City Council

11.4 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 adopt Ordinance No. 952 to approve\nthe proposed Development Agreement (DA) No. 2024-048 for a\ncannabis 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).\nCONCLUSION: If approved, Ordinance No. 952 would become\neffective 30 calendar days after approval, in addition the operator\nand property owner must execute the agreement, and the operator\nmust provide proof of insurance and submit the initial Annual\nCommunity Benefits payment of One Hundred Thousand Dollars\n($100,000) to effectuate the benefits conferred by the development\nagreement withing 60 calendar days. The development agreement\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 that the City Council conduct a second reading of\nOrdinance No. 952 and adopt the ordinance, which would permit a\ncannabis retail use at the Subject Site for an initial five (5)-year term,\nsubject to an option to extend the term for an additional five (5)\nyears, 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 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, eighty percent (80%)\nof 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 - Mar 24, 2025, City Council Agenda Report and Exhibits\nExhibit 4 - February 19, 2025, Planning Commission 2024-048 Staff\nReport and Exhibits