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Home My WebLink AboutC-22-2 Central Valley Herbery LLC combinedBusiness Name: Central Valley Herbery LLC Application #: C-22-2 CANNABIS BUSINESS PERMIT APPLICATION REVIEW - MICROBUSINESS 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 0 Did not include resume nor follow Appendix A of application procedures. Resumes Provided in 2-page Format Score 2 2 0 Education: (select highest academic level among ownership team, cannabis specific education separately) Cannabis specific education/training (accredited)2 2 0 Did not include resume. High School Degree Reported Score 4 4 0 Bachelor's Degree Reported Score 6 6 0 Master's Degree or Higher Reported Score 8 8 0 Experience: (among ownership team, select one at highest level) Regulated Cannabis Microbusiness Ownership Experience CA 13 13 0 Regulated Cannabis Microbusiness Experience CA (management level or below) Score 10 10 0 Other Retail Business Experience (cannabis or cult., distribution, manufacturing) Reported, More than 5 years or 8 8 0 Other Retail Business Experience (cannabis or cult., distribution, manufacturing) Reported, Less than 5 Years Score 5 5 0 1.1 Sub-Total:30 0 Construction Cost Estimate: Construction Cost Estimate Provided Score 8 8 6 4 4 Total included but not detailed Construction Contingency Factor Included Score 6 6 0 Not described All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified Score 6 6 4 2 2 Summary only, not detailed Reference Data Provided for Unit Cost Factors Score 5 5 3 1 0 Not described Operation and Maintenance Cost Estimates: Operation and Maintenance Cost Estimate Provided Score 8 8 6 4 4 Summary only, not detailed All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified Score 6 6 4 2 2 Summary only, not detailed Annual Cost Escalators for Operating Costs Provided Score 6 6 4 2 0 only first year costs detailed Reference Data Provided for Unit Cost Factors Score 5 5 3 1 0 only first year costs detailed 1.2 Sub-Total:50 12 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 Listed in owner's personal name and alternative business names. Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs Score 15 15 0 Pro forma was not included. Certified Audited Financial Report Provided for one or more Owners Score 5 5 0 Score one of the following for a maximum 20 points: 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 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 - 1.3 Sub-Total:50 15 Three Years of Data Provided Score 10 10 8 6 10 pg 25 Total Gross Revenue Estimates Provided 3 3 3 Total Gross Revenue by Product Type (flower and manufactured) Identified 3 3 0 Only total, not broken down Total Personnel Costs Provided 5 5 4 3 3 Provided sub-totals but no detail Total Property Rental or Purchase Costs Provided 2 2 2 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) 1.4 Pro forma for at least three years of operation. Criteria Narrative Criteria Narrative Criteria Narrative Total Utilities Costs Provided 2 2 2 Total Cannabis Product Purchase Expense Provided 2 2 2 All Contract Services Identified 2 2 2 Annual Net Revenue Identified 3 2 2 Annual Cost Escalators Identified 4 4 3 2 2 Cost escalation shown, not described Annual Estimated Sales Tax Payments to State Provided 2 2 2 Annual Estimated Sale Tax Payments to City of Fresno Provided 5 2 0 Not shown in pro forma/P&L Annual Business Tax License and Cannabis Permit Fee Provided 2 2 2 Dollar amount not accurate Annual Net Income Provided 5 5 0 Not shown in pro forma/P&L 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 32 Hours of Operation Provided Score 5 5 0 not described Hours of Operation Provided for all 7 days of the week Score 3 3 0 not described Hours of Operation Provided for Holidays Score 2 2 0 not described Opening and Closing Procedures Provided Score 10 10 8 6 0 not described 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 0 1.6 Fully describe hours of operation and opening/closing procedures. 10 10 8 6 0 not described 1.7 Please state the State of California cannabis license type 5 5 0 not described 1.7 Fully describe the day-to-day operations if you are applying for DISTRIBUTION i. Identify the number of delivery drivers, hours of delivery and vehicles to be used.5 5 0 not described ii. Describe the transportation security procedures.10 10 8 6 6 some description of vehicle security but not of driver security procedures iii. Describe the how inventory will be received, processed, stored, and secured in the permitted premises.5 5 4 3 0 not described iv. Describe the quality control procedures designed to ensure all cannabis is properly packaged, labeled and tested.5 5 4 3 0 not described 1.8 Fully describe the day-to-day operations for MANUFACTURING i. Identify all cannabis products manufactured within the permitted premises.5 5 0 not described ii. Describe quality control procedures.5 5 4 3 0 not described iii. Describe inventory control procedures. 5 5 4 3 0 not described iv. Describe the extraction process, equipment and room in which extractions will be conducted.5 5 4 3 4 Describes extraction but not location v. Provide detail as to whether the extraction equipment has been reviewed and certified by a Professional Engineer or Certified Industrial Hygienist. 5 5 0 not described vi. Describe the sanitation procedures.5 5 4 3 0 not described 1.9 Fully describe the day-to-day operations for CULTIVATION i. Identify location and procedures for receiving deliveries of seedlings and immature plants.5 5 4 3 0 not described ii.Describe the planned square footage/acreage of the cultivation. (10,000 sq ft or less is required for microbusiness. If not compliant score as zero)5 5 8,860 sq feet - canopy pg 4 iii. The estimated number of pounds produced per harvest, and number of anticipated harvests per year. 5 5 0 Describes phases of production only. iv. Describe whether the cultivation operation will use natural light, artificial light, or mixed light. 5 5 5 Descirbes artificial light but also describes greenhouse on pg. 13. Greenhouse is not allowable. v. Identify how cultivation waste will be rendered unusable and unrecognizable, and how it will be stored and disposed of. 5 5 4 3 0 not described vi. Describe the use of any gases used in the cultivation operation, such as CO2, including storage, location, and monitoring systems for employee safety. (if not using gases application should specify)5 5 4 3 5 1.6 Sub-Total:100 20 Section 1 Total:300 79 SECTION 2: SOCIAL POLICY AND LOCAL ENTERPRISE 400 Points Possible for Section 2 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. Microbusinesses must include responses for distribution, manufacturing and cultivation (100 points possible) 1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible) Criteria Narrative Criteria Narrative Criteria Narrative Description of Commitment to pay a Living Wage provided Score 10 10 8 6 10 Definition of Living Wage Provided Score 5 5 4 3 0 Does not define Living Wage Defined as Greater than Minimum Wage Score 5 5 5 minimum pay 2.1 Sub-Total:20 15 Wages and Salary CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 5 CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5 0 Health Care Benefits CCB Offers Medical Coverage to All Employees Score 5 5 5 CCB Offers Dental Coverage to All Employees Score 5 5 0 Does not describe CCB Offers Vision Coverage to All Employees Score 5 5 0 Does not describe CCB Offers Health Reimbursement Account for Qualified Medical Expenses Score 1 1 0 Does not describe Employee Pays $0 for Employee Medical Premium Score 3 3 0 Does not describe premium, just says "employer paid" Employee Pays $0 for Employee Dental Premium Score 3 3 0 Does not describe Employee Pays $0 for Employee Vision Premium Score 3 3 0 Does not describe Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision) Score 3 3 0 Does not describe Leave Benefits Number of Paid Vacation/PTO Days Per Year (10+ days excep; 6-9 days Good; 3-5 days Acceptable)5 5 4 3 0 Does not describe Number of Paid Holidays Per Year (10 or more paid holidays excep; 4-10 Good; 1-3 Acceptable)5 5 4 3 0 Does not describe Number of days paid time off for Sick/Medical time (7+ days Exceptional, 4-6 days Good, 3 days acceptable (8 hour day))5 5 4 3 3 will meet State requirement. Retirement Offers employee retirement plan 10 10 10 annual revenue sharing plan Offers company match for employee retirement plan 10 10 0 2.2 Sub-Total:73 23 CCB Provides Tuition Reimbursement for Certificates Score 3 3 0 Does not describe CCB Provides Tuition Reimbursement for associate degrees Score 3 3 0 Does not describe CCB Provides Tuition Reimbursement for bachelor's degrees Score 3 3 0 Does not describe CCB Provides Tuition Reimbursement for master's degrees Score 3 3 0 Does not describe CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations Training Score 3 3 0 Does not describe CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 10 10 8 6 6 States that they will provide but no description of topics or frequency other than CAL-OSHA 2.3 Sub-Total:25 6 General Recruitment Plan Provided Score 10 10 8 6 6 Offered a couple strategies but not a "plan" Social Policy Recruitment Plan Provided Score 10 10 8 6 6 Offered a couple strategies but not a "plan" Recruitment Plan Includes Demographic Data for District, City or County Score 10 10 8 6 0 Does not describe Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners Score 10 10 8 6 6 Names two organizations Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups Score 10 10 8 6 0 Does not describe 2.4 Sub-Total:50 18 Owners Number of Owners Number of Owners that live within the City of Fresno 2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. (20 points possible) Scoring Guidance: if all employees above $15.00 per hour 15 points. More for higher wage structures. Dock points for lower wage rates. https://livingwage.mit.edu/counties/06019 2.2 Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. (50 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) IF full points achieved for Ownership category, don't score managers. Section is total of 80 points possible. Criteria Narrative Criteria Narrative Criteria Narrative Criteria Narrative Data, non-scored. Write response in Evaluation Notes Number of Owners that live in the County of Fresno Number of Owners that Own a Business in the City of Fresno 51%+ ownership interest percent of the Owners live or own a business in the City Score 80 80 0 51%+ ownership interest percent of the Owners live or own a business in the County Score 40 40 0 Less than 50 percent of the Owners live or own a business in the Cityf no owners are local, score zero)20 20 0 Managers Number of Managers (salaried, non-owners) Number of Managers that live in the City of Fresno Number of Managers that Own a Business in the City of Fresno 100 percent of the Managers live or own a business in the City Score 20 20 - 75 to 99 percent of the Managers live or own a business in the City Score 15 15 - 50 to 74 percent of the Managers live or own a business in the City Score 10 10 - Less than 50 percent of the Managers live or own a business in the City Score 5 5 5 Stated general manager would be local "if feasible" 2.5 Sub-Total:80 5 Responsibilities Described for All Titles/Positions Score 20 20 15 10 15 Describes positions but not # of each to be hired 2.6 Sub-Total:20 15 Does CCB have more than five employees 10 10 10 CCB has signed a peace agreement Score 2 2 2 Will comply 2.7 Sub-Total:12 12 Commitment to Local Hire Provided 20 20 15 10 0 No specific committment 2.8 Sub-Total:20 0 CCB is willing to serve as Social Equity Business Incubator Score 100 100 80 60 0 No committent described Mentorship and Training Score Equipment Donation Score Shelf Space Score Legal Assistance Score 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 0 Section 2 Total:400 94 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 0 Does not describe. CCB will established a dedicated contact person to receive complaints Score 10 10 10 In section 3.2 CCB will establish a dedicated phone number to receive complaints Score 5 5 5 In section 3.2 CCB will establish a dedicated email address to receive complaints Score 5 5 5 In section 3.2 CCB will establish a response time standard for returning complaint calls and emails Score 5 5 0 Does not describe. Data to inform score on first line of this section. Write response in Evaluation Notes column. 