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Turlock draws stiff competition for cannabis dispensaries
City selects top four candidates
cannabis update
Firehouse, which operates Patient Care First in Ceres (pictured), Phenos in Modesto and Flavors in Riverbank, was one of four commercial cannabis companies selected by the City of Turlock to apply to operate in Turlock (Journal file photo).

After receiving over 30 proposals from candidates vying for a spot as one of Turlock’s four future dispensaries, City staff this week announced the retail cannabis businesses they’ve invited to operate in town.

Following the City Council’s approval of a cannabis pilot program in May, a June meeting at City Hall saw over 70 interested parties convene to hear more information on the selection and application process for opening a commercial cannabis business in Turlock, whether it be retail, manufacturing, testing or distribution. The City then accepted 40 Request for Qualifications packets from commercial cannabis stakeholders, 32 of which were proposals for retail dispensary locations.

Last week, a panel consisting of City Manager Bob Lawton, Assistant to the City Manager for Economic Development and Housing Maryn Pitt and Director of Municipal Services Michael Cooke interviewed each of the 32 dispensary respondents in addition to evaluating and scoring each respondent’s RFQ proposal, ultimately selecting four companies that will be able to apply to operate within City limits: Firehouse, Evergreen, Perfect Union and MedMen.

The sheer volume of original respondents made the selection process difficult, City Attorney Doug White said, as a majority of candidates were well-qualified. However, this led the panel to select a top four that is the best of the best, White explained, with each company ranking as the number one dispensary in their respective markets.

“Frankly, the whole top 10 was pretty amazing,” White said. “The competition is stiff when you get 32 people who apply…anyone who hasn’t had significant cannabis experience beforehand, it was going to be almost impossible to make the cut just because of the level of competition. I’ve never seen anything like it.”

TOP FOUR DISPENSARY CANDIDATES

Firehouse

Evergreen

Perfect Union

MedMen

 

TOP FIVE THROUGH 10 (IN NO PARTICULAR ORDER)

CPC Turlock

JDI Farms

Medallion

MESA Bakery – Cookies

Natural Healing Center

People’s Remedy

The City of Turlock is the 10th city White has helped develop a cannabis ordinance for. Companies who have been approved in other towns, like JDI Farms which operates in Patterson, Empire and Oakdale, came up short in Turlock, finishing behind the selected companies that have anywhere from $10 million to $100 million in their bank accounts, according to White.

Of the four selected companies, Firehouse is the only locally-owned dispensary conglomerate, operating Patient Care First in Ceres, Phenos in Modesto and Flavors in Riverbank. The stores are the top-producing locations in Stanislaus County, which helped their standings in the competitive interview process, White said.

The dispensaries that came in fifth through 10th will be next in line if one of the top four is disqualified or withdraws from the process.

“It’s unlikely,” White said. “They’ve fought so hard for this.”

Evergreen is the number one producing cannabis retail business in Washington and a store in Turlock would be not only their first venture into the California market, but would likely also become their headquarters for the state. The company has an “outdoorsy, REI,” vibe to it, White said, contributing to the interviewing panel’s goal of appealing to different demographics with each unique dispensary.

Perfect Union has dispensaries in areas like Lake Tahoe, Morro Bay and Sacramento and is a company that has been operating for much longer than many of the other candidates, White explained. White described MedMen as the “Apple store” of dispensaries. MedMen operates stores across the United States and has more of a corporate look than other dispensaries. The panel thought MedMen would bring something unique to Turlock that can’t be found in other towns thanks to its sleek appearance.

White was surprised at not only the number of proposals the City received, but the sheer caliber of the interested candidates. While several locally-owned dispensaries weren’t chosen, White explained that the selected candidates were simply too experienced, too knowledgeable and too reliable to pass up.

Developing a cannabis pilot program much later than other cities actually gave Turlock an advantage, he added, with a list of already-established candidates to choose from.

“I thought going into this Turlock would be severely disadvantaged…but it had the opposite effect,” he said. “This is probably three times more competitive than the Modesto process…people who were approved in Modesto weren’t even in our top 10.”

Potential locations that the four dispensaries included in their RFQs were Lander Avenue and West Main Street, to name two, though official locations will be included in each business’ forthcoming application. While downtown dispensary zoning was recently approved by the Planning Commission, the City Council has yet to take action on the item. If approved, White said it’s likely at least one of the dispensaries will attempt to set up shop downtown.

“Ideally, I think if you’re going to have four and if they can find the right building and right parking situation, it would be at an appropriate place to put it,” White said.

White advised anyone worried about out-of-towners establishing cannabis businesses in Turlock to think about quality.

“I think you always are conscious of the fact there may be backlash. I don’t see anybody saying let’s not have Target or Costco in town…this isn’t just your ordinary business. The amount of money people have to be willing to invest to be able to be legally compliant and stay legally compliant makes it almost unattainable for most folks, and there’s a barrier of entry for people who have never been in the business before,” White said. “There’s a benefit of having people who are number one in every place they’ve been, who have operated for years on end.”

Next, the four selected candidates will submit applications for Conditional Use Permits to operate their dispensaries in Turlock and create development agreements with the City, which have to be approved by the Planning Commission before going before the City Council. White has stated previously that he expects Turlock’s first dispensaries to be open by January. 

Costa, Gray propose congressional bill to address critical physician shortage in rural areas
Costa and Gray
San Joaquin Valley congressional members Rep. Jim Costa, D-Fresno, left, and Rep. Adam Gray, D-Merced, are shown discussing their bill H.R. 2106 in a virtual press conference on Tuesday.

BY TIM SHEEHAN

CV Journalism Collaborative

Two San Joaquin Valley congressional representatives have introduced a bill that could help address the vast shortage of doctors in the region, particularly in underserved areas. 

