Katelyn Baker
Well-Known Member
When DJ Risk approached his grandparents about creating a new division within Paul Risk Construction, he wrestled with how to share his vision.
Paul Risk had grown a fledgling family business from three to 70 employees and carefully cultivated a reputation as a full-service design-and-build firm before retiring.
Now his grandson, promoted to president in February, wanted to help clients grow medical marijuana.
But once DJ Risk explained the benefits of the venture, from both business and medical perspectives, his grandparents gave their support.
Cannabis Design Build was launched in mid-November, becoming the first such business in the county and perhaps the first in the state. Its headquarters is at Paul Risk Construction's Quarryville offices.
"There's an opportunity here for a niche business," said DJ Risk, noting a void of pot-knowledgeable general contractors east of Colorado. "We've kind of married the growing and the construction sides."
That marriage, says DJ Risk, was blessed by Paul Risk and his wife, Shirley. Though he describes them as conservative, DJ Risk said his grandparents came around to his plans once he explained how cannabis can be used to treat conditions from cancer to Parkinson's disease.
Its potential as a boon to ancillary trades from construction to security and software development didn't hurt either.
Forbes magazine called legal cannabis last year's best start-up opportunity.
Legal U.S. pot sales hit $5.4 billion then, up 17.4 percent from $4.6 billion in 2014, according to ArcView Group, an investor organization that tracks the cannabis market. Some estimate 2018 sales will climb to $8 billion.
"To grow marijuana, you need a lot of other stuff," said Patrick Nightingale, executive director of the Pennsylvania Medical Cannabis Society.
"People are going to be getting jobs and making money. It starts with people in either the grower-processors or the dispensaries, and from there, there's a wide variety of collateral impacts."
Gov. Tom Wolf signed legislation allowing medical marijuana use in April, and the state eventually will grant 25 grower-processor licenses. An application process is expected to begin in January.
Nightingale says Pennsylvania's temporary regulations make it hard to estimate state or local revenues. But to those who want to capitalize on the increasing acceptance and use of marijuana, he says, "You've got to do it right now."
Cannabis Design Build's four employees - Justin Wisniewski, president; Patrick Clark, vice president of construction; Byron Garman, vice president of development; and Trey Pyfer, vice president of horticulture - aren't waiting for business to take root in Pennsylvania.
First project
Risk said last week that the company is pricing designs for a Maryland grow-process license applicant. If that license is awarded, Cannabis Design Build could break ground on its first project in January.
The inspiration for the spin-off came from an existing Paul Risk client interested in entering the commercial cannabis industry in eastern Pennsylvania.
Though Risk wouldn't disclose the potential investor, he said they're ready to work together once Pennsylvania awards licenses.
In the meantime, Garman said the company has been building name recognition.
Besides attending conventions and buying ads, they're focusing on states that have already awarded licenses and companies doing business out west.
"What we're seeing is that once you get one (license), you keep going," Risk said.
Applying to become a medical marijuana grower and/or processor is an expensive venture. Wisniewski estimates Pennsylvania growers could need $6 million to $10 million to get off the ground.
Part of that pricetag stems from state regulations, which require $2 million in capital and $500,000 in liquid assets.
Finding that much funding could be a challenge. Growers typically struggle to get traditional bank financing because federal laws still prohibit all marijuana use.
But securing funding was not an issue for Cannabis Design Build, as its start-up costs were covered by Paul Risk Construction.
National trend
Cannabis Design Build's launch comes as medical marijuana gains widespread acceptance across the country.
In 2016, Florida, North Dakota and Arkansas joined Pennsylvania in legalizing medical cannabis. And Illinois, California, Nevada, Maine and Massachusetts decriminalized recreational use.
"Over half the country has already passed medical marijuana," Risk said. "We're just following a natural progression."
To lead the new division, Paul Risk Construction selected an experienced grower and manager. Wisniewski managed a medical collective and learned about organic cannabis production in California. Most recently, he worked in new product development at GreenLeaf Plants, one of this area's largest indoor perennial growers.
He says growers have to be responsive to state laws and community norms when developing facilities; in Pennsylvania, they'll be all indoors versus greenhouse or outdoor operations allowed in other states.
"They're not necessarily creating McDonald's that can go from one state to another," Wisniewski said.
Grow operations start around 6,000 square feet, but average closer to 15,000 square feet, according to Risk.
Because of the relatively small number of licenses being awarded in Pennsylvania, Wisniewski expects he'll be designing or renovating warehouses of up to 50,000 square feet.
Each will have energy and security needs far different from the retirement communities and restaurants in Paul Risk's wheelhouse.
The company will advise on everything from design to permitting and grow configurations, while providing staff to build out approved projects.
Indoor structures are more expensive than greenhouses allowed in Maryland, which typically run $300,000 to $700,000.
But indoor growers are performing better nationally, according to Marijuana Business Daily. Only 57 percent of outdoor businesses reported breaking even or better, compared to over 80 percent who cultivate indoors, in greenhouses or a combination.
Pyfer, manager at Little Brook Orchids in Lancaster, brings expertise in indoor growing. Temperamental orchids have taught him the importance of temperature controls, lighting options such as LED replacements for high-pressure sodium lamps and timing that optimizes blooms. The trichomes that cover marijuana flowers are used to produce cannabis oil.
Finding energy savings and incorporating renewable sources and water-reclamation systems could be critical for companies with slim profit margins.
As Nightingale points out, a final product that's too expensive will be a buzzkill for any local market.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Quarryville-Based Contractor Starts Division To Design And Build Medical Marijuana Growhouses
Author: Kimberly Marselas
Contact: (717) 291-8622
Photo Credit: Dan Marschka
Website: Lancaster Online
Paul Risk had grown a fledgling family business from three to 70 employees and carefully cultivated a reputation as a full-service design-and-build firm before retiring.
