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HomeMy Public PortalAboutOptima Wellness Application 11-15-19 Optima Wellness/ LLC Application forAdult Use Marijuana Establishment November 15, 2079 00 l �dlll/w Ir I rt-111-19 �, .. I�1.t r 7'. •4 y TABLE OF • Cover Letter 3 Business Plan 4 Business Operations 7 Draft Host Community Agreement 13 Site Plan With Zoning Compliance Table 21 Floor Plan 22 Environmental Impact Statement 23 Traffic Impact Statement 25 Security And Operations Summary 29 2 COVER LETTER November 151h, 2019 BY ELECTRONIC DELIVRY Department of Community Development and Planning Town of Watertown,Administration Building 149 Main Street, Watertown, MA 02472 Attn: Steve Magoon, Director Re: Application for a Host Community Agreement for a Marijuana Retail Establishment at 55 Mount Auburn Street, Watertown, Massachusetts Dear Mr. Magoon, Please find the required documents for Optima Wellness's application for a Host Community Agreement and License to Operate an Adult-Use Marijuana Retail Establishment at 55 Mount Auburn Street. We hereby submit the following items for filing with the Department of Community Development and Planning. • Draft Host Community Agreement • Site Plan with Zoning Compliance Table • Floor Plan • Environmental Impact Statement • Traffic Impact Report • Security and Operations Summary • Company/Applicant Business structure and summary of business plan and operations Thank you for your assistance in this matter. Best, grt�ce N%chter Bryce Nichter 3 BUSINESS PLAN ABOUT Optima Wellness, LLC ("Optima Wellness") is a two extraction facilities as multiple medical small company within a large network of retail dispensaries within Northern California. In experienced industry professionals. This 2017, David developed Zabala Farms, an 8 acre network allows Optima Wellness access to time parcel in Salinas, California, consisting of tested knowledge, experience, and best 145,000 square foot light deprivation practices. Optima Wellness is pursuing the greenhouse where he acted as CEO. In addition opportunity of opening and operating an adult- to David's work experience throughout use marijuana retail center in Watertown. California, he has spent the past two years Optima Wellness is committed to providing the consulting with cannabis companies throughout highest quality natural products that are the United States. responsibly sourced and developed by industry leaders to be safe for adult-use consumption. Bryce Nichter Optima Wellness believes that maintaining these standards will allow the company to Bryce Nichter's cannabis career started 12 years become the leading cannabis retailer in ago after his studies for a double Bachelor's in Watertown and provide the best example of a Biology and Environmental Studies at UC Santa responsible adult-use cannabis organization. Cruz. Over the past decade, Bryce has acted as the primary developer in multiple Cannabis PRINCIPALS Dispensaries, Cannabis Real Estate Developments, Cultivation and Manufacturing David Sheehan projects. Bryce has developed over 25 cultivation facilities; contemporaneously David graduated from East Carolina University, managed over 1.25 Million square feet of majoring in Finance. He then moved to cultivation, manufacturing and distribution California and obtained his J.D. from Whittier facilities; and has consulted several Law School. Following his education, David international Cannabis and CBD projects. Bryce began his legal career in Virginia, shortly is a co-founder of and partner in Zen thereafter going into private practice and Organization Inc., a management company branding DPS Law, in Charlotte, NC. Over the developing and overseeing upwards of 5% of next 8 years, he focused his practice in Personal Washington State's recreational licensed Injury and Domestic Litigation, becoming a production and processing market share. As Million and Multi-Million Dollar Advocate by the Chief Operating Officer from 2015 to 2018, he age of 32. During his time in Charlotte, David co-developed leading cannabis brands, while was also involved in numerous start-ups as well commanding a staff of 200 employees, as SDR— Unlimited General Contractor. In 2014, operating multiple industrial grow facilities, and David shifted his professional focus towards the managing packaging, fulfillment and processing emerging California Cannabis market. During for 150,000 packaged cannabis products per this time, he scaled multiple indoor cultivation month with over 300 SKU's. facilities in Central California and assisted with the operations, compliance, and distribution of eight commercial cultivation facilities, as well as 4 BUSINESS PLAN Applicant Structure Optima Wellness, LLC is a Massachusetts limited liability company with its principal place of business at 55 Mount Auburn Street, Watertown, Massachusetts 02472. Optima Wellness, LLC is a wholly owned subsidiary of NE Group Holdings, Inc., a Delaware corporation with a registered agent at the address of c/ o Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, DE 19904. Optima Wellness, LLC is owned with the same ownership structure as NE Group Holdings, Inc.The ownership structure is as follows: Bryce Nichter: 50% David Sheehan: 50% Mission Statement. To I ' safe, ' I I II products 1 our customers in conservative I I responsible mannerforging I strong portnership with our local community. Optima Wellness intends to open an adult use understands the critical requirements necessary marijuana retail establishment at 55 Mount to operate a cannabis business within a Auburn Street. The store, consisting of community while serving as a good corporate approximately 5,100 square feet, is the middle citizen and neighbor. Optima Wellness unit of a 4-unit commercial retail building. The principals, Bryce Nichter and David Sheehan, building is set back from the main road and is have the combined experience of operating at located on a larger property consisting of other every level within the highly regulated cannabis commercial businesses. industry; from cultivation, processing, extraction, product packaging, distribution, The execution of our mission statement through transportation to retail. Our team's insights and a successfully operated business is our highest experience will play a key role in a smooth priority. rollout of our proposed retail location. Our principals will be involved at every phase of the Optima Wellness is comprised of cannabis project; from training through implementation industry professionals with a consistent track and proper execution of proven best business record of compliant success, as such, our team practices. Optima Wellness will ensure a positive company culture that promotes our core values of compliance and responsibility. 5 BUSINESS PLAN Optima Wellness intends to operate during Our partnership with the community is key to normal business hours, as defined by our achieving success. The dedicated space Special Permit. We will provide on-site security committed to our waiting room provides many to ensure the safety of our customers, the of the key elements to fulfilling our surrounding community and nearby businesses. commitment to our customers, as well as our Optima Wellness values our customers and will community; from educational opportunities to strive to offer them a safe, clean and welcoming onsite community engagement information and environment, as well as, access to educational events. information and other resources, in order to promote safe and responsible consumption of After our customers pass through our waiting cannabis. room, they will enter the retail space where they will be greeted by additional staff to assist Once a customer arrives at our location, they them with any other questions, or direct them will be directed by signage or parking assistant to one of our 13 Point of Sale (POS) stations, (based on customer traffic volume) to an "Entry where they may make a purchase. After making Only" door. Customers will then enter a large a purchase, customers will then exit through the entry vestibule where they will be greeted by waiting room for any post purchase educational security for proper identification checks in strict materials. Customers will only leave through an compliance with our policies and procedures, as exit vestibule and our"Exit Only' door. well as state law and regulations. Only after completion our of security procedures, will In order to continue our commitment to our customers be allowed to enter our 557 square customer's experience we will offer a customer foot waiting