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HomeMy WebLinkAboutCSE-20-54 Hmong Cannabis Cultivators RedactedApplication Type Social Equity Criteria Applicant (Entity) Information Social Equity Cannabis Business Permit Application CSE-20-54 Submitted On: Nov 13, 2020 Applicant Carole Cha In order to qualify as a social equity applicant, applicants must satisfy at least one of the following criteria: 1. Low income household and either: a. A past conviction for a cannabis crime, or b. Immediate family member with a past conviction for a cannabis crime. 2. Low income household in a zip code identified as at least 60% according to the CalEnviroScreen for five (5) consecutive year period and either: a. A past conviction for a cannabis crime, or b. Immediate family member with a past conviction for a cannabis crime. 3. Low income household and either: a. Five (5) years cumulative residency in a zip code identified as at least 70% according to the CalEnviroScreen, or b. Ten (10) years cumulative residency in a zip code identified by CalEnviroScreen. 4. Business with no less than fifty-one percent (51%) ownership by individuals who meet Criteria 1 and 2 above. 5. Cannabis social enterprise with no less than fifty-one percent (51%) ownership by individuals who meet Criteria 1 and 2 above. 6. An individual with a membership interest in a cannabis business formed as a cooperative. Do you meet the above criteria, and want to apply as a Social Equity Applicant? Yes Please state your annual income: 18654 Do you have a past cannabis conviction? No Do you claim eligibility based on a family member past cannabis conviction? No Do you represent a cannabis social enterprise? Yes Do you have a membership interest in a cannabis cooperative? No Application Type Proposed Location Applicant (Entity) Name: Carole Cha DBA: Hmong Cannabis Cultivators of Central California Physical Address:City: Fresno State: Ca Zip Code: 93703 Primary Contact Same as Above? No Primary Contact Name: Jenny vang Primary Contact Title: General manager Primary Contact Address: Primary Contact City: Clovis Primary Contact State: Ca Primary Contact Zip Code: 93619 Primary Contact Phone: Primary Contact Email:HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: No 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 Adult Use Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type. Permit Type Cultivation Business Formation Documentation: Sole Proprietorship Property Owner Name: -- Proposed Location Address: -- City: -- State: -- Zip Code: -- Property Owner Phone: -- Property Owner Email: -- Assessor's Parcel Number (APN): -- Proposed Location Square Footage: -- No 49 Hmong Cannabis Cultivators of Central California Business Plan-Cultivation All cannabis cultivation operations will adhere to the rules and regulations set forth by the State of California, the California Department of Food and Drug, the Bureau of Cannabis Control and the California Department of Public Health as well as all ordinances and regulations adopted by the City of Fresno. All deliveries of cannabis seedlings and immature plants shall be received through the loading bay located in the warehouse. Staff will identify the delivery driver via company issued identification card. Staff will compare shipping invoice and purchase order receipts with the plants/seedlings for accuracy and that all plants/seedlings are accounted for. All immature plants/seedlings will be taken by staff and secured in the Mother Room/Vegging Room. Immature plants will be placed into grow containers with domes to acclimate them to the environment of the Vegging Room until it is time to transfer them to Flowering Rooms. All rooms containing Seed, Seedlings, Immature Plants, Clones, Mother Plants and plants in the Flowering stage will be secured at all times with Fail Secure locking mechanisms that can only be accessed by company staff. At no time will these rooms remain unlocked for any reason to prevent unauthorized access to cannabis plants, seeds, or seedlings. All staff will be issued magnetic key cards to ensure access to these rooms are done so by authorized staff only. Planned square footage of cultivation at the beginning of our operations will be no more than 3000 sf of canopy space. As our company expands and grows, we will increase the size of our cultivating canopy space up to the maximum allowed by state law permitted for our cultivation license type: Small indoor Cultivation License 10000 sf. We estimate the number of harvests per year to be between 8-10 harvests per year. With 45-55 pounds of mature cannabis flower per harvest. These numbers will increase as we expand our operations to include more flowering rooms. The light source that will be used for each grow room will be Artificial Light Emitting Diode (LED). LED’s are much more energy efficient and run at a much cooler temperature, reducing the strain on the HVAC system resulting in lower energy consumption. Cultivation waste produced by cannabis plants will be turned to mulch and mixed with potting soils to be re-used when potting new cannabis plants. All mixed potting soils containing cannabis waste (stalks, stems, trim, leaves) will be secured in composting bins with locks located in a secure area of the warehouse until it is time to re-use. If they are not re-used, they will be disposed of according to state mandated rules on disposal of cannabis waste. Carbon