HomeMy WebLinkAbout21CV-0734 - Request for Judicial NoticeCITY OF SAN LUIS OBISPO’S REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF DEMURRER
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON
KARMAN AVENUE,SUITE
1000IRVINE,CALIFORNIA 92612JEFFREY 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 CHRISTINE
DIETRICK, Bar No. 206539
cdietrick@slocity.org CITY OF SAN
LUIS OBISPO CITY ATTORNEY’S OFFICE 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 Plaintiff, 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
CITY OF SAN LUIS OBISPO’
S REQUEST
FOR JUDICIAL NOTICE
IN SUPPORT
OF DEMURRER TO FIRST AMENDED PETITION
Filed concurrently with:
1. Demurrer, 2. Declaration
of Daniel Richards, and 3.
Proposed Order]
Date: December 29, 2022 Time:
9:
00a.m. Dept.: 2 Action
CITY OF SAN LUIS OBISPO’S REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF DEMURRER
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BEST BEST &
KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612I.INTRODUCTION Defendants and Respondents City
of San Luis Obispo and City Council of and for the City of San Luis
Obispo (“Defendants”) respectfully request that the Court take judicial notice of the documents below pursuant
to California Evidence Code sections 451 and
452 in support of the
Defendants’ Demurrer to First Amended Petition. II.AUTHORITY FOR JUDICIAL NOTICE A court may
take judicial notice of official acts of local governments and legislative enactments of any public entity (Evid.
Code § 452(b–d)) and facts and propositions that are not reasonably subject to
dispute and are capable of immediate and accurate determination by
resort to sources of reasonably indisputable accuracy. (Evid. Code § 452(h).). Local ordinances
and resolutions are properly subject to judicial notice. (Union of Med. Marijuana Patients, Inc. v. City
of Upland (2016) 245 Cal.App.4th 1265, 1269 fn. 2.) There is
a rebuttable presumption that certified copies of public documents are true, correct, and authentic. (
See Evid. Code. §§ 1530 et seq.; Ambriz v. Kelegian (2007) 146 Cal.App.4th
1519, 1530 [“Respondents offered nothing to overcome the presumption that these copies of official records
were true and correct copies, as certified by a city official.”].) The documents
for which judicial notice are sought are relevant to establishing the relevant provisions of the
San Luis Obispo Municipal Code and to establish that Valnette Garcia represented to a federal
court
that her and Helios Dayspring are
in an intimate personal relationship. III.DOCUMENTS TO BE JUDICIALLY NOTICED 1.
San Luis Obispo Municipal Code Chapter 9.10, “Cannabis Regulations,” available online at https://sanluisobispo.municipal.
codes/Code/9.10. A true and correct certified copy of this document is attached hereto
as Exhibit 1. (Evid. Code § 452; Richards Decl. ¶ 2; Union of Med. Marijuana Patients, Inc. v. City of
Upland (2016) 245 Cal.App.4th
1265, 1269 fn. 2 [local laws proper subject of judicial notice].) 2. San
Luis Obispo Municipal Code Section 17.86.080, “Cannabis,” available online at https://sanluisobispo.municipal.codes/Code/
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CITY OF SAN LUIS OBISPO’S REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF DEMURRER
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612document is attached hereto as
Exhibit 2. (Evid. Code § 452; Richards Decl. ¶ 3; (Union of Med. Marijuana Patients, Inc. v. City of Upland (
2016) 245 Cal.App.4th
1265, 1269 fn. 2 [local laws proper subject of judicial notice].)
3. NHC SLO, LLC’s Commercial Cannabis Business Operators Permit Application submitted to the City of San Luis
Obispo. A true and correct certified copy of this document is attached hereto as Exhibit 3. (
Evid. Code § 452; Richards Decl. ¶ 4; City of Corona v. Naulls 2008)166 Cal.App.4th
418, 420 [taking judicial notice of application for business license tax]; Summit Media LLC v. City of
Los Angeles (2015) 240 Cal.App.4th 171, 180 [
taking judicial notice of application for city approval and related materials].)
4. NHC SLO, LLC’s digital Commercial Cannabis Business Operators Permit Application submitted to the City of
San Luis Obispo. A true and correct certified copy of this document is attached hereto as
Exhibit 4. (Evid. Code § 452; Richards Decl. ¶ 5; City of Corona v. Naulls (2008)166 Cal.
App.4th 418, 420 [taking judicial notice of application for business license tax]; Summit Media LLC v. City
of Los Angeles (2015) 240 Cal.App.4th 171, 180 [
taking judicial notice of application for city approval and related materials].)
5. Helios Dayspring’s executed and filled out Cannabis Background Questionnaire. A true and correct certified copy
of this document is attached hereto as Exhibit 5. (Evid. Code 452; Richards Decl. ¶ 6; City of
Corona v. Naulls (2008)166 Cal.App.4th 418, 420 [taking judicial notice of application for
business license tax]; Summit Media LLC v. City of Los Angeles 2015) 240 Cal.App.4th
171, 180 [
taking judicial notice of application for city approval and related materials].) 6. A letter from
Paul F. Ready of Farmer & Ready, a Law Corporation, sent on behalf of Valnette Garcia, Helios Dayspring,
and NHC SLO, LLC to City of San Luis Obispo in connection with Helios Dayspring’
s transfer of ownership. A true and correct certified copy of this document is attached
hereto as Exhibit 6. (Evid. Code § 452; Richards Decl. ¶ 7; (Stockton Citizens for Sensible Planning v. City
of Stockton (2012) 210 Cal.App.4th 1484, 1488 fn.3 proper to take
judicial notice of official correspondence that forms part of administrative record]) 7. City of San
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612of this document is attached hereto
as Exhibit 7. (Evid. Code § 452; Richards Decl. ¶ 8; Union of Med. Marijuana Patients, Inc. v. City of
Upland (2016) 245 Cal.App.4th
1265, 1269 fn. 2 [local laws proper subject of judicial notice].) 8. City of San
Luis Obispo Resolution No. 11231. A true and correct certified copy of this document is attached hereto
as Exhibit 8. (Evid. Code § 452; Richards Decl. ¶ 9;;Union of Med. Marijuana Patients, Inc. v. City of
Upland (2016) 245 Cal.App.4th
1265, 1269 fn. 2 [local laws proper subject of judicial notice].) 9. City of San
Luis Obispo Resolution No. 11264. A true and correct certified copy of this document is attached
hereto as Exhibit 9. (Evid. Code § 452; Richards Decl. ¶ 10Union of Med. Marijuana Patients, Inc. v. City of
Upland (2016) 245 Cal.App.4th
1265, 1269
fn. 2 [local laws proper subject of judicial notice].) IV.CONCLUSION For
the foregoing reasons, Defendants respectfully request
that this Court take judicial notice of Exhibits
1
to 9. Dated:
August 16, 2022
BEST BEST & KRIEGER LLP By:
JEFFREY V. DUNN DANIEL L. RICHARDS Attorneys for
Defendants and Respondents City of San Luis Obispo and
City Council of and
EXHIBIT 1
RJN Ex 1 0001
Office of the City Clerk
990 Palm Street,San Luis Obispu.CA 93401-3218
805.781.?100
slucityorg
CERTIFICATION
I,Teresa Pun'ington,City Clerk,do hereby certify under penalty of peljuxy the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED:January 25.2022
dwflwflk
Teresa Purrington,City Clerk
City of San Luis Obispo
RJN Ex 1 0002
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Chapter 9.10
CANNABIS REGULATIONS
Purpose and intent.
Definitions.
Personal cultivation limited.
Commercial cannabislcity permit and state license required.
Regulations and fees.
Display and production of permits.
Commercial cannabis operator permit application procedures and requirements.
Renewal of permit.
Suspension or revocation of permit.
Appeal.
Right to occupy and to use property for commercial cannabis activity.
Prohibition on transfer of commercial cannabis operator permits.
Records and reports.
Inspection and enforcement.
Outdoor commercial cannabis cultivation and activities prohibited.
Indemnification,insurance,reimbursement,consent.
Compliance with laws.
Permit violation.
Permit compliance monitoring.
Permit holder responsible for violations by employees or agents.
Consumption or use prohibited on site and in public—Cannabis event prohibited.
Concurrent alcohol or tobacco sales or service prohibited.
Minors.
Sale of cannabis products or cannabis accessories by vending machine prohibited.
Security and public safety measures.
Limitations on city‘s liability.
Fees deemed debt to city.
Violation and penalties.
Severability.
The San Luis Obispo Municipal Code is current through Ordinance 1702.passed November 15,2021.
RJN Ex 1 0003
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 2 of16
9.10.010 Purpose and intent.
A.It is the primary purpose and intent of this chapter to protect the health,safety,and weifare of the residents
of the city of San Luis Obispo from the negative impacts of illegal commercial and noncommercial cannabis
activity.and of state authorized cannabis activity.by enforcing city ordinances.rules and regulations consistent
with applicable state law.including.but not limited to,the Compassionate Use Act,the Medical Marijuana Program
Act,the Adult Use of Marijuana Act,and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act.
B.This chapter is not intended to,and shall not be construed to,prohibit or interfere with any right,defense or
immunity under Health and Safety Code Section 11362.5 (the Compassionate Use Act),or under Health and Safety
Code Section 11362.7 et seq.(the Medical Marijuana Program Act}.
C.This chapter is not intended to,and shall not be construed to,prohibit or interfere with any right.defense or
immunity of any person twenty-one years of age or older relating to the adult personal possession or cultivation of
cannabis or marijuana consistent with the provisions of the Control,Regulate and Tax Adult Use of Marijuana Act
and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act.
D.Nothing in this chapter shall be construed to authorize the cultivation,possession or use of marijuana for any
purpose inconsistent with state or local law.
E.Any reference to California statutes includes any regulations promulgated thereunder and is deemed to
include any successor or amended version of the referenced statute or regulation.(0rd.1647 §4 {Exh.Aipartn,
201B)
9.10.020 Definitions.
A.State—Defined Terms.Words or terms used in this chapter that are defined words or terms in Business and
Professions Code Section 26001 or Health and Safety Code Section 1 1362.7 (the "Statutes”i shall have the
meanings ascribed to them in the Statutes as they now read,or as they may be amended to read.These state-
defined words and terms include.but are not limited to,"cannabis,""canna bis accessories,""cannabis
concentrate,"”cannabis products.""commercial cannabis activity,""cultivatio n,"“delivery,""distribution,"“license,”
live plants,"“manufactu re,""Operation,""person,""premises,""sell.""sale,""to sell."Some of these terms are also
set forth in Chapter In the event of conflict in the definitions,the definitions in Chapterflfi shall
control;provided the terms defined in subsection E of this section shall control over any other definition.
B.Ely-Defined Terms.The following words or terms used in this chapter have the following meanings:
1."Commercial cannabis business"means any person or entity engaging in any business,operation or
activity which is commercial cannabis activity under state law in the city.
2."Commercial cannabis operator permit"means a permit required by the city of San Luis Oblspo pursuant
to this chapter to conduct commercial cannabis activity or a commercial cannabis business in the city.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 1 5.2021.
RJN Ex 1 0004
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 3 of16
3."Responsible partyfies)"shall be one or more individuals who have an ownership interest in a commercial
cannabis activity and are designated to be personally responsible for compliance with all terms and conditions
of the commercial cannabis operator permit,all other permits required by the city,and all ordinances and
regulations of the city.Any person having an ownership interest of more than fifty percent in a commercial
cannabis activity shall be designated a responsible party on the application.if no individual owns more than
fifty percent ofa commercial cannabis activity,the individual owning the largest share shall be a responsible
party.and if multiple individuals have the same percentage interest,each one shall be a responsible party.
More than one individual can be designated a responsible party.
4."Cannabis event"means a public or private event where compensation is provided or exchanged,either
directly or indirectly or as part of an admission or other fee for service,for the provision.hosting,promotion
or conduct of the event where consumption of cannabis is part of the activities.(0rd.1647 §4 (Exh.A (partfi,
2018)
9.10.030 Personal cultivation limited.
A.Maximum Six Piants Outdoors per Parcel.it shall be unlawful for any person to plant.cultivate,harvest,dry,
process,maintain.possess or store outdoors.more than six live cannabis plants on any parcel containing one or
more private residences.This limitation on outdoor personal cannabis activities applies per parcel,regardless of
the number of residents in each private residence.and regardless of the number of residences on the parcel.This
limitation applies to cannabis live plants for either adult recreational use or medicinal purposes.Outdoor personal
cultivation shall comply with applicable provisions of Section 17.86.080.
B.Maximum Six Pionts per Private Residence,indoors and Outdoors.It shall be unlawful for the cumulative total of
cannabis plants per private residence.indoors and outdoors,to exceed six cannabis live plants,regardless of
number of persons residing in the private residence.This limitation applies to cannabis live plants for either adult
recreational use or medicinal purposes.Any live cannabis plants grown indoors shall comply with applicable
provisions of Section 1736.080.
C.No Outdoor Cuitivation on Porcei without Private Residence.It shall be unlawful for any person to pla nt.cultivate,
harvest,dry,process.maintain,possess or store any cannabis live plants outdoors on a parcel that does not have
a private residence used for residential dwelling purposes by the person cultivating the cannabis live plants.
D.Neighborhood impacts of Personal Cuitivation.There shall be no exterior evidence of cannabis cultivation
occurring at the property visible by normal unaided vision from a public place or the public right-of-way and any
outdoor cultivation shall comply with provisions of Section 17.86.080iD}.Personal cultivation of cannabis.for
recreational adult use or for medicinal purposes,shall not create odors,dust,heat,noise,light.glare.smoke or
other impacts to people of normal sensitivity living,working or lawfully present in the vicinity of the personal
cultivation site.Impacts that cross the nearest property line of any other parcel,beyond that parcel on which the
personal cultivation is conducted,or that are visible or noticeable with normal unaided vision,from a public place
or the public right~of«way,or from any separately owned,leased or controlled private residence or business on the
same parcel as the private residence responsible for the personal cultivation,are unlawful.
The San Luis Obispo Municipal Code is current through Ordinance 1702.passed November 15.2021.
RJN Ex 1 0005
Ch.9.10 Cannabis Regulations I San Luis Obispo Municipal Code Page 4 of16
E.No Hazardous Persona!Cultivation.Personal cultivation.harvesting,drying.or processing of cannabis,for
recreational adult use or medicinal purposes.that uses or stores hazardous or toxic chemicals or materials.
creates hazardous or toxic products or wastes,or uses volatile processes or other methods or substances that
pose a significant risk to public health or safety,is prohibited and unlawful.{0rd.1647 §4(Exh.Mparti),2018}
9.10.040 Commercial ca nnabislcity permit and state license required.
A.City Commercioi Cannabis Operator Permit Required.No person shall engage in commercial cannabis activity or
have an ownership interest in.operate,or manage a commercial cannabis business without obtaining and
continuously maintaining a commercial cannabis Operator permit pursuant to this chapter.
B.Commercial Cannabis Operator Permit and State License{s)Required.It shall be unlawful for any person to own.
conduct.manage.operate,engage or participate in.or work or volunteer at a commercial cannabis activity or
commercial cannabis business that does not have a valid commercial cannabis operator permit issued pursuant to
this chapter and other city permits or licenses required by this code.in addition to the appropriate license{s)
required by state law to conduct the commercial cannabis activity.Any commercial cannabis business or
commercial cannabis activity conducted without all required city and state permits and licenses is prohibited and
unlawful and is hereby declared to be a public nuisance.{Ord.1647 §4 (Exh.A (party,2013)
9.10.050 Regulations and fees.
The city council shall by resolution or ordinance adopt such forms,fees.regulations and procedures as are
necessary to implement this chapter with respect to the application and qualification for,and the selection.future
selection.investigation,process.issuance,renewal,revocation.and suspension of,commercial cannabis operator
permits.{0rd.1647 §4 (Exh.A (partn.2018)
9.10.060 Display and production of permits.
A.Dual Permits Posted and Visibie.A copy of the commercial cannabis operator permit issued by the city of San
Luis Obispo pursuant to this chapter,together with a copy of the appropriate state license{s)for the commercial
cannabis activity being conducted,shall be posted and readily visible to the pubiic at all times,at each location
where commercial cannabis activity occurs.
B.Production of Originaisfor inspection.Any owner,operator,employee or person in charge of a commercial
cannabis activity shall produce for inspection and copying,upon request of a city inspector,code enforcement
officer,or city police officer during normal operating hours,the original of the current and valid city of San Luis
Obispo commercial cannabis operator permit and the appropriate,current and valid license(s}of the state of
California for the commercial cannabis activityties)or commercial cannabis businessies}being conducted.(0rd.
1647 §4 (Exh.A (partn,2018}
TheSan Luis Ob'ispo Municipal Code is current through Ordinance 1702,passed November 15.2021.
RJN Ex 1 0006
Ch.9.10 Cannabis Regulations I
San Luis Obispo Municipal Code Page 5 of15
9.10.070 Commercial cannabis operator permit application procedures
and requirements.
A.Application.A person shall apply for a commercial cannabis operator permit by submitting an application t3
the city during the annual application period or any other period established by the city manager.The city council
will.by resolution.adapt criteria by which all applications will be reviewed.applicants qualified and,in the case of
retail and cultivation businesses,also ranked.Those applicants that are selected will have the opportunity to apply
for a use permit as outlined in Section 17.86.080.Each application shall designate at least one reSponsible party.If
a person is not selected to receive a commercial cannabis operator permit.the person may reapply during the
next annual application period or any subsequent application period established by the city manager.
B.Application Submittoi Time Frame.A person may only submit one application per permit type,per application
period.for a commercial cannabis operator permit,during the annual application period designated by resolution
ofthe city council or any subsequent application period established by the city manager.An applicant who is
unsuccessful in any application period may submit another application in any subsequent application period.The
commercial cannabis operator permit will be valid for twelve months.Once a permit is obtained.the applicant can
apply annually for renewal.There is no guarantee that an applicant will receive a commercial cannabis operatcr
permit in the first instance.Due to limitations on the number of certain permits.even a highly ranked applican:for
a retail or cultivation permit may not receive a commercial cannabis operator permit and even an applicant wi'o
receives a commercial cannabis operator permit is not guaranteed that any subsequent,required land use permit.
as outlined in Section 17.86.080,will be approved.
C.Grounds for Automatic Disqualification.In addition to any other reason that may be established by the city
council as a basis for disqualification.an applicant shall be disqualified from applying for,or obtaining,a
commercial cannabis operator permit if:
1.The applicant fails to timely file an application during the annual application period.
2.The responsible party refuses to sign the application and agree to be personally responsible for
compliance,and personally liable for failure to comply.with the provisions of this chapter.
