Several months after a string of cannabis businesses opened in Jo Daviess County, owners report brisk sales, although local governments cannot reveal exactly how much the cities are making in tax revenue from their new tenants.
Verilife, a recreational marijuana dispensary in Galena, opened in March. The business, located at 115 Perry St., sells cannabis in a variety of forms, including flowers, chews and vapes.
Becky Morgan Sawvell, general manager of the Galena dispensary, said business has been steady, with 400 to 800 transactions per day. The business has hired seven additional employees since March.
As the state continues to distribute new dispensary licenses, Morgan Sawvell looks forward to an increased acceptance of the industry.
“I see it continuing to develop into this wonderful thing where (purchasing cannabis) is going to be just as normal as buying a Pepsi or grabbing a cocktail with friends,” she said.
Galena City Administrator Mark Moran said the city has collected three months of tax revenue from Verilife, including regular sales tax and an additional 3% excise tax enacted by the City Council.
However, state law prohibits the city from disclosing cannabis tax revenue, according to Moran, because Verilife is the only dispensary operating in the city. If the city released the revenue, citizens could calculate Verilife’s total sales, violating the company’s right to keep its sales private.
“This has created a real dilemma for not just Galena, but for other cities in Illinois,” Moran said. “How do we book this revenue (and) how do we spend the revenue if we can’t disclose that figure?”
The only person privy to Galena’s cannabis tax figures is the city’s finance director, Cindy Pepple.
Moran said several city staff members, including himself, the mayor and the city clerk, are currently pursuing a confidentiality agreement with the Illinois Department of Revenue which would give them access to the information.
Moran said a municipality can also ask the business in question if it would allow the revenue to be disclosed to the public.
“We have made that inquiry with (Verilife), and they are considering it now, but we don’t have a final answer,” he said.
He said once the city is authorized to disclose the cannabis tax revenue, it plans to report it on the city’s website each month.
In East Dubuque, River Bluff Collective opened at 673 Sinsinawa Ave. in March. The business sells locally grown and produced items derived from cannabidiol — a compound found in cannabis — such as lotions, tinctures and bath bombs.
Brothers Joe and D.J. Loeffelholz own the business with their sister, Ali Gansemer. According to D.J. Loeffelholz, sales have been strong, with several thousand transactions per month and a growing number of repeat customers.
River Bluff currently employs 15 people and hopes to add 15 to 20 more in the next three to five months.
Although the store does not sell recreational cannabis, the siblings recently received a license to open a dispensary in the Chicago area and continue to pursue a similar license for the East Dubuque area.
D.J. Loeffelholz also shared that they hope to open a “commercial-scale hemp growing facility” in Jo Daviess County and give tours of that facility.
“We want to be one of the people that can grow the best cannabis, sell the best cannabis, and educate people on what the difference is,” he said.
The county’s newest dispensary, The Dispensary East Dubuque, opened at 1709 Illinois 35 North in May.
Jeff Soenksen, director of retail operations, said business has been “fantastic.”
“Everyone at the city welcomed us with open arms, and they’ve just been a complete pleasure to deal with,” he said. “Same with the customers — we are only getting busier.”
Soenksen said the business sees between 300 to 500 transactions per day, with the majority of customers hailing from Iowa and Wisconsin. The business has hired four additional employees since opening, bringing its total to 17.
Soenksen hopes the growing number of dispensaries will lead to a more competitive cannabis market and more affordable products.
“There’s always room for more businesses,” he said. “I welcome the expansion of the industry — it’s good for everyone.”
The City of East Dubuque has not yet received tax revenue from sales at The Dispensary. City Manager Loras Herrig estimated the first check will arrive in September — but the city, like Galena, will not be able to disclose the amount.
Moran and Herrig have been told that the Illinois Municipal League and the state Legislature are currently seeking a solution to the difficulty.
In the meantime, city officials are pleased with the other indications of the industry’s local impacts, such as a growing workforce and an influx of visitors.
“I have talked to people from Iowa who are driving over to purchase the (cannabis) products,” Herrig said. “It gives people a reason to come to East Dubuque. If they come here for one product, hopefully they buy other products.”
Recent Comments