Dioxide (C02) Injection systems will be used to provide cannabis plants with the required amount of C02 required for growth. C02 tanks will be stored in the warehouse inside locked metal cabinets displaying clearly marked signage. Depleted C02 tanks will be exchanged with our contracted vendor for new ones as needed. Employees handling C02 tanks will be trained on safe handling procedures and will adhere to all laws and regulations governing the use of compressed C02 gas tanks. C02 gas tanks will be stored separate from all other materials in the warehouse and away from areas with electrical outlets or electrical lines as well as other chemicals or solvents. Hmong Cannabis Cultivators of Central California Social Responsibility Plan Hmong Cannabis Cultivators of Central California is committed to the City of Fresno and its efforts to curb teen drug abuse. As a successful Social Equity business, we would commit financial resources to nonprofit organizations that serve the South East Asian Community to help educate our young teens and elders in the risks of drug abuse. Currently there are no outreach programs in the Fresno area that address drug abuse for the Hmong, Lao, Thai, Vietnamese and Cambodian population that addresses cultural barriers. We would like to partner with an outreach program that would directly address drug abuse in these marginalized communities that are far too often neglected and disassociated within the City of Fresno. Cultural and ethnic stereotypes are often the leading cause of drug abuse going undetected in these communities. The stigma of drug abuse, the need to keep it secret or keep it contained within the family or clan do nothing to stop drug abuse, it only provides the perfect atmosphere for it. Many residents of Asian ethnicity, especially the elders in these communities do not trust law enforcement or government officials. They are afraid that if they try to seek help for their child’s drug abuse, that the police or the government will come and take their children away. This leads to continued abuse among Asian teens as they know their parents are unwilling to seek out help from the community. More than often these elders do not understand that there are outreach programs that can provide help to their children without involving Law Enforcement or Child Protective Services. Educating our elders and understanding the cultural differences in these communities would help to curb drug abuse. We would also like to support the Police Activities League and become more active in the Asian Community. Hmong Cannabis Cultivators of Central California would commit financial resources to the PAL program to achieve this in hopes that it would encourage our youth to stay away from becoming involved in gangs and gang activity. Often there are a lack of positive role models in the Asian community which can lead to our youth feeling disenfranchised. A Positive police presence in this community would help build trust and help break down cultural barriers in the community. We would also incorporate into our business model environmentally friendly technology. Our cultivation rooms would utilize energy efficient LED’s to reduce our energy consumption. LED lighting operates at much lower temperatures reducing the strain on the HVAC system thus further lowering our energy demand on the power grid. LED lighting in our offices would also help to reduce our overall use of electricity. Our irrigation system for cannabis plants throughout the growth cycle will use automated drip irrigation systems lowering the amount of water usage. We would also employ a recapture re-use system to collect excess water from the plants. This water would then be filtered for sediment and re-introduced into our built-in water tanks for re-use. This would eliminate the possibility of fertilizers being introduced into the ground or sewer system potentially contaminating the ground water supply. Hmong Cannabis Cultivators of Central California 1 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Executive Summary Opportunity Problem The City of Fresno is a new emerging market for the recreational cannabis industry, and without local cultivators producing cannabis for the Fresno area customers are left with no choice but to travel outside the city to make their purchases. This results in lost tax revenue for the city and the people of Fresno. Solution Our company would be able to provide the people of Fresno with a quality grown product at competitive prices. This would eliminate the need for distributors operating in Fresno to travel outside the area for cannabis as our business would be located here in the city and provide our products distributors locally. Market The City of Fresno has a population of over 580 thousand residents and Clovis has over 120 thousand residents. This region of California is largely unserved when it comes to recreational marijuana as there are currently no commercial cannabis businesses in operation. Competition Our competition is well established and already operating at full capacity. But we have the advantage of being local. Our distributors would not have to travel outside the area to obtain cannabis flowers as our will be grown right here. Why Us? Our company is made up of individuals from various backgrounds. But we all share one thing in common and that is our dedication to our company and making it succeed. We