West Hollywood City Council is set to consider a $250,000 extension for cannabis marketing with Emerald Village West Hollywood, a member-based nonprofit that promotes the city’s licensed cannabis businesses. The proposed agreement, scheduled for discussion Monday, June 29, would fund the group through June 30, 2027.
City officials framed the request as a response to falling cannabis tax receipts and market pressure. California’s legal cannabis sector has seen declining tax revenues amid heavy competition, high regulatory costs and growth of illicit operators. West Hollywood currently has 11 active licensed cannabis businesses; city leaders say the marketing funds aim to attract customers to those shops and to nearby restaurants and retailers.
The $250,000 request follows prior spending and contract amendments. Council originally approved a $50,000 contract in June 2024 and later expanded that amount. Subsequent amendments raised the total contract value to more than $440,000 covering work through June 2026. According to a city staff report, Emerald Village West Hollywood had spent about $427,000 of the current agreement as of June 1 and is expected to exhaust the remaining balance before that contract expires at the end of the month.
Emerald Village West Hollywood began in 2021. In the last year the organization reported these measurable activities: – Held regular marketing committee meetings with licensed cannabis retailers – Recruited new businesses to participate in city promotions – Distributed 5,500 printed cannabis maps and a responsible-use guide – Placed public-consumption awareness materials in bars and nightclubs across the Rainbow District – Launched visitor education tied to the 2026 FIFA World Cup – Attended cannabis industry conferences in the U.S. and Europe – Ran influencer tours that reached more than 4 million followers – Generated roughly 164,000 content views through seasonal ad campaigns and social media promotions
The staff report lists those outputs as the basis for continued funding. For the coming fiscal year, Emerald Village plans to maintain many existing efforts and to add several new events and initiatives: an annual Cannabis, Culture and Change Conference, participation in World Pride in Amsterdam, and the West Hollyweed Awards.
The proposed agreement was included in the city’s adopted fiscal year 2026-27 budget. If the council approves the extension, the contract will require quarterly progress reports with specific marketing metrics and outcomes. Those reports are intended to show reach, engagement and other quantifiable results from city-funded promotions.
City officials argue the marketing program can increase foot traffic to licensed cannabis retailers and create secondary spending at adjacent restaurants and shops. Opponents and critics have raised questions in other jurisdictions about public spending on industry promotion amid falling tax receipts; the staff report does not project exact tax-revenue returns tied to the proposed $250,000.
Key dates and figures – Council discussion: Monday, June 29 – Proposed funding: up to $250,000 (through June 30, 2027) – Existing contract value after prior amendments: more than $440,000 (through June 2026) – Amount spent under current agreement as of June 1: ~$427,000 – Number of licensed cannabis businesses in West Hollywood: 11 – Outreach metrics reported: 5,500 printed maps; influencer reach >4 million followers; ~164,000 content views
The council will decide whether to authorize the one-year extension and the reporting requirements. Supporters say the funding targets legal, licensed businesses and visitor education; critics may question the fiscal trade-offs while tax revenues decline. The quarterly reports, if produced, will provide specific performance numbers the city can use to evaluate whether the marketing investment increased visits to licensed businesses or delivered measurable economic activity in West Hollywood.
