1. Quarterly Employee Recognition

2. Down Syndrome Awareness Month Proclamation

 3. National Community Planning Month Proclamation

7. Adopt a Resolution Granting Special Use Permit No. 21-23 for the Tree Factory’s Day of the Dead Celebration with Ancillary Food Trucks, Vendors, and Live Entertainment
8. Annual Development Agreement Compliance Review and Finding of Exemption From CEQA
9. Joint Resolution Regarding Property Conveyance
Good afternoon everyone, and welcome to the closed session portion of the City Council meeting. 00:01:53
I'm calling this meeting to order. The time is now 5:30 PM. 00:01:59
Madam Clerk, can you please take roll? 00:02:02
Council Member Gamma. 00:02:05
Here. 00:02:07
Council Member Hernandez here. 00:02:08
Council Member McQueen Lushan here, Mayor Pro Tem Perez here and Mayor Martinez present. 00:02:10
We will now hear public comments soon, participants. 00:02:17
Please use the Raise your Hand feature if you'd like to comment. You will have 3 minutes to provide comments. 00:02:20
Madam Clerk. 00:02:25
Do we have any public comment tonight? 00:02:26
No public comments for closed session. 00:02:28
Mr. City Attorney, can you please read the closed session item into the record? 00:02:30
Martinez There are two items of business on closed session for tonight. There's public employee performance evaluation of the City 00:02:35
manager pursuant to Government Code Section 54957 B One. 00:02:39
And then public employment employee performance evaluation of the City Attorney pursuant to the same code section. 00:02:44
Thank you, Mr. City Attorney. 00:02:54
Council will not will actually. 00:02:55
Do any council members have any conflicts to disclose for the listed closed session agenda items? 00:02:58
Alright, so Council will recess to closed session. The time is now. 00:03:05
5:31 PM. 00:03:08
We'll be back at 6:30. 00:03:11
Welcome everyone to the City Council regular meeting. I'm calling this meeting to order. The time is now 6:35 PM. 01:06:23
Well everyone, please stand and join us for the flag salute. 01:06:30
Ready. 01:06:39
Begin. 01:06:39
I pledge allegiance to the flag. 01:06:41
Of the United States of America. 01:06:43
And to the Republic for which it stands. 01:06:45
Decent. 01:06:48
Invisible. 01:06:50
Being justice. 01:06:52
Right. 01:07:02
Madam Clerk, can you please take roll? 01:07:03
Council Member Gamma. 01:07:07
Council member Hernandez, Council member McQueen Lejean, Mayor Pro Tem Perez. 01:07:09
Here and Mayor Martinez. 01:07:14
Miss. Mr. City Attorney, can you please? 01:07:17
Provide the closed session report. 01:07:20
Martinez There was no reportable action taken in closed session tonight. 01:07:22
If. 01:07:26
We'll now move on to public comments. 01:07:26
Public comments are limited to 3 minutes. 01:07:29
Madam Clerk, do we have any public comments tonight? 01:07:33
Yes, our first public comment will be from Jasmine Keys. 01:07:37
Hi, good afternoon. 01:07:49
Um, I'm addressing you all today on behalf of Onami High School. I'm the band director there. 01:07:51
And I wanted to come and basically want to allow the band to come and hopefully play for you guys, just for a quick minute. 01:07:56
But also I wanted to inquire and reach out, hopefully for the consideration. 01:08:02
Of the Community Community Benefit Grant. 01:08:07
When You Me band is rebuilding themselves, they're very dedicated group of kids. 01:08:10
They're very hard working and very passionate. 01:08:14
For music, and this grant will help them in furthering their endeavor in musical. 01:08:16
In everything that they're doing, they've improved so much since the beginning of year that I worked with them. 01:08:21
And I'm really looking forward to continuing working with them. Hopefully with your guys support the community support, we can 01:08:25
rebuild this program in support of Wanami. 01:08:29
OK. 01:08:34
Thank you guys. Have a good rest of your night. 01:11:11
Thank you to Miss Miss Keys and the Wanami High School Band. 01:11:18
Everyone. 01:11:22
Becky burning. 01:11:28
Good evening Mayor, Mayor, Pro Tem, Council members, staff. 01:11:38
And the audience? 01:11:42
I'm here tonight on behalf of Roku API Outdoors. 01:11:44
And this Sunday is our Spooktacular fishing. 01:11:47
Day with our families. 01:11:52
And we're requesting that all the. 01:11:54
Participants wear a costume. 01:11:57
And we would like for you to register online if possible. 01:12:00
If you have your own gear, you can bring it. If not, we will furnish it. 01:12:04
Thank you. 01:12:08
Thank you, Miss Becky. 01:12:10
Francis Anderson. 01:12:13
Good evening, Mayor and members of the council. 01:12:22
I have heard a lot of chatter lately about a $3,000,000 error in the budget of the city. 01:12:25
And I wondered if you could comment on it or tell me what exactly is going on, if it's true or if it's not true. 01:12:31
And what's happening? 01:12:37
Thank you. 01:12:39
Thank you Mayor, if I could. So the the Council is not able to comment on items on public comment. 01:12:42
But we did post the statement today on Facebook that you can review that speaks to. 01:12:48
The the issue you raise. 01:12:55
In short, you know, I'll try to paraphrase what the comment says is we looked at the budget. We were looking at the budget for 01:12:58
sustainability for not just this year, but. 01:13:03
Years into the future Four years Five years into the future. 01:13:08
And what we? 01:13:12
Found was that we needed to make some adjustments. 01:13:14
To start making some adjustments now to better, better to be better positioned five years into the future, six years into the 01:13:17
future. 01:13:20
And so we brought some projects. 01:13:24
To the Council in September that we recommended postponing or shifting around to try to be better positioned, positioned for the 01:13:27
future. 01:13:30
So. 01:13:34
Since it's not on the agenda, I can't dive into the detail, but we did post some information on that today and if you still have 01:13:35
questions, you can submit a question on e-mail and we can get you more information. 01:13:41
But it's something we're working on. We're trying to be prepared and and be proactive. 01:13:46
We have one public comment for item number 2, but I will call her up now, so because it's a presentation. 01:13:57
So, Jasmine Duran. 01:14:04
Good evening. My name is Jasmine Duran, and I'm the Advocacy Coordinator for Autism Society of Ventura County. 01:14:15
And a member of ASC's advocacy committee. 01:14:21
ASC advocates for local public policies that improve the lives of individuals with autism, and the Advocacy Committee is a team of 01:14:24
autistic individuals and family members that meets regularly to review agendas and advocates for the quality of life issues for 01:14:30
those with disabilities and their families in Ventura County. 01:14:36
The Autism Society of Ventura County and Advocacy Committee supports the proclamation recognizing October 2023 as Down syndrome 01:14:43
Awareness Month. 01:14:47
Down Down syndrome is an important disability for us to learn about and focus on. 01:14:52
According to National Institute of Health, approximately 16 to 18% of people with Down syndrome also have autism. These 01:14:58
intersections are not shared as often as they need to be. 01:15:03
And we are here today in hopes to bring awareness to this intersectionality. 01:15:09
Locally, Rainbow Connection Family Resource and Empowerment Center had its first ever Down syndrome Awareness Walk and Resource 01:15:14
Fair at. 01:15:18
Hello Koi Park, formerly known as Oxnard Beach Park this past Saturday. 01:15:22
The event brought together the community to participate in a walk around the park. They also had games, tractor pool rides, Jolly 01:15:28
Jumper, DJ dancing and even karaoke. 01:15:33
AVC is proud to have participated in the resource fair. We even had our own board member, Michelle, participate in the walk with 01:15:38
her children. 01:15:42
We look forward to watching this event continue to grow in the years to come. 01:15:47
Individuals with Down syndrome play many roles in our community. Brothers, sisters, uncles, aunts, parents, students, volunteers, 01:15:51
interns and they work in various industries including hospitality, tourism, food and beverage, customer service, critical services 01:15:56
and many more. 01:16:02
I would like to take a moment to highlight one particular individual with Down syndrome who is breaking down barriers and defying 01:16:08
stereotypes. Kayla McKeon is a 36 year old registered Congressional lobbyist in DC She manages a small grassroots agency. She's an 01:16:14
advocate athlete, motivational speaker, political intern, and most recently, she helped design the first Barbie with Down 01:16:20
syndrome. 01:16:26
She has too many other accomplishments to list here. Today. It is said to give her a bill or a ball and she will run with it. 01:16:33
Kayla's story is moving, and it brings hope to others with Down syndrome and other developmental disabilities. Autism Society 01:16:40
Ventura County longs for a society where all people with developmental disabilities of any age are encouraged to assert their 01:16:46
thoughts and ideas and contribute their unique perspectives. 01:16:53
Thank you for bringing awareness to Down syndrome with your proclamation here tonight. 01:17:00
And thank you for everything you do for those that call Port Wanami home. 01:17:05
I appreciate your time. Thank you. 01:17:09
Thank you, Miss Duran. 01:17:12
Louise Mendez. 01:17:14
Thank you, Mayor, Mayor Protem, council members. 01:17:23
City manager. 01:17:25
First of all, I am a. 01:17:26
Alumni of Union High School, Four years Marching band. 01:17:28
Oh. 01:17:31
Good job you guys. It's. 01:17:33
Takes me back really quick. 01:17:35
So I know someone else mentioned it earlier going to the public comment or that was released early on Facebook regarding the 01:17:37
deficit. I wanted to thank whoever was in charge of it for releasing that clarification because it did cause. 01:17:42
Instead of a lot of talk back and forth and that clarification was needed. 01:17:47
And one of the concerns I have about that I'd like to express to you guys is that. 01:17:52
As times. 01:17:56
Move on with inflation, bills, expenses, those all go up. The cost of doing business as a city goes up. 01:17:58
And although you guys have to defer certain certain projects. 01:18:04
I didn't see or meant hear anything mentioned about. 01:18:07
Increasing revenue for the city because with those costs. 01:18:10
You need revenue to cover them, you know, and. 01:18:13
That's part of balancing the budget and. 01:18:16
I think with some of us residents that look at certain things that are spent on, you know, sometimes even losses, you know, if we 01:18:18
go back to the beach, the beach festival and stuff like that. 01:18:22
We want to make sure that you guys are good stewards of our money. 01:18:26
And also to ensure that you guys are looking towards the future because whenever. 01:18:28
Decisions are made under duress. 01:18:32
You know. 01:18:34
Bankruptcy. Anything like that, the decisions aren't obvious. 01:18:35
Always the best ones are in the best interest, so if you guys plan ahead. 01:18:39
Those kind of hard decisions will be dealt with better by the community and probably more acceptable and easier to accept rather 01:18:42
than a big bunch of stuff at once. 01:18:47
The second part would be the CBF fund I just wanted to address. There was a lot of commentary on Facebook amongst me and my 01:18:51
friends in regards to. 01:18:55
Some of the decisions being made. 01:18:59
I think personally there there may be a. 01:19:01
A disconnect between the city and the port of Animi and even the residents as to what constitutes a public benefit. 01:19:03
I think that definition really needs to be clarified because of of. 01:19:11
Of the different things that we see. 01:19:15
We don't approve a, for instance. 01:19:17
I was looking at the budget as you put the link on. 01:19:19
Regarding what some of the things are gonna come up, I saw a $50,000, you know, budget item for a statue of Bart. Mr. Bart. 01:19:22
And where that's going to go, I don't know. That's a lot of money. 01:19:28
But I don't see a public benefit in that you don't have friends that are part of the port, but as a community resident, I don't 01:19:31
see the benefit. 01:19:35
I think Miss Hernandez mentioned one time about a colorful sign of the beach like 19 Acres has. 01:19:38
That's something that would attract people to the beach. 01:19:44
Take pictures, increase revenue. 01:19:46
In the area that we live in, so it's trying to find that connection between the council, the poor and the residents as to what is 01:19:48
actually a community benefit and how we see it. 01:19:53
And the amounts being spent on each item, so if you guys could take that into consideration, maybe back to the port and come back 01:19:57
to us and let us know, so that way there's no misunderstandings. 01:20:01
Thank you. 01:20:06
Thank you, Mr. Mendez. 01:20:09
I just. 01:20:10
Just just to add 1 point, so the Community Benefit Fund will be scheduled for an upcoming council meeting. 01:20:12
So there will be an opportunity to come directly provide input on what you know what, what's on that list. 01:20:19
And we have one last public comment, which is. 01:20:27
Or written comments It's Our city has a handful of excellent organizations that help our community with the help of resident 01:20:32
volunteers who support these organizations because these organizations give back to our community. 01:20:38
Real Guppy Outdoors, Poor, Whitening Me, Little League, VFW and Coastal Keepers are a few examples. 01:20:44
