HomeMy WebLinkAboutCC Reso 2017-01 RESOLUTION NO. 2017- 01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY, CALIFORNIA, ESTABLISHING GUIDELINES FOR
THE PROGRAM TO ASSIST BUSINESSES DISPLACED BY A CITY
APPROVED CANNABIS BUSINESS.
WHEREAS, on October 26, 2016, the City Council approved an amendment to
the FY 2016-2017 budget that included $50,000 to establish a fund to provide
assistance to businesses involuntarily relocating as the result of a City approved
cannabis business moving into their existing location. The budget amendment
established the funding in the General Fund using revenues anticipated to be generated
through the taxes paid by cannabis businesses; and
WHEREAS, staff was directed to develop proposed procedures for administering
the relocation assistance program for City Council approval; and
WHEREAS, on December 14, 2016, the City Council was presented with the
proposed procedures for the program and provided suggested revisions that would be
brought back to Council for final approval in the form of a Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City Council does hereby establish the following guidelines for
the Displaced Business Assistance Program ("Program") for businesses and persons
("Displaced Person") displaced by a cannabis business ("Cannabis Business") that has
been approved by the City or has submitted an application for approval by the City:
1. Displaced Persons who sell, lease, or otherwise transfer their business, lease or
property to a Cannabis Business are not eligible for assistance under the
Program.
2. Displaced Persons having a lease or rental agreement that is terminated by the
landlord (lessor) in favor of a Cannabis Business may be eligible for the Program.
Displaced Persons are not eligible unless the primary reason for termination of
their lease or rental agreement is due to intended sale or lease of the premises to
a Cannabis Business by the landlord and not due primarily to tenant violations of
the lease or rental agreement.
Displaced Persons must submit the following documentation along with their
request for assistance to the City in order to qualify for assistance:
a. A copy of the lease or rental agreement that was in effect at the time of
termination and a copy of the notice of termination along with the written
notice of termination provided by the landlord. The City may also request
copies of correspondence between the landlord and tenant relevant to the
termination.
b. Receipts documenting the Displaced Person's payment of all reasonable
relocation expenses for which the Displaced Person is requesting
reimbursement. Reasonable relocation expenses include expenses
incurred by the Displaced Person to vacate the existing premises and
move into new premises and may include reasonable packing and moving
expenses, interim storage fees, and similar costs directly related to the
relocation and reasonable in amount. Refundable deposits and expenses
refundable to the Displaced Person from the prior or new landlord or
insurance or other sources are not eligible for reimbursement under the
Program. The City Manager shall have authority to determined what
expenses are eligible for reimbursement under the Program.
c. Documentation of any payment received from the lessor as compensation
for the remaining term of the lease. Any such payments received will
reduce Program assistance provided to the Displaced Person dollar for
dollar.
d. The Displaced Person must relocate their business within the City of
Cathedral City to be eligible for assistance under the Program. The
Displaced Person must provide a fully executed copy of the new lease for
the property to which the business has relocated or purchase documents
for new premises including a recorded deed.
e. City Staff will verify that the displacing Cannabis Business has filed an
application for or has been granted local license and/or CUP for a
cannabis business by the City in the former location.
f. The Displaced Person will be eligible for assistance equal to 50% of
eligible relocation expenses incurred up to a maximum of $20,000. The
payment will be considered a forgivable low interest loan by the City.
The City Manager may grant a hardship exception allowing an advance of
assistance prior to eligible costs being incurred provided the City Manager
verifies that the circumstances evidence an actual economic hardship on
the Displaced Person.
g. Assistance under the Program shall be in the form of a low interest
forgivable loan from the City to the Displaced Person. The Displaced
person must sign a promissory note in the form provided by the City
memorializing the loan before any assistance will be provided. The term
of the loan shall be for five (5) years and the outstanding balance of the
loan shall bear simple interest at three percent (3%) per annum. The
Displaced person shall be required to make five (5) annual equal
installments on the loan with each installment equal to twenty percent
(20%) of the then outstanding balance. However, each annual installment
payment will be held in abeyance and the amount of the installment due
shall be forgiven from the loan, provided that Displaced Person's business
remains in continuous operation in Cathedral City for the year for which
the annual installment is due and the Displaced Person meets the other
requirements of the Program. Thus, if a business stays in business at the
location for the full five (5) years, the entire outstanding balance of the
loan will be forgivable.
h. The Displaced Person must reopen as the same type of business.
i. The Displaced Person's business must remain in "good standing" in that it
shall remain in compliance with City ordinances, not become a public
nuisance, not be suspended by the state, and not be in default of the
relocation assistance agreement.
3. Displaced Persons having an expiring lease or rental agreement that is not being
renewed, or who are operating without a written lease or rental agreement shall
submit the following documentation along with their request for assistance:
a. A copy of the lease or rental agreement that is expiring or has expired and
a copy of the notice of or non-renewal. If the Displaced Person has been
operating without a written lease or rental agreement they shall submit a
statement signed by both the Displaced Person and the landlord indicating
that there is not a written lease or rental agreement, but shall identify the
relevant terms between the parties.
b. The information required under Section 2 b and c above.
c. The Displaced Person must relocate their business within the City of
Cathedral City to be eligible for assistance under the Program. The
Displaced Person must provide a fully executed copy of the new lease for
the property to which the business has relocated or purchase documents
for new premises including a recorded deed.
d. City Staff will verify that the displacing Cannabis Business has filed an
application for or has been granted local license and/or CUP for a
cannabis business by the City in the former location.
e. The Displaced person will be eligible for assistance in the amounts and
under the terms provided in Section 2. "g" through "i" above and shall
comply with those terms.
4. Assistance packages of up to $5,000 may be approved by the City Manager
upon satisfactory documentation of program requirements. Assistance packages
of$5,000 or more will require Council approval.
5. The Council has authorized $50,000 for the Program. Funds will be allocated to
qualifying businesses in the order in which requests are received. Once the
funds are exhausted no additional requests will be accepted unless the Council
acts to authorize additional funding.
SECTION 2. By adoption of this Resolution, the City Council is establishing the
aforementioned as guidelines for the Business Relocation Assistance Program.
SECTION 3. This Resolution shall take effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Cathedral City held on this 11th day of January, 2017, by the following
vote:
Ayes: Council Members Kaplan, Carnevale and Aguilar; Mayor Pro Tem
Pettis and Mayor Henry
Noes: None
Absent: None
Abstain: None
Stanley `!nry, M. •r
ATTEST:
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Gary F. Howell;.City leek
APPROVED 'S TO FORM:
•
Eric S. Vail, City Attorney