Additional Commercial Cannabis Permit Program Policies – Effective October 10, 2022

“Any persons or entities who fail to provide a complete application more than 30 days after first reading, have 30 days to perform on their second reading or 30 days to submit a complete application for a revised development agreement in place of the development agreement that was approved for a first reading.  Failure to do so will result in a rejection of the applications.”

“Any persons or entities without an active application for over one year must submit a complete Development Agreement application within 30 days of the effective date of the administrative policy.  Failure to do so may subject the applicant to immediate disqualification.” 

CCP Operator Status - As of 8/1/2022

Update 06/14/2022

 In compliance with court ruling, on May 10, 2022 City Council approved 2^nd reading for the ordinances approving development agreements related to Application Nos. 18-003, 18-019, 18-064, and 18-094, in order to address a procedural defect related to the second reading conducted on May 7, 2019.

• Planning Commission reviewed the request on April 27, 2022 and adopted resolution making recommendation to the City Council to adopt an Ordinance approving the Development Agreement related to CCP Application No. 18-028.
• On May 10, 2022 City Council approved 1^st Reading of and approved 2^nd reading on June 14, 2022.

                                                           Update 04/12/2022

• Planning Commission reviewed the request on February 23, 2022 and adopted resolution making recommendation to the City Council to adopt an Ordinance approving the Development Agreement related to CCP Application No. 18-026.

   

• On March 8, 2022 City Council approved 1^st Reading of and approved 2^nd reading on April 12, 2022.

• In compliance with court ruling, on April 12, 2022 City Council approved 2^nd reading for the ordinances approving development agreements related to Application Nos. 18-002, 18-009, and 18-036, in order to address a procedural defect related to the second reading conducted on May 7, 2019.

• Planning Commission reviewed the requests on December 21, 2021 and adopted resolutions making recommendations to the City Council to approve Amended and Restated Development Agreements by adopting uncodified ordinances, replacing Development Agreements Nos. 724 and 727.

• On February 8, 2022 City Council approved 1^st Reading of and approved 2^nd reading on February 22, 2022.

Update 1/11/2022

• On January 11, 2022 City Council approved 2^nd Reading to adopt uncodified ordinance to approve Amended and Restated Development Agreement, replacing Development Agreement No. 721. First reading was approved on July 6, 2021.

Update 12/08/2021

• A public notice was published for the Planning Commission to consider the repeal of Ordinance No. 723 during a Special Planning Commission meeting on September 29, 2021. At staff’s recommendation, the Planning Commission continued the item to the regularly scheduled meeting on October 27, 2021, in order to provide the operator a final opportunity to comply with the terms of their development agreement. The operator failed to comply, and on October 27, 2021 the Planning Commission proceeded with the hearing and recommended that the City Council adopt an Ordinance to repeal Ordinance 723 to revoke Development Agreement No. 723.

   

• On November 16, 2021 City Council approved 1st Reading and approved 2^nd Reading on December 7, 2021.

Update 12/07/2021

 Planning Commission reviewed a request on October 27, 2021 and adopted a resolution making recommendation to the City Council to approve a new Development Agreement for CCP Application No. 18-006 by adopting an uncodified ordinance.

• On November 16, 2021 City Council approved 1st Reading and approved 2^nd Reading on December 7, 2021.

 Update 10/05/2021

• Planning Commission was scheduled to consider requests on August 25, 2021, but meeting was cancelled due to the lack of quorum. The meeting was rescheduled to September 8, 2021 where the Planning Commission reviewed the requests and adopted resolutions making recommendations to the City Council to approve an Amended and Restated Development Agreement replacing Development Agreement No. 717, and approve Development Agreement for CCP Application No. 18-013.

   

• On September 21, 2021 City Council approved 1^st Reading and approved 2^nd Reading on October 5, 2021.

• Planning Commission reviewed the requests on June 23, 2021 and adopted resolutions making recommendations to the City Council to approve Amended and Restated Development Agreements by adopting uncodified ordinances, replacing Development Agreements Nos. 711 and 721.

   

• On July 6, 2021 City Council approved 1st Reading of two (2) uncodified ordinances and on July 20, 2021 approved 2nd Reading for only one (1) uncodified ordinance (GE United Technologies, LLC).

