Findings for SU based upon Nye County Code Chapter Medical Marijuana Establishments:

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2 Nye County BOCC Public Hearing Staff Report; SU July 16, 2014 Page 2 of 5 Findings for SU based upon Nye County Code Chapter Medical Marijuana Establishments: The application is a complete submittal which includes all required documents such as a site plan, business plan, etc. The proposed use is located within a zoning district which allows for medical marijuana establishments. The subject property is designated as Mixed Use within the adopted 2003 Pahrump Regional Planning District Master Plan-as amended; the Mixed Use designation is intended to allow for a wide variety of uses including commercial, retail, offices, churches, schools, as well as single and multi-residential uses, while prohibiting large-scale big box retail stores. The proposed use (cultivation) complies with all distance separation requirements (separation from schools, parks, churches, etc.), or, a waiver from such separation requirements has been granted by the Board. Applicant has submitted several floor area plan options (Options A, B, C and D). Options A, B, C and D all include a cultivation facility under options A and B the proposed cultivation facility will comply with all distance requirements if the Board eliminates the 300 foot residential separation requirement. If the Board chooses to not eliminate the 300 foot residential separation requirement, the applicant has submitted option C (with dispensary) and option D (without dispensary) which propose the installation of interior separation walls in order to comply with the separation requirements. The applicant has submitted a straight-line drawing prepared by a professional engineer. Scoring Findings: 1. Criteria: A sufficient and viable financial plan has been submitted showing the resources of the applicant and proof the applicant has adequate funds to support the business plan as presented. Finding: Information showing the liquid assets of the individual partners has been provided. Three-year proforma financials have been provided, including projected revenues and operating costs. A budget including pre-opening and construction costs has been provided. 2. Criteria: A sufficient and viable electronic verification system, inventory control system, and measures for adequate building security and fire protection have been presented. Finding: Cultivation operations and procedures have been provided. The property contains two 5,000 gallon water tanks (sufficiency for compliance with fire code requirements for medical marijuana establishment undetermined at this time). The existing bar/tavern is served by an on-site well and septic system. Applicant has submitted a conceptual security plan, showing security camera coverage. Information on inventory control and loss prevention has been provided. Safety and security precautions have been submitted. A hydroponics growing strategy will be utilized. Information on harvesting, packaging and labeling has been provided. 3. Criteria: An adequate transportation plan that addresses product security during the transport of medical marijuana from seed to sale has been presented. Finding: A transportation plan has been provided. Application indicates MJ Freeway software will be utilized to track product from seed to sale. GrowTracker software will be used to manage cultivation and harvest tracking seeds, nutrients and other ingredients applied to the plants, location of plants, health of plants, and required equipment such as lighting. Information on delivery of product to dispensaries is provided. 4. Criteria: The capability to provide safe and secure packaging of medical marijuana products that would assist in reducing the exposure of children to the dangers of medical marijuana has been presented. Finding: The application contains information concerning child-resistant packaging.

