In recent years, the burgeoning cannabis industry has captured widespread attention, promising economic booms and tax windfalls for local municipalities. Among the pioneers in this industry was ‘High Times’, a renowned brand synonymous with cannabis culture via its magazine publications. However, the recent closure of their pot shops amid the struggling retail pot market underscores broader issues within the industry. The failures of recreational retail pot stores to deliver on promised tax benefits and serious concerns over community safety highlight the complex challenges facing the cannabis market.
‘High Times’, a name long associated with the cannabis movement, ventured into the retail pot market with ‘high’ hopes. However, as the industry matured, challenges have emerged. The closure of their pot shops across California signifies not only their struggle, but broader issues facing retail pot stores. Market saturation, stiff competition from illegal pot sales, and losses due to burglaries and armed robberies have made it difficult for many players to thrive. ‘High Times’ retreat from the retail market serves as a cautionary tale of the failed model of so-called “legalized marijuana sales” and the utter lack of a safe, sustainable business model.
The failure of recreational retail pot stores to deliver on promised tax benefits exacerbates disappointment surrounding the industry. When cannabis legalization initiatives were proposed, proponents touted huge tax revenue as a significant selling point. However, these expectations have fallen way short of expectations. Factors such as black market competition and market saturation are partially responsible. For example, Union City already has TWO operational marijuana stores, but municipal code passed in 2018 allows for an alarming FIFTEEN total marijuana business operations (including cultivation, manufacturing, distribution, testing, and retail sales) within city limits. This kind of saturation has left many other municipalities grappling with budget shortfalls and unfulfilled promises by marijuana retailers. Union City, pushed by Mayor Carol Dutra-Vernaci and council members Scott Sakakihara and Jaime Patiño, is barreling towards the same dangerous path.
Beyond economic concerns, there are also pressing issues regarding community safety associated with recreational retail pot stores. Despite efforts to regulate the industry, concerns persist regarding underage access, impaired driving, and increased violent crime in neighborhoods with pot shops. While proponents argue that legalization would mitigate such issues, the reality has been more nuanced. Instances of diversion to minors, public nuisance complaints and repeated burglaries and armed robberies underscore the challenges of balancing access with public safety. Union City has recently seen both repeated violent burglaries and, in one case, an armed robbery which resulted in a security guard being shot. In Oakland this past January, an undercover police officer was killed while responding to the second burglary of the same marijuana business within four hours.
The closure of ‘High Times’ pot shops amid the struggling retail pot market highlights the complexities and challenges facing the cannabis industry. Moving forward, the Union City council members, industry stakeholders, and communities must work together to address these challenges, ensuring that the legal cannabis market safeguards public health and safety. Regretfully, not only has the industry failed on these points, but city leaders have repeatedly turned a blind-eye to the risks, unfulfilled promises and threat to public safety these businesses pose in residential neighborhoods.
As Supreme Court Justice Louis Brandeis once said: “Crime is contagious. If the government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy.”
