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WEBVTT FOR WAREHOUSES AND OTHERFACILITIES TO STAY OPEN AND STAYIN SACRAMENTO.BRIAN BENDIX AND HIS FAMILY HAVERUN THEIR SACRAMENTOrt BUSINESS,AMERICAN STRIPPING COMPANY, FORTHREE DECADES.THEY'VE OVERCOME COMPETITION ANDRECESSION, BUT THE ARRIVAL OFrtMARIJUANA CULTIVATION HAS PUTTHEM IN A BIND.>> IT'S JUST NOT PRETTY OUTTHERE RIGHT NOW.KEVIN: THE LEASE IS UP AND NOWHE HrtAS TO MOVE.>> IF YOU DON'T HAVE A LEASE INPLACE, YOU'RE GETTING KICKEDOUT, RAN OUT.FOR EXAMPLE, MY LEASER TOLD MEHE COULD GET THREE TO FOUR TIMESTHE AMOUNT THAT I'M PAYING HIM.rtKEVIN: REAL ESTATE EXPERTS KCRA3 INVESTIGATES SPOKE WITH SAYINDOOR POT FARMS ARE DRIVING UPLEASING RATES IN AREAS WHERE NEWGROW PERMITS ARE BEING GRANTED.rtTHE CITY OF SACRAMENTO'S ZONINGADMINISTRATOR HAS APPROVED SIXPROPERTIES FOR COMMERCIAL GROWS.ALL OF THEM ARE IN THE CITY'SSOUTHEAST INDUSTRIAL SrtECTION.AND AS WE FIRST SHOWED YOU INJUNE, THERE ARE MANY MORE IN THEWORKS.BENDIX SAYS THE INFLUX OFMARIJUANA MONEY IS TAKING ITSTOLL.rt>> THEY CAN'T PUT IT IN A BANK,SO THEY ARE COMING DOWN HERE TOTHE NEW FRONTIER AND PUSHING USOUT.SMALL BUSINESSrt.KEVIN: PROSPECTIVE POTBUSINESSES WILL STILL HAVE TOLAY OUT AN OPERATIONS PLAN,DETAILING EVERYTHING FROMrtSECURITY, TO HOURS OF OPERATION,TO HOW IT WILL CONTROL ANY SMELLCOMING FROM THE FACILITY.JOE DEVLIN, WHO HEADS MARIJUANAREGULATION FOR THE CITY, TOLD USEARLIER EACH INDIVIDUAL SITEWILL HAVE ITrtS OWN REQUIREMENTSDEPENDING ON THE SURROUNDINGSAND THE CIRCUMSTANCES.>> THAT IS WHERE WE ARE GOING TOrtLAY OUT IN DETAIL THE -- ANDEVALUATE THEIR PROPOSALS FOR HOWTHEY ARE GOING TO BE GOODNEIGHBORS.rtHOW THEY ARE GOING TO KEEP ASAFE FACILITY.KEVIN: BUT BENDIX SAYS THE CITYHASN'T DONE ENOUGH TO DEAL WITHTHE FALLOUT.>> I LOOKED AT A BUILDINGYESTERDAY.I'VE GOT A REALTOR ON IT.rt

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The city of Sacramento has approved its first marijuana grow permits for commercial operations.KCRA 3 Investigates discovered six conditional-use permits have been approved by the city's zoning administrator following hearings in August.Three more properties are awaiting a final decision from the administrator and dozens more are awaiting hearing dates.More than 60 property owners submitted applications for the ability to grow marijuana plants in warehouses and facilities within sections of the city zoned for light industrial use since the beginning of the year. The permit is the first of a two-part process to begin operations. Business owners still have to get business operation plans approved by the city before they can legally start growing cannabis commercially in the city. No business operation plans have been approved yet.Other small business owners have complained the city's pot permit process has driven up commercial real estate rates and is forcing businesses with expiring leases to look for other locations, some outside city limits.Brian Bendix and his family run American Stripping Company in Sacramento. For three decades , they've put new finishes on cars and boats. But the arrival of marijuana cultivation has put them in a bind."It's just not pretty out there right now," Bendix said.He said the influx of marijuana money is taking its toll on other businesses."They can't put it in a bank and so they are coming down here to the new frontier and pushing us out," he said.The city of Sacramento opted not to put caps on the number of conditional-use permits it approves for marijuana cultivation.