3.The applicant.or any of its officers,directors or OWners.or any person listed in the application.has been
convicted of a felony or offense referenced in Business and Professions Code Section or has been
subject to fines.penalties,or sanctions for cultivation or production ofa controlled substance on public or
private lands or for unauthorized commercial cannabis activities as specified in Business and Professions
Code Section @217;or has had a commercial cannabis license suspended or revoked by the state of
California or any city or county in any state.within the three years preceding the date the application is filed,
or is ineligible to apply for a state cannabis license.No person who has been convicted of such a felony or
offense,or subject to such fines,penalties,sanctions.suspension or revocation,may be engaged {actively or
passively)in the operation.management or ownership of any commercial cannabis business.A conviction
within the meaning of this chapter means a plea or verdict of guilty or a conviction or diversion following a
plea of nolo contendere.
4.The applicant made one or more false or misleading statements or omissions in the application process.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15.2021.
RJN Ex 1 0007
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 6 of16
S.Any person 1isted on the application is a licensed physician making patient recommendations for medical
or medicinal cannabis pursuant to state law.
6.Any person listed in the application is less than twenty-one years of age.
D.Duration and Activation of Permit Each commercial cannabis operator permit issued pursuant to this chapter
shall expire twelve months after the date of its activation.The permittee may apply for renewal prior to expiration
in accordance with this chapter.Each commercial cannabis operator permit must be activated within twelve
months of issuance.The permit is activated by the issuance of a use permit for the commercial cannabis activity
pursuant to Section 17.86.080,together with all other applicable city permits and state licenses,and the
commercial cannabis operator thereafter opening and continuously operating the commercial cannabis activity.
Failure to timely activate the permit shall be deemed abandonment of the permit and the permit shall
automatically lapse.[0rd.1673 §§1,2 (Exh.A),2020;0rd.1647 §4 (Exh.A (part1),2018)
9.10.080 Renewal of permit.
A.Renewal'Application Fiiing Deadiine.An application for renewal of a commercial cannabis operator permit shall
be filed at least sixty calendar days,but not more than one hundred twenty calendar days,prior to the expiration
date of the permit with the city manager or hisfher designee.All commercial cannabis operator permits shall have
an expiration date ofjune 30th of each year.If the complete application and fees are timely submitted but the city
does not act to approve or reject the renewal prior to expiration,the permittee may continue to operate under the
expired permit until the city approves or rejects the application for renewal.
B.Rejection of Renewai Application.An application for renewal of a commercial cannabis operator permit shall be
rejected if any of the following exists:
1.The commercial cannabis operator permit is revoked at the time of the application or renewal.
2.The applicant conducted unpermitted commercial cannabis activities in the city or continued to conduct
formerly permitted commercial cannabis activities after expiration of the permit,other than as expressly
permitted by this section.
3.Any of the grounds for disquaiification for prequalification set forth in Section 9.10.070iCl.or as
established by the city council.exist at the time of application for renewal,or the date of renewal.
4.The permittee fails to renew any required state of California licensets},or the state revokes or suspends
the license.Revocation.termination.nonissuance or suspension of a license issued by the state of California.
or any of its departments or divisions,shall immediately,concurrently revoke,terminate,or suspend,
respectively,the commercial cannabis operator permit.Such automatic suspension makes it Illegal for a
commercial cannabis business or activity to operate within the city of San Luis Obispo until the state of
California.or its respective department or division,reinstates or issues the state license.
An application for renewal of a commercial cannabis operator permit may be denied If any of the following exists:
1.The application is filed less than sixty days before its expiration.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 1 0008
Ch.9.10 Cannabis Regulations ]San Luis Obispo Municipal Code Page 7 of16
2.The applicant has received an administrative citation for violating any provision of this code relating to its
commercial cannabis activityfies}in the city during the last tWelve months,and the administrative citation has
not been resolved in the applicant's favor by the date of application for renewal.A pending.unresolved appeal
of an administrative citation shall not result in rejection of an otherwise timely and complete application,but
resolution of an appeal in a manner that upholds the violation against the applicant during the application
review period shall result in the immediate rejection of the application.
3.The commercial cannabis business has not been in regular and continuous operation in the three months
immediately prior to the renewal application.
4.The commercial cannabis business fails to conform to the requirements of this chapter,any regulations
adopted pursuant to this chapter,or the conditions imposed as part of any use permit or zoning requirements
under Section 1186.080.
5.The commercial cannabis operator permit is suspended at the time of application or renewal.
C.Efiect of Rejection oprpir'cation for Renewal—Operations to Cease Pending Appeais.if a renewal application is
rejected.the commercial cannabis operator permit expires on the expiration date set forth in the permit,even if
an appeal has been filed.All commercial cannabis activities in the city under the expired permit must stop until all
appeals have been exhausted.A person or entity whose renewal application is rejected.and who loses hisfher/its
appeal.must go through the annual commercial cannabis business operator permit application process.(0rd.
1691 §1,2021:0rd.1647 §4 (Exh.A (parti),2018)
9.10.090 Suspension or revocation of permit.
In addition to any other penalty authorized by iaw.a commercial cannabis operator permit may be suspended or
revoked if the city finds,after notice to the permittee and opportunity to be heard.that the permittee or his or her
agents or employees have violated any condition of the permit imposed pursuant to,or any provision of,this
chapter.
A.Upon a finding by the city of a first permit violation within any five-year period,the permit shall be suspended
for thirty days.
B.Upon a finding by the city of a second permit violation within any five-year period,the permit shall be
suspended for ninety days.
C.Upon a finding by the city of a third permit violation within any five-year period.the permit shall be revoked.
0rd.1647 §4 (Exh.A {part}),2018}
9.10.100 Appeal.
A.Qualification—Ranking of Retailers and Cultivators.A decision of the city to not qualify an applicant for a
commercial cannabis operator permit,or to rank applicants for retail or cultivation licenses,or to allow qualified
The San Luis Obispo Municipal Code is current through Ordinance 170.2,passed November 15,2021.
RJN Ex 1 0009
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 8 of16
applicants with the highest rankings the first opportunity to apply for a commercial cannabis operator permit,
shall be the final action ofthe city and not appealable.
B.Nonrenewal,Revocation or Suspension.A decision of the city to reject an application for renewal.or to revoke or
suspend a commercial cannabis operator permit,is appealable to the city manager.An appeal must be filed with
the city manager within ten working days after the renewal has been denied.suspended or revoked.A decision of
the city manager or his or her designee is appealable to the city council in accordance with Chapter fl.
C.Efi‘ect ofSuspension.During a period of license suspension,the commercial cannabis business shall remove
from public View all cannabis and cannabis products,and shall not conduct any commercial cannabis activity.
D.Revocation—Notice to State.Pursuant to Business and Professions Code Section 26200(c),the city manager or
his or her designee shall promptly notify the Bureau of Cannabis Control within the Department of Consumer
Affairs upon the city/s revocation of any local license,permit.or authorization for a state licensee to engage in
commercial cannabis activity within the city.{Ord.1647 §4 (Exh.Mpartj),2018)
9.10.110 Right to occupy and to use property for commercial cannabis
activity.
As a condition precedent to the city‘s issuance of a commercial cannabis operator permit pursuant to this chapter,
any person intending to open and operate a commercial cannabis business shall provide evidence satisfactory to
the city of the applica nt‘s legal right to occupy and use the proposed location for the proposed use,together with
the approval of a use permit from the city for cannabis activity at the location.In the event the proposed location
is owned by or to be leased from another person.the applicant for a permit under this chapter shall provide a
signed and notarized statement from the property owner agreeing to the operation of a commercial cannabis
business on the property.(0rd.1647 §4 {Exh.A (partii,2018}
9.10.120 Prohibition on transfer of commercial cannabis operator permits.
A.Business Restriction to Location on Permit.It shall be unlawful for any person to transfer a commercial cannabis
operator permit to a location not specified on the permit.or to operate a commercial cannabis business at any
place or location other than that identified on the commercial cannabis operator permit issued pursuant to this
chapter.
B.Transfer or Assignment Prohibited.No person or entity shall encumber.mortgage,lien,hypothecate.give,
bequeath,sell,assign or tra nsfer,by operation of law or othenNise,any portion of the ownership or control of a
commercial cannabis business or a commercial cannabis operator permit to any person who does not have a
commercial cannabis operator permit from the city prior to the effective date of any action described in this
sentence.The commercial cannabis operator permittee proposing such an action shall:
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
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Ch.9.10 Cannabis Regutations |San Luis Obispo Municipal Code Page 9 of 16
1.Notify the city in writing of the proposed action,comply with applicable regulations and provide such
information as the city reasonably requests regarding the identity and qualifications of the persons involved,
and pay all applicable fees and charges;and
2.Provide proof that the proposed lender,lienholder.recipient,heir,buyer,assignee,transferee,or other
potential recipient of any portion of the ownership or control,at the time of the notice and effective date of
the proposed action,is qualified by the city to apply for a commercial cannabis operator permit;and the
proposed action is conditioned on the city issuing to the person a new or amended commercial cannabis
operator permit.
3.Notify the city in writing within ten calendar days of the action becoming final with the names and contact
information of the new persons involved,together with a request that the city issue either a new or amended
commercial cannabis operator permit,as applicable.
C.Assignment Null and Void.Any attempt to transfer,sell,assign,give,or lien,or any transfer,sale,assignment,
gift or lien.of a commercial cannabis operator permit issued pursuant to this chapter,by operation of law or
otherwise,in violation of this chapter,is prohibited.Any such action immediately voids,nullifies and terminates
the commercial cannabis operator permit,which shall be of no further force or effect.(0rd.1647 §4 {Exh.A (partl),
2018}
9.10.130 Records and reports.
A.(Sin/Access to Records.Subject to the Health Insurance Portability and Accountability Act (HIPAA)regulations,
each commercial cannabis business shall allow city of San Luis Obispo officials to have access to the commercial
cannabis business's books,records,accounts,and any and all data relevant to its permitted activities for the
purpose of conducting an audit,examination or inspection.Books,records,accounts,and any and all relevant
data will be produced no later than twenty-four hours after receipt of the citYs request or within a reasonable
time as authorized in writing by the city.
B.AnnuolAudit.Each commercial cannabis business shall file with the city manager or hislher designee an audit
of its financial operations for the previous fiscal year,complete and certified by an independent certified public
accountant in accordance with generally accepted auditing and accounting principles.The audit shall include but
not be limited to a discussion,analysis,and verification of each of the records required to be maintained pursuant
to this chapter.The information contained in the audit shall be made available in standard electronic format which
shall be compatible with programs and software used by the city,and which can easily be imported into either
Excel,Access or any other contemporary software designated by the city manager.
C.inventory Control System.All commercial cannabis businesses shall maintain an inventory control and reporting
system that accurately documents the present location,amounts,and descriptions of all cannabis and cannabis
products for all stages of the growing and production or manufacturing,laboratory testing and distribution
processes until sold or distributed.All commercial cannabis businesses shall maintain records of all sales or
transfers of cannabis and cannabis products.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
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Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 10 of16"
D.Empfoyee Registry.Each owner and/or operator of a commercial cannabis business shall maintain a current
register ofthe names and the contact information (including the name.address,and telephone number)of all
employees currently employed by the commercial cannabis business and shall disclose such register to any city of
San Luis Obispo official upon request
E.Reporting and Tracking of Product and of Gross Soles.Each commercial cannabis business shall have in place a
point-of-sale tracking system to track and to report on all aspects of the commercial cannabis business including,
but not limited to,such matters as cannabis tracking,inventory data,and gross sales (by Weight and by sale}and
shall ensure that such information is compatible with the city‘s recordkeeping systems.The system must have the
capability to produce historical transactional data for review by the city of San Luis Obispo.All information
provided to the city pursuant to this subsection shall be confidential and shall not be disclosed,except as may
otherwise be required under law.
F.Maintenance of Records.All records required by this chapter shall be maintained by the commercial cannabis
business for a period of not less than seven years and shall otherwise keep accurate records of all commercial
cannabis business activity and provide such records for inspection consistent with this code or any rules the city
council may adopt by resolution or ordinance.(0rd.1647 §4 (Exh.A (part)),2018}
9.10.140 Inspection and enforcement.
A.Unscheduled inspection during Business Hours.The city manager or hisiher designee and any other city of San
Luis Obispo official or inspector charged with enforcing any provisions of this code may enter a commercial
cannabis business at any time during the hours of operation without notice for the purpose of inspecting the
commercial cannabis business for compliance with the provisions of this code,the terms and conditions of the
commercial cannabis operator permit or any other city permit or state license,including inspection of the
recordings and records maintained pursuant to this chapter or the applicable provisions of state law.The right to
inspect under this section includes the right to copy recordings and records.
B.interference with inspection.It is unlawful for any person who owns.operates,manages or is employed by,or
has any responsibility over the operation of,a commercial cannabis business to refuse to allow,or to impede,
obstruct,or interfere with,an inspection by the city,or the citys review or copying of recordings (including audio
and video recordings}and records,or to conceal,destroy,alter or falsify any recordings or records.
C.Obtaining Samples.The city manager or histher designee or any other person charged with enforcing the
provisions of this chapter may enter the location of a commercial cannabis business at any time during the hours
of operation and without notice to obtain samples of cannabis and cannabis products to test for law enforcement
andior public safety purposes.Any samples obtained by the city of San Luis Obispo shall be logged,recorded,and
maintained in accordance with city of San Luis Obispo police department standards for evidence.At all other
times,the city manager or his/her designee may enter the location of a commercial cannabis business to obtain
samples of cannabis upon reasonable notice.as othennrise authorized by law or pursuant to a warrant.(0rd.1647
4 (Exh.A (partlj,2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
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Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 11 of 16
9.10.150 Outdoor commercial cannabis cultivation and activities
prohibited.
A.Outdoor Commercial Cuitivotion Prohibited.Outdoor commercial cannabis cuitivation,including,but not limited
to.cultivation in greenhouses,hoop structures,and by mixed light (part daylight!part artificial light),is prohibited
and unlawful.This section prohibits all outdoor commercial cannabis cultivation,including cultivation for profit or
not-for~profit cultivation,and including commercial cultivation for adult recreational use or medicinal purposes.
For purposes of this section,outdoor cultivation of cannabis by cooperatives is prohibited.All commercial
cannabis cultivation shall be conducted only inside a fully enclosed structure by a person or entity with a
commercial cannabis operator permit,a city use permit,and appropriate state license(s).See also Section
17.86.080{E}(?}(c).
B.Outdoor Commercial Cannabis Activities Prohibited.Outdoor storage.harvesting,drying,processing,or
manufacturing of commercial cannabis or cannabis products is prohibited and unlawful.{0rd.1647 §4 (Exh.A
Palm.2018)
9.10.160 Indemnification,insurance,reimbursement,consent.
As a condition of approval of any commercial cannabis operator permit issued pursuant to this chapter,the
permittee shall,at a minimum:
A.Execute an agreement to protect.indemnify.defend (at its sole cost and expense with counsel approved by
city),and hold the city of San Luis Obispo and its officers,em ployees.attorneys.representatives,and agents
harmless from and against any and all claims,demands.losses.damages,injuries,costs,expenses (including
attorneys’fees},fines,penalties,or liabilities arising from,related to or associated with:the issuance of a
commercial cannabis operator permit or use permit;the permitting or approving the operation of a commercial
cannabis activity;the collection of any fees,taxes,or charges from a commercial cannabis business;the
commercial cannabis business's or any of its owners',operators’.managers:em ployees',or agents’violation of any
federal.state or local laws:the city's suspension,revocation or refusal to renew the commercial cannabis operator
permit.
B.Maintain insurance with standard city coverages and limits.but with additional conditions thereon as deemed
necessaiy by the city attorney.
C.Reirn bu rse the city of San Luis Obispo for any and all costs,expenses.attorney fees,fines.penalties and court
costs that the city of San Luis Obispo may be required to pay as a result of any legal challenge related to the citYs
approval of a commercial cannabis operator permit pursuant to this chapter or any other city permit or the city of
San Luis Obispo’s approval of the operation of a commercial cannabis activity.The city of San Luis Obispo may,at
its sole discretion.participate at its own expense in the defense of any such action,but such participation shall not
relieve the obligations imposed under this chapter.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
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Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 12 of16
D.Consent to unscheduled inspections.production of records and recordings,and obtaining of samples of
cannabis and cannabis products by authorized city officials during normal operating hours as provided in this
chapter.[Ord.1647 §4 (Exh.A {paw},2018}
9.10.170 Compliance with laws.
The commercial cannabis business shall operate all times in compliance with all applicable state and local IaWS.
regulations.and any specific,additional operating procedures or requirements which may be imposed as
conditions of approval of the commercial cannabis operator permit or use permit or state licenseis).Nothing in
this chapter shall be construed as authorizing any action which violates state law or local law with respect to the
operation of a commercial cannabis activity.(0rd.1647 §4 (Exh.A (partn,2018}
9.10.180 Permit violation.
Compliance with all local and state cannabis-related laws shall be a condition ofa city commercial cannabis
operator permit and it shall be a violation of a commercial cannabis operator permit for a permittee or his or her
agents or employees to violate any local or state ca nnabis-related law.{Ord.1647 §4 (Exh.A (parti).2013)
9.10.190 Permit compliance monitoring.
Compliance with this chapter shall be monitored by the San Luis Obispo police department,code enforcement
staff and/or any other duly authorized agent of the city.Any compliance checks pursuant to this chapter shall be in
addition to any under any other ordinances,regulations or permits.At least four compliance checks of each
cannabis retailer shall be conducted during each tWelve«month period.At least two compliance checks of each
commercial cannabis business other than a retailer shall be conducted during each twelve-month period.The cost
of compliance monitoring shall be incorporated into the annual renewal fee.(0rd.1647 §4 (Exh.A (partii.2018)
9.10.200 Permit holder responsible for violations by employees or agents.
The responsible person and any entity to whom a commercial cannabis operator permit is issued pursuant to this
chapter shall be responsible for all violations of the regulations and ordinances of the city of San Luis Obispo
committed by the permittee or any employee or agent of the permittee,which violations occur in or about the
premises of the commercial cannabis business,even if the responsible person is not present.Violations by an
employee or agent may result in the termination or nonrenewal of the permit by the city.(0rd.1647 §4(Exh.A
pa rt)).2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
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Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 13 of16
9.10.210 Consumption or use prohibited on site and in public—Cannabis
event prohibited.
A.It is unlawful for any person or entity:
1.To sell.give,exchange,dispense or distribute cannabis or cannabis products for on-site consumption.use
or sampling on any business premises;or
2.To consume or use cannabis or cannabis products,whether by smoking,vaping,inhaling,eating.drinking
or any other means:
a.In.on or about the premises of any commercial cannabis business:
b.In,on or about any publicly owned or operated property;any place open to or accessible by the
public;any place smoking is prohibited;or any place visible from any public place with normal unaided
vision:
c.In on or about any other business.club.cooperative or commercial event,regardless if open to the
public or only to members.ticket holders or event invitees;
d.Any location where an entry or other fee is charged to attendees or to the host or where a thing of
value or consideration is received or exchanged,directly or indirectly,for or related to the provision of
cannabis.
