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IiNSUfPAN01' Na R�(U(I �L'f.) A-2017-369-11 <br />WOR talAY tPh0CEFD <br />CL-LP,K ()l_ ('0UN(�� <br />DEC 2 0 200no, <br />OPERATING AGREEMENT FOR ADULT USE (NON -MEDICINAL) <br />+ CANNABIS RETAIL BUSINESS <br />This Operating Agreement ("AGREEMENT") is dated December 21, 2017 between the City of <br />Santa Ana, a charter city and municipal corporation ("CITY") and Healthy Healing Holistic <br />Options, a California Mutual Benefit Corporation dba ShowGrow ("OPERATOR"), collectively <br />referred to as "the Parties". This AGREEMENT shall become effective on the date that <br />OPERATOR is issued a Regulatory Safety Permit by CITY for the operation of an adult -use <br />cannabis retail business transacted and carried -on by OPERATOR at the following subject <br />property location, 1625 E. St. Gertrude, Santa Ana, California 92705. <br />1. Public Benefit. <br />A. Intent. The purpose of this Operating AGREEMENT is to collect fees for the <br />operation of an adult -use cannabis retail business and to provide fees for mitigation options <br />to be used by CITY to compensate for impacts to CITY services, residents, and/or <br />businesses as set forth in Santa Ana Municipal Code section 40-2(22). The Parties agree <br />that this AGREEMENT confers substantial private benefits on OPERATOR which should be <br />balanced by commensurate public benefits. As part of the adult -use cannabis retail <br />business Regulatory Safety Permit process, OPERATOR agrees to enter into this <br />AGREEMENT. OPERATOR acknowledges that CITY and OPERATOR have had extensive <br />negotiations and proceedings prior to entering into this AGREEMENT. OPERATOR has <br />elected to execute this AGREEMENT as it provides OPERATOR with important economic <br />benefits. Accordingly, the Parties intend to provide consideration to the public to balance <br />the private benefits conferred on OPERATOR by providing mitigation measures to the public <br />and to pay for CITY services as a result of the operating agreement fees collected. <br />B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to <br />hire qualified City of Santa Ana residents living in Santa Ana to work at its adult -use <br />cannabis retail business. OPERATOR shall also use reasonable efforts to retain the <br />services of qualified contractors and suppliers who are located in the City of Santa Ana or <br />who employ a significant number of City of Santa Ana residents. OPERATOR shall make a <br />good faith effort to advertise on various social media sites, at local job fairs, and through <br />public agencies and organizations. <br />C. Community Benefit and Sustainable Business Practices Plan. OPERATOR <br />agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan") to <br />CITY is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A"). Said <br />Plan shall detail OPERATOR's experience working with community-based groups such as <br />school districts, college districts, city or county agencies, non-profit organizations, artist or <br />downtown groups. Said Plan must also outline commitments by OPERATOR to engage its <br />staff in community service events or programs in the City of Santa Ana. Plan must also <br />outline and address sustainable business practices. OPERATOR shall adequately <br />document that it has met the Plan's obligations and commitments as a condition of <br />renewal/extension of this AGREEMENT upon expiration of the initial term and any <br />extensions. <br />1 <br />