Worcester Business Journal

12 Worcester Business Journal | May 13, 2019 | wbjournal.com Limited future States like Oregon & Colorado show the economic impact of legal marijuana is limited, but Central Mass. appears to have struck the right balance F O C U S T H E B U S I N E S S O F M A R I J U A N A BY GRANT WELKER Worcester Business Journal News Editor Number of Stores per City stores 10,000 residents Population *Worcester can license up to 15 cannabis shops but only one is currently open. Notes: Oregon and Washington totals are approximate. Washington locations include those also licensed to sell medicinal marijuana. Per-capita data is based on 2017 population totals. Souce: Colorado Department of Revenue, Oregon Liquor Control Commission, California Bureau of Cannabis Control, Washington State Liquor and Cannabis Board, U.S. Census Bureau Marijuana shop demand The number of stores in a dozen similar sized cities show Worcester could easily have a market for the maximum of 15 stores it plans to license. Some cities have no caps on the number of stores, while others have strict limits on where stores can operate. I n a span of just under four miles in downtown Eugene, Oregon, 38 marijuana shops have opened their doors since recreational marijuana became legal to buy there in 2015. e city of 170,000 – just smaller than Worcester – has more than 50 pot shops in all. Worcester can't legally have nearly that many shops, with a state-imposed ceiling limiting the city to 15. But with Worcester's first legal pot shop open as of May 1, questions remain about how much demand will exist in Worcester and surrounding towns for places to le- gally buy a joint and what the economic boost the industry could give to Central Massachusetts. Eugene offers a compelling test case. e city, which is home to the 23,000-student University of Oregon, has seen a lot of speculative store open- ings in a state cannabis market more relaxed than in Massachusetts, which has had a slow rollout of pot shops. Industry watchers in Oregon say Eugene could be due for some shop closings. "In Eugene, we're just now – it's been three and a half years – about to hit that shakeout period," said Keaton Miller, a University of Oregon economics profes- sor who studies the industry. Until then, dozens of spaces across the city have found new use as pot shops with names like Cannabliss & Co., 4-Twenty Mini Mart and Grasslands. Cannabliss and 4-Twenty both opened in former real estate offices, and others have opened in a former house, hair salon and a financial services office. But the new stores haven't brought as much street and sidewalk activity as most other retail storefronts would, said Joshua Monge, the director of economic development for the Eugene Area Cham- ber of Commerce. Stores oen have marijuana leaf logos outside, but they can't advertise products in the window and don't allow minors inside, he said. "What was a dead space, when there was nothing there, it can create a new dead space," Monge said. Monge foresees some reduction in the number of pot shops in Eugene ahead. "ere's no way there would be 40 taco stands," he said. "ey just couldn't survive." As for industry wages, the Eugene area doesn't appear to have gotten a major boost from new employment. Miller described a pot shop's impact as smaller than a restaurant but bigger than a hard- ware store. Oregon state government data shows annual wages of nearly $3.9 million in Lane County, where Eugene is located, among more than $50 million made by nearly 6,000 marijuana industry workers statewide. at is an average annual sala- ry of $8,333 per cannabis worker. But those wages are still a tiny part of overall wages. For every $10,000 earned across Lane County, only $5.90 comes from the cannabis industry. Jobs in min- ing, quarrying, and oil and gas extraction make up more than three times as much. Local picture still unclear How many shops could come to Central Massachusetts still isn't clear. More than 30 cities and towns have passed caps on the number of stores, including Clinton, Gardner, Graon, Millbury and Uxbridge, according to the Massachusetts Municipal Association, which is tracking local restrictions based on news and municipal reports. Good Chemistry opened on Harrison Street in Worcester on May 1 as the first of what could be 15 cannabis shops in the city. Eugene, Oregon 50 29.60 168,916 Salem, Oregon 42 24.74 169,798 Boulder, Colorado 26 24.27 107,125 Spokane, Wash. 18 8.29 217,108 Worcester 15* 8.08 185,677 Fort Collins, Colorado 12 7.27 165,080 Vancouver, Wash. 12 6.83 175,673 Tacoma, Wash. 14 6.56 213,418 Aurora, Colorado 24 6.55 366,623 Modesto, Calif. 13 6.07 214,221 Santa Rosa, Calif. 7 3.99 175,269 Salinas, Calif. 4 2.54 157,596 Hayward, Calif. 2 1.25 160,500 "It can be very beneficial for cities and towns and the state overall." Matt Huron, president & CEO Good Chemistry, the first retail shop in Worcester PHOTO/BRAD KANE

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