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 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. Criteria Narrative Criteria Narrative Criteria Narrative Data, non-scored. Write response in Evaluation Notes column. column. Criteria Narrative 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) 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) CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation Score 10 10 0 Does not describe. Other measure unique to business (i.e. website complaint form)5 5 5 Only discusses air quality management 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 25 CCB will maintain a listserv of community residents to update and information residents of business operations. 10 10 0 Not described CCB will schedule or attend periodic community meetings (at least annually) to engage with residents about the CCB operation Score 10 10 0 Not described CCB will prepare a community outreach and engagement plan Score 50 50 40 30 0 Not described CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Not described CCB will hire residents from the community work at the CCB Score 20 20 0 Not described Scoring Guidance full points for detailed proactive plan. Dock points for leaving out aspect, vagueness, or reactive plans. 3.2 Sub-Total:100 0 CCB has identified sensitive receptors to nuisance odors in vicinity of business operations Score 5 5 0 Not described CCB has prepared a nuisance odor control plan Score 10 10 8 6 6 Describes hiring engineers & HVAC company only Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary Score 5 5 0 Not described Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting the premise boundary Score 5 5 0 Not described CCB has established an odor reporting system Score 5 5 0 Not described CCB will install a nuisance odor monitoring system Score 10 10 10 Refers to system but does not detail 3.3 Sub-Total:40 16 CCB has identified the potential sources of nuisance odors for the business operation Score 10 10 8 6 6 Describes plants and location but does not detail Scoring Guidance full points for detailed proactive plan. Dock points for vagueness or reactive plans. 3.4 Sub-Total:10 6 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 0 Not described Odor control measures are identified for different nuisance odor sources Score 10 10 10 3.5 Sub-Total:30 20 Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures Score 10 10 10 Refers to maintenance but does not detail Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting.10 10 10 Refers to training but does not detail 3.6 Sub-Total:20 20 CCB has identified the sources of waste generated by the business operation Score 10 10 10 3.3 Describe odor mitigation practices.(40 points possible) 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 Criteria Narrative Criteria Narrative 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) Criteria Narrative 3.7 Describe the waste management plan. (50 points possible) CCB has prepared a source-separation plan to segregate different sources of waste generated by business operations Score 10 10 0 Does not describe 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 0 Does not describe The source-separation plan describes specific measures to control the collection and disposal cannabis waste Score 10 10 0 Does not describe The name of licensed cannabis disposal company provided Score 10 10 0 Does not name vendor 3.7 Sub-Total:50 10 Section 3 Total:300 97 SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant Score 10 10 0 No consultant named Safey Plan Assessed by Consultant Score (if prepared by, also give points for assessed by)10 10 0 No consultant named Safety Plan Prepared for CCB Address (specific proposed location) Score 10 10 5 Site specific address included under Security plan, not Safety plan Safety Plan includes Site Plan of Premise Score 10 10 10 Included under Locations; not Safety Plan Safety Plan includes Building Layout Plan Score 10 10 10 Included under Locations; not Safety Plan 4.1 Sub-Total:50 25 Written Accident/Incident Procedure Provided Score 20 20 15 10 5 Generation of incident reports are mentioned in the Security plan; no detail provided Procedures Address Multiple Accident/Incident Scenarios Score 10 10 8 6 2 Procedures only address generation of incident reports in the Security plan; no details provided Total Number of Scenarios Described Score arios listed under Incident Reports in Security plan as generation of incident reports only Active Shooter Incident Described Score 10 10 0 Not discussed in either Safety or Security plan Robbery Incident Described Score 10 10 0 Not discussed in either Safety of Security plan 4.2 Sub-Total:50 7 Evacuation Plan Provided Score 20 20 15 10 0 No evacuation plan provided showing evacuation routes Adequate Number of Evacuation Routes Identified Score 20 20 15 10 0 No evacuation plan provided showing evacutation routes Evacuation Route Distance to Public Right of Way Score 10 10 8 6 0 o evacuation plan provided showing evacuation routes 4.3 Sub-Total:50 0 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 5 Fire Extinguisher training and use discussed; locations of portable fire extinguishers not given and no plan showing locations. Adequate Number of Fire Extinguisher Locations Identified Score 10 10 8 6 0 No plan showing fire extinguisher locations. 4.4 Sub-Total:50 35 Written Procedure for Fire Emergencies Provided Score 20 20 15 10 20 Written Procedure for Medical Emergencies Provided Score 20 20 15 10 5 A local fire safety protection firm to provide first aid and AED defbrillation on-site for personnel Cardiac Arrest Medical Emergency Described Score 20 20 15 10 5 A local fire safety protection firm to provide first aid and AED defbrillation on-site for personnel Gunshot Wound Medical Emergency Described Score 20 20 15 10 5 A local fire safety protection firm to provide first aid and AED defbrillation on-site for personnel Other Medical Emergency Conditions Described Score 20 20 15 10 5 A local fire safety protection firm to provide first aid and AED defbrillation on-site for personnel 4.5 Sub-Total:100 40 Section 4 Total:300 107 SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 Security Plan Prepared by Consultant Score 10 10 0 Plan does not mention or appear to be prepared by consultant Security Plan Assessed by Consultant(if prepared by, also give points for assessed by) Score 10 10 0 Not mentioned Data-write response in Evaluation Notes Column Criteria Narrative Criteria Narrative Criteria Narrative 4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible) 4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible) 5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible) 4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible) 4.3 Describe evacuation routes. (50 points possible) 4.2 Describe accident and incident reporting procedures. (50 points possible) Criteria Narrative Criteria Narrative Criteria Narrative 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 of premise provided Security Plan includes Building Layout Plan Score 10 10 0 No building layout plan provided 5.1 Sub-Total:50 10 Premises (Security) Diagram Provided Score 20 20 15 10 0 Not provided Diagram is drawn to correct scale Score 5 5 0 Not provided Diagram provides required details for premise Score 5 5 0 Not provided Diagram shows the location of all security cameras Score 5 5 0 Not provided Descriptions of activities to be conducted in each area of the premise 5 5 0 Not provided Limited-Access Areas Clearly Marked Score 5 5 0 Not provided Number and Location of All Security Cameras Identified Score 5 5 0 Not provided 5.2 Sub-Total:50 0 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 0 Not Listed All Points of Entry to be Alarmed Identified 5 5 0 Not Listed Type of Alarm Identified (motion, infrared, glass break, etc.) Score 10 10 5 Some points mentioned but not glass break or others Backup Power Supply Identified Score 10 10 0 Not Listed 5.3 Sub-Total:50 25 Written Cash-Handling Procedure Provided Score 30 30 20 15 0 No cash handling procedured mentioned Dual-Custody is Practiced for all cash handling Score 10 10 0 No cash handling procedured mentioned Video Surveillance Used to Monitor All Cash Handling Score 20 20 0 No cash handling procedured mentioned Armored Car Service Used for Bank Deposits Score 10 10 0 No cash handling procedured mentioned All Cash Deposited weekly with Bank Score 10 10 0 No cash handling procedured mentioned Onsite Vault Provided to Secure Cash Prior to Bank Deposit Score 20 20 0 No cash handling procedured mentioned 5.4 Sub-Total:100 0 CCB will use onsite security guards Score 10 10 10 All onsite guards will be licensed and bonded Score 10 10 5 plan states licensed but no mention of bonded All onsite security guards will be licensed to carry firearms Score 10 10 5 Plan states armed and unarmed but does not provide specifics at to how many and what times 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 40 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 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) 5.5 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. 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 Criteria Narrative 5.5.3 Locations at which they will be positioned. 5.5.4 Guards' roles and responsibilities. 