This small Colorado town has 1 dispensary for every 170 inhabitants.

Parachute, a small Colorado town of just 1,200 people, approved the opening of a 7th cannabis dispensary, Tokin’ Tipi, in mid-August. The town had already made a name for itself earlier this year with the opening of the first cannabis drive-in.

The main reason for this cannabis boom is the town's road infrastructure. Crossed by Interstate 70, an interstate highway, Parachute welcomes some 135,000 visitors a year, who stop off in the town to take a break on their journeys. And that's what attracts the cannabis industry.

During the legalization of cannabis in Colorado, passed in 2012 and in effect since January 1, 2014, the city had banned the establishment of cannabis-related businesses. After lengthy negotiations and some controversy, it slowly reversed its position, finally issuing its first licenses in June 2015. The city's intention was to compensate for the loss of revenue due to the natural gas crisis.

Of the 133,529$ in taxes captured in June 2017, 35% came from local taxes on the sale of recreational cannabis, 43% if state taxes are taken into account.

«In reality, [recreational cannabis] is supplanting what we lost with the decline of natural gas,» explains Stuart McArthur, the city's administrator.

Cannabis not only boosts tax revenues, but also local businesses. The city's 20 biggest non-cannabis businesses (hotels, liquor stores, grocery stores...) saw their June sales increase by 71% over last year, and by 89% for May.

Even so, some dispensary owners were reluctant to see the arrival of a new cannabic franchise, which is bound to increase competition.

«I was elected because I told people I was going to support every business in town. Parachute is open for business,» said Fred Andersen, town treasurer. «It's not up to us to choose who loses and who wins. Parachute is open for business and if you want to open a business, that is legal and honest, you are welcome to me.»

Last July, however, the city passed an emergency ordinance establishing a moratorium on cannabis-related license applications, in order to preserve the city's public health, safety and tranquility. The moratorium only restricts applicants who file their applications after the date of the ordinance. In addition to Tokin’ Tipi, the city received 3 new applications before the ordinance was signed.