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22 Oct 2019

Cannabis Concerns: Marijuana Has Moved Into Downtown Palm Springs—and Some Neighboring Businesses Are Suffering as a Result

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Harvest House of Cannabis recently opened at 312 N. Palm Canyon Drive—and some neighboring businesses say odor is an issue. Harvest House of Cannabis recently opened at 312 N. Palm Canyon Drive—and some neighboring businesses say odor is an issue. Kevin Fitzgerald

Casey Bahr, the owner of Revive Wellness Center, Spa and Salon, was notified by his landlord last year that his business would have to vacate the spaces Revive had occupied for 15 years.

Why? A new cannabis dispensary and lounge was moving into the same building—and that meant Revive would need to leave its home at 353 S. Palm Canyon Drive. Bahr had four weeks to find a new location capable of housing the multi-faceted operation he and his team had built since 2003.

“We had about four weeks to vacate, and during that time, it took us every minute to go through all the things that had accumulated, to clean things out and get ready to vacate,” Bahr said. “According to California law, you cannot have a medical practice in the same contiguous space as a salon or a spa. Since we had three separate areas (at 353 S. Palm Canyon), we were able to have the two separate businesses. But (when we were searching for a new location), there wasn’t a suitable space to accommodate both businesses in proximity to each other—so we just had to close the salon-spa, because we had to maintain the patient care from the medical practice.”

That closure meant a loss of income for Bahr—and a loss of jobs for his employees.

“All of our roughly 12 employees (on the spa and salon side) had to find other places to work, and a lot of them had been with us for a number of years,” Bahr said. “It was a big financial loss to us. We bought the business for $320,000 in 2003, and we had done about $100,000 worth of improvements in that facility. We had to leave it all. The furnishings, the cabinetry and the flooring can’t be taken with you. So, from an asset point of view, it was close to a half-million dollars that we lost. Also, the financial income from that business disappeared.”

What did the city of Palm Springs do to help out Revive?

“They were absent—completely absent, and there were no discussions with us, as the current tenants, regarding the new pot business,” said Bahr, who moved Revive’s medical practice to Kaptur Plaza at 650 E. Tahquitz Canyon Way. “I don’t know that it’s really their purview to worry about that; they just kind of let the chips fall where they may. But from what I’ve heard, they weren’t considering the impact on (existing) businesses when they took an interest in promoting pot businesses in the city of Palm Springs. Everywhere they allow those places to exist, the impact on the businesses continues today.”

Veronica Goedhart is the director of the Palm Springs Department of Special Program Compliance, which oversees cannabis-related businesses in the city. She said the city has had to make multiple changes to its regulations as the new legal-marijuana business has developed.

“There’s an evolution going on at the state and federal level, as the (industry) is so young and in its infancy,” Goedhart said. “It’s constantly evolving and changing. We saw three sets of state regulations before the final regulations were introduced. We have to make adjustments to make sure that all of our laws are in symmetry with what the state has. There are potentially more changes to come at the federal level, too.”

Amid all the changes, Goedhart said she has made a concerted outreach effort on the city’s behalf.

“We are working with our ONE-PS (coalition of Palm Springs neighborhood groups), and I’ve spoken with them directly,” she said. “Also, I’ve spoken to the (Main Street) Palm Springs merchant association with regard to the impact of the cannabis businesses on our community. We’ve been increasing our communication with them and listening to them and considering their feedback. I think that before that communication was taking place, (there was a) fear of the unknown. But they seem to be very receptive to the communication, and they are very receptive to the changes that will be coming forward with planning and with, potentially, a ‘green zone’ where we can direct cannabis cultivation to eliminate it from being so close to the city.”

However, with several marijuana businesses open in downtown Palm Springs—and more coming—some neighboring businesses have indeed been having issues, especially regarding odor.

I visited a number of shops situated adjacent to the Coachella Valley Green Dragon dispensary, in the former Revive building at 353 S. Palm Canyon Drive. Most of the people in the businesses (other than, of course, Revive) near Coachella Valley Green Dragon—a dispensary which will soon also include a lounge—said the cannabis business has had no noticeable negative impact on them.

