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Missouri recreational marijuana sales 3-month report card

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Hippos Cannabis has a 40,000-square-foot production facility in Vienna, Mo., a town of 600 people that’s just 30 minutes north of Rolla.

Since Missouri’s recreational marijuana sales began in February, they’ve added 25 workers, bringing the total employees to 70 — who come from Vienna or the surrounding communities.

“A lot of the employees were born and raised and went to high school in Vienna, and now they’re all working together,” said Nicholas Rinella, CEO of Hippos which also includes three dispensaries throughout Missouri. “So it’s a real community at the facility.”

Like other companies, Hippos is working on expanding their facility, where they largely make jarred cannabis flower buds and pre-rolled joints, in order to ramp up production and keep marijuana dispensary shelves stocked.

“We didn’t know if Amendment 3 was going to pass,” Rinella said. “Once it did pass, what the industry had expected was a 2.5 times bump in sales. And it ended up being closer to five to six times.”

Missouri’s recreational marijuana sales came in at $91 million for April, according to a report the state released on Friday. That’s up from February’s $71.7 million and on par with March’s $93.5 million — for a total of $256 million in the first three months.

Adding in medical marijuana sales, Missouri hit $350 million in the first three months since the state has been able to sell recreational marijuana.

Yet cannabis business owners say those numbers could be even higher since cultivators and manufacturers like Hippos aren’t working at their maximum capacity.

Missouri Department of Health and Senior Services

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On May 5, 2023, the Missouri Department of Health and Senior Services released its monthly and cumulative cannabis sales numbers.

It could take up to a year to see what Missouri sales are capable of, said Tyler Hannegan, co-owner and chief of operations and sales at Robust Cannabis.

That’s partially because anytime a cannabis business makes changes to their facility, it must get approval from the state regulating agency, the Missouri Department of Health and Senior Services (DHSS).

Since February, DHSS has received more than 80 requests for facility changes, adding to the 40 they already had pending, said DHSS spokeswoman Lisa Cox.

“I don’t think we’ve seen peak numbers yet at all,” Hannegan said of Missouri sales, “just because there’s still cultivation groups that haven’t come online. They’ve just expanded, but they haven’t even been approved.”

Still, Missouri’s market has been among the quickest to rise nationwide.

For Illinois, it took seven months to hit $300 million after beginning adult-use sales in January 2020, with its first year ending at $670 million. Two years later, Illinois ended 2022 at $1.6 billion.

While Missouri is not matching Illinois’ April numbers of $132 million, it is still poised to hit over a billion in its first year.

A year ago, Robust Cannabis had six employees when they opened their 75,000-square-foot greenhouse and manufacturing site in Cuba, Mo., which is an hour south of St. Louis. Now they have 70 workers, who live and often grew up nearby.

The company began tripling its production in January, and they’ve hired about 40 people in the last three months alone.

But they’re still not meeting the state’s incredible demand, said Emily Braun, director of operations and human resources of Robust Cannabis.

“I don’t even think anybody could anticipate that Missouri would be such flower fiends,” said Braun, meaning cannabis flower buds and pre-rolled joints. “Nobody can keep it on the shelves.”

And even if every Missouri company was producing at its max, Braun said, “I don’t even know if it’s enough. It’s just insane.”

Rebecca Rivas

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Missouri IndependentSkyler Berry makes pre-rolled joints at the Robust Cannabis production facility in Cuba, Mo. on May 2, 2023.



Turnaround time

Missouri began recreational marijuana sales three months after voters approved the constitutional amendment to legalize it in November.

That was the second fastest turnaround in the country, just two weeks behind Arizona’s record, according to a report by Brightfield Group cannabis analysis firm in Chicago.

However, now several businesses are needing to expand to keep up with demand, and they can run into some delays there.

Companies must get their construction plans approved and then get inspected after the work is complete.

“Processing time for these requests under the new rules is dependent on how quickly a facility can implement the changes for which they are seeking approval,” Cox said, “as they may begin construction after making a request. But DHSS can only approve the request once the expansion is ready for inspection.”

