Report to Mayor and City Council
Tuesday, January 14, 2020
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER A RESOLUTION TERMINATING DEVELOPMENT AGREEMENT WITH FOCAL STRATEGIC INVESTMENTS, LLC, ON BASIS OF CHARGES OF MATERIAL DEFAULT NON-TIMELY PERFORMANCE (CITY COUNCIL)
Body
I. SUMMARY
On November 30, 2018, the City entered into a Development Agreement (the "DA") with Focal Strategic Investments, LLC ("Focal") for the development of two one-story buildings totaling 13,557 square feet on a 0.66 acre lot, which will be used for commercial cannabis operations including the cultivation of cannabis, manufacturing of cannabis products, and storage of residual materials from cannabis cultivation (the "Project").
The DA incorporated a Schedule of Performance for the submission of plans and design review applications, which Schedule is attached hereto at Exhibit No. 1. To date, Focal has not submitted Project site plans and design review applications to the City within the timeframes required, much less timely fulfilled the other obligations following such review and approval of those plans. Project site plans and design review applications were supposed to be done within 30 days after the DA's effective date, or January 4, 2019. Focal is thus more than one year in arrears on the Project Schedule and has not cured such timeliness defaults.
City has issued Focal multiple Notices of Default, engaged Focal in a "meet and confer" process to discuss issues of default, and issued a final "Notice of Termination" setting the DA for possible termination by the City Council pursuant to the terms of the DA. All such correspondence relating to default and potential DA termination from the City to Focal are attached hereto as Exhibit No. 2.
Simultaneous with the pending discussions of default, Focal informed the City that it plans to undertake various internal corporate organizational assignments that, pursuant to the terms of the DA, would require app...
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