HomeMy WebLinkAboutSOURCE SANTA ANA, THE - 2017A-2017-369-07
jNS'UPA€ GE NOT REQUIRE -D
WOW MAY PROCEED
CLERK OF COUNCI
DEC 2 8 2017
OPERATING AGREEMENT FOR ADULT USE (NON -MEDICINAL)
CANNABIS RETAIL BUSINESS
This Operating Agreement ("AGREEMENT") is dated _December 20,_, 2017_ between the
City of Santa Ana, a charter city and municipal corporation ("CITY") and _The Source Santa Ana
_, a _medical & adult use retail cannabis business_ ("OPERATOR"), collectively referred to
as "the Parties°. This AGREEMENT shall become effective on the date that OPERATOR is
issued a Regulatory Safety Permit by CITY for the operation of an adult -use cannabis retail
business transacted and carried -on by OPERATOR at the following subject property location,
2141 S Wright Street , Santa Ana, California 92705
1. Public Benefit.
A. Intent. The purpose of this Operating AGREEMENT is to collect fees for the
operation of an adult -use cannabis retail business and to provide fees for mitigation options
to be used by CITY to compensate for impacts to CITY services, residents, and/or
businesses as set forth in Santa Ana Municipal Code section 40-2(22). The Parties agree
that this AGREEMENT confers substantial private benefits on OPERATOR which should be
balanced by commensurate public benefits. As part of the adult -use cannabis retail
business Regulatory Safety Permit process, OPERATOR agrees to enter into this
AGREEMENT. OPERATOR acknowledges that CITY and OPERATOR have had extensive
negotiations and proceedings prior to entering into this AGREEMENT. OPERATOR has
elected to execute this AGREEMENT as it provides OPERATOR with important economic
benefits. Accordingly, the Parties intend to provide consideration to the public to balance
the private benefits conferred on OPERATOR by providing mitigation measures to the public
and to pay for CITY services as a result of the operating agreement fees collected.
B, local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to
hire qualified City of Santa Ana residents living in Santa Ana to work at its adult -use
cannabis retail business. OPERATOR shall also use reasonable efforts to retain the
services of qualified contractors and suppliers who are located in the City of Santa Ana or
who employ a significant number of City of Santa Ana residents. OPERATOR shall make a
good faith effort to advertise on various social media sites, at local job fairs, and through
public agencies and organizations.
C. Community Benefit and Sustainable Business Practices Plan. OPERATOR
agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan") to
CITY is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A"). Said
Plan shall detail OPERATOR's experience working with community-based groups such as
school districts, college districts, city or county agencies, non-profit organizations, artist or
downtown groups. Said Plan must also outline commitments by OPERATOR to engage its
staff in community service events or programs in the City of Santa Ana. Pian must also
outline and address sustainable business practices. OPERATOR shall adequately
document that it has met the Plan's obligations and commitments as a condition of
renewal/extension of this AGREEMENT upon expiration of the initial term and any
extensions.
Operating Fee Rates for Adult -Use Cannabis Retail Business; Payment
For each month OPERATOR of the permitted "adult -use cannabis retail business" (as
said term is defined in Chapter 40 of the Santa Ana Municipal Code) transacts and carries
on adult -use cannabis retail business operations at the above-described property location
permitted by CITY, OPERATOR shall pay an operating agreement fee monthly to CITY.
The term "month" or "monthly" as used in this AGREEMENT shall refer to a calendar month
and shall include any fraction of a calendar month as a whole month. Terms of payment of
the operating agreement fee are as follows:
A. OPERATOR's operating agreement fee shall begin to accrue on the date that CITY first
issues OPERATOR an Adult -Use Cannabis Retail Regulatory Safety Permit and shall be
paid to CITY by the last day of the month following the month for which it is due.
OPERATOR shall pay CITY a monthly operating agreement fee which is the higher of
the following two calculations:
L calculated at a rate of Eight Percent (8%) of the gross receipts generated or
otherwise received; or,
H. calculated at an annual rate of Twenty -Five Dollars ($25.00) per square foot
based on the gross square footage of OPERATOR's permitted property location
(as confirmed by the corresponding "Approved Building Set" on file with City of
Santa Ana Planning and Building Agency) prorated monthly to one -twelfth
(1/12th) of the annual rate amount.
