Mule Extracts, a family-owned cannabis processor based in Estacada, Oregon, is calling on voters to scrutinize Measure 3-638, a proposed city measure that would prohibit new marijuana production, processing and wholesaling businesses from being established within the city. The measure will appear on the November 3, 2026, general election ballot. While the measure targets only new entrants, Mule Extracts argues that its implications reach far beyond the cannabis industry, affecting the broader environment for local employers and the value of long-term business investment.
For CEO John Sampson, the stakes are clear. "Mule Extracts has made a significant commitment to Estacada. We employ approximately 70 people, and our business represents years of work and investment in this community," he said. "We believe local economic policy should carefully consider the effects restrictions can have on established employers and their ability to plan for the future." The company pays roughly $3.5 million annually in wages to its Estacada workforce and collaborates with 30 vendors and contractors throughout the local area, underscoring its role as an economic anchor in the community.
The measure comes as Mule Extracts continues to operate and invest in its facilities and workforce. The company acknowledges that residents have legitimate concerns about odor, industrial growth and the character of the town, and it has made significant upgrades to its odor-control systems to comply with city requirements. However, it believes the economic consequences of restricting business development deserve careful consideration, particularly for employers that have already established operations and contributed to the local economy.
While the city has stated that existing businesses would be allowed to continue operating, separate provisions associated with the proposal raise questions about how certain future changes to existing businesses could be handled. Attorney Amy Margolis explained: "The ballot measure, on its face, appears to simply ban new businesses from coming in. But because of the regulatory structure of cannabis businesses, it actually prohibits the growth and sale of existing businesses, destroying all of the value that these families and entrepreneurs have built." This nuance is central to Mule Extracts' concern: a measure that seems limited in scope could effectively freeze existing operators, preventing them from adapting, expanding or eventually selling their businesses.
Sampson emphasized the need for an informed public discussion. "We want to continue being a local employer and contributing to Estacada's economy. We believe the potential effects on existing businesses, local jobs and future investment should be part of an informed public discussion about this measure," he said. The company is encouraging residents to review the City of Estacada's Cannabis Moratorium FAQ, including the companion ordinance on pre-existing businesses, and to bring questions to the company's community contact before voting. For more information about Mule Extracts and its operations, visit www.mulethc.com.
The outcome of Measure 3-638 could set a precedent for how other communities balance local control with the economic rights of established businesses. As voters head to the polls, the decision will not only shape Estacada's cannabis landscape but also signal whether long-term investment and job creation are valued in the city's regulatory approach.