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. Section 5 Total:300 75 Section 1: Business Plan Total Points:300 79 Section 2: Social Policy & Local Enterprise Total Points:400 94 Section 3: Neighborhood Compatibility Total Points:300 97 Section 4: Safety Plan Total Points:300 107 Section 5: Security Plan Total Points:300 75 Total Points Achieved:1600 452 28.25% TOTAL SCORE Criteria Narrative City of Fresno Commercial Cannabis Business Permit Application EvaluationBusiness Name:Central Valley Herbery LLC Application # C-22-2 Score 1 Score 2 Score 3 Average% Phase III Points Possible Phase III Points Actual Phase II Points Possible Phase II Points Actual Total Score Section 1: Business Plan 72%60%70%67.33%300 202.00 300.00 79 281 Section 2: Social Policy 72%60%72%68.00%500 340.00 400.00 94 434 Section 3: Neighborhood 80%65%73%72.67%300 218.00 300.00 97 315 Section 4: Safety 72%60%70%67.33%300 202.00 300.00 107 309 Section 5: Security 72%60%80%70.67%300 212.00 300.00 75 287 Section 6: Location 75%70%80%75.00%200 150.00 -150.00 Section 7: Community Benefits 70%60%89%73.00%500 365.00 -365.00 Total Score (points)2400 1689 1600.00 452 2141 Total %53.53% Central Valley Herbery LLC / BUSINESS PLAN 4 Company Summary Central Valley Herbery (“CVH”) will have the ability to vegetate up to 300 plants and flowers concurrently, will grow up to 7 different strains of cannabis. CVH is also dedicated to producing cannabis concentrates/infused products to service the exploding extracts industry. CVH, through its affiliate, has acquired a properly zoned warehouse facility consisting of 16,875 square feet. CVH intends to convert approximately 8,860 square feet of canopied grow rooms. CVH is organized as a Limited Liability Company (LLC) and will be led by Kevin Lu who will serve as President and Managing-Member and Alan Wu as Chief Operating Officer. Messrs. Lu and Wu also co-own and operate United Coach Tours, Inc., South City Auto Center, Inc., and United Coach, LLC. The latter, United Coach, LLC, acquired real commercial property at 920 S. Topeka Avenue, Fresno, California, on August 13, 2021, the anticipated location of CVH’s operations. CVH is a company that will be built on a solid foundation. From our inception, we have decided to recruit only qualified people to man various job positions in our company. CVH will seek to leverage our expertise in business to build our business brand as a premiere recreational cannabis cultivator, manufacturer and distributor microbusiness within the United States. Main Goals ✓ Own and operate cannabis cultivation facilities in the state of California. ✓ To produce high-grade cannabis bulk oil and build a recognizable brand. ✓ To produce high-quality infused products, including edibles and topicals. ✓ To be fully compliant with all state and local municipalities. ✓ To become an industry-leader in the blossoming extraction industry. Mission ✓ To become the premier provider of high-quality cannabis and related products. We will serve the needs of cannabis consumers and make more quality products more accessible. Objectives Year 1: Securing the license to start cultivation in state California. Year 3: Brand and distribute our product line throughout California. Year 5: The CVH brand is now a trusted and consistent brand. www.centralvalleyherbery.com 5 Market Opportunities According to the report by Arcview Market Research and BDS Analytics: “The Road Map to a $57 Billion Worldwide Market"1, spending on legal cannabis worldwide is expected to hit $57 billion by 2027. The recreational cannabis market will cover about 67% of the spending while medical cannabis will take up the remaining 33%. The North America legal cannabis market amounted to over $20 billion in 2020, growing by 45 percent on the year. The largest market was the United States, which totaled over $17.5 billion. It was followed by Canada with about $2.7 billion. Analysts predict the overall cannabis market for legal adult-use and medical sales in North America to reach $23.8 billion in 2021 with the compound annual growth rate (CAGR) to almost 20%. With the adoption of recent initiatives, 38% of the population now lives in jurisdictions that have legalized recreational cannabis, and 76% of all states have approved cannabis for medical use. In 2015 Gov. Jerry Brown signed three bills that toughened regulations for medical cannabis businesses and sought standards for documentation and testing. On November 8, 2016, California voters have approved cannabis for recreational use. On June 27, 2017, the legislature passed, and Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which creates the general framework for the regulation of both commercial medicinal and adult-use (recreational) cannabis. On January 1, 2018, the state began issuing licenses for commercial cannabis activity. Additionally, on January 1, 2018, two new cannabis taxes went into efect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent excise tax on the purchase of cannabis and cannabis products. As of January 2021, the state’s three licensing authorities have issued about 10,0002 commercial cannabis licenses to cannabis businesses throughout the state of California. In 2020, the combined year-to-date sales are estimated to hit $4.4 billion indicating almost 50% growth compared to 2019 and representing about 27 percent of U.S. sales. According to a study by 1 https://arcviewgroup.com/research/reports/ 2 https://cannabis.ca.gov/check_a_license/ 700 750 800 985 1,000 1,100 1,200 1,400 2,191 4,400 1 2 3 4 5 6 7 8 9 10 0 1,000 2,000 3,000 4,000 5,000 $ million Figure 1. Medical and recreational cannabis sales in top states, 2020 Central Valley Herbery LLC / BUSINESS PLAN 6 the University of California Agricultural Issues Center, California’s recreational cannabis market could be worth more than $5 billion. Start-up Summary The business will be fully funded with with an additional to follow in Quarter 2. Additionally, the subject property was acquired for on August 13, 2021. Together, the total capital investment is more than . www.centralvalleyherbery.com 7 Financial Summary CVH will fund its startup costs largely through personal savings/investments. From a total investment of , CVH is expected to generate nearly in gross revenues with net income of more than in Year 2, its first full year of operations. Revenues are expected to grow. After the first year of operations, it is expected that CVH will be able to trim expenses through realizing business efficiencies, gaining operational experience and industry knowledge. Direct and Indirect Social Impacts Company will create more than six new jobs in the first year with at least in direct local salaries and at least in indirect local salaries through the security provider. Company also intends 15% of EBIDTA will be allocated to the different community programs described in our Social Policy and Local Enterprise Plan. www.centralvalleyherbery.com 9 Marketing Plan Because cannabis remains prohibited under federal law, state governments and online advertising platforms are placing strict rules on how companies can market their products. Google, Facebook and Twitter all have advertising policies that restrict the promotion of the sale of cannabis. Google’s policy prohibits ads that promote “substances that alter mental state for the purpose of recreation.” Facebook restricts any “illegal, prescription, or recreational drugs.” And Twitter bans “illegal drugs” as well as substances that cause “legal highs.” Instagram and Facebook have decided to go a step further by removing pages of cannabis related businesses. The most effective strategies for legal marijuana companies are direct marketing at industry conferences and other events, building communities around marijuana -related concerns such as health and wellness. The marketing and sales strategy of CVH will be based on generating long-term personalized relationships with manufactures and dispensaries. Marketing and advertising campaign includes: - Business and industry associations - Business events and conferences: It also includes event sponsorships, health, or related industry events to gain brand exposure and bring the CVH name to the forefront of the community. - Brand development: It includes branded products such as shirts, hats, grinders, cases/containers, etc. will be offered through our online store. - Brochures: We will produce high-quality brochures that will be distributed to doctors who issue cannabis prescriptions, clinics and other licensed vendors. - Website: We will have a professionally-designed website integrated with a payment system. - Information kits for clients and medical/health practitioners: Information kits will include registration forms, brochures, and general information on the use of medical/recreational marijuana. They will also provide information on how to process orders. - Social Media: We will have a significant social media presence. Appropriate forums will be monitored daily, with dedicated staff resources to be active and knowledgeable participants. We will develop a social media content strategy which will include Twitter, Facebook, Instagram, LinkedIn and YouTube. Our staff will be trained in the legalities of promoting our products. - Guerrilla marketing: Implementing a guerrilla marketing division to focus on low-cost unconventional marketing tactics that yield maximum results. Table 2. Cannabis business directories WEEDMAP https://weedmaps.com/ Cannabis and hemp/CBD products and businesses finder. 15.83 million total visits each month LEAFLY https://www.leafly.com/ Services include cannabis and hemp/CBD finder, online store, branding, doctors’ portal. 16.29 million total visits each month https://www.cannasaver.com/ http://cannabiscouponcodes.com/ Websites for cannabis and related coupons. about 80 thousand visits each month Central Valley Herbery LLC / BUSINESS PLAN 10 Competition In every business there is competition, however, we believe we possess several strengths that will allow us to remain visible on CVH radar at all times. The cannabis industry is known to be highly competitive in the U.S and in most parts of the world. The industry is growing and there are alternative ways through which clients/patients can obtain their cannabis. There is alternative provide methods like mail-order firms, grocery chains, mass merchants and dollar stores; these are the real competitors in the industry. These competitors ensure that they do all that lies within their power to gain a favorable market share of the available market in any given region. In this industry, most of the competitive dynamics center around the quality of cannabis cultivated, the service offered, the location where the cultivation will be done. The branding of CVH plays a significant role. Even though competition is stiff especially from the big, well-backed enterprises, smaller enterprises can still get their fair share of the market if they stay true to the competitive dynamics. It is a fact that small cannabis cultivation operations will always struggle with larger based cannabis cultivation operations when it comes to pricing power and brand recognition, hence the reason why smaller based operations will always go out of their ways to deliver excellent client service. It is through top-notch client service that they can secure a fair share of the available market. Central Valley Herbery LLC / BUSINESS PLAN 12 The physical address of our cultivation and manufacturing facilities will be 920 S. Topeka Avenue, Fresno, CA 93721. Premises will be located in a 16,875-sq. ft building with adequate power to service both operations. The cultivation operation will take up 8,860 sq. ft and will be adequate to house and grow up to 1,000 plants. The manufacturing premises will take up 1,799 sq. ft and will include extraction equipment, vacuum ovens and packaging machines. This facility will offer a significant advantage in the development and manufacture of our flowers, compounds and edibles. Our cultivation & manufacturing area will include: • Vegetative Growth Rooms • Flowering Rooms • Drying & Trim Rooms • Curing Rooms • Extraction Rooms • Compounding Rooms • Cannabis Infused Production room • Packaging Rooms Cultivation Warehouse Design A. A warehouse environment provides with maximum control, and therefore the most reliable consistent cannabis crops can be produced in a properly designed warehouse grow room. B. Without natural light, warehouse grow rooms depend on intelligent grow lights which need to replicate the parts of the sunlight spectrum that the cannabis plants need at each stage of growth. Lighting is a key component in an integrated system. C. Air filtration and circulation systems are essential for controlling heat buildup and eliminating exhaust odors. It is critical that the air circulation in a cannabis warehouse is designed in conjunction with the grow lights because lighting systems emit large amounts of heat. D. There are various irrigation systems for growing cannabis appropriate for growing in a warehouse: including drip irrigation, hydroponic flood benches, or trough benches. E. The irrigation