Even with multiple delivery services and a plethora of dispensaries located just around the corner in Venice and adjacent neighborhoods, the very first medical cannabis dispensary in Santa Monica, California, permitted by the local authorities is set to open its doors.
Despite being located right in the heart of what is known as “The most expansive legal weed market in the U.S.,” it’s been noted by the McReynolds firm that the Santa Monica local government “stringently regulates” the issuance of medicinal cannabis retail permits. At present, the City has only allocated two licenses for the retail of medical cannabis.
The Santa Monica Daily Press has disclosed that Local Cannabis Company, under the ownership of Massachusetts-based Calyx Peak, will be the first officially sanctioned dispensary in the city. This also represents the first Calyx Peak outlet to be opened west of Kansas City, Missouri.
The inaugural cannabis dispensary in Santa Monica, California, began operations last week, a full six years after the initial permit application was submitted in December 2017. The license was finally approved more than a year earlier in October 2021.
“The decision to initiate this was made six years ago, and it’s fascinating to see the state of the cannabis market today,” comments Erin Carachilo, the CEO of Calyx Peak. “Surprisingly, not many individuals possess medical cards, as they no longer deem them necessary. Since our inauguration, we’ve seen only around a 20 percent conversion rate. I personally think it’s closer to 10 percent, which indicates a reluctance in people to wait.”
Another dispensary, Harvest of Santa Monica, projected to be located at 1416 Wilshire Blvd, was also given the green light in January 2022, although it is yet to become operational.
The Relationship between Santa Monica and Cannabis
The Santa Monica city administration currently permits medicinal dispensaries to conduct limited onsite cultivation and light manufacturing operations that do not require volatile solvents. However, activities related to medical cannabis manufacturing, testing, distribution, and standalone commercial cultivation are not permitted.
This past November, Santa Monica joined numerous other California communities in approving a measure, dubbed Measure HMP, with a 66.79% majority “yes” vote. This measure applies taxes to recreational cannabis retailers, medical retailers, and all other licensed cannabis businesses. Similar cannabis-related measures also passed in Claremont, Cudahy, Lynwood, and South El Monte.
Measure HMP of Santa Monica is unique as it extends to retailers of all products that contain psychoactive cannabinoids, including cannabinoids derived from industrial hemp.
However, city lawmakers are currently in the process of considering potential market expansion. A persisting challenge, though, is the fact that a significant number of medical cannabis patients in California have stopped renewing their medical cannabis recommendations since the same products are now legally accessible to adults over 21 without an annual fee.
“We’ve managed to get the operation running, and that’s a good start. From here, we’ll figure out how to evolve. We should be capable of handling both medical and recreational sales. Medical patients should be able to access their medicine and shouldn’t be subject to the same taxes; I completely stand by this,” says Carachilo.
“Typically, most stores should be generating five to nine million annually, which is considered standard. In this particular area, it should be effortless to make 10 million, given the high volume of visitors to Santa Monica. The necessity for a medical card has made it restrictive, limiting access to only California residents. Without a California license or ID, even I can’t shop here.”
Howard Keum, Calyx Peak’s Chief Corporate Development Officer, informed the Santa Monica Daily Press that “Santa Monica is still operating on outdated medical-only rules,” emphasizing that it’s high time for the city to modernize and explore the potential for adult-use cannabis.
The Local Cannabis Company is located at 925 Wilshire Blvd. The official grand opening of the dispensary is scheduled for Saturday, June 24.
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