Please attach all applicable documents listed below as part of your application as they pertain to your business type. For any items that do not apply to your business type, please provide a brief explanation as to why they do not apply. 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. 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). 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's financial statement and tax returns (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. Budget: A copy of the applicant's most recent annual budget for operations (If available) Financial Capacity: Financial information such as bank balances, available loans and other sources of funding the enterprise. Products and Services: A list/description of the general products and services the business will provide. Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support. Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by the business to the community. 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. 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. Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists for the use. 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. 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. 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. H. H. City Authorization 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. f 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 Obispo, 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. 1. 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 I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California Form 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) M. Applicant's Certification 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 pe alty of perjury under the laws of the State of California, that I have personal knowledge of the information co d 7is pplication and that the information contained herein is true and correct. signature: 9 Date: 01/29/2019 The information cvntained thi doument 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 r-equirements 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 rega1ding application cnpipleteness COMMERCIAL CANNABIS BUSINESS OPERATORS PERMIT APPLICATION OWNER'S STATEMENT OF CONSENT If the applicant is not the owner of record of the subject site, the following Statement of Consent must be completed by the owner or the owner's authorized representative, granting the applicant permission to apply for a cannabis business operator permit. I, the undersignedynedlegalownerofrecord, here /grant permission to: Applicant: G e It`o S oL f r`/I I OG Phn e: LG 1 f Mailing Address: 516 03 OSss VAIle fz -50LiL La(s t fS o, C.14 q'jYUS To operate a commercial cannabis business on the property described below. 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 Operator 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. The subject property is located at: 2b0o 26 c4p sZoD CS -a--- Assessor' s Parcel Number: b O 72S 633 Printed Name of Owner of Record: 'L [ t 2 L Address of Owner of Record: 22 7 of Owner of Record: " p / 12. Attached Certificate CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County o 1--,M.C 3 On 11 I' before me, 1 . Date personally appear who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) Oare subscribed to the within instrument and acknowledged to me that W/ffe/they executed the same in highkt2r/their authorized capacity(ies), and that by l is+erhheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. T. Cox a Notary Public • California i San Luis Obispa County Commission p 2265076 My Comm. Expires Oct 29, 2022 r.. Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Sig ature of Notary Public OPTIONAL -- Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Docum ern . "/ n V?Z T' 4DocumentDate: t Lb a Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian of Conservator Other: Signer is Representing: 02017 National Notary Association Signer's Name: Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian of Conservator Other: Signer is Representing: EXHIBIT B NATURAL HEALING CENTER Cannabis Business Operators Permit Application City of San Luis Obispo: Retail Version 1 – Updated January 27, 2019 Helios Dayspring helios@nhcgroverbeach.com 805-888-7823 NHC SLO | CANNABISRETAIL2 COVER LETTER January 27, 2019 City of San Luis Obispo Community Development Department 919 Palm Street San Luis Obispo, CA 93401 Sincerely, Helios Dayspring Owner, Natural Healing Center Dear Applicant Review Team, Natural Healing Center (NHC), the largest and most professional cannabis operator in SLO County, is excited at the prospect of expanding to the City of San Luis Obispo. We plan to bring a world-class retail storefront that will set a new standard for cannabis operators around the state. We hope this application is just the beginning of a long and fruitful partnership with the city. NHC is a Central Coast success story, currently experiencing rapid growth through our vertically-integrated operations in cultivation, manufacturing, distribution, and retail. Our commitment to keeping our local roots is unwaivering, and if approved for a retail permit in SLO, we will be establishing our corporate headquarters in the city. We are truly committed to this community and a shared prosperity. In this application, NHC has met and exceeded all criteria in the city’s scoring guidelines. We thank you for your time and careful review. Please do not hesitate to reach out on my personal cell phone at , or that of our COO, Nick Andre, at NHC SLO | CANNABIS RETAIL 3 APPLICATION HIGHLIGHTS Experienced & Proven Local Operators 100% of primary principals have operated a compliant cannabis business in SLO County for 7 years. Operating a world-class dispensary in Grover Beach & the region’s largest cultivator. Local Hire & Sourcing Guarantee 90% or greater of employees will be SLO County residents and; a local hire preference for city