B.It is unlawful for any person to conducta cannabis event in the city.(0rd.1647 §4 (Exh.A {partiL 2018)
9.10.220 Concurrent alcohol or tobacco sales or service prohibited.
A.No person shall dispense,serve.store.give away or consume.or cause or permit the sale,dispensing,serving.
giving away or consumption of alcoholic beverages or tobacco in or on the premises of a commercial cannabis
business.
B.No person shall conduct any commercial cannabis activity at any location where alcohol is sold or served.
0rd.1647 §4 (Exh.A (part)),2018)
9.10.230 Minors.
A.Minors shall not be allowed on the premises of a commercial cannabis business having either an "A”or"M"
license.or both.even if accompanied by a parent or guardian.
B.No person under twenty-one years of age shall be allowed on the premises of a commercial cannabis
business having either an "A"or "M"license or both.
The San Luis Obispo Municipal Code is current through Ordinance 1702.passed November 15,2021.
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Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 14 of 16
C.Every entrance to an "A"or"M"licensed commercial cannabis business shall be clearly and legibly posted with
the following notice:"ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY
LAW.VAL1D PHOTO ID REQUIRED."Each letter of the notice must be at least two inches high and clearly visible.
D.No person,business.or other entity conducting a commercial cannabis activity with either an "A"or "M"state
license shall employ any person who is not at least twanty—one years of age.{Ord.1647 §4 (Exh.A (perv).2018}
9.10.240 Sale of cannabis products or cannabis accessories by vending
machine prohibited.
A.No person shall locate,install,keep,maintain or use,or permit the location,installation,keeping,maintenance
or use on his,her or its premises of,any cannabis vending machine used or intended to be used for the purpose
of selling any cannabis products or cannabis accessories therefrom.
B.No person,business,or other entity shall sell,offer for sale.or display for sale any cannabis product by means
of a self—service display or vending machine.All cannabis products shall be offered for sale exclusively by means of
vendoriemployee assistance.
C."Vending machine"means any electronic or mechanical device or appliance the operation of which depends
upon the insertion of money,whether in coin or paper bill,or debit or credit card.or other thing representative of
value,which device or appliance dispenses or releases cannabis,cannabis productts}andlor cannabis accessories.
Ord.1647 §4 (Exh.A (perm.2018}
9.10.250 Security and public safety measures.
A.The city manager or hisiher designee(s)is authorized to promulgate all regulations necessary to implement
the requirements and fulfill the purposes and policies of this chapter,including but not limited to enforcement,
background checks for applicants,approval and enforcement of a commercial cannabis activity security plan,
including audio and video recordings of operations,and verification of compliance.
B.Every commercial cannabis activity shall have a security plan approved by the chief of police or designee prior
to issuance of a city commercial cannabis operator permit.
C.Hours of Operation.
1.Retail Storefront;Retail storefront commercial cannabis business shall not operate between the hours of
eight p.rn.and nine a.m.
2.Retail Nan-Storefront {Delivery Services).Retail non-storefront (delivery services)commercial cannabis
business shall not Operate between the hours of ten p.m.and six a.m.
3.Commercial Other than Retail.All commercial cannabis activity other than retail is prohibited between the
hours often p.m.and seven a.m.(Ord.1647 §4 (Exh.A (pawl).2018}
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
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Ch.9.10 Cannabis Regulations I
San Luis Obispo Municipal Code Page 15 of 16
9.10.260 Limitations on city's liability.
The city shall not be liable for issuing,or failing or refusing to issue,suspending,revoking or failing to renew a
commercial cannabis operator permit pursuant to this chapter or otherwise approving or disapproving the
operation of any commercial cannabis business pursuant to this chapter.(0rd.1647 §4 {Exh.A {part1}.2018)
9.10.270 Fees deemed debt to city.
The amount of any fee,cost or charge imposed pursuant to this chapter shall be deemed a debt to the city of San
Luis Obispo that is recoverable in any court of competentjurisdiction.(0rd.1647 §4 {Exh.A (partii.2018)
9.10.280 Violation and penalties.
A.Misdemeanor.Each violation of the provisions of this chapter shall be a misdemeanor and is punishable as
provided in Section 1 .12.030;provided,that where the city attorney determines that such action would be in the
interest ofjustice,heishe may specify in the accusatory pleading that the offense shall be an infraction.Any
violation of the provisions of this chapter by any person is also subject to administrative fines as provided in
Chapter L23.
B.infraction Violation.Where the city attorney determines that,in the interest of justice,a violation of this
chapter ls an infraction,such infraction is punishable by a fine not exceeding one hundred dollars for a first
violation.a fine not exceeding two hundred dollars for a second violation of the same provision within one year,
and a fine not exceeding five hundred dollars for each additional infraction violation of the same provision within
one year.
C.The fine amounts set forth above may be modified,from time to time,by city council resolution.In no event
shall such fine amounts exceed the amounts authorized by state law.
D.if the city of San Luis Obispo finds,based on substantial record evidence.that any person has engaged in
commercial cannabis activity in violation of this chapter,the city shall fine that person as follows:Each day that
person without a commercial cannabis operator permit offers cannabis or cannabis products for sale or exchange
shall constitute a separate violation and assessed a fine in accordance with Sections 1.12.080 and 1 .24.070(A}.
E.Each person committing,causing,or maintaining a violation of this chapter or failing to comply with the
requirements set forth herein shall be deemed guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed,continued.maintained,or permitted
by such person and shall be punishable accordingly.
F.The violation of any provision of this chapter shall be and is hereby declared to be a public nuisance and
contrary to the public interest.Any public nuisance under this chapter may,at the city's discretion,be abated by
the city by civil process by means of a restraining order,preliminary or permanent injunction,or in any manner
provided by law for the abatement of such nuisance.The city shall also be entitled to recover its full reasonable
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 1 0017
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code
r Page 16 of 16
costs of abatement The prevailing party in any proceeding associated with the abatement of a public nuisance
shall be entitled to recovery of attorneys’fees incurred in any such proceeding if the city has elected at the
initiation of that individual action or proceeding to seek recovery of its own attorneys'fees.
G.In lieu of issuing a criminal citation.the city may issue an administrative citation to any person responsible for
committing,causing or maintaining a violation of this chapter.Nothing in this section shall preclude the city fmm
also issuing a citation upon the occurrence of the same offense on a separate day.
H.The remedies set forth in this chapter are cumulative and in addition to any and all other remedies available
at law or equity,whether set forth elsewhere in the San Luis Obispo Municipal Code.or in state or federal laws,
regulations,or case law.In addition to other remedies provided by this chapter or by other law,any violation of
this chapter may be remedied by a civil action brought by the city attorney,including but not limited to
administrative or judicial nuisance abatement proceedings.civii or criminal code enforcement proceedings.and
suits for injunctive relief.[OrcL 1647 §4 [Exh.A (perm,2018)
9.10.290 Severability.
If any section,subsection,subdivision,paragraph,sentence,clause or phrase of this chapter is for any reason held
to be invalid or unenforceable,such invalidity or unenforceability shall not affect the validity or enforceability of
the remaining sections,subsections,subdivisions.paragraphs,sentences,clauses or phrases of this chapter or the
rules adopted hereby.The city council of the city of San Luis Obispo hereby declares that it would have adopted
each section,subsection.subdivision,paragraph,sentence,clause or phrase hereof,irrespective of the fact that
any one or more other sections,subdivisions.paragraphs,sentences.clauses or phrases hereof be declared
invalid or unenforceable.(0rd.1647 §4 (Exh.A (partil,2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15.2021.
Disclaimer:The City Clerk's Office has the official version of the San Luis Obispo Municipal Code.Users should
contact the City Clerk‘s Office for ordinances passed subsequent to the ordinance cited above.
Note:This site does not support Internet Explorer.To view this site.Code Publishing Company recommends using
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it!..i
City Telephone:(805}781-71 00
CodeEubllshmggompany
The San Luis Oblspo Municipal Code is current through Ordinance 1702.passed November 15.2021.
EXHIBIT 2
RJN Ex 2 0018
Office of the City Clerk
990 Palm Street.San Luis Obispo.CA 93401~3218
305.731.7100
siocrtyorg
CERTIFICATION
I,Teresa Pun-ington,City Clerk,do hereby certify under penalty of peljury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED:Januarv 25.2&2
dmgmaku
Teresa Purrington,City Clerk
City of San Luis Obispo
c \u I,uncut.
RJN Ex 2 0019
1186.030 Cannabis San Luis Obispo Municipal Code Page 1 of 11
17.86.080 Cannabis.
A.Purpose.The purpose of this section is to protect the public health,safety,and welfare,enact strong and
effective regulatory and enforcement controls in compliance with state of California law,protect neighborhood
character,and minimize potential for negative impacts on people.communities,and the environment within the
city of San Luis Obispo by establishing land use requirements and development standards for cannabis activities.
Cannabis activity.as defined in Section 17.156.008 (C Definitions}.includes the cultivation,possession,
manufacturing,processing,storing,laboratory testing,labeling,transporting,distribution,delivery,or sale of
cannabis or a cannabis product for either personal or commercial use.Therefore,this section recognizes that
cannabis activities require land use controls due to state [egai constraints on cannabis activity,and the potential
environmental and social impacts associated with cannabis activity.Nothing in this section is intended to affect or
alter federal law,which identifies marijuana (cannabis)as a Schedule l controlled substance.
B.Applicabiiiga Nothing in this section shall be construed to allow any conduct or activity relating to the
cultivation,distribution,dispensing,sale,or consumption of cannabis that is otherwise illegal under local or state
law,statute,rule or regulation.It is neither the intent nor the effect of this chapter to condone or legitimize the
illegal use,consumption or cultivation of cannabis under state or local law and nothing herein is intended to
interpret,alter,interfere with or in any way affect otherwise applicable federal law.
C.Definitions.See Chapter Egg,Land Use Definitions (Table 2-1:Uses Allowed by Zone).Terms used in this
section that are defined terms under state cannabis statutes or regulations shall have the same meaning as the
respective state definition,as now defined or as the definition may be amended by the state in the future,except
as otherwise specifically provided in Chapter Land Use Definitions {Table 2-1:Uses Allowed by Zone),or
Chapter gig,Cannabis Regulations.
D.Personal Cultivation.
1.indoor Personal Cultivation.Indoor personal cultivation of cannabis does not require a permit and is
allowed in all private residences subject to all the following minimum performance standards:
a.All indoor personal cultivation shall occur only inside a private residence or fully enclosed and secure
accessory building or structure to a private residence.Accessory building or structure for indoor personal
cultivation of cannabis does not include a greenhouse or hoop structure.
b.Structures and equipment used for indoor cultivation,such as indoor grow lights,shall comply with
all applicable building,electrical and fire code regulations as adopted by the city.
c.All accessory buildings and structures used for indoor cultivation shall comply with the city’s zoning
regulations and building codes.
d.Indoor personal cultivation of cannabis may occur inside a dwelling andior an accessory building or
structure,subject to the following restrictions:
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0020
1736.080 Cannabis San Luis Obispo Municipal Code Page 2 of 11
i.The cumulative cultivation for cannabis shall not exceed six cannabis plants per private
residence.
ii.All personal cultivation shall be conducted by persons tWenty-one years of age or older,and the
cumulative total of cannabis plants per private residence,indoor and outdoor,shall not exceed six
cannabis plants,regardless of the number of persons residing on the property.
e.Personal cultivation of cannabis shall not interfere with the primary occupancy of the building or
structure,including regular use of kitchen(s)or bathroomis).
f.Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no
exterior evidence of cannabis cultivation occurring at the property visible with normal unaided vision
from any public place,or the public right-of—way.Personal cultivation of cannabis shall be shielded to
confine light and glare to the interior of the structure.
g.Nothing in this section is intended.nor shall it be construed,to preclude any landlord from limiting or
prohibiting personal cultivation of cannabis by tenants.
h.Nothing in this section is intended,nor shall it be construed,to authorize commercial cultivation of
cannabis at a private residence.
i.Personal cultivation of cannabis shall not create:offensive odors or excessive dust.heat,noise.light,
glare,smoke,traffic,or hazards due to the use or storage of materials.processes,products or wastes.or
other unreasonable impacts to persons of normal sensitivity who are living,working or lawfully present in
the vicinity of the personal cultivation.
j.Cannabis cultivation areas in a private residence shall be locked at all times when the cultivator is not
present.
2.Outdoor Personal Cultivation.Outdoor personal cultivation of cannabis does not require a permit and is
allowable at all private residences,subject to all of the following minimum performance standards:
a.Outdoor personal cultivation of cannabis is not permitted in the front yard between the public right-
of-way and the private residence.Outdoor personal cultivation is only permitted in a rear or side yard
that is entirely enclosed by a solid.opaque fence that is associated with a private residence used for
residential purposes.
b.The cannabis plants shall be placed at a minimum setback of five feet from the edge of canopy to the
property line.
c.Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no
exterior evidence of cannabis cultivation occurring at the property visible by normal unaided vision from a
public place or the public right-of—way.Cultivation may occur within a greenhouse or hoop structure {as
long as it complies with the performance standards),but mixed light cultivation is prohibited.
d.All outdoor personal cultivation shall be conducted by persons twenty-one years of age or older.
The San Luis Obispo Municipal Code is current through Ordinance 1702.passed November is,2021.
RJN Ex 2 0021
17.86.08!)Cannabis I San Luis Oblspo Municipal Code Page 3 of 11
e.The cumulative total of cannabis plants cultivated outdoor shall not exceed six cannabis plants per
parcel containing a private residence,regardless of the number of persons residing on the property.and
regardless of the number of private residences on the parcel.
f.Nothing in this section is intended,nor shall it be construed.to preclude any landlord from limiting or
prohibiting cannabis cultivation by tenants.
g.Nothing in this section is intended,nor shall it be construed,to authorize commercial cultivation of
cannabis at a private residence outdoors.
h.Outdoor personal cultivation of cannabis shall not create:offensive odors or excessive dust,heat.
noise,light,glare,smoke,traffic,or hazards due to the use or storage of materials,processes,products or
wastes,or other unreasonable impacts to people of normal sensitivity living,working or lawfully present
in the vicinity of the personal cultivation.
E.Commercial Cannabis Businesses.
1.Commercial Cannabis Operator Permit.
a.No person or entity shall operate or conduct a commercial cannabis activity or commercial cannabis
business without first obtaining both a commercial cannabis operator permit from the city pursuant to
Chapter w,Cannabis Regulations,and a use permit from the city pursuant to this chapter to conduct
the commercial cannabis activity at a specific location.Any permit authorizing commercial cannabis
activity pursuant to this chapter shall be conditioned upon the holder obtaining and maintaining a city
commercial cannabis operator permit and the appropriate state license for the activity.
b.A commercial cannabis activity pursuant to this chapter may be transferred,assigned.or bequeathed.
by operation of law or otherwise as described in Section 9.10.120.
c.The commercial cannabis operator permit must be renewad each year.
d.Expiration of the use permit shall be consistent with Section 17.104.070.
2.Na Vested Right to Operate.No person shall have any entitlement or vested right to operate a cannabis
business solely by virtue of licensing under these regulations.Operation of cannabis activity(ies)requires both
the approval ofa conditional use permit and a commercial cannabis Operator permit under Chapter m,
which is a revocable privilege and not a right in the city.The applicant bears the burden of proving that all
qualifications for licensure have been satisfied and continuously maintained prior to conducting a cannabis
business at an otherwise allowed location within the city.
3.State Application Required.Filing a local application for cannabis activityfies)with the city does not
constitute an application with the state of California.A separate state application and license process must be
followed through with the state.
4.Application Requirements.All commercial cannabis activities require qualification through the commercial
cannabis operator selection approval process in Chapter 9.10,Cannabis Regulations,a state license and a use
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0022
1186.080 Cannabis
I
San Luis Obispo Municipal Code Page 4 of 11
permit for a specific location pursuant to this chapter.The application for a use permit shall include the
following information:
a.Site plan,floor plans,and a general description of the nature.square-footage.parking and type of
cannabis activityfies}being requested.
b.
d.
An operations plan including:
i.A security plan to the approval of the chief of police,pursuant to criteria approved by resolution
of the city council.including but not limited to on-site security measures both physical and
operational and,if applicable,security measures for the delivery of cannabis associated with the
commercial cannabis business and payment of taxes and fees;
ii.Plan for restriction of access by minors;
iii.Employee safety and training plan:
iv.Odor,noise and light management plan:
v.Estimated energy usage and energy efficiency plan;
vi.Estimated water usage and water efficiency plans:
vii.Waste management pla n;and
viii.For retail sales,provide an educational material dissemination plan.
Proposed signage:
i.Must comply with city's sign regulations for size,area and type of sign,no exceptions allowed.
ii.Internal illumination of signs is prohibited.
iii.No portion of the cannabis plant may be used in any sign visible from the public right-of—way.
iv.Provide sign size,height,colors,and design of any proposed signage at the site.
v.Must include a sign inside the premises that states:"Smoking,ingesting,vaping,eating or
consuming cannabis or cannabis products on this site or in a public place is prohibited."
vi.Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-
one years of age from entering.
An analysis that demonstrates neighborhood compatibility and a plan for addressing potential
compatibility issues.
E.Applications for retail storefronts shall include a vicinity map showing at least one thousand feet of
surrounding area and the distances to the following uses:any preschool,elementary school,junior high
school,high school,public park or playground,six hundred feet from any licensed daycare center,and
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0023
1736.080 Cannabis I San Luis Obispo Municipal Code Page 5 of 11
three hundred feet from a residentially zoned area.Youth centers do not require a buffer.Distance shall
be measured from the nearest point of the property line of the site that contains the commercial
cannabis activity to the nearest point of the property line of the enumerated use using a direct straight-
line measurement.
f.Proof of ownership.option to purchase,{or lease agreement or option to lease with landowner‘s
express written consent to the proposed commercial cannabis activityfies)to be conducted on the
premises)or other proof of right to apply for the permit at the location.
g.A list of all other uses on the property.