Update 05/18/2021

• Planning Commission reviewed the requests on March 24, 2021 and April 28, 2021 and adopted resolutions making recommendations to the City Council to approve Amended and Restated Development Agreements by adopting uncodified ordinances, replacing Development Agreements Nos. 715 and 718.
• On May 11, 2021 City Council approved 1^st Reading and approved for 2^nd Reading on May 18, 2021. 

Updated information as of 4/5/2021

Planning Commission reviewed the requests on March 24, 2021 and adopted resolutions making recommendations to the City Council to approve either First Amendments to Development Agreement Nos. 715 and 718 or to enter into new Development Agreements replacing Development Agreement Nos. 715 and 718. (Scheduled for City Council consideration on April 6, 2021)

Update 03/16/2021

CCP Proposed Revisions

On March 16, 2021, City Council discussed potential revisions to Ordinance No. 700 which were initially proposed by staff on July 21, 2020 with some additional adjustments that CCP staff has begun to analyze.

Please click on the link below to view the corresponding staff report and PowerPoint presentation.

• Cannabis Presentation_3 16 21_
• SR_CCP Proposed Revisions_03.16.21

Update 07/21/2020

CCP Proposed Revisions

On July 21, 2020, City Council was introduced potential revisions to cannabis Ordinance No. 700.

Please click on the link below to view the corresponding staff report and PowerPoint presentation.

• CCP Update Council
• SR_CCP Proposed Revisions_07.21.2020

Update 01/07/2020

 Update 8/9/19

Applications Recommended for Approval by Planning Commission on July 30, 2019 after Planning Commission Re-Considered new locations, as Previously Directed by the City Council. City Council Consideration for a Future TBD Date (2 Total).

Applications Recommended for Approval by Planning Commission on July 30, 2019 and were Considered or Previously Tabled by Planning Commission and Scheduled for City Council Consideration TBD Date (2 Total).

Applications Recommended for Denial by Planning Commission on July 30, 2019 and Scheduled for City Council Consideration TBD Date (1 Total).

Applicant Requested to be Tabled by Planning Commission on July 30, 2019 and Re-scheduled for Planning Commission Consideration on August 21, 2019. City Council Consideration for a Future TBD Date (1 Total).

Applications Approved by the City Council on April 16, 2019 or April 30, 2019, which were Approved for 2nd Reading on May 7, 2019 (23 Total).

Updated Information as of 7/7/2020

Proposed development agreement and ordinance 737 related to an amendment to development agreement 717 and application #18-017 (2SBK, Inc.) will be submitted to the voters on November 3, 2020 for approval.

Proposed development agreement and ordinance 738 related to an amendment to development agreement 715 and application #18-059 (Commerce Concentrates, LLC) will be submitted to the voters on November 3, 2020 for approval.

Proposed development agreement and ordinance 740 related to an amendment to development agreement 720 and application #18-047 (Summit Manufacturing, LLC) will be submitted to the voters on November 3, 2020 for approval.

Proposed development agreement and ordinance 741 related to an amendment to development agreement 733 and application #18-023 (A&E Investment Group, LLC) will be submitted to the voters on November 3, 2020 for approval.

Proposed development agreement and ordinance 743 related to application #18-013 (RD Commerce, LLC) will be submitted to the voters on November 3, 2020 for approval.

Proposed development agreement and ordinance 744 related to application #18-053 (RS Innovations, LLC) will be submitted to the voters on November 3, 2020 for approval.

* Additional information related to those development agreements that will be submitted to the voters for approval will be provided at a later date.

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Proposed development agreement and ordinance 739 has been repealed by the City Council. The proposed development agreement was related to Applicant #18-052 (DJCC Corporation) which has also been disqualified.

Proposed development agreement and ordinance 745 has been repealed by the City Council. The proposed development agreement was related to Applicant #18-005 (Heng Xin Int’l Corporation) which has also been disqualified.

Proposed development agreement and ordinance 746 has been repealed by the City Council. The proposed development agreement was related to Applicant #18-046 (Septem Leaf, Corp.) which has also been disqualified.

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Proposed development agreement 736 which was an amendment to ordinance 726 has been repealed by the City Council, at the request of the applicant. The development agreement and ordinance 726 related to Applicant #18-026 (VK Labs, LLC) remains in effect.

