HomeMy WebLinkAboutCSE-21-105 Truffle Tree 420 combinedBusiness Name: Truffle Tree 420
Application #: CSE-21-105
SOCIAL EQUITY APPLICANT
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 x
Resumes Provided in 2-page Format: Score 2 2
Education: (select highest academic level among ownership team, cannabis specific education
separately)
Cannabis specific education/training (accredited)2 2
High School Degree Reported: Score 4 4
Bachelor's Degree Reported: Score 6 6
Master's Degree or Higher Reported: Score 8 8
Experience: (among ownership team, select one at highest level)
Regulated Cannabis Microbusiness Ownership Experience CA 13 13
Regulated Cannabis Microbusiness Experience CA (management level or below): Score 10 10
Other Retail Business Experience (cannabis or cult., distribution, manufacturing) Reported, More than 5
years: or 8 8
Other Retail Business Experience (cannabis or cult., distribution, manufacturing) Reported, Less than 5
Years: Score 5 5
1.1 Sub-Total:30 0
Construction Cost Estimate:
Construction Cost Estimate Provided: Score 8 8 6 4 x
Construction Contingency Factor Included: Score 6 6
All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 not detailed
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1
Operation and Maintenance Cost Estimates:
Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 x pg 44
All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 not detailed
Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1
1.2 Sub-Total:50 0
Proof of Capitalization Specific to one or more Owners: Score 5 5 x
Proof of Capitalization Specific to Business Name/Address: Score 5 5
Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 Does not equal stated amount
Certified Audited Financial Report Provided for one or more Owners: Score 5 5
Score one of the following for a maximum 20 points:
1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner. (30 points possible)
1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs.(50 points possible)
1.3 Proof of capitalization in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City. (50 Points Possible)
Criteria Narrative:
Criteria Narrative:
Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 x Does not equal stated amount
Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10
Capital consists of non-liquid assets (i.e. real property)8 8
Capital consists of a mixture of liquid and non-liquid assets 15 15
1.3 Sub-Total:50 0
Three Years of Data Provided: Score 10 10 8 6 x pg 47
Total Gross Revenue Estimates Provided:3 3 x
Total Gross Revenue by Product Type (flower and manufactured) Identified:3 3
Total Personnel Costs Provided:5 5 4 3
Total Property Rental or Purchase Costs Provided:2 2
Total Utilities Costs Provided:2 2
Total Cannabis Product Purchase Expense Provided 2 2
All Contract Services Identified:2 2
Annual Net Revenue Identified:3 2
Annual Cost Escalators Identified:4 4 3 2
Annual Estimated Sales Tax Payments to State Provided:2 2
Annual Estimated Sale Tax Payments to City of Fresno Provided:5 2
Annual Business Tax License and Cannabis Permit Fee Provided:2 2
Annual Net Income Provided:5 5
Scoring Guidance: full points for realistic figures for all three years. Dock points for severe
miscalculations, unrealistic estimates, or providing less than the request three years.
1.4 Sub-Total:50 0
Hours of Operation Provided: Score 5 5
Hours of Operation Provided for all 7 days of the week: Score 3 3
Hours of Operation Provided for Holidays: Score 2 2
Opening and Closing Procedures Provided: Score 10 10 8 6
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
Document reads as a general informational
document. Unclear commitment for specific
procedures. Doesn't follow procedures Appendix A.
1.7 Please state the State of California cannabis license type
5 5
Discusses multiple State license types but does not
confirm the licensee applicant intends to apply for.
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
ii. Describe the transportation security procedures.10 10 8 6 x
iii. Describe the how inventory will be received, processed, stored, and secured in the permitted
premises.5 5 4 3
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)
1.4 Pro forma for at least three years of operation.
1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
iv. Describe the quality control procedures designed to ensure all cannabis is properly packaged, labeled
and tested.5 5 4 3
1.8 Fully describe the day-to-day operations for MANUFACTURING:
i. Identify all cannabis products manufactured within the permitted premises.5 5 x
ii. Describe quality control procedures.5 5 4 3
iii. Describe inventory control procedures. 5 5 4 3
iv. Describe the extraction process, equipment and room in which extractions will be conducted.5 5 4 3
Describes various methods, unclear which will be
used.
