With retail cannabis in Costa Mesa about to take off, the ‘State of the City’ is green

Costa Mesa leaders, chamber officials and business owners attending a State of the City luncheon Thursday reflected on how the city pulled through the pandemic, thanks to a collective desire to support one another and the place they call home.

And, in doing so, they welcomed the newest members of Costa Mesa’s business community — cannabis retailers, who will soon be able to operate legally within the city.

“Cannabis is coming into town,” Mayor John Stephens said at the Segerstrom Concert Hall event, asking those in the industry to raise their hands and acknowledging the 20 or more who did.

“Thank you for being here,” he continued. “You have true partnership with a friendly government who wants you to succeed.”

Council member Manuel Chavez speaks as council members Loren Gameros, Arlis Reynolds, Jeff Harlan and Mayor Pro Tem Andrea Marr, from left, look on at the annual “State of the City” luncheon at the Renee and Henry Segerstrom Concert Hall on Thursday.

(Don Leach / Staff Photographer)

For the first time ever, retail dispensary owners are being offered a seat at the table as elected officials and the Costa Mesa Chamber of Commerce seek to legitimize a commercial enterprise that will create new streams of tax revenue and forge new business partnerships.

The City Council in June passed ordinances regulating the sales and delivery of retail cannabis, effectively implementing Measure Q, a ballot initiative passed by voters in November. Proprietors may begin submitting applications for conditional use permits Aug. 2.

With a host of potential applicants looking to hang a shingle in Costa Mesa, the chamber is seizing on the opportunity to grow its membership. In a June 16 virtual “Cannabis Kickoff” event, officials encouraged dispensary owners to join and sponsor local events like the State of the City address.

In exchange, they said, they would help write letters of support business owners could include in their applications to the city.

That message was driven home at Thursday’s chamber-hosted event, as Tom Johnson, president emeritus for the chamber and member of the group’s Cannabis Task Force, shared the vision of a new, more progressive organization.

“We want to be a model chamber of commerce, to let other communities know how to interact with the cannabis industry and make them successful partners,” said Johnson, who emceed the event.

So far, the messaging seems to be working. Five area cannabis retailers sponsored Thursday’s event including one company, Sesh, which was a $10,000 platinum sponsor, alongside C.J. Segerstrom and Sons and South Coast Plaza.

In his remarks, Stephens reminded audience members that Measure Q passed with more than 65% of the vote, more than any single council member elected to office in November. He went on to explain the incentive for ensuring the transition to legal sales is successful.

Grigor Grigoryan, left, and Raymond Shirvanyan, of cannabis retailer Sesh, at Costa Mesa’s annual “State of the City.” The company was a platinum sponsor of the chamber-hosted event.

(Don Leach / Staff Photographer)

Retail cannabis will be taxed at 7% — 1% of which will be used to fund two programs in support of local artists and first-time homebuyers, he said. City staff have estimated the industry, once up and running, could bring in at least $3 million annually.

“So, buy your cannabis in Costa Mesa,” the mayor added.

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