Proposed development agreement and ordinance 742 has been repealed by the City Council, at the request of the applicant. The development agreement relates to Applicant #18-006 (California Green World, LLC).

Update 5/13/19 

Applications Approved by the City Council on April 16, 2019 or April 30, 2019, which were Approved for 2nd Reading on May 7, 2019).

Application Approved for 1st Reading by the City Council on May 7, 2019 (1 Total).

Applications Recommended for Denial by Planning Commission and Tabled by the City Council Consideration for a Future TBD Date after Planning Commission Re-Consideration with Sites Subject to Change (3 Total).

Applications Considered or Previously Tabled by Planning Commission and Scheduled for Planning Commission Consideration TBD and City Council Consideration TBD (3 Total).

Applications Recommended for Approval by Planning Commission on July 30, 2019 after Planning Commission Re-Considered new locations, as Previously Directed by the City Council. City Council Consideration for a Future TBD Date (2 Total).

Applications Approved by the City Council on April 16, 2019 or April 30, 2019, which were Approved for 2nd Reading on May 7, 2019).

Application Approved for 1st Reading by the City Council on May 7, 2019 (1 Total).

Applications Recommended for Denial by Planning Commission and Tabled by the City Council Consideration for a Future TBD Date after Planning Commission Re-Consideration with Sites Subject to Change (3 Total).

Applications Considered or Previously Tabled by Planning Commission and Scheduled for Planning Commission Consideration TBD and City Council Consideration TBD (3 Total).

Applications Recommended for Approval by Planning Commission on July 30, 2019 after Planning Commission Re-Considered new locations, as Previously Directed by the City Council. City Council Consideration for a Future TBD Date (2 Total).

Update 5/7/19 

Applications Approved for First Reading by the City Council on April 16, 2019 and on April 30, 2019. (Scheduled for 2nd Reading on May 7, 2019).

Applications Recommended for Denial by Planning Commission and/or Continued by the City Council on April 30, 2019 (Scheduled for May 7, 2019) (1 Total).

Applications Recommended for Denial by Planning Commission and Tabled by the City Council Consideration for a Future TBD Date (3 Total).

Applications Considered or Previously Tabled by Planning Commission and Scheduled for Planning Commission Consideration TBD and City Council Consideration TBD. (3 Total).

Applications Denied by the City Council on 4/30/19 (2 Total).

Update 4/26/19 

Applications Approved by the City Council on April 16, 2019 or April 30, 2019, which were Approved for 2nd Reading on May 7, 2019).

Application Approved for 1st Reading by the City Council on May 7, 2019 (1 Total).

Applications Recommended for Denial by Planning Commission and Tabled by the City Council Consideration for a Future TBD Date after Planning Commission Re-Consideration with Sites Subject to Change (3 Total).

Applications Considered or Previously Tabled by Planning Commission and Scheduled for Planning Commission Consideration TBD and City Council Consideration TBD (3 Total).

Applications Recommended for Approval by Planning Commission on July 30, 2019 after Planning Commission Re-Considered new locations, as Previously Directed by the City Council. City Council Consideration for a Future TBD Date (2 Total).

Update 4/22/19 

Applications Recommended for Approval by Planning Commission and Approved by the City Council on April 16, 2019. (Scheduled for 2nd Reading on May 7, 2019) (13 Total).

Applications Recommended for Approval by Planning Commission and Continued by the City Council on April 16, 2019. (Scheduled for April 30, 2019 at 5:00 p.m.) (4 Total).

Applications Recommended for Denial by Planning Commission (Scheduled for City Council Consideration on April 30, 2019 at 5:00 p.m.) (7 Total).

Applications Not Yet Considered or Previously Tabled by Planning Commission and Scheduled for Planning Commission Consideration on April 24, 2019 and City Council Consideration on April 30, 2019. (7 Total).

*Highlighted = Returning to PC due to noticing error on proposed use.

  Update 4/9/19

 (17) Applications Recommended for Approval by the Planning Commission 1/30/19, 2/13/19 & 3/20/19 (Scheduled to be Presented to City Council on 4/16/19).

(7) Applications Recommended for Denial by Planning Commission (2/13/19 & 3/20/19) (Tentatively Scheduled to be Presented to City Council on 4/30/19 or 5/7/19).

(5) Applications to be presented to Planning Commission (Tentatively Scheduled for 4/24 Planning Commission Meeting).