room. support line. Our customer support line will assist with everything from responsible product The construction of a large entry vestibule and consumption to information on participating in large waiting room provides to essential our community engagement events. elements required to fulfill part of our commitment to providing a safe and welcoming Optima Wellness has been derived from the environment to our customers. Additionally, collaborative efforts of industry veterans who the waiting area for our customers will serve to have successfully developed, launched and remove the nuisance to adjacent businesses by operated cannabis businesses. We pride eliminating outside queuing. This approach not ourselves not only on our past business only provides the benefit to our neighboring accomplishments, but on our ability to engage businesses, but also provides our customers our surrounding community through a local with privacy. Within our waiting room, workforce, that emulates a positive and customers will have access to education responsible culture. materials and other resources for self- education. Additionally, we provide a separate area for our highly trained staff to offer consultations on a full range of educational topics, such as; the safe consumption of edibles (no consumption of any cannabis products will be permitted onsite) to classes and community engagement. 6 BUSINESS OPERATIONS a. CONSTRUCTION PHASE HAS MINORITY OR Williams Electric, LLC WOMEN OWNED BUSINESSES (INCLUDING Dexter Williams ARCHITECT, ENGINEERING, CONSTRUCTION) Electrical Contractor 96 Warren Street Optima Wellness has partnered with local Waltham, MA 02453 professionals who are experienced in the cannabis industry. Our partnerships will provide Women Owned Businesses: Watertown with the highest combination of engagement with local companies and Eagle Point Builders, Inc. professionals with cannabis industry specific Theresa L. Moroso experience. Optima has directed all Carpentry, Flooring, Interior Demolition, Paper professionals to provide maximum engagement and Papering with local Watertown contractors, from a focus 54 Burnham Street on engaging minority and women owned Belmont, MA 02478 businesses. While we continue to build out our construction team Optima will continue to Pamela Perini Consulting engage local Watertown based businesses for Pamela Perini inclusion on our project. The list below includes Security Systems & Installation entities and businesses that we have directly 20 Freemont Terrace engaged with or are under contract with a party Waltham, MA 02452 that is currently engaged and services are intended to be utilized. Prudential Door&Window, Inc. Kathleen Moore Construction Team Glass & Glazing Contractors 35 sixth road, Suite D Valiant-America Woburn, MA01801 Christopher M. Tenaglia General Contractor UEL Contractors, Inc. 651 Orchard Street, Suite 202B Pamela Dobeck New Bedford, MA 07244 Sitework Contractors 65 Parker Street Minority Owned Businesses: Clinton, MA 01510 General Pacific, LLC JF Shine Mechanical, Inc. Andre Mai Ann Suffolk Construction & Building Suppliers Plumbing Contractors 15 Main Street, #170 2383 Centre Street Watertown, MA 02472 West Roxbury, MA 02132 Bautista Masonry Corporation Eder Bautista Masonry Contractor 99 Milton Street Waltham, MA 02453 BUSINESS OPERATIONS Architect Engineering Brian Anderson Tony Capachietti Anderson Porter Design Hayes Engineering 875 Main Street 603 Salem Street Cambridge, MA 02139 Wakefield, MA 01880 Brian is a founding Partner of Anderson Porter Design, with over 25 years of experience, and The Engineers at Hayes Engineering work focuses on Cannabis Industry projects. Brian has interactively with various local, state, and now designed facilities for cultivation totaling federal agencies to effectively meet the over 1,500,000sf, and he has designed 14 retail requirements of the permitting process, while dispensaries. He has developed a proven also maintaining the integrity of the design. process of project delivery in the Cannabis Hayes Engineering's designs reflect sensitivity to Industry. Brian is an active member of the Lean the physical environment of the sites, resulting Construction Institute and implements lean in finished products that are both optimally methods in facility design and the construction functional and environmentally compatible. process. Brian merges a RISD education in the craft tradition of making and designing objects with an analytic data driven process learned from his involvement with partner Bill Porter, MIT, and The Lean community. He combines expertise in strategic thinking, designing for industrial agriculture and coordinating specialist teams for the Cannabis Industry. Brian also brings design experience with a specialization in energy efficient design and sustainability. Education: BFA, B.Arch—Rhode Island School of Design M.Arch— Harvard University s BUSINESS OPERATIONS B. SHOW HOW THE BUSINESS IS CONNECTED Optima has also provided our Diversity Plan (SEE TO WATERTOWN AS A COMMUNITY "Demonstrate a commitment to local diversity hiring program") to show not only our Optima Wellness is committed to be a good compliance with CCC regulations, but also our corporate citizen through robust community commitment to our local diversity hiring engagement. Optima has a well-defined initial program. community outreach plan as described below (SEE, Program for relevant community support, D. DEMONSTRATE A COMMITMENT TO LOCAL public outreach, and partnerships with local DIVERSITY HIRING PROGRAM-LOCAL DIVERSITY organizations). Optima Wellness will use the HIRING PLAN results of our community outreach to establish the goals and metrics of our Community Optima Wellness understands and appreciates Engagement Plan. Optima Wellness Community the importance of diversity, and as such, is Engagement Plan will incorporate; local committed to actively working to ensure a program funding, grant support and direct diverse workplace is created in the company. volunteer engagement. These elements along with our commitment to the community will It is our policy to promote equity among create a highly engaged Watertown business. minorities, women, veterans, people with disabilities, and people of all gender identities C. EVALUATE THE COMMONWEALTH'S and sexual orientations in the operation of the REQUIRED POSITIVE IMPACT PLAN AND Marijuana Establishment. To the extent DIVERSITY PLAN AND HOW IT AFFECTS permissible by law, Optima Wellness will make WATERTOWN jobs available to minorities, women, veterans, people with disabilities, and people of all gender The Commonwealth's required Positive Impact identities and sexual orientations, but this does Plan as defined as part of the Cannabis Control not prevent the company from hiring the most Commission (CCC) regulations and published qualified candidates and complying with all guidance, has designated municipalities in the employment laws and other legal requirements. Commonwealth that have been To this end, Optima Wellness will deploy a plan disproportionately impacted by cannabis in for enhancing diversity and equity within the previous years. The twenty-nine municipalities organization through a number of various designated by the CCC does not include outreach efforts. Watertown. Therefore, Optima Wellness Positive Impact Plan would not be applicable to Watertown per CCC regulations. However, Optima Wellness has already begun extensive community outreach within Watertown to provide positive impacts by partnering with local organizations (SEE "Program for relevant community support, public outreach, and partnerships with local organizations"). 