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2019-12-18 - Planning and Zoning Commission - Agenda Packet Meeting of the Village of Buffalo Grove Planning and Zoning Commission Regular Meeting December 18, 2019 at 7:30 PM Fifty Raupp Blvd Buffalo Grove, IL 60089-2100 Phone: 847-459-2500 I. Call to Order II. Public Hearings/Items For Consideration 1. Consider a Special Use Pursuant to the Applicable Sections of the Buffalo Grove Municipal Code for an Adult-Use Cannabis Dispensary, Which Includes a Medical Cannabis Dispensary, in the B3 Planned Business Center District at 830-840 Milwaukee Avenue (Trustee Johnson) (Staff Contact: Chris Stilling) III. Regular Meeting A. Other Matters for Discussion B. Approval of Minutes 1. Planning and Zoning Commission - Regular Meeting - Dec 4, 2019 7:30 PM C. Chairman's Report D. Committee and Liaison Reports E. Staff Report/Future Agenda Schedule F. Public Comments and Questions IV. Adjournment The Planning and Zoning Commission will make every effort to accommodate all items on the agenda by 10:30 p.m. The Board, does, however, reserve the right to defer consideration of matters to another meeting should the discussion run past 10:30 p.m. The Village of Buffalo Grove, in compliance with the Americans with Disabilities Act, requests that persons with disabilities, who require certain accommodations to allow them to observe and/or participate in this meeting or have questions about the accessibility of the meeting or facilities, contact the ADA Coordinator at 459-2525 to allow the Village to make reasonable accommodations for those persons. Updated: 12/13/2019 1:49 PM Page 1 Action Item : Consider a Special Use Pursuant to the Applicable Sections of the Buffalo Grove Municipal Code for an Adult-Use Cannabis Dispensary, Which Includes a Medical Cannabis Dispensary, in the B3 Planned Business Center District at 830-840 Milwaukee Avenue Recommendation of Action Staff recommends approval, subject to the conditions in the attached staff report. On October 21, 2019, the Village Board approved Ordinance 2019-54 (attached) establishing regulations for Adult-Use Cannabis Dispensaries (recreational cannabis dispensaries) in the Village. Subsequent to the approval, the Village has received an application from the Village's existing medical cannabis dispensary, PDI Medical, requesting a special use to operate both a recreational and m edical cannabis dispensary at 830-840 Milwaukee Avenue in the Shops of Buffalo Grove development. ATTACHMENTS:  Staff Report (DOCX)  Dispensary Map (PDF)  Plan Set (PDF)  Ordinance 2019-54 (PDF)  Objector Emails (PDF) Trustee Liaison Staff Contact Johnson Chris Stilling, Community Development Wednesday, December 18, 2019 2.1 Packet Pg. 2 VILLAGE OF BUFFALO GROVE PLANNING & ZONING COMMISSION STAFF REPORT MEETING DATE: December 18, 2019 SUBJECT PROPERTY LOCATION: 830-840 Milwaukee Avenue PETITIONER: PDI Medical III, LLC PREPARED BY: Christopher Stilling, Deputy Village Manager REQUEST: Petition to the Village of Buffalo Grove for a Special Use pursuant to the applicable sections of the Buffalo Grove Municipal Code for an Adult-Use Cannabis Dispensary, which includes a Medical Cannabis Dispensary in the B3 Planned Business Center District EXSITING LAND USE AND ZONING: The property is currently a vacant tenant space in the Shops of Buffalo Grove development and is currently zoned B3 Planned Shopping District COMPREHENSIVE PLAN: The approved Village Comprehensive Plan calls for this property to be Commercial. PROJECT OVERVIEW On October 21, 2019, the Village Board approved Ordinance 2019-54 (attached) establishing regulations for Adult-Use Cannabis Dispensaries (recreational cannabis dispensaries) in the Village. Subsequent to the approval, the Village has received an application from the Village’s existing medical cannabis dispensary, PDI Medical, requesting a special use to operate both a recreational and medical cannabis dispensary at 830-840 Milwaukee Avenue in the Shops of Buffalo Grove development. This request was reviewed by the Village Board at their November 4, 2019 meeting. The item was ultimately referred to the PZC for a public hearing. PLANNING, ZONING, AND ENGINEERING ANALYSIS PDI Medical Zoning History  In 2015, the Village approved Ordinance 2015-18 granting a special use allowing PDI Medical III, LLC (PDI) to operate a medical cannabis dispensary at 1623 Barclay Boulevard. 2.1.a Packet Pg. 3 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e )  In 2018, PDI was purchased by Cresco Labs, a national company specializing in the cannabis dispensing business.  While Cresco Labs assumed the ownership of the business, the name and operations of the existing establishment and the approving Ordinance remain unchanged.  PDI has been in operation at their current location for nearly four years and to date, the Village has not experienced any material problems or complaints from the use. State and Local Request  PDI and their owner Cresco Labs are seeking to relocate the existing dispensary and operate both a recreational and medical cannabis dispensary at 830-840 Milwaukee Avenue in the Shops of Buffalo Grove development.  The request would include a special use for an Adult-Use Cannabis Dispensary and Medical Cannabis Dispensary pursuant to the Village’s recently adopted Ordinance (attached).  PDI has submitted the required application to the State of Illinois to relocate their existing medical cannabis dispensary to 830-840 Milwaukee Avenue and their application is included in the submittal package.  Although the State of Illinois has already issued PDI permission to begin selling recreational cannabis at their current location on Barclay, PDI has not filed the necessary special use to begin selling at 1623 Barclay. Therefore they will not be able to sell recreational cannabis at that location.  At this time, PDI has elected to pursue this new location on Milwaukee Avenue as it is larger, more visible and has more parking spaces. Their ability to operate both a medical and recreational dispensary at this new location will be contingent on the receipt of the State license. Proposed Plan The following is a summary of their proposed plans for 830-840 Milwaukee Avenue:  PDI is proposing to occupy a 4,900 square foot tenant space in the Shops of Buffalo Grove development which is zoned B3 Planned Business District.  The space is located between the existing Starbucks and T-Mobile and will have frontage on Milwaukee Avenue.  The business would include both a recreational and medical cannabis dispensary and is permitted as a special use, subject to conditions, in the B3 District. Floor Plan/Operations  As noted, the tenant space is currently vacant and is 4900 square feet in area.  Approximately 2500 square feet will be dedicated to the retail showroom and counter area.  The balance of the space would include receiving area, offices, breakroom and washrooms.  The proposed floor plan has a single secured entrance on the north side of the space. 2.1.a Packet Pg. 4 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e )  Customers will be required to check in and be verified in this area before gaining access to the secured retail area.  Medical cannabis cardholders that are under the age of 21 would be escorted into an adjacent room where they would complete purchases.  Medical cannabis cardholders under 21 will not be allowed to enter the retail area and will be escorted out of the lobby.  All items on the showroom floor are for “display only” and do not contain actual product.  All products are kept in a secured area and brought out to the customer as part of their transaction.  The business would be open 9AM to 10PM, 7 days a week.  PDI estimates that as many as 4 deliveries/week could occur. Delivery times will be random. Signage/Exterior  PDI has provided a rendering showing the exterior of the space.  PDI will be providing screening over the front windows to block the view into the interior.  Pursuant to the Sign Code, the business is permitted to have 1 wall sign. According to information provided by the applicant, they would have 1 sign with “Sunnyside” shown. They also show 2 additional yellow panels on either side. Staff will work with the applicant to ensure that the signage proposed meets Village Code.  As a condition of approval, staff recommends that no exterior signage or window signage shall use the word “marijuana,” “cannabis,” or any other word, phrase or symbol commonly understood to refer to marijuana or cannabis. Furthermore, staff recommends that the display of merchandise and/or products related to medical cannabis shall not be visible from the exterior of the building. Parking  Pursuant to the Zoning Ordinance, the parking requirements for the proposed use (1 space/200 square feet) would require 20 parking spaces.  This space was originally identified as a restaurant and parking was developed at a ratio of 10 spaces/1,000 square feet (50 spaces). Check In Area 2.1.a Packet Pg. 5 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e )  PDI has submitted a memo from their traffic engineer who finds that adequate parking is provided. Staff concurs with this finding. Security  PDI has provided a detailed security plan, which has been reviewed by the Village’s Police Department. Overall, the Police Department does not have any issues or concerns.  In addition to a state of the art security system, they will also have an armed guard at the premise during the hours of operation. Further details about their security plan will be presented at the public hearing.  As a condition of approval, staff recommends that the final security plan be reviewed and approved by the Police Chief prior to the issuance of a certificate of occupancy. COMPLIANCE WITH VILLAGE CODE As noted, the Village approved Ordinance 2019-54 establishing standards for recreational cannabis dispensaries. The following is a summary of PDI’s compliance with the key standards: 1. The adult-use cannabis dispensary must be operated by an organization or business that is currently licensed by the Illinois Department of Financial and Professional Regulation to operate a medical cannabis dispensary under the Compassionate Use of Medical Cannabis Pilot Program Act (410 ILCS 130 et seq.). Staff Response: Although PDI Medical III, LLC is seeking approval from the State to relocate their medical cannabis license to 830-840 Milwaukee Avenue, they currently have a license to operate a medical cannabis business at 1623 Barclay. Therefore, staff finds that they meet this condition. 2. The adult-use cannabis dispensary must keep a copy of the dispensing organization agent identification card issued pursuant to the Compassionate Use of Medical Cannabis Pilot Program Act visible at all times. Staff Response: This will remain as a condition. 3. There shall be no more than two adult-use cannabis dispensaries permitted at any one time. Staff Response: PDI is the first request the Village has received. Therefore, staff finds that they meet this condition. 4. The adult-use cannabis dispensary may not be located within 1,000 feet of the property line of a pre-existing public or private nursery school, pre-school, primary or secondary school, day care center, or day care home, museum, library and substance abuse treatment or counseling center 2.1.a Packet Pg. 6 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) within the Village of Buffalo Grove corporate limits. Notwithstanding the foregoing, an adult-use cannabis dispensary will not be deemed to violate this provision if one of the school related facilities locates within the 1,000 foot spacing after the adult-use cannabis dispensary has been granted special use approval by the Village. Learning centers and vocational/trade centers shall not be classified as a public or private school for purposes of this Section. Staff Response: The Village has received 2 emails (attached) from individuals concerning the location of “Attention to Wellness” Therapy which is located in an unincorporated office building to the south of the existing Potbelly Shopping Center. The condition of the 1000’ buffer from “substance abuse treatment or counseling center” only applies to facilities within the corporate limits of Buffalo Grove. Putting aside whether this office qualifies under this section, it is not in the Village. Staff finds that the petitioner meets this condition. 5. At least 85% of the floor area of any tenant space occupied by an adult-use cannabis dispensary shall be devoted to the activities of the dispensary as authorized by the Act. Any request for reduction in floor area percentage shall be evaluated as part of the Special Use request. Staff Response: Staff finds that they meet this condition. 6. For purpose of determining required parking, the adult-use cannabis dispensary shall be classified as a retail and wholesale trade pursuant to Section 17.36.040 of the Zoning Ordinance; provided however that the Village may require that additional parking be provided as a result of the analysis completed through the Special Use process. Staff Response: Staff finds that they meet this condition. 7. Other than cannabis-infused food products, no adult-use cannabis dispensary shall also sell food for consumption on the premises in the same tenant space. Staff Response: This will remain as a condition. 8. On-site consumption of cannabis shall be prohibited within an adult-use cannabis dispensary and on the premises. The dispensary shall be responsible for enforcing the prohibition of on-site consumption of cannabis under all circumstances inside and outside the dispensary and on the premises. Staff Response: This will remain as a condition. 9. The adult-use cannabis dispensary may not conduct any sales or distribution of cannabis other than as authorized by the Act. 2.1.a Packet Pg. 7 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Staff Response: This will remain as a condition. 10. No adult-use dispensary shall be maintained or operated in a manner that causes, creates, or allows the public viewing of adult-use cannabis, cannabis-infused products or cannabis paraphernalia or similar products from any sidewalk, public or private right-of-way or any property other than the lot on which the dispensary is located. No portion of the exterior of the dispensary shall utilize or contain any flashing lights, search lights or spot lights or any similar lighting system. Staff Response: This will remain as a condition. 11. No adult-use cannabis dispensary nor any other person or entity shall place or maintain, or cause to be placed or maintained, an advertisement of cannabis or cannabis-infused product in any form or through any medium: a. Within 1,000 feet of the perimeter of a pre-existing public or private nursery school, pre- school, primary or secondary school, day care center, or day care home within the Village of Buffalo Grove corporate limits; or b. On or in a public transit vehicle or public transit shelter; or c. On or in publicly owned or publicly operated property. All advertising shall comply with the rules and regulations set forth in the Cannabis Regulation and Tax Act (P.A. 101-0027). Staff Response: Staff finds that they meet this condition. 12. Each adult-use dispensary shall prohibit any person who is not at least twenty-one (21) years of age from entering the dispensary, except for cardholders granted medical access under the Compassionate Use of Medical Cannabis Act over 18 years of age, whose access shall be limited to the medical cannabis dispensing area only. Dispensaries shall not employ anyone under the age of twenty-one (21). Access to the dispensary shall be limited exclusively to dispensary staff and those specifically authorized under the Cannabis Regulation and Tax Act (P.A. 101-0027). Staff Response: PDI has submitted a plan to address this condition. Medical cannabis cardholders that are under the age of 21 would be escorted into an adjacent room where they would complete purchases. Once completed, they will be escorted out and not allowed to enter the retail floor area. Staff finds that they meet this condition. 13. As part of the Special Use application requirements, Petitioner shall submit plans regarding installation of building enhancements, such as security cameras, security systems, lighting or 2.1.a Packet Pg. 8 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) other improvements to ensure the safety of employees and customers of the adult-use cannabis dispensary, as well as its environs. Said improvements shall be determined based on the specific characteristics of the dispensary and of the floor plan for an adult-use cannabis dispensary and the site on which it is located, consistent with the requirements of the Act. Staff Response: PDI has provided a detailed security plan, which has been reviewed by the Village’s Police Department. Overall, the Police Department does not have any issues or concerns. As a condition of approval, staff recommends that the final security plan be reviewed and approved by the Police Chief prior to the issuance of a certificate of occupancy 14. The Special Use Applicant shall submit a complete copy of their license application and all plans submitted to the State of Illinois, or any agency thereof, as part of their special use application. Before issuance of a certificate of occupancy or otherwise opening to the public, Adult-Use Cannabis Business Organizations must provide a copy of their state license to operate as an adult- use cannabis dispensary issued by the Illinois Department of Financial and Professional Regulation. Staff Response: PDI has submitted their application to the State. Staff finds that they meet this condition. 15. Petitioner shall file an affidavit with the Village affirming compliance with Section 17.28.80-c as provided herein and all other requirements of the Act. Staff Response: This will remain as a condition. SPECIAL USE STANDARDS Pursuant to the Zoning Ordinance, the proposed use does require a Special Use in the B3 District. The following criteria shall be met: 1. The special use will serve the public convenience at the location of the subject property; or the establishment, maintenance or operation of the special use will not be detrimental to or endanger the public health, safety, morals, comfort, or general welfare; 2. The location and size of the special use, the nature and intensity of the operation involved in or conducted in connection with said special use, the size of the subject property in relation to such special use, and the location of the site with respect to streets giving access to it shall be such that it will be in harmony with the appropriate, orderly development of the district in which it is located; 2.1.a Packet Pg. 9 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 3. The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity of the subject property for the purposes already permitted in such zoning district, nor substantially diminish and impair other property valuations with the neighborhood; 4. The nature, location and size of the buildings or structures involved with the establishment of the special use will not impede, substantially hinder or discourage the development and use of adjacent land and buildings in accord with the zoning district within which they lie; 5. Adequate utilities, access roads, drainage, and/or other necessary facilities have been or will be provided; 6. Parking areas shall be of adequate size for the particular special use, which areas shall be properly located and suitably screened from adjoining residential uses, and the entrance and exit driveways to and from these parking areas shall be designed so as to prevent traffic hazards, eliminate nuisance and minimize traffic congestion in the public streets. The petitioner’s response to the standards are included with the packet. Staff finds that the petitioner has met the standards. PUBLIC COMMENTS Pursuant to Village Code, the contiguous property owners were notified and a public hearing sign was posted on the subject property. The posting of the public hearing sign and the mailing of the notifications were both completed within the required timeframe. As of the date of this report, The Village has received 2 emails (attached) from individuals concerning the location of “Attention to Wellness” Therapy which is located in an unincorporated office building to the south of the existing Potbelly Shopping Center. The condition of the 1000’ buffer from “substance abuse treatment or counseling center” only applies to facilities within the corporate limits of Buffalo Grove. Putting aside whether this office qualifies under this section, it is not in the Village. Staff finds that the petitioner meets this condition. STAFF RECOMMENDATION Staff recommends approval of a Special Use for an Adult-Use Cannabis Dispensary, which includes a Medical Cannabis Dispensary in the B3 Planned Business Center District at 830-840 Milwaukee Avenue, subject to the following conditions: 1. The special use for a cannabis dispensary is granted to PDI Medical III, LLC, for the tenant space at 830-840 Milwaukee Avenue and shall substantially conform to the documents and plans submitted as part of the petition. The special use shall not be transferable or assignable and does not run with the land. 2.1.a Packet Pg. 10 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2. The hours of operation shall be limited to 9AM to 10PM Monday – Sunday, except as may be approved by the Village. 3. All exterior signage associated with the proposed Cannabis Dispensary located at 830-840 Milwaukee Avenue shall be in compliance with the Sign Regulations established in Chapter 14 of the Code of Ordinances, Ordinance 2016-65 and State Statute. In addition, no exterior signage or window signage shall use the word “marijuana,” “cannabis,” or any other word, phrase or symbol commonly understood to refer to marijuana or cannabis. 4. The display of merchandise and/or products related to cannabis shall not be visible from the exterior of the building. 5. Prior to the issuance of a certificate of occupancy, the final security plan shall be reviewed and approved by the Chief of Police. 6. Other than cannabis-infused food products, no adult-use cannabis dispensary shall also sell food for consumption on the premises in the same tenant space. 7. Any consumption, including but not limited to sampling or offering samples, of cannabis or cannabis infused products shall be prohibited within the dispensary and on the premises. The dispensary shall be responsible for enforcing the prohibition of on-site consumption of cannabis under all circumstances inside and outside the dispensary and on the premises. 8. PDI Medical III, LLC, may not conduct any sales or distribution of cannabis other than as authorized by State Statute. 9. PDI Medical III, LLC, shall file an affidavit with the Village affirming compliance with Section 17.28.80 as provided herein and all other requirements of State Statute. 10. Any violation of the conditions associated with this special use ordinance and the Buffalo Grove Municipal Code could result in penalties including but not limited to the revocation of the special use. 11. In addition to all other required security measures, PDI Medical III, LLC, agrees that the Village may conduct random unannounced compliance checks of its operations at 830-840 Milwaukee Avenue. 12. PDI Medical III, LLC shall enter into a Development and Operating Agreement in a manner acceptable to the Village. 2.1.a Packet Pg. 11 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 13. Prior to the issuance of a certificate of occupancy, PDI Medical III, LLC shall provide the Village a copy of their State License to operate a cannabis dispensary. ACTION REQUESTED The Planning & Zoning Commission (PZC) shall open the public hearing and take public testimony and the PZC shall then make a recommendation to the Village Board. 2.1.a Packet Pg. 12 At t a c h m e n t : S t a f f R e p o r t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) B C E H I M N O Q S T V W X Z AA AB P Y D R A L G J K F U LONG GROVE WHEELING ARLINGTON HEIGHTS VERNON HILLS LINCOLNSHIRE RIVERWOODS BU F F A L O G R O V E R D DUNDEE RD M C H E N R Y R D DEERFIELD PKWY N W E I L A N D R D AR L I N G T O N H E I G H T S R D BERNARD DR APTAKISIC RD BRANDYWYN LN WEI D N E R R D HALF DAY RD CHECK E R D R BUSCH PKWY THOMP S O N B L V D N M A I N S T RA U P P B L V D OLD CHECKE R R D ST MARYS PKWY ARMSTRONG DR PEKARA DR AS P E N D R J O H N S O N D R FABISH DR A C A C I A T E R IL ROUTE 53 N A V A J O T R L GOLFVIEW TER PR A I R I E R D IN D I A N S P R I N G L N LE X I N G T O N D R M I L W A U K E E A V E ROSE BLVD PAULINE AVE GA I L D R NEWTOWN DR EL L E N D R AL D E N L N R E G E N T D R H A S T I N G S D R VE R N O N L N PA T T O N D R M A D I E R A L N BELMAR L N PRIVATE CA M B R I D G E D R BA R C L A Y B L V D MIL L C R E E K D R CAREN DR LE I D E R L N HIDDEN LAK E D R AV A L O N D R WH I T E P I N E R D FR E M O N T W A Y MI L L B R O O K D R TI M B E R H I L L R D ASBURY DR P E N N Y L N BRIST O L L N BEECHWOOD RD UNIVERSITY DR W FOX HILL DR LA K E B L V D SI L V E R R O C K L N E FOX HILL DR SPRIN G S I D E L N LASALLE LN EST A T E D R FOREST PL UNNAMED DOWNING RD ANTH O N Y R D LYON DR V I N T A G E L N PORT CLINTON RD BI R C H W O O D L N N W I L L I A M A V E CHURC H R D H A R R I S D R MOHAWK TRL PA L A Z Z O D R WY N G A T E L N CHESTNUT TER SELWYN LN ES S I N G T O N L N CHAUCER WAY LINDEN AVE CHA T H A M C I R I N V E R R A R Y L N LI N C O L N T E R SH E R I D A N R D G R E E N K N O L L S D R COUNT R Y L N LAKE COOK RD PLUM GROVE CIR MAPLE DR CO M M E R C E C T J U N E W A Y A V E DU N H I L L D R TWISTED OAK LN PA R K E R L N A S H S T OLD OAK DR L A R R A W A Y D R SA L K R D N E L I Z A B E T H A V E N F L O R E N C E A V E BE T T Y D R CHECKER RD JO E L L N ESTONIAN LN CORPORATE GROVE DR CR O F T O N L N RO N N I E D R MA R S E I L L E S C I R RACHEL LN DAUL T O N D R JO R D A N T E R WALNUT DR KNOLLWOOD DR HI A W A T H A D R BU R N T E M B E R L N AUBURN LN WR I G H T B L V D PE T L N WHITEHALL DR CH E V Y C H A S E D R PINTAIL CT MA C A R T H U R D R N E U G E N E A V E MA Y F A I R L N N C L A R I C E A V E BEVERLY LN THORNDALE DR R A D C L I F F E R D FOXFORD DR BE L A I R E D R C A S T L E W O O D L N LI N K D R LEH I G H L N W I N S T O N D R N H O R A T I O B L V D ST A N T O N D R DORNC L I F F L N COUNTRYSIDE DR RAINTREE RD CO B B L E R L N F R A N K L I N L N PARK VIEW TER A B B O T T C T DA Y T O N R D N M A R G A R E T A V E RIDGEFI E L D L N KIN G S T O N D R C R O W N P O I N T D R PR O V I D E N C E L N SAN D H U R S T D R COTT O N W O O D R D W H I S P E R I N G O A K S D R CARRIAGEWAY DR N R A P H A E L A V E R O S L Y N L N E NEWF I E L D D R SU N R I D G E L N HICKORY DR HOR A T I O B L V D CHATEAU DR CHICORY LN COVENTRY LN VILLA VERDE DR PARK AVE RO S E W O O D A V E KINGSBRIDGE WAY N O L D A R L I N G T O N H E I G H T S R D MALLARD LN ME L I N D A L N SA T I N W O O D T E R MADISON DR WI T N E Y L N CARLYLE LN CA R M A N A V E STANFORD LN PRAI R I E L N LE PARC CIR WI N D B R O O K E D R STEEPLE DR WESTB O U R N E L N N R I V E R W A L K D R TAYLOR CT SA Y B R O O K L N N C E L I A A V E C H A M B O U R D D R TH O R N W O O D D R 1S T S T DO G W O O D S T JOSEPH CT WE S T C H E S T E R R D SH A M B L I S S L N SWALLOW ST GR O V E D R IN D I A N C R E E K D R BLUEBIRD ST RA Y M O N D R D TW I N O A K S B L V D LO C K W O O D D R N R O A D W A Y L N HEATHERDOWN WAY WA K E F I E L D L N OV E R V I E W D R CUM B E R L A N D L N CEDA R C T S RIDGEWOOD LN KATHER I N E C T RED BUD PL WHITEHALL CT OXFORD DR BUCKINGHAM LN BANK LN ASP E N C T R O S E C T E W ARLYD RD TR A C E D R ST R A D F O R D C I R REDWING DR KR A U S E D R LA R C H M O N T D R OL D W E I L A N D R D MIL L E R L N PHEASANT LN EA S T H A V E N D R SA X O N P L D O V E R C T CHA R L E S C T OL D B A R N C T MARVINS WAY AC A C I A C T S ACORN PL BE D F O R D C T AVALON CT S L E E C T O L D O A K C T A S P E N C T M I L W A U K E E A V E PR A I R I E R D BA R C L A Y B L V D M C H E N R Y R D PR A I R I E R D P R I V A T E PRIVATE PRIVATE PRIVATE PRIVATE HALF DAY RD PR A I R I E R D LAKE COOK RD A ALCOTT CENTER AND PRESCHOOL B APTAKISIC JUNIOR HIGH SCHOOL C BUFFALO GROVE HIGH SCHOOL D BUFFALO GROVE KINDERCARE E BUFFALO GROVE MONTESSORI SCHOOL F CLEARBROOK GROUP HOME (CAMBRIDGE) G CLEARBROOK GROUP HOME (UNIVERSITY) H COOPER MIDDLE SCHOOL I EARL PRITCHETT ELEMENTARY SCHOOL J GLENKIRK GROUP HOME (INDIAN SPRINGS) K GLENKIRK GROUP HOME (KNOLLWOOD) L GODDARD SCHOOL M HENRY W. LONGFELLOW ELEMENTARY SCHOOL N IVY HALL MIDDLE SCHOOL O JACOB DUMAN JCC P JEWISH COMMUNITY YOUTH CENTER Q JOYCE KILMER ELEMENTARY SCHOOL R KIDTOWN USA DAYCARE S MERIDIAN MIDDLE SCHOOL T MONTESSORI WORLD OF DISCOVERY U OMNI YOUTH SERVICES V PRAIRIE ELEMENTARY SCHOOL W SAINT MARY SCHOOL X THE GROVE MONTESSORI SCHOOL Y TORAH ACADEMY Z TRIPP ELEMENTARY SCHOOL AA TWIN GROVES JUNIOR HIGH SCHOOL AB WILLOW GROVE ELEMENTARY SCHOOL µ 1 inch = 45,000 feet Available Parcels by Zoning Type B1B2 B3I Prohibited Dispensary Location Prohibited Dispensary Center Location* Childcare Facility property Last Updated 11/1/2019 *Prohibited sites include residentially zoned districts as well as a 1,000-footbuffer around the property line of all childcare facilities, group homesand drug counseling centers. Data source: Parcel boundaries of Lake County GIS. All other data developed by the Village of Buffalo Grove GIS. X Existing Location X Proposed Location 2.1.b Packet Pg. 13 At t a c h m e n t : D i s p e n s a r y M a p ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave Application for Special Use Applicant: PDI Medical III, LLC Property: 830-840 N. Milwaukee Avenue 2.1.c Packet Pg. 14 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave TABLE OF CONTENTS 1.Cover Letter 2.Narrative (with inventory security supplement) 3.Petition for Concept Review 4.Owner Authorization 5.Responses to Special Use Standards 6.Site Plan for Shops of Buffalo Grove 7.Updated Parking and Traffic Memo 8.Compliance with Village Ordinances 9.Floor Plan and Interior Renderings 10.Updated Exterior Rendering 11.PDI Medical Sam-Site Operations and Management Practices 12.Same-Site Application information to State of Illinois 2.1.c Packet Pg. 15 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 1.Cover Letter 2.1.c Packet Pg. 16 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) C R E S C O L A B S® 400 W. Erie Street I Suite 110 I Chicago, IL 60654 312-929-0993 www.crescolabs.com Christopher Stilling, AICP Deputy Village Manager Village of Buffalo Grove 50 Raupp Blvd Buffalo Grove, IL 60089 Dear Mr. Stilling, PDI Medical III, LLC ("the Applicant") is pleased to submit its application for a special use permit to occupy a vacant commercial space at 830-840 N. Milwaukee Ave. In this application, the Applicant has responded to the Village of Buffalo Grove's (the "Village") application requests, demonstrating how it will fulfill each of the Village's ordinance requirements and how the Applicant intends to maintain compliance with the State's rules and regulations. The Applicant intends to change its location from 1623 Barclay Blvd. (the "Existing Location") to 830-840 N. Milwaukee Ave. (the "Proposed Location"), Buffalo Grove because it will allow the Applicant to better serve the Village. The Proposed Location has more square footage, which will allow the Applicant to improve eve1y aspect of its operational layout. Additionally, the Proposed Location is on a major intersection in the Village and will provide patients with better public access. These changes will make the Applicant's new site Illinois' premier cannabis dispensary. The Applicant is owned by one of the most experienced medical marijuana operators in the countly, Cresco Labs. Cresco has established itself as one of the premier vertically integrated multi-state operators in the industry for earning very limited and highly competitive merit-based marijuana licenses. Cresco Labs was founded by professionals with legal, operational, and compliance experience in banking, commercial real estate, and technology. Cresco has leveraged the experience from those disciplines to incorporate established methodologies and best practices from other highly regulated industries at its existing site at 1623 Barclay Blvd. and will continue these practices at 830-840 N. Milwaukee Ave. We are excited to submit our application for a special use application at 830-840 N. Milwaukee Ave. and look forward to presenting our proposal to the Village in the coming weeks. Sincerely, Jo • ul 1van. Senior Vice President -Government Affairs, CRESCO labs 2.1.c Packet Pg. 17 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.Narrative (with inventory security supplement) 2.1.c Packet Pg. 18 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 1 Narrative of Project PDI Medical III, LLC (“the Applicant”) is requesting a special use permit from the Village of Buffalo Grove (the “Village”) to develop a vacant commercial space into a medical and adult-use cannabis dispensary at 830-840 N. Milwaukee Avenue, Buffalo Grove (the “Proposed Location”). Zoning The Proposed Location is zoned B3 (Planned Business Center District). Buffalo Grove’s Zoning Ordinance allows for an adult-use/medical cannabis dispensary to operate in a B3 zone. The Proposed Location has frontage on N. Milwaukee Avenue in a business district, compliant with Buffalo Grove’s dispensary regulations. Location Compliance Additionally, the Proposed Location is compliant with Sections 130 (d) and 140 of the Medical Cannabis Pilot Program Act (the “Act”). In accordance with Section 130 (d) of the Act and the Village ordinance, the property is located more than 1,000 ft. from the property line of any pre-existing public or private preschool, elementary or secondary school, day care center, day care home, group day care home, part day child care facility, museums, libraries, or substance abuse treatment/counseling centers within Buffalo Grove. In order to ensure that the Proposed Location is compliant, the Applicant searched publicly available resources and utilized third-party services to determine distances from the applicable sites. The Applicant will comply with all of the Village’s local zoning conditions set forth in its ordinance. Signage The Applicant seeks to normalize and professionalize cannabis dispensing and intends to reflect that mission in its exterior signage. Purchasers can expect the physical environment to be inviting and warm, a source of everyday wellness. The dispensary will reflect the interior design, with a bright and welcoming palette. The exterior of the dispensary will have security shatterproof tinted film on exterior windows with signage to match the dispensary, without advertising cannabis. The signage at the dispensary will say “Sunnyside*,” and will generally fit in with the surrounding neighborhood. The goal is for purchasers to have the same experience at the Applicant’s dispensary as one might have at a high-end retailer such as Apple or Whole Foods. Host Agreement The Applicant desires to be a responsible corporate citizen and contributing member of the Village’s business community. The Applicant intends to provide the Village certain benefits as requested that go above and beyond typical economic development benefits pertaining to new manufacturing and retail concerns in the Village and will work with the Village attorney and Village Board as it has done at 1623 Barclay Blvd. Buffalo Grove Recreational Cannabis Dispensary Regulation Compliance 2.1.c Packet Pg. 19 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 2 The Applicant will comply with all requests for inspections, both scheduled and unscheduled, by appropriate parties including the Illinois Department of Financial and Professional Regulation (the “Department”), the State Police, and local law enforcement. Additionally, the Applicant will employ sufficient security staff, pursuant to local and state regulation, to patrol for and prohibit loitering and on-site consumption. Pursuant to the Buffalo Grove Recreational Cannabis Dispensary Regulations, the Applicant will not allow purchasers under the age of 21 to enter the dispensary. Before entering the Proposed Location, all medical patients and purchasers will have their IDs checked in accordance with the Act. Medical patients who are minors will be escorted to the patient consultation room by a patient care specialist to wait while their order is fulfilled, and then will be escorted back out of the dispensary through the entrance door to avoid the sales floor altogether once their order is fulfilled. The dispensary will have a rapid check-in system and a large sales area, allowing purchasers and medical patients to browse inside the dispensary for a longer duration. Dispensary agents will prompt everyone that enters the building for government-issued identification and engage in the following activities, as required by 410 ILCS 705/15-85 (a): •Verify the age of each purchaser using an electronic reader; •Verify the validity of the purchaser’s government-issued identification card; and •Offer any appropriate purchaser education or support materials. Examples of Acceptable Identification For proof of ILLINOIS residence, 21+ age verification, and full allocation: Will Illinois drivers’ licenses be allowed? Yes. Will Illinois state IDs be allowed? Yes. Will a non-Illinois drivers’ license and lease (or other document) be allowed? No. Will a non-Illinois state ID and lease (or other document) be allowed? No. Will a City of Chicago CityKey ID card be allowed? Yes. For proof of 21+ age verification: Will passports be allowed? Yes. Will military IDs be allowed? Yes. Will passport cards be allowed? Yes. Identification that will not be allowed: Will a school ID be allowed? No. Will an FOID card be allowed? No. Will a AAA card be allowed? No. Will a credit