C. OPERATOR shall calculate and report its monthly operating agreement fee based on
both of the above calculations each month; remitting the higher amount to CITY.
D. OPERATOR shall report its operating agreement fee calculations 'to CITY using the
"Monthly Operating Agreement Reporting Form" set out in "Exhibit B" of this
AGREEMENT which is hereby incorporated into this AGREEMENT by reference.
3. Operating Fees Not a Pass -Through Fee; Gross Receipts Defined
A. OPERATOR, as an adult -use cannabis retail business, shall not pass the operating
agreement fees or any or any portion thereof through to the adult -use cannabis retail
business' customer in any fashion except as part of the basic product sales and/or
service price.
B. For the purposes of this AGREEMENT, "gross receipts" shall mean any and all of the
following:
Transfer of title or possession, exchange or barter, conditional or otherwise, in any
manner or by any means whatsoever, of tangible personal property for a
consideration including any monetary consideration for adult -use (non -medicinal)
cannabis, including, but not limited to, membership dues, reimbursements provided
by members, regardless of form, or the total amount of cash or in-kind contributions,
including all operating costs related to the growth, cultivation, manufacture,
distribution, testing, or provision of adult -use (non -medicinal) cannabis or any
transaction related thereto;
• Anything else of value obtained by an adult -use cannabis retail business;
• The total amount of the sale price of all sales;
• The total amount charged or received for the performance of any act, service or
employment of whatever nature it may be, whether or not such service, act or
employment is done as a part of or in connection with the sale of goods, wares,
merchandise, for which a charge is made or credit allowed, including all refunds,
cash credits and properties of any amount or nature;
• Any amount for which credit is allowed by the seller to the purchaser without any
deduction therefrom, on account of the cost of the property sold, the cost of materials
used, the labor or service cost, interest paid or payable, losses, or any other expense
whatsoever; provided that cash discounts allowed or payment on sales shall not be
included;
• The amount of any federal, manufacturer's or importer's excise tax included in the
price of property sold, even though the manufacturer or importer is also the retailer
thereof and whether or not the amount of such tax is stated as a separate charge.
C. "Gross receipts" shall not include the following:
• The amount of any federal tax imposed on or with respect to retail sales whether
imposed upon the retailer or the consumer and regardless of whether or not the
amount of federal tax is stated to customers as a separate charge.
• The amount of any California state excise tax or state cultivation tax regardless of
whether or not the amount of such excise tax or cultivation tax is stated to customers
as a separate charge, or any California state, city or city and county sales or use tax
required by law to be included in or added to the purchase price and collected from
the consumer or purchaser, or such part of the sales price of any property previously
sold and returned by the purchaser to the seller which is refunded by the seller by
way of cash or credit allowances given or taken as part payment on any property so
accepted for resale; or
• The amount of medicinal cannabis (medical marijuana) sales and related services
generated or otherwise received in the event that OPERATOR is both a permitted
medical marijuana collective/cooperative business as well as a permitted, co -located
adult -use (non -medicinal) cannabis retail business operating at the same property
location.
• The amount of the sale price of all medical marijuana goods, wares, merchandise,
and other related services sold or otherwise generated in connection with operation
of a co -located medical marijuana collective/cooperative business.
• The amount of the sale price of business personal property (all property owned or
leased by OPERATOR used in the operation of the adult -use cannabis retail
business, including but not limited to: furniture, fixtures, and business equipment);
real property, including land, buildings and other improvements.
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• The amount of equity contributions, investments, and/or loan proceeds to
OPERATOR's adult -use cannabis retail business operation, and/or proceeds from
the sale or transfer of OPERATOR's adult -use cannabis retail business.
D. "Gross receipts" shall be calculated without any deduction on account of any of the
following:
• The cost of tangible property sold or bartered;
• The cost of materials or products used, labor or service cost, interest paid, losses, or
other expense; or
• The cost of transportation of the adult use (non -medicinal) cannabis, or other
property or product.
