Modesto cannabis dispensary Peoples Remedy faces $232,000 in fees from Stanislaus County.
Despite the major debt owed to the county, dispensary owner Mark Ponticelli may have a path forward with the local government to avoid having the development agreement canceled.
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The big picture: Last week the Stanislaus County Planning Commission recommended to the Board of Supervisors to consider new terms to Ponticelli’s fee debt.
- That recommendation comes ahead of a possible November ballot measure to implement an eight percent tax on gross cannabis sales in Stanislaus County.
- The tax would replace the fees that Peoples Remedy owes to the county, axing the current quarterly fee system.
- The Board of Supervisors will decide on Tuesday whether or not to place the tax measure on the November ballot.
Driving the news: Last week the Planning Commission considered canceling Peoples Remedy development agreement, but expressed concern that illegal cannabis sellers could see a boost without a legal market in place locally.
- Ponticelli told the Planning Commission that he has paid nearly $2.3 million in fees since 2020.
- The original fee was set at $600,000 or eight percent of gross sales, but sales have been declining.
- In early 2022, the county agreed to lower the minimum fee to $331,270 annually due to poor market conditions and competition with lower-cost illegal marijuana.
- Ponticelli offered a payment plan to pay down his debt, but it was rejected by county staff.