5.Commercial Cannabis Development Standards.Each cannabis business is required to meet the following
standards:
a.Qualification through the Chapter w,Cannabis Regulations,commercial cannabis operator
selection process to apply for a commercial cannabis operator permit.Submittal of a use permit
application to conduct the commercial cannabis business within the zones specified for each type of
commercial activity listed below.
b.Commercial cannabis facilities shall be allowed in areas demarcated with CAN overlay zoning and as
allowed in the underlying zone for each type of commercial cannabis activity.
c.All commercial cannabis facilities shall be sited and/or operated in a manner that prevents cannabis
odors from being detected off site.Commercial cannabis activities shall not create offensive or excessive
odors,dust,heat,noise,light,glare.smoke,traffic.or hazards due to the use or storage of materials,
processes,products or wastes.or other unreasonable impacts to people of normal sensitivity living.
working or lawfully present in the vicinity of the commercial facility.
d.All commercial cannabis operations must be concealed from public view at all times and there shall
be no exterior evidence of cannabis or cannabis products occurring at the property visible with normal
unaided vision from any public place,or the public right-of-way.Commercial manufacturing of cannabis
or cannabis products shall be shielded to confine light and glare to the interior of the structure.
e.All commercial cannabis facilities shall include adequate measures that address enforcement
priorities for commercial cannabis activities,including restricting access to the public and to minors and
ensuring that cannabis and cannabis products are only obtained from and supplied to other permitted
licensed sources within the state and not distributed out of state.
f.The use permit to be issued under this chapter shall include,but is not limited to,the following
conditions:
i.The obtaining and maintaining of the commercial cannabis operator permit and appropriate
state license.
The San Luis Obispo Municipal Code is current through Ordinance 1702.passed Novamber 15.2021.
RJN Ex 2 0024
17.86.080 Cannabis San Luis Obispo Municipal Code Page 6 of1‘l
ii.Payment of all applicable current and future state and local taxes and all applicable commercial
cannabis fees and related penalties established by the city council.including but not limited to
application,administrative review,inspection,etc.
iii.The commercial cannabis operator permit or a controlling interest in the permit may not be
assigned,transferred or bequeathed.by operation of law or otherwise,unless permitted as described
in Chapter 9.10,and the permit shall terminate automatically on such event.
iv.Any commercial cannabis operator permit issued pursuant to this chapter and Chapter 9.10
expires after one year,unless renewed.
v.Prohibition of on-site consumption of cannabis at:(A)at a commercial cannabis business or
commercial cannabis activity location:(B)any other business,club or cooperative or event.regardless
if open to the public or only to members;and (C)anywhere an entry or other fee is charged to
attendees or the host or thing of value or consideration is received or exchanged.
vi.Prohibition of the possession.storage.sale,distribution or consumption of alcoholic beverages
on the premises,or the holding of license from the State Division of Alcoholic Beverage Control for
the sale of alcoholic beverages,or operating a business that sells alcoholic beverages on or adjacent
to the commercial cannabis activity site.
vii.No cannabis products or cannabis accessories may be displayed in windows or visible from the
public right-of—way or from places accessible to the general public.
viii.Prohibition of minors and persons under the age of twenty-one on the premises,even if
accompanied by a parent or guardian.
ix.Outdoor storage of cannabis or cannabis products is prohibited.
6.Commercial Cultivation.
a.Commercial Cannabis Cultivation.Commercial cannabis cultivation may be conditionally permitted
indoors only,subject to the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit pursuant to Chapter fl,Cannabis Regulations,and appropriate
state license,in the following zones:
i.Service commercial (C—S);
ii.Manufacturing {M};
iii.Business park (BF).
b.A maximum of seventy thousand square feet of cumulative canopy area (includes total canopy of
either horizontal or vertical growing situations)for cultivation and nurseries shall be allowed for indoor
commercial cannabis cultivation in the city within the zones identified above,including microbusinesses
under subsection of this section.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0025
17.86.08!)Cannabis
1
San Luis Obispo Municipal Code Page 7 of 11
c.Outdoor commercial cannabis cultivation,including but not limited to cultivation in greenhouses,
hoop structures.and by mixed light (part daylightlpart artificial light),is prohibited.All commercial
cannabis cultivation shall be conducted only inside a fully enclosed,legally permitted structure that meets
all applicable building and other codes.
d.Commercial cannabis cultivation conditional permits include the following:
i.Speciaigr Cuitivator.A maximum of no more than five thousand square feet of canopy of indoor
cultivation (either in horizontal or vertical growing situations)and includes processing.
li.Small Cuitivator.A maximum of no more than ten thousand square feet of canopy of indoor
cultivation (either in horizontal or vertical growing situations}and includes processing.
iii.Nursery Cannabis.A maximum of no more than ten thousand square feet of indoor propagation
area (either in horizontal or vertical growing situations).
e.DevelopmentStdndards.
i.Compliance with subsection {E)(5}of this section,Commercial Cannabis Development Standards.
ii.Canopy areas shall be easily identifiable for inspection and measurement.Each unique area
included in the total canopy calculation shall be separated by an identifiable boundary such as an
interior wall or by at least ten feet of open space (see "Canopy"definition in Chapter 17.156}.
iii.All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start
of the operation.
iv.Pesticides and fertilizers shall be properly labeled.stored,and applied to avoid and prevent
contamination through erosion.leakage,or inadvertent damage from rodents.pests,or wildlife.
7.Manufacturing.
a.Manufacturing (Nonvolatile)Permissible.Nonvolatile cannabis or cannabis products manufacturing
may be conditionally permitted indoors only,subject to the requirements of this section and the obtaining
and maintaining of a commercial cannabis operator permit pursuant to Chapter 3.12,Cannabis
Regulations,and appropriate state license,in the following zones:
i.Service commercial (C-S};
ii.Manufacturing {M};
ili.Business park (BP).
b.Manufacturing {Voiatiie}Prohibited.Cannabis or cannabis products manufacturing involving volatile
solvents.processes,compounds or substances is prohibited.
c.DeveiopmentStano‘ara‘s.
i.Compiiance with subsection {E){5}of this section.Commercial Cannabis Development Standards.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November is,2021.
RJN Ex 2 0026
17.86.080 Cannabis San Luis Obispo Municipal Code Page 8 of11
ii.Outdoor manufacturing of cannabis or cannabis products is prohibited.
iii.A complete description of all products used in the manufacturing process including the cannabis
supply chain,liq uids.solvents,agents,and processes.
iv.Storage protocol and hazard response plan.
v.Employee safety and training equipment plan.plus materials safety data sheet requirements,if
any.
8.Distribution.
a.Commercial cannabis distribution may be conditionally permitted,subject to the requirements of this
section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter
9.10.Cannabis Regulations,and appropriate state license,in the following zones:
i.Service commercial (C-S};
ii.Manufacturing (M);
iii.Business park {BP};
b.Developmentsmndards.
i.Compliance with subsection m of this section,Commercial Cannabis Development Standards.
9.Testing Lab oratory.
a.Commercial cannabis testing may be conditionally permitted,subject to the requirements of this
section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter
9.10,Cannabis Regulations,and appropriate state license,in the following zones:
i.Service commercial {C—S);
ii.Manufacturing (M):
iii.Business park {BP};
iv.Office (O).
b.DevelopmentStandords.
i.Compliance with subsection m of this section,Commercial Cannabis Development Standards.
ii.The cannabis testing laboratory,as proposed.will comply with all the requirements of the state
for the testing of cannabis.including dual licensure and participation in an authorized track~and~trace
program.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0027
1736.080 Cannabis I San Luis Obispo Municipal Code Page 9 of 11
iii.The owners,investors,permittees.operators,and employees of the cannabis testing laboratory
will not he associated with.nor have any financial interest in,any other form of commercial cannabis
activity.
iv.The cannabis testing laboratory is accredited by an appropriate accrediting agency as approved
by the state and further described in Health and Safety Code Section 5238 and as it may be amended.
v.The cannabis testing laboratory operating plan demonstrates proper protocols and procedures
for statistically valid sampling methods and accurate certification of cannabis and cannabis products
for potency,purity,pesticide residual levels,mold,and other contaminants according to adopted
industry standards.
10.Retail—Storefront.
a.Commercial cannabis storefront retail may be conditionally permitted.subject to the requirements of
this section and the obtaining and maintaining of a commercial cannabis operator permit,and the
appropriate state license,in the following zones:
i.Retail commercial {C-R):
ii.Service commercial {C-S);
b.Development Standards.
i.Compliance with subsection (Eifl of this section.Commercial Cannabis Development Standards.
ii.Only three retail storefronts.which must front arterial streets.will be allowed within the city.
Selection of the retail commercial cannabis operator will be selected from qualified commercial
cannabis operators as set forth in Chapter w,Cannabis Regulations.One of the retail storefronts
shall have a medicinal license and may also have an adult use license.
iii.Retail storefronts shall be located at least one thousand feet from any preschool,elementary
school,junior high school,high school,public park or playground.six hundred feet from any licensed
day care center,and three hundred feet from any residentially zoned area.Youth centers do not
require a buffer.Distance shall be measured from the nearest point of the property line to the
nearest point of the property line of the enumerated use using a direct straight-line measurement.
iv.Retail storefronts must be separated from each other by at least one thousand feet.
v.Hours of operation shall be limited between nine a.m.to eight p.m.
vi.Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-
one yea rs of age from entering.
1 1 .Retaii—Non—Storefront (Delivery Services).
a.Commercial cannabis non-storefront retail may be conditionally permitted,subject to the
requirements of this section and the obtaining and maintaining of a commercial cannabis operator
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0028
1186.080 Cannabis San Luis Obispo Municipal Code Page 10 of 11
permit pursuant to Chapter 9.10.Cannabis Regulations,and the appropriate state iicense,in the following
zones:
i.Service commercial (C—S);
ii.Manufacturing (M);
iii.Business park (BF).
DeveIOpment Standards.
i.Compliance with subsection of this section,Commercial Cannabis Development Standards.
ii.Hours of delivery shall be limited between six a.m.to ten-pm.
12.Microbusiness.
a.Microbusinesses fail into Mo groups as described below and may be conditionally permitted,subject
to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator
permit pursuant to Chapter 9.10,Cannabis Regulations.and the appropriate state license,in the following
zones:
b.
i.Microbusinesses with no more than fifty percent of the gross receipts being from cu Itivation,
distribution and manufacturing are allowed in the following zones:
a}Retail commercial (C-R).
ii.Microbusinesses with no more than fifty percent of the gross receipts being from storefront retail
sales are allowed in the following zones:
a)Manufacturing {M};
b)Businesspark(BP).
iii.Microbusinesses located in the service commercial (GS)zone are not limited by gross sales
receipts from cultivation.distribution,manufacturing or retail sales.
Microbusinesses are subject to the seventy thousand square feet of canopy cultivation citywide
limitation {either in horizontal or vertical growing situations)and the limit of three retail storefronts
fronting arterial streets citywide set forth in subsection {E)(10}of this section.
C.Development Standards.
i.Compliance with subsection (E)(5)of this section,Commercial Cannabis Development Standards.
ii.A maximum of seventy thousand square feet of cumulative canopy for cultivation and nurseries
shall be allowed for indoor cultivation in the city within the allowed land use zones.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
RJN Ex 2 0029
17.861180 Cannabis San Luis Obispo Municipal Code Page 11 of1'l
iii.All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start
of the operation.
iv.Pesticides and fertilizers shall be properly labeled,stored,and applied to avoid and prevent
contamination through erosion,leakage,or inadvertent damage from rodents,pests.or wildlife.
v.Only three retail storefronts,which must front arterial streets,will be alloWed within the city.
Selection of the retail commercial cannabis operator will be selected from qualified commercial
cannabis operators as set forth in Chapter m,Cannabis Regulations.One of the retail storefronts
shall have a medicinal license and may also have an adult use license.
vi.Any microbusiness with a retail storefront shall require a planning commission use permit.
vii.Retail storefronts shall be located at least one thousand feet from any preschool,elementary
school,junior high school.high school,public park or playground,six hundred feet from any licensed
day care center,and three hundred feet from any residentially zoned area.Youth centers do not
require a buffer.Distance shall be measured from the nearest point of the property line to the
nearest point of the property line of the enumerated use using a direct straight-line measurement.
viii.Retail storefronts must be separated from each other by at least one thousand feet.
ix.Hours of retail shall be limited to between nine a.rn.to eight p.m.and delivery shall be limited to
between six a.m.to ten p.m.
x.Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-
one years of age from entering.{0rd 1647 §5 (Exh.B},2018)
The San Luis Ohispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Disclaimer:The City Clerk's Office has the official version of the San Luis Obispo Municipal Code.Users should
contact the City Clerk's Office for ordinances passed subsequent to the ordinance cited above.
Note:This site does not support Internet Explorer.To view this site,Code Publishing Company recommends using
one of the following browsers:Google Chrome,Flrefox,or Safari.
Ii
City Telephone:(805)781-71 00
CodeEublisthgLmmauy
The San Luis Obispo Municipal Code is current through Ordinance 1702.passed November 15,2021.
EXHIBIT 3
RJN Ex 3 0030
Office of the City Clerk
990 Palm Street,San Luis Obispo,CA 93401-3218
805.781.7100
slocityorg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED:February 2,2022
Teresa Purrington,City Cle
City of San Luis Obispo
RJN Ex 3 0031
805.781.7170
Commercial Cannabis Business Operators fiermit-.-Applicati§on
A.Business Information
CITY OF SAN LUIS OBISPO
Community Development Department
919 Palm Street,San Luis Obispo,CA 93401 lSPo
Business Name:Natural Healing Center -SLO
Property Address:2600 &2640 Broad Street,San Luis
Obispo,CA 93401
Assessor Parcel Number:004-925-033 8:004-925-034 Zoning Designation:C-R&
004-925-035 (Proposal Will Merge Lots)
D Cultivation -Specialty (Up to 5,000
B.Business Type (Check all that apply)
U Cultivation -Small (5,001 -10,000 D Cultivation —Nursery (Up to 10,000Sq.Ft.Max)Sq.Ft.Max)Sq.Ft.Max)D Manufacture (Non-volatile Raw U Manufacture (Cannabis Infusion)U Manufacture (Itinerant—No
Product Exuaction)permanent facility)U Manufacturer (Research and D Distributor D Testing Laboratory
Development)
U Retailer Storefront (Adult-use)D Retailer Storefront (Medical)E Retailer Storefront (Adult-use and
Medical)U Retailer Non-storefront (Adult-use)D Retail Non-Storefront (Medical)[II Retail Non-storefront (Adult-use and
MedicalDTransporterDMia‘obusiness (No more than 50%
GR“from cultivation,distribution
and manufacturing)
D Microbusiness (More than 50%GR“
from cultivation,distribution and
manufacturing)*
GR -Gross Receipts
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,whichincludespartners,officers,directors,and stockholders of every corporation,limited liability company,orgenerallimitedpartnershipthatownsatleast10%of the stock,capital,profits,voting rights,or membership interestofthecommercialcannabisbusinessorthatisoneofthepartnersinthecommercialcannabisbusiness;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:Managi_ng Member/CEO DOB:_
Social Securi No:-
Ifanalicant is a not for profit:corporation,partnership or other bustle-55 entity piease [venom
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
RJN Ex 3 0032
93405
Primary Phone No:_3 Alt.Phone No:_
Email Address:helios@nhcgroverbeach.com -
Preferred method of contact (check one)El Mail Phone El Email
E.Additional Responsrbie Party Information
Name:Nicholas Andre
Title:000
Social Security No:_
Mailing Address:
Primary Phone No:_Alt.Phone No:_S
Email Address:—I
Preferred method of contact (check one)[I Mail E Phone X Email
Ptease attach adoftronat streets If there are more than 2 Responsrbte Parties.
F.Information on Property Owner or Landlord
Name:CK Gilbert LLC /CCKL Broad LLC
Please note:Helios Dayspring has an
execu purc ase 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)[I Mail E Phone I]Email
If the applrirznt is not the logo!owner of the property,the appltlcetron must be accompanied by a patented Owner’s
Statement of Consent to operate a commercial cannabis busrbess on the property.
G.Rotated License Information
The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the
past 10 years.
Name:Helios Dayspring
City or County:San Luis Obispo County Start Date:11/01/2011 End Date:12/31/2018
E Yes [I No (If yes,please provide the following information)
RJN Ex 3 0033
Business Name:House of Holisu'cs Corp.Business Type:Medical Delivery Service
Phase aflacfiaaflffimalsheers Kimmy.—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
oode,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.
X Community Benefit:The applicant shall demonstrate to the satisfaction of the City of its intent to localhiringandcommunitysupport.
E Education Plan:A plan describing the type of cannabis education and prevention efforts that will be provided
by the business to the community.
X Security Plan:A detailed security plan outlining the measures that will be taken to ensure the safety of persons
E
r14
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.
K4 Water Efficiency Plan:The applicant shall demonstrate to the satisfaction of the City that sufficient water
supply exists for the use.
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.
fl 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.
RJN Ex 3 0034
E Energy Efficiency Plan:Documentation that the applicant has identified the best way,including carbon free
power sources to provide reliable and efficient energy solub‘ons for their business.
H.City Authorization
X 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
E I,the applicant,agree to the fullest extent permitted by law,any actions taken by a public officer oremployeeundertheCityofSanLuisObi5poregulationsforCommercialCannabisBusinesses,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
Oblspo 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 SBff time,
expenses or costs)against the City to attach,set aside,void or annul,any cannabis-related approvals and actions
and strictly oomply 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 permitbee shall reimburse the City for its reasonable
legal costs and attorneys’fees.
J.Nonrefundable Filing Fee
E I,the applicant,understand and accept that the nonrefundable filling fee must be submitted with thecompetedCommercialCannabisBusinessOperatorsPermitApplicationandwillberetainedbytheCityregardlessoftheout-
come of the application review.
K.Background -Request for Live Scan Services
E 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
o Application was received late
o Application is incomplete orinaccurateIFacilitydoesnotmeetCitybusinesslicensing standards
o More than one application is received for the same cannabis business type on one property (stacking of
applications)
RJN Ex 3 0035
M.Applicant's Certification
I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis ObispoMunicipalCodepertainingtotheestablishmentandoperationofthecommercialcannabisbusiness.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
pegaity
of perjury under the laws of the State of California,that I have personal knowledge of the
information co
@is
pplication and that the information contained herein is true and correct.
Signature:M Date:01/29/2019
the information
mntainedggbgumt
is subject to disdasure under the Public Recent:Act.
App/trams provro'ing raise or misieach'ng infonnation in the pennitting process wiii resuit in rejembn of the
ago/imam and/or nuiiification or revocation of any issued penmrt.Ali mmercrai cannabis pennits must he
approved by the City Council.the City may attach commits to the permit A oommemiai cannabis pennit may be
abated if any of the foiiowing findings are made:
9 The app/rtetrbn does not meet aii requirements of the month!cannahts ordinance;or
19 Approval wow?!very hiteij/resutt in harm to pubirc safety;hearth,or where;or
fit)Potential negative impacts of the use cannot be mitigated with COMM or through the mince
requirements.