card be allowed? No. Will a lease be allowed? No. Will a bill be allowed? No. All employees will receive training on how to identify fraudulent, invalid, expired, or otherwise unacceptable identification and how to reject service to unauthorized patrons. As required by 410 2.1.c Packet Pg. 20 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 3 ILCS 705/15-85 (c), identification must be valid, unexpired, contain a photograph, and the date of birth of the person. A security guard will be onsite to assist with greeting purchasers, accommodating mobility pathways through the security vestibule/waiting room, and ensuring the purchaser-entry is locked and secured when not in use. Explanation of Business Operations PDI Medical III, LLC (“the Applicant”) is proposing to relocate its business to 830-840 N. Milwaukee Ave. (the “Proposed Location”) and intends to sell cannabis, cannabis-infused products including edibles, paraphernalia, and related items to eligible purchasers, medical patients, and caregivers under the rules of the Cannabis Regulation and Tax Act (“the Act”) consistent with the permissions set forth by 410 ILCS 705/15-20 (m). As required by 410 ILCS 705/15-80 (b), the dispensary will be of suitable size and construction to facilitate proper operations, cleaning, and maintenance. The Applicant’s proposed hours of operation are 9 a.m. to 10 p.m. seven (7) days a week. Safe Dispensing of Medical Cannabis The Proposed Location’s size and layout promote safe dispensing of medical and adult-use cannabis and is a one-story facility with approximately 4,900 square feet of usable space. This amount of space allows more efficient transactions for a high number of patients and purchasers and will allow staff to more easily monitor patients, caregivers, and purchasers within the limited access area – creating a comfortable and safe shopping experience for all patients and purchasers. The Proposed Location will include 24/7 video surveillance through the whole premises, the exterior will be well-lit pursuant to the Act and the shopping center’s (where the Applicant will be located) requirements and security personnel as required by the Act and in accordance with the number of patients and purchasers will remain on premises during business hours to monitor foot traffic in-and-out of the building. Patients and purchasers will only have access to the building’s main entrance to ensure that all cannabis exits the building through one area – allowing security personnel to pinpoint surveillance and safety procedures in those areas. Additionally, the Applicant has created a comprehensive and confidential safety and security plan for the Illinois Department of Financial and Professional Regulation (the “Department”), that can be submitted if the Village agrees to not make the safety and security plan public, to ensure the care and well -being of every patient. Staffing Plan The Applicant intends to hire approximately 46 dispensary employees within the first year of operation. This number is dependent on several factors, including, but not limited to market conditions, growth in purchaser participation, and availability of product as supplied by licensees to meet purchaser demand. Initially, Applicant will staff the facility with the following number of employees, noted in parentheses, in each operational department: •Dispensary Management, including Agents-in-Charge (6); •Dispensary Agents (30); •Purchaser Coordinators (6); 2.1.c Packet Pg. 21 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 4 •Maintenance/Engineering (1); and •Security (Security Director (1) and Contracted Security Guards (2)). Some positions will be full-time, some will be part-time, and activities will occur over two work shifts (e.g., 6:00 a.m. – 2:30 p.m. and 2:00 p.m. – 10:30 p.m.). The Applicant will provide all its employees a living wage. Further, all full-time employees will be eligible for a comprehensive benefits package, including but not limited to health insurance, 401(k) benefits, and paid time off. In the event purchaser demands or community needs change, or an unexpected surge of sales occurs, the Applicant will work diligently to also retain part-time employees as necessary. Product Handling and Storage The size and the layout of the Proposed Location promotes safe product handling and storage while enhancing compliance, safety, and patient satisfaction. As noted on the floor plan included in this application, the Applicant will install physical barriers that will prevent public access to areas containing cannabis, restricting access to cannabis storage areas. All cannabis containers in the sales area will be for display only and will not contain any cannabis. Only staff responsible for controlling inventory will have access to safes and vaults. Medical and adult-use cannabis storage areas will be in the innermost rooms of the facility, not touching any exterior walls, away from the waiting room and entry – and divided from patients and purchasers by the restricted part of the sales area. All doors to storage areas will have alarms and redundant locking systems that will help keep cannabis safe in storage, and extra cameras will monitor cannabis-transfer points such as safes, cash registers, and loading/unloading zones. The Applicant anticipates approximately one (1) to four (4) cannabis deliveries to occur at the dispensary per weekday. All delivery times will be randomized and not made public. All safety and security equipment will meet both the requirements of State Police and the Act. Additionally, no cannabis will be visible to the public from the entry vestibule and/or waiting areas. Only patients, purchasers, authorized staff, and authorized visitors (e.g., law enforcement and Department representatives) will have access to the sales area – which will be a separate room with additional security provisions. Inventory Security Details The Applicant will store cannabis and cannabis-infused products in an enclosed, secure, restricted access vault. The vault will be locked at all times except for when dispensary employees are moving the day vaults in and out of the vault and for inventory audits. Product displays will be limited, and all have packaged, tamper-evident containers so there is no loose cannabis, and employees will return any product on display during business hours to the vault at the end of the day. The Applicant will also closely monitor its cannabis waste, which it will store in locked receptacles/dumpsters. Employees will record all weights/units of product and render waste unusable before disposing it in locked receptacles/dumpsters. At the Proposed Location, medical cannabis will be dispensed from day lockers stored behind the POS counters that will be moved into the vault during non-operating hours, daily. The day lockers will be locked at all times, except for during dispensing, and no patients or caregivers will have access to the lockers at any time. This process will create a more streamlined inventory movement, 2.1.c Packet Pg. 22 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 5 inventory accuracy, and greater accessibility because staff can spend more time with patients, rather than accessing the vault for all inventory. Cash Handling and Deposits The Applicant has an established banking relationship but cannot currently take credit card payments. In the interim, the Applicant will require that all sales be paid in cash or through a cashless ATM. The Applicant will implement the following cash handling and deposit policies: •Cash registers will only contain amounts of money necessary to make change – several register counts may occur throughout the day to ensure accurate counts; •Staff will have counterfeit-detection markers that they will use to ensure the legitimacy of large bills; •Only an AIC will have access to cash safe keys. •At the end of each business day, an AIC will prepare nightly deposits of cash, to be contained in a drop-safe in the vault; •The Applicant intends to do all cash handling and deposit schedules in a randomized fashion •The Applicant will have sufficient insurance coverage to provide the maximum amount of cash coverage required; and •Cash will be deposited to the bank via armored vehicle weekly, on a random day and time. Daily Customers The Applicant currently averages two (2) to three (3) patients per operating hour at the current location. The Applicant estimates that the dispensary will serve approximately 15 patients and purchasers per operating hour at the proposed location. ADA Accessibility The Applicant will maintain American Disabilities Act (“ADA”) accessibility and will meet all accessibility requirements from the Village of Buffalo Grove (the “Village”). The Applicant will integrate a multitude of features that will not only benefit patients and purchasers with physical limitations, but also staff, as they too will benefit from thoughtful building design and accessibility. For example, entrance and exit door hardware will include ADA-compliant door openers. The building does not require an ADA ramp as there are no grade changes from the sidewalk to the interior floor. The exterior of the Proposed Location is an approved new development and no landscaping or other changes will be made. Moreover, the Proposed Location is suitable for public access because it is easily accessible to patients and purchasers by way of ADA accessible public transportation methods including bus, vehicle, or rideshare. The Proposed Location is close to two Pace bus stops, on Milwaukee Ave. and Deerfield Parkway. The Proposed location is compliant with the Village’s parking space requirements and provides for ADA accessibility. Parking Accessibility 2.1.c Packet Pg. 23 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 6 The Applicant’s Proposed Location will have approximately 90 shared parking spots for patrons of both the dispensary and retail complex. Summary PDI Medical III, LLC respectfully submits a request for a pre-application conference for a special use permit to occupy a vacant commercial space at 830-840 Milwaukee Ave. to operate a medical and adult-use cannabis dispensary. The Applicant looks forward to formally presenting its application before the Village in the coming weeks. 2.1.c Packet Pg. 24 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 3. Petition for Concept Review 2.1.c Packet Pg. 25 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 26 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) None 2.1.c Packet Pg. 27 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 28 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 29 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 4. Owner Authorization 2.1.c Packet Pg. 30 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) OWNER AUTHORIZATION When the Applicant is not the owner of record, the following must be completed by the Owner and include the Owner(s) signature(s) with the Special Use Permit(s) or related land use and/or zoning applications. I (We) SDG Buffalo Grove, LLC (Owner’s Name) 2150 E. Lake Cook Road, Suite 820, Buffalo Grove, Illinois 60089 (Address) (773) 254-1730 (224) 532-2404 (Home Phone) (Cell Phone) (Business Phone) owners of the property located at: 830-840 N. Milwaukee Avenue, Buffalo Grove, Illinois 60089 (Site Address) do hereby authorize: PDI Medical III, LLC, and its affiliated entities (Applicant) 400 W. Erie Street, Suite 100, Chicago, Illinois 60654 (Address) John Sullivan (773) 835-3106 (312) 929-0993 Anthony V. Casaccio (630) 333-7672 (Business Phone) (Cell Phone) (Business Fax) to submit and file its Special Use Permit Applicantion, and any ancillary or related land use and/or zoning applications for Medical Cannabis Dispensary, and Adult-Use Cannabis dispensary at the Site Address. Dated: November 25, 2019 (Owner’s Signature) Louis Schriber III, Manager (Print Name, Title) (Owner’s Signature) (Print Name, Title) 2.1.c Packet Pg. 31 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 5. Responses to Special Use Standards 2.1.c Packet Pg. 32 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 1 Responses to Special Use Standards 1. The special use will serve the public convenience at the location of the subject property; or the establishment, maintenance or operation of the special use will not be detrimental to or endanger the public health, safety, morals, comfort, or general welfare. For nearly four years, PDI Medical III, LLC (“Applicant”) has operated a medical cannabis dispensary at its current location in the Village of Buffalo Grove (“Village”) at 1623 Barclay Boulevard (“Existing Location”). However, due to recent major changes in Illinois law, the Existing Location will not provide an ideal environment for patients and future adult-use customers in the community. Therefore, Applicant is requesting to move to 830-840 N. Milwaukee Avenue (“Proposed Location”) to operate a medical and adult-use cannabis dispensary. When the Applicant opened its doors in Buffalo Grove in early 2016, there were only about 4,000 registered medical cannabis patients in the state. This year, after two legislative expansions of the State’s medical cannabis program, the number of medical cannabis patients has grown extremely rapidly. By the end of 2019, the statewide patient-count will likely be double number at the start of the year (there were about 50,000 patients in January 2019 but nearly 90,000 patients as of early October 2019). Even more significantly, pursuant to the Cannabis Regulation and Tax Act (“Act”), beginning January 1, 2020, all adults 21 years and older can purchase limited quantities of cannabis at licensed adult-use cannabis dispensaries. Compared to the Existing Location, the Proposed Location has more square footage which will allow the Applicant to provide superior operations and experience. Similarly, the Proposed Location is at a major intersection in the Village, has more parking spaces, and is accessible by public transportation providing more convenient access to all of the Applicant’s patients, customers and employees. As to public safety and welfare, when it filed its original special use application for its Existing Location, the Applicant stated that its most important focus was to ensure operations are secure from intrusion and diversion and to protect the safety of its patients, employees and community. This same priority exists today. After operating for nearly four years, there have been no substantive complaints or negative issues associated with Applicant’s use at its Existing Location. The Applicant’s strong commitment to public safety and welfare will continue at its Proposed Location. The additional space and the layout of the Proposed Location will promote operational safety and compliance. Only staff responsible for controlling inventory will have access to safes and vaults where cannabis is stored. The cannabis containers in the sales area will be for display only and will not actually contain any cannabis. The cannabis storage room will not touch any exterior walls and is located away from the waiting room, entry and exit. All cannabis storage areas doors will be equipped with alarms and redundant locking systems. Extra cameras will monitor cannabis-transfer points including safes, cash registers, and loading/unloading zones. 2.1.c Packet Pg. 33 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 2 This Application provides further documentation demonstrating the Applicant’s operation fully complies with all state and local requirements. The Applicant is committed to working with the Village to fully ensure that its operations at the Proposed Location will serve public convenience, safety and welfare of its community. The Applicant will also continue its philanthropic efforts and community involvement, including volunteer campaigns and community sponsorship programs in and around Buffalo Grove. The Applicant has participated in the Lake County Canna Expo, has a partnership with Sedgebrook Retirement Community, and has participated in the Walk to End Alzheimer’s. 2. The location and size of the special use, the nature and intensity of the operation involved in or conducted in connection with said special use, the size of the subject property in relation to such special use, and the location of the site with respect to streets giving access to it shall be such that it will be in harmony with the appropriate, orderly development of the district in which it is located. All aspects of Applicant’s proposed special use are in harmony with the purpose and development of the B-3 zoning district. The Applicant’s Proposed Location is a one-story, 4,900- square-foot space fronting Milwaukee Ave in the Shops of Buffalo Grove, all of which are zoned B-3 Planned Business District. As stated in the Village Code, the purpose of the B-3 District is, in pertinent part, to ensure “adequate space is provided in appropriate locations for the various types of business uses, thereby protecting and strengthening the economic base of the Village..., [t]o encourage the grouping in appropriate locations of compatible business uses…[in order to] promote public convenience and business prosperity and contribute to the alleviation of traffic and pedestrian congestion.” Buffalo Grove Code of Ordinances 17.44.010. The location, size and nature of the Applicant’s proposed use fits squarely within the B- 3’s purpose. The Proposed Location is currently vacant and is located between an existing Starbucks and T-Mobile store. The other co-tenants in the Shops at Buffalo include Panera Bread, Mod Pizza, Solidcore Fitness, and Great Clips. The Proposed Location will be part of Applicant’s Sunnyside* brand and its storefront design will remain generally unchanged from its current appearance in harmony with the other co-tenant storefronts. The Proposed Location’s signage will read “Sunnyside*” and its interior will provide a high-end retail experience reminiscent of an Apple Store or Whole Foods. All features of the dispensary will of course be fully compliant with state and local regulations specific to cannabis dispensaries. Specifically, the dispensary will be of suitable size and construction to facilitate proper operations, cleaning, and maintenance pursuant to 410 ILCS 705/15-80 (b) of the Act. The 4,900 square feet of usable space will allow the Applicant to provide more efficient transactions for a high number of patients and adult-use customers. Additionally, the size and layout will allow staff to more easily and effectively observe all 2.1.c Packet Pg. 34 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 3 activity within the limited access area creating a comfortable and safe shopping experience for all patients and adult-use customers. The compatibility with the other businesses in the Shops at Buffalo Grove and the location at a major intersection will surely promote public convenience, business prosperity, and traffic alleviation. The Applicant intends to sell cannabis, cannabis-infused products including edibles, paraphernalia, and related items to medical patients and adult-use customers consistent with the permissions set forth by 410 ILCS 705/15-20(m) of the Act at the Proposed Location. With its high-end experience and affordable prices, the Applicant anticipates many of its patients and adult-use customers will also be customers of its co-tenant thereby creating business synergies and encouraging less congestion in the community. 3. The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity of the subject property for the purposes already permitted in such zoning district, nor substantially diminish and impair other property valuations with the neighborhood. The special use request by applicant will not harm the use and enjoyment of surrounding properties, nor will it cause substantial impairment of property valuations in the neighborhood. As stated above, the Applicant has operated a licensed medical cannabis dispensary in Buffalo Grove at its Existing Location since early 2016. During Applicant’s nearly four years of operation at the Existing Location, there have been no significant complaints or issues brought to the Village regarding Applicant’s use. As a longstanding healthcare resource to residents, the Applicant will continue to operate professionally and with attentiveness to community concerns. The Applicant now seeks to relocate its current the medical cannabis dispensary operation to the Proposed Location with the intention of also operating as an adult-use cannabis dispensary at the Proposed Location. Of note, the Applicant’s proposed use at the Proposed Location will not include a cultivation center, craft grower, processing organization, infuser organization, or transporting organization. The special use will be fully compliant with state and local law in addition to the rules of the Shops at Buffalo Grove. The Applicant has a full suite of standard operating procedures (“SOPs”) designed to mitigate diversion, and all safety and security equipment will meet and/or exceed requirements of State Police and the Act. For example, the Proposed Location will have 24/7 video surveillance of the entire premises, the exterior will be well-lit, and onsite security personnel will monitor activity. The exterior surveillance measures will add security to both the Applicant’s building and the surrounding community. By installing cameras pointing towards the street and sidewalks, the Applicant can serve as a remote surveillance-depot for the Village and State - if a crime were to occur in the Proposed Location's proximity, cameras could provide critical evidence to law enforcement in prosecuting perpetrators. The Applicant will prohibit on-site consumption at the Proposed Location and its premises. On-site consumption prohibition will be enforced through the Applicant’s SOPs and security 2.1.c Packet Pg. 35 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 4 procedures including strict anti-loitering policies. The Proposed Location will contain a sufficient odor absorbing ventilation and exhaust system so that any cannabis odor generated from inventory stored inside the business is not detected outside of the dispensary, anywhere on adjacent property or in public right-of-ways. The Applicant will also employ stringent groundskeeping procedures, including litter and graffiti procedures, in order to keep an attractive business and remain a responsible neighbor. No inventory will be visible from any sidewalk, private or public right-of-way or any property other than the lot on which the dispensary is located. Cannabis will also not be visible from the entry vestibule or the waiting areas. Only patients, adult-use customers, authorized staff and authorized visitors (e.g. law enforcement) will be able to enter the sales area. The Proposed Location’s building sign will read “Sunnyside*” reflecting the Applicant’s new up-scale dispensary concept. Likewise, the exterior in general will be remain cohesive with the Shops at Buffalo Grove with a gentle aesthetic of light wood tones and whites with brightly colored accents. Considering the Applicant’s secure and compliant practices, high-end experience provided, and community philanthropy, the Applicant’s special use will appropriately complement the Shops at Buffalo Grove and surrounding neighborhood. 4. The nature, location and size of the buildings or structures involved with the establishment of the special use will not impede, substantially hinder or discourage the development and use of adjacent land and buildings in accord with the zoning district within which they lie. The buildings involved in the special use will not impede the orderly development or use of adjacent properties. The special use will be located in an existing 4,900 square-foot vacant building that is part of the Shops at Buffalo Grove development. The Applicant will not be making any substantial changes to the exterior of the building other than adding its window cover signage and façade sign that reads “Sunnyside*” as can be seen in renderings submitted with this Application. In addition to on-site security personnel monitoring inside and outside conditions, the Applicant will install both conspicuous and inconspicuous cameras around the interior and exterior of the building, all of which will help prevent theft and other crimes at the Proposed Location and at adjacent units of the shopping center. Posted signs that the premises is under 24/7 video surveillance will also help deter criminal activity on and near the Proposed Location. The layout at the Proposed Location will also enable Applicant’s employees to have a more streamlined access between the secure storage areas and the restricted access receiving area at the rear of the building. This streamlining will improve the delivery process by making it faster and more discrete. The size of the sales area at the Proposed Location will allow for more than triple the current number of point-of-sales stations (“POS stations”) to a total of 15 POS stations to process patient transactions. Additionally, the Proposed Location will have a designated entrance (with 2.1.c Packet Pg. 36 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 5 man-trap) that is separate from the exit in order to enable better patient flow and focused security measures. The Proposed Location’s additional POS stations, open floor plan, and streamline patient flow will dramatically reduce wait times and help prevent queuing outside. Overall, the exterior of the building will remain cohesive with the Shops at Buffalo Grove, and the Applicant’s floor plan, security and operating procedures will ensure that it will be a valuable business to its neighboring co-tenants. 5. Adequate utilities, access roads, drainage, and/or other necessary facilities have been or will be provided. The Applicant’s Proposed Location will be more than adequately suited for the special use. The special use will require no special accommodations with respect to the utilities or other infrastructure in addition to what is already provided and built at the Proposed Location. Moreover, the Proposed Location’s placement in a new retail shopping development at the corner of a major intersection of the Village will provide greater access to community members. 6. Parking areas shall be of adequate size for the particular special use, which areas shall be properly located and suitably screened from adjoining residential uses, and the entrance and exit driveways to and from these parking areas shall be designed so as to prevent traffic hazards, eliminate nuisance and minimize traffic congestion in the public streets. The Proposed Location is compliant with the Village’s parking space requirements and provides for ADA accessibility. The Proposed Location is within a retail complex with approximately 90 shared parking spaces available for patient and purchaser use, along with the retail complex’s other patrons. According to Village Code, and as referenced in the Village’s Staff Memorandum dated October 31, 2019, the Proposed Location was originally identified as a restaurant which would have required (50) parking spaces. In contrast, the Applicant’s proposed use requires (20) parking spaces, less than half of the amount of spaces for which the Proposed Location intended in the Traffic Study. Therefore, the Applicant more than satisfies the Village’s parking requirements. A Traffic Impact Study was completed by Sam Schwartz Engineering, D.P.C., in June 2016, a copy of which is included in this Application (“Traffic Study”). At the time, the Traffic Study identified the Proposed Location’s use to be “Fast Food/Fast Causal restaurant without drive-through window,” which is a notably more intense use compared to the Applicant’s proposal. Moreover, the Traffic Study provides that certain roadway and traffic signal improvements be completed to accommodate the future traffic volumes for both the Woodman’s parcel to the north and the retail complex to the south. Specifically, the following pertinent improvements which have been completed: 1) a traffic control signal be installed at the intersection of Deerfield Pkwy and the site full access driveway, and 2) improvements at the intersection of Deerfield Pkwy and site full access driveways should also include widening of Deerfield Pkwy to provide a left-turn and right-turn lane in both the eastbound and westbound directions. Thus, the entrance and exit 2.1.c Packet Pg. 37 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 6 driveways to and from the Proposed Location is well designed to prevent traffic hazards, eliminate nuisance and minimize traffic congestion on Deerfield Pkwy and Milwaukee Ave. 2.1.c Packet Pg. 38 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 6. Site Plan for Shops of Buffalo Grove 2.1.c Packet Pg. 39 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 1250 sf 2868 sf RETAIL +/- 4900 SF 2.1.c Packet Pg. 40 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 7. Updated Parking and Traffic Memo 2.1.c Packet Pg. 41 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Sam Schwartz 223 W. Jackson Blvd., Suite 1101 Chicago, IL 60606 (773) 305-0800 samschwartz.com Sam Schwartz Engineering, DPC is a firm authorized to perform engineering services in different states and works in cooperation with Sam Schwartz Consulting, LLC, collectively comprising the Sam Schwartz team. Working as a team provides both companies access to the entire network of professionals. Memorandum To: John Sullivan, Cresco Labs From: Tim Doron Date: November 25, 2019 Re: Parking and Traffic Review, New Cannabis Use, The Shops of Buffalo Grove Introduction At your request, Sam Schwartz Consulting, LLC (Sam Schwartz) has performed a parking analysis and traffic review for the Shops of Buffalo Grove (Center) in order to serve a new medical and adult use cannabis dispensary. This evaluation is performed primarily to determine the adequacy of parking supply. The use is proposed to be located in the Center at 830-840 N. Milwaukee Avenue, Buffalo Grove, Illinois. The dispensary is moving to this location from a previous site of a medical cannabis dispensary located at 1623 Barclay Boulevard in Buffalo Grove, Illinois. This memorandum will address current and projected parking conditions and generally comment on traffic. The study will reference a previous traffic impact study, prepared by Sam Schwartz Consulting for the Center, dated June 2016. Site Area Context The cannabis dispensary will be located within a mixed-use retail shopping center that includes multiple retail and restaurant uses, as well as 11,968 square feet of office on the second floor. The Center is served by a signalized access drive on the western border, which aligns with the Woodman’s access drive to the north. It also contains a right-in/right-out drive nearly centered on the property. The Center is constructed in such a manner that there are two primary retail areas—east and west—that are separated by a driveway. The use is proposed to be located in the eastern retail/office area shown on Figure 1 as Site Location and is the subject of this evaluation. Even though parking for the entire Center is shared, the easterly spaces are those primarily serving the site. It should be noted that this analysis did not include the lot located to the rear of the building which could be 32 additional spaces for employees of the use. It also did not include spaces on the western portion of the Center. Consequently, this analysis is very conservative. The spaces subject to this evaluation are identified on Figure 1 and further classified as Lot A and Lot B. Existing Parking Utilization The eastern portion of the Center, including the subject site, contains a mix of commercial, retail, and office totaling 29,209 square feet. Currently 10,239 square feet is occupied including a Starbucks, T-Mobile, Mod Pizza, and Solidcore, leaving 18,970 square feet vacant and yet to be filled. Parking occupancy surveys were performed for three time periods on a Tuesday, Thursday, and Saturday to identify general utilization of the spaces and remaining availability. Table 1 shows the results of the survey. 2.1.c Packet Pg. 42 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) November 26, 2019 Parking and Traffic Review, New Cannabis Use, The Shops of Buffalo Grove samschwartz.com Page 2 of 3 Table 1: Site Area Lots - Parking Occupancy Capacity Spaces Occupied Tuesday 11/19 12 PM Thursday 11/21 5 PM Saturday 11/23 1PM Lot A 79 spaces 16 14 28 Lot B 46 spaces 9 5 11 Total 125 spaces 25 19 39 Spaces Available +100 +106 +86 Traffic Review The site was the subject of a full Traffic Impact Study dated June of 2016 at which time the entire site had a total commercial tabulation (both east and west) estimated as 99,048 square feet including a gas station, a bank, retail, and office. Included in the total commercial was 9,956 square feet of fast casual restaurant. The traffic study did not break out east and west locations. The traffic study shows that even with the inclusion of the total traffic from the development, along with existing and background growth traffic, the results show a very good Level of Service B at the site signalized drive. The proposed cannabis use will occupy 4,900 square feet of the Center in the eastern portion. Referencing the Institute of Transportation Engineers’ Trip Generation Manual, 10th Edition, a cannabis site of this size should generate a range of trips resulting in 50-80 trips during the peak hours of adjacent street activity. Other times would be lower. It should be noted that a portion of the subject site was previously identified as a fast-casual restaurant on the site plan dated August 24, 2017, and in the June 2016 traffic study. Therefore, these traffic volumes are already included in the study’s site intersection analyses, resulting in a LOS B at the main signalized drive. Projected Parking Demand and Evaluation This report analyzes the parking supply and demand for the eastern portion of the site and specifically the lots located proximate to the use (A and B). As previously mentioned, the analysis is conservative as there are other lots available not included in the analysis, to the west and south, that could park employees- specifically the 32 spaces located on the south side of the building. The parking survey shows a surplus of 86 spaces during the busiest times which is Saturday at 12:00 PM. Current total square footage summaries provided by the owner for the eastern portion of the site are 17,241 square feet of commercial plus 11,968 square feet of office. As planned, the use will employ an estimated 8 staff persons per shift. Information from the owner indicates that an estimated 15 customers per hour could be expected during busy times. Based on engineering standards and referencing the Institute of Transportation Engineers’ Parking Generation Manual, 5th Edition, Land Use Code 882 (Marijuana Dispensary), a use of this size is projected to generate a peak parking demand of 35 vehicles, including employees and patients/customers. Projecting a total future condition, with the proposed cannabis use and full tenant occupancy of the eastern portion of the site, specifically office, there will be ten surplus spaces available even during the peak occupancy times identified in the parking survey. Table 2 which follows shows the results. 2.1.c Packet Pg. 43 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) November 26, 2019 Parking and Traffic Review, New Cannabis Use, The Shops of Buffalo Grove samschwartz.com Page 3 of 3 Table 2: Projected Parking Demand Use Size Parking Demand Office when occupied1 11,968 SF 29 vehicles Cannabis use2 4,900 SF 35 vehicles Vacant retail3 2,102 SF 6 vehicles Total future demand 70 vehicles Minimum available parking (per survey) 86 spaces Peak time/occupancy surplus 16 spaces 1Using 2.39/1000 SF per ITE LUC 710 General Office Building 2Using 7.19/1000 SF per ITE LUC 882 Marijuana Dispensary 3Using 2.91/1000 SF per ITE LUC 820 Shopping Center The use was previously contemplated (partially) as a fast-casual restaurant in the traffic study. Based on ITE standards, a 4,800 square foot fast-casual restaurant would have generated an additional 13 space peak weekday demand than the proposed use. Furthermore, as stated in the “Responses to Special Use Standards” Village Code would have required the restaurant to have 50 parking spaces, while the proposed use is required by Code to have 20 spaces. As shown in Table 1 above, the east and north parking lots, proximate to the site, have plentiful available parking with 86 spaces available at a minimum during our parking counts to accommodate 70 vehicles at most. Conclusion The Center is well designed with good circulation and access and very good operating characteristics when fully leased. Consequently, traffic generated by this use will function efficiently. The study indicates a surplus of spaces in the eastern portion near the site even with full occupancy of the Center. Accordingly, traffic conditions and parking availability is more than adequate to accommodate the proposed use now and in the future. 