5.61.240 - Indemnification and limitations on city's liability.

To the fullest extent permitted by local, state and/or federal law, the City of Commerce shall not assume any liability whatsoever with respect to having issued a commercial cannabis permit or executed a development agreement pursuant to this chapter, or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis permit and to the execution and approval of a development agreement, the applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis permit: (1)

They must execute an agreement, in a form approved by the city attorney, agreeing to indemnify, defend at the applicant's sole cost and expense, and hold harmless the City of Commerce, and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to:

(A)

The city's drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for commercial cannabis businesses and/or, if necessary in the future, making any zoning law amendment(s);

(B)

The city's issuance of the commercial cannabis permit;

(C)

The city's approval and execution of a development agreement;

(D)

The city's decision to approve the operation of the commercial cannabis business or activity;

(E)

The process used by the city in making its decision to issue, approve or deny a permit or a development agreement; and/or

(F)

The alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents.

(2)

Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city attorney.

(3)

Reimburse the City of Commerce for all costs and expenses, including but not limited to attorney fees and costs and court costs, which the City of Commerce may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis permit, or related to the city's approval of the applicant's commercial cannabis activity, or the city's approval of a development agreement. The City of Commerce may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.

(4)

The terms and provisions as enumerated in this section related to indemnification and limitation on the city's liability shall be an explicit term of a commercial cannabis permit and a development agreement that an applicant and a permittee shall agree to in order for same to be valid.

(Ord. No. 700, § 2, 9-4-2018)