Appliants Miihe Wests
RJN Ex 3 0036
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 aumorized representative,granting the applicant permission to apply for a cannabis
business operator permit.
I,the undersigned legal owner of record,
he?
grant
permizion
to:
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spam,
W phone,-
l
Mailing Address:75“)in!)0565 V.“”
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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:26-00 -2640 934-on
Assessor'sParcel Number:flag .915 'C135 2 mg .3&5 .93$Z 0096.923 '653
Printed Name ofOwner of Record:CK (zit/66¢?“Luca 1/
CLKt—w BQOMFD L4,”...
Address of Owner of Record
Phone
Signature of Owner of Record:Date:
SeaAttaohed Certificate
RJN Ex 3 0037
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE §1189
State of California
Coumén‘uiieueiavo
Omsk)?ml .20“)!before me,T.(It);
personally appear
who proved to me on the basis of satisfactory evidence to be the personis}whose nameis}isiare subscribed
to the within Instrument and acknowledged to me that mmithey executed the same In Writheir
authorized capacitflies),and that by hisfl-raritheir sig natureis}on the instrument the personls),or the entity
upon behalf of which the person(s}acted,executed the instrument.
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.T.COI
Notary Public -talifnrnia
Santuis pbfspofom E WITNESS my hand and official seal.
Cmmumn ii 2265076
My Comm.Expires Oct 29.2022
Signature fit at iI
Place Notary Seal and/or Stomp Above Signature of Notary Pubiic
OPTIONAL
Completing this information can deter alteration of the document or
fraudulent reottachment of this form to an unintended document.
Description of Attached D cument
Title or Type of
DochenT
1'5 MIDI—'
Wt 161‘]NumberofPages:—_I.'
Signeris)Other Than Named Above:
Document Date:
Capacityaes)Claimed by Signer(s)
Signer's Name:Signer's Name:
I:Corporate Officer —Titleis):I:l Corporate Officer —Titleis}:
I:I Partner —El Limited I:General I'J Partner—El Limited I:General
I:I Individual El Attorney in Fact El Individual El Attorney in Fact
El Trustee El Guardian of Conservator I:l Trustee I:I Guardian of Conservator
I:l Other:I]Other:
Signer is Representing:Signer is Representing:
@2017 National Notary Association
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
EXHIBIT 4
RJN Ex 4 0038
Office of the City Clerk
990 Palm Street,San Luis Obispo,CA 93401-3218
805.781.7100
slocityorg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED:February 2,2022
Teresa Purrington,City Cle
City of San Luis Obispo
NATU PAL H EALI NC CENTER
Cannabis Business Operators Permit Application
City of San Luis Obispo:Retail
Version l —Updated January 27,2019
Helios Dayspring
helios@nhcgroverbeach.com
805—888—7823
RJN EX 4 0039
flea m9 0
NHC SLO CANNABIS RETAIL
COVER LETTER
January 27,2019
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo,CA 93401
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 isjustthe beginning ofa 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 thanl<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 —
Sincerely,
Mu a.
clay/gig
Helios Dayspring
Owner,Natural Healing Center
RJN EX 4 0040
NHC SLO CANNABIS RETAIL
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 vvill 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 9O miles.
Long History of Community Giving
NHC commits to a minimum of 20 hours of community service per month and;
o a minimum of $2,500 per month in community support.
NHC has an extensive history of giving back well in excess of those levels.
J 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.
J Committed to Medical Products
Medical products are our focus,with dedicated areas for non—psychoactive items.
J 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 ofthe building and an abstract art piece in
the parking lot.
Bike racks,water refill station,and more.
RJN EX 4 0041
NHC SLO | CANNABISRETAIL4
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1.Business Opera ons 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 Veri cation 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
RJN Ex 4 0042
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 Bene t 487
3.Educa on Plan 491
4. Security Plan 495
5.Ligh ng Plan 509
6. Site & Floor Plans 513
7.Water E ciency Plan 537
8. Odor Control Plan 539
9. Hazardous Materials Plan 543
10.Energy E ciency Plan 545
11.Addi onal Documents 553
Online Reviews 554
Petition from SLO City Residents 555
RJN Ex 4 0043
NHC SLO CANNABIS RETAIL
RJN Ex 4 0044
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NHC SLO | CANNABISRETAIL8
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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 tting 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
RJN Ex 4 0046
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
con dent that the trust and relationships
that we have cultivated throughout our
careers can be leveraged to provide
incalculable bene t 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.
RJN Ex 4 0047
NHC SLO | CANNABISRETAIL10
3024"Cdqwv"Wu
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 rst 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
Vjg"PJE"Vgco
Helios R. Dayspring
Execu ve Team -Chief Execu ve O cer
RJN Ex 4 0048
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 rst cannabis campus
on the Central Coast. His experience and
dedication to our community is unmatched
in the industry.
RJN Ex 4 0049
NHC SLO | CANNABISRETAIL12
Nick Andre, a longtime San Luis Obispo city resident and
prominent community activist, serves as NHC’s Chief
Operating Of cer.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-pro t 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
Certi cation and implementing new programs like
diversity and inclusion workshops and “triple-bottom
line”(social,environmental,and nancial)accounting &
decision making.
Nick Andre
Execu ve Team -Chief Opera ng O cer
RJN Ex 4 0050
NHC SLO | CANNABIS RETAIL 13
Sonia Luna
Execu ve Team -Chief Financial O cer
Sonia is the founder, CEO and President
at Aviva Spectrum, an accounting and tax
compliance rm 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 Of ce 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 Of ce 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 nancial decisions and tax
compliance at the company.
RJN Ex 4 0051
NHC SLO | CANNABISRETAIL14
Jacob German
Execu ve Team,Controller
Chief Accoun ng O cer)
Bill Szymczak
Advisory Board
Cul va on Partner
Jacob German serves as NHC’s Controller,
overseeing all accounting operations and
working alongside the CFO for nancial
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
Paci c,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 of ce,you can nd 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 con dence in the company has led to
personal investment in excess of $18 million
into NHC’s cultivation operations.
RJN Ex 4 0052
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 rst 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 &Cul va on Partner
RJN Ex 4 0053
NHC SLO | CANNABISRETAIL16
Valnette Garcia’s professional career started out with 9 years as an of ce 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 oor manager and earn equity in the company.
Antonio Contreras
Floor Manager
RJN Ex 4 0054
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 oor manager.
Kenneth Johnson
Floor Manager
Stacey Wooten is the founder of Cal Coast Compliance,a compliance rm 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 ve 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
Ri eman,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
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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 rm’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 Of ces of Jane Heath in downtown Morro Bay.Jane provides legal
counsel for NHC.
Jane Heath
Legal Representa ve
RJN Ex 4 0056
NHC SLO | CANNABIS RETAIL 19
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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 nal 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 bene t 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
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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 Bene t for more detailed information.
RJN Ex 4 0058
NHC SLO CANNABIS RETAIL
Objectives
N HC 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.
VI s I o n
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.
RJN EX 4 0059
NHCSLO|CANNABIS RETAIL
Organizational Commitments
N HC 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.
mprovingthecommunitveconomybvcreatingjobs,generatingincome,andmultiplying
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 believesin:
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.
RJN EX 4 0060
NHC SLO CANNABIS RETAIL
Keys to Success
N HC’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 —N HC will conduct business in a transparent manner that is
compliant with all regulations and Generally Accepted Accounting Principles.N HC 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 plansfor bringing
high quality products and services to SLO,and have articulated a firm commitment to
be an upstanding community member and resource.N HC 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
N HC tracks performance and makes decisions based on the ”triple bottom |ine”philosophy,
meaning we take into consideration the environmental,social and finance impacts of our
operations.
RJN EX 4 0061
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 Ridge Rd
Santa Maria (SLO
County)
40 acres
Suey Creek Rd
Santa Maria (SLO
County)
40 acres
Cougar Ridge Rd,
Santa Maria (SLO
County)
40 acres
Santa Barbara County San Luis Obispo County
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RJN Ex 4 0062
NHC SLO | CANNABIS RETAIL 25
1.03 BUSINESS PLAN
Highlights
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RJN Ex 4 0063
NHCSLO|CANNABIS RETAIL
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 2 1 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.
RJN Ex 4 0064
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 veri ed,
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 oor 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 nishes,will be welcoming,open and bright,and will feature
a “living plant wall”.Other interior improvements include a 2-hour re rated vault for storage
RJN Ex 4 0065
NHC SLO | CANNABISRETAIL28
of product.
The building improvements also include upgraded and code compliant,energy ef cient 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 ef cient xtures,will achieve a Net
Zero Energy building. Please see Section 10:Energy Ef ciency 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 ofVisual Blight
RJN Ex 4 0066
Business Ownership &Legal Formation
Natural Healing Center (N HC)’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:
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.
RJN EX 4 0067
Helios Dayspring 88%
Nick Andre 3%
Antonio Contreras 3%
Valnette Garcia 3%
Kenneth Johnson 3%
NHC SLO | CANNABISRETAIL42
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The 3 APNs associated with this project are fully owned by Helios Dayspring. The purchase
agreement can be found on the following pages.
RJN Ex 4 0068
NHC SLO | CANNABISRETAIL480
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NHC has ample access to funding. Primary principal Helios Dayspring will use personal funds
to build and operate the project.A personal nancial 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. ,
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RJN Ex 4 0069
EXHIBIT 5
RJN Ex 5 0070
Office of the City Clerk
990 Palm Street,San Luis Obispo,CA 93401-3218
805.781.7100
slocityorg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED:February 2,2022
Teresa Purrington,City Cle
City of San Luis Obispo
RJN Ex 5 0071
Police Department
1042 Walnut Street.San Luls Obispo.CA 93401-2729
805.781 .7317
slocitymg
Date?3.29.19
Dear Cannabis Business Operator Applicant,
As part of the requirements to receive an Ofiicial Cannabis Business Operator Permit in the City of
San Luis Obispo,all owners and principals are required to receive a background check,Live Scan
and Background Interview.Upon successful completion of the background check you will be issued
a Cannabis Operator Identification Card which you will be required to wear when working.
ardin -acket.
Please use this check list to help you prepare for the documents needed during your Background
Interview.Your Background Interview will be scheduled once the Electronic Background Packet
documents have been submitted electronically.
Instructions:
o Complete the Background Packet documents and turn in electronically by clicking the
Submit”button at the end of the questionnaire.
I You do not need to sign the Background documents.You will have an opportunity to sign
the documents before the Background Interview.
Prepare to bring the following documents to your Background Interview:
o Your State issued ID card,driver’s license or U.S.Passport
o Your Social Security Card
BS
Xgyg physical gmfl gmgfl‘gx Card and State issued ID card or U.S.Passport are figufitfl at the
t.._._'.i.‘.l .l '.'l
I acknowledge by signing the documents contained in this Background Packet,that all
information I have provided is true and correct.I acknowledge any information omitted,not
disclosed,or found to be false is subject to disqualification for a Cannabis Business Operator
Permit./
Refer to Title 16,Bureau of Cannabis Control 5017 &5018 for a list of disqualifying criminal
offenses and factors.
Page 1
Detective Suzie Waish at
RJN Ex 5 0072
CANNABIS BACKGROUND
I.
San Luis Oblspo Police Department 1042 Walnut Street.San Luls Obispc,CA.93401
Operator's Full NamezHelios Riaghael Da,sgring
Business Name;Natural healing center
Business Address;2640 broad st slo ca 93401
Operator Date of Birth—DL #—
Operator Social Security Numbe —Cell Phone #-__
Home Phone #Other Phone _
Current Home Address:—
City!33"'UiS ObiSPO State:_Ci__Zip Code:93405
Please list the cities you have resided for the last forty (40)years/or lifetime of the operator
applicant if less than forty (40)years.
City l State Dates:
RJN Ex 5 0073
CANNABIS BACKGROUND
San Luis Oblapo Pollce Department 1042 Walnut Street.San Luis Oblapo.CA.93401
Oora r rm!
Business History:
Please list the names and duration of past and current businesses for which you were the
owner or partner:
g‘i'OS 50‘“6v 'Or'io 3d.
5105-951 W {8‘
Name of Business:Dates:
House of holistics 2011-2019
House of holistics healing (“MWMR )2015-2019
Ori inator inc l 2013%20161
Helios hydroponics C,[ogd 2 913 I 4,144 Wang
2016-2019
See attachment for list of all other corps
Signature of Cannabis Operator Applicant:%a
U
Page 3
San Luis Oblspo Police Department Ofllce of the Marijuana Enlorolmont Tum 2019
RJN Ex 5 0074
CANNABIS BACKGROUND QUESTIONNAIRE
San Luis Oblspo Police Department 1042 Walnut Street.San Luis Oblspo.CA.93401
Cannabis are r ermit
Name of Operator Applicant:
Name of Investigator:
Date Completed:
1.Have you ever spent money for illegal purposes (for example:illegal drugs.prostitution,
to purchase fraudulent documents etc.)?
YESIZI NOD
2.Have you ever used/possessed illegal drugs?
YESLZI MOD
3.Have you ever been placed on court probation (either formal or informal)?
YESIZ'N0|:|
4.Have the police ever been called to your home for any reason?
YES [2|MOD
5.Have you ever committed any of the following crimes:
A.Animal abuse/neglect?Yes I]NolZl
B.Battery (use of force or violence upon another)?Yes '2'No D
C.Contributing to the delinquency of a minor?Yes D NOIZI
D.Carrying a concealed weapon without a permit?Yes I]Nam
E.Driving impaired (alcohol and/or drugs)?Yes D Nam
F.Filing a false police report?Yes D No [II
G.Illegal gambling?Yes [I No '2'
H.Possession of stolen property (including.but not limited to,vehicle,credit/debit
cards,etc.)?Yes D
Continue on following page...
San Luis Obtopo Polio.Department Ollie.of the flurljulno Intercom-m Tum 101!
Noll—I
Page 4
RJN Ex 5 0075
CANNABIS BACKGROUND QUESTIONNAIRE
s_an Lqis Oblspo Police Department 1042 Walnut Street.San Lult Oblspo.CA.93401
ngnabls Oggratgr Permit
I.Prostitution or solicitation of prostitution (including,but not limited to,being a
patron of illegal massage parlors)?Yes D Nam
J.Resisting arrest and/or delaying or obstructing an officer (including.but not limited
to,running from law enforcement)?Yes D No m
K.Vandalism (including tagging and/or property damage)?YesD Nam
L.Embezzlement (theft of money or other valuables entrusted to you)?
Yes D Nam
MAssault with a deadly weapon (struck or threatened to strike someone with an
instrument likely to cause great bodily injury or death)?Yes D Nam
N.Blackmail or extortion?Yes D Nam
O.Burglary (entering a structure or vehicle to commit theft or other crime)?
Yes D No
P.Forgery (falsifying any type of document.check certificate.license,currency,
etc.)?Yes D No E
Q.Insurance fraud?Yes D No m
R.Robbery (theft from another person using a weapon.force,or fear)?
Yes D NOE
S.Possession of an explosive/destructive device?YesD No m
T.Perjury (lying under oath)?Yes D No
6.Are you involved in any criminal or civil litigation or any litigation involving fraud at this
time?
YESE NOD
Continue on following page..,Page 5
San Lula Obllpo Police Department Office of tho Morljuana Enforcement Team 2019
RJN Ex 5 0076
CANNABIS BACKGROUND QUESTIONNAIRE
San Luis Oblspo Police Department 1042 Walnut Street,San Luis Obispc,CA,93401
ggnngpig Operator Permit
7.Are you now,or have you ever been a member or associate of a criminal enterprise,
street gang or any other group that advocated violence against individuals because of
their race,religion .political affiliation,ethnic origin.nationality.gender,sexual
preference,or disability?
YES|:|NOEI
8.Do you have,or have you ever had a tattoo signifying membership in or affiliation with,a
criminal enterprise,street gang or any other group that advocates violence against
individuals because of their race,religion,political affiliation,ethnic origin,nationality,
gender,sexual preference,or disability?
YES|:|N0|Z|
9.Do you associate with anyone who is on probation.parole,or belongs to any gang?
YESEI NOEI
10.Have you been involved in any matter regarding a tax lien,tax fraud,or evasion of
taxes?
YESD N0|Z|
Dated this 9 day of April ._2019
In the Caunty of San luis obispo
This release is valid for sixty (60)days from the date of signature.I acknowledge by
signing this document that all information I have provided is true and correct.I
acknowledge any information omitted,not disclosed,or found to be false is subject
to disqualification for a Cannabis Operator Permit.
Printed Name of Applicant:Helios daysnring
Signature of Applicant:Q S"/b,"I q
Signature of Witness:$44 'H
arr—n Lula 0bispo Police Department Office of the Marijuana Enforcement Team 2019
Page 6
RJN Ex 5 0077
5",_____';II:J-I-Eliflils‘-'lli=.l'u'L-J
13350 River Road LLC
i‘JuE“Elli,£33117.raftV7510L030308ValleyRoad.CA 93405
V510 Rancho LLC 7510 L08 0503 Valley Road.CA93405PanchoRoadFarmsLLC7510L050908ValleyRoad.CA 93405
nib/30 Cultivation LLC 7510 L03 0303 Valley Road.CA 93405
V’SEO Dayspring LLC 7510 L09 0803 Valley Road.CA 93405
V9380 Dayspring LLC 7510 L05 0509 Valley Road.CA 93405
V6860 Cultivation LLC 7510 Les 0903 Valley Road.CA93405V75j0LOVRLLC7510L050309ValleyRoad.CA 93405
vfiaysprlng Farms LLC 8405 San Gregorio Rd.Atascadero,CA
Jflayspring Farms Cultivation LLC 7510 Les 0503 Valley Road.CA 93405
V365 AG Hoidlngs LLC 7510 Les 0903 Valley Road.CA 93405
p6§01 LOVR LLC 7610 L05 0508 Valley Road.CA 93405
V5501 Dayspring LLC 7510 L05 0909 Valley Road.CA 93405
7510 Les 0303 Valley Road.CA93405D1CultivationLLC
53 Huber LLC -'953 Huber Street.Grover Beach.CA 93433
939 Main St,Morro Bay,CA93442gainatMorroLLC
Lama Redonda Cultivation LLC 7510 Les 0909 Valley Road.CA 93405
v‘flerra Redonda LLC 2206 Ronda Vista Drive.Los Angeles.CA 90027
LB’r‘adley Canyon Farms LLC 7510 L09 0503 Valley Road.CA 93405
V’fiayspring Farms 600 Pine Canyon LLC 7510 L05 0309 Valley Road.CA 93405
pi-ifiJse of Holistics Corporation PO Box 3358.Paso Robles.CA 93447
vflatural Healing Center.LLC ”CE“(3:993 Huston St.Grover Beach.CA 93433
7510 L03 0305 Valley Road,CA 93405
7510 Les 0503 Valley Road.CA 93405
Lane Grover Beach LLC .
