Did anyone here go to last night's meeting about Garden Remedies marijuana dispensary?

[ron_newman]

Did any of you go to this meeting? If you did, can you share your notes and impressions here? Thanks.

Comments

Thalia Tringo's report on the marijuana mtg-- part III

[jlauspitz.livejournal.com]

[continued from part II]

*Is it an All-Cash Business?: * GR said the have been able to use debit
cards through their relationship with Century Bank. They are doing this in
Newton. I have checked with the AG's office several times and have not
received a definitive response about accepting non-cash payment. But I am
somewhat relieved if this is true. Still, people leaving with drugs will
be targets.

*Doing the Math:* I tried to run some rough, conservative numbers, based
on the information I have, which is limited:

- The GR space is 5,044 sq.ft. (this does* not *include the parts they
will sublet)
- GR rent is $50 per sq ft, triple net (triple net or NNN means that, on
top of the base rent, the tenant pays for real estate taxes, building
insurance, maintenance, and utilities. It depends on the property, but that
amount is considerable here.)
- This makes the base rent $252,200/year, or $21K/month - about $700/day
- I estimate that the NNN costs add $300/day
- That makes the daily space overhead cost about $1,000/day before
utilities
- They plan to have 20 employees, working different shifts over 7
12-hour days. I estimate their average labor costs to be about $2,000/day
(including FT security guard and remember there will be several employees
on at the same time and payroll costs/benefits add about 25%)
- Ergo, I arrived at a conservative pre-utilities base cost of $3,000/day
- GR estimates 100-150 customers/day. I can't find their estimated
average sale from the last meeting, but I think it was $125 (Ulysses - do
you have this in your notes?). That means average daily sales of $15,625+.


*Political Donations: *I have been looking up the names of all the
partners involved in each of the weed applicant entities. None of the GR
principals had made any donations to local politicians, according to data
available from MA Office of Campaign and Political Finance (
https://www.ocpf.us). It's possible there are people affiliated with them
that donated, but I have not come across any other names. Interestingly,
the applicants for the space across the street donated heavily to local
pols. More on that in a future email.

*Positive Points: * Although I don't support the location, there are
several good things I could say about the applicant. For one their first
location is in Newton, which is where all the principals live. So they were
willing to do it in their own town first. Secondly, I do think they have a
sincere desire to help people cope with debilitating illness, although it
may not be their only motivation. Third, they did add a full-time security
person to their plan. Fourth, their space will be fully ADA compliant.

That's all I can think of right now.

--

Thalia@ThaliaTringoRealEstate.com