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Home My WebLink About12/16/2015 - STAFF REPORTS Law Office of MATTHEW SHAPIRO 401 West A Street Phone: (858) 859-2420 Suite 1100 Fax: (619) 839-3708 San Diego, CA 92101 MShapiroLegal@gmail.com October 11, 2015 Palm Springs City Council 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 RE: Southern C's Updated and Supplemental MCCC/MCCF Application To Whom It May Concern- In 1996,the voters of California passed Proposition 215 legalizing medical marijuana in the State of California. Since the passage of Proposition 215, California Medical Marijuana Law has been repeatedly modified by both the legislature and the Court System in an attempt to thoroughly address the uncertainties and vagueness in this socially progressive body of law. • AB 243, AB 266, & SB 643 Since the most recent round of submittals to the City of Palm Springs,the California legislature has passed regulations that will result in a tectonic shift for the legal Medical Marijuana industry in both Palm Springs and the entire State of California. These laws were passed on September 11, 2015 and were signed into law by Governor Brown October 9, 2015. The passage of Assembly Bills 243 &266 and Senate Bill 643 spell the beginning of the end for the "Wild West" era of legal Marijuana in California. The bills create a comprehensive state licensing system for the commercial cultivation,manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis. The law will take effect on January 1,2016. The State will establish the necessary agencies, information systems, and regulations to begin processing applications and issuing licenses. In the interim, local governments may choose to adopt new ordinances to permit or license local businesses in preparation for state licensing. Facilities currently operating in accordance with state and local laws may continue to do so until such time as their license applications are approved or denied. Although the Iaws are not yet in effect, there is no doubt that these regulations will apply throughout the State of California, including Palm Springs. Palm Springs has an opportunity to ensure that legally permitted Medical Cannabis operators in the industry are compliant with the coming regulations. • • Under the new laws, cultivation will be regulated by the Department of Food and Agriculture. A variety of license types have been established under the new laws. The cultivation licenses have been designated in regards to the energy source of the cultivation operation, outdoor or indoor, as well as the area of the canopy space of the grow. Although previously encouraged, vertical integration will be strictly limited under the regulatory framework. The days of an operator running a farm,processing plant, courier service, and storefront are drawing to a close. Instead the new laws will place strict limits on suppliers, requiring separation of operations throughout the various stages of the logistical supply chain. Southern C's.Inc.is an ideal MCCC candidate as they are compliant with existing local regulations and the new state-wide regulations Southern C's Medical Marijuana Collective is uniquely positioned to satisfy both the requirements of the current Palm Springs regulations and the impending state-wide regulations recently passed on the Medical Marijuana Industry. The location of the facility has previously gone through the application process and is completely compliant with all local requirements. Additionally, Southern C's MCCC is perfectly positioned to receive one of the first Type 1 A Cultivation Licenses from the State of California. Under Section 19300.7 of AB 266, Type IA Cultivation licenses require indoor grow space, artificial light, and a canopy space of 5,000 or fewer square feet. Despite limitations on vertical integration in the new California regulations, Type IA license holders are permitted to concurrently hold a Type I0A dispensary license so • long as they maintain no more than four acres of total canopy space throughout the state. This further serves to exemplify why Southern C's is an ideal applicant for an MCCC with the ability to operate with legal compliance on both the local and state levels. At 4,986 square feet,the Southern C's facility is perfectly situated for a Type 1A license. Southern C's has engaged Medicine Man Technologies, the premier Medical Marijuana cultivation and dispensary firm, in an exclusive licensing agreement. Medicine Man Technologies has been featured on CNN, MSNBC, and The Today Show to highlight their advanced approach to meeting the needs of the developing Medical Marijuana industry. By licensing with Medicine Man Technologies, Southern C's is taking the necessary steps to ensure the MCCC produces high-quality, consistent product in a clean, sterile environment. With the assistance of Medicine Man Technologies, Southern C's will be deploying a state of the art seed- to-sale inventory software,BioTrackTHC, to offer the greatest level of transparency and accountability to regulators in the industry. By complying with both local regulations and impending state-wide regulations, Southern C's is the ideal applicant for an MCCC permit. MCCCIMCCF As the new State laws greatly limit vertical integration in the Medical Marijuana Industry, the City of Palm Springs may consider bifurcating the permitting of MCCC storefronts and MCCF cultivation facilities. Southern C's,thanks to strategic partnerships with Medicine Man • Technologies and BioTrackTHC, is perfectly positioned to work as an MCCF. If Palm Springs seeks to address the separation of interests prior to the enactment of the new state law, Southern C's would accept a conditional approval as an MCCF facility allowing cultivation without also requiring an on-site dispensary. • Application Details While local and state law are coming into closer alignment as it pertains to Medical Marijuana, there remains a red, white, and blue elephant in the room; the Federal government. Although Federal policy as it pertains to marijuana has changed markedly in recent years,this change in policy has not been reflected by alterations in the law itself As such, a number of stakeholders in the legal Medical Marijuana industry are exposed to unnecessary and unreasonable risks. In my experience as counsel on marijuana criminal defense cases and asset forfeiture cases,the disparity between federal law and state Iaw has cost far too many people their money, assets, and freedom. The Palm Springs MCCC application requests documentation that is legally implausible. Although the law requires marijuana collectives to operate as non-profits, it does not require that they be granted tax exempt status as a 501(c)3 from the IRS. In fact, tax-exempt status is all but impossible to obtain from the IRS for a medical marijuana collective. Marijuana collective are rarely, if ever, granted tax-exempt status and have historically been taxed identical to C-Corps subject to the limitations of Internal Revenue Code 280(E). Additional documentation requested in the application is again impossible to obtain without exposing otherwise consenting stakeholders to unnecessary risks. Please consider these important factors when considering Southern C's application and reach out to my office if any specific questions arise. My legal practice focuses on the corporate, civil and criminal matters associated