HomeMy WebLinkAboutC-20-83 Hemp Valley RedactedApplicant (Entity) Information
Application Type
Proposed Location
Commercial Cannabis Business
Permit Application
C-20-83
Submitted On: Dec 04, 2020
Applicant
Pietro De Santis
Applicant (Entity) Name:
Hemp Valley LLC
DBA:
--
Physical Address:
340 West Cromwell, Suite 101
City:
Fresno
State:
CA
Zip Code:
93711
Primary Contact Same as Above?
Yes
Primary Contact Name:
Pietro De Santis
Primary Contact Title:
Owner
Primary Contact Phone:
Primary Contact Email: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:
Pietro De Santis
Proposed Location Address:
4672 North Blackstone Ave.
City:
Fresno
State:
CA
Zip Code:
93726
Property Owner Phone:
Property Owner Email:Assessor's Parcel Number (APN):
427 171 25
Proposed Location Square Footage:
Supporting Information
Application Certification
Owner Information
1500
List all fictitious business names the applicant is operating under including the address where each business is located:
--
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?
No
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
Owner
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.
Owner Name:
Pietro De Santis
Owner Title:
Owner
Owner Address:
340 West Cromwell Ave., #101
Owner City:
Fresno
Owner State:
CA
Owner Zip:
93711
Has Owner Completed Background Check Application?
Yes
Ownership Percentage (%):
100
Business Name: Hemp Valley LLC
Application #: C-20-83
CANNABIS BUSINESS PERMIT APPLICATION REVIEW - RETAIL Points
Possible
All or
None Exceptional Good Acceptable
Applicant
Score
Evaluation Notes (Explain each time points are
deducted)
SECTION 1: BUSINESS PLAN 300 Points Possible for Section 1
Resume:
Resumes Provided for All Owners: Score 5 5 5
Resumes Provided in 2-page Format: Score 2 2 2
Education: (select highest academic level among ownership team, cannabis specific education
separately)
Cannabis specific education/training (accredited)2 2 0 Education of owner not described
High School Degree Reported: Score 4 4 0 Education of owner not described
Bachelor's Degree Reported: Score 6 6 0 Education of owner not described
Master's Degree or Higher Reported: Score 8 8 0 Education of owner not described
Experience: (among ownership team, select one at highest level)
Regulated Cannabis Retail Ownership Experience CA 13 13 0 Retail experience not described
Regulated Cannabis Retail Experience CA (management level or below): Score 10 10 0 Retail experience not described
Other Retail Business Experience Reported, More than 5 years: or 8 8 0 Retail experience not described
Other Retail Business Experience Reported, Less than 5 Years: Score 5 5 0 Retail experience not described
1.1 Sub-Total:30 7
Construction Cost Estimate:
Construction Cost Estimate Provided: Score 8 8 6 4 4 Very basic, needs detail. Line item only.
Construction Contingency Factor Included: Score 6 6 0 Not included
All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 2 Has permits listed only, no material or labor
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included
Operation and Maintenance Cost Estimates:
Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 6 Needs detail
All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 4 Needs additional detail
Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 4 Costs shown as escalating, no explanation
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included
1.2 Sub-Total:50 20
Proof of Capitalization Specific to one or more Owners: Score 5 5 5
Proof of Capitalization Specific to Business Name/Address: Score 5 5 0 Not specific
Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15 1 form in Spanish, not sure of currency it is
Certified Audited Financial Report Provided for one or more Owners: Score 5 5 0 Not included
Score one of the following for a maximum 20 points:
1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner. (30 points possible)
1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs.(50 points possible)
1.3 Proof of capitalization in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City. (50 Points Possible)
Criteria Narrative:
Criteria Narrative:
Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 -
Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 -
Capital consists of non-liquid assets (i.e. real property)8 8 -
Capital consists of a mixture of liquid and non-liquid assets 15 15 15 Has bank accounts and real property listed
1.3 Sub-Total:50 35
Three Years of Data Provided: Score 10 10 8 6 6 Very basic, needs detail.
Total Gross Revenue Estimates Provided:3 3 3
Total Gross Revenue by Product Type (flower and manufactured) Identified:3 3 0 Not included
Total Personnel Costs Provided:5 5 4 3 0 Not included
Total Property Rental or Purchase Costs Provided:2 2 0 Not included
Total Utilities Costs Provided:2 2 0 Not included
Total Cannabis Product Purchase Expense Provided 2 2 2
All Contract Services Identified:2 2 0 Not included
Annual Net Revenue Identified:3 3 3
Annual Cost Escalators Identified:4 4 3 2 2 Only one line for expenses. It is shown as
Annual Estimated Sales Tax Payments to State Provided:2 2 2
Annual Estimated Sale Tax Payments to City of Fresno Provided:5 5 0 Not included
Annual Business Tax License and Cannabis Permit Fee Provided:2 2 0 Not included
Annual Net Income Provided:5 5 5
Scoring Guidance: full points for realistic figures for all three years. Dock points for severe
miscalculations, unrealistic estimates, or providing less than the request three years.
1.4 Sub-Total:50 23
Hours of Operation Provided: Score 5 5 5
Hours of Operation Provided for all 7 days of the week: Score 3 3 3
Hours of Operation Provided for Holidays: Score 2 2 0 Does not describe holidays
Opening and Closing Procedures Provided: Score 10 10 8 6 6
Does not describe opening process, closing
procedures lack detail.
Scoring Guidance: full points for describing information in detail. Dock points for leaving information out
or not providing enough detail.
1.5 Sub-Total:20 14
1.6.1 Fully describe the day-to-day operations if your applying for a retail permit:
i. Describe customer check-in procedures.20 20 15 10 10
Did not describe acceptble forms of ID, how
verified, nor buzz in (FMC 9-3310(a)(4))
II. Identify location and procedures for receiving deliveries during business hours.10 10 8 6 10
iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations.10 10 10 Meadow; 6 locations
iv. The estimated number of customers to be served per hour/day.20 20 15 10 15 Doesn't describe peaks
v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and
manufactured products.20 20 15 10 10 Doesnt describe product line in detail
1.6 Daily operations. With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in
which you are applying for a permit. (100 points possible)
1.4 Pro forma for at least three years of operation.
1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
CCB Provides Tuition Reimbursement for Certificates: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 0 Does not describe tuition reimbursement
CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations
Training: Score 3 3 0 Does not describe tuition reimbursement
CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 0
Only mentions employees are required to read
policy but does not describe training.
2.3 Sub-Total:20 0
General Recruitment Plan Provided: Score
10 10 8 6 6
Only briefly describes local and social policy hiring
but does not describe other hiring practices or
principles.
Social Policy Recruitment Plan Provided: Score 10 10 8 6 6
Does not commit to the specific % of social policy
hire nor describe strategy.
Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 Does not include demographic data
Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 0 Does not describe hiring partners
Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 0 Does not describe hiring targets
2.4 Sub-Total:50 12
Owners
Number of Owners:1
Number of Owners that live within the City of Fresno:1
Number of Owners that live in the County of Fresno:0
Number of Owners that Own a Business in the City of Fresno:1
51%+ ownership interest percent of the Owners live or own a business in the City: Score 80 80 80
51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40 -
Less than 50 percent equity of the Owners live or own a business in the City (If no owners are local,
score zero)20 20 -
Managers
Number of Managers (salaried, non-owners)5
Number of Managers that live in the City of Fresno:
Number of Managers that Own a Business in the City of Fresno:
Criteria Narrative:
Criteria Narrative:
Data, non-scored. Write response in Evaluation Notes
column.
Data, non-scored. Write response in Evaluation Notes
column.
IF full points achieved for Ownership category, don't score managers.
Section is total of 80 points possible.
2.3 Describe compensation to and opportunities for continuing education and employee training.(20 points possible)
2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. (50
points possible)
2.5 Describe the extent to which the Commercial Cannabis Business will be a locally managed enterprise whose owners and /or managers reside within or own a commercial business within the City of Fresno, for at least one year prior
to March 2, 2020.(80 points possible)
100 percent of the Managers live or own a business in the City: Score
20 20 0
Does not describe local manager. Describes 4
individuals as "active in local business community"
but doesn't specify if they live or own a business in
Fresno (Kenneth, Sonny, Tiffany, Mike)
75 to 99 percent of the Managers live or own a business in the City: Score 15 15 0
50 to 74 percent of the Managers live or own a business in the City: Score 10 10 0
Less than 50 percent of the Managers live or own a business in the City: Score 5 5 0
2.5 Sub-Total:80 80
Responsibilities Described for All Titles/Positions: Score
20 20 15 10 10
Does not describe all positions. Some positions
listed in Business Plan not described.
2.6 Sub-Total:20 10
Does CCB have more than five employees: 5 5 5
CCB has signed a peace agreement: Score 5 5 5
2.7 Sub-Total:10 10
Work Force Plan Provided: Score 10 10 8 6 10
Commitment to Local Hire Provided:10 10 8 6 10 commits to minimum 30% local hire
Commitment to Offer Apprenticeships Provided:10 10 8 6 0 does not describe apprenticeship program
Commitment paying for continuing education provided 10 10 8 6 6
Describes internal training but not paying for
continuing education
Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10
2.8 Sub-Total:50 36
CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 60 Offers shelf space and cooperation but lacks detail.
Mentorship and Training: Score
Equipment Donation: Score
Shelf Space: Score yes
Legal Assistance: Score
Criteria Narrative:
2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf
space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support.(100 points possible)
Criteria Narrative:
Data to inform score on first line of this section. Write
response in Evaluation Notes column.
2.8.3. Commitment to pay a living wage to its employees
2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible)
2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible)
2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible)
2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an
application for employment with the applicant/permittee.
2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and
Criteria Narrative:
Criteria Narrative:
Finance Services Assistance: Score
Other Technical Assistance: Score
Scoring Guidance: full points for willingness to serve with detailed plan offering at least three aspects
mentioned above or of similar benefit. Less points for willingness to serve but vague or unclear
commitment. Zero points if there is no clear commitment to serve as Incubator.
2.9 Sub-Total:100 60
Section 2 Total:400 241
SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3
CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 6 Needs more detail
CCB will established a dedicated contact person to receive complaints: Score 10 10 10
CCB will establish a dedicated phone number to receive complaints: Score 5 5 5
CCB will establish a dedicated email address to receive complaints: Score 5 5 5
CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 0 Info not provided
CCB will schedule or participate in periodic community meetings to engage with residents about the CCB
operation: Score 10 10 0 Info not provided
Other measure unique to business (i.e. website complaint form)5 5 5
Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points
for leaving out aspect, vagueness, or reactive plans.
3.1 Sub-Total:50 31
CCB will maintain a listserv of community residents to update and information residents of business
operations.
10 10 0 Info not provided
CCB will schedule or attend periodic community meetings (at least annually) to engage with residents
about the CCB operation: Score 10 10 0 Info not provided
CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 30 Needs more detail
CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Info not provided
CCB will hire residents from the community work at the CCB: Score 20 20 0 Info not provided
Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness,
or reactive plans.
3.2 Sub-Total:100 30
CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Info not provided
CCB has prepared a nuisance odor control plan: Score 10 10 8 6 8 Needs more detail
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible)
3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible)
3.3 Describe odor mitigation practices.(40 points possible)
Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary:
Score 5 5 0 Needs more specificity
Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting
the premise boundary: Score 5 5 5
CCB has established an odor reporting system: Score 5 5 0 Info not provided
CCB will install a nuisance odor monitoring system: Score 10 10 0 Info not provided
3.3 Sub-Total:40 13
CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 0 Needs more specificity
Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans.
3.4 Sub-Total:10 0
Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 10
Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10
Odor control measures are identified for different nuisance odor sources: Score 10 10 10
3.5 Sub-Total:30 30
Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for
odor control measures: Score 10 10 10
Nuisance odor control plan describes the staff training required for system operations, maintenance,
repair, and troubleshooting.10 10 0 Info not provided
3.6 Sub-Total:20 10
CCB has identified the sources of waste generated by the business operation: Score
10 10 0 Info not provided
CCB has prepared a source-separation plan to segregate different sources of waste generated by
business operations: Score 10 10 10
The source-separation plan identifies policy, procedures, and locations where different sources of waste
are to be collected for disposal: Score 10 10 8 6 6 Needs more detail
The source-separation plan describes specific measures to control the collection and disposal cannabis
waste: Score 10 10 10
The name of licensed cannabis disposal company provided: Score 10 10 0 Info not provided
3.7 Sub-Total:50 26
Section 3 Total:300 140
Criteria Narrative:
3.7 Describe the waste management plan. (50 points possible)
Criteria Narrative:
3.4 Identify potential sources of odor. (10 points possible)
3.5 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. (30 points possible)
3.6 Describe all proposed staff odor training and system maintenance.(20 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
SECTION 4: SAFETY PLAN 300 Points Possible for Section 4
Safety Plan Prepared by Consultant: Score 10 10 10
Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 10
Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 10
Safety Plan includes Site Plan of Premise: Score 10 10 10
Safety Plan includes Building Layout Plan: Score 10 10 10
4.1 Sub-Total:50 50
Written Accident/Incident Procedure Provided: Score 20 20 15 10 10 mentioned not provided
Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 none provided
Total Number of Scenarios Described: Score 0
Active Shooter Incident Described: Score 10 10 0 not mentioned
Robbery Incident Described: Score 10 10 0 not mentioned
4.2 Sub-Total:50 10
Evacuation Plan Provided: Score 20 20 15 10 20
Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 20
Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 10
4.3 Sub-Total:50 50
Location of Fire Suppression System Elements Identified: Score 10 10 10
Type of Fire Suppression System Elements Identified: Score 20 20 15 10 20
Location of Fire Extinguishers Identified: Score 10 10 10
Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 10
4.4 Sub-Total:50 50
Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 0 not addressed, no written procedures
Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 0 "
Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 not mentioned
Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 not mentioned
Other Medical Emergency Conditions Described: Score 20 20 15 10 0 not mentioned
4.5 Sub-Total:100 0
Section 4 Total:300 160
4.3 Describe evacuation routes. (50 points possible)
4.2 Describe accident and incident reporting procedures. (50 points possible)
Criteria Narrative:
4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible)
4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible)
Criteria Narrative:
Data-write response in Evaluation Notes Column
SECTION 5: SECURITY PLAN 300 Points Possible for Section 5
Security Plan Prepared by Consultant: Score 10 10 0 Completed internally
Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 10
Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 10
Security Plan includes Site Plan of Premise: Score 10 10 0 No site plan attached
Security Plan includes Building Layout Plan: Score 10 10 10
5.1 Sub-Total:50 30
Premises (Security) Diagram Provided: Score 20 20 15 10 20
Diagram is drawn to correct scale: Score 5 5 5
Diagram provides required details for premise: Score 5 5 5
Diagram shows the location of all security cameras: Score 5 5 5
Descriptions of activities to be conducted in each area of the premise 5 5 5
Limited-Access Areas Clearly Marked: Score 5 5 0 Not clearly marked
Number and Location of All Security Cameras Identified: Score 5 5 5
5.2 Sub-Total:50 45
Intrusion Alarm and Monitoring System Identified: Score 15 15 15
Name and Contact Information for Monitoring Company Provided: Score 5 5 5
Total Points of Entry into Premise Identified: Score 5 5 5
All Points of Entry to be Alarmed Identified:5 5 5
Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10
Backup Power Supply Identified: Score 10 10 10
5.3 Sub-Total:50 50
Written Cash-Handling Procedure Provided: Score 30 30 20 15 20
Dual-Custody is Practiced for all cash handling: Score 10 10 10
5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to
the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and
testing areas.
5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible)
5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices
(Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area.
5.2.5 Number and location of all video surveillance cameras. (50 points possible)
5.4 Briefly describe cash handling procedures which covers day to day transactions with customers, vendors armor carrier vehicles and transporting it to the bank.(100 points possible)
5.3 Identify intrusion alarm and monitoring system including the name and contact information for the monitoring company (if the company has been selected).(50 points possible)
Criteria Narrative:
Criteria Narrative:
5.2 Premises (Security) Diagram. In addition to diagrams submitted for other sections of the application, applicants are expected to submit a premises diagram (or site plan) which, focuses on the proposed security measures and how
they relate to the overall business. (Pursuant to CCR Title 16, Division 42, §5006. Premises Diagram).
5.2.1 The diagram shall be accurate, dimensioned and to scale (minimum scale ¼"). The scale may be smaller if the proposed location exceeds more than a 1/2-acre parcel but must not be printed on larger than an 11" x 17" sheet of
paper. (Blueprints and engineering site plans are not required at this point of the application process)
5.2.2 The diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows, and doorways. The activity in each room and the location of all cameras must be
identified in the diagram.
Criteria Narrative:
Video Surveillance Used to Monitor All Cash Handling: Score 20 20 20
Armored Car Service Used for Bank Deposits: Score 10 10 10
All Cash Deposited weekly with Bank: Score 10 10 0 No mention of deposit frequency
Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20
5.4 Sub-Total:100 80
CCB will use onsite security guards: Score 10 10 10
All onsite guards will be licensed and bonded: Score 10 10 0 No mention of being bonded
All onsite security guards will be licensed to carry firearms: Score 10 10 0 No mention of firearms
Onsite security guards will be on duty before CCB opens for business: Score 10 10 10
Onsite security guards will be on duty after CCB closes for business: Score 10 10 10
5.5 Sub-Total:50 30
Section 5 Total:300 235
Section 1: Business Plan Total Points:300 169
Section 2: Social Policy & Local Enterprise Total Points:400 241
Section 3: Neighborhood Compatibility Total Points:300 140
Section 4: Safety Plan Total Points:300 160
Section 5: Security Plan Total Points:300 235
Total Points Achieved:1600 945
59.06%
TOTAL SCORE
5.5 Discuss whether the CCB will utilize the services of on-site security guards. Include in the discussion: (50 points possible)
5.5.1 Number of guards.
5.5.2 Hours guards will be on-site.
Criteria Narrative:
Criteria Narrative:
5.5.3 Locations at which they will be positioned.
5.5.4 Guards' roles and responsibilities.
Pietro De Santis
340 W Cromwell Ave #101
Fresno, CA 93711
559-840-2081
December 3, 2020
Hemp Valley LLC
PO Box 2024
Clovis, California 93613
Re: Letter of Intention to Lease
To whom it may concern:
This letter will serve to notify you that I agree to lease property that I own at 4672 N
Blackstone Ave; Fresno, CA 93726 to Hemp Valley LLC for your use as a cannabis retail
dispensary. The lease will comply with FMC Section 9-3318(b), including that the property will
be leased at fair market value.
Sincerely,
Pietro De Santis
TitleWorks / Page 1 of 3
TitleWorks / Page 2 of 3
TitleWorks / Page 3 of 3
PLANNING AND DEVELOPMENT DEPARTMENT
2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director
Fresno, California 93721-3604
(559) 621-8277 FAX (559) 498-1026
November 17, 2020 Please reply to:
Rob Holt
(559) 621-8056
Tiffany Bean
De Santis Commercial
P.O. Box 28333
Fresno, CA 93729
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20-03893 REQUESTING INFORMATION
REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 4672
NORTH BLACKSTONE AVENUE
(APN 427-171-25)
Thank you for your inquiry regarding the allowance of new cannabis retail uses. The requested
information about cannabis retail uses was analyzed using Article 27, Chapter 15 of the Fresno
Municipal Code (FMC) of the City of Fresno. Please note, all research for this inquiry is based
on existing land development of the subject property. If there are multiple buildings on the
subject property, this research was based on the address provided in the request. This research
does not take into effect of future development unless provided in your application request. With
that, research of a proposed cannabis retail business on the subject property conveys the
following:
1. All cannabis retail businesses must be located on property zoned DTN (Downtown
Neighborhood), DTG (Downtown General), CMS (Commercial Main Street), CC
(Commercial Community), CR (Commercial Regional), CG (Commercial General), CH
(Commercial Highway), NMX (Neighborhood Mixed-Use), CMX (Corridor/Center Mixed-
Use), RMX (Regional Mixed-Use), and must meet all of the requirements for
development in these zones, including, but not limited to, parking, lighting, building
materials, etc.
The subject property is zoned CMX , which is one of the allowable zone districts for
cannabis retail businesses. Development standards of the CMX zone district are
available in Sections 15-1103, 15-1104, and 15-1105 of the FMC. The subject location
meets the zone district requirement, per Section 15-2739.B.1.a of the FMC, for a
cannabis retail business.
2. All building(s) in which a cannabis retail business is located shall be no closer than 800
feet from any property boundary containing the following: (1) A cannabis retail business;
(2) A school providing instruction for any grades pre-school through 12 (whether public,
private, or charter, including pre-school, transitional kindergarten, and K-12); (3) A day
care center licensed by the state Department of Social Services that is in existence at
the time a complete commercial cannabis business permit application is submitted; and,
(4) A youth center that is in existence at the time a complete commercial cannabis
business permit is submitted.
Zoning Inquiry P20-03893
4672 North Blackstone Avenue
Page 2
November 17, 2020
Although the subject property is located within 800 feet of Storyland Day Care Center,
which is a day care center licensed by the state Department of Social Services that is
currently in existence, the existing multi-tenant retail building on the subject property is
not located within 800 feet of the property boundary of any of the above-mentioned uses.
Thus, this location requirement is in compliance so long as the cannabis retail business
is located within the multi-tenant retail building. 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 2 cannabis retail businesses may be located in any one Council District. If
more than 14 are ever authorized by Council (more than 2 per Council District), they
shall be dispersed evenly by Council District.
The subject property is in Council District 4. There are currently no cannabis retail
businesses located in Council District 4. 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 559-621-8056 or at Robert.Holt@fresno.gov.
Cordially,
Rob Holt, Planner III
Development Services Division
Planning and Development Department
OPERATING AGREEMENT
for
HEMP VALLEY LLC
This Operating Agreement is made as of September 24, 2020, by Pietro De Santis
(referred to individually as the “Sole Member,” as a “Member,” or as “Members”) with reference
to the following facts:
A. Hemp Valley LLC (the “Company”) was formed on September 24, 2020, when
Articles of Organization were filed with the California Secretary of State.
B. The Sole Member enters into this Operating Agreement in order to provide for the
governance of the Company and the conduct of its business, and to specify rights and obligations
of potential Members who may join the Company in the future.
NOW THEREFORE, the Sole Member declares the following:
ARTICLE I. DEFINITIONS
Capitalized terms used in this Agreement have the meanings specified in this Article or
elsewhere in this Agreement and when not so defined shall have the meanings set forth in
California Corporations Code § 17001.02.
“Act” means the California Revised Uniform Limited Liability Company Act
(Corporations Code §§ 17701.01-17713.13), including amendments from time to time.
“Agreement” means this Operating Agreement, as originally executed and amended from
time to time.
“Articles of Organization” is defined in Corporations Code § 17701.02(b) as applied to
this Company.
“Assignee” means a person who has acquired a Member’s Economic Interest in the
Company, by way of a Transfer in accordance with the terms of this Agreement, but who has not
become a Member.
“Assigning Member” means a Member who by means of a Transfer has transferred an
Economic Interest in the Company to an Assignee.
“Capital Account” means, with respect to any Member, the account reflecting the capital
interest of the Member in the Company, consisting of the Member’s initial Capital Contribution
maintained and adjusted in accordance with Sections III.1. and III.2.
“Capital Contribution” means, with respect to any Member, the amount of money or
services rendered or to be rendered, and the fair market value of any property or services
2
contributed to the Company (net of liabilities secured by the contributed property that the
Company is considered to assume or take “subject to” under Internal Revenue Code § 752) in
consideration of a Membership Interest held by that Member. A Capital Contribution shall not
be deemed a loan.
“Capital Event” means a sale or disposition of any of the Company’s capital assets, the
receipt of insurance and other proceeds derived from the involuntary conversion of Company
property, the receipt of proceeds from a refinancing of Company property, or a similar event
with respect to Company property or assets.
“Corporations Code” means the California Corporations Code.
“Economic Interest” means a Person’s right to share in the income, gains, losses,
deductions, credit, or similar items of, and to receive distributions from, the Company but does
not include any other rights of a Member, including the right to vote or to participate in
management.
“Encumber” means the act of creating or purporting to create an Encumbrance, whether
or not perfected under applicable law.
“Encumbrance” means, with respect to any Membership Interest or any element thereof,
a mortgage, pledge, security interest, lien, proxy coupled with an interest, option, or preferential
right to purchase.
“Initial Member” means the Sole Member.
“Involuntary Transfer” means, with respect to any Membership Interest or any element
thereof, any Transfer or Encumbrance, whether by operation of law, under court order,
foreclosure of a security interest, execution of a judgment or other legal process, or otherwise,
including a purported transfer to or from a trustee in bankruptcy, a receiver, or an assignee for
the benefit of creditors.
“IRC” means the Internal Revenue Code of 1986, as amended, and any successor
provision.
"Losses” means, for each fiscal year or other period specified in this Agreement, an
amount equal to the Company's taxable loss for such year or period, determined in accordance
with IRC § 703(a).
“Majority of Members” means a Member or Members whose Percentage Interests
represent more than 50 percent of the Percentage Interests of all Members.
