Culture Cannabis Club, Canyon Lake’s lone commercial cannabis dispensary, has announced the immediate closure of its store, which officially opened on September 28, 2023.
The store ceased operations at the end of the day on Tuesday, Culture Cannabis Club CEO Devon Julian confirmed. The City of Canyon Lake first became aware of the closure through social media posts on Wednesday morning and later confirmed the news.
“With regret, we are announcing the closure of Culture Cannabis Club in Canyon Lake,” Julian said. “Despite our high hopes and the initial enthusiasm for legal cannabis in the area, we were unable to sustain our operations. Even with the city’s efforts to reduce the operational costs, minimum fees, and other support, the demand did not meet our projections, and we faced insurmountable financial challenges.”
Culture Cannabis Club was originally selected from a pool of five applicants to operate in Canyon Lake, based in part on Culture Cannabis Club’s community benefits proposal to provide 15.1% of gross receipts or $305,000 per quarter to the City of Canyon Lake to fund government operations such as law enforcement services.
Culture Cannabis Club fell far short of the anticipated first-year revenue of $15,290,084, according to the city. These revenue projections were initially presented to the city council in February 2023, with the official ribbon-cutting ceremony taking place on September 28, 2023.
Due to the competitive nature of public bids and the city’s commitment to maintaining neutrality in the process, Culture Cannabis Club was awarded the contract based on its significant proposed public benefit. The city was then obligated to hold the company accountable to their proposal.
“Following the company’s inability to meet its financial commitments, the city negotiated payment plans in an effort to recover the owed amounts,” the city said. “Despite the closure, Culture Cannabis still has a significant financial obligation to the city.”
Culture Cannabis Club has indicated an interest in reopening the Canyon Lake location if the upcoming Citizen Measure on the November ballot passes, which they believe would make their business more viable; however, Interim City Manager Aron Brown has made it clear that any consideration for a future permit will be postponed until after the voters have decided on the measure, allowing the city council to determine the best path forward.
“We want to extend our deepest gratitude to the Canyon Lake city staff and city council for their support and partnership throughout this period,” Julian said. “Their efforts to keep us afloat as long as possible are sincerely appreciated. Most importantly, we thank our customers and the Canyon Lake community for their support. Canyon Lake is a truly special place, and we cherish the time we spent as part of it.”
