The City of Canyon Lake has selected Culture Cannabis Club of Canyon Lake as the successful applicant of the city’s first Commercial Cannabis Business Permit. The proposed location is 31524 Railroad Canyon Rd. (between the POA offices and city administration offices).
“While all of the applications were strong, Culture Cannabis Club’s proposal exceeded the City’s expectations,” City Manager Chris Mann said.
According to Mann, Culture Cannabis Club has proposed a one-time, up-front payment to the city of $205,000, plus $155,000 annually in contributions to civic/nonprofit organizations in Canyon Lake, an ongoing percentage of gross revenue to the city of 15.1 percent, and a minimum revenue share payment of $305,000 each quarter. In other words, they will pay either 15.1% of their gross revenue or $305,000 each quarter, whichever is greater. The agreement guarantees ongoing revenue to the city of no less than $1,220,000 per year.
The process, however, is not yet complete. The applicant must still agree to and sign a Community Benefits Agreement and a Neighborhood Compatibility Agreement, which will contain all of the conditions the city will impose on them. Then they must perform.
“If they refuse to agree to the conditions, or if they fail to perform, the permit will be offered to the next highest ranked applicant, and so on, until the Commercial Cannabis Business Permit is issued,” Mann said.
The community benefits rankings were based on a one-time payment, percentage of gross revenues, quarterly minimum payment, and annual civic and nonprofit contributions.
The final rankings (out of a possible score of 1,000) are as follows:
- Culture Cannabis Club: 953.06
- The Syndicate: 784.80
- IE Gardens: 677.46
- Element 7: 613.02
- SIPKOI: 509.42
“I’m very pleased with the process that was set forward by our city manager and staff,” Mayor Jeremy Smith said. “Nothing is final yet. Moving forward, the applicant still has to agree to and sign a Community Benefits Agreement and a Neighborhood Compatibility Agreement. Collective, the council agrees that security is our number one priority through this process and we will hold the applicant to that.”
At 4:20 p.m. today, June 27, the city notified the Commercial Cannabis Business Permit applicants of the final ranking of their applications. The results are also posted on the cannabis page of the city’s website at https://www.canyonlakeca.gov/cannabis.
