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Res 2018-86 - CUP 17-0030 - P&S Ventures LLC - Saint Mary Magdalene
MEETING DATE: PREPARED BY: REQUEST: Recommendation CITY COUNCIL STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT November 15, 2018 Eric Ceja, Principal Planner Consideration of an appeal of Planning Commission Resolution No. 2738, approving a Conditional Use Permit and Cannabis Regulatory Permit for a 10,820-square-foot cannabis manufacturing and distribution business for P&S Ventures, LLC, located at 77-700 Enfield Lane. Waive further reading and adopt City Council Resolution No. 2018- 86 denying the appeal filed by Saint Mary Magdalene Coptic Orthodox Church and upholding Planning Commission Resolution No. 2738. Commission Recommendation The Planning Commission, at their meeting of September 18, 2018, did consider a Conditional Use Permit (CUP) and Cannabis Regulatory Permit request by P&S Ventures, LLC, for the operation of a 10,820-square-foot cannabis manufacturing and distribution business at 77-700 Enfield Lane. At that meeting, members from the Saint Mary Magdalene Coptic Orthodox Church voiced opposition to the proposed use in proximity to their facility. Members expressed concern over security, safety, odor, and the morality of drug use and cannabis legalization. Upon hearing the concerns, the Planning Commission voted 4-0 (Commissioner Gregory absent) to adopt Resolution No. 2738 approving the proposed cannabis business subject to the following conditions: • No exterior building signs indicating that the business is a cannabis facility. • No retail operations at the site. • Applicant to install a six -foot -high block wall along the abutting property line with the church. • No business activity at the site on Sundays. • All business activity shall cease by 5:00 p.m. the rest of the week. Strategic Plan The appeal of Planning Commission Resolution No. 2738 does not implement any specific goals of the Strategic Plan. However, the Economic Development "mini -vision" of the Strategic Plan lists Priority 1 as "expand job and business creation opportunities." November 15, 2018 — City Council Staff Report Case No. CUP 17-0030 Appeal for P&S Ventures Page 2 of 5 Executive Summary P&S Ventures, LLC, received Planning Commission approval to operate a 10,820-square- foot cannabis manufacturing and distribution business within the Service Industrial (SI) zoning district. At the Planning Commission public hearing, the adjoining church, Saint Mary Magdalene Coptic Orthodox Church, voiced opposition to the proposed operation citing concerns for odor, security, and safety. The Planning Commission approved the project and added conditions to limit the operations at the cannabis manufacturing facility, however, the adjoining church filed an appeal to ask the City Council to review the proposed project. Background Analysis A. Property Description: The 1.64-acre parcel is located on the north side of Enfield Lane and is developed as a 22,696-square-foot industrial building with a parking lot and landscaping. B. Zoning and General Plan Designation: Zone: Service Industrial (SI) General Plan: Employment C. Adjacent Zoning and Land Use: North: South: East: West: Interstate 10/Union Pacific Railroad Service Industrial — Various light industrial uses CVWD Well Site Service Industrial — Various Tight industrial uses and Saint Magdalene Coptic Orthodox Church Proiect Description The project includes tenant improvements for a new cannabis manufacturing and distribution facility within an existing industrial building located on the north side of Enfield Lane. The applicant, P&S Ventures, is pursuing City and state permits for the operation of a cannabis manufacturing and distribution operation. The business is located within a single - story industrial building and will operate as a manufacturer and distributor of cannabis and cannabis -related products. Vehicle parking is provided within the existing development and shared parking areas are available for the industrial complex. Tenant improvements include the following: • 4,396-square-foot Distribution Warehouse • Kitchen • Finishing and Packaging Room • Walk-in Cooler • Office • Extraction Prep Room • Utility Room • Security Room • Storage Room • Restrooms G:\Planning\Eric Ceja\Cannabis\Cannabis\Applications\CUP 17-0030 PS Ventures\CC\CC Staff Report - PS ventures (11.15.18).doc November 15, 2018 — City Council Staff Report Case No. CUP 17-0030 Appeal for P&S Ventures Page 3 of 5 In addition, the improvements include several security features and improvements to the air handling system to mitigate any odors. There is no on -site consumption of cannabis products at this site. The manufacturing operation is expected to be open six (6) days a week and closed on Sundays per the Planning Commission's conditions of approval. The business expects to employ 10 to15 people on -site during each shift, as well as on -site security personnel. Analysis A. Commercial Cannabis Businesses: In October 2017, the City Council adopted Ordinance No. 1329, establishing a comprehensive set of regulations for commercial cannabis businesses. Those regulations are in Section 25.34.120 of the Palm Desert Municipal Code (PDMC). The Cannabis Ordinance limits the location for cannabis cultivators and manufactures to industrially zoned properties, and further limits their location by requiring a 1,500-square- foot separation from other cannabis businesses and a 1,000-square-foot separation from schools, daycares, and youth centers. There is no separation requirement in either city or state regulations for cannabis businesses from religious facilities. All commercial cannabis businesses are required to submit a CUP and Cannabis Regulatory Permit. The applicant has submitted all information requested for the review of both applications and meets the City's separation requirements from schools and other cannabis businesses. B. Land Use Compatibility: In 2005, the industrial building complex was approved by the adoption of Planning Commission Resolution No. 2343. The building was identified for general office and Tight industrial space. The SI zoning district allows manufacturing, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. As such, cannabis cultivators and manufacturers are limited to the SI zone and are subject to review and approval of a CUP and Cannabis Regulatory Permit. The applicant has complied with PDMC requirements for submittal of the appropriate applications and is located in a zone that permits retail cannabis businesses. The surrounding industrial area contains a number of light industrial uses, including solar panel installers, automotive repair, storage facilities, tile and carpet installers, paint stores, supply stores, and offices. As a manufacturing use, the cannabis operation is permitted by the City's Zoning Ordinance and there is nothing in the original approval of the site or within the center's Covenants, Conditions, and Restrictions (CC&Rs) that prohibits a cannabis manufacturing facility at this location. The use is similar to other uses within the same building and surrounding area that perform light manufacturing and is compatible with the City's General Plan and zoning designations. G:\Planning\Eric Ceja\Cannabis\Cannabis\Applications\CUP 17-0030 PS Ventures\CC\CC Staff Report - PS ventures (11.15.18).doc November 15, 2018 — City Council Staff Report Case No. CUP 17-0030 Appeal for P&S Ventures Page 4 of 5 C. Security: The applicant is proposing a number of security measures to ensure the safety of their employees and the surrounding businesses. A security officer is provided at the entrance to the building and the applicant plans to hire a third -party security company to be on -site 24 hours a day. Security will also monitor the exterior portions of the building and surrounding parking areas. In compliance with the City's cannabis regulations, security cameras will be installed throughout the facility, including the entry and exit in each separate room and office, and within the frozen storage areas. The applicant is further conditioned to maintain security surveillance footage in accordance with the City's cannabis regulations. The applicant will also install motion sensors, fire alarms, and panic alarm buttons throughout the facility. D. Odor Control: Cannabis odors are mostly present during the "flowering" phase of cultivation operations. Although there is no cultivation at this location, the applicant proposes odor mitigation measures to combat nuisance odors from cannabis. The applicant is proposing to use a series of methods to limit odors from the operation. The applicant will install a negative ion generator to remove potential smells from the air. They will also be using a carbon filtration air purification system that will be maintained regularly to ensure quality air filtration. In consultation with other jurisdictions that allow cannabis businesses, odor control is an on- going issue that needs to be addressed on a case -by -case basis. Staff is proposing a condition requiring, should odor become an issue, the applicant takes additional measures to mitigate the issue or have the regulatory permit revoked. Public Input A public hearing notice was mailed to all property owners within 300 feet of the proposed use and published in The Desert Sun on November 3, 2018. This item was approved by the Planning Commission at their meeting of September 18, 2018. At the public hearing on September 18, several members from the adjacent Saint Mary Magdalene Coptic Orthodox Church spoke in opposition to the proposed use citing security concerns, odor mitigation, and proximity of the use to children at the religious facility. No additional correspondence has been received by staff since the re -noticing of the appeal. Conclusion P&S Ventures, LLC, has gone through an extensive review process with City staff for compliance with the newly adopted city and state cannabis regulations. Staff believes that the applicant has demonstrated their operation can be successful in this location, the use is compatible with the existing and surrounding businesses, and the odor and security issues meet the intent of the ordinance and can continuously be improved should nuisances arise. Although there is opposition to the use from an adjoining religious facility, staff believes that G:\Planning\Eric Ceja\Cannabis\Cannabis'Applications\CUP 17-0030 PS Ventures\CC\CC Staff Report - PS ventures (11.15.18).doc November 15, 2018 - City Council Staff Report Case No. CUP 17-0030 Appeal for P&S Ventures Page 5 of 5 the opposition stems from a misunderstanding of the operations, which take place entirely indoors and will have a heavy security presence. The SI zoning district is intended to allow for manufacturing uses and cannabis manufacturing. Since the cannabis industry is new to the City of Palm Desert, staff foresees heavy oversight of the business. Should any issues arise, such as blatant disregard for nuisance issues, the CUP can be revoked and the business suspended from continued operations. Findings of Approval Findings can be made in support of the project and in accordance with the City's PDMC. Findings in support of this project are contained in City Council Resolution, attached to this staff report. LEGAL REVIEW N/A DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A Robert W. Hargreaves Ryan Stendell Janet Moore City Attorney Director of Community Director of Finance Development APPLICANT: P&S Ventures LLC. 2000 Alberta Ave. Suite 19 Venice, CA 90291 Lauri Aylaian City Manager ATTACHMENTS: 1. Applicant's Appeal Form 2. Planning Commission Resolution No. 2738 3. Public Hearing Notice 4. DRAFT City Council Resolution No.2018-86 5. Planning Commission Minutes: August 7 and September 18, 2018 6. Exhibits Provided by the Applicant G:\Planning\Eric Ceja\Cannabis\Cannabis\Applications\CUP 17-0030 PS Ventures\CC\CC Staff Report - PS ventures (11.15.18).doc Name of Appellant S4-- Address -7 7-6 7a City, State, Zip ''MI Description of Application or Matter Considered: Reason for Appeal (attach RECEIVED CITY CLERK'S OFFICE CITY OF PALM DESERT, CALIFORNIA ALH DESERT r APPLICATION TO APPEAA18 SEP 28 AM 11: 31 DECISION OF THE ro Im me f� CQY t1 s ( •me of Dol•mminlnQ Body} Case No. ( 17- OCR 3( Date of Decision: q - ! - a 1 hone Tv) . ` 1-c101n taylly li if S cad r OFFICIAL USE ONLY Date Appeal Filed: fir-'"' Fee Received: Treasurers Recelpt No��S-' Received by Date of Consideration by City Council or City Official: i iT Action Taken: Date: Rachelle D. Kiassen, City Clerk HilaP IItaaWPDOC3WCRMStappl ta appea►lae 2011 wad A Rev atatt CUP 17-0030 As a Sunday School Servant & Board Member of the church, we have a lot of kids that we serve on a weekly basis. I do object this project for the following reasons: 1. marijuana is a gateway drug the Cannabis 's intended location is too close to a church where children gather and would send the wrong message about the community to people visiting the area. 2. According to the state Law the Planning Code prevents dispensaries from opening within 1,000 feet of a school OR a community facility that primarily serves children under 18. Our church is a few steps away from the Subject property. 3. Our primarily focuses are the kids and youth ages from 1 year to 18 years. 4. Current Families of the church won't feel safe to bring the kids to their spiritual educational programs. 5. Cannabis& Manufacture are against our Church's ethics & beliefs. Our church effort is to build families, communities and most importantly ethical youth so they can serve the community in a healthy better ways. 6. The church would like to reserve its right to apply for a day care and based on that we are appealing the planning commission decision and staff recommendation for approval. I would really appreciate if the City Council vote against this project for the safe of our community and our kids. Thanks Nancy Samaan ( St. Mary Magdalene Coptic Orthodox Church ;7 Board Memeber v =r-rn rn m nQia�o�' v,rn "t 0O .71 � W > Cs '� rn CITY COUNCIL RESOLUTION NO. 2018- 86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPHOLDING PLANNING COMMISSION RESOLUTION NO. 2738, APPROVING A CONDITIONAL USE PERMIT FOR A MANUFACTURING AND DISTRIBUTION CANNABIS BUSINESS LOCATED AT 77-700 ENFIELD DRIVE; AND DENYING AN APPEAL BY SAINT MARY MAGDALENE COPTIC ORTHODOX CHURCH CASE NO: CUP 17-0030 WHEREAS, the Planning Commission of the City of Paim Desert, California, did on the 7th day of August 2018, hold a duly noticed public hearing to consider the request by P&S Ventures, LLC, for approval of the above -noted, ark bt said public hearing the Planning Commission continued the public hearing to their next meeting on the 21st day of August 2018; and WHEREAS, the Planning Commission o ,h'City of Palm Dese'rt'!!alifornia, did on the 21st day of August 2018, continued the request to a date uncertain anthe public hearing to allow staff to re -notice the publicwring and address the in *ease of the applicant's operations; and WHEREAS, the Planning Co., the 18th day of September 2018, aftekJ 1, Resolution No. 2738 and approved the fission of the Ci#y of Palm Desert, California, did on all testimony at the public hearing, did adopt se„subject'tb„conditions, and WHEREAS, on tell er 28, `'� 018,E � int lV .Magdalene Coptic Orthodox Church, filed a timely ap'peal'o sting to the'Plarming Commission's adoption of Resolution No. 2738; and WHEREAS, day of November 2018 Mary Magdalene Coptic Pe City;�� Palm Desert, California, did on the 15th ced, ox Church; an hearing to consider the appeal by Saint WHEREAS, in ;heann� ,testimony from all parties wishing to be heard, the City Council :;did adopt this ,resolution ��a#firming Planning Commission Resolution No. 2738 approving u ����;;;� pp g .a„.cannabis manufacturing' and distribution facility for P&S Ventures, LLC, at the above -noted 'address; and WHEREAS „the City' Council of the City of Palm Desert adopted Ordinance No. 1329, allowing commercial cannabis businesses, including cannabis cultivation and manufacturing, within''tFe City; and WHEREAS, Ordinance No. 1329 established comprehensive regulations for commercial cannabis businesses, including standards for business operations, and permit requirements; and WHEREAS, the applicant has submitted a Conditional Use Permit (CUP) and Cannabis Regulatory Permit to operate a manufacturing and distribution cannabis business, and provided all required information including a business plan, security plan, neighborhood CITY COUNCIL RESOLUTION NO. 2018- and community outreach plans, and background information, in accordance with the City's commercial cannabis business requirements; and WHEREAS, the location of the cannabis manufacturing and distribution business is in the City's Service Industrial (SI) zoning district and, meets the City's separation and distance requirements, is permitted subject to the approval of a CUP and Cannabis Regulatory Permit; and WHEREAS, the applicant has demonstrated compliance with the City's 1000- square-foot separation requirements from schools, daycares, and,youth centers; and WHEREAS, nuisance issues, including, but not limited to, odor and security, are mitigated in accordance with the City's cannabis regulations. a' dthe project is conditioned to respond to any issues immediately or be subject to revocation cif said cannabis regulatory permit; and d WHEREAS, the project complies with the General Plan that promote a diverse, growing,a WHEREAS, pursuant to section 21067 15367 of the State California Environmental Qua Code Regulations, Title 14, § 15000iet11eeg ), and the CEQA Guidelines, the City is the lead gency for the pro ;gals and policies coat esilient local economy; WHEREAS, as the lead agency,, determined that, as the b�usine s is locati the project is exempt underSection 15301, , the Planning Commission can adopt a Noticed WHEREAS, as' ontain the basis for its decisio ed in the City's is Resources Code, Section t (CEQA) Guidelines (California of Palm Desert's ("City's") Local d project; and evieWed the proposed project and IS in yeloped building and site, that 1 "existin'facilities" of the CEQA and that Exemption of environmental review; and has endeavored in good faith to set forth eta l ,cannabis business; and .____.._.__..... dings and conclusions made by the City pursuant to this Resolution are based upon the oral and written evidence before it as a whole; and dddiddidH WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did make the following findings; to" justify the approval of said request: WHERE WHEREAS, ail other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. Recitals. The City Council of the City of Palm Desert hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. 2 CITY COUNCIL RESOLUTION NO. 2018- SECTION 2. Compliance with the CEQA. As the approving authority for the project, the Planning Commission has reviewed and considered the information contained in the application and administrative record on file with the City and available for review at 73-510 Fred Waring Drive, Palm Desert, California. The Planning Commission finds that a Notice of Exemption can be adopted in compliance with the CEQA (Pub. Res. Code § 21000 et seq.: "CEQA") and the State CEQA Guidelines. SECTION 3. Findings on Conditional Use Permit. In approving this project, the City Council makes the following findings in accordance with Palm Desert Municipal Code (PDMC) Section 25.72.050: 1. That the proposed location of the conditional us ; is in accordance with the objectives of this title and the purpose of the dis riot in Which the site is located. The purpose of the SI zoning district is to;,allow the development of traditional business parks that allow for manufacturing, distribution, research and development, and service of products The proposal to esfablish a cannabis manufacturing and distribution facility 'at this location complies ;;W th the City's goals and the objectives of the zoning,,,,designation, and the Citys 1 I Commercial Cannabis Business and Personal Cuit,vatio .IjInd the "Commercial Cannabis Business Regulatory Permit" ordinances b r iproviding a detailed business plan, security lan, odor control lan, neighborhood and community outreach plans, and background check information ,The conditional allowance of this use at this Ili !i� �liii! iii � i , I ii !ii1 site complies with the objectives ahtl purpose ��;► the SI zoning district and exceeds the minimum separation 'requirements established in cannabis ordinances. 2. That the it would', safety, or vicinit gin of the ' nditional use and the conditions under which 1Htilmaintained; will not be detrimental to the public health, e !ally injurious to properties or improvements in the oters of E the St 'f � of California did in November 2016, vote and approve Proposition ontrol, Regulate and Tax Adult Use of Marijuana Act (AUMA), to allow the adult use of cannabis subject to local ordinances. The City of Palm Desert, in response to the voter -approved law, established a committee to evaluate cannabis business potential in the City and found that cannabis businesses are .compatible with other general industrial uses subject to conditions to mitigate nuisances, such as odor and security. As designed and as conditioned, ; the establishment of a cannabis manufacturing and distribution facility at''this location will not be detrimental to the public health, safety, or welfare, as the use is designed to include on -site security personnel, video surveillance, a UV filtration, negative air pressure, and charcoal air filters, to mitigate security and odor nuisance concerns. 3. That the proposed conditional use will comply with each of the applicable provisions of this title, except for approved variances or adjustments. The proposed use complies with the development and use standards of the Service Industrial zoning district, and the requirements listed in the City's 3 CITY COUNCIL RESOLUTION NO. 2018- comprehensive cannabis regulation. No adjustments of variances are proposed for this use. 4. That the proposed conditional use complies with the goals, objectives, and policies of the City's General Plan. The proposed retail cannabis use complies with goals and objectives of the City's General Plan, including Goals listed in Chapter 3 of the Land Use and Community Character chapter, including Goals: 5.1, 5.3, 8.1, and Chapter 10 Goal 1.1. In providing a manufacturing and disl,ibution space for the ���i� �I ills manufacturing of cannabis products, the applicant Is �bbmplying with the goals and objectives of the City's General Plan. SECTION 5. Approval. The City Council hereb overturn Planning Commission Resolution No. 2738 a Cannabis Regulatory Permit applications for the proje SECTION 6. Custodian of Records. T record of proceedings on which these findings 510 Fred Waring Drive, Palm Desert, CA 92260. uphold the a applicant's request to ovals of the CUP and cuments and materials at constitute the ased are,Iocated at the City's office at 73- SECTION 7. Notice of Exemption The City Co "ncil within five (5) working days of any project approval PASSED, APPROVED AND ADOPT Desert, California, at ids 'egu�af+,;'meeting II,;,,;I,�, following vote, to wi AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK approves the Project and directs e and the State Clearinghouse y Council of the City of Palm 'o'n the 15tt' 'clay of November 2018, by the SABBY JONATHON, MAYOR 4 CITY COUNCIL RESOLUTION NO. 2018- CONDITIONS OF APPROVAL CASE NO. CUP 17-0030 DEPARTMENT OF COMMUNITY DEVELOPMENT: 1. The development of the property shall conform substantially with exhibits on file with the Department of Community Development, as modified by the following conditions. 2. The applicant agrees that in the event of any administrative, legal or equitable action instituted by a third party challenging the validity of any of the procedures leading to the adoption of these project approvals for the retail usethe project approvals themselves, the applicant and City each shall have the right,' in their sole discretion, to elect whether or not to defend such action. The app la i � at its sole expense shall defend, indemnify, and hold harmless the City (including ;its agents, officers, and employees) from any such action, claim, or proceeding with counsel chosen by the City, iifts =`I=n�li subject to applicantse �i ��approval of counsel, which hall not be unreasonably denied, and at the applicant's sole expense. If the City islaware of such an action or proceeding, it shall promptly notify the applicant and cooperate in the defense. The''ap licant, upon such notification, shall deposit sufficient funds,in the judgment of City's Finance Director to cover the expense of defending such action' without;;;ai y offset or claim against said deposit to assure that the City expends no City funds. If both Parties elect to defend, the Parties hereby agree to affi matively cooperate'in defending the said action and to 'information, under the joint defen r VI e ecognize !under the applicable law. As execute a joint defense and confident' ity,4 agreement in order to share and protect part of the cooperation in defending „an actin" , City ndtheapplicant shall coordinate their defense in orderto make the most efficient use of legal counsel and to share and protect information Applicant Land City shall each have' sole discretion to terminate its defense at any ;time. The City shall n!i t settle any third party litigation of project approvals withut applicants consent, 'which consent shall not be unreasonably withheld, con it oned or, ��;�eicyed unless applicant materially breaches this indemnification regi i'` 3. In accetin 'this CUP p g a'pd operating a business pursuant thereto, the applicant acknowledges that the regulation of the production, distribution, sale, and use of cannabis remains in flux due to ,the relative novelty of these uses and conflicts with federal, law. The applicant agrees that the applicant remains at risk and subject to all changes;3in federal, state, and Palm Desert regulations, including the possibility of the discontinuance of such uses or the imposition of additional requirements that render continuing operationsinfeasible, and does not gain a vested right to continue to operate in any particularmanner, in any particular place, or at all. 4. The cannabis manufacturing and distribution use are limited to this location and the use described herein shall be subject to the restrictions and limitations set forth herein which are in addition to the approved use standards listed in the PDMC, and state statutes now in force, or which hereafter may be in force. 5 CITY COUNCIL RESOLUTION NO. 2018- 5. Prior to issuance of a building permit for improvements and use contemplated by this approval, the applicant shall first obtain permits and/or clearance from the following agencies: Coachella Valley Water District (CVWD) Burrtec Waste Management Fire Department Evidence of said permit or clearance from the above agencies shall be presented to the Department of Building & Safety at the time of issuance of a building permit for the use iIi contemplated herewith. 6. The cannabis manufacturing and distribution use of this p operty shall not commence until the applicant can provide the City's Communityment Department with proof of a license issued by the State Bureau of Cannabis Control. Continued use of the property for cannabis purposes is subject toapplicant maintaining a valid license from the State Bureau and demonstrating ongoing compliance wit li'�0th'�e,City's cannabis regulatory permit. 7. The premises shall be equipped with an odor al so that odors generated inside the cannabis business, anywhere on adjacent properties, pub interior common areas or tenant; spaces As suc mitigation equipment in accordanckwith'tli'e' plans on to the satisfaction of the Building Development Depa fYte t may re employed. At a mint'iri' ti';'applican# A. Air filtration system emitted externall B. Air systems the exterior. 8. Security features's the plans on file as maintained as specifie entilation and exhaust system ss is not detected outside of the ht-of-way, or in any exterior or the applicant shall install odor ile as part of this application, and G or',:o'rssues arise, the Community dor control measures to be dilowing: 1 that prevents internal odors from being essure between the cannabis business and ;tilled within the tenant lease spaces in accordance with of thispplication. All security features shall be installed and in the City's Cannabis Regulatory Permit regulations. 9. The applicant is required to have on -site security personnel during business hours. Security personnel shall''be licensed with the State Bureau of Security and Investigative Services. 10. The applicant shall comply with all applicable provisions of the PDMC Sections 5.101 (Commercial Cannabis Business Regulatory Permits), 8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business and Personal Cultivation). 11. Exterior building signs are not a part of this approval. All exterior building signs shall be submitted to the Community Development Department along with a Sign Application for staff review. 6 CITY COUNCIL RESOLUTION NO. 2018- 12. From the public right-of-way, no exterior evidence, other than a building sign to identify the retail operation of cannabis products is permitted. 13. All mechanical equipment, either roof or ground mounted, shall be screened from public view. All such equipment shall be fully screened by the roof structure, parapet wall, ground mounted walls, berming and/or landscape. 14. Any and all window and door security devices such as metal bars, gates, and shutters, shall be installed within the interior of the building and screened from public view. 15. There shall be no on -site business activity or operations activity and operations shall cease by 5:00 p.m. the remain ! it 16. There shall be no exterior building -mounted signagein Ica cannabis facility. 17. The applicant shall construct a six -foot -high 18. There shall be no on -site retail operations 19. Operation of the cannabis business constitute a violation of the PDt1 the PDMC. On -going violations by the Community Development Cannabis Regulatory Permit. BUILDING AND SAFET 20. This project sli A. 2016 Califor� 16,CaliforniA!1' 16California 2016 California,Ele 2016 California'1 2016 California G. 2016 California H. 2016 California Sundays. All business business days. that the business is a wall along the westep property line. is locati outside of these approvals and conditions shall d shall be enforced pursuant to the provisions in not remedied within a timeframe established ay result iri revocation of the CUP and ARTMENV e latest adopted edition of the following codes: ing Code a nical Code al Code. nerg Code. een Building Standards Code ministrative Code. ire Code and its appendices and standards. pendices and standards. s appendices and standards. and its appendices and standards. 21. Provide the following design data on the first sheet: A. Occupancy group(s). B. Type(s) of construction, including fire sprinklers CBC Section 107.2. 22. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per PDMC, Title 5. 23. All contractors and/or owner -builders must submit a valid Certificate of Workers' Compensation Insurance coverage prior to the issuance of a building permit per California Labor Code, Section 3700. 7 CITY COUNCIL RESOLUTION NO. 2018- 24. Address numerals shall comply with Palm Desert Ordinance No. 1310 (Palm Desert Municipal Code 15.28. Compliance with Ordinance 1310 regarding street address location, dimension, a stroke of line, distance from the street, height from grade, height from the street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of Ordinance 1310 or Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 25. Please contact the Department of Building and Safety (7¢1;'76-6420) regarding the addressing of all buildings and/or suites. 8 CITY Of PHIM D[S[RT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL:760 346-0611 i nfo C'. c i tyofpal mdesert. org PLANNING COMMISSION MEETING NOTICE OF ACTION September 19, 2018 P&S Ventures, LLC 2000 Alberta Avenue, Suite 19 Venice, California 90291 Subject: Consideration of a Conditional Use Permit for a Cannabis Manufacturing and Distribution Business The Planning Commission of the City of Palm Desert considered your request and took the following action at its regular meeting of September 18, 2018: The Planning Commission approved Case No. CUP 17-0030, by the adoption of Planning Commission Resolution No. 2738, subject to the conditions of approval. Motion carried by a 4-0 vote with Commissioner Gregory ABSENT. Any appeal of the above action may be made in writing to the City Clerk, City of Palm Desert, within fifteen (15) days of the date of the decision. Ryan Stendell, Secretary Palm Desert Planning Commission cc: File Building & Safety Department Public Works Department Fire Marshal `a MIMtt00M tf(YC(FD Ph/FP 1 PLANNING COMMISSION RESOLUTION NO. 2738 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT FOR A MANUFACTURING AND DISTRIBUTION CANNABIS BUSINESS LOCATED AT 77-700 ENFIELD DRIVE; AND ADOPTING A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT CASE NO: CUP 17-0030 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 7th day of August 2018, hold a duly noticed public hearing to consider the request by P&S Ventures for approval of the above -noted, and at said public hearing the Planning Commission continued the public hearing to their next meeting on the 21st day of August 2018; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 21 St day of August 2018, continued the request to a date uncertain and closed the public hearing to allow staff to re -notice the public hearing and address the increase in the applicant's operations; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 18th day of September 2018, after hearing all testimony at the public hearing, did approve the proposed use subject to conditions; and WHEREAS, the City Council of the City of Palm Desert adopted Ordinance No. 1329, allowing commercial cannabis businesses, including cannabis cultivation and manufacturing, within the City; and WHEREAS, Ordinance No. 1329 established comprehensive regulations for commercial cannabis businesses, including standards for business operations, and permit requirements; and WHEREAS, the applicant has submitted a Conditional Use Permit (CUP) and Cannabis Regulatory Permit to operate a manufacturing and distribution cannabis business, and provided all required information including a business plan, security plan, neighborhood and community outreach plans, and background information, in accordance with the City's commercial cannabis business requirements; and WHEREAS, the location of the cannabis manufacturing and distribution business is located in the City's "Service Industrial" zoning district and, meets the City's separation and distance requirements, is permitted subject to the approval of a CUP and Cannabis Regulatory Permit; and WHEREAS, the applicant has demonstrated compliance with the City's 1000- square-foot separation requirements from schools, daycares, and youth centers; and PLANNING COMMISSION RESOLUTION NO. 2738 WHEREAS, nuisance issues, including, but not limited to, odor and security, are mitigated in accordance with the City's cannabis regulations, and the project is conditioned to respond to any issues immediately or be subject to revocation of said cannabis regulatory permit; and WHEREAS, the project complies with the goals and policies contained in the City's General Plan that promote a diverse, growing, and resilient local economy; and WHEREAS, pursuant to section 21067 of the Public Resources Code, Section 15367 of the State California Environmental Quality Act (CEQA) Guidelines (California Code Regulations, Title 14, § 15000 et seq.), and the City of Palm Desert's ("City's") Local CEQA Guidelines, the City is the lead agency for the proposed project; and WHEREAS, as the lead agency, the City has reviewed the proposed project and determined that, as the business is locating in an existing developed building and site, that the project is exempt under Section 15301, Class 1 "existing facilities" of the CEQA and that the Planning Commission can adopt a Notice of Exemption of environmental review; and WHEREAS, as contained herein, the City has endeavored in good faith to set forth the basis for its decision on the proposed retail cannabis business; and WHEREAS, all of the findings and conclusions made by the City pursuant to this Resolution are based upon the oral and written evidence before it as a whole; and WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the Planning Commission did make the following findings to justify the approval of said request: WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: SECTION 1. Recitals. The Planning Commission of the City of Palm Desert hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Compliance with the CEQA. As the approving authority for the project, the Planning Commission has reviewed and considered the information contained in the application and administrative record on file with the City and available for review at 73-510 Fred Waring Drive, Palm Desert, Califomia. The Planning Commission finds that a Notice of Exemption can be adopted in compliance with the CEQA (Pub. Res. Code § 21000 et seq.: "CEQA") and the State CEQA Guidelines. SECTION 3. Findings on Conditional Use Permit. In approving this project, the Planning Commission makes the following findings in accordance with Palm Desert Municipal Code (PDMC) Section 25.72.050: 2 1 1 PLANNING COMMISSION RESOLUTION NO. 2738 1. That the proposed location of the conditional use is in accordance with the objectives of this title and the purpose of the district in which the site is located. The purpose of the Service Industrial zoning district is to allow the development of traditional business parks that allow for manufacturing, distribution, research and development, and service of products. The proposal to establish a cannabis manufacturing and distribution facility at this location complies with the City's goals and the objectives of the zoning designation, and the City's "Commercial Cannabis Business and Personal Cultivation" and the "Commercial Cannabis Business Regulatory Permit" ordinances by providing a detailed business plan, security plan, odor control plan, neighborhood and community outreach plans, and background check information. The conditional allowance of this use at this site complies with the objectives and purpose of the Service Industrial zoning district and exceeds the minimum separation requirements established in cannabis ordinances. 2. That the proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or be materially injurious to properties or improvementsin the vicinity. Voters of the State of California did in November 2016, vote and approve Proposition 64 — the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), to allow the adult use of cannabis subject to local ordinances. The City of Palm Desert, in response to the voter -approved law, established a committee to evaluate cannabis business potential in the City and found that cannabis businesses are compatible with other general industrial uses subject to conditions to mitigate nuisances, such as odor and security. As designed, and as conditioned, the establishment of a cannabis manufacturing and distribution facility at this location will not be detrimental to the public health, safety, or welfare, as the use is designed to include on -site security personnel, video surveillance, a UV filtration, negative air pressure, and charcoal air filters, to mitigate security and odor nuisance concerns. 3. That the proposed conditional use will comply with each of the applicable provisions of this title, except for approved variances or adjustments. The proposed use complies with the development and use standards of the Service industrial zoning district, and the requirements listed in the City's comprehensive cannabis regulation. No adjustments of variances are proposed for this use. 4. That the proposed conditional use complies with the goals, objectives, and policies of the City's General Plan. The proposed retail cannabis use complies with goals and objectives of the City's General Plan, including Goals listed in Chapter 3 of the Land Use and Community Character chapter, including Goals: 5.1, 5.3, 8.1, and Chapter 10 3 PLANNING COMMISSION RESOLUTION NO. 2738 Goal 1.1. In providing a manufacturing and distribution space for the manufacturing of cannabis products, the applicant is complying with the goals and objectives of the City's General Plan. SECTION 5. Approval. The Planning Commission hereby approves the applied CUP and Cannabis Regulatory Permit applications for the project. SECTION 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City's office at 73- 510 Fred Waring Drive, Palm Desert, CA 92260. SECTION 7. Notice of Exemption. The Planning Commission approves the Project and directs staff to file a Notice of Determination with the County of Riverside and the State Clearinghouse within five (5) working days of any project approval. PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the le day of September 2018, by the following vote, to wit: AYES: DE LUNA, GREENWOOD, HOLT, and PRADETTO NOES: NONE ABSENT: GREGORY ABSTAIN: NONE ATTEST: RYAN STENDELL, PLANNING COMMISSION SECRETARY 4 ,17tPH PRADETTO, CHAIRMAN 1 1 PLANNING COMMISSION RESOLUTION NO. 2738 CONDITIONS OF APPROVAL CASE NO. CUP 17-0030 DEPARTMENT OF COMMUNITY DEVELOPMENT: 1. The development of the property shall conform substantially with exhibits on file with the Department of Community Development, as modified by the following conditions. 2. The applicant agrees that in the event of any administrative, legal or equitable action instituted by a third party challenging the validity of any of the procedures leading to the adoption of these project approvals for the retail use, or the project approvals themselves, the applicant and City each shall have the right, in their sole discretion, to elect whether or not to defend such action. The applicant, at its sole expense shall defend, indemnify, and hold harmless the City (including its agents, officers, and employees) from any such action, claim, or proceeding with counsel chosen by the City, subject to applicant's approval of counsel, which shall not be unreasonably denied, and at the applicant's sole expense. If the City is aware of such an action or proceeding, it shall promptly notify the applicant and cooperate in the defense. The applicant, upon such notification, shall deposit sufficient funds in the judgment of City's Finance Director to cover the expense of defending such action without any offset or claim against said deposit to assure that the City expends no City funds. If both Parties elect to defend, the Parties hereby agree to affirmatively cooperate in defending the said action and to execute a joint defense and confidentiality agreement in order to share and protect information, under the joint defense privilege recognized under the applicable law. As part of the cooperation in defending an action, City and the applicant shall coordinate their defense in order to make the most efficient use of legal counsel and to share and protect information. Applicant and City shall each have sole discretion to terminate its defense at any time. The City shall not settle any third party litigation of project approvals without applicant's consent, which consent shall not be unreasonably withheld, conditioned or delayed unless applicant materially breaches this indemnification requirement. 3. In accepting this CUP and operating a business pursuant thereto, the applicant acknowledges that the regulation of the production, distribution, sale, and use of cannabis remains in flux due to the relative novelty of these uses and conflicts with federal law. Applicant agrees that the applicant remains at risk and subject to all changes in federal, state, and Palm Desert regulations, including the possibility of the discontinuance of such uses or the imposition of additional requirements that render continuing operations infeasible, and does not gain a vested right to continue to operate in any particular manner, in any particular place, or at all. 4. The cannabis manufacturing and distribution use is limited to this location and the use described herein shall be subject to the restrictions and limitations set forth herein which are in addition to the approved use standards listed in the PDMC, and state statutes now in force, or which hereafter may be in force. 5 PLANNING COMMISSION RESOLUTION NO. 2738 5. Prior to issuance of a building permit for improvements and use contemplated by this approval, the applicant shall first obtain permits and/or clearance from the following agencies: Coachella Valley Water District (CVWD) Burrtec Waste Management Fire Department Evidence of said permit or clearance from the above agencies shall be presented to the Department of Building & Safety at the time of issuance of a building permit for the use contemplated herewith. 