There is no material benefit and a huge cost for Manitou Springs in voting for the marijuana ballot initiative.
The proponents (Epic Remedy and PMF Co.) have colluded in a sophisticated stealth attack on our community for their self-serving interest. Nowhere is this more evident than in their Dec. 24 flier content and mid-holiday timing, and their drip-feed of key information.
The Higginbotham Flats location was unknown to citizens solicited for the ballot measure petition. Citizens learned that Christmas Eve.
The proponent’s executives attended the Jan. 4 City Council meeting, yet declined to address council during public comment on the resolution urging a no vote. The next day, the proponents announced via social media, robo texts and ads their prior agreement to pass rights for a new store from one to the other.
All the so-called benefits the proponents have flaunted are false or misleading. They reflect no depth of understanding of the relevant MJ marketplace, city finances and transparency, the Urban Renewal Authority as well as Higginbotham Flats’ strategic importance.
Ninety-five percent of the existing MJ stores’ sales is from tourists and El Paso County residents. Less than 5 percent is derived from Manitou residents.
An independent price survey conducted 30 months ago determined local recreational marijuana prices are 5 to 10 percent above those in Denver and Pueblo. That is a small premium for a discretionary recreational product compared to the time and cost of travel.
A third MJ store may not significantly increase tax revenues.
Neither Maggie’s Farm nor Emerald Fields are consistently open their full allowable hours and, most of the time, operate well below peak capacity. This suggests customer demand is fully satisfied.
Combined with the pricing, the potential of increasing sales and tax revenue with a third store located five minutes and less than three miles away the opportunity for increased tax revenue is minimal.
However, the just-enacted increase in the local MJ tax from 6 to 10 percent may increase such revenues 60 percent from our two existing stores.
By state law, MJ tax revenue is lumped in with the general fund’s sales tax collections. Under the same law, a third store would allow reporting of the combined total tax revenue from three stores.
This level of transparency is highly academic from a resident’s point of view as it is the marketplace — actual customers — not residents who determines sales and in turn tax revenues.
Transparency that does matter is how the money is spent. This is under government and resident control.
Manitou has made huge strides in spending transparency, which can be witnessed by the 200-page 2020 budget and 100-page audit readily available on the city website and attested to by council’s and public engagement in preparing and reviewing both. Enough so that only one resident attended this year’s community 2022 budget presentation.
The proponents totally misrepresent the financial relationship between city and URA finances. The state collects all sales taxes and sends the city its share. In turn, the city sends the URA its share.
During the uncertainty of the Cog Railway closure, the city suspended payments to the URA, but has since then restored them.
Today, Higginbotham has several parcels zoned as open space and park land. The Parks and Recreation Advisory Board is developing a master plan for the area.
Most likely, it will include shared use for current purposes such as emergency operations (fire, flood, accident) as well as potentially a new community garden with water taps, city composting center, playground, outdoor education and parking.
In the months ahead, allow City Hall and interested residents to refresh what was done eight years ago. Evaluate the pros and cons of allowing a third store, including an updated independent assessment of the relationship of MJ sales and tax revenues, prices and store capacities.
If a third store seems warranted, allow council to establish a process to allow a new one. Place it on the regular ballot in November 2022, allowing for full community discussion.
The MJ industry is consolidating. Larger, vertically integrated enterprises are buying out smaller stores.
On Jan. 18, Emerald Fields will ask council for permission to sell its operations for $23 million. Nothing will be lost by waiting nine months, thus enabling a thorough review of the situation. The entrepreneurs will be there to open a third store should that be the will of the people in November.
Please take the time to vote and return your ballot on time. As Ms. Carnick suggested in last week’s letter to the editor, the proponents may be banking on low voter turnout to facilitate their self-serving interests.
Voting no is the most prudent choice at this time.
Todd is a former City Council liaison to the local marijuana industry.