01/28/2019 BOARD OF SELECTMEN Agenda Packet

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WHEREAS, the parties intend by this Agreement to satisfy the provisions of State law pertaining to host community agreements between host communities and marijuana establishments, including but not limited to, 935 CMR 500, et seq., and of G.L. c.94G, § 3(d), as established in the Act, applicable to the operation of the Establishment as a Retail Marijuana Establishment in the Town; and NOW THEREFORE,in consideration of the provisions of this Agreement,the Company and the Town agree as follows: 1. Community Impact. The Town anticipates that, as a result of the Company's operation of the Establishment, the Town will incur additional expenses and impacts upon its road' system, law enforcement, inspectional services, permitting services, administrative services and public health services, in addition to potential additional unforeseen impacts upon the Town. Accordingly, in order to mitigate`the financial impact upon the Town and use of Town resources, the Company agrees to annually pay a community impact fee to the Town, in the amounts and under the terms provided herein(the"Annual Payments"). 2. Annual Payment. In the event that the Company obtains a Recreational Cannabis Retail License, or such _ other license and/or approval as may be required, for the operation of the Establishment in the Town by the Massachusetts CCC, or such other state licensing or monitoring authority, as the case may be, and receives any and all necessary and required permits and licenses of the Town, and at the expiration of any final appeal period related thereto, said matter not being appealed further, which said permits and/or licenses allow the Company to locate, occupy and operate the Establishment in the Town, then the Company agrees to provide the following Annual Payment for each year this Agreement is in effect; .provided, however, that if the Company fails to secure any such other license and/or approval as may be required, or any of required municipal approvals,the Company shall reimburse the Town for its legal fees associated with the negotiation of this Agreement. a. The Company, assuming it will be allowed to operate seven(7) days a week, shall make Annual Payments in an amount equal to three percent(3%) of the Company's gross revenue from (i) marijuana, (ii) marijuana derived product .and(iii) ancillary paraphernalia sales at the Establishment. In the first year of operation, the Annual Payment shall be paid in two payments. The first payment shall be in the amount of Three Hundred Thousand Dollars ($300,000)upon commencement of sales at the retail Establishment in Town (the "Opening Date"). The second payment shall be the balance of the three percent (3%) of gross sales less the initial Three Hundred Thousand Dollars ($300,000) payment. The balance of the Annual Payment shall be due no later than twelve (12) months after the Opening Date. Any overpayment of the Annual Payment shall not be refundable to the Company and shall be added to the Company's minimum obligation set forth in Section 5 below, 2