system should be designed in conjunction with a nutrient management system for maximizing the production yield of the cannabis plants. F. Environmental computer. The computer control systems for a cannabis warehouse control and monitor all the nutrients, lights, air circulation, and irrigation needs of the plants G. De-humidification to optimize growing environment. H. Computer controlled CO2 injection and monitoring. www.centralvalleyherbery.com 13 Greenhouse Design Greenhouses combine the latest technology in HVAC, light deprivation, environmental controls, irrigation, insect exclusion, benching systems, hybrid techniques, and much more to create a systematic and efficient growing approach: A. The biggest advantage Greenhouse Marijuana Growers have is the abundance of natural light coming into the greenhouse. B. While cannabis likes long daylight during the vegetative stage, a good blackout system is required for the best flowering production. C. Heating and Cooling Systems are an important component of the cannabis greenhouse. D. CO2 is essential for maximizing the quality and production of cannabis. E. Ventilation is essential as with all greenhouse crops, however cannabis legislation, and local municipality requirements may also impose strict requirements for eliminating exhaust odors. Our integrated growing solutions will include air filtration systems where required. F. A nutrient management system is essential for maximizing the production yield of the cannabis plants and ensuring consistent and reliable quality. G. The brains of the complete cannabis growing system whether a greenhouse production facility or a warehouse grow up is our environmental computer. The computer control systems for a cannabis greenhouse controls and monitor all the nutrients, lights, blackout, air circulation, CO2 and irrigation needs of the plants, it is designed to maintain the exact environment needed for as many different growing zones as you want and can handle different environments for propagation, cloning, flowering and for as many different varieties as you want to control. Company will use rolling benches / growing tables which are highly recommended for any commercial cannabis grow operation. They provide up to 50% more plant space by eliminating the need for a dedicated aisle. With a crop, as valuable as cannabis, this directly equates to much higher profits and maximum space efficiency. Main features: ▪ Aluminum extruded sides and ends ▪ Miter cut corners ▪ Hot dipped galvanized steel stands ▪ Aluminum cross members ▪ Snap together fittings ▪ Threaded rods for adjustment up to 12" ▪ Top quality plastic or aluminum flood trays ▪ 13 gauge expanded metal bench tops ▪ 2" diameter rolling tubes www.centralvalleyherbery.com 15 The system can process up to 31 pounds of decarboxylated cannabis per day and uses 3- phase 208v, 230v, 460v. Equipped with CO2 storage tank. Utilizing subcritical and supercritical CO2, systems offer high-capacity, high-production operations with fast, efficient extractions of botanical oils without thermal degradation. The APEKS Supercritical Production Series is equipped with the patent-pending Dual-Phase Pumping System which combines a liquid pump allowing for high CO2 flows at higher pressures with the Diaphragm Compressor Technology gas pump for energy-efficiency and cold separation. We have identified the most prominent manufacturer of CO2 extraction and intend to use the following equipment: APEKS Supercritical, The Transformer; Short Path Distillation Equipment; Bubble Magic Rosin Press; Rotavapor evaporator; Cole-Parmer recirculating chiller; vacuum pump. Main Features: ✓ Fully automated ✓ Closed-loop system recovers 95% of the CO2 ✓ Ideal for microbusiness production ✓ Energy-efficient with cold separation processing and less maintenance with Diaphragm Compressor Technology ✓ Versatile – runs subcritical and supercritical ✓ Dual-Phase Pumping System (liquid and gas) ✓ Multiple 3-phase power options ✓ Valveless Expansion Technology ✓ Quiet running operation Yields: We assume 12% yield for planning while much higher yields can be achieved. Central Valley Herbery LLC / BUSINESS PLAN 16 Post-Processing Short Path Wiped Film Distillation We will also use a High Production WFE system to get a pure oil. A rotating wiper system distributes the cannabis oil onto the inner wall of the short path evaporator, the evaporation process is sped up by the rotating wipers spreading the oil into a thin film layer so that the heat transfer and molecule transfer are optimized. The residence time is less than 10 seconds and the vapors are condensed onto the internal condenser. The short path distillation process is split into two passes – the first pass in the evaporator isolates the Terpenes from the cannabinoids and the second pass removes the lipids, impurities and solvents leaving you with an odorless high value clear distillate. The distillation process creates a distillate that can produce a fine oil used for vape cartridges, tinctures or edibles. The cannabis industry has advanced by leaps and bounds in recent years with new discoveries on the rise. There are lots of benefits to distillate which has skyrocketed its demand and led to price increases at the same time. Utilizing this WFE system offer high-capacity, high- production operations with fast, efficient molecule of botanical oils without thermal degradation. Main Features: • Continuous feed • Low processing temperatures • Ideal for production • Compact design • Multiple 3-phase power options • Cannabinoid Separation (THC/CBD) Concentrates and Infused Products CVH intends to offer shatter (G), pure oil(G) and cartridges (0.5G) CVH Cartridges include 500 milligrams co2 cannabis oil and they are compatible with any 510- thread battery and have been tested at 72%+ THC, making them the perfect choice for anybody who doesn’t want to sacrifice potency for convenience. All CVH cannabis products include Laboratory Test Results in their packaging. gram per unit Wax, Shatter, Rosin 1.00 Pure Oil 1.00 Pre-filled Cartridges 0.50 Our beverages, edibles and topicals manufacturing facilities will be located within processing room. Production Facilities: - Manufacturing rooms are entirely enclosed (i.e. walls, ceiling, and doors). - Walls, ceiling, and floor surfaces are smooth, durable, and easily cleanable. Figure 2. Cannabis extraction products production forecast, units www.centralvalleyherbery.com 17 - Fiberglass reinforced plastic or similar durable surfaces above the sinks and/or edible product prep table/counters. - Toilet room will be isolated from the manufacturing rooms and has hand sinks equipped with water control valves to prevent recontamination of clean, sanitized hands. There will be soap dispensers and paper towel dispensers or mechanical hand drying devices, mechanical ventilation and a door closer. - Edible product processing will also include packaging of exposed edible items into consumer sealed packages. Bottling operations will be conducted inside of the processing room. - Lighting will be protected for breakage, and adequate ventilation will be provided to maintain a suitable environment for edible product manufacture. Transportation 1. Cannabis items will be transferred only between licensed premises by a licensee or licensee representative. 2. An individual authorized to transport cannabis items will have a valid Driver’s License. 3. CVH intend to: • Keep marijuana items in transit shielded from public view; • Use a vehicle for transport that is: - Insured at or above the legal requirements in California; - Capable of securing (locking) the cannabis items during transportation; - Equipped with an alarm system; and - Capable of being temperature controlled if perishable marijuana items are being transported. • Use CTS, generate a printed transport manifest that accompanies every transport of cannabis items that contains the following information: - The name, contact information of a licensee representative, licensed premises address and license number of the licensee transporting the cannabis items; - The name, contact information of the licensee representative, licensed premises address, and license number of the licensee receiving the delivery; - Product name and quantities (by weight or unit) of each cannabis item contained in each transport, along with the UIDs for every item; - The date of transport and approximate time of departure; - Arrival date and estimated time of arrival; - Delivery vehicle make and model and license plate number; and - Name and signature of the licensee’s representative accompanying the transport. 4. Company will generate the manifest of this rule at least 24 hours in advance of initiating transportation. 5. All cannabis items will be packaged in shipping containers and labeled with a UID tag prior to transport. 6. Company will be able to provide a copy of the transport manifest to each licensed premise receiving the inventory described in the transport manifest. 7. Company will be able to provide a copy of the printed transport manifest and any printed receipts for marijuana items delivered to law enforcement officers or other representatives of a government agency if requested to do so while in transit. 8. CVH will contact the Commission immediately, or as soon as possible under the circumstances, if a vehicle transporting cannabis items is involved in any accident that involves product loss. Central Valley Herbery LLC / BUSINESS PLAN 18 9. Company will provide temperature control for perishable marijuana items during transport. 10. Company will notify the Commission in advance of the location of every stop at an unlicensed location that exceeds two hours in duration and will make the vehicle and its contents available for inspection upon the request. Tracking Solution Company intends to use an extensive seed-to sales tracking solution for every level of the vertically integrated business, which allows us to remain compliant while helping to identify key data points to streamline and optimize inventory management at each phase of the operation: cultivation, processing, destruction and waste, transportation, lab testing and dispensing. Yield Forecasting – Monitoring and analyzing the harvest data to optimize for larger yields. Grower-Centric – Customizing workflows to support the weighing of multiple plant by-products (wet or dry), plus multiple data collection points and ability to grade product quality upon curing. Analyze Efforts – Monitoring Pesticides and Nutrients applied, log Strain Notes detailing light and watering cycles, plus review Past Harvest Data to optimize your future yields. Conversion Tracking – Converting products into single or multiple by-products, while maintaining a complete chain of custody, logging cost per gram calculations and product notifications/recalls. Transport Manifests – Creating, submitting, and storing compliant transportation manifests noting vehicle, driver, and cargo contained for regulatory review. Product Details – Product details for the inventory items, printing key information directly on the labels including ingredients, potency results, plus a reactive expiration date that can lock a product if it’s past expiration. Inventory Management – Analyzing the sales data to optimize the inventory to the customers. Data Driven CRM – Out-of-the-Box Customer Relationship Management (CRM) tools to reward loyal customers and referrals. Setup targeted email and text campaigns based on customer’s favorite products, last visit date, purchase history, birthdays and more. www.centralvalleyherbery.com 21 Ownership Ownership of United