Now his grandson, promoted to president in February, wanted to help clients grow medical marijuana.
But once DJ Risk explained the benefits of the venture, from both business and medical perspectives, his grandparents gave their support.
Cannabis Design Build was launched in mid-November, becoming the first such business in the county and perhaps the first in the state. Its headquarters is at Paul Risk Construction's Quarryville offices.
"There's an opportunity here for a niche business," said DJ Risk, noting a void of pot-knowledgeable general contractors east of Colorado. "We've kind of married the growing and the construction sides."
That marriage, says DJ Risk, was blessed by Paul Risk and his wife, Shirley. Though he describes them as conservative, DJ Risk said his grandparents came around to his plans once he explained how cannabis can be used to treat conditions from cancer to Parkinson's disease.
Its potential as a boon to ancillary trades from construction to security and software development didn't hurt either.
Forbes magazine called legal cannabis last year's best start-up opportunity.
Legal U.S. pot sales hit $5.4 billion then, up 17.4 percent from $4.6 billion in 2014, according to ArcView Group, an investor organization that tracks the cannabis market. Some estimate 2018 sales will climb to $8 billion.
"To grow marijuana, you need a lot of other stuff," said Patrick Nightingale, executive director of the Pennsylvania Medical Cannabis Society.
"People are going to be getting jobs and making money. It starts with people in either the grower-processors or the dispensaries, and from there, there's a wide variety of collateral impacts."
Gov. Tom Wolf signed legislation allowing medical marijuana use in April, and the state eventually will grant 25 grower-processor licenses. An application process is expected to begin in January.
Nightingale says Pennsylvania's temporary regulations make it hard to estimate state or local revenues. But to those who want to capitalize on the increasing acceptance and use of marijuana, he says, "You've got to do it right now."
Cannabis Design Build's four employees - Justin Wisniewski, president; Patrick Clark, vice president of construction; Byron Garman, vice president of development; and Trey Pyfer, vice president of horticulture - aren't waiting for business to take root in Pennsylvania.
First project
Risk said last week that the company is pricing designs for a Maryland grow-process license applicant. If that license is awarded, Cannabis Design Build could break ground on its first project in January.
The inspiration for the spin-off came from an existing Paul Risk client interested in entering the commercial cannabis industry in eastern Pennsylvania.
Though Risk wouldn't disclose the potential investor, he said they're ready to work together once Pennsylvania awards licenses.
In the meantime, Garman said the company has been building name recognition.
Besides attending conventions and buying ads, they're focusing on states that have already awarded licenses and companies doing business out west.
"What we're seeing is that once you get one (license), you keep going," Risk said.
Applying to become a medical marijuana grower and/or processor is an expensive venture. Wisniewski estimates Pennsylvania growers could need $6 million to $10 million to get off the ground.
Part of that pricetag stems from state regulations, which require $2 million in capital and $500,000 in liquid assets.
Finding that much funding could be a challenge. Growers typically struggle to get traditional bank financing because federal laws still prohibit all marijuana use.
But securing funding was not an issue for Cannabis Design Build, as its start-up costs were covered by Paul Risk Construction.
National trend
Cannabis Design Build's launch comes as medical marijuana gains widespread acceptance across the country.
In 2016, Florida, North Dakota and Arkansas joined Pennsylvania in legalizing medical cannabis. And Illinois, California, Nevada, Maine and Massachusetts decriminalized recreational use.
"Over half the country has already passed medical marijuana," Risk said. "We're just following a natural progression."
To lead the new division, Paul Risk Construction selected an experienced grower and manager. Wisniewski managed a medical collective and learned about organic cannabis production in California. Most recently, he worked in new product development at GreenLeaf Plants, one of this area's largest indoor perennial growers.
He says growers have to be responsive to state laws and community norms when developing facilities; in Pennsylvania, they'll be all indoors versus greenhouse or outdoor operations allowed in other states.
"They're not necessarily creating McDonald's that can go from one state to another," Wisniewski said.
Grow operations start around 6,000 square feet, but average closer to 15,000 square feet, according to Risk.
Because of the relatively small number of licenses being awarded in Pennsylvania, Wisniewski expects he'll be designing or renovating warehouses of up to 50,000 square feet.
Each will have energy and security needs far different from the retirement communities and restaurants in Paul Risk's wheelhouse.
The company will advise on everything from design to permitting and grow configurations, while providing staff to build out approved projects.
Indoor structures are more expensive than greenhouses allowed in Maryland, which typically run $300,000 to $700,000.
But indoor growers are performing better nationally, according to Marijuana Business Daily. Only 57 percent of outdoor businesses reported breaking even or better, compared to over 80 percent who cultivate indoors, in greenhouses or a combination.
Pyfer, manager at Little Brook Orchids in Lancaster, brings expertise in indoor growing. Temperamental orchids have taught him the importance of temperature controls, lighting options such as LED replacements for high-pressure sodium lamps and timing that optimizes blooms. The trichomes that cover marijuana flowers are used to produce cannabis oil.
Finding energy savings and incorporating renewable sources and water-reclamation systems could be critical for companies with slim profit margins.
As Nightingale points out, a final product that's too expensive will be a buzzkill for any local market.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Quarryville-Based Contractor Starts Division To Design And Build Medical Marijuana Growhouses
Author: Kimberly Marselas
Contact: (717) 291-8622
Photo Credit: Dan Marschka
Website: Lancaster Online
