City Council

6.2 Consideration of Ordinance No. 957 to authorize a\nDevelopment Agreement By and Between the City of Bell\nGardens, Frank Aguirre Jr., and Eastern Ave Holdings, LLC,\nRelating to the Property Located at 7821 Eastern Avenue in\nthe City of Bell Gardens\nRECOMMENDATION: It is staff’s recommendation that the City\nCouncil waive full reading and introduce Ordinance No. 957, by title\nonly, to approve the proposed Development Agreement No. 2023-\n073 for a cannabis retail storefront at 7821 Eastern Avenue.\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 not in compliance status with the DA, the City may\nmodify or terminate the DA.\nAdoption of Ordinance No. 957 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 and that the City\nCouncil waive full reading and introduce Ordinance No. 957, by title\nonly.\nFISCAL IMPACT: If Ordinance No. 957 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 as defined\nin the DA, once operations have commenced (Quarterly Community\nBenefit). Pursuant to the Development Agreement Procedures and DA\nterms, eighty percent (80%) of these funds would be dedicated to the\nCity’s youth and recreational programming and the City’s housing\nprograms. The DA also provides additional community benefits for\nthe City’s youth, as described in greater detail below (Youth-Specific\nBenefits):\n1. $5,000 annual contribution to the City for the purpose of\nfunding academic scholarships for City’s youth residents;\n2. $10,000 annual contribution to the City’s Recreation and\nCommunity Services Department to fund youth sports\nprogramming; and\n3. $10,000 annual contribution to the City’s Recreation and\nCommunity Services Department for the purpose of\nsubsidizing the cost of youth swimming lessons and other\nyouth programming costs at the John Anson Ford Park\nRegional Aquatics Center, or if not in operation, for funding\nyouth sports programming.\nThe mechanisms of distribution to be determined by the City to\nensure their equitable distribution.\nUnder the DA, the Applicant would also be responsible for the cost of\nstaff time 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. 957\nExhibit 2 - Development Agreement No. 2023-073\nExhibit 3 - April 16, 2025, Planning Commission Staff Report and\nExhibits\nExhibit 4 - Resolution #PC 2025-10\nExhibit 5 - Resolution #PC 2025-11\nExhibit 6 - 500, 600, 1,500-foot Radius Maps\nExhibit 7- Public Hearing Notice