have worked tirelessly to get to this point and will continue to strive towards success. Hmong Cannabis Cultivators of Central California 3 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Opportunity Problem & Solution Problem Worth Solving The city of Fresno is an emerging new market for the cannabis industry. Without cultivators based here in the City of Fresno, distributors and manufactures will have to travel to neighboring counties sometimes over one hundred miles away to source cannabis and cannabis products resulting in the increase of costs to purchase goods that will be passed down to the consumer. The city of Fresno will also see a loss in sales tax revenue for the city as these transactions continue to increase over time and no cultivator to replenish their shelves with product. Our solution Our company, Hmong Cannabis Cultivators of Central California (HC4) will fill the need for locally grown cannabis for the city of Fresno. We will offer a variety of different strains of cannabis grown utilizing the latest indoor cultivation strategies and technologies to produce the finest quality cannabis products for the Fresno area market. Eliminating the need to source cannabis from outside of the Fresno Area. Target Market The city of Fresno has a population of over 530,000 people, while its sister city, Clovis has a rapidly growing population of over 112,000. This new market, the 5th largest city in California by population is largely untapped when it comes to recreational cannabis. California's cannabis market is projected to explode to 7 billion dollars by 2024, 253% larger than that of Colorado. This puts Fresno in position to become the largest cannabis market in the entire central valley that has a population of over 7.2 million people. Hmong Cannabis Cultivators of Central California 4 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Competition Current alternatives As a cultivator in a new market here in the city of Fresno, we don't have any local competitors. But the there are in fact many well established Cultivators through out the state. Many of whom already have established themselves as leaders in the cannabis market. Growers like Caliber, based out of Salinas California and Autumn Brands from Santa Barbra have established themselves as premier cultivators. And with Brand recognition many customers have become loyal patrons to those brands. Our advantages Although it would be a challenge to try and compete with these established cultivators, we have the advantage of being local and will be able to provide a quality product to our distributors here at the local level. Hmong Cannabis Cultivators of Central California 5 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Execution Marketing & Sales Marketing Plan Our marketing plan as a startup will focus primarily on the local market. Branding ourselves as "Grown in the Central Valley for the Central Valley". As other commercial cannabis businesses come online in the Fresno area, we would work directly with each one of them to build an ecosystem that serves the Fresno area market. Grown locally, manufactured locally and sold locally. Advertising would be limited to social media, community outreach and meet and greets as we enter the market. As we continue to grow and expand our brand we would like to advertise using other avenues allowed by state law. We hope to work with other local cannabis companies to establish an ongoing agreement that would benefit everyone as we establish ourselves in the local market. We would also use Meet and Greet events to better expose ourselves to our local customers. Getting to know our customers on a more personal level so we can provide a better product by understanding what their needs are will give us an advantage as we continue to grow. We would like to see our products sold locally here in Fresno by local cannabis retail store owners. And in doing so we can get direct feed back from the customer as to what they like and dislike about our products. Doing this will allow us to get a better idea of what we need to do so we can improve on our product and devise a better plan moving forward. Sales Plan Our sales plan as a cultivator will be strictly wholesale to distributors. We would contact those distributors in our area and establish a working relationship with each one as well as those outside our area. Using Trellis Seed to Sale software will allow us to track our plants from the day they are planted to the moment they are sold to a distributor. Managing purchase orders with our manufacturer and using the software to keep track of exact inventory allows us to better serve them. Trellis allows for tracking each individual plant so we know exactly how long that plants lifespan is as well as tracking the yield from various strains. This will allow us to keep our manufacturers informed through out the cultivation cycle and give them an idea of how much product we will have on hand at any given point in time. Hmong Cannabis Cultivators of Central California 6 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Operations Locations & Facilities We are looking at several options as to the location of our cannabis cultivation facility. Fresno's thriving industrial district on the south end of the city is an ideal location for us and would suit our needs. We would require a ten thousand square foot facility to begin our