with the rapidly evolving Medical Marijuana industry. My office is uniquely qualified to guide Southern C's • through the permitting process and to ensure Southern C's remains in compliance with all applicable laws and regulations. Should you have any questions regarding any of the above information or the application itself,please do not hesitate to contact my office. Sincerely, A6 Matthew W. Shapiro,Esq. FQALMSA • �� '�, CITY OF PALM SPRINGS `^ Application for MCCC C�o ." Medical Cannabis Cooperative or Collective 4�0 RPT EOM g41FORN�A Please submit one original and fifteen copies of this completed Application and all required materials to the Office of the City Clerk, 3200 E. Tahquitz Canyon Way, Palm Springs, California, 92262. The submission deadline is 2:00 PM on Monday, October 19, 2015. Applications will not be considered complete until all submittal requirements are met. GENERAL INFORMATION MCCC Name: Southern Cs, Inc. Tax ID Number: 46-4803608 102-555376 California Sellers Permit Number: Projected Days/Hours of Operation: Monday through Sunday, 10am-7pm • If awarded a permit estimated number of days to begin operations: 60 Estimated number of qualified patients and/or primary caregivers who will be served: Number of Qualified Patients: 500 Number of Primary Caregivers: 100 APPLICANT INFORMATION Name and contact information of applicant: Name Email William Cooper WilliamCooper39@msn.com Address City, State, Zip 2417 Tuscany Heights Drive Palm Springs, CA 92262 Residence Telephone Business Telephone • (954) 612-0860 (954) 612-0860 Cell Facsimile (954) 612-0860 Name and contact information of the on-site, community relations, or staff person or • other representative to whom one can provide notice, if there are operating problems associated with the MCCC: Name Email William Cooper WilliamCooper39@msn.com Address City, State, Zip 2417 Tuscany Heights Drive Palm Springs, CA 92262 Residence Telephone Business Telephone (954) 612-0860 (954) 612-0860 Cell Facsimile (954) 612-0860 Name Email Address City, State, Zip • Residence Telephone Business Telephone Cell Facsimile LOCATION AND PROPERTY INFORMATION Please note the site location restrictions contained in Section 93.23.15 of the Palm Springs Zoning Code. Address of the MCCC: 63738 Orr Way, Palm Springs, CA 92262 Assessor's Parcel Number: 666-422-007 Zoning: M2 General Plan: Built July 25, 2000 Gross Square Footage of the Proposed Business Space: 4, 896 • Page 2 CANNABIS OPERATIONS • What percentage of the cannabis will be cultivated on site: 100 % What percentage of the cannabis will be cultivated at a permitted MCCC grow facility operated by the MCCC: 100 ova If less than 100% of the cannabis will be grown on site, or at a grow facility operated by the MCCC, please provide the name and contact information of the person(s) who will be cultivating the cannabis: Name Email Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email • Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip • Telephone Member of MCCC? ❑ YES ❑ NO Page 3 Will edible cannabis products be provided on site: ❑ YES L NO • Will 100% of edible products be made on site: ❑ YES ❑ NO If no, or less than 100% of the edible cannabis products will be made on site, please provide the name and contact information of the person(s) who will be the source of the edible products: Name Email Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip • Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip Telephone Member of MCCC? • ❑ YES ❑ NO Please note if edible cannabis products are provided, a County of Riverside Health permit will be required as a condition of approval and submitted prior to operations. Page 4 Will cannabis lotions or ointments, etc. be provided on site: ❑ YES fl NO Will 100% of such products be made on site: ❑ YES ❑ NO If no, or less than 100% of other cannabis products will be made on site, please provide the name and contact information of the person(s) who will be the source of such products: Name Email Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip • Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip Telephone Member of MCCC? ❑ YES ❑ NO Name Email Address City, State, Zip Telephone Member of MCCC? • ❑ YES ❑ NO Page 5 The City Council recently modified the regulations to allow permitted MCCC to provide delivery services. • Will delivery service be provided: ❑ YES V NO If yes, please describe the extent of the delivery service: Please describe any other service that will be available at the site: Expert opinions regarding the various uses and applications of different Medical Marijuana • strains including, but not limited to -the uses and applications of THC vs. THCa -the uses and applications of CBD vs. CBN -the uses and applications of Indica strains vs. Sativa strains - Information regarding the methods of consumption including smoking and vaporizing • Page 6 CERTIFICATIONS AND DECLARATIONS Must be signed by Applicant and all Officers/Directors 1. 1 declare under penalty of perjury, under the laws of the State of California, that all statements contained in this application and any accompanying documents is true and correct, with full knowledge that all statements made in this application are subject to investigation and that any false or dishonest answer to any question may be grounds for denial of the application or subsequent revocation of the permit. ��1 iG-,i /(--)' / 5�" /l Signature/Print I Date Signature/Print Date Signature/Print Date Signature/Print Date 2. 1 expressly authorize the City Manager of the City of Palm Springs to seek verification of the information contained within this application, including but not limited to, a comprehensive review of my background. I understand that this review may include verification of my personal social security number, credit reports, current and previous residences, employment history, education background, civil and criminal history records from any criminal justice agency in any or all federal, state, county jurisdictions, driving records, birth records, and any other public records. S gnature/Print Date Signature/Print Date Signature/Print Date Signature/Print Date Page 7 3. 1 have received, read, reviewed, and understand all of the requirements of the City of Palm Springs regarding the operation and management of medical cannabis • cooperatives or collective in the City, including without limitation the provisions of Chapters 3.35 and 5.35 and Section 93.23.15 of the Palm Springs Municipal Code, and I acknowledge that I am required to fully comply with these provisions. I also acknowledge that ability to comply with any of these requirements may subject me to administrative fines, criminal sanctions, and other penalties as provided in the Palm Springs Municipal Code, including suspension or termination of my permit to operate a medical cannabis cooperative or collective in the City. nature/Print Date Signature/Print Date Signature/Print Date • Signature/Print Date All applications must include a deposit of $7,500 toward the cost of the City's review of the application. In the event this amount is insufficient to cover the City's costs, the applicant will be required to post additional funds to cover City costs. Make checks payable to the "CITY OF PALM SPRINGS." • Page 8 ATTACHMENT 1 • PROPERTY OWNERSHIP AND DOCUMENTS Is the Property owned by the MCCC Applicant: ❑ YES 4 NO Property Owner Name and Contact Information: Name Email RJR Investment Group #2 Address City, State, Zip 63738 Orr Way Palm Springs, CA 92262 Residence Telephone Business Telephone (760)329-6918 (760)329-6918 Cell Facsimile • Is the MCCC in a multi-tenant building: ❑ YES 6a NO If yes please list other businesses in the building: Business Name Business Type Insert behind the Attachment 1 Cover Sheet either: • ❑ Evidence of property ownership by the MCCC applicant. ❑ Current Lease Agreement and notarized acknowledgement from the owner of the property that approves an MCCC will be operated on his/her property. Page 9 4 • ✓1 AIR COMMERCIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIAUCOMMERCIAL SINGLE-TENANT LEASE -- GROSS (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS) 1. Basic Provisions("Basic Provisions"). 