2.1.c Packet Pg. 44 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 45 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 8. Compliance with Village Ordinances 2.1.c Packet Pg. 46 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 1 Compliance with Village of Buffalo Grove Zoning Ordinances Section 1. The foregoing recitals are hereby adopted and incorporated into and made a part of this Ordinance as if fully set forth herein. Section 2. Title 17.28.080 (Special Use for Adult-Use Cannabis) of the Village Zoning Ordinance is hereby amended by adding the underlined language: a. Adult-Use Cannabis Business Organizations: An adult-use cannabis dispensary as defined in Section 17.28.80-b. Adult-Use Cannabis Business Organization shall not include a cultivation center, craft grower, processing organization, infuser organization or transporting organization as defined by the Illinois Cannabis Regulation and Tax Act. PDI Medical III, LLC (the “Applicant”) is applying for zoning approval for its Adult-Use Cannabis Business Organization which is an adult-use cannabis dispensary and will not include a cultivation center, craft grower, processing organization, infuser organization, or transporting organization as defined by the Illinois Cannabis Regulation and Tax Act. b. Adult-use cannabis dispensary: An adult-use cannabis dispensary shall be defined as a facility operated by an organization or business that is licensed by the Illinois Department of Financial and Professional Regulation to acquire cannabis from licensed cannabis business organizations for the purpose of selling or dispensing cannabis, cannabis- infused products, cannabis seeds, paraphernalia or related supplies to purchasers or to qualified registered medical cannabis patients and caregivers, per the Cannabis Regulation and Tax Act (P.A. 101-0027) as it may be amended from time to time, and regulations promulgated thereunder. The Applicant is currently licensed by the Illinois Department of Financial and Professional Regulation to operate a medical cannabis dispensary under the Compassionate Use of Medical Cannabis Pilot Program Act and has received its conditional adult -use same site licensure by the Illinois Department of Financial and Professional Regulation. c. Purpose and Applicability. It is the intent and purpose of this Section to provide regulations regarding the dispensing of adult-use cannabis occurring within the corporate limits of the Village. Such facilities shall comply with all regulations provided in the Cannabis Regulation and Tax Act (P.A. 101-0027) (Act), as it may be amended from time to time, in the regulations promulgated thereunder, and the regulations provided below. In the event that the Act is amended, the more restrictive of the state or local regulations shall apply. The Applicant will comply with all regulations provided in the Cannabis Regulation and Tax Act and understands that if the Act is amended, the more restrictive of the state or local regulation will apply. d. Special Use. An adult-use cannabis dispensary, as defined herein, shall require an approval of a Special Use, which use may include a medical cannabis dispensary as 2.1.c Packet Pg. 47 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 2 defined in Section 17.12.399 (Definition) and shall be processed in accordance with Chapter 17.28 (Special Uses) of this Title as provided herein, and shall be subject to the following conditions: The Applicant is seeking approval of a Special Use Permit from the Village of Buffalo Grove. i. The adult-use cannabis dispensary must be operated by an organization or business that is currently licensed by the Illinois Department of Financial and Professional Regulation to operate a medical cannabis dispensary under the Compassionate Use of Medical Cannabis Pilot Program Act (410 ILCS 130 et seq.) The Applicant is currently licensed by the Illinois Department of Financial and Professional Regulation to operate a medical cannabis dispensary under the Compassionate Use of Medical Cannabis Pilot Program Act and has received its conditional adult-use same site licensure by the Illinois Department of Financial and Professional Regulation. ii. The adult-use cannabis dispensary must keep a copy of the dispensing organization agent identification card issued pursuant to the Compassionate Use of Medical Cannabis Pilot Program Act visible at all times. The Applicant’s employees will have their badges visible at all times pursuant to the Act. iii. There shall be no more than two adult-use cannabis dispensaries permitted at any one time. The Applicant is seeking one license for a single adult-use cannabis dispensary located at 830-840 N. Milwaukee Ave. (the “Proposed Location”) in the Village of Buffalo Grove. iv. The adult-use cannabis dispensary may not be located within 1,000 feet of the property line of a pre-existing public or private nursery school, pre-school, primary or secondary school, day care center, or day care home, museum, library and substance abuse treatment or counseling center within the Village of Buffalo Grove corporate limits. Notwithstanding the foregoing, an adult-use cannabis dispensary will not be deemed to violate this provision if one of the school related facilities locates within the 1,000-foot spacing after the adult-use cannabis dispensary has been granted special use approval by the Village. Learning centers and vocational/trade centers shall not be classified as a public or private school for purposes of this Section. The Applicant has checked for the setbacks provided in both the Village’s ordinance and the Act and to its knowledge, meets the requirements of the 1,000-foot rule for a pre-existing public or private nursery school, pre-school, primary or secondary school, day care center, or day care home, museum, library, and substance abuse treatment or counseling centers within the Village of Buffalo Grove corporate limits. 2.1.c Packet Pg. 48 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 3 v. At least 85% of the floor area of any tenant space occupied by an adult-use cannabis dispensary shall be devoted to the activities of the dispensary as authorized by the Act. Any request for reduction in floor area percentage shall be evaluated as part of the Special Use request. The Applicant intends to use the entirety of the floor area of the tenant’s space for activities of an adult-use cannabis dispensary. vi. For purpose of determining required parking, the adult-use cannabis dispensary shall be classified as a retail and wholesale trade pursuant to Section 17.36.040 of the Zoning Ordinance; provided however that the Village may require that additional parking be provided as a result of the analysis completed through the Special Use process. The Proposed Location is compliant with the Village’s parking space requirements and provides for ADA accessibility. The Applicant’s location is within a retail complex with approximately 90 shared parking spaces available for patient and purchaser use, along with the retail complex’s other patrons. According to the Village code, the Proposed use requires 20 spaces. As noted in the Village staff report regarding the Applicant’s request for a pre-application conference, the Proposed location was originally identified as a restaurant which would have required 50 parking spaces. The proposed use requires less than half of that amount, but the number of shared parking spaces built and available to the Applicant’s location will remain unchanged (i.e., 90 spaces). Therefore, the Applicant more than satisfies the Village’s parking requirements. vii. Other than cannabis-infused food products, no adult-use cannabis dispensary shall also sell food for consumption on the premises in the same tenant space. The Applicant will not sell food for consumption other than cannabis-infused food products at the Proposed Location. viii. On-site consumption of cannabis shall be prohibited within an adult-use cannabis dispensary and on the premises. The dispensary shall be responsible for enforcing the prohibition of on-site consumption of cannabis under all circumstances inside and outside the dispensary and on the premises. The Applicant will prohibit on-site consumption at the dispensary and its premises. The Applicant has standard operating procedures and security procedures that provide for prohibiting on-site consumption including anti-loitering procedures. ix. The adult-use cannabis dispensary may not conduct any sales or distribution of cannabis other than as authorized by the Act. 2.1.c Packet Pg. 49 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 4 The Applicant will not conduct any sales or distribution of cannabis other than as authorized by the Act. The Applicant has a full suite of standard operating procedures (“SOPs”) designed to help prevent diversion. x. No adult-use dispensary shall be maintained or operated in a manner that causes, creates, or allows the public viewing of adult-use cannabis, cannabis-infused products or cannabis paraphernalia or similar products from any sidewalk, public or private right-of-way or any property other than the lot on which the dispensary is located. No portion of the exterior of the dispensary shall utilize or contain any flashing lights, search lights or spotlights or any similar lighting system. No cannabis, cannabis-infused products, or cannabis paraphernalia will be visible from any sidewalk, private or public right-of-way or any property other than the lot on which the dispensary is located. Purchasers can expect the physical environment to be inviting and warm, a source of everyday wellness. The dispensary will reflect the interior design, with a bright and welcoming palette. The exterior of the dispensary will have a gentle aesthetic of light wood tones and whites with brightly colored accents. The signage at the dispensary will say “Sunnyside*,” and will generally fit in with the surrounding neighborhood. The goal is for purchasers to have the same experience at the Applicant’s dispensary as one might have at a high-end retailer such as Apple or Whole Foods. xi. No adult-use cannabis dispensary nor any other person or entity shall place or maintain, or cause to be placed or maintained, an advertisement of cannabis or cannabis-infused product in any form or through any medium: 1. Within 1,000 feet of the perimeter of a pre-existing public or private nursery school, pre-school, primary or secondary school, day care center, or day care home within the Village of Buffalo Grove corporate limits; or The Applicant will not display advertisements within the 1,000-foot perimeter of a pre-existing public or private nursery school, pre-school, primary or secondary school, day care center, or day care home within the Village of Buffalo Grove corporate limits. 2. On or in a public transit vehicle or public transit shelter; or The Applicant will not display advertisements on or in a public transit vehicle or public transit shelter within the Village of Buffalo Grove. 3. On or in publicly owned or publicly operated property. All advertising shall comply with the rules and regulations set forth in the Cannabis Regulation and Tax Act (P.A. 101-0027). The Applicant will not display advertisements on or in publicly owned or publicly operated property within the Village of Buffalo Grove. All advertising will comply with the rules and regulations in the Cannabis Regulation and Tax Act. 2.1.c Packet Pg. 50 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 5 xii. Each adult-use dispensary shall prohibit any person who is not at least twenty- one (21) years of age from entering the dispensary, except for cardholders granted medical access under the Compassionate Use of Medical Cannabis Act over 18 years of age, whose access shall be limited to the medical cannabis dispensing area only. Dispensaries shall not employ anyone under the age of twenty-one (21). Access to the dispensary shall be limited exclusively to dispensary staff and those specifically authorized under the Cannabis Regulation and Tax Act (P.A. 101-0027). The Applicant will only allow qualifying purchasers and qualifying medical patients over 18 years of age into the dispensary. The dispensary’s employees will escort any medical patients 18-20 years of age into a medical consultation room for their transaction to take place. After, employees will escort the medical patient back out of the dispensary through the main entrance to avoid the sales floor altogether. e. Additional Requirements. As part of the Special Use application requirements, Petitioner shall submit plans regarding installation of building enhancements, such as security cameras, security systems, lighting or other improvements to ensure the safety of employees and customers of the adult-use cannabis dispensary, as well as its environs. Said improvements shall be determined based on the specific characteristics of the dispensary and of the floor plan for an adult-use cannabis dispensary and the site on which it is located, consistent with the requirements of the Act. The Applicant has submitted plans for the building enhancement and build-out at 830-840 N. Milwaukee Ave. with adult-use dispensing in mind. These enhancements and changes will create a safe and compliant environment for all qualifying purchasers and patients. i. The Special Use Applicant shall submit a complete copy of their license application and all plans submitted to the State of Illinois, or any agency thereof, as part of their special use application. Before issuance of a certificate of occupancy or otherwise opening to the public, Adult-Use Cannabis Business Organizations must provide a copy of their state license to operate as an adult-use cannabis dispensary issued by the Illinois Department of Financial and Professional Regulation. The Applicant has submitted a complete copy of their license application and all plans submitted to the State of Illinois as a part of its special use application. The Applicant will submit a copy of their state license to operate as an adult-use cannabis dispensary issued by the Illinois Department of Financial and Professional Regulation. ii. Petitioner shall file an affidavit with the Village affirming compliance with Section 17.28.80-c as provided herein and all other requirements of the Act. The Applicant will file an affidavit affirming compliance with Section 17.28.80-c affirming compliance with all regulations provided in the Cannabis Regulation and Tax Act. The Applicant understands that if the Act is amended, the more restrictive of the state or local regulation will apply. 2.1.c Packet Pg. 51 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Request for Special Use — 830-840 N. Milwaukee Ave 6 iii. The Special Use Applicant shall submit additional information as required by the Village during the Special Use process. The Applicant will comply with the Village’s requests for additional information with the Village’s understanding that some information may be proprietary and confidential and should be treated as such. 2.1.c Packet Pg. 52 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 9. Floor Plan and Interior Renderings 2.1.c Packet Pg. 53 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) CRESCO LABS 830 N MILWAUKEE TEST FITS AUGUST 21, 201926, 2019 2.1.c Packet Pg. 54 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 14 A C D E F B 23 ENTRY EXIT EX I S T I N G U T I L I T I E S ATM BRICKED OVER 514 SF COUNTER 2142 SF RETAIL FLOOR 436 SF VAULT 105 SF OFFICE 166 SF BREAKROOM 333 SF RECEIVING/ ERADICATION 56 SF UNISEX 64 SF VESTIBULE 376 SF SECURITY 78 SF IT 111 SF UNDER 21/ CONSULT 3' - 2 " 11 ' - 4 " 57 SF UNISEX 5' - 0 " 5' - 0 " 5' - 6 " 5' - 6 " NORTHOPTION B BUFFALO GROVE CRESCO LABS 19.0115.006 08/21/1908/21/1908/26/19 ENTRY 2.1.c Packet Pg. 55 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 56 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 57 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 58 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 10. Updated Exterior Renderings 2.1.c Packet Pg. 59 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) BUFFALO GROVE EXTERIOR CREATIVE MOCK-UPS | 12.10.2019 2.1.c Packet Pg. 60 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) Buffalo Grove |2 2.1.c Packet Pg. 61 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 11. Same-Site Operations and Management Practices 2.1.c Packet Pg. 62 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) OPERATION AND MANAGEMENT PRACTICES PLAN FOR ILLINOIS MEDICAL CANNABIS, OAPP PROGRAM, AND ADULT-USE Updated October 8, 2019 TABLE OF CONTENTS General Provisions 2 Employee Training 3 Patient, Caregiver, and Adult Use Education 5 Staffing 6 Supply Plan 8 Inventory Control 9 Recordkeeping 14 Audits 15 Surveillance and Security Overview 17 Security Procedures for Loss and Destruction 20 Natural Disasters 21 2.1.c Packet Pg. 63 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 2 General Provisions These Standard Operating Procedures (“SOPs”) include guidelines for PDI Medical’s (“PDI”) dispensary operations including sales to medical patients (“patients”), patient caregivers (“caregivers”), and purchasers (defined below). PDI reviewed its current policies and procedures to establish requirements to maintain and comply with written policies and procedures as submitted in the Business, Financial, and Operating Plan as required by Section 15-65 (a) of the Cannabis Regulation and Tax Act (“the Act”) or by rules established by the Illinois Department of Financial and Professional Regulation (“IDFPR”). Employee Manual: A detailed employee policy and benefit manual will be distributed to all employees. The manual will be attached to this operations plan. Operating Hours: The operating hours to purchase cannabis and/or cannabis products for medical or adult use purposes will be between the dispensary's normal operating hours; ensuring that the transactions will occur between 6 a.m. and 10 p.m. The dispensary’s normal operating hours will be 9 a.m. to 10 p.m., seven (7) days a week. Definition of “purchasers”: A “purchaser” is defined as a person 21 years of age or older who acquires cannabis for adult use. “Purchaser” does not include a cardholder under the under the Compassionate Use of Medical Cannabis Pilot Program Act. Limited Access Area: “Limited Access Areas” for all of the Dispensary’s policies and procedures will be defined as a building, room, or other area under the control of a cannabis dispensing organization licensed under this Act and upon the licensed premises with access limited to patients, purchasers, dispensing organization principal officers and other dispensing organization agents, or service professionals conducting business with the dispensing organization. Restricted Access Areas: “Restricted Access Areas” for all of PDI’s policies and procedures will be defined as areas limited to dispensary agents and service professionals while escorted by a dispensary agent. All employees with access to the restricted access area will undergo a comprehensive background check and criminal history check. All employees will undergo an extensive initial security training and semi-annual enhanced security training and emergency drills. Any employee attempts to enter the restricted access area will need to scan their security badge and their entrance to the restricted access area will be monitored and overseen by security personnel. The security door scanner will record the date and time of access. The video surveillance system will record the employee entering the restricted access area and all activity inside. Each day, inventory reconciliation will be performed by the Agent-In-Charge (“AIC”). All cannabis and cannabis infused product will be counted. Daily inventory counts are recorded into PDI’s BioTrack system. Signage: All signage required by Sections 15-65 (h), (i) of the Act will be posted in a conspicuous location of the dispensary accessible to purchasers and will follow all rules and regulations referenced in Section 15-65 (h)(3). 2.1.c Packet Pg. 64 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 3 • Section 15-65 (h) Signage that shall be posted inside the premises. o (1) All dispensing organizations must display a placard that states the following: “Cannabis consumption can impair cognition and driving, is for adult use only, may be habit forming, and should not be used by pregnant or breastfeeding women.” o (2) Any dispensing organization that sells edible cannabis-infused products must display a placard that states the following: ▪ (A) “Edible cannabis-infused products were produced in a kitchen that may also process common food allergens.”; and ▪ (B) “The effects of cannabis products can vary from person to person, and it can take as long as two hours to feel the effects of some cannabis-infused products. Carefully review the portion size information and warnings contained on the product packaging before consuming.” o (3) All of the required signage in this subsection (h) shall be no smaller than 24 inches tall by 36 inches wide, with typed letters no smaller than 2 inches. The signage shall be clearly visible and readable by customers. The signage shall be placed in the area where cannabis and cannabis-infused products are sold and may be translated into additional languages as needed. The Department may require a dispensary to display the required signage in a different language, other than English, if the Secretary deems it necessary. • Section 15-65 (i) A dispensing organization shall prominently post notices inside the dispensing organization that list activities that are strictly prohibited and punishable by law, including, but not limited to: o (1) no minors permitted on the premises unless a minor is a minor qualifying patient under the Compassionate Use of Medical Cannabis Pilot Program Act; o (2) distribution to persons under the age of 21 is prohibited; o (3) transportation of cannabis or cannabis products across state lines is prohibited. Employee Training The dispensing organization shall maintain evidence of all training provided for every agent in its files and subject to inspection and audit by the Division. At a minimum, agents shall receive eight hours of training annually, and the dispensary will maintain evidence of all training for every agent in its files for inspection by the Division. Training for Adult Use Procedures The Dispensary will provide agent training pursuant to Section 15-40 (i)(3) including continuing training with over two hours of instruction time approved by the Department including: a. Health and safety concerns of cannabis use, including the responsible use of cannabis, its physical effects, onset of physiological effects, recognizing the signs of impairment, and appropriate responses in the event of overconsumption; b. Laws and regulations on driving while under the influence; c. Prohibitions on sales to minors; d. All relevant Illinois laws and rules; 2.1.c Packet Pg. 65 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 4 e. Acceptable forms of identification, including how to check identification and common mistakes made during verification; f. Safe storage of cannabis; g. Compliance with all inventory tracking regulations; h. Waste handling, management, and disposal; i. Health and safety standards at the dispensary; j. Maintenance of records; k. Security and surveillance requirements; l. Permitting inspections by State and local licensing and enforcement authorities; m. Privacy issues; and n. Packaging and labeling requirements. The Dispensary may use methods including, but not limited to, reading materials, written assessments, classroom training, online training programs, skill demonstrations, certifications, and on-the-job training as applicable for the task’s complexity. Training materials will be created, revised, reviewed, and approved via Cresco Labs’ document change management policy. Training will be assigned and documented within the Company’s learning management system (LMS). The above is in addition to all training performed by PDI for new and renewing dispensary agents. Training for OAPP Procedures Pursuant to the Act and governing regulations, a Dispensing Organization shall ensure agents receive a minimum of eight (8) hours of training annually, unless otherwise approved by IDFPR. Staff will be educated that for the purposes of the (“Opioid Alternative Pilot Program”) OAPP, “Opioid” means a narcotic drug or substance that is a Schedule II controlled substance under paragraph (1), (2), (3), or (5) of the subsection (b) or under subsection (c) of Section 206 of the Illinois Controlled Substances Act, and that an “Opioid Alternative Pilot Program participant” means an individual who has received a valid written certification to participate in the OAPP for a medical condition for which an opioid has been or could be prescribed by a physician based on generally accepted standards of care. Staff training shall, at a minimum, include: a. Education into the provisions of the OAPP and applicable rules; b. How to effectively operate PDI’s BioTrack POS system and to utilize the State’s OAPP verification and tracking system; c. The requirements for registration of OAPP patients and verification of their identity and ability to acquire cannabis pursuant to the OAPP; d. Proper inventory tracking for sales of cannabis products to MCPP, OAPP, provisional patients and adult use purchasers; and e. The methods and importance of preserving confidentiality and patient privacy rights for all dispensary patients. 2.1.c Packet Pg. 66 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 5 The Dispensary may use methods including, but not limited to, reading materials, written assessments, classroom training, online training programs, skill demonstrations, certifications, and on-the-job training as applicable for the task’s complexity. Training materials will be created, revised, reviewed, and approved via Cresco Labs’ document change management policy. Training will be assigned and documented within the Company’s learning management system (LMS). The above is in addition to all training performed by PDI for new and renewing dispensary agents. Patient, Caregiver, and Adult Use Education The first services to be provided by the Company will be the education of its patients, caregivers, and purchasers in the use of cannabis. The Company will always have dispensary agents with vast experience to ensure that its educational services are second to none. The Company will further train its employees about the strains of cannabis and their effect on the various qualifying conditions under Illinois law. Agents will also be trained to adhere to confidentiality requirements, specific uses of cannabis or cannabis-infused products, instruction regarding regulatory inspection preparedness and law-enforcement interaction; awareness of the legal requirements for maintaining status as an agent and other topics as specified by the dispensing organization or the Division. OAPP Patient Education The OAPP patient education plan shall: a. Detail the benefits or drawbacks of cannabis strains or products in connection with medical conditions for which opioids can be/are prescribed for; b. Include updated information about the purported effectiveness of strains of medical cannabis on specific conditions; c. Include current educational information issued by DPH about the health risks associated with the use or abuse of cannabis; d. Include whether possession of cannabis is illegal under federal law; e. Include information about possible side effects; f. Include prohibition on smoking medical cannabis in public places; and g. Include any other appropriate patient or participant education or support materials. All dispensary agents shall be trained and shall be knowledgeable in regard to all of these subjects, so they can converse with and educate all medical cannabis patients, including OAPP participants, regarding the risks and benefits of medical cannabis. Participant educational materials shall be updated with current science, regulations, and shall be consistent with other educational materials provided by DPH, IDFPR, or other authoritative sources of information regarding medical cannabis. 2.1.c Packet Pg. 67 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 6 Staffing Managing Increased Dispensary Traffic The Dispensary will adhere to the rules and regulations outlined by IDFPR on maximum capacity restrictions. The AIC will be responsible for employees and security staff to ensure that maximum capacity is never exceeded in any facility area. Additionally, to prepare for increased traffic, the Dispensary will increase staffing including, but not limited to the public access area, dispensing counter, and security to reduce wait time. The dispensary will encourage online ordering, using an express checkout for expedited service. Staffing The dispensary will be staffed at all times with a minimum of two dispensary employees, including one security officer. The dispensary exterior door will not be opened unless both the security officer and agent are present. At all times, the dispensary will keep an appropriate amount of staff for all patients, caregivers, and purchasers in the limited access dispensing area. No patient, caregiver, or purchaser will be allowed into the limited access area unless there is appropriate staffing on the sales floor. Entering the Facility At the dispensary, only patients, caregivers, and purchasers will have access to specific areas where cannabis is dispensed or handled. All persons intending to obtain cannabis will enter the facility through a security vestibule, which will be monitored by video surveillance that captures the face of each person entering the facility. No person shall be allowed to enter the limited access area until that person is verified by the dispensary agent. Designated employees will be charged with greeting each person that enters the waiting area and checking identification. They will verify the patient, caregiver, or purchaser information as stated above before allowing admittance into the limited access area. After verification, the security officer will allow the patient, caregiver, or purchaser through the door to the sales floor. Once a patient, caregiver, or purchaser is inside the limited access area, they will be greeted and directed to the appropriate area depending on their needs. After the patient, caregiver, or purchaser chooses his or her cannabis product, they will have assistance processing their transaction through the steps outlined in the Inventory Control section of this document. Electronic Identification Scanners PDI will use an approved electronic scanner to retrieve and to verify the validity of an individual’s identification and the purchaser’s age upon arrival. Any information obtained by the scanner will not be retained, used, shared, or disclosed. 2.1.c Packet Pg. 68 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 7 Adult Use Cannabis Limits for Illinois and Non-Illinois Residents If an individual is an Illinois resident, the dispensary will not sell more than 30 grams of cannabis flower, 500 mg of THC contained in cannabis-infused product, and/or five (5) grams of cannabis concentrate per transaction. If the individual is a non-Illinois resident the dispensary will not sell more than 15 grams of cannabis flower, 250 mg of THC contained in cannabis-infused product, and/or two and a half (2.5) grams of cannabis concentrate per transaction. ADULT USE ACCEPTABLE IDENTIFICATION: For adult use purposes, the individual must be over 21 years of age to enter the dispensary. Upon an individual’s entry into the dispensary, an employee will immediately inspect the individual’s proof of identification, state of residence, and determine if the individual is 21 years of age or older. If the individual is younger than 21 years old, he or she will not be admitted unless they produce an active medical registration card issued by the Medical Use of Marijuana Program – and is accompanied by a personal caregiver with an active medical registration card for those under 18 years old. Acceptable forms of identification shall include, but are not limited to a driver’s license, state ID, or military ID. The identification must be valid and unexpired. The identification must also contain a photograph and the person’s date of birth. The company will refuse to sell marijuana to any consumer who is unable to produce valid proof of identification. ADULT USE EXAMPLES OF ACCEPTABLE IDENTIFICATION: For proof of ILLINOIS residence, 21+ age verification, and full allocation: Will Illinois drivers’ licenses be allowed? Yes. Will Illinois state IDs be allowed? Yes. For proof of 21+ age verification: Will passports be allowed? Yes. Will military IDs be allowed? Yes. Will passport cards be allowed? No. Identification that will not be allowed: Will a non-Illinois drivers’ license and lease (or other document) be allowed? No. Will a non-Illinois state ID and lease (or other document) be allowed? No. Will a school ID be allowed? No. Will an FOID card be allowed? No. Will a AAA card be allowed? No. Will a credit card be allowed? No. Will a lease be allowed? No. Will a bill be allowed? No. 2.1.c Packet Pg. 69 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 8 Medical Identification and Purchasing Limits If a medical patient is above 21 years old, the same limits as Adult Use apply. (If an individual is an Illinois resident, the dispensary will not sell more than 30 grams of marijuana, 500 mg of THC in a cannabis-infused product, and/or five (5) grams of cannabis concentrate per transaction.) For medical patients under 21 years old, the dispensary will not sell more than 2.5 ounces of usable cannabis during a period of 14 days unless a patient has a waiver from a physician approved by the Department for a higher limit. This is subject to change in 2020, with the repeal of this section in the Compassionate Use of Medical Cannabis Pilot Program Act scheduled to be repealed on July 1, 2020. Medical patients, caregivers, and OAPP patients must provide their medical card and state ID or drivers’ license to enter the facility. Supply Plan PDI will be able to keep a continuous supply of medical cannabis through previously developed relationships with cultivators. PDI currently purchases cannabis from most cultivators in the state and will be able to maintain an extensive supply of cannabis for both medical and adult use. PDI continues to work closely with many cultivators on a daily basis, including Cresco Labs, Ataraxia, Revolution Cannabis, GTI, Pharmacannis, and several others. PDI typically orders every other week from these suppliers and intends to keep a regular and fresh supply of medical and adult use cannabis. PDI will also work with craft growers, infusers, transporters, and other dispensaries to accept product and ensure a wide variety of products at its dispensary. The AIC will ensure that an assortment of products from various cannabis establishment licensees are available; providing that no single licensee’s product makes up more than 40 percent of the total inventory available for sale. Managing Adult Use and Medical Supply PDI’s priority is providing patients the care they need and has created a plan to maintain supply for a seamless integration to Adult Use, in which current patients will have the same care and service they do with the current dispensary experience. Using Cresco Labs’ data analytics for patient demand, the Dispensary is able to keep track of orders making it simple to keep a supply of cannabis products comparable to what patients currently require. Cresco Labs will utilize the sales data from December 25, 2018 to June 25, 2019 (six months prior to the effective date of the Act) as a benchmark to mark and reserve a quantity and variety of medical cannabis products to be specifically allocated to patients, caregivers, provisional patients, and OAPP participants upon the addition of the Adult Use market at PDI. Thereafter, Cresco Labs will continue to analyze the preceding six months’ data to regularly adjust stock reserved for medical patients in accordance with patient demand. Products reserved for registered patients will be stored on-site and be clearly marked using a color-coding system to differentiate from the products marked for adult use. 2.1.c Packet Pg. 70 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 9 Inventory Control PDI will track its inventory from its order from the cultivation through the sale to the patient, caregiver, or purchaser. PDI will ensure its records are accurate and accessible at any time through BioTrackTHC (“BioTrack”), the State’s automatic data processing/point-of-sales system (“ADP/POS”) in real time. PDI will conduct its inventory tracking using the following process, which will be under constant video surveillance: a. The complete order record sent to the cultivation center, processor, craft grower, or infuser will be entered into BioTrack. b. Upon arrival at the dispensary, a dispensary security officer and an Agent-In-Charge (“AIC”)/dispensary agent will meet the delivery vehicle and take them into the secure vestibule where staff will verify the strain, variety, and batch number of the delivery. The employee will also check the registry identification number of the registered cultivation center, processor, craft grower, or infuser providing the medical and/or adult use cannabis and the cultivation agent delivering the cannabis. c. All delivery items will then be put into the secure product vault and clearly marked using a color-coding system to differentiate products marked for medical or adult use. d. When necessary, product will be taken from the vault and placed in secured mobile storage containers in restricted access areas. e. The dispensary will have two separate queueing lines – one for patients and caregivers, and one for purchasers. The queue for patients and caregivers will be assisted before the queue for purchasers. f. At the time of sale, the dispensary agent will remove the correct product according to patient, caregiver, or purchaser status from the locked mobile storage container. g. BioTrack will record the patient, caregiver, or purchaser and specific product given to the patient, caregiver, or purchaser and mark which product allocation the product came from. h. FOR MEDICAL ONLY: The ADP/POS will be able to mark sales from registered patients, ensuring that those sales receipts are separate. In the event a medical patient receives inventory allocated for adult use, the Dispensary will ensure that the product is re- allocated correctly in the ADP/POS system. Dispensary agents will check to be sure products are labeled correctly for sale, as medical patients are not prohibited from purchasing as “Purchasers” as defined by the Cannabis Regulation and Tax Act (“the Act”). i. FOR ADULT USE ONLY: The ADP/POS will be able to mark sales from adult use, ensuring that those sales receipts are separate. Agents will check to ensure products are labeled correctly for sale and that adult use product comes from the accurate allocation, as there must be a reserved quantity and variety of medical marijuana products available for patients, caregivers, provisional patients, and OAPP participants not available for adult use purchasers. j. PRODUCT SHORTAGE PLAN: In the unlikely event the dispensary ever experiences a shortage of cannabis or cannabis-infused products, qualifying patients, caregivers, provisional patients, and OAPP participants would be served before purchasers from the stock intended for adult use. k. SALES TO EMPLOYEES: a. Employee adult use and patient purchases may only be made at the end of a shift when the employee is leaving for the day. 2.1.c Packet Pg. 71 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 10 b. Employee sales must be made by an AIC (employees cannot conduct their own purchase) c. Employee purchases must be placed in a sealed bag at the POS d. The Agent that sold the product must then walk the employee out of the dispensary with their purchase. e. The employee cannot return to the dispensary with their purchase. l. Each day, an inventory reconciliation will be performed by an AIC and the staff necessary to complete a full count. All cannabis and cannabis infused products sold, and remaining inventory, will be counted. m. The daily beginning and ending inventory counts, including any new deliveries, will be recorded. Registration of OAPP Patients PDI fully complies with the requirements of OAPP and implements regulations adopted by the IDFPR’s Notice of Emergency Amendments, implementing and authorized by the Compassionate Use of Medical Cannabis Pilot Program Act. PDI has the ability to take the required passport-style photographs and will work with the prospective OAPP patients (at computers and scanners to be located in public access area) to fill out the registration and upload the documents necessary to complete a patient’s registration application for the OAPP if the patient is not already registered and meets OAPP requirements. Once a patient receives a written physician certification (“PC”) from a duly authorized medical doctor, the process for registering with the Illinois Department of Public Health (“DPH”) is completed online. Registration requires the OAPP patient to provide an Illinois driver’s license or state ID, verification of the OAPP patient’s address; a passport-style photograph and payment of a $10 registration fee for the 90-day OAPP registration. Notifications to IDFPR PDI shall notify the Division in writing within 48 hours in the event it dispenses in excess of a patient’s usable amount permitted under the Compassionate Use of Medical Cannabis Act, or the OAPP. The notification shall be reviewed and/or submitted by an AIC, and shall include: a. The date and time of the transaction which caused the overage; b. The name of the AIC on duty; c. The amount of the overage; d. The patient or provisional patient’s registry identification number; and e. A detailed narrative of the circumstances surrounding the overage. Whenever an incident occurs which requires PDI to submit a notification to IDFPR, or any other agency of the State, PDI shall include a description of the methods PDI will use to self-correct and prevent such type of over-dispensing or other incident from reoccurring. 