(a) The applicant or the applicant’s agent(s) has made one or more false or misleading statements or omissions in the application or during the application process.

(b) The proposed premises or commercial cannabis production activity at the premises is not allowed by state law or city law.

(c) The applicant is not a legal representative of the proposed cannabis permittee.

(d) The applicant or any of its officers, directors, owners, managers, or employees is under 21 years of age.

(e) The applicant’s facility or its location is in violation of any building, zoning, health, safety, or other provision of this chapter or of any state or local law that substantially affects the public health, welfare, safety, or morals, or the facility or its location is not permitted in the proposed area, or the issuing or continuation of a cannabis permit would be contrary to the public health, welfare, safety, or morals.

(f) The applicant or any of its officers, directors, owners, managers, or employees has been sanctioned by the city, state, or any county for unauthorized cannabis activities or has had a registration revoked under this chapter in the previous three years.

(g) The applicant or the applicant’s agent(s) has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.

(h) The applicant has not been or is not in good standing with the city related to other or previous business activities operated in the city.

(i) The applicant has not satisfied all requirements of this chapter.

(j) For good cause, as defined in this chapter.

(a) Carry liability insurance in the amounts and types set by the city manager or the city manager’s designee, and name the city as an additional insured on all such insurance policies.

(b) Execute an indemnification agreement prepared by the city that fully indemnifies the city for all liabilities associated with the cannabis permit, the cannabis permittee’s commercial cannabis production activities, and any action taken by the cannabis permittee pursuant to this chapter. Such indemnification may be set forth in the applicable development agreement.

(c) Defend the city, at the cannabis permittee’s sole expense, in any action against the city or its agents, officers, officials, or employees associated with the cannabis permit, the cannabis permittee’s commercial cannabis production activities, or any action taken by the cannabis permittee pursuant to this chapter. The city may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the cannabis permittee of its indemnification and reimbursement obligations.

(d) Reimburse the city for all costs, expenses, fees, and attorney’s fees incurred by the city related to any action against the city or its agents, officers, or employees associated with the cannabis permit, the cannabis permittee’s commercial cannabis production activity, or any action taken by the cannabis permittee pursuant to this chapter.

(a) Any cannabis permittee may not sell, transfer, pledge, assign, grant an option, or otherwise dispose of his or her ownership interest in the commercial cannabis production business authorized pursuant to the cannabis permit.

(b) In order for a cannabis permittee to transfer its cannabis permit to any person, such cannabis permittee must submit a transfer application to the city manager or city manager’s designee. The city manager or designee may create a transfer application and reasonable transfer application process, including mandatory fee, that cannabis permittees and the city must follow and pay for cannabis permit transfer requests. Each transfer request of a cannabis permit and the related transfer application is subject to the prior approval of the city manager or designee.

(c) Applicants for cannabis permits must show proof of lawful possession of the applicable location. Evidence of lawful possession consists of properly executed deeds of trust, leases, and other written instruments, as may be accepted by the city.

(d) The location shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession. No cannabis permittee is authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the city, regardless of any possessory interest or right to possession to such additional space. No cannabis permittee shall add additional contiguous units or areas, thereby altering initially approved premises, without filing an application to modify the location on forms prepared by the city manager, including any applicable processing fee.

(e) No cannabis permittee is authorized to sublet any portion of any premises for any purpose unless all necessary forms and applications to modify the existing location to accomplish any subletting have been approved by the city.

(f) The city manager shall develop and promulgate a process for the renewal of cannabis permits and the establishment of related fees, in accordance with applicable laws.

(a) After issuance of a cannabis permit, the cannabis permittee shall not make any physical change, alteration, or modification to the premises that materially or substantially alters the location, production estimates, and/or usage of the location from the plans originally approved under the applicable development agreement, without the prior written approval of the city council or designee. The cannabis permittee whose premises are to be materially or substantially changed is responsible for filing an application with the city in order to obtain requisite approval.

(b) Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following: (i) an increase or decrease in the total physical size or capacity of the location; (ii) the sealing off, creation or relocation of a common entryway, doorway, passage, or other such means of public ingress and/or egress, when such common entryway, doorway, or passage alters or changes limited access areas; or (iii) the installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage.

(c) The city council or designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the cannabis permittee and payment of any applicable fee, subject to any requisite amendments to the applicable development agreement. The cannabis permittee must submit all information requested by the city council or designee including, but not limited to, documents that verify the following: (i) the cannabis permittee will continue to have the exclusive possession of the premises, as changed, by ownership, lease, rental agreement, or other means, and sole control over all activities; and (ii) the proposed change conforms to any and all city restrictions related to the time, manner, and place of regulation of the applicable commercial cannabis production activity. (Ord. 730 § 20, 2022).