Importance of Trusted Counsel in Project Development

Obtaining approval for land use permits and State licenses is a crucial element advancing any cannabis business project toward operation, but when it comes to hiring and interfacing with designers, engineers, architects, and building tradesmen, it is critical to have trusted and experienced counsel.

Contract review, execution, and coordinating the development of your project by multiple parties is extremely challenging, and missteps can cost you precious time and money. We serve to protect your investment by holding your vendors and contractors accountable, and managing project development to ensure your project stays on track.

Land Use Application Components

There are various components of a land use application that typically require engagement with outside vendors whose evaluation, assessment, and expertise based on their professional certifications are crucial to gaining approval.

California Environmental Quality Act (CEQA)

The primary consideration in the determination of whether to approve or deny a new project is its potential impacts on the environment in which it is proposed, along with factors built in to mitigate potential impacts. In order for a project to be approved in California, the project must meet the guidelines and parameters set forth in the California Environmental Quality Act (CEQA).

Initial Study

To identify potential impacts to a project, as well as the full scope of potential review, typically, projects that are not exempt from CEQA will be required to conduct an initial study.

An Initial Study is a preliminary analysis of a project intended to:

• Serve as an informational document to be used by the public and by decision-makers when making choices about projects;
• Determine whether a project has the potential to cause significant environmental impacts;
• Decide whether an Environmental Impact Report (EIR) is required;
• Ensure that all potential areas of environmental impact are identified;
• Identify possible appropriate mitigation measures; and
• Assist in the preparation of an EIR by identifying the environmental impacts upon which an EIR should focus.

An Initial Study is used to determine if potentially significant impacts would occur. If there are significant impacts, the Initial Study identifies mitigation measures to reduce impacts to less than significant levels. An Initial Study consists of a written report that addresses issues such as land use, access/circulation, traffic generation, drainage, air quality, noise, biological resources, impacts to trees, cultural resources, provision of public services, etc.

Initial Studies should be prepared by professionals such as environmental scientists and/or engineers whose credentials qualify the integrity of their work in preparing and presenting an initial study for the project.

Even with such qualifications, given that commercial cannabis projects are relatively new to the project development world, attention to detail and ensuring the proper operational and use specific factors are evaluated is crucial to a sound product being produced to help gain approval for your project. This is where Drivon Consulting utilizes our experience and industry specific insight to interface and guide such professionals in the preparation of such documentation.

Building Trades (Architects, Engineers, Contractors, and Tradesmen)

The scope of development and construction involved in developing a cannabis business facility can range widely, from a simple interior improvement to an existing storefront for a cannabis retail business, to large scale development involving grading, construction of underground infrastructure as well as ground up development of buildings to accommodate an industrial cultivation, manufacturing, and or distribution facility.

More likely than not, if any construction is involved, your project improvements will require the approval of building permits following the submittal of architectural drawings and/or engineering plans and calculations that must be prepared and certified by a qualified building professional. Such building professionals may include:

• Architects
• Geotechnical Engineers
• Civil Engineers
• Structural Engineers
• Mechanical Engineers
• Electrical Engineers

Roles and Responsibilities of Engineers

Geotechnical Engineers
Geotechnical engineers conduct a ground investigation to determine the properties and depth of the soils and rocks that are present as well as the groundwater conditions. They will make assessments of the bearing capacity at various depths and the likely settlement under the intended load of the structure.

Civil Engineers
Civil engineers plan, design, and maintain the infrastructure of communities, including buildings, roads, and water systems.

Structural Engineers
A structural engineer designs, analyzes, and manages the construction of buildings, bridges, and other structures. They ensure that structures are safe, stable, and meet building codes.

Mechanical Engineers
Mechanical engineers design power-producing machines, such as electric generators, internal combustion engines, and steam and gas turbines, as well as power-using machines, such as refrigeration and air-conditioning systems. Mechanical engineers design other machines inside buildings, such as elevators and escalators.

Electrical Engineers
Electrical engineers design, build, and maintain electrical systems and devices. They work with electricity, electronics, and electromagnetism.

In any case, building professionals do not come cheap, and the scope of work may involve long periods of time evaluating a project and working up the necessary documentation for completion of their scope. We have worked with all kinds of building professionals in the development of project plans for clients and maintain regular interface to ensure all relevant factors are considered. We serve as your trusted counsel in project management to ensure professionals working on your behalf maintain your project as a priority and get the work done efficiently and accurately.

Building Department Interface

Following the initial submittal of facility plans to local building and planning departments, project owners or building professionals submitting plans on behalf of owners will field questions, comments, and corrections regarding the proposed plans with further inquiry into the nature of the proposed use.

Traditional building professionals may not be completely familiar with commercial cannabis operations, or the specific operational plans for the facility. When responding to inquiries or corrections, it is critical that all factors are considered. These factors will inevitably include both local and State Cannabis regulations governing such operations. We serve to evaluate such inquiries, corrections, and have a direct role in drafting responses to maintain the integrity of the ongoing facility proposal to ensure the project advances toward approval for construction.

Construction and Building Contractors

Once the plans for your cannabis facility are approved, projects advance to the construction phase, where applicable. Simple, small-scale projects such as interior improvements may involve ‘owner-builder’ construction without the aid of a licensed contractor. Other projects may require the involvement of a licensed contractor to ensure the facility is built to plan specifications, that subcontractors from various trades are coordinated appropriately, and that the finished construction will meet all relevant codes to ensure passage and approval for the facility to be occupied for the intended use of the business.

In any case, whether it be negotiating and ensuring proper performance of a contract for professional services, or ensuring the actual project development maintains a steady course, we serve to advance and protect the interests of your cannabis business during the planning and construction phases.