Coach Tours, Inc. is represented by Kevin Quan Xian Lu and Alan Bo Wu, each as to an undivided fifty percent (50%) interest of all outstanding shares to the company. Kevin Quan Xian Lu Kevin is an experienced entrepreneur and business operator in California. As an immigrant from humble beginnings in Canton, China, Kevin immigrated to the United States in 1995 to study auto mechanics and repair. Beginning his career in auto mechanics and repair, he earned his way to becoming the shop manager at Pacific Auto Body in San Francisco, where he managed his staff and handled all operations. In 2007, Kevin, with his managing partner, Alan Bo Wu, founded United Coach Tours, Inc., a successful transportation and tour company. Thereafter, Kevin also founded South City Auto Center, Inc., a successful auto mechanical performance and repair service located in South San Francisco. Both businesses have proven to be wildly successful with a demonstrable history of customer satisfaction.3 In 2013, Kevin co-founded United Coach, LLC, a commercial property investment firm, which has recently entered into contract and escrow to purchase the facility for CVH, located at 920 S. Topeka Avenue, Fresno, California. Although Kevin possesses limited cannabis-related experience, he has a proven history of self- determined success, believing in the strong value derived from surrounding yourself with the expertise to form a cohesive team for success. Throughout his career, Kevin has developed strong and influential relationships with similar-minded business operators, including numerous operators in the Cannabis industry. Kevin possesses the mindset and resources to not only succeed in the industry but to champion its growth in the community and the community as a whole. Alan Bo Wu Alan Bo Wu, an immigrant from native China, is the chief financial officer for United Coach Tours, Inc., South City Auto Center, Inc., together with serving as co-founder and managing partner of United Coach, LLC. 3 United Coach Tours possesses a five-star rating on Yelp from 138 reviews (https://www.yelp.com/biz/united-coach-tours-south-san-francisco); South City Auto Center possesses a five- star rating on Yelp from 5 reviews (https://www.yelp.com/biz/south-city-auto-center-south-san-francisco). 1 | P a g e CENTRAL VALLEY HERBERY SOCIAL POLICY AND LOCAL ENTERPRISE PLAN 2 | P a g e Table of Contents 2.1. Commitment to Living Wage ............................................................................................ 3 2.2. Employment Living Wage and Benefits .......................................................................... 3 Living Wage................................................................................................................................ 3 Employment Benefits.................................................................................................................. 3 2.3. Educational Opportunities ................................................................................................ 4 2.4. Commercial Cannabis Recruitment (FMC §9-3316(b)(1)) ............................................ 4 2.5. Locally Managed and Operated ....................................................................................... 4 2.6. Job Titles and Descriptions ............................................................................................... 5 Operating Director ...................................................................................................................... 5 Master Grower ............................................................................................................................ 6 Trimmer ...................................................................................................................................... 6 Cultivator .................................................................................................................................... 6 Extraction Lab Manager ............................................................................................................. 7 Extraction Lab Technician .......................................................................................................... 7 2.7. Labor Peace Agreement .................................................................................................... 7 2.8. Commitment to Local Hires .............................................................................................. 7 3 | P a g e 2.1. Commitment to Living Wage As an outside enterprise pursuing licensure in the City of Fresno, Central Valley Herbery is dedicated towards not only participating but championing an active role to contribute towards the socio-economic welfare of this community. Central Valley Herbery recognizes the significance of the City’s economy and its crucial role in the physical development of the City, together with the policies and programs important to its residents. Success is more than the business but also the relationship a business has with its customer. That relationship is founded on having a clear, consistent and collaborative plan to incorporate the customer in the success of the business. Central Valley Herbery approach to business is to create such a plan, nurture it, and support its growth. Our holistic approach begins by empowering our personnel that will help build the community that we wish to join and contribute. 2.2. Employment Living Wage and Benefits Living Wage It is of paramount importance for Central Valley Herbery to support this adopted community and its residents with beneficial employment opportunities. We recognize that an investment into the community is an enriching investment for ourselves as well. All employees of Central Valley Herbery will be compensated above the living wage model for Fresno County, including part- time and full-time employees1, fully compliant with IWC Wage Order 4-2001 with regard to daily and weekly overtime rates. As described in greater detail in our business plan, employees will be compensated at an hourly rate not less than per hour, which is commensurate to an annual salary of and exceeds the living wage for adults with children. Employment Benefits All employees of Central Valley Herbery will be provided employer paid health insurance plans, including vision and dental after 90-day probationary period. Central Valley Herbery will also offer a childcare plan contribution plan, where Central Valley Herbery will credit an employee’s dependents for qualified childcare expenses. Employee benefits will also include an annual revenue sharing plan, where an earmarked portion of all profits will be designated for employee bonuses based on performance. All employees of Central Valley Herbery will be incentivized with the chance to earn bonuses based on the profitability of our enterprise. Central Valley Herbery will also comply with all state requirements for paid sick leave and adhere to state and federal medical leave provisions. 1 Living Wage Calculator for Fresno County, California, livingwage.mit.edu/counties/06019. 4 | P a g e 2.3. Educational Opportunities Central Valley Herbery will provide free training and continuing education opportunities for its employees. Additionally, apart from or in addition to adhering to the compliance requirements under Fresno Municipal Code section 9-3316(c), Central Valley Herbery will make available and sponsor any employee to enroll in outreach training programs offered by Cal-OSHA, at the CAL-OSHA Training Institute Education Center in Dublin, California. 2.4. Commercial Cannabis Recruitment (FMC §9-3316(b)(1)) In an effort to ensure not only meeting but exceeding the requirements set forth in Fresno Municipal Code section 9-3316(b)(1), Central Valley Herbery intends to partner with the Fresno Economic Opportunities Commission (the “FEOC”) to recruit from their Workforce Connection Young Adult Program. The FEOC operates this program to work with low-income youths between the ages of 14 through 24 to promote education, including tutoring, instruction, practical training, and mentoring. We believe this program to be an excellent opportunity to not only empower local individuals but also low-income individuals that represent the future of this community. We believe a partnership and investment in the youth of the community represents not only a benefit to the community but also an opportunity for the development of unique skillsets in this growing industry. In addition to empowerment of our youth, Central Valley Herbery also intends to connect with the Fresno Regional Workforce Development Board and the Fresno County Veteran Service Office to identify key partners, programs or methods of interacting with others in the community. 2.5. Locally Managed and Operated Central Valley Herbery is committed to the initial hiring of at a minimum its junior grower and bud trimmers to be residents of the City of Fresno, together with its general manager if feasible. Additionally, Central Valley Herbery intends to specifically require that the private security firm it will contract to provide security personnel that are residents of Fresno. Although Central Valley Herbery anticipates the hiring of a master grower and the engagement of a qualified cannabis consultant outside of Fresno, Central Valley Herbery is dedicated to the enrichment and contributions to Fresno and maintaining a locally-constructed and operated business. 5 | P a g e 2.6. Job Titles and Descriptions Operating Director The Operating Director is one of the most crucial roles we have at our anticipated facility. Their job is to make sure that the entire operation is running smoothly and efficiently. the Operating Director will wear many hats in this position including; managing staff, managing production, inventory, material ordering, building and equipment maintenance, vendor relationships, and cannabis compliance. The Operating Director will report directly to the ownership group on issues, needs, and data reporting on a weekly basis. The Operating Director will also have other employees reporting directly to him or her. Job roles include but are not limited to: · The Director of Operations will work directly underneath the CEO, COO, and CFO and will be responsible for overseeing and optimizing our manufacturing functions and overall operations on a daily basis. · The Operating Director will be organizing the entire production staff including their schedule, roles, efficiency, and skillsets along current management. We expect quarterly employee reviews as well as consistent feedback to the ownership group on staff members who are excelling and needing bonuses or those who are falling short and need an action plan. We need a leader who has a stern management style but is also well respected and liked among the team. · Maintain close and well-respected relationships with all vendors we work with- including other cultivators, packaging, courier, maintenance, and others. It is very important that we uphold our reputation with these individuals. · Make sure there are no backorders, and that the team has a large variety of inventory to meet sales goals and keep our customers satisfied. · Maintain building and the equipment and fix anything that arises in a timely but effective manner. The director must think on their feet, is not easily distressed, and that can come up with solutions on their own (major issues being brought to ownership). A forward thinker who feels confident in addressing daily operating needs. Especially those in the cannabis space. · Oversee and assist other personnel with their duties, making sure things are being run as efficiently as possible and coming up with creative solutions when needed. · Oversee and assist our extractor with their needs and duties. Make sure we are hitting the yields and labor goals needed as well as collaborate on the best cultivations and strains for our product line based on data. · Critical decision making and business thought processes that enable efficient, simplified ways of working our systems in order to meet critical deadlines and quotas. 