The City of Canyon Lake has officially ended its relationship with Culture Cannabis Club after the company failed to meet a critical payment deadline tied to a previously negotiated settlement agreement.
Culture Cannabis Club opened in the Towne Center in September 2023. However, the company fell short of the anticipated first-year revenue of $15,290,084 and shuttered its doors in August 2024. Following Culture Cannabis Club’s inability to meet its financial commitments to the city, the city negotiated payment plans in an effort to recover the owed amounts. Despite the closure, Culture Cannabis still had a significant financial obligation to the city.
The city council directed the city manager and city attorney to negotiate a settlement with Culture Cannabis Club, which culminated in a verbal agreement that was moving toward a formal resolution. As part of the settlement, Culture Cannabis Club agreed to pay a reduced amount of $500,000—down for the previously negotiated $800,000.
The agreement required an upfront payment of $250,000, with the remaining $250,000 to be paid over 18 months at a 6% interest rate. However, as the deadline approached for the initial payment, Culture Cannabis Club informed the city that they were unable to come up with the required payment and requested to renegotiate the terms.
Culture Cannabis Club’s new proposal included spreading the payments over two years for the full amount—something that was not authorized by the city council.
As a result, the city manager informed the company that the agreement would not move forward and that the city would rescind the permit previously issued to Culture Cannabis Club.
This action marks the conclusion of the city’s dealings with Culture Cannabis Club.