6. The cannabis manufacturing and distribution use of this property shall not commence until the applicant can provide the City's Community Development Department with proof of a license issued by the State Bureau of Cannabis Control. Continued use of the property for cannabis purposes is subject to the applicant maintaining a valid license from the State Bureau and demonstrating on -going compliance with the City's cannabis regulatory permit. 7. The premises shall be equipped with an odor absorbing ventilation and exhaust system so that odors generated inside the cannabis business is not detected outside of the business, anywhere on adjacent properties, public right-of-way, or in any exterior or interior common areas or tenant spaces. As such, the applicant shall install odor mitigation equipment in accordance with the plans on file as part of this application, and to the satisfaction of the Building Official. Should odor issues arise, the Community Development Department may require additional odor control measures to be employed. At a minimum the applicant shall install the following: A. Air filtration system with odor control that prevents internal odors from being emitted externally. B. Air systems that create negative air pressure between the cannabis business and the exterior. 8. Security features shall be installed within the tenant lease spaces in accordance with the plans on file as part of this application. All security features shall be installed and maintained as specified in the City's Cannabis Regulatory Permit regulations. 9. The applicant is required to have on -site security personnel during business hours. Security personnel shall be licensed with the State Bureau of Security and Investigative Services. 10. The applicant shall comply with all applicable provisions of the PDMC Sections 5.101 (Commercial Cannabis Business Regulatory Permits), 8.38 (Personal Use of Cannabis), and 25.34.120 (Commercial Cannabis Business and Personal Cultivation). 11. Exterior building signs are not a part of this approval. All exterior budding signs shall be submitted to the Community Development Department along with a Sign Application for staff review. 6 1 1 PLANNING COMMISSION RESOLUTION NO. 2738 12. From the public right-of-way, no exterior evidence, other than a building sign to identify the retail operation of cannabis products is permitted. 13. AU mechanical equipment, either roof or ground mounted, shall be screened from public view. All such equipment shall be fully screened by the roof structure, parapet wall, ground mounted walls, berming and/or landscape. 14. All window and door security devices such as metal bars, gates, and shutters shall be installed within the interior of the building and screened from public view. 15. There shall be no on -site business activity or operations on Sundays. All business activity and operations shall cease by 5:00 p.m. the remaining business days. 16. There shall be no exterior building -mounted signage indicating that the business is a cannabis facility. 17. The applicant shall construct a six (6)-foot-high block wall along the western property line. 18. There shall be no on -site retail operations at this location. 19. Operation of the cannabis business outside of these approvals and conditions shall constitute a violation of the PDMC and shall be enforced pursuant to the provisions in the PDMC. On -going violations which are not remedied within a timeframe established by the Community Development Director may result in revocation of the CUP and Cannabis Regulatory Permit. BUILDING AND SAFETY DEPARTMENT: 20. This project shall comply with the latest adopted edition of the following codes: A. 2016 Califomia Building Code and its appendices and standards. B. 2016 California Plumbing Code and its appendices and standards. C. 2016 California Mechanical Code and its appendices and standards. D. 2016 California Electrical Code. E. 2016 California Energy Code. F. 2016 California Green Building Standards Code G. 2016 California Administrative Code. H. 2016 California Fire Code and its appendices and standards. 21. Provide the following design data on the first sheet: A. Occupancy group(s). B. Type(s) of construction, including fire sprinklers CBC Section 107.2. 22. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per PDMC, Title 5. 7 PLANNING COMMISSION RESOLUTION NO. 2738 23. All contractors and/or owner -builders must submit a valid Certificate of Workers' Compensation Insurance coverage prior to the issuance of a building permit per California Labor Code, Section 3700. 24. Address numerals shall comply with Palm Desert Ordinance No. 1310 (Palm Desert Municipal Code 15.28. Compliance with Ordinance 1310 regarding street address location, dimension, a stroke of line, distance from the street, height from grade, height from the street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of Ordinance 1310 or Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 25. Please contact the Department of Building and Safety (760-776-6420) regarding the addressing of all buildings and/or suites. 8 MINUTES REGULAR PLANNING COMMISSION MEETING AUGUST 7, 2018 Vice Chairman Gregory felt that the Commission thoroughly discussed the proposed project. He also felt comfortable with the dual entrances and supported the applicant's request for a dispensary. Commissioner Holt concurred with Vice Chairman Gregory. Vice Chairman Gregory moved to waive further reading and adopt Planning Commission Resolution No. 2732, approving Case No. CUP 17-0017, subject to the conditions of approval. The motion was seconded by Commissioner Holt and carried by a 4- 0 vote (AYES: DeLuna, Gregory, Holt, and Pradetto; NOES: None; ABSENT: Greenwood). E. REQUEST FOR CONSIDERATION of approval for a 5,672-square-foot cannabis cultivation and distribution business for P&S Ventures, LLC. located at 77-700 Enfield Lane; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0030 (P&S Ventures. LLC, Venice, California. Applicant). Mr. Ceja recommended continuing this item to the August 21, 2018, Planning Commission meeting, per the applicant's request. He reported that a suite adjacent to the proposed site location became available and the applicant signed a lease for the additional space. He also reported that staff would be mailing out a new public hearing notice and evaluate the adjoining suite as part of the project. Chairman Pradetto stated that staff's recommendation is to open the public hearing and to continue the item until August 21. He asked if the Planning Commission should hear public comments. Mr. Ceja said yes. Commissioner DeLuna asked if any of the comments change based on the increased site location. Mr. Stendell replied no, stating the public has the opportunity to speak tonight and/or the next meeting. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. IMAD GUIRGUIS, Member of the St. Mary Magdalene Coptic Orthodox Church, Palm Springs, California, indicated that the City's Cannabis Ordinance states a CUP will not be issued if a cannabis business is located within 1,000 feet of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center. He explained that the church takes care of kids from an infant age to adulthood. After some research, he found other jurisdictions had included churches in their ordinance. He said the proposed project would be devastating to the spiritual values they are teaching their kids. He urged the Commission to not approve the project. 19 MINUTES REGULAR PLANNING COMMISSION MEETING AUGUST 7, 2018 MR. AMIR IBRAMIM, Member of the St. Mary Magdalene Coptic Orthodox Church, La Quinta, California, stated he is concerned about having a cannabis business near the church. He felt the proposed project would have a negative impact on the church. He also voiced his concern with increased traffic in the area. He recommended that the Planning Commission does not approve the proposed project. MR. SHERIF ABDOM, Member of the St. Mary Magdalene Coptic Orthodox Church, Palm Desert, California, mentioned that he is a physician and is concerned with the long-term use of cannabis. He noted that 40 percent of the church members are kids. He also noted that there are pregnant women who go to the church and they do not know if the odor coming from cannabis would affect the fetus while in the womb. He asked the Commission to reconsider the location of the project; it should not be close to the church. MR. ANDRE USIF, Member of the St. Mary Magdalene Coptic Orthodox Church, Palm Springs, California, communicated that he is a student at Palm Springs High School and said the kids currently have bible study then after play soccer at the church. He said they are looking at moving indoor soccer to a new building across the street from the church. He voiced his concern with a person potentially being under the influence of cannabis and being hit by a car when crossing the street. He was also concerned with odor. He said he would not feel safe having the proposed project so close to the church. Chairman Pradetto asked staff if the item is continued, is it correct to leave the public hearing open. Staff replied that is correct. MR. MEHAT BOTROS, Member of the St. Mary Magdalene Coptic Orthodox Church, La Quinta, California, shared that a marijuana user will become addicted and people start using before the age of 18. He said he is concerned kids from the church would get exposed to marijuana. Secondly, marijuana also affects the brain and if under the influence and driving, the person could cause an accident. He requested that the Planning Commission reject the proposed project. MR. ARSENIO GURGUS, Member of the St. Mary Magdalene Coptic Orthodox Church, Palm Desert, California, stated he is in charge of the kids that play soccer at the church. He said they go to church to escape from all the bad influences in the world and he does not want the bad influences (proposed project) to be right next to the church. He felt a cannabis business will always attract the wrong people even though cannabis helps people with pain. He does not want their kids around that kind of people when the church is trying to save them from bad influences. MS. NANCY SAMAAN, Member of the St. Mary Magdalene Coptic Orthodox Church, La Quinta, California, stated that the church was not informed of the proposed project and she is opposed to the project. With the project in close proximity to the church, she voiced her concern for the kids' ethics and moral behavior, traffic issues, and robberies. She mentioned that not far from the church there is a gymnastics facility 20 MINUTES REGULAR PLANNING COMMISSION MEETING AUGUST 7, 2018 and a school. She felt a cannabis business should not be allowed near a church. She asked that the Planning Commission refuses the proposed project. Chairman Pradetto, by Minute Motion, to continue Case No. CUP 17-0030 to August 21, 2018. The motion was seconded by Commissioner Greenwood and carried by a 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). IX. MISCELLANEOUS None X. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None XI. COMMENTS None XII. ADJOURNMENT With the Planning Commission concurrence, Chairman Pradetto adjourned the meeting at 8:07 p.m. ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION JOSEPH PRADETTO, CHAIRMAN MONICA O'REILLY, RECORDING SECRETARY 21 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 MR. TODD referred to the site plan and pointed to the green areas, noting the property's total size is 8.4 acres so the green areas are quite large. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner DeLuna commented that the developer has done an excellent job of addressing the needs of the community and putting in a project that is compatible with the surrounding uses. Chairman Pradetto and Commissioner Holt concurred. Chairman Pradetto moved to waive further reading and adopt Planning Commission Resolution No. 2736, recommending approval of Case Nos. PP/CZ 18-0003 & TPM 37512 to the City Council, subject to the conditions of approval. The motion was seconded by Commissioner DeLuna and carried by a 3-0 vote (AYES: DeLuna, Holt, and Pradetto; NOES: None; ABSENT: Greenwood and Gregory). C. REQUEST FOR CONSIDERATION of approval for a 3,200-square-foot commercial cannabis cultivation facility for JW Brands, LLC, located at 75-080 Saint Charles Place; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0028 (JW Brands, LLC. Palm Desert. Applicant). Chairman Pradetto move to, by Minute Motion, continue Case No. CUP 17-0028, to a date uncertain. The motion was seconded by Commissioner Holt and carried by a 4-0 vote (AYES: DeLuna, Greenwood, Holt, and Pradetto; NOES: None; ABSENT: Gregory) D. REQUEST FOR CONSIDERATION of approval for a 10,820-square-foot cannabis manufacturing and distribution business for P&S Ventures, LLC, located at 77-700 Enfield Lane; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). Case No. CUP 17-0030 (P&S Ventures. LLC, Venice. California, Applicant). Principal Planner Eric Ceja presented the staff report. He mentioned the applicant had originally proposed a 5,000-square-foot facility. However, the applicant decided to lease the adjacent space, which increased their space to 10,820 square feet. At the end of his report, he offered to answer any questions. Commissioner DeLuna asked if it is correct that there will be no retail sales of cannabis and no customers coming and going. Mr. Ceja replied that is correct. Commissioner Holt asked where the St. Mary Magdalene Coptic Orthodox Church is located. Mr. Ceja displayed an aerial photo of the site and pointed to the church. 22 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 Commissioner Holt asked what the feet separation from the church and the proposed project is. Mr. Ceja replied approximately 20 feet. Commissioner DeLuna inquired if there is a gymnasium close to the proposed project. Mr. Ceja replied yes, west of the church. Chairman Pradetto declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. PATRICK McMAHON, Cofounder of P&S Ventures, LLC, Venice, California, thanked the Planning Commission for allowing their group to speak, and for implementing a cannabis program in the City of Palm Desert. He informed the Commission that P&S Ventures have gained an impeccable reputation in the cities in which they operate. They are also fully aware of making sure neighbors and surrounding businesses are comfortable with them joining the community. They have also done everything the City has asked them to do; located in the proper zoning area and met all the City's requirements. He made abundantly clear that they are not a retail location and the public does not have access and will not be going in and out of the facility. He explained the product would be manufactured and distributed to retail locations. He looked forward to being a member of the community. Commissioner DeLuna inquired if the product arrives sealed or is it opened product. MR. McMAHON responded that the manufacturing product is opened then sealed. Other products would arrive at the facility sealed and ready to be distributed to retail locations throughout the state. Commissioner DeLuna asked if the applicant would have extraordinary odor mitigations in place. MR. McMAHON responded that they have the finest odor mitigation technology available today. Commissioner DeLuna inquired if they would have security guards. MR. McMAHON answered they would have security guards 24 hours a day. He mentioned they currently have two other locations, West Hollywood and Cathedral City. He noted that they have made the surrounding neighborhoods safer. He said they have 24-hour armed security; no crime occurs within the vicinity of their locations. Commissioner DeLuna asked if there is outside lighting. MR. McMAHON replied absolutely. Commissioner DeLuna asked what the hours of operation are. 23 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 MR. McMAHON replied 10:00 a.m. to 10:00 p.m. Commissioner Holt asked how many deliveries would occur a day and how many times a day would product go in and out of the facility. MR. McMAHON deferred the question to his business partner. MR. SCOTT LAMBERT, Arcadia, California, communicated that most of the trucks would enter from the back of the building. They anticipate two to four trucks per day for deliveries, but it may vary. He shared trucks drive into the building, the door closes behind the trucks, trucks are loaded, the door reopens, and trucks leave the building. He stated there is no visible sign of what is happening inside the building. Commissioner Holt inquired what type of signage would be on the building. MR. LAMBERT replied that the City does not allow signage on the building. Commissioner Holt asked if the business would only be known by the property address. MR. LAMBERT replied yes. MR. SPENCER LIOLIOS, Palm Desert, California, stated that he works for P&S Ventures and echoed Mr. McMahon's sentiments. He thanked the City for implementing a cannabis program and making it a fair process. He also thanked the community members for attending the meeting and able to share their concerns. He said they have been successful with their operations, they are great neighbors, and they contribute positively into the environment. Therefore, they are eager to hear from the community and find ways to address any concerns. MR. ANTHONY CORONA, Palm Desert, California, briefly spoke about his history in the Coachella Valley. He is present to speak on the behalf of Mr. Lambert and P&S Ventures. In his opinion, the cannabis industry has come to the Coachella Valley in the most positive way possible. Desert cities have done a great job regulating the cannabis industry and providing zoning, tax, and licensing guidelines for new entrepreneurs to follow. When he first began working in the commercial real estate industry, he immediately began working with cannabis projects and cannabis operators. P&S Ventures are one of the first operators he worked with and secured a lease for them in Cathedral City. He noted Mr. Lambert was very professional. He then further educated himself and building owners about cannabis businesses and the need for quality cannabis professionals. He believed the industry's competitive nature would scope which operators and businesses will be here in the years to come. He also believed the professional cannabis operators would strengthen the local community and economy and further help promote a healthy cannabis atmosphere in the City of Palm Desert. 24 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 MR. IMAD GUIRGUIS, Member of the St. Mary Magdalene Coptic Orthodox Church, Palm Springs, California, mentioned that he met with Mayor Pro Tem Susan Marie Weber and Mr. Ceja. He was encouraged to talk to Mr. Lambert. He met with Mr. Lambert and noted he was very professional. However, the church has a very different mission, which collides with Mr. Lambert's business model. He stated the church's mission is to have a drug -free and smoke -free environment for the kids so he could not come to an agreement with Mr. Lambert. He stated that doctors have seen the negative impacts of cannabis. He asked the Planning Commission to look at the spirit of the law. The City's ordinance states a cannabis business must be 1,000 feet from a school. He said the church has Sunday school and summer camp. He also said cannabis would be in the kid's face every day when they go to church. Kids are curious and they will know there is a cannabis business even though there is no advertisement. He voiced there is only a chain link fence between the church and the proposed cannabis business. He said the cannabis business is going to be loading and unloading in the back where kids could see through the fence easily. He mentioned they are going to lose future church members when they find out there is a cannabis business next to the church, including existing members. He said the church survives on the donations from the members; if there is no funding, then the church cannot operate. He pointed out that there is going to be armed security inside and outside of the proposed site, which is not safe next to a church. There are other vacant areas to have a cannabis business not next to a church. He and members of the church urged the Planning Commission to vote no. MS. NANCY SAMAAN, Member of the St. Mary Magdalene Coptic Orthodox Church, La Quinta, California, stated that the church has Sunday school during the winter on Friday, Saturday, and Sunday. In addition, kids go to church around 5:00 p.m. so kids would be present during the proposed cannabis business hours. She said kids go to church every day during the summer for summer camp from 9:00 a.m. to 4:00 p.m. Church members sitting in the audience raised their hands in opposition of the proposed project. MR. ARSANIOS GIRGIS, Member of the St. Mary Magdalene Coptic Orthodox Church, Palm Desert, California, stated just because cannabis is legal, it does not mean that it is right. Morally, he felt cannabis is wrong to be legal. Regarding safety, he voiced his concern when the business is closed and a fire ignites. Additionally, he is concerned with armed security and felt it could make matters worse if there is an armed robbery. MR. LAMBERT made clear that they are not cultivating cannabis. He stated he has to follow strict guidelines in order to operate. He pointed out that the armed security guards would not be patrolling outside of the building. He said they would have an office specifically for the security guard(s) to monitor outside of the building. He mentioned a brick wall divides the building; there is no possibility adults and children would be able to see any activities occurring in the building. He restated that trucks would be driving into and out of the building so there is no exposure to the public. He understood and respected a person's ability to make up his or her own mind about cannabis. For the record, children would have more access to cannabis by cell phone, a newspaper, or driving down El Paseo where dispensaries are located. He said it is 25 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 very difficult in the valley to go from Indio to Cathedral City without being exposed to cannabis. He voiced it is the same when a person is exposed to places that sell alcohol or pharmacies, which are legal entities allowed to operate. He stated he reached out a dozen times to address the concerns made by the church. He believed their concerns are due to a misconception about their business. He stated they are not cultivating and it is not a retail location. It was noted that the trucks are not carrying loose product, the product is packaged and sealed. The children's exposure to the business is if the church tells them it is a cannabis business. Commissioner Holt asked if the building has sprinklers. MR. LAMBERT replied yes. Chairman Pradetto asked staff if the proposed business could operate in any other zone besides Services Industrial. Mr. Ceja responded the proposed business could only operate in the Service Industrial zone. Commissioner Greenwood referred to the conditions pertaining to odor and asked what the recourse is if there are complaints. Mr. Ceja responded that there is a condition in the resolution regarding odors. The City would monitor the odors and the City has the ability to require additional odor control measures. Commissioner DeLuna inquired if odor could be measured. Mr. Ceja replied he was not sure. Mr. Stendell interjected that state law provides Code Compliance professionals reasonableness standards. Such as, the City could send a team of three people and the reasonableness of the group could be used to define a public nuisance. Commissioner Greenwood asked Mr. Lambert if he would be open to a condition to no retail of cannabis on the premises. MR. LAMBERT replied absolutely. When he met with the church, he made that offer to the church since it was their main concern. With no further testimony offered, Chairman Pradetto declared the public hearing closed. Commissioner DeLuna commented that it is a complex issue and noted the church was there first. She is concerned with the compatibility of the community, as far as, the church and a gymnasium that houses children. She felt the church is trapped in an environment they did not choose. However, the cannabis business has a legal right to be at the proposed location. She had moral concerns on behalf of the church, but 26 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 the business seemed to be reputable. She wondered if the applicant could compromise on the hours of operation to make it easier for the church. Commissioner Holt believed the situation could have been easily solved by including churches in the Cannabis Ordinance. She asked City staff if they were following state guidelines when the ordinance was written. Mr. Ceja replied yes. When the ordinance was written, a subcommittee was formed that included a Planning Commissioner and members from the community at large. He said there was never a discussion on whether to include churches in the ordinance. He mentioned the subcommittee discussed not allowing cannabis businesses to abut residences. He said staff did look into state law on what constitutes a daycare or school. A daycare or school would need a state license to be considered a daycare or school. Chairman Pradetto asked what would happen if the church gets a state license for a school in a couple of years. Mr. Stendell responded that it would create a legal nonconforming issue. Commissioner DeLuna asked if the cannabis building is twice the size of the church. Mr. Ceja replied the church is 7,700 square feet. Commissioner DeLuna asked if it is correct that the applicant first proposed a facility at 5,000 square feet, and then came back and proposed 10,000 square feet. Mr. Ceja replied that is correct. Commissioner Holt inquired of the other spaces within the building are occupied so the applicant could move farther from the church. Mr. Ceja replied that is correct. Chairman Pradetto shared similar concerns as the other Commissioners. He said the church was there first; however, the applicant is limited in areas in which they could operate in the City and the church could operate in any zone. Commissioner DeLuna asked if there is any other location within the area for additional separation from the church and the cannabis business. Mr. Stendell responded that with the separation requirements and limited locations based on zoning district it could be difficult to find another location in the same area. Commissioner DeLuna asked if there is a chain -linked fence or brick wall between both properties. Mr. Ceja replied a brick wall. 27 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 Commissioner DeLuna asked if the wall is six feet high. Mr. Ceja answered the wall is five to six feet. Members from the church disagreed. Mr. Ceja said he is not certain if there is a brick wall. From the audience, the applicant exclaimed that they would build a wall. Commissioner Greenwood commented he is sensitive to the opinions shared during the evening. However, he is looking at the proposed project at a land use standpoint. He pointed out that the area is a Service Industrial zone and it is what the City put forth as the regulations and requirements for the applicants. He stated the applicant has met all the requirements. He also stated it is the appropriate location for the proposed use. The proposed use is not a cannabis retail business. He said he is concerned about odor; however, the applicant is an experienced operator. He stated the conditions have the teeth in case an issue were to arise. Commissioner DeLuna asked if it is correct that the applicant offered to build a wall and change the hours of operation on Sundays. The applicant remarked that he would build a brick wall and not operate on Sundays. Commissioner DeLuna stated that is admirable and thanked the applicant. Chairman Pradetto clarified that a condition would need to be added regarding not operating on Sundays. Mr. Ceja replied that is correct. Commissioner DeLuna commented the conditions for no retail sales and construction of a wall needs to be added to the Conditions of Approval as well. Commissioner Holt asked if the applicant would have to return to the City for approval of cultivation activities. Mr. Ceja replied that is correct. Chairman Pradetto asked the Commission how they felt about limiting evening hours when after -school activities and evening meetings take place at the church. MS. SAMAAN confirmed that members have meetings on Thursday, Friday, Saturday, and Sunday from 5:00 p.m. to 9:00 p.m. Chairman Pradetto asked the applicant if they amiable to cease operations at 5:00 p.m. 28 MINUTES REGULAR PLANNING COMMISSION MEETING SEPTEMBER 18, 2018 MR. LAMBERT responded that they are willing to start operations earlier in the day; however, he did not know what the City permits. Mr. Ceja communicated that the City's ordinance does not specify hours of operations. Chairman Pradetto affirmed that the Planning Commission could add a condition for operations to cease at 5:00 p.m. Commissioner DeLuna inquired if operations would cease at 5:00 p.m. on Thursdays, Fridays, and Saturdays and closed on Sundays. Chairman Pradetto stated operations would cease at 5:00 p.m. with no operations on Sundays. Chairman Pradetto moved to waive further reading and adopt Planning Commission No. 2738 approving Case No. CUP 17-0030, with the addition of the following Conditions of Approval: 1) The applicant must build a six -foot -high dividing block wall; 2) no cannabis retail sales; and 3) limiting hours to no operations on Sundays and no operations after 5:00 p.m. any day of the week. The motion was seconded by Commissioner DeLuna and carried by a 4-0 vote (AYES: DeLuna, Greenwood, Holt, and Pradetto; NOES: None; ABSENT: Gregory). XI. MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None XIII. COMMENTS None 29 • • CITY OF NUM DESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL:76o 346-0611 info®ciryorpalmdeeert.org CITY OF PALM DESERT LEGAL NOTICE CASE NO. CUP 17-0030 NOTICE OF A PUBLIC HEARING BEFORE THE PALM DESERT CITY COUNCIL TO CONSIDER AN APPEAL OF A PLANNING COMMISSION ACTION APPROVING A CONDITIONAL USE PERMIT 17-0030 TO ESTABLISH A 10,900-SQUARE-FOOT COMMERCIAL CANNABIS MANUFACTURING FACILITY LOCATED AT 77-700 ENFIELD LANE The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), finds that the proposed project is exempt per Section 15301, Class 1 "Existing Facilities" of the CEQA and that a Notice of Exemption can be adopted as part of this project. Project Location/ Description: Proiect Location: 77-700 Enfield Lane Proiect Description: On September 18, 2018, the Planning Commission approved Conditional Use Permit and Cannabis Regulatory Permit 17-0030 by Resolution No. 2738 for a 10,900- square-foot cannabis manufacturing facility within an existing one-story industrial building located on Enfield Lane, north of Country Club Drive. The business includes offices, packaging rooms, kitchen, storage areas, and warehousing. A detailed security plan and odor control plan are provided as part of these applications. Recommendation: Staff is recommending that the City Council uphold the Planning Commission action, approving the Conditional Use Permit, subject to conditions, for a commercial cannabis business. Public Hearing: The public hearing will be held before the City Council on November 15, 2018, at 4:00 p.m. in the Council Chamber of the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California. Comment Period: The public comment period for this project is from November 3, 2018, to November 15, 2018. Public Review: The Conditional Use Permit and Cannabis Regulatory Permit applications are available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the City Council hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 eceja@cityofpalmdesert. org PUBLISH: DESERT SUN RACHELLE KLASSEN, City Clerk NOVEMBER 3, 2018 Palm Desert City Council 4 na rr¢E 37r.13 WWII OW 43n31e.:.02.042• \x Zf M «PCmw,, 4111411Et 0 MPatIDn nPm11ef1 MEM NINSMILT L®@.RI0'A1 .rIIl 11Ot1N114 GRi:w1 ISN!rCISMYFC91 OM FFA39MO^xmcn•OUVIor OAP ux4 1 h HA Pm 4 Z " h t 4-, a a z M]IA ]111131V5 a» 6 o 0» Oy r T 4v 4'-D"I S'-0 A CONDITIONAL USE PERMIT FOR: P & S VENTURES 11.700 ENFIELD LANE SUITE A1•A2 & B1 42 PALM DESERT, CA. d►/W ALIN171A GABRIEL LUJAN & ASSOCIATES ORAFflM, • UESl4N • LAND PL.AMLINO GABRIEL LUJAN FA41(3AL➢0I0.1i4 36t9470001: Si.5T11. 10i PALM OQSWT, CA pI11 C4,LL(7NI) 5161145 M 15aJ67Ht00 MALL. 04.4Sh p,am mit z rn 6 p D $ 0) p m Z0 C 111 Po w D 0 A -a° u D5f1 1VNOI1ICNOO.. '-nldorecv.-...• 1J ITS AKIPM3L MIC MOMF M00MA uxadceHfFFOi/ARKOIW-+f * ' woz.AK e[ir 5Mea-ao[PKNI-0000iw-ear[iaa Anio=KOINmi'90.Buuwliwu!ao'w NAKE w.wn MAL..nlvrXX•Mmi/nova. OSRwmuaimma ..dgramii (ORIW Salmi n,.ro I Kaman o 5' t 4 • / 1 j DT L' .5'-0' / 27�' /�' • a ro E n N 16'4. ro g) � J ro /51'.F / 0 n 5d' / NOW zmi o f u uO lnqu1sQ L Vary I014UOD n v a 0 roe o G n T-41` 0 ro OM' 3E b' • g A CONDITIONAL USE PERMIT FOR: P&S VENTURES 17-1Ofl ENFIELD LANE SUITE Al •A2 & B141I PALM DESERT, CA. • 0 tri Po to 9 a re ro GABRIEL LUJAN & ASSOCIATES DRAFT1N0 • f]ESILT • LAND F•u1:NFMi GABRIEL LUJAN nclrr OESGNVR 34.-9E7 nr.XFK FT_sm. ID1 PALM OE95RT. CA 93x11 Al- 1.:ow 59F3515 FAX :MA) .6741100 EA "-ih d cp .P... • 3 \ L ■ ■ Distribution Application Appendix Distribution Application Appendix 1. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement operating agreement, and fictitious business name statement. a. The Business is a LLC that is owned by Scott Lambert and Patrick McMahon as a 50/50 partnership. b. Exhibit A 2. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card. a. Exhibit B 3. A list of the license or permit types (including license or permit numbers) held by the applicant that involve the operation of a commercial cannabis business, including the date the license or permit was issued and the jurisdiction or State license authority that issued the license or permit. a. 1 Indoor Commercial Cannabis Cultivation License in Cathedral City License Number: MCL 16-006-C-17 b. 1 Commercial Cannabis Dispensary License in Cathedral City License Number: MCL 16-006-D-17 c. 1 Commercial Cannabis Volatile Manufacturing License in Cathedral City License Number: MCL 16-006-M-17 d. 1 Commercial Cannabis Distribution License in Cathedral City License Number: MCL 16-006-T-17 4. Whether the applicant has been denied a license or permit by the City, any other jurisdiction, and/or the State that involves the operation of a commercial cannabis business. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or State license authority that reviewed the license or permit application, and the date of denial. a. The Applicant has never been denied a license. 5. The proposed commercial cannabis business's physical address, telephone number, website address, and e-mail address. a. 77-700 Enfield Lane Suite Palm Desert, CA 92211. scotte_2000@yahoo.com 6. A list of every fictitious business name the applicant is operating under including the address where the business is located. a. No fictitious businesses name exist. 7. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendre. a. No misdemeanors or felony convictions. 8. Financial Information a. Financial institution's name, the financial institution's address, account type, account number, and the amount of money in the account. No Financial accounts due to Federal Banking ban. b. A list of loans made to the commercial cannabis business. Exhibit B2 i. $150,000 with a 30 month term to Gerald J. McMahon. c. A list of investments made into the commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. No Investments have been made to date. • • Distribution Application Appendix d. A list of all gifts No Gifts. 9. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis business will take place, including but not limited to, limited -access areas. a. Exhibit C 10. A security plan, as a separate document, outlining the proposed security arrangements to deter and prevent unauthorized entrance into limited access areas and theft of cannabis, in accordance with minimum security measures required by state law and measures identified in Section 5.101M.5 of the Palm Desert Municipal Code. The security plan shall be reviewed by the Palm Desert Police Department and the City Manager and shall be exempt from disclosure as a public record pursuant to Government Code Section 6255(a) a. Exhibit D 11. A comprehensive business operations plan that includes the following: a. Business plan. Exhibit E b. Community relations plan. Exhibit F c. Neighborhood responsibility plan Exhibit G d. Odor control plan. Exhibit H e. Insurance. Exhibit 1 f. Budget. Exhibit J 12. The name and address of the owner and lessor of the real property upon which the commercial cannabis business is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a commercial cannabis business will be operated on his or her property. a. Exhibit K 13. Authorization for the city manager to seek verification of the information contained within the application. a. Exhibit L 14. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct. a. Exhibit M 15. A full and complete copy of the applicant's most current application submitted to and approved by the applicable State licensing authority (only applicable on a renewal basis). a. Not Applicable 16. The name, address, telephone number, title, and function of each of the interested parties described below: a. Scott Lambert: 36380 Bankside Drive Cathedral City, CA, 92234 818-621-0288 CEO, will be responsible as CEO for all operations. (50% owner) b. Patrick McMahon: 36380 Bankside Drive Cathedral City, CA, 92234 909 956-4218 Partner: will be responsible for keeping the CEO accountable for all his operations. (50% owner) c. Jason Beck: 36380 Bankside Drive Cathedral City, CA, 92234 (310) 508-9726 Community Relations Manager: will be responsible for all community relations including daily outreach to the local community and neighborhood. 1 Distribution Application Appendix d. Marco Xavier Veloz II: 36380 Bankside Drive Cathedral City, CA, 92234 (760) 844-0488 24-Hr Emergency Contact Manager: will be responsible for all Emergencies and Manage the Location ARTICLES OF ORGANIZATION i Articles of Organization of a Limited Liability Company (LLC) To form a limited liability company in California, you can fill out this form,. and submit for filing along with: - A $70 filing fee. - A separate, non-refundable $15 service fee also must be included, if you drop off the completed form. Important/ LLCs in California may have to pay a minimum $800 yearly tax to the California Franchise Tax Board. For more information, go to https:l/w,vww ttb.ca.gov. LLCs may not provide "professional services," as defined by California Corporations Code sections 13401(a) and 13401.3. Note. Before submitting the completed form, you should consult with a private attorney for advice about your specific business needs. LLC-1 Purpose t) The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company may be organized under the California Revised Uniform Limited Liability Company Act. 201506210224 FILED Secretary of State State of California FEB 2 6 2015 u This Space For Office Use Only For questions about this form, go to www.sos.ca.gov/businesslbe/fiIing-tips.htm LLC Name (List the proposed LLC name exactly as it is to appear on the records of the California Secretary of State.) Q P&S Ventures, LLC Proposed LLC Name Tne name must include: LLC, LL.C., Limited Liability Company, Limited Liability Co., Ltd. Liability Co or Ltd, Liability Company: and may not include: bank, trust, trustee, incorporated, inc., corporation, or Corp„ insurer, or insurance company. For general entity name requirements and restrictions, go to wvnv.sos.ca.gov/bus:nessibelname•availabitity.hirn, LLC Addresses Q a. 2000 Alberta Avenue #19 Venice CA 90291 initial Street Address of Designated Office in CA - Do not list a P.O. Box City (no abbreviations) State Zip b. Initial Marling Address of LLC, if different from 3a City (no abbreviations) Stale Zip Service of Process (List a California resident or a California registered corporate agent that agrees to be your initial agent to accept service of process in case your LLC is sued You may list any adult who lives in California. You may not list an LLC as the agent Do not list an address if the agent is a Catifornia registered corporate agent as the address for service of process is already on file ) ® a. Patrick Goldberg McMahon Agent's Name b. 2000 Alberta Avenue #19 Venice CA 90291 Agent's Street Address (if agent is not a corporation) - Do not list a P.O. Box City (no abbreviations) State Zip Management (Check only one.) Q The LLC will be managed by: a - One Manager ✓- More Than One Manager Alt Limited Liability Company Member(s) This form must be signed by each organizer. If yeu need more space, attach extra pages that are 1•sided and on standard letter -sized paper $ i2" x1 1 "). Ali attachments are made part of these articles of organization. Organizer- Sign here Make chec;Jmoney order payable to. Secretary of State Upon filing, we will return one (1) uncertified copy of your filed document for free, and will certify the copy upon request and payment of a $5 certification fee. Patrick Goldberg McMahon Print your name here By Mail Secretary of State Business Entities, P.O. Box 944228 Sacramento, CA 94244-2280 Corporabons Code §§ 17701.114, 17701 C6, 17701 ; ,, l 7702.01, Revenue and Taxation Cede § 1,94i LLC.1 (nEV 0112014) Drop -Off Secretary of State 1500 11th Street., 3rd Ficor Sacramento, CA 95814 2014 California Secretary e' Sla n WKW aos ce • r RECEIVED MAR 07 2: I hereby certify the fixeciong PORn •kik aand copy dm.vim mgr. naoro in er anmvy Oro Calm. Seaatary of State'a alike. MAR 0 3 2015 • Date: `()�(1''7'QQ ALE( !CILIA SeSecwafy of State • LLC-1 Articles of Organization • of a Limited Liability Company (LLC) To form a limited liability company in California, you can fill out this form, and submit for filing along with. — A $70 filing fee. — A separate, non-refundable $15 service fee eisa must be included, if you drop off the completed form. important! LLCs in California may have to pay a minimum $800 yearly tax to the California Franchise Tax Board. For more information, go to https //w w.ftb.ca.gov. LLCs may not provide "professional services," as defined by California Corporations Code sections 13401(a) and 13401 3. Note Before submitting the completed form, you should consult with a private attorney for advice about your specific business needs. Purpose 0 The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liablity company may be organizer' under the California Revised Uniform Limited Liability Company Act. 2.01506210224 FILED Secretary of State State of California FEB 2 6 2015 L, This Space For Office Use Only For questions about this form, go to wwvv.sos.ca.gov/busrnesste/filing-tips.htm. LLC Name (List the proposed I. LC name exactly as it is to appear an the records of the California Secretary of State.) P&S Ventures, LLC Proposed LLC Name The name must include: LLC, L.L.C., Limited Liability Company, Limited Liability Co., Ltd. Liability Co. or Ltd. Liability Company; and may not include: bank, trust, trustee, incorporated, inc., corporation, or corp., insurer, or insurance company. For general entity name requirements and restrictions, go to www sos.ca.govfbus:ness/betname-avafiatil,ty.htrn. LLC Addresses 0 a. 2000 Alberta Avenue #19 initial Street Address of Designated Office in _ CDono_ s_ a P_O. Box b. lndiai MeihngAddress of LLC, if different from 30 Venice City no abbreviations) City (no abbreviations) CA 90291 State Zip State Zip Service of Process (List a California resident or a California registered corporate agent that agrees to be your initial agent to accept service cf process in case your LLC is seed You may list any adult who lives in California. You may not fist an LLC as the agent Do not list an address if the agent is a California registered corporate agent as the address for service of process is already on file.) ® a. Patrick Goldberg McMahon Agent's Name b 2000 Alberta Avenue #19 Venice Agent's Street Address (if agent is not a corporation) - Do not List a P.O. Box City (no abbreviations) Management (Check only cne ) 0 The LLC will be managed by One Manager ✓ More Than One Manager CA 90291. State Zip All Limited Liability Company Member(s) This form must be signed by each organizer. If you need more space, attach extra pages that are 1-sided and on standard tester -sized paper 31))2" x,11"). At attachments are made part of these articles of organization. fr Organizer- Sign here 410 Make check/money order payable to. Secretary of State Upon fling, we will return one (1) uncertified copy of your filed 0 i document for tree, and will certify the copy upon request and 1 payment of a $5 certification fee. Corporations Code §§ 1770104. 