Friday, October 10, 2014

Maggie's Farm does $2 million in marijuana sales in Manitou Springs

Posted By on Fri, Oct 10, 2014 at 12:20 PM

click to enlarge Manitou Springs City Councilor Kevin "Sarge" Mac Donald speaks to the media on July 31 after becoming the first Maggie's Farm customer. - FILE PHOTO
  • File photo
  • Manitou Springs City Councilor Kevin "Sarge" Mac Donald speaks to the media on July 31 after becoming the first Maggie's Farm customer.


As first reported by the Pikes Peak Bulletin, a publication co-owned by Indy publisher John Weiss, the recreational-marijuana store Maggie's Farm says it will pay the town of Manitou Springs $223,122 for the period between July 31, when the store opened, and Oct. 7. With a 10.4 percent combined sales-tax rate, rough calculations suggest sales of around $2.15 million from the one store.

“Recreational marijuana is a big game changer,” the paper quotes Manitou administrator Jason Wells as saying. “Without that revenue stream, we will see a drop-off in our reserves relative to this year. With that revenue stream, that might not be the case.”

The town would not confirm or deny the numbers when contacted by the Indy, at first citing privacy laws and then deferring to finance director Rebecca Davis, who's out of town until Monday. Through a spokesman, Maggie's Farm owner Bill Conkling said the whole amount had been collected, with part of it already having been paid to the city.

"Conkling cautioned that the tax dollar amount doesn’t mean the city can count on receiving that amount on a regular basis," writes the Bulletin. "In fact, it may be months, perhaps years, before the tax collections level out, he said."

Should the initial rate of sales hold up, which is generally unlikely as the novelty wears off, Manitou would be looking at additional revenue of around $1.3 million, a significant amount in a budget with projected expenses of $11.9 million.

A second RMJ store is allowed for in city code, though the current occupant, Reserve 1, still hasn't expanded into recreational sales. The town will vote in November on the issue of continuing to allow stores to operate.

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