Coachella City Council has approved, by unanimous vote, a revised proposal for the construction of greenhouses within the Coachella cultivation zone. In light of this positive news from City Council, High Hampton anticipates a significant reduction in the Company's future CAPEX financial obligations for the build out of its 10.8 acre property. The Company's engineering advisors, Infrastructure Engineers Inc., estimate a 30% build-out savings relative to the construction of indoor growing facilities, resulting in lowered financing requirements and higher return on investment for the project.
The Company, in collaboration with Infrastructure Engineers, has revised the construction plans for the Conditional Use Permit application and is anticipating approval late December 2017 or early January 2018. The proposed cannabis facility will be comprised of a 167,916 square foot greenhouse area and 39,832 square foot production, extraction and administration facility in lieu of indoor growing facilities.
Prior to this decision, City Council had prohibited the construction of any greenhouses in the cultivation zone in favor of permanent, indoor growing facilities. This City Council decision shows significant support towards a growing cannabis industry in Coachella which is understood to bring full-time jobs to the area.
Newly announced strategic advisor Steve Selleck will lead the project development of the Company's facility, and board member David E. Argudo will oversee the cannabis related aspects of the build out given his extensive knowledge of cannabis growing techniques. The Company will also be adding various renewable energy power sources to their facilities, with a minimum of 40 percent of renewables on the project. There are further steps to be completed before the Company can start construction of their new facility, and this will include engaging with a reputable greenhouse firm and receipt of its CUP.
Brendan Purdy, CEO, commented: "The Company welcomes the news from Coachella's City Council approving the construction of greenhouses within the cultivation zone. This change in municipal ordinance considerably reduces the capital expenditure required to fund the project and reduces the timelines for final construction. Reducing cost and getting closer to revenue significantly increases the underlying economics of the project to the benefit of High Hampton's shareholders."
For more information:
highhampton.com
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