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1-502 Policy in Kittitas County, Washington Marijuana has long been a problematic policy issue for local governments. Washington state law 1-502 addresses these issues and resolves many problems associated with marijuana use in the county. By moving policy to a taxed and regulated system, a significant level of control and visibility is brought into an industry that previously was without any type of viable restraints. This document brought into the county record will highlight some of the reasons why state law should be followed in Kittitas County. Economic Benefits The primary economic benefit to the county will be revenues from the production of a marijuana crop. Kittitas has an ideal sunny and dry climate for the production of cannabis and this crop will expand and diversify the county agricultural base. Currently Timothy Hay is the dominant crop in the county with revenues estimated at around 35M a year. Much of this production goes to export, which can be a fickle market due to fluctuating transportation costs and competition from foreign producers. Conservative estimates from the Washington State LCB place the retail value of the marijuana grown in the state at around 400M dollars which implies a wholesale price for the crop at around 200M. Production of this commodity is dominated by indoor growers on the west side of the state. This indoor production is extremely expensive and also a significant waste of the state's energy resources. The production costs of west coast indoor cannabis runs around 1.50 a gram when outdoor production in Kittitas County could be optimized to run at around .50 a gram. With positive county policy to treat cannabis as a standard agricultural crop, area producers could easily capture approximately 10-15% of this market bringing annual revenues of 20-30M dollars. This estimate would assume around 15 acres producing around 25 tons per year. Local jobs created in this scenario would be approximately 250. This would give the county an important new source of revenue and diversify the agricultural base that is dangerously exposed to the dynamics of mono-crop farming. It is difficult for Kittitas County to challenge the dominance of the Columbia Valley for wine production or to hope that a rural county such as this could compete with the west side of the state in high tech industries such as computers and aeronautics. It is however entirely possible for Kittitas to use its ample natural resources and abilities of its local farmers to take a significant percentage of the new 1-502 production industry. Looking at census data statistics for the county indicate that new opportunities for business and employment should be a priority: Kitties'" Business QuickFacts County Washington 4 Private nonfarm employment, percent change, 2010-2011 -3.3% 1.2%' ,&.'Persons below poverty level, percent, 2008-2012 21.8% 12.9% This data might be a bit lagging, but the numbers do demonstrate a disparity in performance and the great importance of positive economic policy in the county. Other positive economic considerations would be shared revenue from the taxes generated by the LCB (currently under consideration by state legislators) and the development of tourism. Although current rules do not allow public visitation to grow sites, in the future this may be allowed and be of similar benefit as the tourist industry in wine country that brings in almost as much money as the actual production.