1.1 Parties: This Lease("Lease"),dated for reference purposes only September 20, 2013 , is made by and between RJR Investment Group No. 2, a California General Partnership ("Lessor") and William E. Cooper, an individual ("Lessee"), (collectively the"Parties,"or individually a"Party'l. 1.2 Premises: That certain real property, including all Improvements therein or to be provided by Lessor under the terms of this Lease, and commonly known as 63-738 Orr Way located in the County of Palm Springs ,State of California and generally described as(describe briefly the nature of the property and,if applicable,the"Project",'d the property is located wthin a Project) _ An approximately 4, 896 SS. ft. industrial building on approximately 0.38 acres in the North Palm Springs Business Center (APN: 666-422-007) ("Premises"). (See also Paragraph 2) . 1.3 Term: 1 years and 0 months("Original Tenn')commencing October 15, 2013 ("Commencement Date')and ending October 14, 2014 ("Expiration Oats"). (See also Paragraph 3) 1.4 Early Possession: If the Premises are available Lessee may have nonexclusive possession of the Premises commencing ("Early Possession Date"). (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $2, 692.80 per month("Base Rent"), payable on the Fifteenth (15th) day of each month commencing October 15, 2013 . (See also Paragraph 4) ❑ If this box is checked,there are provisions in this Lease for the Base Rent to be adjusted.See Paragraph 1.6 Base Rent and Other Monies Paid Upon Execution: (a) Base Rent:$2, 692.80 for the period October 15 - November 14, 2013 (b)� Security Deposit:$2, 692.80 ("Security DeposW)- (See also Paragraph 5) (c) Association Fees:$ for the period (d) Other: $ for (a) Total Due Upon Execution ofthis Lease:$5,385. 60 1.7 Agreed Use: Office and storage of furniture and other household items. (See also Paragraph 6) 1.8 Insuring Party: Lessor is the"Insuring Party". The annual"Base Premium"Is$ (See also Paragraph 8) 1.9 Real Estate Brokers:(See also Paragraph 15 and 25) (a) Representation:The following real estate brokers (the "Brokers") and brokerage relationships exist in this transaction(check applicable boxes): ❑ represents Lessor exclusively("Lessor's Broker"); ❑ represents Lessee exclusively ("Lessee's Broker'); or . q�, PAGE 1 OF 17 `�Kie INITIALS INITIALS 02001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STG-17-N13E 49.' Arbltretlon of Disputes. An Addendum requiring the Arbitration of disputes between the Parties and/or Brokers arising out of this Lease❑ Is 0 Is not attached to this Lease. 50, Accessibility;Amedcarrs with Disabilities Act (a) The Premises: 0 have not undergone an inspection by a Certified Access Specialist (CASp). 0 have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises met all applicable construction-related accessibility standards pursuant to California Civil Code §56.51 at seq. 0 have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises did not meet all applicable construction-related accessibility standards pursuant to California Civil Code§55.51 at seq. (b) Since compliance with the Americans with Disabilities Act (ADA) is dependent upon Lessee's specific use of the Premises,Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee's use of the Premises requires modifications or additions to the Premises in order to be in ADA compliance,Lessee agrees to make any such necessary modifications and/or additions at Lessee's expense. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN,AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT,AT THE TIME THIS LEASE IS EXECUTED,THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT,OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO: 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO:THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES,THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY,THE CONDITION OF THE ROOF AND OPERATING SYSTEMS,AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE. WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA,CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED. The parties hereto executed this Lease at the pl ce and on the dates*ecified above r pact signatures x Executed�at: � p„"�� g-, 0 77yxecuted at; z C ,7 C� ' \On: 61UJ-s . �Q LD3 XOn:/O - �l By LESSOR: —�— By LESSEE: RJR Investment Group No. 2, a California William E. Cooper General Partnership Na ' tad: J Rosen ../Name Printed: Willie E. o er anaging en al Partner wale��r B6� By: By: Name Printed: Name Printed: Title: Title: Address: 73-134 Ajo Lane, Palm Desert, CA 92260 Address: 2417 Tuscany Heights Drive, Palm Springs, CA 92262 Telephone: (760)25D-8705 Telephone: (954)612-0860 Facsimile:(760)773-9803 Facsimile:( ) Email:j_orosen@parkinso_nsresource.ors Email:williamcooper39@msn.com Email: Email: _ Federal ID No. 95-3431258 Federal ID No. BROKER: BROKER: Baxley Properties, Inc. / PAGE 16 OF 17 iF INITIALS INITIALS ®2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STG-17.2113E OPTION(S) TO EXTEND STANDARD LEASE ADDENDUM Dated. --,September 20, 2013 By and Between (Lessor) RJR Tnvestment Group No. 2 By and Between (Lessee) William E. Cooper Address of Promises: 63-738 Orr Way, Palm springs, CA Paragraph 54 A. OPTION(S)TO EXTEND: 40 Lessor hereby grants to Lessee the option to extend the term of this Lease for 1 additional 12 month period(s)commencing when the prior term expires upon each and all of the following terns and conditions: (1) In order to exercise an option to extend,Lessee must give written notice of such election to Lessor and Lessor must receive the same at least 4 but not more than 6 months prior to the date that the option period would commence,time being of the essence. If proper notification of the exercise of an option is not given and/or received, such option shall automatically expire. Options(I there are more than one) may only be exercised consecutively. (0) The provisions of paragraph 39,including those relating to Lessee's Default set forth in paragraph 39.4 of this Lease, are conditions of this Option. (III) Except for the provisions of this Lease granting an option or options to extend the term, all of the terns and conditions of this Lease except where specifically modified by this option shall apply. (iv) This Option is personal to the original Lessee,and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and without the intention of thereafter assigning or subletting. (v) The monthly rent for each month of the option period shall be calculated as follows,using the method(s)indicated below: (Check Method(s)to be Used and Fill In Appropriately) ❑ 1. Cost of Living Adjuefinent(s)(COLA) a. On(Fill In COLA Dates): the Base Rent shall be adjusted by the change, If any, from the Base Month specriied below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for(select one): ❑CPI W(Urban Wage Earners and Clerical Workers)or❑CPI U(All Urban Consumers), for(Fill in Urban Area): All Items(1982-1984=100),herein referred to as"CPI". b. The monthly rent payable in accordance with paragraph A.l.a. