Business Beat: What’s on tap for Catalyst Cannabis’ new Second Street location?

January 9, 2025

The former Grunion Gazette office in Belmont Shore. (Photo courtesy of Jo Murray)
The former Grunion Gazette office in Belmont Shore. (Photo courtesy of Jo Murray)
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PUBLISHED: January 9, 2025 at 8:20 AM PST

The former home of the Grunion Gazette — 5225 2nd St. — has been vacant for several years.

Catalyst Cannabis — with a store right next door — eventually leased the space, with plans to open a cannabis cafe in the Grunion’s former location, pending the passage of a new state bill.

Assembly Bill 1775, made law in September 2024, effectively expanded existing adult-use cannabis legislation to allow licensed cannabis retailers to sell food and beverages, and host live music and other events at their locations.

But even with that additional allowance by the state, AB 1775 left the final determination up to local cities.

“Despite any recent state legislation, jurisdictions retain local authority to decide which and how many cannabis license types they allow,” Long Beach’s manager of cannabis oversight Valencia Maria Romero said in an email.

That means that Catalyst’s original plan to open a cannabis cafe in the 2,160-square foot former newsroom with an upstairs loft is effectively off the table, for now at least.

“(I) don’t have 100% plan,” Elliot Lewis, owner of Catalyst, said on Monday, Jan. 6. “If I get some cash, (I) may do something similar to Anna’s Downtown.”

Anna’s Joint, at 449 Pine Ave., is a popular neighborhood pub that serves beer, small plates and a variety of grab-and-go items. They’re known for their tater tots, pickled eggs and pretzels.

Anna’s Joint, alongside the Catalyst Cannabis dispensaries in both Downtown Long Beach and Belmont Shore, are owned by Elliot and Anna Lewis.

“To open a business in Long Beach is so (expensive) — we have not committed to anything yet,” Lewis said. “Hopefully, we can get there. But they kind of made it so spending money to open a business is not worth it.”

Lewis also mentioned that he is also working on a “a couple of things” in North Carolina.

Both the former Grunion office and the existing Catalyst location, meanwhile, are currently on the market as a package deal with a $6 million price tag. According to the property listing, Catalyst just renewed its triple net leases with new ten-year terms.

Generally speaking, according to Kathie Lozano Sitton, a sales associate with Coldwell Banker Commercial Blair, long-term tenants help increase property value and attract potential investors.

“(Long-term leases) also make properties more marketable and attractive to investors who value consistent cash flow,” Lozano Sitton added.

Aside from the two properties, according to the property listing, the $6 million cost also includes the billboard atop the building.

2025 plans

Last week, I shared that plans for the year ahead in the Zaferia, Belmont Shore and Fourth Street areas of Long Beach included farmers markets, book fairs, sidewalk sales and pub crawls.

Now, this week, the Downtown Long Beach and Naples-area business groups have shared their plans for the new year as well.

“At the Downtown Long Beach Alliance,”  Austin Metoyer, DTLB Alliance president & CEO wrote in an email, “our mission is to cultivate, preserve, and promote a vibrant, safe, and prosperous Downtown for everyone.”

This year’s plans for the DTLB Alliance, he said, include continuing its initiatives such as The Education Series, Link & Learn, Taste of Downtown, the Art & Design Walk, and much more.

“Our 2025 events and programs reflect that commitment by fostering community connections, celebrating local culture, and driving economic growth,” Metoyer said. “This year’s lineup is designed to showcase how Downtown Long Beach is an exceptional place to live, work, and play”

Just east of Belmont Shore’s Second Street business district is the Naples Island business corridor, which is home to a diverse group of businesses.

“For 2025, our business community will continue to work to differentiate ourselves as the place to go for services,” Naples Island Business Association president Bob Lane said. “We are well known for our outstanding collection of restaurants, but we are a major healthcare hub with many doctors, dentists, and therapists.”

This year, the Business Association is planning to double down on its efforts to bolster local healthcare providers by encouraging residents to seek their services locally.

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