9 BUSINESS OPERATIONS Regarding internal policies, Optima Wellness will To the extent reasonably practicable, Optima implement the following policies in connection Wellness shall Implement the following with its diversity plan: programs: GOALS: Advertise in diverse areas, through diverse publications and with career centers to • The Company endeavors to provide job ensure there is broad awareness of opportunities to minorities, women, employment opportunities at its facilities. veterans, people with disabilities, and Specifically, the Company intends to people of all gender identities and sexual advertise with the following: (a) MassHire; orientations and as its employee base (b) local newspapers; and (c) through social grows, it shall be a goal of the Company media platforms. to increase the number of individuals employed by the Company that fall within • Conduct outreach to local community groups the aforementioned target demographics to seek eligible and qualified employees; by 10% of the number of jobs added, or a minimum of 1 job, whichever is greater. • Form a diversity and equality committee to accomplish the goal of being diverse and to • It shall be a goal of the Company to offer promote equitable hiring practices; 100% of the Company's opportunities for advancement to management and • Establish a mentoring program as a tool to executive positions internally, thereby ensure the success of its workforce; providing opportunities to its diverse workforce for advancement. • Provide incentives for all employees, management and ownership to exceed and • The Company shall seek parity in its work participate in the Company's goals and force based on the American Community objectives; Survey (ACS) 2010 U.S. Census. Workforce availability statistics for the • Require employee education on diversity and Total Civilian Labor Force for implicit biases; Massachusetts are as follows: Women 48.8%, Minorities 20.7%, Persons with • To ensure our operations are easily usable by Disabilities 12%, and Veterans 7%. people with disabilities, all of our physical infrastructure will be ADA compliant and • The Company shall endeavor to continue furthermore the Company will have set aside to engage with other businesses in its a budget to accommodate any specific needs community and elsewhere that are of our employees in the way of egress and owned and/or operated by minorities, ingress, hallways, desks, seats, bathrooms, women, veterans, people with disabilities etc. and people of all gender identities and sexual orientation to help with the recruitment of local residents. 10 BUSINESS OPERATIONS • Non-business-related activities will The organizations that we have identified as acknowledge and celebrate all different part of our initial outreach program include; sources of our workforce and our Watertown Community Foundation, Watertown community's valuable diversity. Boys & Girls Club, The Dorothy and Charles Mosesian Center for the Arts. Provided below E. PROGRAM FOR RELEVANT COMMUNITY is a brief summary of the role each SUPPORT, PUBLIC OUTREACH, AND organization plays in the community. These PARTNERSHIPS WITH LOCAL ORGANIZATIONS organizations exemplify the type of partners that Optima Wellness is seeking to engage Optima Wellness is fully committed to serving as with. a good corporate citizen. As such, Optima Wellness has already begun significant The Watertown Community Foundation is a community engagement. Our approach to foundation that works to build and sustain a community engagement is focused on two key vibrant, close-knit community in Watertown for areas; engagement with local organizations for current residents and future generations. the purposes of gaining important feedback on ways to serve the community and address any Watertown Boys&Girls Club is a safe, creative concerns that Optima Wellness can address setting with trained, compassionate adult staff beginning in the planning phase all the way who help guide and coach boys and girls in through design, construction and the eventual academic success, healthy living, character opening of the retail location; and engagement development and peer relationships. with local organizations for the purpose of determining how Optima Wellness can The Dorothy and Charles Mosesian Center for participate directly with these local the Arts is a vibrant multi-disciplinary organizations through funding of local community arts venue. Offerings include visual programs, grants and actual hands on and performing arts productions, classes, and involvement through volunteerism. workshops for all ages, literary/art discussions, and world-class theatrical and musical Optima Wellness is committed to providing performances. employees paid time off to assist local organizations through volunteer work as part of our ongoing community engagement. Optima Wellness will continue our outreach to determine what role each organization is willing to allow us to fulfill; whether it be purposes of gaining important feedback from them or in partnership, where we can provide direct support through funding, grants and employee volunteer work. Zi BUSINESS OPERATIONS F. SUPPORTS LONG-TERM COMMITMENT TO Commitments, policies, programs, incentives or SUPPORTING PROGRAMING ON PUBLIC HEALTH other benefits to mitigate any adverse effects AND DRUG ABUSE PREVENTION (CITIZEN AND associated with the project STAFF) Optima Wellness is committed to working closely with the Town of Watertown, the Optima Wellness' plan to effectively mitigate Watertown Police department, the Cannabis public health and safety concerns will be a Control Commission of Massachusetts and product of the emphasis we place on educating additional Watertown organizations with the our customers about the health risks associated aim of mitigating and preventing risks with their desired product(s). Our staff will also associated with our business. Optima Wellness be well trained in identifying customers who has clear employee policies which state the may be under the influence and/or are non-negotiable fair treatment of customers and displaying risky behavior. Optima Wellness will the objective educating that must be provided if work closely with the Watertown Police desired by a customer. Optima Wellness will Department and not hesitate to immediately require each employee to complete our contact them if an employee feels there is a extensive onboarding training program prior to situation of heightened risk occurring in the officially beginning to work for the company. store or close to the store's premises. Optima Wellness will have a certified security guard on G. FISCAL IMPACT ANALYSIS SHOWING COST premises at all times during store hours. NEUTRAL OR BENEFICIAL FOR THE TOWN Beneficial Public Health and Safety Impacts Optima Wellness will create a significant Optima Wellness employees will serve as beneficial fiscal impact on the Town of educators on the potential risks and uses Watertown. Optima Wellness will offset any associated with recreational marijuana derived costs reasonably related to the retail store products offered for sale at our location. Our through the payment of our community impact employees will be trained to specifically display fee, of up to 3% of our Gross Sales, as outlined no bias towards using any of our products, this in our proposed Host Community Agreement. In way each customer will receive an unbiased, addition to our Host Community Agreement, objective education regarding our product Watertown will benefit by the collection of the offerings. 3% Local Excise Tax on Adult-Use cannabis sales, which is paid by the Commonwealth directly to Mitigation Plan to address the public health and the town. Additionally, Optima Wellness will safety impacts provide for job creation. Job creation goes Optima Wellness looks forward to working beyond just providing jobs to local residents. closely with the Town of Watertown officials, Job creation also spurs an increase in local the Watertown Police Department and any spending by employees at surrounding organizations that raise public health and/or businesses and overall economic development safety concerns that pertain to our business. We for the community. will actively seek to provide preventative practices with the aim of preventing detrimental H. ENVIRONMENTAL IMPACT ANALYSIS public health and/or safety situations. SHOWING HOW ALL IMPACTS ARE OFFSET Please see included Environmental Impact Statement 12 DRAFT HOST COMMUNITY AGREEMENT NE GROUP HOLDINGS.LLC.., HOST COMMUNITY AGREEMENT FOR THE SITING OF AN ADULT-USE MARIJUANA RETAIL ESTABLISHMENT IN THE TOWN OF WATERTOWN This Host Community Agreement(the "Agreement")is entered into this day of , 20_(the "Effective Date")by and between the Town of Watertown,acting by and through its Town Manager,with a principal address of 149 Main St. Watertown,MA 02472 (hereinafter the "Watertown") and[NE Group Holdings,Inc.],with a principal office address of[c/o Cogency Global Inc., 850 New Burton Road Suite 201,Dover,DE 19904] (hereinafter the "Company")(Watertown and Company,collectively the "Parties"). RECITALS WHEREAS, when permitted under local and Massachusetts General Laws, including but not limited to 935 CMR 500.000, et. al. (collectively "State Law"), Company intends to locate a licensed, adult- use, Retail Marijuana Retail Establishment ("RME") for the retail sale of adult-use marijuana and adult-use marijuana products at 55 Mount Auburn Street, Watertown, Massachusetts 02472 (the "Facility"), in accordance with