Lynwood City First in Los Angeles County to Start Trading in Large-Scale Manufacturing and Distribution of Cannabis
Hollywood and the surrounding area, as the most populous county in the most populous state, i.e. Los Angeles, is a major room as the cannabis industry has a greater capacity to sell cannabis for recreational purposes. . Voters in California - along with those in Nevada, Maine and Massachusetts - legalized it in November. America's $ 6 billion industry is set to grow to $ 50 billion by 2026, according to investment bank Cowen & Co. So Lynwood is on the verge of becoming Hollyweed.
Lynwood sets off the momentum. Its city council this week granted preliminary approval to 13 commercial cannabis growers and manufacturers. This is what a press release from the mayor reports. The groups must each negotiate individually with Lynwood. And under the terms and conditions of their operations, they must demonstrate a clear track record and financial security.
"They are the first who can do it," said Priscilla Vilchis, 30, who is looking for at least two licenses. “There are a lot of people watching. If things go for the best, there will be a domino effect with other local towns. "
Vilchis estimated that the Los Angeles County dispensaries will collectively have about $ 1,4 billion in their first year. Cali Premium Produce Inc., his company, has approximately 25 million.
Industry could also help municipal and state funds. Local and local cannabis tax revenues could exceed 1 billion dollars a year by the mid-2020s, according to the Office of Non-partisan Legislative Analysts.
The new regulation of the cannabis industry will increase in Lynwood's general fund, create jobs and supplement vacant properties, Mayor Maria Santillan-Beas said in a statement.
“This is a victory for retailers, consumers, and especially our community,” she said.
Some say the benefits don't outweigh the risk.
"It is unreasonable for governments to choose to add tax revenue away from our children's addiction," said Scott Chipman, founder of Citizens Against the Legalization of Marijuana. "We have never measured the total cost of the harm caused by the 'drug'".
Still, most Americans believe marijuana should be legal, according to a Quinnipiac University poll released in February. 51% stated that the plant should be legal in general and 93% said it should be cleared for medical purposes.
Vilchis, the only women among Lynwood's applicants, made her mark in the cannabis industry. Her company won two licenses in Nevada in 2014. She then turned her attention to California, her state of residence.
Lynwood City staff reviewed more than 40 applications: 15 for culture, 17 for manufacturing, seven for distribution and transportation, and two for product testing, according to a council meeting schedule. Applicants were required to submit details of a proposed location and architectural and operational plans. Hopes were also to include security plans, according to the mayor.
Bureaucracy with hemp
Pot sale permits are not cheap. Each Lynch application from Vilchis costs between 150 000 $ and 200 000 $ for preparing. The submissions included proof that she had spatial, architectural, air quality precautions. But also a view of the policies and procedures governing manufacturing and cultivation.
The 11 square foot facility already leased by Cali Premium Produce will cost 2,75 million to build. The Vilchis Group has filed documents proving a liquidity of 12 million to complete the task.
Like many in the booming industry, Vilchis didn't start out in cannabis. She became an entrepreneurial company in the early 20s as a medical consultant. She has helped physicians navigate regulations and negotiate with insurance companies to treat patients with occupational injuries. Through her work in health care, Vilchis en saw the opioid epidemic says it all pushed her to learn about medical marijuana.
Still, Vilchis says she wants to do her part to make the drug available and ultimately put it in the hands of the doctors she worked with in her previous career.
“My goal one day is to offer marijuana in place of an opioid,” she said. "I hope to be the front and center of this."