BUSINESS

Buchanan refines rules for recreational marijuana businesses

Mary Beth Spalding
South Bend Tribune

BUCHANAN — As the state edges closer to accepting the first applications Nov. 1 for recreational marijuana business licenses, the city is still refining rules for the establishments.

What’s emerging is a plan for up to six locations in the southern Berrien County community where any adult could purchase marijuana, and up to two sites where they could consume it.

Those numbers would add to what the city of Niles is planning for adult-use marijuana businesses, including up to eight retail locations and up to three consumption establishments.

Niles council OK’d ordinances for adult-use marijuana businesses just earlier this month, after initially opting out of allowing the businesses after Michigan voters legalized marijuana late last year.

Since legalization, Buchanan officials have said the city will allow adult-use establishments, and now they’re hoping to get local rules adopted yet this month.

Draft 9 of a proposed ordinance brought criticism earlier this week from some medical marijuana and other business owners who fear the city wants to issue too many licenses, possibly in unforeseen spots, and isn’t being transparent enough in the rule-writing.

City Commission members disputed that, referring to meetings of city boards and the collection of public input.

“This is not Draft 9 because we just started talking about this,” commission member Mark Weedon said.

Officials tried to clear up confusion over the number of proposed retail sites and planned to tweak the draft ordinance again for clarity.

The city is proposing not more than five retailers in existing locations already permitted for medical marijuana, including a grower/processor in the industrial park who might like to sell products after cannabis tours, officials said.

The city also would allow not more than two designated consumption establishments, also at those existing locations.

Officials stressed only existing medical marijuana businesses would have a shot at the licenses for the first two years, per state rules.

Two adult-use marijuana licenses that could result in new marijuana locations would allow for one microbusiness and one temporary event.

A microbusiness can grow, process and sell a limited amount of cannabis, all in one spot, and so possibly create a sixth retail site. The temporary event license will permit one special cannabis event each year at a site the city would approve at which pot could be sold and consumed.

Market demand will help to determine what combination of businesses succeeds and if the city needs to revise license numbers, Weedon said.

“We’re willing to change as we go,” commission member Sean Denison said. “This whole thing is kind of fluid.”

Consumption sites would need to be located with but structurally separated from an existing marijuana business, noted city planner Debra Patzer.

No smoking or vaping would be allowed at the consumption sites, but customers could purchase and use other types of marijuana products such as cannabis cookies or candy, or other marijuana-infused food and beverages, Patzer said.

Rules for consumption sites in Niles appear to allow smoking and vaping.

At least two medical marijuana business owners in Buchanan indicated they feared too many retail licenses in the city could undercut their enterprises.

And downtown Buchanan antiques store owner Alan Robandt criticized the idea of allowing retail licenses outside of the downtown district, which he said needs the business boost.

A couple of medical marijuana businesses have been up and running for several months in Buchanan, including grower/processor Redbud Roots in the industrial park and Zen Leaf provisioning center downtown. A few other medical marijuana businesses are near to opening or in active development.

The state will begin to accept applications for recreational, or adult-use, marijuana business licenses on Nov. 1. Depending on a medical marijuana business’ readiness to apply, an adult-use license could be granted before the end of the year, state officials have indicated.

The commission set its next public hearing and possible adoption of an adult-use marijuana business ordinance for 7 p.m. Oct. 28. A draft can be viewed on the city’s website at cityofbuchanan.com.

A jar of Stuffed French Toast marijuana is shown during the opening day of Zen Leaf medical marijuana dispensary in Buchanan last May. A U.S. House committee has advanced a bill to remove marijuana from the Controlled Substances Act and impose other conditions.