operations. Initially we would purchase 6 Grow containers 40x8 feet inside the warehouse along with one 20X8 drying and curing container, one 20X8 storage container. A work area to trim and package would require a smaller space roughly 20x40 foot work area and offices. Our storage area for supplies like fertilizers, potting soil, packaging supplies would take up the rest of the space in the facility. Expenses Technology Our cannabis cultivation facility will utilize complete environmental control systems to maintain optimum growing conditions for cannabis plants at each stage of growth. Heating and ventilation, humidification, dehumidification and C02 systems will be controlled by the same control system that handles irrigation, fertigation and feed cycles. Each one closely monitored to ensure the plants have exactly what they need to grow. Our company will also employ LED lighting systems to reduce heat and lower energy consumption. Hmong Cannabis Cultivators of Central California 7 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Equipment & Tools We will utilize pre-engineered grow rooms with complete turnkey systems to maximize production. These grow rooms can be built to suit our needs and are easily manufactured and assembled, usually 75% faster than conventional construction. This will allow us to grow our business with ease as these grow rooms can be expanded to meet our needs in a short amount of time. Reducing the down time required for assembly means we can get back to cultivating much faster. Our cultivation facility will also utilize a vertical growing allowing us to make better use of our limited space. Stackable grow racks will allow us to use the square footage in our facility in a more efficient manner by increasing our canopy space without increasing our footprint. These growing racks allows us to easily move the entire row or multiple rows of vertical growing racks making it easier to work. Automated climate control systems will monitor the environment inside of the grow rooms to ensure that temperature and humidity levels are within the optimum range to promote healthy plant growth. Automated irrigation and fertigation systems will automatically provide water and nutrients to the plants. Hours of operation opening/closing procedure As an indoor cultivator, we will be able to operate 24 hours a day. During the daylight hours between 7 am-6 pm we will have the majority of staff on hand. Beginning at 7am, the onsite manager or designated employee will enter the building and check in with security. This person will then give the security officer the key to open the lock box containing the magnetic key access cards. Magnetic key access cards are used to gain entry into areas containing cannabis plants, cannabis flowers or cannabis organic waste. As staff arrive they will be required to check in with security to receive their magnetic key card. Once inside the building they will enter into the warehouse area and begin turning on the lights and disarm the alarm system for the warehouse. The Security officer and the designated employee/manager will conduct a security check of the interior of the premises to ensure that all doors and access points are still secure. Once it is clear, growers and horticulturists will begin their daily routine of tending to the plants as needed throughout the day. Staff will end their day around 5 pm. As they leave for the day they will be required to check in with security and return the magnetic key access card. Once all of the employees have gone home for the day, the security officer and a manager/designated employee will conduct a security check of the exterior Hmong Cannabis Cultivators of Central California 8 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. of the warehouse to ensure that the building is intact and that there has not been any tampering with any access points that leads to the interior of the warehouse. Once the check of the exterior is complete, the security officer and the manager/employee will return to the warehouse and conduct a final security check of the interior of the warehouse to ensure that all doors and access points are properly secured. All flower rooms, drying/curing rooms and storage rooms containing immature cannabis plants, cannabis flowers and cannabis organic waste will be checked to ensure they are properly secured. The security officer and the manager/employee will then exit the warehouse area, turn off the lights and arm the alarm system. In the evening and into the late night hours there will only be minimal security staff on hand. The security officer will conduct hourly checks of the exterior areas of the building to ensure that all access points are secure. Security officers will have access to a computer system to monitor the cultivation rooms environmental control systems to ensure they are operating at optimal levels for the cannabis plants to grow. Daily operations Daily operations for cultivation include watering and fertigation, low stress training for cannabis plants to promote healthy growth. Cannabis plants will also be trimmed occasionally for maintaining purposes. Other aspects of the daily operations include creating clones from mother plants, potting them and placing them into incubator pods. Cannabis plants that have entered the flowering stage will be taken to flowering rooms and transferred into flower pots. Mature flowers