"Meeting" is defined in Section V.2.
“Member” means the Initial Member or a Person who otherwise acquires a Membership
Interest, as permitted under this Agreement, and who remains a Member.
3
“Membership Interest” means a Member’s rights in the Company, collectively, including
the Member’s Economic Interest, any right to Vote or participate in management, and any right
to information concerning the business and affairs of the Company.
“Notice” means a written notice required or permitted under this Agreement. A notice
shall be deemed given or sent when deposited, as certified mail or for overnight delivery, postage
and fees prepaid, in the United States mail; when delivered to Federal Express or United Parcel
Service for overnight delivery, charges prepaid or charged to the sender’s account; when
personally delivered to the recipient; when transmitted by fax or other electronic means, and
such transmission is electronically confirmed as having been successfully transmitted; or when
delivered to the home or office of a recipient in the care of a person whom the sender has reason
to believe will promptly communicate the notice to the recipient.
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an
act or omission of the party to be notified shall be deemed effective as of the first date that the
notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or
overnight delivery service.
Any Member may change his, her, or its address, electronic mail address, or fax number
by giving Notice of the change to all other Members.
“Percentage Interest” means a fraction, expressed as a percentage, the numerator of
which is the total of a Member’s Capital Account and the denominator of which is the total of all
Capital Accounts of all Members.
“Person” means an individual, partnership, limited partnership, trust, estate, association,
corporation, limited liability company, or other entity, whether domestic or foreign.
“Profits” means, for each fiscal year or other period specified in this Agreement, an
amount equal to the Company's taxable income for such year or period, determined in
accordance with IRC § 703(a).
“Proxy” has the meaning set forth in the first paragraph of Corporations Code §
17001(ai). A Proxy may not be transmitted orally.
“Regulations” or “Reg” means the income tax Regulations promulgated by the United
States Department of the Treasury and published in the Federal Register for the purpose of
interpreting and applying the provisions of the IRC, as such Regulations may be amended from
time to time, including corresponding provisions of applicable successor Regulations.
“Transfer” means, with respect to a Membership Interest or any element of a Membership
Interest, any sale, assignment, gift, Involuntary Transfer, Encumbrance, or other disposition of
such a Membership Interest or any element of such Membership Interest, directly or indirectly.
4
“Triggering Event” is defined in Section VIII.3.
“Vote” means a written consent or approval, a ballot cast at a meeting, or a voice vote.
“Voting Interest” means, with respect to a Member, the right to Vote or participate in
management and any right to information concerning the business and affairs of the Company
provided under the Act, except as limited by the provisions of this Agreement.
ARTICLE II. ARTICLES OF ORGANIZATION
1. Name
The name of the Company is Hemp Valley LLC.
2. Address of Company
The principal executive office of the Company shall be 340 West Cromwell Avenue,
Suite 101, Fresno, California 93711, or such other place as may be determined by the Members
from time to time.
3. Agent for Service of Process
The initial agent for service of process on the Company shall be LEGALZOOM.COM.
The Company may from time to time change its agent for service of process.
4. Limited Liability Company
The Members intend the Company to be a limited liability company under the Act. No
Member shall take any action inconsistent with the express intent of the parties to this
Agreement.
5. Members as Managers
The Members shall be the managers of the Company.
ARTICLE III. CAPITALIZATION
1. Capital Contributions
Any Member may contribute money or property to the capital of the Company as the
Member’s Capital Contribution.
2. Capital Accounts
5
An individual Capital Account shall be maintained for each Member consisting of that
Member's Capital Contribution, (1) increased by that Member's share of Profits, (2) decreased by
that Member's share of Losses, and (3) adjusted as required in accordance with this Agreement
and applicable provisions of the IRC and Regulations.
3. Withdrawals
A Member shall not be entitled to withdraw any part of the Member’s Capital
Contribution or to receive any distributions, whether of money or property, from the Company
except as provided in this Agreement.
4. Interest
No interest shall be paid on Capital Contributions or on the balance of a Member’s
Capital Account.
5. Limited Liability
A Member shall not be bound by, or be personally liable for, the expenses, liabilities, or
obligations of the Company except as otherwise provided in the Act or in this Agreement.
6. No Priority of Return
No Member shall have priority over any other Member with respect to the return of a
Capital Contribution or distributions or allocations of Profits, gains, Losses, deductions, credits,
or items thereof.
IV. ALLOCATIONS AND DISTRIBUTIONS
1. Allocation of Profits and Losses
The Profits and Losses of the Company and all items of Company income, gain, loss,
deduction, or credit shall be allocated, for Company book purposes and for tax purposes, to a
Member in accordance with the Member’s Percentage Interest.
2. Qualified Income Offset
If any Member unexpectedly receives any adjustment, allocation, or distribution
described in Reg sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-
1(b)(2)(ii)(d)(6), items of Company gross income and gain shall be specially allocated to that
Member in an amount and manner sufficient to eliminate any deficit balance in the Member’s
Capital Account created by such adjustment, allocation, or distribution as quickly as possible.
Any special allocation under this Section IV.2. shall be taken into account in computing
subsequent allocations of Profits and Losses so that the net amount of allocations of income and
loss and all other items shall, to the extent possible, be equal to the net amount that would have
6
been allocated if the unexpected adjustment, allocation, or distribution had not occurred. The
provisions of this Section IV.2. and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Reg sections 1.704-1(b) and
1.704-2 and shall be interpreted and applied in a manner consistent with such Regulations.
3. Allocations Respecting Asset Distributions
Any unrealized appreciation or unrealized depreciation in the values of Company
property distributed in kind to all the Members shall be deemed to be Profits or Losses realized
by the Company immediately prior to the distribution of the property and such Profits or Losses
shall be allocated to the Members’ Capital Accounts in the same proportions as Profits are
allocated under Section IV.1. Any property so distributed shall be treated as a distribution to the
Members to the extent of the fair market value of the property less the amount of any liability
secured by and related to the property. Nothing contained in this Agreement is intended to treat
or cause such distributions to be treated as sales for value. For the purposes of this Section IV.3.,
“unrealized appreciation” or “unrealized depreciation” shall mean the difference between the fair
market value of such property and the Company’s basis for such property.
4. Allocations Between Assignor and Assignee
In the case of a Transfer of an Economic Interest during any fiscal year, the Assigning
Member and Assignee shall each be allocated the Economic Interest’s share of Profits or Losses
based on the number of days each held the Economic Interest during that fiscal year.
5. Distributions
All cash resulting from the normal business operations of the Company and from a
Capital Event shall be distributed among the Members in proportion to their Percentage Interests
at such times as the Members may agree.
6. Non-Cash Proceeds
If the proceeds from a sale or other disposition of a Company asset consist of property
other than cash, the value of such property shall be as determined by the Members. Such non-
cash proceeds shall then be allocated among all the Members in proportion to their Percentage
Interests. If such non-cash proceeds are subsequently reduced to cash, such cash shall be
distributed to each Member in accordance with Section IV.5.
7. Liquidating Proceeds
Notwithstanding any other provisions of this Agreement to the contrary, when there is a
distribution in liquidation of the Company, or when any Member’s interest is liquidated, all items
of income and loss first shall be allocated to the Members’ Capital Accounts under this Article
IV., and other credits and deductions to the Members’ Capital Accounts shall be made before the
7
final distribution is made. The final distribution to the Members shall be made to the Members
to the extent of and in proportion to their positive Capital Account balances.
8. Compliance With Law and Regulations
It is the intent of the Members that each Member’s allocated share of Company tax items
be determined in accordance with this Agreement to the fullest extent permitted by IRC and
California tax laws. Notwithstanding anything to the contrary contained in this Agreement, if the
Company is advised that, as a result of the adoption of new or amended regulations under IRC or
California tax laws or the issuance of authorized interpretations, the allocations provided in this
Agreement are unlikely to be respected for federal or state tax purposes, on advice of accountants
and legal counsel, the allocation provisions of this Agreement shall thereby be amended to the
minimum extent necessary to cause such allocation provisions to be respected for federal or state
tax purposes.
V. MANAGEMENT
1. Management by All Members
The business of the Company shall be managed by all the Members. Unless otherwise
provided in this Agreement, all decisions concerning the management of the Company’s
business shall be made by the Vote of a Majority of Members.
2. Procedure for Action by Members
The Members are not required to hold meetings, and decisions may be reached through
one or more informal consultations followed by action by a Majority of Members, provided that
all Members are consulted (although all Members need not be present during a particular
consultation), or by a written consent signed by a Majority of Members. In the event that
Members wish to hold a formal meeting (a “Meeting”) for any reason, the following procedures
shall apply:
(1) Any Member may call a Meeting of the Members by giving Notice of the time and
place of the Meeting at least 72 hours prior to the time of the holding of the Meeting. The Notice
need not specify the purpose of the Meeting.
(2) A majority of Members shall constitute a quorum for the transaction of business at
any Meeting of the Members.
(3) At all meetings of Members, a Member may Vote in person or by Proxy. Such Proxy
shall be communicated to the Company through the Agent for Service of Process before or at the
time of the meeting.
(4) The transactions of the Members at any Meeting, however called or noticed, or
wherever held, shall be as valid as though transacted at a Meeting duly held after call and notice
8
if a quorum is present and if, either before or after the Meeting, each Member not present signs a
written waiver of Notice, a consent to the holding of the Meeting, or an approval of the minutes
of the Meeting.
(5) Any action required or permitted to be taken by the Members under this Agreement
may be taken without a Meeting if a Majority of Members individually or collectively consent in
writing to such action.
(6) Members may participate in the Meeting through the use of a conference telephone
or similar communications equipment, provided that all Members participating in the Meeting
can hear one another.
(7) The Members shall keep or cause to be kept with the books and records of the
Company full and accurate minutes of all Meetings, Notices, and waivers of Notices of
Meetings, and all written consents in lieu of Meetings.
3. Officers of the Company
The Company may have one or more officers, who may be, but need not be, Members. A
Majority of Members may provide for the election of officers and their powers, duties, and
compensation.
VI. ACCOUNTS AND RECORDS
1. Accounts
Complete books of account of the Company's business, in which each Company
transaction shall be fully and accurately entered, shall be kept, and shall be open to inspection
and copying by each Member or the Member's authorized representatives on reasonable Notice
during normal business hours. The costs of such inspection and copying shall be borne by the
Member.
2. Records
At all times during the term of existence of the Company, and beyond that term if a
Majority of Members deem it necessary, the Members shall keep or cause to be kept the books of
account referred to in Section VI.1., and the following:
(a) A current list of the full name and last known business or residence address of
each Member, together with the Capital Contribution and the share in Profits and Losses of each
Member;
(b) A copy of the Articles of Organization, as amended;
(c) Copies of the Company's federal, state, and local income tax or information
returns and reports, if any, for the six most recent taxable years;
9
(d) Executed counterparts of this Agreement, as amended;
(e) Financial statements of the Company for the six most recent fiscal years; and
(f) The Books and Records of the Company as they relate to the Company's
internal affairs.
If a Majority of Members deem that any of the foregoing items shall be kept beyond the
term of existence of the Company, the repository of said items shall be as designated by a
Majority of Members.
3. Income Tax Returns
Within 90 days after the end of each taxable year of the Company, the Company shall
send to each of the Members all information necessary for the Members to complete their federal
and state income tax or information returns, and a copy of the Company’s federal, state, and
local income tax or information returns for such year.
ARTICLE VII. MEMBERSHIP
1. Members and Voting
There shall be only one class of membership and no Member shall have any rights or
preferences in addition to or different from those possessed by any other Member. Each Member
shall Vote in proportion to the Member’s Percentage Interest as of the governing record date,
determined in accordance with Section VII.2. Any action that may or must be taken by the
Members shall be by a Majority of Members, except that any amendment of the Articles of
Organization or this Agreement shall require the unanimous Vote of the Members.
2. Record Dates
The record date for determining the Members entitled to Notice of any Meeting, to Vote,
or to receive any distribution shall be the date set by a Majority of Members, provided that such
record date shall not be more than 60, nor less than 10 days prior to the date of the Meeting, nor
more than 60 days prior to any other action.
ARTICLE VIII. TRANSFERS OF MEMBERSHIP INTERESTS
1. Withdrawal of Members
A Member may withdraw from the Company at any time by giving Notice of withdrawal
to all other Members at least 180 days before the effective date of withdrawal. Withdrawal shall
not release a Member from any obligations and liabilities under this Agreement accrued or
incurred before the effective date of withdrawal. A withdrawing Member shall divest the
10
Member's entire Membership Interest before the effective date of withdrawal in accordance with
and subject to the provisions of this Article VIII.
2. Restrictions on Transfer
Except as expressly provided in this Agreement, a Member shall not Transfer any part of
the Member’s Membership Interest in the Company, whether now owned or hereafter acquired,
unless (1) the other Members (if any) unanimously approve the transferee's admission to the
Company as a Member upon such Transfer, and (2) the Membership Interest to be transferred,
when added to the total of all other Membership Interests transferred, will not cause the
termination of the Company under the Corporations Code. No Member may Encumber or
permit or suffer any Encumbrance of all or any part of the Member’s Membership Interest in the
Company unless such Encumbrance has been approved in writing by all the other Members.
Any Transfer or Encumbrance of a Membership Interest without such approval shall be void.
3. Triggering Events
On the happening of any of the following events (“Triggering Event”) with respect to a
Member, the Company or the other Members shall have the option to purchase all or any portion
of the Membership Interest in the Company of such Member at the price and on the terms
provided in Section VIII.6. of this Agreement:
(a) the death or incapacity of a Member;
(b) the bankruptcy of a Member;
(c) the failure of a Member to make the Member’s Capital Contribution pursuant
to the provisions of Article III. of this Agreement;
(d) the withdrawal of a Member; or
(e) the occurrence of any other event that is, or that would cause, a Transfer in
contravention of this Agreement.
Each Member agrees promptly to give Notice of a Triggering Event to all other
Members.
4. Option Periods
On the receipt of Notice by the other Members as contemplated by Section VIII.1., and
on receipt of actual notice of any Triggering Event (the date of such receipt is hereinafter
referred to as the “Option Date”), Notice of the occurrence of such a Triggering Event shall be
given to each Member, and the Company shall have the option, for a period ending 60 days
following the determination of the purchase price as provided in Section VIII.6., to purchase the
Membership Interest in the Company to which the option relates, at the price and on the terms
11
provided in Section VIII.6., and the other Members, pro rata in accordance with their prior
Membership Interests in the Company, shall then have the option, for a period of 60 days
thereafter, to purchase the Membership Interest in the Company not purchased by the Company,
on the same terms and conditions as apply to the Company. If all other Members do not elect to
purchase the entire remaining Membership Interest in the Company, then the Members electing
to purchase shall have the right, pro rata in accordance with their prior Membership Interests in
the Company, to purchase the additional Membership Interest in the Company available for
purchase. The transferee of the Membership Interest in the Company that is not purchased shall
hold such Membership Interest in the Company subject to the provisions of this Agreement.
5. Nonparticipation of Interested Member
No Member shall participate in any Vote or decision in any matter pertaining to the
disposition of that Member’s Membership Interest in the Company under this Agreement.
6. Option Purchase Price
The purchase price of the Membership Interest that is the subject of an option under this
Agreement shall be the fair market value of such Membership Interest as determined under this
Section VIII.6. Each of the selling and purchasing parties shall use his, her, or its best efforts to
mutually agree on the fair market value. If the parties are unable to so agree within 30 days of
the Option Date, the selling party shall appoint, within 40 days of the Option Date, one appraiser,
and the purchasing party shall appoint, within 40 days of the Option Date, one appraiser. The
two appraisers shall within a period of ten additional days, agree on and appoint an additional
appraiser. The three appraisers shall, within 60 days after the appointment of the third appraiser,
determine the fair market value of the Membership Interest in writing and submit their report to
all the parties. The fair market value shall be determined by disregarding the appraiser’s
valuation that diverges the greatest from each of the other two appraisers’ valuations, and the
arithmetic mean of the remaining two appraisers’ valuations shall be the fair market value. Each
purchasing party shall pay for the services of the appraiser selected by it, plus one-half of the fee
charged by the third appraiser.
7. Substituted Member
Except as expressly permitted under Section VIII.2., a prospective transferee (other than
an existing Member) of a Membership Interest may be admitted as a Member with respect to
such Membership Interest (“Substituted Member”) only (1) on the unanimous Vote of the other
Members in favor of the prospective transferee’s admission as a Member, and (2) on such
prospective transferee's executing a counterpart of this Agreement as a party hereto. Any
prospective transferee of a Membership Interest shall be deemed an Assignee, and, therefore, the
owner of only an Economic Interest until such prospective transferee has been admitted as a
Substituted Member.
8. Duties of Substituted Member
12
Any person admitted to the Company as a Substituted Member shall be subject to all
provisions of this Agreement.
9. Securities Laws
The initial sale of Membership Interests in the Company to the initial Members has not
been qualified or registered under the securities laws of any state, or registered under the
Securities Act of 1933, as amended, in reliance upon exemptions from the registration provisions
of those laws. No attempt has been made to qualify the offering and sale of Membership
Interests to Members under the California Corporate Securities Law of 1968, as amended.
10. Spouse or Domestic Partner
If, in connection with the divorce or dissolution of the marriage of a Member, any court
issues a decree or order that transfers, confirms, or awards a Membership Interest, or any portion
of it, to that Member’s spouse, or if a Member’s spouse receives a Membership Interest by any
other means (an “Award”), then, notwithstanding that the transfer would constitute an
unpermitted Transfer under this Agreement, that Member shall have the right to purchase from
his or her former spouse the Membership Interest, or portion of it, that was so transferred, and
the former spouse shall sell the Membership Interest or portion of it to that Member at the price
set forth in Section VIII.6. of this Agreement. If the Member has failed to consummate the
purchase within 180 days after the Award (the “Expiration Date”), the Company and the other
Members shall have the option to purchase from the former spouse the Membership Interest or
portion of it under Section VIII.6. of this Agreement, provided that the option period shall
commence on the later of (1) the day following the Expiration Date, or (2) the date of actual
notice of the Award. Each Member shall obtain the consent of his spouse to this provision, in the
form provided herein as Attachment A.
ARTICLE IX. DISSOLUTION AND WINDING UP
1. Events of Dissolution
The Company shall be dissolved on the first to occur of the following events:
(a) By the Vote of a Majority of Members to dissolve the Company.
(b) The sale or other disposition of substantially all of the Company assets.
(c) Entry of a decree of judicial dissolution pursuant to California Corporations
Code § 17351.
2. Winding Up
On the dissolution of the Company, it shall engage in no further business other than that
necessary to wind up the business and affairs of the Company. The Persons winding up the
affairs of the Company shall give written notice of the commencement of winding up by mail to
13
all known creditors and claimants against the Company whose addresses appear in the records of
the Company. After paying or adequately providing for the payment of all known debts of the
Company, the remaining assets of the Company shall be distributed or applied in the following
order of priority:
(a) To pay the expenses of liquidation, including reasonable compensation to
Members for winding up the affairs of the Company.
(b) Among the Members in accordance with the provisions of Article IV.7.
3. Deficits
Each Member shall look solely to the assets of the Company for the return of the
Member’s investment, and if the Company property remaining after the payment or discharge of
the debts and liabilities of the Company is insufficient to return the investment of any Member,
such Member shall have no recourse against any other Members for indemnification,
contribution, or reimbursement.
ARTICLE X. INDEMNIFICATION AND ARBITRATION
1. Indemnification
The Company shall have the power to indemnify any Person who was or is a party, or
who is threatened to be made a party, to any proceeding by reason of the fact that such Person
was or is a Member, manager, officer, employee, or other agent of the Company, or was or is
serving at the request of the Company as a director, officer, employee, or other Agent of another
limited liability company, corporation, partnership, joint venture, trust, or other enterprise,
against Expenses, judgments, fines, settlements, and other amounts actually and reasonably
incurred by such Person in connection with such proceeding, if such Person acted in good faith
and in a manner that such Person reasonably believed to be in the best interests of the Company.
The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that the Person did not
act in good faith and in a manner that such Person reasonably believed to be in the best interests
of the Company.
“Expenses,” as used in this Section X.1., include, without limitation, attorney fees and
expenses of establishing a right to indemnification, if any, under this Article.
2. Arbitration
Except for an action brought in small claims court, any other action to enforce or interpret
this Agreement or to resolve disputes between the Members shall be settled by arbitration in
accordance with the rules of the American Arbitration Association or a similar organization.
Any party may commence arbitration by sending a written demand for arbitration to the other
parties. Such demand shall set forth the nature of the matter to be resolved by arbitration.
14
Arbitration shall be conducted at San Francisco or Oakland, California. The substantive law of
the State of California shall be applied by the arbitrator to the resolution of the dispute. The
parties shall share equally all initial costs of arbitration. All decisions of the arbitrator shall be
final, binding, and conclusive on all parties. Judgment may be entered upon any such decision in
accordance with applicable law in any court having jurisdiction thereof.
ARTICLE XI. GENERAL PROVISIONS
1. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.
2. Governing Law, Severability
This Agreement shall be construed and enforced in accordance with the laws of the State
of California. If any provision of this Agreement is determined by any court of competent
jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall,
if possible, be construed as though more narrowly drawn, if a narrower construction would avoid
such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to
the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining
provisions of this Agreement shall remain in effect.
3. Benefit
This Agreement shall be binding on and inure to the benefit of the parties and their
permitted successors and assigns.
4. Number and Gender
Whenever used in this Agreement, the singular shall include the plural, the plural shall
include the singular, the male shall include the female, and the neuter gender shall include the
male and female as well as a company, corporation, firm, or trust, all as the context and meaning
of this Agreement may require.
5. Authority to Contract
Each Member represents and warrants to the other Members that the Member has the
capacity and authority to enter into this Agreement.
6. Amendment
This Agreement may be altered, amended, or repealed only by a writing signed by all of
the Members.
15
7. Time of the Essence
Time is of the essence of every provision of this Agreement that specifies a time for
performance.
8. No Third-Party Beneficiary
This Agreement is made solely for the benefit of the parties to this Agreement and their
respective permitted successors and assigns, and no other person shall have or acquire any right
by virtue of this Agreement.
9. Limited Liability Company
The Sole Member intends the Company to be a limited liability company under the Act.
No Member shall take any action inconsistent with the express intent of this Agreement.
10. Execution Clause
IN WITNESS WHEREOF, the Sole Member has executed or caused to be executed this
Agreement on the day and year first above written.
___________________
Pietro De Santis
16
Attachment A
CONSENT OF SPOUSE OR DOMESTIC PARTNER
The undersigned is the spouse or registered domestic partner of ____________________
and acknowledges that he/she has read the foregoing Operating Agreement dated September 24,
2020, 201*, and understands its provisions. The undersigned is aware that, by the provisions of
the Operating Agreement, he/she and his/her spouse or domestic partner have agreed to sell or
transfer all their Membership Interests in the Company, including any community property
interest or quasi-community property interest, in accordance with the terms and provisions of the
Operating Agreement. The undersigned agrees to disclaim any community property or quasi-
community property interest he/she may have in Membership Interests of the Company. The
undersigned expressly approves of and agrees to be bound by the provisions of the Operating
Agreement in its entirety, including, but not limited to, those provisions relating to the sales and
transfers of Membership Interests and the restrictions on them. If the undersigned predeceases
his/her spouse or domestic partner when his/her spouse or domestic partner owns any
Membership Interests in the Company, he/she agrees not to devise or bequeath whatever
community property interest or quasi-community property interest he/she may have in the
Company in contravention of the Operating Agreement.
Date: _________________ _______________________________
Signature
_______________________________
Printed Name
OPERATING AGREEMENT
for
HEMP VALLEY LLC
This Operating Agreement is made as of September 24, 2020, by Pietro De Santis
(referred to individually as the “Sole Member,” as a “Member,” or as “Members”) with reference
to the following facts:
A. Hemp Valley LLC (the “Company”) was formed on September 24, 2020, when
Articles of Organization were filed with the California Secretary of State.
B. The Sole Member enters into this Operating Agreement in order to provide for the
governance of the Company and the conduct of its business, and to specify rights and obligations
of potential Members who may join the Company in the future.
NOW THEREFORE, the Sole Member declares the following:
ARTICLE I. DEFINITIONS
Capitalized terms used in this Agreement have the meanings specified in this Article or
elsewhere in this Agreement and when not so defined shall have the meanings set forth in
California Corporations Code § 17001.02.
“Act” means the California Revised Uniform Limited Liability Company Act
(Corporations Code §§ 17701.01-17713.13), including amendments from time to time.
“Agreement” means this Operating Agreement, as originally executed and amended from
time to time.
“Articles of Organization” is defined in Corporations Code § 17701.02(b) as applied to
this Company.
“Assignee” means a person who has acquired a Member’s Economic Interest in the
Company, by way of a Transfer in accordance with the terms of this Agreement, but who has not
become a Member.
“Assigning Member” means a Member who by means of a Transfer has transferred an
Economic Interest in the Company to an Assignee.