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2 months prior to the month(s)speed in paragraph A.I.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to(select one): ❑the first month of the term of this Lease as set forth in paragraph 1.3("Base Month") PAGE 1 OF 3 INITIALS INITIALS 02000-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OE-3.8100E If At in Other"Base Month"): The sum so calculated shall constitute the new monthly rent hereunder, but in no event,shall any such new monthly rent be less than the rent payable . for the month immediately preceding the rent adjustment. c. In the event the compilation and/or publication of the CPI shall be transferred to any other governmental department or bureau or agency or shall be discontinued, then the index most nearly the some as the CPI shall be used to make such calculation. In the event that the Parties cannot agree on such alternative index, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then miss of said Association and the decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties. ❑ It. Market Rental Value Adjustments)(MRV) a. On (Fill in MRV Adjustment Date(s)) the Base Rent shall be adjusted to the"Market Rental Value"of the property as follows: 1) Four months prior to each Market Rental Value Adjustment Date described above,the Parties shall attempt to agree upon what the new MRV will be on the adjustment date. If agreement cannot be reached,within thirty days,then: (a) Lessor and Lessee shall immediately appoint a mutually acceptable appraiser or broker to establish the new MRV within the next 30 days. Any associated costs will be split equally between the Parties,or (b) Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV and submit such determination, in writing,to arbitration in accordance with the fallowing provisions: (i) Wlthin 15 days thereafter,Lessor and Lessee shall each select an ❑appraiser or❑broker("Consultant"-check one)of their choice to ad as an arbitrator. The two arbitrators so appointed shall immediately select a third mutually acceptable Consultant to act as a third arbitrator. (ip The 3 arbitrators shall within 30 days of the appointment of the third arbitrator reach a decision as to what the actual MRV for the Premises is, and whether Lessors or Lessee's submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding on the Parties. The submitted MRV which is determined to be the closest to the actual MRV shall thereafter be used by the Parties. _ (iii) If either of the Parties fails to appoint an arbitrator within the specified 15 days,the arbitrator timely appointed by one of them shall reach a decision on his or her own,and said decision shall be binding on the Parties. (iv) The entire cost of such arbitration shall be paid by the party whose submitted MRV is not selected,is.the one that Is NOT the closest to the actual MRV. 2) Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the month immediately preceding the rent adjustment. b. Upon the establishment of each New Market Rental Value: 1) the new MRV will become the new"Base Renr for the purpose of calculating any further Adjustments,and 2) the first month of each Market Rental Value term shall become the new "Base Month" for the purpose of calculating any further Adjustments. B Ill. Fixed Rental Adjustments)(FRA) The Base Rent shall be increased to the following amounts on the dates set forth below. On(Fill in FRA Adjustment Date(s)): The New Base Rent shall be: October 15,_ 2014 $2, 773.58 B. NOTICE: Unless specified otherwise herein, notice of any rental adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease. C. BROKER'S FEE: The Brokers shall be paid a Brokerage Fee for each adjustment specked above in accordance with paragraph 15 of the Lease or if i PAGE 2 OF 3 K� INITIALS INITIALS ®2000-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OE-341/00E appllcable,paragraph 9 of the Sublease. NOTICE: These forms are often modified to meet changing requirements of law and Industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 500 N Brand Blvd,Suite 900,Glendale,CA 91203. 10 Telephone No.(213)687-8777. Fax No.:(213)687-8616. i PAGE 3 OF 3 INITIALS INITIALS 02000-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OE4-8100E RIGHT OF FIRST REFUSAL TO PURCHASE STANDARD LEASE ADDENDUM Dated September 20, 2013 By and Between (Lessor) RJR Investment Group No. 2 (Lessee)William E. Cooper • 63-738 Orr Way, Palm Springs, A Address of Premises. v, p inas, c Paragraph 55 (a) Lessor shall not, at any time prior to the expiration of the tens of this Lease, or any extension thereof, ,all the Premises, or any • interest therein,without first giving written notice thereof to Lessee,which notice is hereinafter referred to as"Notice of Sale". (b) The Notice of Sale shall include the exact and complete terms of the proposed sale and shag have attached thereto a copy of the bona fide offer and counteroffer,if any,duly executed by both Lessor and the prospective purchaser. (c) For a period of 12 calendar days after receipt by Lessee of the Notice of Sale, Lessee shall have the right to give written notice to Lessor of Lessee's exercise of Lessee's right to purchase the Premises,the interest therein proposed to be sold,or the property of which the Premises are a part, on the same terms, price and conditions as set forth in the Notice of Sale. In the event that Lessor does not receive written notice of Lessee's exercise of the right herein granted within said 12 day period, there shall be a conclusive presumption that Lessee has elected NOT to exercise Lessee's right hereunder,and Lessor may complete the sale to the prospective purchaser,on the same terms set forth in the Notice of Sale. (d) In the event that Lessee declines to exercise its right of first refusal after receipt of the Notice of Sale, and,thereafter,Lessor and the prospective purchaser modify by more than 5%,(1)the sales price,or(11)the amount of down payment,or If there is a material change in any seller financing offered, of in the event that the sale is not consummated within 180 days of the date of the Notice of Sale,then Lessee's right of first refusal shall reapply to said transaction. (e) In the event that Lessee declines to exercise its right of first refusal after receipt of the Notice of Sale,and,thereafter,the proposed transfer or sale is not consummated,the Lessee's right of first refusal shall apply to any subsequent transaction. ff,however,said transfer or sale is,in fact,completed,then said right shall be extinguished and shall not apply to any subsequent transactions. (0 Notwithstanding the above,this right of first refusal Is Intended to apply only to voluntary transfers involving third party transferees. This right of first refusal shall not, therefore, apply: where the Premises are taken by eminent domain or sold under threat of condemnation, to infra-family or intraownership transfers,to transfers by Lessorto a trust created by Lessor,or,d Lessor is a trust,to transfers to a trust beneficiary. (g) NOTE: This fight of first refusal cannot be exercised: (1)during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii)during the period of time any Rent is unpaid(without regard to whether notice thereof is given Lessee), (lip) during the time Lessee is in Breach of this Lease, or(Iv) in the event that Lessee has been given 3 or more notices of Default, whether or not the Defaults are cured,during the 12 month period immediately preceding the exercise of the right of first refusal. PAGE 7 OF 2 INITIALS INITIALS 02000-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM FR-4-li NOTICE: These fonns are often modified to most changing requirements of law and Industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 500 N Brand Blvd,Suite 900,Glendale,CA 91203. Telephone No.