These organizations plan events, organized fundraising for their organization and operate independently, not under the direction 01:20:51
of the city. 01:20:55
These are the organizations or Port and Cannabis Benefit Funds were intended to support. 01:20:59
City staff and leaders have created organizations that have relied on the port and cannabis benefit funds. 01:21:04
REACH and Safe Port Wanami are examples of nonprofit organizations that city consultants and city leaders have established. 01:21:10
Both of these organizations were financed almost exclusively by city contracts or benefit funds, and neither of these 01:21:17
organizations generated many fundraising opportunities on their own. 01:21:22
Where are both of these nonprofits now? 01:21:28
Save Money Beach dried up within months of spending 14,000 of cannabis benefit funds that could have been utilized for long 01:21:30
standing existing. 01:21:34
Nonprofits that rely on volunteers. 01:21:38
Reached didn't fulfill their agreement with the city. Both the Wanami Beach Festival and the 75th Anniversary were fun events that 01:21:41
I enjoyed. 01:21:44
However, the contract was for three to four events. 01:21:48
Our city was a primary source of funds for Reach, and Reach didn't do any other fundraising, depending solely on city and benefit 01:21:51
funds to pay their payroll. 01:21:55
Our City Council discussed using port and cannabis benefit funds to form two additional nonprofits. 01:22:00
At the last meeting. 01:22:05
Sister city nonprofit and poor whitening meat arts nonprofits. 01:22:07
Why are we creating nonprofits in order to find uses for the benefit funds? 01:22:10
If these nonprofits are truly beneficial to our community, volunteers will gladly help organize fundraising opportunities to fund 01:22:15
these organizations, just as our existing nonprofits in our community have grown with the help of volunteers. 01:22:21
We already have organizations that are proven to be great benefits in our community, yet these organizations seem to be 01:22:28
overlooked. 01:22:31
While the prior city founded nonprofits were genius generously funded with a port, cannabis and city funds. 01:22:35
I encourage the city to support existing organizations before starting new organizations. 01:22:41
Maybe our city leaders should separate themselves from these nonprofits and let the community determine what our community 01:22:46
prioritizes. 01:22:49
Should nonprofits that are operated by city leaders receive more of the poor in cannabis funds than existing organizations that 01:22:53
are operated by volunteer residents? 01:22:58
Where is Save Whiting Me Beach Now? 01:23:03
Was the 14,000 that Save Wanami Beach utilized from the cannabis funds beneficial to our community? 01:23:05
I don't think our city is having much success in cherry picking what organizations get fundraising. 01:23:10
As both the examples above had demonstrated a waste of money and not really sure how much good they have brought to the community 01:23:15
for the amount of money they were funded. 01:23:19
Focusing on what our residents have already supported with their volunteer hours and independent fundraising would help these 01:23:24
organizations grow and in turn, help our community. 01:23:28
Ricardo Holden. 01:23:33
And that concludes public comment. 01:23:35
Thank you, Madam Clerk. 01:23:38
We're going to move on to approving the city agenda. May I have a motion in a second? 01:23:40
So moved. 01:23:46
2nd. 01:23:47
Madam Clerk, can you please take a vote? 01:23:49
All in favor. 01:23:51
Aye. 01:23:52
All opposed. 01:23:53
Hearing none motion passes unanimously. 01:23:54
Do any members of Council have any conflicts of interest to disclose for any one item on the agenda? 01:23:57
All right. Let's move on to presentation. Item number one, quarterly employee recognition. 01:24:04
By Fred Camarillo, Public Works Director. 01:24:09
And if I may just give a quick introduction before Fred, I'll I'll introduce Fred to say a few words about Rick, who we're 01:24:13
recognizing today. 01:24:17
But I just wanted to give a little bit of background. 01:24:22
On just the reminder that. 01:24:25
We've tried to every quarter. 01:24:29
Do an employee recognition to recognize employees who celebrate either their 15/20/25 year or beyond years of service with the 01:24:32
city. And this was a program that's been developed by the city's talent committee looking to honor employees who've committed 01:24:38
significant years of their career in service to. 01:24:44
The city of Portland, Miami and this quarter I'm gonna turn it over to our Interim Public Works Director, Fred Camarillo to. 01:24:51
Introduce and say a few words about the person we are recognizing today. 01:24:59
Thank you. Good evening, Mayor, Mayor Protem, council members of the audience, staff. 01:25:06
Umm. 01:25:11
Rick couldn't be here tonight, but. 01:25:12
As you may remember, last year we were doing some catch ups from years that had passed by. 01:25:16
So Rick was able to attend last year, where he got recognized for his 15 years of service. 01:25:21
Um, this year it says. 20th year of service he started. 01:25:26
In July of 2003. 01:25:30
And. 01:25:33
I'm. 01:25:34
Happy to say that I've. 01:25:36
Been. 01:25:38
A friend of Rick's and have been able to work alongside Rick for those 20 years. So. 01:25:39
Umm. 01:25:44
You guys probably all know Rick's very cheerful guy. 01:25:45
Umm, very helpful volunteers. 01:25:50
For a lot of the committees that the city manager just spoke about, he's represents public works on our talent committee and. 01:25:53
He's been involved with other committees big. 01:26:00
Big well with helping getting the beach festival, the banana festival, all those things. 01:26:02
From the public work standpoint. 01:26:07
Represented so we can take care of all those things. 01:26:11
Rick is. 01:26:15
Someone who truly cares about what he does. I mean he he. 01:26:17
You never see Rick in a bad mood. 01:26:20
He's he's willing to help wherever needed. 01:26:22
And one of the questions on the questionnaire that's given out to all the employees, asking what he liked best about working for 01:26:26
the city of Fort Wayne. Amy. 01:26:30
He mentioned that it was. 01:26:34
Being able to assist. 01:26:36
The residents, the community at large, with anything that might come up that they might need assistance with, whether it's related 01:26:39
to solid waste or not. 01:26:43
And that. 01:26:48
He has enjoyed building a lot of friendships and camaraderie with all of the people that he's worked with throughout the years 01:26:49
and. 01:26:53
Please join me in recognizing Rick's 20 years of service. 01:26:57
Thank you, Mr. Camarillo. We're going to move on to item number two, Down syndrome Awareness Month proclamation. 01:27:05
Mayor Pro Tem will be reading the proclamation tonight. 01:27:12
Thank you, Mayor. 01:27:15
Down syndrome Awareness Month, October 2023. 01:27:17
Whereas October is designated as Down syndrome Awareness Month and whereas Down syndrome is the most survivable. 01:27:20
Genetic different? 01:27:28
Affecting one in every 733 live births. 01:27:29
In the United States. 01:27:34
Whereas. 01:27:35
Trisomy 21. 01:27:37
I think I'm pronouncing that correctly. 01:27:39
The most common type of Down syndrome is caused by extra by an extra third copy of the 21st chromosome. 01:27:41
And whereas the genes on the extra chromosome interact. 01:27:47
With other genes causing varying degrees of learning difficulties as well as physical disabilities. 01:27:51
The learning difficulties or degree of intellectual disability can be mild to severe, but most commonly falls somewhere in the 01:27:57
moderate area. 01:28:01
And whereas individuals with Down syndrome have physical characteristics similar to a family or ethnic resemblance, individuals 01:28:05
with Down syndrome. 01:28:10
Are just are also just that individuals. 01:28:14
The effects of the extra chromosome do not affect each person the exact same way. 01:28:17
There are common physical characteristics of Down syndrome. 01:28:22
Among individuals, however, the degree of physical characteristics also varies among individuals. 01:28:25
And whereas children with Down syndrome are educated in many different ways, however, early intervention and early education are 01:28:33
key to the individual's development. 01:28:38
Some individuals participate in special needs education and also all inclusive education settings, including extracurricular 01:28:42
programs for both of those areas. 01:28:47
And whereas many adults with Down syndrome live independently. 01:28:52
Live in living programs or with their families. 01:28:56
Many individuals have jobs either working independently or with a job coach. 01:28:59
Some individuals attend day programs that focus on special activities. 01:29:04
And whereas people with Down syndrome. 01:29:08
Often find a lot of satisfaction in the activities that they participate in and experience. 01:29:11
Most individuals with Down syndrome grow, learn, and function well within all communities. 01:29:16
One area of strength for individuals with Down syndrome is their social skills, which often exceed their academic achievements and 01:29:21
help them to achieve a happy and productive life. 01:29:26
Now THEREFORE, therefore be it proclaimed that the City Council of Port Wanami hereby recognizes October as Down syndrome 01:29:31
Awareness Month in the City of Port Wanami. 01:29:36
And encourages the community to support the quality of life. 01:29:41
For individuals with Down syndrome by promoting inclusion, acceptance, community connections, and awareness of individuals with 01:29:44
Down syndrome. 01:29:47
Proclaim the 16th day of October 2023. 01:29:51
Thank you Mayor Pro Tem Press for reading the proclamation. I also want to mention we have Chief Federico joining us via Zoom. 01:29:59
Would you like to say a few words? 01:30:03
Chief. 01:30:08
Yes, folks, in addition. 01:30:09
You know your your police chief, who's the former president of Down syndrome Association of LA, which serves families up in port 01:30:11
with me, Ventura, Camarillo and Oxnard, as well as the Ilaria. 01:30:16
And your police commissioner Cameo, AKA the Commission. 01:30:23
Are ecstatic to hear the proclamation read. 01:30:27
It's coming from a city we love and we're proud to hear it. 01:30:32
Notice that your officers are now donning on their uniforms and the City of Portland Amy a Down syndrome awareness pin. 01:30:36
And that pin holds the colors of blue and yellow, the Down Cinema awareness colors. And it has their badge, the Portland Police 01:30:44
badge embraced by the. 01:30:48
Two colored ribbon and it's being worn on their uniforms now. 01:30:53
To show or I'm sorry, to display the awareness. 01:30:57
Of Down syndrome Awareness Month. 01:31:01
I appreciate you all for this and. 01:31:04
Your special needs community, as you've heard. 01:31:06
From others and the Down syndrome community. 01:31:09
Are humbled by the proclamation. Thank you. 01:31:11
Thank you, Chief. 01:31:16
Alright, we're gonna move on to presentation item number three, National Community Planning Month Proclamation presented by our 01:31:21
Community Development Director, Tony Stewart. 01:31:25
Good evening, mayor. Council also slash city planner. So that's why I'm up here. I tried to get Jose, our associate planner, to do 01:31:36
it, but we are. 01:31:40
So I thank you again. This is Community Planning month for October 2020 third. 01:31:46
Whereas change is constant and affects all cities, towns, suburbs, counties, boroughs, townships, rural areas and other places. 01:31:52
And whereas community planning and plans can help manage this change in a way that provides better choices for how people work and 01:31:59
live. 01:32:03
And whereas community planning provides an opportunity for all residents to be meaningfully involved in making choices that 01:32:07
determine the future. 01:32:11
Of their community and whereas. 01:32:15
The full benefits of planning require public officials and citizens who understand, support and demand excellence in planning. 01:32:18
And plan implementation. 01:32:24
And whereas the month of October is designated as National Community Planning Month throughout the United States of America and 01:32:26
its territories. 01:32:30
And whereas the American Planning Association and its professional institute, the American Institute of Certified Planners. 01:32:35
Endorse National Community Planning Month as an opportunity to highlight the contributions. 01:32:41
Sound planning and planning implementation make to the quality of our settlements. 01:32:46
And environment. 01:32:51
And assurances that they are equitable, resilient and sustainable. 01:32:52
And whereas the celebration of National Community Planning Month. 01:32:56
Gives us the opportunity to publicly recognize. 01:33:00
The participation and dedication of the members of the professional planning community. 01:33:03
And other citizen planners who have contributed their time and expertise to the improvement. 01:33:07
Of the City of Port Wanami, and to extend our appreciation for their continued commitment to public service. 01:33:12
Now, therefore, be it proclaimed that the month of October 2023. 01:33:18
2023 is hereby designated National Community Planning Month in the City of Portland. Amy. 01:33:22
In conjunction with the celebration of National Community Planning Month, thank you. 01:33:27
Thank you, Mr. Stewart. 01:33:36
We will now move on to the consent calendar. We will consider items on the consent calendar which will be enacted in one motion 01:33:37
unless the Council member has a request to remove an item for discussion. 01:33:42
May I have a motion and a second to approve? 01:33:47
