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Two years ago, in September , real estate broker Paula Turner was eyeing retirement, having spent 35 years in the business, and having weathered the pre- and post-recession markets. Like many industrial developments, it had been far from attractive as a business prospect. It was an old renewable energy facility that had garnered no bids in a tax sale only a few months earlier. Thank you, Mary Jane. In the throes of financial crisis, Desert Hot Springs sent two ballot measures to voters in November seeking approval on taxes for marijuana cultivation and dispensaries, respectively. Both overwhelmingly passed. Building No. But by the end of this year, building No. Ultimately, the ,square-foot marijuana cultivation complex proposes to lease to more than a dozen tenants. The first tenant is former pastor-turned-medical-marijuana-proponent Dan Osborne of Clonenetics Laboratories. Feinstein giddily talks about hosting a ribbon-cutting ceremony, with, he hopes, the mayor and representatives of the chamber of commerce. Their vision is shared by the entrepreneurs who have forged an unusual relationship with city leaders that would have been unthinkable only a few years ago. The economic migration has set off a land boom and wave of speculative business proposals that invite comparison to the dot-com boom … and the similar potential to bust. Other cities in the valley have followed; Cathedral City and Coachella are proposing a cultivation tax on the November ballot. Most valley cities are involved in some facet of the industry and the others are watching to see what happens. One thing, however, is certain: Whatever extra money pot cultivation produces will benefit parks, amenities, streets, and general services, he says. Matas agrees that commercial marijuana is potentially the game-changer Desert Hot Springs has been looking for. One challenge the upstart industry faces is a sufficient, reliable supply of power. One cultivation company will require 80 times more air-conditioning than the average three-bedroom home. The city claims one of the lowest income-per-capita rates in the U. And then there are roads and public safety facilities to improve. A middle-aged man with skin reddened by a relentlessly torching sky, Mayrhofen, a medical marijuana proponent, has lived in Desert Hot Springs since the early s. As a horticulture and turf grass management student at College of the Desert in Palm Desert, Mayrhofen, some people might say, lends a strangely consummate perspective to the city of roughly 28, But what have we done? In a thrift store off Pierson Boulevard in the heart of old town, Cali Davis, 26, is shopping with her mother. Pot cultivation, she surmises, could draw investment and possibly pique the interest of more outsiders. About 8, residents work outside the city, and 60 cents of every dollar locals make are spent somewhere other than here, according to Matas. Top and above: Plans to produce 6, annual pounds of cannabis are underway for a building now cultivating only a tumbleweed. Desert scrub that sold for four figures in the s now goes for times as much. But after five years of marijuana cultivation, according to conservative estimates, Desert Hot Springs will get a monumental assist to its budget. Due to a 20 percent hiring provision as part of the city ordinance, there will be enough decent-paying jobs for locals. Hypothetically, this significantly could improve an unemployment rate that hovers between 7 and 9 percent. By the middle of summer, the city had approved close to 2 million square feet of cultivation with 13 permitted sites in various stages of development. The sentiment is shared by Anthony Lee, a principal with SunGrow Collective, a dispensary that also operates in the city. Jason Elsasser, formerly in the real estate and construction industry, witnessed his company slide into financial ruin during the recession. That statute protected patients and primary caregivers from prosecution. Downtown Desert Hot Springs is poised for a makeover when the pot crop comes in. It was raw land, lacking even power. Paula Turner, who works for Palm Desert-based Desert Pacific Properties, is in overdrive, and somewhat reluctantly stopped contemplating retirement in this surprisingly robust market. Then, in November , a client called to say it needed another parcel, prompting her to review what showed itself to be a frenzied market in which bidding wars raged as soon as properties were listed. Businesses and entrepreneurs are mulling how to revamp existing services to meet pending needs for the nascent industry. A few proposals have asked the city to envision a fusion of the pot and hospitality sectors, the two soon-to-be cornerstones here. Think smoking a joint while soaking in a hot tub. People who engage in a business formerly perceived as fringe, if not illegal, are now members of the chamber. She emphasizes sustainability as key in weeding out the booms from the busts, requiring cultivators to polish their business model. Cultivators say startup costs were far less expensive in the gray market, the launch window much shorter, and the hurdles lower. But the scale was smaller and the omnipresent fear of being thrown in jail by federal authorities marijuana remains federally illegal , was compounded by local jurisdictions that set their own rules in addition to state regulations. Thirty-four years ago, Dale Mondary was a young cop in ultra-conservative Kansas, where marijuana use was not tolerated. About a year ago, he accepted the top law enforcement role in DHS, and as the new police chief, has found himself thrust into a culture far different from the one when he walked a beat in the early s. Today, he reflects on the oddity of meeting with cultivators to review complex security plans, including safes and armed guards, and says the contact with professionals in the industry has helped to overcome his prejudices. Last year, Gov. Jerry Brown signed a trio of bills regulating the medical pot industry. But by being first, by rolling the dice as pioneers — a scenario one cultivator likened to the feeling of Bugsy Siegel in the s surveying swaths of desert that grew into the Las Vegas we know today — the city has also been first to weather unprecedented challenges. Edison has consulted with cultivators and city officials. The core concern is that connecting large-scale development to the power grid should not disrupt existing customers. Canndescent, a company singularly focused on cultivating the ultimate premium flower, will require tons of air conditioning, or 80 times more than the average three-bedroom home, in its 9,square-foot facility. CEO Adrian Sedlin says that it will be the first to harvest in the city and, to the best of his knowledge, the first company operating with a city-issued conditional use permit to grow marijuana commercially in all of California. Staying power will depend on more than just capital; it will require a sophisticated, top-down organization just like any other business development initiative. It will require being nimble as regulations pivot. Although attitudes about the value of marijuana are changing, the risk of the association with crime has kept big corporations at bay, giving opportunity to the so-called little guy. A man crew pounds away at the Canndescent site; the buzz of drills through dry wall, the heat stagnating in the corners. And then a woman walks on-site, navigating through the echoes of construction, seeking out a tire shop she thought might be here. At first wary, Wilson pauses, then politely explains this is a pot cultivation facility now. On the Fringe of Prosperity. Land Grab. No Bones, No Meat. Following the Leader.
Thar She Grows!
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