residents. At least 80% of supply and equipment expense will be sourced from businesses within 90 miles. Long History of Community Giving NHC commits to a minimum of 20 hours of community service per month and; a minimum of $2,500 per month in community support. NHC has an extensive history of giving back well in excess of those levels. Well Paid Jobs & Equity 4 principals, with 3% equity each, have earned at or below the median household income. NHC’s average pay rate for entry-level and mid-level positions will be 40% above median income for similar positions in mainstream businesses. Base wages will be $3/hour over minimum wage. NHC will allow a labor peace agreement at 20 or more non-management employees. Responsible Use Messaging & Prevention Programs Advertising targeted only to those 21+, and no outdoor advertising. NHC will sponsor prevention programs and has strict policies to prevent diversion. Responsible use messaging on packaging, low dose THC options, use tracking with optional user determined quotas, posting information on cannabis use disorder and effects on adolescent brains, and more. Committed to Medical Products Medical products are our focus, with dedicated areas for non-psychoactive items. 100% Control of Site Property NHC’s primary principal owns the site property. Well Capitalized & Significant Financial Investment Access to $3.6 million in personal cash, $12.3 million in real estate equity, and a $3 million loan. Major site and building improvements, lot merger, and removal of a liquor store and its large sign. 23 parking spaces with 5 electric vehicle chargers. Net Zero Project, Public Art, Bike Racks & More NHC has designed the project to be Net Zero Energy Certified and includes; a large painted mural along the North face of the building and an abstract art piece in the parking lot. Bike racks, water refill station, and more. NHC SLO | CANNABISRETAIL4 TABLE OF CONTENTS 1. Business Operations Plan 7 1.01 Executive Summary 8 1.02 About Us 10 The NHC Team 10 Commitment to Community 19 Objectives 21 Mission 21 Core Values 22 NHC Companies Overview 24 1.03 Business Plan 26 Proposed Operation 26 Business Ownership & Legal Formation 29 Property Ownership 42 Hours of Operation 60 Store Layout/Customer Experience 60 Neighborhood Compatibility 61 Environmental Commitments 62 Products 62 Packaging 64 Operational Policies & Procedures 64 Patient Electronic Verification System 70 Voluntary User Determined Quotas 71 Prevention of Diversion to Minors 72 Inventory Control System 73 Plans for Handling Cash 75 Transportation Plan 75 Storage 76 Sanitation Procedures 76 State & Local Compliance 81 Health & Safety – Patient Education 83 Health & Safety – Other 85 Starting Staff 86 NHC SLO | CANNABIS RETAIL 5 Local Hire Preference 86 Personnel Plan 86 Training & Continuing Education Plan 87 Marketing & Advertising 92 Signage 92 1.04 Community Relations Plan 96 1.05 State Licenses 98 1.06 Tax Compliance 178 2011-2018 Sales Tax Returns 179 2011-2017 IRS Corporate Income Tax Returns 240 2016-2017 Employer Payroll Tax Returns 409 Seller’s Permits 452 Business Licenses 454 2018 NHC Financial Statement 464 1.07 Insurance 468 1.08 Budget 476 1.09 Financial Capacity 480 1.10 Products & Services 486 2. Community Benefit 487 3. Education Plan 491 4. Security Plan 495 5. Lighting Plan 509 6. Site & Floor Plans 513 7. Water Efficiency Plan 537 8. Odor Control Plan 539 9. Hazardous Materials Plan 543 10. Energy Efficiency Plan 545 11. Additional Documents 553 Online Reviews 554 Petition from SLO City Residents 555 NHC SLO | CANNABISRETAIL6 NHC SLO | CANNABIS RETAIL 7 1. BUSINESS OPERATIONS PLAN A world-class cannabis retail establishment. Founded in SLO County, Natural Healing Center is dedicated to the Central Coast. NHC SLO | CANNABISRETAIL8 1.01 Executive Summary Natural Healing Center (NHC), owned by Morro Bay local Helios Dayspring, is a San Luis Obispo County based cannabis company that currently operates a successful and state of the art medical and adult-use cannabis retail facility in Grover Beach, CA. In addition to retail, NHC is vertically integrated”, owning over 18 cultivation sites on the Central Coast, as well as manufacturing and distribution facilities that are launching local SLO County brands on to the market. NHC is actively expanding its retail footprint with an application pending before the City of Morro Bay, and now, one before the City of San Luis Obispo. Our proposed San Luis Obispo location will offer the same welcoming, customer service focused atmosphere that patients have come to know and expect, while fitting in with the city’s upscale, forward-looking culture. The project will also feature a separate, hemp- based CBD store for those not seeking traditional cannabis products. In addition, if the City of San Luis Obispo approves NHC’s plans for a retail establishment we will be establishing our corporate headquarters in the city. NHC is committed to growing a world-class company, based right here in SLO. This will bring potentially dozens of head of household jobs in addition to those offered at the retail location. NHC’s team of local business leaders and medical cannabis entrepreneurs have over 30 years of combined expertise in cannabis agriculture, economic development, government & political affairs and real estate development. This makes us the NHC SLO | CANNABIS RETAIL 9 most experienced cannabis operator in the region, equipping us with the knowledge and capital to bring our top-quality plans to fruition. Our retail staff is also well trained and strives to meet our patients’ needs with respect, compassion, and the most enjoyable experience. NHC has a proven track record of providing the highest quality, state-compliant cannabis through a safe and friendly retail setting, and we live by the motto “locally owned, centrally grown”. This is embodied by our efforts to lift up the local industry by giving priority shelf space to local products, implementing