Mike. 01:33:55
3. 01:33:56
I have one question on item 6:00 and 7:00. Should I go ahead and pull them? 01:33:58
Or can I ask the question? Six would be pulled 7 hearing. Yeah, would wait for the public hearing. Sorry about that. 01:34:02
Umm. 01:34:11
Number six, that's the bubbling springs. 01:34:12
Create clearing project. Yes, question is about. 01:34:15
Are we going to? 01:34:19
Have Can you answer the question now or can we just have it pulled? 01:34:21
Whichever council prefers it, we could do it either way. I just have one question. So. 01:34:24
Just answer the question. Yeah, it can. It can be done either way. The only reason to pull it is really if council wants to have a 01:34:29
discussion regarding, OK, that's that's fine. Thank you. 01:34:33
Umm. 01:34:37
So the question is, so we had a cleaning last year. 01:34:39
We're having one this year, I saw. I see that there we have permission to do it to. 01:34:42
For the city, the city has been granted permission to clear for five years. 01:34:49
This year it's 225 K I'm not sure what it was last year. Is the plan to do it for five years? 01:34:54
And is the cost each year similar? 01:35:01
Taking us for five years over one around $1.2 million. 01:35:05
So the answer is it's a little bit complicated and. 01:35:09
I'll do my best to answer and then if if Public Works wants to Fact Check me, they can. But it's it's the exact same question that 01:35:14
I had when we talked about it. 01:35:18
O. 01:35:23
My understanding is the cost this year is similar to the cost last year. I was hoping that each year the cost would go down, but I 01:35:24
think we've seen so far that that hasn't been the case yet is essentially. 01:35:30
And the answer I got. 01:35:35
But we're also making sure to do it completely this year because we won't be able to do it all five years. Mostly we are planning 01:35:37
to try to continue to do it. 01:35:42
But. 01:35:47
When we're doing the Bubbling Springs project. 01:35:48
We won't be able to to get in and do it during that period. 01:35:50
So I think what will end up happening is we're going to do it the first two years. So we already did it first year. This is the 01:35:55
second year and then we probably we won't be able to do it the third year because we'll be in the middle of construction. 01:36:00
But then we'll do it the 4th year and the 5th year again. 01:36:06
We hope the cost goes down, but right now we're not, we're not expecting it to go down. So potentially it would be a four year 01:36:09
project over five years. 01:36:13
At about 800 to $900,000 and I hope this doesn't turn into a discussion, but another question came up. Is this something we're 01:36:17
going to have to continue to do in the future? 01:36:21
I don't think it has an end date. You know the it's the question comes. 01:36:27
Back to well, there's, there's a couple questions there, one is. 01:36:33
Hopefully overtime as we if we continue to do it, we get a lot of the invasive species out and maybe it isn't as substantial. 01:36:37
But. 01:36:45
Once the invasive species are there, I don't know that the expectation is that we'll ever actually eradicate them, you know, so. 01:36:47
So I think my hope and was talking with Public Works was that overtime it would go down, but we haven't seen that yet at this time 01:36:54
so. 01:36:58
Thank you. 01:37:02
The the one last note, if I can add to that though is that. 01:37:04
The there was funding for this project in our drainage. 01:37:08
Fund, so it's not a general fund project, it's specifically from our drainage fund, so. 01:37:13
We're expecting to be able to do it through the drainage fund, so. 01:37:20
All right. Can we have a motion a second to approve the consent calendar? 01:37:26
Move to approve. 01:37:30
2nd. 01:37:31
Madam Clerk, can you please take a vote? 01:37:33
All in favor, aye. 01:37:35
All opposed. 01:37:37
Hearing none motion passes unanimously. 01:37:38
All right. So we're moving on to public hearing. 01:37:42
Public Hearings Item number seven adopt A resolution granting special use permit #21-23 for the tree factory State of the dead 01:37:44
celebration. 01:37:48
With ancillary. 01:37:53
Food trucks, vendors and live entertainment. 01:37:55
Madam Clerk, do we have proof of publication as required by law? 01:37:59
Yes, Mr. Mayor. 01:38:03
Will staff please present the report? 01:38:05
Air Pro Tam. 01:38:16
General public. 01:38:18
All right, before you tonight is the Tree Factory Day of the Dead celebration. This is Special Use Permit 2123. 01:38:31
O The request, UM is to hold a public event known as the Tree Factory Day of the Dead Celebration. This event will be featuring an 01:38:42
art contest, food vendors, Day of the Dead displays, and live entertainment. 01:38:48
The event will happen on November 2nd, 2023 from 3:00 PM to 8:00 PM. 01:38:55
6275 visitors and it is open to the public. 01:39:00
The live entertainment lineup includes Mariachi as the. 01:39:10
Down. 01:39:15
And the live entertainment is scheduled to only happen between 6:00 PM to 7:30 PM. 01:39:15
A little bit about the proposed event site plan area. 01:39:25
As you can see on here, most of the event will be taking place on the northern part of this parking lot. 01:39:29
There will be 3 canopies, each of which will have different display areas. 01:39:35
One will feature the food vendors and other will feature the chairs for guests to view and then the other one will feature the 01:39:40
event itself. 01:39:45
Featuring the live entertainment and other altars and pictures next to it. 01:39:50
As part of the event Umm. As can be seen here, Umm Channel Islands Blvd. Is down on the South and. 01:39:58
There is the 2 buildings there. General parking will generally happen within the South and northern West side of the. 01:40:06
Shopping center. 01:40:15
With the main event happening on the northeastern quadrant. 01:40:16
Why this item came to council was because the special use permit will have outdoor entertainment and there is proximity to 01:40:22
residential uses to the north. 01:40:27
And this project is considered to be exempt under Sequa as the project use is existing. 01:40:32
And it is minor. It is a minor temporary use of the land. 01:40:37
The conditions of a of approval ensure that the environment is protected. 01:40:41
Fiscal impact. There will be no direct impact to the city's general fund. 01:40:48
It is anticipated sales tax revenue will be created by the food retail vendors and additional sales from the Tree Factory cannabis 01:40:53
dispensary during the events. 01:40:57
Strategic planning consistency. This has 21 optimal levels of service for residents and businesses. 01:41:04
This will support and establish programs and events that create a strong sense of community, pride and a connection to our history 01:41:11
and heritage. 01:41:14
And. 01:41:19
Innovate and opportunity Retain and maximize opportunities for local businesses as the backbone of our community. 01:41:20
The recommendation is to adopt resolution on conditionally approving special use permit 21-23. 01:41:29
And find the project categorically exempt from Sequa. 01:41:36
Staff is available for questions and the applicant will be resenting their own presentation of the event. 01:41:41
Questions. 01:41:54
Um. 01:41:57
The public hearing is now open for public input at. 01:41:59
7:10 PM. 01:42:03
Are there any public comments regarding this item? 01:42:06
No public comments. 01:42:11
OK, so before we close it, should we do the? 01:42:13
The presentation. 01:42:16
Yeah. 01:42:18
OK. 01:42:19
So. 01:42:20
Miss. 01:42:21
Maria Valdez and Tree Factory you may. 01:42:22
Present. 01:42:26
Good evening, honourable Mayor. 01:42:44
Mayor Pro Tem, City Council. 01:42:47
We appreciate the opportunity to come before you to discuss the proposed the other Los Muertos event. 01:42:48
Tree factory is a local. 01:42:55
Dispensary here in Portway Nimi. 01:42:56
We are a family business. 01:43:00
Raised here on B Street. 01:43:02
Our. 01:43:04
Parents. 01:43:05
Migrated from Mexico in the 70s. 01:43:06
And have been residents of Port Wanami ever since. 01:43:09
And to us, the city of Port Winnie is our home. 01:43:13
We are from the community. 01:43:19
And for the good of the community, you'll find us at almost every event giving back. 01:43:21
These are just a few of the photos that we've participated in. 01:43:25
And one of the most memorable is when Tree Factory founder David Garcia received a phone call that the Little League. 01:43:29
Um. 01:43:35
Field was in desperate need of maintenance and so David rallied the troops because within a few hours there was going to be a 01:43:38
Little League team. 01:43:41
Her. 01:43:46
Performing there. 01:43:47
And so we were out in the fields, we were preparing the fields and the smiles from the families and the players was so heartfelt 01:43:49
and appreciative. 01:43:52
And it really does take a village and we are honored to be included in this village. 01:43:57
What is the other Los Muertos? 01:44:03
It's a tradition that started with the Aztecs over 3000 years ago. 01:44:07
It is celebrated in different countries. 01:44:11
It's not. 01:44:15
Mexican Halloween. 01:44:16
It is a sacred event, passed down generation to generation, that our family celebrates. 01:44:18
And this is a family driven event. 01:44:24
Where Tree Factory invites the community. 01:44:27
To celebrate those no longer with us. 01:44:29
The community participates in bringing pictures of their loved ones. 01:44:32
For our ultra. 01:44:35
To commemorate. 01:44:37
This is a video of what we've done in the past. 01:44:43
It started very small, very small during COVID, so it was very small. 01:44:46
You just have to. 01:44:50
So. 01:45:35
What we will we will be offering is. 01:45:37
We will be having free food for the. 01:45:40 01:45:43
We will have folkloric dancers. We're going to have a mariachi. 01:45:44
We always do a moment of honoring. 01:45:48
Umm. 01:45:50
The community brings pictures. 01:45:51
And we put them on a list and we just commemorate. 01:45:53
And then we will also have Aztec dancers that. 01:45:57
Will basically explain what the. 01:45:59
What Day of the Dead signifies during their dances. 01:46:02
The chair of the charity benefiting from this event is a Southern California Stars. 01:46:09
This is a local youth basketball club. 01:46:13
That doesn't turn anyone away, regardless of finances. 01:46:16
Many of these participants are students from EO Green Barred and Whitney High School. 01:46:19
The focus is on skill building, leadership, but most importantly their future. 01:46:24
When participating at tournaments, you'll see them touring universities, showing these youth that they deserve every opportunity. 01:46:30
We're proud to support their mission, create change and empower our local youth. 01:46:37
Thank you again for your time. 01:46:45
We appreciate your time and consideration. 01:46:47
And hope that you approve our community event. 01:46:50
This is an event that I would like to continue to have every single year. 01:46:52
So if I can get some sort of approval where? 01:46:57
Maybe I don't have to come every single year, I would appreciate it, but if not, I completely understand. 01:47:00
So again, thank you for your time. 01:47:06
Thank you, Maria. 01:47:09
This council have any questions for the applicants? 01:47:12
Just want to congratulate you on a beautiful video that was really nice. 01:47:16
Any questions? 01:47:23
No. 01:47:25
OK. I think that seems easy enough. So I guess we don't have any questions for you tonight. 01:47:27
I'm gonna go. Excuse me. 01:47:33
I'm going to close the public input unless we have any public comments. 01:47:35
And then? 01:47:40
Think we'll get going, so, OK, so public input hasn't concluded. I will now close the public hearing. The time is. 01:47:42
716 PM. 01:47:48
We have before us a recommendation adopt A resolution deeming a temporary event exempt from the California Environmental Quality 01:47:51
Act and conditionally approving special use permit. 01:47:56
#21-23. 01:48:02
Tree Factories Day of the Dead Celebration event located at. 01:48:04
437 and 453 W Channel Islands Blvd. And take such. 01:48:08
Additional related action that may be desirable. 01:48:13
You know what, I do have a question. 01:48:16
How many for how many years would you want this permit? 01:48:19
For three or five? 01:48:24
Three or five? 01:48:25
And then a question for staff is, is that something that we can do? 01:48:26
O. 01:48:31
I'll let Tony respond to. 01:48:33
Technically, whether we can do it or not, I was actually going to make the point, but I was going to do it right after the item 01:48:35
that. 01:48:38
In the next. 01:48:41
Item which is cannabis. 01:48:42
Program discussion. 01:48:45
We were going to, there's actually a recommendation included in that item. 01:48:46
That. 01:48:50
We get direction to look at how to make some of these things easier and and simpler. 01:48:51
So we are actually looking and are planning to recommend. 01:48:57
Making some changes to make. 01:49:02
Make it work. 01:49:04
Better and easier in the future, so that's something on our list. 01:49:05
But as to whether or not we can change that at this time in this permit, I think I know the answer, but I'm going to ask Tony to. 01:49:08
To confirm, so this this particular. 01:49:14
Application would be for this year only, but like we've done for say Wheelhouse and whatnot, we do approve multi year. 01:49:18
Events, so assuming that things don't change for the you know to make things simpler. 01:49:25
But assuming that we don't get any complaints on this particular event. 01:49:32
The next time around we could definitely make it a say A5 year approval so that. 01:49:36
