Item Coversheet


Subject:Council Consideration of a Development Agreement Between the City of Coalinga and Casey Dalton to Facilitate the Development and/or Use of the Property at 150 W. Durian as a Medical and/or Recreational Cannabis Dispensary and On-Site Consumption Lounge and Related Environmental Considerations
Meeting Date:October 5, 2020
From:Marissa Trejo, City Manager
Prepared by:Sean Brewer, Assistant City Manager


Recommendation from staff is to hold a public hearing and approve the development agreement between Casey Dalton, Owner (Estate of Mine, LLC) and Developer (Coalinga Retail Partners, LLC). For the development of a medical and recreational cannabis dispensary and consumption lounge.


At council direction, staff has been collaborating with the owner of the property located at 150 E. Durian Avenue, Coalinga, California for the development of the property to a medical and recreational cannabis dispensary and consumption lounge.


As required by Government Code section 65090, staff have published a notice of the hearing in the Hanford Sentinel on Thursday, September 24, 2020.  A notice has also been mailed to owners of property within 300 feet of the above referenced property ten (10) days from the hearing.  This notice encourages the public to attend the hearing and provide feedback of the possible development project.  This public hearing must occur in order for the development agreement to be approved.


A city may enter into a development agreement pursuant to California Government Code section 65865(a).  A development agreement must include “the duration of the agreement, the permitted uses of the property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes.  The development agreement may include conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that such conditions, terms, restrictions, and requirements for subsequent discretionary actions shall not prevent development of the land for the uses and to the density or intensity of development set forth in the agreement. The agreement may provide that construction shall be commenced within a specified time and that the project or any phase thereof be completed within a specified time.  The agreement may also include terms and conditions relating to applicant financing of necessary public facilities and subsequent reimbursement over time.” (Government Code section 65865.2.)


When a city is considering the adoption of a development, it must hold a public hearing and provide notice to the public, specifically owners of property within 300 feet of the location for the development.  (Government Code Section 65091.)


The Agreement presented provides an agreement that allows for the development of the property located at 150 E. Durian Avenue, Coalinga into a medical and/or recreational retail cannabis facility and on-site consumption lounge subject to land use entitlement approvals (conditional use permit and regulatory permit).  The Agreement requires that the Developer fully develop the property so that it may be open to the public within one year.


Paragraph 16 of the Agreement also provides that the developer will indemnify the City from any claims for damages stemming from any legal enforcement action against the City in relation to the development of the property.


By adopting the agreement, the City agrees that during the term of the agreement, other than the existing cannabis retail facility located at 286 Coalinga Plaza, it will not grant any conditional use permits or commercial cannabis regulatory permits for operation in the City for a period of ten (10) years or when the City population exceeds twenty-four thousand (24,000) not including in the state facilities or there is any three-month period where the property is not open seventy-five percent (75%) of normal operating hours.


Staff has determined that the approval of the development agreement is not subject to the California Environmental Quality Act (CEQA) since there will be subsequent discretionary approvals that will be subject to further CEQA review. 


Council may reject the Development entirely or suggest changes to the agreement.


Anticipated additional local taxes would be generated but at an unknown amount.

File NameDescription
CCP_Coalinga_--_Development_Agreement_(9.23.2020)_Signed_by_Casey.PDFCCP Coalinga - Development Agreement