17701 eft. 1770t -,3, LIC-1 (REV 01/2014) Patrick Goldberg McMahon Print your name here By Mail Secretary Of State Business Entities, P.O. Box 94422E1 Sacramento, CA 94244-2250 702 01, Revenue and Taxation Code § 1 /34 Drop -Off Secretary of State 1500 11th Street., 3rd ficor Sacramento, CA 95814 2019 California Secretary c' Sla,c W .'W Sas.Cii.t:CV,i)Ustdcss;,,C • RECEIVED MAR 07 IImrio, WO, pal Im lowing a..abl — tw.ln m•Im tau. and mmq Copt a ImrOrigin" rimed In T. ambit al /8 Collards Semen as Sa4y aKa. MAR 0 3 2015 Data: +LE<b/ u,A S a.twy asm DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED CALIFORNIA STATE BOARD OF EQUALIZATION SELLER'S PERMIT ACCOUNT NUMBER 109/19/2016 SR EHC 102-981888 PBS VENTURES, LLC 36380 BANKSIDE DR CATHEDRAL CITY, CA 92234-7623 1 J IS HERLBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE PERSONAL PROPERTY AT THE ABOVE LOCATION THIS PERMIT IS VALID ONLY AT THE ABOVE ADDRESS. THIS PERMIT IS VALID UNTIL REVOKED OR CANCELED AND IS NOt TRANSFERABLE IF YOU SELL YOUR BUSINESS OR DROP OUT OF A PARTNERSHIP, NOTIFY US OR YOU COULD BE RESPONSIBLE FOR SALES AND USE TAXES OWED BY THE NEW OPERATOR OF THE BUSINESS. NOTICE TO PERMITTEE. You are required to obey all Federal and State taws that regulate or control your business. This permit does not allow you to do otherwise. Not valid at any other address For general tax questions, please call our Customer Service Center at 1-800-400-7115 (TTY:711). For information on your rights, contact the Taxpayers' Rights Advocate office at 1-888-324-2798 or 1-916-324-2798. BOE-442-R REV. 16 (11.14) A MESSAGE TO OUR NEW PERMIT HOLDER As a seller, you have rights and responsibilities under the Sales and U :c Tax Law. In order to assist you in your endeavor and to better understand the law, we offer the following sources u: help: • Visiting our website at www.boe.ca.gov • Visiting a field office • Attending a Basic Safes and Use Tax Law class offered at one of our field offices • Sending your questions In writing to any one of our offices • Calling our toll -free Customer Service Center at 1-800-400-7115 (TTY:711) As a seller, you have the right to issue resale certificates for merchandise that you intend to resell. You also have the responsibility of not misusing resale certificates. While the sales tax is imposed upon the retailer, • You have the right to seek reimbursement of the tax from your customer • You are responsible for filing and paying your sales and use tax returns timely • You have the right to be treated in a fair and equitable manner by the employees of the California State Board of Equalization (BOE) • You are responsible for following the regulations set forth by the BOE As a seller, you are expected to maintain the normal books and records of a prudent businessperson. You are required to maintain these books and records for no less than four years, and make them available for inspection by a BOE representative when requested. You are also expected to notify us If you are buying, selling, adding a location, or discontinuing your business, adding or dropping a partner, officer, or member, or when you are moving any or all of your business locations. If it becomes necessary to surrender this permit, you should only do so by mailing it to a BOE office, or giving it to a BOE representative. If you would like to know more about your rights as a taxpayer. or if you are unable to resolve an issue with the BOE, please contact the Taxpayers' Rights Advocate office for help by calling loll -free, 1-888-324-2798 or 1-916-324-2798 Their fax number is 1-916-323-3319. Please post this permit at the address for which It was issued and at a location visible to your customers. CALIFORNIA STATE BOARD OF EOUALIZATION Sales and Use Tax Department DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED CALIFORNIA STATE BOARD OF EQUALIZATION SELLER'S PERMIT ACCOUNT NUMBER 109/19/2016 SR EHC 102-981888 PbS VENTURES, LLC 36380 BANKSIDE DR CATHEDRAL CITY, CA 92234-7623 1 L J I5 HEREBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE PERSONAL PROPERTY AT THE ABOVE LOCATION THIS PERMIT IS VALID ONLY AT THE ABOVE ADDRESS. THIS PERMIT 15 VALID UNTIL REVOKED OR CANCELED AND IS NOT TRANSFERABLE IF YOU SELL YOUR BUSINESS OR DROP OUT OF A PARTNERSHIP, NOTIFY US OR YOU COULD BE RESPONSIBLE FOR SALES AND USE TAXES OWED BY THE NEW OPERATOR OF THE BUSINESS NOTICE TO PERMITTEE: You are required to obey all Federal and State taws that regulate or control your business. This permit does not allow you to do otherwise. Not vatid at any other address For general tax questions, please call our Customer Service Center at 1-800-400-7115 (TTY:711). For information on your rights, contact the Taxpayers' Rights Advocate office at 1-888-324-2798 or 1-916-324-2798. BOE-442-R REV. 16 (11-14) A MESSAGE TO OUR NEW PERMIT HOLDER As a seller, you have rights and responsibilities under the Sales and Use Tax Law. In order to assist you in your endeavor and to better understand the law, we offer the following sources of help: • Visiting our website at www.boe.ca.gov • Visiting a field office • Attending a Basic Sales and Use Tax Law class offered at one of our field offices • Sending your questions in writing to any one of our offices • Calling our toil -free Customer Service Center at 1-800-400-7115 (TTY: /11) As a seller, you have the right to issue resale certificates for merchandise that you Intend to resell. You also have the responsibility of not misusing resale certificates. While the sales tax is imposed upon the retailer, • You have the right to seek reimbursement of the tax from your customer • You are responsible for filing and paying your sales and use tax returns timely • You have the right to be treated in a fair and equitable manner by the employees of the California State Board of Equalization (BOE) • You are responsible for following the regulations set forth by the BOE As a seller, you are expected to maintain the normal books and records of a prudent businessperson. You are required to maintain these books and records for no less than four years, and make them available for Inspection by a BOE representative when requested. You are also expected to notify us If you are buying, selling, adding a location, or discontinuing your business, adding or dropping a partner, officer, or member, or when you are moving any or all of your business locations. it it becomes necessary to surrender this perrnit, you should only do so by mailing it to a BOE office, or giving it to a BOE representative. If you would like to know more about your rights as a taxpayer, or if you are unable to resolve an issue with the BOE, please contact the Taxpayers' Rights Advocate office for help by calling roll -tree. 1-888-324-2798 or 1-916-324-2798. Their fax number is 1-916-323-3319. Please post this permit at the address for which it was issued and at a location visible to your customers. CALIFORNIA STATE BOARD OF EQUALIZATION Sales and Use Tax Department r 9/26/2016 Registration Status 09/26/16 California State : OV Board of Equalization III FAQ I MAIN MENU I BOE ELECTRONIC SERVICES I LOG OUT III License fee rates have increased as of June 9, 2016 for new Cigarette and Tobacco Products Licenses. Registration Status For assistance during regular business hours call 1.800.400-7115 (TTY:711) Registration id: 1530614 PATRICK G MCMAHON WO Last Updated By PATRICK G MCMAHON on 09/26/2016 at 11:23:58 AM Owner Name: P&S VENTURES, LLC Application Status: Submitted Aooiication Detail Gengral Publications Online Services Survey Express Login Code: t962016k *Please Note: Once you have submitted your application, account information can only be updated by contacting the 80E. (:;eis�.�'. r t nnit Registration Status: Issued Your registration with the BOE is complete, please review the following information: Reporting Basis: Fiscal Yearly Reporting Period: 07/01/2016 - 06/30/2017 Due Date: 07/31/2017 A security deposit is not required at this time. However, a security deposit may still be required in the future. Account Number: 102981888 Click here to review and print your Reoistration Information Packet and permit/license httpsJ/efile.boe.ca.goy/erecyregistration/status.boe?arc=295428# 1/1 9/26/2016 Registration Status 09/26/16 • fir California State V Board of Equalization (II EMI I MAIN MENU I BOE ELECTRONIC SERVICES I LOG OUT If) License fee rates have increased as of June 9, 2016 for new Cigarette and Tobacco Products Licenses. Registration Status For assistance during regular business hours call 1.800.400-7115 (TTY:711) Registration Id: 1530614 PATRICK G MCMAHON (edit) Last Updated By PATRICK G MCMAHON on 09/26/2016 at 11:23:58 AM Owner Name: P&S VENTURES, LLC Application Status: Submitted fAooiication Detaij General Publication] Online Services Survey Express Login Code: t962016k 'P/ease Note: Once you have submitted your application, account information can only be updated by contacting the BOE. 15,.1.1rr's oorrnit Registration Status: issued Your registration with the BOE is complete, please review the following information: Reporting Basis: Fiscal Yearly Reporting Period: 07/01 /2016.06/30/2017 Due Date: 07/31/2017 A security deposit is not required at this time. However, a security deposit may still be required in the future. Account Number: 102981888 Click here to review and print your Ezustration Information Packet and permit/license t>ttps i/efile.boe.ca.gov/ereglregistration/status.boe?cid=295428# 1/1 • City of Los Angeles Office of Finance 200 North Spring St. RBI 101. Los Angeles. CA 90012 `Print Fri * 'Aloft by Email.` BUSINESS TAX APPLICATION PLEASE NOTE that it you are Involved with any typo of SALES ACTIVITIES. either RETAIL or WHOLESALE. you are REQUIRED to . so flu out the Tobacco RataileYs Questionnalre/Appscation The following information Is subject to disclosure. Business Type (check one): 0 Indiv' ual ❑ Partnership 0 Corporation LLC ❑ Trust Peaaeprint Name:type: f _ ` Q 4. % ` L 1-*C0 Legal t�....[�i �"��+Ak4 7 Donotuses Address:Ddd (:�ere t�1�..�UIA g.l 9 -A4 Business a Do not use P. O. Box here Address City C tatlz/ ,cyer Please check appropriate box ❑ Cah[n rout Location kesidence CA j / r Business Name (A): Care Of (C/O): CT cz-3l� �jj .;.i Mailingitithl Address: � }( S41. j.-�- W If different from Business d s Street ress or i?O. Box City A_ Startle' vjA18-- Please check appropriate box Kommercial t. bon E.]Residence Starting Date of Business: Month Day ,2 C;) Year 2a1 �1 Social Security No. (SSN) - OR - Federal iiy4r identification No. (F : a 1 4 (34-64 Sales Tax Number (Seller's Pe ) � �_ _ G.F-4 Description of t%..s r•• 1� � "� P Business: (Provide in Detail) Ac- ,i1q eb Address (optional): • Primary Business/Professional Activity Cod M 1 + 1Q Business Phone Number: �� T ' {C�4 Secondary Business/Professional Activity Code: Gross Receiots2: Of your business began prior to the current year. please complete the gross receipts Information b ow) Activity: 2008 2009 2010 2011 2012 Please Note; A minim ;r - xbs,siue !lased Contact Person: rr .i Contact Phone Number: I declare, under penalty of perjury under the laws of gtornla, that to the best of my knowledge the t going is t�corr and complete?' %*% e�' ect Signature of Owner or Agent Print name of Owner or Agent Daytime Telephone Number 2013 2014 2015 —9. u s a y(ies) for the first y ate: • tin 1 :-. aN...O... 1 This is the 6-digit Primary / Principal Business or Profession Activity Code reported on your one that comprises at least 91,000,000 and 40% of your gross receipts. Go to httgulinnnance 2 If your business is boated within the City of Los Angeles and a portion of located outside the City and a portion of your gross revenue is derivedfolk your tax liability. •_tr�rOO 7ue to the large number of various business activities described For specific activities and rates, contact the Ofnce of 4 By completing this form and submitting it to the 0111%q, the same legal effect, validity and enforceability of ayorm legally represents a document sent by you er your legal rep. Federal Tax Return. A Secondary business activity is Jadt/fonn1NAlCSCOOES.pdf for a MAKS code listing. tt ed from outside the City, or your business is en applicable apportionment formulas may reduce .197, it is not practical to list each separately. ty.orgTnsnce. as email, you agree that the submitted torm has or in person. You also agree that the aforementioned form Asa coveted entity under Tee 11 or ere M s $Ca» site tlYabiWiss Art swats or Lot Mesas does act disaimM.ts on tier basis of di.eb,Yity and, upon moves', ..ut pro.ido r.s.onable accommodation to ensure equal access to Ss program.. services, end adlvtesa STATE OF CALIFORNIA -DEPARTMENT OF BUSINESS OVERSIGHT SAMPLE - DOCUMENT TITLE DBO - 260.102.14(c) (Register 2009, No. 39) (Rev. 08-13) (Department of Business Oversight Use Only) DEPARTMENT OF BUSINESS OVERSIGHT FILE NO., if any: l'ee paid $ Receipt No. Insert File number(s) of Previous Filings Before the Department, if any. Fee: $25.00 $35.00 $50.00 $150.00 $300.00 (Circ ppropriate amount of fee. See Corporations Code Section 25608(c)) A. Check one: Transaction under l_ Section 25102(f) Rule 260.103. ELECTRONIC FILING REQUIREMENT AND HARDSHIP EXCEPTION: This notice must be filed electronically through the Internet process made available by the Department of Business Oversight at www.dbo.ca. jgov, unless the issuer claims the hardship exception as described in Number 8 below. I. Name of Issuer: P & S VENTURES, LLC 2. Address of Issuer: 2000 ALBERTA AVE, STE 19 VENICE, CA 90291 Street City State Zip Mailing Address: SAME Street City State Zip 3. Area Code and Telephone Number: 908-956-4218 4. Issuer's state (or other jurisdiction) of incorporation or organization: CAL I1 F TA 5. Title of class or classes of securities sold in. transaction: LLC INTEREST 6. The value of the securities sold or proposed to be sold in the transaction, determined in accordance with Corporations Code Sec. 25608(g) in connection with the fee required upon filing this notice, is (fee based on amount shown in line (iii) under "Total Offering"): California Total Offering (a)(i) in money $ 1,000 $ 1,000 AI (ii) in consideration other than money $ $ (iii) total of (i) and (ii) $ 1,000 $ 1, e n (b) jj Change in rights, preferences, privileges or restrictions of or on outstanding securities ($25. fee.) (See Rule 260.103.) STATE OF CALIFORNIA -DEPARTMENT OF BUSINESS OVERSIGHT SAMPLE - DOCUMENT TITLE DBO - 260.102.14(c) (Register 2009, No. 39) (Rev. 08-13) 2 of 5 4101. Type of filing under Securities Act of 1933, if applicable: NONE 8. Hardship Exception for electronic filing. An issuer may file this paper notice in person or by mail only if either of the following exceptions apply. The issuer shall check applicable box and include the reason(s) and description(s) for the hardship exception in the space provided. ❑ Computer equipment including hardware and software is unavailable to the issuer without unreasonable burden or expense. If this is the case, describe below both of the following; the reason(s) that the computer equipment including hardware and software is unavailable without unreasonable burden or expense, and the description(s) of the unreasonable burden or expense. The issuer cannot obtain and provide information (including credit card or other identifying information) requested on the Department's electronic notice or through the Internet filing process. If this is the case, describe below both of the following: the reason(s) that the issuer cannot obtain and provide the requested information on the electronic notice or through the Internet filing process without unreasonable burden or expense, and the description(s) of the unreasonable burden or expense to the issuer to make the electronic filing. After checking the applicable hardship exception above, the issuer shall describe below the reason(s) and description(s) for that hardship exception. (If additional space is needed, attach a separate sheet to this notice.) DBO SYSTEM DOWN 9. j Check if issuer already has a consent to service of process on file with the Commissioner. (instruction: Eac issuer (other than a California Corporation) filing a notice under Section 25102(f) must file a consent to service of process (Form 260.165), unless it already has a consent to service on file with the Commissioner. If no consent to service of process is on file with the Commissioner, attach the consent to this notice.) 10. Authorized Signature on behalf of issuer PATRICK MCMAHON, MANAGER Print name and title of signatory JANUARY 15, 2016 Date Name, Address and Phone number of contact person: PATRICK MCMAHON, MANAGER 908-956-4218 2D00 ALBERTA AVE. STE 19 "SNICK, CA 9.0 1 State of California Secretary of State STATEMENT OF INFORMATION (Limited Liability Company) Filing Fee $20.00. If this is an amendment, see instructions. IMPORTANT — READ INSTRUCTIONS BEFORE COMPLETING THIS FORM 1. UMITED LIABILITY COMPANY NAME P&S VENTURES, LLC File Number and State or Place of Organization 2. SECRETARY OF STATE FILE NUMBER 201506210224 This Space For Filing Use Only 13. STATE OR PLACE OF ORGANIZATION (If formed outside of California) No Change Statement 4, If there have been any changes to the Information contained In the last Statement of Information filed with the California Secretary of State, or no Statement of information has been previously Med, thls form must be completed in Its entirety. 17 If there has been no change in any of the information contained in the last Statement of Information filed with the Califomia Secretary of State, check the box and proceed to Item 15. Complete Addresses for the Following (Do not abbreviate the name of the city. Items 5 and 7 cannot be P.O. Boxes.) 6. STREET ADDRESS OF PRINCIPAL OFFICE CITY STATE ZIP CODE 2000 ALBERTA AVE, STE 19 VENICE CA 90291 6. MAILING ADDRESS OF LLC, IF DIFFERENT THAN ITEM 5 1427 N. WILCOX AVE 7, STREET ADDRESS OF CALIFORNIA OFFICE 2000 ALBERTA AVE, STE 19 Name and Complete Address of the Chief Executive Officer, If Any 8. NAME ADDRESS CITY STATE 21P CODE CITY STATE ZIP CODE HOLLYWOOD CA 90028 CITY STATE ZIP CODE VENICE CA 90291 Name and Complete Address of Any Manager or Managers, or If None Have Been Appointed or Elected, Provide the Name and Address of Each Member (Attach additional pages, if necessary.) 9. NAME ADDRESS PATRICK G. MCMAHON 2000 ALBERTA AVE, STE 19 10. NAME ADDRESS SCOTT E. LAMBERT 2000 ALBERTA AVE, STE 19 11. NAME ADDRESS CITY STATE ZIP CODE VENICE CA 90291 CITY STATE ZIP CODE VENICE CA 90291 CITY STATE ZIP CODE Agent for Service of Process It the agent is an individual, the agent must reside in California and Item 13 must be completed with a California address, a P.O. Box Is not acceptable. It the agent is a corporation, the agent must have on file with the Califomia Secretary of State a certificate pursuant to California Corporations Code section 1505 and Item 13 must be left blank 12. NAME OF AGENT FOR SERVICE OF PROCESS PATRICK G. MCMAHON 13. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA, IF AN INDIVIDUAL CITY STATE ZIP CODE 2000 ALBERTA AVE, STE 19 VENICE CA 90291 Type of Business 14. DESCRIBE THE TYPE OF BUSINESS OF THE UMITED LIABILITY COMPANY CONSULTING SERVICES 5. THE INFORMATION CONTAINED HEREIN, INCLUDING ANY ATTACHMENTS, IS TRUE AND CORRECT. JAN. 15, 2016 PATRICK G. MCMAHON MANAGER DATE TYPE OR PRINT NAME OF PERSON COMPLETING THE FORM TITLE SIGNATURE LLC-12 (REV 01/2014) APPROVED 9Y SECRETARY OF STATE • • • Secretary of State Business Programs Division Statement of Information, P.O. Box 944230, Sacramento, CA 94244-2300 Changes to Requests for Copies of California Statements of Information Effective January 1, 2013 As of January 1, 2013, legislative changes from Senate Bill 1532 impact Statements of Information filed with the California Secretary of State's office on an annual and biennial basis. California Secretary of State will no longer endorse or certify customer -provided copies of Statements of Information. A copy of the filed statement may be requested at the time of filing by submitting a written request with your Statement of Information and including additional copy fees along with your Statement of Infornration fees. Copies are $ I for the first page and $ .50 for each additional page of the document. An additional $5 fee is required if requesting certification of the copy. If no fee is included with a submitted Statement of Information, copies can be obtained 3-4 days after tiling by submitting a Business Entities Records Order Form in person to our Sacramento office or by mail. NOTE: The fastest way for a corporation to file their required Statement of lnformation is to file online using our online E-File Statements of Information for Corporations at httns://businessfitines.sos.ca.eovi and request a copy over the counter in our Sacramento office, if a copy or certified copy is needed. For the latest forms and fees, as well as information on SB 1532, visit us at www.sos.ca.gov. Updated forms are available on the Secretary of State website. SB 1532 Annual/Biennial Statements of Information (Rev. 01/11/2013) Califomia Secretary of State www.sos.ca.gov/business/be (916) 657-5448 Item 5. —. Item 6. Instructions for Comoletina Form LLC-12 Every domestic and registered foreign limited liability company shall file a Statement of Information with the Secretary of State, within 90 •days after the filing of its original Articles of Organization or Application for Registration. and biennially thereafter during the applicable filing period. The applicable filing period for a limited liability company is the calendar month during which its original Articles of Organization or Application for Registration were filed and the immediately preceding five calendar months. A limited liability company is required to file this statement even though it may not be actively engaged in business at the time this statement is due. Changes to information contained in a previously fled statement can be made by fling a new form, completed in its entirety. Legal Authority: Statutory filing provisions are found in California Corporations Code section 17702.09, unless otherwise indicated. All subsequent statutory references are to the California Corporations Code, unless otherwise stated. Failure to file this Statement of Information by the due date will result in the assessment of a $250.00 penalty. (Sections 17713.07(b) and 17713.09; California Revenue and Taxation Code section 19141.) Filing Fees: The fee for filing the initial or biennial Statement of Information is $20.00. Checks should be made payable to the Secretary of State. 11 this statement is being fled to change any information on a previously filed statement and is being filed outside the applicable filing period, as defined above. no fee is required. Copies: To get a copy of the filed statement, include a separate request and payment for copy fees when the statement is submitted. Copy fees are $1.00 for the first page and $.50 for each additional page. For certified copies, there is an additional $5.00 certification fee, per copy. Complete the Statement of Information (Form LLC-12) as follows: Item 1. Enter the name of the limited liability company exactly as it is of record with the California Secretary of State. Item 2. Enter the limited liability company number issued by the California Secretary of State. Item 3. Enter the state or place under the laws of which the limited liability company is organized. Item 4. If no Statement of Information has ever been filed or if there has been any change to the last Statement of Information filed with the Secretary of State, including a change to any address, complete this form in its entirety. If there has been no change in the information contained in the last Statement of Information filed with the Secretary of State, check the box and proceed to Item 15. Enter the complete street address, city, state and zip code of the limited liability company's principal office. Please do not enter a P.O. Box address or abbreviate the name of the city. Enter the complete mailing address, city, state and zip code of the limited liability company if different from Item 5. This address will be used for mailing purposes. Item 7. If the company is domestic. enter the complete street address, city and zip code of the office in Califomia that is required to be maintained pursuant to Section 17701.13. If the company is foreign, enter the complete street address, city and zip code of the principle business office in California, if any. Please do not enter a P.O. Box address or abbreviate the name of the city. Item 8. Enter the name and complete business or residential address of the chief executive officer, if any. Please do not abbreviate the name of the city. Items Enter the name and complete business or residential address of any manager or managers, appointed or elected in accordance 9-11. with the Articles of Organization or Operating Agreement, or if no manager has been so elected or appointed, the name and business or residential address of each member. Attach additional pages, if necessary. Please do not abbreviate the name of the city. Item 12. Enter the name of the agent for service of process in California. An agent is an individual (manager, member or any other person, whether or not affiliated with the company) who resides in California or a corporation designated to accept service of process if the company is sued. The agent must agree to accept service of process on behalf of the company prior to designation. Note: Before a corporation is designated as agent, that corporation must have previously fled with the Califomia Secretary of State, a certificate pursuant to Section 1505. Note, a limited liability company cannot act as its own agent and no domestic or foreign corporation may file pursuant to Section 1505 unless the corporation is currently authorized to engage in business in Califomia and is in good standing in the records of the California Secretary of State. If an individual is designated as agent, complete Items 12 end 13. If a corporation is designated as agent, complete Item 12 and proceed to Item 14 (do not complete Item 13). Item 13. If an individual is designated as agent for service of process, enter a business or residential street address in California. (A P.O. Box address is not acceptable). Please do not enter In care or (Go) or abbreviate the name of the city. If a corporation is designated as agent, leave Item 13 blank and proceed to Item 14. Item 14. Briefly describe the general type of business that constitutes the principal business activity of the limited liability company. Item 15. Type or print the name and title of the person completing this form and enter the date this form was completed. Completed forms along with the applicable fees can be mailed to Secretary of State, Statement of Information Unit, P.O. Box 944230, Sacramento, CA 94244-2300 or delivered in person (drop off) to the Sacramento office, 1500 11th Street. Sacramento. CA 95814. If you are not completing this form online, please type or leuibly print in black or blue ink. This form must not be altered. • IRS INTEA ARNTALLVENUESERVICE NREVERY CINCINNATI OH 45999.-0023 P & S VENTURES LLC PATRICK G MCMAHON MBR 2000 ALBERTA AVE STE 19 VENICE, CA 90291 Date of this notice: 01-19-2016 Employer Identification Number: 81-1140764 Form: SS-4 Number of this notice: CP 575 B For assistance you may call us at: 1-800-829-4933 IF YOU WRITE, ATTACH THE STUB AT THE END OF THIS NOTICE. WE ASSIGNED YOU AN EMPLOYER IDENTIFICATION NUMBER Thank you for applying for an Employer Identification Number (EIN). We assigned ycu EIN 81-1140764. This FIN will identify you, your business accounts, tax returns, and documents, even if you have no employees. Please keep this notice in your permanent records. When filing tax documents, payments, and related correspondence, it is very important that you use your EIN and complete name and address exactly as shown above. Any variation may cause a delay in processing, result in incorrect information in your account, or even cause you to be assigned more than one EIN. If the information is not correct as shown above, please make the correction using the attached tear off stub and return it to us. Based on the information received from you or your representative, you must file the following form(s) by the date(s) shown. Form 1065 04/15/2016 If you have questions about the form(s) or the due date(s) shown, you can call us at the phone number or write to us at the address shown at the top of this notice. If you need help in determining your annual accounting period (tax year), see Publication 538, Accounting Periods and Methods. We assigned you a tax classification based on information obtained from you or your representative. It is not a legal determination of your tax classification, and is not binding on the IRS. If you want a legal determination of your tax classification, you may request a private letter ruling from the IRS under the guidelines in Revenue Procedure 2004-1, 2004-1 I.R.B. 1 (or superseding Revenue Procedure for the year at issue). Note: Certain tax classification elections can be requested by filing Form 8832, Entity Classification Election. See Form 8832 and its instructions for additional information. A limited liability company (LLC) may file Form 8832, Entity Classification Election, and elect to be classified as an association taxable as a corporation. If the LLC is eligible to be treated as a corporation that meets certain tests and it will be electing S corporation status, it must timely file Form 2553, Election by a Small Business Corporation. The LLC will be treated as a corporation as of the effective date of the S corporation election and does not need to file Form 8832. To obtain tax forms and publications, including those referenced in this notice, visit our Web site at www.irs.gov. If you do not have access to the Internet, call 1-800-829-3676 (TTY/TDD 1-800-829-4059) or visit your local IRS office. (IRS USE ONLY) 575B 01-19-2016. P&SV B 9999999999 SS-4 IMPORTANT REM/NDERS: * Keep a copy of this notice in your permanent records. This notice is issued only one time and the IRS will not be able to generate a duplicate copy for you. You may give a copy of this document to anyone asking for proof of your EIN. * Use this EIN and your name exactly as they appear at the top of this notice on all your federal tax forms. * Refer to this EIN on your tax -related correspondence and documents. If you have questions about your EIN, you can call us at the phone number or write to us at the address shown at the top of this notice. If you write, please tear off the stub at the bottom of this notice and send it along with your letter. if you do not need to write us, do not complete and return the stub. Your name control associated with this EIN is P&SV. You will need to provide this information, along with your EIN, if you file your returns electronically. Thank you for your cooperation. Keep this part for your records. CP 575 B (Rev. 7-2007) Return this part with any correspondence so we may identify your account. Please correct any errors in your name or address. CP 575 B 9999999999 Your Telephone Number Best Time to Cai1 DATE OF THIS NOTICE: 01-19-2016 ( ) - EMPLOYER IDENTIFICATION NUMBER: 81-1140764 FORM: SS-4 NOBOD INTERNAL REVENUE SERVICE P & S VENTURES LLC CINCINNATI 0H 45999-0023 PATRICK G MCMAHON MBR 2000 ALBERTA AVE STE 19 VENICE, CA 90291 1/19/2016 EIN Assistant Your T EIN Irtdviduai Request - Online Application 5h.rhM'f�ii4,9S� 7 i,Ct.J J'•� > lase, . S. E9 Confirmation Summary of your Information Plesse review the information you are about to submit If any of Ore information below is Incorrect you wit need b start a new aoobratton, Click the "Submit" button at the bottom of the page to ncelve your EIN. Organization Type: LLC LLC Information Legel name: P 4 3 VENTURES LLC County: LOS ANGELES State/Territory: CA Start dale: FEBRUARY 2016 Closing month of accounting year: DECEMBER (The dosing month of the accounting year Is defaulted b December due to your organization type. To change your dosing month of accounting year, complob Form 1128.) Stab/Territory where articles of organization are (or will be) filed: Addresses Physical Location. Phone Number. Responsible Party Name: SSN1rrIN. CA 2000 ALBERTA AVE STE 19 VENICE CA 00291 908454-/210 PATRICK G MCMAHON MBR XX-XX-2700 Principal Business Activity What your busmessloryanization does: SERVICE Principal products/services: MANAGEMENT CONSULTING Additional LLC information Owns a 55,000 pounds or greater highway motor vehicle: NO Involves gambling/wagering' NO involves alcohol, tobacco or firearms: NO Files Form 720 (Quarterly Federal Excise Tex Return): NO Has employees who receive Forms W-2: NO Reason for Applying: STARTED A NEW BUSINESS We strongly recommend you print this summary papa for your records as this will be your only copy of the applcation. You will not be able to return to this page after you cock the `Submit" button. Click `SubmIr to send your request and receive your EIN. Once you submk, please wait while yaw application is Ming processed. It can take up to two minutes for your application to M processed. Help Topics y ,ot is Form 11287 tdtpsi/sa,www4.irs.gov/mock n ini ividual/verify-informa ionjsp 1/1 1/19/2016 EIN Inc vidual Request- Online Application rr'C'1 lvinyil ��. J EIN Assistant Yo If k,.,U,�� Summary of your information Please review the information you art about to submit If any of the Information below is incorrect. you wi0 need to elan a new aoolicatigp, Click the "Submit" button et the bottom of the page to receive your EN. Organization Type: LLC LLC Information Legal name: County: StateiTemtory: Stan date: Closing month of accounting year, State/Territory where articles of organization ate (or will be) bled: Addresses Physical Location: Phone Number: Responsible Party Name: SSNImN: Prindpal Business Activity Whet your businessrorganizabon does: Prinopsi productsfservices: Addltionel LLC Information Owns a 55,000 pounds or greeter highway motor vehicle: Involves gamblingtwagering: involves alcohol, tobacco or firearms: Files Form 720 (Quarterly Federal Exdso Tax Rotum). Has employees who receive Forms W-2: Reason for Applying: P VENTURES LLC LOS ANGELES CA FEBRUARY 201E DECEMBER (The closing month of the accounting year is defaulted to December due to your organization type. To change your dosing month of accounting year. complete Form t 12¢,) CA 2000 ALBERTA AVE STE 19 VENICE CA 90291 9011-956 4121a PATRICK G MCMAHON MBR XXX-XX.2760 SERVICE MANAGEMENT CONSULTING NO NO NO NO NO STARTED A NEW BUSINESS We strongly recommend you print this summary page for your records as this wm be your only copy of the app9cebon. You will not be able to return to ilea page after you click the "Submit" button. Click "Submit- to send your request and receive your EN. tbmh� Once you submit. please wait while your application is being prates sad. can tak• up to two minutes for your application to be processed. 5. EN ConM1madon Help Topics © What is Farm 11282 httpsJlsa.WWw4.irs.yov/moLleitYndivid eiNsisify-inform ionjsp 111 Font SS-4 (Rev. January 2010) °spa4~1, or er Treasury Interne) Revenue Service Application for Employer identification Number (For use by ernpioyers, corporations, partnerships, trusts, estates, churches, government agencies, Indian trace entities, certain individuals, and others.) ► See separate Mijructions for each line. ► Keep a copy for your records. ?td ttpme or e'. om lb '" 1► .�` 2 Trade name of bull different from name on line 1) A re u 4a Mai ddross (A,vtto st O, box) r dress d enter a P.O.` ) o. tat It IP ¢f foreig 'nstruct)0� 'City, state, and ZIP code (if foreign, see instructions) G eas is located OMB No. 1515-0003 8— 114 o�6Ui- 8a 8c 9a 'I`', : . fij-OJb Is this application for a limited liability company (LLC) (or 8b a foreign equivalent)? V44,Yes ❑ No If 8a is "Yes!" was the LLC organized in the United States? . . ., _ . . . . • Type of entity (check only one box). Caution. If 8a is "Yes," see the Instructions for the correct box to check. ❑ Solo proprietor (SSN)• fPertnership Corporation (enter form number to be flied) t* ❑ Personal service corporation ❑ Church or church -controlled organization ❑ Other nonprofit organization (specify) ► ❑ Other (specify) ► 9b If a corporation, name the state or foreign country Gf applicable) where Incorporated 10 Reason for applying (check only one box) i$tarted new business (specify type) 1► ❑ Hired employees (Check the box and see line 13.) ❑ Compliance with IRS withholding regulations ❑ Other (specify) ► 11 Date business started or acquired txdh, day, 6. Se State SSN, MN, or EIN Pi 1— 6—ZTGo If 8a is "Yes," enter the number of 02. LLC members . . . . ► 111kYiss 0 No ❑ Estate (SSN of decedent) ❑ Plan administrator (TIN) ❑ Trust (TIN of grantor) ❑ National Guard 0 Statelocal government ❑ Farmers' cooperative 0 Federal govemment/military ❑ REMIC 0 Indian tribal 9ovegrcnanWenterprises Grouo Exemption Number (GEM if any ►� Foreign country ❑ Banking purpose (specify purpose) Is- O Changed type of organization (specify new type) P- O Purchased going business ❑ Created a trust (specify type) ► ❑ Created a pension plan (specify type) ► e instructions. 13 Highest number of employees expected in the next 12 months (enter -0- if none). If no employees expected, skip line 14. Agricultural Household Other 12 Closing month of accounting year h- 14 11 you expect your employment tax liability to be S1,000 or less in a full calendar year and want to file Form 944 annually instead of Fonns 941 quarterly, check here. (Your employment tax liability generally will be S1,000 or less if you expect to pay S4,000 or less in total wages.) If you do not check thXx, you must file Form 941 for every quarter. (� 15 First data wages or annuities were paid (month, day, year). Nobs. 11 applicant is a withholding agelE, date Income will brat be paid to nonresident alien (month, day, year) Is. 16 Check one box that bast describes the principal activity of your business. 0 Heafth cars & social assistance 0 Wholesale-agent/broker ❑ Construction 0 Rental & leasing 0 Transportation & warehousing 0 Accommodation & taro e 0 -other ❑ Retail ❑ Real estate 0 Manufacturing 0 Finan B �Snsurance 1� t7ttlpr soecifh j'•'� 17 I •c a principal IinB ofttterchandi soI , ifi t w r tnliti dt aced, or services provided, 18 Has the applicant entity shown on tine 1 ever applied for and received an EMI? ❑ Yes lekNo If "Yes," write previous EIN here 0- to ectron Third Party Designee Under palettes of perjwy, Mean that I la Name and titype or (Xint Geary) tl4 Signature (* d you audio tra`n ativo ee Rest kn0 ur.. • t the completion of this lorm. _ _24 tnaltr-'27510 ate ►' For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Apptcant'S tax number (include area code) Cat. No. 16055N Font' SS-4 (lieu. 1-2010) ifp 1 STATE OF CALIFORNIA WITHHOLDING SERVICES AND COMPLIANCE MS F182 FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0651 PSIS VENTURES, LLC 2000 ALBERTA AVE APT 19 VENICE CA 90291-4587 DATE: 03/10/15 NOTICE NUMBER: 2143924150304 1 ENTITY ID: SOSL 201506210224 IN REPLY,REFER TO: 767:HW: :ICLTR Withholding Tax at Source Requirements You May Have California Withholding Responsibilities We received information that your business entity may be doing business in California. Therefore, we are notifying you of your potential resident and nonresident withholding responsibilities. Nonresident Withholding if your business entity pays California source Income to nonresidents of California, you must withhold and send Franchise Tax Board (FTB) 7 percent of all payments you make to each nonresident that exceed $1,500 in a calendar year. (California Revenue & Taxation Code Section 18662) if your business entity does not pay California source income to nonresidents of California, this responsibility does not apply to you. Payments Subject to Nonresident Withholding Payments subject to nonresident withholding include, but are not limited to: • Nonwage payments for services performed in California. • Lease, rent, royalty, winnings, and payout income earned in California. • Distributions from California pass -through entities (estates, trusts, partnerships, LLCs, S corporations). Exceptions to Nonresident Withholding Generally, you do not need to withhold if any of the following exceptions apply. The payee: • Is qualified with the California Secretary of State to do business in California. • Has a permanent place of business in California. • Is an individual who is a California resident. • Is a tax-exempt entity under California or federal law. • Is a government entity. • Provides only goods or materials. • Received a withholding waiver from FTB. • Meets one of the other exceptions listed on Form 590, Withholding Exemption Certificate. Other exceptions may apply. See FTB Publication 1017, Resident and Nonresident Withholding Guidelines, for details on those exceptions. FTB 4086 MEO (REV 09-2011) SIDE 1 Backup Withholding — Applies to Both Residents and Nonresidents Generally, California follows federal law and requires backup withholding on payments to a payee if the payee: • Does not provide a taxpayer identification number. • Provides an invalid taxpayer identification number. • Does not certify an exemption from backup withholding. With certain limited exceptions, California law states that if the Internal Revenue Service (IRS) requires you to withhold and remit backup withholding, you must also withhold and remit to FTB 7 percent of all reportable income payments. Payments Subject to Backup Withholding California residents are subject to California backup withholding on all payments they receive, regardless of source. Nonresidents are subject to Califomia backup withholding on payments they receive from California source income. Exceptions to Backup Withholding Two exceptions to California backup withholding are: • Payments of interest and dividends (reported on IRS Forms 1099-INT, 1099-DIV, 1099-OID. and 1099-PATR). • Any release of loan funds a financial institution makes in the normal course of business. Priority for Withholding If more than one type of withholding applies to a payment, you perform backup withholding only. Payees Exempt from Backup Withholding Certain payees are exempt from backup withholding, such as government entities and tax-exempt organizations. To get a complete list of exempt payees, refer to IRS Form W-9. Consequences for Late Filing, Late Payment, or Noncompliance If you do not file or furnish certain withholding forms correctly and timely, we may assess penalties. A 100 percent liability applies any time you under withhold, fail to withhold, or fail to remit withholding unless you show us that the failure is due to reasonable cause. Interest applies on late payments. For more details on nonresident or backup withholding, or to get California withholding forms and publications: • Go to ftb.ca.gov and search for withholding. • Refer to FTB Publication 1017, Resident and Nonresident Withholding Guidelines. • Call: 888.792.4900 or 916.845.4900. TTY/TDD: 800.822.6268 for persons with hearing or speech impairments. • Email: wscs.gen@ftb.ca.gov. (This address is not a secure email address. Do not send confidential information.) • Subscribe to free, online webinars. Go to ftb.ca.gov and search for subscription services. On the subscription services page, select the Tax News, Backup Withholding, and Nonresident options. You will automatically receive email updates on these topics, including upcoming webinar invitation Links. FTB 4086 MEO (REV 09.2011) SIDE 2 STATE OF CALIFORNIA FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0500 NOTICE NUMBER: 2143925150304 1 PAS VENTURES, LLC 2000 ALBERTA AVE APT 19 VENICE CA 90291-4587 ADDRESS VERIFICATION NOTICE DATE: 03/10/15 ENTITY ID: SOSL 201506210224 We have been advised that the above business entity will be receiving retums or other documents from the Franchise Tax Board. Our records indicate that the mailing address shown above is current. If the address is incorrect, please provide the correct information below and mail this form to: Franchise Tax Board, PO Box 942857, Sacramento CA 94257-0500. If applicable, please provide any additional Identification numbers. ^5 OF NAME (It Applicable) Federal Employer Ident0icatlon Number STREET Employment Uevelopment 13epartment Account Number CITY S I A I t SIN Board of Equalization Account Number NOTICE TO INCORPORAfNG ATTORNEY if you are the incorporating attorney, please provide us with the current address for the above business entity. If you no longer represent the business entity, please forward this request. If we cannot establish and maintain contact with the business entity, it may be subject to penalties for failing to comply with the law. TAXPAYER SERVICES Internet and Telephone Assistance Website: ftb.ca.gov phone: 800.852.5711 from within the United States 916.845.6500 from outside the United States YuTDD: 800.822.6268 for persons with hearing or speech impairments 472900121341 FTB 4729 (REV 12-2013) P&S VENTURES, LLC • SUMMARY P&S VENTURES, LLC 1. LLC KIT A. ARTICLES OF ORGANIZATION J SECRETARY OF STATE FILING NUMBER, �6 ` 022. DATE OF FILING B. OPERATING AGREEMENT C. BANK RESOLUTION D. MEMBERSHIP ROLL E. CERTIFICATES OF INTEREST F. TRANSFER LEDGER G. ENTITY SEAL 2. FEDERAL I. D. NUMBER J cA- 1\ Lkol()* 2 4 3. CALIFORNIA EMPLOYER I. D. NUMBER Aka EDD NUMBER 4. CITY OF LOS ANGELES (or other city) LICENSE 5. SELLER'S PERMIT 6. DEPARTMENT OF BUSINESS OVERSIGHT FILING a Pv 7. SECRETARY OF STATE STATEMENT OF INFORMATION v/ / 3 8. BANK ACCOUNT A. GO TO ANY FDIC INSURED BANK OF YOUR CHOICE B. WRITE A CHECK TO THE LIMITED LIABILITY COMPANY FOR THE INTEREST PURCHASE C. ASK THE BANK OFFICER TO SET UP YOUR ACCOUNT IN A WAY THAT: 1. CLEARED CHECKS ARE LISTED IN NUMERICAL ORDER OF CLEARANCE. EXAMPLE: 1001 1006* 1002 1008 1003* 1009 1005 1010 2. CUT-OFF OF BANK STATEMENT SHOULD BE AS OF END OF THE CALENDAR MONTH. l st 30th/ 315t D. SELECT APPROPRIATE CHECK STYLE. CONSIDER A BUSINESS FORMAT WITH CHECKS THREE IN A ROW AND CHECK STUBS ON THE LEFT: 4 START WITH CHECK NUMBER CHECK STUBS CHECKS E. ORDER AN ENDORSEMENT STAMP & DEPOSIT SLIPS 10. PAYROLL 11. POWER OF ATTORNEY FORMS: FEDERAL STATE 12. WORKER'S COMPENSATION INSURANCE 5 13. OTHER INSURANCE (BUSINESS, LIABILITY, ETC.) 14. LEGAL SHIELD - A MUST FOR THE SELF-EMPLOYED. 