3 Nye County BOCC Public Hearing Staff Report; SU July 16, 2014 Page 3 of 5 5. Criteria: The design of the proposed establishment will have a professional appearance and will be compatible with the existing or future uses in the proposed area of development. Finding: The cultivation establishment is proposed to be located within a portion of an existing 5,625 square foot commercial building (Maverick Saloon & Dance Hall) which was constructed in 1992; improvements were added to the property in 2008, including 25 asphalt paved parking spaces. A portion of the building contains a 2 nd story. The existing building interior will be renovated the cultivation operation will be entirely indoors. Application states there will be no odor detectable from outside the building. 6. Criteria: Crime or other factors in the area of the proposed medical marijuana establishment do not pose an undue threat to the security of the proposed establishment, its product, employees or prospective patrons. Finding: Crime or other factors in the area of the proposed medical marijuana establishment do not appear to pose an undue threat to the security of the proposed establishment, its product, employees or prospective patrons. 7. Criteria: (For dispensaries only) The proposed dispensary will provide convenient access to those authorized to use medical marijuana, and will allow for the sufficient distribution of marijuana for medical use. Finding: Not applicable for this application. LAND USE MATRIX CURRENT ZONING (if applicable) LAND USE PLAN DESIGNATION (PRPD Master Plan, Nye County Comprehensive/Master Plan, Amargosa Valley Area Plan) CURRENT LAND USE SITE NORTH SOUTH EAST WEST General Commercial (GC) Rural Estates (RE-2) Village Residential (VR-10) General Commercial (GC) General Commercial (GC) Mixed Use Low Density Residential Mixed Use Mixed Use Mixed Use Developed commercial business (Maverick Saloon & Dance Hall) Single-family residence Undeveloped Undeveloped Undeveloped External Comments: The Town of Pahrump has been notified of this application. All owners of property located within 300 feet, and all owners of the 30 nearest parcels to the subject property have been notified of this application. Several letters of support of the proposal were submitted by the applicant and included in the application submittal. ANALYSIS Application Details: This application is a request for approval of a special use permit for a medical marijuana establishment (cultivation) in a General Commercial (GC) zoning district located in Pahrump. The establishment is proposed to be located within an existing building on a commercially developed property. Supplemental information pertaining to security, transportation, packaging, design and appearance, accessibility, operations protocol, medical marijuana expertise and letters of community support has been

4 Nye County BOCC Public Hearing Staff Report; SU July 16, 2014 Page 4 of 5 provided. Approval of a Special Use Permit requires a simple majority vote of the Board. Zoning: The subject property is zoned General Commercial (GC), which is a zoning district which allows for medical marijuana establishments according to Nye County Code Section The subject property is an existing developed commercial business (Maverick Saloon & Dance Hall). Distance Separations: The applicant has submitted a statement and drawing indicating that the proposed use will comply with all distance separation requirements (separation from schools, parks, churches, etc.). A waiver from such separation requirements is not required for this special use permit application. MANDATORY CONDITIONS OF APPROVAL The approval of any special use permit authorizing the operation of a medical marijuana establishment must contain at a minimum the following conditions: 1. The special use permit grantee must provide to the Nye County Planning Director a copy of the registration certificate issued by the State of Nevada prior to commencing operations. 2. The establishment must continue to meet all requirements for a medical marijuana establishment to qualify for and maintain its certificate of registration as set forth by State law. 3. The establishment must comply with all operating procedures required by State law. 4. The establishment must prohibit anyone from consuming marijuana on the premises. 5. If the establishment has signage, the signage shall be limited to one wall sign not to exceed two square feet in size. 6. The establishment must prohibit anyone under the age of eighteen years on the premises. 7. The establishment must prohibit medical marijuana activities including, without limitation, cultivating, growing, processing, displaying, selling or storage from being conducted outdoors. 8. All cultivation or production of marijuana that a cultivation facility carries out or causes to be carried out must take place in an enclosed facility. 9. The establishment must prevent medical marijuana or paraphernalia from being displayed or kept in a manner that is visible from outside the facility.