22.!‘5mmfifigLHCSLOLLC(“n _
rWIHCMBLLC"'7510 Les 0509 Valley Road.CA 93405
Originator.Inc.9570 Casanova Rd.Santa Maria CA 93422 '\a
House of Holistics Healing Corp.3570 Casanova Rd Santa Maria.CA 93422 /
Vfiie Creek LLC '—-9 7510 Les 0305 Valley Road.CA 93405
7840 Cougar Ridge LLC (a H:\Va—H no 7510 Les 0308 Valley Road.CA 93405
Full Melt Distro LLC 6mm 2C :hchi Drlfdilbl H-l‘7510 L03 0805 Valley Road.CA 93405
Full MeltExtractsLLC Man/“Filed (o 7510 L05 0805 Valley Road.CA 93405
Full Molt Flowers LLC 7510’Les 0309 Valley Road,CA 93405
998 8.1030 Partners LLC Human“MW 7510 L03 0305 Valley Road.CA 93405
SLO Hemp LLC non—7510 L09 0303 Valley Road.CA 93405
SLO Retail Management LLC 7510 Les 0805 Valley Road.CA 93405
Heliomar LLC
flu.\oacKjawu}
CEnLcic gift“:
7510 Les 0303 Valley Road.CA 93405
vik/lll 602%?)If?“Q‘d'z'filo'q (Mk/‘1‘)“Cerf flak Mini 04
RJN Ex 5 0078
EXHIBIT 6
RJN Ex 6 0079
Office of the City Clerk
990 Palm Street,San Luis Obispo,CA 93401-3218
805.781.7100
slocityorg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED:February 2,2022
Teresa Purrington,City Cle
City of San Luis Obispo
RJN Ex 6 0080
FARMER &READY
A Law Corporation
PAUL F.READY 1254 MARSH STREET
LESLIE A‘Tos POST OFFICE Box 1443
DAVID Y.FARMER *RETIRED San Luis Obispo,California 93406
Telephone:(805)541-1626
Facsimile:(805)541—0769
October 9,2020
Christine J.Dietrick
City Attorney
City of San Luis Obispo
990 Palm Street
San Luis Obispo,CA 93401
RE:NHC SLO LLC
Dear Christine,
I’m sorry I didn’t back to you earlier this week but,as I imagine you know,the covid—
crisis has disrupted Virtually every aspect of our lives and practice.
San Luis Obispo Municipal Code Section 9.10.120C clearly prohibits a transfer of a
Commercial Cannabis Operator Permit in violation of Chapter 9.10.The permit held by NHC
SLO LLC was not being transferred,rather,it was only Mr.Daysp'ring’s membership interest in
NHC SLO LLC being transferred.Section 9.10.120B prohibits transferring any portion of the
ownership or control of a Commercial Cannabis Business "to any person who does not have a
Commercial Cannabis Operator Permit from the City prior to the effective date of any action
described in this sentence".Valnette Garcia,the intended transferee,held a Commercial
Cannabis Operator Permit prior to the effective date of the transfer by way of her existing interest
in NHC SLO LLC,and therefore the intended transfer would be compliant with that ordinance
provrslon.
Section 9.10.120B also requires notification to the City,and that the transfer be
conditioned on City approval,and both of these provisions are met as well.In accordance with
my prior correspondence,the City has been notified of the transfer,and in accordance with the
documented transfer,it is expressly conditioned on City approval and the issuance of an amended
Commercial Cannabis Operator Permit,to the extent so required,and only becomes final upon
such approval.
Ms.Garcia's qualifications were previously vetted by the City during the initial permitting
process,as she was an original owner of NHC SLO LLC.The City already has her contact
information from that process,but I hope you will not hesitate to let me know if you need me to
provide it again.
Ms.Garcia meets all Merit Criteria required for a Primary Principal by way of her 7.5+
years of compliant cannabis experience through her prior management position at House of
Holistics Prop 215 delivery service,as well as her current ownership interest in the Natural
Healing Center in Grover Beach.
RJN Ex 6 0081
Christine J.Dietrick
October 9,2020
Page Two
I hope you will not hesitate to let me know if there is any additional information you need
to process this intended transfer and the issuance of an amended Commercial Cannabis Operator
Permit,if required.
Enclosure
PFRftlw
cc:Valnette Garcia
Sincere]
aul F.Re
RJN Ex 6 0082
7”“‘"ASSIGMBENT
AND Assmwmm 0F LLC MMBERSE?INTEREST
THIS ASSIGMfENI‘AND ASSUE‘V?TION OF LLC MELNEBERSHW INTEREST (this
03115;r .f A‘.,r._,‘3‘~.:
Hefias Dayspring (“Asafignor‘fi and Valname Garsia ("Assignee"},
fwmfihfip H .mc«a '-‘I“‘
mvujup:uauy aux“wan.umAanrn,rxvu’aSJV?.'.‘1'‘urv.a.z“g”-‘w”5,,,2 1 ‘1 .-;"5.443:9.‘.w::j’:',1"..;,-.2,"~“a gag-may..-1,
membership iuterest'in thavCampanji;and
WHEREAS,Assignasr desirea is assign and transfer hx's ninety ant:percent (91%)membershipinterestintheCompany,tagsthar with all other intfirast of Assignor i1;and t0 the Campany (collacfively,
the "Assigned Intarastf‘l
NGW,THEREFGRE,far good and valuabié consideratiam the {swig}?and adequacy af which
are bareby ackmwiedged,and subjact to the terms and conditions sat forth in 11mg Assignment,the partieg
agrae as foijows:
E.Assignmem Subj act only to the condifian sat forth in Secfien 2,beiow:Assignm‘hembyafisignsandtransferstoAssign-e ail {If the Assignor's right,ti‘fls,and interest in and to the Assignad interesg
éncluding alf voting,cement and financial rights new or hereafwr existing and associated with
ownershipoftheAssignedInterest.
2.Condition m Assignment.In the event that appmvai by the City cf San Luis Obispo (the “City”)afthis assignment andfor the issuance of an amendsd Comemiai Cannabis Operator Permit is requiredinordertomaintaintheCempanyisCommercialCannabisOperate:Permit or miner entitlements fer the
K.Li l LL .2 .aw‘wwkm'wna.avthisaf‘fizfif‘zert :73 ff";'
3_F93fpc9n+cf§pro nag-l VTInw?-gi~;g-¢-7.x?4‘73‘éwn -3
ig:;s is,111:;1.1;.44;;luff;smug o;Lin:magma imam»fissxgnur makes no came:representaaonsmwarrantiesandthe:Assigned interest is assigned to Assignea on an A543,Where~13 basis.
4 pi”???‘32:.Axuggéu‘x mg}anew;auvwcu um;um nmlgmu,3 n
H D ,,w LAWN”;3;;v;Ag:amid;my timings“;Lugpm‘agmb goat:«35.;
2:31:30,25 1G2,er 25305 and represents,Warrants,and agmzs that Assignea is an existing Member of the
Campany,and is famiiia:with ail aspects of the Compan;and the Operating Agreement,and the rights and
obiigaticns applicabie m the Assigneci Interest that are containeé therein,
7
5.Aggrmal.Assigno:and Assignee acknowiedge that this assignmergt of Asgignor‘s
AssignedInterestiscontempiatedbySection8dofthaOperatingAgreementandhasbeenapprovedbytheManagaroftheCompany,such that :20 Earths:action will ha required to effect this ass£gnment after its executionbyAssignorandAssignee,other than the safisfactien 0f the candiiian sci forth in Sectian 2,abave.Assignor.wili defiyer a copy of this Assigmnent m the Company t0 keep Wiih its capy offlze Gperating Agreement
Page l of}:
RJN Ex 6 0083
6.Acaeg?afite"bx3‘Assignee.Assignee:(a)agrees ta accept the assig’nmam oféi‘l fifiiiésignar‘s’right,
tifiafi and interest in andw-toflm Asaigzied Interest;03)agrees t0 accept such assignment 0:}-an Asig Where~
13 basis,with no rapresantatians or warrantias that are net expressly 5%:fart}:herein;and (c)agrees to be
bcund by all if the terms:covenants,and conditisns of this Assignment and of the Operating Agreemsi.»
Assigmze agraes m indemnifil and bolt}Assigns-r,and his agents harmlass against any and all losses.s cams,
and expenses (inaiuding reascnabie aficmeys‘fees)arising {321%sf any obiigations 9f Assignae ralating m
the:Assigned Interest whim occur on or after,or arise fiom events occurring an m after,the dam heraofx
7’.Further Assurances.Asgiglor and Assigneze shail prampfly axawta md deiiver to the other
anyaddiiionalinstrumentatotherdocumentwhichAssignororAssigneereasanablyrequeststoavidanceor
better effect the assignmant contained herein
8.Rain.Suczaess.csrs~and Assigns-This Assignment shall bind and Emma t0 the benefit ofthepartieshereinandmagrespactivesuccessorsandassigns.
9.fifijfififtgigg ””73?5.";i:1 2‘:‘T \“1;;L2“:g‘;;:r.;-;_‘;;LL;--;.‘W Mum mm 5.;fig .umud
by,and shah be canstmed awarding to,thy:iaws oftha State cf California,wifhou:regard to mimic:of221wmies‘
IO,Countemm.This Assignment may be executed in any numba:of cemiarparts}eaah ofwhichwhensoexecutedanddaliveradshailbedeemedanorigmaifurailpurpcsses,and 213 gush cannterpms shali
together canstim‘ie but one and tin:same instmem.A signed cupy of this Assignment deiiverad {flyaitherfacsimfleOremailshallbedeemedmhavethe.sama mgal effect as delivery at"an original signed copyofthisAssigfiment.Nom’ithstanding tha foregoing,each party hereto shail deiiver origimicountarpartsignaturestotheotherpartiesanorbefezethedate.hereaii
11.Amsndmcnts agd Moéificatians.This Assignment may not be madified or amended inanymamasotherthanbyawrittenagreamemSigflfidbythepartytobachargmi
I"!'flnvfi‘nad Tnmg-.flm-«34<f‘~..'.5 ‘..‘,1‘”_,...,1 ::'_,a H 0 ~‘wrw~;fl__-xi‘vtyui}um nu;gum wmc ucwmu dual:REVS we
meanings asm-ibed is such terms in the Gperating Agreement.
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Page 2 0:52
EXHIBIT 7
RJN Ex 7 0084
Office of the City Clerk
990 Palm Street San Luis Obispo.CA 93401-3210
805.781.7100
siucitynrg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the
foregoing instrument to be a fill,true and correct copy of Resolution No.11131 (2020
Series),adopted by the San Luis Obispo City Council on June 16,2020,now on file in
my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS
OBISPO.
DATED:February 9.2022
dmpwfik‘
Teresa Purrington
City Clerk
City of San Luis Obispo
RJN Ex 7 0085
DacuSign Envelope ID:BA68 0400-037449AA-99A8-395A1 60CF5‘I D
RESOLUTION NO.11131 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY 0F SAN LUIS
OBISPO,CALIFORNIA PROCLAIMING THE CONTINUING
EXISTENCE 0F A LOCAL EMERGENCY REGARDING THE COVID-19
PANDEMIC AND EXTENDING THE LIFE OF DISCRETIONARY
APPROVALS,BUILDING PERMIT APPLICATIONS AND CANNABIS
OPERATOR PERMITS TO MITIGATE ECONOMIC IMPACTS AND AID
IN ECONOMIC RECOVERY
WHEREAS,section 2.24.060 of the Municipal Code empowers the Emergency Services
Director to request that the City Council proclaim a local emergency when the City of San Luis
Obispo is affected or likely to be affected by a public calamity and the City Council proclaimed a
local emergency at its regular meeting on March 17,2020 regarding the COVID—19 pandemic and
has subsequently regularly reviewed said proclamation and proclaimed the continuation of local
emergency;and
WHEREAS,the Secretary of Health and Human Services Director issued a Determination
that a Public Health Emergency exists and has existed of January 27,2020;and
WHEREAS,the President of the United States has declared a State of National
Emergency;the Governor of the State of California has proclaimed a State of Emergency for the
State of California and issued Executive Orders and direction regarding measures to mitigate the
spread of cases of COVID-19 within the State of California;the San Luis Obispo County
Emergency Services Director has proclaimed a local emergency;and the San Luis Obispo County
Public Health Director has declared a public health emergency related the spread of cases of
COVID-l9 within the State of California and all recitals set forth therein,are included as though
fully Set forth herein;and
WHEREAS,on March 19,2020,the Governor issued Executive Order N-33-20,including
the Order of the State Public Health Officer mandating all individuals living in the State of
California to stay home or at their place of residence except as needed to maintain continuity of
operations of the federal critical inflastructure sectors and has issued subsequent orders permitting
phased re—opening and requiring continuing measures to mitigate the spread of COVID-19;and
WHEREAS,the City of San Luis Obispo will be required to help enforce all restrictions
imposed by the State of California and by the County of San Luis Obispo acting as the health
agency;and
WHEREAS,the pandemic COVID-l9 continues to spread worldwide and in the U.S.,
continuing to present an irmnediate and significant risk to public health and safety,and resulting
in serious illness or death to vulnerable pepulations,including the elderly and those with
underlying health conditions and is anticipated to continue to spread in response to phased re-
openings and significant heightened social interaction and group gatherings associated with recent
protest activity;and
R 11131
RJN Ex 7 0086
DacuSign Envelope ID:BA6804D043374-49AA-99A6-395A1BOCF51D
Resolution No.11131 (2020 Series)Page 2
WHEREAS,heightened levels of public health and safety planning and preparedness have
been necessitated in preparation for and response to confirmed cases of COVID-l9 in the
CountyofSanLuisObispo,and rapid response not lending itself to otherwise applicable notice and
approval timelines has been and will be necessary to respond to the rapidly evolving pandemic and
its related,and to mitigate against the spread or resurgence of COVID-19 and its resulting mental
and physical health,social,and economic impacts,compromising the public health and safety;and
WHEREAS,in the absence of such actions,an escalation of the spread remains an
imminent threat and County wide health services may become overwhelmed and unable to keep
up with medical demand for care and availability of hospital or care facility capacity;and
WHEREAS,the pandemic and necessary federal,state and local public health orders
requiring social distancing to prevent spread of COVID-19 have had and will continue to have
devastating economic impacts on the local community,including residents,businesses,employees
and City operations;and
WHEREAS,the City has instituted its Fiscal Health Contingency Plan in order to mitigate
against economic impacts of emergency response costs and significant revenue reductions and has
made drastic reductions to current and projected city costs through reductions in purchasing,limits
on hiring,capital improvement project deferrals,and furloughs of temporary and supplemental
staff;and
WHEREAS,Article l4,Section 8630,of the California Emergency Services Act requires
that the City Council review the need for continuing the Local Emergency at least every sixty (60)
days until such Local Emergency is terminated.
NOW,THEREFORE,BE IT PROCLAIMED AND RESOLVED by the City Council
of the City of San Luis Obispo that:
SECTION l.All recitals set forth above,and all recitals included in support of Federal,
State and County actions referenced herein,are adopted as though fully set forth herein asfindingsinsupportofthisResolution;and
SECTION 2.A local emergency continues to exist throughout the City resulting from the
condition of extreme peril related to the pandemic of COVID-lQ,which,absent continuation of
preventative measures,and in the absence of a vaccine,is still deemed to be beyond the control of
normal protective service,personnel,equipment,and facilities of and within the City;and
SECTION 3.Due to the severe economic impacts of COVTD-l 9 and its economic impacts
on the community and the City organization and in order to prevent situations where developers
or contractors need to restart the discretionary review process or delay construction projects with
the need to reapply for permits or request individual extensions and to focus limited staff resources
on supporting the effective implementation of COVID-l9 public health and safety compliance
measures for the protection of employees and customers of businesses within the City,and
enforcement of the highest priority provisions for the protection of the general health andsafetyofthecommunity,the Council deems it necessary to take the following actions related to the
continuing existence of a local emergency and in support of economic recovery therefrom:
Rlll3l
RJN Ex 7 0087
DocuSlgn Envelope ID:BA68D400-0374-49AA-99A6-395A1600F510
Resolution No.11131 (2020 Series)Page 3
l.Toll the expiration of all discretionaIy approvals covered by Municipal Code Section
17,104,070 from the declaration of the pandemic emergency (beginning March 17,
2020).
2.Automatically extend the life of all discretionary approvals covered by Municipal Code
Section 17,104,070 by one year after the termination of the declared local emergency.
3.Automatically extend the life of all active building permits applications by six months,
as authorized by California Building Code Section 105.3.2.
4.Extend the life of all commercial cannabis business operator permits by a fixed
periodofsixmonthsfromtheoriginalexpirationdate.If any operator's permit currently
issued from the existing application period is not activated and expires or is deemed
abandoned at the conclusion of the period specified herein,the City shall open a
subsequent application period for any retail storefront permits available during which
applications from any previously qualified or permitted applicant may follow the
normal process to submit a new application,along with the applications of any new
applicants.
SECTION 4.All existing orders of the San Luis Obispo County Emergency Services
Director as currently in effect and as subsequently clarified,amended,modified or superseded by
subsequent action or order of the County Emergency Services Director,the County Public Health
Officer,andfor the County Board of Supervisors,are hereby expressly acknowledged and declared
to be enforceable within the City of San Luis Obispo as if directly enacted by the City Council
pursuant to San Luis 0bi5po Municipal Code Chapter 2.24 and shall be enforceable under
Municipal Code 2.24.100 until such time as terminated by the issuing authority.
SECTION 5.The proclamation of local emergency shall be deemed to continue to exist
until it is terminated by the City Council of the City of San Luis Obispo pursuant to a resolution
adopted by the City Council of the City San Luis Obispo or its Emergency Services Director.
SECTION 6.The City has been undertaking,and will continue through cessation of this
emergency to undertake,necessary measures and incur necessary and extraordinary costs,which
are directly related to the prevention of the spread of the COVID-19 Virus and are taken in
furtherance of:the Secretary of Health and Human Services Secretary’s determination that a public
health emergency has existed since January 2?,2020;City Council’s Proclamation of Local
Emergency on March 17,2020 and subsequent proclamations of continuing local emergency the
Govemor’s Proclamation of a State of Emergency on March 4,2020;the President of the United
States’Declaration of a National Emergency on March 13,2020;the County Emergency Services
Director’s Proclamation of Local Emergency and the County Public Health Director’s Declaration
of a Public Health Emergency on March 13,2020,and related orders,regulations and directions.