Rep. Jim Costa, D-Fresno, and Rep. Adam Gray, D-Merced, say the Medical Education Act would, if passed, establish a program of grants to support expanded medical education programs in underserved areas of the nation.

The Valley could be one of the key areas that would benefit from the legislation. California has about 90 primary care doctors per 100,000 residents statewide, the federal Health Resources & Services Administration reported in November 2024. 

That’s more than the ratio in some states, and less than some others. The nationwide ratio is about 84 doctors per 100,000 residents.

But in the San Joaquin Valley, home to about 4.3 million people, doctors are much more scarce – about 47 primary care physicians per 100,000 residents, according to Dr. Tom Utecht, chief medical officer at the Fresno-based Community Health System.

That number is “a little over half of what is necessary to take care of a population,” Utecht said Tuesday in a video press conference. “We have the lowest physicians-per-capita rate in all of California, in the San Joaquin Valley.”

Introduced last month, the Medical Education Act is something of a placeholder for the time being until the Congressional Research Service can weigh in with financial estimates of what is needed in different parts of the country, Costa said. 

A companion version was introduced in March in the U.S. Senate by Sen. Tim Kaine, D-West Virginia, and Sen. Alex Padilla, D-Los Angeles.

At this point, the legislation does not specify how much money will ultimately be sought or how grants would be structured.

Costa said the shortage of doctors in the region “is combined with language barriers, cultural barriers and distances … and that would really go for rural parts of our country regardless where folks live.”

“If you live in rural areas, it’s just more difficult to have access to good quality health care,” he added.

Costa said the legislation, if it can survive a Republican-controlled House and Senate and a Republican president, “would be transformative because it would invest expanded resources to minority-serving institutions and colleges located in rural and underserved areas to establish schools of medicine and osteopathic medicine.”

The bill would also create an avenue for more historically Black colleges and universities, as well as Hispanic-serving institutions, to establish medical education programs, Costa said.

Gray noted that when he was in the state Legislature, he and colleagues “worked to get hundreds of millions of dollars in funding to expand the UC Merced campus, to ultimately secure the funding to put the first medical education building up on campus.”

Gray added that the UC San Francisco’s medical education program in Fresno “is an important part of creating the (medical) workforce of the future for the valley, but more importantly, solving this access to care issue that plagues Valley communities.”

At UC Merced, director of medical education Dr. Margo Vener said there has been a surge of interest in the university’s program that funnels students through an undergraduate program for their bachelor of science degree through a medical school degree in collaboration with UC San Francisco.

“All the students that we are enrolling are from the Valley and for the Valley, because they want to really make a difference in promoting health in their communities,” Vener said. That, she added, is likely to eventually translate to those would-be doctors to stay in the Valley to practice medicine.

“The data suggests that two factors really strongly influence where physicians stay to practice,” Vener said. “One of them is where they’re from, which, of course, is why we’re recruiting students from the Valley for the Valley just to stay (and) be doctors for their community. And the other factor is where you went to residency. Those are the two biggest drivers.”

That’s something that was underscored by Dr. Kenny Banh, assistant dean of undergraduate education at UCSF Fresno. “Regional campuses such as UC Merced and UCSF Fresno not only grow doctors, but they take those doctors, physicians and medical students from their communities in the region, and train them in those regions to go back to be physicians in those areas,” he said.

While the costs of the Costa-Gray legislation are yet to be determined, Banh said there are also costs associated with doing nothing to expand medical education.

“There’s health care costs, regardless of how we work it, if we don’t invest in having an adequate supply of physicians,” Banh said. “There’s a cost on the human that can’t access care” and doesn’t get to a doctor until a condition is not treatable “or with significantly worse morbidity and mortality outcomes.”

“And that cost is borne by health systems taxpayers, one way or the other,” Banh added.

But even if the Costa-Gray bill were to pass in this congressional session, the payoff of home-grown medical schools producing a bumper crop of physicians in the Valley or other deprived parts of the country would be years down the road.

“I think it’s really important to understand why we need to invest now for our future, because it takes so darn long” for a student to go from being a college freshman to a practicing doctor, surgeon or specialist, UC Merced’s Vener said. 

After a four-year bachelor’s degree, a student must then complete four years of medical school, which in turn is followed by a residency of three to five years.

“Then often people will do a fellowship to become, for example, a cardiologist or a gastroenterologist or something like that,” she added.

“If you start investing in just one student now, it’s going to take such a long time before they really are there to take care of you at that moment when you need them to be your gastroenterologist, your cardiologist, your emergency physician, or, dare I say, your family doctor,” Vener said.

That, she said, is why it’s also necessary to expand residency programs that can attract would-be physicians into the region in hopes that they will remain once they complete their training. “We need those doctors now, and that’s why this effort is important,” Vener said, “because this is what will both inspire people to stay, but also inspire people to really come and embrace the communities and serve them.”

In a related development, state Assemblymember Esmeralda Soria, D-Fresno, recently introduced a bill for the University of California system to develop a comprehensive funding plan for expanding the current SJV Prime+ BS-to-MD partnership between UC San Francisco and UC Merced, with the goal of transitioning the program to a fully independent medical school operated by UC Merced.

“We have seen firsthand the impacts of medical workforce shortages throughout the Central Valley,” Soria said in a prepared statement. “AB 58 would help ensure the Legislature is equipped with the information needed to secure appropriate funding for the medical education provided for our community at UC Merced.”

— Tim Sheehan is the Health Care Reporting Fellow at the nonprofit Central Valley Journalism Collaborative. The fellowship is supported by a grant from the Fresno State Institute for Media and Public Trust. Contact Sheehan at tim@cvlocaljournalism.org.