PALMER LAKE — With the sales of recreational marijuana starting Tuesday at some Colorado Springs stores, Palmer Lake cannabis shop owners say they aren't worried about the new competition.
Marijuana sales and tax revenue were booming in Colorado during the pandemic. According to a report prepared by the Joint Budget Committee staff in November, in Fiscal Year (FY) 2023-24 the state collected about $248.2 million from special sales tax on retail marijuana, an excise tax on wholesale transfers of retail marijuana meant to support education, and the State's regular sales tax, which applies to medical marijuana and some non-marijuana products. The amount in FY23-24 was down 41.5 percent since FY 20-21, the peak of the pandemic when the state collected about $424 million.
The report points to several factors for the decline in sales and tax revenue when it comes to marijuana including:
-The sale of intoxicating hemp (TCH-infused drinks and edibles)
-Increasing competition (24 states now allow the sale of recreational marijuana)
-Excess supply
-"Additional variables perhaps not yet fully understood"
One of the owners of Alpine Essentials in Palmer Lake explained they have been in business for a decade, originally the only recreational marijuana cultivation business in El Paso County, at the time the State saw a rise in marijuana sales and tax revenue.
"You know, flower prices skyrocketed, it was a great time to be a cultivator," Melissa Woodward of Alpine Essentials explained. "The years that followed were also very interesting, because then prices plummeted. I think everyone kind of saw this as a gold rush."
Woodward explains that the marijuana business is like any other agriculture business.
"It's a great crop to be in, but at the end of the day, it really is agriculture," Woodward added. "You can have crop loss, you can have pests, and when everyone suddenly wants to grow this, crop prices are going to come down. So like in any industry, there is going to be give and take with that."
Woodward's business started selling recreational marijuana on April 1, 2023, after voters approved the sale of retail marijuana in the town just north of Monument. Voters approved an additional 5% sales tax on recreational marijuana sales in Palmer Lake.
WATCH: Recreational dispensaries coming to Palmer Lake
If you walk a few minutes east of Woodward's business, you'll find Dead Flowers, the second marijuana shop in Palmer Lake. The vibes in each store appear to be polar opposites. Alpine Essentials is brightly lit, with buds on display similar to how an Apple Store displays its phones. As you walk into Dead Flowers, you're greeted by rock memorabilia decorating the walls, leading to a dimly lit display with art covering the walls. The name "Dead Flowers" was inspired by the title of a Rolling Stones song. The owner, Dino Salvatori, believes the tax revenue from recreational marijuana has been huge for the Town of Palmer Lake.
"Palmer Lake, as you know, does not have a grocery store, doesn't have a gas station," Salvatori said. "It's got very little sources of income, very little revenue sources. So I think... I know... going recreational two years ago has been substantial."
Both Salvatori and Woodward welcome the competition now that stores in Colorado Springs can start selling recreational cannabis. As of Tuesday morning, 29 businesses in Colorado Springs had "active" licenses to sell recreational marijuana. Salvatori believes about 70 percent of his customers are from outside of El Paso County, given the few options in Douglas County and their location on the north side of the county. Salvitori believes his business stands out as being unique, with rock legends painted on the walls surrounding his merchandise.
"We're gonna lose some business," Salvatori added. "But if you look around my place, I don't really have any competition. There's other people that do what we do, but we have it pretty good."
While visiting Dead Flowers on Monday in the afternoon, there was a constant flow of customers in and out. They were greeted by a man sitting behind a desk with a painting of the Rolling Stones logo surrounding him, the iconic red lips and tongue. At Alpine Essentials, the store was full of people after 2 p.m. Woodward said they aren't afraid of new competition.
"I think competition is healthy," Woodward said with a smile. "I think really, I'm just going to rely on our laurels. And we have so many loyal customers, our customer service is really what it's going to come down to."
News5 reached out to the Palmer Lake Town Administrator to see if any town officials had comment about recreational marijuana sales starting in Colorado Springs. Dawn Collins, the town administrator and clerk, cited state law explaining they can't share specific revenue information because the town has fewer than three stores. The same goes for Manitou Springs, the tax revenue tied to marijuana stores are included in the general sales tax category due to privacy laws.
