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HomeMy WebLinkAbout24820RESOLUTION NO.24820 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE CANNABIS SOCIAL EQUITY PROGRAM TO AUTHORIZE GRANT FUNDS FOR ALL ELIGIBLE USES AS IDENTIFIED IN THE CALIFORNIA LOCAL EQUITY GRANT PROGRAM GRANT AGREEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, AS FOLLOWS: SECTION 1. The City Council of the City of Palm Springs hereby, finds, determines and declares as follows: A. On March 20, 2019, the City Council adopted Resolution No. 24581 authorizing the implementation of the Cannabis Social Equity Program (the "Program"). The Program is aimed to assist individuals who have been negatively impacted by the disproportionate enforcement of cannabis -related crimes by providing them with assistance and an opportunity to participate in the emerging cannabis industry. B. The Program adopted by the City Council will provide a Cannabis Social Equity Grant to qualifying applicants to assist individuals and businesses to participate in the cannabis industry by removing barriers to entry and facilitating business opportunities for those who otherwise do not have access due to lack of capital or criminal history. C. On October 9, 2019, the City was awarded Local Equity Grant Funding in the amount of $100,000 from the California Bureau of Cannabis Control (the "Bureau") to implement the City's Program. Pursuant to this grant, the City anticipated funding available for five qualifying Cannabis Social Equity Grant applicants with permit fees of $20,000 each. D. The City and the Bureau entered into that certain California Local Equity Grant Program Grant Agreement identified by Grant Agreement No. DCA-BCC-2019-010 and fully executed by the state on January 10, 2020, (the "Grant Agreement"). In accordance with the Grant Agreement, the Bureau disbursed the Local Equity Grant in the amount of $100,000 to the City on February 28, 2020. E. The City has established and made available the Program to qualifying Social Equity applicants, and since its implementation the City has received applications from four prospective Social Equity applicants, with two Social Equity applicants approved pursuant to the Program, and with one applicant receiving a cannabis license and permit to operate with an opening scheduled in November 2020. Resolution No. 24820 Page 2 F. In accordance with the terms and conditions of the Grant Agreement any amount of grant funds not expended within one year of disbursement (February 28, 2021) shall be returned to the Bureau. G. The Grant Agreement establishes a wide range of eligible uses of the grant funds, including: (a) to provide a loan or grant to a local equity applicant or local equity licensee to assist with startup and ongoing costs, including but not limited to, rent, leases, local and state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce; (b) to support local equity program efforts to provide sources of capital to local equity applicants and local equity licensees; (c) to provide direct technical assistance to local equity applicants and local equity licensees; and (d) to assist in the administration of local equity programs. H. Expanding the Program as originally adopted to make available the grant funds for all eligible uses as identified in the Grant Agreement will ensure the City has the opportunity to award and issue local equity grants to qualified applicants up to the full amount of the Local Equity Grant awarded to the City within one year of the Bureau's disbursement to the City. SECTION 2. This Resolution amends the Cannabis Social Equity Program as adopted by the City Council on March 20, 2019, pursuant to Resolution No. 24581, by revising Section 8 "Participant Benefits" to expand the eligible uses of grant funds to those identified in the Local Equity Grant, all as identified on Exhibit "A" attached hereto. SECTION 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk of the Council shall attest to and certify the vote adopting this Resolution. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 12TH DAY OF NOVEMBER, 2020. David H. Ready, Esq.�.P1V: , City Manager ATTEST- i rithony J. City Clerk Resolution No. 24820 Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF PALM SPRINGS) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24820 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on November 12, 2020, by the following vote: AYES: Councilmembers Garner, Middleton, Woods, Mayor Pro Tern Holstege, and Mayor Kors NOES: None ABSENT: None ABSTAIN: None RECUSED: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this�3,"0 day of 2�caD . Jo—n y J. M jia, MC, Cit Jerk City of Palm prings, lifornia EXHIBIT "A" The City of Palm Springs Cannabis Equity Program is hereby revised as follows: Section 8 "Participant Benefits" is hereby replaced in its entirety as follows: 8. Participant Benefits. A Program participant in either Classification 1 or 2 shall be entitled to receive the following benefits: i. Applicable City fees related to a Program participant's cannabis related business permit will be paid by the City resulting in a zero -dollar fee to the Program participant. ii. Educational workshops for application completion and processing. iii. Upon review by the City of available unused grant funds, the City may provide an additional grant to a Program participant to assist with startup and ongoing costs, including but not limited to, rent, leases, state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce. The amount of the grant will be dependent upon the number of Program participants and the amount of unused grant funds, if any. A Program participant receiving a grant shall be required to enter into a sub -recipient agreement with the City subject to terms and conditions required by the City Attorney extending to the Program participant the terms and conditions of the California Local Equity Grant Program Grant Agreement (No. DCA-BCC-2019-010) between the City and the State of California Department of Consumer Affairs full executed on January 10, 2020.