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HomeMy WebLinkAboutD-2174 Community Benefit Agreement with Coastal Delivery SLORECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk's Office DECEIVED CITY OF SAN LUIS OBISPO DEC 2 j 2020 990 Palm Street San Luis Obispo, CA 93401 SLO CIT CLERK Tommy Gong San Luis Obispo - County Clerk -Recorder 11/16/2020 12:00 PM Recorded at the request of: PUBLIC Titles: 1 Pages: 10 Fees: $0.00 Taxes: $$0.00 Total: $0.00 This document is recorded for the benefit of the City of San Luis Obispo, a Municipal Corporation, and recordation without fee is requested, per Government Code § 27383. A COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY SLO, LLC, A RETAIL OPERATOR O-Z,1_71 COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND RETAIL OPERATOR This Community Benefit Agreement ("Agreement") is made and entered into in the City of San Luis Obispo on this _!_` day of k4l dL,�x , 2020 ("Effective Date") by and between the CITY OF SAN LUIS OBISPO, a California municipal corporation ("City"), and COASTAL DELIVERY SLO, LLC., ("Operator"). City and Operator shall be referred to jointly within this Agreement as the "parties" and individually as a "party." RECITALS A. City of San Luis Obispo Municipal Code Chapter 9.10 (Cannabis Regulations) provides for the issuance of City Commercial Cannabis Operator Permit ("Permit") to qualified business entities and individuals for the operation of specific types of commercial cannabis operations in the City subject to the requirements of Chapter 9.10 and 17.86.080 of the Municipal Code, state law and the specific conditions of a Commercial Cannabis Operation Permit. B. On November 13, 2019, the City's Planning Commission issued Operator a Conditional Use Permit for cannabis retail operations. C. On January 29, 2020, Operator submitted an application for a Commercial Cannabis Operator Permit to allow Operator to operate a commercial cannabis business within the City. D. On September 5, 2019, a Commercial Cannabis Operator's Permit was granted to Operator. E. As part of its application, Operator made commitments to provide certain community benefits in consideration for the privilege of operating a commercial cannabis business in the City, as well as to ameliorate the impact of operating a cannabis business in the City, and to help maintain and promote the health, safety and welfare of the residents and visitors of the City. F. In accordance with City of San Luis Obispo Municipal Code Chapter 9.10 and City Council Resolution 11067, Operator's application was scored using merit criteria factors adopted by Council, including factors related to the community benefits that Operator committed to provide. The community benefits Operator committed to provide as part of its application were, in part, the basis for Operator receiving a sufficiently high merit criteria score to result in Operator being granted a Commercial Cannabis Operator Permit. G. This Agreement, consistent with the commitments made by Operator as part of its Cannabis Operator Permit application, sets forth the community benefits Operator will provide as a condition of operating a commercial cannabis retail operation in the City, the timeline and process by which Operator will demonstrate compliance with Operator's commitment to provide community benefits, and provisions for enforcement if Operator does not provide the community benefits Operator has agreed to provide. COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY SLO, LLC Page 1 of 9 OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: 1. DEFINITIONS. Within this Agreement, the following terms have the meanings set forth below: 1.1 "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis rudcralis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. 1.2 "Commercial Cannabis Operator Permit" means a permit required by the City of San Luis Obispo pursuant to City of San Luis Obispo Municipal Code Chapter 9.10 to conduct commercial cannabis activity or a commercial cannabis business in the City. 1.3 "Local" shall mean the area within the boundaries of City of San Luis Obispo and San Luis Obispo County, California. 2. TERM AND TERMINATION 2.1 The term of this Agreement (the "Term") starts on the Effective Date, and shall continue in full force and effect until any of the following events occurs: a. Operator fails to maintain current and valid City Use and Operating Permits (including, but not limited to, through revocation by the City or the failure to renew a permit). b. Operator permanently ceases cannabis operations in the City conducted pursuant to a City of San Luis Obispo commercial cannabis operator permit associated with this Agreement. C. The parties terminate this Agreement pursuant to mutual written agreement. 3. COMMUNITY BENEFIT Purpose. The Operator must demonstrate a commitment to local hiring and community support as was offered in the Operator's approved application. To that end, the Operator will make best faith efforts consistent with State and federal law to use local contractors and workers for its site and building improvements, for its employees, and for any other economic activity the Operator COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY Page 2 of 7 is engaged with concering the commercial cannabis operations that are the subject of Operator's Cannabis Operator Permit. Likewise, the community benefits offered by Operator will support community programs in San Luis Obispo, County (i.e. park cleanups, facility improvements, donating supplies/equipment to youth programs, etc.) Consistent with its commitments included in its application for a Commercial Cannabis Operator Permit, Operator shall provide the benefits to the community set forth in Section 3.2. 