“Capital Account” means, with respect to any Member, the account reflecting the capital
interest of the Member in the Company, consisting of the Member’s initial Capital Contribution
maintained and adjusted in accordance with Sections III.1. and III.2.
“Capital Contribution” means, with respect to any Member, the amount of money or
services rendered or to be rendered, and the fair market value of any property or services
2
contributed to the Company (net of liabilities secured by the contributed property that the
Company is considered to assume or take “subject to” under Internal Revenue Code § 752) in
consideration of a Membership Interest held by that Member. A Capital Contribution shall not
be deemed a loan.
“Capital Event” means a sale or disposition of any of the Company’s capital assets, the
receipt of insurance and other proceeds derived from the involuntary conversion of Company
property, the receipt of proceeds from a refinancing of Company property, or a similar event
with respect to Company property or assets.
“Corporations Code” means the California Corporations Code.
“Economic Interest” means a Person’s right to share in the income, gains, losses,
deductions, credit, or similar items of, and to receive distributions from, the Company but does
not include any other rights of a Member, including the right to vote or to participate in
management.
“Encumber” means the act of creating or purporting to create an Encumbrance, whether
or not perfected under applicable law.
“Encumbrance” means, with respect to any Membership Interest or any element thereof,
a mortgage, pledge, security interest, lien, proxy coupled with an interest, option, or preferential
right to purchase.
“Initial Member” means the Sole Member.
“Involuntary Transfer” means, with respect to any Membership Interest or any element
thereof, any Transfer or Encumbrance, whether by operation of law, under court order,
foreclosure of a security interest, execution of a judgment or other legal process, or otherwise,
including a purported transfer to or from a trustee in bankruptcy, a receiver, or an assignee for
the benefit of creditors.
“IRC” means the Internal Revenue Code of 1986, as amended, and any successor
provision.
"Losses” means, for each fiscal year or other period specified in this Agreement, an
amount equal to the Company's taxable loss for such year or period, determined in accordance
with IRC § 703(a).
“Majority of Members” means a Member or Members whose Percentage Interests
represent more than 50 percent of the Percentage Interests of all Members.
"Meeting" is defined in Section V.2.
“Member” means the Initial Member or a Person who otherwise acquires a Membership
Interest, as permitted under this Agreement, and who remains a Member.
3
“Membership Interest” means a Member’s rights in the Company, collectively, including
the Member’s Economic Interest, any right to Vote or participate in management, and any right
to information concerning the business and affairs of the Company.
“Notice” means a written notice required or permitted under this Agreement. A notice
shall be deemed given or sent when deposited, as certified mail or for overnight delivery, postage
and fees prepaid, in the United States mail; when delivered to Federal Express or United Parcel
Service for overnight delivery, charges prepaid or charged to the sender’s account; when
personally delivered to the recipient; when transmitted by fax or other electronic means, and
such transmission is electronically confirmed as having been successfully transmitted; or when
delivered to the home or office of a recipient in the care of a person whom the sender has reason
to believe will promptly communicate the notice to the recipient.
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an
act or omission of the party to be notified shall be deemed effective as of the first date that the
notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or
overnight delivery service.
Any Member may change his, her, or its address, electronic mail address, or fax number
by giving Notice of the change to all other Members.
“Percentage Interest” means a fraction, expressed as a percentage, the numerator of
which is the total of a Member’s Capital Account and the denominator of which is the total of all
Capital Accounts of all Members.
“Person” means an individual, partnership, limited partnership, trust, estate, association,
corporation, limited liability company, or other entity, whether domestic or foreign.
“Profits” means, for each fiscal year or other period specified in this Agreement, an
amount equal to the Company's taxable income for such year or period, determined in
accordance with IRC § 703(a).
“Proxy” has the meaning set forth in the first paragraph of Corporations Code §
17001(ai). A Proxy may not be transmitted orally.
“Regulations” or “Reg” means the income tax Regulations promulgated by the United
States Department of the Treasury and published in the Federal Register for the purpose of
interpreting and applying the provisions of the IRC, as such Regulations may be amended from
time to time, including corresponding provisions of applicable successor Regulations.
“Transfer” means, with respect to a Membership Interest or any element of a Membership
Interest, any sale, assignment, gift, Involuntary Transfer, Encumbrance, or other disposition of
such a Membership Interest or any element of such Membership Interest, directly or indirectly.
4
“Triggering Event” is defined in Section VIII.3.
“Vote” means a written consent or approval, a ballot cast at a meeting, or a voice vote.
“Voting Interest” means, with respect to a Member, the right to Vote or participate in
management and any right to information concerning the business and affairs of the Company
provided under the Act, except as limited by the provisions of this Agreement.
ARTICLE II. ARTICLES OF ORGANIZATION
1. Name
The name of the Company is Hemp Valley LLC.
2. Address of Company
The principal executive office of the Company shall be 340 West Cromwell Avenue,
Suite 101, Fresno, California 93711, or such other place as may be determined by the Members
from time to time.
3. Agent for Service of Process
The initial agent for service of process on the Company shall be LEGALZOOM.COM.
The Company may from time to time change its agent for service of process.
4. Limited Liability Company
The Members intend the Company to be a limited liability company under the Act. No
Member shall take any action inconsistent with the express intent of the parties to this
Agreement.
5. Members as Managers
The Members shall be the managers of the Company.
ARTICLE III. CAPITALIZATION
1. Capital Contributions
Any Member may contribute money or property to the capital of the Company as the
Member’s Capital Contribution.
2. Capital Accounts
5
An individual Capital Account shall be maintained for each Member consisting of that
Member's Capital Contribution, (1) increased by that Member's share of Profits, (2) decreased by
that Member's share of Losses, and (3) adjusted as required in accordance with this Agreement
and applicable provisions of the IRC and Regulations.
3. Withdrawals
A Member shall not be entitled to withdraw any part of the Member’s Capital
Contribution or to receive any distributions, whether of money or property, from the Company
except as provided in this Agreement.
4. Interest
No interest shall be paid on Capital Contributions or on the balance of a Member’s
Capital Account.
5. Limited Liability
A Member shall not be bound by, or be personally liable for, the expenses, liabilities, or
obligations of the Company except as otherwise provided in the Act or in this Agreement.
6. No Priority of Return
No Member shall have priority over any other Member with respect to the return of a
Capital Contribution or distributions or allocations of Profits, gains, Losses, deductions, credits,
or items thereof.
IV. ALLOCATIONS AND DISTRIBUTIONS
1. Allocation of Profits and Losses
The Profits and Losses of the Company and all items of Company income, gain, loss,
deduction, or credit shall be allocated, for Company book purposes and for tax purposes, to a
Member in accordance with the Member’s Percentage Interest.
2. Qualified Income Offset
If any Member unexpectedly receives any adjustment, allocation, or distribution
described in Reg sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-
1(b)(2)(ii)(d)(6), items of Company gross income and gain shall be specially allocated to that
Member in an amount and manner sufficient to eliminate any deficit balance in the Member’s
Capital Account created by such adjustment, allocation, or distribution as quickly as possible.
Any special allocation under this Section IV.2. shall be taken into account in computing
subsequent allocations of Profits and Losses so that the net amount of allocations of income and
loss and all other items shall, to the extent possible, be equal to the net amount that would have
6
been allocated if the unexpected adjustment, allocation, or distribution had not occurred. The
provisions of this Section IV.2. and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Reg sections 1.704-1(b) and
1.704-2 and shall be interpreted and applied in a manner consistent with such Regulations.
3. Allocations Respecting Asset Distributions
Any unrealized appreciation or unrealized depreciation in the values of Company
property distributed in kind to all the Members shall be deemed to be Profits or Losses realized
by the Company immediately prior to the distribution of the property and such Profits or Losses
shall be allocated to the Members’ Capital Accounts in the same proportions as Profits are
allocated under Section IV.1. Any property so distributed shall be treated as a distribution to the
Members to the extent of the fair market value of the property less the amount of any liability
secured by and related to the property. Nothing contained in this Agreement is intended to treat
or cause such distributions to be treated as sales for value. For the purposes of this Section IV.3.,
“unrealized appreciation” or “unrealized depreciation” shall mean the difference between the fair
market value of such property and the Company’s basis for such property.
4. Allocations Between Assignor and Assignee
In the case of a Transfer of an Economic Interest during any fiscal year, the Assigning
Member and Assignee shall each be allocated the Economic Interest’s share of Profits or Losses
based on the number of days each held the Economic Interest during that fiscal year.
5. Distributions
All cash resulting from the normal business operations of the Company and from a
Capital Event shall be distributed among the Members in proportion to their Percentage Interests
at such times as the Members may agree.
6. Non-Cash Proceeds
If the proceeds from a sale or other disposition of a Company asset consist of property
other than cash, the value of such property shall be as determined by the Members. Such non-
cash proceeds shall then be allocated among all the Members in proportion to their Percentage
Interests. If such non-cash proceeds are subsequently reduced to cash, such cash shall be
distributed to each Member in accordance with Section IV.5.
7. Liquidating Proceeds
Notwithstanding any other provisions of this Agreement to the contrary, when there is a
distribution in liquidation of the Company, or when any Member’s interest is liquidated, all items
of income and loss first shall be allocated to the Members’ Capital Accounts under this Article
IV., and other credits and deductions to the Members’ Capital Accounts shall be made before the
7
final distribution is made. The final distribution to the Members shall be made to the Members
to the extent of and in proportion to their positive Capital Account balances.
8. Compliance With Law and Regulations
It is the intent of the Members that each Member’s allocated share of Company tax items
be determined in accordance with this Agreement to the fullest extent permitted by IRC and
California tax laws. Notwithstanding anything to the contrary contained in this Agreement, if the
Company is advised that, as a result of the adoption of new or amended regulations under IRC or
California tax laws or the issuance of authorized interpretations, the allocations provided in this
Agreement are unlikely to be respected for federal or state tax purposes, on advice of accountants
and legal counsel, the allocation provisions of this Agreement shall thereby be amended to the
minimum extent necessary to cause such allocation provisions to be respected for federal or state
tax purposes.
V. MANAGEMENT
1. Management by All Members
The business of the Company shall be managed by all the Members. Unless otherwise
provided in this Agreement, all decisions concerning the management of the Company’s
business shall be made by the Vote of a Majority of Members.
2. Procedure for Action by Members
The Members are not required to hold meetings, and decisions may be reached through
one or more informal consultations followed by action by a Majority of Members, provided that
all Members are consulted (although all Members need not be present during a particular
consultation), or by a written consent signed by a Majority of Members. In the event that
Members wish to hold a formal meeting (a “Meeting”) for any reason, the following procedures
shall apply:
(1) Any Member may call a Meeting of the Members by giving Notice of the time and
place of the Meeting at least 72 hours prior to the time of the holding of the Meeting. The Notice
need not specify the purpose of the Meeting.
(2) A majority of Members shall constitute a quorum for the transaction of business at
any Meeting of the Members.
(3) At all meetings of Members, a Member may Vote in person or by Proxy. Such Proxy
shall be communicated to the Company through the Agent for Service of Process before or at the
time of the meeting.
(4) The transactions of the Members at any Meeting, however called or noticed, or
wherever held, shall be as valid as though transacted at a Meeting duly held after call and notice
8
if a quorum is present and if, either before or after the Meeting, each Member not present signs a
written waiver of Notice, a consent to the holding of the Meeting, or an approval of the minutes
of the Meeting.
(5) Any action required or permitted to be taken by the Members under this Agreement
may be taken without a Meeting if a Majority of Members individually or collectively consent in
writing to such action.
(6) Members may participate in the Meeting through the use of a conference telephone
or similar communications equipment, provided that all Members participating in the Meeting
can hear one another.
(7) The Members shall keep or cause to be kept with the books and records of the
Company full and accurate minutes of all Meetings, Notices, and waivers of Notices of
Meetings, and all written consents in lieu of Meetings.
3. Officers of the Company
The Company may have one or more officers, who may be, but need not be, Members. A
Majority of Members may provide for the election of officers and their powers, duties, and
compensation.
VI. ACCOUNTS AND RECORDS
1. Accounts
Complete books of account of the Company's business, in which each Company
transaction shall be fully and accurately entered, shall be kept, and shall be open to inspection
and copying by each Member or the Member's authorized representatives on reasonable Notice
during normal business hours. The costs of such inspection and copying shall be borne by the
Member.
2. Records
At all times during the term of existence of the Company, and beyond that term if a
Majority of Members deem it necessary, the Members shall keep or cause to be kept the books of
account referred to in Section VI.1., and the following:
(a) A current list of the full name and last known business or residence address of
each Member, together with the Capital Contribution and the share in Profits and Losses of each
Member;
(b) A copy of the Articles of Organization, as amended;
(c) Copies of the Company's federal, state, and local income tax or information
returns and reports, if any, for the six most recent taxable years;
9
(d) Executed counterparts of this Agreement, as amended;
(e) Financial statements of the Company for the six most recent fiscal years; and
(f) The Books and Records of the Company as they relate to the Company's
internal affairs.
If a Majority of Members deem that any of the foregoing items shall be kept beyond the
term of existence of the Company, the repository of said items shall be as designated by a
Majority of Members.
3. Income Tax Returns
Within 90 days after the end of each taxable year of the Company, the Company shall
send to each of the Members all information necessary for the Members to complete their federal
and state income tax or information returns, and a copy of the Company’s federal, state, and
local income tax or information returns for such year.
ARTICLE VII. MEMBERSHIP
1. Members and Voting
There shall be only one class of membership and no Member shall have any rights or
preferences in addition to or different from those possessed by any other Member. Each Member
shall Vote in proportion to the Member’s Percentage Interest as of the governing record date,
determined in accordance with Section VII.2. Any action that may or must be taken by the
Members shall be by a Majority of Members, except that any amendment of the Articles of
Organization or this Agreement shall require the unanimous Vote of the Members.
2. Record Dates
The record date for determining the Members entitled to Notice of any Meeting, to Vote,
or to receive any distribution shall be the date set by a Majority of Members, provided that such
record date shall not be more than 60, nor less than 10 days prior to the date of the Meeting, nor
more than 60 days prior to any other action.
ARTICLE VIII. TRANSFERS OF MEMBERSHIP INTERESTS
1. Withdrawal of Members
A Member may withdraw from the Company at any time by giving Notice of withdrawal
to all other Members at least 180 days before the effective date of withdrawal. Withdrawal shall
not release a Member from any obligations and liabilities under this Agreement accrued or
incurred before the effective date of withdrawal. A withdrawing Member shall divest the
10
Member's entire Membership Interest before the effective date of withdrawal in accordance with
and subject to the provisions of this Article VIII.
2. Restrictions on Transfer
Except as expressly provided in this Agreement, a Member shall not Transfer any part of
the Member’s Membership Interest in the Company, whether now owned or hereafter acquired,
unless (1) the other Members (if any) unanimously approve the transferee's admission to the
Company as a Member upon such Transfer, and (2) the Membership Interest to be transferred,
when added to the total of all other Membership Interests transferred, will not cause the
termination of the Company under the Corporations Code. No Member may Encumber or
permit or suffer any Encumbrance of all or any part of the Member’s Membership Interest in the
Company unless such Encumbrance has been approved in writing by all the other Members.
Any Transfer or Encumbrance of a Membership Interest without such approval shall be void.
3. Triggering Events
On the happening of any of the following events (“Triggering Event”) with respect to a
Member, the Company or the other Members shall have the option to purchase all or any portion
of the Membership Interest in the Company of such Member at the price and on the terms
provided in Section VIII.6. of this Agreement:
(a) the death or incapacity of a Member;
(b) the bankruptcy of a Member;
(c) the failure of a Member to make the Member’s Capital Contribution pursuant
to the provisions of Article III. of this Agreement;
(d) the withdrawal of a Member; or
(e) the occurrence of any other event that is, or that would cause, a Transfer in
contravention of this Agreement.
Each Member agrees promptly to give Notice of a Triggering Event to all other
Members.
4. Option Periods
On the receipt of Notice by the other Members as contemplated by Section VIII.1., and
on receipt of actual notice of any Triggering Event (the date of such receipt is hereinafter
referred to as the “Option Date”), Notice of the occurrence of such a Triggering Event shall be
given to each Member, and the Company shall have the option, for a period ending 60 days
following the determination of the purchase price as provided in Section VIII.6., to purchase the
Membership Interest in the Company to which the option relates, at the price and on the terms
11
provided in Section VIII.6., and the other Members, pro rata in accordance with their prior
Membership Interests in the Company, shall then have the option, for a period of 60 days
thereafter, to purchase the Membership Interest in the Company not purchased by the Company,
on the same terms and conditions as apply to the Company. If all other Members do not elect to
purchase the entire remaining Membership Interest in the Company, then the Members electing
to purchase shall have the right, pro rata in accordance with their prior Membership Interests in
the Company, to purchase the additional Membership Interest in the Company available for
purchase. The transferee of the Membership Interest in the Company that is not purchased shall
hold such Membership Interest in the Company subject to the provisions of this Agreement.
5. Nonparticipation of Interested Member
No Member shall participate in any Vote or decision in any matter pertaining to the
disposition of that Member’s Membership Interest in the Company under this Agreement.
6. Option Purchase Price
The purchase price of the Membership Interest that is the subject of an option under this
Agreement shall be the fair market value of such Membership Interest as determined under this
Section VIII.6. Each of the selling and purchasing parties shall use his, her, or its best efforts to
mutually agree on the fair market value. If the parties are unable to so agree within 30 days of
the Option Date, the selling party shall appoint, within 40 days of the Option Date, one appraiser,
and the purchasing party shall appoint, within 40 days of the Option Date, one appraiser. The
two appraisers shall within a period of ten additional days, agree on and appoint an additional
appraiser. The three appraisers shall, within 60 days after the appointment of the third appraiser,
determine the fair market value of the Membership Interest in writing and submit their report to
all the parties. The fair market value shall be determined by disregarding the appraiser’s
valuation that diverges the greatest from each of the other two appraisers’ valuations, and the
arithmetic mean of the remaining two appraisers’ valuations shall be the fair market value. Each
purchasing party shall pay for the services of the appraiser selected by it, plus one-half of the fee
charged by the third appraiser.
7. Substituted Member
Except as expressly permitted under Section VIII.2., a prospective transferee (other than
an existing Member) of a Membership Interest may be admitted as a Member with respect to
such Membership Interest (“Substituted Member”) only (1) on the unanimous Vote of the other
Members in favor of the prospective transferee’s admission as a Member, and (2) on such
prospective transferee's executing a counterpart of this Agreement as a party hereto. Any
prospective transferee of a Membership Interest shall be deemed an Assignee, and, therefore, the
owner of only an Economic Interest until such prospective transferee has been admitted as a
Substituted Member.
8. Duties of Substituted Member
12
Any person admitted to the Company as a Substituted Member shall be subject to all
provisions of this Agreement.
9. Securities Laws
The initial sale of Membership Interests in the Company to the initial Members has not
been qualified or registered under the securities laws of any state, or registered under the
Securities Act of 1933, as amended, in reliance upon exemptions from the registration provisions
of those laws. No attempt has been made to qualify the offering and sale of Membership
Interests to Members under the California Corporate Securities Law of 1968, as amended.
10. Spouse or Domestic Partner
If, in connection with the divorce or dissolution of the marriage of a Member, any court
issues a decree or order that transfers, confirms, or awards a Membership Interest, or any portion
of it, to that Member’s spouse, or if a Member’s spouse receives a Membership Interest by any
other means (an “Award”), then, notwithstanding that the transfer would constitute an
unpermitted Transfer under this Agreement, that Member shall have the right to purchase from
his or her former spouse the Membership Interest, or portion of it, that was so transferred, and
the former spouse shall sell the Membership Interest or portion of it to that Member at the price
set forth in Section VIII.6. of this Agreement. If the Member has failed to consummate the
purchase within 180 days after the Award (the “Expiration Date”), the Company and the other
Members shall have the option to purchase from the former spouse the Membership Interest or
portion of it under Section VIII.6. of this Agreement, provided that the option period shall
commence on the later of (1) the day following the Expiration Date, or (2) the date of actual
notice of the Award. Each Member shall obtain the consent of his spouse to this provision, in the
form provided herein as Attachment A.
ARTICLE IX. DISSOLUTION AND WINDING UP
1. Events of Dissolution
The Company shall be dissolved on the first to occur of the following events:
(a) By the Vote of a Majority of Members to dissolve the Company.
(b) The sale or other disposition of substantially all of the Company assets.
(c) Entry of a decree of judicial dissolution pursuant to California Corporations
Code § 17351.
2. Winding Up
On the dissolution of the Company, it shall engage in no further business other than that
necessary to wind up the business and affairs of the Company. The Persons winding up the
affairs of the Company shall give written notice of the commencement of winding up by mail to
13
all known creditors and claimants against the Company whose addresses appear in the records of
the Company. After paying or adequately providing for the payment of all known debts of the
Company, the remaining assets of the Company shall be distributed or applied in the following
order of priority:
(a) To pay the expenses of liquidation, including reasonable compensation to
Members for winding up the affairs of the Company.
(b) Among the Members in accordance with the provisions of Article IV.7.
3. Deficits
Each Member shall look solely to the assets of the Company for the return of the
Member’s investment, and if the Company property remaining after the payment or discharge of
the debts and liabilities of the Company is insufficient to return the investment of any Member,
such Member shall have no recourse against any other Members for indemnification,
contribution, or reimbursement.
ARTICLE X. INDEMNIFICATION AND ARBITRATION
1. Indemnification
The Company shall have the power to indemnify any Person who was or is a party, or
who is threatened to be made a party, to any proceeding by reason of the fact that such Person
was or is a Member, manager, officer, employee, or other agent of the Company, or was or is
serving at the request of the Company as a director, officer, employee, or other Agent of another
limited liability company, corporation, partnership, joint venture, trust, or other enterprise,
against Expenses, judgments, fines, settlements, and other amounts actually and reasonably
incurred by such Person in connection with such proceeding, if such Person acted in good faith
and in a manner that such Person reasonably believed to be in the best interests of the Company.
The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that the Person did not
act in good faith and in a manner that such Person reasonably believed to be in the best interests
of the Company.
“Expenses,” as used in this Section X.1., include, without limitation, attorney fees and
expenses of establishing a right to indemnification, if any, under this Article.
2. Arbitration
Except for an action brought in small claims court, any other action to enforce or interpret
this Agreement or to resolve disputes between the Members shall be settled by arbitration in
accordance with the rules of the American Arbitration Association or a similar organization.
Any party may commence arbitration by sending a written demand for arbitration to the other
parties. Such demand shall set forth the nature of the matter to be resolved by arbitration.
14
Arbitration shall be conducted at San Francisco or Oakland, California. The substantive law of
the State of California shall be applied by the arbitrator to the resolution of the dispute. The
parties shall share equally all initial costs of arbitration. All decisions of the arbitrator shall be
final, binding, and conclusive on all parties. Judgment may be entered upon any such decision in
accordance with applicable law in any court having jurisdiction thereof.
ARTICLE XI. GENERAL PROVISIONS
1. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.
2. Governing Law, Severability
This Agreement shall be construed and enforced in accordance with the laws of the State
of California. If any provision of this Agreement is determined by any court of competent
jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall,
if possible, be construed as though more narrowly drawn, if a narrower construction would avoid
such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to
the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining
provisions of this Agreement shall remain in effect.
3. Benefit
This Agreement shall be binding on and inure to the benefit of the parties and their
permitted successors and assigns.
4. Number and Gender
Whenever used in this Agreement, the singular shall include the plural, the plural shall
include the singular, the male shall include the female, and the neuter gender shall include the
male and female as well as a company, corporation, firm, or trust, all as the context and meaning
of this Agreement may require.
5. Authority to Contract
Each Member represents and warrants to the other Members that the Member has the
capacity and authority to enter into this Agreement.
6. Amendment
This Agreement may be altered, amended, or repealed only by a writing signed by all of
the Members.
15
7. Time of the Essence
Time is of the essence of every provision of this Agreement that specifies a time for
performance.
8. No Third-Party Beneficiary
This Agreement is made solely for the benefit of the parties to this Agreement and their
respective permitted successors and assigns, and no other person shall have or acquire any right
by virtue of this Agreement.
9. Limited Liability Company
The Sole Member intends the Company to be a limited liability company under the Act.
No Member shall take any action inconsistent with the express intent of this Agreement.
10. Execution Clause
IN WITNESS WHEREOF, the Sole Member has executed or caused to be executed this
Agreement on the day and year first above written.
___________________
Pietro De Santis
16
Attachment A
CONSENT OF SPOUSE OR DOMESTIC PARTNER
The undersigned is the spouse or registered domestic partner of ____________________
and acknowledges that he/she has read the foregoing Operating Agreement dated September 24,
2020, 201*, and understands its provisions. The undersigned is aware that, by the provisions of
the Operating Agreement, he/she and his/her spouse or domestic partner have agreed to sell or
transfer all their Membership Interests in the Company, including any community property
interest or quasi-community property interest, in accordance with the terms and provisions of the
Operating Agreement. The undersigned agrees to disclaim any community property or quasi-
community property interest he/she may have in Membership Interests of the Company. The
undersigned expressly approves of and agrees to be bound by the provisions of the Operating
Agreement in its entirety, including, but not limited to, those provisions relating to the sales and
transfers of Membership Interests and the restrictions on them. If the undersigned predeceases
his/her spouse or domestic partner when his/her spouse or domestic partner owns any
Membership Interests in the Company, he/she agrees not to devise or bequeath whatever
community property interest or quasi-community property interest he/she may have in the
Company in contravention of the Operating Agreement.