local hire policies, offering equity to dedicated employees, and giving back to the community as much as possible. Our passion and subject matter expertise are evident across the industry supply chain. From seed-to-sale, we embrace industry best practices and work in alliance with hundreds of statewide partners who share our desire for providing the absolute highest quality medicine to patients for the lowest cost. We are excited at the prospect of bringing all that we have learned as growers, advocates, business professionals, and community members to bear in opening a world-class dispensary in San Luis Obispo. We are confident that the trust and relationships that we have cultivated throughout our careers can be leveraged to provide incalculable benefit to our community. NHC’s plans, as detailed within this application, represent a realistic and achievable vision of a top-choice cannabis retail establishment that would undoubtedly raise the bar for cannabis operators statewide. NHC SLO | CANNABISRETAIL10 1.02 About Us Helios R. Dayspring, President of Natural Healing Center (NHC) & House of Holistics Corp, was raised in Morro Bay and is a local master cannabis grower with over 15+ years of experience. He cultivates cannabis on a large high-quality scale using indoor, outdoor, as well as in light deprivation greenhouses. Helios’ 18 cultivation properties span San Luis Obispo and Santa Barbara Counties, with 66 valid licenses and another 145 pending. This has gained Helios a wealth of knowledge in business development, entitlements, and contract negotiation, showing his commitment to the Central Coast. Helios has also opened six different store front dispensaries in the Inland Empire and in Grover Beach, gaining invaluable experience in retail operations. Helios is now bringing distribution, manufacturing, and additional cultivation to Grover Beach with 120,000 square feet of approved new development, reinvigorating the local economy. Additionally, Helios’ cannabis delivery service just won Best of SLO County) delivery services voted on by New Times readers. There were over 100 delivery services in the running for this local award and this is not the first time the company has earned recognition for their excellent service. Helios has connected all the dots from cultivation, manufacturing, distribution, and retail, completing the seed to sale network. He is now moving into the cannabis tourism industry with concepts like Berries & Bud, Prohibition & Cannabis, Wine & Weed, and Bud & Breakfast vacation rentals. With the infrastructure that has been built the opportunities are endless and the City of San Luis Obispo will be another key component of our plans to elevate the local economy and build the region’s cannabis identity. Giving back to the community is important to Helios, and NHC has hosted multiple San Luis Obispo County charity events over the past several years including Thanksgiving Dinner giveaways to local families; Christmas events with Santa Claus where each attending child was able to choose their own toy from the large selection, an Easter Egg Hunt held The NHC Team Helios R. Dayspring Executive Team - Chief Executive Officer NHC SLO | CANNABIS RETAIL 11 at the Grover Beach Exploration Station, a Halloween haunted house event, among others. NHC has also sponsored numerous community events including being an annual sponsor for the 2019 Good Morning SLO breakfasts (SLO Chamber of Commerce), sponsoring the 2018 Morro Bay Avocado & Margarita Festival, the Muscular Dystrophy Association Muscle Walk, the Mayor’s Cup Golf Tournament, and several homeless services fundraisers. Additionally, NHC is a member of the SLO, Morro Bay, and South County, Chambers of Commerce, and has given charitable contributions to many organizations including the SLO Food Bank, RISE, and more. Helios’s House of Holistics has been the only San Luis Obispo County company to successfully throw a large-scale cannabis event at The Pozo Saloon’s “Higher Ground Music Festival.” The festival had over 10,000 attendees and our staff were able to verify Medical Recommendations for over 2,000 new patients that same day. Our operations that day were executed with zero incidents. When other cannabis businesses were operating in the shadows without paying taxes, Helios Dayspring raised the bar by implementing self-regulatory policies and complying with all tax laws, evident in his 8+ years of tax history and his operations running with the highest standards in the industry. Helios also places extremely high value in his employees, paying highly competitive wages and using local Labor Contractors for the last 13 years. Overall, Helios Dayspring is a Morro Bay native dedicated to doing good on the Central Coast. He is an industry leader and is helping bring cannabis into mainstream society, creating innovative new ideas and opening the first cannabis campus on the Central Coast. His experience and dedication to our community is unmatched in the industry. NHC SLO | CANNABISRETAIL12 Nick Andre, a longtime San Luis Obispo city resident and prominent community activist, serves as NHC’s Chief Operating Officer. Nick oversees business development, processes, IT systems, and overall operations for the company. Nick also leads NHC’s implementation of CA’s Track-and-Trace system. Prior to joining the company, Nick was founder and CEO of Kumani Inc, a City of San Luis Obispo based IT company that specialized in e-commerce and cloud systems implementation. Nick also previously worked as a consultant for the Cal Poly Small Business Development Center located in the Cal Poly HotHouse. His work there involved advising and assisting local small businesses with their websites, business systems, and IT needs. This service, free to the business owner, helped dozens of local businesses thrive. In that past he also worked in the accounting industry and for Hasbro, Inc. He holds a bachelor’s degree in business