5 Nye County BOCC Public Hearing Staff Report; SU July 16, 2014 Page 5 of The establishment must install security surveillance cameras that monitor all entrances, along with the interior and exterior of the premises. Recordings from these cameras must be maintained in a retrievable manner for at least 90 days from the date recorded. 11. The establishment must install and maintain in good working condition robbery and burglary alarm systems. 12. The establishment must post a legible sign inside the facility stating that: a. The use or distribution of marijuana is a violation of federal law. b. The possession, use, or distribution of marijuana for non-medical purposes is a violation of state law. c. Consumption of marijuana on the premises is prohibited. d. No one under the age of eighteen years is permitted on the premises. 13. The special use permit grantee shall record a notarized affidavit in which the grantee acknowledges that the operation of a medical marijuana establishment is a violation of federal law. 14. The special use permit grantee shall record a notarized statement in which the grantee agrees to hold Nye County harmless against any federal law enforcement actions that may result from the activities of the medical marijuana establishment that is the subject of the conditional use permit. SPECIAL CONDITIONS OF APPROVAL 15. If the State of Nevada, Division of Public and Behavioral Health, issues a Medical Marijuana Establishment (MME) Provisional Registration Certificate for the establishment for which the special use permit was granted by December 31, 2015, then the establishment must commence operations within 18 months of the date of issuance of the Provisional Registration Certificate otherwise the special use permit will expire. If the State of Nevada does not issue a MME Provisional Registration Certificate for the establishment for which the special use permit was granted by December 31, 2015 the special use permit will expire. 16. Property owner/applicant/grantee shall obtain all required local and state approvals, building permits, plan reviews, inspections, etc., for the establishment. 17. The special use permit grantee shall provide to the Planning Department prior to commencement of the establishment a copy of the recorded notarized affidavit in which the grantee acknowledges that the operation of the medical marijuana establishment is a violation of federal law. 18. The special use permit grantee shall provide to the Planning Department prior to commencement of the establishment a copy of the recorded notarized statement in which the grantee agrees to hold Nye County harmless against any federal law enforcement actions that may result from the activities of the medical marijuana establishment.

6 Walter Wy Eldridge St Board of County Commissioners -- Philip & Janet Jensen, Owner/Applicant BOCC HEARING JUL SU Iris Ct Chiquita Ln Hyde St Kelso Wy Mesquite Av Nevada Rt 160 Ë EXHIBIT "A" -- AREA ZONING NOTIFIED PROPERTIES 900 FOOT BUFFER GC; General Commercial RE-2; Rural Estates Residential VR-10; Village Residential DEPARTMENT OF PLANNING Pahrump Regional Planning District (PRPD) The information shown hereon is approximate and for exhibit use only. Nye County is not responsible for any claims, injuries or liabilities resulting from the use of htis document beyond the prupose for which it is intended. This drawing is not to scale.

7 Walter Wy Eldridge St Board of County Commissioners -- Philip & Janet Jensen, Owner/Applicant BOCC HEARING JUL SU Iris Ct Chiquita Ln Hyde St Kelso Wy Mesquite Av Nevada Rt 160 Ë EXHIBIT "B" -- MASTER PLAN CATEGORIES NOTIFIED PROPERTIES 900 FOOT BUFFER MU: Mixed Use LDR: Low Density Residential MDR: Medium Density Residential GC: General Commercial DEPARTMENT OF PLANNING Pahrump Regional Planning District (PRPD) The information shown hereon is approximate and for exhibit use only. Nye County is not responsible for any claims, injuries or liabilities resulting from the use of htis document beyond the prupose for which it is intended. This drawing is not to scale.

8 Board of County Commissioners -- Philip & Janet Jensen, Owner/Applicant BOCC HEARING JUL SU St t C yd e C H s Iri Ln K el so W y Eldridge St hi qu ita Walter Wy Mesquite Av ada Nev Rt 1 60 Ë EXHIBIT "C" -- AERIAL PERSPECTIVE NOTIFIED PROPERTIES 900 FOOT BUFFER DEPARTMENT OF PLANNING Pahrump Regional Planning District (PRPD) The information shown hereon is approximate and for exhibit use only. Nye County is not responsible for any claims, injuries or liabilities resulting from the use of htis document beyond the prupose for which it is intended. This drawing is not to scale.

9 Board of County Commissioners -- Philip & Janet Jensen, Owner/Applicant BOCC HEARING JUL SU Chiquita Ln Mesquite Av Ë EXHIBIT "D" -- CLOSE UP AERIAL DEPARTMENT OF PLANNING Pahrump Regional Planning District (PRPD) The information shown hereon is approximate and for exhibit use only. Nye County is not responsible for any claims, injuries or liabilities resulting from the use of htis document beyond the prupose for which it is intended. This drawing is not to scale.