15. MISCELLANEOUS ISSUES WEB -SITE 16. MONTHLY ACCOUNTING 4 i WE WOULD NEED YOUR BANK STATEMENTS, CHECK STUBS, AND SUPPORTING DOCUMENTS LIKE INVOICES, CASH RECEIPTS (E.G. POSTAGE, SUPPLIES, ETC.), CREDIT CARD STATEMENTS, ANY CREDIT CARD RECEIPTS FOR PURCHASES MADE ON CREDIT. ONCE WE KNOW MORE ABOUT YOUR BUSINESS OPERATIONS, WE MAY ASK YOU FOR OTHER SUPPORTING DOCUMENTS. r / CERTIFICATE OF LIABILITY INSURANCE ANY PROPRIETOR/PARTNER/EXECUTIVE A OFFICER/MEMBER EXCLUDED? (Mandatory 1n NH) If yes, describe under SPECIAL PROVISIONS below ACORC! .,....4 DATE (MMIDDIYYYIn 04/10/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS "ERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES ELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED EPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in Ileu of such endorsement(s). PRODUCER AU Insurance Services 10825 Old Hill Rd Omaha, NE 68154 (877)234-4420 INSURED PAS Ventures, LLC dba The OG Collective 36380 Bankside Dr Cathedral City, CA 92234-7623 CTL 1273 1316363 CONTACT NAME: PHONE877)234-4420 WC, NNo, Est): ( E-MAIL ADDRESS: PRODUCER CUSTOMER ID X FAX (A/C, No): (877) 234-4421 INSURER(S) AFFORDING COVERAGE INSURER A: California Insurance Co. INSURER B: INSURER C: INSURER D: INSURER E: INSURER F: NAIC N 38865 FICATE NUMBER: REVISION NUMBER: COVERAGESTISTOCERTIFY THAT THE POLICIES IOF INSURANCELISTED BELOW HAVE BEEN ISSUED TO THE INURED NAMEDABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SL.CH POLICIES. LIMITS SHOWN MAY HAVE B EEN REDUCED BY PAID CLAIMS. INSR AODLSUBP, POUCYEFF POUCY EXP LTR r in OF INSURANCE INSR WVD POUCY NUMBER IMMIDD/YYYYI IMMIDD/YYYYI GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY ____ 'CLAIMS MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER. I POLICY I ( 1,177 L I LOC AUT)MOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON OWNED AUTOS UMBRELLA UAB EXCESS LIAB DEDUCTIBLE RETENTION $ OCCUR CLAIMS MADE WORKERS COMPENSATION AND EMPLOYERS' UABIUTY Y 1 N L NIA 46-213869-01-01 DESCRIPTION OF OPERATIONS / LOCATIONS /VEHICLES (Attac r Acord 101,Addltlonal Remarks Schedule, V more space Is required) CERTIFICATE HOLDER The OG Collective 36380 Bankside Dr Cathedral City, CA 92234-7623 Attn: Project Manager ACORD 25 (2009/09) CANCELLATION IAGGREGATE X T I WCRY I SATU- I OTIM(TS MINIMS PRFMISESIEttoccurranCel MED EXP lane one oersonl PERSONAL & ADV INJURY S GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG I $ war COMBINED SINGLE LIMIT (Ea agiodenn BODILY INJURY (Per person) BODILY PROPERTY DAMAGE (Peracc,dem S S S a EACH OCCURRENCE I$ Is Is OTI$ E.L. EACH ACCIDENT I $ 1,000,000 IE.L.DISEASE - EA EMPLOYEE! $ 1,000,000 E.L DISEASE - POLICY LIMIT I $ 1,000,000 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DEUVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATNE OD78336 ©1988-2009 ACORD CORPORATION. All rights reserved ACo p CERTIFICATE OF LIABILITY INSURANCE I DATE 'MI ""TY1 �.►'' 01/12/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADOmONAL INSURED, the poiicy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder In Lieu of such andorsament(s). PRODUCER SOCALS BEST INSURANCE SERVICES, INC. 5015 W AVENUE L14 STE 4 QUARTZ HILL CA 93536-3600 INSURED PS Ventures LLC DBA The OG Collective 36380 Bankside Dr Cathedral City CA 92234 CONTACT Beinjamin Landaverde PHONE may; 661-943-7777 FAX ,I ,Noy: Ate, bennogcannabisinaurance.com INSUREIBN AFFORDING COVERAGE INSURER A:International Insurance Company Of Hannover SI INSURER INSURER c : INSURER D INSURER E INSURER F : NAIC 0 COVERAGES CIRTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICI F IN RANGE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTVWTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. MISR LTR TYPE OF INSURANCE -------- POLICY NUMBER O POLICY EFF POLICY EXP I INSm Wvn MMtODIYYYTI JI M/DO/YYYYI I UNITS COMMERCIAL GENERAL LIABILITY A GE%N'L AGGREGATE LIMIT APPLIES PER I♦ POLICY'PRO. ._.. sJECT LOC OTHER AUTOMOBILE ULBIUTY ANY AUTO ._. ALL OWNED , AUTOS HIRED AUTOS SCHEDULED AUTOS NON -OWNED , AUTOS UMBRELLA L1AB OCCUR EXCESS LM8 1 CLAIMS -MADE DED RF�TENTION $ WORKERS COMPE[+ISATION AND EMPLOYERS' N Linn ITY ANY PROPRIETOR(PARTNERIEXECUTIVE OFFICERMEMBER EXCLUDED') (Mandatory In NH) I es. describe under DESCRIPTION OF OPERATIONS bane YIN EACH OCCURRENCE $ 1, 000, 000 IG21X002589-00 ,01/1D/2017;01/10/20 $ 0AMAOg�ro�RENTEb CLAIMS -MADE ./ OCCUR LN?REM .U.LEaPcORIrerCe)._ $ SOD, OOO MED EXP (Arty one person} PERSONAL & ADV INJURY GENERAL AGGREGATE 2, 000, 000 PRODUCTS .COMP/OP AGG S Excluded NIA $ COMBINED SINGLE LIMIT s 800ILY INJURY (Per person) $ BODILY INJURY (Per acc+(fent) $ -PROP-COY DAMAGE' S EACH OCCURRENCE b AGGREGATE S S PER OTH- I E L. EACH ACCIDENT $ E l DISEASE- EA EMPLOYEE* $ E L DISEASE - POLICY LIMIT $ DESCRIPTION OF OPERATIONS 1 LOCATIONS 1 VEHICLES (ACORD 101, Additional RamarW ScMdW*, may be attached I Hare apace Is requlrad) Additional Insured: Greg Johnson CERTIFICATE HOLDER Greg Johnson 36380 Bankside Dr Cathedral City CA 92234 ACORD 25 (2014/01) AU CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. TA,TIVE 014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD .4Co CERTIFICATE OF LIABILITY INSURANCE DATEpokoorre"` �..r" 01/12/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(Nrs) must be endorsed. If SUBROGATION IS WAIVED, subject to the terns and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER SOCALS BEST INSURANCE SERVICES, INC. 5015 W AVENUE L14 STE 4 QUARTZ HILL _ INSURED .._ PS Ventures LLC DBA The OG Collective 36380 Bankside Dr Cathedral City CA 92234 NW"AI1,A`'r Benjamin Landaverde PHON.__. ... FAX - .. . raj 661-943-7777 LIKAIL smitymk_. beneogcannabiainsurance.com INSURERS) AFFORDING COVERAGE CA 93536-3600 INSVRERA: International Insurance Company Of Hannover Ss INSURER B INSURER C : INSURER D : INSURER E: INSURER F : NAIL COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 1S SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS tNSR ;AbbeStINI? _...... .........�....__ _..__..._._._- POLICY -OF T kiCi YlAfE__... - LTR TYPE OF INSURANCE I GittoiJEiv n I POLICY NUMBER I I COMMERCIAL GENERAL LIABILITY CLAIMS -MADE : / OCCUR GEN'L AGGREGATE LIMIT APPLIES PER oR0- 1(..; POIJCY t . JECT LOC OTHER AUTOMOBILE LIAINUTY ANY AUTO ALL OWNED ,; AUTOS HIRED AUTOS -I SCHEDULED i AUTOS NON-0KNED , AUTOS UMBRELLA LIM ;OCCUR EXCESS UAe ' CLAIMS -MADE OED I RETENTIONS WORKERS COMPENSATION AND EMPLOYERS* UAINUTY i ANY PROPRIETOR/PARTNERfEXECUTIVE OFFICER/MEMBER EXCLUDED/ (Mandatory In NH) M yes, describe under DESCRIPTION OF OPERATIONS Wow YtN NIA. LIMITS 9-00 101/10/2017 01/10/2018EACHOCCURRENCE IIG21X00258-S DAMAtiE"TO R'E'NTEO i_PRF.MISE$ t 41x/q,rrencr/ S MEDEXP (Anyone persanl. .., S PERSONAL 8 AOV INJURY 5 GENERAL AGGREGATE ..__....$ PRODUCTS •COMP/OPAGG S COMBINED SINGLE LIMIT S s .. (E• 4wanq. __ _ _..._. BODILY INJURY IPer person) S BODILY INJURY (Per "cadent) S -PR/PEATY OAM iGE EACH OCCURRENCE S AGGREGATE _ S STATUTE j ER , E L. EACH ACCIDENT S LE1 DISEASE - EA EMPLOYEE S E l DISEASE - POLICY LIMIT $ 1,000,000 100,000 1,000 1,000,000 2, 000,000 Excluded DESCRIPTION OF OPERATIONS! LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached M more space M required) Additional Insured: City Of Cathedral City/ Grantor Of Licenses see attached CG 20 26 04 13 forth CERTIFICATE HOLDER City of Cathedral City/Grantor Of Licenses 68700 Avenida Lalo Guerrero Cathedral City CA 92234 ACORD 25 (2014/01) CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. m 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD POLICY NUMBER: 1G21X002589-00 COMMERCIAL GENERAL LIABILITY CG20260413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional insured Person(s) Or Organization(s): City Of Cathedral City!Grantor Of Licenses 68700 Avenida Lalo Guerrero Cathedral City, CA 92234 Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II — Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: 1. In the performance of your ongoing operations; or 2. In connection with your premises owned by or rented to you. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. B. With respect to the insurance afforded to these additional insureds, the following is added to Section 111— Limits Of insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. CG 20 26 0413 ® Insurance Services Office, Inc., 2012 Page 1 of 1 P&S Ventures Distribution Business Plan EXHIBIT E: CANNABIS DISTRIBUTION BUSINESS PLAN 77-700 Enfield Lane Suite A Palm Desert, CA Overview The Applicant is applying for a conditional use permit for a commercial cannabis distribution business in the City of Palm Desert. The Applicant has identified a location in compliance with the city's zoning and separation requirements per the ordinance. The Applicant, if granted, will obtain and maintain a valid regulatory permit as required under Chapter 5.101 prior to initiating operations. The Applicant will also apply for a temporary license from the State of California's Bureau of Cannabis Control to operate according to the MAUCRSA guidelines. Executive Summary P&S Ventures will be a professionally -operated cannabis distribution center in the City of Palm Desert. The business will provide exemplary services to licensed cultivators, lab operators, and manufacturers in a friendly and safe environment directed to the ultimate good of the community. An important value of the team is to set the standard for stewardship and operations, by providing the city and its residents with a professional and customer -centered environment that will prove a benefit to the community. Having operated cannabis companies in the Coachella Valley, the team is familiar with the uniquely beautiful desert environment and the outstanding quality of life that the city's residents and tourists flock to enjoy. The team has years of experience in cannabis, including cannabis business licenses in an adjacent city. A sizeable advantage to this experience and network, is the ability to offer services and products with limited disruptions to supply. Objective The Applicant, if awarded a license, will provide the City of Palm Desert with a reputable Medical and Adult -Use Cannabis distribution business that will serve as a model throughout the state of California and other legal states. The team will collaborate with the community of Palm Desert to create an extraordinary environment of safe access to cannabis, and to provide tangible economic benefits to the city. P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert 0 P&S Ventures Distribution Business Plan Business Vision P&S Ventures aims to provide customers with exemplary service using only the finest, high - quality, locally -sourced cannabis products. P&S Ventures aims to be good stewards of the economic landscape for the City of Palm Desert by giving back to the community and enhancing the cannabis market for both the city, and the State of California. As existing licensed cannabis operators, the team has created high -paying jobs in the areas they operate and will continue this practice. The company will also utilize its existing distribution and relationships to ensure high - quality cannabis and manufactured products are available to patients on a consistent and timely basis. Executive Team & Experience Scott Lambert, CEO, has over ten years of experience owning and managing cannabis retail and cultivation facilities in the Greater Los Angeles area. He is an organized, detail -oriented, and effective team leader who has the proven experience and expertise to manage P&S's daily operations. Scott is involved in all aspects of the cannabis industry. As the co-owner of SoilGrown Solventless, he is a pioneer in clean cannabis concentrates and Rosin tech, a safer alternative process of applying heat and pressure to cannabis rendering a solvent -less hash oil (SHO). Scott is also a principal of Sasquash Rosin Press, the largest manufacturer of resin press technology in the U.S. Scott and his team have a vision to lead the efforts in creating a premier cannabis industry in Southern California. Scott is also a member of the Cannabis Task Force in the city of Cathedral City, CA. Patrick McMahon, Partner, has the unique combination of foresight, perseverance, and leadership. In addition to spearheading the procurement of one of California's only legal cannabis licenses, Patrick was able o secure his facility's future location in an off -market transaction. A former Division 1 quarterback turns real estate entrepreneur, Patrick channels his enthusiasm and charisma into the business. The team has a tremendous amount of knowledge about operating cannabis businesses. Together, the co-founders of The OG Collective and P&S Ventures Holding Co., have witnessed the industry expand in ways they never could have anticipated. The two partners hold cannabis business licenses in California for Cultivation, Distribution, Volatile Manufacturing, and a Retail Dispensary. With the ability to cultivate, make concentrates and edibles, and produce vape pens, P&S Ventures has the ability to provide an unparalleled and consistent supply of local, high -quality cannabis and products. The team brings together the critical element of an existing network to tap into for supply and distribution needs. P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan Operations & Services The Applicant will implement an extremely rigorous compliance plan. The distribution center will have clear policies, responsibility and accountability for implementing all required rules and regulations. The training all employees undertake prior to beginning work will include extensive time on these policies, along with clear explanations for the rationale behind the necessity of compliance. Access to Premises The Applicant will ensure access to the licensed premise, which will share an A -license and M- license, will be limited to individuals have been correctly identified and have a bona fide business reason for entering; A -license premises will be limited to individuals who are at least 21 years of age, M-license premises will be limited to individuals who are at least 18 years of age and have a valid physician's recommendation. The Applicant will establish limited -area and permit only authorize individuals to enter these areas, including employees, vendors, contractors, or other requiring limited access. The Applicant will only grant access to the retail area to purchase cannabis goods after the individual has been properly identified. Batch Storage & Lab Testing Batch Storage The Applicant will ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the premises. A label with the following information will be physically attached to each container of each batch: > The manufacturer or cultivator's name and license number > The date of entry into the distributor's storage area > The unique identifiers and batch number associated with the batch > A description of the cannabis goods with enough detail to easily identify the batch > The weight of or quantity of units in the batch > The best -by, sell -by, or expiration date of the batch, if any The Applicant will store cannabis goods in a building designed to permit control of temperature and humidity and will prevent the entry of environmental contaminants such as smoke and dust, and will not be exposed to direct sunlight. No cannabis goods will be stored outdoors. Employee break rooms, eating areas, changing facilities, and bathrooms will be completely separated from the storage areas. The Applicant will store harvest batches and edible cannabis products that require refrigeration at 35 to 42 degrees Fahrenheit, and in a darkened area with P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan no more than 60% humidity in compliance with sections 19302, 19302.1,19304, and 19334, CA Business and Professions Code. Lab Testing After taking physical possession of a cannabis goods batch, the Applicant will contact a testing laboratory and arrange for a laboratory employee to come to the licensed premises to select a representative sample for laboratory testing per Section 26013, CA Business and Professions Code. The Applicant will ensure that the batch size from which the sample is taken meets the requirements of the Bureau of Cannabis Control. A managerial -level employee will be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and will ensure that the increments are taken from throughout the batch. The sampling will be video recorded with the batch number stated at the beginning of the video and a visible time and date indication on the video recording footage. The video recordings will be maintained for 180 days. After the sample has been selected, both the manager and the laboratory employee will sign and date the chain of custody form, attesting to the sample selection having occurred. The Applicant will not assist the laboratory employee nor touch the cannabis goods or the sampling equipment while the laboratory employee is obtaining the sample. Only once a batch from a manufactured or harvest batch passes, the cannabis goods will be transported to retailers. Quality Assurance When a distributor receives a certificate of analysis stating that the sample meets specifications required by law, the distributor will ensure the following before transporting the cannabis goods to one or more retailers: ➢ The certificate of analysis the distributor received from the testing laboratory is the certificate of analysis that corresponds to the batch ➢ The label on the cannabis goods is consistent with the certificate of analysis regarding cannabinoid content and contaminants required to be listed by law ➢ The packaging complies with applicable packaging laws including, but not limited to, CA Business and Professions Code section 26120 ➢ The packaging is tamper evident. "Tamper evident" means a one -time -use seal is affixed to the opening of the package, allowing a person to recognize whether or not the package has been opened ➢ The weight or count of the cannabis batch comports with that in the track and trace system. The Applicant will use scales as required by the CA Medicinal and Adult -Use Cannabis Regulation and Safety Act P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert 0 P&S Ventures Distribution Business Plan Sales & Tax Payments A cannabis distributor, the Applicant will procure, sell, and/or transport cannabis between licensed cannabis businesses, such as a cultivator, manufacturer, or retailer. Per the California Department of Tax and Fee Administration (CDTFA), the Applicant will: » Register with the CDTFA for a seller's permit • Register with the CDTFA for a cannabis tax permit Y Collect the cannabis cultivation tax from cultivators and manufacturers from cannabis and/or cannabis products are received. y Collect the cannabis excise tax from cannabis retailers supplied with cannabis and/or cannabis products. ✓ Provide an invoice or receipt to the businesses from which you the cultivation tax and the cannabis excise tax are collected. » Electronically file both the sales and use tax and cannabis tax returns and pay the amounts due to the CDTFA. ➢ Obtain a distributor license issued by the Bureau of Cannabis Control within the California Department of Consumer Affairs. Cannabis Cultivation Tax Collection The Applicant will collect the cannabis cultivation tax from licensed cultivators and manufacturers from whom cannabis and/or cannabis products are received. An invoice, receipt, or other similar document will be provided to the cultivator or manufacturer that identifies: ➢ The licensee receiving the product. > The cultivator from which the product originates, including the associated unique identifier. ➢ The amount of cannabis cultivation tax. Cannabis Excise Tax Collection The Applicant will also collect the cannabis excise tax from the cannabis retailers that are supplied with cannabis and/or cannabis products. The cannabis excise tax will be collected from the retailer on or before 90 days after you sell or transfer the cannabis or cannabis products are sold or transferred to the retailer in an arm's length transaction. In a non-arm's length transaction, the cannabis excise tax will be collected from the retailer on or before 90 P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert 0 P&S Ventures Distribution Business Plan days after the sale or transfer of cannabis or cannabis product to the retailer, or at the time of the retail sale by the cannabis retailer, whichever is earlier. The Applicant will provide an invoice, receipt, or other similar document to the cannabis retailer that identifies: > The licensee receiving the product. ➢ The distributor from which the product originates, including the associated unique identifier. > The amount of cannabis excise tax. Each sales invoice or receipt will include: > Name and address of the seller. > Name and address of the purchaser. > Date of sale and invoice number. ➢ Kind, quantity, size, and capacity of packages of cannabis or cannabis products sold. > The cost to the purchaser, including any discount applied to the price shown on the invoice. > The location of transport of the cannabis or cannabis product unless the transport was from the licensee's location. > Any other information specified by the licensing authority. Transportation and Risk Management Transportation and Shipping Manifest The Applicant will ensure the following requirements apply when transporting cannabis goods between licensees or licensed premises: ➢ Cannabis goods will only be transported inside of a vehicle or trailer and will not be visible or identifiable from outside of the vehicle or trailer ➢ Cannabis goods will be locked in a box, container, or cage that is secured to the inside of the vehicle or trailer. > While left unattended, vehicles and trailers will be locked and secured. > At a minimum, a vehicle alarm system will be installed on all transport vehicles and trailers. > Packages or containers holding cannabis goods will not be tampered with, or opened, during transport. P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan > The driver will only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of cannabis goods. The Applicant intends to transport both medicinal and adult -use cannabis goods, which will be clearly identified and marked as "A" for adult -use cannabis goods, or "M" for medicinal cannabis goods both on the physical packaging of the cannabis goods and on the shipping manifest. While in transport, the medicinal and adult -use cannabis goods will be secured and separated from each other in the vehicle. Shipping Manifest Prior to transporting cannabis goods, a managerial -level employee will generate a shipping manifest through the track and trace system for the following activities > Testing and sampling > Sale of cannabis goods to a licensee > Destruction or disposal of cannabis goods > Any other activity, as required pursuant to this division, or by any other licensing authority. An employee of the Applicant will securely transmit the manifest to the Bureau and the licensee that will receive the cannabis goods prior to transport. The Applicant or employee of the Applicant will ensure and verify that the cannabis goods being taken into possession for transport at the originating licensed premises are as described and accurately reflected in the shipping manifest. A shipping manifest will accompany every transport of cannabis goods. The Applicant will not take into possession or transport any cannabis goods that are not on the shipping manifest, or any cannabis goods that are less than or greater than the amount reflected on the shipping manifest. A distributor will not void or change a shipping manifest during transport, or after departing from the originating licensed premises. Transport Vehicle In addition to the shipping manifest, the Applicant will provide the following information to the all applicable agencies: ➢ Proof of ownership or a valid lease for any and all vehicles and trailers that will be used to transport cannabis goods ➢ The year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles and trailers that will be used to transport cannabis goods > Proof of insurance for each vehicle and trailer used to transport cannabis goods. sio P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan Transport Personnel Only the licensee or an employee of the Applicant will be in a vehicle while transporting cannabis goods. The Applicant will also ensure no person under the age of 21 years old will be in a commercial vehicle or trailer transporting cannabis goods. All agents, officers, or other persons acting for or employed by the Applicant will display a laminated or plastic -coated identification badge at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee's "doing business as" name and license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height. Insurance Requirements The Applicant will obtain a certificate of insurance that shows the types of insurance coverage and minimum amounts that have been secured as required by Section 26013, CA Business and Professions Code. The Applicant will at all times carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss. The insurance policy will be obtained from an insurance company that meets the requirements of CA Insurance Code section 1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a surplus line broker licensed under Insurance Code section 1765. Inventory Reconciliation and Records Track -and -Trace The Applicant will create and maintain an active and functional account within the State of California's track and trace system prior to engaging in any commercial cannabis activity, including the purchase, sale, test, packaging, transfer, transport, return, destruction, or disposal, of any cannabis goods. One individual owner will be designated as the track and trace system account manager. This managerial -level employee may authorize additional owners or employees as track and trace system users and will ensure that each user is trained on the track and trace system prior to its access or use. This track and trace account manager will attend and successfully complete all required track and trace system training, including any orientation and continuing education. The Applicant's designated manager will monitor all compliance notifications from the track and trace system, and timely resolve the issues detailed in the compliance notification. The P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan manager will keep a record, independent of the track and trace system, of all compliance notifications received from the track and trace system, and how and when compliance was achieved. Reporting and Monitoring All commercial cannabis activity will be recorded in the track and trace system, including any: ➢ Packaging of cannabis goods. > Sale of cannabis goods. ➢ Transportation of cannabis goods to a licensee. ➢ Receipt of cannabis goods. ➢ Return of cannabis goods. ➢ Destruction and disposal of cannabis goods. > Laboratory testing and results. ➢ Any other activity as required by any other licensing authority. The following information will be recorded for each activity entered in the track and trace system: ➢ Name and type of the cannabis goods. ➢ Unique identifier of the cannabis goods. > Amount of the cannabis goods, by weight or count. > Date and time of the activity or transaction. ➢ Name and license number of other licensees involved in the activity or transaction. If the cannabis goods are being transported, the Applicant or its employee will transport pursuant to a shipping manifest generated through the track and trace system, that includes the items above, as well as: ➢ The name, license number, and premises address of the originating licensee. > The name, license number, and premises address of the licensee transporting the cannabis goods. > The name, licensee number, and premises address of the destination licensee receiving the cannabis goods into inventory or storage. > The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premises, if any. > Arrival date and estimated time of arrival at each licensed premises. > Driver's license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for transport. Upon pick-up or receipt of cannabis goods for transport, storage, or inventory, a licensee will ensure that the cannabis goods received are as described in the shipping manifest, and will record acceptance and acknowledgment of the cannabis goods in the track and trace system. If im P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan there are any discrepancies between the type or quantity specified in the shipping manifest and the type or quantity received by the licensee, the licensee will record and document the discrepancy in the track and trace system and in any relevant business record. The Applicant and its employees will only enter and record complete and accurate information into the track and trace system, and will correct any known errors entered into the track and trace system immediately upon discovery. Unless otherwise specified, all transactions must be entered into the track and trace system by 11:59 p.m. Pacific Time, on the day the transaction occurred. The team has experience with cannabis -specific POS and inventory management systems. Specifically, they operate a dispensary utilizing IndicaOnline, an all -in -one POS software designed for dispensaries. The software is HIPAA compliant, meeting and exceeding security standards set for the transmission, encryption and storage of patient records. Record Retention The Applicant will maintain the following accurate records of all commercial cannabis activity for a minimum of seven years: > Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records > Personnel records > Training records > Contracts with other licensees regarding commercial cannabis activity > Permits, licenses, and other local authorizations to conduct commercial cannabis activity > Security records > Records relating to the composting or destruction of cannabis goods. > Documentation for data or information entered into the track and trace system. > Records relating to branding, packaging and labeling > Inventory logs and records > Transportation bills of lading and shipping manifests for completed transports and for cannabis goods in transit > Vehicle and trailer ownership records ➢ Quality -assurance records > Laboratory -testing records ➢ Warehouse receipts > Records relating to tax payments collected and paid > All other documents prepared or executed by an owner or his employees or assignees in connection with the licensed commercial cannabis business. All appropriate agencies will be notified if a significant discrepancy is discovered. ing P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Distribution Business Plan State of California Compliance The Applicant understands compliance in the cannabis industry is extremely important, and is a prerequisite for secure and sustainable operations. This plan is compliant with all applicable CA state law, including without limitation the Compassionate Use Act of 1996, the Medical Marijuana Program Act, the Medicinal and Adult -Use Cannabis Regulation and Safety Act, CA Proposition 64, Assembly Bill 133, and in accordance with the BCC emergency rules released in November 2017. ATTACHMENT J: OPERATING BUDGET -DISTRIBUTION CENTER P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert P&S Ventures Cannabis Distribution Business Plan, City of Palm Desert ■ Twelve -Month Cash Flow P & S Ventures 77-770 Enfield Lane, Suite A Palm Desert, CA -- Men. , SeTermg Jan43 Feb-18 M3r18 Apr.18 May1d Jar-19 J.,e18 AA-16 Sep-18 Oc418 Nov-18 Dee-18 Overvaw Averaoe Cash Summary Calm Hand (eegra*ng06mon4, cam nveaore (m hand * receipts, bean cash adl Cash Pasike (end almonth) 30010 320,000 6536 369,105 750,675 1,132,619 1569,494 1,994,369 2401,275 2791,431 3,283,302 3,896,853 3,864,089 1,848,287 320,000 486,050 594,375 1,053,315 1,791,035 1,908,279 Z364,314 3,109.569 3,436,655 3,728,801 4,554,372 4,654,733 4,844,569 2,709,631 320,000 6,435 389,105 750,675 1,132,619 1,569,494 1,994,3E0 2,401,275 2,791,431 3,283,302 3,66,653 3,884,089 1,815,312 1,981,237 Cash Receipts Cash Saks (Carca85 and 20,000 127,000 498,000 543,000 648,000 518,000 830,000 904,000 806,003 731,000 1,029,000 734,000 778,000 664,333 Cemabis ands) Coledimro from CRa000urds 15240 5,760 65,160 101,760 70,320 75,600 108,480 96,720 57.720 123,480 88,080 81,120 Cash Held lurCanuda 0perafaa 19,050 74,700 81,450 127,200 87,900 94,900 135,600 120,900 109,650 154,350 110,100 118,40D 102650 (Cultivation end Excise Tams) Total Cash Rauipts 28,600 146,050 517,540 114,210 1,040,360 77510 734,320 1,115,200 1,035,330 137,370 1,271,070 161,510 1160,401 1181,343 Cash Paid Out Pmdeaeaa(cannabis and a yot, aoodsl Cross napes (and a thd'arai) Supp_ee (Ace 8 oiler.) Repairs 8 maintenance Rem Utilities Cannata Operators' tots bState 175200 309,600 366,150 106,3139 ofCACultivation and Excise Taxes - LOalPd Pa Galati PWeae(spedy) 350,000 58,333 a1-m dame costs 50,000 10,000 ReserveadlaEsaaw 1,105 7,470 8,145 12,720 8,790 9,450 13,560 12,090 10,965 15,435 11.010 11,640 10,265 Owners' Withdrawal 3196,403 3196,403 Total Cash Paid out 455,615 225,270 302140 151,415 331,715 361,545 701384 645224 445,199 157,711 100,144 2,929,177 726314 C7 41,910 204,000 274,000 451,000 308,000 341,000 359,000 607,000 403,003 450,000 763,030 633,000 407,909 9,000 9,000 9,030 9,003 9,000 9,000 9,000 9,030 9,000 9,000 9,000 9,000 9,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 2,000 2.500 5,100 1,650 C rb 1,000 1,000 7,000 250 6.695 6,695 6,895 6,695 13,334 13,334 13,334 13,334 13,334 13,334 8,893 y 800 800 800 800 800 800 800 800 800 800 100 800 600 ? y Exhibit F Community Engagement The proposed use will thus simultaneously help prevent a decline in and about the commercial center where it is located while bringing economic diversity to Palm Desert. These efforts will be led by Jason Beck, our Community Outreach Manager. Jason Beck has had extensive experience as a cannabis business operator and has had 0 complaints in his 8+ years as an operator in West Hollywood. Jason can be contacted at (310) 508-9726 and ahhs215 aC�.me.com 24 hours a day 7 days a week. P & S will integrate its operations into the surrounding community in a sensitive and attractive manner by utilizing an existing structure - located in a community in need of revitalization -- and provide a community ombudsperson to address any complaints or concerns. The employment provided by P & S — paid at and above living wage standards — will help provide economic stability to the community in which it is located and stimulus to the city of Palm Desert as a whole. The GM or assistant GM should perform several daily spot checks for smells in the common areas of the building, including the hallways and bathrooms, as well as in the parking lot and other outside areas. Any smell detected should be reported on a written form the Project Manager will create, and should be reported to the GM for action. The GM should consult with the owner, and together, they should implement repairs. Applicant will have a designated ombudsperson each day to take complaints from or to discuss concerns of the community or anyone else. This person will be designated by the GM or assistant GMs to solve problems related to smells or other topics (noise, parking, nuisance). They are the first person to respond in a serious manner to complaints and will develop solutions quickly. Then a solution will be provided, with the assistance of the owner. The Community Engagement Manager is responsible for assuring that no smell from indoors is detectable outside of the facility, and will work with the Project Manager to make sure the facility has pccper HVAC and air filtration and treatment systems. The GM is responsible for installation, regular inspection, and repairs to these systems. Community Engagement Plan Jason will conduct and create a clean and beautiful community surrounding our location forming partnerships with volunteers, residents, city officials, community based organizations, and non-profit agencies, focusing on volunteerism and beautification efforts within our local community. Immediate action items include: Exhibit F Adopt a Spot: Identify and adopt a spot in our community that requires attention (litter removal, graffiti abatement, and/or illegal dumping) and maintain that location. Maintain a Drain: Adopt a storm drain near our location to prevent harmful waste from entering our creeks and bay. Organize Community Clean ups: Organize clean up days on an on -going basis to maintain our community and its beauty. Graffiti Abatement: Remove or paint over graffiti on or within 100 feet of our location as soon as reasonably possible. Plant, Paint, Brighten: Remove weeds and overgrowth and replace with native drought resistant plants, maintain paint and appearance of our location, and brighten by providing lighting and/or trimming or removal of branches and shrubs. Exhibit F Exhibit G Neighborhood Responsibility Plan Neighborhood Responsibility Plan: Community Benefits Programs P & S's principals have a long track record of supporting the local neighborhood through their work in Cathedral City and they intend to continue that work through the business's revenue stream. The following are a few of the benefits the community will enjoy from P & S's operations. P & S's operational supports several overlapping policies serving the interests of Palm Desert and the adjacent communities. First, it advances access to safe, properly produced cannabis products authorized under state law and local ordinance. Because P & S will tailor its operations to reduce its water consumption and carbon footprint and to the greatest extent practicable eliminate the generation of waste products, its operations serve the resource conservation goals promoted by those plans as well. In addition to these general and specific issues, P & S's business approach and operations will serve numerous other goals stated by Palm Desert. P & S will also offer a slate of additional programs and services to help boost the community through services to aid and support our citizens. These ancillary services will focus partnerships with local non -profits and community support organizations, price supports to seniors, the terminally ill, low income individuals and veterans, and an eviction defense program assisting persons who have lost their homes to foreclosure. Employment P & S will focus its entry-level and unskilled positions on the pool of unemployed persons in the city. The business will work with the California EDD and private placement job centers and search lists to accomplish this policy objective. Decrease in Vagrancy: P & S's security presence will result in a decrease in vagrancy and loitering in the area. Children's Programs: P & S will provide funding to the Palm Desert High School Music program through in -kind donations of musical instruments. Substance Abuse Education: P & S will provide sessions that focus specifically on substance abuse, misuse and overuse. Such programs will be a regular part of the business's community outreach. Domestic Violence Prevention: One hidden way domestic violence is perpetrated in an ongoing fashion is the way it is covered in the media. P & S will partner with the Palm Exhibit G Desert High School to advance its mission of re -framing domestic violence issues in the media and elsewhere with prevention in mind. Price Supports for Veterans and Low Income Members: P & S will offer substantial price supports for veterans and low-income members based on criteria of demonstrated need and challenges in paying to meet that need. The product provided will not be of less quality than that offered to the general patient base at market prices. Foreclosure Defense: P & S will provide the community members support for eviction defense efforts following foreclosure. The business has on retainer attorneys will specialized skill and experience in this area of the law, who will offer their services pro bono or at greatly reduce rates to those in need. Taxes: The anticipated Local tax revenues generated by P & S's operations will also contribute to the local government efforts to maintain and improve its public services such as parks and community centers. Collaboration with Other Non -profits: The principals of P & S see a natural collaboration with the Anti Recidivism Coalition which is currently undergoing needed outreach to Palm Desert and other of Riverside County. The business will contribute to this project and otherwise seek to engage in collaborative fundraising with ARC. Exhibit G Neighborhood Responsibility Plan: P & S's Cannabis Business Incubator P & S Ventures' incubator business model is designed to support Palm Desert's efforts to reduce the number of undergrounds operators. The model is designed to encourage underground operators to transform their gray market facilities into legitimate business operations within facilities with appropriate zoning, security, and operational checks and balances. With the end of prohibition, As such, P & S Ventures is implementing these proven operational models across California to ensure of ownership, transparency, and operational success of Equity Candidates within the Cannabis Industry. The business model applies to Cultivation, Manufacturing and Delivery -Only P & S Ventures' incubator models span across our operational presence in Cultivation, Manufacturing, and Delivery -Only Dispensaries. The Wholesale Cultivation and Manufacturing program includes assignment of interested entrepreneurs to fully developed, automated, and secure grow or manufacturing chambers. Focused on Community Members P & S Ventures carries out weekly community outreach to promote its incubator models. P & S Ventures' outreach is carried out by organizing specific events at its Training Facilities or by participating in community -based programs and events to introduce and promote the Incubator models. Simple Program Entry Criteria Entry into the P & S Ventures incubator models is simple and requires zero investment of funds by the qualified equity operators. However, our program is designed for operators with production and sales experience within the marijuana industry. Although P & S Ventures is executing plans to implement a comprehensive training program, our first priority is to interject social equity in communities that are hit the hardest with underground wholesale and retail marijuana activities. In addition to experience, we require a clear background, with exemptions for former marijuana incarcerations that may be allowed by State and Local laws. Business Support Exhibit G P & S Ventures' incubator programs include operational capacity for growers, manufacturers, and delivery -only retail operators. In addition, P & S Ventures will provide these operators with tools and mentoring for general business administration, marketing, tax and financial management, legal, and government relations support during the permitting process. No Required Capital for Entty P & S Ventures requires no financial investment of funds or capital from qualified operators! The success of our program lies in the experience, independence, creativity, and invest of time by qualified operators to build their business operations. P & S Ventures funds the entire operational facility and capacity and recovers the operational financial support at the end of each production cycle via a negotiated net profit split. We want to eliminate the barriers to entry for operators to become legal and compliant. Reducing Underground Operations! P & S Ventures' goal is to target grey market operators engaging in illegal marijuana cultivation,manufacturing, or street sales due to lack of start-up funds for qualified real estate acquisition,retrofit, and permitting. In addition to providing business administration and operational support, P & S Ventures will fund the Business Operating Permit costs for operators who wish to remain within the P & S Ventures facilities or CUP and Business Operating Permit costs for operators seeking to spinoff into their own facility. P & S Ventures offers such funding opportunity to operators after one year of successfully executing P & S Ventures' incubator standards for transparency, quality, security, and safety. By decreasing the number of underground operators, three outcomes are realized for the community that we feel more than make up for the "adverse impacts" of our business. 