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Local News

Newscast: Mendocino Supervisors Close Year with Tributes, Climate Wins, and a Cannabis Industry Crisis

A cannabis garden nestled in green hills
Elise Cox
/
Midjourney
A well-watered cannabis garden

The Mendocino County Board of Supervisors wrapped up its final meeting of the year Tuesday night, marked by farewells to outgoing supervisors, praise for climate initiatives, and pleas for help from the beleaguered cannabis industry.

Tributes to Outgoing Supervisors

Outgoing Supervisors Glenn McGourty of District 1 and Dan Gjerde of District 4 received heartfelt accolades for their years of service. Eileen Mitro, spokesperson for Climate Action Mendocino, commended the board’s environmental leadership, highlighting measures such as a $2 million Net Zero Carbon Reduction Fund, steps toward electrifying the county’s vehicle fleet, and efforts to install EV charging stations.

“Your commitment to climate action amidst challenging budget issues has been steadfast,” Mitro said, singling out McGourty and Gjerde for their dedication.

Supervisor Ted Williams added a lighter note in his farewell to McGourty. “Even where we’ve disagreed, we’ve always been friends. To show my appreciation, I’m going to nominate you to every vacant board and commission seat,” he joked.

The Mendocino County Farm Bureau also extended its thanks, with Executive Director Adam Gaska acknowledging McGourty’s support for agriculture. Gjerde, absent from the meeting, was recognized for his 12 years of service as a county supervisor and on various county boards and for 26 years public service, starting with the Fort Bragg City Council in 1998.

Cannabis Industry in Crisis

In sharp contrast to the tributes to the outgoing supervisors, stark reminders of the county’s cannabis struggles loomed large. Farmers and industry advocates pleaded with the board to address the economic hardships caused by plummeting cannabis prices and the county’s approach to taxing dispensaries.

Since the passage of Proposition 64 in 2016, which legalized recreational cannabis, prices have fallen catastrophically from $2,400 a pound before legalization to a $175 a pound recently.

Proposition 64 also gave local governments like Mendocino County the ability to regulate cannabis in their jurisdictions.

Starting in 2017, Mendocino County imposed a Cannabis Business Tax, enacted under Chapter 6.32, Section 6.32.050. The ordinance initially imposed a 2.5% tax on gross receipts for cannabis cultivation. In April 2023, the board adopted a temporary reduction for cultivation operations, lowering the tax rate to 1.25% for 2023 and 2024. This adjustment, however, only applies to cultivators and nursery operators.

Cannabis business sectors including nursery, distributor, manufacturer, processor, testing laboratory and transporter continue to pay a flat annual fee of $2,500. Dispensaries pay a 5% gross receipts tax.

Michael Rubenstein, owner of Compassionate Heart Dispensary, called the dispensary tax unsustainable. “No business should pay 5% of gross. It’s bankrupting the industry,” he said.

Rubenstein lamented lost opportunities, saying, “Mendocino could have been like the wine industry—something to benefit the community and the people. Instead, everyone’s going bankrupt.”

Accountant Catherine Anello highlighted a 35% closure rate among county cannabis farms over the past three years and a recent steep decline in local shopping activity, attributing much of the downturn to the cannabis sector’s struggles.

Amending the cannabis ordinance to address the economic struggles of dispensaries was not on the agenda, so the board was restricted from taking action. But the board was not prohibited from asking the operators questions or expressing an intent to agendize the item at the next meeting. Instead, the board, led by Mo Mulheron, moved on without giving any indication that the struggles of the industry would prompt future action.

Local News
Elise Cox worked as an editor and reporter for the San Jose Mercury News, Knight Ridder, U.S. News & World Report and other publications prior to moving to the Mendocino coast in 2022. She began reporting stories for KZYX in August 2024 and became news director in December 2024.