10 MONTEREY COUNTY WEEKLY september 14-20, 2023 www.montereycountyweekly.com Cannabis retailer Urbn Leaf’s Seaside dispensary is the latest to fall victim to the challenging business conditions facing the industry after shutting down late last month. Statehouse Holdings, Urbn Leaf’s parent company, decided not to renew the Seaside location’s cannabis license and closed the store, at 680 Broadway Ave., on Aug. 26, according to Statehouse’s second-quarter financial statements. Urbn Leaf was one of three dispensaries on Broadway Avenue and one of six in Seaside and neighboring Del Rey Oaks, making the area a local hotspot for cannabis purveyors since Seaside began permitting dispensaries in 2017. Urbn Leaf and its landlord had invested around $1 million into building out a sleek storefront and 6,400-square-foot retail space and upgrading the building’s infrastructure, says Peter Baird of Mahoney & Associates, the property’s landlord and listing brokerage. Yet Statehouse has been dealing with many of the same headwinds that have impacted the cannabis sector at large—namely, overproduction that has hurt prices, illegal-market competition that has hindered sales, and taxes and regulations that industry players claim have made it difficult to turn a profit. In its second-quarter earnings report, Statehouse disclosed quarterly revenues that were down 27 percent year-on-year, including retail revenues that fell 30 percent from the previous year. The San Diego-based company reported a net loss of $2.1 million in the quarter, which coupled with a heavy debt load has seen its publicly traded stock sink to under $0.07 per share. (Representatives for Statehouse did not return requests for comment.) Statehouse’s challenges are in no way unique, according to its competitors. “Nobody is going to survive this— it’s an armageddon,” says Mike Bitar, co-founder and CEO of Salinas-based cannabis company Grupo Flor. Grupo Flor’s East of Eden dispensary chain recently closed its Moss Landing location; while the chain still has four locations open, Bitar says, “We’ll be lucky to have maybe two [open stores] by the end of the year.” Grupo Floor laid off 120 employees this spring and cut back operations at its Salinas processing facility, he adds. “Financially, it’s just hard—there’s no capital, vendors aren’t paying [each other], people are behind on taxes and rent. The whole industry is imploding,” Bitar says. “I’m getting calls once a week where operators are saying, ‘Here are my keys, take over my dispensary.’” The City of Marina needs a new city hall. It also needs a new fire station and ladder truck. And a new police station. But given that the cost to do all of that is an estimated $52 million, the City cannot afford to build them. On Tuesday, Sept. 12, the Marina City Council was set to discuss a matter to address that: directing city staff in an effort to initiate a ballot measure—a bond paid for by Marina residents, essentially a tax of $29 per month for every household—that would pay for it. Central to the discussion was how to sell it to the public. Locke Paddon Park, which is owned the Monterey Peninsula Regional Park District, was identified as an optimal civic center location in a city report. There was pushback from councilmebers who thought a more central location would be better, but City Manager Layne Long said that identifying a location wasn’t necessary for a ballot measure to secure funding. The City has hired a consulting firm to research the feasibility of floating a bond measure to pay for it all, as well how to communicate it to the public. A ballot measure would require a two-thirds vote to pass. Per a city report from 2022, the estimated cost to build a new city hall is $20 million. An adjacent police headquarters is estimated to cost $12 million and a new fire station in the north of the city near Vince Dimaggio Park is in the $10 million to $15 million range. The aim is not for bells and whistles: Marina’s current city hall is built in portable buildings that were not intended to be used long-term, but that are over 45 years old and are not ADA-compliant. The proposed new fire department in the north of the city is needed for adequate response times for the Marina Station development. There was no vote taken on Sept. 12. Long told Mayor Bruce Delgado he had adequate direction from the council to proceed, after some councilmembers made cutting comments about the state of city facilities. Dead Leaf Dispensary closures highlight the cannabis industry’s ongoing struggles. By Rey Mashayekhi news In Park The City of Monterey is celebrating international PARK(ing) day by taking over parking spaces downtown with a range of resources. Meet officials from the Sports Center, Public Library, Police Department and more. Giveaways include free tree seedlings, library cards and, of course, a chance to envision a downtown without parked cars. 10am-2:30pm Friday, Sept. 15. 400 block of Alvarado Street, Monterey. Free. 646-3860, monterey.org. Home Team Seaside’s Homeless Commission hosts an event to listen to residents who are experiencing homelessness and consider possible solutions they can offer. 5:30-7pm Tuesday, Sept 19. Oldemeyer Center, 986 Hilby Ave., Seaside. Free. 899-6800, ci.seaside.ca.us/643/ Homeless-Commission. Charge Up If you have questions or concerns about lithium ion battery storage in Moss Landing, this town hall meeting is a chance to learn more. Both Vistra and Pacific Gas & Electric operate battery facilities here; each will have representatives available, along with local public safety agencies, as well as District 2 County Supervisor Glenn Church’s office. 6:30-8:30pm Wednesday, Sept. 20. North County Recreation Center, 11261 Crane St., Castroville. Free. To submit a question in advance, email District2@ co.monterey.ca.us with subject line “Moss Landing BESS community question.” For more, call 755-5022. Active seniors The Soledad Recreation Department has started a senior traveling club. Participants will explore Monterey County,visiting museums, gardens and more. Outings include transportation, a light lunch and guided tours for small groups. Bilingual, in Spanish and English. Registration closes Friday Sept. 15. First outing takes place 11am-6pm Friday, Sept. 22 to a location TBD. Register at Soledad Community Center, 560 Walker Drive, Soledad. $20 per outing; must be 55 or older. 223-5250, soledadparksandrec.com/seniors. Work Force Young people looking for a job opportunity can join a Green Cadre program from the Monterey County Workforce Development Board. Participants learn new skills while working in community gardens, food distribution, healthy eating and more, earning $18/hour. Registration closes Friday, Sept. 22; the next program runs Oct. 2-Dec. 1. For ages 18-24. MCWDB-greencadre@ co.monterey.ca.us, bit.ly/greencadreoct2023. Hall Pass Marina’s buildings are in bad shape. It will likely take a bond measure to change that. By David Schmalz Urbn Leaf’s decision to close its Seaside store leaves the cannabis brand with eight California dispensaries. Industry sources believe more local dispensaries will follow suit. e-mail: publiccitizen@mcweekly.com TOOLBOX “Nobody is going to survive this.” Daniel Dreifuss
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