Some city council members in Manitou Springs did share concerns over the possibility of lost tax revenue in a November regular meeting where the budget was discussed. One council member wanted staff to prepare estimates on what could be lost, but it still isn't clear what, if any impact there will be. In Manitou Springs there is a 15 percent state special sales tax, 10 percent city special tax, and 6.13 percent sales tax on retail marijuana.
Both Alpine Essentials and Dead Flowers have been bringing more than just tax revenue to the community of Palmer Lake. Both businesses say they will be supporting the Festival on the Fourth, July 4th at Centennial Park and Palmer Lake. The event is expected to bring in up to 8,000 people and was canceled in 2024. Alpine Essentials recently supported the Palmer Lake Art Group and their comedy show. Dead Flowers has also scheduled a car show for outside their shop on June 1, proceeds from the event which includes a BBQ will benefit the fire department.
Bill Conkling, the founder and CEO of Maggie's Farm, which has locations in Colorado Springs, Pueblo and Manitou Springs, also welcomes the competition. In a phone call with News5 Conkling believes their customer service and prices will keep people coming through their doors despite more options in Colorado Springs. Conkling sent the following statement to News5:
WHO WE ARE AND HOW WE WILL MOVE FORWARD -
As one of Colorado’s standing original founders and owner of the first and longest running Clean Green Certified Organic farm (mirroring USDA Organic) Maggie’s Farm was founded and grew only from hard work and dedication to our customer. Not from outside investment. We refused to sell out for profit but instead stayed the course to provide access of recreational cannabis for all. We never supported opposition of cannabis access anywhere, including Colorado Springs. Instead, we were one of the few who went the other direction and always supported access as well as federal legalization out of the gate, before it was cool to do so among medical operators 15 years ago. Maggie’s Farm has always embraced competition, as this encourages us to continually elevate our standards. We have always been committed to quality and sustainability, and we strive to do what is right, rather than what is easy.
WHAT’S NEW ?
We wouldn’t be here without the support of Colorado Springs, and for us it’s an opportunity to extend what we’ve built for the past 15 years. One shift you will see from us is the offering of a stand-out product to other business partners throughout the Colorado Springs community. Clean Green Certified “Pure Blaze” pre-rolls, offered at a great price. Pure Blaze is a best seller state-wide because it offers everything most people want. A top-shelf quality organic pre-roll with high-terpene values, natural flavor and effects and a consistent smooth smoking experience sold at a great price. It is not a flashy gimmick, but a product with great integrity and with remarkable recent blind-test results among best sellers state-wide.
WHAT SETS US APART FROM LARGE MSO’S?
Maggie’s has always been a locally owned and operated family business. We grow our own organic flower, we control quality from seed to sale, and we’ve been part of the Southern Colorado community since the beginning. We’re not a Wall Street cannabis company. We’re your neighbor, and we wouldn’t be here without you. Together we’ve grown to trust one another and that matters. We’re not new to this and we’re excited to grow with Colorado Springs.
WATCH: The History of Cannabis Legalization in Colorado
Statewide, the marijuana business has been a billion-dollar industry for a decade. A breakdown of sales totals in Colorado statewide can be viewed below:
| Year | Calendar Year Total | Total to Date |
|---|---|---|
| 2024 | $1,397,131,978 | $16,902,933,995 |
| 2023 | $1,529,324,553 | $15,505,802,017 |
| 2022 | $1,768,688,837 | $13,946,477,463 |
| 2021 | $2,228,994,553 | $12,207,788,626 |
| 2020 | $2,191,091,679 | $9,978,794,073 |
| 2019 | $1,747,990,628 | $7,787,702,393 |
| 2018 | $1,545,691,080 | $6,039,711,766 |
| 2017 | $1,507,702,219 | $4,494,020,686 |
| 2016 | $1,307,203,473 | $2,986,318,467 |
| 2015 | $995,591,255 | $1,679,114,994 |
| 2014 | $683,523,739 | $683,523,739 |
Sales started January 2014.
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