Denver, the de facto capital of the marijuana sector, may further forestall licensing for new entrants looking to get into the recreational cannabis industry.
In 2013, the Denver City Council approved a two-year moratorium preventing new players from entering the adult-use marijuana industry, in essence only allowing previously licensed medical cannabis businesses to obtain permits for retail stores, grows and infused products companies serving rec customers.
The moratorium is up for renewal before it expires Jan. 1.
That has city officials wondering if the Denver marijuana market already has enough business players. More than one proposal has already been floated to extend the rec moratorium for another two years, according to the Denver Post.
An additional proposal would also bar new MMJ businesses from being licensed for the same time frame.
The possibility of closing off the Denver market to new companies wasn’t rejected out of hand by the Colorado-based Marijuana Industry Group (MIG), which suggested in a press release that the space may be full already and that it wouldn’t oppose a new moratorium.
MIG said in a statement that it “supports responsible regulation and expansion of the industry,” but added, “at this point it appears the number of businesses is in line with market demand.”
Other industry interests, however, are intending to fight the moratorium extension, including attorney Christian Sederberg, a longtime industry advocate who helped legalize rec marijuana in the state.
The city council will next take up the issue at a Nov. 24 meeting.