Erik Chalhoub here, thinking about the 2016 election. No, not what typically comes to mind when discussing that election. Rather, I’m referring to California’s Proposition 64, which legalized marijuana for recreational use in the state.
As a reporter in Watsonville following the proposition’s passage, I witnessed from the ground up how that city prepared to welcome a new industry into its borders. I sat through countless meetings, listening to zoning code updates, who would get to operate where and how, what was and wasn’t allowed, and so on.
There was one common thread throughout this time: city officials were salivating at the thought of the millions in tax revenues that would soon come to their coffers, supporting chronically underfunded areas such as parks and streets.
That never came to be, at least not to the extent many had hoped.
For the County of Monterey, cannabis businesses generated $79 million in tax revenue during the first six years. For the current fiscal year, $4.5 million has been collected.
A total of 34 businesses in the County of Monterey’s jurisdiction closed in the 2022-23 fiscal year. So far this fiscal year, seven have closed, consistent with years before the spike.
Cities such as Monterey, Carmel, Pacific Grove and Sand City have yet to deal with the ups and downs of the industry, as they don’t allow commercial cannabis businesses to operate. But tonight, the City of Monterey is expected to take the next step in its slow-but-steady approach to the industry.
At 7pm tonight, May 21, the Monterey City Council will consider issuing four dispensary permits, as well as hold a drawing to determine where they will be located: Lighthouse Avenue, Cannery Row, downtown (Old Monterey) and North Fremont Street.
The meeting is a culmination of nearly four years of work, starting when the council began discussing a plan for cannabis in September 2020, and later included a voter-approved measure that established tax rates on businesses.
In late 2023, the city issued a call for cannabis businesses to apply. The 13 applications were narrowed down to eight, and the top eight were interviewed by Mayor Tyller Williamson and Vice Mayor Kim Barber.
The interviews netted a top four: Monterey Responsible and Compliant Retail LLC (Embarc), Element 7 SF4 LLC (Element 7), Monterey Pacific Retail Holdings, Inc. (Culture Cannabis Club) and OTC Monterey, LLC (Off the Charts).
The city’s stated goal of its process is “Getting it Right the First Time.” Only time will tell if this methodical approach pays off.
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