2.1.c Packet Pg. 72 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 11 Dispensing Cannabis to OAPP Patients PDI has established an SOP for dispensing cannabis products to patients registered under the OAPP, which provides that the following procedures will be followed: Before dispensing medical cannabis to an OAPP participant, the dispensary agent shall: a. Confirm the OAPP participant is in the Illinois Cannabis Tracking System and is authorized by DPH to purchase medical cannabis; b. Verify the OAPP participant’s identity by confirming the following: 1. The patient’s name, phone number, and identity from a state or federally-issued identification card; 2. The OAPP patient’s date of birth (must be over 21 years of age); 3. That original written certification was submitted in the application and includes the name of the issuing physician; 4. That the certification was issued within 90 days of registering in the OAPP; and 5. The start and expiration date of the OAPP participant can purchase medical cannabis. c. Confirm the OAPP participant is not a registered qualifying patient or provisional patient; d. Verify the amount of medical cannabis of the OAPP participant is requesting would not cause the participant to exceed the limit of obtaining more than two and one-half ounces of medical cannabis during any 14-calendar day period. e. Enter the following information into the Illinois Cannabis Tracking System for the OAPP participant: 1. The dispensing organization’s registry identification number; 2. The dispensing organization agent’s registry identification ID number. 3. Identity of the individual to whom medical cannabis was dispensed; 4. The amount, type, strain, weight and usable weight of medical cannabis dispensed; 5. The date and time the medical cannabis was dispensed A PDI AIC will immediately notify the Division (and in no circumstances more than forty - eight (48) hours after) if the Dispensary determines or reasonably believes that a person is attempting to submit or did submit a fraudulent written certification in an OAPP application. Dispensing Cannabis to Provisional Patients PDI has established a standard operating procedure for dispensing cannabis to provisional patients in accordance with OAPP, providing the following: a. Before allowing a provisional patient into the limited access area, staff must verify the person’s identity by comparing the provisional patient’s provisional registration along with state or federally-issued identification. b. Before dispensing medical cannabis to a patient, provisional patient, or a caregiver, the agent shall: 1. Verify the validity of the patient or caregiver’s patient registry identification card or verify the validity of the provisional patient’s provisional registration. 2.1.c Packet Pg. 73 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 12 2. Confirm the patient, provisional patient, or designated caregiver’s registry identification number is in the State’s electronic verification system. 3. Verify that the patient or caregiver has a current authorization by DPH to purchase medical cannabis. 4. Verify that the provisional patient’s provisional registration has not expired and is authorized by DPH to purchase medical cannabis. 5. Verify that the amount of medical cannabis the patient, provisional patient, or caregiver is requesting would not cause them to exceed the limit on obtaining no more than two and one-half ounces of medical cannabis during any 14-calendar- day period, unless approved by IDFPR. c. Before dispensing medical cannabis to a patient, provisional patient, or a designated caregiver, the agent shall enter the following information into the state’s verification system: 1. The dispensing organization agent’s registry identification number; 2. The dispensing organization’s identification number; 3. The amount, type, strain, weight, and usable weight of medical cannabis dispensed; 4. Identity of the individual to whom medical cannabis was dispensed, whether the patient, provisional patient, or caregiver; and 5. The date and time the medical cannabis was dispensed. A PDI AIC will immediately notify IDFPR (and in no circumstances after more than 48 hours) if PDI determines or reasonably believes that a person is attempting to submit or did submit a fraudulent written certification in any application submitted to the state. Security Procedures for the Delivery of Cannabis When a cultivator, processor, craft grower, or infuser delivers and the products are accepted and logged into BioTrack, the AIC or inventory manager records each product’s expiration date into an expiration date log to ensure the product does not expire at the dispensary. Once each week, the AIC or inventory manager will reference the expiration logs to see if a product is due to expire in the next month and to ensure that “first in products are the first sold.” Products will be placed in the secure sales cabinets with the oldest products at the front and the newest in the back to guarantee that the first in are the first out. Any product set to expire in a month will be identified and tracked separately to ensure the product is sold before expiration. If the product expires, it will be destroyed in accordance with state law (outlined in the waste section of this plan). 2.1.c Packet Pg. 74 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 13 Delivery Confirmation The dispensary will confirm receipt of all products through the use of the BioTrackTHC inventory system. The precise amount, type, strain and batch will be ordered from the cultivation center, processor, craft grower. Upon delivery, the dispensary will have two employees present, including the AIC, plus a security officer, to verify that the count is accurate, and all products were received. Both employees will be responsible for ensuring an accurate count. Once visual confirmation is made that all products have been delivered matching both the shipping manifest and the BioTrackTHC order form, the dispensary employee and AIC will enter the confirmation of delivery in BioTrack. No delivery will be complete until it is verified by at least two dispensary employees including the AIC and the BioTrackTHC computer system. Security Procedures: Upon arrival at the dispensary, the cultivation delivery team will be met by the AIC, a dispensary agent, and the security officer. No delivery shall take place unless two employees including the AIC are present to accept the delivery. The security officer, dispensary agent, and AIC shall escort the delivery team into the secure delivery area. The entire process will be recorded on video surveillance. Inside the secure delivery room, the dispensary employee and AIC will verify that each item from the cultivation center, processor, craft grower, or infuser has been delivered per the shipping manifest sent the prior day from the cultivation center and verified by the BioTrack dispensary order manifest. The dispensary employee and AIC will check each item off on the shipping manifest. The manifest will detail the specific type of product, strain, variety and batch number. The dispensary employee and AIC will verify that each of these matches the initial order in the BioTrack system. Once all items are verified, the AIC will sign off on the cultivation center, processor, craft grower, or infuser manifest. Two employees, including the AIC, will verify that every item ordered from the cultivation center, processor, craft grower, or infuser has been delivered. If the dispensary employee, AIC, and security officer determine that any item is missing from the manifest or has been tampered with or has a broken seal or any other irregularity, the employee, AIC, and security officer will refuse acceptance of the disputed item. The dispensary employee , AIC, and security guard shall immediately list the incomplete or corrupted delivery report listing the batch number, type, strain and variety of the missing or corrupted item. The AIC and security officer will then make the appropriate notifications, when necessary, to the Department, Illinois State Police or local police department as required. Two dispensary employees, including the AIC will observe as the cultivation center, processor, craft grower, or infuser delivery person removes all of the items brought. Then, the security officer, the AIC, and dispensary employee will escort the delivery employee out of the dispensary. Should both employees determine that the delivery is complete, and all items listed on the BioTrack manifest are present and correct, they will begin the login process. Once all of the items are entered into the system and all items are verified, the employee and AIC will sign off on the dispensary center manifest verifying all items delivered and received. Finally, all items will be moved out of the secure delivery room and into the vault/safe room and the cultivation center delivery personnel will be escorted out of the building. Again, the deposit into the vault will be recorded on video surveillance. All shipping manifests, as well as the names of the cultivation center and delivery agent delivering the cannabis, dispensary agent receiving, and security officer present will be kept in paper form and stored for a minimum of five years. Additionally, the shipping manifest and BioTrack order manifest will be scanned into the BioTrack system and 2.1.c Packet Pg. 75 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 14 stored both off-site and on-site on dispensary servers. All deliveries to the dispensary will be monitored with multiple layers of security before, during and after the delivery. The security officer will be notified by the cultivation center delivery team at least fifteen minutes prior to the delivery. Upon notification, the security guard will monitor the dispensary site and all neighboring areas for individuals conducting surveillance, suspicious vehicles or any other irregularity inside or outside the dispensary. If the security officer perceives a threat and believes the dispensary to be in imminent danger, the officer will initiate a lock down of the dispensary and immediately notify the local police of the perceived threat. The security officer will also notify the cultivation center, processor, craft grower, delivery team and instruct them to abort the delivery. Recordkeeping System The AIC will be responsible for ensuring that all records are maintained, updated, and stored properly. The AIC will set in place best practices for keeping documents and uncovering irregularities. The AIC will oversee the day-to-day recordkeeping procedures, including: a. Management Plans: The AIC will review and revise the management plan on a regular basis. PDI has developed a management plan that utilizes best practices with expert knowledge in the medical and adult use cannabis industry. All historic versions of the management plan will be kept on both local and remote servers. In addition, hard copies will be kept by the AIC’s office at the dispensary. b. Business Records: The AIC will be charged with ensuring the proper procedures exist to maintain PDI’s business records. All business records, including budgets, maintenance costs, and profit and loss will be kept both in electronic form and hard copy. All hard copy records will be scanned and saved to PDI’s server. Budgets and costs will be under constant evaluation by the AIC and Principal Officers. c. Sales Records: BioTrack will store point of sales records electronically and in real time. PDI will track its inventory from the cultivation center through the sale to the patient. Through BioTrack, PDI will ensure its records are accurate and accessible to law enforcement. The AIC will have real-time access to these records through firewall 2.1.c Packet Pg. 76 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 15 protected internet service. Any paper records will be scanned and saved into the system. Any hard copies that pertain to destruction, delivery, and sale of cannabis will also be kept in a fireproof safe/vault at the dispensary. d. Operating Procedure Records: PDI’s operating procedures will be kept in the operations manual that will be distributed to all employees and officers of PDI. e. Security Records: The AIC and Security Director will regularly review the security manual to ensure that all security procedures are effective in protecting patients, caregivers, purchasers, and employees. The AIC will also keep all video surveillance, alarm, and other facility security specifications. All records will be kept both electronically and in paper form both at the facility and in a secure, remote location. MEDICAL ONLY: Qualified Patient and Designated Caregiver Recordkeeping System PDI will have an integrated patient tracking system that allows for complete patient verification, history, and sales tracking at the point of sale via BioTrack. This system will be web- based and accessible 24 hours a day and seven days a week. Through an identification card and patient number, BioTrack will verify the patient in the state database at the time of purchase. The system allows for the scanning of all patient paperwork and identification and compiles a real-time record of patient activities. Once a sale to a patient is initiated, the system will record the cannabis quantity, name, and strain to ensure that the verified patient never receives an amount in excess of that allowed by law. Each time the patient returns to the facility, the complete history of the patient will be immediately available to the patient counselor at the point of sale. Confidential Patient Records: BioTrack allows for the confidential collection of all patient information. BioTrack tracks all patient intake information and background data. PDI, at a minimum, will review its patient confidentiality procedures semi-annually. All electronic patient records will be protected by the most advanced encryption and firewalls available. Moreover, any paper patient record will be kept in a restricted access area. ADULT USE ONLY: Purchaser’s Personal Information Purchaser's personal information shall not be obtained and recorded without the purchaser's consent. PDI’s employees having custody of, or access to personal information and records shall not divulge its contents or provide copies to anyone except where a purchaser has given consent for such disclosure in writing. Audits Security Audits and Incident Reports The AIC will conduct monthly security audits. The security audits will include a complete inspection of all security systems. The record of these audits will be kept in paper form for inspection by IDFPR at the dispensary. All incident reports, including but not limited to missing or lost cannabis, suspected diversion of cannabis, and theft will be kept at the facility. These documents will also be kept on a password- 2.1.c Packet Pg. 77 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 16 protected computer and accessible remotely via password. After any incident where theft or diversion is shown or suspected, the AIC will carefully document the incident. In addition, the AIC and Security Director will meet and review all security procedures, manuals, and equipment specification after each incident. Moreover, they will revise and update any, or all, of those manuals and specifications subsequent to that incident. Company Audit Records The AIC will be responsible for maintaining and storing all audit records. Each morning, the AIC will review the inventory record. The AIC will print out a complete inventory record and distribute it to dispensary agents to conduct a complete inventory count. Once the count is complete (preferably prior to opening for the day), the AIC/Inventory Manager will verify the count and ensure there are no inventory discrepancies. If there is a discrepancy, the AIC/Inventory Manager shall conduct an immediate investigation to determine the circumstances surrounding the missing product and shall notify the Security Director about the discrepancy. Inventory Discrepancies will be reported to IDFPR via Division-provided inventory adjustment forms. Inventory adjustment information, including approval emails, will be kept for a minimum of 2 years. The inventory record will be kept electronically and in hard copy in the AIC’s office. The AIC shall review this record on a daily basis and update procedures if needed. The AIC will also conduct a full audit of product and sales every thirty days. The full audit record will be generated by the AIC and reviewed by Cresco Labs’ internal retail and/or compliance teams. The Audit will be verified by the appropriate parties and will be kept electronically on site and through a secure network for off-site storage. Paper records will be scanned onto back-up servers with hard copies stored in the onsite vault. State Audits and Inspection Records The AIC will ensure all records are kept readily available for State Inspectors. PDI will establish a training and protocol system that explains to all staff that State Inspectors should be given all deference and access to documents. Staff will be trained to immediately notify the AIC and Security Director when an inspection occurs. To ensure access for State Inspectors, PDI will institute a policy that requires all relevant pieces of paper that come into the dispensary be scanned and filed electronically. This system will include all paper delivery documents from cultivation centers, service/work orders, and other miscellaneous documents. All other dispensary information, including patient records, sales, income, and expense information will be kept electronically. The AIC will have access to these records through remote access and on-site at the dispensary. Upon request, access will be given to State Inspectors. PDI is prepared to accommodate for random and unannounced dispensary inspections by the Division, the Illinois State Police, and local law enforcement. All employees responsible for preparation, obtaining or keeping records, logs, reports or other required documents shall, upon request by authorized officials, make the documents immediately available for inspection. 2.1.c Packet Pg. 78 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 17 Surveillance and Security System Overview Security System Specification Physical Access Control System – Restricted Access, Delivery Area, and Employee Areas Video Surveillance System 2.1.c Packet Pg. 79 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 18 Video Storage and Access Capabilities The video management system will provide 24-hour recordings from all video cameras available for immediate viewing by the State Police and IDFPR upon request. The video management system will have the capacity to retain digital recording data for a minimum of 90 days and the policies in place will ensure this data will not be destroyed or altered during that 90-day period. In addition, all video surveillance captured will be stored both on site and off site to provide redundancy. PDI will provide additional storage to ensure capacity to hold investigation data indefinitely in the event of a loss or theft of cannabis, or a pending criminal, civil, or administrative investigation, or legal proceeding for which the recording may contain relevant information. The system will authenticate and guarantee no alteration to its video. PDI will use a web-based portal, March Networks Cloud, which is a remote viewing solution that delivers hassle-free live or recorded video access via personal computer or mobile device. The system has virtual servers that provide redundancy required for uninterrupted service. While the video is encrypted and protected by authentication, the State Police and IDFPR will have unlimited access and be able to observe the dispensary from their office or from outside the dispensary with the access code. The State Police and IDFPR will not need additional servers, maintenance, or installation of software to access PDI’s security system. Exterior Dispensary Security 2.1.c Packet Pg. 80 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 19 Anti-Loitering Policy The Company will also establish procedures to deter loitering and unwanted activity around the exterior of the dispensary. Should an incident arise in one of the public areas surrounding the facility, such as a suspicious car or a group loitering around the outside of the facility, the security officer will summon the AIC to the security area. The officer will then inform the AIC that the facility is on “lockdown” and that no one should be allowed to enter or exit the facility until the security officer has returned to their designated area. The officer will then leave to address the incident while the AIC monitors it on the video surveillance feed. Should the need arise, both the officer and AIC will have panic buttons on their person to immediately notify local law enforcement. Restricted Access Areas and Vault Access Only authorized credential holders who have been granted access to the restricted access area can enter the area through a locked door. The door will be marked with a sign that reads “DO NOT ENTER. RESTRICTED ACCESS AREA. ACCESS RESTRICTED TO AUTHORIZED PERSONNEL ONLY.” The restricted access area will be behind the POS counter and through a security door. Video surveillance, monitored by the security officer, will capture anyone attempting to enter the restricted access area. Any attempt to enter the restricted access area other than with an authorized credential will trigger an immediate intrusion alarm. Any failure indication from any alarm from the restricted access area will trigger an audible alarm, notify the security company, and alert the AIC and Security Director. Safe and Vault Protection The vault/cannabis storage area will contain its own HVAC system that will remove stale air and recirculate fresh air into the facility. The system will include carbon filters to minimize odor. 2.1.c Packet Pg. 81 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 20 Security Procedures for Cannabis Loss and Destruction Cannabis Loss Should inventory not balance out at any given audit, daily check point, or any cannabis or cannabis product is detected as lost or missing, the AIC and security officer will be notified immediately and will assume responsibility for the investigation. If the missing items can be traced back to an error in location or placement, the AIC will close out the investigation. If the situation is not resolved via normal tracking, the AIC will immediately report inventory discrepancies to IDFPR via Division-provided inventory adjustment forms. When necessary, the AIC will notify the State Police and local law enforcement of the discrepancy. The AIC will conduct a full investigation reviewing surveillance data and conducting employee interviews. The AIC will ensure the preservation of all surveillance data and computer records from the relevant time period and present it to IDFPR. The AIC and Security Director will consult with State Police and/or local law enforcement before the dispensary resumes normal operations and the distribution of medical cannabis. Cannabis Recall PDI will track all medical cannabis sold, through the BioTrack system. Should the need arise for a product recall, PDI will immediately notify IDFPR and will take action to remove defective or potentially defective cannabis from the market to promote public health and safety. These mechanisms include: • Contacting patients, caregivers, and purchasers who have, or likely have, obtained the product from the dispensary, including information on the policy for return of the recalled product; • Identifying and contacting the adult use cultivation center, craft grower, or infuser that manufactured the cannabis; • Communicating with the Department, the Department of Agriculture, and the Department of Public Health within 24 hours of discovering defective or potentially defective cannabis; and, • Destruction of any recalled cannabis product. Destruction of Cannabis 1. Once product has been found as unusable, broken seal, expired etc. Product must be moved in BioTrack to quarantine and physically moved to the quarantine container in the vault. 2. Items shall be scheduled for destruction with the state within seven days of being found. 3. The state police must be notified of destruction before destruction occurs. 4. On day of destruction the items must be scheduled for destruction in BioTrack 5. On day of destruction, there must be two people present for the destruction at all times. 2.1.c Packet Pg. 82 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 21 6. All products that are to be destroyed must be brought into the room at the same time. Once all products are in the room, the two individuals handling the destruction must remain in the room until the destruction is complete. 7. All products that are being destroyed must be entered into the destruction log with the following information: the product name, the quantity, the product barcode, the reason why the product is being destroyed, and the weight of the product. 8. In order to get the weight of the product the items must be placed on the scale in the destruction room. If destroying flower, it needs to be removed from the packaging and placed on a barrier (ie. a napkin). Place barrier on the scale first and zero out the scale before adding the flower in order to get correct weight. 9. The date the product was found must be documented in the destruction log. 10. Once all products have been documented and weighed, product is to be placed into the food processor with soil and vinegar and blended until considered unusable. 11. Vape cartridges may have to be destroyed by placing in a bag and breaking with a hammer then adding the remains into the soil/vinegar blend. 12. Topical material will be emptied from its container using a plastic disposable knife when necessary to ensure that the entire product has been removed from the container. The product will then be blended with the soil/vinegar blend. 13. Transdermal patches are disposed of by the AIC. While wearing gloves, the AIC shall fold the patch in half with the adhesive side against itself. The patch is then cut with scissors into the smallest possible pieces. Finally, the remains of the patch are blended with the soil vinegar blend. 14. All edible products shall be removed from their package by the AIC. The edible shall be placed into the blender with soil and vinegar and mixed until the product is rendered unusable. 15. After product has been blended and considered unusable, the blended mixture is to be thrown into a garbage bag and placed in the dumpster for disposal. 16. Once the destruction is complete, the two employees must initial to verify they conducted the destruction properly. 17. The product should then be moved to “Destroyed” in BioTrack. Natural Disaster or Emergency During a crisis, such as a fire, flood or natural disaster, or other situation of local, state or national emergency during business hours that includes an immediate threat of loss of life or bodily injury, the employees will activate panic alarms at the facility and initiate an immediate law enforcement response to the dispensary. If the crisis is inside the facility, all employees, purchasers, patients, and caregivers will immediately vacate the facility. The security officer and dispensary agent shall remain in the nearest possible proximity to the dispensary during the crisis and immediately return to the facility once the crisis has abated. Upon return, the dispensary agent and security officer shall immediately assess the damage, if any, to the facility, conduct a complete inventory of all cannabis and determine the extent of loss if any. If the dispensary agent determines a loss of cannabis has occurred, the dispensary agent will immediately notify the Department and local law enforcement. If no cannabis is lost, the dispensary agent shall work to ensure that normal operations are resumed as soon as practicable 2.1.c Packet Pg. 83 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET – CONFIDENTIAL 22 or if the facility is destroyed or incapable of effectively securing the cannabis, the dispensary agent and security officer will immediately notify the Department and local law enforcement and, upon approval, transport it to the nearest police station or to a place designated by the Department. At all times, any cannabis recovered shall be accounted for by the dispensary agent. The dispensary agent will then access the all records and notify patients, caregivers, and purchasers of the closure and, if possible, of the timeline of restarting operations. 2.1.c Packet Pg. 84 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) V1 -04 0 1 2 0 1 8 JDRC MANA GED SER VICES EMPLOYEE HANDBOOK 2.1.c Packet Pg. 85 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 1 JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 TABLE OF CONTENTS INTRODUCTION ............................................. 2 Welcome Letter ..................................................... 3 GENERAL POLICIES .................................. 4 At-Will Employment ............................................... 4 Equal Employment Opportunity, Anti-Discrimination, and Anti -Harassment ............ 4 Reasonable Accommodation .................................. 5 Lactation Accommodation .................................... 6 Workplace Violence .................................................. 6 Weapons .................................................................. 6 Workplace Relationships ......................................... 6 Employment of Family Members ........................... 7 Audio and Video Recording Prohibited .................. 7 Business Ethics/Conflict of Interest .......................... 8 Safety / Cleanliness ............................................... 8 Security ................................................................. 8 Vehicle Use ........................................................... 9 Drugs and Alcohol ............................................... 10 Consequences for Policy Violations .............................. 11 Testing.................................................................................. 12 Confirmation, Confidentiality, and Privacy .................. 12 Searches ...................................................................... 13 DAY-TO-DAY MATTERS ................................ 14 Employee Classifications ............................................ 14 Hours of Work ........................................................ 14 Meals and Breaks ................................................. 14 Overtime ...................................................................... 15 Absenteeism/Tardiness ................................................... 15 Pay Days / Payroll Deductions .............................. 15 Expense Reimbursement ............................................ 16 Performance Reviews / Compensation Reviews ........ 17 Attire / Appearance ....................................................... 17 Hygiene / Cleanliness ................................................. 18 References ....................................................................... 18 Smoking/Tobacco Products ........................................ 18 Telephones ...................................................................... 18 Cell Phones/Smartphones ........................................... 18 Computer, Email, and Internet Use ........................ 20 Social Media ....................................................... 20 Use of Employee Images ..................................... 22 Maintenance/Use of Company Property ................. 22 No Responsibility for Personal Property ................ 22 Personal Visitors ................................................... 22 Outside Employment .......................................... 22 Personnel Records .................................................. 22 Protection of Confidential Information .................. 23 Confidentiality of Customer Matters ...................... 23 Solicitation, Distribution, and Collection ............... 24 Standards of Conduct ........................................... 24 Disciplinary Action ............................................... 24 Complaint Procedure .............................................. 25 Dispute Resolution ............................................... 25 BENEFITS AND LEAVE ............................... 26 Insurance Benefits ................................................ 26 Civil Unions .......................................................... 27 Discretionary Time Off (Exempt Employees) .......... 27 Paid Time Off (Non-Exempt Employees) ............... 28 Paid Sick Leave ...................................................... 29 Holidays & Flexible Holidays ................................... 29 Family and Medical Leave ...................................... 30 Jury Duty ....................................................... 34 Witness Leave ........................................................ 34 Bereavement Leave ................................................ 34 Child Bereavement Leave ...................................... 35 Voting Time ............................................................ 35 Military Leave ......................................................... 35 Family Military Leave ............................................. 36 Parental Leave ........................................................ 36 Domestic or Sexual Violence Leave ........................ 37 School Visitation................................................... 38 Worker’s Compensation ........................................ 38 RECEIPT AND ACKNOWLEDGMENT ..... 