*Approval without CEQA resolution.

Update 3/8/19

*“Active Selected Applicants" are those applicants that are still being considered by the City for the award of a Commercial Cannabis Permit. Consistent with the City’s Commercial Cannabis process, all “Active Selected Applicants” have been or will be presented to the Planning Commission for their recommendation to the City Council on or before March 20, 2019. All “Active Selected Applicants” will be presented to the City Council for its consideration with either a recommendation for approval or denial from the Planning Commission or as an incomplete application.

City Council Selection of Applicants: Informational Notice

As indicated in the notice issued to Qualified Applicants (NQA), after a competitive process, the City Council, pursuant to Phase III of the application, review and selection process, in its sole and total discretion, is authorized to make final selections of any, all or no applicants to move forward through the required steps and procedures to secure a City Commercial Cannabis Permit (“CCP”). As such, on November 13, 2018, the City Council authorized 33 of 45 qualified applicants to continue with the City's CCP application process, including moving forward to negotiate development agreements with the City.

As previously advised in the NQA, and pursuant to Ordinance No. 700, the decision of the City Council is final; therefore, the City is not accepting requests for further interviews, re-reviews or re-scoring of applications, or releasing any information as to the Review Committee’s scoring methodology or analysis. While we understand there were some clerical errors with the staff report as presented by the staff during the City Council meeting along with a related attachment, the scores of the Review Committee are accurate, fair and complete. None of the errors made on the staff report or the attachments impacted the overall category under which any applicant fell, nor did said clerical errors impact the decision of the City Council as all revisions were made in writing prior to the meeting and read into the record during the meeting. In other words, the City Council made their final selections based on corrected information before them.

The City Council was presented with information as reflected in the November 13, 2018 staff report, and related attachments, and made their selections accordingly. While the selection was not favorable to all 45 applicants, all disclosures regarding the City's application process were explicit in the application, signed by each applicant. More specifically, the application guidelines state the following:

The City may modify, postpone, or cancel this Application at any time, with or without notice, and without any liability, obligation, or commitment to any party, firm, person, entity, or organization.

The City retains the right and discretion to accept or reject any or all Applications, to waive any Application requirement, to waive irregularities and technicalities in any Application, or to direct re-issuance of this Application. Nothing herein shall require or obligate the City to exercise its discretion in any particular manner. No obligation, either expressed or implied, exists on the part of the City to approve any Application, nor does the approval of any Application require the City to subsequently enter into a Development Agreement with said applicant.

In addition to any regulations adopted by the City Council, the City Administrator, or his or her designee, is authorized to establish any additional rules, regulations, policies and standards governing the: application review and approval process; the issuance, denial or renewal of Commercial Cannabis Permits; the ongoing operation of commercial cannabis businesses and the City's oversight of same; and/or concerning any other subject determined to be necessary to carry out the intent and purposes of Ordinance No. 700, including without limitation, establishing time periods to solicit applications, and corresponding deadlines for timely submittals of same to the City, as well as the drafting of any additional, or supplemental forms or applications.

As you may also recall, the following information was explicitly contained in the application form, which each applicant was required to acknowledge, and accept, as evidenced by each applicant’s signature in agreement to said terms:

Please note that all correspondence with the City, including application submittals, and all contents therein and/or information, and documents incorporated into the application, will become the exclusive property of the City and will be public records under the California Public Records Act (Government Code Section 6250 and following). However, the City will maintain the confidentiality of the applications, and their contents before it announces a selection of potential commercial cannabis operators, and to the extent allowed by state and case law, UNTIL a final action is made by City Council, including the approval of a final Development Agreement by a City Council vote. Further, all documents and materials connected or related to the processing of applications, including the review, scoring, and selection process will also be exempt from release during said deliberative process.

As part of this deliberative process, applicants submitted applications that were evaluated by the Review Committee. These applications will be used to negotiate with the applicants selected by Council. While we understand that applicants and the public may have a strong interest in scrutinizing the process leading to the selection of the final applicants, the City’s interest in keeping these applications confidential – and the directly related scoring and ranking process - outweighs the public’s interest in disclosure until negotiations with the selected applicants are complete and final. (Cal. Gov. Code 6255). Conversely, if a selected applicant has access to the specific details of other competing proposals, then the City is greatly impaired in its ability to secure the best possible deal on its constituents’ behalf.

