Nipton, California: Pot Paradise?

Move over Humboldt, there’s a new contender for pot paradise: Nipton, California?

Late last week, cannabis company American Green, Inc. announced it had purchased the entire town of Nipton, California, for $5 million, with plans to “modernize it into the country’s first energy-independent, cannabis-friendly hospitality destination — all while retaining its historic look and value.” American Green purchased the 120 acre swath of land on the Nevada-California border in the hopes that the idea of a fully supportive municipality will attract other entrepreneurs to Cannabis City, CA and will create one of the country’s top cannabis tourist destinations.

American Green will begin by bottling CBD infused water, but “[u]ltimately, the company would like to offer a variety of commercial and recreational attractions including: CBD and mineral baths, cannabis-product retail outposts, artists-in-residence programs, culinary events, and Bed-and-Breakfast lodging to complete the charming small town experience.” If successful, Nipton just might become a must-stop on the trail from Los Angeles to Las Vegas and beyond.

Strange as it may seem, there is some precedent for a municipality operating a cannabusiness. In 2015, North Bonneville, WA, a small town of about 1,000 residents, opened a government owned cannabis dispensary to help defray rising costs. The Cannabis Corner is still going strong, and is serving as a model for small towns throughout the country. As cannabis legalization continues to spread and as so many small towns continue to suffer economically, our cannabis attorneys have lately been fielding an increasing number of calls from municipalities looking into setting up their own cannabis businesses to stimulate their economies.

Speaking of what is happening with cannabis in California, our law firm will tomorrow be putting on a free webinar intended to help you better understand what is happening with California cannabis (both statewide and in California’s counties, cities and towns). This webinar will be on Tuesday August 8, 2017, from 12 pm to 1 pm PT. and it will focus on what MAUCRSA means for your California cannabis business. Hilary Bricken from our Los Angeles office will moderate two of our San Francisco-based attorneys (Alison Malsbury and Habib Bentelab) in a discussion on the major changes between the MCRSA and MAUCRSA. These three California cannabis lawyers will, among other things, discuss vertical integration and ownership of multiple cannabis licenses, revised distributorship standards, and what California cannabis license applicants can expect more generally from California’s Bureau of Cannabis Control as rule-making continues through the remainder of this year. They will also address questions from the audience both during and at the end of the webinar.

To register for this free webinar, please click here. We look forward to your joining us.

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