39 2.1.c Packet Pg. 86 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2 JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 INTRODUCTION JDRC Managed Services, LLC (the “Company”) is pleased to provide you with this Employee Handbook (this “Handbook”). Please use this as a general guidance piece about our current rules and operating procedures and the benefits currently offered to our employees. We make changes to this Handbook (and its other policies) from time to time. While we will try to give you advance notice of changes, doing so may not always be possible. Note, however, that (a) our policy of employment at will may be revised only by a written contract or agreement signed by the Company’s CEO or CFO, and (b) our Dispute Resolution policy may be revised only by a written contract or agreement signed by the employee and the Company’s CEO or CFO. If you are currently employed with us on the date this Handbook becomes effective, you may have received an earlier version. This Handbook supersedes all prior Company handbooks and policy statements that you may have seen or heard concerning the matters it describes. However, this Handbook doesn’t supersede applicable laws, regulations, or ordinances. Rather, any law, regulation, or ordinance that conflicts with any of our policies will be controlling. Of course, nothing in this Handbook will be applied in a manner that limits employees’ rights to engage in protected concerted activity as defined by the National Labor Relations Act. We want to ensure your rights and obligations as employees are clear. As such, we will include the occasional legal definition or example to illustrate the policy in question. Above all, we want your employment with the Company to be fulfilling and enjoyable. If you have any questions regarding any of these policies or your employment with the Company, please contact Human Resources. KEY SECTIONS: Equal Opportunity Employment: JRDC and Cresco Labs is an Equal Opportunity Employer. Please see page 4 for more details on this. Business Ethics & Conflicts of Interest: Please remember all employees are ambassadors of the Cresco brand. If you are uncertain whether an activity, interest, or relationship poses a conflict of interest, it is best to contact one Human Resources before engaging in the activity, pursuing the interest, or becoming involved in the relationship. Please see page 8 for more information. 2.1.c Packet Pg. 87 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 3 JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 WELCOME LETTER Hello, thanks for being a part of the Cresco Labs family! We are united in our pursuit to provide consistent, dependable, quality cannabis products to patients and people across the country. Our work contributes to far more than the growth of this company – we are authoring the new cannabis narrative. By joining us at Cresco Labs, you have joined champions of change. Breaking down the walls in a highly regulated industry isn’t easy. That’s why we strive to provide an environment that supports goal -oriented individuals to rise to demanding challenges. We want your work day to be a time when you can think wholistically, act with vision, and turn no’s into yes’s. The policies and procedures in this document help us to provide a workplace where you and the company grow together. So please - bring your whole self to the table! We value the unique talents, abilities and intricacies of each employee. We encourage you to find ways to contribute to Cresco with all of your strengths. Cresco employees are selected for their dedication to hard work, ingenuity, and sense of ownership. As a company, we are setting an example for our peers and changing the minds of skeptics. It’s exciting, history-making work, and we’re thrilled to have you as a part of it. Please take some time to review the policies, procedures, working conditions, and benefits described in this handbook. Cresco provides an open door policy in which employees are encouraged to take ideas or concerns problems to their supervisor, or next level of management. So, if you have questions on what is outlined in this document, please reach out. I look forward to a long and rewarding time together. THANK YOU! Charlie Bachell CEO and Founder, Cresco Labs LLC 2.1.c Packet Pg. 88 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 4 JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES AT-WILL EMPLOYMENT This Handbook is not an employment contract. Compliance with the policies in this Handbook does not guarantee employment with the Company for any duration of time. Rather, you and the Company have an “employment at - will” relationship. This means your employment may be terminated by you or by the Company at any time, with or without advance notice, with or without cause. However, we ask that if you decide to le ave your employment, you provide your manager and Human Resources with at least two weeks’ notice. At -will employment status cannot be changed by any representative of the Company except its CEO or CFO, who may do so only in a written, signed agreement. EQUAL EMPLOYMENT OPPORTUNITY, ANTI-DISCRIMINATION, AND ANTI-HARASSMENT We are committed to providing equal employment opportunity for all qualified job candidates and employees and to maintaining a workplace free of discrimination and harassment on the basis of race, religion, color, gender (including gender identity, change of sex, and transgender status), sexual orientation, age, disability, pregnancy, ancestry, national origin, military or veteran status, marital status, genetic information, or any other characteristic protected by applicable law (each, a “Protected Characteristic”). Employment discrimination occurs when an employee is materially adversely affected with respect to any term or condition of employment (including hiring, compensation, advancement, discipline, or termination) based on a Protected Characteristic. We offer employment, training, compensation, and advancement on the basis of qualification and merit, regardless of Protected Characteristics. Harassment is any conduct, whether verbal, non-verbal, or physical, that degrades, insults, or offends a person or group on the basis of a Protected Characteristic when: (1) submission to such conduct is made an explicit or implicit term or condition of employment; (2) submission to or rejection of such conduct is used as a basis for any employment decision; or (3) such conduct has the purpose or effect of interfering with an employee’s work performance or creating an intimidating, offensive, or hostile working environment. Sexual harassment in violation of this policy includes, but is not limited to: • Sexually suggestive or vulgar comments or jokes, inappropriate comments about another person’s sexual behavior or body; • Improper or intrusive questions or comments about an employee’s romantic or sexual experiences or preferences, or unwelcome or offensive sexual flirtations, propositions, advances, or requests; • Use, display, or communication of sexually suggestive or offensive words, objects, pictures, calendars, cartoons, articles, letters, email or text messages, computer programs, or material from the Internet; • Making or threatening undesired physical contact (such as touching, embracing, or pinching) or impeding another’s movements in a deliberate manner; and • Offering or providing employment benefits in return for sexual favors or an employee’s agreement to provide sexual favors, or taking or threatening to take adverse action against an employee because the employee rejects requests for sexual favors. 2.1.c Packet Pg. 89 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 5 Discriminatory harassment in violation of this policy includes, but is not limited to: • Comments, jokes, or innuendo that disparage, insult, offend, or ridicule based on a Protected Characteristic; • Singling out an individual for abusive conduct based on a Protected Characteristic; and • Using, displaying, or communicating words, objects, pictures, calendars, cartoons, articles, letters, email or text messages, computer programs, or material from the Internet that disparage, insult, offend, or ridicule based on a Protected Characteristic. We take allegations of harassment seriously. If you feel you are being subject to harassment by anyone (including, but not limited to, a supervisor, manager, coworker, subordinate, customer, or vendor), you should immediately do the following: 1. If you feel comfortable doing so, clearly and directly inform the person harassing you that his or her conduct is unwelcome and must stop; additionally, tell Human Resources about the allegations so they are documented. 2. If you don’t feel comfortable confronting the person directly, or if the harassment does not stop after you do so, promptly report the harassment to Human Resources and provide any documentation you may have prepared regarding the harassment. If, for any reason, you don’t feel comfortable reporting the harassment to Human Resources, you should report it to the CFO. We value the unique talents, abilities and intricacies of each employee. We encourage you to find ways to contribute to Cresco with all of your strengths. Likewise, if you believe that any other person has been subjected to harassment or that employment decisions (with respect to you or any other Company employee) are being made for discriminatory reasons, you have the responsibility to promptly report such conduct to Human Resources or the CFO. All complaints will be investigated promptly and thoroughly. The investigation will be kept confidential to the extent possible. All employees are required to corporate with an investigation. If an investigation confirms that a violation of this policy has occurred, the Company will take prompt corrective action reasonably designed to end the violation and to prevent further violations. Such corrective action may include disciplinary action against anyone found to have violated this policy. We will not tolerate retaliation against any employee who makes a good-faith report of discrimination or harassment or participates in an investigation, even if, after an investigation, it appears that there has been no violation of this policy. Any employee who is aware of any conduct that may violate this policy should promptly report the conduct to Human Resources or the CFO. REASONABLE ACCOMMODATION We are committed to providing reasonable accommodation to enable qualified employees with disabilities, as well as medical conditions or other common conditions related to pregnancy or childbirth, to perform the essential functions of their jobs. We are also committed to providing reas onable accommodation of an employee’s sincere religious observances and beliefs that conflict with job requirements. If you believe you need accommodation based on disability, medical condition or other common condition related to pregnancy or childbirth, or religion, you are responsible for notifying Human Resources. In the case of disability or pregnancy-related or childbirth-related condition, you may be required to provide medical documentation establishing the existence of a disability or condition, any job-related restrictions, and the estimated length of time for which accommodation is needed. We will keep all medical information confidential to the extent possible. Any employee who believes he or she has been denied reasonable accommodation should promptly notify Human Resources or the CFO. 2.1.c Packet Pg. 90 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 6 LACTATION ACCOMMODATION Each employee is entitled to a reasonable amount of break time to express breast milk for the employee’s infant child, and the Company will provide an appropriate and private location for the employee to do so. Please contact Human Resources for additional information regarding lactation accommodation. WORKPLACE VIOLENCE Your safety and security are important to us. We will not tolerate any workplace violence or threats of violence by or against our employees. As used in this policy, “workplace violence” includes conduct occurring on Company premises or during working time that is directed against or by any of our employees, customers, or vendors, whether committed by an employee or outsider, that involves physical acts of violence, oral or written threats of violence, or gestures or acts that are threatening or intended to convey actual or potential injury. It also includes acts and threats that are later claimed to have been made in jest. Each of us must take any act or threat of workplace violence seriously. So that we can prevent or respond to any act or threat of workplace violence, any employee who is subject to, witnesses, or learns about any such act or threat or who fears or suspects that such an act may occur is required to report the act, threat, fear, or suspicion to Human Resources as soon as the act or threat occurs or as soon as the employee fears or suspects that such an act may occur. Naturally, if you are in fear of imminent harm, call 911 immediately. When appropriate, we will refer acts or threats of workplace violence to the police or other authorities for possible criminal prosecution. WEAPONS The Company forbids the possession of lethal weapons (such as guns, knives, and explosives) in any Company office or facility. WORKPLACE RELATIONSHIPS Consensual romantic relationships between individuals at the Company are discouraged, because concerns may later arise regarding the actual freedom of choice of the individuals involved, conflicts of interest, or favoritism, particularly when relationships involve a superior and a subordinate. The Company has discretion to implement staffing changes in order to avoid any real or perceived conflict of interest, positive or negative bias, disruption of the work environment, or decline in performance or productivity. The reason for any such change will be kept as discrete as possible in the discretion and judgment of the Company, and will not be considered punitive. In the event that a lateral move is not possible and a conflict of interest, positive or negative bias, disruption of the work environment, or a decline in performance or productivity exists, the Company reserves the right to ask one of the employees to resign. The determination of whether conduct constitutes or causes a “disruption of the work environment” is in the sole discretion and judgment of Company management. Such conduct may include, but is not limited to, displays of affection or emotional outbursts. 2.1.c Packet Pg. 91 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 7 EMPLOYMENT OF FAMILY MEMBERS The employment of members of the same family can cause various problems, including allegations of favoritism, conflicts of interest, family discord, and scheduling conflicts that work to the disadvantage of the Company and its employees. This policy does not prohibit members of the same family from being employed by the Company, and an employee’s family members will be considered for employment on the basis of their qualifications. However, an employee’s family members may not be considered for employment if such employment will: • Have a direct reporting relationship; • Have the potential to create an adverse impact on work performance; or • Create an actual or perceived conflict of interest. Consistent with this policy, employees must avoid supervisory relationships that may be or appear to be inappropriately compromised. In this regard, an employee may not supervise or report to a family member without prior approval from Human Resources or be transferred or promoted into a position that creates any of the three circumstances set forth above. In addition, employees may not use their influence in job assignment, performance evaluations, promotions, compensation decisions, and hiring practices to favor their family members. In certain circumstances, however, the Company, in its sole discretion, may waive the restrictions of this policy. For purposes of this policy, “family member” includes a parent, spouse, civil union partner, domestic partner, child, sibling, grandparent, grandchild, aunt, uncle, cousin, niece, nephew, father-in-law, mother-in-law, brother- in- law, sister-in-law, step-sibling or step-child, or any other person with whom the employee has a close personal relationship, such as a roommate. A current employee who is or becomes a family member of another employee may continue employment as long as such employment does not involve any of the three circumstances set forth above. To the extent you are aware of an existing employment relationship that violates this policy, please inform Human Resources immediately. The knowing failure to report such a relationship is a violation of this policy. AUDIO AND VIDEO RECORDING PROHIBITED As you know, employees, customers, vendors, and others who conduct business with the Company may discuss Confidential Information (as defined in the Confidential Information policy) while doing business with the Company. Such Confidential Information may have economic value to our competitors, our customers, or our vendors. The Company believes that recording conversations without the consent of all parties will inhibit the free-flow of information and conversation vital to our business. The Company therefore prohibits any employee, customer, vendor, and anyone else who conducts business with the Company from using any audio or video recording device of any kind to record a conversation, whether in the workplace or in any environment in which work-related issues are discussed, without the express consent of all parties to the conversation. If you violate this policy and that violation causes economic or irreparable harm to the Company, then it may seek appropriate legal remedies. An exception to the rule concerning audio or video recordings would be activity protected by the National Labor Relations Act including, for example, making video recordings regarding concerns about health, safety, and/or other working conditions or other protected concerted activities. 2.1.c Packet Pg. 92 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 8 BUSINESS ETHICS/CONFLICT OF INTEREST Please remember that, as an employee, you are an ambassador of our brand in the world. As such, we hold integrity close as an important employee and company value. All employees must be able to carry out their job duties without impairment or the appearance of impairment by virtue of some other activity, interest, or relationship. Each of us must avoid relationships with other employees that may conflict with effectively carrying out our job duties, affect our independence or judgment, or otherwise give rise to a conflict of interest or the appearance of one. Avoid entering into any associations with any other person or business that might give the appearance of conflict with your job duties or that might tend to affect your independence or judgment with respect to transaction s between the Company and any other person or business. If you are uncertain whether an activity, interest, or relationship poses a conflict of interest, it is best to contact one Human Resources before engaging in the activity, pursuing the interest, or becoming involved in the relationship. While employed with the Company, you may not work for any competitor of the Company. Please report any actual or potential conflict of interest situation to Human Resources for resolution. SAFETY / CLEANLINESS Your safety is important to us, and we aspire to provide and maintain a safe and healthy work environment. You are expected to exercise safe working practices at all times Posters addressing your obligations and rights under the Occupational Safety and Health Act are posted in the breakroom. In addition, please comply with the following guidelines at all times: • Comply with all applicable codes and laws. • Promptly report to Human Resources or the Direct of Compliance any unsafe condition and anything that needs repair or is a perceived safety hazard. • Promptly report any accident, illness, or injury to Human Resources. Do not attempt to treat illness or injury yourself. • Read and obey all safety warnings, bulletins, and signs. • Fire doors must be kept clear and unlocked during working hours. Learn the location of all fire exits, alarm boxes, and fire extinguishers. • Promptly clean up all spills. • Use flammable liquids and materials, such as cleaning fluids, with extreme caution. • Walk – don’t run. • Promptly report to Human Resources if you or a co-worker becomes ill or injured. • Don’t lift objects that are too heavy for you. • Refrain from “horseplay” or practical jokes that affect safety. • Maintain a clean, orderly work area. SECURITY All individuals who enter the Company’s premises must check in at the front desk. Except for cardholders, potential cardholders, and vendors who already are transacting business with C the Company, all individuals must be escorted by a Company employee while on premises. All vendors who enter our premises must already be on the approved vendor list, sign in and out, and wear a vendor badge at all times while on premises. 2.1.c Packet Pg. 93 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 9 VEHICLE USE Your use of any vehicle in connection with performance of your job responsibilities is subject to the following requirements and limitations: • Maintain a valid driver’s license. You may not drive to or from any Company location (or between locations), drive during working time, or drive any vehicle in connection with performance of your job responsibilities, unless you have a valid driver’s license. Driving on a suspended or revoked license is prohibited, regardless of the reason for the suspension or revocation. • Remain knowledgeable of and comply with all federal, state, and local motor vehicle laws and regulations. Obey all posted street signs and signals. • Do not engage in any activity that distracts you from driving or takes your eyes or attention off the road. For example, do not operate cell phones or other handheld devices (including talking, dialing, or sending or receiving text messages or emails) while your vehicle is in motion. • Practice effective defensive driving techniques. Exercise special precautions when pedestrians are in the roadway, driving during inclement weather, or navigating around special equipment, busses, etc., and be sure to stop for school busses when children are boarding or disembarking. • The driver and all passengers must wear seatbelts while the vehicle is in motion. • No illegal drugs or open alcoholic beverages are allowed in vehicles. • Do not operate a vehicle after having consumed alcohol and/or drugs, including prescription and non- prescription drugs that may impair your driving ability. • Promptly report to Human Resources all moving citations received during working time. (However, please note that the Company will not be responsible for payment of any citation.) • In the event of an accident: Do not move the vehicle unless it is obstructing a roadway or access route. If anyone is injured, immediately call 911 and then contact Human Resources. Obtain from all other drivers involved their name, address, phone number, license plate, and insurance information (and, if possible, take a photo of their driver’s license and insurance card). Obtain from all witnesses their name, address, and phone number. Take photos of the scene, including the position of all vehicles involved, all damage to all vehicles involved, and any other relevant information. Promptly provide to Human Resources a copy of any police report completed for an accident involving a Company employee, regardless of whether there appears to be property damage or bodily injury. Note, however, that any traffic citation issued to any employee (whether or not related to an accident) will be the sole responsibility of the employee who received the citation and will not be reimbursed by the Company. • If you use your own vehicle in connection with your performance of your job responsibilities, you must have liability insurance with at least the minimum coverage required by applicable state law, must always carry your insurance card in your vehicle, and must provide proof of insurance upon the Company’s request. Any violation of the above restrictions may result in a loss of driving privileges and or disciplinary action up to and including termination of employment. 2.1.c Packet Pg. 94 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 10 DRUGS AND ALCOHOL We value our employees, customers, and others who conduct business with us. While we recognize that we are in the medical cannabis business, we also recognize the need for a safe, productive, and healthy work environment. Therefore, we have adopted this policy to address permissible and impermissible conduct. Definitions “Drug” means a controlled substance, as defined in Schedules I – V of Section 202 of the Controlled Substances Act, 21 U.S.C. § 812, including, but not limited to, cocaine, marijuana, heroin, morphine, amphetamines, barbiturates, phencyclidine (PCP), or hallucinogens (or metabolites of any such drugs). The term “illegal drug” does not include a drug that is legal under federal, state, and local law and is obtained and taken under supervision by and in accordance with prescriptions or other instructions issued by a licensed health care professional, nor does At Cresco, we are united in our pursuit to provide consistent, dependable, quality cannabis products to patients and people across the country. it include medical cannabis used by a cardholder (subject to all other terms and conditions of this Handbook), provided that use of any such drug does not impair your ability to perform your job duties or otherwise jeopardize your safety or the safety of our employees, customers, or others who do business with the Company. “Under the influence of drugs” means behavior, appearance, speech, or other indications that lead any member of the management team to reasonably suspect that the individual is impaired by illegal drugs or is using illegal drugs. “Impaired by alcohol” means behavior, appearance, speech, or other indications that lead a manager to reasonably to suspect that the individual is impaired by alcohol. “During working time” means time during which the individual is being paid to work for or represent the Company or the employee is in fact representing the Company’s interests, whether on or off Company premises. The term also includes all paid break and meal periods. Prohibitions The following conduct violates this policy and is prohibited: • Manufacturing, distributing or attempting to distribute, dispensing, possessing, selling, transporting, consuming, using, or being under the influence of illegal drugs during working time or while on Company premises (note that this prohibition does not include dispensing, possessing, or selling medical cannabis if required by your position); • Consuming or being under the influence of alcohol or medical cannabis during working time or while on Company premises; • Coming to work under the influence of drugs or alcohol; • Medicating in any Company facility; • Bringing or storing illegal drugs and/or drug paraphernalia on Company premises or any location off Company premises during working time (note that this prohibition does not include the storage of medical cannabis on Company premises if required by your position); • Abuse of over-the-counter or prescription drugs, including, but not limited to, exceeding the recommended prescribed dosage or using drugs prescribed for another individual. All employees who take over-the-counter or prescribed medications are responsible for being aware of any effect(s) the medications may have on the performance of their duties and must promptly inform Human Resources if any medications may impair their ability to perform their job duties; • Failing to consent to, participate in, or abide by the terms and recommendations of any rehabilitative program to which the Company makes a referral, including, but not limited to, failing to follow recommendations regarding behavior modification and abstinence. 2.1.c Packet Pg. 95 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 11 We acknowledge that certain employees are permitted to consume alcohol in moderation in connection with Company marketing/business development activities and/or during social events. However, employees must keep in mind that their behavior at all such times (and at all events they attend as representatives of the Company) is a reflection on themselves as well as the Company, and employees who choose to drink alcoholic beverages must drink responsibly so that they are not under the influence of alcohol. In other words, employees must monitor their consumption so that they do not become impaired by alcohol. Special Clarification Regarding Medical Cannabis For clarity, the Illinois Compassionate Use of Medical Cannabis Pilot Program Act (the “Act”) does not permit any of the following conduct. Therefore, no employee may engage in any such conduct during the employee’s working time or at any time that the employee is on Company premises or is performing job duties for or on behalf of the Company: • Undertaking any task under the influence of cannabis when doing so would constitute negligence, professional malpractice, or professional misconduct; • Possessing medical cannabis in a vehicle not open to the public unless it is in a reasonably secured, sealed, tamper-evident container and reasonably inaccessible while the vehicle is moving; • Using cannabis in any motor vehicle; • Using cannabis in any public place (i.e. any place where an individual could reasonably be expected to be observed by others); • Possessing cannabis while knowingly in close physical proximity to anyone under the age of 18 years of age; • Smoking medical cannabis in any public place where the employee could reasonably be expected to be observed by others, in a health care facility, or any other place where smoking is prohibited under the Smoke Free Illinois Act; • Operating, navigating, or being in actual physical control of any motor vehicle, aircraft, or motorboat while using or under the influence of cannabis; • Using or possessing cannabis if the employee does not have a debilitating medical condition and is not a registered qualifying customer or caregiver; • Possessing cannabis if the employee is a caregiver; • Allowing any person who is not allowed to use cannabis under the Act to use cannabis that a cardholder is allowed to possess under the Act; or • Transferring cannabis to any person contrary to the provisions of the Act Be aware that certain violations of this policy by an employee require the Company to notify the Illinois Department of Financial and Professional Regulation, which may result in revocation of the employee’s customer ID card. Consequences for Policy Violations Cresco has a ZERO TOLERANCE policy for employees who violate the alcohol and drug policies. These policies are set forth to protect Cresco and the employees, while continuing to give our customers the best product. Employees who violate this policy are subject to discipline, up to and including immediate termination of employment. Disciplinary action will depend on the circumstances, and the Company reserves the right to determine, in its sole and absolute discretion, the discipline imposed, subject to any limitations imposed by applicable law. 2.1.c Packet Pg. 96 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 12 Testing The Company reserves the right, subject to any limitations imposed by applicable law, to carry out reasonable searches of employees and all property brought or located on Company premises or in vehicles and equipment owned or leased by the Company and to examine and test for the presence of drugs and/or alcohol. Employees may be asked to submit to blood, hair, follicle, oral fluid, breath, or urine tests or to other diagnostic tests, at the Company’s expense, to detect drugs and/or alcohol. Testing may include the following: Post-Accident Testing: Employees involved in an on-the-job accident or injury may be asked to submit to drug and/or alcohol tests. An injured employee who refuses to submit to testing may be precluded from workers’ compensation medical and indemnity benefits, as determined by the Company’s workers’ compensation insurance carrier in accordance with its policy and applicable law. Reasonable Suspicion Testing: Employees may be asked to submit to drug and/or alcohol tests if reasonable suspicion exists to indicate that such employees are in violation of this policy. Facts and circumstances giving rise to reasonable suspicion may include, but are not limited to, the following: direct observation of drug or alcohol use or of the physical symptoms or manifestations of being under the influence of drugs or alcohol; abnormal conduct or erratic behavior during working time; a significant deterioration in work performance; a report of drug or alcohol use provided by a reliable and credible source; evidence that an individual has tampered with a drug or alcohol test during employment with the Company; information that an employee has caused, contributed, or been involved in an accident during working time, or evidence that an employee has used, possessed, sold, solicited, or transferred drugs or used alcohol during working time or while on the Company’s premises or while operating Company equipment or a vehicle in connection with the employee’s job duties for the Company. However, nothing in this policy requires the Company to administer testing when the Company has independent evidence that an employee has violated this policy. Confirmation, Confidentiality, and Privacy If an initial screening test indicates a positive finding, a confirmation test will be conducted. All drug and alcohol test results will be reported to and reviewed by a medical review officer engaged by the Company. All results will be considered confidential. Results will be disclosed within the Company on a need-to-know basis and as allowed by law and will be retained in a secure location with controlled access. Information about an employee’s medical history and condition obtained in connection with a drug and/or alcohol test will be kept in a confidential file separate from the employee’s personnel file. The Company will attempt to ensure that all aspects of the testing process, including specimen or sample collection, are as private and confidential as reasonably practical. Employees will not be observed while providing a urine specimen unless there is reason to believe that the employee or applicant has tampered with, adulterated, switched, or attempted to tamper with, adulterate, or switch a specimen. An employee who receives a positive confirmed test result may request and receive from the Company a copy of the test report and may request and receive the opportunity, in a confidential setting, to explain a positive test result or contest the accuracy of such result. Employee Assistance We encourage any employee with a drug or alcohol problem to contact Human Resources. The Company will, at the employee’s request, refer the employee to professional assistance at the employee’s expense. All such communications will be kept confidential and will be disclosed within the Company only on a need-to-know basis. Employees won’t be subject to discipline under this policy for voluntarily acknowledging a drug or alcohol problem prior to detection. However, this won’t thereafter excuse any violation of this policy, and employees may not escape discipline by first requesting treatment and/or leave after violating this policy. Acknowledgment of a drug or alcohol problem prior to detection wo n’t guarantee continued employment. Non-Discrimination The Company does not discriminate against any applicant or employee who is qualified for employment with us and has successfully completed or is participating in a supervised drug rehabilitation program and is no longer engaging in the use of illegal drugs, has otherwise been rehabilitated successfully and is no longer engaging in such use, or is mistakenly regarded as engaging in such use, but is not engaging in such use. 2.1.c Packet Pg. 97 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 GENERAL POLICIES 13 SEARCHES Please be aware that the Company has the right (subject to any limitations imposed by applicable law), to carry out reasonable searches of employees and all property brought or located on Company premises to monitor compliance with rules and policies concerning health and safety of employees, security of the Company and our customers, and possession of prohibited items such as illegal drugs, weapons, and items of an obscene, harassing, demeaning, or violent nature. We have included this policy so that, in the unlikely event a search is requested or conducted, you are aware that we have the right to do so. Please keep in mind that there is no expectation of privacy in our workplace. In general, employees should expect that what they do at work is not private. No employee may use their own lock or otherwise restrict or impede access to cabinets, drawers, or other storage areas located on Company premises. Searches may be conducted with or without an employee being present. As a general rule, with the exception of items relating to personal hygiene or health, no employee should ever bring anything to work or store anything at work that the employee would not be prepared to show and possibly turn over to Human Resources and/or law enforcement authorities. No employee will ever be physically forced to submit to a search. However, an employee who refuses to immediately submit to a search upon request from Human Resources may be subject to disciplinary action. 