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Canyon Lake sets 6% community benefit rate for commercial cannabis; suspended dispensary owes past-due payments
Summary
The City Council voted unanimously to set a uniform 6% community benefit rate on gross revenues for commercial cannabis businesses. The move is intended to make local dispensaries financially sustainable; one previously permitted shop, Culture Cannabis Club, remains suspended and owes payments calculated at the earlier, higher rate.
The Canyon Lake City Council on a unanimous roll call adopted a resolution authorizing the city manager to amend community benefit agreements so commercial cannabis businesses pay 6% of gross revenues to the city.
Council members said the change is intended to make local cannabis retail financially sustainable while preserving the city’s ability to collect what businesses already owe. City Manager Aaron Brown and the city attorney outlined the history of the city’s cannabis permits, the financial shortfall at one permit holder and the practical reasons staff recommends a 6% uniform rate.
Brown told the council the first permit holder, Culture Cannabis Club, had projected annual gross revenue of about $15.29 million, with a promised community contribution equal to 15% of gross revenues or $1.2 million annually (whichever was greater). Brown said…
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