v. Provide detail as to whether the extraction equipment has been reviewed and certified by a
Professional Engineer or Certified Industrial Hygienist. 5 5
vi. Describe the sanitation procedures.5 5 4 3
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
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
iii. The estimated number of pounds produced per harvest, and number of anticipated harvests per
year. 5 5 x
iv. Describe whether the cultivation operation will use natural light, artificial light, or mixed light. 5 5
v. Identify how cultivation waste will be rendered unusable and unrecognizable, and how it will be
stored and disposed of. 5 5 4 3
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
1.6 Sub-Total:100 0
Section 1 Total:300 0
SECTION 2: SOCIAL POLICY AND LOCAL ENTERPRISE 400 Points Possible for Section 2
Description of Commitment to pay a Living Wage provided: Score 10 10 8 6
Definition of Living Wage Provided: Score 5 5 4 3
Living Wage Defined as Greater than Minimum Wage: Score 5 5
2.1 Sub-Total:20 0
Wages and Salary
CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5
CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5
Health Care Benefits
CCB Offers Medical Coverage to All Employees: Score 5 5 x
CCB Offers Dental Coverage to All Employees: Score 5 5 x
CCB Offers Vision Coverage to All Employees: Score 5 5
CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1
Employee Pays $0 for Employee Medical Premium: Score 3 3
Employee Pays $0 for Employee Dental Premium: Score 3 3
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)
Criteria Narrative:
Criteria Narrative:
Employee Pays $0 for Employee Vision Premium: Score 3 3
Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision):
Score 3 3
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 x
Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 x
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 x
Retirement
Offers employee retirement plan 10 10 x
Offers company match for employee retirement plan 10 10 x
2.2 Sub-Total:73 0
CCB Provides Tuition Reimbursement for Certificates: Score 3 3
CCB Provides Tuition Reimbursement for associate degrees: Score 3 3
CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3
CCB Provides Tuition Reimbursement for master's degrees: Score 3 3
CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations
Training: Score 3 3 x MJ Hybrid Solutions online dispensary training program
CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 10 10 8 6 x
2.3 Sub-Total:25 0
General Recruitment Plan Provided: Score 10 10 8 6 x
Social Policy Recruitment Plan Provided: Score 10 10 8 6
Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6
Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6
Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6
2.4 Sub-Total:50 0
Owners
Number of Owners:
Number of Owners that live within the City of Fresno:
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 x
51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40
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: pg 5 standard operating procedures refer to dispensary operations. Correspondence with applicant through application system confirmed that retail sales is not allowable for a microbusiness in Fresno.
Criteria Narrative:
Criteria Narrative:
Data, non-scored. Write response in Evaluation Notes
column.
Less than 50 percent of the Owners live or own a business in the Cityf no owners are local, score zero)20 20
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
2.5 Sub-Total:80 0
Responsibilities Described for All Titles/Positions: Score 20 20 15 10 x
2.6 Sub-Total:20 0
Does CCB have more than five employees: 10 10
CCB has signed a peace agreement: Score 2 2
2.7 Sub-Total:12 0
Commitment to Local Hire Provided:20 20 15 10 x
2.8 Sub-Total:20 0
CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 N/A Social equity application
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 0
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.
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)
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
CCB will established a dedicated contact person to receive complaints: Score 10 10 x
CCB will establish a dedicated phone number to receive complaints: Score 5 5 x
CCB will establish a dedicated email address to receive complaints: Score 5 5
CCB will establish a response time standard for returning complaint calls and emails: Score 5 5
CCB will schedule or participate in periodic community meetings to engage with residents about the CCB
operation: Score 10 10
Other measure unique to business (i.e. website complaint form)5 5 Pg. 3 makes mention of retail space
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 0
CCB will maintain a listserv of community residents to update and information residents of business
operations.
10 10
CCB will schedule or attend periodic community meetings (at least annually) to engage with residents
about the CCB operation: Score 10 10 x
CCB will prepare a community outreach and engagement plan: Score 50 50 40 30
CCB will issue periodic Newsletters to community providing information about CCB operations 10 10
CCB will hire residents from the community work at the CCB: Score 20 20
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
Written for and references dispensary, not
microbusiness
CCB has prepared a nuisance odor control plan: Score 10 10 8 6 x
Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary:
Score 5 5 x
Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting
the premise boundary: Score 5 5
CCB has established an odor reporting system: Score 5 5
CCB will install a nuisance odor monitoring system: Score 10 10
3.3 Sub-Total:40 0
CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 Written for dispensary
Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans.