4. Remittance and Reporting.
Beginning as set forth above and monthly thereafter, OPERATOR shall report and remit
payment to CITY of the applicable operating agreement fee set forth in Section 2 of this
AGREEMENT. OPERATOR shall report to CITY any gross receipts received during the
preceding monthly reporting period and shall remit to CITY on or before the last day of the
month following the operating agreement fee due and owing during said period as
applicable in accordance with Section 2 of this AGREEMENT. When the last day of the
month falls on a City Holiday or City Hall Closure Day then the reporting/remittance date
shall fall on the next City business day following. The operating agreement fee shall be
acknowledged and agreed by CITY to be paid timely if paid on said date. When
reporting/remitting is made by mail, the postmark date shall serve as proof of timely
reporting/remittance.
5. Records Inspection, Examination and Audit.
OPERATOR acknowledges and agrees that CITY is empowered under this Agreement
to inspect, examine and audit OPERATOR's books and records (including tax filings and
returns), to ascertain the amount of operating fees due and owing. CITY or its authorized
agents shall have the power and authority to conduct a full inspection, examination and
audit of such books and records (including tax filings and returns) at any reasonable time,
including but not limited to, during normal business hours. In the event any such books,
records, tax filings and returns cannot be made fully available within the City of Santa Ana,
OPERATOR acknowledges and agrees that it shall reimburse CITY for the cost of all
transportation, lodging, meals, portal-to-portal travel time, and other incidental costs
reasonably incurred by CITY or its authorized agents in obtaining said full inspection,
examination and audit. In the event that said records inspection, examination and audit
determines that a net operating agreement fee payment deficiency of greater than Five
Percent (5%) exists; OPERATOR acknowledges and agrees that it shall reimburse CITY for
the full cost of said records inspection, examination and audit reasonably incurred by CITY
or its authorized agents.
AT
6. Past due date — Past due penalty: Late interest.
A. Any OPERATOR entity or individual who fails to pay the operating agreement fees
required by this AGREEMENT when due shall be subject to past due penalties and
interest as set forth herein.
i. OPERATOR shall be considered past due if the required monthly operating
agreement fee is not paid by the last day of the month following the month for which it
is due.
ii. For failure to fully pay any monthly fee when due, the following past due penalty and
late interest charges shall be added to the unpaid balance amount owing:
1) A past due penalty of Twenty -Five Percent (25%) per month;
2) A late interest charge of One and One Half Percent (1.5%) per month added to
the unpaid balance amount owing, inclusive of any prior past due penalty or late
interest charges accrued.
B. CITY is not required to send a past due notice or other bill or invoice to OPERATOR, or
any other person subject to the provisions of this AGREEMENT and failure to send such
notice, bill or invoice shall not affect the validity of any operating fee, late penalty or late
interest charge due under the provisions of this AGREEMENT.
7. Term.
This AGREEMENT shall start on the date indicated above and shall terminate on
December 31, 2020 regardless of starting date unless terminated earlier in accordance with
Section 12 or 13 of this AGREEMENT. The AGREEMENT will have one (1) two-year
extension period until December 31, 2022 exercisable by a writing executed by the City
Manager and City Attorney's Office with the approval of OPERATOR.
8. Business License Required.
A valid City of Santa Ana Business License is required for all persons engaged in
transacting and carrying on any adult -use cannabis retail business activity in the City of
Santa Ana. It is unlawful for any person or legal entity to commence, transact or carry -on
adult -use cannabis retail business activity in the City of Santa Ana without first having
procured a City of Santa Ana adult -use cannabis retail business license.
9. Operating Adult -use Cannabis Retail Business.
OPERATOR shall not operate an adult -use cannabis retail business authorized under
the Santa Ana Municipal Code unless:
A. It is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with
the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana
Municipal Code; and
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B. At such time as the State of California requires adult -use cannabis retail business
facilities and businesses to hold a valid license or permit issued by the State of
California, it also holds such license or permit; unless, however, such permit or
license is subsequently not required by the State of California for the type of
commercial cannabis facility or business operation that is the subject of this
AGREEMENT.
C. OPERATOR remains in compliance with any and all other laws and regulations
pertaining to commercial cannabis businesses including adult -use cannabis retail
businesses.
10. OPERATOR Indemnification of City.
A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of
any kind whatsoever sustained or incurred by CITY resulting from entering into this
AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT.
OPERATOR agrees to defend, at its sole expense, any action against CITY, its
agents, officers, and employees related to this AGREEMENT. OPERATOR agrees
to indemnify and reimburse CITY for any court costs and attorney fees that CITY
may be required to pay as a result of any legal challenge related to this
AGREEMENT and/or CITY's approval of a Regulatory Safety Permit. CITY may, at
its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the OPERATOR of its obligation hereunder.