Meanwhile, up the street at the recently opened Harvest House of Cannabis dispensary at 312 N. Palm Canyon Drive, staff at some of the surrounding stores and offices expressed uneasiness—and the smell of marijuana was definitely noticeable inside one of them. Most of the staff members and business owners did not want to speak for attribution, but said the odor was worst in the mornings and would dissipate as the day went along. Others commented that the odor was present sometimes on the sidewalk out front. The most positive response came from Scott Jones, vice president of Imagine It! Media, who went on record to say, “Harvest HOC has been a good neighbor—so far.”

When people at nearby businesses were asked if the city had been in touch with them regarding the arrival of Harvest HOC, I was told emphatically that there had been no communication at all. Also, it was pointed out that if an entrepreneur wants to sell alcohol—even just beer and wine—a sign must be posted on the front door or window of the business for 30 days, as per California’s Alcoholic Beverage Control organization. For cannabis, that is not required.

Goedhart conceded that the city has learned some lessons as cannabis businesses have moved into downtown Palm Springs.

“One thing we hadn’t realized was that with the (cannabis) businesses going into existing buildings, we had to make sure that they were taking precautions for odor control,” Goedhart said. “We had to make sure that all of our businesses are operating with plans that ensure there is no odor impact on the surrounding areas. We’re going to be introducing some new laws with regard to odor-control violations, and we’ll be implementing penalties for businesses that aren’t compliant. We’re actively working to ensure that any problems that could arise are addressed even before they happen. We’re working really hard with our community, and we’re working with our cannabis-business owners who are actually very responsive, very open and very helpful.”

Bahr, however, expressed concern about other existing downtown business owners as more marijuana businesses move in.

“It cost us a lot—and it sounds like there are other businesses that are experiencing the same result as we did,” he said. “It costs a lot to set up a building.”

4 comments

  • Comment Link Shilo Herrling Wednesday, 23 October 2019 18:40 posted by Shilo Herrling

    “One thing we hadn’t realized was that with the (cannabis) businesses going into existing buildings, we had to make sure that they were taking precautions for odor control,” Goedhart said..."

    I live in Cathedral City, and our businesses have faced the same odor issues as Palm Springs, and the issues have been HIGHLY publicized for at least two years. I can't believe anyone can actually say they weren't aware of potential odor issues with pot businesses...two years ago we had highly-publicized instances of long-time family carpet businesses having to relocate because of concerns that pot odors were getting into their carpets and other products. Whether pot businesses (yes, it's so much more efficient to call them that) turn out to be good or bad for cities and economies, the fact remains that it is disingenuous to pretend such concerns are a surprise.

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  • Comment Link Lauren Bullard Wednesday, 23 October 2019 15:04 posted by Lauren Bullard

    A lot of your facts about state and local regulations are incorrect. Also, Harvest had a sign posted outside it's door for over six months before it's soft opening. The neighborhood was well aware of their presence and no tenants were pushed out of the building at 312 Palm Canyon Dr. This is some pretty lazy reporting. The fact alone that you interviewed people who still refer to cannabis dispensaries as "pot businesses" just goes to show a lack of knowledge all around.

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  • Comment Link Ryan Wednesday, 23 October 2019 12:31 posted by Ryan

    While I feel for the Salon, that part of this article has nothing to do with cannabis. Whether a dispensary or a jewelry store, another business wanted their store front and offered the landlord more. The fault is with a greedy landlord (possibly) and, frankly, the business owner who spent $100K on a LEASED space that he could be evicted from with one months notice. The new tenant being a cannabis business has nothing to do with that.

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  • Comment Link t pyper Tuesday, 22 October 2019 16:20 posted by t pyper

    Totally biased and one sided article from start to finnish. This "news story" should have been filed in the opinion section since it was purely written with the author's viewpoint evident front and center!

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