Of the total 121 requests DHSS had pending in February, 39 were for cultivation facilities, 38 were dispensaries, 36 were manufacturing sites, seven were transportation and one was for a testing facility.

Of those, 23 have been approved and are ready to go. Cox said 29 are in final review after inspection and should be approved over the course of the next two weeks.

Five are constructed and scheduled for inspection, and DHSS is waiting on 64 to complete construction so that they can conduct an inspection and approve those spaces.

And like the cannabis companies themselves, DHSS is also hiring new employees to keep pace with the growing market.

“DHSS is in the process of hiring a large amount of new staff to handle the increase in workload associated with the new law,” Cox said. “The Division of Cannabis Regulation is about 30% through their hiring plan and expect to be fully staffed by the end of the year.”

Rebecca Rivas

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Missouri Independent Robust Cannabis has a 75,000-square-foot greenhouse in Cuba, Missouri, with about 70 employees who come from the surrounding areas.


The value conversation

With the high demand, Rinella said the industry has seen some price increases. But he said it’s important to remember that two years ago, an eighth of flower — the most common product sold – was at $60 dispensaries.

And at one point, the price dipped as low as $25.

“Right now it’s just really starting to stabilize,” he said. “It looks like things are sitting around the $40 to $45 mark,” which are the average prices at Hippos’ menu.

About 25 years ago on the illicit market, he said an eighth was about $50.

“It’s actually less expensive today to buy it at a dispensary and you have a higher quality,” he said. “You know that the product was all safe and tested.”

Hannegan, who is also co-owner of Feel State dispensary in St. Louis, said he’s seen a rise in prices across the board in Missouri.

“That really is a testament is to some of the dispensaries not having enough flower products,” he said.

Robust and other places have been doing “phenomenally well” in their yields, which helps them keep prices stable.

“There are quite a few that have struggled trying to rush the process and trying to adapt recreational, thus causing some supply issues,” he said.

Jason Nelson, the owner of Swade dispensaries and Sinse Cannabis cultivation, said it’s important that prices don’t shift too much while Missouri’s market is trying to stabilize.

That’s because, Nelson said, customers could easily just go back to their previous dealer.

He’s constantly having conversations with customers about the value of buying from a dispensary versus their off-market dealers who probably don’t know if their products have pesticides, heavy metals and other contaminants.

If prices are stable, Nelson has an edge in that conversation. But if they spike, he said he’s going to lose, especially in “these times of inflation.”

“That value conversation really can’t exist much more than a 15% to 20% dollar amount over the illicit market price,” he said. “While it might ultimately take away from top line revenue, if you overprice and take a short-term gain on top line revenue, you’re gonna risk losing that conversation.”

He’s seen where the “large multi-state operators” took the top-line revenue approach and lost a big segment of their customers who went back to their old dealers.

“We, as responsible and comprehensive operators in Missouri, have to manage that successfully,” he said. “And I think we’re poised to do it.”

This story was originally published on the Missouri Independent.

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Laclede’s Landing is moving from nightlife hub to neighborhood

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Laclede’s Landing has cycled through many identities throughout the history of St. Louis. Now, some people involved with its redevelopment in recent years hope the landing’s next one will be as a residential neighborhood.The small district tucked directly north of the Gateway Arch National Park has quietly undergone a massive redevelopment with more than $75 million pouring into the rehabilitation of many of the historic buildings at the landing.“We are starting to feel that momentum, especially in the last really 60 days. Things have drastically changed around here,” said Ryan Koppy, broker and owner of Trading Post Properties and the director of commercial property for Advantes Group.Advantes alone shouldered the rehabilitation of six of the historic buildings, which now sport a mix of apartments and retail or office space, he said. Four of those buildings are completed, and of the 119 apartments available, about 90% are filled, Koppy said.“It just shows you what kind of demand we do have for the area,” he said. “We’re separated from downtown a little bit, and for the tenants, their local park where they’re walking their dogs, it’s a national park.”

