Desert Hot Springs in California has the potential to turn into the Silicon Valley of Cannabis industry.

It is fast becoming a local hub for the booming pot enterprise. Marijuana market research company Arcview Group said this state comprise over ¼ of legal pot sales in all 50 American states and Canada.

There are five reasons this development can happen.

  1. Desert Hot Springs has lived under the shadow of Palm Springs known for its resorts, hotels, spas, and golf courses for many years. In 2014, the city headed towards bankruptcy. It welcomed cannabis as primary source of income. Residents voted to authorize operations of medical dispensaries and indoor weed cultivation. The passage of Proposition 64 or Adult Use of Marijuana Act makes this vision more viable.
  2. Desert Hot Springs is primed to become the regional hub of marijuana farming. The city is just two hours away from Los Angeles, the second-biggest metropolis in the United States. The proximity to LA is an added boost to the likelihood of the city emerging as the Silicon Valley of Cannabis industry.
  3. Other urban centers in California like Coachella and Cathedral City embraced cannabis growers. However, Desert Hot Springs has been the most enticing to stakeholders. The High Road Consulting Group can attest to this scenario. The marijuana consulting company works with planters to put up tilling facilities in the area. The Mission Springs Water District does not impose water supply controls on the pot industry.
  4. The business, as well as the political environment, is perfect for marijuana growing. Officials of Desert Hot Springs have relied on the suitable climate to make up for lack of infrastructure. They demonstrated the willingness to cooperate with local companies. Local legislators are pushing an ordinance allowing extraction laboratories in more cultivation zones.
  5. Old industrial structures and large unproductive parcels of desert land have become the starting point for indoor cannabis growing operations in the country. You can compare it to the California Gold Rush in 1848. Meanwhile, tax income from these businesses can place the city on the course towards economic upturn. Desert Hot Springs can finally stand as one of the leaders in weed cultivation.

The Path to Silicon Valley Status

The rush of prospective investors in the city has proven a positive development for landowners. In places where cultivators are purchasing land, property values have already tripled. Even then, many challenges remain. For instance, indoor farms need a large amount of electricity.

Desert Hot Springs Mayor Scott Mattas announced recently he looks forward to marijuana tax revenues adding around $10 million annually by 2021. This is projected to increase to $25 million by the year 2026. Key players in the industry also pin their hopes in November.

Two months from now, Californians will vote on the possible legalization of recreational cannabis use. This could be the turning point when Desert Hot Springs will surface as the Silicon Valley of Cannabis industry.