administration with a concentration in accounting from the University of Rhode Island. Outside of work, Nick’s deep community involvement centers around environmental and healthcare activism. His passion for improving lives has led to founding and leading a local non-profit organization of nearly 3,000 members. Nick also serves as our region’s representative to the CA Democratic Party. Nick’s values have already had an effect on NHC, with the company undergoing CA Green Business Certification and implementing new programs like diversity and inclusion workshops and “triple-bottom line” (social, environmental, and financial) accounting & decision making. Nick Andre Executive Team - Chief Operating Officer NHC SLO | CANNABIS RETAIL 13 Sonia Luna Executive Team - Chief Financial Officer Sonia is the founder, CEO and President at Aviva Spectrum, an accounting and tax compliance firm that recently won BEST Accountant by cannabis experts and industry leaders at the California Cannabis Awards. She has more than 18 years of compliance, internal and external audit experience. She was appointed by SEC Chair Mary Jo White to the Advisory Committee on Smaller & Emerging Growth Companies in Oct. 2014. She is also an elected member of the Board of Governors for the Institute of Internal Auditors (IIA) and worked in Big 4 environments such as EY and Arthur Andersen. Sonia is a result-oriented and motivated team builder with proven ability in leading a staff in various countries and a wide-range of compliance projects. Expertise in developing people, software implementation projects, managing compliance projects within budget and on time. She is a proven leader in the internal audit community and recently elected for a four year term to the Board of Governors of the Los Angeles Institute of Internal Auditors. She has worked instrumentally on several of the audit projects issued by the Office of Inspector General of Build-LACCD. Sonia has been a partner in-charge for multiple clients in a variety of industries. Core strengths and accomplishments include: Served as Internal control compliance subject matter expert in a legal case representing a large IT retail business entity. Planning and organizing audit engagement teams both domestic and international. Manages several internal control compliance design and operational effectiveness assessments. Prepares training material for several public & private companies on topics ranging from audit, compliance to data analytics. Managed several control rationalization projects for companies in various industries. Working with the Office of Inspector General of Build-LACCD, whereby he supervised staff working on procurement compliance on construction contracts, bidding compliance requirements, Federal wage compliance and fraud investigations stemming from whistle blower hotline. Sonia serves as NHC’s contracted CFO and oversees all financial decisions and tax compliance at the company. NHC SLO | CANNABISRETAIL14 Jacob German Executive Team, Controller Chief Accounting Officer) Bill Szymczak Advisory Board Cultivation Partner Jacob German serves as NHC’s Controller, overseeing all accounting operations and working alongside the CFO for financial planning and decision making. Jacob’s past work experience includes serving as Controller for Coastal Community Builders in Pismo Beach, as well as Troesh Coleman Pacific, Inc. in Nipomo. He also holds an MBA from National University in La Jolla, CA. Jacob lives in Arroyo Grande with his wife Tiffany and their two dogs. He is a huge proponent of helping others and giving back to the community in which he lives. As an active Rotarian, he participates in multiple fundraisers and events each year. He also volunteers as the Finance Committeeman for SLO Habitat for Humanity. Jacob enjoys living the Central Coast lifestyle and all the things that make this area so special. If he’s not in the office, you can find him on the beach catching waves, mountain biking the Johnson Ranch Trail, or wine tasting in Edna Valley. Bill Szymczak is the former Director of the US Department of Housing and Urban Development (HUD) in the San Francisco Region, serving from 1970 to 1985. He then went on to be the Executive Vice President/ Chief Underwriter with PNC Multifamily Finance in San Francisco from 1985 to 1999. Currently, Bill is the Owner and Founder of Preservation Partners Development, LLC and Preservation Partners Management Group Inc. Headquartered in California, Preservation Partners are the owners, developers and property managers of over 8,000 affordable housing units in 8 states. 2019 will mark Bill’s 50th year in affordable housing. He holds a BS and MA degrees from Loyola University of Chicago and serves on NHC’s Advisory Board. Bill’s compliance experience working in highly regulated industries is invaluable to NHC and his confidence in the company has led to personal investment in excess of $18 million into NHC’s cultivation operations. NHC SLO | CANNABIS RETAIL 15 A personal message from Susan: My name is Susan Wood. I am a proud resident of California, who was orphaned at a young age in Scotland. I came to America a poor immigrant with only a high school and city college education. I started a career in the service industry, bartending and then managing in restaurants, while simultaneously taking business classes. I was eventually able to purchase my own restaurant in a residential neighborhood and obtain a liquor license, serving homemade American fare and employing 25 local residents. Owner-operated I have successfully managed a business with all of the requirements of a specialty license for nearly 20 years. I understand the importance of the well-being of patrons and neighbors and how important it is to have good security. I went on to purchase my own apartment buildings, owner-managed and operated, in Los Angeles and rentals throughout California, moving on to purchase 27 single family homes in Milwaukee which I