Hope on The Horizon - LA Takes Steps Toward Implementing Phase 3 of Their Licensing Process
The Los Angeles City Council voted on and passed two cannabis-related proposals yesterday, March 8, 2019.
The first enables them to take a creatively practical approach to shutting down illegal marijuana businesses by shutting off the utilities associated with the unlicensed address. This essentially prevents the business from continuing to operate at any substantial capacity without pursuing licensing as so many LA area cannabis businesses have done.
The second passed with an 11-0 vote and serves as a next-step in the direction of the city's ongoing licensing application process. Although many social equity applications still remain unprocessed, many prospective Los Angeles cannabis businesses have secured real estate, and have been waiting in the wings in order to apply for a license.
"We've seen this process be delayed over and over again" said Southern California cannabis-industry specific real estate broker, Paul Thompson of 420 Real Properties. "We have clients who are doing their best to anticipate the right time to secure real estate, which is required in order to submit an application, but until now have been living in uncertainty."
And, there are many who have been paying rent, sitting on space and "bleeding out" for 2+ years while waiting for phase 3 to come into effect. With fewer than 200 licensed cannabis businesses in Los Angeles right now, phase 3 would enable the largest category of hopeful industry business owners to move forward with the licensing process and eventually open their doors.
For individuals in Southern California who are trying to time this process as efficiently as possible and have yet to fully invest in the pre-application process, it looks like it's time to connect with licensing specialists, secure real estate and prepare your applications.