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HomeMy WebLinkAboutC-20-51 The Bakery CA LLC RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-51 Submitted On: Dec 04, 2020 Applicant Robert DiVito info@e7ca.com Applicant (Entity) Name: The Bakery CA LLC DBA: -- Physical Address: 645 West 9th Street, #110-631 City: Los Angeles State: CA Zip Code: 90015 Primary Contact Same as Above? Yes Primary Contact Name: Robert M. DiVito Primary Contact Title: Founder and CEO Primary Contact Phone: Primary Contact Email: robert@e7ca.com HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: Yes Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Retail (Storefront) Business Formation Documentation: Limited Liability Company Property Owner Name: James Minas Proposed Location Address: 1223 N Linden Ave City: Fresno State: CA Zip Code: 93728 Property Owner Phone: (559) 264 9000 Property Owner Email:Assessor's Parcel Number (APN): 451-26-231 Proposed Location Square Footage: Supporting Information Application Certification 2500 List all fictitious business names the applicant is operating under including the address where each business is located: E7 Fort Bragg LLC (342 N Main Street, Fort Bragg CA); Jason Lilly LLC dba Kannabis Works (2016 S Susan St, Santa Ana CA); E7 Rio Dell LLC (281 Wildwood Ave, Rio Dell CA); Element 7 South San Francisco LLC (337 Littlefield Ave, South San Francisco CA). NB: Licenses for Rio Dell and SSF issued by BCC. Businesses will be operational in December 2020. Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? Yes If so, please list and explain: Element 7 are under application in a number of other cities in California including Marina, Firebaugh, Walnut Creek, Willows, Dunsmuir, Willits, Mendota, King City, Oakland, Wildomar City, Crescent City, Salinas, Atwater, San Luis Obispo, Napa City, Chula Vista, Contra Costa County, Los Angeles, Lemon Grove, Port Hueneme, Suisun City, San Francisco, Fairfax, Riverside County, and Ukiah. Applications are at varying stages of review and approval and financing is in place for all contemplated operations. I hereby certify, under penalty of perjury, on behalf of myself and all owners, managers and supervisors identified in this application that the statements and information furnished in this application and the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued. In addition, I understand that the filing of this application grants the City of Fresno permission to reproduce submitted materials for distribution to staff, Commission, Board and City Council Members, and other Agencies to process the application. Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits, and photographs for any purpose unrelated to the City's consideration of this application. Furthermore, by submitting this application, I understand and agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of Fresno Municipal Code and State law. Under penalty of perjury, I hereby declare that the information contained in within and submitted with the application is true, complete, and accurate. Iunderstand that a misrepresentation of the facts is cause for rejection of this application, denial of a permit or revocation of an issued permit. A denial or revocation on these grounds shall not be appealable (FMC 9-3319(d)). Name and Digital Signature true Title Founder and CEO Please note: the issuance of a permit will be determined based on the application you submit and any major changes to your business or proposal (i.e. ownership, location, etc.) after your application is submitted may result in a denial. All applications submitted are considered public documents for Public Records Act request purposes. For details about the information required as part of the application process, see the Application Procedures & Guidelines, City of Fresno Municipal Code Article 33 and any additional requirements to complete the application process. All documents can be found online via this link. For questions please contact the City Manager’s Office at 559.621.5555. RETAIL OPERATIONS EXCELLENCE UNMATCHED DESIGN STANDARDS AND Northern California's Premier Cannabis Dispensary "Stunning interior design. Congratulations on launching The Bakery by Element 7 in Fort Bragg. We couldn't be prouder to have Element 7 in our City." Ms. Tabatha Miller, City Manager, Fort Bragg "Some of the best work I have seen in my 22 year career as a building and fire safety inspector." Mr. Steve Orsi, Fire Chief THE BAKERY BY ELEMENT 7 FRESNO THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1. BUSINESS PLAN Introduction The Bakery by Element 7 is seeking approval to build and operate a premium service cannabis dispensary at 1223 N Linden Ave, Fresno (also known as 741 E Olive Avenue, Fresno and referred to in this document as the one and same address, and mailing address) and believes this is the optimal location in Fresno to compliantly serve the estimated 75,000 cannabis consumers living in Fresno City, Fresno County, and visiting Fresno. Over the last 18 months, Element 7 has had numerous discussions with City Staff, local residents, business owners, stakeholders, and other persons in Fresno. Our efforts to educate the City date back to 2018 when Element 7 delivered an educational packet to the Planning Department, attempting to demonstrate what compliant operations could look like in the City. All of these conversations led us to E Olive Avenue which we hope will serve as The Bakery by Element 7’s home in the City. We have educated, re-educated, engaged, and listened to many of the local businesses, gathering encouragement through these discussions and Letters of Support from over a dozen local businesses (as shown on the map below). THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Our selected property has off-street parking for over 40 vehicles and is easily accessed from all major parts of Fresno. Our building presents no traffic, noise, odor, parking, lighting, security, safety, or other neighborhood issues. There are no sensitive uses within 600 feet and entering and exiting the facility presents no hazards for pedestrians or vehicles. The Bakery by Element 7’s facility makes cannabis accessible to the residents of Fresno in a location that is safe, convenient, and secure. We have provided this commentary as the site and location provide much of the context for our Business Plan and the day-to-day operations that will take place at the facility. 1.1 Owner Qualifications The Bakery by Element 7 Fresno is owned by 15 local Fresno City and Fresno County owners who collectively bring a robust mix of local community understanding, business leadership and management experience, traditional and cannabis retail operations, banking, and other skillsets in the non-profit development, logistics, recruitment, education, and talent development. As the Founder and CEO, Robert has full day to day management control of the business to allow the organization to function and effectively operate as needed. The Bakery by Element 7 brings together a team of highly experienced individuals with a broad base of retail experience, both in traditional ‘big box’ retail, and in cannabis retail which has its own set of unique nuances and challenges. Our executive leadership team has over 50 years of cannabis and retail management experience. Founded by Robert DiVito in 2018, Element 7 has a mission of being ‘California’s Most Local Cannabis Retailer’ and The Bakery by Element 7 is our premium service offer, yet still delivers on the same promise as Element 7 – exceptional products at great prices. We will achieve our business mission by relentlessly focusing on building a team of industry professionals that understand both traditional and cannabis retail, identifying local partners in each municipality that have local retail experience, creating a back- end platform driven by technology that allows us to scale operations across multiple stores for efficiency, and further building a culture that creates trust, respect, new business solutions, and collective well-being. Element 7’s model has been built by finding the best talent in the cannabis industry, supplementing that with proven retail talent and experience from traditional retail. Our architects, contractors, vendors, and technology suppliers mostly come from traditional retail backgrounds, working with companies like Samsung, AT&T, Verizon, Starbucks, Coffee Bean and Tea Leaf, and Kohl’s. These partners bring the understanding, discipline and models required to break ‘traditional cannabis thinking’ that we think often holds back the industry from developing professionally or at a pace required to meet changing and evolving consumer need-states. If awarded a permit in Fresno, The Bakery by Element 7 will leverage the experience, THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Element 7 is proud of the local team of owners it has assembled and will work diligently, if awarded a permit, to leverage the relationships, skillsets, local understanding, and partnerships that these owners can create in Fresno. While many of the local owners will be relatively ‘passive’ in the day to day operations of the business, each and every one of them has spent decades building their reputation in the Fresno community, and they are eager to be actively involved in understanding how the business operates, how cannabis can be used as a positive force in the community, and what they can do to advance both Element 7 and the Fresno community as one. Likewise, Element 7 makes a commitment to each and every owner to be an outstanding business partner, and to do everything it can as a business to advance their name and reputation, through good governance and outstanding business principles in each and every interaction we have with the constituents, community, and City of Fresno. Additional information is included on the next pages for the major two owners (DiVito and Malatesta) and employees / consultants that have some input on the retail strategy within the business. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. hours of classroom-based training, this training program will ensure Element 7 staff are better trained than any other cannabis staff in the industry. Our 2nd dispensary, The Bakery by Element 7, opened in Fort Bragg in November 2020. Element 7 initially applied for this permit in January 2020, was approved in May 2020, and commenced construction in September 2020, demonstrating our ability to win permits and become operational. The dispensary opened November 18, 2020. Site works were completed on October 29 after 6 weeks of construction and the store opened weeks later. 100% of the staff hired for The Bakery by Element 7 Fort Bragg are local to the City which is something we are incredibly proud of. We are in the process of unionizing the store under the UFCW. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Strategic Advisors Element 7's Strategic Advisors comprise some of the cannabis industries biggest names, leaders and experts. The Advisers meet four (4) times annually to review the business plan, operations, financial performance and specific benchmarks set for compliance, control, product quality, systems and processes. Our Advisors include one of North America's leading marijuana law reform advocates, a former Lieutenant Colonel in the US Army, one of North America’s leading R&D specialists, a pharmacist, and a fire safety expert that has over 3 decades of fire safety experience, and experts in climate change, HVAC and odor control, and waste management. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Testimonials Here are just some of the things our colleagues and respected peers in the industry say about us: “Element 7 are the real partner for social justice and reform in an industry where many have taken advantage of minority communities. In the Los Angeles Social Equity Program, no other cannabis company came close to offering fair terms like the team at Element 7 offered equity candidates.” Bo Money, Founder and Director, NDICA “Element 7 have been a strong supporter of UCLA and our Cannabis Research Initiative since it was formed in 2018. I not only value their support for advancing the cannabis industry and cause, but also their friendship, integrity, and trust.” Dr. Jeff Chen, Founder and Lead, UCLA Cannabis Research Initiative THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. “Element 7 are a true advocate for social justice and change in an industry that needs more honesty and diversity.” Scheril Murray-Powell, Cannabis Advocate, Activist, and Attorney “Element 7 have been a great partner of Diverse Real Estate Solutions, a multi-billion dollar cannabis property and investment group. We value their hard work, commitment to doing things right, and ethics.” Charlie Copelan, Partner, Diverse Real Estate Solutions “Element 7 are a company with a strong vision, focused on understanding the customer and building a long-term sustainable cannabis business in a nascent and emerging California industry.” Jonathan Jenkins, Co-Founder and Chief Operating Officer, Weedmaps “Element 7 bring a level of professionalism and integrity to the cannabis industry. They are focused on doing things right and building a business that can stand the test of compliance and continued regulation.” Bob Hoban, Founder, Hoban Law Group Element 7 brings diverse retail experience to Fresno - an understanding of the California cannabis retail landscape, scaled operations, vertical integration to support price and value initiatives, and traditional 'big box' and 'big brand' retail knowledge. Key management including Robert DiVito, Mark Malatesta, Neil Demers, Nicholas Jack, and Josh Black have over 50 years of cannabis and traditional retail experience between them, having worked at and with companies including Kohl's, Dell, Black & Decker, PepsiCo, Quaker Oats, Coca-Cola, Target, Walmart, Sam’s Club, Macy’s, Guess, and Levi. Element 7's business model is driven by efficiency, scale and having a very localized footprint. Element 7's promise is 'exceptional experiences at everyday prices' and The Bakery by Element 7 delivers a premium service level in a boutique environment that is welcoming and affordable. Our matrix management approach allows us to stay agile and nimble, ensuring that front- line staff has the expertise, authority, and direction to work efficiently while adhering to a rigid set of policies and practices that standardize our commitment to excellence in serving our customers. 1.2. Budgets for Construction, Operations, Maintenance, & Other Costs Site Work Construction Costs The Bakery by Element 7 has identified property for lease at 741 E Olive Avenue, Fresno as an optimal location for retail operations. The property is currently vacant (former Starbucks property) and presents 2,500 square feet of operational space for an integrated cannabis dispensary. Site costs are presented within this section of the application – all other costs including operational, staffing and labor, and other relevant day to day costs once the business are open, are included in section 1.4 of this application for clarity purposes. THE BAKERY: BUSINESS PLAN 1.4 Five-Year Pro-Forma THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1. Assist employees with processing orders and ensuring that they are properly designated/assigned. 2. Update the track-and-trace system, as necessary. 3. Receive shipments with the assistance of another employee. 4. Manage all City and State reporting and compliance measures. 5. Review staff performance and implement training programs where deficiencies are in place. 6. Liaise with Element 7 head office teams across critical business operations. 7. Meet with City officials, partners, and key stakeholders to continuously improve operations and advance The Bakery by Element 7’s footprint in the local community. Salespersons will be responsible for providing excellent customer service and processing orders through the day in full City and State compliance. Each person is responsible for keeping their sales counter clean and orderly. Closing Procedures: Upon the closure of business each day: • The Manager will lock all doors. • The Manager and Inventory Specialist will reconcile the track-and-trace system and cash. • The Manager will ensure that all cannabis and cannabis products are securely stored. • The facility be dusted, sweep, mopped, etc. as needed. • The Manager will ensure that all doors, safes, and vaults are locked and secured. • All surfaces will be cleaned and wiped. All equipment will be turned off (is necessary) and cleaned. • All non-cannabis trash will be taken to the dumpster and sorted for recycling. • All non-security lights will be shut off. • The Manager will activate the alarm and lock and exit the building. • The Manager will be accompanied by a security guard when locking and exiting the retail store. The security guard will escort the General Manager to their car. 1.6 Daily Operations Our systems, processes, and operational policies have been developed using best- practices from our operational dispensaries in Santa Ana and Fort Bragg. Employees are extensively educated on all of these policies and procedures prior to starting employment at The Bakery by Element 7 (minimum of 80 hours training), and then on an ongoing annual basis (yearly refresher training). In addition, the General Manager and Shift Managers will work in an Element 7 dispensary for 2-4 weeks prior to commencing operations at The Bakery by Element 7 Fresno – this on-the-job training program ensures that The Bakery by Element 7 is able to deliver consistent standards and processes across all of its dispensaries in California. Finally, Element 7’s Chief Compliance Officer, Amber Norwood, has developed a Quarterly Audit Scorecard that scores the retail operations on over 80 checklist items. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. The Bakery by Element 7 Quarterly Audit Scorecard Stores are scored using a point and traffic-light scorecard with mandatory and minimum KPI’s that must be met. This process ensures that operations are compliant, consistent, and controlled. The image below demonstrates some of the items on the Quarterly Audit Scorecard and includes access controls, operating hours, sale and return of cannabis goods, packaging and labelling, inventory management, storage, security measures, records management and retention, waste, transfers, and other day to day operational procedures. If an audit is performed and there are either failures or significant ‘misses’ on performance standards, a range of ‘triggers’ may be issued including training, management changes, and advisory notices to City and State regulatory bodies. The Bakery by Element 7 desires to be the most taxed, trusted, tested, controlled, and compliant partner that the City of Fresno could identify for a cannabis permit. 1.6.1.(i) Customer Check-In Procedures The Customer Intake Process begins when a new, or returning customer, enters the dispensary and provides their government issued identification to security at the Reception area. Using a scanning device that can verify government issued Identification cards, the card is scanned, and information is recorded into our point-of- sale (POS) system. The customer experience begins in the limited access Reception area where a Receptionist manages intake and check-in. A Security Officer will be THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1.6.1.(ii) Location & Procedures for Receiving Deliveries During Business Hours Receiving Cannabis Product Shipments During business hours, shipments of cannabis goods shall not enter the premises through an entrance or exit that is available for use by the public. Subject to Building Approvals, Element 7 propose constructing a ‘docking station’ at the rear of the premises so that the rear of the delivery vehicle and the rear of the building premises would be enclosed while a secured delivery is being made. This ‘docking station’ would be expandable so that as deliveries are being made it is able to expand up to 8 feet out from the rear wall of the building, and as deliveries are completed it would expand in against the wall. The Bakery by Element 7 Loading and Unloading Area at Rear of Premises Security guards will be notified of all deliveries and are required to be present during any loading or unloading to oversee the secure transportation of the delivery into the facility. The loading/unloading area will be under constant video surveillance and properly illuminated. This loading and unloading area allows for the safe and secure delivery of goods without any disruption to our retail operations. Element 7 holds a Distribution Permit in the City of Atwater (State License pending) and will ‘self-distribute’ products to its Fresno store. All orders will be consolidated in Atwater which ensures that a single distribution entity owned and operated by Element 7 will serve The Bakery by Element 7 in Fresno on arms-length terms and under full State Type 11 License regulations. This significantly reduces public safety risks and ensures that a single vehicle will deliver all required products to the Fresno store every 5-7 days (or as needed based on sales). Prior to arriving at the facility, the distribution employee delivering shipments will contact The Bakery by Element 7 General Manager to inform them when they are 10 minutes away from arriving at the facility. Upon receiving the 10-minute notification, security guards will conduct a security sweep of the premises and car-park. This includes inspecting the perimeter of the facility, as well as the loading and unloading area. Upon clearance, the loading/unloading area will be prepped to receive the shipment. The delivering employee will provide the Security Guard and Inventory Control Manager with a copy of the company’s business license and shipping manifest as a THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. measure to verify that we are permitting an authorized shipment onto our premises. Simultaneously, we will request to view the employee’s identification badge, a copy of which will already be on file for verification purposes. The driver will be instructed to reverse their vehicle (small sprinter vehicle) so that goods can be removed from the rear of the vehicle and immediately transferred to the secured Quarantine Storage Room. Upon receipt of a shipment, the Inventory Control Manager shall verify that all products have not exceeded their expiration or sell-by date. If any products have exceeded their expiration or sell-by date, employee shall notify management and the delivering employee. We shall not accept any products that have exceeded their expiration or sell-by date. We will return the expired goods and request that the expired goods be exchanged for sellable goods. If it is discovered that any product that was purchased is defective, we may return the product in exchange for a non-defective version of the same product, for product of equal value, or for a refund (if payment for the shipment has already been paid or transferred). Additionally, we will not accept cannabis goods unless they are appropriately packaged and labeled as they will be sold at final sale (note: We shall not package or label cannabis goods as this is done by State Licensed manufacturers). All items will be inspected to ensure that they are compliantly packaged and labeled. A packaging, labeling and documentation “cheat-sheet” (composed of relevant regulations and company policies) will be readily available and used to inspect every shipment to ensure that we are accepting a compliant shipment and being provided the required/requested documentation. Upon receipt of cannabis goods, we will ensure that the cannabis goods received are as described in the shipping manifest and shall record acceptance and acknowledgment of the cannabis goods in the track and trace system. If there are any discrepancies between the type or quantity specified in the shipping manifest and the type or quantity received, we will record and document the discrepancy in the track and trace system and any relevant business record and notify the distribution company immediately. We will not accept any cannabis goods that are not included on the shipping manifest. The Inventory Manager (IM) will ensure that all records related to the acquisition of cannabis and cannabis-infused products will include the following information: • Strain Type • Quantity • Variety • Batch Number • Name and Registry Identification Number of the licensed operator supplying the shipment of cannabis and/or cannabis-infused products • Name and Registry Identification Number of the licensed operator delivering the shipment of cannabis and/or cannabis-infused products • Name and Registry Identification Number of the Dispensary Agent receiving the shipment of cannabis and/or cannabis-infused products • Date of Acquisition of cannabis and/or cannabis-infused products THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1.6.1.(iv) Estimated Number of Customers to be Served With a potential customer base of over 120,000 – 150,000 cannabis consumers living within 30-miles of the Dispensary (15% of the population base of Fresno City and parts of Fresno County), The Bakery by Element 7 knows it would see approximately 400 customers a day (30-45 customers per hour). We believe in a market like Fresno that 70% of these customers are looking for ‘value’ which The Bakery by Element 7 is very well positioned to deliver given our market scale and vertical integration which allows us to beat most competitors on our product cost base which we pass on to consumers. With a retail sales are of 1,000 square feet, we would have a maximum occupancy of 33 customers at any one time (based on the California Building Code for Retail Sales Stores on Basement or Ground Levels at 30 square feet per customer). With a 50% load factor applied to this (for customer comfort), we would have a maximum desired occupancy of 16 customers at any one time. With an average customer visit time of 10 minutes, the store could handle a maximum of 96 customers an hour. With an estimate of 400 customers a day, and operations from 9am to 9pm (12 hours), we do not forecast any significant issues with customer flow within the store. Based on our experience in Santa Ana and Fort Bragg, our marketing program ‘smooths out’ sales over different days of the week, and hours of the day. For example, on Mondays which are typically our slowest days of the week, we offer incentives and discounts to loyal local customers to bundle and save. This activity allows us to increase sales on what would otherwise be the slowest day of the week. 1.6.1.