Our folks here do not have to keep coming back to us each and every year. Is that also what we do with the Copacabana? 01:49:41
Yes, we've done that with the Copacabana. We've done that with our own the, the event that we just had with the the touch of truck 01:49:48
for instance. 01:49:52
Even the Winema Beach Festival, we've we've done multi year once we get the first one or two through the process successfully. 01:49:57
Then we can go ahead and encourage a multi year. 01:50:05
Approvals for subsequent events. 01:50:08
Are there any other questions? 01:50:13
On item number 2 takes such additional related action that may be desirable. Can you be can you give me some input on what other 01:50:17
action we can take? 01:50:21
It would really just be up to whatever you folks came up with. 01:50:28
It's kind of an open-ended question. 01:50:32
At just based on, you know for instance if we did get a lot of a lot of public comments or whatnot that. 01:50:34
Would move things in a different direction, but in this case it seems like. 01:50:40
Going with staff recommendation for the approval would be the the the way to go with this particular item. 01:50:44
OK. 01:50:51
Sounds good. 01:50:51
No further questions. 01:50:53
OK, may I have a motion in a second? 01:50:56
Move to approve. 01:50:58
2nd. 01:51:00
OK. 01:51:02
So no fighting. 01:51:02
Never so. 01:51:05
Any discussion needed? 01:51:07
I just I just have wanted to make a comment. 01:51:09
Thank you for all you do for our local nonprofits and The Little League. We really appreciate the service that you deliver to our 01:51:12
community, and I wish you the best of luck so we can see you next year and maybe don't have to. 01:51:18
Have you back in subsequent years? So thank you very much. Well, hopefully we'll see you at our event before the next time we have 01:51:25
a comment. I was happy to hear and I did not know that this is a family run event and they live in the community. So that was 01:51:30
really nice to hear. So thank you. 01:51:35
Madam Clerk, can we please take A roll call? 01:51:48
I mean roll call vote. 01:51:50
Mayor, I'll let you say who did the 2nd. 01:51:52
Umm. 01:51:56
Instagram this OK. 01:51:58
Council member McQueen, Lesean. 01:52:00
Council Member Hernandez yes, Council Member Gamma, Mayor Pro Tem Perez, yes, and Mayor Martinez yes. Motion passes unanimously. 01:52:03
We will now move on to item number 8. 01:52:14
Annual development agreement compliance review and finding of exemption from Sequa. 01:52:16
Madam Clerk, do we have proof of publication as required by law and a complete file of reports and exhibits? Yes, Mr. Mayor. 01:52:22
Or staff, please present the report. 01:52:29
Yes, thank you and. 01:52:31
Before. 01:52:33
Our community development director, Mr. Stewart, gets. 01:52:35
Started on the item. I just spoke to this, but we did want to just note in our introduction there is a. 01:52:40
This item is a review of of development agreements and a compliance review. 01:52:47
But we did add a recommendation. Recommendation 8. 01:52:51
Which? Says direct staff to return it at upcoming meeting with additional recommendations for potential revisions to the city 01:52:55
cannabis program. 01:52:58
And I just wanted to highlight that up front because I think we've heard it just in the last item, we may hear it in other. 01:53:03
Items related to the the the development agreements. 01:53:09
Just that. 01:53:12
The cannabis program and the environment and the the way cities around us are handling it is changing. 01:53:13
And so we are realizing and we are trying to be proactive that. 01:53:21
We need to. 01:53:26
Be aware of that and kind of look for opportunities to sort of change and be proactive in that way and so. 01:53:28
I'm going to. 01:53:37
Let Tony lead the. 01:53:39
Agreement, development, agreement, compliance review. But I just wanted to make that point and then it also spoke to the comment 01:53:41
made earlier about. 01:53:44
You know some of the. 01:53:48
Cannabis businesses that we've talked to have talked about things, you know, that could be streamlined or easier and we are going 01:53:50
to look at that. We do recommend that we start. 01:53:54
I'm thinking about that so. 01:53:59
But with that today, the bulk of the item is reviewing the development agreements for compliance. 01:54:01
And I'm going to hand it over to to Tony to walk us through that. 01:54:07
Thank you, James, and again, good evening, everyone. 01:54:12
I apologize in advance this, as you probably know, as you recall from other presentations, is. 01:54:15
Fairly dry, but it is a annual requirement for all of our businesses. 01:54:21
That have been in business for at least a year. 01:54:28
So this time around, we are looking at 7 businesses back Earlier this year, we looked at seven other businesses. 01:54:30
But before I get into them, just as a reminder for the public, back in 2016 the City Council opted to allow cannabis businesses. 01:54:39
To operate in the city as a source of revenue for a general fund. 01:54:47
Since we do not have a cannabis tax here in the city, we use the development agreement. 01:54:52
As the mechanism to ensure that the cannabis businesses pay their required obligated payment towards our general fund. 01:54:57
And the development agreements also include remedies should the applicant default. So I won't get into all of that. 01:55:04
Right now, but it is in the staff report. 01:55:11
And also mention this staff report. There are some things that the developers agree to, such as to pay that contractual payment. 01:55:16
Most of the time it's 5% of their annual gross revenues, less taxes paid to the state. 01:55:22
To maintain all books and records and pay for up to two audits. 01:55:30
Per year and to obtain their certificate of occupancy, in other words, open their business within one year of the agreement 01:55:33
becoming effective. 01:55:37
In exchange for these provisions, the City agrees that at the time that the agreements are approved of, the development rights in 01:55:41
place will be vested. 01:55:45
And more specifically, what these development agreements require the applicants or the developers as we call them to do for us is 01:55:51
that they complete, as I mentioned, the development and open their business with one year. 01:55:57
Of the development agreement taking effect. 01:56:04
They provide a long term source of employment opportunities. 01:56:07
They provide the city directly with additional revenue in the form of an increase in certain taxes, mainly sales taxes, from the 01:56:10
products they sell. 01:56:14
They also provide that contractual payment towards the city's general fund. 01:56:18
And they provide certain community benefits, for instance the ones that you just heard about from a tree factory. 01:56:22
So this evening, the seven businesses that we're looking at are Blue Diamond LLC, which is a delivery only business. 01:56:30
Front door enterprises or Eco meds, Also a delivery only business. 01:56:38
PH Investment Group LLC AKA Element 7 and they are dispensary. 01:56:42
Freedom First Associates Association, also known as Skunk, masters a dispensary with a lounge. But we'll only be discussing the 01:56:48
dispensary today that because the lounge is just open for business, so next time around we'll we'll look at that as well. 01:56:55
Innovative Concepts Investment Group, LLC, AKA iheart Cannabis. 01:57:03
PH Organic Team Incorporated and Tradecraft Farms. 01:57:08
I'm not gonna go into the 1st 4 Blue diamond, Eco Meds, element 7 or Skunk Masters any further to save time and also because they 01:57:11
are all in compliance. 01:57:16
However, as you can see, iheart, cannabis and tradecraft farms are in partial compliance, so we do need to discuss where they're 01:57:22
not in compliance. 01:57:26
And pH Organic Team Incorporated is not in compliance with their development agreement at this time. 01:57:31
So real quick, these are just the locations of the four that are in compliance. 01:57:38
And they're moving on to the businesses that are impartial or out of compliance. So the first. 01:57:45
Just going alphabetically, is iheart, Cannabis or ICIG? 01:57:50
And the reason why they're not in compliance is because they have not paid their 5% towards the cities general fund for the months 01:57:54
of May through August of this year. 01:57:59
In addition, previous payments were also not made regularly. 01:58:04
So the Terminal condition #12 other development agreement requires this payment to be made on a monthly basis. 01:58:08
And just a reminder, the primary purpose for allowing the operation of cannabis businesses is they are a source of revenue for the 01:58:16
general fund. 01:58:20
And if we're not getting those payments, then it has a negative impact on our finances and our ability to provide the services to 01:58:24
include the health and safety of our public. 01:58:28
So as I mentioned, the development agreement does have a potential remedies. Item number 22 or condition #22 in the development 01:58:35
agreement states that a developer is in default. 01:58:40
If they happen to. 01:58:46
Be or have one of the following events or conditions occur. In this case, it's the finding and determination by the City Council 01:58:49
made following a periodic review such as tonight's. 01:58:53
Under the procedures provided in the agreement that, upon the basis of substantial evidence, the developer has not complied in 01:58:59
good faith with the material requirement of this development agreement. 01:59:04
So with that, consequently, the Council has a few few options here as far as what they want to do about this. 01:59:12
First would be to demand full payment from the developer by a certain date, say by the end of the month. 01:59:20
They could allow a one time payment plan with fixed terms and conditions. The payment plan would be based on the unaudited gross 01:59:26
receipts. 01:59:29
We are in the process of conducting audits of all of our businesses, so if the audits do. 01:59:33
Determined that additional funds are due to the city. Those would be made outside of this payment plan. 01:59:39
And the reason why I mentioned is payment plan because as you may recall when we had the last review, we had one of our. 01:59:46
A dispensaries who was out of compliance as well and so the council allowed them to do a payment plan. So. 01:59:52
To be consistent, we're offering that alternative here again this this time around. 01:59:59
But three, if you would so choose, you could revoke the development agreement subject to the procedure set forth in the agreement 02:00:04
and our adopted requirements and procedures. 02:00:09
Or for again, kind of like what you were asking about whether the last one mayor, if you want to take another action, what we put 02:00:15
that out there for you as well? 02:00:19
Staff is recommending, however option number 2 with payment will due by the end of this year. 02:00:24
So that would be the first business that we have. 02:00:30
That we need to bring in to compliance. 02:00:34
The second one is pH organic team. Now as you recall, this business is not in compliance. 02:00:37
They were approved back in 2019 to operate a micro business consisting of a retail, dispensary, cultivation and distribution 02:00:42
operations. 02:00:46
And the location is 475 W Channel Islands Blvd. which is where the Mandarin Chinese restaurant is, for instance, just to the 02:00:51
immediate east of the Hardy Mall building. 02:00:55
The developer did submit plans into Plan Check in June 2020, which is within one year of the development agreement taking effect. 02:01:01
However they. 02:01:05
Been playing check ever since. 02:01:10
A lot of that has to do with the fact that. 02:01:12
They are working with Edison regarding upgrading the electric feed for the building. It's an old building, was developed back in 02:01:15
the early 1970s. 02:01:19
Cultivation takes a lot of electricity. 02:01:23
As they are finding out. And so they are still working more on Edison's schedule than their own. 02:01:26
However, due to a lack of business operations, they have not been a source of employment opportunities or tax revenue. 02:01:34
Or nor have they made payments to the general fund, and they have not made, obviously, any charitable contributions as well. 02:01:41
So we did meet with the applicant or the developer, I should say, and they did propose a timeline. They're assuming that Edison 02:01:51
are hoping that Edison will approve their power upgrades early next year. 02:01:58
Which will allow them to then to commence construction on that. 02:02:06
So they're also hoping to get the build out of at least the dispensary done by March of next year. 02:02:09
And by next fall have the rest of the build out completed. 02:02:15
However, again, just for the record, as we mentioned before, we've got the terms of the development agreement and in this case, 02:02:23
the term #7 is the deadline for project completion. 02:02:27
Even though they're in plan check, they are not completed within one year of approval obviously. 02:02:33
And then of course, we have default and Remedy #22. Again, I won't read all of this, but basically again, it's the finding that 02:02:40
they're not in compliance. 02:02:44
Or made a good faith. 02:02:49
Of material requirement of the development agreement and they've also not made their their payment, so to speak, with what all 02:02:51
that next paragraph talks about. 02:02:55
And so again the City Council may ought to, may opt to to do the finally the following. 02:03:02
They may revise the terms of the development agreement. 02:03:08
Basically that would extend it out from. 02:03:11
