01/28/2019 BOARD OF SELECTMEN Agenda Packet

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(DRAFT-FOR DISCUSSION PURPOSES ONLY) In the event that the Company obtains a Final License, or such other license and/or approval as may be required, for the operation of the Establishment in the Town by the Massachusetts Cannabis Control Commission(the"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 ata cipal approvals, the Company shall reimburse the Town for its legal fees associatedy at] =the negotiation of this Agreement. a. Company shall make Annual Pg3ments in an amount:equal to three percent (3%) of gross revenue from marijuana and marijuanaproduct sales at the Establishment. In the first year o£'Operation,the Annual Payment shall be paid in two payments. The first payment shall b&in the amount of twenty- five thousand($25,00 )_:upon commencement''of sales at the retail Establishment in ToWi Th0..second payiient..shall be the balance of the three percent of gross sales-less'the twenty-'R usand($25,000)payment. The balance of the AnnuafPayn ei t shall be due,-fio later than twelve (12) months after the opening dafe(the"Opening Date"_.T b. In the second, thrd;_fourth and fifthyears of operation: 3% of the gross sales of manjil�and marijuana prod ots sales at the Establishment in each year of operatic'�halliie paid.in two (2�Y six (6)month segments; the first, covering the'first sig (6)xnahths of tfi&operating year,measured annually 47 mmfrom the Open g Date, sha11be pai'd-' ithin two hundred forty(240) days and the'balauce, covering the second six (6)months of the operating year, to be paid within six 6gmda s after the end of the year of operation, c. �Nith regard to any-,year of operation for the.Establishment which is not a fall licable Annual Payments shall be pro-rated caleraar year, tle`app accordingly. 3. Payments.:--r. F Company shall make the Annual Payments set forth in Paragraph 2, above, to the Town of Mashpee. To the extent permitted by law,the Treasurer of the Town shall hold the Annual Payments in a separate account,to be expended by the Town without farther appropriation pursuant to G.L. c.44, §53A, or otherwise in trust, for the purposes of addressing the potential health, safety, and other effects or impacts of the Establishment on the Town and on municipal programs, services,personnel, and facilities. Otherwise, said Annual Payments shall be deposited into the General Fund. While the purpose of the Annual Payments is to assist the Town in addressing any 2