2.1.c Packet Pg. 98 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 14 DAY-TO-DAY MATTERS EMPLOYEE CLASSIFICATIONS At the time of hire, each employee is classified as “full-time” or “part-time,” and also categorized as either “non- exempt” or “exempt.” “Non-exempt” employees (including all hourly employees) are entitled to receive overtime pay under applicable provisions of federal and state wage and hour laws. “Exempt” employees are excluded from the overtime provisions of federal and state wage and hour laws, as their regular wages provide compensation for all hours the work in a week, however few or many. If you are unsure how you have been classified, please consult with Human Resources. “Full-time” employees are employees who regularly work at least 40 hours each week and are not employed in a temporary status. Full-time employees generally are eligible for the Company’s full benefit package, subject to the specific terms and conditions of each benefit program or plan. “Part-time” employees are employees who regularly work less than 30 hours per week. “Temporary employees” work on a short-term or irregular basis, regardless of the number of hours worked in a week. Unless otherwise specifically stated in the applicable benefit policy or plan, temporary employees are not eligible for benefits. HOURS OF WORK The Company’s regular business hours are determined to best meet the Company’s particular business needs. Normally, the Company’s office hours are 9:00 a.m. to 5:00 p.m., and its facilities’ hours are 8:00 a.m. to 4:30 p.m. Employees should work only their scheduled hours unless otherwise instructed by their manager. All non-exempt employees are required to record their time by clocking in and out of the Company’s timekeeping system (presently ADP). All employees must clock in at the beginning of their shift, clock in and out for meal and rest breaks, and clock out at the end of their shifts. Do not clock in before your scheduled start time, never start working before you clock in, and never continue working after you have clocked out. MEALS AND BREAKS Every employee who is to work for 7 1/2 continuous hours or longer is entitled to take at least a 30-minute meal break beginning no later than five hours after the start of the work period (or as otherwise required by applicable law). When no work is performed by non-exempt employees during the meal break, it is unpaid, and their meal break must be recorded as non-working time in the timekeeping system. If non-exempt employees perform work during their meal break, they should record all time spent working so that they are properly paid for their time. Employees also are entitled to two paid 15-minute breaks. Employees must schedule their breaks with their managers. Employees are not allowed to schedule either or both of their 15- minute breaks at the beginning or end of their shift or lunch period, and employees may not use their breaks to arrive at work late or leave work early. Cresco provides an Open Door Policy in which employees are encouraged to take ideas or concerns problems to their supervisor, or next level of management. 2.1.c Packet Pg. 99 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 15 OVERTIME For purposes of calculating overtime and hours worked per week, our work week consists of a 7-day period beginning at 12:00 a.m. on Sunday morning and ending at 11:59 Saturday evening. Non-exempt employees will be notified of the hours they are scheduled to work and are permitted to work only those hours they are scheduled to work, unless pre-approved by their manager. Non-exempt employees must not work more than 40 hours per work week, unless prior approval has been provided by their manager. Non-exempt employees are not expected to engage in any work-related communication (such as email, text,) or listen or respond to work-related voicemails outside of their scheduled work hours. Please note that because overtime pay is calculated based on hours worked, time off (such as a non-working holiday) is not counted toward the calculation of whether a non-exempt employee has worked more than 40 hours in a week. Overtime compensation will be paid to non-exempt employees at a rate of time and one-half for all hours worked in excess of 40 per week (or as otherwise required by applicable law). If you have a question as to whether you are eligible for overtime compensation, please contact Human Resources. ABSENTEEISM/TARDINESS Attendance and promptness are very important when you are scheduled to work. In those cases where you know in advance that you will arrive at work late, leave early, or must miss work altogether, you must find someone to cover your shift. If you are unable to do so, and in those cases where your late arrival, ear ly departure, or absence from work is unexpected (for example, due to illness or other unexpected circumstance), you must call your manager at the earliest possible time in advance of your absence, but in no event later than your scheduled start time on the day of your absence (unless advance notice is impossible as a result of severe illness or emergency). Excessive absenteeism or tardiness and/or dishonesty regarding absence from work, as well as excessive requests to arrive late, leave early, or for time off (other than time off to which you are entitled pursuant to this Handbook or applicable law), may subject you to discipline up to and including termination of employment. If you fail to report for work and fail to communicate with a manager for three or more consecutive work days (other than in emergency situations or other unusual circumstances where such contact is impossible), you will be considered to have voluntarily abandoned your position. PAY DAYS / PAYROLL DEDUCTIONS For exempt employees, pay days are the 15th and last day of each month. For non -exempt employees, pay days are every other Friday. Your pay will be deposited into your account on pay day if you have elected direct deposit (or available for pickup at the Company if you have not elected direct deposit). If pay day falls on a holiday, paychecks may be deposited or distributed the prior day. If you do not have direct deposit and are absent on a pay day, you may pick up your check when you return to work. Applicable law requires that we make certain deductions from your paycheck for such items as income taxes, Social Security, and Medicare. Your wages and the number of exemptions you claim on your W-4 forms determine the amount of income taxes deducted. The Company also will make deductions from your paycheck for other amounts authorized by you, as well as deductions required by wage assignment, garnishment, court order or levy. We do not make illegal deductions. If you believe that a deduction has been made from your paycheck in violation of this policy or applicable federal or state law, please contact Human Resources. 2.1.c Packet Pg. 100 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 16 EXPENSE REIMBURSEMENT The Company will reimburse you for legitimate business expenses incurred in connection with your performance of your job responsibilities, subject to the terms and conditions of this policy. For an expense to be eligible for reimbursement, you must submit to your manager a completed expense reimbursement form as soon as possible, but no later than 30 days following the date on which the expense was incurred. Each expense must be submitted with an itemized original or digital receipt evidencing the expense. All approved expense reports, along with such receipts, must then be submitted to the accounting department for payment. If your employment terminates for any reason (voluntarily or involuntarily), expenses must be submitted within seven days following your separation date in order to be eligible for reimbursement. The Company expects that employees will exercise their best judgment in booking travel. The following are some guidelines that will assist you: Air Transportation: • Book airfare as far in advance as possible to take advantage of discounted rates. • Employees are expected to book “coach” or economy class. If there are extenuating circumstances, such as a longer than usual flight, please discuss them in advance with your manager. First class and business class airfare (including upgrades) will not be reimbursed unless approved in advance by your manager. • Generally, the Company will reimburse employees for the cost of one checked bag if that cost is not already included in the price of the ticket. Employees will be reimbursed for the cost of two or more checked bags only upon pre-approval of their manager, or in extenuating circumstances. • Employees will be responsible for any expenses incurred as a result of transportation changes of the employee’s fault (for example, missing a flight because you were running late). • The Company understands that employees may be loyal to a particular airline, hotel chain, or rental car operator for a number of reasons, such as participation in a loyalty or rewards programs, and while employees are not required to book the least expensive flight option if that means deviating from an employee’s preferred airline, employees are still expected to exercise reasonable judgment on price when selecting flight options. • The Company appreciates the inconvenience of traveling for business. Therefore, if an employee books airline travel with their preferred airline and receives miles for that travel, the miles are retained by the employee. If an employee charges expenses to their personal credit card for which the employee receives rewards of any kind, the rewards are retained by the employee. Ground Transportation: • Fuel: Fuel purchases are reimbursable only for a rental vehicle, not your personal vehicle (even if use of your personal vehicle is used for Company-related travel). Instead, mileage reimbursement (discussed below) is intended to cover fuel expenses for Company-related travel in your personal vehicle. • Vehicle Rental: Although the Company understands that employees may have preferred rental agencies, employees are expected to book rental vehicles through Hertz whenever possible. Employees also are expected to select the size of car appropriate for the situation (e.g., taking into account the number of passengers, baggage, and safety concerns due to inclement weather), and reimbursement for vehicles larger than a mid-size car will be at the discretion of the employee’s manager. • Mileage: Mileage for Company-related travel in your personal vehicle will be reimbursed at the rate established by the IRS. To be eligible for reimbursement, you must record on your expense report the total miles driven. Mileage is calculated based on your total round-trip miles. Regular home-to-office and office-to-home mileage is not reimbursable. • Tolls: Tolls incurred while traveling on Company-related business (except traveling to and from work) are eligible for reimbursement, provided that employees provide receipts documenting the travel and an explanation of the need for travel. 2.1.c Packet Pg. 101 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 17 Lodging: • Only lodging for out-of-town travel is eligible for reimbursement. You are expected to exercise reasonable judgment in booking lodging. • Whenever possible, lodging should be booked as early as possible to take advantage of discounted rates. • Reasonable room service charges are eligible for reimbursement. • In-room charges, such as phone charges, movies, mini-bar purchases, etc., are not eligible for reimbursement. Meals: • While traveling out of town for Company-related business, reasonable food and beverage purchases are eligible for reimbursement provided that a detailed receipt is submitted for each purchase. Miscellaneous: • The cost of wi-fi for business purposes on airplanes and in hotels is eligible for reimbursement. PERFORMANCE REVIEWS / COMPENSATION REVIEWS We understand that receiving feedback regarding your performance is important to you. Throughout your employment with the Company, it’s our intention to keep you apprised of your performance. The Company conducts annual performance reviews. Two-way communication is encouraged as we mutually review performance and establish new goals and objectives for the following year. In addition to their annual reviews, employees will have monthly check-ins with their managers. Your compensation will be reviewed in connection with your performance review. The Company prides itself on compensating its employees fairly based on their individual performance and the Company’s performance. However, raises are not guaranteed; rather, all compensation changes are in the discretion of the Company’s management team. ATTIRE / APPEARANCE The Company has a business casual dress policy Monday through Friday for all office employees. While jeans are allowed, employees are expected to use common sense at all times in selecting attire for a work day. Basic standards of appropriate dress include the need for clothing to be neat and clean and preclude extremes in attire, accessories, or hairstyle. Employees also are expected to observe basic standards of personal hygiene. Employees at certain locations and in certain positions may be required to wear a uniform. Specifically, in all of the Company’s facilities except its corporate office, all employees must wear Company-issued uniforms and appropriate footwear as designated by the Company. (Currently, the Company recommends employees purchase Crocs, or shoe brands that offer aeration comparable to Crocs.) Note that your attire should suit the type of work required. For example, if you are going to be lifting or moving product, then dress in a manner that will allow you to do so comfortably (without violating this policy). If a manager or Human Resources determines that you have violated this policy, you may be required to leave work to remedy the violation. For non-exempt employees, any such time away from work will be unpaid. When in doubt whether a particular style or type of dress is appropriate, ask your manager or Human Resources. Please note that this dress code is not intended to supersede or prohibit any religious or ethnic practices or supersede our policy regarding reasonable accommodation. If you have any questions or concerns in this regard, please contact Human Resources. 2.1.c Packet Pg. 102 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 18 HYGIENE / CLEANLINESS Hygiene is very important in our business. Therefore, all employees must wash their hands and exposed portions of their arms with warm water and soap: • When starting a shift or upon returning to work after a break • After using the restroom • After eating • Before handling medical cannabis, including working with food, equipment, and utensils • During handling of medical cannabis, as often as necessary to maintain clean hands and prevent contamination when changing tasks • After handling soiled equipment or utensils • After touching bare human body parts other than the employee’s clean hands and exposed portions of arms REFERENCES All requests for information about current or former employees, including any requests for references, must be directed to Human Resources. You may not give any information to any third party regarding a coworker, whether that information is favorable or unfavorable. Similarly, please don’t ask any other employee to provide you with a reference, as this is against Company policy and puts the employee in an awkward position. As a general rule, the Company will respond to any request for information regarding a former employee by confirming only his or her dates of employment and position(s) held. SMOKING/TOBACCO PRODUCTS The Company operates no-smoking facilities. Smoking (including use of electronic cigarettes and vapes), as well as use of smokeless tobacco products, is prohibited at all times in all areas, including restrooms. If you choose to smoke, you must do so outside the building and at least 15 feet away from building entrances, exits, windows that open, and ventilation intakes. Leaving cigarette butts, cigar butts, or tobacco on the ground, in bushes, etc. is littering. If littering occurs, smoking privileges will be suspended. It is the smoker’s responsibility to dispose of his or her cigarette and cigar butts in an appropriate manner. TELEPHONES The Company’s telephone system is intended to be used primarily for business purposes. Personal use of Company telephones, as well as personal cell phones (whether texting, talking, or for other use) must be kept to a minimum and must not interfere with your job responsibilities. Company telephones are the property of the Company. All messages created, sent, or received on Company telephones are also property of the Company and should not be considered private. The Company has the right (but not the obligation) to monitor its telephone and voice mail system, including reviewing voice mail messages sent and received by employees. CELL PHONES/SMARTPHONES The company has moved to a “Bring Your Own Device” plan. Exempt employees are expected to use their cell phone for business proposes regularly, therefore JDRC will reimburse employees based on the below tiers: • Officers & Remote Sales Associates: $100.00 a month • Vice Presidents and Directors: $50 a month • Managers and Professionals: $25 a month 2.1.c Packet Pg. 103 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 19 Company employees who interface their personal cell phone or smartphone with the Company’s communications systems such that emails to and from an employee’s Company email address are accessible on the employee’s device are expected to follow the following terms and conditions relating to their use of their devices: • The employee is responsible for working with the Company’s IT vendor to interface their Company email with their device. Please contact Human Resources for information on contacting the Company’s IT vendor. • The device used by the employee will be purchased by the employee and will, at all times, remain the sole property of the employee. • All Confidential Information downloaded onto or maintained on an employee’s device will, at all times, remain the Company’s property. • Maintenance of an employee’s device, including, but not limited to, repair or replacement, is the sole responsibility of the employee who owns the device. In the event that an employee’s device is damaged, lost, or stolen, the employee is responsible for repairing or replacing the device. Further, in the event an employee’s device is lost or stolen, the employee must promptly email Human Resources so that security measures may be taken with respect to Company email communications. • Cell and data service for the device (including obtaining such service, the cost of such service, and all service interruptions) is the sole responsibility of the employee who owns the device. • Non-exempt employees must generally refrain from responding to business calls, emails, or texts outside of their regular working hours, and they are not expected to spend more than a minimal amount of time checking emails and voicemails outside of these hours without prior approval of their manager. Using a Cell Phone for Miles-Related Business As a representative of the Company, each employee who uses a cell phone to conduct Company business is reminded that the regular business etiquette employed when speaking from office phones or in meetings applies equally to conversations conducted over a cell phone. Employees who have access to a cell phone while in their cars should remember that their primary responsibility is driving safely and obeying the rules of the road. Do not engage in any activity that distracts you from driving or takes your eyes or attention off the road. For example, do not operate cell phones or other handheld devices (including talking, dialing, or sending or receiving text messages or emails) unless your vehicle is parked. 2.1.c Packet Pg. 104 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 20 COMPUTER, EMAIL, AND INTERNET USE The Company’s computer and telecommunications systems are the property of the Company and are intended primarily for business purposes. Our systems may be used for limited personal reasons as long as such use does not interfere with your work and otherwise complies with all policies in this Handbook. Please also note the following requirements, which apply whether use is business-related or personal: • Sending, receiving, displaying, printing, or otherwise disseminating material that is fraudulent, harassing, illegal, embarrassing, sexually explicit, obscene, intimidating, or defamatory is prohibited. Employees encountering such material should report it to Human Resources immediately. • Employees may not use the Company’s email resources for commercial or personal advertisements, solicitations, promotions, destructive programs (e.g., viruses and/or self-replicating code), or political material, or any other damaging use. Internet and email resources may be used for limited personal reasons provided such use does not interfere with your work and otherwise complies with all policies in this Handbook. • The Company will not be responsible for any direct or indirect damages arising out of the use of Internet resources on its computers. Employees are responsible for the material they review and download from the Internet. Damages to Company computers or software caused by material downloaded from the Internet or other non-Company sources are the responsibility of the person who loaded the program. • The Company has the right, but not the duty, to monitor any and all aspects of its computer system, including, but not limited to, monitoring sites employees visit on the Internet, reviewing material downloaded or uploaded by employees, and reviewing email sent and received by employees. Employees waive any right to privacy in anything they create, store, send, or receive on Company computers or the Internet. • Employees must use any passwords and access codes provided by the Company solely to perform their job responsibilities for the Company and to promote the Company’s business and are prohibited from disclosing any such passwords or access codes to anyone, including, but not limited to, other persons employed or engaged by the Company. • Employees must comply with all software licenses, copyrights, and all other federal and state laws governing intellectual property and online activity. SOCIAL MEDIA As used in this policy, “Social media” includes all means of communicating or posting information or content of any sort on the Internet, including to your own or someone else’s blog, journal or diary, personal web site, social networking or affinity web site, web bulletin board or a chat room, whether or not associated or affiliated with the Company. Because your use of social media can lead to personal and professional legal ramifications for you and the Company, we expect you to follow these guidelines with respect to any other form of electronic communication as well. The same principles and guidelines found in other policies set forth in this Handbook (as more fully described below) apply equally to your activities online. Ultimately, you are solely responsible for what you post online. Before creating online content, consider some of the risks and rewards that are involved. Avoid engaging in conduct that adversely affects your job performance or the performance of fellow employees, or otherwise adversely affects the protection of confidential and/or proprietary information belonging to the Company, our customers, our vendors, or our legitimate business interests. Know and Follow the Rules Carefully read the Company’s policies regarding Computer, Email, and Internet Use; Protection of Confidential Information; Workplace Violence; and Anti-Discrimination, and Anti-Harassment, and ensure your postings are consistent with these policies. Inappropriate postings that include discriminatory remarks, harassment, and threats of violence or similar inappropriate or unlawful conduct won’t be tolerated. 2.1.c Packet Pg. 105 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 21 Be Respectful Strive to be respectful to the Company, your co-workers, customers, vendors, and other organizations and individuals who work on behalf of the Company. Also, keep in mind that you are more likely to resolve work- related complaints by speaking directly with your co-workers and/or Human Resources, or utilizing the Company’s Complaint procedure, than by posting complaints to a social media outlet. Nevertheless, if you decide to post complaints or criticism, avoid using statements, photographs, video or audio that reasonably could be viewed as malicious, obscene, threatening or intimidating, that defame employees, customers, or vendors, or that might constitute harassment or bullying. Be Honest and Accurate Make sure you are always honest and accurate when posting information or news, and if you make a mistake, correct it quickly. Be open about any previous posts you have altered. Remember that the Internet archives almost everything; therefore, even deleted postings can be searched. Never post information or rumors that you know to be false about the Company, your co-workers, customers, vendors, other organizations or individuals working on behalf of the Company, or competitors. Whenever promoting the Company, make sure to disclose that you are an employee of the Company. This is important to comply with truth in advertising and other related laws. Post only Appropriate Content • Maintain the confidentiality of Company trade secrets and Confidential Information (as defined in the Company’s Confidential Information policy). Do not post or refer to Confidential Information on-line. This includes, but is not limited to, pictures of the Company’s plants and seeds. • Do not create a link from your own blog website, or other social networking site to a Company website without identifying yourself as a Company employee. • Express only your personal opinions. Never represent yourself as a spokesperson for the Company. If the Company is a subject of the content you are creating, be clear and open about the fact that you are an employee and that your views don’t represent those of the Company, fellow employees, customers, vendors, or other organizations or individuals working on behalf of the Company. If you do publish a blog or post online related to the work you do or subjects associated with the Company, make it clear that you are not speaking on behalf of the Company. It is best to include a disclaimer such as, “The postings on this site are my own and don’t necessarily reflect the views of JDRC Managed Services, LLC.” • Of course, nothing in this policy will be applied in a manner that limits employees’ rights to engage in protected concerted activity as defined by the National Labor Relations Act. Using Social Media at Work We expect our employees to use social media in reasonable amounts during working time or on equipment we provide. Should your use of social media become an issue, this will be brought to your attention and your time may be limited, and/or you may be subject to disciplinary action. Use may be work-related as authorized by your manager, or consistent with the Company’s other policies. You may not use Company email addresses to register on social networks, blogs, or other online tools for personal use. Remember, too, that you should not have an expectation of privacy in your use of any Company equipment. While the Company would never intentionally capture and keep your passwords to any of your social media accounts, information displayed on any Company computer or other equipment may be viewed and/or recorded by the Company. Company Social Media Accounts You may, as part of your responsibilities for and on behalf of the Company, create and/or utilize social media accounts for the benefit of the Company (“Company Social Media Accounts”). Company Social Media Accounts may be created only with preapproval of Director of Communications & Marketing, and all account names you create and/or utilize for Company Social Media Accounts must be preapproved by Director of Communications & Marketing. Company Social Media Accounts, as well as all passwords, data posted and obtained, and the goodwill associated with such accounts are owned by the Company. You must disclose to Director of Communications & Marketing all passwords utilized for Company Social Media Accounts, and you may not, without preapproval of one of Director of Communications & Marketing, change any password or take any other action to restrict Director of Communications & Marketing’s access to Company Social Media Accounts. 2.1.c Packet Pg. 106 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 22 Director of Communications & Marketing (or their designee) may edit or remove content (including text, pictures, and links) posted to Company Social Media Accounts, or modify, close, transfer to another individual, and/or terminate your access to Company Social Media Accounts. You are expected to use Company Social Media Accounts solely to conduct Company -related business, including promoting the Company, creating goodwill for the Company, and furthering the Company’s business relationships. You may not post links to your personal account in any Company Social Media Account without preapproval from Director of Communications & Marketing. Nothing in this policy is intended to prohibit you from maintaining your own personal social media accounts, identifying yourself as an employee of the Company, or discussing the Company, provided that such activity does not result in the disclosure of Confidential Information or otherwise violate the Company’s policies. If you maintain your own personal social media account, you must maintain it separately from any and all Company Social Media Accounts. Retaliation is Prohibited The Company prohibits taking negative action against any employee for reporting a possible deviation from this policy or for cooperating in an investigation. Any employee who retaliates against another employee for reporting a possible deviation from this policy or for cooperating in an investigation will be subject to disciplinary action. USE OF EMPLOYEE IMAGES The Company occasionally uses photographs or other likenesses of its employees in marketing materials, brochures, holiday cards, and on Web sites (including social media sites). Employees therefore understand and agree that the Company may occasionally acquire and use such images, during and after employment, for these and any other lawful purposes (unless otherwise required by applicable law). The Company also may ask employees to sign forms related to the use of their images. Employees who do not want their images to be included in these materials, brochures, holiday cards, and Web sites should email Human Resources. MAINTENANCE/USE OF COMPANY PROPERTY The Company invests in furnishings, decorations, and personal convenience equipment to make each of us comfortable and productive. Please exercise reasonable care in using our equipment. Exercise common courtesy by cleaning up after yourself and keeping your workspace neat and clean. NO RESPONSIBILITY FOR PERSONAL PROPERTY The Company is not responsible for personal property that is lost, stolen or damaged. Please make sure that your personal belongings are in a safe place during the day and that you take your belongings with you after work. PERSONAL VISITORS No personal visitors are allowed at the Company’s production facilities. Visitors to the Company’s corporate office must be escorted at all times. OUTSIDE EMPLOYMENT If you are employed by the Company on a full -time basis, we expect that your position with us is your primary employment. Any outside activity must not interfere with your ability to perform your job duties for the Company. Under no circumstances may any employee work for a competitor of the Company while employed with the Company. If you are considering accepting a job outside the Company, you must notify Human Resources prior to accepting such employment/engagement. Human Resources will discuss the job with you to make sure that it won’t interfere with your job duties for the Company or pose a conflict of interest. PERSONNEL RECORDS It is important that our records are complete and up to date. Please notify Human Resources of any change in your legal name, home address or telephone number, marital status, or number of dependents, change of beneficiary, or emergency contact information. We need this information for insurance purposes, to comply with laws and regulations, and to notify your family in the event of an emergency. 2.1.c Packet Pg. 107 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 23 PROTECTION OF CONFIDENTIAL INFORMATION Protection of the Company’s Confidential Information and trade secrets is vital to our business’ interests and success. “Confidential Information” is any and all information disclosed to or known by you as a consequence of your employment with the Company that is not generally known to people outside the Company about its business, its marketing and sales strategies and plans, its finances, operations, employees, methods, processes, computer software, customers, vendors, accounts, billing methods, pricing, data, business methods, and any and all information entrusted to the Company in confidence by third parties, and any and all information defined as “trade secrets” under applicable law. Confidential Information may be contained in written materials, verbal communication, your unwritten knowledge, and in the unwritten knowledge of other employees, and/or any other tangible method of expression, including external storage devices. Examples of Confidential Information include, but are not limited to, the following: • Operating procedures • The identity of, personal information, and contact information of customers • Product formulations • Data submitted by or on behalf of the Company to government authorities • Marketing and promotional strategies • Financial and accounting information • Price/costing lists, structures, and formulas • Purchase orders and invoices • Passwords and access codes • Training information and materials • Proprietary computer programs, databases, and software • Computer network and security information • Business plans Due to the proximity in which employee’s work, any information about the Company or its customers that is overheard or seen while in the course of your duties should be considered confidential and not revealed or discussed with family, friends, or anyone else without prior written approval from the Company’s CEO or CFO. CONFIDENTIALITY OF CUSTOMER MATTERS Please recognize the necessity for discretion in this business. All employees must maintain confidentiality when handling customer matters. No employee may disclose customer information to outsiders, including other customers, vendors, third parties, or members of the customer’s family or the employee’s family. Customers trust us to maintain their confidentiality and care. The Company has adopted policies and procedures regarding HIPAA confidentiality compliance, and you are expected to become familiar with them and follow them. In needed, please ask Human Resources for information regarding the HIPAA code. Any disclosure of confidential information or failure to follow HIPAA confidentiality obligations may result in disciplinary action, up to and including termination of employment. 