The issue:
Multi-billion-dollar industry gets no respect.
What we think:
It’s time to treat rec marijuana as legitimate.
Tell us what you think:
Send us an email at editorial@csbj.com.
It’s time for Colorado Springs to bring recreational marijuana retailers in from the cold.
Since retail marijuana sales were legalized in 2012, our city remains one of the few in Colorado that prohibit recreational marijuana sales and the arguments for lifting that prohibition have often centered around money: We’re missing out on it.
While city council stares down a tax crisis, struggling for ways to pay for police, roads, wildfire mitigation, mental health, affordable housing, Colorado Springs goes without tens of millions of recreational marijuana sales tax dollars each year. Recreational users — and their money — head to Denver, Pueblo or just down the road to Manitou Springs, where two rec retail locations see skyhigh demand.
Colorado Department of Revenue data show total annual marijuana sales (medical and recreational) climbed from $68 million in 2014 to more than $2.22 billion in 2021, and the pandemic accelerated demand.
There’s more to the money argument: A 2021 study by Clever Real Estate found cities with more dispensaries are positively correlated with higher home values, suggesting legalization boosts jobs and economic growth. More relevant to the Springs: Home values increased $22,090 more in cities with recreational dispensaries, compared to home values in cities where recreational marijuana is legal but dispensaries are not available.
“There is strong evidence that legalization drives higher property values — particularly in areas that allow recreational marijuana and welcome retail dispensaries,” the report says. “These investments can improve quality of life in communities across the nation while attracting tourism and new residents who drive real estate demand.”
Mayor John Suthers has resisted recreational marijuana retail, arguing it could hurt the city’s relationship with its Army post and Air Force bases. But the military isn’t going anywhere. As Schuyler Foerster argues in Colorado Newsline, “marijuana already is legal in Colorado Springs, through the medical channel, and the city’s strong military relationships have not been degraded. Other cities with large military installations and legal recreational cannabis, such as San Diego, have not experienced an exodus of military personnel or installations.” Moreover, the Army’s substance abuse prevention chief told KERA News the Army has not seen any significant uptick in marijuana violations since recreational marijuana has been legal in Colorado.
Regulation is tight — much tighter than it is for alcohol. Colorado has about 3,000 cannabis businesses with about 43,000 employees, according to the Denver Gazette, and every one of those businesses and employees must be licensed, with renewals every 1-2 years.
While it’s still illegal federally, recreational marijuana is now legal in 19 states and Washington, D.C.; medical marijuana is legal in 37 states plus D.C. Rep. Ed Perlmutter (D-CO) is pushing hard on the SAFE Banking Act, which would protect banks that work with state-legal marijuana businesses. Groups like Good Tree Capital are building equitable models for cannabis business lending, and tech companies like POSaBIT are innovating in compliant payment processing and point of sale systems — recreational marijuana money is moving into the mainstream.
But this is much more than just a question of money or “morals.” Under Colorado law, the question is long settled: It’s legal to buy and use recreational marijuana. But our city is treating recreational marijuana retailers like second-class businesses, and recreational marijuana users like second-class citizens. Recreational marijuana retailers are legitimate businesses with contributions to make to the business community. They’re bending over backwards to keep up with constantly changing regulations, and daunting audits and fees. They want to join chambers of commerce; they’re proud to contribute to services across the state. Dispensaries already pay one of the highest sales tax rates on any product sold in Colorado, helping fund (let’s take Denver as an example) after-school programs, youth prevention programs and affordable housing. It’s time to recognize the value these businesses bring; allow them to meet the legitimate and legal demand from consumers in our city; and to build a better Colorado Springs by keeping those tax dollars local.
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