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Indoor cannabis cultivation could come to Nevada City

After declaring the dip into dispensaries a success, Nevada City is looking to allow its cannabis industry to expand.

The City Council on Wednesday directed staff to work on an amendment to its cannabis ordinance that would allow indoor commercial cultivation, the next step in what it described as a measured roll out of legalized cannabis.

“I think we can all agree that it’s been very successful,” Councilman Doug Fleming said of the approach. “It was a phased approach. We were taking baby steps initially.”



According to Fleming, the industry’s positive impact as a revenue driver for the city proves the expansion is warranted.

Last year sales tax revenue reached $590,000, and the city expects $540,000 more this fiscal year.




Fleming estimated the city’s revenue from allowing just one small cultivation site could be around $70,000.

He said in addition to taxes on other license types already approved by the city, like manufacturing, processing and distribution, revenue would be in the millions.

“It’s something we can’t take lightly, but have to manage effectively,“ Fleming said.

While the council’s agenda allowed it to consider allowing other uses, such as outdoor grows, council members were unanimously against it.

As Nevada City looks to expand cannabis businesses, Grass Valley is creating a process to determine which business will be permitted for the city’s first dispensary, after removing its prohibition last year.

“We’ve done a really good job with our marijuana industry here, right now we are the only ones in the county,” Nevada City Mayor Erin Minett said.

“I’d like to see us move forward for the health of Nevada City also, because at some point Grass Valley will finish getting their stuff together and start opening up their own.”

Edited 1/18: This article has been updated to correct which cannabis businesses are allowed in Nevada City.

To contact Staff Writer John Orona, email jorona@theunion.com or call 530-477-4229.


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