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\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 No. 2024-048\nfor 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, who would\nbe the licensee, and the local community addressing concerns and\nensuring the retail storefront aligns with community values and\ninterests by requiring the Applicant to submit evidence of compliance\nwith all terms and conditions to the City on an annual basis. Balance\nwould be promoted with the operational flexibility built into the DA\naddressing unforeseen challenges or changes in circumstances,\nallowing for adjustments as needed through City Council approval.\nCompliance with the DA and its terms and conditions will be subject\nto an annual review, whereby if the City determines that the\nApplicant is in noncompliance status with the DA, the City may\nmodify or terminate the 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,\nwhich would permit a cannabis retail use at the Subject Site for an\ninitial five (5)-year term, subject to an option to extend the term for\nan additional five (5) years, for a total 10-year term.\nFISCAL IMPACT: If Ordinance No. 952 is approved, the Applicant\nwould be required to make an up-front payment of $100,000 upon\nthe effective 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\n(Quarterly Community Benefit). Pursuant to the DA terms, 80 percent\n(80%) of these funds would be dedicated to the City’s youth and\nrecreational programming and the City’s housing programs. Under\nthe DA, the Applicant would also be responsible for the cost of staff\ntime spent on the negotiation and preparation of a development\nagreement and monitoring activities to ensure compliance with the\nDA, CUP, BGMC, and other applicable laws and regulations.\nATTACHMENTS:\nExhibit 1 - Ordinance No. 952 (Development Agreement No. 2024-048)\nExhibit 2 - Development Agreement No. 2024-048\nExhibit 3 - March 10, 2025, City Council Agenda Report and Exhibits\nExhibit 4 - February 19, 2025 PC 2024-048 Staff Report and Exhibits