that are harvested would be taken to drying rooms to be hanged for drying. Cannabis flowers that have been dried will be taken to a designated work area to be trimmed and groomed. After trimming they will be placed into curing rooms to begin the curing process. Flowers that are cured and ready to be packaged will be taken to the designated work area and weighed. Once weighed, they will be packaged, logged into inventory and placed into storage to await delivery to our distributor or manufacture. Hmong Cannabis Cultivators of Central California 9 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Milestones & Metrics Milestones Table Milestone Due Date Details Review Lease January 25, 2021 Progress review March 01, 2021 Owners and key staff Review construction plans April 01, 2021 Obtain Equipment Estimate April 16, 2021 Finalize construction plans April 23, 2021 Finalize equipment invoice May 07, 2021 Review company sales stratagey May 24, 2021 Purchase equipment June 07, 2021 Begin construction July 05, 2021 Install equipment August 20, 2021 Initial compliance review city September 06, 2021 Initial Compliance review State September 20, 2021 Final Compliance Review City October 04, 2021 Final Compliance Review State October 18, 2021 Begin Operations October 25, 2021 Hmong Cannabis Cultivators of Central California 10 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Key metrics By keeping track of the growth of the plants and how well they are doing will give us an idea of how well we are doing. If we have any deficiencies in our cultivation methods it will be revealed in the early stages of plant growth and will allow us to adjust our strategy accordingly. Whether it be a change in the type of fertilizer or a change in the environmental conditions. Maximizing our yield will ultimately increase profits, but producing a high quality product is our goal. Hmong Cannabis Cultivators of Central California 11 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Company Overview Ownership & Structure Hmong Cannabis Cultivators of Central California is a General Partnership consisting of two equity owners. Carole Cha is the majority equity owner with 51% of the company and Jenny Vang is the other equity owner with 49%. There are no outside investors at this point in time but that may change in the future as we grow the business and expand. Company history Hmong Cannabis Cultivators of Central California is a startup company but our vision has been around since the adoption of the Control, Regulate and Tax Adult Use of Marijuana Act. Since its adoption there have been lots of discussion among our family and friends as to how we would be able to set up our own legal cannabis business. After nearly 4 years of planning and discussion, we now have an opportunity to make that vision a reality. And in early November 2020, our company was born. Team Management team Our team currently consists of 3 people. Jenny Vang will be directly in charge of day to day operations such as purchasing equipment and supplies, managing daily cultivation tasks that need to be completed. Ensuring our employees are productive and meeting work related deadlines. Our second team member is Carole Cha. She will be directly responsible for sales and distribution to our distributors, remediation of cannabis flowers that do not pass testing. Carole is currently an employee with Amazon and is currently in their distribution warehouse. Our last team member is Peter Lee, he will be directly responsible for the companies over all operations. Managing everything from cultivation to distribution. Implementing our companies standard operating procedures and ensuring that we are compliant with Hmong Cannabis Cultivators of Central California 12 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. all state and local regulations regarding the cultivation of cannabis. Integrating the Track and Trace system into our computer systems to track cannabis inventory. Advisors In this digital age, information is just a click away. We plan on using that to our full advantage as we navigate through the legalized cannabis industry. With a whole host of digital resources at our disposal on the web, and many others in the industry that we could connect with with ease, it will make this journey a little less burdensome. We also would like to contract with specialists associated in regards to cultivation and cloning. We have reached out to a number of Cultivation Specialists including NorCal Cannabis Consultants and are looking forward to working with them and others as we build our company. Hmong Cannabis Cultivators of Central California 13 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Financial Plan Hmong Cannabis Cultivators of Central California Community Benefits and Investment Plan Neighborhood Compatibility Plan As a Company we realize that once we begin operations, we will become a member of the surrounding neighborhood and community. As such, we want to become a valuable and productive member within the City of Fresno. Safety for our employees and the surrounding community is of utmost importance to our Company. With the presence of our facility, and implementation of our business plans, we believe we will be compatible with the neighborhood and will help reduce crime in the community. Pedestrian Traffic/Vehicle Traffic Our security team will manage the sidewalk and parking areas