applicable regulations issued the Cannabis Control Commission ("CCC") or such other state licensing or monitoring authority, as the case may be (collectively with the CCC, each a"Licensing Authority," and collectively,the "Licensing Authorities"); WHEREAS, Company desires to comply with G. L. c. 94G, § 3(d), and any successor statutes and regulations, in order to address any reasonable costs imposed upon Watertown by Company's operations in Watertown as provided herein; and WHEREAS, Watertown supports Company's intention to operate an RME for the retail sale of recreational,adult-use cannabis in Watertown at the Facility. WHEREAS, the Parties intend by this Agreement to satisfy the provisions of M.G.L. c. 94G, §3(d), applicable to the operation of an RME in Watertown; WHEREAS,Watertown recognizes this development of the Facility as an RME and the Facility will benefit Watertown and its citizens through increased economic development, additional employment opportunities for residents, and a strengthened local tax base; and WHEREAS,the Parties intend to enter this Agreement as a means of memorializing their obligations with respect to mitigation of these impacts, as well as their intention to collaborate to the fullest extent possible to ensure the proposed improvements and operations occur efficiently. NOW THEREFORE, in consideration of the mutual promises of the Parties contained in this Agreement, and other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 13 DRAFT HOST COMMUNITY AGREEMENT AGREEMENT 1. Community Impact. In order to mitigate the possible financial impact upon Watertown and use of Watertown's resource's, the Company agrees to make payments to the Watertown, in the amounts and under the terms provided herein. The purpose of this Agreement is to assist Watertown in addressing Community Impacts directly proportional and reasonably related to the Company. "Community Impacts" means, collectively,the following potential and actual impacts to Watertown directly relating to or resulting from the construction and operation of the RME such as (i) increased use of Watertown services; (ii) increased use of Watertown infrastructure; (iii) the need for additional Watertown infrastructure, employees and equipment; (iv) increased traffic and traffic congestion; (v) increased air, noise, light and water pollution; (vi) issues relating to public safety and addictive behavior; (vii) loss of Watertown revenue from displacement of current businesses; (viii) issues related to education and housing; (ix) quality of life; and(x)costs related to mitigating other impacts to Watertown and its residents. 2. Host Communitv Pavments. a. RME Annual Payments. In the event that Company obtains a license and any other such license, permit or approval as may be required under State Law, for the operation of a RME in Watertown from the the Licensing Authorities, as the case may be, and receives all required approvals from the Watertown to operate a RME,then Company agrees to the following: i. Company shall pay an Annual Community Impact Fee in an amount equal to three percent (3%) of the gross sales from recreational adult-use cannabis and cannabis-related product sales (collectively "Recreational Cannabis") at the Facility (the "Annual Community Impact Fee"). The term "gross sales" shall mean the total of all sales transactions of the RME without limitation, whether wholesale or retail, and shall include but not be limited to all sales occurring at the Facility, including the sale of adult-use marijuana, marijuana infused products, paraphernalia, and any other products sold by the RME. The Annual Community Impact Fee shall be paid by the Company in quarterly installments, in arears, to Watertown (the "RME Payment"). This payment shall be in addition to any local option tax accepted by the Watertown. ii. The initial RME Payment shall be due within thirty (30) days after the Company's first full fiscal quarter following the date the Company begins operations at the Facility (the "Commencement of Sales") (the "Initial RME Payment"). The RME shall be deemed in operation upon receipt of both an occupancy permit from the Building Commissioner and the issuance of a final license from the CCC. iii. Subsequent payments of the Annual Community Impact Fee shall be paid on a quarterly basis thereafter, due within thirty (30) days of the end of the Company's preceding fiscal quarter for the term of this Agreement. 14 DRAFT HOST COMMUNITY AGREEMENT iv. In the event of a relocation of the RME out of Watertown, an adjustment of the Payment due to Watertown hereunder shall be calculated based on the period of occupation of the Facility with Watertown,but in no event shall the Watertown be responsible for the return of any Payment or portion thereof already provided to Watertown by the Company. 3. Notifications and Accountinp.._Company shall notify Watertown when upon the Commencement of Sales at the Facility and shall submit a letter from a Certified Public Accountant("CPA")to the Watertown to prove the payment amounts at such time as it makes the payments described in Paragraph 2. The Company shall submit annual financial statements to the Watertown at the end of the Company's fiscal year,which shall include certification of itemized gross sales for the previous calendar year, and all other information required to ascertain compliance with the terms of this Agreement,in addition to a copy of its annual filing,to the Massachusetts Secretary of State, if requested by Watertown. Upon reasonable request by Watertown,the Company shall provide Watertown with the same access to its financial records(to be treated as confidential,to the extent allowed by law) as it is required by the Commonwealth of Massachusetts to obtain and maintain a license as a RME for the Facility. The Company shall maintain its books, financial records and any other data related to its finances and operations in accordance with standard accounting practices and any applicable regulations and guidelines promulgated by the Commonwealth of Massachusetts. All records shall be retained for a period of seven(7)years. 4. Term and Termination.The term of this Agreement shall be five(5)years from the Effective Date (the "Term"). This Agreement shall automatically terminate at the end of the Term. In the event the Company's Facility ceases all operations in Watertown,this Agreement shall become null and void, except that the Company shall make any payments owed to Watertown under Paragraph 2 above through the date of termination of the Facility's operations. In the event the Company loses or has its license(s), approvals, and/or permits to operate as an RME in the Watertown revoked by the relevant Licensing Authority(ies)or Watertown,this Agreement shall become null and void.Notwithstanding the above, if the Company has its license suspended, as long as the Company is working in good faith to address the CCC's or the applicable Licensing Authority's concerns and/or requests,this Agreement shall not be deemed null and void until one-hundred and eighty(180)days after the Company's receipt of notice of such suspension. 5. Pavments. The Company shall make the Payments to the Watertown as set forth in Sections 2 of this Agreement. While the purpose of this payment is to assist the Watertown in addressing any public health, safety, and other effects or impacts the Facility may have on the Watertown and on municipal programs, services,personnel, and facilities,the Watertown may expend the Payments at its sole and absolute discretion,provided that such expenditures do not exceed three percent(3%)of the gross annual sales from the Facility except for payments received pursuant to a local option tax. The Watertown understands and acknowledges that, as required by M.G.L. c. 94G, § 3(d),the Payments shall be reasonably related to the costs imposed upon the Watertown by Company's operation 15 DRAFT HOST COMMUNITY AGREEMENT of an RME in the Watertown. Furthermore,the Watertown understands and acknowledges that, pursuant to M.G.L. c. 94G, § 3(d), any cost to the Watertown imposed by Company's operation of an RME in the Watertown shall be documented and considered a public record pursuant to MA Law. 6. Acknowledgements.Watertown understands and acknowledges that any and all payments due pursuant to this Agreement are contingent upon the Company's receipt of all state and local approvals to operate a RME in Watertown. 