1. Neighborhood safety:Fewer underground delivery services, fire prone volatile extraction done in residential areas, and residential mass cultivations 2. Economic Impact: Turn lawbreakers into tax payers 3. Social Justice: Help train and rehabilitate those unjustly harmed by the War on Cannabis by providing them a second chance Exhibit G Exhibit H Odor Mitigation Narrative Proposed operations would not change noise, dust, or trash impacts. It would create new odor that will be mitigated with the Odor Mitigation Equipment: Applicant will use four odor mitigation techniques to mitigate existing odors and new odors: • A city compliant HVAC system will be used to whisk air from the inside area and throughout the building. • A negative ion generator will also be used to remove smell from the air. • Carbon filtration will be used to further purify the air. • Maintenance required for the carbon filtration unit will include an annual changing of the inner filter with a quarterly change of the outer filter. Odor Mitigation SOP's: The GM or assistant GM should perform several daily spot checks for smells in the common areas of the building, including the hallways and bathrooms, as well as in the parking lot and other outside areas. Any smell detected should be reported on a written form the Project Manager will create, and should be reported to the GM for action. The GM should consult with the owner, and together, they should implement repairs. Applicant will have a designated ombudsperson each day to take complaints from or to discuss concerns of neighbor's or anyone else. This person will be designated by the GM or assistant GMs to solve problems related to smells or other topics (noise, parking, nuisance). They are the first person to respond in a serious manner to complaints and will develop solutions quickly. The the solution, with the assistance of the owner. The owner is responsible for assuring that nomj smell from indoor onsite consumption is detectable outside of the facility, and will work with the Project Manager to make sure the indoor onsite consumption facility has proper HVAC and air filtration and treatment systems. The GM is responsible for installation, regular inspection, and repairs to these systems. ARTICLE VIII - ISSUANCE OF MEMBERSHIP INTEREST CERTIFICATES Section 1. - Issuance of Certificate of Interest 18 Section 2. - Transfer of Certificate of Interest 18 Section 3. - Lost, Stolen or Destroyed Certificates 18 ARTICLE IX - AMENDMENTS Section 1. - Amendment of Articles of Organization 19 Section 2. - Amendment, Etc. of Operating Agreement 19 ARTICLE X - MISCELLANEOUS Section 1. - Fiscal Year 19 Section 2. - Annual Financial Statements; Statements 19 of Account Section 3. - Events Requiring Dissolution 20 Section 4. - Choice of Law 20 Section 5. - Severability 20 Section 6. - Successors and Assigns 21 Section 7. - Non -waiver 21 Section 8. - Captions 21 Section 9. - Counterparts 21 Section 10. - Definitions of Words 21 OPERATING AGREEMENT TABLE OF CONTENTS ARTICLE I - DEFINITIONS Section 1. - Defined Terms 1 ARTICLE II - OFFICES & RECORDS Section 1. - Registered Office & Registered Agent 2 Section 2. - Limited Liability Company Offices 3 Section 3. - Records 3 Section 4. - Inspection of Records 4 ARTICLE III - MEMBERS' MEETINGS & COMMITTEES Section 1. - Place of Meetings 4 Section 2. - Annual Meetings 4 Section 3. - Special Meetings 4 Section 4. - Action in Lieu of Meeting 5 Section 5. - Notice 5 Section 6. - Waiver of Notice 6 Section 7. - Presiding Officials 6 S • • Section 8. - Business Which May Be Transacted at Annual Meetings 6 Section 9. - Business Which May Be Transacted at 7 Special Meetings Section 10. - Quorum 7 Section 11. - Proxies 7 Section 12. - Voting 7 Section 13. - Advisory Committees 7 Section 14. - Meeting by Telephonic Conference 8 or Similar Communications Equipment ARTICLE IV - MANAGEMENT Section 1. - Management Section 2. - Rights, Powers & Obligations of the Management Section 3. - Removal 8 8 ARTICLE V - INDEMNIFICATION OF MEMBERS, MANAGERS, AGENTS & EMPLOYEES Section 1. - Members 84 Managers Section 2. - Employees and Agents Section 3. - Expenses Section 4. - Authorization 10 10 10 11 Section 5. - Notification & Defense of Claim 11 Section 6. - Not Exclusive 13 Section 7. - Further Indemnity 13 Section 8. - Insurance 13 Section 9. - Additional Definitions 14 ARTICLE VI - MEMBERSHIP INTERESTS Section 1. - Contribution to Capital Section 2. - Valuation of Personal or Real Property & Services Rendered Section 3. - Transfer or Assignment of Membership Interests Section 4. - Return of Contributions to Capital Section 5. - Addition of New Members ARTICLE VII - DISTRIBUTION OF PROFITS 15 15 16 16 16 Section 1. - Qualifications & Conditions 17 Section 2. - Record Date 17 Section 3. - Participation in Distribution of Profit 17 Section 4. - Limitation on the Amount of Any 17 Distribution of Profit Section 5. - Date of Payment of Distribution of Profit 18 • Section 11. - Membership 21 Section 12. - Function of Organizer • • 21 • • OPERATING AGREEMENT OF P&S VENTURES, LLC This Agreement is by and between the above named Limited Liability Company (sometimes hereinafter referred to as the Company or the Limited Liability Company) and the MEMBERS of the Company. WHEREAS, the parties desire to establish and adopt a written operating agreement for the administration and regulation of the affairs of the herein LIMITED LIABILITY COMPANY; NOW, THEREFORE, in consideration of the premises, the provisions and the respective agreements hereinafter set forth and for other good and valuable consideration, the parties hereto do hereby agree to the following terms and conditions of this operating agreement for the administration and regulation of the affairs of this LIMITED LIABILITY COMPANY. ARTICLE I DEFINITIONS Section 1. Defined Terms. Advisory Committee or Committees shall be deemed to mean the Advisory Committee or Committees established by the Management pursuant to Section 13 of Article III of this Agreement. Agreement shall be deemed to mean the Operating Agreement of this herein Limited Liability Company as may be amended. Business Day shall be deemed to mean any day excluding a Saturday, a Sunday and any other day on which banks are required or authorized to close in the State of formation. Economic Interest shall be deemed to have the meaning as set forth in Section 3 of Article VI of this Agreement. Limited Liability Company shall be deemed to mean P&S VENTURES, LLC, Limited Liability Company, a Limited Liability Company organized pursuant to the laws of the State of California. Management shall be deemed to have the meaning set forth in Article IV of this Agreement. Member shall mean (I) a person who has a membership interest in the Limited Liability Company AND (2) has not resigned, withdrawn, or been expelled as a member or, if other than an individual, been dissolved. Membership Interest shall mean, with respect to a Member, the percentage of ownership interest in the Company of such Member (may also be referred to as Interest). Each Member's percentage of Membership Interest in the Company shall be based on his relative capital contributions to the Company and shall be evidenced by a Certificate of Membership Interest. Period of Duration shall mean the period of time between the Company's Date of Organization, and the date on which the Company dissolves, or otherwise ceases existence. Person shall mean an individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign. Substituted Member shall be deemed to have the meaning set forth in Section 3 of Article VI. ARTICLE II OFFICES & RECORDS Section 1. Registered Office & Registered Agent. The Limited Liability Company shall have and maintain a registered office in the State of formation and a resident agent for service of process, who may be a natural person of said state whose business office is identical with the registered office, or a domestic corporation, or a corporation authorized to transact business within said State which has a business office identical with the registered office, or itself which has a business office identical with the registered office and is permitted by said state to act as a registered agent/office within said state. The Management shall appoint the Resident Agent. The Management shall determine the location of the registered office. The current name of the resident agent and location of the registered office shall be kept on file in the appropriate office within the state of formation pursuant to applicable provisions of law. - 2 - Section 2. Limited Liability Company Offices. The Limited Liability Company may have such offices, anywhere within and without the State of formation, the Management from time to time may appoint, or the business of the Limited Liability company may require. The "principal place of business" or "principal business" or "executive" office or offices of the Limited Liability Company may be fixed and so designated from time to time by the Management. Section 3. Records. The Limited Liability Company shall continuously maintain at its registered office, or at such other place as may be authorized pursuant to applicable provisions of law of the State of formation the following records: (a) A current list of the full name and last known business address of each Member and Manager separately identifying the Members in alphabetical order; (b) A copy of the filed Articles of Organization and all amendments thereto, together with executed copies of any powers of attorney pursuant to which any document has been executed; (c) Copies of the Limited Liability Company's federal income tax returns and reports, if any, for the three (3) most recent years; (d) Copies of any then effective written operating agreement and of any financial statements of the Limited Liability Company for the three (3) most recent years: (e) Unless contained in the Articles of Organization, a writing setting out: (1) The amount of cash and a description and statement of the agreed value of the other property or services contributed by each Member and which each Member has agreed to contribute; (2) The items as which or events on the happening of which any additional contributions agreed to be made by each Member are to be made. (3) Any right of a Member to receive, or of a Manager to make, distributions to a Member which include a return of all or any part of the Member's contribution; and 3 (4) Any events upon the happening of which the Limited Liability Company is to be dissolved and its affairs wound up. (f) The Limited Liability Company shall also keep from time to time such other or additional records, statements, lists, and information as may be required by law. (g) If any of the above said records under Section 3 are not kept within the State of formation, they shall be at all times in such condition as to permit them to be delivered to any authorized person within three (3) days. Section 4. Inspection of Records. Records kept pursuant to this Article are subject to inspection and copying at the reasonable request, and at the expense, of any Member, in person or by attorney or other agent, shall have the right during the usual hours of business to inspect for any proper purpose. A proper purpose shall mean a purpose reasonably related to such person's interest as a Member. In every instance where an attorney or other agent shall be the person who seeks the right of inspection, the demand under oath shall be accompanied by a power of attorney or such other writing which authorizes the attorney or other agent to so act on behalf of the Member. ARTICLE III MEMBERS' MEETINGS & COMMITTEES Section 1. Place of Meetings. All meetings of the Members shall be held at the principal business office of the Limited Liability Company in the State of formation except such meetings as shall be held elsewhere by the express determination of the Management; in which case, such meetings may be held, upon notice thereof as hereinafter provided, at such other place or places, within or without the State of formation, as said Management shall have determined, and shall be stated in such notice. Unless specifically prohibited by law, any meeting may be held at any place and time, and for any purpose, if consented to in writing by all of the Members entitled to vote thereat. Section 2. Annual Meetings. An Annual Meeting of Members shall be held on a day determined by the Management; as said Management shall have determined, and shall be stated in such notice. If a legal holiday, then the Annual Meeting of Members shall be held at the same time and place on the next day thereafter, which is a full Business Day. - 4 - MEMBERSHIP INTEREST CERTIFICATES OF INTEREST 11R/2015 Business Search- Business Entities - Business Programs • • • Business Entitles (BE) Online Services - E-File Statements of Information for Corporations - Business Search - Processing Times - Disclosure Search Main Page Service Options Name Availability Forms, Samples & Fees Statements of Information (annual/biennial reports) Filing Tips Information Requests (certificates, copies & status reports) Service of Process FAQs Contact Information Resources - Business Resources - Tax Information - Starting A Business Customer Alerts - Business Identity Theft • Misleading Business Solldtations in. t ': ..'s�fa5 ', jam".: ..w�c ;xq�..ryy t ^` t,',: ..s ,f.. ornia Sccretary of State r' lex Padilla J Business Programs -a a"Ar.r.trc.,, g, E;I� E ,-�<, �;xmsp i c;r' 2 t 1_1: Business Entity Detail Data is updated to the California Business Search on Wednesday and Saturday mornings. 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The data provided is not a complete or certified record of an entity. a..• P&S VENTURES, L.LC 201506210224 02/26/2015 ACTIVE CALIFORNIA 2000 ALBERTA AVE #19 VENICE CA 90291 PATRICK GOLDBERG MCMAHON 2000 ALBERTA AVE # 19 VENICE CA 90291 Indicates the information is not contained in the California Secretary of State's database. * Note: If the agent for service of process is a corporation, the address of the agent may be requested by ordering a status report. • For information on checking or reserving a name, refer to Name Availability. • For information on ordering certificates, copies of documents and/or status reports or to request a more extensive search, refer to Information Requests. • For help with searching an entity name, refer to Search Tips. • For descriptions of the various fields and status types, refer to Field Descriptions and Status Definitions. Modify Search New Search Printer Friendly Back to Search Results Privacy Statement I Free Document Readers Copyright {g 2015 California Secretary of State http. lkepler.sos.ca.govi 1/1 STATE OF CALIFORNIA FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94267-0540 NOTICE DATE: 05/20/15 REQUIREMENTS FOR LIMITED LIABILITY COMPANIES P$S VENTURES, LLC 2000 ALBERTA AVE APT 19 VENICE CA 90291-4587 NOTICE NUMBER: 2754714150516 1 ENTITY ID: SOSL 201506210224 This is not a tax bill. This notice describes tax, fee, and tiling requirements for limited liability companies (LLCs). If your LLC is either: • Organized in or doing business in California, or • Organized in another state or foreign country and is registered with the California Secretary of State. Then your LLC must: 1. Pay the $800 annual tax by the 15th day of the 4th month after the beginning of the current tax year. Use form FIB 3522, Limited Liability Company Tax Voucher. 2. Estimate and pay the annual fee by the 15th day of the 6th month after the beginning of the current tax year. Use form FTB 3536, Estimated Fee for LLCs. 3. File Form 568, Limited Liability Company Return of Income by the 15th day of the 4th month after the end of the tax year. It your LLC files on an extension, refer to foram FTB 3537, Payment for Automatic Extension for LLCs, which describes how to file Form 568 and pay taxes and fees on extension. All LLCs are liable for annual tax, annual fee, and the nonconsenting nonresident member tax unless they elect taxation as a corporation. LLCs can make this election under federal check -the -box regulations. California complies with these federal regulations. To get tax forms, go to ftb.ca.gov. You may also call us. Internet and Telephone Assistance Website: ftb.cs.gov Telephone: 800.852.5711 from within the United States 916.845.6500 from outside the United States TTYWTDD: 800.822.6268 tor persons with hearing or speech impairments FTB 5954 LLC MEO (REV 04-2009) STATE OF CALIFORNIA FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 95827-0540 Aft General LLC Information 111. Limited liability companies (LLCs) combine traditional corporate and partnership characteristics. The California Revised Uniform Limited Liability Company Act (California Corporations Code Sections 17701.01 through 17713.13) authorizes the formation of LLCs in California. it also recognizes out-of-state LLCs that do business in California. To view or download instructions and Form 568, Limited Liability Company Return of Income, go to ftb.ca.gov and search for form 568. • To register or organize an LLC in California, contact the California Secretary of State (SOS): Website: sos.ca.gov Telephone: 916.657.5448 By Mail: CALIFORNIA SECRETARY OF STATE DOCUMENT FILING SUPPORT PO BOX 944228 SACRAMENTO CA 94244-2280 In Person: CALIFORNIA SECRETARY OF STATE 1500 11TH STREET SACRAMENTO CA 95814 Filing Status For California income and franchise tax purposes, generally LLCs are classified into three categories: • Single member LLCs classified as disregarded entities (SMLLC) generally do not report their own income separately from their owners. However, they are treated as separate entities for purposes of the annual tax, LLC fee tax return requirements, and credit limitations. If certain items of income/loss or payments attributable to a disregarded LLC's activities exceed certain levels, the disregarded LLC must separately report its income on its tax return. • LLCs classified as partnerships (more than one member) generally determine and report their California income, deductions, and credits separately under the personal income tax law. These items pass through to their owners for purposes of taxation. • LLCs that elect to be classified as an association (taxable as a corporation) for federal purposes generally determine their California income under corporation tax law. Refer to FTB Publication 1060, Guide for Corporations Starting Business in California, for these types of LLCs. Under Revenue and Taxation Code (R&TC) Section 23038 and the related regulations, an LLC must have the same classification for both California and federal tax purposes. Annual Tax LLCs classified as disregarded entities or as partnerships are subject to an $800 annual tax. This applies if they do business in California or if the SOS accepts their Articles of Organization (LLC-1) or Application for Registration as a Foreign Limited Liability Company(LW-5). LLCs organized or registered in - California are subect to the annual tax even if the conduct no business in California (R&TC Section 17941(b)(1)). For taxable years beginning on or after January 1, 2011, an L C organized in Califomia is doing business in California (R&TC Section 23101(b)(1)). Limited Liability Company Filing information 15-Day Exception LLCs are not subject to the annual tax and fee If both of the following are true: • They did not conduct any business in California during the tax year. • Their tax year was 15 days or fewer. Deployed Military Exception For tax years that begin on or after January 1, 2010, and before January 1, 2018, an LLC that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the annual tax if both of the following apply: • The owner is deployed during the tax year. • The LLC operates at a Toss or ceases operation. For the purpose of this exception: • "Deployed" means called to active duty or active service during a period when the United States is engaged in combat or homeland defense. "Deployed" does not include temporary duty for the sole purpose of training, processing, or permanent change of station. • "Operates at a Toss means an LLC's expenses exceed its receipts. • "Small business" means an LLC with $250,000 or less of total income from all sources derived from or attributable to Califomia. Due Dates for First -Year Annual Tax Payment Domestic LLCs have until the 15th day of the 4th month after they file their Articles of Organization with the SOS to pay the first -year annual tax. For the LLC's first year, this is measured from the date the business files its Articles of Organization. For example, if you filed your Articles of Organization on June 19, your annual tax is due on September 15. Existing foreign LLCs that register or commence business in California after the 15th day of the 4th month of their tax year must pay the annual tax by one of the following, whichever occurs first: • Immediately when they commence business in California. • When they register with SOS. Effective January 1, 2005, an LLC can avoid the first year's $800 annual tax if they file a short -form cancellation with the SOS. See Canceling an LLC section for more information on short form cancellations. FT8 3556 LLC MEO (REV 01-2015) PAGE 1 LLC Fee LLCs are subject to an annual fee based on their total income "from all sources derived from or attributable to Califomia" (R&TC Section 17942). Total Income for LLC fee purposes is "gross income, as defined in R&TC Section .24271, plus the cost of goods sold, paid, or incurred in connection with the trade or business of the taxpayer." LLCs determine total income from Califomia sources by using the rules for sales assignment under R&TC Sections 25135 and 25136 and the related regulations, as modified by regulations under R&TC Section 25137, other than those provisions that exclude receipts from the sales factor (R&TC Section 17942(b)(1)). LLCs must estimate and pay the annual fee by the 15th day of the 6th month, of the current tax year. If the LLC's tax year ends prior to the 15th day of the 6th month, the LLC must pay the fee by the due date for filing its Form 568, Limited Liability Company Return of income. f the The tee amount is: Income* Land 19too6 is: 1995 1998 $250,000 - $499,999 $500,000 - $999,999 1,000,000 4,999,999 $5,000,000 alor more `Rounded to the nearest whole dollar. 2001 1999 2000 aannd $500 $500 $865 $1,042 $900 $1,000 $1,500 $2,595 $3,126 $2,500 $2,000 $3,000 $5,190 $6,251 $6,000 $4,000 $4,500 $7,785 $9,377 $11,790 For tax years that begin on or after January 1, 2001, the definition of total income excludes amounts already included in the calculation of the fee of another LLC. Example LLC A does business only in Califomia during 2010. LLC B has a 50 percent member interest in LLC A. LLC A has $1,200,000 of total income derived from California during 2010. LLC B has $900,000 of total income derived from Califomia during 2010. LLC B's total income includes $600,000 from LLC A ($1.2 million X 50 percent member interest). The filing requirements are: 2010 Tax Year Entity ends prior to Annual Total LLC Fee of thee 6th month the day Tax Income LLC A Form 568 $800 $1,200,000 $6,000 LLC B Form 568 $800 $300,000* $900 • For tax year 2010, LLC 8 excludes $600,000 of total income because the $600,000 was already subject to the fee on LLC A, —he guidelines on how LLCs calculate total income changed ar tax years that begin on or after January 1, 2007. Refer to the instructions for Form 568, Limited Liability Company Return of Income, for information and examples about conducting business within and outside of California. Filing Requirements, Forms, and Mailing Addresses Although California law uses the same entity classification as federal, LLCs classified as partnerships and disregarded LLCs must do all of the following: • File Form 568. • Pay an annual tax of $800. • Pay an annual LLC fee based on total income from all sources derived from or attributable to California. LLCs must file and pay the annual tax and fee if any of the following conditions apply: • They organized in California. • They registered with the SOS to do business in California. • They do business in California (R&TC Section 23101 See Doing Business in California section for more information. Under R&TC Section 23101(a), a foreign nonregistered LLC that is a member of an LLC classified as a partnership or disregarded entity for tax purposes) that Is doing business in California is also doing business in California. In addition under R&TC Section 23101(a), a general partner in a Limited partnership doing business in Califomia by virtue of its activities in this state, is also doing business in Califomia. For tax years that begin on or after January 1, 2011, LLCs that are limited partners in a limited partnership may be doing business in Califomia. See Doing Business in California section for more information. An LLC classified as a partnership that does not meet the conditions above, but has Califomia source income or files to report an election on behalf of a Califomia resident, must file Form 565, Partnership Retum of Income. FTB 3522, LLC Tax Voucher. File and pay the annual tax payment by the 15th day of the 4th month of the LLC's tax year. Send payment with a completed FTB 3522 to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0631 FTB 3536, Estimated Fee for LLCs. For tax years that begin on or after January 1, 2009, LLCs must estimate and pay their applicable fee by the 15th day of the 6th month of the current tax year. LLCs use FTB 3536 to pay the estimated fee. An LLC that underestimates its tee will be subject to a penalty equal to 10 percent of the amount of the underpayment. However, an LLC can avoid the 10 percent estimated fee underpayment penalty if its estimated fee payment for the current tax year is equal to or greater than the total fee owed by the LLC for its preceding tax year. If the estimated fee paid by an LLC is less than the amount of the total fee owed for the tax year, then the LLC must pay the amount of the underpayment by the due date of the LLC's tax return, which is the 15th day of the 4th month after the close of its tax year, or it will be subject to a late payment penalty and applicable interest. FTB 3556 LLC MEO (REV 01-2015) PAGE 2 If an LLC's tax year ends prior to the 15th day of the 6th calendar month of its tax year, then no estimated payment is required and the LLC must pay the fee by the due date of the tax return. •An LLC that is filing under the six-month automatic extension to file will also use FTB 3536 to pay by the due date of the LLC's tax retum any amount of LLC fee owed that was not paid as a timely estimated fee payment. If the LLC does not owe any fee, it is not required to complete or mail FTB 3536. An LLC filing its tax return on a nonextended basis will include any required payment of the fee with its tax return. Send the estimated LLC payment with a completed FTB 3536 to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0651 FTB 3537, Payment for Automatic Extension for LLCs. We grant an automatic six-month extension to file a tax return. The automatic extension applies if LLCs file their tax return by the 15th day of the 10th month after the close of the tax year. An extension of time to file is not an extension of time to pay. LLCs must pay the full balance of any LLC fee as well as any nonconsenting nonresident (NCNB) member's taxes by the original due date of the tax return to avoid penalties and interest. If the LLC does not owe any fee or NCNR members' taxes, then It does not need to file any forms on the !regular due date of the tax return if it is filing under the automatic extension. An LLC will use FTB 3537 only if both of the following apply: • The LLC cannot file Form 568 by the due date. • The LLC owes NCNR members' taxes. Send payment with a completed FTB 3537 to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0651 FTB 568, Limited Liability Company Return of Income. An LLC must file Form 568 by the 15th day of the 4th month after the close of the tax year, unless it files its tax return under the automatic six-month extension. An extension of time to file is not an extension of time to pay. All payments owed including NCNR members' taxes are due on the original due date of the tax retum. Send Form 568, necessary schedules, and payment for applicable fee to: FRANCHISE TAX BOARD PO 80X 942857 SACRAMENTO CA 94257-0601 1f no payment is due, sand completed Form 568 and necessary schedules to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0600 FTB Schedule IW, Limited Liability Company (LLC) income Worksheet. Total income derived from or attributable to California means gross Income, as defined in R&TC Section 24271, plus the cost of goods sold, paid, or incurred in connection with the trade or business of the taxpayer. LLCs with ownership interest in pass -through entities must report their distributive share of the pass -through entities' `Total income from all sources derived from or attributable to California." The distributive share must include the associated cost of goods sold and any deductions subtracted from gross ordinary income to obtain ordinary income. For more information see the instructions for the LLC Income Worksheet in the Form 568 booklet. Disregarded LLCs also compute total income on the LLC Income Worksheet. Disregarded entities that do not meet the filing requirements to complete Form 568 Schedule B or Schedule K should prepare the LLC Income Worksheet by entering the California amounts attributable to the disregarded entity from the member's federal tax return and appropriate schedules. An LLC that is a member of a disregarded LLG must report on the member's Schedule B and K the items of income, deduction and credit attributable to the disregarded LLC. On its LLC Income Worksheet, the single member does not separately enter any amounts attributable to its membership interests in disregarded LLCs. California Schedule K-1 (Form 568) Member's Share of income, Deductions, Credits etc. LLCs that elect classification as a partnership for tax purposes use this schedule to report each member's share of the LLC's income, deductions, credits, etc. We accept this document in a pa eriess format on CD or portable USB flash drive. For information about the Paperiess Schedule K-1 Program, go to ftb.ca.gov and search for K-1. LLCs classified as corporations should refer to FTB Publication 1060, Guide for Corporations Starting Business in California. This publication provides information for these types of LLCs. Converted Business Entities Information If any type of business entity converts to an LLC during the current year, it generally will have a tax liability and filing requirement as both the previous business entity and the new LLC. Nonresident Members LLCs must file FTB 3832, Limited Liability Company Nonresident Members' Consent, with Form 568. The FTB 3832 must have each nonresident member's signed consent to Califomia's jurisdiction to tax the members' distributive share of the LLC's income attributable to California sources. Single -member LLCs do not file FTB 3832. The nonresident member of a single member LLC consents to California tax jurisdiction when it signs the Single Member LLC Information and Consent on Side 1 of Form 568. FTB 3556 LLC MEO (REV 01.2015) PAGE 3 If an LLC fails to obtain the consent signature of a nonresident member, the LLC must pay tax on that member's distributive share of California source income reduced by nonresident .withholding paid on behalf of such member. It must pay tax at the member's highest marginal tax rate. The tax is due by *the Form 568's original tax return due date. Use Schedule T, Nonconsenting Nonresident Members' Tax Liability, to calculate and report NCNR members' taxes the LLC must pay. Filing completed FTB 3832 (or the single member's consent) or Schedule T does not satisfy the member's Califomia filing requirement. Refer to the Form 568 instructions for Schedule T for additional information. Group Nonresident Tax Returns Nonresident members of an LLC doing business or deriving income in California may elect to file a group nonresident tax return (R&TC Section 18535). Get Publication 1067, Guidelines for Filing a Group Form 540NR, for more information. Nonresident Withholding R&TC Section 18662 and related regulations require withholding of Califomia income or franchise taxes from payments and distributions made to nonresidents of California source Income. Get Publication 1017 Resident and Nonresident Withholding Guidelnes, for more information. Doing Business in California California defines doing business as "actively engaging %in any transaction for the purpose of financial or pecuniary gain or profit" (R&TC Section 23101(a)). An LLC is 'doing business" if any of the LLC's members, managers, or other agents performs activities in Califomia on behalf of the LLC, regardless of where the LLC otherwise conducts business. In addition, an LLC is "doing business" in California under R&TC Section 23101(a) in California if: • It is a nonregistered foreign LLC that is a member of an LLC (classified as a partnership for disregarded entity for tax purposes) that does business in Califomia. • It is a general partner in a general or limited partnership that does business in Califomia. For tax years that begin on or after January 1, 2011, a taxpayer, including an LLC, is also doing business in California if any of the following apply: • The taxpayer is organized or commercially domiciled in California. • Sales, as defined in subdivision (e) or (f) of R&TC Section 25120, including sales by the taxpayer's agents and independent contractors, in California, exceed the lesser of $500,000 or 25 percent of the taxpayer's total sales. • Real or tangible property of the taxpayer in California, exceed the lesser of $50,000 or 25 percent of the taxpayer's total real and tangible property. • The amount paid in California by the taxpayer for compensation, as defined in subdivision (c) of R&TC Section 25120, exceeds the lesser of $50,000 or 25 percent of the total compensation paid by the taxpayer. Under R&TC Section 23101(c), we will annually revise the amounts for sales, pro arty, and payroll in paragraphs (2), (3), and (4) of subdivision (b), respectively, in accordance with subdivision (h) of R&T Section 17041. For the preceding conditions, the sales, property, and payroll of the taxpayer include the taxpayer's pro rata or distributive share of the sales, property, and payroll of pass -through entities, such as entities classified as partnerships for Income tax purposes. (R&TC Section 23101(d)). Go to ftb.ca.gov and search for doing business for more information. Example 1 Paul is a California resident and a member of a Nevada LLC. The Nevada LLC owns property in Nevada. The LLC hires a Nevada management company to collect rents and provide maintenance. Paul has the right to hire and fire the management company. He occasionally has telephone discussions from California with the management company in Nevada regarding the property. He is ultimately responsible for the property and oversees the management company. Paul conducts business in California on behalf of the LLC. The LLC must file Form 568. Example 2 Rachel is a California resident and member of an Oregon LLC. The Oregon LLC has a retail store in Oregon. Rachel uses a California address for the LLC's tax filings and a California accountant to prepare the LLC's tax retums. Rachel conducts business In California on behalf of the LLC. The LLC must file Form 568. Example 3 Sara is a California resident and a member of a Texas LLC. The Texas LLC receives royalties from Texas oil wells. Sara maintains a California business bank account and secures financing in California for the LLC's Texas investments. Sara conducts business In California on behalf of the LLC. The LLC must file Form 568. Series LLCs California recognizes series LLCs formed in other states if the laws of their formation state provide for the designation of multiple series of interests in the LLC and: • The holders of the interests in each series are limiter to the assets of that series upon redemption, liquidation, or termination and may share in the income only of that series. • Under the law of the formation state, the payment of expenses, charges, and liabilities of each series is limited to the assets of that series. For annual tax and LLC fee purposes, each series in a series LLC is a separate LLC. Each series LLC must: • File its own Form 568. • Pay its own LLC annual tax and fee. If the series LLC registered in Califomia, the first LLC in the series uses the SOS number as the identification number on its initial payment voucher. All other LLCs in the series must leave the Identification numbers blank on their first payment vouchers. FT8 3556 LLC MEO (REV 01-2015) PAGE 4 1111 MM.. Write "Series LLC # " in red ink on the top of all payment vouchers, tax returns, and correspondence. We will assign an identification number to the rest of the LLCs in the series LLC. We will notify each series of its assigned number after we receive its initial payment voucher. Example ABC LLC is a series LLC registered in Delaware. It contains three series and files in California with the names: ABC LLC, ABC LLC Series 1, and ABC LLC Series 2. Billings and Notices We bill all types of LLCs for unpaid taxes and fees. Depending upon the filing situation for each LLC, we mail one of the following: • Return Information Notice to LLCs if they fail to show the correct annual tax, annual fee, or NCNR member's taxes. We mall this notice to LLCs classified as corporations if they fail to show the correct estimated tax. • Notice of Balance Due to LLCs if they fail to pay the annual tax, fee, or NCNR members' tax. We mail this notice to LLCs classified as corporations if they fail to pay the estimated tax. • Past Due Notice to all types of LLCs for tax liabilities, penalties, and interest unpaid 45 days from the first notice's mail date. LLCs may be subject to penalties and interest if they: • Pay tax (including NCNR) or fee late. • Underpay tax (including NCNR) or fee. • File their tax return beyond the extended due date. • Pay their estimated LLC fee late. • Underpay their estimated LLC fee. We impose penalties under the following R&TC Sections: • Underpayment and monthly, Section 19132. • Delinquent (does not apply to the annual tax), Section 19131. • Late filing, Section 19172. if an LLC pays the balance due within 15 days of the notice's issue date, no additional penalties or interest will accrue. Suspension/Forfeiture If an LLC does not file Form 568 and/or does not pay all tax, penalty, or interest due, its powers, rights, and privileges may be suspended (domestic LLC) or forfeited (foreign LLC). Also, any contracts entered into during suspension or forfeiture are voidable at the request of any party of the contract other than the suspended or forfeited LLC. Such contracts will remain voidable and unenforceable unless the LLC applies for relief of contract voidability and FTB grants relief. See R&TC Sections 23301, 23305.1, and 23305.2 for more information. In addition, a suspended or forfeited LLC cannot file a claim for refund. Go to ftb.ca.gov and search for revive for instructions to restore an LLC to good standing. To Cancel an LLC In general, an LLC Is required to pay the $800 annual tax and file a California tax return until the appropriate paperwork is filed with the SOS to cancel the LLC. In order to cancel an LLC, the LLC must file Form LLC-4f7, — Limited Liability Company Certificate of Cancellation, _ with SOS. The SOS also requires a domestic LLC to file Form LLC-3, Certificate of Dissolution, unless the dissolution is made by vote of all the members. The Form LLC-4/7 is effective on the date it is filed with the SOS. An LLC is not subject to the $800 annual tax for tax years after it files a tax return that it designates in the manner prescribed by the Franchise Tax Board as its final tax retum if it takes all following steps: • Files a timely final California tax retum with us. • Pays the $800 annual tax for the tax year of the final tax return. • Conducts no business in Califomia after the last day of the tax year for which the final retum was filed. • Files Form LLC-4f7, Limited Liability Company Certificate of Cancellation, with the SOS within 12 months of the filing date of its final tax return. For more information, go to ftb.ca.gov and search for 1038 to get FTB Publication 1038, Guide to Dissolve, Surrender, or Cancel a Califomia Business Entity. Short Form Cancellation Beginning January 1, 2005, a domestic LLC organized in Califomia on or after January 1, 2004, can file a Forrn LLC-4/8, Short Form Certificate of Cancellation, if all of the following requirements are met: • It files California SOS Form LLC-4/8, Limited Liability Company Short Form Cancellation, within 12 months after filing its Articles of Organization. • It does not have any debts or other liabilities (other than LLC tax liabilities). • It has filed or states it will file a timely final annual LLC tax return. • Alt of its known assets have been distributed to the persons entitled to them, or it had no known assets. • It has not conducted any business since the time it filed its Articles of Organization. • A majority of the managers or members, or if there are no managers or members, the person or a majority of the persons who signed the Articles of Organization, vote to dissolve the domestic LLC. • If the LLC received payments for interests from investors, those payments have been returned to those investors. The domestic LLC must file SOS Form LLC-4/8, with the SOS. It must include a statement that all of the terms above, with the exception of the filing of the final tax return, have been completed before the SOS will cancel the LLC. If the SOS files the Form LLC-4/8, the LLC will not be subject to the annual $800 tax for its first tax year. However, an LLC is not entitled to a reimbursement of any annual taxes or fees paid prior to cancellation for its first tax year. FTB 3556 LLC MEO (REV 01.2015) PAGE 5 i For more information on how to cancel your LLC, contact SOS. Refer to the SOS contact information on PAGE 1. LLC Fee Litigation • Four separate cases have been filed challenging the constitutionality of the LLC fee as calculated according to former R&TC Section 17942. Each case presents separate factual circumstances. The following two cases are now final: • Northwest Energetic Services, LLC v. Franchise Tax Board (2008) 159 Cal. App. 4th 841 (NES) • Ventas Finance 1, LLC v. Franchise Tax Board (2008) 165 Cal. App. 4th 1207 (Ventas) The following two cases, which also challenge the fee statute on additional grounds, are still ongoing as of the date of this form's publication. • Bakersfield Mall, LLC v. Franchise Tax Board (Bakersfield) • CA Centerside II, LLC v. Franchise Tax Board (Centerside) An LLC with an open statute of limitations may want to file a protective claim for refund to withhold any action on its claim while this litigation is pending. Claims for Refund of LLC Fees •Assembly Bill 198 changed the way California determines the LLC fee for years beginning on or after January 1, 2007, under R&TC Section 17942. LLCs with substantially the same factual situation as NES and Ventas who have paid an LLC fee and have an open statute of limitations for years prior to 2007 may be entitled to claim a refund of the LLC fee paid based on the following court cases: 1. NES, an LLC registered in California that did not earn income in California. 