Calexico weighs expanding pot business

CALEXICO — A majority of the City Council on Wednesday voted to consider the expansion of cannabis-related commercial activities within the city and host a community forum to seek the public’s input.

Currently, the city’s ordinance regulating the cannabis industry allows for the cultivation and manufacture of cannabis-related products.

The possible expansion of cannabis-related commercial activities could potentially include dispensary and delivery operations, said Councilman Bill Hodge.

Councilwoman Maritza Hurtado cast the sole vote against the resolution, while Councilman Armando Real was absent from Wednesday’s meeting.

Hurtado said the resolution authorizing the possible expansion of cannabis-related commercial activities was akin to putting the cart before the horse.

The city’s ad hoc committee that recommended the resolution had failed to adequately weigh the community’s questions and concerns, she said.

She also reminded her fellow council members of the potential risk of federal law enforcement actions that such cannabis-related commercial operations would face.

“The community, in my view, is not ready for this,” Hurtado said.

Mayor Pro Tem Jesus Eduardo Escobar agreed the public’s input needs to be sought, yet also acknowledged the potential tax revenues that such expanded commercial activities could yield.

“I think it’s important that we realize Calexico has to capitalize on this sooner than later,” Escobar said.

The city’s ordinance regulating the cannabis industry requires that such activities be restricted to a designated cannabis overlay zone.

The city’s potential expansion of cannabis-related commercial activities comes as good news for Carlos Fonseca, who operates the delivery-only Three Greens cannabis collective from Calexico.

The possible expansion would provide legitimacy for local cannabis delivery operators who are legally permitted by the state, but not by the city.

“That’s our ticket to having the city letting us operate,” Fonseca said on Tuesday.

On Wednesday, the council’s agenda had also initially contained a resolution that, if approved, would have placed a proposed cannabis tax measure on the November ballot for potential voter approval.

If approved by voters, the tax measure would impose a 15 percent tax on all cannabis businesses within the city’s overlay zone, as well as establish a $20-persquare-foot tax on cannabis cultivation and processing businesses.

That item was ultimately removed from the agenda and will be brought back at a future date, officials said.