of the property. The security team will provide a highly visible presence and will be a deterrent to potential criminal activity by ensuring only those visiting the facility for legitimate business purposes are allowed entry. Our security team will be vigilant to suspicious activity on the exterior of the premises. Litter Cleanliness is also managed constantly with checks throughout the business day by company staff. All trash and litter found on the property will be collected and placed into receptacles for disposal. Noise Management Our Company will use best efforts to avoid any noise pollution from the facility and immediate surrounding areas. We will implement strict rules for the staff and authorized visitors that are entering or departing our facility. These rules include, but are not limited to: • Restrict the volume of car stereos and/or portable sound systems while visiting the premises. • Limiting the noise of any in-house background music that would play during business hours only. • Warnings for unnecessary honking, tire screeching, yelling or any other noise deemed disruptive, unnecessary or a nuisance. Neighborhood Compatibility The City of Fresno is understandably concerned about the impact of licensed facilities within its neighborhoods. Our business will greatly support the community and the city in our mutual efforts to ensure safety and security within the neighborhood we operate. We will provide an appealing addition to Fresno by maintaining excellent relationships within the community and organize functions to minimize impacts on the neighborhood. Our team will reach out to neighboring businesses and establish great rapport with them. We will utilize local and neighboring business for our business needs whenever possible. Operational Compatibility Our team is focused on ensuring that our facility will not be a nuisance to the neighbors or negatively impact the neighborhood. We will not allow any loitering. We will also adhere strictly to our hours of operation in compliance with all laws, rules, and regulations. Odor Mitigation Our grow rooms will be sealed environments but there will be times when these sealed rooms will be accessed by staff to perform their duties allowing for odors to escape. Therefore, all spaces within our facility that contain cannabis flowers will be equipped with carbon scrubbing filtration systems. These filters are highly effective at eliminating odor that could be caused from the permeation of cannabis flowers. The filters will include a powerful fan that will pull the air in the room towards the filter, pulling it through carbon (a known odor eliminator), and then reintroduced back into the room (scrubbing). All staff will be trained in the use of these carbon filtration systems and will be expected to always maintain them. Staff will be trained on how to identify if a carbon filtration system is malfunctioning and needs service or replacement. Carbon filters will be checked on a weekly basis by staff and logged in the inspection log. Carbon filters will be replaced as needed to insure proper odor mitigation. Waste Management State law considers cannabis waste a type of organic waste, and haulers can transport and recycle it like other organic waste. Therefore, we will either compost on-site and place them in a secure container accessed only by employees, self-haul to a facility that recycles organic waste, or have it picked up by a hauler that recycles organic waste. 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 January 27, 2021 Please reply to: Marisela Martínez (559) 621-8038 Peter Lee Hmong Cannabis Cultivators of Central California Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P21-00540 REQUESTING INFORMATION REGARDING COMMERCIAL CANNABIS USES (CULTIVATION) FOR PROPERTY LOCATED AT 2883 EAST DOROTHY AVENUE (APN 328-200- 85S) Thank you for your inquiry regarding the allowance of commercial cannabis uses. The requested information about a cannabis business for cultivation 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 commercial cannabis business on the subject property conveys the following: 1. All cannabis cultivators, distributors, or manufacturers must be located on property within the Cannabis Innovation Zone, inside a Cannabis Innovation Hub, or within one-half (½) mile of State Route 99 between Shaw Avenue and Clinton Avenue, one (1) mile of State Route 99 north of Shaw Avenue, or south of Clinton Avenue, or within one (1) mile of State Route 180 west of State Route 99, must be zoned IL (Light Industrial) or IH (Heavy Industrial), and must meet all of the requirements for development in these zones. If not located within the Cannabis Innovation Zone, any building in which a cultivator, distributor, or manufacturer is located shall be no closer than 1,000 feet from any property boundary containing any of the following: (a) Any residentially zoned parcel in the city, including any legal non-conforming residential uses as of the date a complete commercial cannabis business permit application is submitted; (b) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12); (c) 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; or, (d) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted. Zoning Inquiry P21-00540 2883 East Dorothy Avenue Page 2 January 27, 2021 The subject property located at 2883 East Dorothy Avenue is a vacant lot and is located within ½ mile of State Route 99 between East Jensen and East Dorothy Avenues, is zoned IH, which is one of the allowable zone districts for commercial cannabis businesses, and is not located within 1,000 feet of the aforementioned sensitive uses. Development standards of the IH zone district are available in Sections 15-1303, 15- 1304, and 15-1305 of the FMC. The subject location meets the location restriction requirements, per Section 15-2739.C.1.b of the FMC, for a commercial cannabis business. 