Council introduces amendments to development agreements for six cannabis businesses, revises community benefit fee terms

Lake Elsinore City Council held a public hearing and introduced by title amendments to the development agreements for six existing cannabis businesses, approving changes to community benefit fee (CBF) terms. The council introduced the ordinances and waived further reading by a 5-0 vote.

Principal Planner Nancy Winn told the council the amendments would apply to six businesses (Modern Leaf/EMBR; Alba Systems; LE Investment Group DBA Mister Nice Guy; Green Origins DBA The Syndicate; IE Lisonbee DBA The Syndicate; and The Healing Tree) and clarified the locations are in M1 and M2 zones and details of existing DA obligations. Staff described the recommended DA changes as: creating separate CBF rates for retail versus non‑retail uses; capping retail CBF at $25 per square foot (with no further 4% annual increases once the ceiling is reached); reducing the non‑retail CBF to $5 per square foot with no annual increase; permitting monthly CBF payments instead of the current annual lump sum; and refining the definition of floor area to distinguish retail from non‑retail.

Planner Winn said the Planning Commission reviewed the amendments and recommended approval by a 5-0 vote. After hearing no public comment, the council introduced and waived further reading for ordinances to amend each listed development agreement (motion by Councilman Sheridan, second by Councilwoman Natasha Johnson); the motion passed 5-0.

The amendments affect the existing DA numbers listed in the staff presentation; staff recommended the changes to improve predictability for operators and to address business concerns about fee levels and cash-flow timing.