offer to veterans at a discounted rate. I was first introduced to cannabis at the age of 12 when my mother was diagnosed with terminal colon cancer. My 60-year-old aunt, not an imbiber, gave my mother cannabis to induce her appetite, ease her pain, and help her sleep. I became very aware of the medicinal attributes of the plant. Therefore, when I was offered the opportunity to become involved in legal medical marijuana cultivation on the Central Coast I was thrilled to be able to invest. I feel that with Helios’s experience in this industry, NHC has a winning team which will bring employment, revenue, and aid with the continued success of our beloved San Luis Obispo County. Susan Wood Advisory Board & Cultivation Partner NHC SLO | CANNABISRETAIL16 Valnette Garcia’s professional career started out with 9 years as an office manager in the construction industry. In this role, Valnette was responsible for accounts receivable, accounts payable, and payroll. During this time Valnette also attended American Career College graduating with honors as a Medical Assistant and completed Phlebotomist Academy. Valnette’s career in the cannabis industry started as a receptionist of Helios Dayspring’s dispensary in Bloomington, California. She quickly rose through the ranks of employment. This dispensary saw roughly 500-750 patients every day for almost 2 years. Valnette’s duties were managing the entire front end, restocking products, scheduling, hiring, and payroll. This was the busiest dispensary in the Inland Empire at the time. When Dayspring opened House of Holistics delivery service in San Luis Obispo he recruited Valnette Garcia to become a key employee. Valnette moved to SLO County in 2010 and over the years her skill, determination, and drive set her apart from the majority of her peers. Her leadership was instrumental in House of Holistics being voted #1 in New Times’ Best Medical Marijuana Delivery Services “Best of SLO 2018” and runner up in 2017. Valnette also spearheaded many of the company’s charitable events. Valnette has more than 7 years of experience in the cannabis industry and her sheer dedication and diligence has earned her equity in Natural Healing Center’s Grover Beach storefront, as well as equity in the proposed Morro Bay and San Luis Obispo locations if the licenses are granted. It is through actions like these that Helios Dayspring has mastered this business, valuing and rewarding employees that work hard and show dedication by vesting ownership and equity in the business outside their wages. Valnette Garcia General Manager Antonio has worked under Helios Dayspring for 3 years. First at a cultivation site after being referred by a mutual friend, where his intelligence and potential to work in a more social retail setting was noticed. Antonio was then moved to House of Holistics Corp. as a delivery driver where he thrived, providing exceptional customer service and connecting with patients all over the County. Now at NHC in Grover Beach, Antonio’s work ethic and professionalism has earned him an assistant manager position. At the SLO location he will be promoted to floor manager and earn equity in the company. Antonio Contreras Floor Manager NHC SLO | CANNABIS RETAIL 17 Kenneth started working for Helios Dayspring after being recruited from a restaurant where Helios noticed his positive attitude, strong work ethic, and long-term employment. One day Helios handed him a business card and offered him a job, and a week later Kenneth was on the road working as a delivery driver for House of Holistics. Kenneth has been working under Helios for 4 years and his hard work and honesty led to his promotion to assistant manager at NHC in Grover Beach. He is now being given the chance to move to the next level of the business by obtaining equity in NHC’s SLO location where he will also be promoted to floor manager. Kenneth Johnson Floor Manager Stacey Wooten is the founder of Cal Coast Compliance, a compliance firm that specializes in the cannabis industry, and is head of compliance for all of NHC’s cultivation sites. Ms. Wooten, a Central Coast local, has 20 years of regulatory compliance experience, with the last five years, specializing in cannabis. Stacey Wooten Head of Compliance Chris Bowyer enlisted in the Marine Corps in 2004 at the age of 17, attended boot camp nine months later. Over the course of six years, he attained the rank of Sergeant, and was deployed three times in support of combat and humanitarian operations all over the globe. During his military career, he held two primary military occupational specialties; Infantry Rifleman, and Logistics and Embarkation Specialist. After his discharge, Chris attended the University of Colorado, Denver, in pursuit of a BA in English. While attending college, he began working as a security provider for the newly-legalized cannabis market in Colorado. Quickly rising in the ranks, his experience in security spans from working as a guard on the ground, to operational and strategic leadership as upper-level management, eventually becoming COO of Xiphos Corp., an organization providing specialized security solutions. As Head of Security for NHC, Chris and Xiphos Corp. bring a team of U.S. Army Special Forces (Green Berets) to provide the highest level of security for all Natural Healing Center operations. They leverage their specialized military training and pair it with their years of experience working security in the legal cannabis space and the latest available technology. They also are committed to helping newly transitioned military personnel integrate into the civilian workforce. Chris Bowyer Head of Security NHC SLO | CANNABISRETAIL18 Growing up on the Central coast, Aaron attended Morro Bay High School and then served in the United States Air Force. His last duty station brought him back to California to Vandenberg Air Force Base where he returned home after his service. After returning home he worked as a Manager