Date: _________________ _______________________________
Signature
_______________________________
Printed Name
1
ADULT AND MEDICAL USE
RETAIL APPLICATION
2
Table of Contents
1. Business Plan
1.1 - Team / Owner qualifications
1.2 – Construction and Operations Budget
1.4 - 3-year Operations Proforma
1.5 - Hours of Operations
1.6 - Day-to-Day Operations
i. Check in procedures
ii. Receiving deliveries from vendors
iii. POS and number of POS locations
iv. Number of customers per day/hour
v. Proposed products and percentages of flower vs vape
vi. Delivery SOP’s
2. Social Policy
2.1 - Living wage
2.2 - Employee benefits
2.3 - Employee compensation / continued education
2.4 - Equity employees/ Social Policy Section 9-3316(b)(1) (FMC) percentage of local hire
2.5 - Business local owners / managers
2.6 - Number of employees / positions / responsibilities
2.8 - Workforce Plan
2.8.1 - Local hire
2.8.2 - Apprenticeship and continuing education
2.8.3 - Living wage
2.9 - Social equity support
3. Neighborhood Compatibility Plan
3.1 - Neighborhood compatibility / CCB response to complaints
3.2 - Nuisance impact
3.3 - Odor mitigation
3.4 - Source of odor
3.5 - Odor control devices
3.6 - Staff odor training / Odor system and maintenance
3.7 - Waste Management Plan
4. Safety Plan
4.1 – Safety Plan / Fire Plan
4.2 – Accident / incident report
4.3 – Evacuation routes
4.4 – Fire extinguishers locations
4.5 – Fire and medical procedures
3
5. Security Plan – Access / Inventory control / Cash handling
5.1 - Security professional assessment
5.2 - Security Premises Diagram
5.2.1 – Location Diagram
5.2.2 – Location diagram with security detail
5.2.3 – Cannabis activity security
5.2.4 - Limited access security
5.2.5 – Number and location of surveillance cameras
5.3 – Intrusion alarm and monitoring system
5.4 - Cash handling procedures / Armored transport
5.5 – On-site security guards
5.5.1 – Number of guards
5.5.2 – Hours guards will be on-site
5.5.3 – Locations of guards
5.5.4 – Guards roles and responsibilities
6. Location
6.1 - Application (pages 1-7) Location and property floor plan
6.2 - Photograph of building street view
6.3 - Premises (Site) diagram and adjacent properties
6.3.1 – Site diagram with parking
7. Community Benefits
7.1 – Social Responsibility Plan
7.1.1 – Outreach services funding and Expungement Clinics
7.1.2 – Environmentally efficient business sustainability model
7.1.3 – Utilizing vacant properties
7.2 – Public outreach program and youth education
7.3 – Fresno Community Reinvestment Fund
4
SECTION 1 BUSINESS PLAN
1.1 QUALIFICATIONS OF OWNERS/OPERATORS
Pietro De Santis, a lifelong resident of Fresno, California, is the sole Member of Hemp
Valley LLC, which will be the sole owner of Green Door Fresno. Hemp Valley LLC has
partnered with Michael Nolin and SoCal Building Ventures LLC as dispensary
operators, to bring the “Green Door” experience to Fresno.
In support of its application for a Cannabis Retail Permit, and its desire to bring a
premier cannabis retail experience to the City of Fresno (the “City”), Hemp Valley LLC
with Michael Nolin and SoCal Building Ventures, LLC is pleased to introduce its team
of owner-operators who have joined together to lead the establishment of this new
retail facility (“Green Door Fresno”). Green Door Fresno is the latest project from Pietro
De Santis, Michael Nolin and the retail development team at SoCal Building Ventures
LLC (“SBV”), a respected and well-capitalized cannabis holding company with assets
encompassing multiple fully legal and flourishing cannabis businesses across
Southern California, including the highly acclaimed sister company to the proposed
new dispensary, Atrium – Woodland Hills. Although Green Door Fresno is not
organized as a subsidiary of SBV, the management group identified herein is
substantially the same, and SBV projects are referenced to demonstrate the
experience of the management team.
Green Door Fresno has assembled a professional, diligent, and dedicated team.
Drawing on their considerable experience, impeccable compliance record, and secure
financial foundation, all of which are fully evidenced herein, Green Door Fresno is
confident in its ability to compete on each and every component of the eligibility and
selection criteria articulated by the City.
SECTION 1.1 (Cont.)
In considering the application, Green Door Fresno hopes that the evaluation committee
is left with no doubt that Green Door Fresno is a trustworthy entrant, deserving of the
opportunity to pursue licensure in Fresno. Green Door Fresno believes the Fresno
community would benefit from a world-class cannabis consumer experience that is
curated, yet affordable to the average customer. Green Door Fresno is committed to
delivering a superlative experience to visitors, while complying with every aspect of the
City’s Cannabis Regulatory Ordinance, not merely on a technical level, but in a manner
that respects the City’s values and objectives.
THE OWNERSHIP TEAM & EXPERIENCE
Green Door Fresno has assembled an experienced management team to shepherd
the venture of bringing Green Door to the City of Fresno. All owners and managers as
defined by the California Business and Professions Code section 26001 are fully
appraised as follows:
Pietro De Santis
Chairman and CEO
Professional Summary
6
SECTION 1.1 (Cont.)
Rami Hajar
Chief Operating Officer
7
SECTION 1.1 (Cont.)
Kenneth Labendeira
Chief Financial Officer/CPA/CFE
James “Jim” Townsend
Chief Administration Officer
8
SECTION 1.1 (Cont.)
Michael Nolin
Director of Retail Operations / Chief Visionary Officer
9
SECTION 1.1 (Cont.)
11
SECTION 1.1 (Cont.)
Tiffany R. Bean
Director of Community Relations
12
SECTION 1.1 (Cont.)
1. Pietro De Santis, Chairman and CEO 2. Rami Hajar, Chief Operating Officer
3. Kenneth Labendeira, Chief Financial Officer 4. James “Jim” Townsend, Chief
Administrative Officer 5. Michael Nolin, Director of Retail Operations / CVO
6. Mike Contreras, Director of Social Equity Initiatives
7. Robert Raich, Legal Affairs / Director of Compliance
8. Sonny Santiago Director of Corporate Security
9. Tiffany Bean, Community Relations Director
13
SECTION 1.1 (Cont.)
KNOWLEDGE OF THE CANNABIS INDUSTRY
An Impeccable Record of Compliance…
Green Door Fresno will be managed by a team of professionals who have been
pathfinders in navigating the regulated cannabis industry. Collectively, the owners of
Green Door Fresno have over 60 years of experience in the legal cannabis industry.
This has necessarily included challenges such as grappling with federal prohibition,
including the limited access to banking services and the uncertainty regarding federal
law enforcement priorities. Accordingly, the owners now find themselves privileged
among a small group of highly informed applicants who are well-versed in compliance,
including track and trace requirements, and experienced in operating in the regulated
cannabis space. By staying rigorously focused on regulatory compliance, the owners
have demonstrated a consistent track record of successfully navigating the complex
array of challenges prevalent in the cannabis retail industry. A culture of compliance is
readily evident in all areas of the owners’/operators’ prior and contemporaneous
operations in the following keyways:
Through their other cannabis businesses, the owners/operators have applied for and
hold licenses for 9 separate cannabis operations (with several additional projects
pending licensure). This demonstrates the owners’/operators desire to operate legally,
ability to withstand rigorous evaluation processes, and ability to win the confidence of
multiple licensing authorities. In addition, no applicant-owned cannabis business has
ever faced regulatory investigation nor have any licenses been suspended or revoked.
The applicants are proud of their compliance record and have never received a
material violation, something that is indicative of the healthy and responsible mindset
that they will bring with them to the City of Fresno.
Indeed, the owners/operators have proved proactive and incisive in compliance-
sensitive hiring, ensuring the right talent with relevant industry expertise have been
brought in to oversee areas in which they have already demonstrated ability and sound
judgment. The compliance representation on the ownership team for Green Door
Fresno is strong. Under the primary direction of Pietro De Santis and with Robert Raich
coordinating external legal direction where required, Green Door Fresno will be able to
avail itself of the considerable experience of Rami Hajar to assure robust and compliant
inventory management practices, while Sonny Santiago will take responsibility for
security compliance. Reflecting that cannabis marketing is a regulatory area that is
new to licensed providers, Green Door Fresno will be drawing on the marketing acuity
and policy expertise of Michael Nolin, ensuring they are in an excellent position to
guarantee all marketing remains fully compliant, while keeping informed and
responsive to any regulatory developments in this area. Jim Townsend will oversee all
aspects of administrative compliance, including licensing, while Kenneth Labendeira
(CPA/ACFE) will ensure that financial matters are properly documented and efficiently
attended to. In this way, Green Door Fresno will maintain an impeccable record of
compliance.
14
SECTION 1.1 (Cont.)
INDUSTRY-LEADING INTERNAL INFRASTRUCTURE
Reflecting the experience the applicants have with operating in a regulated
environment, the Green Door Fresno team has fully implemented policies, standard
operating procedures, highly publicized internal non-discrimination and health and
safety measures, and a rigorous staff training program to ensure their expectations are
communicated throughout all layers of their operation. The applicants know that
running a successful cannabis business requires industry knowledge that goes beyond
simply knowing about cannabis, and they are well-situated to implement strong ethical
and practical infrastructure.
A further example of successful implementation of compliance infrastructure which the
applicants are expecting to transfer to Green Door Fresno is showcased through The
Atrium – Woodland Hills. In Woodland Hills, corporate responsibility initiatives in
excess of those required by state and local law have been pursued by the ownership
team. These have included educating customers regarding cannabis products by
incorporating a customer educational component in online ordering comprised of
education on products and potency and effects of products. Green Door Fresno
understands that customer education translates to responsible consumption, both in
terms of appropriate dosage and permissible consumption locations. Additionally, The
Atrium – Woodland Hills adopted a plan to provide a safe environment for customers
without negatively intruding on their experience, using cameras, including video
camera surveillance at, or greater than, State minimum requirements and instituting
daily armored car pick-up of cash deposits and a separate check-in area where
identification is checked, as well as, Keyless entry with time-date stamped records of
each individual who gains access to sensitive areas ensure that only qualified
employees gain access to where cannabis products are stored. These are some of the
commonsense initiatives that Green Door Fresno will be looking to replicate in its latest
business venture. To this end, Jim Townsend and Michael Nolin have developed an
extensive sales associate and customer education program which will both enable
employees to offer reliable and expert cannabis advice, and also help ensure customer
experiences are optimal and safe.
ETHICAL AND SUSTAINABLE BUSINESS PRACTICES
Green Door Fresno’s ownership team’s knowledge of the cannabis industry and
willingness to engage with their regulatory responsibilities is demonstrated by their
wider business practices, for example, the prompt and full payment of required taxes.
In 2017, DC Collective was among the highest taxpayers operating in the medicinal
cannabis retail space in Los Angeles County. In addition, SoCal Building Ventures,
LLC’s subsidiaries and all other ownership/management team-operated businesses
maintain all business liability insurances required by law. With regard to hiring, as the
Director of Social Equity initiatives, Pastor Mike Contreras remit will include prioritizing
and promoting social equity and inclusion objectives such as local hiring and diversity.
This is something that is important to all members of the ownership team, with a
compensation package, including a salary above the living wage, health insurance,
other insurance, a retirement plan, and paid leave for those who work hard at Green
Door Fresno.
15
SECTION 1.1 (Cont.)
With regard to business partners, the owners are committed to enter into contracts only
with other fully licensed operators, partnering with small-scale cannabis cultivators
where possible, taking into account census tract income levels in its selection process,
and working with community groups who can offer insightful advice on those who may
be most in need of employment or business collaboration opportunities. Prior to
entering into any contracts, background checks and other due diligence measures will
be utilized, as well as quality control of incoming products. This includes vendor and
test result verification and screening for use of pesticides or harmful or inorganic
chemicals. Green Door Fresno will also support local equity and environmentally
sustainable products. These measures are just some of the many ways that Green
Door Fresno will maintain its commitment to incorporate environmental sustainability
into its business practices.
Experience
The Green Door Fresno ownership and operations team has extensive experience in
owning, directing, controlling, and managing cannabis business operations. Over the
past several years, SoCal building Ventures, LLC and its partners have invested more
than $65 million into legally licensed cannabis projects. The following comprises a
summary of relevant and successful businesses currently owned by members of the
Green Door Fresno management team and the licenses which have been awarded to
them for the legal and compliant operation of the same:
___________________________________________________________________
SoCal Building Ventures Businesses:
DC Collective
Ownership: James Townsend and Rami Hajar via SoCal Building Ventures, LLC
No. of Employees: 60
Address: 8053 Deering Ave, Canoga Park, CA 91304
Licenses Awarded/Applied For:
Los Angeles Medical and Adult-Use Microbusiness, Cultivation Small Indoor,
Distributor, Manufacturing Level Temporary Authorization No. 0002256972-0001-2
California Medical and Adult-Use Microbusiness Temporary License No. A-12-18-
0000061-Temp
Summary: DC Collective is a state-licensed cannabis microbusiness authorized for
retail sales, cultivation, manufacturing, and distribution. DC Collective has a reputation
for excellence that has been diligently maintained for over a decade in business.
Throughout this time, Jim Townsend has demonstrated an unfailing dedication to
operating a safe and compliant cannabis business that enhances DC Collective’s
community with a clean, discreet look, a safe, comfortable environment, adequate
security, high-quality operational standards, and an extensive community benefit
program. DC Collective is managed by a team of professionals that are well-versed in
compliance, including track-and-trace requirements, and experienced in operating in
the regulated medicinal cannabis space.
16
SECTION 1.1 (Cont.)
Professional/Trade Association Membership:
DC Collective is a member of United Cannabis Business Association, Los Angeles’
largest cannabis trade association of compliant dispensaries. DC Collective is also a
member of the Northridge Chamber of Commerce, the Chatsworth / Porter Ranch
Chamber of Commerce, and the Valley Industry and Commerce Association.
Valley Collective Care, Inc. DBA The Atrium – Woodland Hills
Ownership: James Townsend and Rami Hajar via SoCal Building Ventures, LLC
No. of Employees: 25
Address: 5441 Topanga Canyon Blvd, Woodland Hills, CA 91367
Licenses Awarded/Applied For:
Los Angeles Medical and Adult-Use Retailer Temporary Authorization No.
0002033952-0001-0 California Medical and Adult-Use Retailer Temporary License No.
A-10-180000322-Temp
Summary: Valley Collective Care, Inc. dba The Atrium – Woodland Hills is a 5,250-
square-foot licensed Cannabis retail facility. The Atrium – Woodland Hills elevates the
typical cannabis retail experience but has cannabis goods for sale that meet every
customer’s budget. The Atrium – Woodland Hills brings the finest curation of cannabis
product to enhance its customers’ lives.
Founded in 2006, The Atrium – Woodland Hills registered under three different
municipal ordinances: (1) Ordinance 179027 in 2007; (2) Ordinance 181069 in 2010;
and (3) Ordinance 181530 in 2011. The Atrium – Woodland Hills has maintained a
history of tax compliance in the City of Los Angeles spanning 13 years. As a result of
operating in compliance with state and local law for 13 years, the City of Los Angeles
authorized The Atrium – Woodland Hills for adult‐use cannabis retail activity in 2018.
Prior to its relocation to Woodland Hills in 2016, The Atrium – Woodland Hills engaged
in substantial pre‐application outreach; Specifically, The Atrium – Woodland Hills: (1)
joined the Chamber of Commerce; (2) met multiple times with its City Council Office;
and (3) canvassed the local neighborhood and gave tours to neighbors. This led to
building a coalition of support that could support the business in its grand re‐opening.
The Atrium– Woodland Hills has not received any negative feedback in connection with
its operation.
Professional/Trade Association Membership
United Cannabis Business Association
West Valley Warner Center Chamber of Commerce
___________________________________________________________________
17
SECTION 1.1 (Cont.)
Organic Century Farmacy, Inc
Ownership: Jim Townsend and Rami Hajar via SoCal Building Ventures, LLC.
No. of Employees: 15
Address: 12458 Magnolia Blvd, Valley Village, CA 91607-2451
Licenses Awarded/Applied For:
Los Angeles Medical and Adult-Use Retailer Temporary Authorization No.
0002193580-0001-2 California Medical and Adult-Use Retailer Temporary License
No. C10-18-0000016-Temp
Summary: Organic Century Farmacy is a legal cannabis retailer in Los Angeles
established in 2006. Organic Century Farmacy is located in a 2,000-square-foot
facility. Organic Century Farmacy is a small, neighborhood serving cannabis
business. Organic Century Farmacy specializes in concentrates and non-smokable
cannabis goods. Organic Century Farmacy is under renovation. The grand re-
opening is March 1, 2019. Founded in 2006, Organic Century Farmacy registered
under three different municipal ordinances: (1) Ordinance 179027 in 2007; (2)
Ordinance 181069 in 2010; and (3) Ordinance 181530 in 2011. Organic Century
Farmacy has maintained a history of tax compliance in the City of Los Angeles
spanning 13 years. As a result of operating in compliance with state and local law for
13 years, the City of Los Angeles authorized Organic Century Farmacy for adult‐use
cannabis retail activity in 2018. OCF opened in May of 2020 and is growing in
revenues and positive community sentiment alike.
Professional/Trade Association Membership:
Studio City Chamber of Commerce United Cannabis Business Alliance
__________________________________________________________________
Deere Park Farms, LLC
Ownership: James Townsend and Rami Hajar via SoCal Building Ventures, LLC
No. of Employees: Anticipated - 8
Address: 26911 N. Monroe Road, Deer Park, WA 99006
Licenses Awarded/Applied For:
Conditional Use Permit for Cannabis Cultivation.
160-acre property located outside Spokane, Washington. Building permits have
recently been obtained for the construction of over 1.2 million square feet of potential
cannabis cultivation space including greenhouses.
Summary: Deere Park Farms is a development company for cannabis cultivation and
production campus. Permits have recently been obtained for the construction of over
1.2 million square feet of potential cannabis cultivation space. As landlord, SBV, plans
to develop the property, building state-of- the art greenhouse facilities that it will
18
SECTION 1.1 (Cont.)
lease to licensed growers. Construction on 38,000-square-foot greenhouses began in
Q2 2019 with plans to expand to 150,000-square-feet. SBV will lease the land to up
to 20 licensees for cannabis cultivation.
Holistical LLC DBA South Park Farma
Ownership: James Townsend and Rami Hajar via SoCal Building Ventures, LLC
No. of Employees: 12
Address: 375 Kokanee Road, Fairplay, CO 80440
Licenses Awarded/Applied For:
State of Colorado Retail Marijuana Cultivation Facility License # 403R-00390
Summary: South Park Farma, a licensed Colorado wholesale retail cannabis
cultivation facility located in South Park, Colorado, is also an affiliate of SBV. The grow
is 30,000 square feet. The State of Colorado licensed the cultivation site in 2015. There
have been no regulatory violations. Taxes have been filed and paid on time and the
licenses have been renewed annually. South Park Farma implemented procedures to
ensure strict adherence to the Colorado track-and-trace system, as well as passing
laboratory testing requirements.
Haleigh’s Hope, Inc.
Ownership: James Townsend and Rami Hajar via SoCal Building Ventures,
LLC; Jason Cranford Founder.
No. of Employees: 10-20
Address: 6525 Gunpark Drive, Suite 370-236, Boulder, Colorado 80301
Licenses Awarded/Applied For: State of Colorado Hemp Cultivation
Summary: Haleigh’s Hope, Inc. was started in South Park, Colorado. It is authorized
for 5 acres of hemp production. The current authorization is expanding to 50 acres in
Q2 2019. Jason Cranford is the creator of Haleigh’s Hope, a high-CBD, low-THC
cannabis strain named for Haleigh Cox, who came to Colorado as an infant in order to
treat her intractable seizures. The State of Georgia recently passed a limited law called
“The Haleigh’s Hope Act” based on the success of Haleigh’s Hope in Colorado.
19
SECTION 1.1 (Cont.)
1. Logo
2. Location Photos
20
SECTION 1.1 (Cont.)
DAY-TO-DAY INVOLVEMENT OF OWNERS/OPERATORS
Pietro De Santis – Chairman and CEO
At Green Door Fresno, Pietro De Santis will be responsible for real estate for the Green
Door Fresno project. He will provide a compliant approved building from his existing
portfolio of properties for the licensed premises. Pietro has already arranged for
financing of the Green Door Fresno project and sufficient capital exists to begin work
immediately. In addition, Pietro has assembled the management (Rami Hajar and Jim
Townsend), marketing (Michael Nolin), and legal (Robert A. Raich) for the project.
Pietro will continue to be involved in the local entitlement process. Once the business
is operational, Pietro will participate in monthly meetings to track the business’
operations and success. Pietro will provide strategy support to all aspects of the
business as needed.
Rami Hajar – COO / Business Development Officer
Rami will oversee all aspects of project development, from strategy and planning to
retail launch. Rami will provide ongoing support in market strategy, brand
development, and ongoing operational oversight, with a focus on compliance and
quality control to maintain licensing and brand integrity. Rami will provide executive
product line oversight and will interface with individual staff members, vendors,
contractors, representatives of strategic business alliances, community organizations,
city and state regulators, as well as the board of directors and investors.
Rami will oversee Green Door Fresno’s general managers on a day-to-day basis.
General manager duties include hiring staff, product procurement and inventory
management, and Rami will be attending regularly at the premises to oversee these
aspects of operations run according to his instructions. He will be managing the retail
staff and ensuring staff deliver the highest level of customer service. Rami will work
closely with management in charge of product procurement and stay up to date on the
latest strains of cannabis and cannabis products. Rami will implement Green Door
Fresno’s rules, policies, and operating procedures to ensure best practices are
adhered to by staff. Rami will oversee and monitor product inventory and work with
Green Door Fresno’s buyers on product selection. Rami will participate in trade groups
to ensure he is up to date on all cannabis local laws and regulations and best practices.
Rami will work closely with Jim Townsend to oversee cash handling procedures and
ensure the accuracy of all transactions, cash, and records.
Michael Nolin – Director of Marketing
At Green Door Fresno, Michael will oversee many aspects of marketing, and will be
actively involved in all marketing decisions. Michael is the founder of the green Door
brand and he will take the lead in representing the company in marketing and
community relations exercises. Michael will develop Green Door Fresno’s marketing
plan and hire a team of marketing professionals to implement the company’s marketing
plan. Michael will liaise with Fresno-based public relations firms and develop
21
SECTION 1.1 (Cont.)
messaging campaigns. Green Door Fresno will maintain compliance with strict
advertising guidelines imposed on cannabis businesses in the State of California,
targeting audiences over the age of 21 exclusive. Michael will oversee management of
Green Door Fresno’s social media accounts and work with professionals to provide
content. Michael will be working with Victory Outreach and Pastor Mike Contreras to
develop and implement the training program for social equity qualified workers.
Michael will continue to develop relationships with community non-profits and private
businesses.
Kenneth Labendeira – Chief Financial Officer
At Green Door Fresno, Kenneth will be responsible for implementation of the
accounting / enterprise resource planning system, as well as point-of-sale systems,
inventory tracking, and the Track‐and-Trace system. Kenneth will also establish
banking relationships to provide full banking and merchants banking services. In
addition, Kenneth will work with Jim Townsend to ensure tax compliance with federal,
state, and local taxation authorities. Finally, Kenneth will assist with security aspects
of information technology and data protection.
James Townsend – Chief Administrative Officer
At Green Door Fresno, James will take responsibility for overseeing all administration
related items and construction and will ensure all licenses and required paperwork is
filed in an accurate and timely fashion. James and Pietro will select a Fresno-based
general contractor and oversee construction of the retail facility. James will also work
with Green Door Fresno’s team of legal and licensing professionals to ensure all
licensing-related paperwork is filed with the city and state. Once operational, James
and Kenneth will ensure that taxes are paid on time to local, state, and federal
authorities.
Sonny Santiago – Director of Corporate Security
At Green Door Fresno, Sonny Santiago will implement and oversee the security plan.
Sonny will research and purchase security equipment (cameras, secure cannabis
waste bins, commercial locks) based on recommendations from the security
contractor. Sonny will select an alarm system and work with Green Door Fresno’s
security guard contractor, Watkins Security, to provide day-to-day security services.
Sonny will be responsible for training staff on security procedures for the location to
ensure physical safety of all persons and property at Green Door Fresno. Sonny will
investigate any alleged breaches of the security plan. Sonny will supervise day-to-day
security guards at the retail facility. Sonny will be the day-to-day contact for Fresno law
enforcement should any issues arise. Sonny will analyze and assess the facility’s
overall compliance with the security plan and make recommendations for
improvements.