11. OPERATOR Compliance with Laws.
OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code,
including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the
State of California.
12. Default and Termination for Cause.
This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written
notice to OPERATOR. Cause as used in this section, is defined as:
A. Failure to comply with the terms of the City of Santa Ana Adult -Use Cannabis Retail
Business Regulatory Safety Permit issued to OPERATOR by CITY;
B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License
as an Adult -Use Cannabis Retail Business (Adult -Use Cannabis Retailer);
C. Unauthorized transfer by OPERATOR of the City of Santa Ana Adult -Use Cannabis
Retail Business Regulatory Safety Permit issued by CITY;
D. Failure by OPERATOR to accurately report gross receipts information or other data
necessary for CITY to calculate/confirm operating agreement fees;
E. Failure by OPERATOR to pay operating agreement fees and related reimbursement
costs within thirty (30) days of the date those fees are due;
H.
F. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any
inspection, examination and audit of OPERATOR's adult -use cannabis retail
business books and records (including tax filings and returns).
G. OPERATOR shall cure the default resulting from the cause for termination within
thirty (30) days of the date of the notice of termination. If OPERATOR fails to cure
the default within thirty (30) days of the date of the notice of termination for cause,
this AGREEMENT will be terminated.
H. This AGREEMENT will automatically terminate if:
i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by
CITY, or
ii. OPERATOR transfers its Regulatory Safety Permit pursuant to Santa Ana
Municipal Code section 40-12.
13. Termination Without Cause.
Upon mutual written agreement of the parties this AGREEMENT may be terminated with
thirty (30) days notice.
14. Termination - Effect on Prior Obligations.
Upon any termination of this AGREEMENT, OPERATOR's obligation to report and remit
operating agreement fees due and payable under the terms of this AGREEMENT for each
month or fraction of a month of adult -use cannabis retail business operation engaged in
within the City of Santa Ana prior to termination of this AGREEMENT shall continue to be in
effect. Past due penalties and late interest charges shall continue to accrue and be
applicable until all operating fees due under this AGREEMENT are paid in full.
OPERATOR's liability for any remaining unpaid past due penalties and/or late interest
charges shall continue until fully satisfied.
15. Remedies.
A. It is acknowledged by the parties that CITY would not have entered into this
AGREEMENT if it were to be liable in damages under this AGREEMENT, or with
respect to this AGREEMENT or the application thereof, except as hereinafter
expressly provided.
B. Each of the parties hereto may pursue binding arbitration of any dispute, claim or
controversy arising out of or relating to this Agreement or the breach, termination,
enforcement, interpretation or validity thereof, including the determination of the
scope or applicability of this AGREEMENT. Such matter shall be determined by
binding arbitration in Orange County California before three (3) arbitrators. The
binding arbitration shall be administered by JAMS pursuant to its Comprehensive
Arbitration Rules and Procedures pursuant to JAMS' Streamlined Arbitration Rules
and Procedures. Judgment on the award may be entered in any court having
jurisdiction. This clause shall not preclude parties from seeking provisional remedies
to aid arbitration from a court of appropriate jurisdiction.
16. Reimbursement Clause.
In consideration of the time and costs incurred by CITY in the drafting and
implementation of this AGREEMENT, OPERATOR agrees to pay $2,500 to CITY within
thirty (30) days of execution of this AGREEMENT.
17. Attorney Fees and Costs.
In any action or proceeding between CITY and OPERATOR brought to interpret or
enforce this AGREEMENT, or which in any way arises out of the existence of this
AGREEMENT or is based upon any term or provision contained herein, the "prevailing
party" in such action or proceeding shall be entitled to recover from the non -prevailing party,
in addition to all other relief to which the prevailing party may be entitled pursuant to this
AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an
amount to be determined by the court. The prevailing party shall be determined by the court
in accordance with California Code of Civil Procedure Section 1032. Fees and costs
recoverable pursuant to this Section 17 include those incurred during any appeal from an
underlying judgment and in the enforcement of any judgment rendered in any such action or
proceeding.