(213)687-8777. Fax No.:(213)687-8616. . PAGE 2OF2 INITIALS INITIALS 02000-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM FR-"10BE SUPPLEMENT TO ADDENDUM TO AIR COMMERCIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE-GROSS DATED SEPTEMBER 20,2013 BY AND BETWEEN RJR INVESTMENT GROUP NO.2("LESSOR")AND WILLIAM E.COOPER("LESSEE")FOR THE PROPERTY KNOWN AS 63-738 ORR WAY,PALM SPRINGS,CA 56. In addition to the documents referenced in paragraph 51 of the ADDENDUM, Lessee acknowledges receipt of the documents listed below disclosing the results of environmental testing and remedial action performed at the subject Premises in June, 2012: 1. Expanded Fungal Report dated June 14,2012 prepared by LA Testing,Garden Grove,CA. 2. Expanded Fungal Report dated June 19,2012 prepared by LA Testing,Garden Grove,CA. 3. Scope Evaluation and Sampling Results dated June 21, 2012 prepared by G.E.E.S.P., Inc., Palm Springs,CA. 4. Scope Evaluation and Sampling Results dated June 26,2012 prepared by G.E.E.S.P., Inc,Palm Springs, CA. S. Expanded Fungal Report dated June 26,2012 prepared by LA Testing,Garden Grove,CA(order 331209149). 6. Expanded Fungal Report dated June 26,2012, prepared by LA Testing,Garden Grove, CA(order 331209150). Lessee is advised to have its own experts review the reports,explain to Lessee the significance of the test results and confirm to the Lessee that the Premises are in acceptable condition for Lessee's occupancy on October 1,2013. Lessor will provide access to Lessee's experts should Lessee desire to perform its own environmental tests. Lessee is to advise Lessor if Lessee suspects any mold or other environmental health issue relating to the subject Premises at any time during its occupancy of the Premises. INITIALS ALS IMTIALS ATTACHMENT 2 FINANCIAL INTEREST INFORMATION Please provide the names and contact information of every person(s) who has a financial interest in the MCCC: Name Email William Cooper WilliamCooper39@msn.com Address City, State, Zip 2417 Tuscany Heights Drive Palm Springs, CA 92262 Telephone Percentage Interest in MCCC (954) 612-0860 100% Name Email Address City, State, Zip Telephone Percentage Interest in MCCC • Name Email Address City, State, Zip Telephone Percentage Interest in MCCC Name Email Address City, State, Zip Telephone Percentage Interest in MCCC Insert behind the Attachment 2 Cover Sheet: ❑ Copy of current Driver License and/or California Identification Card for each individual who has a financial interest in the MCCC. Page 10 ATTACHMENT 3 • PRINCIPAL OFFICERS AND DIRECTORS INFORMATION Please provide the names and contact information of every principal officer, director and operator of the MCCC: Name Email William Cooper WilliamCooper39@msn.com Address City, State, Zip 2417 Tuscany Heights Drive Palm Springs, CA 92262 Telephone Title or Position (954) 612-0860 Founder/Principal Name Email Address City, State, Zip Telephone Title or Position • Name Email Address City, State, Zip Telephone Title or Position Name Email Address City, State, Zip Telephone Title or Position • Insert behind the Attachment 3 Cover Sheet: ❑ Copy of current Driver License and/or California Identification Card for each principal officer, director, and operator of the MCCC. Page 11 ATTACHMENT 4 OPERATIONS AND MANAGEMENT INFORMATION Please provide the names and contact information of every person who is managing or responsible for the MCCC activities: Name Email William Cooper WilliamCooper39Cmsn.com Address City, State, Zip 2417 Tuscany Heights Drive Palm Springs, CA 92262 Telephone Title or Position (954) 612-0860 Founder/Principal Name Email Address City, State, Zip Telephone Title or Position i Name Email Address City, State, Zip Telephone Title or Position Name Email Address City, State, Zip Telephone Title or Position • Insert behind the Attachment 4 Cover Sheet: ❑ Copy of current Driver License and/or California Identification Card for every person who is managing or responsible for the MCCC activities. Page 12 • Southern C's Cultivation Output Schedule Cultivation output will be supported by insuring the facility located at 63738 Orr Way,Palm Springs, CA is deployed in the following manner. Genetics and Vegetative Space and Capacities Overview The creation of a general vegetative space envelop and environment capable of providing a clean,aseptic growing environment for mother plants(genetic pool),clones(in clone domes),early vegetative state plants (in 2 quart pots),mid vegetative plants(in 5 gallon pots),and late vegetative state plants. In order to keep up production in the flower rooms(as proposed, see drawing representation)this are must be able to support the following plant material at a minimum of a seven week cycle(strain dependent as harvest cycles for flower plants run between 7 and nine weeks in duration). • 100 Clones per Two Week Period(optimal) • 100 Early Vegetative State Plants per Two Week Period (optimal) • 90 Mid Vegetative State Plants per Two Week Period(optimal) • 90 Late Vegetative State Plants per Two Week Period(optimal) To accommodate this production there will need to be: One(1)4' by 8' Vegetative Rack; lower level for Early Vegetative State Plants and upper level for Clones •Five(5)4' by 8' Vegetative Racks; lower level for Mid Vegetative State Plants and upper level for Late Vegetative Plants Flower Space and Capacities Overview There are two flower rooms in this design configuration (as proposed,see drawing representation),each supporting three (3)six(6)light systems with each room capable of providing cultivation space for up to 162 plants. The capacity of these flower rooms is set at 324 plants. At 1.75 pounds of dried cured flower resultant per light(2 rooms with 18 lights each),and based upon an average production cycle of 8 weeks the facility should yield approximately 378 pounds of dried cured flower. There are also tight trim(+/- 100 pounds annually) and fan leaf elements(+/-50 pounds)of the plant generated that have specific value but are at greatly reduced levels of production as noted. Other Plant Process(s)Space The balance of the buildings cultivation space shall generally accommodate an Reverse Osmosis Water System, storage racks for supplies and materials related to cultivation,work space for potting and managing the plant population, work space for trimming, drying, and curing the elements of the harvested plants, and other support space for general maintenance,housekeeping, and janitorial function. Process Overview From clone to harvest generally takes between 15 and 17 weeks