The huge industrial courtyard of Coachella dispensary becomes the epicenter of culture in the eastern valley with 45,000 farmers ready to participate in this entertaining corner of the marijuana market.
Wild Rock Development is located on the Mirage Ranch and has paved the way for the first phase of multi-park development, which is scheduled for last month. When completed, it will provide up to 1 million square meters of land for cultivation, processing and production, and will be just one of many farms on offer for Coachella dispensary vast backyard.
Coachella dispensary may not have golf courses, meeting rooms or walking shoes like a hotel - the first is expected to open later this year - but it does have a very underdeveloped area, existing farm workers and a cheaper capacity if the city succeeds. Power plant manufactured by the imperial irrigation area.
"I don't have a crystal ball that says Coachella dispensary will revitalize the industry in the eastern part, but I think we've definitely taken a step towards becoming a player," said Coachella dispensary mayor Steve Hernandez. "We have to be sure that the income goes to the city, because the last thing we want is more tax measures for our residents.
In recent weeks, the city council has updated the rules for using cannabis and made changes to increase the production of cannabis. The number of licensed pharmacies is expected to drop from five to ten while two other pharmacies are licensed in the city center. The rest will move to the outskirts of the city, away from residential areas and a dozen interstate areas, in the hope that retailers can attract customers entering or leaving the Coachella dispensary Valley.
City officials are making efforts to meet colleagues from the West Valley such as Desert Hot Springs, Palm Springs and Cathedral City, who see that the vacation with the development of the marijuana industry seems almost instantaneous. In the three towns in the western valley, the towns have received secret revenues of around $ 11 million, according to the latest comprehensive financial statements and data from Palm Springs.
Other cities like Indio, La Quinta and Indian Wells have not allowed the mysterious work, and the palm desert has only opened an expensive pharmacy in El Paseo.
Coachella, which owns a pharmacy and several other cannabis companies, said it received $ 293,000 worth of cannabis in the first six months of 2018. Most of the revenue - about $ 165,000 - came from the Mayak pharmacy.
Because the annual income from cannabis can become a very heavy income, you can replace a city with an annual budget of over $ 30 million. Hernandez said the council will focus mainly on improving infrastructure, additional programs for young people and covering increased public security spending.
City administrator Bill Pattison, an experienced financial director who supported the city during the economic crisis, predicts the city's budget conservatively.
According to Pattison, despite the initial tax collection, the city refuses to assess the revenues it could receive if all of the proposed developments took place. "If I make a budget, the money will be spent," he said.
Pattison said he plans to make money at additional pharmacies while waiting for a city council license, but pharmacies are like gas stations. He found that the concentration of pharmacies in the Coachella center could distribute the same sales to more operators. "Will they all have the same income?" I seriously doubt it, ”he said.
Other proposed changes include reducing the minimum hectare requirements for farmers in certain industrial areas of the city and promoting social equality.
Originally approved in accordance with the current city ordinance in 2016, the local council set a minimum of 30 hectares for cultivation, which effectively increased the start-up capital required to start cultivation. The council plans to reduce the minimum area to 10 in the hope that this will encourage local operators to start a business with Coachella dispensary.
"We learn when we leave," said Megan Biman Jacinto, immigration lawyer. "A whole new agricultural industry."
Biman Jacinto looked at what has worked and what hasn't worked in other cities that have gone green quickly, including possible tax breaks, to assess how Coachla is doing.
"We're trying to figure out what we can do to encourage marijuana developers to live in Coachella, but at the same time, we don't want to give up the house to promote that kind of growth," he said.
The City Council will hold a study session next week to discuss how to tax marijuana businesses and regulate the growing sector.
Michael Meade, president of Desert Rock Development, said the Coachella company gave preference to other cities, and that favorable tax credit and cheaper production costs would help other rivals survive the long term. Cities in the Coachella dispensary Valley. Expected marijuana industry in California is expected to see a fall in pot prices compared to Colorado's, which will force operators to increase their operating costs.
In Colorado, according to the Colorado Treasury, marijuana prices fell to an average of $ 46,846 in July 2018 from a high of $ 2008.
"I see a crisis. These small operators and cities that do not have the economy will close their doors unless they develop," Meade said.
DESERT ROCK DEVELOPMENT has negotiated a seven-year deal that will provide a flat tax of 2% on total wholesale revenue for growth, manufacturing and distribution. Mead estimates that even with a single tenant, the development in the first year could result in tax revenue of up to $ 4 million.
In addition to lower taxes, Coachella's other benefit is the ability to buy IID-generated electricity in the city, which is cheaper than buying electricity from Edison, a public service in the Valley. From the West.
The right of the new substation proves to be the linchpin of Coachella's development projects. However, city officials and developers are sure it's only a matter of time before they find a solution. . Meade pointed out that the first phase of Desert Rock is governed by an existing substation, and when the new substation took too long to go online, they performed preliminary electrical measurements.
An IID spokeswoman said the substation project is still in its infancy. "No detailed information is available yet and structures are being discussed between IID, municipalities and the development community," a spokeswoman said via email.
At the inauguration at Desert Rock on Feb. 20, Meade said he had seen Coachella in one of the lucky cities in California, where great culture is developing.
"I believe they have the opportunity to develop large-scale developments that we cannot do in other cities," he said. "It's a change for Coachella dispensary City."