As you know, while the City Council has made selections of applicants to move forward through the City approval processes, said selections are conditional and contingent on an applicant finalizing a development agreement with the City and securing of all final approvals, permits, licenses, authorizations, etc. to lawfully establish a cannabis business in the City.

Accordingly, the detailed analysis provided by the Review Committee, including notes, specific point allocations and other application review information, will not be released by the City to applicants or the public. Further, releasing this information will impact the City’s ability to open the application process in the future by giving existing applicants an unfair advantage over new applicants.

While the City acknowledges the CCP’s rigorous application and guiding ordinance may have posed a challenge for some applicants, it was done so to ensure the applicants that are the most qualified, experienced, prepared and/or keenly in tune with, and aware of, the City’s specific and unique local priorities and needs could objectively succeed in the process. Accordingly, due to the specificity required to meet the standards therein, the overall scores of applicants demonstrates that the process was equitable to all applicants. To put this in perspective, the City through its Review Committee qualified 96% of applicants to move forward to Phase III, where the City Council ultimately authorized 73% of qualified applicants to move forward with development agreement negotiations. Considering these facts in their totality and the language addressing such in the application forms signed by all applicants, the City Council’s selection at this stage of Phase III remains final.

All Qualified Applicants not selected may remain on the City’s Qualified Applicants list for twelve (12) months following the selection date. In the event the City Council authorizes staff to negotiate additional or subsequent development agreements, Qualified Applicants may be given the opportunity to be selected.

At this time, we respectfully request that applicants not selected (who are now considered an interested party) be mindful of the process established and check back with the City after January 1, 2019 for any potential future opportunities. CCP staff is not obligated to respond to inquiries from interested parties, or non-selected applicants, as City Council has made a final decision as to who is a selected applicant. Please remember that failure to adhere to CCP staff directives may result in being disqualified in the future.

 Update 11/13/2018

• City Council Agenda Staff Report for Nov. 13, 2018 - Updated
• City Council Agenda Staff Report for Nov. 13, 2018 - Commercial Cannabis Applications

 Update 10/26/2018

Dear Interested Parties:

As previously directed (see updates below), today is the last day to submit an application with a confirmed appointment only. Walk-in applications are not being accepted and all appointments that were requested pursuant to the guidelines have been issued.

Interested parties are advised to check back after January 1, 2019 for relevant updates or email after January 1, 2019. The City appreciates your mindfulness of the impacts on CCP staff time. Failure to adhere may result in being disqualified from consideration in the future.

If you are an applicant who submitted an application already you will receive more information from ccp@ci.commerce.ca.us on or around November 5. Applicants must adhere to all policies, procedures, guidelines and/or staff directives. Thank you.

Update 10/22/2018

Thank you for your interest in the City of Commerce. Please be advised that the deadline to request an appointment to submit a completed application has officially closed.

For prospective applicants who timely made an appointment and seek information or have questions, please continue to use the following email address: ccp@ci.commerce.ca.us.

To avoid miscommunication, misinformation, non-City-official responses, and/or not having your questions and inquiries addressed or answered, you are once again directed to submit all questions and inquiries in writing to this email address.

Additional supplemental application materials, instructions, rules, policies and/or standards may be issued, and will be published on the City’s website and/or emailed if you have timely made an application submittal appointment. However, please note that it shall be the responsibility of the Applicant to continue to check the City’s website for any updated information to the application process and/or corrections to the applicable applications and forms.

Update 10/16/2018

Effective Immediately

Due to high demand, the city may no longer accept appointment cancellations. Out of consideration for those who have scheduled and kept or intend to keep their appointment, as well as staff resources, if you cancel, re-schedule or fail to show for your appointment, your applications will thus be accepted only as time permits.

If you are unable to make your designated appointment time, you may elect to submit your application on 10/19 between 12:00 p.m. - 4:00 p.m. Applications will be accepted on a "first come" basis.

No applications will be accepted before 12:00 p.m. or after 4:00 p.m.

Please be advised: there is no guarantee that your application will be accepted during the open submission period.

Additionally, again, due to high demand and in an attempt to make the necessary appointment accommodations, the deadline to request an appointment to submit your application is October 22, 2018 at 12:00 p.m.