From trimming to dry generally takes between 7 and 10 days •To properly cure required a minimum of 3 weeks, preferably longer fhe general cultivation cycle,clone to retail takes 20 to 23 weeks Senerally speaking, at this smaller level of production the Senior Grower as well as Grower will also be performing other related tasks such as trimming, drying oversight, and cure management functions in addition to the general plant tracking and management processes required. Water and Waste Water Outlook(Cultivation) Each flowering plant requires feeding three times weekly and generally consumes 1.25 gallons per feed. Each vegetative plant required feeding three times weekly and generally consumes 1.25 gallons per feed. Based upon 280 plants in a vegetative state(clones only require misting and minimal watering daily)and 324 plants in a flowering state at any given point in time,this yields 604 plants receiving 3.75 gallons of water per week or a consumption of approximately 2,300 gallons of water per week or just under 11,00 gallons of water per month. The clean runoff from watering generally adds approximately 400 gallons three times per week to the septic system noting this waste water is very clean, generally only including nutrient remnants that are organic and breakdown very easily in most any waste water treatment environment. This waste water burden should run approximately 5,500 gallons per month and only comes into the system three days a week at approximately 400 gallons over 3-4 hours time. • br/wp MMT 06-3-3015 ............. Cultivation Flow Process Detail — Clone Start to Harvest .......................... .... ............. Multiple Clones are Clone is transplanted to Late Veg Stage Plant Is harvested from specific -gal container and. o moved to a Flower strain Mother Plants begins Early Veg Stage Room I Clones are placed in Successful Early Veg Flowering Stage I domed containers for Stage Plant moves to Initiation for Similar 10 days to mature Mid Vag Stage Timeline Harvesters Mid Veg Stage Plant I Clones with developed transplanted to 5 gal Flowering Stage Plants root systems container moving.to are ready for Purge and for VegetativeLate Veg Stage Harvesting -- ------ --- [ i Plants not producing Late Veg Stage Plant is Plants sufficient root systems ready for relocation to are Harvestedll[' are destroyed Flower Room Day I to 14 Day 15 to 70 Day 71 to 130 Clones Started From Clones Mature to Vegetative Plants Specific Mother Plant 0 Vegetative Plant Stage Mature to Flowering Strain (early,mid,.Iate) Stage PRE-FILTRATION REVERSE OSMOSIS HOLDING TANK "CARBOY" SYSTEM (6'0, 2000 GAL CAPACITY) (DISTRIBUTION VESSEL) (SINGLE STAGE) 1 1 1 1 WATER METER CHECK VALVE DISTRIBUTE TO E F FLOWER/VEG PODS BACKFLOW ON MOUNTED PALLET JACK PROTECTION WATER SUPPLY "CARBOY" FLOWERNEG POD, TYP. FROM CITY (DISTRIBUTION VESSEL) 1 1 NUTRIENTS MIXED AND MANUAL WATER CIRCULATED WITH INSTALLED DISTRIBUTION USING RE-CIRCULATION PUMP FEEDING WAND RECYCLE OVERFLOW MOUNTED PALLET JACK FLOWER/VEG WASTE MATERIAL TABLE, TYP. (NON-THC) FOR MANUALLY DISTRIBUTEDtL CATCH BASIN FOR GENERAL USE ON FROM HOLDING TANK MATERIAL (NON-THC) LOCAL LANDSCAPE OVERFLOW SOUTHERN C's CULTIVATION AND DISPENSARY DISPOSAL POLICY AND • PROCEDURE Policy: Waste Disposal Effective Date: Deployment/Approval Review/Revision: 06-30-15 A Page 1 of 3 POLICY: Medical marijuana and medical marijuana-infused product waste, if any, will be stored, secured and managed in accordance with all applicable state and local statutes, regulation, ordinances and other requirements. Liquid waste from Southern C's businesses will be disposed of in compliance with all applicable federal, state and local laws, regulations, rules and other requirements. Chemical, dangerous or hazardous waste must be disposed of in a manner consistent with federal, state and local laws, regulation, rules or other requirements. As this is a Dispensary Operation only biodegradable cleaners will be used onsite and prior to the initiation of operations all relative MSD sheets will be sourced and provided to the relevant local entities. PROCEDURE: A. Waste will be made unusable and unrecognizable prior to leaving the Southern C's facility by one of the following methods: • 1. Grinding and incorporating the marijuana waste with non-consumable, solid wastes listed such that the resulting mixture is at least 50 percent non-marijuana waste including: • Paper waste • Plastic waste • Cardboard waste • Food waste • Grease or other compostable oil waste • Bokashi, or other compost activators; or • Other wastes approved by the Division that will render the medical marijuana and medical marijuana-infused product waste unusable and unrecognizable. • THC related products to be destroyed shall be mixed with at least 90 percent inert materials,treated with bleach to substantially diminish the remaining THC content to virtually 0. The Dispensary shall maintain a separate log of such destruction that will be in the sole care and keeping of the Facility Manager, logs to be kept onsite and in accordance with California and City of Palm Springs regulations. B. After waste is made unusable and unrecognizable,then the rendered waste shall be: 1. Disposed of at a solid waste site and disposal facility that has been approved by the Division. • 2. Deposited at a compost facility that has been approved by the applicable authority. 3. Composted on-side at a facility owned by Southern C's and operated in compliance with state statute and regulations. I SOUTHERN C's CULTIVATION AND DISPENSARY DISPOSAL POLICY AND • PROCEDURE Policy: Waste Disposal Effective Date: Deployment/Approval Review/Revision: 06-30-15 A Page 2 of 3 C. Southern C's will not dispose of medical marijuana and medical marijuana-infused product waste in an unsecured waste receptacle not in possession and control of Southern C's. 1. Southern C's will assure that any waste container outside the building will be locked. Any container outside the building will not contain medical marijuana waste. 2. Southern C's will assure that any medical marijuana waste container is in a secured receptacle inside the locked enclosure for pick up by a company authorized to pick up such waste. D. Southern C's will assure inventory tracking. 1. Southern C's will ensure its post-harvest waste materials are identified,weighed and tracked while on the premises of Southern C's until they have been disposed. 2. Southern C's will weigh any medical marijuana waste before it leaves the Southern C's premises. The scale used to weigh medical marijuana waste will be licensed in accordance with NRS 581. 3. Southern C's will maintain accurate and comprehensive records regarding waste material that accounts for, reconciles, and evidences all waste activity related to the disposal of medical marijuana. 4. Southern C's will maintain accurate and comprehensive records regarding any waste material produced through the trimming or pruning of a medical marijuana plant prior to harvest, which must include weighing and documenting all waste. Records of waste produced prior to harvest will be maintained on the premises of Southern C's. Waste produced prior or subsequent to harvest will be disposed of in accordance with this policy and made unusable and unrecognizable. E.The handling of and documentation of the disposal of unusable marijuana will be the responsibility of the Facility Manager. 