Desert Hot Springs will be home to at least two more cannabis companies by the end of 2022.
Morongo Business Park in Desert Hot Springs on Thursday celebrated the start of construction on a third building on the site, which will be leased to cannabis companies when complete.
The industrial park — located at 13310 Little Morongo Road — is geared towards cannabis tenants, said David Snider, manager of Snider Investments, LLC. There is no retail presence on the property and the businesses are wholesalers, he added.
“They do cultivation and retail,” Snider said. “There’s a combination of several different cannabis disciplines here.”
The Santa Barbara-based real estate development and investment company started the project in 2015 and has completed and leased two buildings, according to Snider. He said construction of the third building – Phase III – should be completed in September and tenants would move in later that month.
There are already around 400 employees at the Morongo Business Park and the new building is likely to add 400 more, Snider said.
“We are very excited to have the opportunity to build and own here and continue to help build the tax base for the City of Desert Hot Springs with good tenants,” said Snider.
He added that plans for a fourth building are likely to be announced later this year.
Mayor Scott Matas, Mayor Pro Tem Gary Gardner and Councilor Jan Pye also attended the groundbreaking ceremony. During his speech, Matas said Desert Hot Springs has supported cannabis companies, and those companies have in turn supported the city with tax revenues that could exceed $8 million this year.
“Now (to) some people in the industry, $8 million isn’t a lot of money. For a small city like ours with a budget of $20 million, that’s huge,” Matas said. “It keeps our police going, our fire departments manned, our roads built, and so much more for our community.”
The upcoming new building is about 50% let by the tenants InstaJane and High Creations.
InstaJane is a marijuana delivery service based in Los Angeles. Grace Li, delivery manager and co-founder of InstaJane, said they plan to expand into Desert Hot Springs and Palm Springs.
She said there aren’t many delivery services that guarantee delivery in under an hour, and that’s something people are looking for.
“We realized there was a gap in the market in this area and a lot of our delivery customers are disabled or… on an older spectrum, so they’re really looking for something more convenient to just be able to order it online and have it arrive within an hour,” said Li.
High Creations founders Jay Juarez and Gabriel Muñoz, both from Palm Springs, said they have been in business for about 10 years. Muñoz said High Creations wants to come to Desert Hot Springs so it can expand.
“Space was more important than anything,” Muñoz said. “Because in Palm Springs, Cathedral City, there were a lot of smaller buildings, and we kind of wanted to do it on a larger scale, so that… led us here.”
Juarez said High Creations’ goal is to help the community and create jobs since he and Muñoz were born and raised in the area.
“Being part of the community and giving back is really important to us, so that’s our main goal,” he said. “Our plan is to grow very high quality produce and to be really proud of what we do.”
Ani Gasparyan covers the cities of Desert Hot Springs and Cathedral City in the western Coachella Valley. Reach them at firstname.lastname@example.org.