(v) Proposed Product Line and Estimates for the Percentage of Sales Once inside the Dispensary, a range of shopping options from quick-serve grab-and- go, through to customized shopping guidance will be available. Our facility will sell flower, concentrates, edibles, topicals and lotions, tinctures, pre-rolls, and accessories (a wide range of topicals will be sold for elderly and retired locals). In compliance with state regulations and industry best practices, our product offerings will only be sourced from licensed and compliant distributors. Our product mix represents cannabis products that are commonly purchased at retail dispensaries. Based on our experience, we anticipate selling: • Concentrates: 10% • Edibles: 15% • Flower: 30% • Pre-rolls: 30% • Vape pens: 15% THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. The Bakery by Element 7 will stock a range of Element 7 branded products, and leading brands across California as demonstrated on the image to the left. We have relationships in place with a number of leading distributors including Falcon Distribution. Major product categories sold by The Bakery by Element 7 will include: 1.Pre-packaged Flower - Pre-packaged Flower products are loose flower buds that have passed mandatory product testing and are pre-packaged in compliant packaging. Flower is considered a combustible product that is typically smoked using a pipe or bong and can be rolled into cone-like cannabis cigarettes. 2.Pre-packaged Pre-Rolls - Pre-Rolls are loose flower buds that have passed mandatory product testing and are rolled into cone-like cannabis cigarettes. 3.Vaporizer Pens, Cartridges and Batteries - Cannabis concentrate is placed into cartridges and attached to a vaporizing device that is typically the size of a ballpoint pen. 4.Concentrates - Cannabis concentrates are proven to have a higher percentage of cannabinoids due to the extraction process and are typically ‘dabbed’ which requires the product to be heated and inhaled. 5. Cannabis-infused Edibles - Ingestion of cannabis-infused food products is an alternative, non-combustible form of consumption. Typical consumer-grade cannabis-infused edible products include gummies, chocolates, cookies, and brownies. 6.Tinctures, Topicals, Balms, Ointments, and Creams - These products are infused with cannabis concentrate that has passed mandatory product testing. Topicals and ointments are usually sold at dispensaries as cannabis-infused lotions, massage oils, transdermal patches, lubricants, balms and ointments. In compliance with state regulations and industry best practices, our product offerings will only be sourced from licensed and compliant distributors, with a preference for small / craft Cultivators and cultivators, manufacturers, and distributors located in Fresno County. Our existing best-practice product procurement plan in Fort Bragg and Santa Ana includes clearly defined commercial terms, template supply agreements, vendor risk management assessments (i.e., are they a stable supplier), cost expectations, defined vendor management plans, and annual KPI’s set for each vendor to ensure shelf space is maximized. All vendors are subject to our Preferred Vendor Program which scores existing and potential vendors on a 100-point scale, taking into account their compliance, sustainability, product quality, reliability, and brand innovation. All vendors are required to be tested by State Licensed Testing Labs and Element 7 also maintains its own internal Quality Control Program ensuring packaging, labeling, product materials, ingredients, and claims are substantiated and correct, and that consumers are getting what they expect – trusted and consistent brands. Our expected ‘first order’ will be approximately based on our market experience retail sales value). We expect to replenish stock weekly. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1.6.1.(vi) Delivery Service Vehicles and Product Security During Transportation Anticipated Number of Vehicles Initially, The Bakery by Element 7 anticipates having two (2) delivery vehicles which will start operations 30 days after the dispensary first opens. The Bakery by Element 7 is conscious of its greenhouse gas emissions, particularly from any vehicles used in day-to-day operations. Our preferred vehicle models are hybrid vehicles as we need the ability, for safety and security purposes, to operate a vehicle that runs on both electric and fuel options (i.e., in the event of an empty battery, the vehicle will also have fuel). Our preferred choice is the Hyundai Ioniq Hybrid Vehicle as it returns an impressive 58 miles per gallon in combined city/highway driving. Further, the vehicle is built with eco-friendly materials, user-friendly technology, and delivers great handling capability. It comes with plenty of cargo space, which allows us to install lockboxes to store cannabis products during transportation. Delivery Service Procedures Delivery Request The Bakery by Element 7 will prepare both a hard copy and an electronic delivery request receipt for each delivery of cannabis goods. The delivery request receipt will contain the following information: our name and address; the name and employee number of the employee who delivered the order; the name and employee number of the employee who prepared the order for delivery; the name of the customer and the customer’s assigned identification number that placed the order; the date and time the delivery request was made; the delivery address; a description of the cannabis goods requested for delivery, including the weight, volume, or any other accurate measure of the amount of all cannabis goods requested; the total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. At the time of the delivery, the delivery employee shall provide the customer with copy of the delivery request receipt. The delivery employee shall retain a copy of the signed delivery request receipt. Verifying Identity of Customer Cannabis goods will only be delivered to the customer named on the delivery request receipt by the customer. Upon arrival, the driver must review the customer’s government-issued identification and physician’s recommendation (if applicable); the driver will verify that the documents provided in person match the customer’s online profile. A mobile ID Checker (CAV-3200 VIAGE Model approved for use in California) will be carried by each Driver to check ID’s as required (cloud based). The Bakery by Element 7 will verify first time customer’s physician’s recommendation before delivering cannabis goods. The Bakery by Element 7 will implement two primary methods of verifying the validity of a customer’s doctor’s recommendation. 1. The Bakery by Element 7 will compile a list of reputable and compliance providers with a sample of a valid recommendation provided to us by the issuing company. When a customer provides us with a doctor’s recommendation from THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. our list of verified providers, our staff will review the recommendation to verify its validity. 2. The Bakery by Element 7 will verify the doctor’s recommendations by contacting the issuing provider. Further, The Bakery by Element 7 will vet every new provider to ensure their credentials and legitimacy. The Bakery by Element 7 will attempt to verify the physician’s recommendation immediately upon begin notified that a first-time customer requesting a medicinal delivery. If we are unable to verify the physician’s recommendation within 24-hours we will notify the medicinal customer that we are unable to fulfill their order because their physician’s recommendation could not be verified. Additionally, upon creating an online customer account, customers will be notified on the registration page that physician’s recommendations will have to be verified before any cannabis goods will be delivered by The Bakery by Element 7 and that verification can take up to 24-hours. Delivery Vehicle Insurance The Bakery by Element 7 will obtain commercial automobile insurance for all company vehicles. The commercial automobile insurance policy will over the following coverage: At fault accidents, including coverage for injuries and damages for third parties; Comprehensive and collision coverage; Accidents involving uninsured motorist; Medical expenses; Legal expenses; etc. Temperature Control All vehicles will be equipped with heating/cooling temperature controls to ensure the preservation and quality of perishable cannabis products. Additionally, any perishable cannabis products that are required or recommended to be maintained at a refrigerated temperature will be placed in an insulated cooler tote bag. Exterior of Vehicle Any company vehicle used in the delivery of cannabis goods will not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Delivery Technology Inventory Tracking Dutchie is The Bakery by Element 7's preferred online ordering platform with the easiest design for consumers to purchase cannabis products from dispensaries for pickup or delivery. The intuitive Dutchie delivery technology platform will allow our delivery team to track and record information for every online transaction. Dutchie has features to enable us to accept online orders for pick-up and delivery, fulfill orders, dispatch drivers, and manage inventory, transactions, and deliveries. Dutchie seamlessly integrates with our Flowhub platform and automatically pulls our inventory in real-time to ensure our online menu is always up to date. The Dutchie software simplifies our inventory from vendor intake to consumer sale. We are able to manage manifests, packages, and products in real-time. Once the order is accepted the quantity will automatically be deducted from the inventory. Dispatchers are able to THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. view the courier’s current inventory and amount of each product for even faster delivery times. Receiving Orders Upon notification that an order has been placed online, the dispatcher will prepare and assign orders directly to drivers on the road, and if a driver is carrying unassigned inventory, the dispatcher will be able to see what products the drivers have on board in real-time. The software will automatically suggest which driver each order should be assigned to the order based on the distance to the customer and how many active orders that driver has in his/her queue. It will also show ETA from the driver’s location to the delivery drop-off location. Customer Identification First time online customers will be required to create an account before submitting an order. Customers will be required to create a password protected customer account by providing/uploading the following information: • First and Last name • Contact Information • Government-Issued Identification • Physician’s Recommendation Letter Couriers can quickly access customer profiles upon arrival to check their physician’s recommendation expiration (if applicable), any delivery specifications noted, and a copy of government-issued identification to ensure that the delivery is being completed with the appropriate customer. The Bakery by Element 7 will verify first time customer’s physician’s recommendation by contacting the issuing physician or comparing it with our list of confirmed physicians sample recommendations on file. Online Menu At the focal point of its website, The Bakery by Element 7 showcases all its products in a manner that’s easy for customers to navigate. Additionally, The Bakery by Element 7 will ensure that the menu provides beneficial information to customers so they can make an educated choice before purchasing any cannabis and/or cannabis product. For in-store customers our CURA-AI platform uses machine-based learning and artificial intelligence to match a physician’s recommendation with products in stock and peer-reviewed research and logged customer feedback to recommend a cannabis profile to a customer, based on real data and collected evidence. CURA-AI was developed by MIT graduates partnering with US Government health officials in 2019. Through the Dutchie platform, The Bakery by Element 7 will be able to receive detailed delivery analytics of gross sales, sales by product, tax reporting, and more. The Dutchie platform integrates with FlowHub and SalesForce. Location Dispatch is notified when an order is placed, and again when the order is out for delivery. Once the delivery is complete, dispatch receives a push-notification from each drop-off location once the transaction is completed. The software permits us to track drivers and their mobile inventory across geofences, optimize delivery routes, and maximize delivery efficiency. THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Product Security During Transport The Bakery by Element 7 will strictly adhere to all rules, requirements, and regulations regarding transportation of cannabis within the State of California. No deviation from those rules will be tolerated or allowed. The Head of Security will implement additional measures beyond the minimum requirements. The Bakery by Element 7’s delivery process begins when the delivery employee leaves the facility with the cannabis goods for delivery. The delivery process ends when the delivery employee returns to the facility after delivering the cannabis goods or attempting to deliver the cannabis goods to the patient or customer(s). At no time will an The Bakery by Element 7 delivery employee engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops. In the event that an employee leaves the vehicle unattended, he/she will ensure that the vehicle is locked and equipped with an active vehicle alarm system. All deliveries will be fulfilled at the rear of the premises. The order fulfilment boxes containing cannabis to be delivered to patients and customers will be verified, recorded and sealed. Once sealed they will be loaded into the secure lock boxes in the rear of the delivery vehicle. No order fulfillment boxes, lockboxes, or cannabis goods will be visible to the public or accessible through the vehicle. Cannabis goods will be locked in a fully enclosed box, container, or cage that is secured to the inside of the vehicle. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. All vehicles will be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations travelled to by the delivery employee while engaged in delivery. The GPS device will be owned by The Bakery by Element 7 and used for delivery only. The device will be either permanently or temporarily affixed to the delivery vehicle and will always remain active and inside of the delivery vehicle during delivery. At all times, The Bakery by Element 7 will be able to identify the geographic location of all delivery vehicles that are making deliveries and document the history of all locations travelled to and by a delivery employee while engaged in delivery. Summary The Bakery by Element 7 brings diverse retail experience to Fresno - an understanding of the California cannabis retail landscape, scaled operations, vertical integration to support price and value initiatives, and traditional 'big box' and 'big brand' retail knowledge. Key management including Robert DiVito, Mark Malatesta, Neil Demers, Nicholas Jack, and Josh Black have over 50 years of cannabis and traditional retail experience between them, having worked at and with companies including Kohl's, Dell, Black & Decker, PepsiCo, Quaker Oats, Coca-Cola, Target, Walmart, Sam’s Club, Macy’s, Guess, and Levi. The Bakery by Element 7's business model is driven by efficiency, scale and having a very localized footprint. The Bakery by Element 7's promise is 'exceptional experiences THE BAKERY: BUSINESS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. at everyday prices' within a premium retail shopping location. Our matrix management approach allows us to stay agile and nimble, ensuring that front-line staff has the expertise, authority, and direction to work efficiently while adhering to a rigid set of policies and practices that standardize our commitment to excellence in serving our customers. At the core of the success of the world’s biggest brands is a deep understanding of the customer and their needs. This is made possible through powerful insights into customer behavior and expectations, and we have just such a powerful insight before us. We know that those who will enjoy the most growth in the coming years will be the operators who seize upon cannabis’s potential as a product that promotes wellbeing as part of a holistic wellness regimen. Our unique focus on holistic healing aligns with the need-states that a significant number of today’s consumers are looking to cannabis, as a product, to satisfy. Staying focused on this group of consumers will allow us to build a brand that stands for trust, compassion, understanding, and education. Every aspect of our business, from staff training through to the products we place on our shelves, will stay focused on this brand positioning, allowing us to create a business and platform that consumers understand and can build a deep and lasting emotional connection with. We are confident that we have the team and experience to create a sophisticated and sustainable ‘very local’ cannabis business and footprint in Fresno and aim to be the most tested, taxed, trusted, controlled, and compliant operator that the City could find. Weeks Before Opening Category Activity Responsible Person/Party Target Completion Date 32 Permitting 12-14 Weeks Allocated for Initial License Review 24 Construction 8 Weeks Allocated for Discussions with Planning and City regarding Parking, Traffic, Engineering etc 18 Construction 12 Weeks Allocated for all On-Site works (internal Site Works) 14 Construction 4 Week Buffer for Site Works Delays / Planning Matters 10 Operations 4 Weeks Allocated for Dfit-Out Works / Merchandising Displays etc 6 Operations Initial Accessories product & supplies orders with Suppliers - determine quantities for training, mock shifts, pre-opening activities 6 Personnel Prepare All Employee HR Documents, Employee Handbook and have final draft reviewed by labor attorney 6 Personnel Employee policies - determine policy 6 Personnel Employee training manuals -Expand on Cheat Sheet, Diego Background, History, and Future, Accessories, Flower, Concentrates, POS, Sales training (suggestive selling, up selling, crm, cx/ux, marketing, seo), Compliance Checklists 6 Personnel Employee files - set up for employment application, status changes, other personnel records 5 Administration Insurance - verify with your agent that all policies are in force 5 Marketing Job Posts- NOW HIRING /COMING SOON 5 Marketing Public relations for opening - hire local PR firm - send out press releases to local media outlets 5 Operations Inventory report of all products on hand 5 Personnel Management team - start interviewing/selection process 5 Personnel Bud Tender's placement - Security arrangement - determine mix of floor and counter bud tenders - Security personnel plan interior and exterior 5 Personnel Employee recruiting - Indeed and Job Fairs - recruiting missions - plan for turnover, hire 20% more than you think you need 5 Product Cannabis - determine how many products and create a list with all information - decide what genetics, edibles, paraphernalia, acessories and merchandise to stock 5 Product Create a list of available suppliers and their information - create list of suppliers for Cannabis, Packaging, F&B (Where applicable) & supplies 5 Product Pricing - Determine final price points on all items 5 Product Inventory control - using master inventory list of all products to stock -set up POS 5 Product Set up all tracking compliance info in POS, assure all key personnel are trained 4 FF&E purchase equipment 4 Operations Finalize Staff Uniforms 4 Operations Hours of operation - determine for each day/employee meal period 4 Personnel Management training commences - personnel hiring, training & management - operations - administrative 4 Personnel Staff pay scales - determine starting pay scales for each position - determine employee review/raise policies 3 Administration Credit card merchant accounts - setup for MC/Visa, Amex, Discover, Others 3 Design/ Construction Exterior signage - primary, handicap, reserved, valet, hours of operation, delivery times - Company Sign Hung 3 Design/ Construction Supplier, contractor, sub-contractor contacts - create master phone & contact list with emergency numbers 3 Design/ Construction Cleaning crew - bid & select vendor for initial & final clean 3 FF&E Office equipment - copier, fax, computer, printer, calculators 3 FF&E Office furniture - desk, chairs, filing cabinet, shelving 3 FF&E Receiving scale 3 FF&E Restrooms - hand towel/dryer dispensers, soap dispensers, hand soap 3 FF&E Janitorial equipment - wet floor signs, mops, buckets, vacuum - trash cans, cordless dust pan 3 Marketing Printing - Exterior Signage Permit - Website and Social media - Banners, Printing, Fliers, Posters - stationary, envelopes, labels, business cards - invitations for opening parties 3 Ongoing Services Retail space cleaning - flooring, rest rooms 3 Ongoing Services Armored car service - select approved vendor 3 Operations Checklists - prepare opening, closing, shift change checklists for all stations 3 Operations Promotions - determine specials - check state/local laws regarding specials/discount programs 32 WEEK CHECKLIST: NEW STORE OPENING ELEMENT 7 3 Operations Prep lists with pars - create prep lists with par levels 3 Operations Station setup sheets with pars - for all retail, medical, café, etc 3 Operations Approved vendor list - create Master Approved Vendor List - Building & HVAC repair vendors 3 Operations Initial Cannabis, Edibles and Concentrates product & supplies orders - determine quantities for training, mock shifts, pre-opening activities 3 Operations Backup Plans and Documents for issues that could arise (i.e. POS system not working) 3 Product Initial Product order - prepare & place initial order - request free samples from suppliers to test - have sufficient quantites for testing & training 3 Technology POS phone line - dedicated line for charge approvals - tie into DSL/cable line 3 Technology POS system install - start evaluation/demonstration process 2 Administration Payroll processing 2 Administration Petty cash - setup petty cash fund for cash payments - create petty cash reimbursement form 2 Administration Deposit procedures - armored car service or other 2 Design/ Construction Compressors & valves - label and check for accessibility 2 Design/ Construction Electrical labeling - label switches, breakers and check for accessibility 2 Design/ Construction Security and Alarm system - install & inspect 2 Design/ Construction Inspections - schedule for fire, health departments 2 Design/Constr.Walk-through with contractor - create initial punch list 2 Design/Constr.Building & equipment plans - retain full set of plans for operational files 2 FF&E Communications/phone system - phone lines for office, fax, retail space, etc - Security system, fire & burglar alarms - internet access, service provider 2 FF&E Interior signs restrooms, fire exit, hand wash, wait to be seated 2 FF&E Safe for office - determine type, bid & order 2 Ongoing services Music-(Music licensing) 2 Ongoing Services Chemicals and SDS Sheets - select approved vendor 2 Ongoing Services Setup Monthly accounting - use industry standard chart of accounts - outside accounting service 2 Ongoing Services Pest control - select approved vendor 2 Ongoing Services Trash disposal - select approved vendor 2 Ongoing Services Window washing - do in-house or outsource - select approved vendor 2 Ongoing Services Insurance agent - building, general liability, liquor liability, workman's comp, group medical 2 Ongoing Services Laundry & linen - select approved vendor 2 Operations Emergency exit procedures - determine procedures, post maps - discuss in safety meetings with staff 2 Operations Bulletin board - for employee schedule, mandadory postings - choking poster - emergency hospital & doctor numbers & instructions 2 Operations Cleaning & maintenance schedules - set up schedules & procedures - Cleaning Checklists 2 Operations Emergency numbers - map, directions to hospital - make arrangements with local doctor, clinic 2 Operations Floor maintenance - get ongoing floor maintenance procedures - purchase cleaning / polishing supplies 2 Personnel Food safety training - access food safety training materials 2 Personnel Staff Orientation and Begin staff training 2 Smallwares/ Supplies First aid kit - emergency burn kit 2 Smallwares/ Supplies Check presentation clipboards 2 Technology Computer software - Microsoft office, scheduling, cannabis and retail item management 2 Technology Phone on hold message - select service provider - message/music 2 Technology Internet service provider - DSL or cable 2 Technology POS - set up installation & training 1 Administration Bank supplies - deposit stamp & pad, deposit bags, deposit slips 1 Administration Accounting/bookkeeping system - have CPA review sales, deposit, payroll and accounts payable system 1 Administration Permits, licenses, inspections, approvals - verify that licenses, etc. have been secured 1 Administration Initial change order - get change & small bills from bank 1 Administration POS/merchant accounts - test credit card approval/processing 1 Administration Receive certificate of occupancy 1 Design/ Construction Exterior signage light timer - set light timer 1 Design/ Construction Exterior cleanup - parking lot, landscaping, building, windows 1 Design/ Construction Final clean - interior & exterior of building 1 Design/ Construction Wash windows 1 Design/ Construction Beverage service - set up installation of coffee and tea equipment 1 Design/ Construction Update construction punch list 1 Design/ Construction Fire extinguishers - install with visible operating instructions 1 Design/Constr.Continue construction punch list 1 FF&E Storage shelves - clean, organize & label 1 FF&E Receive furniture - tables, chairs, desk tops, display cases, other 1 FF&E Emergency equipment procedures - determine emergency shut-off steps - label equipment 1 FF&E Equipment tests - test each piece with supplier prior to training 1 FF&E Tools/toolkit - purchase & designate location store 1 FF&E R&M binder for all equipment - prepare repair & maintenance binder for operating instructions, manuals - mail in warranty cards 1 FF&E Test all equipment 1 FF&E Complete equipment warranty cards 1 FF&E Final clean all equipment 1 Marketing Opening parties - work with training team to set up - press event, VIPs, contractors & suppliers - create guest lists, send invitations 1 Operations Order & delivery schedule - prepare weekly schedule with each vendor's order & deliver dates 1 Operations Deposit bags - obtain from bank 1 Operations Change order - prepare initial change order; change & small bills 1 Operations Check inventory levels - on all cannabis, retail items, packaging, food, beverage, paper & supplies - prepare orders for opening week 1 Operations Opening inventory - take full physical inventory on all products pre-opening - necessary to calculate accurate costs after opening 1 Personnel OSHA - review OSHA standards with managers 1 Personnel Safety checklist & audit - create safety checklist & perform safety audit - Safety Checklist 1 Personnel Safety & first aid training - conduct training program for all employees 1 Personnel Conduct practice runs/mock service - full dress with uniforms 1 Smallwares/ Supplies Initial chemicals order - degreasers, drain treatment - disinfectants, sanitizers - floor care solutions - handcare - cleaners for dishroom/restroom/dining room 1 Smallwares/ Supplies Janitorial supplies - carpet, tile, floor cleaner, spot remover - gum solvent, liquid hand soap, paper towels, toilet paper 0 Launch Soft Opening/Grand Opening THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 4. Element 7 has donated funds to the Firebaugh High School Athletics Team for new uniforms in 2019. 