7. Other Pavments. The Company anticipates that it will make purchases of water, and sewer from governmental entities. The Company will pay and all fees associated with the local permitting of the facility. If Watertown receives other payments from the Company or from the Department of Revenue or any other source,the funds will have been collected by assessment against the Company, including but not limited to taxes impose by the legislature of the Commonwealth of Massachusetts, or mandate from the Watertown for said payments,the amounts due from the Company to the Watertown under the terms of this Agreement shall not be reduced by the amount of such other payments. 8. Community Sunnort and Additional Obligations. a. Local Vendors—to the extent such practice and its implementation are consistent with federal, state, and local laws and regulations,the Company shall use good faith efforts in a legal and non-discriminatory manner to give priority to qualified local businesses and vendors in the provision of goods and services called for in the construction,maintenance, and continued operation of the Facility. b. Employment/Salaries—except for senior management, and to the extent such practice and its implementation are consistent with federal, state, and local laws and regulations, Company shall use good faith efforts in a legal and non-discriminatory manner to give priority to hire qualified residents of Watertown as employees of the Facility. c. The Company shall, at least annually,provide Watertown with copies of all reports submitted to the Licensing Authority(ies)regarding Company's operations at the Facility, if reasonably requested by Watertown. d. The Company will work cooperatively with all necessary Watertown departments,boards, commissions, and agencies to ensure that the Company's operations at the Facility are compliant with all of Watertown's codes,rules, and regulations. e. The Company will maintain its premises and conduct its operations at the Facility in a businesslike and professional manner,with due regard for the interests of this community. f. If contacted by a representative of Watertown,the Company shall make reasonably best efforts to respond promptly and substantively, and shall respond in a reasonable amount of time; 16 DRAFT HOST COMMUNITY AGREEMENT g. The Company shall maintain its RME license in good standing with the CCC and comply with all applicable CCC regulations; h. The Company shall comply with any and all conditions imposed by local zoning authorities of Watertown; i. The Company shall take strong precaution to prevent the sales of cannabis to persons under the age of 21 as required by applicable law. 9. Annlication SUDDort.Watertown agrees to submit to the CCC, or such other Licensing Authority, as the case may be, certification of compliance with applicable local by-laws relating to the Company's application for a RME license to operate the Facility,where such compliance has been properly met,but makes no representation or promise that it will act on any other license or permit request, including,but not limited to any Special Permit or other zoning application submitted by the Company,in any particular way other than by Watertown's normal and regular course of conduct and in accordance with their rules and regulations and any statutory guidelines governing them. Watertown agrees to use reasonable efforts to work with Company, if approved for a RME License,to help assist the Company on their community support and employee outreach programs. This Agreement does not affect,limit, or control the authority of Watertown boards, commissions, and departments to carry out their respective powers and duties to decide upon and to issue, or deny, applicable permits and other approvals under the statutes and regulations of the Commonwealth of Massachusetts,the general and zoning ordinances of Watertown, or applicable regulations of those Watertown boards, commissions, and departments, or to enforce said statutes, ordinances, and regulations. Watertown,by entering into this Agreement, is not thereby required or obligated to issue such permits and approvals as may be necessary for the Facility to operate in Watertown,or to refrain from enforcement action against the Company and/or the Facility for violation of the terms of said permits and approvals or said statutes, ordinance, and regulations. 10. Security. Company shall maintain security at the Facility in accordance with a security plan presented to Watertown and approved by the CCC. In addition, Company shall at all times comply with State and local Law regarding security of the Facility. The Company further agrees: a. Company shall maintain security at the Facility at least in accordance with the security plan presented to Watertown and approved by the CCC,or such other state licensing or monitoring authority, as the case may be. In addition,the Company shall at all times comply with all applicable laws and regulations regarding the operations of the Facility and the security thereof. Such compliance shall include but will not be limited to providing hours of operation; after-hours contact information and access to surveillance operations; and requiring dispensary agents to produce their Agent Registration Card to law enforcement upon request. 17 DRAFT HOST COMMUNITY AGREEMENT b. To the extent reasonably requested by Watertown's Police Department, and subject to the security and architectural review requirements of the CCC, or such other state licensing or monitoring authority, as the case may be,the Company shall work with Watertown's Police Department in determining the placement of exterior security cameras. c. Company agrees to reasonably cooperate with Watertown's Police Department, including but not limited to periodic meetings to review operational concerns, security, delivery schedule and procedures, cooperation in investigations, and communications with the Police Department of any suspicious activities at or in the immediate vicinity of the Facility, and with regard to any anti-diversion procedures. d. Company shall maintain a diversion plan at the Facility at least in accordance with the diversion plan presented to Watertown and approved by the CCC, or such other Licensing Authority, as the case may be. In addition,the Company shall at all times comply with all applicable laws and regulations regarding the operations of the Facility and the implementation of the diversion plan thereof. e. Company shall promptly report the discovery of the following to Watertown's Police within twenty-four(24)hours of the Company becoming aware of such event: diversion of cannabis;unusual discrepancies identified during inventory;theft; loss and any criminal action;unusual discrepancy in weight or inventory during transportation; any vehicle accidents, diversions, losses,or other reportable incidents that occur during transport; any suspicious act involving the sale,cultivation, distribution,processing, or production of cannabis by any person;unauthorized destruction of cannabis; any loss or unauthorized alteration of records related to cannabis, or dispensary agents; an alarm activation or other event that requires response by public safety personnel; failure of any security alarm system due to a loss of electrical power or mechanical malfunction that is expected to last longer than eight hours; and any other breach of security. 11. Governing Law. This Agreement shall be governed and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts. 12. Amendments/Waiver.Amendments or waivers of any term, condition, covenant, duty or obligation contained in this Agreement may be made only by written amendment executed by all Parties,prior to the effective date of the amendment. 13. Severability.If any term or condition of this Agreement or any application thereof shall to any extent be held invalid,illegal or unenforceable by the court of competent jurisdiction,the CCC, or the Licensing Authority,the validity, legality, and enforceability of the remaining terms and conditions of this Agreement shall not be deemed affected thereby unless one or both Parties would be substantially or materially prejudiced. 18 Successors/Assigns.DRAFT HOST COMMUNITY AGREEMENT This Agreement is binding upon the Parties hereto,their successors, assigns and legal representatives. Watertown shall not assign or transfer any interest or obligations in this Agreement without the prior written consent of the Company,which shall not be unreasonably delayed,conditioned, or withheld. The Company shall not assign or transfer any interest or obligation under this Agreement without the prior written consent of Watertown,which shall not be unreasonably delayed, conditioned, or withheld. 