18. Notice.
Any notice, tender, demand, delivery, or other communication pursuant to this
AGREEMENT shall be in writing and shall be deemed to be properly given if delivered in
person or mailed by first class or certified mail, postage prepaid, or sent by fax or other
telegraphic communication in the manner provided in this section, to the following persons:
To CITY: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax 714-647-6956
Copies to: Executive Director — Planning and Building Agency
City of Santa Ana
20 Civic Center Plaza (M-20)
P.O. Box 1988
Santa Ana, California 92702-1988
Fax 714-973-1461
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702-1988
Fax 714-647-6515
To OPERATOR: The Source Santa Ana
Attn: Compliance
2141 S Wright Street
Santa Ana, CA 92705
_Mailing Address: 10115 Jefferson Blvd
Culver City, CA 90232
A party may change its address by giving signed notice in writing to the other party.
Thereafter, any communication shall be addressed and transmitted to the new address. if
sent by mail, communication shall be effective or deemed to have been given three (3) days
after it has been deposited in the United States mail, duly registered or certified, with
postage prepaid, and addressed as set forth above. If sent by fax or email document
attachment, communication shall be effective or deemed to have been given twenty-four
(24) hours after the time set forth on the transmission report issued by the transmitting
facsimile machine, addressed as set forth above. For purposes of calculating these time
frames, weekends, federal, state, County or City holidays, or City Hall closure dates shall be
excluded.
19. Exclusivitv and Amendment.
This AGREEMENT represents the complete and exclusive statement between CITY and
OPERATOR, and supersedes any and all other agreements, oral or written, between the
parties. This AGREEMENT may not be modified except by written instrument signed by
CITY and by an authorized representative of OPERATOR. Each party to this AGREEMENT
acknowledges that no representations, inducements, promises or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein.
20. Assignment.
OPERATOR may not assign or transfer any interest herein without the prior written
consent of CITY and any such assignment or transfer without CITY's prior written consent
shall be considered null and void.
21. Discrimination.
OPERATOR shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and
prohibited by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. OPERATOR affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local labor laws
and regulations.
22. Jurisdiction -Venue.
This AGREEMENT has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
AGREEMENT shall be determined and governed by the laws of the State of California.
Both parties further agree that Orange County, California, shall be the venue for any action
or proceeding that may be brought or arise out of, in connection with or by reason of this
AGREEMENT.
23. Severability.
If any part of this AGREEMENT is found to conflict with applicable local or state laws or
regulations, such part shall be inoperative, null and void insofar as it conflict with said laws
or regulations, or may be modified or suspended as may be necessary to comply with any
local or state law or regulation but the remainder of the AGREEMENT shall continue in full
force and effect.
24. Counterparts.
This AGREEMENT may be executed in counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument. The
execution of this AGREEMENT may be by actual, facsimile or electronic signature.
25. Disclaimer.
Despite California's commercial cannabis laws and the terms and conditions of this
AGREEMENT or any Regulatory Safety Permit issued pertaining to OPERATOR or the
hereinabove specified property location, California commercial cannabis cultivators,
transporters, distributors, or possessors may still be subject to arrest by state or federal
officers and prosecuted under state or federal law. The Federal Controlled Substances Act,
21 USC § 801 et. seq., prohibits the manufacture, distribution, and possession of cannabis
without any exemptions for medical or non -medicinal use.
26. Authority to Bind.
H
H
H
Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this
AGREEMENT, and shall indemnify CITY fully, including reasonable costs and attorney's
fees, for any injuries or damages to CITY in the event that such authority or power is not, in
fact, held by the signatory or is withdrawn.
{Signature page follows}
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IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year
first above written.
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By. 90,11,
Lisa Wrck
Assis ant City Attorney
RECOMMENDED FOR APPROVAL:
Candida Neal, Interim Executive hector
Planning & Building Agency
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CITY OF SANTA ANA
W�'i ^r
RAUL GODINE II
City Manager
OPERATOR
LEGAL
NAME: The Source Sanfo Ana
f,
SIGNATORY
NAME: Adam Bierman
TITLE: CEO
TAXPAYER ID: 366121
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State of �- - -�O`CLL' }
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the foregoing paragraph is true and correct.