5. Element 7 has partnered with social equity applicants to submit cannabis permits in Oakland, Los Angeles, Tracy, and San Francisco in 2019 and 2020. 6. Element 7 has Sponsored NDICA (National Diversity and Inclusion Cannabis Alliance) and Latinos 4 Cannabis Programs in their local communities since 2018 and 2019. 7. Greg Moreno has helped do voluntary coaching with the YMCA Basketball Team in nearby Hanford for the last 5 years. 8. Greg is a Member of the Marine Corps League and Wounded Warriors since 2001. Greg recently joined the VFW Program in Fresno helping to support fellow disabled veterans. 9. Element 7 has financially partnered, backed, and supported JePahl White and Green Pastures Premium Cannabis Company to help that company submit a cannabis application for a license in Fresno. In an industry that is rampant with competition, division, and dissociation, we are proud to be helping a social equity applicant secure cannabis licensing in Fresno. 10. Element 7 recently sponsored ‘Stop the Violence’ park clean-ups, and Thanksgiving Tukey’s for homeless people in Fresno (November 2020). 11. Jaime Ramirez is a Youth Football Coach in Hanford and has won 9 Valley Championships. He is committed to empowering and educating youth in the Valley and mentoring them to reach their full potential in life (images below). 11. George Ohan is active in the Fresno County community and works closely with the Clovis Veterans Memorial. As shown below, George regularly hosts THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Faith in the Valley: Element 7 has already worked with Marcel Woodruf and the Faith in the Valley team to hold Thanksgiving Events and Clean Up Park programs. Big Red Church Food Bank: Element 7 donated to this program in 2019 and is in discussions with Reverend Raygan Baker to donate additional funds in 2021. Southeast Fresno Community Economic Development Association: Element 7 is in discussions with Jose Leon- Barraza to assist this non-profit financially in 2021 with an annual contribution of Veterans Affairs California AMVETS: Element 7 has discussed support for this organization through Greg Moreno who served in the US Army for over 20 years. Clovis Veterans Memorial District: Element 7 will be supporting this initiative and has discussed financial and other benefits through George Ohan. Animal Abuse Kings Canyon Veterinary Foundation: Element 7 has conducted discussions with Leroy LeBeug of this association to commit to funding in 2021. This Foundation is our immediate adjacent neighbor at our application on E. Kings Canyon Road, Fresno. Health & Wellness TRU Ballers: Element 7 is committed to TRU Ballers and has discussed financial assistance with David Rivera (Co- Owner and Founder). TRU Ballers is a youth basketball program for children from disadvantaged families. Healthy Fresno Air: Element 7 has already partnered with this group that focuses on cleaner air quality in Fresno. Community Advisory Board Our Element 7 Cares program will be headed by a Committee that includes some of Fresno’s most influential community leaders. The local community representatives are essential to the governance and accountability of the program and achieving its THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. mission. The local Community Advisory Board will oversee all community integration efforts and support The Bakery by Element 7’s outreach & service with the local community, the impact of our financial donations, and the community groups that most need our support. Accountability, transparency and integrity can, and should be, maintained and implemented across Element 7 operations, business model and ethos. With the help of the E7 Cares Board - The Bakery by Element 7 will consistently be geared towards earning and safeguarding Public Trust, the health and safety of our patrons and the environment. Community Advisory Board Members include: THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. months service will be eligible to be allocated equity through a Stock Option Agreement. Stock options are a means to both attract good talent and keep those employees invested in the company over time. Accordingly, in general, stock option agreements are offered to key employees in conjunction with the employee’s initial hire or concurrent with a significant increase in the employee’s role or responsibilities at the company. When Element 7 offers employees stock options, we will do so through a special contract called a Stock Option Agreement. Such an option, once granted to the employee, gives the employee the opportunity to benefit from increases in the company’s share value by granting the right to buy shares at a future point in time at a price equal to the fair market value of such shares at the time of the grant. The option agreement dictates all the terms of the offer - including vesting schedule, time limits for exercise once vested and any other special conditions. Staff Volunteer Program The Bakery by Element 7 will ensure that it gives back to the community by requiring all full-time staff to commit at least 10-hours quarterly to a local cause or charity. Annually, each staff member will contribute over 40-hours or more of community service beyond the monetary commitments we deliver. These hours will either be used for hands-on volunteering or providing pro-bono support services in the specialist area of the volunteer - business management, design and creative, logistics, processes, and systems. Medical Cannabis Discount Programs Studies show that increased access to marijuana has helped reduce some of the most critical consequences of opioid use, including opioid overdose deaths and untreated opioid disorders. •In states with medical marijuana access, overdose death rates are roughly 25% lower than states that don’t offer legal access to the drug, with a significant decrease in overdose death rates over time. •Legal access to medical marijuana has helped produce a 23% reduction in opioid dependence or abuse-related hospitalizations, and a 15% drop in opioid treatment admissions. As a holistic wellness company focused on inspiring a holistic lifestyle, Element 7 is intent on providing safe and affordable access to its patients, primary caregivers who suffer from diseases, pain, PTSD or simply do not have the means to pay for medical cannabis or cannabis goods. Seniors, retired veterans, and customers on government assistance need cannabis to treat a wide range of medical and wellness conditions. The Bakery by Element 7 will assist these persons to access cannabis at-cost by working with hospitals and health care centers in close local proximity to our operations. These partners will be responsible for identifying customers and others that could benefit from cannabis and need financial assistance in securing discounted pricing. THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. The Bakery by Element 7's discount program will give-away and allow for heavily discounted medical cannabis and cannabis goods for sick or low-income medical patients. To enroll in the The Bakery by Element 7 discount program patients will either apply on-line or at the The Bakery by Element 7 facility. The process for enrollment will request the following information from applicants: 1.Medical ID Card and proof of low-income for the last two (2) years (via tax return); or 2.Medical ID Card and proof that patients are receiving state benefits such as welfare, HUD or food stamps. Participants in the discount program can receive 5 grams of mixed shake or a 20% discount on medical cannabis purchased at The Bakery by Element 7 up to 28g total of THC and 50mg of CBD per month. The discount program is specifically for seniors, retired veterans, HIV and AIDS patients, children diagnosed with autism, epileptics, terminally ill patients and low-income patients. Craft Cannabis Producers Program The Bakery by Element 7 has a policy of supporting local and small craft and boutique cannabis farmers and manufacturers. Many of these come from disadvantaged local communities across the State of California. As mentioned earlier, Element 7 has partnered with JePahl White and Green Pastures Premium Cannabis Company to help JePahl and his family to submit a retail license application in Fresno which we feel honored and proud of given JePahl’s deep connections to the black community in Fresno and the work his Great Grandfather, Grandfather, and Father and Mother have done in the Fresno community over 4 generations. As corporate cannabis operations continue to expand in California, small cannabis growers have begun to develop cooperatives to stay competitive with their large-scale rivals. Co-ops present benefits for smaller marijuana producers: •By joining forces, these more modest-sized farming operations can offer a steadier supply of cannabis to distributors and retailers. •Growers can generally market their products more efficiently through a cooperative model. •Cultivators at the co-op level can share resources, helping to lower operating costs. We have an active relationship in place with Red Crow Cannabis – a cannabis cultivation company focused on cultivating cannabis on Native American Tribal Land in California. After having conducted their first season in 2017, Red Crow Cannabis are looking to expand their business in 2018 and we call Richard Tall Bear Westerman, the founder and CEO for Red Crow Cannabis, a close friend. Through our Head of Security, we have also formed a relationship with a Veterans Cultivation project in Yolo County – White Wolf Farms. This group provides combat veterans with medical cannabis information, support services, and safe access to high quality medicinal cannabis. White Wolf Farms cultivates high-quality organic outdoor cannabis on a 1- acre plot in Yolo County. THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. We are also a partner of Emerald Exchange – Justin Calvino runs the Emerald Exchange and is a friend and colleague. The Emerald Exchange is focused on bringing craft cannabis producers from Humboldt, Mendocino and the Trinity Triangle, and their brands to mainstream city markets, whilst keeping alive the essence and unique qualities of hand-touched sun-grown craft cannabis. This is a part of the industry that we want to keep alive and see flourish as it delivers much needed economic benefits and security to hundreds of small families across California. We have identified Green Pastures Premium Cannabis operated and owned by Je Pahl White as a local cannabis company that we will partner with to help expand their business across California. Je Pahl White is a lifelong Fresno resident and business owner. We are very interested in identifying other local licensed cultivators and manufacturers from the County that we can collaborate with and will actively identify and work with these groups. Cannabis Criminalization Reform and NDICA Partnership A founding principle of Element 7 is to see criminal justice reform for non-violent cannabis offenders as public opinion has shifted in its support of reforming federal and state cannabis laws. Element 7 also has one of America's leading advocates for criminal justice reform, harm reduction, and cannabis law reform on our team (Policy Advisor). Lynne Lyman is the California State Director for the Drug Policy Alliance, the nation’s leading organization promoting alternatives to the war on drugs. Prior to the DPA, Lyman worked at the Advancement Project, a civil rights organization, where she focused on issues of violence reduction, criminal justice reform and community policing. She spent six years working in Boston in criminal justice positions within state and local government, and as consultant to community and faith-based organizations seeking to address social problems relating to street violence, racial justice, and juvenile justice system reform. Element 7 has partnered at a national level with NDICA (National Diversity and Inclusion Cannabis Alliance) to sponsor and host Expungement Clinics, the first of which was held in Fresno, California in June 2019. In addition to NDICA, Element 7 is a partner of Latinos 4 Cannabis and works closely with this wonderful non-profit to create preferred job placements, job fairs, and training programs for cannabis entrepreneurs (refer to attached Letters of Support). 7.1.1 Fresno Expungement Clinics Element 7 created history in 2019 by hosting Fresno's first ever Expungement Clinic. The Expungement Clinic, held in partnership with the Fresno County Public Defender’s Office, NDICA (National Diversity and Inclusion Cannabis Alliance), and Element 7, THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. paved the way for Fresno residents with minor drug related criminal records to enter the legal and licensed cannabis industry to gain meaningful employment, or as owners and investors. Expungement clinics are part of the much-needed reparative justice for the harms of cannabis prohibition, which targeted people of color and from marginalized communities. Fresno is one of the hardest hit parts of California for drug related crime. Volunteers from the Fresno County Public Defender’s Office were available at the Clinic to provide free legal assistance to Fresno residents with drug related criminal records, including Prop 64 and Prop 47. Carmen Romero, attorney with the Fresno Public Defenders Office Clean Slate Program said, “We encourage the community to come take advantage of the opportunity to clear their criminal convictions and begin the overcome the obstacles to better jobs, housing and other benefits.” This was the Fresno Public Defenders first expungement clinic in partnership with NDICA and Element 7 at the national and local level. Element 7 commits to holding one (1) expungement clinic annually in Fresno, partnering again with NDICA and the Fresno County Public Defender’s Office. 7.1.2 Environmentally Sustainable Business Practices The Bakery by Element 7 takes its environmental impact seriously and has developed facility build out and designs in a manner that complies with green building practices. Each Element 7 cannabis business facility has been thoughtfully designed, crafted and built to maximize and maintain resource-efficient, high performing, healthy, cost- effective and compliant operations, that considers sustainability its highest priority. Facilities bring forward the best and most impactful emerging technology that provides for almost 100% renewable and sustainable operations. The Bakery by Element 7 believes that community and the environment go hand in hand. Securing a positive outlook and future for every Element 7 community means being a responsible cannabis business operator who takes each community member, local small business and competitor into consideration. The Bakery by Element 7 is at the helm of an emerging cannabis industry that is quickly making its mark on the country and the world. THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 7.2 Public Health Outreach and Education Youth Outreach & Drug Education The Bakery by Element 7 will be an active participant in ensuring that local youth receive accurate information on the dangers of substance abuse at an early age so that they are better informed and more capable of decision-making as they develop and mature. To create and implement this program, we will be approaching local education, youth, and law enforcement groups with a view to either providing monetary resources or educational materials to such groups. Cannabis related arrests have plunged in communities that welcome cannabis dispensaries — saving millions of dollars and sparing people from having criminal records — and we believe that Element 7’s program will extend positive flow-on effects for social issues affecting the County including neighborhood crime prevention, substance abuse and creating safer and cleaner parks and recreation facilities. We know that beyond education, it is critically important to provide meaningful facilities and opportunities to youth that inspire, educate, and entertain them. Community Engagement Events The need for cannabis education is more important now than ever, and The Bakery by Element 7 plays an active role in delivering this message into the mainstream consciousness by making credible cannabis education accessible in the communities we serve. The Bakery by Element 7 will proactively engage with Fresno and nearby County residents, business owners, and officials to cultivate lasting and mutually beneficial connections, sustained by a discreet but visible neighborhood presence. The Bakery by Element 7 seeks to provide tangible benefits to the local community through educational outreach and partnerships with non-profit organizations, municipal agencies, and neighborhood groups. Community Educational Evenings The Bakery by Element 7 is developing a Community Educational Outreach Program that will be held 4 times a year in conjunction with the local cannabis community. At The Bakery by Element 7 we believe that education and community outreach can change the way cannabis is viewed and helps people understand its benefits. To have a successful cannabis program, we believe that there needs to be an active relationship between the community, cannabis research, and local health and medical practitioners. To enact such a program, we will be recruiting a panel of specialists and experts onto our team which will help us conduct the outreach program. We would envision each event having 3 specialists that conduct 15-minute lectures with a 30-minute question and answer session at each event, which can be held virtually as well. Each event would run for approximately 90-minutes and focus on: •Myths and Facts of Cannabis •Customer Treatment Options THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. •The History of Cannabis •Latest Research and Medical Findings for Cannabis •Responsible Use and Management of Cannabis Our goal is to provide the community with the facts and information that they need to be educated and make informed decisions. It is our goal to educate the community so that they can make the best decisions for themselves and their health. All sessions will be provided at zero cost to the attendees. Under normal conditions, we would schedule a free shuttle bus for attendees who want to attend the session but may not have transport options. Dr. Jeff Chen, Director of the Cannabis Research Initiative at UCLA, has committed in writing to helping us with this initiative. Jeff is one of the most respected cannabis experts in North America and holds a dual MD/MBA from Cornell University. He has spent the last four years working at the intersection of academia, industry, non-profit and government to accelerate cannabis research in California and North America. Dr. Chen is the founder of the UCLA Cannabinoid Affinity Group, a published author, David Geffen Fellow and UCLA Wolfen Entrepreneurial Award Recipient. In addition, The Bakery by Element 7 will be teaming up with Americans For Safe Access and taking their patient education services to each of its medical patients. Americans for Safe Access have been at the forefront of lobbying for safe access and providing accurate and reliable education to medical cannabis patients across the country. Every time a medical patient joins the The Bakery by Element 7 community, they will be given access codes that can be used through Americans for Safe Access, to activate an account that provides them with access to medical cannabis material, studies and reports that can provide them with a wealth of information to help them devise an effective treatment or wellness plan. 7.3 Fresno Community Reinvestment Fund The Bakery by Element 7 pledges annually to the Fresno Community Reinvestment Fund ($). Summary Giving back to the local community isn't something we at The Bakery by Element 7 want to be forced to do to gain a business license - rather, giving back is part of our business with purpose core belief and mission. We feel proud that we have the opportunity to use our business to create positive change in the local community, leveraging both our people and bottom-line to do good in a range of areas from supporting non-profits through helping disadvantaged patients, reformed cannabis criminals and local businesses. THE BAKERY: COMMUNITY BENEFITS AND INVESTMENTS PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. The work we have done in Fresno over the last 2 years, hosting the largest ever expungement clinic in the City, and recently partnering with local groups to end gun violence in the City, is testament to our commitment in Fresno to make an impact. We will continue this work regardless of our success or otherwise in securing a permit for retail operations in Fresno. Our programs are designed to enlighten people on the many benefits of legal marijuana and help eradicate consumers from using the illegal and illicit market which supports criminal activity and gives the cannabis industry a bad name. Part of this includes public service advertisements like the one below which directly targets the 30+ non-compliant cannabis businesses that currently call Fresno home. Our goal is to be a good corporate neighbor, sending a positive message about the many benefits throughout the community. With a commitment over annually to our Element 7 Cares programs and Fresno Community Reinvestment Fund, along with the 40-hours per full-time employee to the local community, The Bakery by Element 7 will be a force for good in Fresno. As demonstrated by the Letters of Support attached to the rear of this section of the application, we have strong support from the community. Letters include support from Healthy Fresno Air, Advance Peace, Faith in Fresno, Take a Stand, TRU Ballers, Kings Canyon Veterinary Foundation, Southeast Fresno Economic Development Association, Latinos 4 Cannabis, NDICA, and West Wind Church – Reverend William V. Kittle of West Wind Church kindly wrote us a letter of reference expressing his interest in partnering with Element 7 to create educational programs that educate his online California congregation on the medical and holistic benefits of cannabis, many of whom are based in and around Fresno. November 28, 2020 Element 7 Mr. Robert DiVito Dear Bobby, I would like to begin by thanking Element 7 for your generous donation o for our “Fresno Clean Up” Program. Your donation allowed Healthy Fresno Air, Faith in The Valley, and Advance Peace to perform Seven (7) Park Clean Up Events throughout Southwest and Southeast Fresno. The youth that participated appreciate you taking the time to join their community effort. We would also like to thank you for interest in Healthy Fresno Air and the Keishaun White Clean Air Experiment. We had a great conversation, and you provided some great insight that could potentially yield even more data for our project. We look forward to having more conversations in the near future. I support your efforts to obtain a cannabis license in the City of Fresno. I believe that Element 7 has shown that they will be an active and positive influence in the community. Local residents will benefit from their sincere dedication to education and outreach. I applaud their efforts to partner with local residents to ensure opportunities for everyone. I look forward to your successful cannabis endeavor and again state my full support. Sincerely, Marcel Woodruff Community organizer/activist marcel@faithinthevalley.org December 1, 2020 Mr. Bobby DiVito Element 7 Bobby, I would like to take the opportunity to thank you and Element 7 for your generous donation. Your donation to our Annual Thanksgiving Turkey Giveaway was a blessing to the community. We are grateful for presence during the Turkey Giveaway and appreciate how you engaged the residents of Southwest Fresno. We were able to serve 300 families that day with your help. The Take A Stand Committee supports the efforts of Element 7 to obtain licensing in the City of Fresno. You have shown that Element 7 will be a willing and generous community partner for years to come. We look forward to future collaborations that enhance the lives of our community members. I look forward to working with you, Mr. DiVito, and the Element 7 team here in Fresno. Sincerely, JSumler Janice Sumler, Director Take A Stand Committee __________________________________________________________________ www.takeastandcommittee.org 4974 E. Clinton Way, Fresno, CA. 93727 November 30, 2020 Mr. Robert DiVito Element 7 Fresno 645 West 9th Street, Unit #110-631 Los Angeles, CA 90015 Re: LETTER OF SUPPORT – COMMUNITY OUTREACH AND SUPPORT Dear Robert, Thanks for your time recently to engage and advise us on your upcoming commercial cannabis application in the City of Fresno. We appreciate you