2. Ventas, an LLC registered in Califomia that earned income inside and outside of Califomia. To determine if your LLC's claim qualified under one of these cases, go to ftb.ca.gov and search for notice 2008-2 or notice 2009-04. Protective Claims To protect the statute of limitations on a claim, LLCs may file a request with us to withhold any action on their claim while an audit determination or litigation is pending. The LLC may file a protective claim pending the outcome of: • An appeal to the State Board of Equalization. • A court case. • An audit by the Internal Revenue Service. • An audit by another Califomia taxing agency. • Other litigation. FTB 3556 LLC MEO (REV 01.2016) PAGE 6 If an LLC wants to file a protective claim based on Bakersfield or Centerside, it must send us a letter that contains the following information: • A statement, "This is a protective claim.' • The LLC name, address, and identification number issued by SOS. (Unregistered LLCs use the identification number issued by the Franchise Tax Board.) • The tax years involved. • A description of the issue (stating pending outcome of Bakersfield or Centerside litigation is enough). • The amount of claim for refund, which should match the annual fee paid by the LLC. • Name, address, phone and fax number of person to contact. The letter must be signed by a representative with a power of attorney or by the LLC's managing member. The claim will be held pending result of the court's final decision. Protective Claim or Claim for a Refund Submissions Send the required information for your protective claim, claim for a refund, or amended tax return to: Fax: 916.845.9796 Mail: FEDERAL STATE SPECIAL AUDIT SECTION MS F340 FRANCHISE TAX BOARD PO BOX 1998 RANCHO CORDOVA CA 95741.1998 Courier: FEDERAL STATE SPECIAL AUDIT SECTION MS F340 FRANCHISE TAX BOARD SACRAMENTO CA 95827-1500 California Business Forms To get California forms for LLCs, go to ftb.ca.gov and search for the required form number. Section 3. Special Meetings. Special meetings of the Members may be held for any purpose or purposes. They may be called by the Manager or by Members holding not less than fifty-one percent of the voting power of the Limited Liability Company or such other maximum number as may be required by the applicable law of the State of Formation. Written notice shall be given. Section 4. Action in Lieu of Meeting. Any action required to be taken at any Annual or Special Meeting of the Members or any other action which may be taken at any Annual or Special meeting of the Members may be taken without a meeting if consents in writing setting forth the action so taken shall be signed by all of the Members entitled to vote with respect to the subject matter thereof. Section 5. Notice. Written notice of each meeting of the Members, whether Annual or Special, stating the place, day and hour of the meeting, and, in case of a Special meeting, the purpose or purposes thereof, shall be given or given to each Member entitled to vote thereat, not less than ten (10) nor more than sixty (60) days prior to the meeting unless, as to a particular matter, other or further notice is required by law, in which case such other or further notice shall be given. Notice upon the Member may be delivered or given either personally or by express or first class mail, or by telegram or other electronic transmission, with all charges prepaid, addressed to each Member at the address of such Member appearing on the books of the Limited Liability Company or more recently given by the Member to the Limited Liability Company for the purpose of notice. If no address for a Member appears on the Limited Liability Company's books, notice shall be deemed to have been properly given to such Member if sent by any of the methods authorized herein to the Limited Liability Company's principal executive office to the attention of such Member, or if published, at least once in a newspaper of general circulation in the county of the principal executive office and the county of the Registered Office in the State of formation of the Limited Liability Company. If notice addressed to a Member at the address of such Member appearing on the books of the Limited Liability Company is returned to the Limited Liability Company by the United States Postal Service marked to indicate that the United States Postal Service is unable to deliver the notice to - 5 - the Member at such address, all future notices or reports shall be deemed to have been duly given without further mailing if the same shall be available to the Member upon written demand of the Member at the principal executive office of the Limited Liability Company for a period of one (1) year from the date of the giving of such notice. It shall be the duty and responsibility of each member to provide the manager and/or the Limited Liability Company with an official mailing address. Notice shall be deemed to have been given at the time when delivered personally or deposited in the mail or sent by telegram or other means of electronic transmission. An affidavit of the mailing or other means of giving any notice of any Member meeting shall be executed by the Management and shall be filed and maintained in the Minute Book of the Limited Liability Company. Section 6. Waiver of Notice. Whenever any notice is required to be given under the provisions of this Agreement, or the Articles of Organization of the Limited Liability Company or any law, a waiver thereof in writing signed by the Member or Members entitled to such notice, whether before or after the time stated therein, shall be deemed the equivalent to the giving of such notice. To the extent provided by law, attendance at any meeting shall constitute a waiver of notice of such meeting except when the Member attends the meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened, and such Member so states such purpose at the opening of the meeting. Section 7. Presiding Officials. Every meeting of the Limited Liability Company for whatever reason, shall be convened by the Manager or Member who called the meeting by notice as above provided; provided, however, it shall be presided over by the Management; and provided, further, the Members at any meeting, by a majority vote of Members represented thereat, and notwithstanding anything to the contrary elsewhere in this Agreement, may select any persons of their choosing to act as the Chairman and Secretary of such meeting or any session thereof. Section 8. Business Which May Be Transacted at Annual Meetings. At each Annual Meeting of the Members, the Members may elect, with a vote representing a Majority in Interest of the Members, a Manager or Managers to administer and regulate the affairs of the Limited Liability - 6 - Company. The Manager(s) shall hold such office until the next Annual Meeting of Members or until the Manager resigns or is removed by the Members pursuant to the terms of this Agreement, whichever event first occurs. The Members may transact such other business as may have been specified in the notice of the meeting as one of the purposes thereof. Section9. Business Which May Be Transacted at Special Meetings. Business transacted at all special meetings shall be confined to the purposes stated in the notice of such meetings. Section 10. Quorum. At all meetings of the Members, a majority of the Members present, in person or by proxy, shall constitute a quorum for the transaction of business, unless a greater number as to any particular matter is required by law, the Articles of Organization or this Agreement, and the act of a majority of the Members present at any meeting at which there is a quorum, except as may be otherwise specifically provided by law, by the Articles of Organization, or by this Agreement, shall be the act of the Members. Less than a quorum may adjourn a meeting successively until a quorum is present, and no notice of adjournment shall be required. Section 11. Proxies. At any meeting of the Members, every Member having the right to vote shall be entitled to vote in person, or by proxy executed in writing by such Member or by his duly authorized attorney -in -fact. No proxy shall be valid after three years from the date of its execution, unless otherwise provided in the proxy. Section 12. Voting. The members of the Limited Liability Company shall vote in proportion to their interests as currently recorded in the books of the Company, as the amount of such capital is adjusted from time to time to properly reflect any additional contributions to or withdrawals from capital by the Member. Section 13. Advisory Committees. The Management may establish one or more Advisory Committee or Committees to advise or make suggested recommendations on various aspects of the Limited Liability Company's business or operations. The Management shall designate in writing the members of each Committee, the chairperson of each Committee and specify the duties and functions of each Committee. Each - 7 - • Committee shall consist of one or more Members of the Limited Liability Company. The members of each Committee shall not be entitled to any compensation for their attendance at Committee meetings or work done in connection with their membership on such Committee. Said Committee or Committees shall have no management authority. Their findings, reports or recommendations shall be non -binding upon the Management or Limited Liability Company or its Members. Section 14. Meeting by Telephonic Conference or Similar Communications Equipment. Unless otherwise restricted by the Articles of Organization, this Agreement or by law, the Members of the Limited Liability Company, or any Committee thereof established by the Management, may participate in a meeting of such Members or committee by means of telephonic conference or similar communications equipment whereby all persons participating in the meeting can hear and speak to each other, and participation in a meeting in such manner shall constitute presence in person at such meeting. ARTICLE IV MANAGEMENT Section 1. Management. Unless prohibited by law and subject to the terms and conditions of this Agreement, the administration and regulation of the affairs, business and assets of the Limited Liability Company shall be managed by: () one Manager (X) more than one Manager () the Members. Any Manager may be a Member and shall be elected annually by the Members in the manner prescribed by Section 8 of Article III of this Agreement. Section 2. Rights, Powers es Obligations of the Management. The Management shall have all the rights and powers as are conferred by law or are necessary, desirable or convenient to the discharge of the Management's duties under this Agreement. Without limiting the generality of the rights and powers of the Management, the Management shall have the following rights and powers which the Management may exercise in its sole discretion at the cost, expense and risk of the Limited Liability Company: (a) To deal in any Limited Liability Company asset whether an interest in real estate or personal property or chose in action, to sell (for cash or for debt to be held by the Limited Liability Company), exchange or convey 8 title to, and to grant options for sale of all or a portion of the Limited Liability Company's assets; (b) To borrow money and as security therefore to encumber all or any part of the Limited Liability Company's assets; (c) To prosecute, defend and settle lawsuits and claims and to handle matters with governmental agencies; (d) To open, maintain and close bank accounts and banking services for the Limited Liability Company and designate and change signatories on such accounts or services; (e) To incur and pay all legal, accounting, investment banking, independent financial consulting, litigation and other fees and expenses as the Management may deem necessary or appropriate for carrying on and performing the powers and authorities herein conferred; (f) To negotiate and make any disposition of the Limited Liability Company's asset on such terms and conditions as the Manger deems appropriate: (g) To execute and deliver any contracts, agreements, instruments or documents necessary, advisable or appropriate to evidence any of the transactions specified above or contemplated hereby and on behalf of the Limited Liability Company to exercise Limited Liability Company rights and perform Limited Liability Company obligations under any such agreements, contracts, instruments or documents; (h) To exercise for and on behalf of the Limited Liability Company all the General Powers granted by law to the Limited Liability Company, and, (i) To take such other action as the Management deems necessary and appropriate to carry out the purposes of the Limited Liability Company or this Agreement. Section 3. Removal. Any Manager may be removed or discharged by the Members whenever in their judgment the best interests of the Limited Liability Company would be served thereby. The removal of the Manager shall be by a unanimous vote of a quorum consisting of Members who are not the Manager of the Limited Liability Company and without prejudice to the contract rights, if any, of the Manager so removed. - 9 - ARTICLE V INDEMNIFICATION OF MEMBERS, MANAGERS, AGENTS AND EMPLOYEES Section 1. Members & Managers. The Limited Liability Company shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Limited Liability Company, by reason of the fact that he/she is or was a Member or Manager of the Limited Liability Company, or is or was serving at the request of the Limited Liability Company as a director, manager, of officer, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise, against expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by him/her in connection with the defense or settlement of such action, suit or proceeding, including attorney's fees, to the full extent permitted by law. Section 2. Employees & Agents. The Limited Liability Company may, at the discretion of the Members, indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Limited Liability Company, by reason of the fact that he/she is or was an employee or agent of the Limited Liability Company, or is or was serving at the request of the Limited Liability Company, as a manager, director, officer, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise, against expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by him/her in connection with the defense or settlement of such action, suit or proceeding, including attorneys' fees, to the full extent permitted by law. Section 3. Expenses. The Limited Liability Company shall pay the Member or Manager, or such person or entity as the Member or Manager may designate, on a continuing and current basis, and in any event not later than thirty (30) Business Days following receipt by the Limited Liability Company of the Member's or Manager's request for reimbursement, all expenses, including attorney's fees, costs, settlements, fines and judgments incurred by or levied upon the Member or Manager in connection with any action, suit or proceeding referred to in Article V, Section 1. - 10 - 1 To the extent that an employee or agent of the Limited Liability Company has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Article V, Section 2, or in defense of any claim, issue or matter therein, he/she may be indemnified against expenses actually and reasonably incurred by such person in connection therewith, including attorneys' fees. Expenses incurred by a Member or Manager in defending a civil or criminal action, suit, or proceeding may be paid by the Limited Liability Company in advance of the final disposition of such action, suit, or proceeding upon receipt of an undertaking by or on behalf of the Member or Manager to repay such amount if it is ultimately determined that the Member or Manager is not entitled to be indemnified by the Limited Liability Company as authorized in this Agreement. Such expenses incurred by other employees and agents may be so paid upon such terms and conditions, if any, as the Members deem appropriate. Section 4. Authorization. Any indemnification of Members, Manager(s), employees or agents pursuant to this Article V, unless ordered by a court, shall be made by the Limited Liability Company only as authorized in the specific case upon a determination that such indemnification is proper in the circumstances because such Member, Manager, employee or agent has met the applicable standard of conduct set forth by Iaw. Such determination shall be made by the Members by a majority vote of a quorum consisting of Members who were not parties to the action, suit, or proceeding, or if such a quorum is not obtainable, or even if obtainable a quorum of disinterested Members so directs, by independent legal counsel in a written opinion. Section 5. Notification & Defense of Claim. Promptly after receipt by a Member, Manager, employee or agent of notice of the commencement of any action, suit or proceeding, the Member, Manager, employee or agent will, if a claim in respect thereof is to be made against the Limited Liability Company, notify the Limited Liability Company of the commencement thereof. The failure to promptly notify the Limited Liability Company will not relieve the Limited Liability Company from any liability that it may have to the Member, Manager, employee or agent thereunder, except to the extent the Limited Liability Company is prejudiced in its defense of such claim as a result of such failure. Unless otherwise requested by the Members, written notification shall not be necessary if the Member, Manager, employee or agent informs a majority of the Members of the commencement of any such action, or, independent of such notification by the Member, Manager, employee or agent, a majority of the Members has reason to believe such action has been initiated or threatened. With respect to any such action, suit or proceeding as to which the Member, Manager, employee or agent notified, or is deemed to have notified, the Limited Liability Company of the commencement thereof, the following shall apply: (a) The Limited Liability Company is entitled to participate therein at its own expense and, (b) Except as otherwise provided below, to the extent that it may wish, the Limited Liability Company, jointly with any other indemnifying party similarly notified, will be entitled to assume the defense thereof with counsel reasonably satisfactory to the Member, Manager, employee or agent. After notice from the Limited Liability Company to the Member, Manager, employee or agent of its election so to assume the defense thereof, the Limited Liability Company will not be liable to the Member, Manager, employee or agent in connection with the defense thereof other than reasonable costs of investigation or unless: (1) the employment of separate counsel by the Member, Manager, employee or agent has been authorized by the Limited Liability Company, (2) the Member, Manager, employee or agent reasonably concludes that there may be a conflict of interest between the Limited Liability Company and the Member, Manager, employee or agent in the conduct of the defense of such action and that such conflict may lead to exposure for the Member, Manager, employee or agent not otherwise indemnifiable and the Member, Manager, employee or agent notifies the Limited Liability Company of such conclusion and decision to employ separate counsel, or (3) the Limited Liability Company fails to employ counsel to assume the defense of such action. The Limited Liability Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Limited Liability Company or as to which the Member, Manager, employee or agent reasonably makes the conclusion provided for in (b)(2) above; and (c) The Limited Liability Company shall not be liable to indemnify the Member, Manager, employee or agent for any amount paid in settlement of any action or claim effected without its written consent. The Limited Liability Company shall not settle any action or claim in any manner which would impose any penalty or limitation on the Member, Manager, employee or agent without the written consent of the Member, Manager, employee or agent. Neither the Limited Liability Company, nor the Member, Manager, employee, or agent will unreasonably withhold their consent to any proposed settlement. - 12 - Section 6. Not Exclusive. The indemnification and advancement of expenses provided by this Article V shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under the Articles of Organization, as amended from time to time, or any agreement, vote of disinterested Members or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a Member or Manager and shall inure to the benefit of the heirs, executors and administrators of such person. Section 7. Further Indemnity. The Limited Liability Company shall have the power to give any further indemnity, in addition to the indemnity authorized or contemplated under this Article V, to any person who is or was a Member, Manager, employee or agent or to any person who is or was serving at the request of the Limited Liability Company as a manager, director, officer, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise; provided, however, no such indemnity shall indemnify any person from or on account of such person's conduct which was finally adjudged to have been knowingly fraudulent, deliberately dishonest or willful misconduct, or if it is determined by a final judgment or other final adjudication by a court of competent jurisdiction considering the question of indemnification that such payment of indemnification is or would be in violation of applicable law. The Limited Liability Company may enter into indemnification agreements with each Member or Manager of the Limited Liability Company whom the Members authorize by vote of a majority of a quorum of disinterested Members. Section 8. Insurance. The Limited Liability Company may purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a Member, Manager, employee or agent of the Limited Liability Company, or is or was serving at the request of the Limited Liability Company as a manager, director, employee or agent of another Limited Liability company, corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him/her and incurred by him/her in any such capacity, or arising out of his/her status as such, whether or not the Limited Liability Company would have the power to indemnify him/her against such liability under the provisions of this Article V. When, and if the Limited Liability Company obtains such insurance coverage or makes such other financial arrangements, the Limited Liability Company shall not be required to maintain such insurance coverage or other financial arrangements in effect; provided, however, the Limited Liability Company notifies the covered person in writing within five (5) business days of the making of the decision to not renew or - 13 - • • replace such insurance policy or maintain such other financial arrangements in effect. The maintenance of such insurance or other financial arrangements shall not diminish, relieve or replace the Limited Liability Company's liability for indemnification under the provisions hereof. A claim for reimbursement thereunder, shall not be denied on the basis that such amount may or will be covered by such insurance policy or other financial arrangements, if such payments from the insurance company or other financial arrangements will not be made to the covered person within ten (l0) business days of the claim for reimbursement. The other financial arrangements made by the Limited Liability Company pursuant to this Article may include: (a) the creation of a trust fund; (b) the establishment of a program for self-insurance; (c) the securing of its obligation or indemnification by granting a security interest or other lien on any assets of the Limited Liability Company; (d) any other financial arrangements permitted by law; or, (e) any combination of the above. Section 9. Additional Definitions. For the purpose of this Article V, references to "the Limited Liability Company" shall be deemed to include all constituent entities absorbed in a consolidation or merger as well as the resulting or surviving entity, so that any person who is or was a Member or Manager of such a constituent entity or is or was serving at the request of such constituent entity as a manager, director or officer of another limited liability company, corporation, partnership, joint venture, trust or other enterprise shall stand in the same position under the provisions of this Article V, with respect to the resulting or surviving corporation or entity as he/she would if he/she had served the resulting or surviving corporation or entity in the same capacity. For purposes of this Article V, the following definitions shall apply: (a) The term "other enterprise" shall include employee benefit plans. (b) The term "fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan. - 14 - e (c) The term "serving at the request of the Limited Liability Company" shall include any service as a Member or Manager of the Limited Liability Company which imposes duties on, or involves services by, such Member or Manager with respect to an employee benefit plan, its participants, or beneficiaries. (d) A person who acted in good faith and in a manner he reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Limited Liability Company". ARTICLE VI MEMBERSHIP INTEREST Section 1. Contribution to Capital. The Member contributions to the capital of the Limited Liability Company may be paid for, wholly or partly, by cash, by personal property, or by real property, or services rendered. By unanimous consent of the Members, other forms of contributions to capital of a Limited Liability company authorized by law may be authorized or approved. Upon receipt of the total amount of the contribution to capital, the contribution shall be declared and taken to be full paid and not liable to further call, nor shall the holder thereof be liable for any further payments on account of that contribution. Members may be subject to additional contributions to capital as determined by the unanimous approval of Members from time to time. Section 2. Valuation of Personal or Real Property 86 Services Rendered. Unless required or recommended by any law or any governmental regulation or court decision or administrative ruling applicable to this Limited Liability Company, the value to be assigned to a contribution to capital of the Limited Liability Company of personal or real property shall be determined in the following manner. The Member contributing such personal or real property must submit at the time of the contribution a minimum of two appraisals by appraisers satisfactory to the Management. The average appraised price as determined from the appraisals submitted shall be the amount assigned to this contribution of capital. In the event the Member demands a return of his/her contribution to capital and such return is authorized pursuant to this Agreement and law, the Limited Liability Company shall be only obligated to return the original monetary value assigned to the property at the time of its contribution to capital. Unless required or recommended by any law or any governmental regulation or court decision or administrative ruling applicable to this Limited Liability Company, the value to be assigned to a contribution to capital of the - 15 - • • s Limited Liability Company for services rendered shall be the amount the Management determines is the fair market value for such services. Section 3. Transfer or Assignment of Membership Interest. A Member's interest in the Limited Liability Company is personal property. Except as otherwise provided in this Agreement, a Member's interest may be transferred or assigned. If all of the other Members of the Limited Liability Company other than the Member proposing to dispose of his/her interest do not approve of the proposed transfer or assignment by unanimous written consent, the transferee of the Member's interest has no right to participate in the management of the business and affairs of the Limited Liability Company or to become a member. The transferee is only entitled to receive the share of profits or other compensation by way of income, and the return of contributions, to which that Member would otherwise be entitled. A Substituted Member is a person admitted to all the rights of a Member who has died or has assigned his/her interest in the Limited Liability Company with the approval of all the Members of the Limited Liability Company by unanimous written consent. The Substituted Member shall have all the rights and powers and is subject to all the restrictions and liabilities of his/her assignor, except that the substitution of the assignee does not release the assignor from liability to the Company under this Agreement. Section 4. Return of Contributions to Capital. Return to a Member of his/her contribution to capital shall be as determined and permitted by law and this Agreement. Section 5. Addition of New Members. A new Member may be admitted into the Company only upon consent of a Majority in Interest of the Members. The amount of Capital Contribution which must be made by a new Member shall be determined by the vote of all existing Members. A new Member shall not be deemed admitted into the Company until the Capital Contribution required of such person has been made and such person has become a party to this agreement. ARTICLE VII - 16 - DISTRIBUTION OF PROFITS Section 1. Qualifications & Conditions. The profits of the Limited Liability Company shall be distributed to the Members, from time to time, as permitted under law and as determined by the Members of the Limited Liability Company at an Annual or Special Meetings of the Members. Section 2. Record Date. The Record Date for determining Members entitled to receive payment of any distribution of profits shall be the day in which the Members in a meeting adopt the resolution for payment of a distribution of profits. If the adoption of the aforementioned resolution is by action in lieu of a meeting pursuant to Section 4 of Article III, the Record Date shall be the date of the written consent. Only Members of record on the date so fixed are entitled to receive the distribution notwithstanding any transfer or assignment of Member's interests or the return of contribution to capital to the Member after the Record Date fixed as aforesaid, except as otherwise provided by law. Section 3. Participation in Distribution of Profit. Each Member's participation in the distribution shall be in proportion to that Member's contribution to the Limited Liability Company's total capital on the Record Date, as adjusted to reflect all of the Member's contributions to or withdrawals from capital on or before the Record Date. Section 4. Limitation on the Amount of Any Distribution of Profit. In no event shall any distribution of profit result in the assets of the Limited Liability Company being less than all the liabilities of the Limited Liability Company, on the Record Date, excluding liabilities to Members on account of their contributions to capital or be in excess of that permitted by law. Section 5. Date of Payment of Distribution of Profit. Unless another time is specified by the applicable law, the payment of the distribution of profit shall be within thirty (30) days after the Record Date. ARTICLE VIII ISSUANCE OF MEMBERSHIP INTEREST CERTIFICATES - 17 - Section 1. Issuance of Certificate of Interest. The interest of each Member in the Company shall be represented by a Certificate of Interest (also referred to as the Certificate of Membership Interest or the Certificate). Upon the execution of this Agreement and the payment of a Capital Contribution by the Member, the Management shall cause the Company to issue one or more Certificates in the name of the Member certifying that he/she is the record holder of the Membership Interest set forth therein. Section 2. Transfer of Certificate of Interest. A Membership Interest which is transferred in accordance with the terms of Section 3 of Article VI of this Agreement shall be transferable on the books of the Company by the record holder thereof in person or by such record holder's duly authorized attorney, but, except as provided in Section 3 of this Article with respect to lost, stolen or destroyed certificates, no transfer of a Membership Interest shall be entered until the previously issued Certificate representing such Interest shall have been surrendered to the Company and cancelled and a replacement Certificate issued to the assignee of such Interest in accordance with such procedures as the Management may establish. The management shall issue to the transferring Member a new Certificate representing the Membership Interest not being transferred by the Member, in the event such Member only transferred some, but not all, of the Interest represented by the original Certificate. Except as otherwise required by law, the Company shall be entitled to treat the record holder of a Membership Interest Certificate on its books as the owner thereof for all purposes regardless of any notice or knowledge to the contrary. Section 3. Lost, Stolen or Destroyed Certificates. The Company shall issue a new Membership Interest Certificate in place of any Membership Interest Certificate previously issued if the record holder of the Certificate: (a) makes proof by affidavit, in form and substance satisfactory to the Management, that a previously issued Certificate has been lost, destroyed or stolen; (b) requests the issuance of a new Certificate before the Company has notice that the Certificate has been acquired by a purchaser for value in good faith and without notice of an adverse claim; (c) satisfies any other reasonable requirements imposed by the Management. - 18 - i If a Member fails to notify the Company within a reasonable time after it has notice of the loss, destruction or theft of a Membership Interest Certificate, and a transfer of the Interest represented by the Certificate is registered before receiving such notification, the Company shall have no liability with respect to any claim against the Company for such transfer or for a new Certificate. ARTICLE IX AMENDMENTS Section 1. Amendment of Articles of Organization. Notwithstanding any provision to the contrary in the Articles of Organization or this Agreement, in no event shall the Articles of Organization be amended without the vote of Members representing a Majority in Interest of the Members. Section 2. Amendment, Etc. of Operating Agreement. This Agreement may be adopted, altered, amended or repealed and a new Operating Agreement may be adopted by a Majority in Interest of the Members. ARTICLE X MISCELLANEOUS Section 1. Fiscal Year. The Members shall have the paramount power to fix, and from time to time, to change, the Fiscal Year of the Limited Liability Company. In the absence of action by the Members, the fiscal year of the Limited Liability Company shall be on a calendar year basis and end each year on December 31 until such time, if any, as the Fiscal Year shall be changed by the Members, and approved by Internal Revenue Service and the State of formation. Section 2. Annual Financial Statements; Statements of Account. Within ninety (90) business days after the end of each Fiscal Year, the Management shall send to each Member who was a Member in the Limited Liability Company at any time during the Fiscal Year then ended an unaudited statement of assets, liabilities and Contributions To Capital as of the end of such Fiscal Year and related unaudited statements of income or loss and changes in assets, liabilities and Contributions to Capital. Within forty, five (45) days after each fiscal quarter of the Limited Liability Company, the Management shall mail to each Member an unaudited report providing narrative and summary financial information with respect to the Limited - 19 - • • IMO Liability Company. The Management may extend such time period in its sole discretion if additional time is necessary to furnish complete and accurate information pursuant to this Section. Section 3. Events Requiring Dissolution. The following events shall require dissolution and winding up the affairs of the Limited Liability Company: (a) When the period fixed for the duration of the Limited Liability Company expires as specified in the Articles of Organization; (b) By the written approval by a Majority In Interest of the Members to dissolve the Company; (c) Upon the death, retirement, resignation, expulsion, bankruptcy or dissolution of a Member or occurrence of any other event which terminates a Member's continued Membership in _-the Company, unless the business of the Limited Liability Company is continued by the unanimous vote of all remaining Members within ninety (90) days of the happening of that event. Section 4. Choice of Law. IN ALL RESPECTS THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FORMATION INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY, PERFORMANCE AND THE RIGHTS AND INTERESTS OF THE PARTIES UNDER THIS AGREEMENT WITHOUT REGARD TO THE PRINCIPLES GOVERNING CONFLICTS OF LAWS, UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT. Section 5. Severability. If any of the provisions of this Agreement shall contravene or be held invalid or unenforceable or conflict with or contravene any provision of the Article of Organization of the Limited Liability Company, the affected provision or provisions of this Agreement shall be construed or restricted in its or their application only to the extent necessary to permit the rights, interests, duties and obligations of the parties hereto to be enforced according to the purpose and intent of this Agreement and in conformance with the applicable law or laws. Section 6. Successors & Assigns. - 20 - • • Except as otherwise provided, this Agreement shall be binding upon and inure to the benefit of the parties and their legal representative, heirs, administrators, executors and assigns. Section 7. Non -waiver. No provision of this Agreement shall be deemed to have been waived unless such waiver is contained in a written notice given to the party claiming such waiver has occurred, provided that no such waiver shall be deemed to be a waiver of any other or further obligation or liability of the party or parties in whose favor the waiver was given. Section 8. Captions. Captions contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provision hereof. Section 9. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. It shall not be necessary for all Members to execute the same counterpart hereof. Section 10. Membership. A corporation may be a member of this Limited Liability Company. Section 11. Definition of Words.` Wherever in this agreement the term he/she is used, it shall be construed to mean also it as pertains to a corporation member. Section 12. Function of Organizer. Upon the filing and approval of the Articles of Organization by the Secretary of State, the Organizer will have fulfilled his/her obligation to the Company. If the individual serving as Organizer is also a member or manager, he/ she may incur additional interest in or obligation to the Company. IN WITNESS WHEREOF, the undersigned, being the members of the above -named limited liability company, have hereunto executed this Agreement on May 5, 2015. Patrick G. McMahon Type or Print Name of Member Scott E. Lambert Type or Print Name of Member Type or Print Name of Member Type or Print Name of Member Type or Print Name of Member Type or Print Name of Member Type or Print Name of Member Type or Print Name of Member /Seal/ 22 - Signatur Signature Signature Signature Signature Signature Signature Signature MINUTES Exhibit K Exhibit K Distribution Notarized statement Location where cannabis will be distributed: Street address: 77-700 Enfield Lane Suite A, City: Palm Desert, CA Zip 92211 Signature of Leasee: Date: 14)1 l � I give P & S Ventures Inc permission to distribute medical and adult use cannabis at the premises identified above to the extent that such distribution is done in compliance with Palm Desert and CA State Law. In signing this form I further attest I am the owner and/or landlord of the above named property and I have the authority to authorize the use of the premises to cultivate and/or manufacture marijuana Signature of Leasor/Owner: Name Of Owner: ( 5lr C ( � Ay1 /r t� s,�-.+, /� h, .� ,�1.� f c r Alt_ Address: 72100 Magnesia Falls Drive Suite 2 Rancho Mirage CA 92270 (760) 837-1880 Date: /z i5 State of California County of Riverside Signed or attested before me on (date) by (name(s) of person(s)) (Signature of notarial officer) (Seal, if any) (Name - typed, stamped, or printed) Title (and Rank) (Residing at) [My commission expires: I Exhibit K CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of CalifRrn,1/ County of4 YL��� On ` ( J t'5,2U1 before me,s Date personally appeared re Insert Name and Title of the Officer Name(s) of Sfgner(s) who proved to me on the basis of satisfactory evidence to be t - •erson(j' whose name is re scribed to the within instrumen and acknowl ged to me tha he/they executed the same in OW/her/their authorized capacity(i and that y her/their signature on the instrument the person(s) or the entity upon behalf of which the person() cted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. JOANNA DUENAS Commission # 2058005 Z Notary Public - California Riverside County My Comm. Expires Feb 15, 20181 WITNESS my hand and ol seal. Signature acA Signature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ri Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee Li Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): Li Partner — ❑ Limited ❑ General ❑ Individual El Attorney in Fact ❑ Trustee El Guardian or Conservator ❑ Other: Signer Is Representing: ©2016 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 SECURITY AGREEMENT The parties to this security agreement are: $ESURED PARTY Name Gerald J. McMahon D.F'.4B Name P&S Ventures, LLC Common Definitions I. Definitions Address: The Standard Oil Building 26 Broadway, 18th Floor New York, NY 10004 Address: 36380 Bankside Drive, Cathedral City, CA 92234 As used in this security agreement, "Collateral" means all right, title. and interest of Debtor now owned or hereafter acquired by P&S Ventures, LLC "Indebtedness" means Debtor's obligations, obligations representing the purchase price of property other than accounts payable arising in connection with the purchase of inventory on tenns customary in the trade, and obligations under leases that would be capitalized in accordance with generally accepted accounting principles. "Lien" means any security interest. mortgage, pledge, lien. attachment, claim, charge. encumbrance. agreement retaining title. or lessor's interest covering the collateral. "Obligations" means all existing and future indebtedness and liability of Debtor to Secured Party, including all obligations under that certain loan agreement dated August , 2016. and attorney fees and costs incurred by Secured Party in enforcing this security agreement or collecting payment under it. Definitions Related to Type of Collateral "Accounts" means all accounts, as that tenn is defined in section 9102(aX2) of the California Commercial Code, now owned or hereafter acquired by Debtor. including (a) all accounts receivable, other receivables. book debts and other former of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments), Page 1 of 11 whether arising out of Goods sold or services rendered by it or from any other transaction (including any such obligations that may be characterized as an account or contract right under the Calitbrnia Commercial Code); (b) all of Debtor's rights in, to, and under all purchase orders or receipts for Goods or services; (c) all of Debtor's rights to any Goods represented by any of the foregoing (including unpaid sellers' rights of rescission, replevin, reclamation, and stoppage in transit, and rights to returned, reclaimed, or repossessed Goods); (d) all money due or to become due Debtor under all purchase orders and contracts fur the sale of Goods or the performance of services or both by Debtor or in connection with any other transaction (whether or not yet earned by pertormance by Debtor), including the right to receive the proceeds of those purchase orders and contracts; and (e) all collateral security and guaranties of any kind given by any other Debtor with respect to any of the foregoing. "California Commercial Code" means the Uniform Commercial Code as may, from time to time, be enacted and in effect in the State of California. "Chattel Paper" means any chattel paper, as such term is defined in section 9102(a)( I I ) of the California Commercial Code. now owned or hereafter acquired by any person. wherever located. "Deposit Account" [Weans any deposit account, as that term is defined in section 9102(a)(29) of the California Commercial Code, now owned or hereafter acquired by Debtor. "Documents" means any document, as that term is defined in section 9102(a)(30) of the California Commercial Code. now owned or hereafter acquired by Debtor, wherever located. "Equipment" means all equipment, as that term is defined in section 9102(a)(33) of the California Commercial Code. now owned or hereafter acquired by Debtor, wherever located, including all of Debtor's materials handling equipment, manufacturing equipment, processing equipment, engineering equipment, conveyors, machine tools, data processing and computer equipment with software and peripheral equipment. office machinery, furniture, tools, attachments, accessories, cannabis cultivation equipment and other equipment of every kind and nature. trade fixtures and other fixtures, together with all additions and accessions, replacements, parts. substitutes for any of the foregoing. fuel, and all manuals. drawings, instructions, warranties, and rights with respect to the foregoing, and all products and proceeds of the foregoing and condemnation awards and insurance proceeds with respect thereto. "Fixtures" means all fixtures, as that term is defined in section 9102(a)(41) of the California Commercial Code, now owned or hereafter acquired by Debtor. wherever located. "General Intangibles" means all general intangibles. as that term is defined in section 9102(a)(42) of the California Commercial Code, now owned or hereafter acquired by Debtor, including all right, title, and interest that Debtor may now or hereafter have in or Page 2 of 11 under customer lists. licenses, copyrights. trademarks. patents. websites, domain names, and all applications therefor and reissues, extensions, or renewals thereof, rights in intellectual property, interests in partnerships, joint ventures, and other business associations, licenses, permits, trade secrets, proprietary or confidential information, inventions (whether or not patented or patentable). technical information. procedures, designs, knowledge, know-how, software, databases, data, skill, expertise, experience, processes, models, drawings, materials and records, goodwill (including the goodwill associated with any tradeinartc or trademark license), all rights and claims in or under insurance policies (including insurance for fire, damage, loss, and casualty. whether covering personal property, real property, tangible rights. or intangible rights. all liability. fife. key man, and business interruption insurance, and all unearned premiums), uncertificated