and Director for the largest tour and transportation companies in San Luis Obispo County. Through his tenure he deepened relationships, and grew his in-depth knowledge of the county and the people that love the lives they live here. Working for the Tourism Bureau in Morro Bay he grew his knowledge with what matters to people relocating to the area and the draw that inspires them to seek their dream homes on the central coast. He then joined Richardson Properties as a licensed Real Estate Agent and serves as a member of Natural Healing Center’s real estate team, facilitating the acquisition of property and helping previous tenants re-locate. Aaron will also serve as the Community Outreach Manager for the Morro Bay retail location. Aaron also enjoys volunteering and serving his community and volunteers on the Morro Bay Harbor Festival Board of Directors. Aaron Young Real Estate Team & Community Outreach Manager Architect Craig Smith, AIA, founded CRSA Architecture in 1986 and has established it as an innovator in combining effective purpose, with vibrant, place-making, award winning design. Located in downtown San Luis Obispo, the firm’s past and present project types are commercial and retail development, food service, winery development, adaptive reuse, historical rehabilitation, residential development and individual residential clients, completing energetic projects that range widely in scope, scale and type. Craig deals with architectural design, land use, and other related issues for NHC. Craig Smith Architect & Project Development Jane Heath is one of Morro Bay’s preeminent lawyers who is also deeply involved in the community. Jane received her Juris Doctor from the University of San Francisco School of Law and practiced as a Litigation Partner at Duggan Smith & Heath LLP, before striking out on her own at the Law Offices of Jane Heath in downtown Morro Bay. Jane provides legal counsel for NHC. Jane Heath Legal Representative NHC SLO | CANNABIS RETAIL 19 Commitment to Community For years, NHC has built a track record of deep community involvement. We organize: An annual turkey giveaway for families in need. Families get a frozen turkey along with sides and desserts. This event has been held 3 years in a row and we’ve given out over 900 turkeys. In 2018 we also donated turkeys to the Morro Bay Monday Night Community Dinner at the Vets Hall on the Monday before Thanksgiving, as well as to Rock Harbor Christian Fellowship Church, 40 Prado Homeless Services Center, 5 Cities Homeless Coalition, and SLO Food Bank. An annual Christmas toy giveaway for families in need. Thousands of toys have been given away over the past 3 years. In 2018, NHC arrived at KSBY’s studio with a truck containing thousands of toys for their final day of the Season of Hope toy drive. Other events including an Easter Egg Hunt and Halloween event at the Grover Beach Exploration Station. Plans are actively underway to replace these events with a new annual benefit for local veterans. We were/are sponsors of: 2019 SLO Chamber of Commerce Good Morning SLO (Annual Sponsor) 2018 Morro Bay Avocado and Margarita Festival 2018 Muscular Dystrophy Muscle Walk (Held in Pismo Beach) 2018 Morro Bay Chamber of Commerce Annual Awards Gala NHC SLO | CANNABISRETAIL20 The 2017 and 2018 Mayor’s Cup Golf Tournaments Several Homeless Services Fundraisers (Five Cities Homeless Coalition, etc.) 2018 Stone Soup Music Festival Among others. We are members of the: SLO Chamber of Commerce Morro Bay Chamber of Commerce South County Chamber of Commerce California Cannabis Industry Association (CCIA) National Cannabis Industry Association (NCIA) We have also made donations to many local organizations including a recent $5,000 contribution to RISE to help them expedite a 2-3 month backlog of sexual assault and domestic abuse victims seeking their services. Additionally, NHC is dedicated to being a good neighbor and has a Community Outreach Manager who is responsible for outreach and communication with the neighborhood and nearby businesses. Further, there will be regular communications and interface with SLO’s Police Department to ensure that the operation of the medical cannabis facility is in compliance with local and state laws and regulations. In fact, NHC has already engaged with SLO PD, providing a tour of our current facility in Grover Beach, proactively meeting with the department regarding our security plans for the proposed SLO location, and to discuss partnering on a responsible use messaging program. Overall, NHC is dedicated to doing good whether it be through donations, volunteer hours, or its policy of considering impacts to the community when making business decisions. Please see Section 2: Community Benefit for more detailed information. NHC SLO | CANNABIS RETAIL 21 Objectives NHC has identified several business goals: Design, build, and operate a sustainable enterprise that will be cash flow positive and provide opportunities to give back to the community. Provide alternative health and wellness services to improve the lives of customers/ patients in SLO and the surrounding areas. Leverage previous experience to create benchmarks for excellent dispensary operations within SLO. Hire local employees who are happy, motivated and actively contribute to a good working atmosphere for patients and other employees. Develop and maintain a loyal customer/patient following. Provide living-wage employment opportunities and create a positive work environment. Improve understanding and education about the medicinal benefits of medical cannabis. Mission NHC is dedicated to providing qualified patients with safe and convenient access to scientifically tested medical-grade cannabis. NHC is committed to providing the community with alternative health resources in a professional and compassionate environment by offering low-cost holistic health and wellness services to patients in need. NHC will ensure that patients who enter our