Sophie Proe

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St. Louis Public RadioInterior of the Peper Lofts at Laclede’s Landing on Aug. 16

Another 40 apartments are set to come online next year along with some retail space, Koppy said. He added he’s noticed a wide range of people who are considering and moving into the newly refinished apartments.“It’s very mixed, surprisingly,” Koppy said. “We have a lot of young professionals, maybe on their second job out of [university], we have some empty nesters too.”Part of the newfound momentum comes from a new market, the Cobblestone, and coffee shop, Brew Tulum, opening recently and bringing more foot traffic to the area, said Brandyn Jones, executive director of the Laclede Landing Neighborhood Association. She added that more apartments are set to come online within the next few months.“We have a great riverfront area here and so there are plans in the works to activate those spaces, bring people in,” she said.That could be more daytime events, like a farmers market, music festivals (one of which is happening this weekend) or just bringing in food trucks to Katherine Ward Burg Garden, Jones said. It’s a departure from the identity the district held a few decades ago as a hub for nightlife and entertainment.“That’s part of what connects so many people to Laclede’s Landing,” Jones said. “It’s important to tell the story of where we’re evolving. It won’t be what it was in the same exact way, but it will still be fun, and it can be fun early morning, midday or late night.”It’s a view shared by Koppy.“It’s grown up, it’s a bit mature,” he said. “We’re not going to have 3 a.m. bars here anymore because we have residents here.”Koppy added that Advantes is joined by other developers working to rehabilitate buildings in the district.“We all work in unison,” he said. “If I get a call and [a client is] asking for something and maybe the square foot doesn’t really match up with what I have available, but I know it matches up over there, they’re getting a very warm welcome and introduction.”

Sophie Proe

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St. Louis Public RadioRyan Koppy looks out the window of Brew Tulum Specialty Coffee Experience on Aug. 16 at the Cobblestone on Laclede’s Landing in downtown St. Louis.

This push toward making Laclede’s Landing a residential neighborhood also comes alongside broader conversations about the future of downtown St. Louis more generally as it looks to move away from a dependence on office space. While the city as a whole continues to lose population, downtown added about 1,700 people between 2010 and 2020, according to U.S. Census data.“It’s been wonderful timing to have all that going on, that stress that you’re not just in downtown to work has been critical to part of this rejuvenation and energy down here,” Jones said. “Sometimes people forget Laclede’s Landing is part of downtown, really the original downtown.”And success in the small district could spread beyond its small confines and potentially serve as a model for success, Koppy added.“My idea is, if we could get all the great things of St. Louis coming in through here, we can eventually spread that,” he said. “We understand we can’t change the whole world, but we’ll just make the effort to try and change the world around us.”

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St. Louis barbecue festival Q in the Lou canceled

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The largest barbecue competition and tasting festival in St. Louis, Q in the Lou, has been canceled. The event was planned for Sept. 6-8, but organizers decided to cancel it due to poor ticket sales and insufficient corporate sponsorship.The traveling festival had low attendance in Denver last week, said Sean Hadley, a festival organizer.“We made the tough decision to cancel Q in the Lou,” said Hadley. “We’re seeing a lack of support … it’s just not there.”The traveling event first came to St. Louis in 2015 and drew hundreds of people to downtown St. Louis for barbecue, live music and a “major party.”“It shut down out of the blue … I’ve gone every year,” said Scott Thomas, local chef and food blogger. “It’s brilliant. You could take a tour of some really amazing barbecue restaurants and competition barbecue guys all in one place.”In a late July news conference, city officials touted Q in the Lou as a significant tourism draw and a boost for downtown revitalization.“Bringing a signature national festival back to downtown St. Louis … is making us stronger,” Greater St. Louis Inc. CEO Jason Hall said then.Less than a month later, ticket holders from every festival stop learned they’d be refunded. On Monday, organizers privatized the Q in the Lou website and deleted its social media accounts.Conner Kerrigan, a spokesperson for Mayor Tishaura Jones’ office, said city officials are disappointed the festival won’t be back this year.“St. Louis knows how to throw a festival … bringing people together to celebrate our culture is one of the things we do best as a city,” Kerrigan said in a statement. “Should Q in the Lou try to come back next year or any year after that, they’ll have the support of the Mayor Jones administration.”

