Sacramento Business Group Wants Cap On Cannabis Companies

SACRAMENTO (CBS13) — A Sacramento business association is asking the city council to define how much is too much cannabis business for one area.

Marijuana cultivators are drawn to the Power Inn Road area of District 6. The portion of the city is zoned for commercial operations and has plenty of warehouse space.

But the city has been inundated with applications to open up shop in that area.

"We're in the process of evaluating those proposals right now," said Joe Devlin, Sacramento's cannabis chief.

Currently, 169 businesses have applied for a permit to operate in Sacramento. Of those applications, roughly half or 89 are located in the Power Inn Road portion of District 6.

"I think any community is concerned of an over-saturation of marijuana in an area," said Eric Guerra, District 6 councilman.

He has been outspoken about his concerns regarding the high-density marijuana operations since the beginning.

"It's important that we get the right fit and right amount of this industry so that it doesn't crowd out other existing businesses that have been there for a long time," said Guerra.

He and the Power Inn Alliance, which represents businesses in District 6, are concerned warehouse rents will rise, and existing businesses will be forced out.

"We want to make sure we balance out our current businesses with this new industry that is providing revenue for the city," said Guerra.

In a memo to the city, the Power Inn Alliance also points to environmental, safety, and traffic worries that could accompany the concentration of cannabis businesses. The Alliance is asking the city council to define what too much marijuana for one area is.

"The important thing is that we look at real data and real impacts versus just an arbitrary number," said Guerra.

The city imposed a 30-business cap on dispensaries. It's possible cultivators could also be capped at a certain number, but that decision is up to the council. They'll be discussing the topic at Tuesday's law and legislation meeting.