D. PERREZ�
WITNESS my hand and official seal. Commission No.2150948 #
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MedMen
December 26, 2017
Attn: City Attorneys Office
City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, CA 92702
To Whom If May Concern:
Please consider the following enclosed documents and USB as The Source Santa Ana's submission
of Exhibit A of the Operating Agreement for Adult Use Cannabis Retail Businesses.
A list of the enclosed are as follows:
• Community Relations Plan
• Sustainability Practices
• Title 24— Building Energy Efficiency Standards (on USB only)
The rest of the complete agreement was delivered to the City Attorney's office on December 21,
2017.
If you have questions in this matter, please feel free to contact Priya Saluja at priya@medmen.com
or at (323),486-2787.
Thank you for the consideration in this matter.
MedMen
10115 Jefferson Blvd. Culver City, CA 90232
18551 292-8399 • ModMenManagement.com
MedMen
To: City of Santa Ana
From: The Source Santa Ana
Re: Exhibit A - Community Relations and Neighborhood Responsibility Plan
Date: December 26, 2017
Beina a Good Neiahbor
We have a moral obligation to provide high quality compassionate care to the patients and consumers we serve
and the city we live in. Our goal is to contribute to the rich history of Santa Ana and make a positive impact on the
city. We are committed to being a good neighbor and helping the city thrive. This means fully integrating our
operations and charitable aspirations into the community. To build a lasting benevolent legacy, we will implement
a mulfipronged Community Relations and Neighborhood Responsibility Plan.
The applicant has hired MMMG, LLC ("MedMen Management") to serve as the dispensary management company.
As such, MeclMen's Vice President of Government Affairs and Community Relations Manager will oversee the
outreach and communication with the surrounding community. Additionally, the general manager of the dispensary
will be on call 24/7 to service the surrounding community, neighborhood and businesses in case of emergency.
Giving Back to the Communif
MedMen advocates for sensible, clear and just drug laws that strengthen communities. To that end, MedMen
donates 1 percent of all its investment funds to efforts to shape cannabis policy at local, state and federal levels,
and reverse decades of the War on Drugs that has decimated many or our communities.
MedMen has been the largest financial donor to the Marijuana Policy Project, the nation's leading cannabis
advocacy group responsible for landmark legislation since 1995. The company also holds a leadership position
with the National Cannabis Industry Association's Policy Council, championing causes that protect states' rights in
regard to marijuana legalization and pushing for industry standards like safe testing practices.
Locally, MedMen has supported West Hollywood's annual PRIDE Parade and the annual Voice Awards - a
partnership between the Los Angeles Unified School District and the Gay Men's Chorus of Los Angeles to bring
anfi-bullying, tolerance and acceptance round table discussions and campaigns to schools. MedMen West
Hollywood also partners with Being Alive, a non-profit organization serving Los Angeles County's HIV impacted
patients by ending stigma, engaging people in wellness, removing barriers to care and restoring dignify. MedMen
provides 120,000 coupons annually to the organization to assist economically disadvantaged patients access
medical cannabis.
MedMen recognizes that to be successful, it must become a valuable and welcomed member of the
community. We commit to hiring a local, diverse, and skilled workforce that understands the needs of the people
we serve. As such, the VP of Government Affairs has already met with multiple residents to understand the
needs of the surrounding community.
MedMen
10115 Jefferson Blvd. Culver City, CA 90232
(855)292-8399• MedMenManagement.com
MedMen
MedMen will organize, along with its other SACA colleagues, to identify local opportunities for non-profit giving
and/or charitable donations. It is our goal to offer support to those in need. As such, we look forward to initiating
an enduring partnership with local non-profit organizations to help members of the Santa Ana community. We
recognize that the Orange County's workforce starts with strong educational opportunities, and thus it is our
responsibility as a local business to support and promote job training and opportunities to foster long-term
economic growth.
Hirina Local Workers
The health of community is directly correlated to the amount of jobs it provides. MedMen is excited to be a
leading employer in the area. Our goal is to be a major economic engine for Santa Ana. We commit to hiring a
local, diverse, and skilled workforce to create the best customer service experience for our patients. Hiring local
workers means MedMen is uniquely qualified to understand the needs of the people we serve.
Communicating with Our Neighbors
MedMen knows the first step towards building trust and support among neighbors is to have an open and honest
dialog. Therefore, we will use multiple communication platforms to engage the people of Santa Ana and address
any concerns they may have. Each communication platform will be consistently staffed to respond to inquiries.