14. Entire Agreement. This Agreement constitutes the entire integrated agreement between the Parties with respect to the matters described. This Agreement supersedes all prior agreements, negotiations and representations, either written or oral, and it shall not be modified or amended except by a written document executed by the Parties hereto. 15. Watertown Council Acceptance Reauired. The parties acknowledge that the terms of this Agreement are expressly conditioned upon the approval of the Watertown Council in the form of a Host Community Agreement. 16. Local Permitting.._The Parties acknowledge that payments pursuant to the operation of the RME under this Agreement are specifically contingent upon the Company obtaining a Special Permit for the RME from Watertown. The approval and execution of this Agreement does not guarantee that the Company will obtain a Special Permit from the applicable Licensing Authority. 17. Notices.Except as otherwise provided herein, any notices under this Agreement shall be in writing and addressed as follows: To the Watertown: Town Manager Town of Watertown 149 Main St. Watertown,MA 02472 Attention: Michael J. Driscoll. Town Manager To the Company: [NE Group Holdings,Inc. c/o Cogency Global Inc., 850 New Burton Road Suite 201, Dover,DE 199041 Attention: David Sheehan * * SIGNATURE PAGE TO FOLLOW DRAFT HOST COMMUNITY AGREEMENT IN WITNESS WHEREOF,the Parties hereto have duly executed this Agreement on the date set forth above. TOWN OF WATERTOWN [NE Group Holdings,Inc]. Name: Michael J. Driscoll Name: David Sheehan Title: Town Manager Title: President 4821-0600-6700.2 20 ZONINGSITE PLAN WITH • I�� RreR,reN Fo. px�)D_ E°ate�µ N^IN N 3. ,aw �) NO rs�sTTMrxesxFw lxaF AN O"Euu� •. Nor THE=ET of.M'— RE,n wReEr er E es s. I'E"IEmE1EDiENHw�rao TEo oN :I _ " H,P,E0—TSEET FON ENFOREENENT.mION UNDER WQ 2 w - ixFaRMenox.Txis rlar is i� hIll INDK-E THE FRII-Eo E,MxEE IN USE ONLr. IN A EENERw NMURE AND Jill I , Ina I i ZONE:(CB) CENTRAL BUSINESS IR00 MINIMUM SETBACKS .\ / o'. SEE-NONE o MMIN. o R NONE PvgJ� r1 1 \ <. ( >ai o,� ®a"- IN.oxLEU_"—E - - 0-S PAR 49-59 MOUNT AUBURN STREET PARCEL ID:1005 4A 0 - MIDDLESEX SOUTH REGISTft1'OF DEEDS _ "--�- BK 47822 PG 114 suEsisEmlEE erro omcEs RwRESENr smH THE / •,,4 \\,� ✓J+/,6° _ 9 /1,�,/ •fj,. '` ¢ o RRMPosm eUSIxEs=6 AT,NE slre. ,r ✓\` INS D =oPoc s ARE AmUIREoIr�+we aMxUE IM U=E �1 PARKING MMPIIANCF ---------- HE EI TO- o.FOR Ix EUMPM N E w ANU=� EUA N=. tP E tj x - m.. .• N 1 a z a3 l,\ LLIo 0 w c) �3 o a Lc) TM AaV17Y M4P II-14"2JI�J SHEET t OF 1 21 FLOOR PLAN u coo .7 0 0_ OPTIMA WELLNESS -FF F—]� F-- F—1 IF—IF--]+ EF o wav, V °❑° "-' — /1 FRONT ELEVATION 0 f n .L I l �o J® IEXISTING SIGNAGE EFzo�sleo � �\ AndersonP-r0esn - \ / — — — — VEGH'WAIE¢IOWNDISGFN-4 Os EXISTING FLOOR PLAN A,��O lSII Vi4�`I�h FLOOR PLAN /1 (� RONT ELEVATION ss rnouHr,weuwa sm�r va sa �J �wADceirx wuwwcsM i A1.1 22 ENVIRONMENTAL IMPACT STATEMENT Environmental Impact Statement 603 Salem Street Nantucket, MA 02554 z4mo Wakefield, MA 01880 Tel:(508)228-7909 OF Tel: (781)246-2800 Hayes Engineering,Inc Fax:(781)246-7596 Refer to File No. WAT-0016 TO: Town of Watertown Zoning Board of Appeals FROM: Tony Capachietti,Project Manager DATE: November 12,2019 SUBJECT: Environmental Impact Statement Proposed Marijuana Establishment NE Group Holdings d/b/a Optima Wellness 55 Mount Auburn Street Watertown, Massachusetts Hayes Engineering, Inc. (HEI)has prepared this Environmental Impact Statement in support of the proposed marijuana dispensary at 55 Mount Auburn Street, pursuant to the request of the Project Proponent, NE Group Holdings.The purpose of this Impact Statement is to identify potential environmental impacts from the project. The project,as proposed,seeks to upfit an existing 5,100±square foot(sf.) retail unit within the Watertown Square Plaza for use as a retail marijuana establishment. The re-use and re- development of existing facilities is in accordance with the Commonwealth of Massachusetts Sustainable Development Principles,specifically: "Concentrate Development and Mix Uses Support the revitalization of city and town centers and neighborhoods by promoting development that is compact, conserves land, protects historic resources, and integrates uses. Encourage remediation and reuse of existing sites, structures,and infrastructure rather than new construction in undeveloped areas. Create pedestrian friendly districts and neighborhoods that mix commercial, civic, cultural, educational, and recreational activities with open spaces and homes." The site is located conveniently to public transportation and is located along the Massachusetts Bay Transit Authority bus route number 71. The Applicant seeks to provide on-site bicycle parking to promote transportation choice for customers and employees to the facility. The Applicant has committed to giving priority to hiring qualified residents of the Town of Watertown as employees for the facility. The Project,as designed,does not create any new impervious surfaces and will not increase the rate of runoff from the site,nor will it decrease stormwater quality entering the municipal drainage system. 23 ENVIRONMENTAL IMPACT STATEMENT WAT-0016 55 Mount Auburn Street 4e Environmental Impact Statement November 7,2019 The Applicant is also committed to using Energy Star rated appliances when applicable and for future replacement of existing systems. Existing plumbing fixtures will be upgraded to water conserving fixtures and existing light fixtures will be upgraded to energy efficient LEDs within the tenant space. The project as proposed will not have adverse impacts to the local environment or existing utility infrastructure and has been designed with consideration given to the Commonwealths' Sustainable Development Principles, specifically principles 1, 3, 5, 7, 8 and 9. TRAFFIC IMPACT STATEMENT Traffic Impact Statement 603 Salem Street Nantucket, MA 02554 0Y Wakefield, MA 01880 Tel:(508)228-7909 Z4 Tel: (781)246-2800 Hayes Engineering,Inc Fax:(781)246-7596 Refer to File No. WAT-0016 TO: Town of Watertown Zoning Board of Appeals FROM: Tony Capachietti,Project Manager DATE: November 12,2019 SUBJECT: Traffic Impact Statement Proposed Marijuana Establishment NE Group Holdings d/b/a Optima Wellness 55 Mount Auburn Street Watertown, Massachusetts Hayes Engineering, Inc. (HEI) has prepared this Traffic Impact Statement in support of the proposed marijuana dispensary at 55 Mount Auburn Street, pursuant to the request of the Project Proponent, NE Group Holdings.The purpose of this Impact Statement is to evaluate the anticipated Average Daily and Peak Hour trip generation for the facility under both its prior and proposed uses. The existing portion of the building known as 55 Mount Auburn Street was formerly occupied by Boston Wood, a retailer of finished and unfinished custom wood furniture.The project locus is an interior unit consisting of approximately 5,100 sf.within a commercial retail strip that include other retail units. The Applicant proposes to convert this space into an adult-use marijuana dispensary. Trip Generation Average Daily Vehicle Trips and Peak Hour Trips for the project are calculated using data published by the Institute of Transportation Engineers(ITE)Trip Generation Manual,9th and 10th Editions, unless otherwise specified. The former Reindeer Bridge facility is best classified as"Specialty Retail'as described in the ITE Trip Generation Manual 9m Edition (the last time data was published for the land use code). Land Use Code(LUC)826-Specialty Retail Centers are defined by ITE as being: ...generally small strip shopping centers that contain a variety of retail shops and specialize in quality apparel, hard goods and services, such as real estate offices, dance studios, florists and small restaurants. 