2. Prior to commencing operations, a commercial cannabis business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15-2739.N of the FMC. 3. There shall be permitted eight cultivators, distributors, or manufacturers located within the Cannabis Innovation Zone, and there shall be permitted eight cultivators, distributors, or manufacturers located inside a Cannabis Innovation Hub or within ½ mile of State Route 99 between Shaw Avenue and Clinton Avenue, one mile of State Route 99 north of Shaw Avenue or south of Clinton Avenue, or within one mile of State Route 180 west of State Route 99. Currently, there are zero cultivators, distributors, or manufacturers located in the City of Fresno. This location requirement is satisfied for a commercial cannabis 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 commercial cannabis businesses, including but not limited to, application requirements, façade design, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8038 or at Marisela.Martinez@fresno.gov. Cordially, Marisela Martínez, Planner II Development Services Division Planning and Development Department Hmong Cannabis Cultivators of Central California 6.1 Description of Property The property we intend to lease for the purpose of cannabis cultivation is located at 2883 E. Dorothy Ave. Fresno Ca. 93706. The property will be a 25000 Square Foot warehouse with offices, bathrooms and employee breakrooms. The property is new construction and is scheduled to be complete late summer 2021. Location: On Dorothy Ave between East and Cherry Ave Construction: Steel and Stucco Zoning: Heavy Industrial Property Highlights: ½ mile from freeway 99, energy efficient LED lighting, drought tolerant landscaping, fenced yard, quality new construction, office space designed to fit our operation. Hmong Cannabis Cultivators of Central California Social Policy & Local Equity Program We are committed to paying our employees a living wage. Starting pay for Trimmers/Post harvesters will start at an hour. Pay for Grower/Horticulturist will begin at an hour. Employees will be eligible for annual bonuses and base pay increases as we expand our operations. Hourly pay rates for employees will be competitive for the Fresno area. Our employees will also be able to participate in group health care plans that will include health insurance, vision and dental benefits, once we have enough employees and can negotiate a group policy plan for the company. We are also very committed to our employees continued education and will make every effort to aid them as they pursue higher education directly related to the cannabis industry. We will provide for additional pay increases to their base salaries in order to retain them as employees. Pay increases to their base salaries will be based on their highest level of education obtained and will be reflective of their peers in the industry. We would also give hiring preference to potential candidates who apply for a position within our company who meet the following criteria. (i)Annual family income below 80% AMI. (ii) Convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current State law. (iii) Lived in a low to moderate income census tract in the city for a minimum of three (3) years;(iv) Veteran. (v)Former foster home youth who was in foster care as a minor. (vi)Unemployed. (vii)Receiving public assistance. Hmong Cannabis Cultivators of Central California is a small startup company founded by local Hmong residents in the Fresno/Clovis area. Our company will be managed by the founders of the company, Carole Cha, Jenny Vang and Peter Lee. We currently do not have any employees, only the company founders. Carole Cha is currently the Director of sales. She is solely responsible for all sales to our distributors and ensuring that we have adequate cannabis flowers for our distributors. Jenny Vang is Director of Cultivation Operations and will oversee the cultivation of cannabis at all stages of development through harvest. Peter Lee is Director of Operations; he is responsible for ensuring that we are fully compliant with all state and local rules and regulations regarding commercial cultivation. He will also be responsible for implementing company policies and procedures and ensuring that all employees are in compliance with state laws while performing their duties. He will also be responsible for integrating the State of California’s Track and Trace system with our computers and ensure that all employees are properly trained in its use. We plan to hire an additional 4 employees. Two Growers/Horticulturists, their duties will include maintaining the cannabis plants through their life cycle. We will also hire 2 general labor employees to assist with daily routine tasks that need to be completed through out the day. As our company grows, we will add additional positions as needed. All of our employees will be residents of Fresno and the surrounding area.