CA: Marijuana Facility Surge Troubles Some Cathedral City Businesses

Katelyn Baker

Well-Known Member
In June, people started to arrive at Stonehouse tile store in Cathedral City, armed with cameras and measuring tapes, taking pictures of the building and measuring the interior space.

The problem was, owner Tami Monica and her employees didn't invite them.

"They walk in with their measuring tapes and start taking measurements. I'll go over and ask them 'Can I help you?' " Monica said. "They say 'No,' so I tell them to get out."

They were among many who stopped into her Perez Road store after the City Council approved new zoning regulations for marijuana cultivation facilities in May.

Most left after she told them to, she said. But one man, who she didn't know, screamed at her in the parking lot that he was going to make so much money, make everybody rich and buy her out of her building.

Another person offered her $750,000 to vacate her shop within nine months. But Monica said she doesn't want to move her business, so she refused. She has tried to contact her landlord about these issues and ask about rumors that their building, which they rent part of, has sold, but he won't respond to any of her calls, texts or emails.

Now that "light industrial" zones, including Perez Road, are zoned for cannabis dispensaries and cultivation and manufacturing facilities, people from the industry have been looking to buy up property in the area, regardless of whether it is occupied or not.

City Manager Charlie McClendon said four dispensaries are operational today. One, Green Cross Pharma, is both a dispensary and a cultivation center. Another 13 conditional use permits have been approved - eight for cultivation and five for dispensaries, no permits for manufacturing have been issued - and more are working through the process, but McClendon said all these proposed locations are in otherwise vacant lots.

Councilman Greg Pettis, a licensed Realtor, has listed a commercial property for sale on Kieley Road, just off Cathedral Canyon Drive. The property is described as an "industrial building in the heart of new marijuana cultivation and manufacturing zone" which has space for two greenhouses.

He did not directly respond to inquiries about whether or not he has previously sold any properties in Cathedral City which have become medical marijuana facilities. However, he said as a realtor he strives to promote properties around the valley and represent sellers and buyers as best he can.

"In order to avoid any conflicts of interest as an elected official, I maintain a proper separation between my duties representing the interest of Cathedral City residents and that of my profession," Pettis said in an email. "I take my oath of office seriously and the community and voters have recognized it for more than 20 years."

Roy Botello, manager at Express Auto on Perez Road, said he and the other businesses in his complex have had no communication from their landlord, even though a group has already submitted an application to the city for a medical cannabis license and listed five occupied suites in the complex as its prospective address.

To submit it, the applicant would have been required to have a document from the landlord saying the spaces would be available if the license is approved.

Botello said he is worried about the future and problems cultivation and manufacturing centers could bring to the area, particularly crime and the smell of marijuana.

"I work 10 hours sometimes. I don't want to have to deal with that," he said.

McClendon said the council would pay close attention to any issues that develop with cannabis-related businesses, but so far, no incidents requiring police action have been reported at any of the operational medical marijuana facilities.

"These comments are based on speculation and fear about what might happen," he said.

If incidents do arise in the future, the council or the Planning Commission could take a look at the ordinances and zoning code related to marijuana facilities and see if any revision or increased oversight was needed. However, he added that the commission is meant to review applications against already existing city policy.

"The role of the Planning Commission isn't really to decide are we going to allow medical cannabis businesses or not," McClendon said. "The council has already made that decision."

Not all planning commissioners were comfortable with how that process was unfolding.

Former commissioner Linda Snowden resigned from the panel on Tuesday, citing frustrations with how the city has handled the dispensing of licenses for marijuana-related businesses.

"I feel it is completely irresponsible to open an unlimited number of these facilities without any study showing the potential negative impact to our city," she wrote in her resignation letter. "I cannot face the residents and business owners of this city and rubber stamp the endless marijuana CUP permits this city council is pushing through with any sense of dignity."

Snowden said she was not opposed to medical marijuana and thought it could be good for the city if handled in a more measured way.

"What I'm against is opening 30 or 40 of these things in the speed-demon way they're doing it," she said. "Even though we have no power to stop these, the city is going to 'Oh, it went through the planning commission'."