25 TRAFFIC IMPACT STATEMENT WAT-0016 55 Mount Auburn Street Traffic Impact Statement November 7,2019 Estimated Trip Generation rates for this 5,100t sf.facility are summarized in Table 1,below: Table 1: Trip Generation LUC 826-Specialty Retail LUC 826 Averaae TriD Ends LUC 826 Estimated Vehicle Time Period Der 1.000sf GFA TriD Ends�'� Weekday Daily 44.32 226 Weekday AM Peak Hour 6.84 35 Weekday PM Peak Hour 5.02 26 Saturday Daily 42.04 214 Saturday Peak Hour Not Published 26(2) (1) —Based on 5,100t square feet of GFA (2) —Assumed equal to Weekday PM Peak Hour The proposed RMD use classified as Institute of Transportation Engineers(ITE) Land Use Code (LUC)882, Marijuana Dispensary, defined in the ITE Trip Generation Manual, 10cn Edition as being: "... a standalone facility where cannabis is sold to patients or consumers in a legal manner." Trip Generation rates for the proposed 5,100t-sf. dispensary use is summarized in Table 2, below. It should be noted that the ITE cautions the use of its Marijuana Dispensary data, as it was derived from studying only four(4)dispensaries in Colorado and Oregon. Trip generation estimates for this project were interpolated using the average rate for the most similar establishment by size in the ITE study data set. Table 2: Trip Generation LUC 882—Marijuana Dispensary LUC 882 Averaae TriD Ends LUC 882 Estimated Vehicle Time Period Der 1.000sf GFA(') TriD Endsr'� Weekday Daily 79.74 407 Weekday AM Peak Hour 9.09 46 Weekday PM Peak Hour 10.55 54 Saturday Daily 74.46 380 Saturday Peak Hour 10.85 55 (3) —Based on the average rate for 3,411 sf.dispensary as published by ITE study (4) —Based on 5,100t square feet of GFA 26 TRAFFIC IMPACT STATEMENT WAT-0016 55 Mount Auburn Street ee Traffic Impact Statement November 7,2019 Table 3, below, compares estimated vehicle trip ends for the previous retail use and proposed marijuana dispensary: Table 3: Trip Generation Summary—Prior Use vs. Proposed Use Prior Use Proposed Use L UC 826 L UC 882 Estimated Vehicle Estimated Vehicle Change in Vehicle Time Period Trip Ends Trip Ends Trip Ends Weekday Daily 226 407 +181 Weekday AM Peak Hour 35 46 +11 Weekday PM Peak Hour 26 54 +28 Saturday Daily 214 380 +166 Saturday Peak Hour 26 55 +29 The proposed dispensary results in increase to projected trip ends to the facility when compared to the previous use for all scenarios.A single vehicle is represented by two trip ends, one arriving and one departing from the facility. The anticipated increase in weekday daily vehicle trips to the facility is 91 vehicles. It should be noted that not all trips represent"new"or "destination"vehicles on the route; destination trips have the greatest effect on traffic conditions. Pass-by trips have minimal impacts to traffic conditions.A pass-by trip is one where a vehicle is already on the route or very close to the route and stops on the way to their ultimate destination. Studies have shown that for retail uses similar to the proposed dispensary, a substantial portion of vehicle trips are from existing traffic passing by the site or diverted from another route in the vicinity of site. Data presented in the ITE Trip Generation Handbook indicates that for the average percentage of pass-by trips for Pharmacy/Drugstores without Drive-Through Windows is 49-percent during the weekday PM peak hour. HEI conducted a transportation survey of 257 patrons exiting an existing dispensary operating in Brookline, MA on June 13, 2019 identified 53.7%of patrons considered their stop to be a pass-by or diversion trip on their way to their ultimate destination. This would further reduce the number of anticipated new vehicle trips to approximately 46 vehicles on an average weekday. Peak hour increases have the greatest effect on traffic conditions. The greatest increase for peak hourtraffic occurs during the Saturday peak hour, resulting in 14 additional trip ends, or 7 vehicle trips in the peak hour. As illustrated above, as few as 4 of these trips may be new, or destination trips. TRAFFIC IMPACT STATEMENT WAT-0016 55 Mount Auburn Street Traffic Impact Statement November 7,2019 It is recommended that the Proponent work with Watertown public safety to develop an opening day strategy that provides for police details,parking attendants and wayfinding assistance to minimize disruptions during the initial opening period. This strategy should be reviewed on a daily, or weekly, basis to evaluate its continuing need. Off-Street Parkina: In accordancewith Section 6.01(j)of the Town of Watertown Zoning Ordinance: "No structure constructed, or use instituted, prior to 1988 shall be required to meet the off-street parking requirements per§6.09(b) unless there is a substantial change in the structure or in the use of the structure or land." As both the prior use and proposed use are classified as Retail Sales/Service and Office uses there is no change in the required number of parking spaces for the use. The existing parking lot provides 81 spaces of off-street parking, including one(1) handicap parking space. The Applicant proposes to increase the total number of spaces in the lot to 82 spaces and denote the additional space and two(2)existing spaces as reserved for handicap placards. Thiswill increase the total number of accessible spaces in the lot to 4 spaces in compliance with the requirements of the Americans with Disabilities Act(ADA)and Massachusetts Architectural Access Board (MAAB)requirements. Parking for the facility should accommodate the worst-case peak hour demand of 55 vehicle trip ends(28 vehicles)during the Saturday peak hour.Typical transaction times at the dispensary are anticipated to be between 10 and 15 minutes per customer. The corresponding vehicle turnover rate for the use is between 4 and 6 times per hour, requiring approximately 5 to 7 spaces to accommodate this peak which is less than the 15 spaces required for the use. In an effort to further manage parking demands employees will be encouraged to use public transportation,when feasible, and subsidies will be provided to those employees choosing to do so. 28 SECURITY OPERATIONS ■ Optima Wellness, LLC ("Optima Wellness") shall 4. Secure all entrances to the Marijuana implement sufficient safety and security Establishment to prevent unauthorized measures to deter and prevent unauthorized access; access to the Marijuana Establishment, unauthorized entrance into areas containing 5. Establish limited access areas pursuant to marijuana, and prevent the theft of marijuana. 935 CMR 500.110(4), which shall be Optima Wellness' security measures shall be accessible only to specifically authorized designed to protect the premises, employees, personnel limited to include only the consumers, the general public and the minimum number of employees essential community and provide a safe environment for for efficient operation; the safe and discreet dispensing of marijuana products. The Company shall implement 6. Store all finished marijuana products in a policies and procedures designed to avoid secure, locked safe or vault in such a diversion,theft, or loss of marijuana products. manner as to prevent diversion, theft and loss; Optima Wellness' security policies shall be established in accordance with the 7. Keep all safes, vaults, and any other requirements under 935 CMR 500.110, and equipment or areas used for the shall include, but not be limited to the production, cultivation, harvesting, following: processing (as applicable) or storage of marijuana and marijuana products securely Security features will include the following: locked and protected from entry, except for The Company shall: the actual time required to remove or replace marijuana; 1. Positively identify individuals seeking access to the premises of the Marijuana 8. Keep all locks and security equipment in Establishment or to whom marijuana or good working order; marijuana products are being transported pursuant to 935 CMR 500.105(14) in order 9. Prohibit keys, if any, from being left in the to limit access solely to individuals 21 years locks or stored or placed in a location of age or older; accessible to persons other than specifically authorized personnel; 2. Adopt procedures to prevent loitering and ensure that only individuals engaging in 10. Prohibit accessibility of security measures, activity expressly or by necessary such as combination numbers, passwords implication permitted by these 935 CMR or electronic or biometric security systems, 500.000 et. seq. and its enabling statute are to persons other than specifically allowed to remain on the premises; authorized personnel; 3. Dispose of marijuana in accordance with 11. Ensure that the outside perimeter of the 935 CMR 500.105(12) in excess of the Marijuana Establishment is sufficiently lit to quantity required for normal, efficient facilitate surveillance, where applicable; operation as established within 935 CMR 500.105; 29 SECURITY OPERATIONS ■ 12. Ensure that all marijuana products are All limited access areas shall be clearly described kept out of plain sight and are not visible in a diagram of the registered premises from a public place without the use of reflecting entrances and exits, walls, partitions, binoculars, optical aids or aircraft; vegetation, flowering, processing, production, storage, disposal and retail sales areas (as 13. Develop emergency policies and applicable), to be