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Alton’s Jacoby Arts Center likely to relocate permanently

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The Jacoby Arts Center, a staple of Alton for many in the Metro East community, will likely permanently move out of its downtown building at the end of September.Its departure and relocation from the historic building that the arts center has called home for the past 20 years has created a tense situation for not only the arts center’s supporters but also the local development company working to revitalize Alton’s downtown that owns the building.“It’s an unfortunate situation,” said Chad Brigham, the chief legal and administrative officer with AltonWorks, the real estate company owned by another prominent local attorney working to develop the town. “I wish there wasn’t misunderstanding and disappointment in the community. It’s difficult sometimes to clarify that.”When news of the likely departure spread in June via a letter from the Jacoby Arts Center to its supporters, an outcry on social media quickly followed. Some assumed it would be the end of the arts center.“There’s a lot of feelings right now that I think are more about the building itself than there are about the Jacoby Arts Center,” said Valerie Hoven, vice president and treasurer of the nonprofit arts center’s board.For supporters of the Jacoby, moving from the building and likely never returning will be a sad affair. Exactly what’s next for the arts center remains unclear. However, Jacoby board members believe this will not be the end of the organization. It will likely look different though.

Sophie Proe

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St. Louis Public RadioThe Jacoby Arts Center earlier this month in downtown Alton

Sophie Proe

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St. Louis Public RadioThe Alton-based Jacoby Arts Center features more than 75 St. Louis-area artists and their work.

The history of the buildingFirst dubbed the Madison County Arts Council, the nonprofit arts center renamed itself after the Jacoby family gave it the current building in 2004. AltonWorks founder John Simmons purchased the Jacoby Building in September 2018, according to property records from the county.Managing the large building, at 627 E. Broadway, became too expensive for the Jacoby Arts Center. In 2018, the organization approached Simmons to purchase it, said Dennis Scarborough, a past president of the board and a downtown business owner.“Of course, it sounded really, really good,” Scarborough said of Simmons’ purchase. “He took over the insurance, property taxes, all those kinds of things that were really, really getting into our budget, and he rented it to us at a fair price.”The two parties entered into a lease agreement initially for five years. Since then, Simmons has spent more than $1 million in upkeep, taxes, insurance and more on the building. The lease has been extended twice until the end of September this year.Over the six years, Jacoby paid $1,500 per month, which covered a portion of the utilities.“It’s been wonderfully generous of AltonWorks,” Hoven said.Because the building is aging and needs repairs, Brigham with AltonWorks and those connected to the arts center have long known the Jacoby Arts Center would need to relocate — at least temporarily.

Renovations on the Jacoby building will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.

News of the likely departure and controversyRenovations will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.In May, it became clear that a preliminary proposal for the arts center to return to the building after renovations finished in 2026 would not work for them, Hoven said.She estimates the first floor and basement of the Jacoby Arts Building span roughly 20,000 square feet.

Chad Brigham is a business and legal adviser for AltonWorks.

AltonWorks’ initial idea floated to the arts center would only provide 2,553 square feet, according to both Hoven and Brigham. While the board calculated the price for the new space to be at least triple the current payment, Brigham said there was never a specific price discussed.“No discussion in terms of actual rent price,” he said.AltonWorks didn’t make a specific rent offer because the organization doesn’t even know itself, Brigham said.In addition to cash from John Simmons, there will be loans, tax increment financing and state tax credits to cover the $20 million in building renovations. The entities financing the cost of renovations will also help determine the rent when the construction is complete, Brigham said.Regardless, the price required to return will be too much for the arts center to pay, Hoven said. Also, the organization would like to maintain the many programs it offers to the community — a rentable event space, a dark room and a clay studio, for example — in the future.“For us to really meet the needs of the community and be sustainable, we need a space where we can offer some of those programs — the artists’ shop, and other spaces that offer some kind of income as well — so that we can continue to give money back to the community,” she said.AltonWorks offered at least two other locations as possible alternatives from their vast stock of buildings along Broadway to house the arts center during the roughly 18 months of construction. Those alternatives came with similar deals requiring the Jacoby to cover only utilities, Brigham said.“We did put in a great deal of work behind the scenes in trying to find an interim solution,” Brigham said. “We wanted to find a place for them to go, where it was easy for them to continue programming, whether it’s 100% of it or some portion of it, that would work for them.”Initially, the arts center hoped to keep the basement during the renovations, Hoven said. When it became clear the preliminary offer to return was for much less space than the arts center anticipated, the letter to the community was sent.“The letter that came out was merely showing our surprise,” Hoven said. “Don’t misinterpret it as panic. Don’t misinterpret it as desperation.”