She explained she had voted against granting one conditional use permit for a facility that was slated to open up next to a nightclub. She said she didn't feel good about it because there was a lot of missing information - like the days and hours the nightclub was open and if there would be enough parking.

Snowden added that she was not alone in her frustrations. One planning commissioner stopped coming to meetings and another, when he received her resignation letter, told Snowden he was not far behind her, she said.

Karen Panico-Willis and her husband Steven Willis also said they were frustrated with how the city had handled the process. They co-own D&D Carpet, which occupies three units in the same complex as Express Auto. The couple said they had experienced many of the same things Botello and Monica had.

Panico-Willis said her daughter recently found two men inspecting the store's warehouse, claiming they heard it was for lease. Since then, she said they have been trying to nail down a lease agreement with the landlord – who had previously doubled their rent, forcing them into a month-to-month agreement - but can't get in touch with him.

Willis said he's worried about what the future might hold for their business.

"We don't know whether to start looking (for a new location) or not to start looking," he said. "I don't like the uncertain factor."

Panico-Willis said it was a sad situation since they have always been involved with the city and had good relationships with city officials.

"If I hadn't started looking into this," she said, patting a binder full of information she had collected on the city's medical marijuana industry, "we wouldn't have known about it until somebody handed us an eviction notice. We have no protection if they want to come in."

Money could start rolling in

While some are worried about negative impacts the cannabis industry could have on the local business community, the industry also holds the potential to be a large revenue generator.

Cathedral City has raked in about $58,500 from taxes and license and permit fees since the beginning of fiscal year 2015-2016, when the city began collecting revenue from cannabis-related businesses. For the majority of that time, only one facility was open.

The current medical marijuana tax ordinance only taxes dispensing, not cultivation or manufacturing. Measure P, which will appear on the municipal ballot in November, would amend the ordinance so cultivation, dispensation and delivery would be taxed for both medical and recreational marijuana, should it be legalized.

Mayor Stan Henry said he opposes legalizing recreational marijuana, but supports taxing it if it is legalized. It will bring more revenue into the city, but will also cost the city in creating regulations and monitoring the industry. Revenue from Measure P will be put toward emergency services, recreational programs for kids and the city's public library.

Pettis, who is up for reelection, said he believed the city had anticipated the possibility of recreational marijuana and had been proactive in ensuring Cathedral City would be ready.

"Our zoning regulations allow a more expansive use than any other city in the valley," he said in response to a questionnaire sent out by The Desert Sun. "As various uses open, we will evaluate to see what we need to do (to) enhance our activities."

The modified tax structure could potentially bring tens of thousands more into the city. However, it is hard to estimate exactly how much since that will depend on how many facilities actually open their doors.

And there is little to compare to in the valley or outside of it. Desert Hot Springs started collecting revenue from medical marijuana dispensaries in the 2015-2016 fiscal year. The first cultivation facility officially opened Sept. 29 and will generate $135,000 in taxes for the city this year.

The city has so far collected just over $250,000 from taxes on dispensaries.

Palm Desert, La Quinta, Rancho Mirage, Indian Wells and Indio do not allow dispensaries or cultivation centers. Coachella allows medical marijuana cultivation - not dispensing or delivering - but the city's first facility will not open until November.

However, despite the possibility of increased revenue for the city, not everyone is convinced it is the best course and some are worried that the territory is relatively uncharted.

Panico-Willis said she was concerned about security issues for the entire complex if manufacturing and cultivation businesses moved in. Monica said she is worried the industry could give the valley a bad reputation if it continues to expand.

"To an extent, I get everybody is out to make money," Monica said. "But is this going to hurt the city? And is this money you can sleep with at night?"

JayCalderon.jpg


News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Marijuana Facility Surge Troubles Some Cathedral City Businesses
Author: Corinne S Kennedy
Contact: (760) 322-8889
Photo Credit: Jay Calderon
Website: The Desert Sun
 
Back
Top Bottom