2020 out to October 2024. 02:03:15
And this is per the timeline proposed by the developer. 02:03:19
You could again revoke their development agreement, or you could take another action as. 02:03:23
May be desirable. 02:03:29
Because of the delays from SEC schedule that they're out at the developers control, we are recommending. 02:03:31
One more try here and that they be able to develop the project out by October of 2024. 02:03:38
And then our final business to discuss this evening is tradecraft Farms or trade Craft Farms port winning the LLC. 02:03:47
They are also a micro business or were approved as a micro business consisting of a retail dispensary, cultivation and 02:03:54
distribution again. 02:03:58
They're located at 2597 Bulker Drive. 02:04:03
And they have been in business as a dispensary and a small portion of their cultivation component have been operational, but the 02:04:07
rest of the cultivation component has not been built out. 02:04:12
And the the the distribution operations have not commenced at this point. 02:04:18
So. 02:04:24
They have not completed build out within one year of their approved development agreement, which was back in 2019. 02:04:26
And because of that lack of build out there are. 02:04:33
There is the potential for additional employment opportunities that have not been realized. 02:04:36
There's also the potential for additional monthly contributions as well as sales contributions, sales tax contributions. 02:04:42
That also have not been realized. 02:04:50
And while the developer has a robust um. 02:04:52
History of charitable contributions. Again, not knowing what the full potential of the revenues from the business is, there could 02:04:57
be an additional. 02:05:01
Ability for more charitable contributions as well if build out was realized. 02:05:07
And so again per the terms of of the development agreement, again I. 02:05:15
Apologize for this being dry, but we do have again. 02:05:20
Terms and Condition #7, which was the deadline for project completion not occurring within, not completely occurring within one 02:05:23
year. 02:05:26
Of the development agreement taking effect. 02:05:30
And so again our item number 22. 02:05:34
Again, is the finding that they have not complied in good faith with the material requirement of the development agreement. 02:05:38
And again, the 2nd paragraph alludes to not making the full contributions to our general fund. 02:05:44
Now staff has met with the developer several times with regard to all of this and finding out when build out would finally be 02:05:52
realized. 02:05:56
And during those discussions, one of the things the developer mentioned was that they would like to see the the cultivation 02:06:02
operations. 02:06:06
Payment toward the general fund be reduced from 5% to 1 or 2%. 02:06:12
And so based on these discussions and knowing that we needed to to move forward with this to get this here to you this evening. 02:06:17
We asked that the applicant provide the following, which was first a detailed plan. 02:06:25
For build out assuming that the 5% cultivation. 02:06:32
Payment stayed in effect. 02:06:37
But as option B to that we build out with the cultivations operations being reduced to 2%. 02:06:40
With the assumption that there might be a difference in the time timeline for build out. 02:06:49
And then we also asked for backup data to support the need to reduce the contribution requirement for cultivation. 02:06:54
And again, that kind of goes ties in with what Mr. Vega was saying earlier. 02:07:02
The applicant, based on this, submitted a letter which reiterated their desire to have the cultivation contribution reduced. 02:07:07
And indicated that if it was, they could complete build out by the end of summer of 2024. 02:07:17
So that would have been in response to item B, so to speak. 02:07:24
However, their letter also stated that at the contribution did not occur or the reduction did not occur, then they would be quote 02:07:28
UN quote. 02:07:32
Simply have no incentive to build out any further cultivation in the city of Port Wanami because financial solvency is logically 02:07:37
and mathematically impossible. 02:07:41
In quote and this statement was made rather than providing A detailed plan as we had asked for. 02:07:46
And it indicates basically a refusal to comply with the terms of the development agreement unless the revenue contribution is 02:07:52
reduced. 02:07:56
I also want to note that there was no financial data such as the performa or anything else to support. 02:08:01
Whether or not they could not. 02:08:09
Build out with anything. 02:08:13
Greater than the 2% payment for the cultivation. 02:08:15
Also the plans that they showed were a little incomplete in that, especially in sheet 2A2 which is in your packet. 02:08:19
Portions of the floor plan weren't specified whether they be built out as far as phase one, phase two or at all. So we had a 02:08:26
question about that. 02:08:31
So with all that, consequently you may again opt to and we've got quite a few options here. 02:08:37
The first is 1A, which is revised the terms of the development agreement to accommodate the new timeline again out to October 02:08:43
2024. 02:08:47
A1B would also be to along with the development agreement being amended, it would be to demand full payment of their. 02:08:52
Called. I forgot to mention that they have not paid any of the cultivation even for the contributions, even though they have been 02:09:02
in business with at least partial. 02:09:06
Operations. And so we recommend that you either demand full payment of that no later than October 31st. 02:09:12
Or 1C would again to be more consistent with the other. 02:09:19
Businesses that we've looked at for non payment which is to provide a one time payment plan again with the fixed terms and 02:09:26
conditions based upon an audit. 02:09:30
Um, and. 02:09:34
And that would be, again, if the audit shows that there are additional monies owed, those would be due to the city outside of the 02:09:38
payment plan. 02:09:42
Your second option #2 would be to revoke the development agreement or three take another action as may be desirable. 02:09:47
All those staff is concerned about that statement that they wouldn't build out if they didn't have the reduction in the 02:09:55
cultivation contribution. 02:09:59
Because the business has well, because the developer has been in business with the dispensary. 02:10:04
As well as part of their cultivation operations and have been paying. 02:10:09
Some monies towards our general fund, as well as providing again a fairly healthy amount of charitable contributions. 02:10:14
We recommend option one, which is extending the development agreement out to October of next year, as well as require a payment 02:10:22
plan. 02:10:26
And so with all of that, I won't read this because James just mentioned it earlier. But this again is the side note about we will 02:10:33
be coming back to you hopefully at the second meeting November 1st in December. 02:10:39
With some items to discuss making our. 02:10:46
Business is a little bit more attractive in our growing cannabis. 02:10:49
Regional cannabis market here. 02:10:55
The project is exempt from Sequa, which states that Class 9 consists of activities limited entirely to inspections to check for 02:10:58
performance of an operation. 02:11:03
Or quality, health and safety of a project. 02:11:08
With regard to fiscal impact, we do have a review fee now that is collected for all of these reviews. So it pays for time staff's 02:11:13
time on this because it is a fairly substantial amount of work they have to put together here. 02:11:19
However, as I mentioned, because we do have two. 02:11:26
Businesses that are partially in compliance because they have not made their full contributions to our general fund and we have 02:11:29
one that's not built out at all and therefore not making. 02:11:34
Any contribution? 02:11:39
We do have that negative impact on our general fund right now. 02:11:40
And so with that, Mayor, did you want me to read this or did you want to read this? 02:11:47
If you if you give me the option, I'm going to make you read it so. 02:11:52
All right. But if you if you want, I I can read it that's OK. I'll I'll read it if you want. I just I I know it's a long one. 02:11:56
But in fact I'm gonna read this one because I don't have #8 on there but. 02:12:04
The IT is recommended the City Council. 02:12:09
Opened the public hearing and take testimonial and documentary evidence to close the public hearing and consider that evidence. 02:12:11
Three adopt resolutions determining that the following dispensaries are in compliance with their respective development 02:12:19
agreements, and those, again, would be Blue Diamond LLC's Freedom First Association. 02:12:24
Front Door Front Door Enterprises, LLC and pH Investments Group, LLC. 02:12:30
And for adopt resolutions determining that the following cannabis businesses are impartial compliance with the development 02:12:35
agreements, that is Innovative Concepts Investment Group, LLC. 02:12:40
And Tradecraft Farms Dash Portland, Nemia, LLC. 02:12:45
And five, adopt A resolution determining that the following cannabis business is out of compliance with their respective 02:12:48
development agreement. 02:12:51
And that would be Portland Winema Organic Team Incorporated. 02:12:54
And six make determination that the project is exempt from Sequa. 02:12:58
And takes such additional related action that may be desirable. 02:13:02
That's including the which course of action to take regarding the three businesses who are out of compliance with their respective 02:13:06
development agreements. 02:13:09
As per the options noted in the staff report. 02:13:13
And eight direct staff to return back to the City Council at an upcoming meeting with additional recommendations. 02:13:16
Four potential revisions to the City Canvas program. And with that that concludes my presentation and I'm happy to answer any 02:13:24
questions. 02:13:28
I do believe that the team from Tradecraft is here if you've got questions for them. 02:13:31
And we may have additional applicants as well from the other two businesses. 02:13:36
OK. 02:13:40
Thank you, Mr. Stewart, for the presentation. Does Council have any questions for staff at this moment? 02:13:41
I'm just curious as to why it takes so long. 02:13:51
To get the power upgrade with SCE. 02:13:55
And it seems like with. 02:13:58
The cultivation operations that we haven't had. 02:14:01
Much success. 02:14:04
Other than tradecraft, so. 02:14:06
I I saw this long presentation that. 02:14:08
I'm not sure if it's tradecraft or another one that is waiting for a power upgrade. 02:14:10
From FCE it's going to happen in March of 2024 it just. 02:14:15
Mike. 02:14:20
How can we? 02:14:21
Help to make things I know we can't. 02:14:22
Do electrical work obviously, but is there anything that we could do to to help? 02:14:25
Help move these businesses forward. 02:14:30
Additional. 02:14:32
We have tried to prod SCE as well but they do work on their. 02:14:33
Own. 02:14:39
Very. 02:14:40
Frustratingly slow time frame. It's not just this, it's all kinds of developments. 02:14:41
We give our applicants if they do need to do something with SCE. 02:14:46
Months of and sometimes in case, years of heads up. SCE is very, very slow there excuses that they're understaffed. I mean, it 02:14:50
seems to be the constant. 02:14:55
And this has been happening again for years. It's not just our cultivators. I've experienced this in other cities I've worked for 02:15:01
as well. 02:15:04
It's just unfortunately a fact of life with SCE that you wait on them. 02:15:08
So I imagine it must be frustrating for you as well. 02:15:14
And if I could just add, we just installed the sidewalk at Scott St. and we. 02:15:19
Were held up by SCE and our, you know, we ended up sort of working around SCE. 02:15:26
So that's partially why you know when Tony and I were reviewing these. 02:15:32
Umm. 02:15:36
We understand that because we've been there, we've been there on our own projects and that's why, you know, we took the approach 02:15:38
of saying we recommend giving a, you know, set extension to allow for that SCE work to occur. 02:15:44
Thank you, Mr. Stewart for your presentation. I also had a question regarding electricity. Is, is this location in a shared? 02:15:56
Space is in a building, right? It's the Harvey Model building. 02:16:04
Or one next door to it. So it's the two, the long two-story building next door to it and yes it is, it's a multi tenant building, 02:16:08
OK. 02:16:12
So. 02:16:16
There is other cannabis businesses in that building, are they not? 02:16:17
Not in that one. This would be the only cannabis business. They would be taking up several suites. 02:16:20
Two on the bottom floor. One would be the for the dispensary and distribution operations, the other would be for just their 02:16:27
offices. 02:16:30
And the entire 2nd floor would be remodeled for the cannabis operation. 02:16:34
So the. 02:16:40
Tenants downstairs don't have the same electrical needs that they would upstairs because they're not cannabis businesses. 02:16:41
And specifically, not cultivation, not cultivate. OK. 02:16:49
Thanks. 02:16:53
And then I had a question about tradecraft. 02:16:53
Is there any? 02:16:57
Reason and and I guess this is their business. I'm not trying to tell them how to do their business, but if they believe that. 02:16:59
It's not economically feasible to have a cultivation operation or that it's not supported with a 2% tax. 02:17:06
Um, on their revenue. Why do it? 02:17:16
Is it possible that they could change their business model and not do the cultivation? 02:17:19