securities. certificated securities; choses in action, rights to receive tax refunds and other payments, rights to receive dividends, distributions. cash, instruments. and other property in respect of or exchange for pledged shares or other equity interests, rights of indemnification. all data maintained on all tapes, cards, computer runs. and other papers and documents in the possession or under the control of Debtor or any computer bureau or service company from time to time acting for Debtor. "Goods" means any goods, as that term is defined in section 9102(aX44) of the California Commercial Codc, now owned or hereafter acquired by Debtor. "instruments" means any instrument, as that term is defined in section 9102(aX47) of the California Commercial Code. now owned or hereafter acquired by Debtor, wherever located, including all certificated securities, all certificates of deposit, and all notes and other evidences of indebtedness other than instruments that constitute, or are a part of a group of writings that constitute. Chattel Paper. "Inventory" means any inventory, as that term is defined in section 9102(aX48) (tithe California Commercial Code, now owned or hereafter acquired by Debtor. wherever located, including inventory. merchandise, Goods, and other personal property that are held by or on behalf of Debtor for sale or lease or are furnished or are to be furnished under a contract of service. or that constitute raw materials, work in process, or materials used or consumed or to be used or consumed in Debtor's business or in the pr esRing, production. packaging, promotion, delivery, or shipping of the same, including other supplies. "Investment Property" means all investment property. as that term is defined in section 9102(aX49) of the California Commercial Code, now owned or hereafter acquired by Debtor, wherever Located. including (a) all securities, whether certificated or uncertificated. including stocks. bonds, interests in limited liability companies. partnership interests, treasuries, certificates of deposit, and mutual fund shares; (b) all securities entitlements of Debtor, including the rights of Debtor to any securities account and the financial assets held by a securities intermediary in the securities account and any free credit balance or other money owing by any securities intermediary with respect to such account; (c) all securities accounts of Debtor; (d) all commodity contracts held by Debtor; and (e) all commodity accounts held by Debtor. Page 3 of 11 UCC Definitions Incorporated by Reference Terms defined in the California Commercial Code not otherwise defined in this security agreement are used in this security agreement as defined in the California Commercial Code on the date of this agreement. Grant of Security Interest 2. Debtor grants Secured Party a security interest in the Collateral to secure payment of the Obligations. Debtor's Covenants 3. Debtor promises: a. To pay the Obligations to Secured Party when they are due. b. To pay all expenses, including attorney fees, incurred by Secured Party in the perfection, preservation, realization, enforcement, and exercise of Secured Party's rights under this agreement. c. To indemnify Secured Party against loss of any kind, including reasonable attorney tees, caused to Secured Party by reason of its interest in the Collateral. d. To conduct Debtor's business efficiently and without voluntary interruption. e. To preserve all rights, privileges, and franchises held by Debtor's business. f. To keep Debtor's business property in good repair. g. To pay all taxes when due. h. To give Secured Party notice of any litigation that may have a material adverse effect on the Debtor's business. i. Not to change the name or place of Debtor's business, or to use a fictitious business name., without first notifying Secured Party in writing. j. Not to sell, lease, transfer, or otherwise dispose of the Collateral except, before the occurrence of a default. for cash proceeds of accounts collected in the ordinary course of business. except, before the occurrence of a default, for sales of inventory in the ordinary course of business. k. Not to permit liens on the Collateral, except existing hens, current tax liens, and purchase money liens. Page 4 of 11 1. To maintain fire and extended coverage insurance on the Collateral in the amounts and under policies acceptable to Secured Party, naming Secured Party under a lender's loss -payable clause, and to provide Secured Party with the original policies and certificates at Secured Party's request. m. Not to use the Collateral for any unlawful purpose or in any way that would void any effective insurance. n. To permit Secured Party. its representatives. and its agents to inspect the Collateral at any time, and to make copies of records pertaining to it. at reasonable times at Secured Party's request. o. To perform all acts necessary to maintain. preserve, and protect the Collateral. p. To notify Secured Party promptly in writing of any default, potential default. or any development that might have a material adverse effect on the Collateral. q. To execute and deliver to Secured Party all financing statements and other documents that Secured Party requests, in order to maintain a first perfected security interest in the Collateral. r. To furnish Secured Party the reports relating to the Collateral at Secured Party's request. s. Not to make or agree to make any reduction in the original amount owing on an obligation, or to accept less than the original amount in satisfaction of an obligation. except before default or potential default. when Debtor may do so in ordinary course of business and in accordance with its present policies. t. To deliver to Secured Party (1) duplicate invoices for each account. bearing the language of assignment as Secured Party specifies; (2) the originals of all Instruments and Documents constituting Collateral, endorsed and assigned as Secured Party requests; and (3) proceeds (except cash proceeds collected in ordinary course of business, unless Debtor is in default). Cotbction of Procaotts 4. Debtor promises: a. To receive and use reasonable diligence in collecting the proceeds, and to deliver the proceeds required to be delivered by this agreement promptly to Secured Party. b. Not to commingle the proceeds with other property or proceeds. c. To keep complete and accurate records of the proceeds. in accordance with generally accepted accounting principles. Page 5 of 11 d. To provide any service and perform any other acts necessary to keep the proceeds free and clear of defenses, rights of setoff, and counterclaims. Secured Party's Possession of Proceeds 5. From time to time, Secured Party may notify obligors to make payments on receivables (but not on accounts arising in the ordinary course of business unless a default or potential default exists) at the place and in the manner specified by Secured Party. Power of Attorney 6. Debtor hereby appoints Secured Party as Debtor's attorney in tact, with the following powers: a. To perform any of Debtor's obligations under the agreement in Debtor's name or otherwise. b. To give notice of Debtor's right to payment, to enforce that right, and to make extension agreements with respect to it. c. To release persons liable on rights to payment, to compromise disputes with those persons, and to surrender security, all as Secured Party determines in its sole discretion when acting in good faith based on information known to it when it acts. d. To prepare and file financing statements. continuation statements. statements of assignment, termination statements. and the like, as necessary to perfect, protect. preserve, or release Secured Party's interest in the collateral. e. To endorse Debtor's name on instruments, documents, or other forms of payment or security that conic into Secured Party's possession. f. To take cash in payment of obligations. g. To verify information concerning rights to payment by inquiry in its own name or in a fictitious name. h. To prepare, execute, and deliver insurance forms; to adjust insurance claims; to receive payment under insurance claims; and to apply such payment to reduce Debtor's obligation. This power of attorney is coupled with an interest and may not be revoked or cancelled by Debtor without Secured Party's written consent. Debtor's Warranties and Representations Page 6 of 11 7. Debtor covenants, warrants, and represents as follows: a. Debtor is a limited liability company/partnership, duly organized, validly existing, and in good standing under the laws of the state of California. and has all necessary authority to conduct its business wherever it is conducted. b. Debtor has been authorized to execute and deliver this security agreement. The security agreement is a valid and binding obligation of Debtor_ The agreement creates a perfected. first -priority security interest enforceable against thc Collateral in which Debtor now has rights, and will create a perfected, first -priority security interest enforceable against the Collateral in which Debtor later acquires rights. when Debtor acquires those rights. c. Neither thc execution and delivery of this security agreement, nor the taking of any action in compliance with it, will (1) violate or breach any law, regulation, rule, order, or judicial action binding on Debtor. any agreement to which Debtor is a party. Debtor's articles of incorporation or bylaws; or (2) result in the creation of a lien against the Collateral except that created by this socurity agreement. d. No default or potential default exists. c. A schedule attached to and made a part of this security agreement states, without exceptions: (1) Debtor's correct name as listed in its current organizational documents and the location of Debtor's chief executive office. (2) Debtor's mailing address. (3) The location of Inventory Collateral. (4) The location of records relating to receivables. (5) All the namvs under which Debtor has conducted its business. (6) All liens and adverse claims to which the Collateral is subject. (7) All financing statements except those naming Secured Party in which Debtor is the debtor. (8) Any of the Collateral that consists of Fixtures, including the location, legal description. and name of the owner of the real property to which it is affixed. f. Debtor will notify Secured Party in writing five business days before any change occurs in any of the above. g. Debtor owns and has possession of all tangible Collateral, subject only to those liens and adverse claims identified in the schedule referred to in paragraph 7(e). Page 7 of 11 Debtor has provided Secured Party with his or her correct legal name as listed on his or her driver's license and other official documents. Spacial Provision for Fixtures 8. If any of the Collateral consists of Fixtures, the Collateral subject to this security agreement includes those Fixtures. Debtor has provided Secured Party all information needed to snake the fixture filings required to give Secured Party's security interest in that Fixture Collateral priority over all third parties with an interest in the real property to which the Fixtures arc attached. Termination of Agreement 9. This agreement will continue in effect even though from time to time there may be no outstanding obligations or commitments to Secured Party under this agreement or any related agreements. This agreement will terminate when (a) Debtor completes performance of all Obligations to Secured Party. including without limitation the repayment of all indebtedness by Debtor to Secured Party; (b) Secured Party has no commitment that could give rise to an Obligation; and (c) Debtor has notified Secured Party in writing of the termination. Default 10. Debtor wilt be in default under this agreement if: a. Debtor fails to pay any Obligations, or any portion thereof, to Secured Party when due, at stated maturity, on accelerated maturity. or otherwise, b. Debtor fails to make any remittances required by this agreement. c. Debtor commits any breach of this agreement, or any present or future rider or supplement to this agreement. or any other agreement between Debtor and Scx:ured Party evidencing the; obligation or securing it. d. Any warranty, representation, or statement, made by or on behalf of Debtor in or with respect to the agreement, is false. e. The Collateral is lost, stolen, or damaged. f. There is a seizure or attachment of, or a levy on, the Collateral. g. Debtor ceases operations, is dissolved, terminates its existence, does or tails to do anything that allows obligations to become due before their stated maturity, or becomes insolvent or unable to meet its debts as they mature. h. Secured Party for any reason deems itself insecure. Page 8 of 11 i. Debtor (I) applies for or consents to the appointment of a receiver. trustee, liquidator, or custodian of itself or of a substantial part of its property; (2) is unable, or admits in writing its inability, to pay its debts generally as they mature; (3) makes a general assignment for the benefit of its creditors or any of them; (4) is dissolved or liquidated in full or in part; (5) commences a voluntary case or other proceeding seeking liquidation, reorganization, or other relief with respect to itself or its debts under any bankruptcy. insolvency, or other similar law now or hereafter in effect, or consents to any relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding conunenced against it; or (6) takes any action for the purpose of effecting any of the foregoing. j. Proceedings for the appointment of a receiver, trustee, liquidator. or custodian of the Debtor or of all or a substantial part of its property, or an involuntary case or other proceedings seeking liquidation, reorganization, or other relief with respect to the Debtor or its debts under any bankruptcy, insolvency, or other similar law now or hereafter in effect are commenced and an order for relief is entered or such a proceeding is not dismissed or discharged within 60 days of commencement. Remedies 11. When an event of default occurs: a. Secured Party may exercise all rights and remedies available to a secured creditor after default, including but not limited to the rights and remedies of secured creditors under the California Commercial Code. b. Secured Party's notice of the time and place of public sale of the Collateral. or the time on or after which a private sale or other disposition of the Collateral will be made, is reasonable if sent to Debtor in the manner for giving notice at least 10 days before the public or private sale. c. Debtor must: (1) Assemble the Collateral and make it and all records relating to it available to Secured Party as Secured Party directs. (2) Allow Secured Party, its representatives, and its agents to enter the premises where all or any part of the Collateral, the records, or both may be, and remove any or all of it. Attorney Fees and Cosh 12. Debtor will pay all costs and expenses of the Secured Party enforcing its rights under this agreement, including reasonable attorney fees. Page 9 of 11 Waiver by Secured Party 13. No waiver by Secured Party of any breach or default will be a waiver of any breach or default occurring later. A waiver will be valid only if it is in writing and signed by Secured Party. Survival of Representations and Warranties 14, Debtor's representations and warranties made in this security agreetent will survive its execution, delivery. and termination. Assignment 15. This security agreement will bind and benefit the successors and assignees of the parties, but Debtor may not assign its rights under the agreement without Secured Party's prior written consent. Governing Law 16. This security agreement will be governed by the law of Calitbrnia. Entire Agreement 17. This security agreement is the entire agreement and supersedes any prior agreement or understandings between Secured Party and Debtor relating to the Collateral. Notices 18. Notices under this security agreement are considered to be served (a) three days after they are deposited in the United States mail, with prepaid first-class postage. addressed as follows; or (b) on receipt, if served by e-mail: DEBTOR P&.S Ventures. LLC 36380 Bankside Drive Cathedral City, CA 92234 SECURED PARTY Gerald J. McMahon The Standard Oil Building 26 Broadway. l8th Floor New York, NY 10004 Attention: Patrick G. McMahon and/or Scott Lambert Attention: Gerald J. McMahon Page 10 of 11 Either party may change its address for service of notice. by notice to the other. Date: Augustit, 2016 P&S VENTURES, LLC. a Calitbrnia Limited Liability Company Date: August // , 2016 By: Patrick G. McMahon Co-Founder/Co-CEO/CFO By:, Scott Lambert Co-Founder/Co-CEO/COO Page 11 of 11 Dear Emadd: I reviewed the latest design with my architect. He suggested that you have the plan reviewed and approved by. a structural engineer. Given the length of the fence and its location in the "wind belt" near Interstate 10, we would like the engineer to look at the details to ensure structural integrity. The basic plan is acceptable to me. I agree that an expert should review the details to see if the proposed gate (fence) can withstand the rigors of daily industrial use. Thank you for your attention to this matter. Regards Clay of Peke Desert Community Development JUL 2 9 2011 d rapped oPF by she. http://sn142w.snt142.mailiive.com/mail/RteFrame 16.0.1702.0709.html?d1=d1 7/28/2011 LISi6 V3 4.1.1i3S3C1 VilVd 3NVl 01311N3 OC9LL I N 476 J 1 1 • — • .:�`• ' `\�\\\y ��•� ��\\�:\ \` • �" jam; B 11 ..._ -aroPpea to by si-ext. rnetzlL►- - ll 6 O 2 w�is ��— • CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT INTEROFFICE MEMORANDUM To: Lauri Aylaian, Director of Community Development From: Mark Greenwood, P.E., Director of Public Works Date: June 8, 2011 Subject: Planning Commission Condition for a Cross -walk on Enfield Lane Public Works has evaluated the condition from Planning Commission to install a cross- walk on Enfield Lane in front of the St. Mary Magdalene Coptic Orthodox Church. We have determined that this is not an appropriate place for a cross -walk and do not approve the installation. MINUTES PALM DESERT PLANNING COMMISSION JUNE 7.2011 Chair Campbell asked the question about the fence and if it would be 'filled' with mesh. Mr. Miller stated that the original intent was to have it an open chain link, and that the landscape would help cover the fence. Plus, having an open fence would make it harder to graffiti. Mr. Miller said that they would add the mesh if required, but that wasn't 'the original intent. He also stated that five full time staff would maintain the landscaping and the grounds. Commissioner Tanner asked how many kids or individuals use this program. Mr. Miller stated that there are a total of 1032 individuals that use the program in various manners: golf clinics, sports therapy, special needs individuals training or golf -related fund raisers. On any given day, there can be as many as 250-300 kids. Chair Campbell declared the public hearing closed after hearing no further testimony. Action: Commissioner De Luna moved and Commissioner Limont seconded approving CUP 11-115, subject to the attached conditions. Motion carried 5-0. Commissioner De Luna moved and Commissioner Limont seconded adopting Planning Commission Resolution No. 2551 approving CUP 11-115, subject to the attached conditions. Motion carried 5-0. C. Case No. CUP 11-167, St. Mary Magdalene Coptic Orthodox Church, Applicant. Approval of a Conditional Use Permit to operate St. Mary Magdalene Coptic Orthodox Church in a Service Industrial Zone, located at 77-670 Enfield Lane, APN: 626-481-004. Ms. Grisa orally presented her staff report and PowerPoint presentation. She talked about the location of the project which is north of Country Club Drive. The applicant would occupy the entire building as sole occupant. Ms. Grisa presented site photos as part of her presentation. Currently, there are 16 parking spaces that are striped. Two spaces will remain open to allow for easement to the rear yard where more parking is available. The site plan shows that this building and a building to the west share a driveway. There is an access gate to the other building that swings out when it's opened. 6 MINUTES PALM DESERT PLANNING .COMM$SJON JUNE 7. 2011 Ms. Grisa briefly talked about the parking count since there was some opposition to the parking issue; she wanted to clarify what was being counted. The applicant has proposed that 35 families will use the space. Under the conditions, the max load is 120 people. This works out to 20 or so cars parked in the lot and eight or so cars parked on the nearby street. There is ample parking along the street for this. There was some opposition to the church upon receipt of the legal notice. One of the landlords has talked with the City and verified that the Church had made parking arrangements with the tenants but not the building owners and therefore, those subsequent parking agreements were void. There are concerns about the parking issue behind the building because the adjacent neighbor operates a sign fabrication business where heavy equipment is used during business hours. There also have been problems with illegal dumping on the site thus drawing the need for a fence. After the packets were distributed to the Commissioners, staff received a letter from the applicant to the landlords of the buildings in question stating that the Church is looking to be a good neighbor and would install a security fence at their own cost to protect against vandalism. They also offered to close and open the gate only when their property is in use to further protect against loitering and vandals. There has been no response from the landlords about this proposal. Most of the area businesses open at normal business hours and the church would also be opened at this time, but the majority of its use would be on the weekends, after hours. Staff supports the use of a church in this zone and recommends approval especially since a church represents more eyes and ears on a site over the weekend, which could help deter illegal dumping. Ms. Grisa offered to answer any questions. Commissioner Dash asked if Mr. Metzler responded to the applicant about the fence. Ms. Grisa stated that he was in the audience and would let him speak to that. Commissioner De Luna asked for clarification about what the overlying objection(s) is/are. Ms. Grisa stated that it really comes down to the appropriateness of having a church in an industrial zone with heavy manufacturing, but that she would let the applicant and the opposing party speak to that. MINUTES PALM DESERT PLANNING COMMISSION JUKE 7. 2011 Chair Campbell queried about the fence and the gate. She wanted to clarify that she understood that the Church would install a second gate/fence at their expense to make sure that the 'lot was secure and that no one would be trespassing on any other property. Ms. Grisa stated that was so., that was the new offer. Commissioner Limont wanted to ask counsel about the date and if it and the fence were erected, wouldn't the Church still need ,and have access to their own parking 24/7 just as much as the sign company would need to be protected from trespassing? Dave Erwin, City Attorney, answered that was correct. Chair Campbell declared the public hearing open and asked the applicant to come forward. Emad Michael, architect for the Church and warden of the Church, addressed the Commission. He added that the proposed use meets the goals and objectives of the General Plan. He indicated that the Church wants to actively work with the neighbors and upon hearing that someone had a complaint, we proposed the fence solution. Commissioner Tanner asked about a letter from Paragon Signs dated June 2, 2011. He wanted to know if this issue had been resolved yet. Mr. Michael stopped by Paragon [Signs] and talked with the Manger, Mr. Swindle of and they walked the property together and came up with the fence offer. Mr. Michael then created a letter detailing this and sent copies to the landlord and the City. Commissioner Limont wanted to know where the meetings would take place in the church. Mr. Michael stated that the meetings would meet in the church sanctuary and the music and bible study would take place in the smaller class rooms. Commissioner Limont followed up by asking if the furniture in the rooms were moveable (folding chairs and tables). Mr. Michael stated that they were. Chair Campbell asked for testimony in favor of or opposition to the project. Mr. Steve Metzler, (41-865 Boardwalk, Palm Desert) property owner of the building next door to the proposed church, spoke in opposition to the project. He began by listing his credentials as being president of various manufacturing boards and has built a few industrial parks in the past. He began with a question about where the main entrance to the building would be, in the back or the front. He mentioned that he hasn't been able to see any information on this 8 MINUTES PALM DESERT PLANNING COMMISSION JUNE 7, 2011 project. Mr. Michael stated that the entrance would be in the front, but there would be two entrances per fire code. Mr. Metzler wanted to state for the record that he has no issue with the church itself. He was one of the representatives that helped the Oasis Church get into their previous location (where Gold's gym is now located). He stated that in the previous projects, there were no shared driveways and built the properties at 2 parking stalls per 1000, per code then. He and his design team purposely built the driveways larger for the sole purpose of manufacturing tenants needing .extra turning space and use part of the drive for any temporary parking. He mentioned that behind these buildings there are many easements that involve the gas company and the railroad. When there was a derailment a few years back, he went out there to see if his property was affected and the railroad authority told him he would be arrested if he didn't leave (possibly due to a chemical spill). He stated that as an example of what it means to be in an industrial zone and a church with little kids and parents wouldn't mesh well with this type of situation. Mr. Metzler wanted to also mention the caliber and size of signs and trucks that go in and out of the complex. There are large semis that come a few times per week to deliver 40' signs and beams to various customers in the complex. He didn't see large semis as being able to negotiate turns if a fence or other cars were in the way. And many times, these signs and semis and equipment are left overnight. That leads to a potential safety and security risk. Mr. Metzler wanted to address the fence issue. He pointed to the photo display on the projector. He mentioned that there could be a potential issue with the trash container and its location. He wants to be able to load and unload the semis on the property and not out on Enfield Lane, which might happen if the trash has to be moved because of a fence. He also mentioned the gate of the fence itself. He wanted to ask how it would open: would it swing, would it roll, would it be a double gate? The larger a gate is, he said, the more sag it has because of the weight. If it was automatic, then that would also entail having gate equipment and that would take up space (and potentially parking in the rear). So the bottom line, there are either access problems or parking problems [at the church's expense] and he stated that wasn't acceptable. Mr. Metzler indicated that he would be willing to talk with the Church representatives about the fence issue at a future date, but he just feels 9 MINUTES PALM DESERT PLANNING COMMISSION JUNE 7.2011 that the utility of this building and the industrial park it is located is wrong for a church. He mentioned that the fence is unacceptable at this point because it goes over handicapped space(s) and it's too long and will cut into existing driveways. Commissioner Tanner asked Mr. Metzler if he built both the Paragon building and the Post Mail (?) building. Mr. Metzler stated that he built the four buildings in this vicinity, including the building in question. Commissioner Tanner asked if he owned the building that the Church would lease. Mr. Metzler stated that he did not —he owns the one to the left (pointing on the picture). Commissioner Tanner followed up by asking about the current state of trespass or vandalism with the fence as it exists now. It seemed to him that would be a problem now, and by adding a fence this would enhance the security issue. Mr. Metzler stated that security systems and fences do exist now, but there is a blind spot behind one of the buildings and the desire is to maintain the level of security that currently exists, keeping people from loitering behind there. Commissioner Tanner pointed out that would happen whether a church were there or not. Commissioner Tanner wanted to know about the parking situation is with the building that the Oasis Church is currently located. He thought he saw a bus parked there and a shared driveway. Mr. Metzler stated yes, that is the case, only because there is a recorded parking agreement there, but there are no industrial yards in those buildings like there are here on Enfield. Chair Campbell asked if the Commission had any questions of this speaker. Commissioner Dash wanted clarification on how the building located at 77-700 [Enfield] fit into this. Mr. Metzler stated that he only noticed this when the legal notice was mailed and he found out that a tenant of the multi -tenant building located at 77-700 agreed to parking, but that there wasn't any agreement with any of the buildingowners. Commissioner De Luna asked for clarification about moving the trash enclosure and wanted more details. Mr. Metzler stated that he was just shooting out ideas and hadn't thought much about it, but was saying that logistically there weren't many options that didn't hurt parking or truck access. Chair Campbell asked Dr. Amir Ibrahim, 41-865 Harrison Dr. Palm Desert to step forward. He spoke in favor of the project. He stated that 10 MINUTES PALM DESERT PLANNING COMMISSION JUNE 7. 2011 the project would bring much culture and economic development to the City. He gave a brief history on the church and the nature of the members of the church: immigrants themselves who just want to be good neighbors and worship here. He stated that there will be many people coming and going from this site and that is an added plus for security of the location —especially on weekends. He stated that there is plenty of parking for the parishioners and doesn't see that as being a problem. He stated that he has personally talked with various tenants in neighboring buildings and they are in favor of the project and simply have to talk with their attorneys about liability. Dr. Ibrahim also stated that he has personally seen the complex after hours and there was almost no traffic. He stated that having a church in an area would be a great asset for security. It is their desire to be good neighbors and teach their children to live and work with people in peace. Commissioner De Luna asked Dr. Ibrahim about due diligence and when they searched for a location if they were aware of the sign company and its size and operation and if that factored into their decision. He stated that they did learn that and found that since they are a church and have most of their time spent on the weekends when the other businesses are closed, he thought this would work out well so the other businesses could operate (and use the church's driveway) when the Church wasn't there on week days. Commissioner De Luna mentions this because her main concern is for safety: safety of those at the church, but also safety for the sign company and that they may conduct their business without worry of injuring someone at the church. Dr. Ibrahim understood that and assured her that he was happy to report that when that business is conducting their day-to-day activities; there wouldn't be anyone in the church building, save one or two people. And if the sign company needed to use the church lot for turning or whatever, they were more than happy to oblige. Commissioner Tanner asked staff if there have ever been any reports of injuries or an accident as a result of the instances listed here tonight. Mr. Bagato stated that in the ten years that he has been in the Planning department, he wasn't aware of any. Ms. Grisa requested a moment to make some clarifications for the record on what was said in the public hearing tonight. She stated that the comment about parking agreements were represented as business owners, not property owners. The property owners were aware of this issue by the legal notices. She also wanted to state that the rear yard in question for potential parking does not have much, if.any striping and there are no handicapped spaces in the rear. There is one 11 MINUTES PALM DESERT PLANNING COMMISSION JUNE 7. 2011 handicapped space is off of Enfield Road, but not in the rear yard as contended. She stated that Burrtec would have to approve the move of the trash enclosure. Commissioner Dash suggested that the two parties come together after this meeting and work through their differences rather than the Commission voting on it tonight. Chair Campbell suggested that Commissioner Dash make that recommendation in the form of a motion at the appropriate time, but there is still one more person wanting to speak on the matter in the Public Hearing. Commissioner Limont wanted to know if there had been any correspondence from 77-700. Ms. Grisa stated that an email was in the packet stating that they were opposed to parking on their private lot. Chair Campbell asked for any other speakers to come forward in favor of or opposition to the project. Mr. Hadden Libby, PO Box 2660, Palm Desert, wanted to say that he knows Dr. Ibrahim's wife and some of the other congregation of the church and said that they have the highest caliber of integrity and will be a great asset to any location. Mr. Emad Michael stepped back up to say that they are willing to work with Mr. Metzler on the gate issue however he sees fit. He reiterated that the Church is more than willing to share their lot and be a good neighbor in any way they can. Chair Campbell declared the public hearing closed and asked for Commissioner comment. Commissioner Tanner began by stating that as long as he's been in business in that area, he understands that things change over time and parking needs change and although this church might not be ideal for some, it is a good idea and seeing that some of the other neighbors are agreeable to this, he would welcome them and move for approval. Commissioner Limont stated that she would love to see the Church locate here but also realizes that this area is not set up for this type of use. It is more of an industrial area. She realizes that the Church is more than willing to work with their neighbors. She would condition that the Church provide that no one park at 77-700 at any time, and that the church provide a crosswalk for people parking on the street for people's safety. She believes that both parties can work this out and 12 MINUTES PALM DESERT PLANNING COMMISSION JUNE 7.2011 that they should try. As long as the Church bears the cost for this and works with the neighbors, she will second the motion from Commissioner Tanner. Commissioner De Luna asked about the trash relocation and if that was even feasible. Ms. Grisa stated that Burrtec would have to sign off on any trash enclosure moving, but that staff could follow up on that. Mr. Bagato stated that a crosswalk would have to go through the Public Works Department for approval, but it has been their practice to not allow crosswalks anywhere but at intersections. Staff would certainly talk to Public Works about this. Commissioner Tanner indicated that we could pull that part out of the motion. Commissioner Limont said that she didn't want it pulled out, but maybe just followed through on this matter for safety. Commissioner Dash indicated that he would still reiterate his motion to continue until the two parties meet, if that was the desire of the Commission. Chair Campbell commented that she saw the place the previous evening around 6:15 and the place was deserted. She sees the benefit of having the Church there after hours would enhance security. Commissioner De Luna asked if there could be a condition that the parties resolve their issues before a Certificate of Occupancy is issued. Commissioner Tanner stated that his motion was and remains as follows: that the two parties come together and work through this issue, that no one around the area that is not willing to share their parking is encroached upon and including Commissioner Limont's request that staff follow up on the installation of a crosswalk, the motion stands with a second. Action: Commissioner Tanner moved and Commissioner Limont seconded approving CUP 11-167, subject to the attached conditions. Motion carried 5-0. Commissioner Tanner moved and Commissioner Limont seconded adopting Planning Commission Resolution 2552, approving CUP 11-167 subject to the attached and revised conditions. Motion carried 5-0. .13 CITY Of Fn[M OESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL:760 346-06Ei info@cityofpalmdesert.org PLANNING COMMISSION MEETING NOTICE OF ACTION Date: June 8, 2011 St. Mary Magdalene Coptic Orthodox Church PO Box 3111 Rancho Mirage, CA 92270 Re: Case No CUP 11-167. The Planning Commission of the City of Palln Desert considered your request and took the following action at its regular meeting of June 7, 2011: THE PLANNING COMMISSION APPROVED CASE NO. CUP 11-167 BY ADOPTION OF PLANNING COMMISSION RESOLUTION NO. 2552, SUBJECT TO ATTACHED CONDITIONS. MOTION CARRIED 5-0. Any appeal of the above action may be made in writing to the City Clerk, City of Palm Desert, within fifteen (15) days of the date of the decision. 77 ,,,, Fee Lauri Aylaian, Secretary Palm Desert Planning Commission /tb cc: Coachella Valley Water District Public Works Department Building & Safety Department Fire Marshal File 0 nmm0 x uawe IA NA J PLf' 'ING COMMISSION RESOLUTION 102552 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT TO OPERATE SAINT MARY MAGDALENE COPTIC ORTHODOX CHURCH IN A SERVICE INDUSTRIAL ZONE LOCATED AT 77-670 ENFIELD LANE, APN: 626-481-004. CASE NO. CUP 11-167 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 7th day of June, 2011, hold a duly noticed public hearing to consider the request by the St. Mary Magdalene Coptic Orthodox Church for approval of the above noted; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for implementation of the California Environmental Quality Act', Resolution No. 10-26 in that the Director of Community Development has determined that the project is a Class 3 Categorical Exemption; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said Planning Commission did find the following facts and reasons to exist to justify approval of the said request: 1. That the proposed location of the conditional use is in accordance with the objectives of the Zoning Ordinance and the purpose of the district in which it is located. The proposed location is in a Service Industrial zone. One of the purposes of this district is to provide services for local use. The type of activity conducted at the proposed site is a community resource to the public typically not favored in residential zones but nearby, so it is appropriately located in this Service Industrial zone. 2. That the proposed location of the conditional use and the.conditions under which it will be operated or maintained will not be detrimental to the public health, safety or welfare; or be materially injurious to properties or improvements in the vicinity. The proposed conditional use permit does not alter the building exterior; no impact to adjacent businesses is expected since all activities occur indoors in a standalone building with the applicant occupying the entire facility. All final construction drawings illustrating interior tenant improvements require building code compliance and inspection prior to tenant occupancy of the remodeled space. Parking is adequate for the proposed activity, number of staff and patrons anticipated. . PLANNING COMMISSIC 'RESOLUTION NO.* 2552 3. That the proposed conditional use will comply with each of the applicable provisions of the Zoning Ordinance, except for approved variances or adjustments. The proposed use is consistent with the intent of the Zoning Ordinance; the organization operates a religious based use that operates throughout the day during normal business hours and throughout the night when most adjacent businesses are closed. Existing parking is adequate and no increase in use of infrastructure is necessary. This use will provide a service to the community in a location that will not cause disturbances to its adjacent neighbors. No variances or adjustments are necessary for the project. 4. That the proposed conditional use complies with the goals, objectives and policies of the City's General Plan. The general plan land use designation for the site is "Industrial / Business Park (I-B.P.)". A primary objective stated in the Land Use Element of the General Plan under Industrial Goals, Policies and Programs is Goal 1, which provides for the development of business parks and non-polluting industrial uses, and which assures compatible integration with other, non -industrial land uses. Policy 6B of the General Plan Land Use Element is to review all Business Park / Industrial development proposals with a special regard for public health and safely issues to ensure that the type and intensity of the use is appropriate for the proposed location and comparative with surrounding land uses. This project maintains a land use that is consistent with the goals, policies, and programs of the General Plan. The project is consistent with the General Plan in respect to the appropriate use of a religious facility in the proposed location. The business is compatible with surrounding land uses, and is effectively located in a standalone structure where it will not cause any disturbances to adjacent businesses, provided that occupancy remains at the limits proposed. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the Planning Commission in this case. 2 `PLANNING COMMISS' ' RESOLUTION NO. 2552 0 g 2. That approval of Conditional Use Permit 11-167 is hereby granted, subject to conditions attached. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert Planning Commission, held on this 7th day of June, 2011, by the following vote, to wit: AYES: CAMPBELL, DE LUNA, LIMONT, TANNER AND DASH NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: c-Th C/ LAURI AYLAIAN, §ecretary Palm Desert Planning Commission ✓SONIA CAMPBELL, Chairperson PLANNING COMMISSIC IESOLUTION NO. 2552 CONDITIONS OF APPROVAL CASE NO. CUP 11-167 DEPARTMENT OF COMMUNITY DEVELOPMENT: 1. The development of the property shall conform substantially with exhibits on file in the Department of Community Development/Planning, as modified by the following conditions. 2. Any proposed change of this Conditional Use Permit will require an amendment, which will result in a new public hearing. 3. St. Mary Magdalene Coptic Orthodox Church shall have a maximum of 120 occupants at any one time. Occupancy loads must be in compliance with Building and Safety and the Fire Department codes. Any increase in an occupancy load beyond 120 people will require an amendment to the Conditional Use Permit. Amended Conditions added by the Planning Commission: 4. Parking for the proposed church use is limited to the off-street parking lot located at 77-670 Enfield Lane and on -street parking as needed, not to exceed the maximum occupant load. 5. An agreement must be obtained with the adjacent property owner to provide an acceptable fence design in the rear of the property located at 77-650 Enfield Lane for added security and safety. The fence will be designed and installed at the church's expense. 6. A crosswalk shall be required 'to accommodate patrons using on -street parking; the Director of Public Works will have final approval of this condition. BUILDING AND SAFETY DEPARTMENT: 1. This project shall comply with the latest adopted edition of the following codes: A. 2010 California Building Code and its appendices and standards B. 2010 California Mechanical Code and its appendices and standards C. 2010 California Plumbing Code and its appendices and standards D. 2010 California Electrical Code E. 2010 California Energy Code F. Title 24, California Code Of Regulations G. 2010 California Fire Code and its appendices and standards 2. Submit five complete sets of plans including the following:' 4 0 PLANNING COMMISSI RESOLUTION NO. 2552 A. Site/Plot Plan B. Foundation Plan C. Floor Plan D. Ceiling and Roof Framing Plan E. Electrical Plans (2 sets, • detached) including the size of main switch, number and size of service entrance "conductors, panel schedules, and single line diagrams F. Plumbing and sewer plans, including isometrics, underground diagrams, water and waste diagram, sewer or septic system location, fixture units, gas piping, and heating and air conditioning. 3. A disabled access overlay of the precise grading plan is required to be submitted to the Department of Building and Safety for plan review of the site accessibility requirements as per 2010 CBC Chapters 11A and B (as applicable) and Chapter 10. 