3.3 Describe odor mitigation practices.(40 points possible)
3.4 Identify potential sources of odor. (10 points possible)
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible)
3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible)
3.4 Sub-Total:10 0
Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6
Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6
Odor control measures are identified for different nuisance odor sources: Score 10 10
3.5 Sub-Total:30 0
Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for
odor control measures: Score 10 10
Nuisance odor control plan describes the staff training required for system operations, maintenance,
repair, and troubleshooting.10 10
3.6 Sub-Total:20 0
CCB has identified the sources of waste generated by the business operation: Score
10 10
CCB has prepared a source-separation plan to segregate different sources of waste generated by
business operations: Score 10 10 x
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
The source-separation plan describes specific measures to control the collection and disposal cannabis
waste: Score 10 10 x
The name of licensed cannabis disposal company provided: Score 10 10
3.7 Sub-Total:50 0
Section 3 Total:300 0
SECTION 4: SAFETY PLAN 300 Points Possible for Section 4
Safety Plan Prepared by Consultant: Score 10 10
Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10
Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10
Safety Plan includes Site Plan of Premise: Score 10 10
Safety Plan includes Building Layout Plan: Score 10 10
4.1 Sub-Total:50 0
Written Accident/Incident Procedure Provided: Score 20 20 15 10
Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6
Total Number of Scenarios Described: Score Data-write response in Evaluation Notes Column
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:
4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible)
4.2 Describe accident and incident reporting procedures. (50 points possible)
Criteria Narrative:
3.7 Describe the waste management plan. (50 points possible)
Criteria Narrative:
Criteria Narrative:
Active Shooter Incident Described: Score 10 10
Robbery Incident Described: Score 10 10
4.2 Sub-Total:50 0
Evacuation Plan Provided: Score 20 20 15 10
Adequate Number of Evacuation Routes Identified: Score 20 20 15 10
Evacuation Route Distance to Public Right of Way: Score 10 10 8 6
4.3 Sub-Total:50 0
Location of Fire Suppression System Elements Identified: Score 10 10
Type of Fire Suppression System Elements Identified: Score 20 20 15 10
Location of Fire Extinguishers Identified: Score 10 10
Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6
4.4 Sub-Total:50 0
Written Procedure for Fire Emergencies Provided: Score 20 20 15 10
Written Procedure for Medical Emergencies Provided: Score 20 20 15 10
Cardiac Arrest Medical Emergency Described: Score 20 20 15 10
Gunshot Wound Medical Emergency Described: Score 20 20 15 10
Other Medical Emergency Conditions Described: Score 20 20 15 10
4.5 Sub-Total:100 0
Section 4 Total:300 0
SECTION 5: SECURITY PLAN 300 Points Possible for Section 5
Security Plan Prepared by Consultant: Score 10 10
Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10
Security Plan Prepared for CCB Address (specific proposed location): Score 10 10
Security Plan includes Site Plan of Premise: Score 10 10
Security Plan includes Building Layout Plan: Score 10 10
5.1 Sub-Total:50 0
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:
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)
4.3 Describe evacuation routes. (50 points possible)
Criteria Narrative:
Premises (Security) Diagram Provided: Score 20 20 15 10
Diagram is drawn to correct scale: Score 5 5
Diagram provides required details for premise: Score 5 5
Diagram shows the location of all security cameras: Score 5 5
Descriptions of activities to be conducted in each area of the premise 5 5
Limited-Access Areas Clearly Marked: Score 5 5
Number and Location of All Security Cameras Identified: Score 5 5
5.2 Sub-Total:50 0
Intrusion Alarm and Monitoring System Identified: Score 15 15
Name and Contact Information for Monitoring Company Provided: Score 5 5
Total Points of Entry into Premise Identified: Score 5 5
All Points of Entry to be Alarmed Identified:5 5
Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10
Backup Power Supply Identified: Score 10 10
5.3 Sub-Total:50 0
Written Cash-Handling Procedure Provided: Score 30 30 20 15
Dual-Custody is Practiced for all cash handling: Score 10 10
Video Surveillance Used to Monitor All Cash Handling: Score 20 20
Armored Car Service Used for Bank Deposits: Score 10 10
All Cash Deposited weekly with Bank: Score 10 10
Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20
5.4 Sub-Total:100 0
CCB will use onsite security guards: Score 10 10
All onsite guards will be licensed and bonded: Score 10 10
All onsite security guards will be licensed to carry firearms: Score 10 10
Onsite security guards will be on duty before CCB opens for business: Score 10 10