Or the micro business operation? 02:17:25
So that they could be. 02:17:28
More successful at just. 02:17:30
Their sales that they're doing right now. 02:17:34
So yes and no, yes. 02:17:36
They could come back for amount, basically go through the process again through you with modification for the new plan. 02:17:40
The no part is that the DCC, the state Department of Cannabis. 02:17:47
Requires that you either have a standalone. 02:17:54
One component business they a dispensary or you have a micro business with at least three and for some reason they don't allow A2 02:17:58
part business. 02:18:02
So. 02:18:07
Basically if. 02:18:09
Tradecraft wanted to lose the the cultivation altogether. Or they can come back and just ask to. 02:18:11
Amend all of their approvals for a dispensary. 02:18:18
Um. Or they would need to? 02:18:22
Continue to move forward with their micro business. 02:18:25
That all said. 02:18:30
One of the things that we're going to be looking at again because we've had a request from one of our other folks that wants to 02:18:32
have. 02:18:36
Standing alone. 02:18:41
Dispensary and standalone distribution so they can. 02:18:43
Basically distribute their. 02:18:47
Their product that they make elsewhere to their dispensary. 02:18:50
So that's something that we're considering allowing. 02:18:54
Because right now the only reason, the only way we can allow distribution in the commercial zone, which is where all of these 02:18:58
businesses are. 02:19:01
Is as a ancillary used to the main commercial as. 02:19:05
I don't think anybody was here back in 2016 or 2017 when we. 02:19:10
Came up with this plan with the idea was that we wanted to when we came up with our ordinance. 02:19:13
It was not actually within the zoning ordinance because otherwise if we had changed it, we would have had to go through a Coastal 02:19:18
Commission. 02:19:21
At the time we were trying to. 02:19:24
Move things forward. So distribution could only be ancillary based on our existing land use tables. 02:19:27
But. 02:19:33
Spoiler alert. We've got several code amendments for various things, mainly housing, that are going to be coming to you within the 02:19:34
next few months. 02:19:37
They'll all have to go to a Coastal Commission, so we might as back any changes to our. 02:19:41
To our land use tables on that as well, so now is a good time to start looking at that so. 02:19:46
That Long story short, that could be an option where they have basically two separate businesses. 02:19:52
Two separate licenses. 02:19:58
For instance. 02:20:00
Just one more question for those businesses that are in partial compliance or not in compliance. 02:20:01
Is it your experience or staff experience that these? 02:20:08
Businesses are working in good faith that they really are trying to comply with the development agreements. 02:20:13
We have to decide, you know, how lenient we're going to be. So are they really willing to work with us? 02:20:21
Are they aggressively pursuing? 02:20:27
The. 02:20:29
So I would say that, you know, for instance, again we've got the SEC problem which is kind of stalled that project altogether. So 02:20:31
and I do know that they've been working with SCE for a long time now. I do get the emails and whatnot so. 02:20:37
I do see the back and forth there. 02:20:45
I know that iheart cannabis, he has made an attempt. I got an e-mail from him Friday actually he said that he. 02:20:47
Found some funding, so hopefully we will see him come into compliance very soon. 02:20:55
And hopefully stay there. Again, in a small business, we'd like to make sure that he stays open if possible. 02:20:59
And tradecraft again, like I said, they have been in operation. They've been doing well as a as a dispensary. 02:21:05
If if we were looking at them just as a dispensary, we could easily say that they were in full compliance. 02:21:13
It's. It's the rest of the. 02:21:18
The issues we have and like I said, there was the tone in their letter that is a concern that they are not wanting to or willing 02:21:21
to build out. 02:21:24
But assuming we can continue working with them like to do so. 02:21:29
Thank you. 02:21:35
Mr. Stewart, you said that tradecraft is here. 02:21:37
Correct. I would like to ask them why? 02:21:40
They responded in a way that they did and why they refused to provide the documentation that you requested. 02:21:44
If they can speak to that. 02:21:53
Yeah, you have to come up. 02:21:55
Should we open the hearing at this point or, yeah, open the hearing? Yes. So we'll move. 02:21:58
We will ask some more questions afterwards, but we'll open the public hearing. 02:22:04
For public input, the time is now 7:50 PM. 02:22:09
OK. 02:22:21
I don't know. 02:22:21
Is that true, Mr. 02:22:23
The council can continue, but it's good practice for council members to request permission to leave during A. 02:22:26
Public hearing. 02:22:32
Alright, we will continue proceed. 02:22:34
You're OK to talk? 02:22:37
Thank you very much. Thanks for having us, Mr. Stewart, Honourable Mayor. 02:22:39
Yeah. Thank you. 02:22:43
First of all, I want you to know that Tradecraft Farm takes this this meeting tonight very, very seriously. We understand the 02:22:44
gravity of everything that's going on. 02:22:48
And we take our responsibility and the in the city of Port winning me very seriously. 02:22:52
I will. I will. 02:22:58
Address the the comment that that you're referring to. 02:22:59
Only this incident and I think it might have been taken out of context, but I understand that it was quoted. 02:23:04
The point is. 02:23:09
Is that in 2016? 02:23:10
The cannabis business was a completely different beast. 02:23:12
It was tremendously. 02:23:16
By leaps and bounds different. 02:23:18
It has as of late. 02:23:21
Crashed and burned, death spiraled. 02:23:23
Exploded, impacted, and completely obliterated for the last 2 1/2 to three years. 02:23:25
We have struggled very, very hard to survive. 02:23:31
That's the truth. 02:23:35
At some point it is. 02:23:40
My job as the CEO and as the founder, the cofounder of the company, is to keep the ship afloat, right? 02:23:42
Because we have many many employees. 02:23:48
Umm. 02:23:51
And sometimes I have to make very tough decisions on whether. 02:23:53
We. 02:23:57
You know if, if, whether we keep that ship afloat. 02:23:59
There's there's different cities that we're in. 02:24:02
Ort Why nemi? 02:24:05
You know. 02:24:07
Cultivation is very, very difficult. 02:24:09
Because it doesn't. 02:24:11
Translate like downtown LA. 02:24:13
Which is much cheaper for this to do the business. 02:24:16
And Lancaster, where we're where we're. 02:24:20
Doing a lot of cultivation now. 02:24:23
Umm. 02:24:25
You know, I have, I have James here, yeah. 02:24:29
Yeah, so. 02:24:32
One example, thank you. James is our Chief of staff and. 02:24:34
Mr. Mayor and Mayor Pro Tem and. 02:24:38
Honourable council members, I just want to. 02:24:40
Touch base on the Edison issue. 02:24:42
You know. 02:24:44
Edison in Port Wanami is so prohibitive. 02:24:45
Cost wise. 02:24:49
In. 02:24:50
Lancaster, we have a six. 02:24:52
Sent. 02:24:54
Per kWh charge. 02:24:56
For electricity. 02:24:57
In Port Wanami, during summertime peak hours, it's $0.56. 02:24:59
If you do the math, you can understand. 02:25:04
Cultivation. 02:25:06
Is electric electric electricity? You know, it demands a lot of electricity. 02:25:08
You know you're creating a. You're basically creating. 02:25:13
A. 02:25:17
An environment. You're controlling the environment with the electricity, with the lighting. 02:25:19
And you have to have. 02:25:23
All kinds of environmental controls. 02:25:26
That create. 02:25:28
A umm. 02:25:30
Some an environment that's conducive for the plants to grow. 02:25:32
And at 5356 cents. 02:25:35
Per kWh, it it it doesn't make sense. It it doesn't it's it's not cost, it's cost prohibitive. 02:25:38
And so. 02:25:45
So it makes it extremely difficult here in Port Wanami. 02:25:46
We're doing, we are doing and of course we take this seriously and I do believe that the that the comment that was made in the 02:25:49
letter was taken out of. 02:25:53
Context. It wasn't meant as a. 02:25:57
It wasn't meant as a well, we're not gonna do it in nice and comment on that as well. Yeah. And I'm sorry, we're just kind of. 02:25:59
Now we're all rattled here, but. 02:26:04
I think the point was in, and I think our conversations with Tony was that nothing could change. You were either going to do it or 02:26:06
you're not going to do it. 02:26:09
The point is as it as. 02:26:13
In 2016, we came in big. 02:26:15
We came in large. We came in like, where can I just we're gonna you know build out 17,000 square feet. We're. 02:26:18
It has become so expensive to build cultivations. Now that's a that's an $8 million build out. 02:26:24
We just don't have $8 million right now. So if it came down to like either build it or don't. 02:26:30
I don't know what my decision would be, but I don't want to make that decision. We want to be here in Port Wanami. Well, I I 02:26:37
understand. I completely understand what you're saying. But I think. 02:26:41
And correct me if I'm wrong, you just wanted to have a reason why they're asking for the 2% you wanted. 02:26:46
To have information. 02:26:53
Why they're asking for that reduction, correct. That's correct. And and. 02:26:55
It wasn't necessarily. I misunderstood that, but I I don't believe there was a 2% offer earlier on. 02:27:00
And so that we were just saying that if we get to a point where we can reduce that cultivation tax. 02:27:06
Then I think we see a path to build out more. 02:27:11
We've already got 50 lights there we're already cultivating in Port Wanami. 02:27:15
Umm. 02:27:19
We have a plan and we offered that plan. 02:27:20
To build out distribution. 02:27:23
All the processing. 02:27:26
All of the the nursery and everything that we would need as a footprint and to supply that entire building, we can do that. 02:27:28
Almost immediately we can start and the reason that it doesn't have a detailed plan is because it's a drywall and mud. 02:27:36
You don't need anything but one page to say you put up the drywall and you put up the mud. 02:27:43
And then you're ready to go. 02:27:48
It will need a couple of, you know, air conditioning units and dehumidifiers and things like that, but nothing super complicated. 02:27:49
And if we can do that? 02:27:57
And if we can have six months to to to do that, we can do that and after that we can commit to another 50 light room. 02:27:59
Which would give us over 100 lights in Port Wanami. 02:28:07
And if we had a year to do that, we could do that. 02:28:11
But to commit to October. 02:28:14
1st for the entire 17,000, which is hundreds and hundreds of lights and millions of dollars. 02:28:16
We haven't even gone out to SE Edison and we need an upgrade and it's hundreds of thousands of dollars from them to do that. 02:28:22
It's just getting complicated and we're here for the long haul. We're not going anywhere. We have no desire to leave. 02:28:27
Did you relay that to absolutely many times emails and. 02:28:34
Yes, absolutely. 02:28:39
And I'm in. And if I didn't make it clear, I apologize. 02:28:41
I'm pretty sure it was clear though. I mean. 02:28:45
We're going off of what your letter stated. 02:28:48
Right. But there was, there was many emails over and over and over and over your your letter is the plan. 02:28:51
For our request, that is in the City Council's packet, and the recommendation is based upon what you put in your own letter. It's 02:28:58
not a recommendation that we're pulling out of the thin air. 02:29:03
So what you folks put in your letter is what the City Council just heard for a recommendation. 02:29:09
Some information I mean. 02:29:16
Obviously make better decisions for the conversation. We would love to have this conversation and move forward. We always have 02:29:18
been. We've been very open. We've been very communicative with Mr. Stewart. We we really. 02:29:23
Would I know? Paula here is our compliance officer, She wrote the letter. 02:29:28
And. 02:29:32
You know we. 02:29:34
We're here to make it work. 02:29:36
OK. Thank you Real quick, Mr. City Manager. 02:29:37
Are you? 02:29:41
Do you understand the issue and would you be able to explain it in a simpler? 02:29:41
In simpler terms. 02:29:46
I think so. I may be focusing on just one part of it and. 02:29:48
A. 02:29:53
I was thinking sort of big picture, which is what we want to do with the follow up item that we're recommending you know, where we 02:29:56
really look at kind of the. 02:30:00
Cannabis environment around us and come back with recommendations. 02:30:04
Because. 02:30:07
In a nutshell. 02:30:09
I haven't heard of very many cultivation businesses getting open yet. And I think that they're struggling to get open. I when I 02:30:11
got here and I heard Tradecraft had there was open, I was actually surprised. I go like, you know, wow there's one open in the 02:30:16
county there might. 02:30:21
Might be others now, but as an example, in Ohi we had issued 3 permits for micro businesses that could cultivate. None had been 02:30:26
open in the two years since we had issued those permits. 02:30:31
So. 02:30:36
So it is, sort of. 02:30:38
People are struggling to figure it out and I think for all the reasons mentioned, costs in the county and all of those types of 02:30:40
things. 02:30:43
But the other thing is because of that. 02:30:47
I think everybody's still trying to sort of figure out like what it's actually going to do and generate and what the appropriate 02:30:50
tax level is for these. 02:30:54
And so. 02:30:58
Obviously we would want it to be sort of a collaborative conversation and we wouldn't want it to be a hostile conversation. 02:30:59
