Bureaucracy is Crushing the Portland Cannabis Market

The Portland Business Journal reports that a failure to provide recreational licences in a timely manner in Portland is costing the industry $22mm a month, according to Beau Whitney of Whitney Economics. Fewer than 6% of applicants had been licensed as of December 5th, and there is a potential for major shortages as the rules change on January 1st, with recreational sales ending at medical dispensaries. The cost of licensing, at more than $10,000, is also a burden local cannabis businesses are bearing.

The city of Portland and Office of Neighborhood Involvement have developed such a bureaucracy in its marijuana licensing process that it is literally driving the applicants out of business.

beau-whitneyBeau Whitney

Whitney points to the potential loss of revenue for the state and city as well, with the Oregon potentially missing out on $1.3 per month and Portland facing a loss of $232,500 per month.

Read Pete Danko’s “Portland’s cannabis licensing logjam could cost businesses $22M a month”: http://www.bizjournals.com/portland/news/2016/12/13/portland-s-cannabis-licensing-logjam-could-cost.html

Published by NCV Newswire
NCV Newswire
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