3.1 Community Benefit Commitments. Operator will: a. Employ a local, diverse, knowledgeable workforce and hire 91% to 100% of its workforce local to San Obispo County residents. b. Adhere to the Employment Best Practices, specified in Operator's application C. Source a minimum of 80% of supply and equipment expense (non -labor, non -rent expense) from businesses within 90 miles of City. d. Provide a minimum of 50 hours per month of community support to non- profit organizations within the City. e. Provide a minimum of $2,000 per month in financial support to non-profit organizations within the City. f. Host educational events to promote cannabis education and awareness, especially among communities who are not fully knowledgeable regarding its uses, economic potential, and especially its therapeutic qualities. The specified types of events Coastal Delivery will host are outlined in their application but will fall under the categories of — Cannabis Health, Prop 64 Petition, Elevate the Community, and Senior and Cannabis. g. Provide a minimum of $10,000 annually in funding to the San Luis Coastal Unified School District to fund an addiction awareness curriculum. h. Provide an annual public report demonstrating topline findings regarding the sale of cannabis in the San Luis Obispo community. i. Donate a minumum of 2% of net profits to local non-profit organizations and charities within the City on an annual basis. j. Uphold all other Community Benefit commitments made by Operator in their application for a Cannabis Operator Permit. 4. EQUITY AND LABOR 4.1 Purpose. Operator commits to equity ownership and competitive compensation in comparison to other mainstream commercial businesses within the City of San Luis Obispo COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY Page 3 of 7 4.2 Equity and Labor Commitments. Coastal will: a. Create an average pay rate for entry and mid -level positions of at least 40% more than the median local income for similar positions in other mainstream businesses in the County of San Luis Obispo. b. Commits to providing a base wage of employees that exceeds the minimum wageof the State of California by at least $3.00/hr and will abide by the provisions of the San Luis Obispo Wage Ordinance and shall keep on file sufficient evidence of its employee compensation. C. Enter into and abide by agreed -upon labor peace agreements. d. Uphold all other Labor and Equity Commitments made in their application. Nothing in this Agreement shall require the Operator to offer employment to individuals who are not otherwise qualified for such employment. Without limiting the generality of the foregoing, the provisions of this Section are not intended, and shall not be construed, to benefit or be enforceable by any person whatsoever other than the City. 5. RECORDS Records. Pursuant to City Municipal Code Chapter 9.10.130 - Records and Reports - Operator shall keep, and require subcontractors to keep, subject to the Health Insurance Portability and Accountability Act (HIPAA) regulations, books, records, accounts, and any and all data relevant to its permitted activities for the purpose of conducting an audit, examination or inspectionor other documents relating to the status of community support, equity and labor, messaging, medical retail, community relations, education and all other community benefit commitments the operator made in their application as shall be necessary to demonstrate good faith compliance with the Operative Provisions made in this Community Benefit Agreement. Limited exclusively to purposes concerning the performance and enforcement of the Community Benefit Commitments, the City Manager or their designee shall have full and free access to such books and records at all times during normal business hours of the City, including the right to inspect, copy, audit and make records and transcripts from such records. 6. ENFORCEMENT 6.1 Annual Reports and Compliance Checks. Pursuant to City Municipal Code Section 9.10.190, compliance with the terms of this Community Benefit Agreement will be reviewed at least as often as during the annual renewal process. The Operator will supply to the City Manager's designee all reports and other records that document Operator's compliance or lack of compliance with the terms of this Agreement during the previous year of operation. The reports and other records shall be submitted at the time of scheduled annual renewal compliance check that will be coordinated by the Operator and police department, code enforcement staff and/or any other duly authorized agent of the City. 6.2 Confidentiality. All information obtained by the City from the Operator in performance of this Agreement shall be considered confidential to the fullest extent provided by COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY Page 4 of 7 law, unless such information is in the public domain. The City shall not release or disclose any such information to persons or entities other than the City and/or any other duly authorized agent of the City without prior written authorization from the Operator, unless disclosure is otherwise required by law. 6.3 Suspension or Revocation of Operator's Permit. a. The City Manager or their designee is authorized to suspend or revoke the Operator's Permit associated with this Agreement in accordance with the provisions of City Municipal Code Section 9.10.090 upon the determination by City that Operator has failed to comply with any provision of this Agreement. b. If City determines that Operator is not abiding by any term or condition of this Agreement, the City will notify Operator in writing of such failure to perform. Operator shall have ten (10) calendar days from the date of the notice in which to cure the identified failure to perfom or provide City with a schedule for curing the failure to perform that is satisfactory to the City. If Operator has not cured the failure to perform or provided City with a schedule for curing the failure to perform that is satisfactory to the City within the ten (10) days from the date of the notice, Operator's Commercial Cannabis Operator Permit shall be subject to suspension or revocation in accordance with City Municipal Code Chapter 9.10. C. Conditions (if any) of suspension or revocation are at the discretion of the the City Manager or their designee and may include, but are not limited to, a prohibition on all owners, operators, managers and employees of the suspended or revoked commercial cannabis operation from operating within the City for a period of time set forth in writing and/or, if it is determined by the City Manager or designee that operations may resume, a requirement for the holder of the suspended or revoked permit to resubmit an application for a Permit pursuant to the requirements of City of San Luis Obispo Municipal Code Chapter 9.10. 