4. All exits must provide an accessible path of travel to the public way. (CBC 1024.6 & 1127B.1) 5. Detectable warnings shall be provided where required per CBC 11338.8 and 1127B.5 (7). The designer is also required to meet all ADA requirements. Where an ADA requirement is more restrictive than the State of California, the ADA requirement shall supersede the State requirement. 6. Provide an accessible path of travel to the trash enclosure. The trash enclosure is required to be accessible. Please obtain a detail from the Department of Building and Safety. 7. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per Palm Desert Municipal Code, Title 5. 8. All contractors and/or owner -builders must submit a valid Certificate of Worker's Compensation Insurance coverage prior to issuance of a building permit per California Labor Code, Section 3700. 9. Address numbers all shall comply with Palm Desert Ordinance No. 1217 (Palm Desert Municipal Code 15.15 Compliance with Ordinance 1217 regarding street address location, dimension, stroke of line, distance from street, height from grade, height from street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of 5 PLANNING COMMISSIO lESOLUTION NO. 2552 Ordinance 1217 or Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 10. Please contact Debbie Le Blanc, Land Management Specialist, at the Department of Building and Safety (760-776-6420) regarding the addressing of all buildings and/or suites. 11. Appears that the existing plumbing facilities do not meet the 2010 California Plumbing Code for assembly use for minimum plumbing facilities required. Refer to table 4-1 of the CPC. 12. The existing ADA restroom doors cannot swing out as this encroaches more than one-half the required exit width of the corridor. 13. These are some of the preliminary comments and does not constitute a full review for compliance with all the above mentioned codes. PUBLIC WORKS DEPARTMENT: 1. The applicant shall limit improvements to those on the approved site plan. 6 v 3 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT PLANNING COMMISSION STAFF REPORT REQUEST: APPROVAL OF A CONDITIONAL USE PERMIT TO OPERATE SAINT MARY MAGDALENE COPTIC ORTHODOX CHURCH IN A SERVICE INDUSTRIAL ZONE LOCATED AT 77-670 ENFIELD LANE, APN: 626- 481-004 SUBMITTED BY: Missy Grisa, Assistant Planner APPLICANT: St. Mary Magdalene Coptic Orthodox Church P.O. Box 3111 Rancho Mirage, CA 92270 CASE NO.: CUP 11-167 DATE: June 7, 2011 CONTENTS: Draft Resolution Legal Notice Applicant Submitted Statement of Use (2 pages) Applicant Submitted Plans (3 pages) Opposition Letters (3 pages) Recommendation That the Planning Commission adopt the findings and adopt Planning Commission Resolution No. , approving Conditional Use Permit 11-167, subject to conditions. Executive Summary Approval of Conditional Use Permit No. 11-167 will allow the applicant to operate a church facility located at 77-670 Enfield Lane. Public Hearing notices were mailed to owners of property within 300 feet of the subject parcel, and placed in the Desert Sun; two letters were received in opposition to the proposed use. The proposed use primarily takes place on weekday evenings and weekends when the majority of adjacent businesses are closed. Staff Report Case No. CUP 11-167 June 7, 2011 Page 2 of 6 Background A. Property Location: The property is located on the north side of Enfield Lane. Enfield Lane is located slightly north of Country Club Drive and west of Washington Street on a circular street configuration off of Park Center Drive. B. Zoning and General Plan Designation: Zone: General Plan: Service Industrial Industrial Business Park C. Adjacent Zoning and Land Use: North: Railroad / Interstate 10 South: S.I. / Service Industrial development and Vacant land East: S.I. / Service Industrial development West: S.I. / Service Industrial development Proiect Description The Saint Mary Magdalene Coptic Orthodox Church, as the applicant, is requesting approval to use an existing building located within a Service Industrial zone. The proposed space would currently serve approximately 35 families and provide a gathering and meeting space where two formal services, Sunday school, hymns study, bible study, and vespers would be held. A vesper references a religious service held in the late afternoon or evening. The church would have one employee, the priest, who would be on -site on a daily basis. In addition, anywhere from 8-12 volunteers may be on -site during weekdays to assist with bookkeeping, preparing monthly brochures, and other paperwork. The attached 'Expanded Statement of Use' illustrates the requested typical hours of operation. Between the hours of 8:00 a.m. and 5:00 p.m. during the week, a maximum of 9-12 people may be at the proposed church. Evening events, after 5:00 p.m., and Saturdays and Sundays would draw the largest amount of occupants. The applicant is requesting a maximum occupant Toad of 120 people that will require final approval from the Building and Safety Department. The new chapel space would provide 50 portable chairs for seating and four additional seating spaces identified for ADA access. The main auditorium space measures 2,501 square feet. The parking requirements for a church with non -fixed seats are one parking stall per 35 square feet, which equates to 71 required parking stalls. G:\Planning'Mssy Grisa\CUP\77-670 Enfield Lane St. Mary Church Staff Report.doc Staff Report Case No. CUP 11-167 June 7, 2011 Page 3 of 6 The applicant is not proposing modifications to the landscaping or majority of the exterior of the building. They will be eliminating an exterior door facing the back parking lot which will be finished to match the adjacent wall material. This is not an emergency exit door and may be removed and still maintain compliance with emergency exiting requirements. Analysis The requested use at the proposed facility is largely occupied during times when most adjacent businesses are closed. The occupant is not planning any major exterior renovations or proposed modifications to the landscaping. The modifications consist of tenant improvements only with the exception of eliminating an exterior back door. A. Parking: In the table below, available parking Monday, May 9, 2011 to Monday, May Date Mon May 9 Tues May 10 Wed May 11 Thurs May 12 Friday May 13 Sat May 14 Sun May 15 Average Available Spaces Time Vacant Parking Spaces 3:04 AM 16 3:36 PM 16 10:05 PM 16 4:15 PM 16 9:50 AM 16 4:00 PM 16 10:30 AM 16 was recorded during all hours from 15, 2011. Vacant Accessible Spaces Occupied Occupied Spaces Accessible Spaces 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 16 1 0 0 The daytime parking study concluded that 16 striped parking spaces are regularly available during the hours of 8:00 a.m. to 5:00 p.m. Monday through Sunday. Ten additional unmarked spaces may be used within a paved easement in the rear of the property as shown on the attached site plan. With 0:\Planning\Mssy G,Isa\CUP 77-670 Enfield Lane Si Mary Church\Statf Report.doc Staff Report Case No. CUP 11-167 June 7,2011 Page 4 of 6 adjacent businesses closing at 5:00 p.m. daily, the later evening hours of the proposed use would not pose an on -street parking problem. The applicant has provided parking agreements with two business owners of adjacent parking Tots for use after 4:00 p.m. on Saturdays and all day Sundays. These parking agreements were not made with the property owners and are therefore not valid. The two adjacent property owners opposed these parking agreements and their written comments are attached for your review. Church patrons will have more than enough on -street parking which is generally in abundance in this area. Another church operates under an approved Conditional Use Permit nearby at the corner of Enfield Lane and Entrepreneur Lane. Staff verified the parking from this church in addition with the proposed use would not pose an overload of on -street parking. On Saturday, May 28th, no cars were parked on the street in front of this church and on Sunday, May 29th, fifteen cars were parked in the street for convenience to the front door as twenty off-street parking stalls remained open on -site. This other church is located far enough away and will not pose an on -street parking problem. Staff also supports the efficient use of parking for businesses with alternating hours such as a church in a Service Industrial zone, which does not require additional paved parking areas that are largely unused during the week. B. Land Use Compatibility: The proposed use is located in a Service Industrial (S.I.) zone. Although the proposed use is not Service Industrial oriented, the nature of the business would not interfere with parking or the normal conduct of adjacent businesses. Therefore, the proposed use is compatible with the other industrial uses. C. Findings of Approval: 1. That the proposed location of the conditional use is in accordance with the objectives of the Zoning Ordinance and the purpose of the district in which it is located. The proposed location is in a Service Industrial zone. One of the purposes of this district is to provide services for local use. The type of activity conducted at the proposed site is a community resource to the public typically not favored in residential zones but nearby, so it is appropriately located in this Service Industrial zone. G:\Planning\Mssy Grisa\CUP\77.670 Enfield Lane St. Mary Church\Staff Report.doc Staff Report Case No. CUP 11-167 June 7, 2011 Page 5 of 6 2. That the proposed location of the conditional use and the conditions under which it will be operated or maintained will not be detrimental to the public health, safety or welfare, or be materially injurious to properties or improvements in the vicinity. The proposed conditional use permit does not alter the building exterior; no impact to adjacent businesses is expected since all activities occur indoors in a standalone building with the applicant occupying the entire facility. All final construction drawings illustrating interior tenant improvements require building code compliance and inspection prior to tenant occupancy of the remodeled space. Parking is adequate for the proposed activity, number of staff and patrons anticipated. 3. That the proposed conditional use will comply with each of the applicable provisions of the Zoning Ordinance, except for approved variances or adjustments. The proposed use is consistent with the intent of the Zoning Ordinance; the organization operates a religious based use that operates throughout the day during normal business hours and throughout the night when most adjacent businesses are closed. Existing parking is adequate and no increase in use of infrastructure is necessary. This use will provide a service to the community in a location that will not cause disturbances to its adjacent neighbors. No variances or adjustments are necessary for the project. 4. That the proposed conditional use complies with the goals, objectives and policies of the City's General Plan. The general plan land use designation for the site is `Industrial / Business Park (I-B. P.)". A primary objective stated in the Land Use Element of the General Plan under industrial Goals, Policies and Programs is Goal 1, which provides for the development of business parks and nonpolluting industrial uses, and which assures compatible integration with other, non -industrial land uses. Policy 6B of the General Plan Land Use Element is to review all Business Park / Industrial development proposals with a special regard for public health and safety issues to ensure that the type and intensity of the use is appropriate for the proposed location and comparative with surrounding land uses. G:tiPlanning1Missy Grisa\CUP177.670 Enfield Lane St. Mary Churdi\Staff Aeport.doc Staff Report Case No. CUP 11-167 June 7, 2011 Page 6 of 6 This project maintains a land use that is consistent with the goals, policies, and programs of the General Plan. The project is consistent with the General Plan in respect to the appropriate use of a religious facility in the proposed location. The business is compatible with surrounding land uses, and is effectively located in a standalone structure where it will not cause any disturbances to adjacent businesses, provided that occupancy remains at the limits proposed. Environmental Review The project is a Class 3 Categorical Exemption (conversion of the use of small existing structures) for the purposes of CEQA and no further review is necessary. Conclusion Staff has determined that the proposed use would be compatible with adjacent properties and recommends approval of a Conditional Use Permit for a church located 77-670 Enfield Lane. Submitted by: Mis i Grisa, Assistant Planner Department Head: ,c i Ai f - Lauri Aylaian( Director of Community Development G:\Planning\Missy GrIsa\CUP 77-670 Enfield Lane St. Mary Church\Stal Report.doc PL_ a+IING COMMISSION RESOLUTIONM. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT TO OPERATE SAINT MARY MAGDALENE COPTIC ORTHODOX CHURCH IN A SERVICE INDUSTRIAL ZONE LOCATED AT 77-670 ENFIELD LANE, APN: 626-481-004. CASE NO. CUP 11-167 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 7t' day of June, 2011, hold a duly noticed public hearing to consider the request by the St. Mary Magdalene Coptic Orthodox Church for approval of the above noted; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act", Resolution No. 10-26 in that the Director of Community Development has determined that the project is a Class 3 Categorical Exemption; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said Planning Commission did find the following facts and reasons to exist to justify approval of the said request: 1. That the proposed location of the conditional use is in accordance with the objectives of the Zoning Ordinance and the purpose of the district in which it is located. The proposed location is in a Service Industrial zone. One of the purposes of this district is to provide services for local use. The type of activity conducted at the proposed site is a community resource to the public typically not favored in residential zones but nearby, so it is appropriately located in this Service Industrial zone. 2. That the proposed location of the conditional use and the conditions under which it will be operated or maintained will not be detrimental to the public health, safety or. welfare, or be materially injurious to properties or improvements in the vicinity. The proposed conditional use permit does not alter the building exterior; no impact to adjacent businesses is expected since all activities occur indoors in a standalone building with the applicant occupying the entire facility. All final construction drawings illustrating interior tenant improvements require building code compliance and inspection prior to tenant occupancy of the remodeled space. Parking is adequate for the proposed activity, number of staff and patrons anticipated. PLANNING COMMISSIC tESOLUTION NO. 3. That the proposed conditional use will comply with each of the applicable provisions of the Zoning Ordinance, except for approved variances or adjustments. The proposed use is consistent with the intent of the Zoning Ordinance; the organization .operates a religious based use that operates throughout the day during normal business hours and throughout the night when most adjacent businesses are closed. Existing parking is adequate and no increase in use of infrastructure is necessary. This use will provide a service to the community in a location that will not cause disturbances to its adjacent neighbors. No variances or adjustments are necessary for the project. 4. That the proposed conditional use complies with the goals, objectives and policies of the City's General Plan. The general plan land use designation for the site is `Industrial / Business Park (I-B.P.)". A primary objective stated in the Land Use Element of the General Plan under Industrial Goals, Policies and Programs is Goal 1, which provides for the development of business parks and non-polluting industrial uses, and which assures compatible integration with other, non -industrial land uses. Policy 6B of the General Plan Land Use Element is to review all Business Park / Industrial development proposals with a special regard for public health and safety issues to ensure that the type and intensity of the use is appropriate for the proposed location and comparative with surrounding land uses. This project maintains a land use that is consistent with the goals, policies, and programs of the General Plan. The project is consistent with the General Plan in respect to the appropriate use of a religious facility in the proposed location. The business is compatible with surrounding land uses, and is effectively located in a standalone structure where it will not cause any disturbances to adjacent businesses, provided that occupancy remains at the limits proposed. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the Planning Commission in this case. PLANNING COMMA RESOLUTION NO. 2. That approval of Conditional Use Permit 11-167 is hereby granted, subject to conditions attached. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert Planning Commission, held on this 7th day of June, 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: • LAURI AYLAIAN, Secretary Palm Desert Planning Commission 3 SONIA CAMPBELL, Chairperson PLANNING COMMISSIt IESOLUTION NO. CONDITIONS OF APPROVAL CASE NO. CUP 11-167 DEPARTMENT OF COMMUNITY DEVELOPMENT: 1. The development of the property shall conform substantially with exhibits on file in the Department of Community Development/Planning, as modified by the following conditions. 2. Any proposed change of this Conditional Use Permit will require an amendment, which will result in a new public hearing. 3. St. Mary Magdalene Coptic Orthodox Church shall have a maximum of 120 occupants at any one time. Occupancy Toads must be in compliance with Building and Safety and the Fire Department codes. Any increase in an occupancy load beyond 120 people will require an amendment to the Conditional Use Permit. BUILDING AND SAFETY DEPARTMENT: 1. This project shall comply with the latest adopted edition of the following codes: A. 2010 California Building Code and its appendices and standards B. 2010 California Mechanical Code and its appendices and standards C. 2010 California Plumbing Code and its appendices and standards D. 2010 California Electrical Code E. 2010 California Energy Code F. Title 24, California Code Of Regulations G. 2010 California Fire Code and its appendices and standards 2. Submit five complete sets of plans including the following: A. Site/Plot Plan B. Foundation Plan C. Floor Plan D. Ceiling and Roof Framing Plan E. Electrical Plans (2 sets, detached) including the size of main switch, number and size of service entrance conductors, panel schedules, and single line diagrams F. Plumbing and sewer plans, including isometrics, underground diagrams, water and waste diagram, sewer or septic system location, fixture units, gas piping, and heating and air conditioning. 3. A disabled access overlay of the precise grading plan is required to be submitted to the Department of Building and Safety for plan review of the site accessibility 4 PLANNING COMMIS. _N RESOLUTION NO. requirements as per 2010 CBC Chapters 11A and B (as applicable) and Chapter 10. All exits must provide an accessible path of travel to the public way. (CBC 1024.6 & 1127B.1) 5. Detectable warnings shall be provided where required per CBC 1133B.8 and 1127B.5 (7). The designer is also required to meet all ADA requirements. Where an ADA requirement is more restrictive than the State of California, the ADA requirement shall supersede the State requirement. 6. Provide an accessible path of travel to the trash enclosure. The trash enclosure is required to be accessible. Please obtain a detail from the Department of Building and Safety. 7. All contractors and subcontractors shall have a current City of Palm Desert Business License prior to permit issuance per Palm Desert Municipal Code, Title 5. 8. All contractors and/or owner -builders must submit a valid Certificate of Worker's Compensation Insurance coverage prior to issuance of a building permit per California Labor Code, Section 3700. 9. Address numbers all shall comply with Palm Desert Ordinance No. 1217 (Palm Desert Municipal Code 15.15 Compliance with Ordinance 1217 regarding street address location, dimension, stroke of line, distance from street, height from grade, height from street, etc. shall be shown on all architectural building elevations in detail. Any possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons that may render the building address unreadable shall be addressed during the plan review process. You may request a copy of Ordinance 1217 or. Municipal Code Section 15.28 from the Department of Building and Safety counter staff. 10. Please contact Debbie Le Blanc, Land Management Specialist, at the Department of Building and Safety (760-776-6420) regarding the addressing of all buildings and/or suites. 11. Appears that the existing plumbing facilities do not meet the 2010 California Plumbing Code for assembly use for minimum plumbing facilities required. Refer to table 4-1 of the CPC. 12. The existing ADA restroom doors cannot swing out as this encroaches more than one-half the required exit width of the corridor. 5 PLANNING COMMISSIESOLUTION NO. 13. These are some of the preliminary comments and does not constitute a full review for compliance with all the above mentioned codes. PUBLIC WORKS DEPARTMENT: 1. The applicant shall limit improvements to those on the approved site plan. 6 City of Palm D -wt Community Dew ,lent MAY 162011 Expanded Statement of Use Date: 5/16/2011 ST. Mary Magdalene Coptic Orthodox Church. • The purpose of the conditional use permit application for the existing building at 77670 Enfield Lane, Palm Desert, CA, 92211 is to allow using it as a church. • The proposed church is to serve the Coptic orthodox small community in Coachella Valley. • The church will have 2 weekly services as follows: o Sunday's main Service: will be attended by 25 families from the total of 35 families of the Coptic Orthodox Community. o Friday's secondary Service: will be attended by the remaining 10 families who are working during the Weekend. • The church will also be used for Sunday school services. The purpose of Sunday school is to provide bible studies, religious songs, Hymns...etc. This Sunday school service takes place every Saturday and Sunday evenings. • The Church has only one employee, The Priest, who will be at the church on a daily basis for the entire week. The Priest usually use some help from aprox. 8-12 Volunteers who volunteer on weekdays to assist in bookkeeping, preparing monthly brochures and other paperwork. Tvbical hours of operation are as follows: Sunday Monday Tuesday Wednesday Thursday Friday Saturday Main service (Liturgy) 8:00 am 12:00 pm Social Gathering 12:00 pm 2:00 pm Sunday school Service 5:00 pm 8:00 pm Office work 8:00 am 5:00 pm Senior Meeting (max 50 occupants) 5:00 pm 8pm Office work 8:00 am . 5:00 pm Hymns study (max 50 occupants) 5:00 pm 8.00 pm Office work 8:00 am 5:00 pm Bible Study (max 50 occupants) 5:00 pm 9.00 pm Office work 8:00 am 5:00 pm Vesper (max 50 occupants) 5:00 pm ..8:00 pm Secondary Service (liturgy)-10 families 6:00 am 8:00 am Servants meeting (max 50 occupants) 5:00pm .9:00 pm Confession & Parent meeting (max 50 occupants) 8:00 am...4:00 pm Sunday school & Vesper 4:30 pm .9:30 pm 06/05/2011 19:01 760883n0g5 FR THOMAS RIZKAL.LAH PAGE 81/83 June, 61h, 2011 St Mary Magdalene Coptic Orthodox Church P.0 Box 3111 Rancho Mirage, CA 92270 Re: Case # CUP 11-167 St Mary Magdalene Church Steve Metzler industrial Waste Inc. 41-865 Boardwalk, suite 106 Palm Desert, CA 92211 Dear Mr. Metzler, in reference to your letter dated May 26, 2011 to the City of Palm Desert, regarding the CLIP for St. Mary Magdalene Church, we appreciate your concern for any potential public safety problem and potential crowded parking. The church has secured and working on securing more parking spaces With all cooperative and understanding neighbors, which deems your. property's additional parking completely tnneceestary and not needed by the church. The Church representative also met on Friday, June 4th, 2011 with Mr. Don Swlndel of Paragon Signs, your tenant, to discuss and moire your and his concern for the public safety In the rear yard of your property at 77.660 Enfield Lane. The church has offered a solution to install a fence that extends from the north east corner of your building to the south vast edge of your trash enclosure, ld the cogs the Ours Please refer to the attached sketch of the proposed fence tocaion. This proposed fensa will impede all church attendants from reaching any of the stored motorists or vehicles that might be in your tenant's rear yard. rib proposed fence will also ensure both the safety of the church attendants and the safety of the equipment or materials that might be stored at your tenant's near yard. Wet are also very concern and understand your concern of the potential illegal trash dumping, hence we will maintain the gate between our buildings closed at all times during the hours when we are not using our building. 2011064151921 Para 86/05/2011 19:01 7608935885 FR THDMAS RIZKALLAH PAGE 02/03 During hours of operation of your tenant and our services, the gate between our buildings will ba opened and monitored by the people physically present at the premises from both sides. 1 hope that this proposed fence wiN address and resolve your concern of the public's safety. Regards, Saint Mary Magdalene Coptic Church Father Thomas Rizkallah Email: Frthomaanigmsn.corn CC: Missy Grisa, City of Palm Desert Amir Ibrahim, MD Secretary of Board Emad Michael, Michael Architecture and Consulting Inc. 2011.06-0519:32 7608.35185 Paget SIGNS Missy Grisa, Assistant planner City of Palm Desert 73-510 Fred Waring Dr. Palm Desert, Ca 9221-2578 77-650 ENFIELD LANE • PALM DESERT, CA 92211 I760] 345-3340 FAX: C7603 345-6376 May 31, 2011 Re: case #cup 11-167 St. Marty Magdalene Coptic Orthodox Church Dear Ms. Grisa : City of Palm Deere CommmltY DereloPnent JUN 0 2 2011 I'm the tenant in the building at 77-650 Enfield Lane. I have been in this building since the building was built in 1996. We share a common driveway with the building at 77-670 Enfield Lane (the proposed Church location) access to our back storage yards. In 1996 we installed a locking gate between the building to provide secured storage for our materials, vehicles, signs & equipment. The new owners of the 77-670 bldg approached me about using my parking spaces as they needed additional parking spaces for their Sunday services. I informed them that I didn't have a problem with my parking spaces in front of my bldg. but in my back storage yard I didn't have any available because of my trucks, equipment and materials. I informed them that I was a tenant and that they should contact the building owner Mr. Steve Metzler the owner of Industrial West, a local brokerage & management company. After rethinking the parking the parking & security problems of having my secured storage yard open to the public on Saturday evenings and Sundays would expose me a number of possible liabilities. There are occasions that we keep customers vehicles or equipment in our yard overnight & weekends. There is also the possibility of children playing on our equipment and injuring themselves, with our security gates open on the weekends there would not be anyone regulations who has access to my yard. Last, I do not believe the building at 77-670 Enfield Lane is a suitable building for a public church in light industrial area with a shares driveway and storage facilities. Donald win • Owner Paragon Signs 760.345.33.40 LOCATED IN THE COUNTRY CLUB BUSINESS PARK From: Holly Sonnenberg To: (risa. MPIissa Cc: Qaamara landau Subject: 77-700 Enfield Lane, Palm Desert, CA - Redprocal Parking Agreement Date: Friday, May 27, 2011 4:12:30 PM Hi Missy; Per our conversation earlier today, we represent RIF IV -Enfield, landlord of the property located at 77- 700 Enfield Lane, Patin Desert, CA 92211. We were recently notified that the neighboring church, St. Mary Magdalene, located at 77-670 Enfield Lane, Palm Desert, CA 9221 had requested our tenants to sign a reciprocal parking agreement authorizing St. Mary Magdalene's parishioners to park on our parking lot during the church hours. Landlord was not asked to sign the reciprocal parking agreement, and as such, the agreement is not valid. Our property is an Industrial Multi -Tenant building and our Tenants use the property for their business Monday through Sunday. Please provide this to the Planning Commission at the Public Hearing on June 7, 2011 so they can take our stand on this issue into consideration. Please let me know if you have any questions and thank you for your help. Holly Sonnenberg Assistant Property Manager Lic#01863326 11620 Wilshire Blvd, Suite 300 Los Angeles, CA 90025 (310) 966-3820 Direct (310) 966-1690 Fax From: Steve Metzler To: Grisa. Melissa, Subject: CUP 11-167-St. Mary Magdalene Coptic Orthodox Church Date: Thursday, May 26, 20113:10:31 PM Attachments: CUP 11-167.pdf Dear Ms. Grisa: Please see attached correspondence and back up documents. Feel free to contact me if you have any questions. Regards Steve Metzler Industrial West, Inc. 41865 Boardwalk, Suite #106 Palm Desert, CA 92211 760) 773-4443 760) 773-4998 DRE # 834032 xw May 26, 2011 Missy Grisa, Assistant Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92211-2578 RE: Case #CUP 11-167 St. Mary Magdalene Coptic Orthodox Church Dear Ms. Grisa: INDUSTRIAL WEST, INC. COMMERCIAL REAL ESTATE SERVICES BROKERAGE • MANAGEMENT • INVESTMENTS Thank you for taking the time to share the information you intend to submit to the planning commission for the above referenced CUP case. The applicant has submitted a letter to you that refers to parking agreements from the owners of adjacent properties. This statement is deliberately misleading and false. The parking agreement for 77-700 Enfield Lane is executed by Mike Solomon, Vaquero Development. Mr. Solomon does not own the 77-700 Enfield Building. It is owned by Rexford Industrial; see attached property detail report on 77-700 Enfield Lane. The parking agreement you have for 77-650 Enfield Lane is executed by Don Swindel, my tenant. I own the 77-650 building. When I spoke to Mr. Swindel, he informed me that he explained this to the applicant and told them how to get in touch with me. They never contacted me. Tenants do not have the legal capacity to create parking easements on leased properties. The shared parking agreements submitted to you are worthless and unenforceable. My property 77-650 Enfield Lane shares a driveway with the applicant's property that leads to a shared rear yard area behind the buildings. The rear yard area is fenced at the entrance to the yard. The yard is not divided and access to the yard area behind each building is unimpeded. The fence was installed for security reasons and to stop illegal trash dumping which was occurring on weekends. My tenant manufacturers signs and does metal fabrication. Vehicles and equipment are stored in the yard. This is not an appropriate area for church parking or a children's playground. How can my tenant be sure his vehicles and equipment will be secure if the rear yard area is going to be open continuously beginning on any Saturday after 4pm until the following Monday before 6AM as the applicant specified in the shared parking agreement. What about the illegal garbage dumping problem. My tenant receives materials on tractor trailer 41-865 Boardwalk, Suite 106, Palm Desert, CA 92211 OFFICE: (760) 773-4443 FNG (760) 773-4998 www.inwestinc.com trucks. He manufacturers among other things, signs on large billboards as well as department store size signs for national and local businesses. This type of light industrial traffic is not compatible with a Church traffic pattern on a shared driveway/parking situation. If you were to approve this use on a Service Industrial (SI) zoned property you will create a potential public safety problem. This is a completely incompatible use. It is adjacent and shares yard space with a sign and steel fabrication manufacturer. It is grossly under parked. Its hours of operating are weekends and some evenings which exposes the 77-650 Enfield building to potential security, liability and illegal trash dumping problems. For these reasons I do not believe a CUP is appropriate for this use at this site. Regards /11-44. Steve Metzler Cc: Brian Ward Rexford Industrial Don Swindel/Paragon Sign SHARED PARKING AGREEMENT Date: 3/17/2ozi Don Swindel 77.650 Enfield Lane (760) 345-3340 Palm Desert, CA 92211 Fax (760) 345,6378 para€,,on.signs@verizon.net I am Don Swindel, the business owner of Paragon Signs, located at 77-65o Enfield Lane, Palm Desert, CA 92211. I am hereby agree to allow the new next door neighbor St. Mary Magdalene Church located at 77-67o Enfield Lane, Palm Desert, CA 92211 to use our 15 parking spaces at the front and rear yards, during the weekends and legal Holidays. These 15 parking spaces include one Van Accessible ADA parking space at the front yard. These 15 shared parking spaces may be used by the church continuously beginning on any Saturday after 4:ooPM until the following Monday before 6: oo AM. City of Pain Nowt Community Devnlopn1en! Don Swindel Business Owner of Paragon Signs MAY 0 3 Z011 ay)k Amir Ibrahim. Church Secretary St. Mary Magdalene Coptic Orthodox Church SHARED PARKING AGREEMENT Date: 05/12/11 I am k kt .(r,oKc- \ , the business owner of lir prated at 77 'X-C Enfield Lane, Palm Desert, CA 92211. I am hereby agree to allow the new next door neighbor St. Mary Magdalene Church located at 77-670 Enfield Lane, Palm Desert, CA 92211 to use our & parking spaces at the front and rear yards, during the weekends and legal Holidays. These (p parking spaces include one Van Accessible ADA parking space at the front yard. These shared parking spaces may be used by the church continuously beginning on any Saturday after 4:ooPM until the following Monday before 6:0o AM. Owner Business Owner of Amir Ibrahim. Church Secretary St. Mary Magdalene Coptic Orthodox Church Please note that there will be an additional 7 parking spaces from adjacent property at 77-650 Enfield Lane, 6 additional parking spaces from adjacent property at 77-700 Enfield lane and net additional 8 parking spaces at the easement north of our property. Those additional parking spaces will be used every Saturday 4:00 pm„until the end of Sunday. Please refer to the attached agreements for the additional parking spaces from the owners of the adjacent properties. Please don't hesitate to e-mail me with any questions that you might have any questions. Saad Rizkallah AKA Fr. Thomas Rizkallah E-mail Frthornasr@msn.com 1 CITY Of Hihi'► 73-510 FRED WARING f)RIVL PALM DL5k.Rr, CALIFORNIA 922t. TEL: 760 346-0617 IAX:760 341--7098 in rulpaL n•d escrl-orb CITY OF PALM DESERT LEGAL NOTICE CASE NO. CUP 11-167 NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert Planning Commission to consider a request by ST. MARY MAGDALENE COPTIC ORTHODOX CHURCH for approval of a conditional use permit to operate a church in an existing Service Industrial District. The property is located at 77-670 Enfield Lane. 2 01 ft 03 01 APN: 626320027 Nausea: 77550 APN: 626320012 tiouvs0; 30610 3• ^�`�NN}}v..rr T V `� 1'' Ha o2, 77700 __-EIf1EL OLANE - `•' API: 626320013 ---""-•-�- 11e4.400:77565 API: 526320011 H0USo6: 30620 111 N—f API: 626460010 Hous00:77670 API: 626321023 APN: 526320/191 14eosu0: 7/564 Hou6M: 0 APN: 676460006 House,: 77725 106: 626400000A626400008 0u Hs0t 77690N: 1 House6: 77720 --SPRINGFIELD-L-ANE------- N. W c utei API: 626320009 API: 626320006 Housee: 77622 House! 77662 W }4[ / I ♦ ----'-----COUNTNYtLUN-ORIVE---------- APN: 626400007 110uso830725 HMI API: 6263220/9 H0u .a:0 API; 62641604. HousoW: 39700 API: 6264100:: Houve6: 39746 APN: 52641003: Houser 30760 API: 02541004: Housc6: 77760 APN: 62641004C N0uae61 77750 SAID public hearing will be held on Tuesday, June 7, 2011 at 6:00 p.m. in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information concerning the proposed project is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. PUBLISH: Desert Sun LAURI AYLAIAN, Secretary May 22, 2011 Palm Desert Planning Commission Realist Page 1 of 1 Property Detail Report Subject Property 77700 Enfield Ln Palm Desert, CA 92211-0407 Riverside County Owner Info: Owner Name : Rif Enfield Iv • Tax Billing Address : 11620 Wilshire Blvd #300 Tax Billing City & State : Los Angeles CA Tax Billing Zip : 90025 Tax Billing Zip+4 : 1769 Location Info: Tax Info: Zoning : R-R Panel Date : 11/20/1996 Flood Zone Panel : 0602451625C Flood Zone Code APN : 626-481-005 Alt APN : 626-481-005 Tax Year : 2010 Annual Tax : $27,389 Assessment Year : 2010 Land Assessment : $450,382 Characteristics: Lot Acres : 1.64 Last Market Sale: Recording Date Settle Date Document No Sales History: Recording Date Nominal Buyer Name Seiler Name Document No Document Type Mortgage Hist:_._....__ Mortgage Date Mortgage Amt Mortgage Lender Mortgage Type : 10/26/2007 : 10/18/2007 : 659047 : 10/26/2007 : Rif Iv -Enfield Llc : Shinn C L 1999 Trust : 659047 : Grant Deed : 03/22/2010 : $72,000,000 : Bank Of America : Conventional Recording Date : 10/26/2007 Annual Tax : $27,389 County Use Code : Commercial State Use : C08001 Universal Land Use : Commercial (Nec) School District : Desert Sands Indio Map Page/Grid : 819-E2 Census Tract : 449.14 Carrier Route : C048 Improved Assessment : $1,814,393 Total Assessment : $2,264,775 % Improv : 80% Tax Area : 18224 Legal Description : 1.64 Acres In Pars 1 & 2 Pm 154/090 Pm 23474 Lot Number : 1 08/13/1999 Y Shinn Clifford L 1999 Trust Shinn Clifford L 365543 Grant Deed 10/26/2007 $18,000,000 Bank Of America Courtesy of Margaret Davidson Desert Area MLS Lot Sq Ft : 71438.4 Deed Type : Grant Deed Owner Name : Rif Enfield Iv Seller : Shinn C L 1999 Trust The data within this report is compiled by CoreLogic from public and private sources. If desired, the accuracy of the data contained herein can be independently verified by the recipient of this report with the applicable county or municipality. http://realist2.firstamres.com/propertydetail jsp 5/25/2011 m r 0 rn • I M ' l.s_ _ ._ a► f� m Li V' O Ike move Lys 5T1N6.COUC.. '/LL, rrL(L v"vENJP). kKT6.lT /0/ x1 Zd' ot : 6 ix t.. o I kit, 111. /dD rL 1 .'cli7‘70 a nA y o p I �+ ' n • I n I r•_J -11 //f'/o' in 4 -1 a w s r p\ r 0 ]1 as t - Tr L /or.,-a"tr TA 42 7ZTo.66 �. t i F t CI • N. c N _ • 1 —.•/- — -.7-cif i v I • • 4▪ a 2G/•73 ' '-1 fi ▪ Ty- r' i CITY gf Foil] EMT 73-510 FRED WARING DRR'F ['ALAI DESERT, CALIFORNIA 92260-2578 TEL: 76o 346-0611 FAX: 760 341-7098 inf 0Apalm•Jesen.mrg CITY OF PALM DESERT LEGAL NOTICE CASE NO. CUP 11-167 NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert Planning Commission to consider a request by ST. MARY MAGDALENE COPTIC ORTHODOX CHURCH for approval of a conditional use permit to operate a church in an existing Service Industrial District. The property is located at 77-670 Enfield Lane. / APN: 525320027 Hous46: 77550 APN: 626320012 Nou446: 36410 APN: 826320013 HousN: 77505 APN: 026320011 Hou566: 39620 IIIIH UIIIfl1I1 APN: 625320001 H6114 6: 77504 APN: 626321023 HaB.6:0 ,1/ fl 9I AP6:626320009 APN: 626320006 1— Hous66: 77622 Hout.6: 77562 2 W U * COUNTRY -CLUB DRIVE APN; 620400010 Houser 77670 APN; 526460005 Nooso6: 77725 APN: 626430009IAPN: 5254.0008 House 6: 77690 ( Ho o.6: 77720 SPRINGFIELD L'ANC APN: 620460007 Hou34:39725 APN: 625322019 Hous.6:0 APN: 62541004 Ho ,,e$: 39700 APN: 026410041 Hout.k 39740 APN: 626410031 Hous46: 39760 J APN; 62641004: Haute 6: 77760 APN: 070410040 Name*: 77750 SAID public hearing will be held on Tuesday, June 7, 2011 at 6:00 p.m. in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information conceming the proposed project is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. PUBLISH: Desert Sun May 22, 2011 LAURI AYLAIAN, Secretary Palm Desert Planning Commission The Desert Sun 750 N Gene Autry Trail Palm Springs, CA 92262 • 760-778-4578 / Fax 760-778-4731 State Of California ss: County of Riverside Advertiser: CITY OF PALM DESERT 73510 FRED WARING DR PALM DESERT 2000263241 CA 922602 CITYCLERK S�OFFICE PALM DESERT, CA 2811HAY 26 AM(1c43 I am over the age of 18 years old. a citizen of the United States and not a party to, or have Interest In this matter. I hereby certify that the attached advertisement appeared in said newspaper (set in type not smaller than non panel) in each and entire issue of said newspaper and not In any supplement thereof on the following dates. to wit: Newspaper: .The Desert Sun 5/22/2011` I acknowledge that I am a principal clerk of the printer of The Desert Sun. printed and published weekly in the City of Palm Springs. County of Riverside. State of California. The Desert Sun was adjudicated a newspaper of general circulation on March 24. 1988 by the Superior Court of the County of Riverside. State of California Case No. 191238. I declare under penalty of perjury that the foregoing Is true and correct. Executed on this 22nd day of May, 2011 in Palm Springs, Califomia. Declarant's Sign L_Alficate of Publication CRY of PaM Desert COmmunftY Development MA f it fJ �vI! No 1757 CM OFDESERT PALM NOTICE CASE NO. CUP 1 t-167 G NOTICE IS NEREBY i ear ro x bea PIPlafore nsa Patin tert J rrrng Commission LEIV RY � THOlJ x C UIRCH a i 1 apWoval of a coryltforr. a cuse hurch nexisff Service iayl Dis. ar 0 a1 n•67o Enserd bSAI0pu �eerinp wi• ll gJulmne 7, 2011 ei 6. Chamber a't'eie 5 0 Fred WatCtewn pry Pefm �I Ca fomla. l,- at wilidi_ Erne • 1 IMeresttOdae Waco I, are invited to attend aemftetrrd Wtfften es items Oay concerning e shabp be *caved uPtolhedareof me. heating. information posed p a avz: per fnem of Community t� elopm uazve0eddresst bee - at' tn.n laws a e.ao 5:00posed action m, cCro ma limn ed to raising only chose issues yyo0u or sOmeOrb vise rafSed at frte ptfi0c tlh e ' olive a n eied �lo the , nahy. t emission at or pdfor i Publtc hearing. II LAURI AYLAj Sec i rotary lannn ng Commission Desert . 1tb: 5/22h 1 Easy Peel® Labels Use Avery® Template 5160® APN# 626-480-006 Wayne & Janet Waters 45443 Camino Del Rey Indian Wells, CA 92210 APN# 626-480-009 Thomas & Wilma Black PO Box 729 Rancho Santa Fe CA 92067 APN# 626-481-002 Bayfield 717 Lido Park Dr. Newport Beach CA 92663 APN# 626-320-027 Buccola Anthony & Nagler Lawrence 2300 S. Sepulveda Blvd Los Angeles CA 90064 APN# 626-480-003 Monarch Holdings PO Box 6017 Garden Grove CA 92846 APN# 626-320-013 Garand Lane Assoc. 10877 Wilshire Blvd #1105 Los Angeles CA 90024 A ® Bend along line to •` 'l Paper expose Pop -Up EdgeTM - PN# 626-480-007 Wayne & Janet Waters 45443 Camino Del Rey Indian Wells, CA 92210 APN# 626-480-010 Wayne & Janet Waters 45443 Camino Del Rey Indian Wells, CA 92210 APN# 626-481-003 Marcus Metzler 41865 Boardwalk #106 Palm Desert CA 92211 APN# 626-480-001 Monarch Holdings PO Box 6017 Garden Grove CA 92846 APN# 626-480-004 Monarch Holdings PO Box 6017 Garden Grove CA 92846 APN# 626-140-002 Southern Pacific Trans. 1700 Farnam St. 10th Omaha, NE 68102 AVERY® 5160® APN# 626-480-008 William & Virginia Salpaka 77720 Springfield Ln Palm Desert CA 92211 APN# 626-481-001 Manuel & Angeles Torres 77570 Enfield Ln Palm Desert CA 92211 APN# 626-481-005 Rif Enfield Lv 11620 Wilshire Blvd #300 Los Angeles CA 90025 APN# 626-480-002 Monarch Holdings PO Box 6017 Garden Grove CA 92846 APN# 626-480-005 Robert & Donna Tirsbier 41420 Yucca Ln Bermuda Dunes, CA 92203 Etiquettes fades a paler Utilisez le gabarit AVERY® 5160® j 0 Sens de chargement Replies le la hadiure afin de 1 reeler le rebord Pop-Upp" J www every oom 1-800.G0 AVERY r- CITY Of PntDl DESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 76o 346-0611 FAX: 760 341-7098 info@pal m-desert. org CITY OF PALM DESERT LEGAL NOTICE CASE NO. CUP 11-167 NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert Planning Commission to consider a request by ST. MARY MAGDALENE COPTIC ORTHODOX CHURCH for approval of a conditional use permit to operate a church in an existing Service Industrial District. The property is located at 77-670 Enfield Lane. APN: 628320027 House": 77550 APN: 626320012 Nougat: 39610 APN:626320013 House*: 77585 APN: 620320011 Hausa: 39620 L. I11111 11 APN: 626321023 House":0 • APN: 626320001 House*: 77564 I r APN: 626480010 House*: 77670 arR1NOPIEL-D-L APN: 626401005 Hou00t 77700 APN: 626480006 Hausa*: 77725 LPN:626460009APN: 626480006 House*: 77690 I Housef 77720 APN: 626320009 APN: 626320008 House*: 77622 Hausat 77662 COUNTRY-CL1.16-DRIVR APN: 626480007 House*: 39725 APN: 20322019 Nousee:0 APN: 62641004, House": 39700 APN: 62641004i House% 39740 APN: 62641002 Housat 39760 APN 62641004: House*: 77760 APN: 620410040 House": 77750 SAID public hearing will be held on Tuesday, June 7, 2011 at 6:00 p.m. in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information concerning the proposed project is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. PUBLISH: Desert Sun May 22, 2011 LAURI AYLAIAN, Secretary Palm Desert Planning Commission