Communication Platforms
• Canvassing
• Active Social Media Account - monitored by a full-time Social Media Specialist
• Regularly Monitored Email and Website Contact Form
It is MedMen's practice to canvass all residences and businesses within 1000 feet of the dispensary to introduce
ourselves, offer tours of the dispensary, and answer any questions community members may have, prior to
opening the dispensary.
Due to extensive planning and community outreach, MedMen does not anticipate any concerns or complaints from
our operations. However, should a complaint arise we will take immediate action to address the concern and
develop a solution. To facilitate this outcome, the Principal Compliance Specialist will be the city's main point of
contact. The Principal Compliance Specialist and General Manager will be responsible for immediately developing
action plans to address any concerns, complaints, issues, or problems arising from the community.
The Principal Compliance Specialist and General Manager will proactively meet with law enforcement, city council
members, senators, representatives, and other local leaders. They shall serve as the direct contact for all first
responders, neighborhood associations, elected officials, business owners, and any other local leaders. MedMen
puts a tremendous value on having an open dialog with our elected officials and law enforcement.
To enable community conversations, they will actively attend and participate in a wide -range of civic
engagements. Engagements will include - neighborhood association meetings, chamber of commerce meetings,
town halls, county fairs, city council meetings, et cetera. They will solicit feedback on MedMen's operation and
respond to any inquires made at the engagement.
Integrating with the Community
Our mission is to be a valuable member of the community, This means fully integrating ourselves info the
MedMen
10115 Jefferson Blvd. Culver Clfy, CA 90232
(855)292-8399• MedMenManagemenixom
MedMeft
neighborhood and people we serve. Our foam has researched the community to ensure our architecture
seamlessly reflects the neighborhood and enhances the area. We have developed a comprehensive odor
mifigafion plan. Therefore, we anticipate no complaints relating to any nuisances.
The location of our dispensary was carefully chosen to maximize service to our pafienfs and consumers as well as
maintain compliance with state and local laws. MedMen is in full compliance with local and state zoning
requirements.
Additional Communifv Benefits
Beyond providing access to cannabis to patients and consumers in the community, the dispensary can also serve
as a desfinafion for tourists visiting Santa Ana and Orange County. As was seen in Colorado, the CO Board of
Tourism found that 49% of tourism consumers of cannabis took Colorado's legal cannabis program info account
when considering whether to visit Colorado.' While Orange County already has a robust tourism population, a
MedMen branded dispensary, with its high-end retail design, can be an additional offraction to Santa Ana for
tourists.
Research has also shown that "cannatourisfs" fend to vacation for the weekend, and will undoubtedly visit other
refail, food and beverage locations while in town, thus driving up local revenue and hotel occupancy.
' hftp://www,denver ost.com/2015/12/09/mari'uana has hue influence on colorado fourism state surve sa s 2/
MedMen
10115 Jefferson Blvd, Culver City, CA 90232
(855) 292-8399 • MedMenMonagement.com
MedMen
To: City of Santa Ana
From: The Source Santa Ana
Re: Exhibit A - Sustainability Practices
Date: December 26, 2017
MedMen prides itself in using sustainable building, architecture, design and electrical practices
over and above Title 24' As best practice, MedMen carefully follows Title 24 in all of its ref ail
build outs. Below are the additional measures beyond Title 24 that MedMen employs:
SUSTAINABILITY PRACTICES
Architecture & Design:
- All paint is 0% VOC
- All fixtures are LED Title 24 complaint
- All fixfures (toilet, lavatory) meet California Plumbing Code for water usage
- Floor sealer
All furniture used throughout is locally fabricated
Wood paneling sealer contains 0% VOC
Concrete sealer is VOC complaint, low odor and UCDA + FDA approved
Electrical:
- Redundant controls for back of house areas (motion sensors and fimeclock) to gain
further efficiency, above Title 24 Controls.
- Additional local bypass switches to allow option for further costs savings above
standard Title 24 auto shut off control.
'Title 24 is included with this packet on the USB as"02_ExhibifA_Tifle24_CAEnergyCommission-BuildingEnergyEfficiency"
MedMen
10115 Jefferson Blvd. Culver CHy, CA 90232
(855) 292-8399 - MedMenManagemenf.com