But I think that's something that we should look at. It's something that we were planning to look at as part of this cannabis 02:31:06
review is what is the appropriate. 02:31:09
Tax rate for cultivation. 02:31:14
I think the county recently allowed it, the county of Ventura and they they set their tax rate at 4%. 02:31:16
I think Ohio was 4% or 3%. 02:31:23
So there is. 02:31:26
An element. 02:31:28
You know. 02:31:29
We would want it to be a discussion, and that's probably going to be my ask from tradecraft is let's like, you know, get together 02:31:30
to discuss this. 02:31:33
But we might look around and see that our tax rate is even though when we started we were. 02:31:37
Reasonable. We might be higher than everybody else now. 02:31:42
I don't know that yet. And I think to Tony's point, one of the things we were asking for is like show us what you're basing it on, 02:31:45
you know, this tax rate we submitted that, yeah, but so. So that's something we can look at and bring back. 02:31:50
So that for the purposes of tonight. 02:31:56
You know, the recommendation was basically. 02:31:58
To. 02:32:01
Revised the terms of the development agreement to allow the extra time for the build out. 02:32:03
And then to allow the payment plan, but I think with that second item that we were talking about. 02:32:07
We would come back and say, you know, do we need to adjust the tax rate for cultivation and I think that's something that we'll do 02:32:13
some research on and come back on. 02:32:17
Yeah, I I think. 02:32:22
I want to. I hope that our city and our council and our. 02:32:24
City manager or showing empathy? Because for me, right now I'm just like, whoa, $0.56 per kilowatt, 6%, I mean six cents. 02:32:27
That's real steep, and I don't see why you would want cultivation in Wanami when you get it for six cents in Lancaster, and then 02:32:36
there's a freeway between Lancaster and Wanami. 02:32:41
So I understand that that how frustrating it is. 02:32:48
And you know, that's. 02:32:51
And in essence, that's a big tax, right? 02:32:53
So. 02:32:57
Going back before I was on council and these things were coming and being, you know, all these. 02:32:58
I thought cultivation was going to be it because all the I called it cannabis Cowboys came right in town saying we're gonna do 02:33:04
this, we're gonna do that, we're gonna do this and and. 02:33:08
No, you're the only one. You're the only one. 02:33:13
That pulled off the cultivation. 02:33:16
All the other ones are gone. 02:33:19
So. 02:33:21
Umm. 02:33:22
I I feel for you. I think it's tough. And I and then hearing about SCE and you're gonna have to go for a power upgrade, I mean. 02:33:23
It's tough, so I I just hope that we could. 02:33:31
Take a look at those taxes. Things are changing rapidly right now. 02:33:35
And we're going to have to. 02:33:40
We're gonna have to come up with a way to help you be competitive, but. 02:33:42
I just don't see how you could be competitive with that electricity pathway and we're open for the conversation. I I really want 02:33:46
to make that very clear we we can make this a we we want to be at this conversations you have. 02:33:52
We're pros. We know what we're talking about. 02:33:58
Especially with these two here, like we we know what's going on. 02:34:00
We if we can help in any way on that, we will. We would love to be a part of that. 02:34:04
You don't wanna go anywhere. 02:34:08
Just a final comment. 02:34:10
To go towards the communication, just make sure. 02:34:11
You're communicating. 02:34:14
With our director for community development, just make sure whatever information he needs from you. 02:34:16
Just to make this process easier and so that we can make sure that your process your business. 02:34:21
Is being effective. Just make sure that you're providing him the information that he needs so that we can get you approved. 02:34:26
That would be that would be helpful for us. 02:34:33
And then just to clarify, in the meantime a an extension, can you explain the extension that's requested? Is that that is that 02:34:38
going to help? 02:34:41
The way I interpreted it and and again I think we're we're seeing it slightly through different lenses but. 02:34:49
We, we were saying that we can in the next six months we can get the district, we can get 4 rooms up, its distribution, it's the 02:34:55
the nursery, it's the drawing and the processing. So it's 4 rooms and that will service the entire building, right. So that's done 02:35:00
now. Now we can service whole building. 02:35:06
It's those grow rooms which we have like seven of which are really expensive. They're they're hundreds of thousands each one now. 02:35:12
We've already fire suppressed the whole building. 02:35:16
$100,000 we've already drywalled. We've I mean we've already framed, we've already insulated. We've already done a bunch of stuff 02:35:22
for the entire building. 02:35:25
The problem is, is that we're only approved for another room like 60 lights roughly by SCE and that that cost us $40,000 to get 02:35:30
that to get that estimate. 02:35:36
So we will have to go through the same process as the other folks over on the other the other cultivation. And we're dreading that 02:35:42
because we know it's hundreds of thousands of dollars for the upgrade. We know that it's going to take forever. It's going to be 02:35:47
like pulling teeth, but. 02:35:51
In that year's time that you offered, we can get that other room up. 02:35:55
And be operating at full capacity for our current electrical output. 02:35:59
And and that's over 100 lights in Portland, Emma. And it's substantial and and we we have been. 02:36:04
Paying into that and we. 02:36:09
I think we're only a few $1000 out of compliance if we're correct at $7000 out of compliance. We paid everything else. 02:36:12
That's my understanding. It might be wrong but. 02:36:18
I'm not positive about that, but again. 02:36:20
To the mayor's question. 02:36:23
What is your ultimate? 02:36:25
Build out. 02:36:28
Date at this point it's obviously beyond a year and you say ultimate, you mean the entire building with everything. 02:36:29
And and that is where then we have to address your question. 02:36:35
Because I don't know. 02:36:38
At 50-6 cents a kilowatt. 02:36:40
If I can build out a 17,000 square foot building. 02:36:43
It would be suicide. 02:36:47
Nobody would do that right now. 02:36:50
Now. 02:36:52
I can definitely build another room. I can do 100 lights because I can push that into my store there and I can make that work. It 02:36:53
is not a smart business move. 02:36:57
It isn't. It does not make sense financially. 02:37:02
But it makes sense emotionally and it makes sense. 02:37:05
With my, with my deal with Port Winema, absolutely. And we'll do that. We would absolutely do that. 02:37:08
What I can do is guarantee that within a year we can get that other room up and those and all of the other facilities to get the 02:37:13
rest of the. 02:37:17
You know that's that's repairing the rest of the building and hopefully something changes. Hopefully the price of cannabis goes 02:37:20
back up, hopefully taxes come down, hopefully. 02:37:25
The the wins, Yeah. The the black market finally starts to get, you know, taken care of. 02:37:30
70% of all cultivation licenses weren't renewed in California this year. 02:37:35
Did those people leave the cultivation game? 02:37:39
No. 02:37:41
They just stopped paying taxes. 02:37:42
You know, and that's not us. 02:37:44
We're we're here. 02:37:46
For the long haul, so. 02:37:48
You know, so that's to answer your question. That's the best I can answer it. If if we can keep the conversation going, I'll I'll 02:37:50
commit today, right now. 02:37:54
That will absolutely get those four rooms plus the other room of cultivation done and maximize our power output right now. 02:37:58
But I can't guarantee that we'll have the building done because. 02:38:05
We know for a fact that SCE won't we won't be upgraded by then. 02:38:08
There's no way. 02:38:12
And I and I won't promise you something that I can. 02:38:13
I'll never do that. 02:38:15
I just wanted. 02:38:18
One thing. 02:38:20
That hasn't been brought up. 02:38:21
You know, when we came into the city of Port Wanami? 02:38:23
Umm. 02:38:26
The the cost that the. The. 02:38:27
The amount that we were selling. 02:38:29
A pound of. 02:38:31
High grade. 02:38:33
Cannabis. 02:38:34
Was approximately 2425 hundred dollars 3600 but then. 02:38:35
2016 Anyway it's down, it's down below 1000 bucks. 02:38:40
It's below $1000. 02:38:45
That's how much it's decreased. 02:38:47
So when you know I get nervous, I'm not gonna lie, I get nervous when he says we can do this. And I'm counting the dollars in my 02:38:49
head going, I don't know if that's possible. 02:38:52
It's, it's, it is. We've been challenged with. 02:38:56
With a declining market for the last three years. 02:39:00
And every time that we think things are going to change or. 02:39:03
Or or or. 02:39:07
Get better. 02:39:09
You know, we get hit with another challenge. 02:39:10
And you know, it's not just the decrease in. 02:39:13
It's not just the decrease in in the, you know the amount that we make. 02:39:16
There's increased costs everywhere. 02:39:20
In this industry and you know the ancillary businesses. 02:39:24
That we deal with the 2nd that they hear the word cannabis the the price is is increased 3 times. 02:39:27
No matter what it's for. 02:39:34
Everyone, still thanks for making everybody thanks for making money. 02:39:35
And we're not. 02:39:39
And it's it's that's that's one of the big challenges that we have. 02:39:40
Any. 02:39:44
Yeah, And the last thing I'll say is I wanna keep it positive. And you mentioned Cowboys. We are the Cowboys. Like, we're here. 02:39:45
We're not going nowhere like we're here. We're gonna keep growing and cultivating in Fort Wayne. Amy. 02:39:50
We just need to have that conversation. We'll commit to the four rooms plus the extra. 02:39:55
Room of cultivation. That's the Max our our power will allow. 02:40:00
We can't. 02:40:04
Can't grow anymore than that. 02:40:05
We can do that within a year and we can keep this conversation going and we're not going anywhere. We're going to keep we've. 02:40:06
We've given hundreds of thousands to vets In part we need me. We've. 02:40:11
We paid dressed up like an elf that cops for right-handed out. 02:40:16
I think I remember the L. 02:40:22
We're not going any. 02:40:26
You'll have it. 02:40:28
Of people. 02:40:29
I just want to make one something positive I. 02:40:32
I think that neighborhood has changed since you moved in. I like what you did with the parking lot, and I've been inside your 02:40:35
facility. That cultivation portion of your building is fabulous. I love it. And I. 02:40:40
I hope that we can. 02:40:46
Work out a plan to keep you there, because I think it's been it's been actually good for the community. Thank you. And again, not 02:40:48
to knock any of the other dispensaries, but some people just moved in, didn't even change the carpet and just opened up for 02:40:52
business. 02:40:56
You can tell when you walk into our store, we're not going anywhere. 02:41:01
We we we built a flagship. We want to be here for the long haul. 02:41:04
And we want people. We made a deal. I mean, my brother, when we started this company, we were only going to build stores that we 02:41:07
take our grandma into, and that's what we built. 02:41:11
Would it be possible? I don't know if it's if it's permissible, but I'd like to see. I'd like to have a tour. 02:41:17
Of your facility. So I can see exactly what you're talking about. Yeah, is that. 02:41:24
Is that something that we can do? 02:41:27
OK. 02:41:29
If you could leave your card, I'd be happy to contact you. 02:41:30
Set that up. All right. Thank you. Thanks so while today. 02:41:33
You do it as less than a quorum so that it's not a brown act, maybe. 02:41:37
So while tonight we're not discussing, at least I don't believe we're discussing the the tax part. 02:41:44
I'm curious, Mr. Stewart, is is your is there an answer good enough for you? Is it sufficient? How do you how do you feel about 02:41:50
it? 02:41:54
I'm going to also defer to the city attorney because normally, again, the way that the development agreements are written, there 02:41:57
is a finite time frame on it now. Every one of them has been a year up till now. 02:42:03
We are recommending an extension for two of our businesses here. 02:42:09
And that's why I was asking what the ultimate build out date would be so that we had that finite timeline. 02:42:14
It's not that I'm wanting them to commit in stone, it's just unfortunately I believe our development agreements need to require 02:42:20
that. 02:42:22
I'm going to defer to our city attorney as well and maybe he can have some additional input. 02:42:26
With respect to development agreements, the Council has wide latitude under the. 02:42:34
State legislation, the statutes that authorize these are statutory development agreements. By the way, they're not, they're not 02:42:39
done. There's various different types. These ones are statutory. I believe it's government code section 3600 something. 02:42:44
The council has wide latitude to achieve the objectives of the city's cannabis policies and whatnot. 02:42:52
It's through the use of development agreements. 02:43:00
Umm. 02:43:02
As this is a public hearing, any decision rendered by Council should be based on substantial evidence. 02:43:03
Yeah, I I'm going to refrain from providing any. 02:43:12
Partisan legal analysis at the at the moment, because this matter, and I also want to clarify, have not assisted Mr. Stewart in 02:43:19
