Government-mandated audit of city’s cannabis regulators leads to licensing delays for marijuana businesses.
For prospective cannabis businesses in Los Angeles, the government-ordered audit means another wave of uncertainty and lost money. Unfortunately, this newest setback is just another obstacle causing licensing delays for marijuana businesses.
Already, hundreds of entrepreneurs have waited months to learn whether they will be allowed to launch legal cannabis companies. Sadly, many have reported losing tens of thousands of dollars paying for rent and other start-up fees for marijuana shops that they have not gotten official approval to open. Meanwhile, illegal marijuana shops continue to perform well in the city.
The licensing delays will continue as a result of the mayor’s decision for a third-party audit of the L.A. Department of Cannabis Regulation (DCR). Until the audit is completed, no permits will be issued. Experts predict that this additional delay will cause many businesses and investors to leave the L.A. cannabis market.
To make matters worse, very little is known about the audit. Adam Spiker, executive director of the Southern California Coalition (SCC), an L.A. based marijuana trade group, points out, “There’s nothing to report on who’s doing it and when, let alone what the results are going to be.”
Spiker also goes on to explain that the city has demonstrated little political will to deal with the licensing problem. He also expressed his hope that the DCR will at least sign off on a regulatory change that allows license applicants to get out of leases they signed for businesses they have not been permitted to open, especially because having a shop location is a prerequisite for license approval.
This is what you need to know about Los Angeles’s latest round of licensing delays for marijuana businesses. Interested in staying up to date with the latest commercial real estate news? If so, then contact the experts at California Commercial Realty Advisors, Inc. Our dedicated team is ready to assist you with all your real estate needs today.