6 | P a g e · The Operating Director will be responsible for identifying operational pinch points and creating an action plan to optimize the process through the creation and implication of new business protocols and effective staff management. · The Operating Director will collaborate with management and executives to determine the best course of action to integrate processes through every aspect of the business. · The Operating Director will lead the development of standardized tools that enables us to execute with consistency and efficiency including streamlined performance reporting for all areas of operations (yields, labor, COGS etc). These reports will be diligently updated and made readily available for operational needs, references, and of course compliance audits. ·The Operating Director will implement SOPs and have oversight of operational functions to make sure the MIP is in full compliance at all times. · The Operating Director will be in charge of all final quality control of the products- from production to labeling- everything must fit our company standard. Quality and consistency are key. Master Grower Master growers oversee operations at cannabis cultivation facilities. This typically includes sourcing, cloning, transplanting, and providing nutrients for various strains of cannabis plants; setting up and maintaining irrigation systems and environmental controls; and ensuring that the facility is pest-free. The master grower may also manage other cannabis production employees, including bud trimmers and extraction technicians, and keep track of the facility's inventory. Additionally, the master grower must ensure that the production facility remains clean and organized, much like a laboratory environment, and that tasks are completed within budgetary and time constraints. Trimmer Cannabis bud trimmers harvest cannabis plants by cutting the flowers of the plants from their stems. They also might be responsible for weighing, labeling and packaging the trimmed buds. Cannabis bud trimmers might have to meet daily production quotas, depending on time and circumstances. Additionally, they must adhere to all local and state laws and regulations related to cannabis production and keep up to date on changes to those laws and regulations, pursuant to training as provided. Cultivator The cultivator will collaborate with master grower in implementing the horticultural plan created by the master grower. The health of the garden is the primary goal and responsibility of those in the cultivation department. Duties include the following: executing plans for fertilization, planting & harvesting. Within the cultivation assistant role there is a heavy emphasis on cleaning. The cultivation assistant is primarily responsible for cleaning, upkeep and sanitation of 7 | P a g e the cultivation facility. Including, but not limited to, breaking down and setting up rooms, washing and sanitizing equipment. Extraction Lab Manager Primary responsibility includes planning, organizing, and directing the overall operation of the Production Laboratories. The Cannabis Extraction Laboratory Manager is responsible for ensuring that the overall operation and administration of the production laboratories are of the best quality, cost contained and carried out in an expeditious manner. Additional responsibilities include recognizing results or problems that require referral, assuring competency of all personnel, formulating the budget, maintaining performance improvement activities, the employment of competent personnel, equipment, safety laboratory policies, quality assurance (QA), all testing (including proficiency testing) and test reports. Some duties may be delegated in writing to other qualified individuals. The Manager must ensure that delegated duties are properly performed and must be accessible to provide onsite, telephone, or electronic consultation as needed. Extraction Lab Technician The lab technician is designed for mechanically and scientifically minded individuals that are comfortable in a lab environment as well as capable of performing complex tasks that may be at times heavily laborious, in order to support the responsibilities of the lab manager. The technician will perform many different tasks from plant oil extraction, non-solvent removal, purification, machine maintenance, lab upkeep, as well as filling in on packaging final product and cleaning. 2.7. Labor Peace Agreement Central Valley Herbery anticipates hiring at least six employees during the first year of operation. Pursuant to AB 1291, Central Valley Herbery intends to comply with the provision of a contemplated labor peace agreement in cooperation a bona-fide labor organization 2.8. Commitment to Local Hires Central Valley Herbery offers a unique opportunity to service its community as an equity incubator. Our intended facility, which we are in the process of closing escrow to secure, offers 16,875 square feet, of which no more than 12,000 square feet will be used as functional space and 8,800 used for grow space. With the coordination of the Office of Cannabis, our facility will be ideal for the provision of onsite space to an equity applicant in a manner compliant with Fresno Municipal Code section 9-3308(c). Central Valley Herbery will be committed to being an asset to the local community. We aim to enhance the local community by being a safe, professional business that is considerate and dedicated to the advancement of the community. We hope to encourage and contribute to the 8 | P a g e community’s overall health, together with the promotion of awareness of the benefits of cannabis and derivatives through education and outreach. . 1 | P a g e CENTRAL VALLEY HERBERY NEIGHBORHOOD COMPATIBILITY PLAN 2 | P a g e Table of Contents 3.1. Proactive Measures to Address and Respond to Complaints ........................................ 3 3.2. Nuisance Management....................................................................................................... 3 3.3. Odor Mitigation ................................................................................................................. 3 3.4. Identification of Potential Sources of Odor ..................................................................... 4 3.5. Odor Control Devices and Techniques ............................................................................ 4 ULPA Filters ............................................................................................................................... 4 PCO Air Cleaner ......................................................................................................................... 4 Electrostatic Air Cleaner ............................................................................................................. 4 3.6. Proposed Staff Odor Training and System Maintenance .............................................. 4 3.7. Waste Management Plan ................................................................................................... 4 Waste Safety and Security Assurances ....................................................................................... 5 Solid Cannabis Waste Storage and Disposal .............................................................................. 5 Composting of Solid Cannabis Waste ........................................................................................ 6 Liquid Cannabis Waste Management and Disposal ................................................................... 6 Waste Room ................................................................................................................................ 7 3 | P a g e 3.1. Proactive Measures to Address and Respond to Complaints Although located in a heavy industrial zone, Central Valley Herbery shall take all steps to mitigate against odor and other nuisances. CVH places a high priority on Our approach towards air quality management and mitigation is comprised of focusing on the heating, ventilation and air conditioning (HVAC) systems. Central Valley Herbery will contract licensed engineers in addition to an HVAC service company licensed with the State of California to implement a comprehensive system for proper airflow, maintaining healthy internal air quality and mitigation against exposure to the outside. 3.2. Nuisance Management Central Valley Herbery will enact the following practices to ensure a "good-neighborhood policy" with prospective neighborhood business establishments and communities: ➢ Provide a pleasing storefront absent of offensive signs or symbols that may attract undesirable individuals or inspire neighborhood bad relations. ➢ Operate a well-run, clean, facility staffed with Industry professionals. ➢ Hire on-site security personnel to ensure the safety of customers and employees. ➢ Ensure the placement of hi-tech security systems, fighting, fencing, alarms, etc., to promote a safe environment for employees ➢ Establish effective banking and cash-handling practices so as not to endanger employees or clientele by exposing them to risk of robbery or physical harm. ➢ Maintain positive relations with local police departments, municipalities, and elected officials to ensure compliance with local laws and promote the safety of the neighboring community. ➢ Remove graffiti and prevent loitering. ➢ Provide a 24/7 telephone hotline, responsive website, email dedicated to receiving and responding to feedback and/or complaints. ➢ Assign a local Community Liaison who will be able to address any complaints, feedback and/or concerns from neighboring businesses and community members. 3.3. Odor Mitigation Although located in a heavy industrial zone, Central Valley Herbery shall take all steps to mitigate against odor and other nuisances. Our approach towards air quality management and mitigation is comprised of focusing on the heating, ventilation and air conditioning (HVAC) systems. Central Valley Herbery will contract licensed engineers in addition to an HVAC service company licensed with the State of California to implement a comprehensive system for proper airflow, maintaining healthy internal air quality and mitigation against exposure to the outside. The best practices and industry-approved equipment ensures redundancies across our system that exceed directives from city and state to absorb and eliminate cannabis odors. Our odor and noise management systems will prevent odor generated inside the facility from being detected outside our facility and anywhere on adjacent property. 