SECTION 7.During the existence of said local emergency,the powers,functions,and
duties of the Emergency Services Director and the Emergency Organization of this City shall be
those prescribed by state law,ordinances,and resolutions of this City and by the City of San Luis
Obispo Emergency Operations Plan,notwithstanding otherwise applicable procedures,timelines
or methods of action and the Emergency Services Director is expressly authorized to take any and
all actions in furtherance of emergency powers to address the local emergency.
R11131
RJN Ex 7 0088
DocuSign Envelope ID:BAGBD4D0-CS74—49AA—99A5-395A1 606F51 D
Resolution No.11131 (2020 Series)Page 4
SECTION 8.A copy of this Resolution shall be posted on all outside public access
doorsofCityHalloftheCityofSanLuisObispoandinonepublicplacewithinanyareaoftheCitywithinwhichthisResolutionappliesandpersonneloftheCityofSanLuisObisposhallendeavor
to make copies of this order and regulation available to the news media.
Upon motion of Council Member Christianson,seconded by Council Member Pease,and
on the following roll call vote:
AYES:Council Member Christianson,Pease,Stewart,Vice Mayor Gomez and
Mayor Harmon
NOES:None
ABSENT:None
The foregoing resolution was adopted this 16‘11 day of June 2020.
DocuSigned by:
l
Mali Humor/c
Heidi Harmon
Mayor
ATTEST:
DocuSigned by:
I
dunno.
DWMfi
Teresa Purringtbn
City Clerk
APPROVED AS TO FORM:
Dowsig nod by:
AP
J.Christine Dietrick
City Attorney
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official seal of theCityofSanLuisObiSpo,California,on 6/13/2020 _
DocuSigned by:
l
ddJ'LLam
BWJҤA
Teresa Pun'ington
City Clerk
R1113}
EXHIBIT 8
RJN Ex 8 0089
Office of the City Clerk
990 Palm Street,San Luis Ohispo.CA 93401-3218
805.781.?100
slocitynrg
CERTIFICATION
I,Teresa Punington,City Clerk,do hereby certify under penalty of perjury the
foregoing instrument to be a full,true and correct copy of Resolution No.11231 (2021
Series),adopted by the San Luis Obispo City Council on March 16,2021,now on file in
my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS
OBISPO.
DATED:Febru_a_rv 9.2022
dmpwufiik
Teresa Purrington
City Clerk
City of San Luis Obispo
Jill’llEl
RJN Ex 8 0090
DocuSign Envelope ID:BOEEES5C»BOE2-4F74-9D37—707A54720038
RESOLUTION NO.11231 (2021 SERIES)
A RESOLUTION 0F THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO,CALIFORNIA,FROCLAIMING THE CONTINUING
EXISTENCE OF A LOCAL EMERGENCY REGARDING THE Gown-19
FANDEMIC AND EXTENDING THE LIFE OF DISCRETIONARY
APPROVALS,BUILDING PERMIT APPLICATIONS,AND CANNABIS
OPERATOR PERMITS TO MITIGATE ECONOMIC IMPACTS AND AID
IN ECONOMIC RECOVERY SUPERSEDING COUNCIL RESOLUTION
NO.11131 (2020 SERIES)
WHEREAS,section 2.24.060 of the Municipal Code empowers the Emergency Services
Director to request that the City Council proclaim a local emergency when the City of San Luis
Obispo is affected or likely to be affected by a public calamity and the City Council proclaimed a
local emergency at its regular meeting on March l7,2020 regarding the COVID-19 pandemic and
has subsequently regularly reviewed said proclamation and proclaimed the continuation of local
emergency;and
WHEREAS,the Secretary of Health and Human Services Director issued a Determination
that a Public Health Emergency exists and has existed as of January 27,2020;and
WHEREAS,the President of the United States has declared a State of National
Emergency;the Governor of the State of California has proclaimed a State of Emergency for the
State of California and issued Executive Orders and direction regarding measures to mitigate the
spread of cases of COVID—l 9 within the State of California;the San Luis Obispo County
Emergency Services Director has proclaimed a local emergency;and the San Luis ObispoCountyPublicHealthDirectorhasdeclaredapublichealthemergencyrelatedthespreadofcasesof
COVID-l9 within the State of California and all recitals set forth therein,are included as though
fully set forth herein;and
WHEREAS,on March 19,2020,the Governor issued Executive Order N-33-20,including
the Order of the State Public Health Officer mandating all individuals living in the State of
California to stay home or at their place of residence except as needed to maintain continuity of
operations of the federal critical infi‘astructure sectors and has issued subsequent orders permitting
phased re-Opening and requiring continuing measures to mitigate the spread of COVID-19;and
WHEREAS,the City of San Luis Obispo will be required to help enforce all restrictions
imposed by the State of California and by the County of San Luis Obispo acting as the health
agency;and
WHEREAS,the pandemic COVID-19 continues to spread worldwide and in the U.S.,
continuing to present an immediate and significant risk to public health and safety,and resulting
in serious illness or death to vulnerable populations,including the elderly and those with
underlying health conditions and is anticipated to continue to spread in response to phased re-
openings and significant heightened social interaction and group gatherings associated with recent
protest activity;and
R1123I
RJN Ex 8 0091
DocuS'tgn Envelope ID:BDEEE3EC-BOE2-4F74-9D37-‘r’07A54-728038
Resolution No,11231 (2021 Series)Page 2
WHEREAS,heightened levels of public health and safety planning and preparedness have
been necessitated in preparation for and response to confirmed cases of COVID-19 in theCountyofSanLuisObispo,and rapid response not lending itself to otherwise applicable notice and
approval timelines has been and will be necessary to respond to the rapidly evolving pandemic and
its related,and to mitigate against the spread or resurgence of COVID-19 and its resulting mental
and physical health,social,and economic impacts,compromising the public health and safety;and
WHEREAS,in the absence of such actions,an escalation of the spread remains an
imminent threat and County wide health services may become overwhelmed and unable to keep
up with medical demand for care and availability of hospital or care facility capacity;and
WHEREAS,the pandemic and necessary federal,state,and local public health orders
requiring social distancing to prevent Spread of COVID—19 have had and will continue to have
devastating economic impacts on the local community,including residents,businesses,employees
and City operations;and
WHEREAS,the City has instituted its Fiscal Health Contingency Plan in order to mitigate
against economic impacts of emergency response costs and significant revenue reductions and has
made drastic reductions to current and projected city costs through reductions in purchasing,limits
on hiring,capital improvement project deferrals,and furloughs of temporary and supplemental
staff;and
WHEREAS,Article 14,Section 8630,of the California Emergency Services Act requires
that the City Council review the need for continuing the Local Emergency at least every sixty (60)
days until such Local Emergency is terminated.
NOW,THEREFORE,BE IT PROCLAINIED AND RESOLVED by the City Council
of the City of San Luis Obispo that:
SECTION l.All recitals set forth above,and all recitals included in support of Federal,
State,and County actions referenced herein,are adopted as though fully set forth herein as findings
in support of this Resolution;and
SECTION 2.A local emergency continues to exist throughout the City resulting from the
condition of extreme peril related to the pandemic of COVID-l9,which,absent continuation of
preventative measures,and in the absence of widespread vaccination,is still deemed to be beyond
the control of normal protective service,personnel,equipment,and facilities of and within the
City;and
R 11231
RJN Ex 8 0092
DocuSign Envelope ID:BOEEE35C-BflE24F74-QD37-707A54720038
Resolution No.11231 (2021 Series)Page 3
SECTION 3.Due to the severe economic impacts of COVID—l 9 and its economic impacts
on the community and the City organization and in order to prevent situations where developers
or contractors need to restart the discretionary review process or delay construction projects with
the need to reapply for permits or request individual extensions and to focus limited staff resources
on supporting the effective implementation of COVID—19 public health and safety compliance
measures for the protection of employees and customers of businesses within the City,and
enforcement of the highest priority provisions for the protection of the general health andsafetyofthecommunity,the Council deems it necessary to take the following actions related to the
continuing existence of a local emergency and in support of economic recovery therefrom:
1.T011 the expiration of all discretionary approvals covered by Municipal Code Section
17.104.070 from the declaration of the pandemic emergency (beginning January 27,
2020).
2.Automatically extend the life of all discretionary approvals covered by Municipal Code
Section 17.104.070 by one and a half years (18 months)after the termination of the
declared local emergency.
3.Automatically extend the life of all active building permits applications by one year,as
authorized by California Building Code Section 105.3.2.
4.Extend the life of all commercial cannabis business operator permits by a fixed
periodofninemonthsfromtheoriginalexpirationdate.If any Operator’s permit currently
issued from the existing application period is not activated and expires or is deemed
abandoned at the conclusion of the period specified herein,the City shall open a
subsequent application period for any retail storefront permits available during which
applications from any previously qualified or permitted applicant may follow the
normal process to submit a new application,along with the applications of any new
applicants.
SECTION 4.All existing orders of the San Luis Obispo County Emergency Services
Director as currently in effect and as subsequently clarified,amended,modified or superseded by
subsequent action or order of the County Emergency Services Director,the County Public Health
Officer,andfor the County Board of Supervisors,are hereby expressly acknowledged and declared
to be enforceable within the City of San Luis Obispo as if directly enacted by the City Council
pursuant to San Luis Obispo Municipal Code Chapter 2.24 and shall be enforceable under
Municipal Code 2.24.100 until such time as terminated by the issuing authority.
SECTION 5.The proclamation of local emergency shall be deemed to continue to exist
until it is terminated by the City Council of the City of San Luis Obispo pursuant to a resolutiOn
adopted by the City Council of the City San Luis Obispo or its Emergency Services Director.
R 11231
RJN Ex 8 0093
DocuSign Envelope ID:BDEEESSC-BOE2—4F74-9037-T07A54720038
Resolution No.11231 (2021 Series)Page 4
SECTION 6.The City has been undertaking,and will continue through cessation of this
emergency to undertake,necessary measures and incur necessary and extraordinary costs,which
are directly related to the prevention of the spread of the COVID-l9 Virus and are taken in
furtherance of:the Secretary of Health and Human Services Secretary’s determination that a public
health emergency has existed since January 27,2020;City Council’s Proclamation of Local
Emergency on March 17,2020 and subsequent proclamations of continuing local emergency the
Governor’s Proclamation of a State of Emergency on March 4,2020;the President of the United
States’Declaration of a National Emergency on March l3,2020;the County Emergency Services
Director’s Proclamation of Local Emergency and the County Public Health Director’s Declaration
of a Public Health Emergency on March l3,2020,and related orders,regulations and directions.
SECTION 7.During the existence of said local emergency,the powers,functions,and
duties of the Emergency Services Director and the Emergency Organization of this City shall be
those prescribed by state law,ordinances,and resolutions of this City and by the City of San Luis
Obispo Emergency Operations Plan,notwithstanding otherwise applicable procedures,timelines
01'methods of action and the Emergency Services Director is expressly authorized to take any and
all actions in furtherance of emergency powers to address the local emergency.
SECTION 8.This resolution supersedes Council Resolution No.11131 (2020 Series),
adopted by the City Council on June 16,2020.
R1123]
RJN Ex 8 0094
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SECTION 9.A copy of this Resolution shall be posted on all outside public access doors
of City Hall of the City of San Luis Obispo and in one public place within any area of the City
within which this Resolution applies and personnel of the City of San Luis Obispo shall endeavor
to make copies of this order and regulation available to the news media.
Upon motion of Council Member Christianson,seconded by Vice Mayor Stewart,and on the
following roll call vote:
AYES:Council Member Christianson,Marx,Pease,Vice Mayor Stewart,and Mayor
Harmon
NOES:None
ABSENT:None
The foregoing resolution was adopted this 160‘day of March 2021.
DoeuSlgned by:
Heidi ltamow
1E92564??3C14EC...
Mayor Heidi Harmon
ATTEST:
Doe uSigned by:
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Dwasékrpgssaaosmg
Teresa Purringtou
City Clerk
APPROVED AS TO FORM:
DocuSlg nod by:
WMF
J.Christine Dietrick
City Attorney
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official seal of theCityofSanLuisObispo,California,on 3/18/2021 |12:18 PM PDT
Doc uSigned by:
d 0.11100.SEW a.a
BQBBADBF QC?84—36...
Teresa Purrington
City Clerk
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EXHIBIT 9
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Office of the City Clerk
990 Palm Street San Luis Obispo,CA 93401-3218
805.781.7100
Slocitynrg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the
foregoing instrument to be a full,true and correct copy of Resolution No.11264 (2021
Series),adopted by the San Luis Obispo City Council on July 6,2021,now on file in my
office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS
OBISPO.
DATED:February 9.2022
dmpmfilm
Teresa Purrington
City Clerk
City of San Luis Obispo
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RESOLUTION NO.11264 (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO,CALIFORNIA,CONSOLIDATING AND ALIGNING PRIOR
COUNCIL EMERGENCY ACTIONS WITH RECENTLY REVISED STATE
ORDERS,AND CONTINUING CERTAIN PRIOR ACTIONS TO SUPPORT
CONTINUED PROTECTIONS FOR PUBLIC HEALTH,SAFETY AND
WELFARE,AS WELL AS ECONOMIC RECOVERY
WHEREAS,on March 4,2020,the Governor proclaimed a State of
Emergency to exist in California as a result of the threat of COVtD-19;and
WHEREAS,on March 17,2020,the City Council adapted Resolution 11099
proclaiming a local emergency and has thereafter affirmed and continued its
proclamation of local emergency to extend through the duration of the declared State
andior County proclamations of emergency;and
WHEREAS,since March 2020,the State of California and both the City and
County of San Luis Obispo have taken a series of actions to reduce the spread,and
mitigate the impacts,of COVlD-19,limiting harm and loss of life in our community;
and
WHEREAS,as a result of the effective actions taken,as well as the
successful and ongoing distribution of COVlD-19 vaccines,California is turning a
corner in its fight against COVlD-19 and cases and hospitalization rates in San Luis
Obispo are continuing a relatively low trend at present;and
WHEREAS,on June 11,2021,the Governor of the State of California issued
Executive Order N—07-21,which formally rescinded the Stay-at-Home Order
Executive Order N-33-20,issued on March 19,2020),as well as the framework for
a gradual,risk-based reopening of the economy (Executive Order N-60-20,issued
on May 4,2020);and
WHEREAS,in light of the current state of the COVlD-19 pandemic in
California,the State has rolled back certain provisions of the Govemor’s COVID-
19—related Executive Orders;and
WHEREAS,certain provisions of those COVlD-19 related Executive Orders
have been deemed to remain necessary to continue to help California respond to,
recover from,and mitigate the impacts of the COVID—19 pandemic,and theCityintendstoalignandactinaccordancewiththosecontinuingCOVID-19 related
Executive Orders to the extent applicable to the City's operations in order to
maintain clarity and consistency for the public;and
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WHEREAS,the City has.through its emergency and general police powers,
implemented various programs to support the safe conduct of business and leisure
activities in the City and to facilitate the economic recovery of the community and its
residents from the impacts of COViD-19;
WHEREAS,the City Council finds that COVlD-19 presents a continuing threat
to the health and economic wellbeing of the residents of San Luis ObiSpo because
the Country,State,City and County have not yet reached optimal vaccination rates
to fully protect against community spread of COVlD-‘iQ.variants are emerging in the
State and the likelihood of spread remains a concern as we enter the Fall and Winter
months;and the City Council further finds that continuation of certain of those
programs enacted pursuant to its emergency authority remain important to advance
the health,safety and welfare of San Luis Obispo,mitigate the continuing risks and
effects of the COVlD-19 pandemic,and support economic recovery.
NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1.All recitals set forth above,and all recitals included in support of
Federal,State.and County actions referenced herein,are adopted as though fully set
forth herein as findings in support of this Resolution;and
SECTION 2.There is a continuing emergency related to the pandemic COVlD-19
as declared by the Governor of the State of California via Executive Order N-08—21 and
the City Council finds that a concurrent local emergency continues to exist in the City
resulting from continuing low level case and hospitalization rates related to the pandemic
of COVID-19,and vaccination rates that are not at levels to achieve “herd immunity"to
protect against the peril of increased spread related to emerging variants and the potential
for a seasonal spike in the Fall and Winter,which,absent continuation of preventative
measures,and in the absence of widespread vaccination,is still deemed to present an
imminent threat beyond the control of normal protective service,personnel,equipment,
and facilities of and within the City;and
SECTION 3.Partial termination of Safety Enhancement Zone.The Citywide
Safety Enhancement Zone previously declared pursuant to Resolution 11106 (2020
Series)for all Municipal Code violations specified in Section 9.22.0203 is hereby
terminated and the penalty for such violations shall be as otherwise provided by the
Municipal Code and related Administrative Guidelines;except that violations of any State
or County Public Health or other State or County Order or directive related to the COVID-
19 emergency,whether now existing or subsequently adopted,shall remain subject to
immediate penalties not to exceed $1,000 for the duration of the declared emergency,as
expressly set forth by ordinance in Section 9-22.0203 of the Municipal Code,and nothing
herein shall be interpreted to suspend or otherwise affect enforcement or penalties
consistent therewith.
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SECTION 4.Cannabis Business Operator Permit Extensions.Due to the
severe economic impacts of COVID-19 and its impacts on scheduling,inspection and
construction of projects in the City,and in order to prevent situations where cannabis
operators must restart the discretionary review process and further delay the opening of
previously approved businesses due to the need to reapply for permits or request
individual extensions.and to prevent unnecessary distraction of staff focus and resources
away from continued support of COVlD—19 recovery and continued public health and
safety compliance measures to prevent the resurgence of COVID—19 within the City,the
Council deems it in the best interest of public health and safety to suspend enforcement
of Section 9.10.070 D of the Municipal Code and reaffirm and continue certain prior
actions taken related to the continuing existence of a local emergency and economic
recovery as set forth in Resolution 11231 (2020 Series),as follows:
A.Extend the life of all currently issued commercial cannabis business operator
permits by a fixed period of twelve months from the original expiration date.If
any operator’s permit currently issued is not activated and expires or is
deemed abandoned at the conclusion of the extension period specified herein,
the City shall open a subsequent application period for any retail storefront
permits made available as the result of the expiration or abandonment,during
which any previously permitted applicant may follow the established process to
submit a new application,which shall be evaluated at the same time and in
accordance with the same process for the applications of any new applicants
who may submit applications during the open application period.
