Cannabis operation holds groundbreaking in Mendota

MENDOTA, Calif. (KFSN) -- Inside an old packing shed on the outskirts of Mendota, a new cannabis operation is moving in, hoping to revitalize the space and the town's economy.

"While so many have doubted us, I knew we could pull this off," said Tim McGraw, the CEO of Canna-Hub.

Allowing this massive commercial marijuana business to move in wasn't easy. It took months of city council meetings and convincing skeptical families.

On Thursday, Canna-Hub finally broke ground on the 16-acre property.

"You got to take some chances in this world, and that's what the city of Mendota did," said Mendota city councilmember Robert Silva.

The company itself won't be growing marijuana. It's leasing out nine spaces for operators to manufacture or distribute. Tenants can do anything, except for selling marijuana and operating outdoor grows.

"We are about a third already committed, leased out. Pretty good pipeline of very good operators to take the rest of the space," said Jonathan Charak with Canna-Hub.

The company has promised to generate about 100 jobs. The operation will also bring in about $800,000 to Mendota per year.

"Our general fund is a little above $6 million right now, so $800,000 is a great 17 percent, 18 percent increase, which is a big deal. When it comes to public safety you can never have too much," said Matt Flood, the Economic Development manager of Mendota.

The money is expected to roll in right away. Canna-Hub expects operators to move into the facility in the next 90 days.