1. The inventory control system will include each days beginning inventory, acquisitions, harvest, sales, disbursement, disposal of unusable marijuana, and ending inventory. 2. The inventory control system for each batch of marijuana cultivated will include the disposal of medical marijuana that is not usable, description of an reason for the marijuana being disposed of including, if applicable, the number of failed or other unusable plants, date of disposal, confirmation that the marijuana was rendered inert before disposal, method of disposal and name and Southern C's agent registration card number responsible for the disposal. F. Southern C's will maintain a contract with a California(Palm Springs) licensed waste disposal company authorized by the Division in the handling of waste disposal. 2 SOUTHERN C's CULTIVATION AND DISPENSARY DISPOSAL POLICY AND • PROCEDURE Policy: Waste Disposal Effective Date: Deployment/Approval Review/Revision: 06-30-15 A Page 3 of 3 1. The Facility Manager will monitor the current contract to be sure it is in date. 2. The Facility Manager will meet the waste disposal agent and validate their authority to remove marijuana waste that has been rendered unusable and unrecognizable. 3. The Facility Manager will document the waste pick up in the BioTrackTHC Inventory Control System. 4. Records will be maintained for five years in secured storage on premises and be available to the Division upon request. Who Should Know This Policy ® Dispensary Operation ®Security ®Reception/Intake ®Cannabis Consultant ® Packaging/Labeling ®Inventory ®Transportation • The following positions are responsible for the accuracy of the information contained in this document: ®General Manager ®Administration ®Legal Counsel ®Human Resources REFERENCE: Med Mar P&P MM Waste Disposal Dispensary.doc • 3 ATTACHMENT 5 EMPLOYEE INFORMATION Please provide the names and contact information of every employee, and a statement as to whether such person(s) has or have been convicted of a crime(s), the nature of the offense(s) and the sentence(s) received for such convictions(s): Name Title or Position Address City, State, Zip Offense Type (if any) Sentence Name Title or Position Address City, State, Zip • Offense Type (if any) Sentence Name Title or Position Address City, State, Zip Offense Type (if any) Sentence Name Title or Position Address City, State, Zip Offense Type (if any) Sentence . Insert behind the Attachment 5 Cover Sheet: ❑ Copy of current Driver License and/or California Identification Card for every Employee. Page 13 ATTACHMENT 6 • ARTICLES OF INCORPORATION Pursuant to State and local law, all medical cannabis cooperatives and collectives shall be non-profit, mutual-benefit corporations: Designed agent for service of process: Name Telephone William Cooper (954) 612-0860 Address City, State, Zip 63738 Orr Way Palm Springs, CA 92262 • Insert behind the Attachment 6 Cover Sheet ALL of the following: ❑ Copy of Articles of Incorporation filed with the California Secretary of State. ❑ Copy of filed California Secretary of State Statement of Information. ❑ Copy of Internal Revenue Service Letter of Determination you are an approved "tax-exempt' entity. ❑ Evidence of proof of lawful presence or residence in the City of Palm Springs. Examples of this may include a copy of the applicant's driver's license or a combination of other documents such as a utility bill, etc. • Page 14 3626201 • FILE® Secretary of stag Articles of Incorporation State of California of DEC 17 2013 Southern C's, Inc. Imo' The undersigned,being over the age of eighteen years,in order to form a 65m6yattoffTJ6fi te> provisions of the California Corporation Code,herby certifies as follows: I The name of the corporation,hereinafter referred to as the"Corporation," Is Southern Cs, Inc. 11 This corporation is a nonprofit Mutual Benefit Corporation organized under the Nonprofit Mutual Benefit Corporation Law.The purpose of this corporation is to engage in any lawful act or activity, other than credit union business, for which a corporation may be organized under such law. The specific purpose of this corporation is limited to providing a means for facilitating and coordinating transactions between members. The corporation cannot purchase from or sell to non-members. III • The name and address of the initial agent for service of process: William Cooper 63-738 Orr Way Palm Springs, CA 92262 IV The initial street address and mailing address of the corporation is 63-738 Orr Way, Palm Springs,CA 92262. V Notwithstanding any of the above statements of purposes and powers, this corporation shall not, except to an insubstantial degree, engage in any activities of exercise any powers that are not in furtherance of the specific purposes of this corporation. MICHAEL CINDRICH, INCORPORATOR • ATTACHMENT 7 • SECURITY PLAN All Applicants must submit a security plan. A security plan that includes the following: a. Security cameras that have been installed and maintained in good working condition, and used in an on-going manner with at least 240 continuous hours of digitally-recorded documentation in a format approved by the City Manager. Please provide the number of security cameras and list the areas covered by each. The areas to be covered by the security cameras include, but are not limited to (1) the storage areas (2) cultivation areas (3) all doors (4) all windows, and (5) any other areas as determined by the City Manager. b. A reliable and commercial alarm system that is operated and monitored by a lawfully-operating security company or alarm business. Please provide the name and contact information of the security camera monitoring company. C. Properly illuminated windows and doors that are in compliance with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etc. (Applicants may be required to secure the necessary approvals and permits.) • Insert behind the Attachment 7 Cover Sheet ALL of the following: ❑ Security Plan that meets requirements. • ❑ Valid current agreement with licensed alarm monitoring company. Page 15 CONC CURB I'. �. [. I t I ( E1 PLANTER TfRA5P I' U j MECF•4. if �ti:• i MI I ;t n j ' I FLOWER I i o $� FLOWER RM 2 / MWOISTDr r L-----' i \ El \ i VEG RI i pi \ 'r', �GROW�REA — \ U-OGGIIPANCY SP�MKLE_RED j I iN —' ill '1 16 1 � 1 ,, i ffbn 1 i EtY 1j r 1 u`•I .wu.an::. _ _ _ �,TM"'c �e� ...g 41� 41°'°O° SIDE �I f__e it I u, i ~�tt u• ��°� ice^` j Ei, It i /w..rry� e...Di�RIb1S -i `,1 A.C.DRIP (E) OFFIGE SUITE 80l�"s.f. �,.�d EXSTING 6-O-CJJ 4CY (E)LL�F GE (E)=RINKLERE 1 { I j o yL SIDE ACC—ES ILE RGIJTE — •- \eaa eamxicnwu -:1 J I: Q nI Z� U • SPACE �il + '1 CMU SCREEN WALL v. ATTACHMENT 8 • SITE PHOTOGRAPHS All Applicants must submit photographs of the existing site that show the front, back and sides of the building, lighting, parking, etc. • Insert behind the Attachment 8 Cover Sheet ALL of the following: ❑ Photos of front of building. ❑ Photos of rear of building. ❑ Photos of sides of building. ❑ Photos of exterior lighting. • ❑ Photos of parking. Page 16 ATTACHMENT 9 • SITE AND FLOOR PLANS All Applicants must submit on one sheet of white paper no less than 11 X 17 inches and no larger than 24 X 36 inches an accurate detailed site plan and floor plan of the premises that clearly labels all the uses of areas on the premises, including: 1) doors; 2) entrances; 3) windows; 4) use of each area including 5) storage area(s), 6) cultivation area(s), 7) exterior lighting fixtures, 8) security cameras, 9) restrooms, 10) signage and 11) parking (including other tenant spaces if the MCCC is proposed for a multi-tenant building site). The project shall be required to provide secure bicycle parking facilities on site for use by residents and commerciallretail patrons and owners. Location and design shall be approved by the Director of Planning. • Insert behind the Attachment 9 Cover Sheet the following: ❑ Site Plan. ❑ Floor Plan. • ❑ Bicycle parking facilities. Page 17 F— — — — — — — — — — — — — — — — — aw U. cc L. ---------- LU :5 W LL Z 0 o U 0 L 0 co Z m CC x x 0. LLI lF Z2 EXISTIW5 63138 ORR WAY --- - -- ---- EXISTIWS ORR WAY__-_-_-______-__ --- ----- --------------- -- ------- -- I MM .