The first licensed dispensary in Santa Monica, California opens years after approval

Though delivery services and dozens of dispensaries are open nearby, the first licensed medical cannabis dispensary opens in Santa Monica, California, just steps away in the Venice area.

Despite Santa Monica being right in the middle of “America’s largest legal weed market,” McReynolds reports that the city of Santa Monica is “severely restricting” the number of retail licenses for medical cannabis. Currently, the city only has two retail licenses for medicinal cannabis.

The Santa Monica Daily Press reports that the Local Cannabis Company, owned by Massachusetts-based Calyx Peak, will be the city’s first licensed dispensary. It is also the first time Calyx Peak has opened a branch west of Kansas City, Missouri.

The first cannabis dispensary in Santa Monica, California opened last week, six years after the application was made in December 2017. Approval was granted over a year ago in October 2021.

“It’s been six years since they made the decision and look where the cannabis market is at right now,” said Erin Carachilo, CEO of Calyx Peak. “And not many people have a health insurance card because they no longer need it. Since we opened, we’ve only had a conversion rate of about 20 percent. I think it’s closer to 10 percent but you can see how far away it is because people just don’t want to wait.”

Harvest of Santa Monica – a second dispensary planned at 1416 Wilshire Blvd – was also approved in January 2022 but has not yet taken shape.

Santa Monica and cannabis

The City of Santa Monica currently allows medicinal dispensaries with limited on-site cultivation and light manufacturing operations that do not require volatile solvents. The production, testing, distribution and independent commercial cultivation of medicinal cannabis are not permitted.

Last November, Santa Monica voters, along with dozens of other California communities, voted 66.79% “yes” to the HMP measure to introduce taxes on non-medical cannabis retailers, medical retailers, and all other licensed cannabis businesses. Cannabis-related policies in Claremont, Cudahy, Lynwood and South El Monte were also passed.

Santa Monica’s Measure HMP is unique in that it includes retailers of products that contain all psychoactive cannabinoids — that is, cannabinoids derived from industrial hemp.

But city lawmakers are currently debating the possibility of market growth. One problem, however, is that many medicinal cannabis patients in California simply no longer receive medicinal cannabis recommendations because the same products are legal for adults 21 and older with no annual fee.

“We opened the doors so that’s a start, then we’ll see how we can change that. We should be able to do both medicinal and regular sales. Medical customers should have access to medicines and not have to pay the same taxes, I am 100 percent convinced of that,” said Carachilo.

“Most businesses should turn over five to nine million a year, that’s normal. This area should easily bring in 10 million, considering how many visitors come to Santa Monica. And that’s the other thing, because a health insurance card is required and reserved for California residents only. I can’t shop here because I don’t have a California license or ID.”

Howard Keum, Calyx Peak’s chief corporate development officer, told the Santa Monica Daily Press, “Santa Monica is still working on the outdated medical-only rules.” He added that it’s about time for the city to update and switch to adult cannabis use options .

The local cannabis company is located at 925 Wilshire Blvd. The official opening of the pharmacy will take place on Saturday 24 June.