22
SECTION 1.1 (Cont.)
Pastor Mike Contreras– Director of Social Equity Initiatives
At Green Door Fresno, Pastor Mike Contreras will be responsible for the development
and implementation of programs, policies and procedures to ensure an inclusive,
discrimination-free environment. Pastor Mike will take the lead in community
engagement, spearheading career training programs and other important social justice
initiatives. Pastor Mike will oversee implementation of Green Door Fresno’s
Community Benefit Plan and work closely with the Fresno Community Investment
Fund as it relates to social equity. Specifically, Pastor Mike will track and ensure that
hiring goals are met with respect to local hire, diversity, and impacted persons. Pastor
Mike will identify potential community partners to further Green Door Fresno’s social
equity goals.
Robert Raich – Legal Counsel / Director of Compliance
At Green Door Fresno, Robert Raich will develop and implement Green Door’s
compliance plan. Robert will be responsible for identifying compliance issues and work
with Rami Hajar and Jim Townsend to implement solutions. Robert Raich will work with
outside counsel to investigate compliance issues if an alleged violation arises. Robert
Raich will conduct surprise audits at the facility to ensure staff is in compliance with
Green Door Fresno’s operating procedures and state and local regulations. Robert will
execute compliance initiatives at Green Door Fresno (e.g., risk assessment, culture,
training).
FIRST-CLASS CUSTOMER EDUCATION, COMMUNICATION, AND RESPONSIVE
SERVICE
Green Door Fresno’s extensive industry knowledge, especially in relation to products
and customer service, is illustrated by the success of the ownership team across their
existing businesses. Unlike other applicants, the Green Door Fresno team has a bona
fide cannabis expert in Michael Nolin, who will advise the ownership team. The
owners/managers have proved skilled at attracting and retaining a passionate and
loyal customer base, which in turn is evidenced by the strong financial viability and
long-term stability that they are able to bring to this project owing to their success
elsewhere. Green Door Fresno will do this by leveraging industry knowledge, staying
abreast of market trends, and entering into innovative collaborations to provide
affordable, desirable products in a tranquil, safe, and efficient working environment
which is sensitive to the diverse lifestyles of its customer base.
One of the ways this is achieved is through engaging award-winning integrated
architecture and design professionals, and in The Atrium – Woodland Hills, the
applicants worked with internationally acclaimed, Los Angeles-based interior designer
Julia Wong to create a transportive cannabis purchase environment. Ms. Wong’s work
has been featured in numerous high-end publications and television shows, as well as
the 2016 Pasadena Showcase House of Design. If Green Door Fresno is selected to
receive a permit, a similar vision is planned to offer the community of Fresno the
23
SECTION 1.1 (Cont.)
familiar high-quality experience now associated with The Green Door brand, combining
an intuitive design focused on robust chain-of-custody tracking and access controls.
Another way that Green Door Fresno will communicate with its existing and potential
customer base is via sophisticated marketing strategies and branding. In this area also,
the operators have relied on their industry knowledge and contacts to lead market-
animating campaigns.
Additionally, the operators are aware that commodity goods markets thrive where
service includes a commitment to customer education. To this end, Green Door Fresno
is developing methods to foster knowledge about cannabis products so that customers
can make informed choices and use cannabis responsibly. At the forefront of Green
Door Fresno’s efforts in this regard will be the personal interactions between staff and
customers.
The Green Door Fresno will invest heavily in staff education and training to include
differences in products, potency of products, customer service, and the laws governing
personal use. Employees in turn will be encouraged to spend as long as necessary
with customers, suggesting alternatives, and discussing benefits and disadvantages of
different products instead of merely making a quick sale.
In addition to developing an extensive cannabis training program, a supplemental
strategy that has proved effective in ensuring employees are well-informed has been
a focus on staff retention, since staying with and learning from a long appointment
naturally results in acquisition of more advanced product insights, which can be passed
on to customers. Green Door Fresno hopes to foster the growth and development of
employees, ensuring they have access to training seminars and continuing education,
which allows them the opportunity for upward mobility. The intention is to help
employees create a career, rather than a job.
Another aspect of employee retention is the benefit to the customer. Customers feel
most comfortable purchasing from and asking questions of salespeople with whom
they have an established rapport. To that end, Green Door Fresno aims to retain
employees and promote from within. Customers are more likely to seek information
from those with whom they have come to build up longer term relationships of
assistance and trust. However, in conjunction with emphasizing the personal touch,
Green Door Fresno recognizes that customers can become informed in incidental
ways, and opportunities for providing additional product information online through the
purchase process have been explored. In this way, Green Door Fresno will continue
to share its passion about the cannabis industry with all inquirers who meet legal age
requirements.
24
SECTION 1.1 (Cont.)
Green Door Fresno also plans to take a proactive approach to supplying customers
with information by offering information in myriad ways outside of the traditional person-
to-person sales experience. Green Door Fresno will offer product information on its
website and digital ordering platform and will also host vendor seminars where
cultivators and manufacturers can visit the facility to offer more information about their
companies, products production methods, and other product-specific information.
Finally, the ownership and operations team has learned through experience that a
large part of being successful in emerging industries such as the cannabis market is
listening to customer feedback. The two primary ways that feedback is invited at Green
Door is product/service reviews and complaints. The ability for customers to write and
view product reviews in a centralized online location for each of the products sold via
adult use retail business was recently piloted by Atrium -Woodland Hills and has
proved invaluable in soliciting feedback to assist in becoming even more responsive to
customer needs.
Similarly, all Green Door businesses have implemented detailed guidance on the
appropriate management of customer complaints in order that issues can be
addressed promptly, and any recalls instituted efficiently and effectively, in furtherance
of protecting public health. Green Door Fresno will ensure that channels of
communication with customers, and with regulators, are wide open in Fresno.
In summary, central to Green Door Fresno’s business model is building transparent
and sustainable regulatory compliance, open communication, and sustainable
business practices of the kind that have hallmarked the operations of the ownership
and management team so far.
Under the leadership of Pietro De Santis, Robert Raich, Rami Hajar, Jim Townsend
and Michael Nolin, the emphasis will be on pooling industry knowledge and experience
and striving to create the best facilities in the world, with finely tuned and highly
automated operating procedures, in order that compliance and efficiency will be routine
and consumers can rely on the high quality products that they have come to expect
from the applicants. A summary of the standard operating procedures in the areas of
inventory management, track-and-trace, testing compliance, quality assurance,
employee training, marketing, and recordkeeping are submitted with this application,
and have been carefully drafted to represent not just regulatory compliance, but best
practice in the contemporary cannabis industry
SUMMARY
In summary, Green Door Fresno respectfully submits that it merits the opportunity to
apply for a cannabis retailer permit in the City of Fresno.
25
SECTION 1.1 (Cont.)
The proposed Green Door Fresno business is modeled on a proven, trustworthy, and
popular formulas, The Green Door San Francisco, DC Collective, The Atrium –
Woodland Hills and Atrium Valley Village. By bearing the same established brand
name, Green Door Fresno would generate excitement and momentum in the
marketplace as consumers respond to the positive brand identity in learning that The
Green Door is coming to Fresno.
Green Door Fresno’s team of seasoned and diverse experts provide the experience
needed to ensure the project will be a success. Unlike other applications which may
require a gamble on an unproven team, Green Door Fresno’s project draws together
some of the most proven and talented names in the industry, providing a firm
foundation and a genuinely knowledgeable and reliable team.
The Green Door Fresno ownership team is as diverse as any other that will come
before the adjudication panel, with, among other things, an inclusive culture reflected
in the leadership of multiple people who are ethnic minorities.
These appointments testify to an organizational philosophy of ensuring opportunities
for all, as evidenced also in the community outreach collaboration with Victory
Outreach Church, an assurance that Green Door Fresno will be a beacon of social
equity and cultural inclusion. These principles shared by all members of the ownership
team are a perfect match for Fresno’s values and identity. Owing to the operators’
previous excellent record in running successful businesses, Green Door Fresno is in a
strong financial position which insulates it against market fluctuations during the crucial
early days of establishing a new business, and also allows for investment in high-
quality products, and a high-quality retail experience.
Most importantly at this seminal time in establishing the California cannabis industry’s
reputation, the operators have a spotless compliance record, which is indicative of the
responsible, accountable, and transparent approach they have taken and will continue
to take with regulators in the City of Fresno.
In addition, other crucial ways in which Green Door Fresno, has distinguished itself
from other applicants are by collaboration with cutting‐edge designers in creating the
retail experience and by focusing on experimental models for the advancement of
patient care through product research and trail programs. From the historical success
of San Francisco’s legendary Green Door and DC Collective’s patient and community-
centered programs, to SoCal Building Venture, LLC’s commitment to groundbreaking
medicinal cannabis businesses like Jason Cranford’s Haleigh’s Hope (which has
developed cannabis-based medicines for the treatment of seizures in children), to the
various public education and outreach initiatives undertaken by Pietro De Santis and
Michael Nolin, this application succeeds on the basis of its clear commitment to
promoting the health and well-being of Fresno’s residents by delivering high-caliber
customer service, vetted medicinal cannabis products, and educational information in
a safe, clean, and secure environment. In these ways, Green Door Fresno hopes that
the City of Fresno finds this application is among the most robust, well-founded, low-
risk, and professional proposals that will come before the licensing panel, and that the
City will award one of the first available licenses to this propitious project.
26
SECTION 1.2. OPERATIONS BUDGET
Net
27
SECTION 1.2. OPERATIONS BUDGET
START UP COSTS
1.3 PROOF OF CAPITALIZATION: TO BE DELIVERED AS AN
ATTACHMENT TO THIS APPLICATION
SECTION 1.4. PROFORMA – DC Collective 5 Year Proforma
29
SECTION 1.1 (Cont.)
Green Door Store Model
30
SECTION 1.5 HOURS OF OPERATION
Hours of Operation. Green Door Fresno will operate from 9:00 a.m. to 10:00 p.m. on
Monday through Saturday, and 10:00 a.m. to 9:00 p.m. on Sunday. At closing time, the
premises are closed, secured, and accessible only to authorized employees and
contractors. During non-business hours: (i) the premises are securely locked with
commercial-grade locks; (ii) the premises are equipped with an active alarm system;
(iii) all cannabis goods are securely stored; and (iv) only authorized employees and
contractors with a legitimate business purpose are permitted.
SECTION 1.6: DAILY OPERATIONS
Standard Operating Procedures (SOP)
To standardize company policies and procedures and to ensure quality standards are
implemented and attained, Green Door Fresno operates under a documented system
of standard operating procedures (“SOPs”). There are written SOPs to govern the
major steps of all aspects of Green Door Fresno’s business, including but not limited
to transportation, inventory, non-laboratory quality control, security, cash handling and
delivery operations. These SOPs are designed to ensure compliance with all
applicable government regulations and industry best practices.
Green Door Fresno has engaged SBV for compliance services, including assistance
in drafting and implementing Green Door Fresno’s SOPs. Michael Nolin and the SBV
team collectively have over 20 years of cannabis industry experience and have
developed SOPs for 11 state-licensed businesses. SBV’s SOPs have been submitted
to the state as part of multiple successful commercial cannabis licensing applications.
Further, by working with so many clients, SBV has gained insight into cannabis industry
best-practices beyond the minimum regulatory requirements.
Green Door Fresno’s written SOPs will include, but are not limited to, the procedures
summarized in this section. Certain procedures have intentionally been omitted from
this section, as those procedures are included elsewhere in this application. (I.)
SECTION 1.6.1 (i) RETAIL AND CUSTOMER CHECK IN PROCEDURES
Retail Procedures. Green Door Fresno’s layout has been planned to facilitate careful
oversight and management of all employees, contractors, customers, and other visitors
during their time on-site. To ensure that all individuals on-site are properly identified
and accounted for, all guests are routed through a secure area upon entering Green
Door Fresno’s retail facility and are greeted by the Intake Specialist situated at
reception.
31
SECTION 1.6.1 (Cont.)
The Intake Specialist electronically checks state-issued identification cards (or other
acceptable forms of identification) to verify visitor age and identity. Visitor information
is retained in a log, which is accessible for security and regulatory compliance
purposes. The visitor log includes the name of the visitor, their verified ID number, the
date and time of the visit and the reason for their visit. They are assigned a visitor
badge for the duration of their visit to the facility. The Visitor Log will be retained for at
least seven years. Upon being successfully verified for admittance according to Green
Door Fresno’s Customer Verification Policy or Patient and Caregiver Verification
Policy, individuals may rest comfortably in the reception area until they are assigned a
personal Sales Assistant to accompany the individual into the retail area. Once in the
retail area, supervised customers can discuss their medical or adult-use requirements
with Green Door Fresno’s knowledgeable staff and peruse Green Door Fresno’s
cannabis goods selection in secure product displays. All sales take place in the retail
area only (except for cannabis goods sold through delivery). All cannabis goods
purchased by the customer will be placed in opaque exit packaging prior to leaving the
premises. At no time are non-employees left unsupervised in the retail area; Green
Door Fresno’s employees will be physically present in the retail area at all times when
there are individuals who are not employees of Green Door Fresno in the retail area.
Retail Customers. Green Door Fresno has developed a verification protocol to ensure
that all individuals granted access to the retail area are at least 21 years old with valid
proof of identification, or are at least 18 years old with valid proof of identification and
a valid physician’s recommendation for cannabis for themselves or for an individual for
whom he or she is a primary caregiver. For medical cannabis patients and primary
caregivers, Green Door Fresno’s protocol requires that medical status and age be
verified immediately upon entry. Medical patients must present a valid physician’s
recommendation and a California government-issued photo identification (or other
acceptable form of identification). Green Door Fresno will verify the validity of both. For
medical cannabis patients with primary caregivers, Green Door Fresno will require that
the patient accompany the primary caregiver on his or her initial visit, if possible. Once
the legitimacy of a primary caregiver status has been confirmed, a primary caregiver
will be able to purchase cannabis goods on a patient’s behalf.
33
SECTION 1.6.1 (ii) (Cont.)
shipment is refused. Before allowing the distributor to bring the shipment of cannabis
goods into Green Door Fresno’s facility, management ensures that the surveillance
cameras monitoring the receiving areas are functioning and unobstructed and that a
Security Officer is stationed at the receiving entrance to prevent unauthorized access
during shipment intake.
Upon arrival of a shipment of cannabis goods at Green Door Fresno’s premises, the
transporting distributor provides Green Door Fresno with a printed copy of the
corresponding COA from a licensed testing laboratory for the cannabis goods received.
Green Door Fresno will not accept the shipment unless it is accompanied by a printed
copy of the COA. Management verifies that the COA received from the distributor is:
(i) the COA that corresponds to the goods; (ii) identical to the corresponding COA
recorded in Track-and-Trace; and (iii) less than 12 months old. Management then
confirms that the cannabis goods are labeled with the batch number that matches the
batch number on the corresponding COA and that the label on the cannabis goods is
consistent with the COA regarding cannabinoid content and contaminants required to
be listed by law.
Finally, management confirms that the COA contains, at a minimum, the following
information:
• the term “Regulatory Compliance Testing” in at least 14-point font in the
upper-right corner of each page of the COA, with no text or images
appearing above the term on any page of the COA;
• laboratory’s name, premises address, and license number;
• distributor’s name, premises address, and license number;
• cultivator’s or manufacturer’s name, premises address, and license number;
• batch number of the batch from which the sample was obtained;
• sample identifying information, including matrix type and unique sample
identifiers;
• sample history, including the date collected, the date received by the
laboratory, and the date(s) of sample analyses and corresponding testing
results;
• a picture of the sample of cannabis goods;
• for dried flower samples, the total weight of the batch, in grams or pounds,
and the total weight of the representative sample in grams;
• for cannabis product or pre-roll samples, the total unit count of both the
representative sample and the total batch size;
• measured density of the cannabis goods;
• analytical methods, analytical instrumentation used, and corresponding
Limits of Detection (LOD) and Limits of Quantitation (LOQ);
• an attestation on the COA from the laboratory supervisory or management
employee that all required LQC samples were performed and met the
acceptance criteria; and
• analytes detected during the analyses of the sample that are unknown,
unidentified, or injurious to human health if consumed, if any.
34
SECTION 1.6.1 (ii) (Cont.)
If management discovers any issue with the COA, the issue is addressed with the
transporting distributor, and the shipment is rejected if the issue cannot be resolved.
Next, management inspects the shipment to ensure the cannabis goods received are
as described in the distributor’s shipping manifest. Specifically, management confirms
that the type and quantity received matches the type and quantity specified in the
shipping manifest. If management discovers any discrepancy between the type or
quantity specified in the shipping manifest and the type or quantity received,
management addresses the discrepancy with the distributor, ensures that the
discrepancy is recorded in Track-and-Trace, and rejects the portion of the shipment
that is not accurately reflected on the shipping manifest. Management also inspects
the shipment to ensure their provided best-by, sell-by, or expiration dates are packaged
and labeled for final retail sale. Management rejects any portion of the shipment that
is damaged, non-compliant with labeling requirements, or expired.
If Green Door Fresno receives a shipment of live cannabis plants or seeds for retail
sale, Green Door Fresno will ensure that: (i) the plant is not flowering and is shorter
and narrower than 18 inches;(ii) the plant or seed originated from a nursery that holds
a valid license from the CDFA or a licensed microbusiness authorized to engage in
cultivation; and (iii) a label is affixed to the plant or package containing any seeds with
the following warning: “This product has not been tested pursuant to the Medicinal and
Adult-Use Cannabis Regulation and Safety Act.” Live cannabis plants or seeds that do
not meet these requirements will be refused.
If management is satisfied with the inspection, the shipment of cannabis goods is
accepted into Green Door Fresno ’s inventory and management ensures that the
acceptance and acknowledgement of the cannabis goods is recorded in Track-and-
Trace. Green Door Fresno will accept or reject in whole shipments of cannabis goods,
except for cannabis goods that are: (i) not accurately reflected on the sales invoice or
receipt; (ii) damaged; (iii) non- compliant with labeling requirements; or (iv) expired. If
Green Door Fresno rejects a shipment of cannabis goods— either in whole or in part—
Green Door Fresno will record in Track-and-Trace and indicate on any relevant
manifest, invoice, or sales receipt the specific reason for rejection.
Green Door Fresno will have a robust POS and business management system with
bank-level encryption where we record intake and sale of all cannabis products and
will have the functionality to report directly to METRC. Management ensures the
following information is recorded in Track-and-Trace for each cannabis good accepted
into inventory: (i) a description of each item such that the cannabis goods can easily
be identified (i) an accurate measurement of the quantity of the item; (iii) the date and
time the cannabis goods were received; (iv) the sell-by or expiration date provided on
the package of cannabis goods, if any; (v) the name and license number of the
distributor that transported the cannabis goods to Green Door Fresno; and (vi) the price
Green Door Fresno paid for the cannabis goods, including taxes, delivery costs, and
any other costs.
37
SECTION 1.6.1 (ii) (Cont.)
All informational errors are corrected immediately upon discovery. If discrepancies
cannot be explained and corrected, Green Door Fresno will conduct an audit to
determine and document the source of the discrepancy and notify the BCC of any
reportable activity.
All evidence of diversion, theft, or loss, including significant inventory discrepancies
(i.e., a difference between actual inventory and recorded inventory of at least 3% of
average monthly sales) and evidence of the loss or unauthorized alteration of Green
Door Fresno’s inventory records, will be reported in writing (by mail or email) to the
local police department, the City of Fresno, and the BCC within 24 hours of discovery.
All incidents of diversion, theft, and loss, including significant discrepancies and loss
or unauthorized alteration of inventory records, will be detailed in the Adverse Incident
Log, and all required notifications will be made in writing and will specify the following
information: (i) the date and time of the occurrence of theft, loss, or criminal activity; (ii)
the name of the local law enforcement agency that was notified; and (ii) a description
of the incident including, where applicable, the items that were taken or lost.
Quality Control of Incoming Shipments. Green Door Fresno has developed
protocols to ensure secure and accurate receipt and recording of cannabis goods
shipments from licensed distributors. Shipments will only be received between 9:00
a.m. and 10:00 p.m. Pacific Time. During business hours, shipments of cannabis goods
will not enter the premises through an entrance or exit that is available for use by the
public. The shipment intake process is recorded by Green Door Fresno’s video
surveillance system.
Green Door Fresno will only receive shipments of cannabis goods from licensed
distributors. Before contracting with a distributor, management verifies the distributor’s
license status on the BCC website.
Shipping Manifest Review. Prior to accepting cannabis goods, Green Door Fresno
will receive an electronic copy of the distributor’s shipping manifest when the cannabis
goods are shipped. Management verifies the distributor’s license status on the State
Bureau of Cannabis Control (BCC) website and confirms that the shipping manifest
contains the following information: (i) name and type of cannabis goods; (ii) UID of
cannabis goods; (iii) amount of cannabis goods, by weight or count, and total wholesale
cost of cannabis goods, as applicable; (iv) name, license number, and premises
address of originating licensee; (v) name, license number, and premises address of
transporting distributor; (vi) Green Door Fresno’s name, license number, and premises
address; (vii) date and time of departure from distributor’s premises; (viii) arrival date
a estimated time of arrival at Green Door Fresno’s premises; (ix) driver license number
of distributor’s employee transporting cannabis goods; and (x) make, model, and
license plate number of transport vehicle. Management confirms that the shipping
manifest accurately reflects the type and quantity of cannabis goods ordered and that
the shipment will arrive between 6:00 a.m. and 10:00 p.m. Pacific Time.
38
SECTION 1.6.1 (ii) (Cont.)
Secure Shipment Intake. When the transporting distributor arrives at Green Door
Fresno’s premises, the distributor checks in at reception. Management verifies the
distributor’s credentials. If the distributor’s credentials are not available or are expired,
the entire shipment is refused. Before allowing the distributor to bring the shipment into
Green Door Fresno’s facility, management ensures that the surveillance cameras
monitoring the receiving areas are functioning and unobstructed and that a Security
Officer is stationed at the receiving entrance to prevent unauthorized access during
shipment intake. Distributor employees unload the shipment from the transportation
vehicle, through the receiving entrance, and into the secure, environmentally controlled
inventory storage area. The receiving entrance is not accessible to the public during
shipment intake.
Shipment Quality Control. Management inspects the shipment to ensure the
cannabis goods received are as described in the shipping manifest. Specifically,
management confirms that the type and quantity received matches the type and
quantity specified in the shipping manifest. If management discovers any discrepancy
between the type or quantity in the shipping manifest and the type or quantity received,
management addresses the discrepancy with the distributor, ensures that the
discrepancy is recorded in Track-and-Trace, and rejects the portion of the shipment
that is not accurately reflected on the shipping manifest. Management also inspects
the shipment to ensure that the cannabis goods have not been damaged during
transportation, have not exceeded their provided best-by, sell-by, or expiration date,
are packaged and labeled for final retail sale, have been tested by a licensed testing
laboratory, and are labeled with the batch number that matches the batch number on
the corresponding certificate of analysis. Management rejects any portion of the
shipment that is damaged, non-compliant with labeling requirements, or expired. For
details regarding Green Door Fresno’s procedures for ensuring cannabis goods have
been tested by a licensed testing laboratory, see the State Testing Requirements
section of this application.
Live Plants. If Green Door Fresno receives a shipment of live cannabis plants or
seeds, management will ensure that:(i) the plant is not flowering and is shorter and
narrower than 18 inches; (ii) the plant or seed originated from a nursery that holds a
valid license from the CDFA or a licensed microbusiness authorized to engage in
cultivation; and (iii) a label is affixed to the plant or package containing any seeds with
the following warning: “This product has not been tested pursuant to the Medicinal and
Adult-Use Cannabis Regulation and Safety Act.” Live cannabis plants or seeds that do
not meet these requirements will be refused.
Defective Goods. If Green Door Fresno discovers that a manufactured cannabis good
is defective, Green Door Fresno may return the cannabis good to the selling licensee
in exchange for a non-defective version of the same type of cannabis good or an
alternate cannabis good of equal value. Any such returns and exchanges will be
transported by licensed distributors and documented in Track-and-Trace.
39
SECTION 1.6.1 (iii) POS SYSTEMS
Point-of-Sale Software. Green Door Fresno’s point-of-sale (“POS”) software,
Meadow, will integrate with the State of California’s Track-and-Trace system, Metrc,
and is capable of recording and managing inventories, transportation, and sales
transactions. Green Door Fresno will have six (6) POS registers at this location. Green
Door Fresno will maintain data regarding transactions with other licensees, including
the name of the business from which the goods were received, the type and amount
of goods received, the party who holds title to the goods, and the UIDs or lot number
of the goods. Meadow allows reports to be generated on demand to better assist Green
Door Fresno in accessing information relevant to its revenue transactions, including
inventory levels, transactional history, purchase orders, and sales receipts. Meadow
automatically prohibits sales to customers beyond daily sales limits. Once a customer’s
daily purchasing limit has been met, the software will not allow that customer to “check
out” or make any further purchases.
