Profitable Promise

Commercial cannabis businesses are about to bloom in their full glory in Grover Beach. On May 15, the Grover Beach City Council voted to allow and regulate commercial medical cannabis businesses with the implementation of two new ordinances. The types of businesses that will be allowed include dispensaries, manufacturing operations, laboratory testing facilities and nurseries. Despite a few setbacks, dispensaries will open and cannabis advocates can ultimately claim victory.

Interested applicants are required to obtain a Use Permit from the Grover Beach City Council that specifies the business location, size and types of use for the permit. A Commercial Cannabis Permit is also required to prove that all regulatory prerequisites are met.

“From a strictly numbers standpoint, commercial medical cannabis could contribute significantly to the city’s economy. However, more than that, commercial medical cannabis is a part of an overall economic development strategy that Grover Beach is undertaking.”

Ordinance 17-05 is a land use ordinance that outlines commercial cannabis business zoning. The city council voted 3-1 with Mayor John Shoals voting ‘no.’ Ordinance 17-06, the regulatory ordinance, enacts regulations for commercial cannabis businesses. City council voted unanimously 4-0 to approve the ordinance. Councilwoman Debbie Peterson recused herself from participating in both votes. The only setback, however, was the decision to halve the number of dispensaries from four to two. Both dispensaries may be open to the public between the hours of 9 a.m. and 7 p.m.

Financially speaking, the cannabis ordinances are one of many ways city council is reviving the city’s economy. “From a strictly numbers standpoint, commercial medical cannabis could contribute significantly to the city’s economy,” City Councilmember Jeff Lee told CULTURE. “However, more than that, commercial medical cannabis is a part of an overall economic development strategy that Grover Beach is undertaking. Along with cannabis, the city is embarking upon the construction of two hotels, a conference center and a broadband initiative. These activities are poised to bring tourism, head-of-household jobs, service sector opportunities and an increased sense of pride to the community.” Lee continued to share that the city is looking forward to the opportunities the legal cannabis industry will bring to Grover Beach, and he believes it will make the city a safer and more enjoyable place to live, work and visit.

Not everyone was on board with the decision, including Grover Beach’s former Mayor Ron Arnoldsen, who was vocally adamant about not allowing cannabis businesses, to the point of being accused of hate speech, as he shouted obscenities during the cannabis business debate at the city council meeting. Arnoldsen’s long tenure with Grover Beach stretched from 1992 to 2004, and he’s worked hard to preserve the town’s quiet conservative identity. Arnoldsen’s comments did not gel with Councilmember Mariam Shah, who spoke out about his unnaturally hateful approach to cannabis. Arnoldsen then went on to defend himself in an opinion piece in Cal Coast News declaring that offensive language is not specifically prohibited in city council, and he referenced his right under the First Amendment. Either way, Arnoldsen no longer holds power in the city of Grover Beach and the implementation of cannabis businesses in Grover Beach will carry on.

The implementation of cannabis businesses has been in the works for about six months in Grover Beach. On November 8, 2016, the city council paved the way for commercial cannabis by passing Measure L-16 to tax any commercial cannabis businesses within city limits. The city imposed a five percent tax on commercial cannabis and 10 percent tax on non-medical cannabis. Cultivation will be taxed at $25 per square foot on the first 5,000 square feet and $10 beyond 5,000 feet.

After much deliberation, the details of zoning regulations were worked out in city council. “The commercial medical cannabis zones are in located in three different areas of the city and total nearly 90 acres of land,” City Manager Matthew Bronson told CULTURE. “Commercial cannabis zones were authorized within the Cities I (Industrial), CI (Coastal Industrial) and CIC (Coastal Industrial-Commercial) zones,” added Lee.

Grover Beach is arriving at the dawn of a new era with the great amount of progress made in recent months—but there is much more work to do with only two local dispensaries so far. San Luis Obispo County has become an unlikely sanctuary for cannabis businesses in the area. The ordinances go into effect on June 15.