City Council

6.1 Consideration of Ordinance No. 952 to Authorize a\nDevelopment Agreement by and between The City of Bell\nGardens, Flora Hospitality Group, LLC and James N. Tate III\nTrust Relating to the Property located at 6638 Eastern Avenue\nin the City of Bell Gardens (MECCA)\nRECOMMENDATION: It is staff’s recommendation that the City\nCouncil waive full reading and introduce Ordinance No. 952, by title\nonly, to approve the proposed Development Agreement (DA) No.\n2024-048 for a cannabis retail storefront at 6638 Eastern Avenue.\nENVIRONMENTAL REVIEW: In accordance with the California\nEnvironmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.)\nand CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.),\nOrdinance No. 952 has been determined to be categorically exempt\npursuant to CEQA Guidelines Section 15301 (Existing Facilities) and\nSection 15061(b)(3) (Common Sense Exemption). The Project would\nauthorize a cannabis retail use within an already existing commercial\nstructure, inclusive of tenant improvements, to support a new\ncommercial use for up to 10 years. No additional floor area is\nproposed. Additionally, a cannabis retail use has similar impacts as\nother typical commercial uses and would be subject to the same or\nmore restrictive development and operating standards as other\ncommercial uses. This Project would comply with building, energy\nefficiency, and land use and development standard provisions.\nTherefore, it can be seen with certainty that there is no possibility\nthat the activity in question may have a significant effect on the\nenvironment.\nCONCLUSION: The DA is designed to facilitate ongoing\ncommunication and collaboration between the Applicant and the\nlocal community, addressing concerns and ensuring the retail\nstorefront aligns with community values and interests by requiring\nthe Applicant to submit evidence of compliance with all terms and\nconditions to the City on an annual basis. Balance would be\npromoted with the operational flexibility built into the DA addressing\nunforeseen challenges or changes in circumstances, allowing for\nadjustments as needed through City Council approval. Compliance\nwith the DA and its terms and conditions will be subject to an annual\nreview, whereby if the City determines that the Applicant is in\nnoncompliance status with the DA, the City may modify or terminate\nthe DA.\nAdoption of Ordinance No. 952 and the execution of the proposed DA\nwould ensure vested development rights in exchange for community\nbenefits dedicated to revenue for youth programs, housing and\nhomelessness issues, and other discretionary items. Therefore, staff\nrecommends approval of the proposed development agreement and\nadoption of Ordinance No. 952, which would permit a cannabis retail\nuse at the Subject Site for an initial five (5)-year term, subject to an\noption to extend the term for an additional five (5) years, for a total\n10-year term.\nFISCAL IMPACT: If Ordinance No. 952 is adopted, the Applicant would\nbe required to make an up-front payment of $100,000 upon the\neffective date of the DA and renew the contribution annually\nfollowing the execution of the DA, every January (Annual Community\nBenefit). The Applicant would also be required to make quarterly\ncontributions equal to seven percent (7%) of gross receipts (Quarterly\nCommunity Benefit). Pursuant to the DA terms, 80% of these funds\nwould be dedicated to the City’s youth and recreational\nprogramming and the City’s housing programs. Under the DA, the\nApplicant would also be responsible for the cost of staff time spent on\nthe negotiation and preparation of a development agreement and\nmonitoring activities to ensure compliance with the DA, CUP, BGMC,\nand other applicable laws and regulations.\nATTACHMENTS:\nExhibit 1- Ordinance No. 952 - DA 2024-048.docx\nExhibit 2 -February 19 2025 PC 2024-048 Staff Report and Exhibits.pdf\nExhibit 3 - Signed Resolution PC 2025-02.pdf\nExhibit 4 - Signed Resolution PC 2025-03.pdf\nExhibit 5 -Proposed Development Agreement No. 2024-048.docx\nExhibit 6 - 500 600 and 1500 Radius Maps .docx\nExhibit 7- Public Hearing Notice pdf.pdf