taking the time to walk us through your approach to cannabis in the City and the upcoming cannabis application process. Your commitment to hiring local talent and community support initiatives are progressive and sound exactly what the industry and City requires form operators in your industry. As a non-profit within the City, support from companies such as yours are exactly what organizations like our need to support the community and achieve our mission and objectives. We wish you all the very best in the upcoming process and have no hesitation in supporting your business as a good neighbor and friend of Element 7 Fresno. David Rivera Co-Owner and Founder TRU Ballers December 3, 2020 Bakery CA Thank you in your interest in providing support to our organization. We are an organization that provides skateboards and safety equipment to under resourced youth in the Central Valley free of charge. We appreciate Element 7’s willingness to help support and improve local non-profits as you build your business in Fresno. Please feel free to contact us with any questions you may have. Thank you again. Sincerely, Rodney Rodriguez Founder/President Fresno Skateboard Salvage Tax ID # 82-4514085 Fresno Skateboard Salvage Inc. 806 E University Fresno, Ca. 93704 (559)301-0013 info@fresnoskateboardsalvage.org fresnoskateboardsalvage.org Rodney Rodriguez – Founder/President Lance Anderson - Secretary Rhiannon Oakes - Chief Financial Officer THE BAKERY: COMPANY FORMATION DOCUMENTS Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. COMPANY FORMATION DOCUMENTS The Bakery CA LLC has been formed as a Limited Liability Company in California with Robert M. DiVito as the Managing Member and all other owners as Members within the LLC. The entity was formed 12/1/2020. In order to meet the page limit of 200 pages, a summary of the Member Interests are included below – a full copy of the Operating Agreement and Minutes can be provided on request. CAPITAL CONTRIBUTION AND VOTING PERCENTAGE OF MEMBERS AS OF 12/2/2020 THE BAKERY: LOCATION PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 6. LOCATION PLAN Introduction Finding the optimal business site is never easy – the challenge of locating premises that have no immediate neighbors with concerns for a cannabis business are difficult in every municipality we operate within. Communication though, and early engagement are key. Re-educating neighbors, stakeholders, community leaders, and immediate neighbors on how a compliant and controlled cannabis business can be built and managed, can be effectively done when The Bakery by Element 7 engages these people early, including these people in our business plans and site operation strategies. Our efforts to educate the City of Fresno date back to 2018 when Element 7 delivered an educational packet for ‘Compliant Cannabis Operations’ to the Planning Department in October of that year. The packet set out how a City like Fresno could begin to regulate cannabis retail sales and the standards that operators, like The Bakery by Element 7, should be held to. We followed on with more education, this time with the community, when we held Fresno’s largest ever expungement clinic in June 2019, expunging the records of over 200 people in a single day. Partnering with NDICA (National Diversity and Inclusion Cannabis Alliance) and the Fresno County Public Defender Office, this was a major step in our efforts to engage the community. For the last 4 months, we have continued to educate key stakeholders in the community, neighbors, and residents in close proximity to our desired retail location. We have done this by handing out flyers (see attached image below) detailing our business operations and neighborhood management policies, and by sponsoring a range of outreach activities in the local community. THE BAKERY: LOCATION PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Our core business objective at E. Olive Avenue is to create a vertically enabled cannabis business in the City of Fresno that maximizes taxes, job creation, and sustainable economic development, while exceeding the needs of our patients and customers and continuously demonstrating to our partners and communities that The Bakery by Element 7 is a business with purpose and vision. We will continue to do this by staying engaged with the community to gain their buy-in, trust, and commitment to collaborating with us. As demonstrated earlier, our immediate neighbors are supportive of our plans and want to welcome us to the Tower District business community. 6.1 Property Selection The key selection criteria for the physical location of our business premises included site-compliance measures, neighborhood compatibility, security and customer safety, extensive off-street parking, City cannabis zoning restrictions, size of the premises, and how the site fits with our holistic wellness and sustainable business vision. We have secured the following property for our commercial cannabis application: THE BAKERY: LOCATION PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1. Renovation to full exterior and interior of the property including replacement of doors and windows, securing the roof, paneling and painting, and a new inviting customer entrance to the left side of the building. 2. Replace all exterior doors and windows with industrial strength installations with upgraded locks, frosted glass for aesthetics and security. Glass would we ‘Clear Secure’ – an unbreakable and shatter-proof glass that is 300 times (300X) stronger than regular glass. Glass is 2mm thick manufactured from high-density polymers. 3. Removal of the existing building signage with replacement of a ‘The Bakery by Element 7’ signage (as approved under the Municipal Code). 4. Internal works within the property to upgrade and remodel it for compliant, legal, licensed retail cannabis operations. 5. Re-painting existing parking lines and replacing parking signage to clearly designate ADA parking spots and parking spots for all other customers. 6. Works to hide any electrics and water meters. 7. Replace existing concrete flooring with a non-slip tile for better visual aesthetics and customer safety. 8. Upgrade external lighting with modern fixtures that have continuous illumination for safety and security. 9. Landscaping works where relevant and space permitted. Landscaping will be applied only where accessible landscaping opportunities are available, using drought tolerant xeriscape low-maintenance and user-friendly plants. The plant layout and selections would be contemporary and manageable to complement the surrounding structure and architecture. 10. We have not proposed constructing any equipment enclosures externally at the building. ARTISTS IMPRESSION: THE BAKERY BY ELEMENT 7 FRESNO The new entrance would feel modern, welcoming, and light which is in line with the overall design concept of the store and The Bakery by Element 7 brand. We will bring in an industrial cleaning crew to clean the entire site prior to store opening. THE BAKERY: LOCATION PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 6.3.1 Premises (Site) Diagram: Parking, Driveways and Auxiliary Buildings The Bakery by Element 7 has included plans showing the locations of the two existing driveways on the site (rear north east corner of lot) and all parking on the site. Parking includes ADA-compliant spaces at the rear of the property. We have also secured a commitment from International Furniture to use their parking spaces as they have a large lot and minimal traffic. PARKING AT REAR OF PREMISES: 20-31 SPACES AVAILABLE (SEMI-PERMANENT TENT ERECTED DURING COVID) PARKING AT INTERNATIONAL FURNITURE: 18 SPACES AVAILABLE (WILL BE SIGN-POSTED TO INFORM PUBLIC THAT PARKING IS FOR ELEMENT 7 CUSTOMERS AND STAFF) PARKING MAP DEMONSTRATES AMPLE PARKING FOR THE BAKERY BY ELEMENT 7 WITHIN THE TOWER DISTRICT THE BAKERY: LOCATION PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Summary Selecting the optimal site for The Bakery by Element 7's cannabis operations balances a number of factors that have a significant impact on security, financial stability, site accessibility, workforce mobility, and a range of other measures that drive business performance. We are determined to ensure that we engage proactively with various departments within the City to ensure that we exceed all planning, building, and law enforcement expectations, while creating a facility that creates a great customer experience that people want to actively engage with. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 3. NEIGHBORHOOD COMPATIBILITY PLAN Commitment to the Fresno Community Element 7 is committed to being an asset to the local community. We aim to enhance the local community by being a safe, professional business that is considerate and dedicated to the advancement of the community. Element 7 strives to establish a cannabis dispensary that encourages entrepreneurship, contributes to the community’s overall health, and promotes awareness of the benefits of marijuana through education, seminars, newsletters, and so forth. Element 7 will maintain the business premises in a manner that will best eliminate potential nuisances, safety and security issues, and negative effects on the surrounding community. Element 7 is focused and conscious about its role and potential impact on the local neighborhood; as such, Element 7 intends to operate in a manner that is respectful and beneficial for the residents, visitors, and business owners in Fresno. Element 7 has consciously chosen a location that we believe is optimal within the City for safety, security, noise, light, odor, litter, traffic, parking, and pedestrian access. Over the last 6 months, Element 7 has had numerous discussions with City Staff, local residents, business owners, stakeholders, and other persons in Fresno. Our efforts to educate the City date back to 2018 when Element 7 delivered an educational packet to the City of Fresno Planning Department, attempting to demonstrate what compliant retail operations could look like in Fresno. All of these conversations led us to the former Starbucks location in the Tower District – a location that absolutely minimizes neighborhood impacts. We have a highly supportive landlord that is excited about partnering with us to build and operate a legal and licensed dispensary at the site. Our property has private off-street parking for over 40 vehicles and is easily accessed from major roads and feeder roads that serve the Tower District. There are no sensitive uses within 600 feet of the property and entering and exiting the facility presents minimal traffic or pedestrian dangers as there is sufficient access and high visibility in all directions. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 3.1. Proactively Addressing and Responding to Complaints Element 7 has already engaged over 30 locals and businesses in Fresno by conducting outreach and education in the community. The booklet shown below (12 page booklet with 4 pages inserted into application) was circulated for clear information to these stakeholders on Element 7’s business and plans for operations in Fresno. We received Letters of Support from 20 neighboring businesses including our immediate neighbors to the east and west of our location – Me-n-Eds on Tap and Mama Mia Pizzeria, along with a Letter of Support from International Furniture, one of the longest standing businesses in the City of Fresno, and the Tower District. Good Neighbor Policy Element 7 has a ‘Good Neighbor Policy’ in place to ensure that it builds a sustainable relationship and dialogue with its neighbors in Fresno and proactively address issues before they become problems for the business. We will create an outreach program to actively engage with our immediate business neighbors on both an always-available and formalized twice a year basis. We are committed to creating a strong sense of community and business health around our facility, regularly consulting and engaging with local business neighbors. This program will be enacted to all businesses within 600-feet of Element 7. Outreach efforts will include: THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. •If Element 7 is successful in its Application, a personal visit from the Licensees to each business within 21-days of being awarded a Permit. •Creating an email database of all businesses within the 600 feet radius and sending them a twice-annual email offering news of the cannabis industry AND Element 7 business, while asking for proactive feedback on better business and community relations. All businesses will be given the name and phone number of Element 7 Community Relations Manager (Local General Manager). •Inviting businesses to attend a Business Feedback and Community Management Forum twice a year which will be hosted at a suitable venue in the proximate area. Additionally, residents within 600-feet of Element 7 will also be included and will receive our Community Relations Officers contact information. •Creating a dedicated email address for priority feedback – feedback@e7ca.com and designating one of our Senior Managers as the Community Relations Officer at Element 7 (Local General Manager). •During the first year of operations, Element 7 will attend quarterly meetings with the City to discuss costs, benefits, and other community issues. Response Plan for all Complaints All neighborhood issues will have a maximum 48-hour resolution process in place with an ideal resolution timing of 24 hours. To ensure that these commitments are met, a core Emergency Response Team has been created locally including the General Manager, 2 Shift Managers and Head of Security. This team will meet weekly for 30 minutes to discuss all issues, to ensure that issues are being addressed and completed within committed timings. In the event of any new ‘emergency’, the team would be responsible for immediately identifying the threat or issue, assessing the risk to the business, and creating a command center to deal with the issue. The goal of the Emergency Response Team is to assist with the implementation of the Emergency Response Plan within the dispensary facility and to guide patrons according to the standards outlined below. The duties of the Emergency Response Team are as follows: •Be familiar with the content of the Emergency Response Plan. •Alert customers on the processes for entering, making purchases and exiting the dispensary during such Plan. •Ensure that staff and consumers are appropriately adhering to the protocols. •Report to head office with regards to any situation & agreed resolution steps. •Maintain a calm environment for employees and customers. Flow-charts have been created to address a range of issues within the business relating to neighborhood issues and the steps to resolve such issues. An example of one of these flowcharts is included to All reports will be kept on file locally and uploaded to a centralized Emergency Response Management and Tracking Platform within Element 7 head office. This platform records and tracks incidents and flags management if deadlines are approaching and incidents are not resolved (as demonstrated below). THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Centralized Emergency Response Management and Tracking Platform Platforms such as this are commonly used in a number of adjacent retail industries such as food and beverage, retail fashion, and telecommunications. This platform allows Element 7 to simplify and automate incident tracking and reporting. Responding to Complaints: Community Liaison We will designate a Community Liaison Officer (Greg Moreno) that will be available to address any complaints, feedbacks, questions, concerns, and/or suggestions from the residents, neighboring business owners, community members, and city officials. The Community Liaison Officer will be responsible for identifying opportunities for Element 7 to volunteer and be involved in the advancement and beautification of the local community. A 24-hour phone number and email will be publicly posted at the entrance of the facility, on our website, and on all receipts provided as sales are made. In addition, Greg will regularly speak at community events, council meetings, and other public forums to update the City and the community on business operations. In addition to responding to complaints related to noise, light, odor, vehicle and pedestrian traffic, Element 7 will address and manage all aspects of its business to minimize negative impact as it relates to graffiti and loitering which are discussed below. The key to proactively addressing and responding to complaints is to have platforms, and procedures in place to deal with complaints as they are received (and to have policies in place to reduce contemplated issues before they become problems). We will do this through our Community Liaison and policies discussed in this section. Open Door Policy Element 7 has an open-door policy for local neighbors and residents which drives our open engagement and communication with these groups. Element 7 will create open THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. lines of communication by ensuring contact details for the Community Liaison Officer are readily available. The Community Liaison Officer will be available to answer any questions, concerns, and/or suggestions from the residents, business owners, and City officials of the City of Fresno at all times with empathy and openness. We encourage neighbors who feel negatively affected or inquisitive about our operations to reach out to our Community Liaison Officer and discuss their concerns. Noise Management We will not have any activities or operations on site that would create excessive noise for neighboring businesses. The design of our facilities can accommodate sound- proofing measures via insulation, double-paned windows, foam matting, carpeting, acoustic ceiling tiles, etc., that will absorb excess sound produced from daily business practices onsite, preventing it from affecting neighboring businesses or residences. Noise barriers will be furnished, if necessary, in noise-sensitive areas in the form of walls, fences, and/or dense plantings of shrubs/trees, or some combination of these, with close attention paid to aesthetic visual appearance. Exterior Lighting Management Light is required to be illuminated at night for security purposes. Light will be kept to approximately 2-foot candle intensity (or as directed by City Building Officials) and will be directed to the ground rather than shining towards neighboring properties. The use of fences and landscaping will reduce any issues of glare and shine, while providing adequate security measures. Odor Control and Management Element 7 has developed a proactive integrated odor management system to eliminate cannabis odors from the immediate exterior of the Facility, and between operations within the Facility. As part of our Good Neighbor policy and internal practices, we take all odor and noise complaints very seriously. If an odor complaint is made against our facility, we will work with local officials to find the source of the odor and eliminate it. Industry standards demand that comprehensive Odor Control devices and best practices are implemented across cannabis facilities. As a leading cannabis operator, we work with 15000 Inc., an industry-specific engineering group from Santa Rosa, who are experts and leaders in designing effective and environmentally efficient odor management systems in cannabis facilities throughout California. The best practices and industry approved equipment ensures redundancies across our system that exceed State and County directives to absorb and eliminate cannabis odors. Our odor management systems prevent odor generated inside the facility from being detected outside our facility, anywhere on adjacent property, or public rights-of-way. More regarding odor control is contained within our Odor Control and Waste Management Plan. All products will arrive at our retail facility packaged and leave in compliant exit packages, fully sealed. As such, we see no issues affecting local neighbors and businesses as we have no cultivation, packaging, processing, or manufacturing as part of our cannabis application. Please see further discussion of our Odor Control Plan in section 3.3 below. Traffic Management Traffic congestion across many Cities in California is reaching intolerable levels. New building congestion is one of the major causes of traffic congestion which is why Element 7 has chosen an already built property that requires minimum construction THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. works to become operational. The optimal site chosen for our facility will have adequate parking designated specifically for our facility to allow staff, customers, and patients to safely park off the street and reduce traffic impacts. Our loading areas will be strategically located at the rear of the premises with adequate turning circles to reduce traffic congestion, and delivery vehicles for products will be minimized to small compact delivery and cargo vans. Deliveries will take place at non-peak times to further reduce traffic stress. Cannabis customers shop throughout the day – some will come in early before they start the day and others will shop after work – this constant flow of customers through the day ensures that we are not contributing to peak hour traffic issues which currently affect the City. Element 7 is prepared to work with the City to take part in any efforts it can to improve roads and minimize traffic congestion. Parking Management: Element 7 has 38-49 Dedicated Spaces Parking in the Tower District is abundant with over 250 off-street private parking spaces that currently serve large tenants including the Theatre Tower, Sequoia Brewing, Collar Tree, Tower Market and Deli, and Revue Coffee. Specifically, The Bakery by Element 7 has 38-49 dedicated off-street ‘private’ parking spaces at its disposal, as shown in the map below. Element 7 has secured a commitment from International Furniture to allow Element 7 to use its off-street parking lot exclusively for additional off-street parking for staff, customers and patients. These spaces will be sign-posted for The Bakery by Element 7, by James Minas, the owner of International Furniture. Element 7 will ensure that all customers are made aware of this arrangement through notices in-store and on entry to the dispensary for all new customers. Further, there are over 170 on-street ‘unmetered’ parking spaces on E Olive Avenue, N Lucerne Lane, N Linden Avenue, N Broadway St and N Yosemite Avenue – these parking spaces serve 36 homes which still leaves an abundance of parking in close proximity to The Bakery by Element 7. All dedicated off-street parking spaces will be clearly marked and sign-posted for the convenience of Element 7 shoppers and to ensure that adjacent businesses are not THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. adversely impacted. Safety for customers, staff, and neighbors are always Element 7’s primary concern, and the following policies will be enforced: • Any damaged, deficient, lighting fixtures or unlit areas will be immediately addressed • Parking rules concerning hours of operation and signs prohibiting loitering or trespassing will be posted, with a telephone number provided to report any suspicious activity • All new customers will be handed a ‘where to park’ flyer by The Bakery by Element 7 staff on arrival at the dispensary for the first time – this will help guide patients and customers where to park. • A safe waiting area for passenger pick-up will be designated • 24-hour surveillance will be provided for the entire perimeter of the premises Cannabis customers typically spend 10 minutes in-store as they shop for cannabis. Assuming 100% of our customers drive to The Bakery by Element 7 and require parking and taking into account our highest estimate of 45 customers in an hour and adding a +50% load to that, we would need parking for up to 70 cars an hour. Even if customers spent 3X as long in our store as we estimate (30 minutes), and 100% of our customers drove to our store, we would still only require parking for 35 vehicles an hour, yet we have 38-49 dedicated off-street parking spaces for The Bakery by Element 7. In summary, we believe that we have more than enough parking for our operations and would present no to minimal burden on parking infrastructure within the Tower District. In addition, the site presents excellent access from nearby major roads and freeways servicing the Fresno community which will create a more sustainable, and economically beneficial cannabis business for Element 7 and the City of Fresno (see image below). Access Roads that Serve The Bakery by Element 7 Fresno Furthermore, the property is well served by public transport with five (5) bus stops within walking distance of the proposed location. The property is also well served by Uber and Lyft with drivers highly familiar with the district and former Starbucks location. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Public Transport Options that Serve The Bakery by Element 7 Fresno Pedestrians The property has easy pedestrian access with well-maintained pavement for pedestrian safety, as demonstrated below. Pedestrian Access on E. Olive Avenue Mitigation Plan: Integration of Safety and Security Measures into the Design The integration of our safety and security features and enhancements is managed and implemented through careful planning, a close working relationship between our security, design, and retail teams, and collaboration with City officials, particularly local law enforcement and fire safety. Many of the security features we implement are done so with no visibility to the public, and include: • Man-Trap Lobby: Element 7 has designed its lobby so that a glass lobby separates the front door of the dispensary from the retail floor. This mitigates the risk of anyone attempting to enter the facility without an ID Card or that may be under the age of 21 (or 18 years of age for medical patients). • Bullet Resistant Acrylic Security Glass: We install bullet resistant acrylic security glass at key points within the facility including all external windows, and within the main security lobby that separates the front door from the retail facility THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. – this glass is secure, safe, and still allows us to create an inviting retail environment. This mitigates theft and break-in. • Roll-Down Gate: As the facility is locked at night, a discreet clear polycarbonate gate will roll-down splitting the lobby in half. This gate is designed to slow any intruder that might be able to break in through the front door at night. This mitigates theft and break-in. • Fortified Internal and External Walls: As Element 7 remodels and renovates the premises, a number of fire safety and security installations are included such as installing steel sheets between studs (which are also built closer together) and drywall so that intruders are heavily restricted from breaking into any internal rooms within the facility. In addition, we use a thicker drywall that improves security and has a higher fire rating and place the metal sheets on both the walls and ceilings to prevent entry from the roof. This mitigates theft and break-in. • Industrial Grade Doors, Hinges, Frames and Locks: All internal doors have a 2-factor bio-scan and swipe card mechanism. All locks, hinges, and frames are industrial grade for added strength and security. This mitigates theft and break-in. • Discreet Detectors and Cameras: Our building plans include smoke and gas detectors; fire safety warning and monitoring systems, and CCTV cameras discreetly placed in the corners of rooms which monitor all activities and movements within the premises, with motion detection on the roof and fence lines with feeds of all security back to a central security room & 3rd party providers. This mitigates theft and break-in and creates a more secure neighborhood and local community. • Panic Buttons: Panic buttons shall be discreetly placed and hidden from public view within the lobby, retail counters, loading and unloading zone, storage and office. This mitigates theft and break-in. • Continuous Monitoring: The facility is monitored 24/7 by our Bosch Integrated Security System which continuously tracks all movements within the facility. This mitigates theft and break-in. 3.2. Avoiding Nuisances for Neighbors and the Surrounding Community The key to avoiding nuisances and becoming a problem in the general neighborhood is effective planning, ongoing communication and engagement with neighbors, and having appropriate policies in place to deal with issues in a timely and effective manner. Previously discussed ideas that seek to avoid being a nuisance include: • Proactive and Early Engagement and Education – Element 7 has already engaged a number of businesses in the local community by handing out Education Booklets to over 30 local businesses and residents. • Good Neighbor Policy – Having this policy in place enables us to proactively address issues and risks before they become problems. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. • 600 Feet Outreach Program – This program is designed to introduce and commence engagement with local residents and businesses. By having an open dialogue, we are able to understand issues and concerns from everyone’s point of view, and then address those issues. • Local Community Relations Manager and Officials – Greg Moreno has decades of experience in the Central Valley and in relevant jobs that helps him identify issues and respond to concerns. Greg served in the US Marine Corps for 21 years and is an expert on conflict resolution. Amber has worked in Human Resources for over 15 years. • Emergency Response Team – This team are equipped with the policies, procedures, and life skills to deal with situations and issues that may arise. • Clear Site Policies and Procedures – As demonstrated above, we already have a viewpoint and clear processes in place for managing traffic, pedestrian safety, noise, odor, lighting, and a range of security and safety issues. We have expert advisors on the Element 7 team that include fire safety, environmental, security, waste management, and a range of other functions to ensure that we build a local business that minimizes its nuisances on the community. Nuisance Management Element 7 will enact the following practices to ensure a “good-neighborhood policy” with prospective neighborhood business establishments and communities: • Provide a pleasing storefront absent of offensive signs or symbols such as cannabis names and logos. • Operate a well-run and clean store staffed with well-trained industry professionals that are passionate about their job and find purpose in what they do each day at work. • Hire on-site security personnel to ensure the safety of customers and employees is maintained at all times of the day and across all aspects of business operations. • Ensure the placement of best-in-class security systems, lighting, fencing, alarms, systems and policies to promote a safe environment for both employees and customers. • Maintain positive relations with local police departments, municipalities, and elected officials to ensure compliance with local laws and continuous communication to proactively manage issues. • Provide a 24/7 telephone line, responsive website, and email dedicated to receiving and responding to community issues immediately and without delay. In addition to the earlier neighborhood issues discussed and identified, we have provided commentary below with regards to graffiti and loitering. Graffiti We will ensure that any debris, graffiti, and unappealing or unsafe aspects of the building will be immediately addressed. Any graffiti shall be removed and painted over to match the color of the surface to which it is applied within 24 hours of its occurrence. Further, any unsightly appearances will be quickly addressed and remedied. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Loitering To prevent any other possible nuisances and security issues, we will prohibit loitering within twenty (20) feet of the premises, and “No Loitering” signs will be posted at strategic locations around the property. A security guard will be present on the premises to monitor the perimeter of the facility, control loitering, and site access. A state-of-the-art security system with strategically placed, hi-tech cameras will keep a watchful eye over the property 24/7, and spaces that may encourage loiterers or vagrants to “camp out” will be refurbished or eliminated. Signage Notices Used at the Facility Signage is used extensively within the facility to provide direction to staff, customers, and patients, with a view to creating the best run facility possible. This approach and commitment further ensures local neighbors are not disrupted and the business does not become a nuisance. All signage at the site will be directive and displayed prominently within the business in measurements of not less than 8 x 10 inches in a minimum of 24-point font, stating: 1. “The sale or diversion of cannabis or cannabis products without a license issued by the City of Fresno is a violation of State law and the Fresno Municipal Code.” This sign will be displayed in the lobby of the business for employees, partners and contractors. 2. “Distribution to Persons Under 21 years of age is Strictly Prohibited (unless aged 18 or older and holding a valid Physicians Recommendation). Transportation of Cannabis or Cannabis Products across State lines is Strictly Prohibited.” This will be posted in the Reception Area and immediately visible upon entering the Main Entrance. 3. “No one under the age of twenty-one will be allowed on the premises (unless aged 18 or older and holding a valid Physicians Recommendation).” This sign will be displayed at all building entrances. 4. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from Element 7 is a crime and can lead to arrest.” This sign will be displayed in the lobby of the business for employees, partners and contractors. 5. “These premises are continually monitored by CCTV cameras.” This sign will be displayed at all building entrances. 6. “Loitering is strictly prohibited.” This sign will be displayed at all building entrances. 7. “The Effects of Cannabis Products can vary from person to person, and it can take as long as two hours to feel the effects of some cannabis-infused products. Carefully review the portion size information and warnings contained on the product packaging before consuming.” Will be displayed on the Retail Floor Area for consumer and patient safety and education purposes. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 8. “Community Liaison: Greg Moreno can be reached 24/7 at (559) 469 7882 or Fresno@e7ca.com” 9. A copy of Element 7 Fresno’s BCC issued Storefront Retailer license, and Hours of Operation, which will be displayed within plain sight of the Public in compliance with Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code. 10. Signage that reminds our staff (and suppliers) that the transport of cannabis interstate is a Federal offence. This signage is designed to ensure that employees and contractors are managed and aware of the rules and regulations of the cannabis industry. Signage will be delivered in both English and Spanish versions. 3.3. Odor Mitigation Practices Element 7 has developed a proactive integrated odor management system to eliminate cannabis odors from the immediate exterior of the Facility, and between operations within the Facility. As part of our Good Neighbor policy and internal practices, we take THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. all odor and noise complaints very seriously. If an odor complaint is made against our facility, we will work with local officials to find the source of the odor and eliminate it. Industry standards demand that comprehensive Odor Control devices and best practices are implemented across cannabis facilities. As a leading cannabis operator, we work with 15000 Inc., an industry-specific engineering group from Santa Rosa, who are experts and leaders in designing effective and environmentally efficient odor management systems in cannabis facilities throughout California. The best practices and industry approved equipment ensures redundancies across our system that exceed State and County directives to absorb and eliminate cannabis odors. Our odor and noise management systems prevent odor generated inside the facility from being detected outside our facility, anywhere on adjacent property, or public rights-of-way. Key aspects of our odor management plan include (as discussed below in detail): • Continuous use of 15000 Inc. working collaboratively with the Element 7 team and our odor mitigation / HVAC consultant, Bradley Bernard • A range of hardware installations in the facility including Cleanleaf CL2500 HVAC with HEPA Filters, MERV-13 Grade Filters, carbon scrubbers, and electrostatic air cleaners • Air-quality enhancing plants • Maintenance schedules that adhere to manufacturer specifications • Daily odor inspection program • Nasal Ranger Field Olfactometer • Odor Management hotline 3.4 Potential Sources of Odor and Odor Emitting Activities Potential sources of odor at Element 7 Fresno will come from cannabinoids, flavonoids, and terpenes present in the cannabis products. That said, there will be no cultivation, nursery, manufacturing, packaging, processing, handling, or distribution operations at the site which are the main causes of cannabis odor. All products will be received packaged and sealed and will be sold the same way – in this instance, odor will be almost non-existent except for damaged or broken products (disposed of immediately and securely) or from sample flower jars that may be opened for inspection. However, we are mindful that the cannabis and cannabis products present on our premise can be a source of cannabis odor omissions; specifically, the storage of cannabis on our premises may emit a cannabis odor inside of your facility. Element 7 will install various odor control devices and employ various techniques to mitigate and remediate any odor emit. In all instances, there will be no consumption of cannabis on site of any form. A fully integrated odor management plan has been developed to deal with all odors, as described below. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 3.5 Odor Control Devices and Techniques A range of processes and systems are used to eliminate any potential odor at the site, ensuring that nothing is detectable outside the licensed premises. Cleanleaf CL2500 HVAC with HEPA Filters (ACS) Element 7 utilizes HVACs with HEPA filters, six to twelve pocket bag filters, activated carbon inserts, and an ultra-quiet blower that creates negative pressure and does not produce more than 62dBa. There are four filtering layers with the CL2500 that provides quadruple redundancies to ensure that odor generated at the facility does not leak into its external surrounding areas and cause an odor nuisance. This comprehensive and environmentally efficient system captures airborne threats that include mold, fungi, spores, bacteria, pollen, pests, insects, volatile organic compounds (VOCs) and odors. The system requires 115V 60Hz power and produces just 62 dBa (decibels) of sound, which is equivalent to a conversation in a restaurant, office background music, or an air conditioning unit at 100 feet. The system itself is composed of the following: 1. ACFM Media Filtration with Medical Grade HEPA Filter 2. Silencer that reduces noise by 10-12 decibels 3. Pleated Fiber Pre-Filters 4. 6 or 12 Pocket bag Filter 5. 0.3 Micron HEPA Filter Cleanleaf CL2500 HVAC with HEPA Filters Filter One: MERV-13 Grade Filters The true measure of any air purifier’s efficiency is the MERV rating assigned to it. This is the Minimum Efficiency Reporting Value, and this value is indicative of the technology’s ability to trap particles in a variety of sizes. The CL2500 uses MERV-13 Filters. Anything above a 13 MERV Rating is considered to be a High-Efficiency Particulate Arrestance (HEPA) Filter, often used for hospitals and scientific research lab applications. A filter with a MERV rating of 13 captures particles greater than 0.3 micrometers. This includes bacteria, droplets from sneezing, smoke, and most other sources of pollution. This level of filtration is used in patient and surgery areas of hospitals. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. Filter Two: Six (6) to twelve (12) pocket, 95% bag filter The second filter, a six (6) to twelve (12) pocket bag filter captures mold, mildew and pollen in the air. Filter Three: Activated Carbon Inserts The third filter of the CL2500 is a polarized media filter with activated carbon insert pads that provide medical-grade air quality throughout the Facility. Polarized media filters utilize electromagnetic polarization to maximize the collection of dust and pollutants in the air, which increases the effectiveness of air filtration and odor control. The carbon pads provide an additional layer of odor removal, providing maximum efficiency and benefit. Upgrading filters are relatively inexpensive, and the costs are heavily offset by the reduced labor and cost of replacing those filters less frequently. These technologies are utilized by hospitals, laboratories and other clean facilities around the world and are an excellent option for cannabis facilities. Filter Four: Ultra-Quiet Blower The fourth filter of the CL2500 is an ultra-quiet blower motor that creates negative pressure and cycles the air 10 times every hour. The airflow is straight through and is released a designated exit valve at the rear of the facility. The blower produces only 62 dBas, which is fairly quiet- producing the same amount of noise as a conversation in a restaurant, office background music, or an air-conditioner 100 feet away, as demonstrated in the graph below. Noise Comparison for Element 7 HVAC Units Carbon Scrubbers Element 7 will also be deploying activated carbon scrubbers in storage rooms where the highest concentration of products is located. These types of filters use pelletized granule carbon to remove odor, dust, and pollutants from the air and can be used as a standing unit in a space or as an exhaust filter. Just like the carbon in the air filters mentioned previously, these pellets remove dust, odor, and other pollutants through the air as it passes through the filter. Electrostatic Air Cleaners Element 7 will install Electrostatic air cleaners, which are highly efficient filtration devices that use electrostatic attraction to remove fine particulate matter such as dust and cigarette smoke from the air. Electrostatic air cleaners ionize (or electrically charge) particles as incoming air is drawn over an electronic cell. The charged particles are then attracted to and trapped by a series of flat collector plates that are oppositely charged, with the particles literally 'sticking' to the collection plates until they are manually removed. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. 1. Maintain all scheduled maintenance, repairs and performance assessments and inspections recommended by equipment and system manufacturers; 2. Perform daily visual inspections and report findings; and 3. Replace items such as filters monthly, or as needed if replacement must be done sooner. Weekly Monitoring Schedule Element 7 will conduct (or arrange 3rd party vendors to conduct) inspections of the following, followed by formal log and full reports: - Perimeter fences, doors, lighting, surveillance cameras and landscaping; - Exterior and interior door operability and security; - Exterior landscaping - debris inspection and removal; - Intrusion Detection System and communication inspection; - Security surveillance system inspections- cameras, software, monitors and operating systems; - Security camera angles, cleanliness and operability; - Key logs and ID Badge reports; - Signage cleanliness and visibility; - Back-up power systems and generator; - Verify license status of preferred vendors and new vendors and contractors; - Team meeting addressing security policies and procedures, reports, updates and input. As required, the General Manager will schedule and manage one-off maintenance tasks and scheduled tasks – all works will be logged in a Maintenance Schedule on a platform called Facilio which is an all-in-one property management and maintenance platform (image below). Facilio enables teams to collaborate on property maintenance with scheduled maintenance alarms and reminders sent to team members so that all work can be tracked for efficiency and performance. THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. may be coming from. Weather conditions that must be taken into consideration include:1. Humidity; and 2. Wind Direction and Speed. Odor detected by the olfactometer should be described in a consistent manner with guidance using the accompanying Descriptor Wheel. Olfactory tests are recommended to be taken several times to ensure that 1. Odor is present; and 2. The detected odor can be consistently described. St. Croix Sensory, Inc. currently offers an Odor School Program which our Chief Compliance Officer and the facility’s General Manager will attend and complete to ensure that accurate and effective readings using the Olfactometer are consistently taken during daily inspections and when addressing odor complaints. Odor Management Hotline As part of Element 7’s community and outreach programs, an odor management hotline will be set-up to receive and process odor complaints. Community members and neighbors will receive Company-issued communication twice annually, reminding them of the Odor Management Hotline – a number they can call for any complaints from an Element 7 facility. Complaints will be handled in the following manner: 1. All complaints will be immediately logged into the Company’s system and the Facility General Manager, Chief Compliance Officer and CEO of Element 7 will be notified immediately. Information will include: (a) Name, address, and telephone number of a complainant, which information shall be maintained as confidential to the maximum extent allowed by law; (b) Time and date of the complaint, whether that complaint originated via the hotline or a direct contract between the complainant and County staff; and a (c) Description of the odor nuisance, including the estimated location or source of the odor, and if possible, noting the prevailing wind and/or weather conditions observed. 2. The General Manager will be responsible for using the Nasal Ranger Field Olfactometer device to measure the local DT Ratio as complaints are made. Tests will be conducted: (c) At the location where the complaint originated, (d) At a property boundary accessible from public right-of-way, and (e) On the property where the odor is originating from. 3. In the event that more than three (3) separate complaints are made regarding a facility within one week, Element 7’s engaged HVAC specialists and CL2500 THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. All staff will undergo 2-hours of odor management training as part of the 80-hour staff training program. The odor management training module teaches staff how to detect cannabis odors, how to identify the source of the odors, corrective measures to fix odor problems, incident reporting measures, use of the field ranger, and basic maintenance of filters and other odor management hardware. 3.7 Waste Management As a commercial cannabis retail operator, we do not envision having any significant ‘sensitive cannabis waste products’ to dispose of. In the event that products were required to be destroyed, our preferred partner is MediWaste, a company that has over 50-years of medical waste disposal experience. MediWaste have a full cannabis waste disposal service that leverages the same practices and principles of medical waste. MediWaste has the following permits in place to handle such waste: DTSC Haz Permit #6300 Motor Carrier Permit #CA 0446205 CHP Hazardous Materials Transport License #228307 RCRA ID # CAR000265140 Weigh Masters License #014137 Products would be placed into a Secured Waste Receptacle provided by MediWaste held within the secured storage room within the facility which is a secured zone and only accessible by the General Manager, Inventory Manager and inventory department team members, with all destroyed products tracked into our inventory management system. This secure room will be under 24-hour surveillance and the MediWaste Secured Waste Receptacles have a lock system at the top of the waste bin so that products can only be disposed of, with no retrieval possible. Any ‘disposal’ would require two staff to be present – one responsible for the disposal and one to responsible for documenting the disposal into the inventory management system. MediWaste staff would visit the site as required and remove the Secured Waste Receptacle into their vehicle for full and complete compliant destruction at their facilities. Secured Waste Receptacles are able to be wheeled out of our secured facility to the MediWaste vehicle under supervision of a security guard and an inventory department staff member. All cannabis waste generated at the facility will be rendered useless and unrecognizable within the secure cannabis waste storage area prior to its disposal in the MediWaste Bins. All rendering and disposal will be done within the unobstructed view of the security camera in the secure storage room. We will render all cannabis waste unusable and unrecognizable prior to disposal, this includes, at a minimum, removing or separating the cannabis goods from any packaging or container. Cannabis waste will be rendered unusable and unrecognizable by grinding and incorporating it with other ground, “non-consumable,” “non-hazardous” materials (soil, plastic pots, netting, spoiled food waste, cardboard, etc.) The resulting THE BAKERY: NEIGHBORHOOD COMPATABILITY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information business structure and trade secrets. mixture must be at least 51% non-marijuana waste by volume. The rendering and disposal will be recorded in the track and trace system the following additional information: • Name and type of the cannabis goods. • Unique identifier of the cannabis goods. • Amount of the cannabis goods, by weight or count, and total wholesale cost of the cannabis goods. • Date and time. • The name of the employee(s) performing and present at the destruction or disposal. • The reason for destruction and disposal. • The entity disposing of the cannabis waste. Once the cannabis waste is rendered unusable and unrecognizable, the cannabis waste will be placed into the locked MediWaste Bins which will remain storage in the secure area until MediWaste is contacted to haul the waste to their facility. Summary We all have good intentions, but as business owners, we get laser-focused on the day- to-day operations and don't find the time to introduce ourselves around the neighborhood. Business owners operating in the same city and neighborhoods face similar issues. From city ordinances and road closures, to taxes and rent values, business owners have a big say in what happens in their own communities. When owners can come together on the issues that affect them all, regardless of the industry, we all win. Effective neighborhood management comes down to planning, risk management, and continuous engagement with the community, staff, and customers. As demonstrated by our efforts to engage locals and educate local businesses and neighbors on our efforts to be a collaborative business partner, Element 7 is well positioned to operate a facility with minimal, if any, neighborhood issues or concerns. We believe that the site we have selected at E. Olive Avenue is the most secure, safest (for pedestrians and vehicles), strategic (location and proximity to all Fresno residents), and accessible location that a cannabis dispensary could be built and operated in Fresno. Locals agree and dozens of residents from the community have enthusiastically supported our plans by signing a pledge of support. Many cited alternate properties in the City as being problematic for traffic, parking, and pedestrian safety and are excited to access a cannabis dispensary in a location that is convenient with a strong plan for safety and security. We are excited to meaningfully contribute to the economic development of Fresno in 2021 and beyond. Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Please do not hesitate to contact me further for any clarification on our finances or demonstration of our capital ability at any time. Kind regards, Eric Greenberg Chief Financial Officer Element 7 Inc. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. 