bringing this matter before Council. 02:43:23
There is case law that says that I may not be prosecutor as well as neutral, and so I have to wear two hats Here. I'm choosing to 02:43:29
use the one that I advise counsel on instead of prosecuting this matter. 02:43:35
Um. 02:43:41
That being said, what I think I would recommend is. 02:43:43
I would like to see I I would recommend that there be a proposal given. 02:43:50
I I I've heard statements that. 02:43:54
60 light buildout can be achieved in six months at a reduced. 02:43:58
Development agreement fee of 2%. I think I would like to see an offer that that be accomplished within six months and that this 02:44:04
issue be revisited. 02:44:08
With additional financial data supporting any agreement to amend that development agreement. 02:44:12
So we heard that their business plan was. 02:44:20
I'll just pick a 2500. 02:44:23
Dollar per pound. 02:44:26
And with the price now being $900 per pound, I mean, that's huge, I mean. 02:44:28
The business plan, as written in 2016, is no longer. 02:44:33
Viable. 02:44:39
O. 02:44:40
I just want us. 02:44:41
The council to recognize that fact. 02:44:43
And make a reasonable adjustments. 02:44:46
To help. 02:44:49
I I personally, after what I've just heard, I don't think. 02:44:50
It's at this point in time I don't think it's reasonable to expect them to build it all out. 02:44:55
And survive. 02:45:01
And so I understand. 02:45:03
Maybe the choice of words in that letter wasn't wasn't whatever, but I I get it. 02:45:04
And from your side of the of of it it's like. 02:45:10
Look at our business plan, it's way off the mark. I mean, because when you draw a business plan, you expect things to to stay the 02:45:13
same and obviously things don't. 02:45:16
So can we, so we we can. 02:45:21
We could adjust. 02:45:24
The agreement. 02:45:26
To what's reasonable given. 02:45:27
The situation we're in right now and adjust it to a point now, now I'm gonna need Tony to speak to this matter. They are a micro 02:45:30
business, is that correct? Correct. 02:45:35
So under the state micro business law, they are required to have three components to their business. 02:45:40
Do they currently have 3 components to their business? Are they in compliance with the state law? 02:45:46
As far as just on paper, yes. 02:45:51
OK. And and by on paper, you mean that they are actually operating 3 distinct segments of a cannabis business in compliance with 02:45:54
state law. They are operating two of the three, the cultivation and the retail dispensary, but not the distribution component? 02:46:01
So the distribution, if that's not brought up to speed, that is not a micro business under state law definitions. 02:46:09
OK. 02:46:16
Under state law. 02:46:18
What constitutes a? 02:46:20
Working distribution is that one delivery 2/3. It would just be one the minimum I guess. And and again I'm the one person who 02:46:22
shouldn't. Would you like it? Yeah, I would say that our distribution is. 02:46:29
We actually are operational whether we're actually generating. 02:46:36
Revenue distinctly from distribution is a different thing, but we do perform the functions that are unique to distributors. 02:46:40
Under the DC state cannabis regulations. 02:46:46
And the and we are in compliance with them and our licenses are renewed every year with with no issue. 02:46:50
And we can take care of that in that first build out we. 02:46:56
Generate our processing room. No problem. Now we can distribute out of port Winema. Right now we don't have a space to do that, 02:46:58
which is one of the the problems. 02:47:02
But we can handle that very quickly and that would be the first six months and then the second six months would be that that 50 02:47:06
Lightroom or 60 Lightroom. 02:47:09
So if if I'm hearing an end to advise council, if council were so inclined, it might be beneficial to solicit an offer, so to 02:47:13
speak. 02:47:18
So you would basically then. 02:47:27
Recommend that we have a that we continue this particular item. 02:47:30
It's a public hearing and it's already open. So if we continue it, we have to continue it to a date certain. 02:47:39
Wrap this up. 02:47:46
O I'm thinking um. 02:47:50
We're we're planning to bring our cannabis program revisions back in about a month, right? Not the next meeting, but the 02:47:53
following. 02:47:57
Mid November. 02:48:01
So we can continue the public. Well, a I think we can approve the other items, we can approve the others. I was just informed that 02:48:03
a representative of element 7 which. 02:48:07
OK, but we can. 02:48:13
Finished the public hearing, approved the remaining and we can continue. 02:48:16
This specific item to that second meeting in November where we'd bring cannabis revisions and we would look at. 02:48:19
What the appropriate? 02:48:26
Amounts are to to consider setting. 02:48:29
The. 02:48:32
Be amounts. 02:48:34
So that would be one way to proceed at this point and for everyone's benefit, everyone present here this standard of review for a 02:48:36
council in a land use decision and development agreement decision such as this. 02:48:42
Is substantial evidence. 02:48:49
So evidence in a record needs to be presented to justify whatever decision. 02:48:51
Council is being asked to make. 02:48:57
All right, let's, let's hear from the public. 02:49:02
I appreciate. 02:49:05
You all for being here today. Thank you. 02:49:07
Umm. 02:49:10
Ohh so we have public comment, you know Ethan Flores. 02:49:12
Good evening, Mayor. 02:49:23
Mayor Pro Tem. 02:49:24
My name is Ethan Flores. I'm the general manager of Element 7 Express Dispensary. 02:49:26
We just wanted to take a small amount of your time to introduce our shop and thank you for the opportunity to be a part of the 02:49:32
Portland, Amy community of cannabis businesses. 02:49:36
We strive to be a positive addition to the community. 02:49:40
By staying in compliance, being good neighbors. 02:49:43
And having no major security issues. 02:49:46
Our shop is locally staffed and managed. I've been a resident here most of my life. 02:49:49
We have a loyal local customer base that enjoy our grab and go concept. 02:49:55
We also love giving back to the community. We volunteer at certain events, do little beach cleanups. 02:50:01
We like to highlight local businesses by having like 420 Day but focus on the local businesses. 02:50:08
We've been around for about 18 months now and hope to continue to be a part of the. 02:50:15
Cannabis and local community here in Fort Wayne, Amy So we would like to extend an invitation to you all to come by and say hi, 02:50:19
take a tour. 02:50:22
Visit our shop. 02:50:26
That's about it. Thank you. Thank you. 02:50:27
Thank you, Ethan. 02:50:30
Do we have any more public comments? 02:50:31
That concludes public comment. 02:50:35
Alright, so. 02:50:37
I'm going to close the public hearing. 02:50:38
The time being 8. 02:50:40
19. 02:50:42
M and we have a couple recommendations. Adopt resolutions determining that the following cannabis dispensaries are in compliance 02:50:44
with their respective development agreements. 02:50:48
Blue Diamond, Freedom First Association, Front Door Enterprises. 02:50:53
H Investment Group. 02:50:58
And adopt resolutions determining. 02:51:00
That the following cannabis businesses are in partial compliance with their development agreements in Innovative Concepts 02:51:02
Investment Group, LLC and Tradecraft Farms. 02:51:06
Or when e-mail CC. 02:51:11
#3 Adopt A resolution determining that the following cannabis business is out of compliance with their respective development 02:51:14
agreement. Port Wanami Organic Team, Inc. 02:51:18
And four make a determination that. 02:51:22
The project is exempt. 02:51:26
Under Sequa and Five takes such additional related action that may be desirable, including determining which course of action to 02:51:28
take regarding the three businesses. 02:51:33
Or out of compliance with their respective development agreements, per the options noted in the staff report dated October 16th, 02:51:38
2023. 02:51:42
May I have a motion in a second? 02:51:47
We do a motion to approve all staff recommendations. Or do we have to specify each thing? 02:51:50
Ohh also if you want to address the the tradecraft. 02:51:57
I think the recommendations slightly yeah motion to approve all staff recommendations, excluding tradecraft, which would be 02:52:03
brought back for review. 02:52:08
On we have to have a date certain so I. 02:52:13
We'll get the exact date because we need the date certain to continue the public hearing November 20th. 02:52:19
So. 02:52:26
Like to make a motion to approve all staff recommendations except. 02:52:27
With regards to tradecraft and we'll come back at the November 20th to readdress. 02:52:31
2nd. 02:52:37
Alright, is there any discussion required? 02:52:39
Madam Clerk, can we please take A roll call vote? 02:52:43
Council Member Gamma. 02:52:48
Yes, Mayor Pro Tem Perez. Yes, Council Member Hernandez, yes. 02:52:51
Council member McQueen, Lesean. 02:52:56
And Mayor Martinez, yes, motion passes unanimously. 02:52:58
OK. 02:53:02
So that's it with the public hearing. 02:53:04
Hearings. 02:53:06
Mr. Stewart. 02:53:08
We don't have any business items tonight. 02:53:09
Yeah, well, we're going to recess the City Council meeting and call to order the superior. 02:53:15
The successor agency to the port when you need to Redevelopment Agency in the Housing Successor Agency Special Joint Meeting. 02:53:19
We will now resist a City Council meeting and call to order the successor agency to the port when Amy Redevelopment Agency. 02:53:30
And the housing successor agency. 02:53:37
It is now. 02:53:39
8:22 PM. 02:53:41
Madam Clerk, can you please take roll? 02:53:43
Member Gamma. 02:53:47
Here, Remember Hernandez? 02:53:49
Here member McQueen Lejean. 02:53:51
Here. 02:53:53
Chair. 02:53:55
Vice Chair Perez and Chair Martinez, President. 02:53:56
O we have. 02:54:01
The last item before U.S. business item number 9, joint resolution regarding property conveyance. Will staff please present the 02:54:03
report. 02:54:06
Absolutely, Mayor Martinez. 02:54:12
I was just looking to see if our city manager wanted to. 02:54:13
Um. 02:54:18
So I'll I'll try and make this as painless as possible. Council is is somewhat familiar with these issues stemming back to March 02:54:20
of 2011. 02:54:25
We've had numerous properties brought back before trying to correct certain land transfers that happened prior to the state's 02:54:30
dissolution law, which is a BX1-26. 02:54:35
Essentially what happened and and a lot of cities attempted to do the same thing, was. 02:54:41
The governor dissolved the redevelopment agencies in the state of California in an effort to balance the state's budget. So in 02:54:48
essence, it was a It was a money grab. 02:54:52
And cities ended up hurting financially as a result of this. So in March. 02:54:56
Various cities, including the city of Portland and we tried to transfer RNA assets to the city so they didn't have to be sent back 02:55:01
to the state. 02:55:05
Well, under the under the dissolution laws, that law came to be known. 02:55:09
The state conducted an audit. 02:55:12
And the audit determined that there were several illegal land transfers that had to be reconveyed back to the successor agency 02:55:15
because they couldn't go to the RDA because the DA didn't exist anymore. 02:55:20
As a result, we were also required to submit a long range property Management plan to the Department of Finance and the Department 02:55:27
of Finance had to authorize how all assets, including properties held by various agencies, were disposed of, so to speak. 02:55:34
So in an effort to correct all of this so that our. 02:55:41
This our, our successor agency, can be properly wound up because it's done. We have no more recognized obligation schedules. 02:55:46
To be paid, everything is done. 02:55:55
It. 02:55:58
Unfortunately happened that. 02:55:58
116 W Pleasant Valley and 148 W Pleasant Valley Council adopted a joint resolution conveying those properties to the successor 02:56:03
agency, as directed by the Comptroller's audit in 2014. 02:56:10
Well, unfortunately this was incorrect. 02:56:18
It should have gone to the city as the housing successor agency. 02:56:20
So as we're sitting here trying to wind U, the successor agency. The successor agency currently holds title to two properties. 02:56:24
So this is to correct that by conveying those two properties to the housing successor agency so that we can then tell the county 02:56:31
oversight board that the successor agency no longer owns properties and we can finally get rid of. 02:56:37
There was also an issue from prior resolutions of certain deeds not being recorded, which basically due to staff turnover and 02:56:44
various other things, not through any. 02:56:49
Real. 02:56:55
Competence issues. 02:56:56
But eventually what happened is it created wild deeds, wild deeds, if you don't know our Deans, deeds that exist outside the chain 02:56:58
of title and they do all sorts of weird things. And since there's easements with these properties, the first direction is that. 02:57:04
From a prior joint resolution, 4 properties were transferred that are identified in the state in the in the staff report, those 02:57:11
deeds were not recorded. Those deeds need to be recorded first. 02:57:15
Then what happens is there are already existing grants of easement in favor of SCE recorded. 02:57:20
And then? 02:57:26
The successor agency is going to quit claim its title to the properties to the Housing Successor Agency, and that should leave the 02:57:27
SCE grants of easement in place. 02:57:32
Because it's a quick claim deed, not a grant deed. 02:57:36