Del-Gro expected to bring millions in revenue to Coachella



Area surround Ajax Wrecking Yard and future site of Del-Gro (Photo courtesy of Jesus Nunez)

The Coachella City Council unanimously approved development on the Coachella Valley’s second marijuana facility.

Ben Levine is the CEO and founder of Del-Gro, a real estate development company. He told the Desert Sun, “We chose Coachella because of the support of the city.”

The City of Coachella expects that this operation will bring in upwards of  5.5 million dollars a year in revenue.

According to DelGro’s website, their goal is to, “provide innovative grow facilities for boutique cannabis cultivators. In addition to a place to grow, Del-Gro helps cultivators develop their business by providing access to experienced cultivation professionals to help with distribution, licensing, compliance and raising capital.”

According to the Desert Sun, “The $27.5 million project will be located on the 14.3 acres of the current Ajax Wrecking Yard off of Avenue 48. The facility will consist of 16 marijuana cultivation buildings, a warehouse and a central processing plant that will have room for offices and marijuana processing, drying and packaging.”

Levine plans to allow growers and manufacturers to rent spaces for a fee and expects to receive approximately 56 million a year. Additionally, Del-Gro agrees to pay the city quarterly 4 percent of the operators’ gross receipts and a 2 percent manufacturing fee. The city of Coachella is welcoming to Del-Gro and all other cannabis-related businesses. Coachella Mayor, Steven Hernandez, said this is a huge opportunity for our citizens. “From a quality of life perspective, this is allowing our residents to enter the middle class.” Del-Gro expects to employ more than 200 people with wages starting between $15-25 an hour.

This is not the valley’s first city approved marijuana cultivation facility. Canndescent a Desert Hot Springs facility opened its doors in late Sept. of 2016. The Desert Sun stated that they, “presented council members with a check for $135,000, the city’s first marijuana cultivation tax revenues.”

Del-Gro will also be accompanied by Cultivation Technologies Inc., which is a facility that is based in Irvine, Calif.

They have plans to open an 111,500-square-foot marijuana cultivation and manufacturing facility in Coachella as well and plans to bring in four million in tax revenue.

With the passing and initiation of Prop 64, marijuana is bringing in business and revenue to cities who are welcoming to the legislation.

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