4. SAFETY PLAN Safety & Security Features at The Bakery by The Bakery by Element 7 Fort Bragg 4.1 Fire, Medical, and Hazardous Situations Safety Plan The Bakery by Element 7 is committed to ensuring that employees are provided the materials, manuals, and regular staff training sessions that clearly outline safety procedures as well as potential risks associated with cannabis products. The Bakery by Element 7 complies with all laws and policies set forth by local jurisdictions and the Occupational Safety and Health Administration (OSHA), respectively, concerning the production, sale, and distribution of our facilities’ cannabis products in the local community. This Safety Plan has been prepared by 3 professional fire safety experts and architects: - Brian Uthe who is the Building Inspector at the University of Arizona, Chairman of the Arizona Building Officials, and is a former Plans Examiner and Fire Inspector. - Larry Frogoso who is a retired Battalion Chief and Division Chief of the Tracy Fire Department in California. Larry began his fire-fighting career in 1974 and serves as an Advisor to The Bakery by Element 7. - Mohsen Gouneili who is a licensed architect in the State of California with over 30 years of architectural experience across California and North America. In addition, The Bakery by Element 7 has incorporated inputs from its head of Human Resources (Taylor Munoz), and Chief Security Officer (Corey English) in developing this plan, as both have valuable inputs into the design of our facilities for the health, safety, and welfare of our customers, patients, and employees. Facility Safety Features The Facility has many safety features to protect employees, patients, customers, and the physical building itself, including the following: THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Continuous Connection with Local Law Enforcement: The Los Angeles Police Department’s Small Business Crime Prevention website page states, “Helping small businesses reduce and prevent crime must be a community effort,” which signifies the strong relationship of mutual trust that must exist between police agencies and the communities they serve. In keeping with this trust, The Bakery by Element 7 has selected a site that is 0.9 miles from Fresno Police Department (SCCCD) and 1.21 miles from Fresno Fire Station No. 9 – both of which are easily accessed via major roads connecting the site with each facility. NEAREST POLICE STATION NEAREST FIRE STATION • Alarm Systems and Restricted Door Entry: The Bakery by Element 7 will install a State-Certified security system to manage the premises, with all doors to have biometric scanners and swipe card access (2-factor authentication). Doors will feature deadbolt locks to prevent forced entry, and secure, shielded THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. padlocks will be installed on gates, garages, sheds, exterior facility rooms, etc. Panic / duress buttons are installed in the Facility in the event of an armed robbery or other security breach and secured secondary exit ways designed for emergency use only will provide safe departure from the building. All windows shall be secured against entry from the outside and will feature reinforced, burglar-resistant, double-paned glass. Exterior doors shall be properly equipped with panic hardware as required by all applicable state codes to prevent unauthorized entry (as shown in the first image of this Safety section). • Building Standards: As The Bakery by Element 7 remodels and renovates the premises, a number of fire safety and security installations are included such as installing steel sheets between studs and drywall so that intruders are heavily restricted from movements within the facility; smoke and gas detectors; fire safety warning and monitoring systems, and fire-retardant building materials. • Video Surveillance: All video surveillance will provide high-quality, digital images of any suspicious persons or activities, and be monitored by security personnel from the Central Security Control Room. Security personnel will have direct contact lines to local law enforcement authorities to report any suspicious activities and/or emergency situations. All Video Monitoring will have a direct live feed to the Fresno Police Department at all times (if required). • Lighting: The front and rear of the Facility will be equipped with security lighting as approved by the City. The entrance and rear of building lighting shall be continuously illuminated. Each light shall provide at least 1.0 foot candle intensity (or other intensity as directed by City Building Officials). Additionally, the minimum lighting level of one foot-candle shall be provided at building entrances and in parking lot areas. All lighting shall be fully shielded, downward casting and not spilling over onto structures, other properties or the night sky. Exterior lighting on the premises shall be balanced to complement the security/surveillance systems to ensure all areas of the premises are visible and shall provide increased lighting at all entrances to the premises. The lighting required shall be turned on from dusk to dawn. • Exits and Exit Signage: The number of exits at the Facility shall be in accordance with Table 1006.2.1 and Table 1006.3.2 (2) and Section 1017.2 of the International Fire Code (IFC). • Motion Detection System: In a study of convicted burglars, the University of North Carolina at Charlotte Department of Criminal Justice & Criminology found “that 24% of them would consider the presence of lighting” when choosing a home or business target, adding, “Motion detectors are definitely a factor that may help prevent a burglary.” The Bakery by Element 7 recognizes the heightened security that motion detectors provide and will install Motion Detection sensors on the Roof of the Building which shall activate an Alarm if triggered. These will be appropriately installed by a State-Licensed Security firm and tested every 3 months. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Security Guards: All security guards employed at The Bakery by Element 7 will be licensed by the Bureau of Security and Investigative Services (BSIS) with a valid Department of Consumer Affairs Security Guard License (‘Security Guard Card’) which is obtained by completing the annual pre-licensing course. A security patrol will monitor the facility after hours as noted in the Security Plan. • Continuous Staff Training and Maintenance: This will be described in far greater detail below – staff training, and continuous maintenance is the #1 prevention for fire safety issues and The Bakery by Element 7 pays strict attention to both. Fire Protection Plan Employees must be fully aware of fire risks and take steps to prevent any chance of a fire emergency at the facility. To provide the highest level of safety against any threat of fire at the dispensary, The Bakery by Element 7 will include the following in its fire protection efforts: • Emergency Action Plan: The Emergency Action Plan will outline any and all potential fire hazards throughout the business structure — which may include combustible items, flammable liquids, and/or heat producing equipment — and include necessary procedures to prevent a fire emergency. Following OSHA mandates, the Plan will map out exit routes to take in case of emergency and provide employees critical training on procedures such as fire drills and evacuation practices. • Proper Good-Housekeeping Techniques: Facilities will be maintained at all times to reduce hazards that could result in a fire emergency, including the cleanup of flammable materials, disposal of trash in metal containers with tightly fitting lids, and the clearance of corridors and emergency exits for any need for emergency exit. • Provision of Fire Protection Equipment: Fire sprinklers, portable fire extinguishers, fire alarms, automated fire suppression systems, and emergency alarms and lighting will be installed to better equip employees in fire emergency/evacuation situations. • Fire Protection Equipment Maintenance and Testing: Routine maintenance and testing of all fire protection equipment by licensed and certified fire protection personnel will be scheduled regularly in addition to any needed repairs or replacements for existing equipment. In accordance with the California Fire Code, a plan that covers the following will be implemented in close consultation with the Fresno Fire Department: 1. The hazard of fire and explosion arising from the storage, handling or use of structures, materials or devices (as a cannabis retailer with no manufacturing on site, we expect this threat to be minimal). THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. 2. Conditions hazardous to life, property or public welfare in the occupancy of structures or premises. 3. Fire hazards in the structure or on the premises from occupancy or operation. 4. Matters related to the construction, extension, repair, alteration or removal of fire suppression or alarm systems. 5. Conditions affecting the safety of firefighters and emergency responders during emergency operations (a Knox Box is provided for easy access). Our fixed fire extinguishing systems comply with the National Fire Protection Standards: § NFPA 12, Standard on Carbon Dioxide Extinguishing Systems § NFPA 12A, Standard on Halon 1301 Fire Extinguishing Systems § NFPA 17, Standard for Dry Chemical Extinguishing Systems § NFPA 17A, Standard for Wet Chemical Extinguishing Systems § NFPA 750, Standard on Water Mist Fire Protection Systems § NFPA 2001, Standard on Clean Agent Fire Extinguishing Systems Fires, Hazardous Material and Inhalation Threat Management The entire facility will comply with all local fire code requirements. A fire inspection will occur at least once per year by the local fire department in conjunction with Fresno Fire Department. In addition, Larry Frogoso will inspect the facility at least twice per year issuing The Bakery by Element 7 with an independent audit. General Fire Code Requirements • An approved Knox Box (key box) shall be provided and installed by The Bakery by Element 7 in a location approved by the local Fire Department and Police Department. • The Bakery by Element 7 shall obtain all required Fire Department permits and keep them on site and available for inspection per the California Fire Code, Section 105. • UL listed and appropriately sized and type of fire extinguishers shall be located throughout the facility as required by the California Fire Code and local amendments. • Inform fire-fighters that they should wear appropriate protective equipment and self-contained breathing apparatus (SCBA) with a full facepiece operated in positive pressure mode. Identification of Fire Hazards The following is a list of potential fire hazards and their associated work areas: Work Areas Fire Hazards All rooms Paper, electrical Storerooms Paper, plastic, flammable and combustible liquids Break room Paper, plastic, electrical appliances Retail Area Cannabis products, paper, plastic, furniture & fixtures THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Housekeeping Practices The following are the fire prevention practices associated with fire hazards identified above: Type of Fire Hazard Fire Prevention Practices Paper Wastepaper cans emptied daily Plastic Waste plastic discarded daily Electrical Quarterly inspections of outlets, multi strips, cubicles, and work areas Flammable liquids Store liquids in approved flammable storage cabinet Electrical appliances Quarterly inspections of appliances; employees trained to inspect appliances prior to use Safe Code of Work Practices • Flammables, including data sheets, books, rags, clothing, flammable liquids or trash shall not be placed or stored near heaters or their vents, any electrical appliance, or other potential sources of ignition. • Sources of actual or potential heat such as hot plates or electric coffee pots shall not be placed near flammable materials. Portable space heaters and candles are prohibited. • Care must be taken not to block potential escape routes, particularly with flammable materials. • Each individual is personally responsible for assuring that extension cords and multiple plugs are in good condition. Cords that are missing the grounding prong, are spliced together, or that are missing their protective sheath shall not be used. Employee Response to Fire Situations As previously outlined, employees’ response to a fire emergency is delineated in the Emergency Action Plan. Designated and trained employees may attempt to extinguish incipient fires with fire extinguishers after sounding the alarm to alert other employees. Employee Safety Education Safety policies detail procedures for ensuring the implementation of best safety practices at all times and in accordance with Occupational Safety and Health Administration (OSHA) guidelines throughout all facilities and operations. The OSHA safety and health framework is meant to “provide employers, workers, and worker representatives with a sound, flexible method for addressing safety and health issues in diverse workplaces...[and] should include the following elements within the framework: management leadership, worker participation, hazard identification and assessment, hazard prevention and control, education and training, and program evaluation and improvement.” These systematic guidelines established by OSHA will be strictly enforced, as the safety of employees and the public is the company’s foremost business consideration. All employees will comply with all applicable safety regulations as listed in the SOPs THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. as a condition of employment. Safety training will be provided as often as necessary and annually at a minimum. Our goal is to keep our people and our patients are safe. Our training will help our employees: • Recognize safety hazards and correct them • Avoid incidents and near-misses to prevent injuries • Understand safety best practices and expectations Building a Safety Culture At The Bakery by Element 7, the prevention of accidents and injuries takes precedence over expedience. In the conduct of the company’s business, every attempt will be made to prevent accidents from occurring. The Bakery by Element 7 requires that its employees, as a condition of employment, comply with all applicable safety policies and procedures. The designated Safety Coordinator (local hire to be appointed) is the primary contact for safety-related matters. All employees will receive an orientation of the safety policy and rules upon initial employment and are required to bring to the attention of their manager or the Safety Coordinator any unsafe or non-compliant conditions or practices. Managers must communicate these concerns to the Safety Coordinator, who will respond to reports within twenty-four hours. Safety training will be provided as often as necessary and annually at a minimum. Senior management will be actively involved with employees in establishing and maintaining an effective safety program. The General Manager and Safety Coordinator and other members of the management team will participate with all retailer employees in an ongoing safety program. The CEO in coordination with managers must: • Provide a safe workplace. • Facilitate monthly safety meetings. • Provide safety and health education and training. • Annually review and update workplace safety rules. All employees must: • Report all unsafe conditions. • Immediately report all work-related injuries. • Wear the required personal protective equipment. • Abide by the organization’s safety rules at all times. Safety Coordinator Responsibilities It is the policy of The Bakery by Element 7 to assign a Safety Coordinator to oversee all safety related matters and chair the company’s safety committee. The CEO must designate a Safety Coordinator for the company who will be the primary contact for safety-related matters. We anticipate this person being a Shift Manager or BudTender who will undertake this additional safety training or has a background in such training already. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Employee Reporting All employees will receive an orientation to this company’s safety rules upon initial employment and must bring to the attention of to their manager and/or the Safety Coordinator any unsafe conditions or practices. Managers will communicate these concerns to the Safety Coordinator, who will respond to these concerns within twenty- four hours. Inspections The Safety Coordinator or his or her designee must inspect the company’s facility quarterly to identify potential hazards using the OSHA Self-Inspection Checklist. A responsible party must be assigned to correct all hazards as soon as possible. If the hazard is extreme, the inspector in his or her discretion may contact the Safety Coordinator to terminate operations until corrected. Per OSHA recommendations, inspections must cover: • Processing, Receiving, Shipping and Storage - equipment, job planning, layout, heights, floor loads, projection of materials, material handling and storage methods, training for material handling equipment. • Building and Grounds Conditions - floors, walls, ceilings, exits, stairs, walkways, ramps, platforms, driveways, aisles. Housekeeping Program - waste disposal, tools, objects, materials, leakage and spillage, cleaning methods, schedules, work areas, remote areas, storage areas. • Electricity - equipment, switches, breakers, fuses, switch-boxes, junctions, special fixtures, circuits, insulation, extensions, tools, motors, grounding, national electric code compliance. Lighting - type, intensity, controls, conditions, diffusion, location, glare and shadow control. • Heating and Ventilation - type, effectiveness, temperature, humidity, controls, natural and artificial ventilation and exhausting. • Machinery - points of operation, flywheels, gears, shafts, pulleys, key ways, belts, couplings, sprockets, chains, frames, controls, lighting for tools and equipment, brakes, exhausting, feeding, oiling, adjusting, maintenance, lockout/tagout, grounding, workspace, location, purchasing standards. • Personnel - training, including hazard identification training; experience; methods of checking machines before use; type of clothing; PPE; use of guards; tool storage; work practices; methods for cleaning, oiling, or adjusting machinery. • Fire Prevention - extinguishers, alarms, sprinklers, smoking rules, exits, personnel assigned, separation of flammable materials and dangerous operations, explosion-proof fixtures in hazardous locations, waste disposal and training of personnel. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Maintenance - provide regular and preventive maintenance on all equipment used at the worksite, recording all work performed on the machinery and by training personnel on the proper care and servicing of the equipment. • PPE - type, size, maintenance, repair, age, storage, assignment of responsibility, purchasing methods, standards observed, training in care and use, rules of use, method of assignment. • Transportation - motor vehicle safety, seat belts, vehicle maintenance, safe driver programs. • First Aid Program/Supplies - medical care facilities locations, posted emergency phone numbers, accessible first aid kits. • Evacuation Plan - establish and practice procedures for an emergency evacuation, e.g., fire, chemical/biological incidents, bomb threat; include escape procedures and routes, critical plant operations, employee accounting following an evacuation, rescue and medical duties and ways to report emergencies. Safety Rules These safety rules are designed to provide employees with knowledge of the recognized and established safe practices and procedures that apply to many of the work situations encountered while employed at this organization. It would be impossible to cover every work situation. If any employee is in doubt about the safety of any condition, practice or procedure, they must consult their immediate supervisor for guidance. Any employee that willingly disregards a safety rule may be terminated. 4.2 Accident and Incident Reporting Procedures All accidents or near misses are to be reported to a manager or the Safety Coordinator immediately. Falsification of company records, including employment applications, time records or safety documentation will not be tolerated. Employees must notify a manager or the Safety Coordinator immediately of any unsafe condition and/or practice. Reporting Procedures There are two types of events that fall under the definition of an incident for the purposes of reporting guidelines. The first is an event that resulted in an injury and the second is an incident where a ‘near miss’ was recorded. Minor injuries are equally as important to report as major injuries are. Both of the following cases and many others like them, are required to be reported. Example 1: An employee who works at a computer station on a daily basis may suffer from an ergonomic repetitive strain injury. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Example 2: A BudTender was opening a box with a box cutter and suffered from a small laceration to the finger. The second event is called a Near Miss. A near miss is an unplanned event that did not result in injury, illness or damage, but had the potential to do so. Only a fortunate break in the chain of events prevented an injury, damage or fatality. Incident reporting is necessary for several reasons: • Reporting enables the correction of the situation and helps prevent similar future occurrences. • If an incident results in long term leave or lost time and the employee wishes to claim compensation from The Bakery by Element 7’s workers compensation provider, the proper documentation is required in order to receive approval. • An individual dispensary is required to notify The Bakery by Element 7 Head Office within 8 hours of occurrence of all fatalities, disabling, significant, and serious injuries or illnesses to workers. Tools, equipment, materials, or other evidence that might pertain to the cause of such accidents shall not be removed or destroyed until authorized by the General Manager on approval from the CEO. At The Bakery by Element 7, all “events” are considered “Notifiable Incidents” and they must be reported using the “Incident Report”, as shown below. • The injured person or best witness must inform the area supervisor of the incident as soon as possible. • The injured person must complete the Incident Report as soon as possible, within 24 hours if possible. A witness or supervisor may fill out the injury report on behalf of the injured person, if the injured person is unable. This THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. form will automatically be submitted to the injured person’s supervisor, the Human Resources office, and the CEO’s office. • Initially, investigations will be completed by the injured employee’s supervisor and The Bakery by Element 7’s HR Team (Taylor Munoz). Further investigation may be conducted by a 3rd party HR resource with OSHA expertise. • Taylor Munoz (Head of HR) and Robert DiVito (CEO) will close all Incident Reports as required with corrective action circulated to all Managers within the business. If required, The Bakery by Element 7’s Employee Handbook will be updated to correct any systems, policies, or procedures. Risk Assessments Although The Bakery by Element 7 facilities are thoughtfully and deliberately designed to pose little to no risk or threat to employees, customers and patients, a Safety Plan is designed to ensure that any unforeseen risks are mitigated and or prevented so that employees, customers, patients and the neighboring community remains safe. In order to provide valuable insight to our employees, our plan includes a Risk Assessment module that is included in the Site Safety Plan and training. Our Risk Assessment module utilizes a matrix to calibrate identified risks that enable employees to make better informed decisions that eliminate or reduce their exposure to the identified risk until it can be properly addressed by a contracted professional. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Enforcement of Policies and Procedures Employees will be subject to disciplinary action for violations of safety rules. Managers are responsible for the enforcement of safety rules. Employees will be afforded instructive counselling and/or training to assure a clear understanding of the infraction and the proper conduct under organizational guidelines. All training will be documented on a safety rule violation notice form and placed in the employee’s personnel file. Nothing in this policy or this safety program will preclude management from terminating an employee for a safety violation. This is not a progressive discipline system and any safety violation may lead to an employee’s termination without prior instruction or warning. Management reserves the right to impose any of the following disciplinary actions it deems appropriate: • Verbal warning with documentation in personnel file. • Written warning outlining nature of offense and necessary corrective action with documentation in personnel file. • Termination. Management will be subject to the above disciplinary action for the following reasons: • Repeated safety rule violations by employees under their supervision. • Failure to provide adequate training prior to job assignment. • Failure to report accidents and provide medical attention to employees injured at work. • Failure to control unsafe conditions or work practices. • Failure to maintain good housekeeping standards and cleanliness in their departments. 4.3 Evacuation Routes Having an evacuation route and plan in place is essential in any business – within the cannabis industry, given the additional safety and security issues that this business poses, The Bakery by Element 7 implements the following procedures beyond having a planned evacuation route: 1. All staff are trained annually on evacuation routes and procedures for a multitude of scenarios covered in this section of the application. 2. Exit route maps are clearly posted within the dispensary and facility. 3. A trained Safety Coordinator (local hire to be appointed) is the primary contact for all safety-related matters and will be responsible with the General Manager and Shift Managers for any evacuation procedures. 4. All customers and patients will be given clear instructions in the event of any evacuation procedures. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Class A and Class B:C rating and size for the areas to be covered per OSHA guidelines. Fire extinguishers shall be of the proper UL Class A and Class B:C rating and size for the areas to be covered per OSHA guidelines. In addition, a range of other fire safety equipment will be installed at the facility which shall include: - Fire System Control Panel that provides an audible and visual alarm when fire is detected. This Control Panel is connected to the Automatic Fire Detection devices installed on the ceiling of the facility. - Automatic Fire Detection Devices sense the smoke, heat, or flames from a fire and initiate an alarm. All automatic detection equipment must be approved, installed and maintained in accordance with 29 CFR 1910.164. - Hazard Warning and Caution Signs that are designed to warn of any risks – signage will also direct persons to exits and fire extinguisher systems. - Knox Box so that the Fire Department can easily access the facility in the event of a fire. Exits and Exit Signage The number of exits at the Facility shall be in accordance with Table 1006.2.1 and Table 1006.3.2 (2) and Section 1017.2 of the International Fire Code (IFC). 4.5 Procedures and Training for Fire and Medical Emergencies We have established the following policies on training all workers with respect to workplace security. All workers, including managers and supervisors, shall have THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. training and instruction on general and job-specific workplace security practices. Training and instruction shall be provided when the IIP Program (Injury and Illness Prevention) for Workplace Security is first established and periodically thereafter. Training shall also be provided to all new workers and to other workers for whom training has not previously been provided and to all workers, supervisors and managers given new job assignments for which specific workplace security training for that job assignment has not previously been provided. Additional training and instruction will be provided to all personnel whenever the employer is made aware of new or previously unrecognized security hazards. General workplace security training and instruction includes, but is not limited to, the following: 1. Explanation of the IIP Program for Workplace Security including measures for reporting any violent acts or threats of violence. 2. Recognition of workplace security hazards including the risk factors associated with the three types of workplace violence. 3. Measures to prevent workplace violence, including procedures for reporting workplace security hazards or threats to managers and supervisors. 4. Ways to defuse hostile or threatening situations. 5. Measures to summon others for assistance. 6. Worker routes of escape. 7. Notification of law enforcement authorities when a criminal act may have occurred. 8. Emergency medical care provided in the event of any violent act upon a worker; and 9. Post-event trauma counseling for those workers desiring such assistance. In addition, we provide specific instructions to all workers regarding workplace security hazards unique to their job assignment, to the extent that such information was not already covered in other training. Security and Emergency Preparedness Training Supervisors, managers, and employees will also be required to complete Security and Emergency Preparedness training based on Federal Emergency Management Agency guidelines and courses. This includes: • Natural hazards: floods, hurricanes, tornadoes, and earthquakes • Health hazards • Cybersecurity, power outages and equipment failure • Emergency alerts and the Integrated Public Alert and Warning Systems • Active Shooter, robbery, burglary, transportation incidents and workplace violence THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Attacks in Public Places • Terrorism, bomb threats and suspicious packages • Ensuring Building Security: evacuation, sheltering and lockdown • Severe Weather • Recovering from Disaster • Loss Prevention • First Aid and CPR Employee Safety and Security Training and Resources Our supervisors, managers and employees will be required to complete safety training that covers OSHA requirements, Sexual Harassment and Workplace Violence, Emergency Preparedness and Safety and Security Policies and Procedures. In order for our Company to maintain the safety and security of our employees, we will perform security and risk assessments at various stages of build-out and implementation, and on-going assessments while in operation, to identify workplace security issues. The fact that the cannabis industry is unable to access traditional banking services, high amounts of cash on-site and highly valuable items, such as cannabis products, may increase the risk of violence related to diversion, theft and other related criminal activity. Although our security plan includes state-of-the art security systems, devices and professional, contracted security officers, we will have all facility supervisors and employees complete Worker Safety and Health training modeled after Cal/OSHA’s Cannabis Industry Health and Safety Program. Training will cover: • Electrical hazards • Hazard communication • Injury and illness prevention • Personal protective equipment • Point of operation hazards • Repetitive motion injuries • Slips, trips, falls and use of ladders • Sanitation and pest control • Workplace violence • Sexual harassment • Discrimination • Worker’s Rights • Employer’s Rights • Reporting and Resources Cannabis Specific, In-Depth Security Training We will contract a security professional to provide security and emergency preparedness training based on FEMA Emergency Management Agency guidelines that includes active shooter, emergency preparedness, burglary and robbery, bomb threats, cybersecurity threats and other potential security and safety threats that employees may encounter while on the job. Our contracted security professional will also train employees on ways to identify potential risks to workplace security, describe measures for improving workplace security and how to determine actions to take in response to a safety or security situation (e.g., burglary, armed hold-up, stroke and heart attack, loss of power). We also require, and provide, training refresher courses THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. which will occur on an annual, ongoing basis for all employees. Refresher training courses will consist of a minimum of 32 (paid) hours annually, for security and safety training. Our Chief of Security will also be providing, and managing, training on internal safety and security policies and procedures that have been developed with our Chief of Compliance. Facilities may have unique safety and security issues and our Chiefs of Security and Compliance will work on developing policies and procedures that address these unique issues. Internal Security and Safety policies and procedures include: Situational Training Staff are trained to deal with, and manage, a range of workplace scenarios – having staff adequately trained allows for rapid response, resolution, and risk minimization. Emergencies The Company has outlined steps that supervisors, managers, and employees should take in the event of certain emergency situations. THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Fire • Call 911 immediately if fire is uncontrollable. • Use fire extinguisher to put out smaller fires. • Evacuate the building immediately and allow the fire department full access to the facility. • Have staff and witnesses fill out incident reports. • Assist in clean up after fire has been extinguished properly. Management is to secure product in the safe if available. Earthquake • All employees find a safe spot during the event and exit store in calm fashion if possible. • Manager on duty is to lock up doors and shut off gas line to business if accessible. • Manager is to account for all employees and vendors after the event is over and facilitate cleaning up the business if needed. No employee is to leave without contacting the manager first and receiving authorization to do so. • Manager is to call the owner and inform him of any damage. Owner is to call Insurance company in the event of damage and facilitate the repairs. Medical Any type of serious life-threatening medical emergency, such as seizures, asthma attacks, epilepsy, diabetic episodes, etc. will be handled by medical professionals and emergency responders will be called immediately via 9-1-1. Any type of accident wherein bodily fluids is present, only management is to deal with such fluids using proper cleaning supplies and gloves. If in abundance, use of professional cleaning service may be deemed necessary. Business will have a stocked first-aid kit in case of minor injuries at work. Employees will always have access to this kit. Active Shooter Employees will receive Active Shooter training from our contracted Security Professional. Injury or Accident Employees will be instructed to remain calm and assess the emergency situation. They will be trained to assess whether the injured individual requires need medical attention. Injured individuals who refuse medical attention will be asked to complete and sign an incident report and refusal to receive medical attention waiver. Basic first-aid procedures can be used on employees in the event of a minor injury. Hazardous Materials Hazardous materials (hazmat) are substances or materials that the U.S. Department of Transportation (DOT) has determined are capable of posing an unreasonable risk to health, safety and property when transported in commerce. The Hazardous Materials Regulations (HMR) are a set of rules established by The Pipeline and Hazardous Materials Safety Administration (PHMSA) to ensure hazmat is packaged and handled safely during transport, storage, and handling. Hazardous Material Security training is designed to introduce hazmat employees to security risks associated with the hazmat transportation process and ways to enhance THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. security, as well as how to spot a possible security threat and respond appropriately. Training will help employees meet the security awareness training requirement (49 CFR 172.704(a)(4)). Training will enable employees to determine if a material is hazardous, recognize the hazard classes and divisions used to identify hazardous materials, recall what makes a material hazardous substance, waste, marine pollutant, or elevated temperature material. All employees will be able to communicate a material’s hazards through the use of shipping papers, markings, labels, and placards. All staff are trained in two (2) core Hazmat areas of concern, which training is included in staff on-boarding training and the annual training refresher program: • Importance of Hazmat Security • Reducing the Hazmat Risk Security and Burglary / Robbery Protocols THE BAKERY: SAFETY PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Summary Safety and security are two of the most important factors in the management and operations of The Bakery by Element 7. The policies, procedures, and systems that we have created are in place to drive staff and customer safety. In addition, these policies: ● Demonstrate to employees that safety performance and business performance are compatible; ● Clearly state the company's safety beliefs, principles, objectives, strategies and processes to build buy-in through all levels of the company; ● Outline employer and employee accountability and responsibility for workplace health and safety; and ● Are designed to comply with the Occupational Health and Safety Act; and The Bakery by Element 7 promotes the wellness and welfare of the company’s workforce and, as workplace safety is paramount, we believe that with the proper education and training of management and staff on safety procedures as outlined within the OSHA framework, we provide the highest standard of safety for our cannabis facilities and operations, and the communities they serve. November 20, 2020 City of Fresno, CA RE: Element 7 Cannabis Application: City of Fresno To Whom It May Concern, On behalf of my client, Element 7 LLC ["the Owners"], I am writing to you with regards to their application for a commercial cannabis permit in the City of Fresno. The Owners will occupy their own premises at 701 E. Olive Street, Fresno. The Owners will use the facility for retail sale of marijuana. The products stored will vary and can include: •Cannabis Flower •Manufactured Cannabis Products •Other packaged and sealed cannabis products The proposed storage methods do not include storing in "high piled storage" array, as defined by California Fire Code. The building will be classified as B (offices), F-1 (manufacturing) and S-1 (storage) occupancy, as defined by CBC (California Building Code) Sections 302-311. While the description for the required Safety and Security Plan for the application is not entirely specific, the majority of the concerns for Fire Department review in these facilities are related to Hazardous Materials, the use of volatiles, and general fire safety concerns of which I am very familiar having worked in Fire Safety in California for over 30 years. Based on the information provided by the owners, there is no proposed storage or use of volatiles (flammable liquids) on site, or extraction operations. The Owners agree that they will submit a fire code compliance/safety report addressing fire protection and hazardous materials requirements as part of their future building and fire plan submittals to the City Fire and Building Departments. Additionally, any building plans, including exit plans, Department hazard & alarm plans, architectural plans, accessibility plans etc. will be submitted by the architect of record as part of Fire and Building submittal package. The Owners agree to provide plans showing compliance with the applicable edition of the California Fire Code and as a consultant, I will remain involved in all aspects of these submissions and building works. Larry Frogoso, Fire Safety Advisor Save Lives. Save Property. FROGOSO FIRE SAFETY Mailing Address: 4001 Inglewood Ave., Bldng. 382, Suite 101, Redondo Beach, CA 90278 Phone 310.371.5300 Fax 310.371.5302 November 16, 2020 City of Fresno 2600 Fresno Street, Fresno, CA TO WHOM IT MAY CONCERN: This letter is to certify that Element 7 has hereby appointed GSG Protective Services as their licensed provider for all security related matters required by the City of Fresno (as per the required Security Plan), and the State of California (including the Bureau of Cannabis Control), for cannabis operations for The Bakery CA LLC at 701 E Olive Avenue, Fresno, CA. GSG Protective Services is a State Licensed Private Patrol Company. Our PPO #16545. Randy Bragg and Corey English have reviewed and approved Element 7’s Security Plan with our inputs incorporated into the plan, as attached herein. If Element 7 is awarded a license, we would envision working with a local set of suppliers and entities with regards to the provision of security hardware and guards for the management and safety requirements of the business, whilst managing full installs and systems to all Codes and City / BCC Directives. If any further information is needed regarding the security for this company or anything in the plan attached, please do not hesitate to contact me at 310-425-5316, or Element 7’s Founder and CEO, Robert M. DiVito, at robert@element7.co. Kind Regards, Corey English GSG Protective Services Executive Vice President 310-425-5316 mobile 855-371-5300 office corey@gsgprotective.com THE BAKERY: SECURITY PLAN 5. SECURITY PLAN THE BAKERY: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. 2. SOCIAL POLICY AND LOCAL ENTERPRISE PLAN The Bakery by Element 7 Fort Bragg: 100% of Staff are Locally Hired Introduction The Bakery by Element 7 will manage Labor and Employment from multiple angles - a dedicated HR Specialist hired within the Element 7 head office; the General Manager at the Facility, and a third party, HR Specialist consultant that will advise the business on aspects of employment law, HR principles and other labor related issues (HR Bizz Agency). In addition to these specialists that sit within the business, we have a close working relationship with UFCW and have partnered with the California State Economic Development Department (EDD), Latinos 4 Cannabis, and NDICA (National Diversity and Inclusion Cannabis Alliance) on job training programs and job fairs in Los Angeles and Fresno - we will bring these same opportunities and events to Fresno again in 2021 as we prepare to start actively recruiting talent for our business in the City. Staff training sits at the heart of our business. Having an effective staff training program in place is critical for several reasons. Firstly, cannabis consumers look to in-store staff for purchase decisions more than any media channel, form of advertising or any industry news. Secondly, having an effective staff training program in place is critical for compliant and legal operations. Finally, staff training is critical to personal development, hiring and retaining our best talent. The Bakery by Element 7 has partnered with Chloe Villano as a Strategic Advisor and has Marisela Flores-Hamm, founder of 420 College in Fresno, as a Community Board Member. Chloe is the President and Founder of Clover Leaf University, the first cannabis learning institute and academy in North America to receive University Accreditation from a Department THE BAKERY: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. Estimated Salary Ranges are: • General Manager: • Shift Managers: • Retail Staff: Stock Option Plan Stock options are a means to both attract good talent and keep those employees invested in the company over time – all full time employees with 12 months of continuous service will be issued stock options with The Bakery by Element 7 Fresno. When we offer employees stock options, we will do so through a special contract called a Stock Option Agreement. Such an option, once granted to the employee, gives the employee the opportunity to benefit from increases in the company’s share value by granting the right to acquire shares at a future point in time at a price equal to the fair market value of such shares at the time of the grant. The option agreement dictates all the terms of the offer - including vesting schedule, time limits for exercise once vested and any other special conditions. Retirement Benefits: 401K Our employee benefits package includes a standard 401K contribution commencing on the 13th month of employment. Employee and Health Benefits The Bakery by Element 7 will be offering the following Employee and Health Benefits to its staff, which shall include (on top of their wages and salaries): • Medical, prescription, vision and dental health plan • Disability Income Protection Plan • Professional Advancement, education and training benefits • Labor Union Representation • Other Benefits Part-time employees who have been with the Company at least six (6) months will have the option to join the Company’s insurance plans but will have to pay for 50% of their insurance premiums out-of-pocket. Employees working more than 30 hours a week will be considered full-time and will receive 100% of their insurance premiums paid for by The Bakery by Element 7. Medical, prescription, vision and dental health plans include: - Pediatric Services - Preventive and Wellness Services - Behavioral Healthcare - Chronic Disease Management - Dental and Oral Care - Ambulatory Patient Services - Physical Therapy - Emergency Services - Prescription Drug Coverage - Hospitalization - Vision - Primary Care - Durable Medical Devices - Telemedicine - Maternity and Infant Care - Laboratory tests & screenings THE BAKERY: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. The Bakery by Element 7 will also provide life and disability insurance coverage for employees. Term Life and Accidental Death and Dismemberment (AD&D) insurance will provide, at no cost, a benefit of Long-term disability will pay employees 60% of pre-disability earnings if they become disabled from injury or sickness. Other perks offered to employees will include: • Refreshments and meals within the Staff Room / Kitchenette • An ongoing formalized staff training program • Medical and ‘sick’ leave (up to 20 days a year for full-time staff) • Paid Vacation Leave (10 days a year for full-time staff) • Family-friendly shifts • Allowances for continued education opportunities • 20% staff discount for purchases at The Bakery by Element 7 stores We also recognize the importance of maintaining fitness and health and will be offering full-time employees a grant towards a fitness or health club membership – we will discuss programs with fitness and health clubs surrounding The Bakery by Element 7. 2.3 Opportunities and Compensation for Continuing Education and Training The Bakery by Element 7 is committed to the advancement and wellbeing of our employees, and providing continuing education is a central component of how we build our world class workforce. We are deeply interested in enabling our staff to overcome existing barriers, find meaningful work with us and build their career with The Bakery by Element 7. Employees will receive training on internal policies and procedures, industry best practices, safety and security, human resource development, employee rights, and other mandatory training required by federal and state regulation. We will train all employees to effectively and efficiently fulfill their duties and to exceed the expectations of their positions, including a thorough understanding of all applicable Federal, State, and local regulations relating to commercial cannabis operations. Classroom Training Program Qualified candidates will be hired on a three-month probationary status. During this period, they will participate in a rigorous training process, and be evaluated for suitability in a restricted-access medical environment. Training will include the employee handbook, other reading materials, lectures by qualified professionals, hands-on training and quizzes. According to BDS Analytics 2017 report 'Bud-tenders' in the industry received, on average, a total of 16 hours of training before commencing employment. Training will be conducted strategically to ensure that all employees on- board effectively with a proven proficiency to increase their knowledge base. The Bakery by Element 7 employees will have received over 80 hours of training, which is five (5) times the industry average prior to stepping foot on the floor. The following areas will be covered during 80 hours of training: • Legal training will cover all City of Fresno, State and Federal laws relating to cannabis, and especially those related to Commercial cannabis. Other topics THE BAKERY: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. will include the rules and regulations of the facility, sexual harassment training, effective interaction with law enforcement personnel, and the rights and responsibilities of Commercial cannabis consumers (4 hours) • Product offerings (12 hours) • Medical training will include disabled rights and sensitivity, how to identify and respond to a medical emergency, and the proper uses and benefits of Commercial cannabis (8 hours) • Safety training, in addition to its focus on safety, will include warning signs of possible diversion to the illegal market, lock and alarm procedures, perimeter and entrance control, robbery response techniques, conflict resolution techniques and diversion detection techniques (4 hours) • The Bakery by Element 7 business model and Customer Service Training (4 hours) • Regulatory compliance (the applicability of Federal and State regulations to the employees’ responsibilities) (4 hours) • Training on Standard Operating Procedures (SOPs) (12 hours) • Prevention of Diversion of Commercial cannabis (8 hours) • Security procedures (16 hours) • Safety procedures (8 hours) Training will be conducted by The Bakery by Element 7 in conjunction with Clover Leaf University (online training programs) and the Cannabis Training Institute (class-room training programs). Advanced Training Program (BudMaster) ‘Budtenders’ working at The Bakery by Element 7 will be allowed to apply to undertake an Advanced Training Program annually which would allow them to hold the title of 'BudMaster' at The Bakery by Element 7. The Advanced Training Program is adopted from LA Grants, a supplier of advanced certified training for the industry. The Advanced Training Program includes the following sections: • Cannabis as Medicine • Principles of Cannabinoid Therapy • Use of Cannabis for Cardiovascular Disease • Use of Cannabis for Respiratory Patients • Use of Cannabis for Gastrointestinal Disease • Use of Cannabis for Hematology / Oncology • Use of Cannabis for Endocrine Issues • Use of Cannabis for Gynecologic Issues • Use of Cannabis for Musculoskeletal Issues • Use of Cannabis for Neurological Issues • Use of Cannabis for Dermatological Issues THE BAKERY: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Use of Cannabis for Psychiatric Issues • Cannabis Law • Sales Skills 101 • Cannabis Potency, Absorption Rates & Product Effects • Managing Impaired Patients • Final Examination and Certification Americans for Safe Access Training All employees must complete the Patient Focused Certification Program given by Americans for Safe Access which shall be held annually. Sponsored Continued Professional Advancement Employees that have been employed by at least 12 months will be able to qualify for Sponsored Continued Professional Advancement (fully paid for by The Bakery by Element 7). Education and training are a significant component to personal advancement and success. Employees who desire to complete certifications, obtain degrees, or further specialized skills through training can apply to receive funding to cover the costs of such programs. All team members who are enrolled in classes that can promote their knowledge of any and all aspects of the cannabis industry (human resources, business, law, security, engineering, marketing and advertising, agriculture, etc.) will be provided with an educational stipend of annually for external relevant programs. Every time an employee completes mandatory or voluntary training, they will be eligible for a per hour wage increase, with training wage increases capped at annually. As an example, by completing 4 training programs in the first year of employment, employees will be able to increase their starting salary from per hour. Training Pass Score Requirements Staff training for regulation and compliance will be implemented annually and all staff must PASS required mandatory tests each year regarding the handling, treatment and processing of cannabis products. Specific Compliance procedures will be implemented to ensure that the Commercial Cannabis operation meets any directives under Fresno and the Attorney General’s Guidelines for the Security and Non-Diversion of Cannabis. Standard operating procedures as well as written health & safety information made available to all employees. A key part of the staff training program is understanding the potency, absorption rates and effects of cannabis, and dealing with impaired patients. Supply of these documents will be reviewed for content and accuracy annually. The documents will include emergency contact information. All staff will have detailed knowledge and comprehension of the Standard Operating Procedures. 