SECTION 5.Continuation of OPEN SLO Pilot Program.in order to support the
continued safe re-opening of restaurants and other businesses in a manner that will
facilitate ongoing outdoor alternatives while vaccination efforts continue,variants emerge
and fall and winter approach,presenting an increased risk of resurgence of COVlD-19
spread,the City Council hereby directs and authorizes the City Manager to continue the
OPEN SLO program at least until the termination of the proclamation of local emergency
and for such additional period of time,not to exceed one year from the termination of the
proclamation of local emergency,as is necessary to accomplish a safe of orderly
transition to preexisting regulations andfor the implementation of revised long term
programs to support emergency resiliency and economic recovery.Temporary programs
expressly authorized herein shall include the following six strategies that may be used
independently or in combination,along with continued implementation of the Sidewalk
Dining Ordinance,as outlined below:
A.Six Strategies Identified in the OPEN SLO Pilot Program:
l.Changes to traffic flow,including “Quick-build"improvements toward
alignment with the Downtown Concept Plan.
2.Short—term street closures,including short—term road closures in the
Downtown and in other areas of the City to facilitate safely distanced
pedestrian circulation,expanded outdoor dining,and customer queuing,
pickup and waiting areas associated with permitted business activities.
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3.Conversion of selected on-street parking spaces to outdoor dining spaoe or
other pedestrian uses (parklets)with consideration for at least one installation
outside of the downtown;use of the parklet may include.
Public sidewalk.No improvements other than rail and aesthetic
treatments to create space for safely distanced pedestrian movement
and customer queuing,pickup,and waiting areas associated with
permitted business activities.
Table and Chair.Utilized by one or more businesses under the City‘s
Table &Chair"permit process and designated for exclusive use of the
business,which may include appropriate signage (meaning no more
than 15 square feet per outdoor area).
Sidewalk Cafe.Designated parklet for exclusive use by one business
under the City’s Sidewalk Cafe permit process.
4.Temporary use of private and public parking lots for expansion of commercial
uses.The City Manager is authorized to suspend current off-street parking in
order to permit selected spaces in private parking lots to be converted to
seating or expanded retail Space.The City could also permit use of spaces in
public parking lots through the Sidewalk Cafes Ordinance.
5.Conversion of Mission Plaza at set days and times for community and
economic recovery support uses,including tables and chairs for 'to-go’dining.
space for outdoor retail booths,art and culture pop-ups,which may include
the closure of the Broad Street ‘dog-leg‘and/or sections of Monterey Street.
6.Pop-ups to encourage and support additional ideas for outdoor space such as.
Develop guidelines and allow use of parts of the sidewalk for signage,
merchandise and queueing,where adequate sidewalk width exists
consistent with disabled access requirements and public safety.
Develop guidelines and allow for pavement painting and planter box
projects initiated by neighborhoods to slow traffic,create painted bulb-
outs or other pedestrian-friendly adaptations.
Support 'traveling‘arts and culture events where exhibits or exhibitions
are allowed on public spaces for visitors to stroll by.
Have designated staff available and a clear process to streamline
review and approval of uses to ensure conformity with access and
public health and safety regulations.
IV
B.Support Expansion of Sidewalk Dining in Support of Social Distancing through
application of the existing Sidewalk Dining Ordinance.For purposes of the
temporary program support and only for such period of time as such temporary
program remains in effect,the following Sections of Chapter 5.50,Sidewalk
Cafes,of the Municipal Code shall be interpreted and applied as follows:
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5.50.015:Permits Required.
The encroachment permit process shall be used for the purpose of evaluating,
establishing conditions applicable to.and approving all requests for revocable
sidewalk cafes permits,and tables and chairs permits,while the temporary
program is in place.
5.50.020:Architectural review.
The Community Development Director shall use discretion conferred by this
section to process permit requests without a separate application for
architectural review and without public notice as may be otherwise specified by
section 5.50.035 or other City policy,unless required by state law.
5.50.030:Fees.
Fees associated with administrative approval of permits under this chapter for
permits shall be suspended.while the temporary program is in place.Any
program recommended for implementation that includes permanent or long-
term use of public property shall include an appropriate fee schedule related to
the use for recommendation for Council approval.
5.50.045.C:Required Operational Standards (Parking).
No additional parking will be required for permits approved under this chapter
while the temporary program is in place
5.50.045.G:(Umbrellas,Awnings,Festoon Lighting and Street Furniture)
Community Development Director may allow great flexibility with respect to the
design and appearance of outdoor furniture ,barriers and Festoon Lighting,
consistent with standards for the protection of public health and safety and
subject to the approval of the City Engineer and/or Building Official.
5.50.050.A:Terms and expiration.
Sidewalk cafe permits approved while the temporary program is in place will
not be approved for an unlimited term and shall specify an automatic expiration
date,unless subsequently renewed
5.50.060.A:Revocation or Suspension of Permit
For the duration of the temporary program,the City retains the right to revoke
or suspend the permit upon twanty-four hours'notice to the sidewalk cafe
operator for any cause,regardless of conformance with the provisions of the
Sidewalk Dining Ordinance.
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1?.70.100.F.1:Lighting and Night Sky Preservation Exemptions
Low—intensity outdoor or festoon lighting fixtures used for architectural
decoration may be installed without Architectural Review,provided it shall not
otherwise create a nuisance or hazard for passing motorists.pedestrians,
cyclists or other modes of transportation,subject to the approval of the City
Engineer and/or Building Official.
C.Upon recommendation by the Community Development Director,the City
Manager may authorize suspension of enforcement of certain regulations as
set forth below to facilitate the operation of the temporary program,solely for
the duration of the temporary program:
1.Sign Regulations
a.Sections 15.40200 (Exempt Signs).subsections H (Temporary Window
Signs)and
b.L (Temporary Signs in Non-Residential zones).
c.Section 15.40.470 (Sign Standards by Sign Type),subsection l.[A-
Frame (Sandwich Board)Signs].
d.For the time period specified above,any permitting requirements for the
types of
e.Signs Specified in this Resolution,as set forth in Section 15.40.500 of
the Sign Regulations herein also may be suspended.
D.Parking Regulations (as to uses and activities on private properties only)
a.Section 17.72.020 A (Requirements by Type of Use)
b.Section 17.72.020 C (Parking Calculations),as applied to existing uses
only,and only to expressly exclude any temporary use of space on
private property for safe outdoor use purposes during the period of
suspension from parking calculations requirements for the property.
E.No facility,structure or improvement may be erected,constructed or placed in
the City Right of Way without the express written approval of the City Engineer
and nothing herein is intended to or shall be interpreted to convey any vested
right in or to the continued use or occupation of public or private property
permitted,allowed or suffered by the City pursuant to the temporary program
herein.
F.Continuing Enforcement of Conditions or Activities Posing a Threat to Public
Health,Safety or Welfare;Continued Enforcement of Permit Requirements for
Electrical,Plumbing,or Structural Components or Appurtenances and
Encroachments into Public Right of Way.Nothing herein is intended to or shall
be deemed to relieve any person from the obligation to obtain,or prohibit code
enforcement for failure to obtain,any permits that would otherwise berequiredunderstatelaw,the San Luis Obispo Municipal Code,or building andsafetycodesadoptedthereunder,including but not limited to:
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1.Permits otherwise required for electrical.plumbing,or structural work
performed within the City.
2.Encroachment permits required for structures,uses and/or activities within
the public right of way,which may be issued at no cost by the City to
facilitate physical distancing and the reopening of businesses.
G.Nothing herein is intended to or shall permit or allow the erection orplacementofanypermanentortemporarystructureorimprovement,on public or private
property in violation of any state or federal accessibility law,including the
Americans With Disabilities Act,or to prohibit or suspend code enforcement
action deemed necessary by the Chief Building Official.the City Engineer or
any other authorized enforcement official of the City.to remedy or abate:a
dangerous condition or activity;any activity presenting an imminent threat of
harm to the health,safety or welfare of the community;any violation of state or
federal accessibility law;or any unauthorized activity on private property or in
the public right of way.
H.Notwithstanding any other City policy or procedure.the City Engineer shall be
authorized to review and approve on behalf of the City any and all design and
construction necessary as part of the temporary program herein and the City
Manager shall be authorized to allow and accept on behalf of the City any and
all donations of time,materials,labor,professional services andior funds in
support of the temporary program herein without further action of the City
Council.
SECTION 8.Extension of discretionary approvals and building permit
applications.Due to the severe economic impacts of COVlD-19 and its impacts on
scheduling,inspection and construction of projects in the City,and in order to prevent
situations where developers or contractors need to restart the discretionary review
process or delay previously approved construction projects due to the need to reapply for
permits or request individual extensions,and to prevent unnecessary distraction of staff
focus and resources away from continued support of COVlD-19 recovery and continued
public health and safety compliance measures to prevent the resurgence of COVlD-‘lQ
within the City,the Council finds it in the best interest of public health and safety and
hereby reaffirms and continues certain prior actions taken related to thecontinuingexistenceofalocalemergencyandeconomicrecoveryassetforthinResolution11232
2021 Series),as follows:
A.Toll the expiration of all discretionary approvals covered by Municipal Code
Section 17.104.070 from the declaration of the pandemic emergency
beginning January 27,2020)until the termination of local emergency
proclamations.
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B.Automatically extend the life of all discretionary approvals existing as of the
date of the termination of the local emergency and covered by Municipal Code
Section 17.104.070 by an additional one and a half years (18 months)after the
termination of the declared local emergency.
C.Automatically extend the life of all active building permit applications by one
year,as authorized by California Building Code Section 105.3.2.
SECTION 7.Continued Su5pension of Safe Parking Requirements
Expansion.A Pursuant to the City’s authority under California Constitution Article XI,
Section 7 to make and enforce within its limits all local,police,sanitary,and other
ordinances and regulations necessary for the protection of the City;the City of San Luis
Obispo Charter;and Chapter 2.24 of the San Luis Obispo Municipal Code.the City
Council hereby directs the extension of emergency measures as follows to support and
facilitate the expansion of safe parking facilities for unhoused persons in order to minimize
exposure to the elements and risks of transmission of COVlD-19 and protect the public
health,safety,welfare and economic security of the citizens of San Luis ObiSpo:
A.Requirements Suspended.Any and all provisions of the San Luis Obispo
Municipal Code,Chapter 17.86,and any and all provisions of any other
currently applicable code provision or use permit,entitlement or contract issued
to any current homeless or supportive services provider permitted by or
contracted with the City of San Luis Obispo ,are hereby suspended to the
extent that such provisions would otherwise limit or prevent the expansion by
such party of safe parking facilities within the City,until 180 days following the
end of the declared City,County and State emergency declarations,or such
other time as may be determined by order of the Emergency Services Director
or City Council,subject to the requirements and restrictions set forth herein
B.Requirements for the temporary expansion of the 40 Prado Road Safe
Parking Program (City Conditional Use Permit #USE-O413-2014).
l.The Community Development Director is hereby authorized,upon written
request,to administratively allow for the temporary expansion of the existing
permitted operation for Safe Parking located at 40 Prado Road at that
location or at any other location authorized by the City Manager within the
City of San Luis Obispo if the Community Development Director determines
that the expansion is consistent with the purpose and intent of San Luis
Obispo Municipal Code Section 17-86230.
2.If the operators of Safe Parking at 40 Prado Road wish to maintain the
establishment or expansion of a Safe Parking location after the period
authorized by this Resolution,any such operator shall submit the
appropriate Planning Application to the Community Development
Department for processing in accordance with otherwise applicable city
regulations for issuance of a use permit or modification to an existing permit.
Any limitations or new conditions of approval that result from the review
process shall be implemented following approval of the permit modification.
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C.Requirements for the establishment of new Safe Parking locations.
1.The Community Development Director is hereby authorized to immediately
allow for the establishment and operation of new Safe Parking locations by
the City andfor third party non—profit partner,upon submittal of a complete
Planning Application for a Conditional Use Permit demonstrating
compliance with the performance standards required by SLOMC Section
1T.86.230.E.l as may be required to normally establish Safe Parking at the
proposed location.
2.The Community Development Department will process the new application
through the normal course of review for the permit application submitted.
Upon approval of the Safe Parking permit,all conditions of approval shall
be applied to the use.If a Conditional Use Permit is not approved within 120
days of the date of the application.then the Safe Parking use shall cease.
D.Operations in violation.In the event that the Safe Parking site is operated in
violation of any requirement established for the temporary operation and such
violation is not remedied as directed by the City,the Community Development
Director may notify the operator in writing that the temporary operation
authorization is terminated;and,upon receipt of said notice,the operator shall
terminate operations and return the site to its original condition within 10 days
of receipt of said notice.
SECTION 8.Financial Management Authority.The authority granted to the City
Manager by Resolution No.11117 (2020 Series)to use FY 2018-19 Unassigned Fund
Balance above required reserve levels is hereby ended and practices shall be conducted
in accordance with generally applicable financial policies upon adoption of the Resolution.
SECTION 9.All existing orders of the State Public Health Officer,the Governor.
the San Luis Obispo County Emergency Services Director,Public Health Officer,and the
County Board of Supervisors as currently in effect and as subsequently clarified,
amended,modified or superseded by subsequent action of any of those parties are
hereby expressly acknowledged and declared to be enforceable within the City of San
Luis Obispo as if directly enacted by the City Council pursuant to San Luis Obispo
Municipal Code Chapter 2.24 and shall be enforceable under Municipal Code 2.24.100
until such time as any such order(s)is terminated by the issuing authority.
SECTION 10.The City's proclamation of local emergency shall be deemed to
continue to exist until it is terminated by the City Council of the City of San Luis Obispo
pursuant to a resolution adopted by the City Council of the City San Luis Obispo or its
Emergency Services Director but shall continue at least until such time as the State
proclamation of emergency is terminated by the Governor.
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SECTION 11.The City has been undertaking,and will continue through cessation
of this emergency to undertake,necessary measures and incur necessary and
extraordinary costs,which are directly related to the prevention of the spread of the
COVlD-19 Virus and are taken in furtherance of:the Secretary of Health and Human
Services‘determination that a public health emergency has existed since January 27,
2020;the Governor‘s Proclamation of a State of Emergency for the State of California on
March 4,2020;the President of the United States'Declaration of a National Emergency
on March 13,2020;the County of San Luis Obispo Emergency Services Director’s
Proclamation of Local Emergency and the County Public Health Director’s Declaration of
a Public Health Emergency on March 13.2020;the City Council’s Proclamation of Local
Emergency on March 17,2020 and subsequent proclamations of continuing local
emergency and related orders,regulations and directives of each of those parties.
SECTION 12.During the existence of said local emergency,the powers,functions,
and duties of the Emergency Services Director and the Emergency Organization of this
City shall be those prescribed by state law,ordinances,and resolutions of this City and
by the City of San Luis ObiSpo Emergency Operations Plan,notwithstanding othenNise
applicable procedures,timelines or methods of action and the Emergency Services
Director is expressly authorized to take any and all actions in furtherance of emergency
powers to address the local emergency.
SECTION 13.This resolution supersedes all prior Council Emergency Resolutions
and Emergency Services Proclamations related to the COVlD-19 pandemic adopted by
the City Council between March 16,2021,and the date of this resolution.
SECTION 14.Environmental Review.As a result of the COVlD-19 public health
emergency,the City of San Luis Obispo proposes to continue a temporary program to
use the right-of-way,sidewalks,and streets to help create continued opportunities for
social distancing during the first few phases (stages)of reopening consistent with the
State‘s Resilience Roadmap.The actions proposed were initiated and are proposed to
continue under the City’s emergency and general police powers to provide for residents
the health and wellness benefits of being outdoors and to support businesses and
customers with enough space to safely physically distance as the State and County move
toward optimal vaccination rates,monitor the emergence of variants,and monitor
transmission rates into the Fall and Winter months.The proposed project is exempt from
environmental review pursuant to the California Environmental Quality Act as follows:
A.The project is statutorily exempt under State CEQA Guidelines Section 15269
Emergency Projects),because the temporary program includes specific
actions that would allow for safe physical distancing and support continued
progression through the pandemic consistent with the State’s Resilience
Roadmap and County and State Guidelines in order to mitigate the COVlD-19
public health emergency and the potential for resurgence.
B.The project is categorically exempt under State CEQA Guidelines Section
15301 (Existing Facilities)because the actions identified in the program are
limited to the permitting,leasing,and minor aiteration of existing public facilities,
including existing streets,sidewalks,bicycle,and pedestrian trails,which would
not result in the creation of additional automobile lanes.The program would
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result in a negligible expansion of existing commercial uses and a negligible
expansion of the public’s use of City right-of-way,as the uses included in the
temporary program would not vary from the current uses of commercial
businesses,residential areas,or public access within the City‘s right—of—way.
SECTION 15.A copy of this Resolution shall be posted in the kiosk outside of City
Hall of the City of San Luis Obispo and on the outside doors of the City Clerk’s office,and
personnel of the City of San Luis Obispo shall endeavor to make copies of this order and
regulation available to the news media.
Upon motion of Vice Mayor Stewart,seconded by Council Member Marx,and on
the following roll call vote:
AYES:Council Member Christianson,Marx,Pease,Vice Mayor Stewart,
and Mayor Harmon
NOES:None
ABSENT:None
The foregoing resolution was adopted this 6th day of July 2021.
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Mayor Heidi Harmon
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Teresa Purrington
City Clerk
APPROVED AS TO FORM:
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J.Christine Dietrick
City Attorney
IN WITNESS WHEREOF,|have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo,California.on 7/12/2021 i 12:13 PM PDT
Dacusignld by:
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Teresa Purrington
City Clerk
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BEST BEST &KRIEGER
LLPATTORNEYS AT LAW18101VON KARMAN
AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612Proof of Service I, Janice Liu, declare: 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 August
16, 2022, I served a copy of the within
document(s): CITY OF SAN LUIS OBISPO’
S REQUEST
FOR JUDICIAL NOTICE IN SUPPORT OF DEMURRER TO FIRST AMENDED PETITION by transmitting via facsimile
the document(s) listed above to the fax number(s)
set forth below on this date before 5:00 p.m. by placing the
document(s) listed above in a sealed envelope with postage thereon fully prepaid,
the
United States mail at Irvine, California addressed as set forth below. by placing
the document(s) listed above in a sealed envelope and affixing a pre-paid air bill,
and
causing the envelope to be delivered to a agent for delivery. by personally delivering
the document(s) listed above
to the person(s) at the address(es) set forth below. by transmitting
via e-mail or electronic transmission the document(s) listed above to the
person(s)
at the e-
mail address(es) set forth
below.John Armstrong Armstrong
Law Group 23232 Peralta
Drive, Suite 102
Laguna Hills, CA
92653 Phone: (949) 942-6069 Email: john@armstronglawgroup.co Attorneys for Petitioner I am readily
familiar with the firm's practice of collection and processing correspondence for mailing. Under that practice it would
be deposited with the U.S. Postal Service on that same day with postage thereon fully prepaid
in the ordinary course of business. I am aware that on motion of the party
served, service is presumed invalid if postal cancellation date or postage meter date is more
82508.00018\34822950.1 -2 -
PROOF OF SERVICE
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612I declare under penalty of perjury
under the laws of
the State of California that the above is
true and