health center will experience a feeling of community, belonging, and wellness. We strive to serve our community, both patients and non-patients, through charitable community events and services. Vision Natural Healing Center envisions a community-oriented medical cannabis retail storefront that provides patients in need with safe access to high quality medicine, holistic wellness services, and educational resources. We foresee NHC serving as a leader in the community by conducting outreach activities that serve the needs of patients in SLO and the surrounding areas. We strive to be seen as a good neighbor to local residents and businesses by engaging city and municipal leaders and serving as an example of a responsible service provider. NHC SLO | CANNABISRETAIL22 Organizational Commitments NHC is committed to: Providing the community with alternative health resources in a safe, professional environment where all are treated with respect, compassion and care. Operating with complete adherence to state and local ordinances, and maintaining a solid working relationship with all government authorities, including law enforcement officials. Improving the community economy by creating jobs, generating income, and multiplying our financial impact within the community. Serving our community, both patients and non-patients, through charitable community events and services. Being a good neighbor to local residents and businesses by engaging community leaders and serving as an example of a responsible service provider. Reducing the stigma associated with cannabis by being a responsible, upstanding member of the community. Core Values NHC believes in: Compassion - serving our patients professionally with sensitivity to their needs in a clean environment where they feel safe and secure. Responsiveness - in our dealings with patients, employees, lenders and the community. Local First – prioritizing local brands, giving preference to local workers and building a true Central Coast identity. Quality - offering safe, high-quality medicinal products subject to careful selection, processing, and testing by an independent lab, at the best prices possible. Transparency – regularly auditing financial data by an independent accounting firm. Community Service - conducting varied and ongoing outreach activities to serve the needs of patients and others in our community. NHC SLO | CANNABIS RETAIL 23 Keys to Success NHC’s important keys to success include: Selfless Service, Duty, Respect, Hard Work – NHC’s team is unparalleled in its commitment to meeting the needs of the community and sees its operation as a way to fulfill its principles and civic responsibility to respectfully care for the health and well-being of its neighbors. This philosophy will serve NHC well in establishing a strong presence as a community resource and ensuring sustainability over time. Industry Experience – The diverse backgrounds and combined experience of NHC’s team of highly skilled professionals in patient education, medical cannabis operations, and compliance make it possible to confidently enact best practices and organizational plans. Strong Financial Controls – NHC will conduct business in a transparent manner that is compliant with all regulations and Generally Accepted Accounting Principles. NHC will manage all resources according to the highest standards for organizations within the medical cannabis industry. These practices will minimize a number of risks associated with operating a dispensary and will support long-term sustainability. Community Support – NHC has shared with community members our plans for bringing high quality products and services to SLO, and have articulated a firm commitment to be an upstanding community member and resource. NHC has heard strong support for our efforts and encouragement from community members to pursue our plans. This community support will be critical to positioning within the healthcare marketplace and also to the long-term success of the organization. Strong Operational Partnerships – NHC has developed strong local partnerships with other local farms to ensure access to high-quality safe medicine. Outstanding Brands – High-quality brands and product lines from delivery systems & devices, to apparel, will be offered at NHC. Triple Bottom Line NHC tracks performance and makes decisions based on the “triple bottom line”philosophy, meaning we take into consideration the environmental, social and finance impacts of our operations. NHC SLO | CANNABISRETAIL24 NHC Management Retail PROPOSED: San Luis Obispo PROPOSED: Morro Bay Natural Healing Center Grover Beach 998 Huston St #A Grover Beach, CA 93433 Cultivation LOVR 2 SLO 150 acres LOVR 3 SLO 260 acres LOVR 1 SLO 200 acres Tierra Redonda Bradley, CA 86 acres River Rd San Miguel 63 acres Tepesquet 2: 56 acres Tepesquet 1: 40 acres Pine Canyon: 220 acres Distribution Full Melt Distro Huston St. Grover Beach, CA Tepesquet 3: 50 acres Manufacturing Huston St. Grover Beach, CA 4th St. Grover Beach, CA Tepesquet 4: 120 acres Tepesquet 5: 40 acres Tepesquet 6: 110 acres Tepesquet 7: 890 acres Rancho Rd, Nipomo 200 acres Joshua & Thompson Rd, Nipomo 147 acres combined Cougar RidgeRdSantaMaria (SLOCounty) 40 acres Suey Creek Rd Santa Maria (SLOCounty) 40 acres Cougar Ridge Rd, Santa Maria (SLOCounty) 40 acres Santa Barbara County San Luis Obispo County NHC Companies Overview NHC SLO | CANNABIS RETAIL 25 1.03 BUSINESS PLAN Highlights Major Revitalization Cannabis Retail Plus Separate Hemp CBD Store Net Zero Project Removal of Liquor Store Removal of Visual Blight: Large Liquor Sign Ample Parking & EV Chargers Public Art - Mural & Abstract Piece NHC SLO | CANNABISRETAIL26 1.03 Business Plan Proposed Operation Natural Healing Center will be a medical and adult-use cannabis retailer located in an existing commercial building at 2640 Broad Street, zoned C-R in the South Broad Overlay Area of the Cannabis Zone, a land-use compliant area of San Luis Obispo, California. Additionally, the existing commercial property at 2600 Broad Street will be a hemp retail store. The two lots will be merged to create a retail complex. Location Information Address: 2640 Broad Street, San Luis Obispo, CA 93401 Zone: C-R Parcel #: 004-925-035 Address: 2600 Broad Street, San Luis Obispo, CA 93401 Zone: C-R Parcel #’s: 004-925-033 & 004-925-034 The existing buildings will be improved and altered. There will be 23 off-street parking spaces, including two ADA spaces. The required parking is only 21 spaces. 