-I- ATTACHMENT 10 • ADDITIONAL MATERIALS List and insert behind the Attachment 10 Cover Sheet any additional materials you would like to submit with your application to be considered by the City Council and City Staff. List of Additional Materials: -Letter from desk of Attorney Matthew W. Shapiro, Esq. • • Page 18 DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED CALIFORNIA STATE BOARD OF EQUALIZATION _ SELLER'S PERMIT Pm F OF ACCOUNTNUMBER o4/15/2014 SR EHC 102-555376 NOTICE TO PERMITTEE: You are required to obey aN SOUTHERN C'S, INC. Federal and State laws that regulate or control your 63-738 ORR WAY business. This Permit does PALM SPRINGS, CA 92262 not a otherwiss e.e. you to do L J IS HEREBY AUTHORIZED PURSUANT TO SALES AND USETAX 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 AN D 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 Not valid atany otheraddress OWED BY THE NEW OPERATOR OFTHE BUSINESS. 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 otter the following sources of help: • Visiting our website at www.boo.ca.gov • Visiting afield 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 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 tour 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 surrenderthis 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 i1 you are unable to resolve an Issue with the BOE, please contact the Taxpayers' Rights Advocate office for help by calling toll-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 EQUALIZATION Sales and Use Tax Department N State of California 4 Secretary of State Statement of Information (Domestic Nonprofit, Credit Union and Consumer Cooperative Corporations) Filing Fee: $20.00. If this is an amendment, see instructions. IMPORTANT—READ INSTRUCTIONS BEFORE COMPLETING THIS FORM 1. CORPORATE NAME Southern Cs, Inc. 2. CALIFORNIA CORPORATE NUMBERC.3626201 This Space for Filing Use Only Complete Principal Office Address (Do not abbreviate the name of the city.Item 3 cannot bee P.O.Box.) 3. STREET ADDRESS OF PRINCIPAL OFFICE IN CALIFORNIA,IF ANY CITY STATE ZIP CODE 63-738 Orr Way Palm Springs CA 92262 4. MAILING ADDRESS OF THE CORPORATION CITY STATE ZIP CODE 3-738 Orr Way Palm Springs CA 92262 Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific officer may be added;however,the preprinted titles on this form must not be altered.) 5. CHIEF EXECUTIVE OFFICER/ ADDRESS CITY STATE ZIP CODE William Cooper 63-738 Orr Way Palm Springs CA 92262 S. SECRETARY ADDRESS CITY STATE ZIP CODE William Cooper 63-738 Orr Way Palm Springs CA 92262 7. CHIEF FINANCIAL OFFICER/ ADDRESS CITY STATE ZIP CODE William Cooper 63-738 Orr Way Palm Springs CA 92262 Agent for Service of Process If the agent is an individual,the agent must reside in California and Item 9 must be completed With a California street address, a P.O. Box address is not acceptable. If the agent is another corporation, the agent must have on file with the California Secretary of State a certificate pursuant to California Corporations Code section 1505 and Item 9 must be left blank a. NAME OF AGENT FOR SERVICE OF PROCESS William Cooper 9. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA,IF AN INDIVIDUAL CITY STATE ZIP CODE 63-738 Orr Way Palm Springs CA 92262 Common Interest Developments 10. Check here if the corporation is an association formed to manage a common interest development under the DavisStiding Common Interest Development Act, (California Civil Code section 4000, et seq.) or under the Commercial and Industrial Common Interest Development[ Act, (California Civil Code section 6500,at seq.). The corporation must file a Statement by Common Interest Development Association(Form SI-CID)as required by California Civil Code sections 5405(a)and 6760(a). Please see instructions on the reverse side of this form. 11. THE INFORMATION CONTAINED HEREIN IS TRUE AND CORRECT. /17/2015 Matthew Shapiro Attorney - DATE TYPEIPRINT NAME OF PERSON COMPLETING FORM TITLE SIGNATURE 51 _100(REV 01/2014) APPROVED BY SECRETARY OF STATE State of California LN Secretary of State Statement of Information F877882 (Domestic Nonprofit, Credit Union and Consumer Cooperative Corporations) FILED Filing Fee: $20.00. If this Is an amendment, see instructions. IMPORTANT-READ INSTRUCTIONS BEFORE COMPLETING THIS FORM In the office of the Secretary of State of the State of California 1. CORPORATE NAME SOUTHERN C'S, INC. OCT-17 2015 2. CALIFORNIA CORPORATE NUMBER C3626201 This Space for Filing Use Only Complete Principal Office Address (Do not abbreviate the name of the city. Item 3 cannot be a P.O. Box.) 3. STREET ADDRESS OF PRINCIPAL OFFICE IN CALIFORNIA,IF ANY CITY STATE ZIP CODE 63-738 ORR WAY, PALM SPRINGS, CA 92262 4. MAILING ADDRESS OF THE CORPORATION CITY STATE ZIP CODE Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific officer may be added; however,the preprinted titles on this form must not be altered.) 5. CHIEF EXECUTIVE OFFICER/ ADDRESS CITY STATE ZIP CODE WILLIAM COOPER 63-738ORR WAY, PALM SPRINGS, CA 92262 6. SECRETARY ADDRESS CITY STATE ZIPCODE WILLIAM COOPER 63-738ORR WAY, PALM SPRINGS,CA 92262 7. CHIEF FINANCIAL OFFICER/ ADDRESS CITY STATE ZIPCODE WILLIAM COOPER 63-738ORR WAY, PALM SPRINGS, CA 92262 Agent for Service of Process If the agent is an individual,the agent must reside in California and Item 9 must be completed with a California street address, a P.O. Box address is not acceptable. If the agent is another corporation, the agent must have on file with the California Secretary of State a certificate pursuant to California Corporations Code section 1505 and Item 9 must be left blank. 6. NAME OF AGENT FOR SERVICE OF PROCESS WILLIAM COOPER 9. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA,IF AN INDIVIDUAL CITY STATE ZIP CODE 63.738 ORR WAY, PALM SPRINGS, CA 92262 Common Interest Developments 10.❑ Check here if the corporation is an association formed to manage a common interest development under the Davis-Stirling Common Interest Development Ad, (California Civil Code section 4000, at seq.) or under the Commercial and Industrial Common Interest Development Act, (California Civil Code section 6500,et seq.). The corporation must file a Statement by Common Interest Development Association(Form SI-CID)as required by California Civil Code sections 5405(a)and 6760(a). Please see instructions on the reverse side of this form. 11, THE INFORMATION CONTAINED HEREIN IS TRUE AND CORRECT. 10/17/2015 MATTHEW SHAPIRO ATTORNEY DATE TYPEIPRINT NAME OF PERSON COMPLETING FORM TITLE SIGNATURE SI-100(REV 0112014) APPROVED BY SECRETARY OF STATE 63-738 �- �� - . 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