Monday, May 4, 2015

Pot City Annex



Recently we have learned of the plan to annex “The City Ranch.” Why is Walsenburg moving to annex the “Ranch?”

The aggressive way that Walsenburg officials have embraced marijuana as a cure all for the city's financial problems is almost equal to the passion exhibited for the Northlands annexation. We have not seen the end to that speculation yet, but it's time to jump into another adventure.

“Brian Trani, chief executive officer of Martra Holdings Co., said the company hopes to break ground on the site next month. It won't do so until it has secured a pertual water rights contract from Walsenburg, something he hopes to accomplish with annexation into the city by the end of May.”*(1)

Until the city annexes the “Ranch,” they won't have complete control of that project. It may have something to do with water rights. If the Martra Group gets up to capacity, it will mean Walsenburg will have to provide about 70,000 gallons of water per day to the operation.*(2) At present the county controls the land. Will the city be able to provide the amount of water required at present rates or will the rates increase to sustain the need of the grow operations. What will these perpetual water rights be? The deal with Martra is scheduled to finalize on June 1. This will include the sale and annexation.

Prior to March of this year Walsenburg only licensed sale of medical marijuana. In March Walsenburg passed ordinances which allow retail marijuana stores, cultivation facilities, products manufacturing, and marijuana testing within the city limits.*(3)

The uncertainty of the water supply in the future, the expansion of the city with additional service requirements, and the dependence on one industry for the future of the city are troubling aspects of the new developments.

It is common knowledge that diversity is a key to success in financial investing. This same concept should apply to city development. It is questionable that other companies will seek out drug dependent cities as prime candidates for new expansion.

*(1) The Pueblo Chieftain, 05/03/15.
*(2) Dave Johnston.
*(3) Channel 9 News, 04/30/15.



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