Records of Sales. Green Door Fresno will record all purchase orders and
transaction records for all products purchased or sold, which includes all sales,
recalls or returns (for faulty products), and waste. In addition to retaining all sales
invoices as part of its financial record retention, Green Door Fresno will maintain an
accurate record of every sale made to a customer. At a minimum, for each sale,
Green Door Fresno records the date of sale, type of goods purchased, quantity of
each good, and related sales prices.
Inventory Records. Green Door Fresno will maintain complete and accurate inventory
records to ensure its ability to provide accurate data on any aspect of its operations.
Green Door Fresno will maintain inventory records through both Meadow and Track-
and-Trace. Inventory records will be legible, and any hard copies will be stored in a
secured area where they are protected from debris, moisture, contamination,
hazardous waste, fire, and theft. Inventory records include Purchase Orders, Sales
Transactions, Recalls, Waste, and Audit adjustments (including the reason for the
adjustment).
Upon receipt of a shipment of cannabis goods from a licensed distributor, management
ensures that the verified shipping manifest is recorded in Track-and-Trace in
accordance with the Shipment Intake Policy. Upon acceptance of a shipment of
cannabis goods into Green Door Fresno’s inventory, management records the
following information in Meadow for each cannabis good: (i) a description of each item
such that the cannabis goods can easily be identified; (ii) an accurate measurement of
the quantity of the item; (iii) the date and time the cannabis goods were received by
Green Door Fresno; (iv) the sell-by or expiration date provided on the package of
cannabis goods, if any; (v) the name and license number of the distributor that
transported the cannabis goods to Green Door Fresno; and (vi) the price Green Door
Fresno paid for the cannabis goods, including taxes, delivery costs, or any other costs.
Finally, after performing an inventory reconciliation, management records the results
in Green Door’s inventory records in accordance with the Inventory Reconciliation
Policy. Inventory records are maintained for at least seven years and can be
immediately produced for regulators in hard-copy or electronic form upon request.
40
SECTION 1.6.1 (iii) (Cont.)
Delivery Manifests. When an order of cannabis goods is shipped to Green Door
Fresno via a licensed distributor, management will receive an electronic copy of the
distributor’s shipping manifest. Management confirms that the shipping manifest
accurately reflects the type and quantity of cannabis goods ordered and then ensures
that the shipping manifest is recorded in Track-and-Trace. If management discovers
any discrepancy between the shipping manifest and the cannabis goods received,
management addresses the discrepancy with the distributor and ensures that the
discrepancy is recorded in Track-and-Trace. As with all other records, shipping
manifest records are maintained for at least seven years and can be immediately
produced for regulators in hard-copy or electronic form upon request.
Records Storage. At the beginning of each business day, management confirms that
Green Door Fresno’s external hard drive and Meadow’s cloud-based servers are
operational. If there is any issue with cloud-based or external hard drive record storage,
management contacts Meadow technical support to arrange for resolution of the issue.
If connectivity with Meadow’s or Metrc’s cloud-based servers is lost, Green Door
Fresno prints hard-copy back-ups of any new electronic files and retains these hard
copies until connectivity with cloud- based servers is restored.
If Green Door Fresno initially creates or receives a business record in hard-copy form,
management scans the record into Green Door Fresno’s electronic files and backs it
up to cloud-based servers and the external hard drive. Any hard copies of records will
be stored in a secured area within the office where they are protected from debris,
moisture, contamination, hazardous waste, fire, and theft.
Green Door Fresno will securely store company records to ensure its ability to monitor
company performance and readily provide regulators with accurate data on any aspect
of its operations.
Track-and-Trace Account Manager. Green Door Fresno’s Track-and-Trace Account
Manager will complete state-mandated Track-and-Trace training within five calendar
days of license issuance. The Track- and-Trace Account Manager will also complete
any other required Track-and-Trace training, including any orientation and continuing
education. The Track-and-Trace Account Manager will then ensure that all authorized
users are trained before they obtain their unique login credentials to access the Track-
and- Trace system. Each authorized user will exclusively use their personal credentials
to access Track-and-Trace and will never share account information with another
individual. If an employee leaves or is terminated, those credentials are immediately
purged from the Green Door Fresno system.
Inventory Data. Within 30 calendar days of attending state-mandated Track-and-
Trace training, the Track-and-Trace Account Manager or another authorized user will
enter all required inventory information into Track-and-Trace. Thereafter, Green Door
Fresno will report all required commercial cannabis activity in Track-and- Trace within
24 hours of occurrence, including sale, transfer, transportation, receipt, return,
41
SECTION 1.6.1 (iii) (Cont.)
and destruction or disposal of cannabis goods and any other activity as required by the
BCC or the City of Fresno. For each activity reported in Track-and-Trace, an authorized
employee records the following necessary identifying information in the POS system
and Track-and-Trace: (i) name and type of the cannabis goods; (ii) UID of the cannabis
goods; (iii) amount of the cannabis goods, by weight or count, and total wholesale cost
of the cannabis goods, as applicable; (iv) date and time of the activity or transaction;
and (v) name and license number of other licensees involved in the activity or
transaction. An authorized Track-and-Trace user will record in Track-and-Trace the
following adjustments: (i) spoilage or fouling of cannabis goods; and (ii) any event
resulting in damage, exposure, or compromise of the cannabis goods.
SECTION 1.6.1 (iv) NUMBER OF CUSTOMERS PER DAY
Based on previous experience with similar retail dispensaries of the proposed locations
size, Green Door Fresno anticipates a daily average of 30 customers per hour, which
means approximately 350 unique visits per day. This estimate is based on data
sourced from operators’ facilities of similar size, in similar markets to Fresno.
SECTION 1.6.1 (v) PRODUCTS TO BE SOLD, FLOWER AND MANUFACTURED
GOODS
Green Door Fresno will only carry laboratory-tested cannabis goods from trusted
suppliers or that have been vetted with due diligence performed on their regulatory
compliance, reputation, environmental values, location, scale, and product quality and
safety. Green Door Fresno prides itself on offering a highly curated and a diverse and
extensive product selection.
Green Door Fresno will carry compliant products suitable for every method of
consumption.
Child-Resistant Packaging. Green Door Fresno also places a premium on products
with child‐resistant packaging. Green Door Fresno’s principle concern in evaluating
packaging safety is child-resistance, as Green Door Fresno recognizes the importance
of ensuring that cannabis remains inaccessible to minors. Although the regulations do
not mandate the use of child-resistant packaging January 1, 2020, Green Door
prioritizes purchasing from companies that are early adopters of child-resistant
packaging to promote limiting access by children by utilizing ASTM certified exit
packaging.
Pre-Selected Cultivators and Brands. Based on referrals and customer feedback
from Green Door San Francisco, DC Collective, Organic Century Farmacy, and Atrium
Woodland Hills, Green Door Fresno has already planned partnerships with certain
brands and suppliers. Pre-selected local, small-scale cultivators include Coast-to-
Coast and Josh D Farms. In addition, as explained above, Green Door Fresno intends
to work with local, small-scale Fresno licensed cultivators. Pre-selected product brands
include Passiflora, Bloom Farms, and Lowell Farms, which are all social equity
licensees.
42
SECTION 1.6.1 (v) (Cont.)
Licensure Status. Green Door Fresno will only conduct commercial cannabis activity
with businesses licensed by the State Bureau of Cannabis Control (BCC), the CDFA,
or the CDPH. Thus, Green Door Fresno’s first step in performing due diligence is to
verify that each of its chosen suppliers and distributors are properly licensed via the
BCC, CDFA, and CDPH websites. Green Door Fresno verifies each supplier’s
licensure status on the appropriate regulator’s website, and keeps a record of the
license and expiration date, to ensure they are only purchasing from valid state-
licensed businesses.
Good Operators. Green Door Fresno asks each supplier whether it has ever been
disciplined by a regulatory authority or failed a regulatory compliance audit. If the
supplier has been audited, Green Door Fresno requests a copy of the official audit
sheet and checks for disciplinary action against the supplier’s license. To verify the
supplier’s reputation, Green Door Fresno asks the supplier for references (e.g., other
licensed retailers to whom the supplier has provided similar cannabis goods) and
conducts its own investigation by performing an Internet search, evaluating social
media accounts, and if possible, contacting the Better Business Bureau to determine
whether any complaints have been filed against the supplier.
Local Fresno Businesses. Green Door Fresno emphasizes supporting local small
scale suppliers. Specifically, Green Door Fresno will seek to do business with Fresno
suppliers and suppliers who work with Fresno testing laboratories or cultivators. Giving
preference to Fresno-grown products benefits Fresno by ensuring that Green Door
Fresno’s entire supply chain aligns with Fresno values and allowing Fresno to increase
its tax revenue through collection of both cultivation and retail taxes.
Further, Green Door can leverage its state-wide influence to encourage its partners to
do business in Fresno (e.g., use Fresno testing laboratories). Buying locally also
benefits Green Door Fresno in that its employees are able to forge personal
relationships with its suppliers and visit their sites to tour the facilities and verify that
the suppliers are the right fit for Green Door Fresno’s needs. Green Door Fresno may
request proof that the supplier uses Fresno testing laboratories in the form of contracts
with or certificates of analysis from such laboratories.
Small Businesses. Purchasing from small-scale suppliers both supports small
businesses and allows Green Door Fresno to become familiar with suppliers’
employees and ensure that quality is maintained throughout all products cultivated or
manufactured, as small-scale operations give suppliers a greater capacity to pay
attention to detail. To verify that suppliers are local and small scale, Green Door Fresno
will verify the supplier’s local license and ask suppliers to provide community
references and data such as total grow size or expected yields.
43
SECTION 1.6.1 (v) (Cont.)
Product Safety and Customer Education. Green Door Fresno gives priority to
cannabis goods that provide in-depth consumer education and that utilize child-
resistant packaging. Green Door Fresno requests pictures of the product to evaluate
the ingredient list and overall appearance of the packaging and labeling and the
product itself. Green Door Fresno prefers to offer products that are tested for and
labeled with terpene content, as Green Door Fresno believes that terpenes are the
most significant factor in determining dosage and effect. By choosing to do business
with suppliers that test for terpenes and label their goods with this information, Green
Door Fresno hopes to encourage more suppliers to institute this practice, thereby
allowing Green Door Fresno and other retailers to better inform and educate
consumers of the appropriate dosage and potential effects of each product.
Customer Data and Reviews. Green Door Fresno will actively solicit customer
feedback on its product offerings and will revise its product offerings accordingly.
Green Door Fresno will track purchasing trends, to ensure its product list aligns with
the needs of customers and patients. Green Door Fresno’s online menu will display
available products and provide a brief description of each product’s origin, flavor profile,
THC/CBD content, and sensory effects. Customers can create an account and log in
to review products and view other consumer reviews. Green Door Fresno will also
monitor reviews submitted through third-party technology platforms, such as
Weedmaps and Yelp.
Cannabis Goods Displays. Cannabis goods packaging only is displayed in the retail
area. Green Door Fresno has carefully considered how best to present its cannabis
goods in a manner that is consistent with a professional, hygienic, and security-
conscious design. Accordingly, Green Door Fresno displays empty “dummy”
packaging in secure cabinets to show customers which cannabis goods are available
for sale. Any cannabis products used in displays will be in locked storage containers
within the display, which is only accessible to employees. Customers are unable to
access any of Green Door Fresno’s cannabis goods without the assistance of an
authorized Green Door Fresno employee. Upon request to a Sales Associate,
customers may inspect cannabis goods more closely using a secure inspection
container. Inspection containers are stored in locked glass display cases on the retail
floor. This system prevents loss and diversion, while allowing customers the
opportunity to verify the quality of Green Door Fresno’s cannabis goods. Green Door
Fresno will not provide free samples of any type, including cannabis goods, to any
person. Further, Green Door Fresno will not allow any non-employees to provide free
samples of any type, including cannabis goods, to any person on its premises. Any
cannabis goods removed from packaging for display purposes will not be sold or
consumed and will be disposed of pursuant to Green Door Fresno’s Cannabis Waste
Disposal Policy.
Retail Sales. Green Door Fresno will only sell cannabis goods, cannabis accessories,
and licensee’s branded merchandise. Green Door Fresno anticipates a 40% Flower
and 60% manufactured goods product sales ratio. Green Door Fresno will not sell
alcohol or tobacco.
44
SECTION 1.6.1 (v) (Cont.)
Furthermore, Green Door Fresno will not sell cannabis goods that are labeled with
terms that would create a misleading impression that the product is an alcoholic
beverage. All cannabis goods sold by Green Door Fresno are tracked from seed to
sale using Meadow. Green Door Fresno will only sell adult- use cannabis goods to
individuals who are at least 21 years old after confirming the customer’s age and
identity by inspecting a valid form of identification provided by the customer.
Daily Limits. Green Door Fresno will track and record all sales of cannabis goods, and
all staff are trained to comply with the regulations regarding daily limits. Green Door
Fresno’s POS system, Meadow, automatically prohibits sales to customers beyond
daily sales limits. Once a customer’s daily purchasing limit has been met, the software
will not allow that customer to “check out” or make any further purchases. Green Door
Fresno will not sell more than 28.5 grams of non-concentrated cannabis, 8 grams of
cannabis concentrate, or 6 immature cannabis plants to an individual adult-use
customer in a single day. Green Door Fresno will not sell more than eight ounces of
medical cannabis to an individual medical cannabis patient (or authorized primary
caregiver for each patient they are authorized to make purchases for) in a single day.
Green Door Fresno will not allow customers to combine the adult-use and medical
purchases to circumvent limits.
SECTION 1.6.1 (vi) DELIVERY
Delivery Procedures. In addition to its storefront retail operation, Green Door Fresno
also provides a secure, discreet, and convenient cannabis goods delivery service to its
verified customers. This service is invaluable to those customers who are unable to
travel to Green Door Fresno’s retail premises. Initially, Green Door Fresno will have 1
vehicle.
Receiving Delivery Orders. Customers can place delivery orders by telephone or
through Green Door Fresno’s website or mobile application. Upon receipt of a new
delivery order, Sales Assistants follow the procedures outlined in the Inventory
Verification Policy to ensure that the requested items are in stock. If the goods ordered
are available, the Sales Assistant records the customer’s identifying information and
checks the customer- provided delivery address online to verify that it is: (i) a physical
address in the State of California; (ii) not on publicly owned land or on land or in a
building leased by a public agency; and (iii) not a school providing instruction in
kindergarten or any grades 1 through 12, day care center, or youth center. The Sales
Assistant then informs the customer that age and identity verification will be required
at the time of delivery and that order fulfillment is contingent upon age and identity
verification. After confirming an order, the Sales Assistant enters the order information
into the POS system and an authorized Track-and-Trace user enters the order into
Track-and-Trace. Green Door Fresno will maintain a POS system that is live, ensuring
products that are out of stock are not sold and become inactive links or invisible links
when a product is sold out. If Green Door Fresno loses connectivity to Track-and-
Trace, delivery orders are not fulfilled until connectivity to Track-and-Trace is restored.
45
SECTION 1.6.1 (vi) (Cont.)
Inventory Verification. Upon receiving a delivery order, inventory is checked to
ensure that the goods ordered are in stock. If the goods ordered are in stock, the
delivery order is processed. If some or all the goods ordered are not in stock, the Sales
Assistant uses professional judgment to determine a suitable alternative. If the
customer accepts the alternative offered, the Sales Assistant modifies the purchase
order accordingly and processes the order. Otherwise, the order is canceled.
Delivery Order Processing. Delivery Employees may not leave Green Door Fresno’s
premises without at least one delivery order already received and processed by Green
Door Fresno. Sales Assistants prepare a Delivery Request Receipt for each cannabis
goods delivery containing the following: (i) Green Door Fresno’s name and address;
(ii) first name and employee number of Green Door Fresno’s Delivery Employee who
delivers the order; (iii) first name and employee number of Green Door Fresno’s
employee who prepares the order for delivery; (iv) first name and Green Door Fresno-
assigned customer number for the customer who requests the delivery; (v) date and
time the delivery request is made; (vi) delivery address; (vii) detailed description of all
cannabis goods requested for delivery, including the weight, volume, or other accurate
measure of the amount of the cannabis goods requested; and (viii) total amount paid
for the delivery, including any taxes, fees, the cost of the cannabis goods, and any
other charges related to the delivery. (Upon delivery, the Delivery Employee updates
the Delivery Request Receipt to include the date and time the delivery is made and the
signature of the customer who receives the delivery.) Sales Assistants retrieve the
ordered cannabis goods from inventory storage and visually inspects each good,
ensuring that: (i) the good is not expired; (ii) the packaging is intact and unopened; and
(iii) the labeling is intact and legible. Sales Assistants ensure that the appropriate
employees enter data regarding the cannabis goods ordered into the POS system and
Track-and-Trace. Sales Assistants prepare a Delivery Inventory Ledger including the
following information for each cannabis good: (i) type of good; (ii) brand; (iii) retail
value; (iv) UID; and (v) weight or volume. All cannabis goods are placed into opaque
exit packaging. Sales Assistants provide the Delivery Employee copies of the Delivery
Request Receipts and the Delivery Inventory Ledger.
Delivery Vehicle Loading. The delivery vehicle loading area is under 24-hour video
surveillance. Prior to loading the delivery vehicle, management verifies that the
Delivery Inventory Ledger contains less than $10,000 of cannabis goods. Employees
load cannabis goods into the enclosed delivery vehicle, ensuring that the goods are
locked in a fully enclosed box, container, or cage that is secured on the inside of the
vehicle (but is not comprised of any part of the body of the vehicle) and are not visible
to the public. Delivery Employees ensure that the delivery vehicle is ready for departure
and that all necessary items and documents are in the vehicle by following the Pre-
Dispatch Checklist Policy.
46
SECTION 1.6.1 (vi) (Cont.)
Making a Delivery. Delivery Employees follow the preplanned delivery route as
assigned by management using Google Maps or another GPS navigation application.
Unscheduled stops or deviations are not permitted except for necessary rest, fuel, and
vehicle repair stops, or if road conditions make continued use of the route unsafe,
impossible, or impracticable. If a stop or deviation from the delivery route is necessary,
the Delivery Employee follows the Delivery Employee Communication Policy and
Delivery Security Policy and records the stop on the Delivery Stop Log.
Delivery Vehicle Unloading. Upon arrival at a delivery address, the Delivery
Employee verifies that the delivery address matches the address listed on the Delivery
Request Receipt. The Delivery Employee surveys the area for any suspected security
risks. If a risk is perceived, the Delivery Employee calls management or local law
enforcement, if necessary. If the area is clear of security risks, the Delivery Employee
removes the cannabis goods from the vehicle’s storage compartment. Before exiting
the vehicle, the Delivery Employee retrieves the age verification device and either a
paper Delivery Request Receipt or the tablet or other technology used to sign and send
Delivery Request Receipts. Finally, the Delivery Employee exits and locks the delivery
vehicle, activates the alarm system, and approaches the delivery address.
Delivery Order Drop-Off. The Delivery Employee attempts to contact the customer
by knocking on the door or ringing the doorbell. If there is no response after a
reasonable time, the Delivery Employee returns to the delivery vehicle and contacts
the customer by telephone. If there is no response within 5 minutes, the Delivery
Employee returns to Green Door Fresno’s facility. If there is a response, the Delivery
Employee first verifies that the person responding is the person who placed the delivery
order and scans the customer’s identification with the age verification device to confirm
that the provided identification is valid and that the customer is of legal age to purchase
cannabis goods. The Delivery Employee accepts payment before transferring
possession of the cannabis goods. The customer signs the Delivery Request Receipt
and is provided with a copy. The Delivery Employee retains a copy of the signed
Delivery Request Receipt for Green Door Fresno’s records. After completing the
delivery, the Delivery Employee follows the procedures outlined in the Post-Delivery
Policy.
Post-Delivery. After completing (or attempting) each delivery, the Delivery Employee
updates the Delivery Inventory Ledger to reflect the current inventory in possession of
the Delivery Employee. The Delivery Employee notifies Green Door Fresno, either
telephonically or electronically, that the delivery has been attempted or successfully
completed. After completing (or attempting) the final delivery, the Delivery Employee
updates the Delivery Inventory Ledger and returns to Green Door Fresno’s premises.
The Delivery Employee provides management with the Delivery Request Receipt,
Delivery Inventory Ledger, and Delivery Stop Log. Management confirms that the
Delivery Request Receipt and Delivery Inventory Ledger are consistent and unloads
any undelivered cannabis goods from the delivery vehicle and returns the goods to
inventory. Management ensures that the Delivery Request Receipt, Delivery Inventory
Ledger, and Delivery Stop Log are retained in Green Door Fresno’s records and
available for inspection for at least seven years in accordance with the Records
Storage Policy.
47
SECTION 1.6.1 (vi) (Cont.)
Management ensures that an authorized employee updates the relevant inventory and
Track-and-Trace records by the end of the business day.
Delivery Security. Green Door Fresno’s Delivery Employee will not carry cannabis
goods worth more than $10,000 at any time. While carrying cannabis goods for
delivery, Green Door Fresno’s Delivery Employee will only travel in an enclosed
delivery vehicle operated by an Green Door Fresno Delivery Employee and will ensure
the cannabis goods are not visible to the public. Green Door Fresno’s delivery vehicles
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. Only
authorized Green Door Fresno employees are allowed in the delivery vehicle during a
cannabis goods delivery. Green Door Fresno’s Delivery Employees will not leave
cannabis goods unattended in the delivery vehicle unless the vehicle is locked and
equipped with an active vehicle alarm system. Each of Green Door Fresno’s delivery
vehicles is outfitted with a dedicated GPS device, which is permanently or temporarily
affixed to the vehicle and will remain active and inside of the vehicle at all times during
delivery, enabling Green Door Fresno to identify the geographic location of the vehicle
during delivery.
Delivery Employee Communication. Each delivery vehicle is equipped with a GPS
device, and management monitors the location of the delivery vehicle during a delivery.
The Delivery Employee and management communicate via hands-free telephone.
Prior to departing from Green Door Fresno’s premises for a delivery, the Delivery
Employee verifies that the communication and GPS devices are properly functioning.
The Delivery Employee reports all adverse delivery events found in the Delivery
Security Policy to management, who records the events in the Adverse Incident Log.
A routine telephone check-in takes place between the Delivery Employee and
management at the start and completion of each delivery route.
Delivery Vehicle Maintenance. At the beginning of each week, management
performs the following basic vehicle checks: (i) verify that all exterior lights are
functional; (ii) verify that all glass and mirrors are clean and free of chips, cracks, and
scratches; (iii) test the brakes; (iv) test the horn; and (v) verify that tire pressure,
condition, treadwear, and depth are within acceptable limits. Vehicles are cleaned
routinely and as needed. Any drugs or alcohol found inside the vehicle are immediately
removed and reported to management. Delivery Employees report any oil leaks to
management. Employees check that seat belts are not damaged during interior car
cleaning exercises. Delivery Employees monitor the condition of windshield wiper
blades and notify management if they need to be replaced. Vehicles are routinely
serviced according to manufacturer recommendations, and all required repairs are
undertaken.
Delivery Vehicle Stop. If, during a delivery, a delivery vehicle is stopped by the State
Bureau of Cannabis Control BCC, the City of Fresno, or law enforcement, the Delivery
Employee cooperates with the stop and responds to inquiries with urgency, honesty,
and professionalism.
48
SECTION 1.6.1 (vi) (Cont.)
(If the stop is by an agent of the BCC or the City of Fresno, the Delivery Employee
requests to see the agent’s identification badge or other credentials to verify that the
agent represents the BCC or the City of Fresno.) Immediately upon request by the
stopping regulator, the Delivery Employee provides all Delivery Request Receipts,
Delivery Stop Logs, and Delivery Inventory Ledgers in the Delivery Employee’s
possession. After the stop, the Delivery Employee updates the Delivery Stop Log to
reflect the stop and contacts management in accordance with the Delivery Employee
Communication Policy to notify management of the stop. Upon returning to Green Door
Fresno’s facility, the Delivery Employee provides the Delivery Stop Log to
management, who confirms that the log reflects the regulatory stop and ensures that
the record is retained in accordance with the Records Storage Policy.
Delivery Employees. Prior to hiring a new Delivery Employee, management obtains
a copy of the individual’s government-issued driver’s license to ensure that the
individual is at least 21 years old and has the legal right to drive a motor vehicle in
California. Upon hiring a new Delivery Employee, management enters the Delivery
Employee’s information into the Delivery Employee List and retains a copy of the
Delivery Employee’s driver’s license in the Delivery Employee’s personnel file.