2.4 Recruitment of Individuals under the FMC Social Policy 9-3316(b) We understand that economic, ethnic, gender, and racial equality requires social change, progress, and action. We look to contribute to societal equality through our hiring practices, retention practices, and treatment of employees. These practices THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. serve to further facilitate community bonding our employees, customers, neighbors, and the entire local community. We are committed to ensuring that at least 1/3rd of our workforce and total annual work hours includes individuals who meets one of the following: (i) Annual family income below 80% AMI; (ii) Convicted for a cannabis related crime that could have been prosecuted as a misdemeanour or citation under current State law; (iii) Lived in a low to moderate income census tract in the city for a minimum of three (3) years; (iv) Veteran; (v) Former foster home youth who was in foster care as a minor; (vi) Receiving public assistance. We understand that if selected, we are required to provide the city with ongoing proof of compliance of this requirement. The Bakery by Element 7 will employ a diverse workforce and act as an equal opportunity employer in California. The company will strive to be an inclusive company made up of talented and diverse individuals from many ethnicities and cultures. The Bakery by Element 7 executive team is committed to building a company with fair treatment, access, opportunity, and advancement for people of all demographic backgrounds and life experiences. The Bakery by Element 7’s primary partners for advancing community justice and services is the National Diversity and Inclusion Cannabis Alliance (NDICA) and Latinos 4 Cannabis (L4C). Social Policy Recruitment and Hiring Initiatives Specific initiatives that The Bakery by Element 7 commits to in Fresno will include: 1. Annual Job Fairs conducted in partnership with NDICA, L4C, and EDD in the City of Fresno – The Bakery by Element 7 held a job fair in Fresno in 2019 at its Expungement Clinic. 2. Advertisements in the Fresno Bee and participation in local job fairs and workforce development initiatives – e.g., Annual Fresno Job Fair operated by Hire Live. 3. Development of a Community Advisory Board that will be charged with ensuring The Bakery by Element 7 meets its local commitments for community projects and funding. 4. Preferred vendor and contractor opportunities for local minority-owned businesses in Fresno. 5. Media buys and placements with local Latino and Hispanic media channels to target potential employees through specific publications that reach this audience – e.g., Vida en el Valle which is published weekly in Fresno. 6. Corporate donations to local minority-focused non-profit organizations with outreach initiatives to their members and partners for job opportunities. 7. Financial support for NDICA and Latinos 4 Cannabis to pursue their own outreach and community development programs in Fresno. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. We received letters of support for our business concept from 20 local businesses in our immediate proposed vicinity, demonstrating our ability to proactively engage neighbors. Letters of Support were provided by our directly adjacent neighbors to the east and west of our location – Me-n-Eds on Tap and Mama Mia Pizzeria, and our directly adjacent neighbor, Ficarra Studios. This neighborhood outreach activity follows on from previous efforts Element 7 made in 2018 to educate the City of Fresno and City officials - in 2018 we dropped off a ‘Compliance in Cannabis Retail’ package to the Planning Department attempting to educate City officials on how cannabis retail could be compliantly developed in Fresno. In addition, we have 9 local employees that have indicated that they want to seek employment with us as we are granted permits. A copy of these letters is below. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. 2.6 Number of Employees and Respective Roles Initially, we anticipate that The Bakery by Element 7 Fresno will be comprised of 1 General Manager, 2 Retail Shift Managers, 1 Inventory Manager, and 10-12 Dispensary Technicians / Budtenders (14 - 16 new hires). This team is supported by The Bakery by Element 7 head office teams based in LA and SF. An organizational chart has been included below for clarity on reporting structures – the chart shows key individuals that assist the local business from head office, and the local roles and reporting structure. Job Descriptions General Manager / Facility Manager – The General Manager / Facility Manager (GM) is responsible for leading a team of approximately 16 employees, including 3 managers (Shift Managers and Inventory Control Manager), and is accountable for all aspects of managing a single retail cannabis store. The General Manager will report to the CEO THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. of The Bakery by Element 7 (Robert DiVito) and The Bakery by Element 7’s Chief Retail Officer (Mark Malatesta). They will help train, develop, and hire new employees as well as continuing to improve standard operating procedures. This position requires attention to detail, a passion for process, a drive for results, and the ability to lead and influence in the high-regulated and compliance-focused cannabis industry. General Manager Job Responsibilities include: • Builds company image by collaborating with customers, government, community organizations, and employees; and enforcing ethical business practices. • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; and coordinating actions with corporate staff. • Maintains quality service by establishing and enforcing organization standards. • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; bench marking state-of-the-art practices; and participating in professional societies. • Forecasts and adjusts payroll to maximize productivity, achieve sales and payroll goals, and complete workload. • Ensures compliance with MAUCRSA, local laws and regulations centered around cannabis ordinances. • Protects company assets and minimize loss by ensuring all store standards and operating procedures are met, including workplace safety, inventory control, and loss prevention. • Oversees the maintenance of the facility. • Performs HR duties including: Employee Appraisals, Discipline Notices, On Boarding paperwork, PTO compliance. • Conducts weekly manager meetings and monthly all staff meetings. • Oversees management team schedule. Shift Managers – Shift Managers will report to the General Manager. They will help train, develop, and hire new employees as well as continuing to improve standard operating procedures. This position requires attention to detail, a passion for process, a drive for results, and the ability to lead and influence in the high-regulated and compliance-focused cannabis industry. Shift Manager Job Responsibilities are similar to that of the General Manager and such persons will effectively ‘manage’ the business at any time that the General Manager is not on site, and will include: • Day to day retail operations including staff check-ins, product briefings, merchandizing displays, interaction with customers, vendors, and security. • Builds company image by collaborating with customers, government, community organizations, and employees; and enforcing ethical business practices. • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; and coordinating actions with corporate staff. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Maintains quality service by establishing and enforcing organization standards. • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; bench marking state-of-the-art practices; and participating in professional societies. • Ensures compliance with MAUCRSA, local laws and regulations centered around cannabis ordinances. • Protects company assets and minimize loss by ensuring all store standards and operating procedures are met, including workplace safety, inventory control, and loss prevention. • Oversees the maintenance of the facility. Inventory Manager – Our Inventory Manager will bring unwavering professionalism and meticulous accuracy to the position. The Inventory Manager will work closely with management, maintain inventory levels for products on the sale floor, merchandise displays, storage rooms, and consistently perform inventory audits. Additional responsibilities include maintaining inventory storage software, ensuring the accuracy of inventory records, and helping intake all deliveries. Successful inventory managers should have excellent interpersonal communication skills, a firm grasp of basic computer programs, and an ability to work both independently and in a team. Inventory Manager Job Responsibilities: • Controls full retail ordering and management process / suppliers / vendors. • Tracking inventory maintenance. • Controlling flows of product. • Merchandising displays. • Reporting to management on inventory issues and discrepancies. • Training less experienced inventory workers. • Aid in the roll out of new products. • Support manager in any back of house duties. • Addressing any problems, obstacles, or challenges. • Stocking and maintaining inventory levels on the sales floor. • Maintaining extensive knowledge of our product offerings, various consumption methods, and cannabis in general. • Follows assigned schedule and accurately reports time. • Maintain a positive working environment. Dispensary Technicians (BudTenders) – Dispensary Technicians (BudTenders) ensure that all transactions and the implementation of other retail processes comply with state and local laws and regulations and that service exceeds customer expectations. BudTenders collaborate with the General Manager and Shift Managers to develop and implement practices, policies, and strategies that support a performance and results-driven culture. Job Responsibilities include: • Ensures accuracy and compliance in all transactions. • Performs the required duties to record all sales and inventory transactions in accordance with state and local laws and regulations. • Maintains established standards of presentation, customer service, and compliance. • Communicates the details of daily operations to the General Manager. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. • Implements and oversees procedures related to opening and closing of the retail store with the General Manager (specifically focused on retail floor). • Stays informed and knowledgeable about state and local laws, regulations and industry news. • Performs inventory reconciliations daily, weekly, and as needed. • Oversee the Retail Sales and Pick-Up orders as needed, ensuring prompt delivery and quick order fulfillment. Delivery Drivers – Delivery Drivers will initially be hired as Dispensary Technicians and then trained on delivery procedures as the business stabilizes and the delivery service is launched. We would envision some employees continuing to work across both job roles in the future. Delivery Drivers MUST have a valid driver’s license and an absolutely clean driving record. The Delivery Drivers will work off DUTCHIE, our chosen delivery management and navigation software, in order to successfully complete delivery orders. Delivery Drivers will be briefed on all incoming and outgoing orders, proper addresses, and drop-off locations, product knowledge, delivery efficiency, discreteness and safety. Delivery Drivers will be expected to exude excellent customer service skills by personally greeting, thanking, and communicating proactively with patients to strengthen loyalty. Delivery Driver Job Responsibilities: • Loading, transporting, and delivering items to clients or businesses in a safe, timely manner. • Reviewing orders before and after delivery to ensure that orders are complete, the charges are correct, and the customer is satisfied. • Assisting with loading and unloading items from vehicles. • Accepting payments for delivered items. • Providing excellent customer service, answering questions, and handling complaints from clients. • Adhering to assigned routes and following time schedules. • Abiding by all transportation laws and maintaining a safe driving record. • Preparing reports and other documents relating to deliveries. Job Descriptions - The Bakery by Element 7 has developed Job Descriptions for all positions within the Company. Detailed Job Descriptions for all positions can be made available at any time upon the request of the City. Such position descriptions have been deployed successfully in the last three months to hire The Bakery by Element 7 staff in Fort Bragg and Rio Dell for operations commencing in December 2020. As stated, in Fort Bragg, 100% of staff hired were locals, demonstrating our commitment and ability to execute on this promise. The Bakery by Element 7 has a comprehensive Employee Handbook in place to help employees navigate through their employment with The Bakery by Element 7. Employees are required to thoroughly understand the policies before commencing employment and acknowledge their understanding (with annual refreshers) for key policies including theft, harassment, sexual misconduct, customer service, and equality. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. as a bargaining agent. This provision shall not prohibit the Employer from presenting its own package to the Employees. 2. The Union may engage in organizing efforts in non-work areas during Employees’ non-working times (before work, after work, or on meal or rest breaks) and/or during such other periods as the parties may mutually agree upon, subject to Employer’s safety and security plan. 3. Union and Employer understand and appreciate the unique work site requirements for security and safety for the cannabis industry that Employer is required by law to comply. Employer and Union agree that Union organizing efforts must comply with all security and safety plans of Employer, local regulations and/or requirements, County regulations and/or requirements, and state regulations and/or requirements, and as otherwise required by law. Union understands and agrees union representatives engaging in organizing efforts and/or otherwise entering the premise of Employer must comply with Employer safety and security protocols and policies. Employer will not obstruct the efforts of Union to comply with Employer security and safety plan protocols. The Union shall not disrupt the Employer’s business and/or violate any security or safety regulations. 4. The Union agrees to communicate with employees in a positive manner and shall not denigrate the Company, its managers, supervisors, agents or representatives. The Union shall not present or portray the Employer in a bad light to employees or to the public. 5. The Employer shall not present or portray the Union in a bad light to employees or to the public. 6. The Employer may not engage in a lockout. 7. The union, and any employee it represents, will not engage in or encourage any strikes, slowdowns, picketing, boycotts, work stoppages, any other economic interference with the Employer’s business or other concerted activity. A copy of our Labor Peace Agreement with UFCW is attached at the rear of this section of the application. 2.8 Workforce Plan In order to ensure the success of our hiring practices and goals, The Bakery by Element 7 will contact local community-based organizations, work source centers, local job fairs, and other such similar organizations to facilitate job outreach, development, and placement services. Further, The Bakery by Element 7 will co-host events and career fairs that will allow interested individuals to access about job opportunities and meet with The Bakery by Element 7 team members one-on-one, and apply in-person for available positions, thereby gaining a competitive edge for a coveted position at our company. These events and career fairs will also aim to demonstrate to target populations how their existing skills and experiences are translatable to legal cannabis businesses. Not only do these events benefit The Bakery by Element 7 and other employers, but more so the candidates; the candidates will have access to an abundance of employers that are passionate and determined to THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. create diverse workplaces, and to provide opportunities for individuals that would otherwise not be included or highlighted. We will partner with the City of Fresno and the other licensed commercial cannabis businesses that are awarded a license to host a job fair that is specifically and heavily promoted to Fresno residents. This event would provide many benefits including, introducing the residents to the new cannabis community, creating job opportunities to the locals, and bringing the industry, City officials and residents together for a common goal to enhance the unity of the community. When job vacancies for advanced positions are available, such positions will be posted in the employee breakroom and distributed to employees via email. In furtherance of our culture of loyalty, we will seek to internally promote our employees whenever possible. Our employees can be best suited and qualified to move upward through the company because of their specific knowledge and experience of our company culture, operations, needs, potential, opportunities for growth, and how we can continue to be an asset to the local community. To ensure that our employees are optimal options for advanced position in the company we will provide them with training and education opportunities, and mentorship programs. After implementing internal promotion procedures, participating in events and career fairs, and partnering with organizations, then The Bakery by Element 7 will post job openings through our website, Indeed, Monster, Google, Hire-a-Hero, and other recruiting websites to ensure wide distribution. Even with the wide online distribution of job openings our commitment to local hiring and diversity will apply. 2.8.1 Commitment to Local Hiring The Bakery by Element 7 is excited about the opportunity to assist in growing the local economy and providing jobs to residents of Fresno. The Bakery by Element 7 is committed to ensuring that at least 75% of the retail facility is managed and staffed by residents of Fresno and/or Fresno County. By employing locals, The Bakery by Element 7 will be able to provide immaculate service to the local community because we will better understand the needs and concerns of the residents, many of whom are Latino, a community we actively support through 'Latinos 4 Cannabis', a cannabis advocacy group focused on inclusion in the cannabis industry (The Bakery by Element 7 provides financial funding and job assistance programs to this organization in Los Angeles). Local employment and support for local businesses ensures Fresno and its residents will flourish economically. At our Fort Bragg facility, our goal was to hire 75% of locals and we currently have 100% of our staff hired from the City of Fort Bragg. The Bakery by Element 7 has attached Letters of Intent below from 9 individuals seeking employment with The Bakery by Element 7 in Fresno – these Letters of Intent were secured in November 2020 as we conducted outreach activities in the local community. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. 2.8.2 Commitment to Apprenticeships & Continuing Education Compensation Communities across America need more young leaders to step up and lead their communities. To assist with this, The Bakery by Element 7 will also create a local internship and mentorship program that supports two (2) young adults aged 21-24 annually who have had issues with cannabis crimes, and will mentor them in small cannabis business management, compliance, and leadership. Our view with this program to provide a pathway for young people to be educated about the industry, get the training and experience in the workplace that they need to secure jobs and then be able to confidently move on to a senior management position within The Bakery by Element 7’s business. As stated previously, Employees that have been employed by at least 12 months will be able to qualify for Sponsored Continued Professional Advancement (fully paid for by The Bakery by Element 7). Education and training are a significant component to personal advancement and success. Employees who desire to complete certifications, obtain degrees, or further specialized skills through training can apply to receive funding to cover the costs of such programs. All team members who are enrolled in classes that can promote their knowledge of any and all aspects of the cannabis industry (human resources, business, law, security, engineering, marketing and advertising, agriculture, etc.) will be provided with an educational stipend of annually for external relevant programs. Every time an employee completes mandatory or voluntary training, they will be eligible for a per hour wage increase, with training wage increases capped at $ annually. As an example, by completing 4 training programs in the first year of employment, employees will be able to increase their starting salary from per hour. THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. - Relevant SOP’s for manufacturing and processing operations, labor and employment, security, safety, inventory tracking, and all other cannabis facility SOP’s to manage the facility compliantly and legally. - Small storage rooms for the entrepreneur or local business operating in the Lab so that sensitive items and cannabis products can be compliantly stored. - Full ‘Facilities Management’ oversight by The Bakery by Element 7 including janitorial services and centralized utilities. In addition, the local equity entrepreneur will have access to Element 7 team for R&D, consumer research, and industry trends; access to ‘experts’ within the Element 7 team including marketing, sales, and operations experts; and a facilitated training program that meets the needs and requirements of these individuals and the business they are developing. Products manufactured and processed at this E7 EQ HUB, along with other brands and products from social equity business owners and entrepreneurs in Fresno will be featured in a special ‘Equity Grown’ merchandizing section in The Bakery by Element 7’s Fresno dispensary, and eventually, in every licensed dispensary owned and operated by Element 7 in the State of California. The entrepreneur will run through a full two (2) year rent-free cycle at the E7 EQ HUB before a new entrepreneur is chosen for successive placements within the Hub. Local Equity at The Bakery by Element 7 is not about ‘tokenism’ or committing to a program because local legislation forces us to – we take this opportunity seriously and are committed to identifying and nurturing local cannabis entrepreneurs that can build a future for themselves and their families through a sustainable and supported cannabis initiative. As demonstrated by the expungement clinics we have now held in Fresno, Illinois (3 events held), Los Angeles, Long Beach, and by sponsoring the social equity bill that was passed into legislation in the State of Michigan, The Bakery by Element 7 is a company committed to change, diversity, and inclusion. Summary At The Bakery by Element 7 we aspire to create careers, not jobs. We will do this by recruiting, training, retaining, and promoting great talent in our business. This not only THE BAKERY BY ELEMENT 7: LABOR AND EMPLOYMENT PLAN Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure information highly confidential security information and trade secrets. creates a competitive advantage but will ensure that we are seen to be continuously thinking and acting locally. We are proud of our active partnership with the UFCW and are looking to create a unionized business in Fresno that continuously evolves and improves its labor practices. We will do this by engaging with our employees, listening to them as they voice their concerns, ideas, and opportunities for growth. We believe that the E7 EQ HUB could be a model for other cities across California to adopt in the future – proven cannabis operators partnering with aspiring cannabis entrepreneurs to sustainably guide them into the industry where they can grow their business and become a local success story. Ideas like this not only change individual lives in a very meaningful and positive way – they also have the potential to dramatically change and improve the industry we operate within. We are excited about partnering with the City of Fresno in 2021 to bring these programs to the local community to drive real and meaningful local equity and employment opportunities. Zoning Inquiry P20-04523 741 East Olive Avenue Page 2 December 4, 2020 The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business. 3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC. 4. No more than two cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than two per Council District), they shall be dispersed evenly by Council District. The subject property is in Council District 1. There are currently no cannabis retail businesses located in Council District 1. This location requirement is satisfied for a cannabis retail business. Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8038 or at Marisela.Martinez@fresno.gov. Cordially, Marisela Martinez, Planner I Development Services Division Planning and Development Department Enclosed: Site Plan – 741 East Olive Avenue