6 parking spaces will feature electric vehicle chargers that will be free of use to customers. The site will also feature a bike rack. NHC SLO | CANNABIS RETAIL 27 Both buildings will have a large main entry that will provide a compliant path of travel from the public right-of-way and existing parking lot. The existing parking lot will have improved night lighting (LED & dark sky compliant) and provide 24-hour video security over the entire parking lot area, delivery entrances, aisle-ways and main entries. The main entry of the cannabis retail building will be a large, bullet-resistant glass storefront with accessibility and exiting improvements, per the standing California Building Code and the ADA accessibility guidelines. The exterior of both buildings will include complete façade renovations include a reinforced steel door to the enclosed delivery area and an artistic mural. The exterior will also feature drought tolerant landscaping and a public art piece. See Section 6: Site & Floor Plans for additional details and building renderings. Upon entering the cannabis retail building, the check-in room will have a secure administrative welcome area. When the cannabis patient’s/customer’s information is collected and verified, they will be allowed entry into the main, central sales area, through a locked door controlled by the receptionist. This main area will feature an open floor plan with a combination of interactive product showcases (touchscreen displays) and traditional counter showcases (like at NHC’s Grover Beach location), as well as two ADA compliant and accessible restrooms. The interior appointments, and finishes, will be welcoming, open and bright, and will feature a “living plant wall”. Other interior improvements include a 2-hour fire rated vault for storage NHC SLO | CANNABISRETAIL28 of product. The building improvements also include upgraded and code compliant, energy efficient lighting and mechanical heating and air-conditioning. See Section 5: Lighting Plan and Section 8: Odor Control for more information. Additionally, the building will be equipped with an alternative power system with photovoltaic, roof mounted solar panels that will provide a high degree of electrical power capable, that when coupled with energy efficient fixtures, will achieve a Net Zero Energy building. Please see Section 10: Energy Efficiency Plan for more details. NHC’s proposed project will remove the presence of a liquor store (currently located at 2600 Board Street) and a large bright yellow sign that reads “quick stop liquor”. This coupled with the extensive renovations, including improvements to pedestrian safety along Broad St., with new ingress and egress, will greatly improve this section of town. Removal of Visual Blight Business Ownership & Legal Formation Natural Healing Center (NHC)’s San Luis Obispo location is organized as NHC SLO LLC, a California Limited Liability company in the State of California. The articles of incorporation for were filed with the Secretary of State of California on December 11, 2018. Equity holders in NHC SLO LLC is as follows: Helios Dayspring 88% Nick Andre 3% Antonio Contreras 3% Valnette Garcia 3% Kenneth Johnson 3% Nick Andre, Antonio Contreras, Valnette Garcia and Kenneth Johnson all have earned at or below the median household income at the time of application. 2017 IRS tax returns and most recent paystubs for those individuals are included on the following pages. NHC SLO | CANNABISRETAIL42 Property Ownership The 3 APNs associated with this project are fully owned by Helios Dayspring. The purchase agreement can be found on the following pages. NHC SLO | CANNABISRETAIL480 Capitalization NHC has ample access to funding. Primary principal Helios Dayspring will use personal funds to build and operate the project. A personal financial statement documenting $3.6 million in liquid assets and $12.3 million in real estate equity is enclosed on the following page. Additionally, over A statement showing that projection is included on the following pages. Additionally, Helios Dayspring has access to a $3 million loan if needed. A letter documenting approval and availability of funds from can be found on the following pages. , 1.09 Financial Capacity PROOF OF SERVICE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612Proof of Service By Overnight Delivery I am a citizen of the United States and employed in Orange County, California. I am over the age of eighteen years and not a party to the within-entitled action. My business address is 18101 Von Karman Avenue, Suite 1000, Irvine, California 92612. On January 28, 2022, I deposited with Federal Express, a true and correct copy of the within document(s): DECLARATION OF MICHAEL CODRON IN SUPPORT OF OPPOSITION TO PLAINTIFF NHC SLO, LLC’S EX PARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE: PRELIMINARY INJUNCTION in a sealed envelope, addressed as follows: John Armstrong Armstrong Law Group 23232 Peralta Drive, Suite 102 Laguna Hills, CA 92653 Tel. 949-942-6069 john@armstronglawgroup.co Attorneys for Petitioner/Plaintiff Following ordinary business practices, the envelope was sealed and placed for collection by Federal Express on this date, and would, in the ordinary course of business, be retrieved by Federal Express for overnight delivery on this date. I declare under penalty of perjury under the laws of the State of California that the above is true and