Management routinely checks Delivery Employees’ driver’s licenses, driving records,
and insurance cards to ensure that the licenses are not expired or about to expire, and
that the Delivery Employees maintain exemplary driving and insurance records. If a
Delivery Employee’s driver’s license is set to expire within a month, management
reminds the Delivery Employee that the license will need to be renewed for the Delivery
Employee to continue performing deliveries on Green Door Fresno’s behalf. If there is
any issue with a Delivery Employee’s driver’s license, including the expiration or
suspension of the license, the Delivery Employee immediately notifies management
so that management can decide the appropriate course of action. The Delivery
Employee is not permitted to perform deliveries on Green Door Fresno’s behalf until
any and all driver’s license issues are resolved. Prior to performing deliveries on behalf
of Green Door Fresno, the Delivery Employee is trained in accordance with the
Delivery Training Policy. Once the Delivery Employee leaves Green Door Fresno’s
premise to perform a delivery on Green Door Fresno’s behalf, the Delivery Employee
does not perform deliveries for any other licensees until the deliveries for Green Door
Fresno are completed and the Delivery Employee has returned to Green Door Fresno’s
premises.
49
SECTION 2. SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
Social Equity Hiring Program. Cannabis legalization is a matter of social justice and
is necessary to end historical and present-day disparate impacts to communities of
color from the “war on drugs.” Proposition 64 recognized these principles of social
justice by legalizing the use, transportation, and possession of cannabis by adults age
21 and over (within certain quantity limits) and by providing those convicted of cannabis
offenses that are now either legal or carry lesser penalties the opportunity to have their
sentences reduced or their conviction records destroyed. Green Door Fresno has
incorporated social justice into its Community Benefits Plan in the ways set forth below.
Investment in Social Equity Director. Green Door Fresno has partnered with
Senior Pastor Mike Contreras as its Director of Social Equity. Green Door Fresno will
work diligently with Pastor Mike to initiate community social equity programs and
workforce opportunities, and youth violence and drug interdiction programs.
Equitable Employment. The cannabis industry has the potential to create tens of
thousands of jobs in California by the end of the decade. A 2016 white paper estimated
that California’s legal cannabis industry could generate between 81,000 and 103,000
jobs. Green Door Fresno is committed to ensuring that minorities, low‐income
individuals, and residents of communities most impacted by the War on Drugs are not
excluded from employment opportunities in the cannabis industry. Green Door
Fresno’s hiring target is to have 50% of its workforce composed of residents from
communities where cannabis laws have been enforced disproportionately, individuals
who have been arrested and convicted of a cannabis crime and their immediate family
members, and individuals who are classified as low income.
Commitment to Diversity. Green Door Fresno is an equal opportunity employer and
would never discriminate against an applicant based on race, sex, gender, sexual
orientation, religious views, or any other protected class. Green Door Fresno also
recognizes that minorities, women, and veterans are underrepresented in the cannabis
industry. In order to promote equitable opportunities and a diverse workforce, Green
Door Fresno plans to prioritize the hiring, training, and advancement of minority and
women applicants. In that regard, Green Door Fresno will participate in diversity job
fairs sponsored by minority‐serving groups, post job opportunities in minority‐ and
women‐serving publications, and partner with various women and minority focused
organizations. Green Door Fresno will track its progress in diversity hiring and make
that data available to the city.
Diversity and Inclusiveness. Green Door Fresno appreciates that Fresno is a vibrant
heterogeneous community made up of many diverse neighborhoods. Green Door
Fresno places tremendous value on providing its employees with cultural competence
training and employing a culturally reflective staff. Moreover, as explained in more
detail below, Green Door Fresno has diversity hiring goals in connection with its
business operations. As exemplified in the ownership and management team, we will
strive to mirror that level of diversity in our workforce.
50
SECTION 2. (Cont.)
Economic Diversity. Green Door Fresno is sensitive to the economic diversity in
Fresno. Although the Green Door Fresno retail experience will have a high‐end and
luxurious aesthetic, Green Door Fresno aims to ensure that its high‐quality cannabis
goods are compatible with any budget.
SECTION 2.I LIVING WAGE
Living Wage. Green Door Fresno’s compensation philosophy is to ensure that its
employees can live in the community in which they work. This means compensating
employees fairly for the work they do. Green Door Fresno believes that following this
philosophy ensures an equitable work environment. Green Door Fresno is committed
to paying more than the minimum living wage.
SECTION 2.2 EMPLOYEE BENEFITS
Benefits. In addition to a living wage, Green Door Fresno will provide its employees
with a best-in-class benefits package that includes health insurance, dental and vision
insurance, disability insurance, worker’s compensation, retirement plan (401(k) or
equivalent), paid family medical leave, and paid vacation (15 days per year, vesting
after 6 months). Green Door Fresno understands that its commitment to social equity
hinges on whether it is willing to put its promises into action, and Green Door Fresno
is prepared to demonstrate that understanding when it comes to salary and benefits
for its employees.
SECTION 2.3 EMPLOYEE COMPENSATION AND CONTINUING EDUCATION
Green Door Fresno will voluntarily pay all employees above the required minimum.
Hourly wages at Green Door Fresno will start at per hour, which is higher than the
per hour minimum wage in California.
Employee Training. Green Door Fresno employees are required to review and
acknowledge the following policies and standard operating procedures:
• Employee Theft and Fraud Policy
• Security Awareness
• Internal Larceny
• Outside Authorities Access
• Secured Areas Access Control
• Delivery Monitoring
• Video Surveillance
• Cash Handling Procedures
• Securing Product Deliveries
• Securing Armored Cash Pickups
51
SECTION 2.4 SOCIAL POLICY SECTION 9-3316 (B) (1) FRESNO MUNICIPAL
CODE (FMC) PERCENT OF LOCAL HIRES
Local Hiring. Green Door Fresno is committed to creating job opportunities for Fresno
residents. Moreover, whenever possible, Green Door Fresno will utilize Fresno
businesses in connection with business operations. In order to facilitate local hiring and
utilization of local business, Green Door Fresno will model its local hiring program on
the Fresno’s local hire program. At Green Door Fresno, local employees means an
innate understanding of the community and its inhabitants, which will help Green Door
Fresno to more readily address the needs and concerns of the community.
SECTION 2.5 LOCALLY OWNED AND MANAGED BUSINESS
Local entrepreneurs and business operators Pietro De Santis (raised in Fresno, and
who has been active in the residential and commercial real estate markets locally since
age 19), Kenneth Labendeira, Sonny Santiago, Mike Contreras, and Tiffany Bean have
been active in the Fresno business community for a combined total of over 50 years.
SECTION 2.6 NUMBER OF EMPLOYEES AND ROLES AND
RESPONSIBILITIES:
Based on operators experience from retail locations of similar size, Green Door
Fresno anticipates employing approximately 35 full and part time employees. Green
Door Fresno estimates the following number of employees per shift:
General Manager (1):
General Managers will be responsible for implementation of Green Door Fresno
SOPs and oversight of all managers and staff. General Managers responsibilities
include but are not limited to:
* Opening and closing of the retail store
* Oversight of Day-to-Day operations
* Approval of all inventory orders
* Work closely with owners, co-managers, accounting, staff and security in all
aspects of the business.
Managers: (1)
Managers support the GM and staff to facilitate day-to-day operations in support of
Green Door Fresno SOPs.
52
SECTION 2.6 (Cont.)
Inventory Manager: (1)
Inventory managers are responsible for all inventory orders/reorder approvals, vendor
shipment intake management and product aging/payout reports, assuring all inventory
is properly entered into the POS and METRC systems by inventory staff.
Controller / Bookkeeper: (1)
The Controller is charged with keeping all company financial books and records up to
date daily. Controller will collect financial data and present to company
CFO/accounting professionals.
Retail Floor Manager: (1)
The retail floor manager is responsible for all sales associate staff, POS/register
management, product displays and sales associate customer service oversight.
Sales Associates: (20 total – revolving shifts of 8-10 associates per shift)
Sales associates are responsible for greeting guests that are assigned to them from
reception. Sales associates follow Green Door Fresno guest interaction
protocols/SOPs and providing the customer with an elevated cannabis shopping
experience. Sales associates greet customers with IPad in hand, and are trained to
share the latest product offerings, product information and store specials. Once guests
have made their product selections, the sales associate will guide the customers to the
POS register for payment and checkout.
Security: (3 per shift operational hours, 1 per shift after hours)
Security Roles and responsibilities:
Security job duties include, but are not limited to:
• Grant access to visitors and check identification.
• Watch CCTV cameras and the alarm reporting module in the ACS software for
anomalies, alerts, or alarms.
• Respond to alerts, alarms, and suspicious activities to investigate, and contact
law enforcement when necessary.
• Maintain the visitor/guest log.
• Patrol the property and use the patrol verification tool as required under the Post
Orders.
• Provide excellent customer service to Green Door Fresno clientele; and
• Prevent loitering or consumption by Green Door Fresno clientele.
53
SECTION 2.6 (Cont.)
Security Officers conduct routine daily inspections of the exterior areas surrounding the
premises and remove any litter or unwanted items upon discovery. Any concerns
discovered during inspection are reported to management, or if necessary, to law
enforcement authorities. Inspecting Security Officers sign and date the Premises
Inspection Log, noting any concerns discovered and reported.
Delivery drivers (2)
Delivery drivers facilitate delivery orders and prepare customer online (in store pick-
up) orders.
Additional Support Staff (1) Full time employee in each position/per shift
Position Responsibilities
Intake: Checking in customers, verifying IDs and medical
recommendations, checking customer's temperature
Upstairs Fulfillment: Sends down product stored in the refrigerator and assists
with any inventory or Meadow issues
Downstairs Fulfillment: Stocks/Merchandises the inventory on the sales floor.
Packing/Pick-up: Packs online orders, contacts customers on any issues
regarding their online order, and updates I Heart Jane's
online order tracking system.
Runner/Front Cashier: Runs curbside orders and assists with cashing out
customers.
Sticker: Stickers new product to keep with BCC Compliancy.
Receiving: Receives shipments and enters POs into Meadow.
A/P: Accounts payable puts together employee paychecks and
pays vendors.
Shift Lead: Runs the break schedule, handles escalated customer
issues, updates CFO and accounting staff. Develops daily
discounts, creates signage to advertise deals
Cashier/Phones: Cashiers are responsible for cashing out customers and
answering any incoming phone calls.
54
SECTION 2.7 Labor Peace Agreement
Labor Peace Agreement between Hemp Valley LLC. and International
Longshore and Warehouse Union.
55
SECTION 2. Labor Peace Agreement
56
SECTION 2. Labor Peace Agreement
57
SECTION 2. SECTION 2. Labor Peace Agreement
58
SECTION 2.8 WORK-PLACE PLAN:
SECTION 2.8.1 MINIMUM (30%) LOCAL HIRE
Green Door Fresno will maintain 30% of Green Door Fresno’s payroll with Fresno
resident employee hours. Moreover, whenever possible, Green Door Fresno will utilize
Fresno businesses and contractors in connection with business operations.
First, Green Door Fresno will conduct local outreach to identify and register local
businesses and local residents for job referrals, including NAACP, Women at Work,
Fresno Chamber of Commerce, the Fresno African American Coalition. Green Door
Fresno’s principal Pietro De Santis has been supporting African American Coalition
and most recently provided PPE to the coalition and the City of Fresno. Then, Green
Door Fresno will identify and promote local procurement and contracting opportunities
for local businesses and local hiring opportunities for the hiring of Fresno residents.
Next, Green Door Fresno will support and promote the application of local preferences
when selecting contractors and individuals to work for Green Door Fresno. Green Door
Fresno is aware of the many job fairs held in the City of Fresno and will participate in
these events. Green Door Fresno will track its progress in local hiring and utilization of
local contractors and make that data available to the city.
SECTION 2.8.2 APPRENTICESHIP/CONTINUED EDUCATION IN THE FIELD
Green Door Fresno is committed to having a robust employee education program. All
employees and managers will participate in structured training programs developed by
Michael Nolin and Rami Hajar that include research-backed information regarding the
endocannabinoid system, safe cannabis use, local regulations regarding smoking,
alternative delivery methods, and laboratory testing requirements. Green Door
Fresno’s employees will possess an understanding of California and Fresno laws and
regulations regarding cannabis, short- and long-term effects, products that may benefit
customers, risks and warning signs of abuse, safe handling of cannabis products,
ethics, and customer privacy and rights. Green Door Fresno will utilize workshops,
digital and print educational materials, and seminars to better inform and educate
employees.
Orientation Training. Upon joining Green Door Fresno, a new employee receives a
copy of the Employee Handbook and participates in orientation training that is
appropriate to the employee’s job function and includes information regarding
customer service, quality control, security, workplace safety, age-verification devices,
daily limits, recordkeeping, and regulatory responsibilities. Managers, Sales Assistants
and Delivery Employees are trained to follow Green Door Fresno’s standard operating
procedures to ensure familiarity with industry best practices that enhance the customer
retail and delivery experiences.
The intent of this specialized educational information is to provide Green Door Fresno
employees with a detailed knowledge of cannabis and cannabis products that extends
beyond the common sativa versus indica simplifications and accounts for current
59
SECTION 2.8.2 (Cont.)
cannabis compound pharmacology to better assist customers in determining their
dosage, preferences, and desired effects.
Non‐Cannabis Training Curriculum. Beyond cannabis education and expertise,
Green Door Fresno training will address compliance with California and Fresno
regulations, workplace etiquette, defining sexual harassment, reporting sexual
harassment, and creating a positive work environment. In addition, Green Door Fresno
will provide cultural competency training, Sensitivity training, customer service training,
and advance training in identifying substance abuse so that Green Door Fresno
employees are equipped to interact with Fresno’s diverse population.
Brand Partnership Training. Green Door Fresno’s employees understand that
customers rely on them to determine the differences in cannabis products. Knowing
this, Green Door Fresno will arrange for brands whose products are sold in its facility
to educate employees on the differences between their products, their potency, their
effects, and administration techniques.
Ongoing Training. Green Door Fresno recognizes that not all employees learn the
same way or at the same speed. Thus, management speaks with each employee
individually to assess the employee’s experience and learning style and adapts training
accordingly. Moreover, in addition to in-person, hands-on training, Green Door Fresno
will offer computer modules and other reading materials so that employees are able to
conveniently access training information in written form (to accommodate visual
learners) and on an ongoing basis. At a minimum, Green Door Fresno’s current SOPs
are made available to all employees.
Green Door Fresno will continue to train on an ongoing and on-the-job basis to ensure
that employees are familiar and comfortable with Green Door Fresno’s policies and
procedures and are able to meet Green Door Fresno’s standards in the execution of
their duties. To identify any deficiencies, Green Door Fresno will review the
effectiveness of training both informally and at employee weekly review meetings. All
training is done on a weekly basis and documented, and training records are retained
in personnel files.
Cal-OSHA Training. Within one year of receiving its license, Green Door Fresno will
ensure that at least one supervisor and one employee successfully complete a Cal-
OSHA 30-hour general industry outreach course offered by a training provider that is
authorized by an OSHA Training Institute Education Center to provide the course.
60
SECTION 2.8.2 (Cont.)
SECTION 2.8.3
Green Door Fresno will invest in its employees by providing optimal workforce
compensation benefits and training. Green Door Fresno’s starting salary is higher
than the minimum living wage, and Green Door Fresno believes in supporting its
employees economically
SECTION 2.9 SOCIAL EQUITY INCUBATOR / EQUITY PRODUCTS PLAN AND
SUPPORT:
Green Door Fresno is committed to carrying a fair percentage of locally sourced social
equity business products and brands, (at no charge) for point of sale shelfing space
and marketing programs. This will allow our social equity partners retail access and
marketing value for their business. Green Door Fresno will support Social Equity
businesses and products and will work with the City of Fresno to further its Social
Equity program.
61
SECTION 3. NEIGHBORHOOD COMPATABILITY PLAN
Pre-Application Outreach. Hemp Valley LLC. has developed a deep understanding
of the Fresno community through its extensive pre-application outreach. In order to
obtain a better understanding of Fresno, Green Door/Hemp Valley management
representatives met with residents, business owners, and non-profits. Specifically,
Hemp Valley LLC. decided at the beginning of the application process to send Atrium’s
COO/Regional Operations Manager Rami Hajar to Fresno to familiarize the
management Group with the Fresno community and Pietro’s community outreach and
engagement initiatives. Many people commented that the obvious quality of the design
was calming to those that harbored lingering objections about the look of retail
cannabis. Green Door/Hemp Valley received no concerns regarding crime or the
potential of being a public nuisance.
Green Door Fresno’s Website. Green Door Fresno will establish a website
(www.Greendoorfresno.com) notifying the Fresno community of its intention to pursue
a cannabis retailer license in Fresno. The website will contain videos of the grand
opening of Green Door Fresno, and Green Door Fresno will invite visitors to leave
comments or ask questions in an online submission form.
Door‐to‐Door Outreach. Green Door Fresno will conduct door‐to‐door outreach at
each property located within a 1,000-foot radius of its location. The ownership team
has conducted similar outreach in connection with their other licensed cannabis
projects. The inclusion of neighborhood in the planning of the project allows Green
Door Fresno to respond to community concerns.
Community Seminars. Green Door Fresno will conduct community educational
seminars for individuals interested in understanding more about cannabis and the
cannabis industry. These talks will offer an opportunity for members of the local
community to learn more about the science and regulations concerning cannabis in an
informal, approachable setting.
Topics will include the endocannabinoid system in the human body, regulations behind
personal use and cultivation, the medicinal benefits of cannabis, what to look for before
purchasing a product, how to read and understand a cannabis product label, cannabis
safety, and more. Seminars will be comprised of recognizable figures from the
cannabis industry and are modeled after author lectures at bookstores—welcoming,
engaging, and informative.
63
65
SECTION 3.1 RESPONSE TO COMMUNITY COMPLAINTS:
Responsiveness. Green Door Fresno will implement a robust framework to obtain
community feedback and respond to it immediately. Green Door Fresno will establish
a website (www.greendoorfresno.com) wherein customers can directly leave
messages for the Green Door Fresno team. Additionally, Green Door Fresno will have
a 24-hour community liaison, whose telephone number and e‐mail address will be
prominently posted on the outside of the Green Door Fresno facility. The Green Door
Fresno team also monitors a general e‐mail address and communications on social
media (e.g., Facebook, Instagram, Yelp). The goal of this program is to respond to
community concerns immediately so issues can be resolved without city intervention.
SECTION 3.2 NUISANCE IMPACT TO SURROUNDING COMMUNITY:
Green Door understands Fresno values and unique aspects of the community.
Through its broad community outreach, Green Door Fresno has a deep understanding
of Fresno values and understands that Fresno’s values are critical to accomplishing
the city vision of combining science and technology, arts and culture, history, and
architecture with great neighborhoods and opportunities for all. In furtherance of
making the city vision a reality, Green Door Fresno will incorporate Fresno’s city values
into its operation.
Green Door Fresno intends to implement proven standard operating procedures
(“SOPs”) that ensure its business minimizes its environmental impact, improves the air
quality for its customers and employees, and serves as a leader in the cannabis
industry for community integration and nuisance abatement. Green Door Fresno has
contracted with Turner Security to ensure the safety of employees, customers and
neighboring residents.
SECTION 3.3 ODOR MITIGATION:
Odor Control Experience. Green Door Fresno will rely on its owners’ years of
experience as operators in the cannabis industry to utilize the best practices available
in regulating air quality and odor control. At other facilities — Green Door San
Francisco - Atrium in Woodland Hills and DC Collective in Canoga Park—Green Door
owners have seen which odor management policies work best in practice and intend
to apply this knowledge in the City of Fresno.
66
SECTION 3.4 POTENTIAL ODOR SOURCES:
Green Door Fresno houses various cannabis products, that may result in potential odor
sources. Green Door Fresno recognizes the potential for these sources and has
multiple proven strategies to address odor mitigation.
SECTION 3.5 ODOR CONTROL DEVICES AND STRATEGY:
Odor Control System. Air inside Green Door Fresno’s facility will be filtered,
exhausted, and replaced with fresh air multiple times per hour. Green Door Fresno will
ensure that all areas where cannabis odors are present are constructed in such a way
that they are sealed, forcing air to leave the facility only through the filtered ventilation
system—the result of negative air pressure — ensuring that cannabis is not detected
offsite.
Ventilation and Negative Air Pressure System. The purpose of Green Door
Fresno’s ventilation system is to filter and exchange the air in the areas on its premises
where cannabis odors are present and to maintain a negative air pressure in those
areas so that cannabis odor is not detected outside of the facility.
Carbon filtration is currently the most effective method of controlling cannabis odor. Air
exhausted through Green Door’s ventilation system will be cleaned by inline carbon
filters attached to the ducting. Pleated carbon filters attached to package unit air
conditioners on the roof of the building will clean the air entering the premises. This
ventilation system will allow for multiple air changes per hour, ensuring that the air
inside Green Door Fresno is fresh, and the air outside the facility is free from the smell
of cannabis.
Negative air pressure occurs when the air being brought into a room is less than the
air being exhausted from it. Precise control of a room’s air pressure can essentially
allow for the control of where the air in the room—and thus the odor—can travel. Green
Door Fresno will install inline fans in the ducting of the building that will afford
management precise control over the amount of air being ventilated from a specific
room. Rooms where cannabis odors are present will be maintained under a negative
air pressure by controlling the fan speed or altering the fan size such that the air
exhausted from the room through the carbon filters is always greater than the air being
brought into the room.
Intake and exhaust vents will be located in the ceiling of all rooms where cannabis
odors are present on the premises. Ventilation lines will consist of R8 insulated ducting
and KD sheet metal ducting helping to ensure that no air escapes the ventilation
system before it passes through the inline carbon filters.
Green Door Fresno’s air filtration system will also utilize a prefilter to increase the
lifespan and effectiveness of the carbon filters. Prefilters ensure that dust in the
ventilation system does not clog the filter.
67
SECTION 3.5 (Cont.)
Carbon filters will be replaced according to a schedule determined by the cubic
footage of the rooms where air is being cleaned. The pleated carbon filters in the air
conditioning units will be replaced at least once per year. Green Door Fresno’s owners’
previous experience operating other retail cannabis locations has provided knowledge
about how long these filters last and when they need to be inspected.
SECTION 3.6 STAFF ODOR TRAINING AND SYSTEM MAINTENANCE SOPS
Inspection and Maintenance Procedures. Management conducts an inspection of
the premises every morning before opening. If cannabis odor is detected, management
contacts a designated HVAC professional to visit the facility immediately and inspect
the system. If necessary, Green Door Fresno will replace carbon filters to alleviate the
odor. Additionally, Green Door Fresno’s community relations contact will immediately
report any odor complaints from neighbors to management.
Because every location has its own unique challenges, Green Door Fresno realizes
that it cannot completely rely on past experience to model its odor control system in
Fresno. In other locations throughout the state, Green Door has found that filter
inspections once every six months is sufficient for ensuring that filters are performing
efficiently; however, in its Fresno location, Green Door Fresno will initially inspect filters
once every three months to determine an appropriate replacement schedule.
Green Door Fresno will hire HVAC professionals with previous experience installing
odor control systems for cannabis businesses. These same experienced HVAC
professionals will be hired to conduct maintenance on the ventilation and air filtration
system.
SECTION 3.7 WASTE MANAGEMENT PLAN:
Inventory Disposal. All cannabis is disposed of and destroyed in accordance with
Green Door Fresno’s Cannabis Waste Policy. Specifically, all cannabis waste is
carefully stored, secured, and controlled to prevent diversion and promote safety.
Green Door Fresno’s policies aim to deter individuals from scouring through its
cannabis waste receptacles in search of discarded cannabis goods. Cannabis waste
will be stored, managed, and disposed of in accordance with all applicable waste
management laws. Cannabis goods intended for disposal will remain on Green Door
Fresno’s premises until rendered into cannabis waste. Cannabis goods intended for
disposal will be secured and separated from other cannabis goods on the premises,
with access limited to Green Door Fresno employees or agents, until the goods are
destroyed and ready for disposal. To be rendered as cannabis waste for proper
disposal, cannabis goods will first be destroyed on Green Door Fresno’s premises.
68
SECTION 3.7 (Cont.)
This includes, at a minimum, removing or separating the cannabis goods from any
packaging or container and rendering them unrecognizable and unusable. Until
cannabis waste can be removed from the premises, cannabis waste is secured in a
receptacle on the premises that is accessible only to Green Door Fresno employees
and authorized waste haulers. Management performs a visual security inspection of
the cannabis waste receptacles each morning to check for tampering or damage and
promptly addresses any issues.
Green Door Fresno maintains accurate and complete records to account for, reconcile,
and evidence disposal of cannabis waste. Green Door Fresno will report all cannabis
waste activities, up to and including disposal, into Track- and-Trace. Cannabis waste
disposal records will be entered into Track-and-Trace, maintained electronically for at
least seven years, and made available to regulators in electronic or hard-copy form
immediately upon request. Specifically, the following information will be entered into
Track-and-Trace for each cannabis waste destruction and disposal: (i) name and type
of the cannabis goods; (ii) UID of the cannabis goods; (iii) amount of the cannabis
goods, by weight or count, and total wholesale cost of the cannabis goods, as
applicable; (iv) date and time of the destruction and disposal; (v) name and license
number of other licensees involved in the destruction and disposal; (vi) name of the
employee performing the destruction or disposal; (vii) reason for the destruction and
disposal; and (viii) entity disposing of the cannabis waste. Management will oversee
cannabis waste and will ensure that the destruction and disposal is entered into Track-
and-Trace.