Onsite security guards will be on duty after CCB closes for business: Score 10 10
5.5 Sub-Total:50 0
Section 5 Total:300 0
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:
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 1: Business Plan Total Points:
Section 2: Social Policy & Local Enterprise Total Points:
Section 3: Neighborhood Compatibility Total Points:
Section 4: Safety Plan Total Points:
Section 5: Security Plan Total Points:
Total Points Achieved:
PASS
TOTAL SCORE
OWNERSHIP ACKNOWLEDGEMENT FORM
FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
It is the intent of the City of Fresno to promote equitable ownership and employment opportunities in the cannabis industry to
decrease the disparities in life outcomes for marginalized communities and to provide opportunities for local residents to
compete for cannabis business permits. Therefore, this notice is to clarify the eligibility requirements in order to receive
qualification as a Social Equity Applicant or points for Local Preference by establishing this acknowledgement to provide
additional protections to mitigate against potential predatory practices.
In order to qualify as a social equity applicant, or for the full points relating to the local preference criteria, the business entity
must have ownership that meets the respective eligibility factors and hold at least 51% ownership interest. The social equity
eligibility requirements are identified in FMC section 9-3316(b)(6), while the local preference criteria is identified in FMC 9-
3317(a) and the application evaluation criteria 2.5 (Appendix A). This majority interest can be made up of a single individual that
meets this criteria, or any combination of individuals that hold at least 20% interest individually and meet the definition of an
owner in FMC 9-3304(j). The cannabis social equity permits, and the local preference criteria are intended for the benefit of the
Social Equity or Local Preference Individual Applicants related to business profits, proceeds of the sale of business assets, voting
rights and additional protections. This also requires the Social Equity or Local Preference Owner to receive the Equity Share
percent of the retained earnings and 100 percent of the unencumbered value of each share of stock, member interest or
partnership interest owned in the event of the dissolution of the entity to their equity share, or 100 percent of the value of each
of stock, member interest or partnership interest in the event that the stock, member interest or partnership interest is sold.
Chief among the concepts of equity share, is unconditional ownership which means such individual(s) will receive equal profits,
and distributions or other payments proportionate to their ownership interests. This is intended to ensure true ownership by the
Social Equity or Local Preference Individual Applicant and as such, prohibits the divestment or relinquishment of any part of their
ownership under any circumstance. In addition, the Equity Share is also expanded to address voting rights on fundamental
decisions relating to the business and control of at least the equity share percent of the voting rights on all decisions involving
the operation of the business. Furthermore, it requires the Social Equity or Local Preference Individual owner be the highest
officer position of the business or that another individual is appointed to that position by mutual agreement of the parties. This
requirement is also subject to being audited to assess compliance and the Social Equity or Local Preference Owner can initiate
legal action due to a breach of contract agreement, and the City may suspend and/or revoke a license if any provision in an
operating agreement violates any of the Equity Share or Local Preference requirements. Lastly, all applicants will be required to
incorporate an addendum into their operating agreements that makes any provision ineffective, unenforceable, null and void, if
it is inconsistent with, or in violation of, the Equity Share requirements. As proposed, Social Equity Applicants or Local Preference
Applicants will be required to verify under Section 9-3316(b)(6), 9-3317(a), and Criteria 2.5 of appendix A that they meet the
definition of a Social Equity or Local Preference Owner at the time of applying for a permit or permit renewal. The City shall have
the sole and absolute discretion to determine whether the Applicant qualifies as a Social Equity Applicant and the number of
points for Local Preference.
The undersigned acknowledges that he/she has read and fully understands the content of this Agreement and is
the Applicant or his/her/its authorized signatory.
__________________________________________________ __________________________________________________
Applicant Signature Date Signed
__________________________________________________ __________________________________________________
Print Name Title
__________________________________________________
Company Name Address/Telephone
12-16-2020
Eddie Rodriguez CEO
Truffle Tree 420