Sophie Proe

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St. Louis Public RadioA smorgasbord of radios are displayed at the Jacoby Arts Center in Alton.

The commentary on social media was passionate. Some critics of AltonWorks said the organization has good intentions but hasn’t executed those plans. Others said Jacoby hasn’t planned well enough for the future.For Brigham and the AltonWorks team, some of the criticism has been disappointing.“I thought that there were some decent solutions. Were they perfect? No, but they were very, I thought, very good solutions,” he said. “And the fact that it has come to the point that it is right now is a bit hurtful.”AltonWorks remains committed to the arts, Brigham said. John Simmons remains one the largest donors of the Jacoby Arts Center, Hoven and Brigham said.“I don’t think there’s ever been a question of our support of that organization — of our affinity for that organization,” Brigham said. “While some of the events were unfortunate, some of them were encouraging. The entire community rallied around the Jacoby Arts Center. That’s a good thing. It’s a good thing to have a love for the arts like that in a downtown community.”Sara McGibany, the executive director of Alton Main Street, an organization aimed at preserving the town, said AltonWorks should be commended for its vision. In many ways, her organization and AltonWorks share a vision for a thriving downtown.Even though AltonWorks hosts public meetings, McGibany believes the current situation lacks true community engagement.“We really think that if AltonWorks can get past some of the communication hurdles — and harness the community’s passion and shift to more of a bottom-up decision-making process that centers on community input — then we can turn around the growing sentiment of distrust that’s happening now,” McGibany said.Scarborough, the past board president and downtown business owner, echoed the praise for Simmons and his support of the Jacoby Arts Center. With the Jacoby likely moving, the future looks bleak, though.“It’s a community arts center that does a lot of good work,” Scarborough said. “The community is going to suffer, and they’re going to be missed by the community if they’re not there.”

Eric Lee

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St. Louis Public RadioShalanda Young, director of the federal Office of Management and Budget, talks to Illinois U.S. Rep. Nikki Budzinski, D-Springfield, during a tour of a construction project by AltonWorks last April in Alton. AltonWorks, who is building the LoveJoy Apartment Complex is receiving over $1 million in federal funding.

What does the future hold?AltonWorks will continue forging ahead with its ambitious plans to revitalize Alton. The organization hopes to conclude construction on the Wedge Innovation Center, which will have a restaurant, retail and co-working space, this fall. Lucas Row, a mix of apartments and retail space, is scheduled to be completed next spring.The remainder of the arts and innovation district, currently named after the Jacoby, will also move forward.“I believe in two years it’s going to be a much different place,” Brigham said of Alton. “It’s going to be thriving. It’s going to be new businesses, new tenants — and it’s going to be a nice proof of concept for what you can do in a small community like that.”The Jacoby board recently formed a strategic planning committee. Its task: figuring out what’s next for the arts center. The committee will reevaluate what space the Jacoby needs, what programs it wants to offer to the community and how they want to make that a reality.Keeping the arts center is essential for board members like Hoven. In her experience, it’s been a place where local aspiring artists get their start.“Art is one of the only ways to show your true authentic self,” Hoven said. “And there’s more people than I realized who do not get that opportunity every day.”The Jacoby will shut its doors to pack over the next month. Hoven said she’s optimistic the board will have concrete plans by the end of September when their lease officially ends.“Alton is such a fabulous and supportive community,” she said. “We still have lots of great options, so that the Jacoby Arts Center will continue to thrive in Alton and beyond.”

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