4 | P a g e 3.4. Identification of Potential Sources of Odor Potential sources of odor will be limited to the cultivation of plants and the mother room. There are no anticipated sources of odor in connection with the manufacturing or distribution, which are not processes that typically lead to sources of noticeable odor. 3.5. Odor Control Devices and Techniques ULPA Filters Central Valley Herbery will utilize ULPA filters in our HVAC systems with an ultra-quiet blower that creates negative pressure. All ingress and egress points will be separately fit with ULPA-filtered recirculation fans as a redundancy to eliminate odors. All rooms housing flowers in particular will have redundantly reinforced air filtration systems, not only at the points of entry but spaced throughout each room for maximum mitigation. PCO Air Cleaner Central Valley Herbery will also be deploying ozone-free photocatalytic oxidation (PCO) air cleaners, which are capable of removing more than 99.999% of organic contaminants, for use in all microbusiness rooms where the highest concentration of odor emanates. PCO is a NASA- developed technology for use of eliminating organic contaminants in space. Electrostatic Air Cleaner Central Valley Herbery will also install electrostatic air cleaners, which are highly efficient filtration devices that use electrostatic attraction to remove fine particulate matter such as dust and smoke from the air. 3.6. Proposed Staff Odor Training and System Maintenance In addition to the fire safety training, all employees will undergo initial training at time of hiring to comply with all odor management protocols and adhere to safety policies. All equipment will be maintained by trained personnel only, subject to periodic maintenance. 3.7. Waste Management Plan Any cannabis waste, liquid waste, or hazardous waste will be disposed of in accordance with all local, state and federal laws. To the greatest extent feasible, all cannabis plant waste will be rendered unusable by grinding and incorporating the cannabis plant waste with compostable mixed waste to be disposed. CHV will remain in compliance with applicable environmental requirements, including but not limited to: (A) storing, securing, and managing all recyclables and waste, including organic waste composed of or containing finished cannabis and cannabis 5 | P a g e products and (B) disposing liquid waste containing cannabis or byproducts of cannabis processing. Waste Safety and Security Assurances CHV will use the following procedures to assure safe waste management: • Prohibit the placement, dumping, or disposal of trash, garbage, litter, or any other kind of waste on the property of another legal entity or any public place within or beyond the local community. • Communicate clearly during training that improper disposal of any type of waste by an employee is cause for termination. • Establish a relationship with one or more vendors who properly dispose of universal waste. • Prohibit the sale of cannabis waste. • Store cannabis waste in a secured waste receptacle or a secured area on the licensed premises. • Restrict physical access to secure waste receptacles and secured areas to CHV’s employees and the local agency, local agency franchisor, or permitted private waste hauler. • Physically restrict and prohibit public access to the designated waste receptacle or area. • Comply with requirements for composting cannabis waste on the licensed premises. • Prohibit disposal of cannabis derivative products as cannabis waste unless the cannabis goods have been removed from their packaging and rendered unrecognizable and unusable. • Render products unrecognizable and unusable using preferred methods such as grinding them using a mechanical grinder and mixing them with an inert noncannabis substance (e.g. sand, cardboard, coffee grounds, waste paper, etc.). • Crushing or chopping products in another safe manner if they cannot be ground and mixed with an inert substance for disposal. Solid Cannabis Waste Storage and Disposal All cannabis waste generated from normal cultivation or processing activities, excess production, contamination, adulteration, or expiration will be securely stored, rendered unusable, and disposed of in a manner that ensures that it cannot be reconstituted for any kind of use or benefit for its psychoactive content by an unauthorized individual or organization. Cannabis waste that is not designated as dangerous waste will be rendered unusable. Unusable waste will be delivered to a permitted solid waste facility for final disposition. Grinding/shredding of waste will be done using the Taskmaster TM1600 grinder (or equivalent). The Company will act to prevent diversion, misuse, loss or contamination of its cannabis waste. 6 | P a g e Composting of Solid Cannabis Waste • All cannabis that is not usable will be disposed of within [ten] calendar days of expiration or removal from the regular inventory. • Mixing/blending will be carried out by the authorized employee in a limited access area under video surveillance. • Cannabis waste to be composted will be securely stored in a limited access area prior to and after mixing. • Immediately prior to mixing, all cannabis waste will be weighed on a calibrated certified scale that is integrated with the ICS. • Cannabis waste will be ground up and incorporated with allowed combustible solid waste or other organic materials to a resulting mixture that is at least 50% non- cannabis waste by volume. At multiple points during the waste disposal process, a Manager will record key items in the ICS, including: o Plant, batch, or lot identifier of the cannabis to be disposed o Quantity of cannabis waste added to waste container o Description of the cannabis waste being disposed of, including the number of failed or otherwise unusable cannabis plants or harvest batches o Weight of mixed waste when entered into storage o Weight of mixed waste when removed from storage o Waste container identification number, if applicable o Method of disposal o Date of disposal o Confirmation that the cannabis was rendered unusable before disposal o The name and signature or identification number of the ICM or his/her designee Liquid Cannabis Waste Management and Disposal When disposing of liquid cannabis waste, the Company will implement the following procedures: • Liquid cannabis waste will not be allowed to enter the local wastewater collection system, storm drain system, sewer system, or any unsecured rubbish disposal system. • All liquid waste potentially containing cannabis solids or residues, nutrients, chemicals, or any other potential pollutants will be disposed of in an on-site storage tank that is compliant with applicable local and state regulations. • The septic system will be properly maintained according to EPA recommendations. • All restroom and production area drains will be connected to the septic system. • Rinse waters from equipment and empty chemical containers will be minimized and never discharged into a public sewer system, ditches, streams, or the ground. • Spills and leaks will be attended to promptly to ensure liquid waste does not become a source of contamination. • Equipment that has been in contact with cannabis products will only be rinsed with water when necessary to reduce the introduction of cannabis products into any drainage system. • Any rejected liquid product that contains cannabis, such as oils, beverages, etc., will be reprocessed into a solid cannabis waste, through means of absorption, evaporation, etc. 7 | P a g e such that it can be disposed of according to the procedures for solid cannabis waste above. • Liquid waste will be placed immediately into the properly designated bucket until they have been emptied of their contents. When the initial container is approximately 2/3 full, the contents will be bagged inside another secure, secondary container. The secondary container will be closed and transported to the secure waste storage room. Waste Room The Secured Waste Storage Room will be located adjacent to the Delivery Area and used to properly subdivide, treat, and render unusable all forms of cannabis waste. All cannabis stored prior to being rendered unusable will be stored in a TL-30 safe in the Secured Waste Storage Room. Waste will then be locked in labeled containers prior to transfer to the appropriate waste facility 1 | P a g e CENTRAL VALLEY HERBERY FIRE SAFETY PLAN 2 | P a g e Table of Contents Summary ........................................................................................................................................ 3 General Plan .................................................................................................................................. 3 Responsibilities of Employees .................................................................................................... 3 Fire Suppression Systems ............................................................................................................. 3 Evacuation Procedures ................................................................................................................. 4 Emergency Exits ............................................................................................................................ 4 First Aid and Safety ...................................................................................................................... 5 3 | P a g e Summary Central Valley Herbery is committed to complying with all state and local fire code requirements. Fire prevention is a vital aspect of safety for our employees, neighborhood and our community. In addition to the fire safety protocols outlined in the security POST Orders, Central Valley Herbery’s Fire Safety Plan will implement both physical and functional initiatives for the protection of all. All physical construction will comply with the development standards in the California Fire Code and Chapter 10 of the Fresno Municipal Code. The design of the building, including trash receptacles, screen of mechanical equipment, landscaping, and parking or loading zones. General Plan An effective fire safety and emergency evacuation plan requires the coordination of many occupants in a building. All building occupants, including staff, contractors, and other personnel need to be aware of their roles and responsibilities in case of an emergency. This section outlines specific responsibilities for staff and personnel engaged to be on the premises. Visitors should also be instructed on proper response to alarms and the requirement to evacuate. Employee Safety Training Central Valley Herbery will train all employees upon hire in connection with all safety, fire safety and security procedures and protocols implemented. All employees must adhere to all procedures and protocols during their employment. Central Valley Herbery will also provide periodic training courses throughout the calendar year. Random drills will be conducted at least twice a year to enable employees the opportunity to test their adherence with all safety procedures and improve their effectiveness. Responsibilities of Employees 1. Be familiar with building emergency procedures and act in the event of an emergency 2. Participate in drills and training as required. 3. Inform and assist visitors unfamiliar with building procedures as appropriate prior to and during an emergency. 4. Supervisors orient new employees of this plan upon hire. 5. Be familiar with guidelines herein to evacuate, take refuge, or stay in place if you are a person with mobility disabilities. 