Mule Extracts, a family-owned cannabis processor based in Estacada, Oregon, is asking voters to carefully examine Measure 3-638, a city ballot measure that would prohibit new marijuana production, processing, and wholesaling businesses from being established within the city. The measure will appear before voters in the November 3, 2026, general election. While the measure targets new entrants, Mule Extracts and its supporters argue that its broader regulatory implications could harm existing businesses that have invested heavily in the community.
The company, founded in 2016, employs approximately 70 people at its Estacada operations and pays about $3.5 million annually in wages to its local workforce. It also works with 30 vendors and contractors throughout the area. CEO John Sampson emphasized the company's deep commitment to Estacada. "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. We believe local economic policy should carefully consider the effects restrictions can have on established employers and their ability to plan for the future," Sampson said.
The proposed measure focuses on new marijuana production, processing, and wholesaling businesses. The city has stated that existing businesses would be allowed to continue operating, but separate provisions raise questions about how future changes to existing businesses could be handled. Attorney Amy Margolis warned that the measure's impact could be far-reaching. "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," Margolis said.
Mule Extracts acknowledges that residents have legitimate concerns about odor, industrial growth, and the character of the town. In response, the company has made significant upgrades to its odor-control systems to comply with city requirements. Sampson stressed that the economic consequences of restrictions on business development deserve careful consideration, particularly for employers that have already contributed to the local economy. "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 outcome of Measure 3-638 could have broader implications for how cities balance local control with economic development. If passed, it might discourage business investment and jeopardize jobs in Estacada, a small city that relies on employers like Mule Extracts. The measure also raises questions about the stability of existing businesses under changing regulations, which could affect other industries beyond cannabis.
Mule Extracts encourages Estacada residents to review the City of Estacada's Cannabis Moratorium FAQ, including the companion ordinance on pre-existing businesses, before casting their ballots. The company's products—small-batch vapes, concentrates, and edibles made from locally sourced cannabis—are sold wholesale to licensed dispensaries in Oregon and New Jersey. More information is available at www.mulethc.com.