2.1.c Packet Pg. 108 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 DAY-TO-DAY MATTERS 24 SOLICITATION, DISTRIBUTION, AND COLLECTION The Company prohibits any employee from soliciting, collecting from, or selling to any other employee during the working time of the soliciting employee or of the employee being solicited. “Working time” means the time during which either the soliciting or solicited employee should be working but does not include meal times, break periods, or other periods when employees are not actively at work. The Company also prohibits any employee from distributing literature, pamphlets, or other materials to any other employee in work areas. “Work areas” means all areas in which employees normally work, confer, or conduct business but does not include break rooms, washrooms, or any other area specifically designated for non-work purposes. Persons not employed by the Company are not allowed to solicit or distribute pamphlets or other materials on Company property for any purpose at any time unless authorized by the Company’s CEO or CFO. Please notify Human Resources if you observe any violation of this policy. STANDARDS OF CONDUCT Employees are expected to act in a professional and responsible manner while on Company property, conducting Company business off property, traveling in connection with Company business, and at all other times where our employees, customers, vendors, or other persons having business relationships with the Company are present. A list of basic guidelines follows. It is not all-inclusive. Violation of any of these guidelines (or any other policy in this Handbook) may subject you to disciplinary action, up to and including immediate termination of employment. Of course, nothing in this policy will be applied in a manner that limits employees’ rights to engage in protected concerted activity as defined by the National Labor Relations Act. • Theft or attempted theft of Company property or property of any customer, employee, vendor, or visitor. • Dishonesty, embezzlement, falsification of records (including employment application materials), falsification of time records or expense reimbursement requests. • Committing or threatening to commit injury or damage to Company property, employees, customers, or visitors. • Insubordination or refusal to accept work assignments. • Failure to complete work assignments, incompetence, or poor performance of work assignments. • Fighting. • Involvement in illegal activities on Company property, during working time, or in connection with Company business. • Instigating, encouraging, or Company in any illegal work stoppage, slowdown, strike, or other interference with Company operations. • Defaming the Company or its customers, employees, vendors, or products. • Unauthorized use of Company funds, property, or products. • Violation of any other Company policy. DISCIPLINARY ACTION Disciplinary action for violation of any policy in this Handbook may include, but is not limited to, suspension or termination of employment. In cases involving less serious violations, disciplinary action may consist of a warning or reprimand. Remedial action may also include counseling, changes in work assignments, changes in level of responsibility of tasks assigned, changes in compensation, or other measures designed to prevent future misconduct. We will try to handle disciplinary matters so that the measure of discipline corresponds to the seriousness of the offense as weighed by its potential effect on our business, our employees, and our customers. However, nothing in this policy obligates us to employ a progressive disciplinary policy or modifies our policy of employment at-will. 2.1.c Packet Pg. 109 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 25 COMPLAINT PROCEDURE We strive to provide a work environment that is free of conflict or disagreements. However, we know that on occasion, misunderstandings occur. We encourage all employees to bring these matters to light for resolution. If you are unable to resolve the issue directly with the other person(s) involved, you are encouraged to review your concerns with Human Resources. If, for any reason, you don’t feel comfortable reporting the harassment to Human Resources, you should report it to the CFO. In all case s we will seek resolutions to problems in a positive manner. DISPUTE RESOLUTION Except as provided in this policy, all disputes regarding your employment with the Company or termination of your employment that are not resolved through the Complaint Proced ure policy located above (including any dispute relating to the validity, scope, or applicability of this Dispute Resolution policy) must be determined by arbitration before one neutral arbitrator in Chicago, Illinois. The arbitration, including procedures for selection of the arbitrator (if an arbitrator cannot be agreed upon by you and the Company), must be administered by JAMS pursuant to its Employment Arbitration Rules & Procedures. However, the arbitration will provide for (a) discovery adequate to give you and the Company access to documents and witnesses that are essential to the dispute, and (b) the arbitrator’s written decision that includes the essential findings and conclusions on which the decision is based. Judgment on the arbitration award may be entered in any court having jurisdiction. Unless otherwise required by applicable law, the prevailing party in the arbitration will be entitled to reimbursement of his/her/its reasonable attorneys’ fees and costs (including experts’ fees) from the non-prevailing party. If neither party prevails entirely, the arbitrator will award attorneys’ fees in accordance with the disposition of the dispute. All arbitration proceedings regarding wages or compensation, including claims regarding overtime or minimum wage, must be conducted solely on an individual basis in accordance with this policy, and you may not seek to have any dispute heard as a class action, a representative action, a collective action, or institute or participate in any proceeding against the Company in which you act or propose to act in a representative capacity. Similarly, no arbitration proceeding will be joined, consolidated, or combined with another arbitration proceeding without the prior written consent of the Company’s CEO or CFO. Please note that this Dispute Resolution policy does not apply to (a) any claims which you cannot be legally required to arbitrate, which must be litigated in the Circuit Court of CFOk County in Chicago, Illinois, or in the United States District Court for the Northern District of Illinois, (b) your filing of a claim or charge against the Company with an administrative agency, such as the National Labor Relations Board or the Equal Employment Opportunity Commission, or (c) any claim to workers’ compensation or unemployment benefits. Further, this Dispute Resolution policy does not prohibit or limit the Company’s or your right to seek equitable relief from a court, including but not limited to injunctive relief, which must be brought in the Circuit Court of CFOk County in Chicago, Illinois, or in the United States District Court for the Northern District of Illinois. Your agreement to and compliance with this policy are conditions of employment. We strive to provide a work environment that is free of conflict or disagreements. However, we know that on occasion, misunderstandings occur. We encourage all employees to bring these matters to light for resolution. 2.1.c Packet Pg. 110 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 26 BENEFITS AND LEAVE We believe it is important that you take the time you need for rest, relaxation, and personal needs that may arise that require time away from work. At the same time, we need to ensure that our business continues to operate and that we can meet the needs of our customers even when our personnel are absent. Accordingly, we have implemented time-off and leave policies that allow you to get the time you want and need – when you want it and need it – without disrupting the service we provide to our customers. Please note, however, that we expect that you won’t engage in outside employment or work for others while on a leave of absence. All benefits offered by the Company are subject to the terms and conditions of the applicable plans or programs, as well as the employee’s eligibility for benefits under such plans or programs. If any provision of this Handbook or any benefit booklet or summary plan description conflicts with the actual plan documents, the actual plan documents govern. Benefits may change or be eliminated with or without advance notice, subject to applicable legal requirements. If applicable law (including state or local law) entitles an employee to a leave of absence or paid time off that is not specifically set forth in this Handbook (or time off – paid or unpaid – that exceeds the amount of time off set forth in the policies in this Handbook), the Company will comply with such law. Unless otherwise stated in in this Handbook, a written agreement signed by the Company’s CEO or CFO, or a benefit plan (or required by applicable law) all paid time off to which an employee is entitled will be calculated based on the employee’s regular base pay rate multiplied by the number of hours the employee would otherwise have worked on each day of absence (up to a maximum of eight hours). If applicable law entitles you to time off or benefits in addition to or more favorable than those described in this Handbook, the Company will comply with such laws. INSURANCE BENEFITS As of the date of this Handbook, the Company offers full -time, non-temporary employees the following benefits, subject to all applicable terms and conditions: • Medical Insurance • Dental Insurance • Vision Insurance • Basic Life Insurance • Voluntary Life Insurance • Accidental Death & Dismemberment Insurance • 401(k) Plan • Flexible Spending Account • Short-Term Disability Insurance • Long-Term Disability Insurance Please see Human Resources for additional information regarding benefit plans, including eligibility information (such as applicable waiting periods), coverage details, and whether benefits are company-paid, employee-paid, or employee-contributory. 2.1.c Packet Pg. 111 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 27 CIVIL UNIONS The Illinois Religious Freedom Protection and Civil Union Act (the “Civil Union Law”) provides that both same-sex and opposite sex couples who enter into a civil union will have all of the obligations, protections, and rights that are afforded under Illinois law to married heterosexual couples. As used in the Civil Union Law, a “civil union” means (a) a legal relationship between two persons, of either the same or opposite sex, as to which the county clerk has issued a license and certificate of civil union, or (b) a marriage between persons of the same sex, a civil union, or a substantially similar legal relationship other than common law marriage, legally entered into in another jurisdiction. An Illinois-based employee who desires the protections of the Civil Union Law must provide to Human Resources a copy of the state- or county-issued certificate of the civil union. Once such certificate is provided, the Company will provide health and welfare benefits to employees, their civil union spouses, and their families, that are identical to such benefits offered to married couple and their families, if the applicable insurance contract is written in the State of Illinois. Any coverages provided to the civil union spouse and/or dependent(s) will not be taxable for Illinois state income tax purposes, but may be taxable under federal tax laws if the covered individual does not qualify as either a qualifying child or qualifying relative. Accordingly, please obtain from Human Resources and complete an affidavit to indicate the tax status of each such individual. If this information is not provided, the covered civil union spouse and/or dependent(s) will have imputed income for the coverages provided. A civil union spouse will not be eligible for continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), but may be eligible for continued medical coverage under Illinois’ continuation law, if otherwise eligible. The dependents of a civil union spouse may be eligible for continuation coverage under COBRA and Illinois’ continuation law, if otherwise eligible. If the state laws of non-Illinois employees provide the same or similar types of protections, the Company will comply with such laws. DISCRETIONARY TIME OFF (EXEMPT EMPLOYEES) The Company’s exempt employees are not awarded a specific amount of vacation time. Rather, each exempt employee is encouraged to take a reasonable amount of time off for such purposes as vacation, travel, time with family and/or friends, relaxation, and personal business (collectively, “discretionary time off”), as long as they timely complete all work assignments and are responsive to the needs of clients and colleagues. That said, to ensure continuity of the Company’s operations and avoid compromising client service, discretionary time off remains subject to pre- approval (unless otherwise explained in this Handbook), should be scheduled in advance whenever possible, and employees will remain accountable for the reasonableness of their discretionary time off – in terms of quantity, duration, and timing. Exempt employees are eligible to use discretionary leave after completing 90 days of employment with the Company. For discretionary time that is foreseeable, you must obtain approval from your manager and enter the request in ADP Workforce Now as early as possible. The Company will make an effort to accommodate every request for discretionary time off, Cresco is excited to introduce the Discretionary Time Off policy. This will help employees to get the time off they need and not having to wait until they accrue. but your manager has the discretion to grant or deny requests, taking into account operating requirements as well as requests previously submitted by other employees and your employment record. During the Company’s busy periods, it reserves the right to impose “black out” periods during which employees will not be able to use discretionary time, or will be able to use discretionary time only in limited amounts. Conflicting requests to take time off will be assessed based on a variety of factors, including length of service, your employment record, and the reason for time off (for example, an employee’s request to take time off for his/her wedding and honeymoon or a family reunion may take priority over another employee’s request to go on a trip for which scheduling can be more flexible). Employees are encouraged to work together to resolve conflicting requests. 2.1.c Packet Pg. 112 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 28 For discretionary time off that is unforeseeable, you must notify your manager as early as possible, but in no event later than the beginning of the scheduled workday on which you will take time off, unless doing so is impossible (for example, in the event of a family crisis), in which case you should contact your manager as soon as possible. If you fail to report for work and fail to follow the notification procedure outlined above or otherwise communicate with your manager for three or more consecutive work days (other than in emergency situations or other unusual circumstances where such contact is impossible), you will be considered to have voluntarily abandoned your position. Because no particular amount of discretionary time off is promised, guaranteed, vested, or accrued, there is no “accrual” or “carryover” of time off for those who elect not to take time off. Likewise, because discretionary time off does not accrue, employees who elect not to take time off are not paid for “unused” time off upon separation from employment. Discretionary time off may not be used for absences that are covered under another Company policy regarding time off or leave (whether paid or unpaid), and/or for which employees are entitled to income replacement under another Company policy or the Company’s benefit plans. These include policies in this Handbook regarding Paid Sick Leave, Holidays, Jury Duty, Witness Leave, Bereavement Leave, Domestic or Sexual Violence Leave, Military Leave, Family and Medical Leave, and Parental Leave, as well as benefit plans in respect of workers’ compensation, short-term disability, long-term disability, and accidental death & dismemberment insurance coverage. Also, employees may not use discretionary time off immediately before or immediately following a leave of absence, when the request has the intent or effect of extending the leave, or the reason for time off is the same as or similar to the reason for leave. Rather, if you need time off that exceeds the length of leave to which you are entitled pursuant to this Handbook or applicable law, contact Human Resources, and your situation will be considered. Please note: Your use of discretionary time off must be reasonable and mus t allow you to continue to attain the performance excellence expected of you. Excessive requests for time off (other than leave permitted by this Handbook or required by applicable law), may subject you to discipline up to and including termination of employment, and/or will be factored into your performance and/or compensation review. PAID TIME OFF (NON-EXEMPT EMPLOYEES) The Company grants paid time off (“PTO”) to all full-time, non-exempt employees. Part-time and temporary employees are not eligible for PTO. Exempt employees receive paid time off pursuant to the Discretionary Time Off policy. Accrual of PTO PTO begins accruing on an eligible employee’s date of hire, and the employee may begin using PTO following completion of 90 days of service. Each eligible employee is entitled to five days of PTO each calendar year for their first four years of employment with the Company. Beginning on an eligible employee’s fifth anniversary of employment, the employee is entitled to 10 days of PTO each calendar year. PTO accrues each pay period and is credited to an employee’s PTO bank each pay day. Use and Payment of PTO You must contact your manager to request to use PTO with as much advance notice as possible (particularly when use of multiple consecutive days of PTO is desired), but in no event later than one week before the beginning of the scheduled workday on which you will take time off, unless doing so is impossible (for example, in the event of a family crisis). If providing at least one week’s notice is impossible, you should contact your manager as soon as possible If your request to use PTO is approved, you must enter the request in ADP Workforce Now. All PTO hours must be logged into the Company’s time tracking software. The Company will make an effort to accommodate every PTO request, but managers have discretion to grant or deny PTO requests, taking into account the Company’s operating requirements as well as requests for time off previously submitted by other employees. Please note that during the Company’s busy periods, it reserves the right to impose “black out” periods during which employees will not be able to use PTO, or will be able to use PTO only in limited amounts. 2.1.c Packet Pg. 113 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 29 PTO for eligible employees is also subject to the following parameters: • Employees may use PTO in half-day (i.e. four-hour) or full-day (i.e., eight-hour) increments. • PTO is paid based on the employee’s regular base rate of pay. • The Company encourages its employees to use their accrued PTO, and therefore PTO must be used in the calendar year in which it accrues. If accrued PTO is not used within the calendar year in which it accrues, all unused PTO is forfeited on December 31st (unless otherwise required by applicable law). • PTO may not be cashed out for any reason. However, if required by applicable state law, accrued but unused PTO will be paid out upon separation from employment. • Employees may not use PTO before it accrues. PAID SICK LEAVE (NON-EXEMPT EMPLOYEES) The Company grants paid sick leave to all full-time, non-exempt employees. Part-time and temporary employees are not eligible for paid sick leave. Each non-exempt employees will receive 40 hours of paid sick leave at the beginning of each year. Sick leave is available beginning with the first hour away from the job due to illness or injury. Sick leave must be used in a minimum of four-hour increments. Employees may use sick leave for themselves or their children, legal guardians or wards, spouse, domestic partners (including parties in a civil union), parents, parents of a spouse or domestic partner, grandparents, grandchildren, siblings, or any other individual related by blood or whose close association with the employee is the equivalent of a family relationship, for the diagnosis, care, or treatment of an existing health condition or preventative care. Sick leave also may be used for employees and family members who are victims of domestic violence, sexual assault, or stalking. Employees may also use sick leave when work or a child’s school/place of care has been closed by the public health officials for a public health emergency. For hourly, non-exempt employees Paid Sick Leave policy will be front loaded to help employees take time off at the beginning of the year and not wait for the accrual of the PTO policy. Sick leave is not a vested benefit; therefore, employees will not receive pay for unused sick leave upon separation from employment. Upon oral or written request to their manager, employees may use accrued but unused sick leave. In requesting sick leave, if the need to use paid leave is foreseeable, an employee must provide reasonable advance notice (preferably as soon as the employee is aware of the need for leave). If the use of sick leave is not foreseeable, the employee must provide notice as soon as practical. If an employee is rehired by the Company within 12 months following separation from employment with the Company, upon rehire all previously accrued but unused sick leave (if any) will be reinstated. Retaliation or discrimination against an employee who requests sick leave or uses sick leave or both is prohibited HOLIDAYS The Corporate Office & Facilities generally observes the following holidays: New Year’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day 2.1.c Packet Pg. 114 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 30 If a recognized holiday falls during an eligible employee’s paid absence (such as PTO), the absence for the day will be counted only as holiday pay and will not be counted against the employee’s PTO entitlement. If a recognized holiday falls during an unpaid absence, the employee is not entitled to holiday pay. We recognize that there may be religious or cultural holidays (other than those already designated) that employees would like to observe. Provided that you send an email to Human Resources in advance, then subject to the requirements of our PTO policy, you may take PTO to observe such holidays. FAMILY AND MEDICAL LEAVE The Family & Medical Leave Act (“FMLA”) requires employers with 50 or more employees to provide eligible employees with unpaid leave in certain circumstances. There are two types of leave available, including a basic 12- week leave entitlement (“Basic FMLA Leave”), as well as military family leave entitlements (“Military Family Leave”) each described below. Eligibility for FMLA Leave Employees are eligible to apply and be considered for FMLA leave if they: 1. Have worked for the Company for at least twelve months in the seven-year period immediately preceding the request for leave; 2. Have worked at least 1,250 hours for the Company during the twelve calendar months immediately preceding the request for leave; and 3. Are employed at a work site that has 50 or more employees within a 75-mile radius. 4. Employees with any questions about their eligibility for FMLA leave should contact Human Resources. Basic FMLA Leave Employees who meet the eligibility requirements described above are eligible to take up to a total of 12 weeks of unpaid leave during any 12-month period for any of the following reasons: 1. To care for the employee’s child during the first twelve months following birth; 2. To care for a child during the first twelve months following placement with the employee for adoption or foster care; 3. To care for the employee’s spouse, child, or parent (each, a “Covered Relation”) with a serious health condition; 4. For incapacity due to the employee’s pregnancy, prenatal medical condition, or child birth; or 5. Because of the employee’s own serious health condition that renders the employee unable to perform an essential function or functions of his or her position. In cases where married spouses are both employed by the Company, the two spouses together may take a combined total of twelve weeks of leave during any 12-month period for reasons (1) and (2), above, or to care for the same individual pursuant to reason (3), above. Any leave taken under the Victims’ Economic Security and Safety Act (“VESSA”) (described below) will count against an employee’s Basic FMLA leave entitlement if the reason for the VESSA leave is also covered by the FMLA. The 12-week entitlement for Basic FMLA Leave is based on a “rolling” 12-month period. As used in this policy, a “rolling 12-month period” means the 12-month period immediately preceding (a) the date that an employee begins FMLA leave, or (b) the date that an employee uses VESSA leave if the reason for the VESSA leave is also covered by the FMLA. 2.1.c Packet Pg. 115 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 31 Military Family Leave There are two types of Military Family Leave available: 1. Qualifying exigency leave. Employees meeting the FMLA leave eligibility requirements, described above, may be entitled to use up to twelve weeks of their Basic FMLA Leave entitlement to address certain “qualifying exigencies.” Leave may be used if the employee’s spouse, child, or parent is on active duty or called to active duty status in the Armed Forces (including the National Guard or Reserves) and is deployed to a foreign country. Qualifying exigencies may include: • Short-notice deployment (up to seven days of leave) • Arranging for alternative childcare • Addressing certain financial and legal arrangements • Periods of rest and recuperation for the servicemember (up to five days of leave) • Attending certain counseling sessions • Attending post-deployment activities (available for up to 90 days after the termination of the covered servicemember’s active duty status) • Other activities arising out of the servicemember’s active duty or call to active duty and agreed upon by the Company and the employee 2. Leave to care for a covered servicemember. There is also a special leave entitlement for any employee who (a) meets the eligibility requirements for FMLA leave and (b) is the spouse, child, or next of kin of a “covered servicemember,” that permits such employee to take up to 26 weeks of leave to care for a covered servicemember during a single 12-month period. A covered servicemember is either (i) a current member of the Armed Forces (including the National Guard or Reserves), who incurred or aggravated a serious injury or illness in the line of duty while on active duty that may cause the servicemember to be medically unfit to perform the duties of his or her office, grade, rank, or rating, for which the servicemember is undergoing medical treatment, recuperation, or therapy, or (ii) a veteran who is undergoing medical treatment, recuperation, or therapy for a serious injury or illness incurred or aggravated in the line of duty while on active duty and who was a member of the Armed Forces (including the National Guard or Reserves) at any time during the five years preceding the date of such medical treatment, recuperation, or therapy. For leave to care for a covered servicemember, the 26-week entitlement is measured forward beginning from the day that an employee’s first FMLA leave to care for a covered servicemember begins. Leave already taken for other circumstances covered by the FMLA will be deducted from the total of 26 weeks available. When married spouses both work for the Company, the aggregate amount of leave that can be taken to care for a covered servicemember is 26 weeks in a single 12-month period. Intermittent and Reduced-Schedule Leave Leave because of a serious health condition, or either type of servicemember leave, may be taken intermittently (in separate blocks of time due to a single health condition) or on a reduced schedule leave (reducing the usual number of hours worked per workweek or workday) if medically necessary and supported with documentation from a health care provider. Military Family Leave due to qualifying exigencies may also be taken on an intermittent basis, subject to an employee’s submission of required certification. Employees must make reasonable efforts to schedule leave for planned medical treatment so as not to unduly disrupt the Company’s operations. Requests for intermittent or reduced -schedule leave for planned medical treatment must be accompanied by medical certification indicating the dates on which such treatment is expected to be given and the duration of such treatment. If leave is unpaid, the employee’s base compensation will be reduced based on the amount of time actually worked. In addition, while an employee is on an intermittent or reduced-schedule leave, we may temporarily 2.1.c Packet Pg. 116 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 32 transfer the employee to an available alternative position that better accommodates recurring periods of absence or a reduced schedule and which has equivalent pay and benefits. Leave may not be taken on an intermittent or reduced-schedule basis to care for an employee’s own child during the first year following birth, or to care for a child placed with the employee for foster care or ado ption, unless the Company, in its sole discretion, agrees in advance. Leave is unpaid. Leave pursuant to this policy is unpaid leave. However: • If leave is taken in respect of the birth or adoption of a child, the employee may be eligible for paid leave pursuant to our Paid Parental Leave policy. • If leave is taken because of an employee’s own serious health condition or the serious health condition of the employee’s spouse, child, or parent, the employee may apply any then accrued but unused paid sick leave toward the leave. • If leave is taken because of an employee’s own serious health condition, the employee may be eligible for workers’ compensation benefits (if the condition is work-related) or salary continuation under applicable disability insurance policies. Benefit entitlements based upon length of service will be calculated as of the last paid work day prior to the start of the leave of absence. Medical and other benefits During an approved FMLA leave, the Company will maintain an employee’s coverage under insurance plans as if the employee continued to be actively employed, on the same policy terms as if the employee had continued to work, subject to the following: • If leave is unpaid by the Company, the employee and the Company will agree on a method for payment of the employee’s share of premiums incurred during leave. • If leave is paid by the Company (e.g., the employee receives payments pursuant to our Paid Parental Leave policy), we will treat that portion of the leave as if the employee was on regular payroll and will continue to deduct the employee’s portion of the monthly premiums otherwise required as a regular payroll deduction. Use of FMLA leave will not result in the loss of any employment benefit that accrued prior to the start of an employee’s leave. Coordination with other policies The following explains the coordination between FMLA leave and other benefits to which an employee may be entitled while on leave: • If the reason for your FMLA leave qualifies you for workers’ compensation leave, disability leave, or any other leave of absence in addition to FMLA leave, such leaves of absence will run concurrently with your FMLA leave. • If the reason for your FMLA leave allows you to use paid Paid Sick Leave, the Paid Sick Leave will run concurrently with your FMLA leave. • If you qualify for workers’ compensation or disability benefits, you must collect these benefits while on FMLA leave. Return to job at end of FMLA leave Upon return from FMLA leave, most employees will be restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms. If your FMLA leave is for your own serious health condition, you may be required to present a Fitness for Duty Certification from your health care provider that releases you to return to work and attests that you can perform the essential functions of your job with or without a reasonable accommodation. We will provide you with the Fitness for Duty Certification for your health care provider to complete. If you have any questions regarding the Fitness for Duty Certification, please contact Human Resources. 2.1.c Packet Pg. 117 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 33 Employee Responsibilities When Requesting FMLA Leave If the need to use FMLA leave is foreseeable, you must provide notice to Human Resources at least 30 days’ prior notice of the need to take leave. When 30 days’ notice is not feasible, you must provide such notice as soon as practical (within 1-2 business days of learning of the need for leave except in extraordinary circumstances). Failure to provide such notice may be grounds for delaying approval for and the start of your FM LA leave. JDRC uses Guardian to facility our FMLA leave. Whenever possible, requests for FMLA leave should include the anticipated date of commencement of the leave, the duration of the leave, the reason for leave and, if known, the anticipated return dat e. Also, when submitting a request for leave, you must provide information sufficient to allow us to determine if the leave may qualify as FMLA leave. Examples of this include that you are unable to perform job functions; that a family member is unable to perform daily activities; that you or your family member needs hospitalization or continuing treatment by a healthcare provider; or the circumstances supporting the need for military family leave. You also must indicate if the requested leave is for a reason for which FMLA leave was previously taken or certified. Medical Certification If you are requesting leave because of your own or a covered relation’s serious health condition, you and the applicable healthcare provider must complete appropriate medical certification on a form to be provided to you by Human Resources. If we require Medical Certification, you must return it to Human Resources within 15 days after you request leave. If you provide at least 30 days’ notice of medical leave, you should also provide the medical certification before your leave begins. Failure to provide requested medical certification in a timely manner may result in the delay of FMLA leave until it is provided. In addition, we may, at no expense to the employee, require an examination by a second independent healthcare provider we designate if we reasonably doubt the medical certification initially provided. If the second healthcare provider’s opinion conflicts with the original medical certification, we may, at no expense to the employee, require a third mutually agreeable independent healthcare provider to conduct an examination and provide a final and binding opinion. We may also require subsequent medical recertification after initial approval of FMLA leave due to a serious health condition. Failure to provide requested certification within 15 days, except in extraordinary circumstances, may result in the delay of further leave until such certification is provided. Reporting While on Leave If you take leave because of your own serious health condition or to care for a covered relation, we may require you to contact Human Resources regarding the status of your condition, your intention to return to work, and your anticipated return date. In addition, you must provide notice to Human Resources if the dates of your leave change, are extended, or were unknown initially. If Discrepancy between the FMLA, State or Local Law and This Policy The purpose of this FMLA policy is to provide guidance to employees. Not every aspect of the FMLA or its regulations can be summarized in this policy. If there are any FMLA provisions or changes to the FMLA and its regulations not reflected in this policy, the Company will follow the FMLA and its regulations where applicable. Likewise, if applicable state or local law provides more expanded leave protection than the FMLA, the Company will follow that law. 2.1.c Packet Pg. 118 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 34 JURY DUTY Subject to the terms and conditions of this policy, each employee who receives a summons for jury duty will be granted time off in order to serve. Full-time employees who serve on jury duty will be paid for up to five consecutive regularly scheduled work days. Non-exempt employees will be paid at their regular rate of pay for the number of hours they would have been scheduled to work if they were not serving jury duty, up to a maximum of eight hours per day. Any additional days off will be unpaid, unless otherwise required by applicable law. For temporary and part-time employees, jury duty is unpaid (unless otherwise required by applicable law). In order for your absence to be considered excused (and to receive any jury duty pay to which you are entitled under this policy), you must notify your manager, along with Human Resources, and enter your request in ADP Workforce Now at least two weeks prior to the first date on which you are to serve (or upon receipt of the legal notice if you are summoned on less than two weeks’ notice). If you are excused from jury duty during regular business hours, you are required to return to work for the business hours remaining on that day, unless you otherwise obtain approval from your manager. Please note that jury duty pay is available only for lost working time. If you serve on jury duty on a day when you are not scheduled to work, you will not receive jury duty pay. For example, if you serve on a jury during an unpaid leave of absence, you will not receive jury duty pay. The Company will not discharge, discipline, or otherwise penalize an employee who complies with a jury summons. WITNESS LEAVE Subject to the terms and conditions of this policy, each employee who is subpoenaed or otherwise required by legal notice to serve as a witness in a criminal or civil proceeding will be granted time off in order to serve. Unless otherwise required by applicable law, the time off will be unpaid. In order for your absence to be considered excused, you must email Human Resources and enter the request in ADP Workforce Now at least two weeks prior to the first date on which you are to serve (or upon receipt of the legal notice if you receive it on less than two weeks’ notice). If you are excused from your obligations as a witness during regular business hours, you are required to return to work for the business hours remaining on that day, unless you otherwise obtain approval from Human Resources. The Company will not discharge, discipline, or otherwise penalize an employee who complies with a valid subpoena or other similar legal notice. BEREAVEMENT LEAVE Employees are entitled to take off up to three consecutive regularly scheduled workdays in the event of the death of an employee’s immediate family member, and one scheduled workday in the event of the death of someone who is not an immediate family member. Additional time off may be granted in the discretion of the Human Resources or CFO if warranted in the circumstances (for example, an out-of-town funeral of an immediate family member) or if required by applicable law. For purposes of this policy, “immediate family member” means an employee’s parent, child, sibling, spouse, domestic partner, civil union partner, mother-in-law, father-in-law, grandparent, or grandchild. Employees who take leave authorized under this policy will be paid for up to three consecutive regularly scheduled work days. However, bereavement leave pay is available only for lost working time. For example, if you attend a funeral during an unpaid leave of absence or on a day you are not scheduled to work, you will not receive bereavement leave pay. For temporary employees, bereavement leave is unpaid (unl ess otherwise required by applicable law). Requests for bereavement leave should be made as soon as the employee becomes aware of the need for the leave. Email your manager to request leave, and enter the request in ADP Workforce Now. Please also include information regarding where donations can be made (if available). 