7. MISCELLANEOUS PROVISIONS. 7.1 Notices. a. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager, City of San Luis Obispo, 990 Palm Street., San Luis Obispo, CA 93401 and in the case of the Operator, to the person(s) at the address designated on the execution page of this Agreement. b. Notice shall be deemed served at the time personally delivered or in three (3) days from the date of mailing if mailed as provided in this Section. C. A party may change the person or persons designated for receipt of notices on behalf of that party and/or the address designated for receipt of notices for that party by giving written notice to the other party in accordance with this Section. 7.2 Status of the Operator. Operator is not an official, officer, employee, agent or representative of the City and shall have no authority to bind the City in any manner, or to COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY Page 5 of 7 incur any obligation, debt or liability of any kind on behalf of or against the City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by the City. Operator shall not at any time or in any manner represent that Operator or any of Operator's officers, employees, or agents are in any manner officials, officers, employees,agents or representatives of the City. Neither the Operator, nor any of the Operator's officers, employees or agents, have or shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to the City's employees. 7.3 Integration. Operator's application for a Commercial Cannabis Business Operator's Permit, the Cannabis Operator's Permit issued by City to Operator, and all terms and conditions thereof, are hereby incorporated by reference and made a part of this Agreement as if fully set forth herein. 7.4 Binding Agreement. The parties to this Agreement, and each of them, agree that this Agreement, and each term hereof, is legal and valid and is binding and enforceable on each party and on each party's successors and assigns. The parties to this Agreement, and each of them, hereby covenant and agree that they not commence, maintain, or prosecute any claim, demand, cause of action, suit, or other proceeding against any other party to this Agreement, in law or in equity, or based on any allegation or assertion in any such action, that this Agreement or any term hereof is void, invalid, or unenforceable. 7.5 Waiver. All waivers of performance must be in a writing signed by the party granting the waiver. Failure by a party to insist upon the strict performance of any provision of this Agreement shall not be a waiver of future performance of the same or any other provision of this Agreement. 7.6 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 7.7 Governing Law and Venue. This Agreement shall be governed and interpreted in accordance with California law, with venue for any litigation concerning this Agreement in City of San Luis Obispo, San Luis Obispo County, California. 7.8 Severability. Should any provision of this Agreement be declared invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining provisions of this Agreement which are hereby declared as severable, shall remain in full force and effect, and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 7.9 Amendment..No amendment to or modification of this Agreemen shall be valid or enforceable unless made in a writing executed on behalf of Operator, or its designee, and the City Manager, or his or her designee. 7.10 Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supercedes any and all prior or contemporaneous discussions, agreements or understandings of the parties, whether written or oral, unless specifically incorporated into this Agreement. COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY Page 6 of 7 7.11 Counterparts. This Agreement may be executed by the parties in counterparts, which together shall have the same effect as if each party had executed the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first -above written ("Effective Date"). CITY: CITY OF SAN LUIS OBISPO, a California municipal corporation "�? �/Z"_ D k John qn, City Manager ATTEST: �Te esa Purringtgn, City Clerk PP VE FORM: J. Christine Dietrick, City Attorney OPERATOR: Coastal Delivery SLO, LLC, a California limited liability compa fay: Name: 1 C iq r-W Title: fA ► C t P A-'-_ Address: 81 q P-G-W I C-K ST- COMMUNITY BENEFIT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND COASTAL DELIVERY Page 7 of 7 ACKNOWLEDGMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) On abaa , before me, Megan Wilbanks, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), 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. WITNESS my hand and official seal. "-M.z.q ,,, 73'42� Megan ilbanks, Notary Public MEGAN W11ANKS *-.IV Notary public - California SanLuis Obispo County Commission N 2322526[ Comm. Expires Feb 28, 2024 ! �•�•M•w•rr�rwrrr�rr� (Seal) CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 '�:i3s}:I:S:9Y7S�;S.�25'SiFdi4S[i'i4it4;3tji;•.?::tr;�}-44:.:�sfisti{�SsYisii� S�:'-`#iOti4:k�Y..-�,sYiY; hfHia�>•,,.1f:i:S3I^t1�Sa:is'i's�7?i;<: ;-}.,YrE�Y�i.-,.,4}:S$:k,4..�i:� ��.s47 #;4, �4Fs{t.S4�ist�s5. ,L.iC7��3>{ f#.0 ,4i . So-c }is4��?.i,.s� A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California 1 County of �-• : J} On \� cpQ ew.�p �.� 10 -�.DZ�before me, a Date ` Here Insert Name and Title of the Offic r personally appeared Nome(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. °i..s KEVIN R. CHRISTIAN Notary public . California Y San I -Ws Obispo County n Commission p 2302534 r `` �•"' My Comm. Expires Aug 22, 2023 Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Docyment Title or Type of Document: ���^�f �S�vL�.'r—+_� ��rc,,r,Lt r+.t4►^`� Document Date: k l Igz-o Number of Pages: _ Signer(s) Other Than Named Above: .C—•rtc— "1J �..+�-r,+•• Capacity(ies) Claimed b Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee {� ❑ Guardian or Conservator O-Other: Signer is Representing: ©2018 National Notary Association Signer's Name: ❑ Corporate Officer — Title(s): -_ ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: END OF DOCUMENT