6. Wear a face covering when inside a building and continue to wear it outside in designated evacuation area. It is assumed employees away from their workstation during communicable disease restrictions will be wearing their face covering. Fire Suppression Systems Central Valley Herbery will deploy several systems and protocols to mitigate, control and eliminate fires that occur. These systems will include the following: 4 | P a g e • Commercial Fire Alarm Systems: These early warning systems are designed to provide prompt and life-saving alerts in the event of a fire on the property. Not only will they alert anyone in the building and local vicinity, but they also help to quickly alert the local fire department to the danger • Fire Sprinkler Systems: Sprinkler systems are designed to actively extinguish or control a fire. They can help extinguish smaller fires and control larger fires until firefighters arrive. • Fire Extinguishers: Portable fire extinguishers are the most common type of extinguisher. They are handheld, portable and used in most commercial buildings to extinguish small fires in emergency situations. • Fire Monitoring System: Fire monitoring systems are designed to detect a fire and enable occupants to evacuate the building as soon as possible. • Fire Evacuation Plan: Standardized evacuation procedures are instrumental to ensure preparedness and efficiency in the event of a fire. Central Valley Herbery has developed procedures and protocols to promote preparation and adherence when correctly implemented and followed. Further Fire and Medical Emergency Plans will be developed and implemented. Location of Fire Suppression Systems Subject to finalization of floor plans, Central Valley Herbery will comply with Fresno Municipal Code, Ch. 9 and 15, including the submission of the location of all fire suppression systems and extinguishers to the City of Fresno and local fire department. Evacuation Procedures These procedures focus on evacuation of occupants as a result of a fire or other building emergency. 1. Assume all alarms are real unless an announcement has been made just prior to the alarm. 2. Upon fire alarm, wear face covering if possible. 3. Begin immediate evacuation of the building or area as outlined in Section 4 Emergency Procedures. 4. Take your keys and valuables and close doors behind you as you exit. 5. Evacuate via the nearest stairwell or grade level exit. Do not prop doors open; doors must remain closed to prevent smoke migration in the event of a fire. 6. Go to the pre-determined Evacuation Assembly Point (EAP), typically outdoors at a safe distance from the building and out of the way of emergency services. 7. Persons with disabilities who are unable to evacuate will follow their personal plan to take refuge or report to an area of evacuation assistance (see section 5). Emergency Exits Emergency exits are marked on the floorplan, in addition to the provision and accessibility of fire extinguishers. Evacuation floor plans help to identify exits and exit routes for the building. 5 | P a g e Occupants should go to the nearest exit when the alarm sounds or in case of an emergency. If access to the nearest exit is obstructed, an alternate exit should be taken. First Aid and Safety Central Valley Herbery has enlisted a local fire safety protection firm to provide first aid and A.E.D defibrillation on-site for personnel. 1 | P a g e CENTRAL VALLEY HERBERY PHYSICAL SECURITY PLAN 1 | P a g e CENTRAL VALLEY HERBERY LOCATION PLAN 2 | P a g e 6.1. SUMMARY The location of Central Valley Herbery’s facility is at 920 S. Topeka Avenue, Fresno, California, which lies in the Van Ness Industrial District. The area is largely comprised of warehouses and heavy industrial structures. Although recently redeveloped to improve the roadways, the area is infrequently traveled by commuters or by pedestrians. We believe this to be an ideal location for the microbusiness of cannabis with minimal traffic, lower likelihood to negatively impair on our neighbors, and an opportunity to invest in a largely unoccupied part of the city. 3 | P a g e The interior of the facility is manufactured and will be demolished for complete new interior construction. 4 | P a g e The anticipated floorplan and layouts are provided in the following attachments. 1 | P a g e CENTRAL VALLEY HERBERY COMMUNITY BENEFITS AND INVESTMENTS PLAN 2 | P a g e 7.1 Summary Central Valley Herbery (“CVH”) is committed to participating in the local efforts to support the community in the form of financial support partnerships with local charity organizations. Our efforts will be driven towards development and enrichment of the impoverished and social disadvantaged parts of this community. As an outside enterprise pursuing licensure in the City of Fresno, CVH is dedicated towards not only participating but engaging in an active role to contribute towards the socio-economic welfare of this community. CVH recognizes the significance of the City’s economy and its crucial role in the physical development of the City, together with the policies and programs important to its residents. Success is more than the business but also the relationship a business has with its customer. That relationship is founded on having a clear, consistent and collaborative plan to incorporate the customer in the success of the business. CVH approach to business is to create such a plan, nurture it, and support its growth. Our holistic approach begins by empowering our personnel that will help build the community that we wish to join and contribute. 7.1.1 Funding for Outreach Programs CVH is committed to allocating of its EBITDA profits towards its outreach programs and for charitable donations that benefit the City of Fresno1. Following in the footsteps of Element 7 and the Fresno Public Defender’s Office, CVH hopes to also partner with local law offices and host an event for free legal assistance to Fresno residents with drug-related criminal records for expungement of convictions. In consideration of COVID-19 restrictions, quarantines and possible shelter-in-place orders, CVH is currently exploring options and logistics of conducting a series of clinics on an interval basis using remote technology (i.e., Zoom). We are also exploring opportunities and ethical considerations to partner with local law firms in Fresno for prepaid legal services relating to expungements. In addition to expungement clinics, CVH intends to connect with organizations such as The Light House, Fresno Rescue Mission, and BAART Narcotic Treatment Center for opportunities to partner for joint events or sponsored programs that support low-income families battling against addiction and rehabilitation. 7.1.2 Incorporation of Environmentally Sustainable Business Practices The subject property for CHV is a light industrial area, which CHV intends to convert to an energy-efficient building that meets and exceeds current energy standards for commercial buildings designed to operate with environmental considerations. CHV will utilize low-energy LED lighting for minimal energy consumption, together with low energy consumption extraction equipment with energy recycling technologies. CHV also commits to using electric vehicles, including the Rivian Commercial Van, to further reduce our carbon footprint. 1 See CVH Business Plan, Section 6, “Profit & Loss Forecast.” 3 | P a g e 7.1.3 Utilizing Vacant Buildings CHV has targeted and acquired a property that was formerly used for light industrial warehouse use with limited functionality. The area is largely comprised of light to heavy industrial buildings with varied uses. By investing in this area, tax revenue from CHV sales can be reinvested and allocated to support the local businesses and improve the landscape for the community. 7.2. Youth and Addiction Programs In addition to expungement clinics, CVH intends to donate a significant portion of the charitable funds towards local charitable organizations, including The Light House, Fresno Rescue Mission, and BAART Narcotic Treatment Center. CHV is committed in championing programs that support low-income families battling against addiction and rehabilitation. CHV has also connected with a number of local organizations to contemplate joint programs and sponsored events, including organizations like Poverello House (www.poverellohouse.org), Wings Advocacy Fresno (www.wingsfresno.com) and Central California Food Bank (www.ccfoodbank.org). 7.3. Contributions to the Fresno Community Reinvestment Fund CHV is committed to contributing one of its EBITDA profits per year to the Fresno Community Reinvestment Fund to support our local social equity business partners and community. CHV also intends to provide designated space available for social incubator use to help promote and foster the necessary foundation for a diverse industry. . AFFIDAVIT PURSUANT TO FMC §9-3316(C) I, Kevin Quan Xian Lu, am the President and Managing-member of Central Valley Herbery LLC and am a principal for the application submitted hereto, and I declare the following in support of the commercial cannabis permit application submitted hereto: The facts stated in this affidavit are within my personal knowledge and if called to testify, I could testify competently to them. Central Valley Herbery LLC, the applicant for the commercial cannabis permit application attached hereto, intends and shall employ within one year of receiving a commercial cannabis business permit, at least one supervisor and one employee who has completed a Cal-OSHA industry outreach course offered by a duly authorized training provider in compliance with Fresno Municipal Code section 9-3319(d). I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this 4th day of February, 2022, at South San Francisco, California Dated: Kevin Quan Xian Lu DocuSign Envelope ID: 65600944-A38B-484B-9C7E-A0D911995B9B 2/4/2022 AFFIDAVIT PURSUANT TO FMC §9-3316(C) I, Alan Bo Wu, am an officer of Central Valley Herbery LLC and am a principal for the application submitted hereto, and I declare the following in support of the commercial cannabis permit application submitted hereto: The facts stated in this affidavit are within my personal knowledge and if called to testify, I could testify competently to them. Central Valley Herbery, Inc., the applicant for the commercial cannabis permit application attached hereto, intends and shall employ within one year of receiving a commercial cannabis business permit, at least one supervisor and one employee who has completed a Cal-OSHA industry outreach course offered by a duly authorized training provider in compliance with Fresno Municipal Code section 9-3319(d). I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this 3rd day of February, 2022, California Dated: Alan Bo Wu DocuSign Envelope ID: 65600944-A38B-484B-9C7E-A0D911995B9B 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 December 4, 2020 Please reply to: Rob Holt (559) 621-8056 Larry Fowler United Grow 69 S Linden Ave South San Francisco, CA 94080 Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-03892 REQUESTING INFORMATION REGARDING COMMERCIAL CANNABIS USES (DISTRIBUTION, CULTIVATION, OR MANUFACTURING) FOR PROPERTY LOCATED AT 920 SOUTH TOPEKA AVENUE (APN 468-020-78) Thank you for your inquiry regarding the allowance of commercial cannabis uses. The requested information about a cannabis business for cultivation, distribution, or manufacturing 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, Zoning Inquiry P20-03892 920 South Topeka Avenue Page 2 December 4, 2020 (d) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted. The subject property located at 920 South Topeka Avenue (approximately middle of multi-tenant building) is located within the Cannabis Innovation Zone, and is zoned IH, which is one of the allowable zone districts for commercial cannabis businesses. 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 8 cultivators, distributors, or manufacturers located within the Cannabis Innovation Zone, and there shall be permitted 8 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 0 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 559-621-8056 or at Robert.Holt@fresno.gov. Cordially, Rob Holt, Planner III Development Services Division Planning and Development Department