2.1.c Packet Pg. 119 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 35 CHILD BEREAVEMENT LEAVE Each eligible Illinois employee is entitled to unpaid leave in the event of the death of the employee’s child so that the employee can attend the child’s funeral, or alternative to a funeral, make arrangements necessitated by the child’s death, or grieve. For purposes of this policy, “child” means an employee’s biological child, adopted child, foster child, stepchild, legal ward, or child as to whom the employee stands in loco parentis. An employee is eligible to take leave under this policy if he/she meets the eligibility requirements under the Company’s FMLA policy. Specifically, an employee must: (1) Have worked for the Company for at least twelve months in the seven-year period immediately preceding the request for leave; and (2) Have worked at least 1,250 hours for the Company during the twelve calendar months immediately preceding the request for leave; and (3) Be employed at a work site that has 50 or more employees within a 75-mile radius. Each eligible employee is entitled to two weeks (10 days) of unpaid leave in a 12-month period in the event of the death of the employee’s child. This entitlement increases to six weeks of unpaid leave in that 12-month period in the event of the death of more than one child of the employee in that 12-month period. However, no employee is entitled to take more leave under this policy than the amount of leave to which the employee would be entitled under the FMLA. In other words, once an employee exhausts his/her 12 weeks of FMLA leave, no leave under this policy is available unless pre-approved by Human Resources. Also, any leave taken under this policy must be completed within 60 days after the employee receives notice of the child’s death. When taking leave under this policy, an employee may, at his/her election, apply available unused leave, such as paid leave under the Company’s bereavement policy or accrued but unused PTO, toward the period of leave. In the event that you require leave under this policy, provide notice to your manager and Human Resources and enter the request in ADP Workforce Now, unless providing such notice is not reasonable or possible. Please also provide the name of your child and any arrangements that have been made. If you have any questions regarding this policy, your eligibility for leave, or the amount of leave available to you, please contact Human Resources. VOTING TIME The Company encourages all employees to exercise their right to vote in federal, state, and local elections and primaries. Voting polls are generally open during hours that allow you time to vote without interfering with your normal work hours. However, if your working hours begin less than two hours after the opening of the polls and end less than two hours before the closing of the polls, you will be granted up to two paid hours off in order to vote (unless otherwise required by applicable law). To request time off for voting, email your manager. Proof of voting may be required if time off is granted. MILITARY LEAVE Employees who are involved in reserve duty or who are participating in active duty for the U.S. military will be excused from work for the required periods of time. Leave is unpaid unless otherwise required by applicable law. To request military leave, email your manager and Human Resources as soon as you become aware of the need for leave. Employees who are re-employed following service will be reinstated with seniority and benefits they had accrued at the time they left for service, in addition to seniority and benefits they would have attained had they remained continuously employed. The Company does not discriminate or retaliate against employees because of their request for military leave or performance of or obligation to perform military service. The Company does not discriminate or retaliate against employees because of their request for military leave or performance of or obligation to perform military service. 2.1.c Packet Pg. 120 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 36 FAMILY MILITARY LEAVE Illinois employees who have worked for the Company for at least 12 months, and have worked at least 1,250 hours during the immediately preceding 12-month period are eligible for family military leave. This leave is available to any spouse or parent of a person called to military service for more than 30 days. Employees who qualify for this leave are eligible for up 30 days of leave during the time the federal or state deployment orders are in effect. Leave is unpaid unless otherwise required by applicable law. To be excused for family military leave, email your manager and Human Resources at least 14 days in advance of the proposed leave, if the leave will consist of five or more consecutive workdays. If fewer than five consecutive workdays are needed, the request must be made as soon as possible. Insurance benefits will continue during family military leave on the same terms and conditions as those applicable to employees not on leave. Employees who return to work from family military leave are generally entitled to return to their job or an equivalent position without loss of benefits or pay. However, employees are not entitled to reinstatement rights greater than those they would have if they did not take leave. If the state laws of non-Illinois employees provide a similar type of leave, the Company will comply with such laws. PARENTAL LEAVE Cresco recognizes the importance of family. Therefore, we have adopted our Primary and Secondary caregiver policies to help employees focus on what is important and not worry about the financial burden of being away from work. Eligibility for Leave All full-time employees who have completed at least one year of continuous service immediately preceding the commencement of leave (“Eligible Employees”) are eligible for leave in accordance with the terms of this policy for any of the following reasons: • Maternity or paternity leave, i.e. to care for the employee’s child during the first twelve months following birth; or • Adoption/foster care leave, i.e. to care for a child during the first twelve months following placement with the employee for adoption or foster care. Part-Time and Temporary employees are not eligible for leave under this policy. Cresco recognizes the importance of family. Therefore, we have adopted our Primary and Secondary caregiver policies to help employees focus on what is important and not worry about the financial burden of being away from work. Amount of Leave Subject to the terms and conditions of this policy, the Company will grant parental leave for Eligible Employees. The amount of leave depends on whether the Eligible Employee certifies that he/she is the primary caregiver of the child. Leave eligibility is as follows, based on length of service: Length of Service Completed as of the First Day of Leave Amount of Leave for Primary Caregiver for Parental Leave Amount of Leave for Non-Primary Caregiver for Parental Leave Less than 12 consecutive months None None At least 12 consecutive months 6 Weeks 1 Week* 24 consecutive months 8 weeks 1 week 36 consecutive months 10 weeks 1 week 48 consecutive months 12 weeks 1 week *For clarity, an Eligible Employee seeking leave who does not certify that he/she is the primary caregiver is entitled to up to one week of parental leave (which may be used at any time during the first 12 weeks following the birth or adoption of the employee’s child). 2.1.c Packet Pg. 121 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 37 Please note employees must apply for short-term disability (STD) through Guardian to be eligible for this benefit. JDRC will cover the portion that short term disability does not cover for the employee. Please contact Human Resources to begin the process of applying for STD.Please note that the leave provided under this policy is the maximum leave that an Eligible Employee will be granted in a rolling 12-month period. As used in this policy, a “rolling 12-month period” means the 12-month period immediately preceding the day the employee’s leave under this policy begins. The purpose of this policy is to provide guidance to employees. The Company will follow all applicable federal, state, and local laws and regulations. DOMESTIC OR SEXUAL VIOLENCE LEAVE The Illinois Victims’ Economic Security and Safety Act (“VESSA”) provides Illinois employees who are the victims of domestic or sexual violence, or who have family or household members who are the victims of domestic or sexual violence, with up to twelve weeks of unpaid leave within a 12-month period. Eligibility for Leave Eligible employees may take VESSA leave so that they or a member of their family or household may: • Seek medical attention for, or to recover from, physical or psychological injuries caused by domestic or sexual violence; • Obtain services from a victim services organization; • Obtain psychological or other counseling; • Participate in safety planning, temporarily or permanently relocating, or taking other actions to increase their physical safety or ensure economic security; or • Seek legal assistance or remedies to ensure their h ealth and safety, including preparing for or participating in any civil or criminal legal proceeding related to or derived from domestic or sexual violence. The 12-week entitlement for leave under this policy is based on a “rolling” 12-month period. As used in this policy, a “rolling 12-month period” means the 12-month period immediately preceding the date that an employee begins VESSA leave. Employees may take VESSA leave intermittently (in separate blocks of time) or on a reduced leave schedule (shorter hours per day or week). 2.1.c Packet Pg. 122 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 38 Notice If you require leave under this policy you must email Human Resources at least 48 hours prior to the effective leave date, if possible. Otherwise, employees must provide such notice as soon as practical. Certification We may require you to provide a sworn statement that you or your family or household member (as applicable) is a victim of domestic or sexual violence and that the leave is for one of the purposes set forth above. In addition, we may require you to provide the following supplemental information upon obtaining it: documentation from a victim’s services organization, member of the clergy, or medical professional from whom you or your family or household member (as applicable) have sought assistance; police report or court record; and/or other corroborating information. You may be required to provide periodic reports regarding your status or the status of your family or household member (as applicable), and any change in your plans to return to work. Reinstatement and Benefits Subject to certain exceptions provided by law, employees who are covered by VESSA are guaranteed reinstatement to either the same position or to one with equivalent responsibilities, pay, benefits and other terms and conditions of employment. If the state laws of non-Illinois employees provide a similar type of leave, the Company will comply with such laws. SCHOOL VISITATION Illinois employees who have completed at least six consecutive months of service and who, on average, work at least 15 hours each week are allowed up to eight hours off each school year to attend school conferences or classroom activities for their children if these events cannot be rescheduled during non-work hours. Leave is unpaid for hourly employees and temporary employees (unless otherwise required by applicable law). Employees who wish to take time off under this policy must email their manager and enter the request in ADP Workforce Now at least seven days in advance and corporate in scheduling the time off to minimize disruption to the Company’s operations. However, in an emergency situation, 24 hours’ notice is sufficient. The Company may require verification by the school administrator of the requesting employee’s exercise of school visitation rights. WORKER’S COMPENSATION Work-related injuries and illnesses may be covered by the Company’s workers’ compensation insurance policy. If you are injured on the job, no matter how slightly, report the incident immediately to Human Resources. You will be taken to a nearby urgent care center or hospital if you can’t be treated adequately on the Company’s premises. Please be aware that failure to promptly report a work-related injury or illness may jeopardize your claim. Please alert Human Resources to any condition which could lead or contribute to an employee accident. We will abide by all requirements set forth in applicable workers’ compensation laws. We will not take any adverse action against an employee in retaliation for filing a workers’ compensation claim. Your eligibility for workers’ compensation benefits, the amount of benefits payable to you, and the duration of such benefits depend upon the nature of your injury or illness and is determined in the sole discretion of our workers’ compensation insurance carrier and in accordance with applicable law. The Company will make every effort to notify employees when an official change in policy or procedure has been made. 2.1.c Packet Pg. 123 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) JDRC MANAGED SERVICES, LLC | CRESCO LABS | EMPLOYEE HANDBOOK 04012018 BENEFITS AND LEAVE 39 RECEIPT AND ACKNOWLEDGMENT I acknowledge receiving a copy of the MONTH DAY, 201_ edition of the Employee Handbook (the “Handbook”) for JDRC Managed Services, LLC (the “Company”). I understand it is my responsibility to review the Handbook and be familiar with all policies, and if there is any policy or provision in the Handbook that I do not understand, I should seek clarification from Human Resources. I understand that the Handbook replaces and supersedes all previous employee manuals and other similar documents that I may have received from the Company regarding its subject matters (except for any written contract signed by me and the Company’s CEO or CFO in respect of my employment with the Company). I also understand that the Handbook is distr ibuted as a guide and summary of the Company’s current policies, procedures, and guidelines, any of which may be changed or revoked by the Company at any time, with or without advance notice to employees; provided, however, that (a) the At-Will Employment policy may be revised only by a written contract or agreement signed by the Company’s CEO or CFO, and (b) the Dispute Resolution policy may be revised only by a written contract or agreement signed by me and the Company’s CEO or CFO. I understand that the Handbook is not a contract. I also understand that I am employed at will, meaning that either the Company or I may terminate our employment relationship for any reason, at any time, with or without cause or advance notice. I also understand that the fact that I am employed at will cannot be changed by any representative of the Company except its CEO or CFO, who may do so only in a written contract signed by the CEO or CFO. I acknowledge and understand all of the above. I also acknowledge and understand the Company’s Dispute Resolution policy, located in this Handbook, and I will comply with it. Employee’s Signature Date Employee’s Printed Name 2.1.c Packet Pg. 124 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 12. Same-Site Application to State of Illinois 2.1.c Packet Pg. 125 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 126 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) IMP ORTAN T NOTICE: ILLINOIS DEPAR TMEN T OF FINANCIAL AND PROFESSIONAL REGULATION SUPPORTING DOCUMENT Completion of this form is · necessary for consideration for licensure in connection MEDICAL CANNABIS MC-LOC( ';tMith the Medic al Cann abis ;Pilot Pro gram Act, 410 ILCS 130 and 68 IAC 1290. REQUEST TO CHANGE PROPOSED DISPENSARY LOCATION 1.BUSINESS NAME POI Medical 12. REGISTRY IDENTIFICATION NUMBER 13.MEDICAL CANNABIS DISTRICT NUMBER27-002 27 4. CURRENT PHYSICAL ADDRESS OF PROPOSED DISPENSARY 5. CITY 6.COUNTY 7. ZIP CODE1623 Barclay Boulevard Buffalo Grove Lake 60089 8. NEW PHYSICAL ADDRESS OF PROPOSED DISPENSARY 9.CITY 10 . COUNTY 11.ZIP CODE 830-840 N. Milwaukee Avenue Buffalo Grove Lake 60089 12.Is the property line of the proposed dispensary a minimum of 1,000 feet from the line of a pre-existing public or private preschool or ele­ mentary or secondary school or a day care center, day care home, group day care or part day child care facility identified in Section 130 of the Act? Ix] YES O NO ATTACH THE FOLLOWING: 1.Provide a cover letter stating the reason for the change of location of the dispensary, including a description of how the plans for the proposed dispensary deviate from those provided in your original application and a description of how the pro­ posed location is the equal to, improved, or better suited than the dispensary location in your original application. 2.DFPR Property Ownership Form. 3.DFPR Zoning Form with signature from the local zoning office providing confirmation that the proposed dispensary location is in compliance with local zoning provisions and those identified in Section 130 of the Act. "SUITABILIT Y FOR PUBLIC ACCESS: 1.Provide a narrative explaining why the proposed location is suitable for public access, the size and layout promote safe dispensing of medical cannabis, product handling, and storage. Include detailed plans for handicapped accessible parking and ADA accessibility. 2. Provide a narrative statement describing specific elements in your plan that will favor the immediate community and why your operations will negate any detrimental impact. 3.Provide a narrative describing changes, if any, to the Suitability for Public Access Section provided in your original applica­ tion. PLOT PLANS and PHOTOGRA PHS: Plot map and drawings must be adequate in size to illustrate your plans. For this section, applicants must: 1.Provide a location area map of the area surrounding the proposed dispensary, extending a minimum of 1,000 feet from the proposed dispensary property line in all directions. Clearly identify the existing adjacent businesses or residences. 2. Demonstrate that the property line of the proposed dispensary is not located within 1,000 feet of the property line of a pre-existing public or private preschool or elementary or secondary school or day care center, day care home, group day care home or part day child care facility identified in Section 130 of the Act. 3.Provide a drawing depicting the property that extends at least to the property line perimeter, defining exterior landscape and interior layout, including storage and delivery areas. 4.Provide color photographs of the proposed dispensary and immediately adjacent area. j) I IL486-2225 2/15 CONF!Df Nr!Al Page 1 of 2 2.1.c Packet Pg. 127 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 128 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 129 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 130 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 131 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 132 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 133 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET - CONFIDENTIAL 1 1. Provide a narrative explaining why the proposed location is suitable for public access, the size and layout promote safe dispensing of medical cannabis, product handling, and storage. Include detailed plans for handicapped accessible parking and ADA accessibility. Suitability for Public Access PDI Medical III, LLC (“the Applicant”) is proposing to relocate its business to 830-840 N. Milwaukee Ave. (the “Proposed Location”) and ensures that it is suitable for public access. The Proposed Location’s proximity to a host of healthcare entities that service the same patient population as the dispensary, such as Northwest Community Medical Group, Presence Health Care, and several doctors’ offices, indicates many patients are already traveling to the area to receive medical care. These patients will be able to enjoy the convenience of visiting the Proposed Location to purchase medical cannabis while in the area visiting other healthcare entities. Safe Dispensing of Medical Cannabis The Proposed Location’s size and layout promote safe dispensing of medical cannabis, and is a one-story facility with a 2,142 sq. ft. main floor for dispensing operations. The Proposed Location will feature a 376 sq. ft. waiting room, a 2,142 sq. ft. sales area, 105 sq. ft. of office space, and 56 sq. ft. American Disabilities Act (“ADA”)-compliant restrooms. This amount of space allows more efficient transactions for a high number of patients and will allow staff to more easily monitor patients and caregivers within the limited access area – creating a comfortable and safe shopping experience for all patients. The Proposed Location will include 24/7 video surveillance through the whole premises, the exterior will be well-lit, and security personnel will remain on premises to monitor foot traffic in- and-out of the building. Patients and the public will only have access to the building’s main entrance to ensure that all cannabis leaves the building through one area – allowing security personnel to pinpoint surveillance and safety procedures in those areas. Additionally, with the change to the amount of space at the Proposed Location in mind, the Applicant has created a comprehensive safety and security plan included in this application to ensure the care and well- being of every patient. Product Handling and Storage The size and the layout of the Proposed Location promotes safe product handling and storage while enhancing compliance, safety, and patient satisfaction. The Applicant will install physical barriers that will prevent public access to areas containing medical cannabis, restricting access to medical cannabis storage areas. Only staff responsible for controlling inventory will have access to safes and vaults. Additionally, no cannabis will be visible to the public from the entry vestibule and/or waiting areas. Only patients, authorized staff, and authorized visitors (e.g., law enforcement and the Illinois Department of Financial and Professional Regulation’s [“the Department”] representatives) will have access to the sales area – which will be a separate room with additional security provisions. 2.1.c Packet Pg. 134 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET - CONFIDENTIAL 2 ADA Accessibility To enhance patient accessibility, the Applicant will maintain ADA compliance. The Applicant will achieve this by integrating a multitude of features that will not only benefit patients with physical limitations, but also staff, as they too will benefit from thoughtful building design and accessibility. For example, entrance and exit door hardware will include ADA-compliant automatic door openers. The building does not require an ADA ramp as there are no grade changes from the sidewalk to the interior floor. The exterior of the Proposed Location is a city sidewalk and no landscaping or other changes will be made. Moreover, the Proposed Location is suitable for public access because it is easily accessible to patients by way of ADA accessible public transportation methods including bus, vehicle, or rideshare. The Proposed Location is close to two Pace bus stops, on Milwaukee Ave. and Deerfield Parkway. The Proposed location will have ample open parking spaces and meet ADA accessibility requirements for parking during business hours. 2.1.c Packet Pg. 135 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) ) TRADE SECRET -CONFIDENTIAL 2. Provide a narrative statement describing specific elements in your plan that will favor the immediate community and why your operations will negate any detrimental impact. Security -Loitering, Graffiti, and Surveillance As a healthcare resource to residents, PDI Medical III, LLC ("the Applicant") will ensure that its operations favor the immediate community through its professionalism and attentiveness to community concerns. Security personnel onsite will dissuade people from loitering outside the building, and the grounds will remain clean and free of trash. Security personnel will continually monitor the exterior of the building and pathways leading to 830-840 N. Milwaukee Ave. (the "Proposed Location") for threats. This constant threat assessment helps guarantee patients' and staff's safety while on premises. The Applicant will also employ stringent groundskeeping procedures in pursuit of keeping an attractive business and being a responsible neighbor. Because the Proposed Location is in a central business district in a heavily populated area, security personnel will be on alert for graffiti, with a plan to remain vigilant with a quick detection and immediate response plan for the Applicant's building. Additionally, security personnel intend to hold a good rapport with neighbors and will repo1t any discovery of new graffiti on neighboring buildings if necessary. Exterior video surveillance will add security to both the Applicant's building and the surrounding community. Because the Applicant intends to operate in a busy area, the Applicant expects high volumes of traffic outside and around the exterior of the building and is prepared to take extra security measures. Security personnel will carefully monitor surveillance footage of exterior sidewalks and adjacent roads. By installing cameras pointing towards the street and sidewalks, the Applicant can serve as a remote surveillance-depot for the Village and State -if a crime were to occur in the Proposed Location's proximity, cameras could provide critical evidence to law enforcement in prosecuting perpetrators. Finally, the Applicant is also prepared to address business transparency to help abate community concern. The Applicant will uphold its ongoing duty to provide Buffalo Grove and the Illinois Department of Financial and Professional Regulation ("the Department") with up-to-date contac{ information and will repo1t all business modifications to the Department within 10 calendar days , as required by Section 1290.130 of the Depaitment's Rules. Those notifications include: • Any proposed remodeling, expansion, reduction or other physical, non-cosmetic alteration of the dispensary; and • Any change to the principal place of business address. Philanthropy The Applicant will also give back to the community by continuing its legacy of philanthropic initiatives, volunteer campaigns, and other community sponsorship programs in and around Buffalo Grove. The Applicant has participated in the Lake County Canna Expo, has a partnership with Sedgebrook Retirement Community, and has paiticipated in the Walk to End Alzheimers. (ONf!Df Nf/M 1 2.1.c Packet Pg. 136 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) TRADE SECRET -CONFIDENTIAL ) Advertising and Marketing The Applicant will comply with all Buffalo Grove ordinances and Illinois laws regulating advertising. The Applicant will comply with the following provisions, as set forth by Section 1290.455 of the Illinois Administrative Code: 1. Will not adve11ise within 1,000 feet of the perimeter of a school grounds, playground, recreation center or facility, childcare center, public park or libra1y, or any game arcade admission to which is not restricted to persons age 21 years or older; 2 . Will not adve11ise on or in a public transit vehicle or public transit shelter; or 3. On or in a publicly-owned-or-operated prope11y. Odor Mitigation and Consumption on Property The Applicant will provide a sufficient odor absorbing ventilation and exhaust system so that any cannabis odor generated inside the business is not detected outside of the location, anywhere on adjacent property or public rights-of-way. The Applicant will take measures to ensure that cannabis is never consumed at the Proposed Location and will enforce strict anti-loitering policies. The Applicant will expressly prohibit consuming cannabis on site as required by Section 1290.300 (m)(2) of the Illinois Depai1ment of Financial and Professional Regulation's ("the Depai1ment") Rules and will never sell cannabis to any individual that does not present clear, legible identification and registry documentation as required by 12900.300 (m)(4) of the Department's Rules. Additionally, security personnel will record suspicious behavior, log identities of suspicious individuals, and ban individuals, from accessing the building in the future (e.g., following suspicious activity, attempted theft, altercations, etc.) if applicable or necessary. By fostering a working relationship with Buffalo Grove police, residents, and local businesses, the Applicant intends to be a true pai1icipant in the community. CONf!DE NrlM 2 2.1.c Packet Pg. 137 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 138 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 139 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 140 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 141 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 142 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 143 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 144 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 145 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 146 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 147 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 148 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 149 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 150 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 151 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 152 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 153 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 154 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 155 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 156 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 157 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 158 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 159 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 160 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 161 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 162 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 163 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 164 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 165 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 166 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 2.1.c Packet Pg. 167 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 168 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 169 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 170 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 171 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 172 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 173 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.c Packet Pg. 174 At t a c h m e n t : P l a n S e t ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.d Packet Pg. 175 At t a c h m e n t : O r d i n a n c e 2 0 1 9 - 5 4 ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.d Packet Pg. 176 At t a c h m e n t : O r d i n a n c e 2 0 1 9 - 5 4 ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.d Packet Pg. 177 At t a c h m e n t : O r d i n a n c e 2 0 1 9 - 5 4 ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.d Packet Pg. 178 At t a c h m e n t : O r d i n a n c e 2 0 1 9 - 5 4 ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.d Packet Pg. 179 At t a c h m e n t : O r d i n a n c e 2 0 1 9 - 5 4 ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.d Packet Pg. 180 At t a c h m e n t : O r d i n a n c e 2 0 1 9 - 5 4 ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.e Packet Pg. 181 At t a c h m e n t : O b j e c t o r E m a i l s ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.e Packet Pg. 182 At t a c h m e n t : O b j e c t o r E m a i l s ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 2.1.e Packet Pg. 183 At t a c h m e n t : O b j e c t o r E m a i l s ( C o n s i d e r a S p e c i a l U s e f o r a n A d u l t U s e a n d M e d i c a l C a n n a b i s D i s p e n s a r y a t 8 3 0 - 8 4 0 M i l w a u k e e A v e n u e ) 12/4/2019 MINUTES OF THE REGULAR MEETING OF THE PLANNING AND ZONING COMMISSION OF THE VILLAGE OF BUFFALO GROVE HELD IN THE COUNCIL CHAMBERS, 50 RAUPP BOULEVARD, BUFFALO GROVE, ILLINOIS ON WEDNESDAY, DECEMBER 4, 2019 Call to Order The meeting was called to order at 7:30 PM by Chairman Frank Cesario Public Hearings/Items For Consideration 1. Petition to the Village of Buffalo Grove for a Special Use for a Recreational Use (Golf Simulator Facility) in the Industrial District for the Property at 1380 Busch Parkway (Trustee Weidenfeld) (Staff Contact: Nicole Woods) Mr. Cho, Mr. Jung and Mr. Lamphere were sworn in. Mr. Cho described their request for a special use to operate a golf simulator facility at 1380 Busch Parkway. Com. Goldspiel asked the petitioners to explain the parking. Mr. Lamphere responded that there are 120 parking spaces and 6 ADA parking spaces and do not anticipate any parking issues. Com. Goldspiel asked the petitioners about the night lighting in the area of 1380 Busch Parkway. Mr. Lamphere responded that the lighting was adequate for patron safety. Com. Goldspiel asked the petitioners where additional parking would be in the event they came across inadequate parking. Mr. Lamphere responded that the current landscape would allow for additional parking should they come into a situation in which they no longer had adequate parking. Deputy Community Development Director Woods commented that there is ample parking in this area, and explained why staff included additional parking as a condition to the special use. Com. Goldspiel asked the petitioners if there would be any outside use. Mr. Lamphere responded no, there will not be any outside use. Chairperson Cesario asked the petitioners to describe the use of the facility in terms of number of players and the hours in which they would be busy. Mr. Lamphere responded that they would be most busy during week nights and weekends and would have a minimum of 2 to 4 at each of the simulators. Com. Moodhe asked if the facility could hold a corporate event, and if it could, how many people could be in the corporate group. Mr. Cho responded that they could host a corporate event up to 20 people max on week nights. Com. Weinstein asked the petitioners to go over the special use criteria and provide more detail. 3.B.1 Packet Pg. 184 Mi n u t e s A c c e p t a n c e : M i n u t e s o f D e c 4 , 2 0 1 9 7 : 3 0 P M ( A p p r o v a l o f M i n u t e s ) 12/4/2019 Mr. Cho responded with detailed answers to the special use criteria. Com. Khan asked the petitioners to educate the commission on the golf simulator system and how it works. Mr. Cho explained how the golf simulator system works and the time it would take to complete 18 holes for a beginner. Com. Khan asked if training was available. Mr. Cho responded that there are 3 modes to accommodate the needs of the player including a training mode. Chairperson Cesario entered the staff report as exhibit one. The public hearing closed at 7:47 PM. Com. Weinstein made a motion to approve a special use for a recreational use (golf simulator facility) in the Industrial District, subject to the following conditions: 1. The special use is granted to Won Cho and Jibsoc Jung of WJ Sports Entertainment at 1380 Busch Parkway and said special use does not run with the land. 2. The special use granted may be assignable to subsequent petitioners seeking assignment of this special use as follows: i. Upon application of a petition seeking assignment of this special use, the Village of Buffalo Grove, in their sole discretion, may approve the assignment administratively, or may refer it to the Planning & Zoning Commission and/or the Village Board for a public hearing. ii. Such assignment shall be valid only upon the written approval of the Village of Buffalo Grove granting said assignment, which may be granted or denied for any reason. 3. The petitioner shall monitor traffic circulation and parking on the property and take appropriate measures, as approved by the Village, to ensure adequate parking is being provided. If the Village determines, in its sole discretion, that additional parking is required, the petitioner shall provide said parking in manner acceptable to the Village. Com. Khan seconded the motion. Com. Moodhe commented on the recreational use of the business and how it is consistent with the use of the rest of the building, and sees a need. Com. Goldspiel asked if the motion included Chairperson Cesario commented on the use and concurs with Com. Moodhe, that the use of the building is not new and believes that it will keep the area active. RESULT: APPROVED [UNANIMOUS] AYES: Moodhe, Cesario, Cohn, Goldspiel, Khan, Weinstein, Richards, Worlikar ABSENT: Amy Au Regular Meeting Other Matters for Discussion None. Approval of Minutes 3.B.1 Packet Pg. 185 Mi n u t e s A c c e p t a n c e : M i n u t e s o f D e c 4 , 2 0 1 9 7 : 3 0 P M ( A p p r o v a l o f M i n u t e s ) 12/4/2019 1. Planning and Zoning Commission - Regular Meeting - Nov 20, 2019 7:30 PM RESULT: ACCEPTED [7 TO 0] AYES: Moodhe, Cesario, Cohn, Khan, Weinstein, Richards, Worlikar ABSTAIN: Stephen Goldspiel ABSENT: Amy Au Chairman's Report None. Committee and Liaison Reports Com. Weintein talked about the items that were approved at the Village Boarding Meeting, previously brought to the Planning and Zoning Commission. Staff Report/Future Agenda Schedule Deputy Community Development Director, Woods, spoke about the future agenda item for the December 18th PZC meeting. Public Comments and Questions Adjournment The meeting was adjourned at 7:51 PM Chris Stilling APPROVED BY ME THIS 4th DAY OF December , 2019 3.B.1 Packet Pg. 186 Mi n u t e s A c c e p t a n c e : M i n u t e s o f D e c 4 , 2 0 1 9 7 : 3 0 P M ( A p p r o v a l o f M i n u t e s )