Nevada City took a first, tentative step toward allowing businesses to manufacture and sell adult-use cannabis.
City Council members asked staff to put together a checklist of considerations to forward to the Planning Commission, in order to potentially amend the city ordinance that currently allows only medical cannabis.
Last year, the city council passed an ordinance that allowed for the establishment, permitting and regulation of medical- only cannabis cultivation, manufacturing, distributing and testing laboratory businesses. More than a dozen ancillary manufacturing, distribution and testing businesses are currently in various stages of the permit process to open in Nevada City.
In February, the city awarded its only dispensary permit to Elevation 2477′, with the provision that it would examine its operation after a year in business with an eye to allowing two more dispensaries to open up.
Elevation 2477′ received its license to throw open its doors in August, after a lengthy permit and build-out process.
But what its owners have discovered is that having a medical-only license could very well be the business’ death knell. They say they have been turning away nearly two-thirds of the people who try to walk through their doors because they do not have a medical marijuana recommendation.
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According to the Nevada County Cannabis Alliance, Nevada City is losing out on between $68,184 and $100,000 in additional annual revenue from the sale of both medical and adult use cannabis.
“We would see greater revenue if adult use was added,” agreed City Manager Catrina Olson.
Cannabis Alliance Executive Director Diana Gamzon told the council that while it had been important to move slowly at the beginning of the process, cannabis was now legal in California and she believed the community was ready to acknowledge that fact.