filed with the Commission in a procedures for securing all product form and manner determined by the following any instance of diversion, theft Commission. or loss of marijuana, and conduct an assessment to determine whether Access to limited access areas shall be restricted additional safeguards are necessary; to employees, agents or volunteers specifically permitted by the Marijuana Establishment, 14. Develop sufficient additional safeguards, agents of the Commission, and state and local as required by the Commission, for law enforcement and emergency personnel. Marijuana Establishments that present special security concerns; All outside vendors, contractors and visitors shall obtain a visitor identification badge prior 15. Share the Marijuana Establishment's to entering a limited access area and shall be security plan and procedures with local escorted at all times by a marijuana law enforcement authorities and fire establishment agent authorized to enter the services and periodically update law limited access area. The visitor identification enforcement authorities and fire services badge shall be visibly displayed at all times while if the plans or procedures are modified in the visitor is in any limited access area. All a material way; and visitors must be logged in and out and that log shall be available for inspection by the 16. Require all employees of the Marijuana Commission at all times. All visitor identification Establishment to visibly display an badges shall be returned to the Marijuana employee identification badge issued by Establishment upon exit. the Marijuana Establishment at all times while at the Marijuana Establishment or The Company shall design and implement a transporting marijuana. security system designed to prevent and detect diversion, theft or loss of marijuana and/or The Company shall establish limited access unauthorized intrusion, utilizing commercial areas pursuant to 935 CMR 500.110(4), which grade equipment which shall, at a minimum, shall be accessible only to specifically authorized include: personnel limited to include only the minimum number of employees essential for efficient 1. A perimeter alarm on all building entry and operation. Said limited access areas will be exit points and perimeter windows; identified by the posting of a sign that shall be a minimum of 12" x 12" and which states: "Do 2. A security alarm system that can be Not Enter—Limited Access Area—Access continuously monitored, whether Limited to Authorized Personnel Only' in electronically, by a monitoring company or lettering no smaller than one inch in height. other means approved by the Commission. 30 SECURITY OPERATIONS ■ 3. A notification system that provides an 9. The ability to remain operational during a audible, text or visual notification within five power outage; and (5) minutes of an alarm or any failure in the surveillance system either by telephone, 10. A video recording that allows for the email or text message; exporting of still images in an industry standard image format, including .jpg, .bmp 4. A duress alarm, panic alarm or hold-up and .gif. Exported video shall have the alarm connected to local public safety or ability to be archived in a proprietary format law enforcement authorities; that ensures authentication of the video and guarantees that no alternation of the 5. Video cameras in all areas that may contain recorded image has taken place. Exported marijuana, at all points of entry and exit and video shall also have the ability to be saved in any parking lot which shall be appropriate in an industry standard file format that may for the normal lighting conditions of the be played on a standard computer area under surveillance. The cameras shall operating system. All recordings shall be be directed at all safes, vaults, sales areas erased or destroyed prior to disposal. and, where applicable, areas where marijuana is cultivated, harvested, processed, prepared, stored, handled or The Company shall have a back-up alarm dispensed. Cameras shall be angled so as to system, with all the capabilities of the primary allow for the capture of clear and certain system, provided by a company supplying identification of any person entering or commercial grade equipment, which shall not exiting the Marijuana Establishment or area; be the same company supplying the primary security system. 6. Twenty-four (24) hour recordings from all video cameras that are available for The Company shall keep and maintain all immediate viewing by the Commission security system equipment and recordings in a upon request and that are retained for at secure limited access area on site that shall least 90 calendar days. Recordings shall not remain locked and shall not be used for any be destroyed or altered, and shall be other function, so as to prevent theft, loss, retained as long as necessary if the destruction and alterations. Access to said Marijuana Establishment is aware of a surveillance / security area shall be limited to pending criminal, civil or administrative persons that are essential to surveillance investigation or legal proceeding for which operations, law enforcement authorities, the recording may contain relevant security system service personnel and the information; Commission. A current list of authorized employees and service personnel that have 7. The ability to immediately produce a clear, access to the surveillance room shall be color still photo whether live or recorded; available to the Commission upon request. All security equipment shall be in good working 8. A date and time stamp shall be embedded order and shall be inspected and tested at in all recordings, which shall be regular intervals, not to exceed 30 calendar days synchronized and set correctly at all times from the previous inspection and test. and shall not significantly obscure the picture; 31 SECURITY OPERATIONS ■ The Company shall notify appropriate law which details the circumstances of the event, enforcement authorities and the Commission of any corrective action taken, and confirmation any breach of security immediately and, in no that the appropriate law enforcement instance, more than twenty-four (24) hours authorities were notified. following discovery of the breach. Notification shall occur, but not be limited to, during the All documentation related to an incident that is following occasions: reportable pursuant to 935 CMR 500.110(7)(a) shall be maintained by the Company for not less 1. Discovery of discrepancies identified during than one year or the duration of an open inventory; investigation, whichever is longer, and made available to the Commission and law 2. Diversion, theft or loss of any marijuana enforcement authorities upon request. product; The Company shall, on an annual basis, obtain 3. Any criminal action involving or occurring at its own expense, a security system audit by a on or in the Marijuana Establishment vendor approved by the Commission. A report premises; of such audit shall be submitted, in a form and manner determined by the Commission, no 4. Any suspicious act involving the sale, later than 30 calendar days after the audit is cultivation, distribution, processing or conducted. If the audit identifies concerns production of marijuana by any person; related to the Marijuana Establishment's security system, the Company will submit a plan 5. Unauthorized destruction of marijuana; to mitigate those concerns within ten (10) business days of submitting the audit. 6. Any loss or unauthorized alteration of records related to marijuana; Notwithstanding anything contained herein to the contrary, if the Company implements other 7. An alarm activation or other event that specific safeguards that may be regarded as an requires response by public safety adequate substitute for the requirements set personnel or security personnel privately forth in 935 CMR 500.110, it will submit a engaged by the Company; request to the Commission for review and approval, in a form and manner as determined 8. The failure of any security alarm system due by the Commission. Any additional or other to a loss of electrical power or mechanical specific safeguards will also be submitted to the malfunction that is expected to last more local law enforcement authorities and fire than eight hours; or services for review and comment. 9. Any other breach of security. The Company shall, within ten (10) calendar days, provide notice to the Commission of any incident described in 935 CMR 500.110(7)(a) by submitting an incident report in the form and manner determined by the Commission 32