69
SECTION 4. SAFETY PLAN
Green Door Fresno
4672 Blackstone Ave.
Fresno Ca
Fire and Life Safety Plan and
Emergency Evacuation Plan
4.1 GENERAL:
This plan has been prepared by Eleanor Ratliff, owner of Eleanor Ratliff Consulting,
LLC. Eleanor Ratliff has over twenty-seven years’ experience in Fire Prevention and
Hazardous Materials inspection, management and emergency response and is a
California State Fire Training Certified Fire Prevention Officer, Fire Training Officer and
Hazardous Materials Specialist. Retired from Sonoma County Fire and Emergency
Services, she now teaches Fire Prevention classes in the Fire Technology program at
Santa Rosa Junior College and manages Eleanor Ratliff Consulting, LLC.
This plan is intended to address comprehensively the issue of providing for the orderly
evacuation of the facility during emergency situations. The main goal of any evacuation
is the rapid, systematic removal of all persons from potentially hazardous areas, to a
safe evacuation staging point, to account for all employees, and to assure an all-clear
of the evacuated area.
4.2 RESPONSIBILITY: The General Manager is responsible for all facets of this
program and has full authority to make necessary decisions to ensure success of the
program. The General Manager is the sole person authorized to amend these
instructions and is authorized to halt any operation of the company where there is
danger of serious personal injury.
Contents of the Facility Evacuation Plan
• Written Program
• Evacuation Notification
• Employee Responsibility
• Supervisor Responsibility
• Visitor Responsibility
• Contractor Responsibility
• Procedures for Fire & Explosions
• Procedures Medical Emergency
• Power Outage Procedure
• Procedures Spills or Gas Release
• Procedures for an Earthquake
• Procedures for a Bomb Threat
• Procedures to Return to Work
• Emergency Evacuation Map
Locations.
• Evacuation Staging Areas
• Accident and Incident Reporting
and Notification
70
4.2 Written Plan.
Green Door Fresno will review and evaluate this plan:
On an annual basis,
When changes occur to 29 CFR, that prompt revision of this document,
When facility operational changes occur that require a revision of this document,
After an evacuation, to make improvements from “lessons learned,”
Any time a component of the plan fails.
Effective implementation of this program requires support from all levels of
management within this company. This plan will be communicated to all
personnel that are affected by it. It encompasses the total workplace, regardless
of the number of workers employed or the number of work shifts. It is designed
to establish clear goals and objectives.
4.3 Evacuation Notification
The order to evacuate will be made by General Manager or any supervisor.
All evacuations will start with either the fire alarm signal, or the face to face
announcing of the EVACUATION ORDER or the notification of an affected area
supervisor.
All evacuation orders will include:
The reason for the evacuation,
The area or areas involved in the evacuation,
Any area or areas to be avoided in the evacuation,
Any evacuation staging points that must be avoided.
4.3 Employee Responsibility
All employees upon receipt of an evacuation order shall exit the work area via
the Nearest Unaffected Exit. They shall proceed to the designated evacuation
staging area for the area within the building they were in at the time of the
evacuation order, quickly and quietly. They shall also upon request, aid their
supervisor in taking role or by being a runner.
Egress Routes. All employees shall become familiar with the location of all
posted egress routes of the facility areas that they frequent and shall know the
primary and secondary egress routes of their work area.
Evacuation Staging Areas. All employees shall become familiar with the
marked evacuation staging points and shall know the primary evacuation
staging area of the facility areas that they frequent and for their work area.
NO ONE WILL LEAVE AN EVACUATION STAGING AREA WITHOUT THE
EXPRESS PERMISSION OF THE SENIOR EMPLOYEE PRESENT.
Arrival Actions. Upon arrival at an evacuation staging area, each employee
shall seek out the senior employee present to assure that they have been
accounted for. They shall also upon request, aid area supervisors or managers
in taking a role or by being a runner.
71
Visitor Escorts. Each visitor at the facility must always be escorted throughout
the facility by a company employee. The escort will ensure their visitor is
escorted to an evacuation staging area or safe spot as required. Upon arrival
at an evacuation staging area, the visitor's name will be forwarded to the
employee in charge at the evacuation staging point.
4.3 Supervisor Responsibility
If time permits, supervisors shall determine what machines or processes should
be shut down. Hazardous process shut down will be done in accordance with
established procedures.
Supervisors shall assist employees in making a quick egress of the area and
direct them to the assigned evacuation staging point.
Supervisors shall take role to assure all their employees are accounted for and
shall submit a list of any employees missing and/or additional persons located
at their evacuation staging area to senior management and or the responding
fire department.
A Human Resources representative will verify the employee rosters and note
any people on leave or absent at the time of the evacuation.
The General Manager and Supervisors will make sure employees on all shifts
are trained to this plan.
4.3 Visitor Responsibility.
Company Escorts. The evacuation of a visitor or customer is the responsibility
of the company escort. All visitors will be briefed that they must always be
escorted in the facility by a company employee.
Evacuation Staging Areas. All visitors shall be briefed prior to entering, on the
safety rules and regulations at the facility. Upon notification of an evacuation
the escort will ensure that they immediately exit the building via the nearest exit,
report to the nearest evacuation staging point, and give their name to the senior
employee in that evacuation staging area.
NO ONE WILL LEAVE EVACUATION STAGING AREAS WITHOUT THE
EXPRESS PERMISSION OF THE SENIOR EMPLOYEE IN CHARGE.
4.3 Contractor Responsibility
The evacuation of an employee of a contractor is the responsibility of that
contractor.
Evacuation Staging Areas. All contractor employees shall be briefed by the
contractor's management before entering the site, as part of any required OSHA
training. Upon notification of an evacuation they will immediately exit the
building via the nearest exit and report to the nearest evacuation staging area
and give their name to the senior employee present.
NO ONE WILL LEAVE EVACUATION STAGING AREAS WITHOUT THE
EXPRESS PERMISSION OF THE SENIOR EMPLOYEE IN CHARGE.
72
4.3 Procedures for Fire & Explosions
Upon notification of a fire or explosion by the facility fire alarm system, or as
directed by management, all employees not assigned emergency duties should
evacuate the building immediately in accordance with the posted evacuation
routes and report to the assigned (or) nearest evacuation staging area or
location designated at the time.
Supervisor Responsibilities. Supervisors will provide guidance and instructions
as needed. Evacuation should be done in a calm and orderly manner. If time
permits, search all confined areas, such as washrooms, rest rooms, etc.
NO ONE WILL LEAVE EVACUATION STAGING AREAS WITHOUT THE
EXPRESS PERMISSION OF THE SENIOR EMPLOYEE IN CHARGE.
Employee Responsibilities. Once you leave the building, NEVER RE-ENTER
until instructed to do so by management! If time permits, employees leaving the
building should close all doors to help contain the spread of fire.
Difficulties in Evacuation. If smoke and/or heat conditions are encountered
while evacuating, remember to stay low to the floor and exit by the nearest door
or window. In the event of a major fire, evacuation may have to be delayed until
the fire is under control and/or extinguished. If this situation exists, remain calm
and shield yourself from the fire. If you are unable to escape, stuff clothing,
rags, etc., in or around all cracks to help keep the smoke from entering your
location. It is most important to try and notify someone of your location. If the
telephone is out of service, try to get someone's attention by yelling or making
noises. ABOVE ALL, remain calm until help arrives.
After employee notification is accomplished, the facility manager shall remain
near the front entrance until the local fire department arrives and prepare to
receive information from area supervisors upon the completion of their
evacuation. The facility manager shall remain in charge until the local fire
department arrives.
The General Manager will oversee the communication with the alarm company
and the restoration of all alarms.
4.3 Power Outage Procedure (Employee Responsibilities).
When a power outage occurs, the following procedures should be followed:
Stop what you are doing, but DO NOT move around until the emergency lights
come on.
All personnel (except those designated to handle equipment procedures during
power failure) should report to their supervisor once the emergency lights come
on.
Once everyone arrives in the evacuation area, a head count should be obtained
by each supervisor of their work area personnel.
The shift supervisor, or authorized management person should determine that
all work area personnel are accounted for (except equipment designated
personnel).
The shift supervisor, or authorized management person should then find out the
extent of the power failure and issue assignments, accordingly, depending on
the situation.
73
4.3 Procedures for A Spill or Leak
While no hazardous materials are used on site the potential for a release or spill
is still required. Upon notification or alarm of a hazardous materials spill or leak
the emergency personnel shall announce the appropriate evacuation
information by telephone or verbally to the affected area or areas.
Close the door to the extraction room so the ventilation system can exhaust the
gas or vapors.
The facility manager or General Manager shall notify the proper authorities.
After notifying affected areas the facility manager or General Manager shall
remain at the front entrance and prepare to receive information from area
supervisors upon the completion of their evacuation. The facility manager shall
remain in charge until relieved by the authorized emergency personnel.
The facility manager or General Manager shall give all information about this
incident including the degree of success of the evacuation to the emergency
personnel upon their arrival. If outside agencies are notified, brief the agencies
upon their arrival.
4.3 Procedures for An Earthquake
The response to an earthquake is a reactive one, thus no warning is given. Take
cover in doorways, or under heavy, well-supported, machinery.
After the earthquake subsides, evacuate the building to the designated
evacuation staging areas.
If any damage has occurred to the facility, facility manager or General Manager
shall notify the proper authorities. This person shall prepare to receive
information about damage to the property, and or trapped or missing persons.
The General Manager shall remain in charge until relieved by senior
management personnel.
The facility manager or General Manager shall forward all pertinent information
to management personnel or other agencies upon their arrival.
4.3 Procedures for A Bomb Threat
Upon notification of a Bomb Threat the General Manager shall notify the proper
authorities, i.e., Police, Fire Department via the 911 emergency system.
After notifying affected areas the General Manager shall remain at the phone
and prepare to receive information from area supervisors upon the completion
of their evacuation. The General Manager shall remain in charge until relieved
by senior management personnel.
The General Manager shall give all information about this incident including the
degree of success of the evacuation to the management personnel upon their
arrival, or to other agencies that have been requested to respond.
4.4 Locations of Fire Extinguishers:
Fire extinguishers will be located throughout the building according to the Fire
Plan and Fresno Fire Code Regulations. (See Fire Plan Map below)
74
4.5 Procedures for a Workplace Injury or Medical Emergency:
Onsite medical emergencies involving a customer or employee will be reported
via the 911 system and medical emergency responders summoned.
An employee will meet the emergency responders near the main entrance and
provide needed information.
An OSHA Reportable workplace injury to an employee will reported to Cal
OSHA at (559) 445- 5302
4.5 Procedures to Return to Work
Facility Evacuation. After a survey of the facility has been conducted by
emergency responders, and/or personnel designated by management, the
decision for return to work will be made.
If the area is declared hazard free, personnel may return to work once the order
is given. If hazards are detected, personnel will be released to go home.
Emergency Evacuation Map Locations.
EMERGENCY EVACUATION AREAS AND EXITS
Plant Location Map Location of Exit
Route
Evacuate/Assemble To
Offices Near rear exit Staging Area
Customer/Store area Near main exit Staging Area
Storage area Near rear exit Staging Area
4.5. FIRE SAFETY:
The facility is equipped with an automatic fire alarm that is interconnected by a
third-party monitoring company. A fire alarm will automatically be transmitted to
the fire alarm company and then relayed to the emergency 911 system for
emergency resource dispatch.
Upon detection of a fire, via smoke detectors, the onsite audible and visual
notification signal will activate. An audible and visual alarm is in every occupied
area including the restrooms, storage areas, lobby, sales area, offices, and
breakrooms.
The fire alarm system will be inspected and serviced annually by a licensed fire
alarm company.
Fire extinguishers are combination 2A10BC sized as required for low hazard
occupancies.
Fire extinguishers will be located at each exit and within the facility so that a
minimum travel distance of 50 ft to an extinguisher from any location is viable.
75
SECTION 4.5 (CONT.)
Fire extinguishers will be serviced annually by a licensed fire extinguisher
company.
Potential ignition sources (smoking materials, extension cords, portable
heaters, etc.) is prohibited from use in the facility except for temporary extension
cord use (less than 90 days).
General housekeeping will be maintained so as not to accumulate combustible
packaging and refuse.
Emergency exits will always be kept clear and accessible.
Storage of goods and product will be limited to a maximum of 12’ in height and
restricted to 24” below the ceiling.
An emergency key or Knox box will be placed near the entrance.
A dry hydrant is located approximately 200 ft to the east and is color coded
green usually indicating 1,000-1500 GPM.
4.5. NOTIFICATION:
Fires, significant Hazardous Materials spills, and medical emergencies will be
immediately reported via the 911 system. An employee will meet the
emergency responders near the main entrance and provide needed information.
All fires will be reported even if they are extinguished by onsite personnel.
Workplace injuries requiring Cal OSHA notification will be made within 24 hours
of the reportable injury (See Accident and Injury Reporting in the Injury Illness
and Prevention Plan).
Emergency Phone Numbers will be posted in the office area.
4.5 TRAINING:
Employees will be trained by management or an outside training consultant
upon hiring and annually thereafter in the following:
Emergency Plan
Evacuation Plan and Exercise
Emergency Reporting of Fires, medical aids, bomb threats, hazardous materials
incidents.
Use of Fire Extinguishers
CPR First aid requires training every two years. (A minimum of 1 on site
employee will be trained in CPR).
Employees will be trained annually in the safe use of fire extinguishers.
77
Green Door Fresno
1133 E. Olive Ave
Fresno, CA
78
SECTION 4.5 (CONT.)
80
SECTION 4.5 (CONT.)
81
SECTION 4.5 (CONT.)
SECTION 5. SECURITY PLAN CONFIDENTIAL
SECTION 5.1 SECURITY PLAN CONSULTANT:
100
SECTION 6. LOCATION
SECTION 6.1 Description of Property:
Basic Information
The building is located 4672 N. Blackstone Avenue. It is a 1,500 square foot end cap of
a multi-tenant building, with one common wall. The 16,137 square foot complex has 11
tenants. It is on a 4.22 acre lot, and there are 93 on-site parking spaces.
Suitability of Location
This is an excellent location for our cannabis retail storefront. In 2016 the City of Fresno
rezoned Blackstone Ave from the zoning of C-6 (Heavy Commercial) to CMX
(Commercial Mixed Use). The new CMX zoning allows and encourages the
Development of Mixed use Center. Pietro De Santis, the sole Member of the Applicant
Hemp Valley LLC, is currently working with the City of Fresno on developing the vacant
land behind 4672 N Blackstone Ave in accordance with the CMX zoning. He
understands the City’s goals, and the plan set forth in this Application is designed to
meet the vision of this City of Fresno District.
The specific purposes of the Commercial Districts are to:
• Provide for a full range of commercial uses to serve Fresno and the greater
region;
• Ensure the provision of shops, services, and facilities needed to accommodate
future population and employment;
• Establish development and design standards that create a unified, distinctive,
and attractive character along commercial streets;
• Provide appropriate buffers between commercial and adjacent residential uses to
preserve both commercial feasibility and residential environments;
• Ensure that new development is designed to minimize traffic and parking impacts
on surrounding residential neighborhoods and is appropriate to the physical
characteristics of the area; and
• Implement and provide appropriate regulations for General Plan classifications of
“Main Street Commercial”, “Community Commercial”, “Regional Commercial”,
“General Commercial”, “Highway and Auto Commercial” and “Commercial
Recreation.”
The purposes of the Mixed-Use (MX) Districts are to:
• Promote pedestrian-oriented infill development, intensification, and reuse of land
consistent with the General Plan;
• Allow and encourage the development of mixed-use centers and corridors with a
vibrant concentration of goods and services, multi-family housing, and
community gathering and public spaces at strategic locations;
• Transform certain auto-oriented boulevards and corridors into vibrant, diverse,
and attractive corridors that support a mix of pedestrian-oriented retail, office and
residential uses in order to achieve an active social environment within a
revitalized streetscape;
101
SECTION 6.1 (Cont’d)
• Provide options which reduce the need for private automobile use to access
shopping, services, and employment and minimize air pollution from vehicle
miles traveled;
• Offer additional housing opportunities for residents seeking to live in an urban
environment;
• Improve access to a greater range of facilities and services for surrounding
residential neighborhoods;
• Establish development and design standards for these centers and corridors that
will create a unified, distinctive, and attractive urban character, with appropriate
transitions to adjacent residential neighborhoods; and
• Facilitate mixed-use residential development at increased densities and
intensities in key locations such as along Bus Rapid Transit (BRT) corridors.
Implement and provide appropriate regulations for General Plan Classifications
of “Neighborhood Mixed-Use” “Corridor/Center Mixed- Use” and “Regional
Mixed-Use.”
Our storefront will advance many of these goals. We will provide a high quality retail
experience to meet the needs and expectations of many in our community. We will
provide employment. Our business will be attractive, and our building has already gone
through extensive remodeling. The extensive available parking on-site will minimize
parking impacts. Many people who visit our location will take advantage of shopping
opportunities offered by nearby businesses.
In 2017, the City of Fresno launched their Bus Rapid Transit (BRT). This will be very
beneficial to our business. Our location is on the BRT route, with a stop at or near our
location. As has been true for many cannabis retail storefronts, we expect many people
will use BRT to reach us. We will also encourage our employees to use BRT. This will
help reduce the need for private automobiles.
102
SECTION. 6.2 Photo of front view of building
103
SECTION 6.3 Premises diagram (4672 Blackstone Ave.)
104
SECTION 6.3.1 Building parking:
Parking Plan
There is ample on-site parking available at 4672 N. Blackstone. There are currently 93
(93) parking spaces on the property. Employees and Patrons will be utilizing the parking
spaces available and Company promoted ride-share programs that include taking eco-
friendly and non-vehicle options to work will be promoted. There is ample free street
parking on Blackstone Ave and in all directions surrounding the property.
105
SECTION 7. COMMUNITY BENEFITS AND INVESTMENT PLAN
SECTION 7.1 Social responsibility Plan:
Green Door Fresno is keen to negotiate with the City, local stakeholders, and community
coalitions to develop a community benefits plan that is constructive in meeting real
community needs and bringing measurable and permanent enhancements to the City of
Fresno. To this end, the ownership team has already reached out and established a
partnership with one of the premier charitable organizations in Fresno, Victory Outreach
Church and Pastor Mike Contreras.
Victory Outreach is an international, church-oriented Christian ministry called to the task
of evangelizing and discipling the hurting people of the world. This call involves a
commitment to plant and develop churches, rehabilitation homes and training centers, in
strategic cities of the world.
Victory Outreach inspires and instills within people the desire to fulfill their potential in life
with a sense of dignity, belonging, and destiny. Victory Outreach works cooperatively with
others of mutual purpose in accomplishing the task before them.
Green Door Fresno is assisting Victory Outreach by developing a training program
framework for college-aged participants that will provide comprehensive cannabis
industry education, with a focus on developing career path opportunities for college-aged
students from impacted communities within the burgeoning cannabis industry.
Green Door Fresno’s senior management team will be additionally sharing advice and
support to Victory Outreach with its marketing and public relations, fundraising efforts,
and providing internship and paid job opportunities to deserving young people. Green
Door Fresno is extremely excited to be partnering on such a worthwhile cause, which will
bring growth and opportunities to the next generation of home-grown entrepreneurs.
The applicants are also enthusiastic about causes which assist offender rehabilitation.
These are the projects that will be the first beneficiaries of Green Door Fresno’s
community outreach efforts, although under the direction of Pastor Mike Contreras, there
will be many further initiatives that will be aided and energized by the presence of Green
Door Fresno.
These deserving initiatives fall into a program of good works that the applicants have
rolled out across each of their businesses, assisting otherwise underfunded public bodies
and low income or disenfranchised groups within the various neighborhoods where they
are in operation, and creating transformational impact on areas that are overdue for
investment and enrichment. For example, Pietro De Santis regularly contributes to the
community through fund raises, food distribution, donations of PPE, and countless other
community outreach programs with Victory Outreach.
106
SECTION 7.1 (Cont.)
Finally, Green Door Fresno is confident that its legal cannabis operation will itself be
welcomed as a benefit to the whole community, providing accessible and high-quality
cannabis products to those who might otherwise not have access to a safe and regulated
provider. The owners are committed to ensuring that those who are its neighbors have
opportunities to join Green Door Fresno as employees, customers, and business
associates in making this project the next commercial success story for the greater
advancement of the City of Fresno.
107
SECTION 7.1.1 Outreach Services funding:
Pietro De Santis has been in partnership with Victory Outreach on multiple initiatives and
will continue to support it in the future, in the form of capital contributions and charity
events. Green Door Fresno is committed to providing benefits and support to Victory
Outreach and its community base as well.
Expungement Clinics. Green Door Fresno has earmarked its donation to Public Counsel
for the purpose of hosting expungement clinics for individuals in the Green Door Fresno
community in which residents can have previous marijuana‐related convictions removed
from their record. Green Door Fresno will continue to support Public Counsel both through
its legal clinics, and by making gifts for the purpose of hosting expungement clinics in the
future.
SECTION 7.1.2 Environmentally sustainable business.
Green Door Fresno will utilize technology and cutting-edge solutions, leaving the smallest
environmental footprint allowable. Green Door Fresno’s location has already engaged in
sustainability efforts to optimize the property’s environmental footprint. Examples of this
are:
•The windows have been changed from single to double pained.
•The property’s ceiling and walls have been professionally insulated.
•Incandescent bulbs were replaced with high efficiency LED lighting.
•All HVAC units have been upgraded to optimum efficiency.
Additionally, Green Door Fresno’s delivery vehicles will encompass EV technologies.
SECTION 7.1.3 Utilizing vacant buildings:
The property chosen for Green Door Fresno is vacant, Green Door Fresno will improve
the aesthetics of the local neighborhood with the development of Green Door Fresno’s
and luxurious design at the 1133 Olive Street location.
SECTION 7.2 Public Health Outreach and Education Services (At-risk youth
programs):
Cannabis expert Michael Nolin, on behalf of Green Door Fresno, will actively participate in a
city led public outreach and educational program for youth organizations and educational
institutions that outlines the risks of youth use of and addiction to cannabis and that identifies
resources available to youth related to drugs and drug addiction. Additionally, Michael will
oversee development of all Green Door’s education material and community education
initiatives. Education material will appear in printed materials, video screens, and blog
posts on the Green Door Fresno website.
108
SECTION 7.2 (Cont.)
Public Safety. Green Door Fresno recognizes that cannabis users who consume
cannabis irresponsibly can adversely impact public health. Green Door Fresno believes
that customer education is the most effective harm reduction strategy to minimize impacts
on public health. Green Door Fresno’s customer and community education initiatives
relating to public health and safety issues will include:
•THC’s potential impairment of driving skills, e.g., the latest scientific review
recommends waiting up to 8 hours after maximal effects of cannabis dose before driving.
•THC exposure impact on neurodevelopment in minors. Staff will educate adult
customers on the importance of maintaining the child safety features of the products and
the risks posed to minors by early cannabis exposure.
• The use of CBD and other non-intoxicating cannabinoids to eliminate or reduce
any side effects that might be associated with THC.
•Cannabis Use Disorder. In January 2019, the first scientific compendium on CUD
was published, edited by National Institutes of Health scientists. Green Door Fresno will
incorporate all of this guidance into its educational initiatives to help reduce the small
likelihood of cannabis dependence and withdrawal symptoms among the vulnerable
subset of its customers.
•Safe pulmonary administration (vaporizers). The risks presented by cannabis
smoking remain unknown. To offset this uncertainty, as an alternative to smoking, Green
Door Fresno will recommend the use of cannabis flower vaporizers, such as those
produced by Storz & Bickel, the German medical instrument manufacturers, and provide
customers with guidance derived from United States and European clinical studies
conducted with these devices.
SECTION 7.3 Fresno Community Reinvestment Fund and local equity business
support:
Green Door Fresno will work with the city of Fresno to generously support the
Fresno Community Reinvestment Fund and create community investment partnerships
with the City of Fresno.
Green Door Fresno is committed to supporting Fresno equity businesses
through strategic partnership, fundraising events, donations and Equity Products
placements within Green Door Fresno retails.
109
ADULT AND MEDICAL USE
RETAIL APPLICATION
HEMP VALLEY LLC
City of Fresno Retail Application
Filing Pursuant to FMC 9-3316(c)
Hemp Valley LLC will employ, within one year of receiving a commercial cannabis
business permit, one supervisor and one employee who have completed a Cal-OSHA industry
outreach course offered by a duly authorized training provider.
HEMP VALLEY LLC
_____________________________
Pietro De Santis, its Member
HEMP VALLEY LLC
City of Fresno Retail Application
Filing Pursuant to FMC 9-3319(d)
I declare, under penalty of perjury, that all information contained in the cannabis retail
applications submitted by Hemp Valley LLC to the City of Fresno is true and correct. I
acknowledge that a subsequent finding of false information shall be grounds for denial or
revocation of the commercial cannabis business permit, and that a denial or revocation on these
grounds shall not be appealable.
HEMP VALLEY LLC
_____________________________
Pietro De Santis, its Member