Leoni Township is poised to enhance recreational amenities through the strategic use of cannabis tax revenues, following the acquisition of over 50 acres on Round Lake. The land, previously owned by Polish Falcons Nest 336, was purchased with a vision of preserving its public utility, according to Leoni Township Manager Mike Jester. The township plans to introduce a variety of facilities including a swimming area, playground equipment, and sports fields, aimed at serving as a community hub for various activities like family gatherings and sports events.
This initiative is funded by the Marijuana Excise Tax, with Leoni Township allocating the proceeds towards public welfare projects. The township, which hosts the highest number of marijuana dispensaries in Jackson County, garnered more than $590,000 in cannabis tax revenue in 2023 alone. This financial strategy not only reflects a responsible fiscal approach but also a commitment to enhancing community life.
The proposed plans for the park are still in the formative stages, with potential additions like restrooms, baseball fields, and kayak rental services. Notably, the project also intends to introduce a swimming area in the township, addressing a recreational gap in the existing facilities at Michigan Center Lake.
However, the project has met with mixed reactions from the local community. Diane Miller, a long-time member of the Polish Falcons and a local resident, expressed concerns about restricted access to the land that once offered open entry for various nocturnal recreational activities. Additionally, some residents are apprehensive about the potential increase in traffic that the new amenities might attract.
Further details and updates on the park's development are expected to be discussed in upcoming township board meetings. Residents seeking more information are encouraged to visit the township's official website.
Iced Out Genetics, a Michigan-based virtual dispensary, has expanded its operations to provide mail order cannabis services across all 50 states. This development follows a pivotal decision recognizing the medical benefits of cannabis, marking a considerable progression in the industry. The company boasts an expansive catalog of over 900 premium cannabis strains, catering to a broad audience.
The expansion into nationwide shipping is a direct response to the increasing trend of cannabis legalization in various states. A spokesperson from Iced Out Genetics shared their perspective on the change, stating, "Previously, our products were limited to states where cannabis was legally available. However, with the evolving legal landscape, there is now a significant opportunity for growth in the mail order sector of our industry. As we approach potential federal legalization, we are ready to serve the expanding market, which is projected to reach substantial financial milestones annually."
Iced Out Genetics distinguishes itself as the sole mail order cannabis provider that offers same-day shipping throughout the country. Their service is particularly vital for residents in rural areas, where access to cannabis can be limited. The company's online platform, icedoutgenetics.com, provides a convenient solution for customers to purchase cannabis, including seeds and flowers.
In an effort to simplify the purchase process and enhance accessibility, Iced Out Genetics has removed the requirement for medical identification for its customers. This move is part of the company's commitment to ensuring that high-quality cannabis products are accessible to a wider customer base.
Westland, Michigan anticipates a significant boost in revenue from its retail recreational cannabis businesses, estimating an income of roughly $4 million over the next six years if all five retail licenses are issued. This projection was highlighted in Mayor Kevin Coleman's recent budget proposal and forecast.
The city is set to receive an estimated $665,000 in tax revenues from local cannabis establishments for the upcoming fiscal year, beginning in July, which will contribute to the city's $82.5 million budget. This revenue accounts for about 1% of the annual budget, and according to city officials, it is poised to have a substantial impact on various municipal needs, including staffing, public facilities, and the public safety vehicle fleet.
Finance Director Steve Smith commented on the importance of this revenue stream: "That might not seem like a lot, but on a per-year basis – next year we're looking at $665,000. That's a lot of money. If we don't have that, we'd notice. It adds up."
Currently, Westland has utilized one of its five retail cannabis licenses, with LIV Cannabis at 37655 Ford Road being the inaugural establishment. Last fiscal year, LIV Cannabis contributed $58,000 in revenue through excise tax. The city, which approved recreational cannabis businesses in 2019, is reviewing three additional proposals for retail licenses.
In Michigan, cannabis is subject to a 10% excise tax. Localities also benefit from increased property taxes on buildings that have been renovated to accommodate these businesses. Smith noted that while the additional revenue is not earmarked for specific uses, it could potentially fund significant municipal projects, such as new public safety equipment or infrastructure improvements.
Mike Elias, CEO of LIV Cannabis, emphasized the unique financial contributions of the cannabis industry, stating, "You're seeing tax revenue coming out of cannabis that no other industry has been able to provide at the speed we have. When you think about the tax potential, it's exponential."
The decision to allow recreational cannabis businesses was also driven by potential economic benefits, such as the redevelopment of underutilized properties, according to Westland Planning Director Mo Ayoub. He observed that these establishments have spurred economic development and renovations in previously blighted areas.
LIV Cannabis aims to integrate into the community by engaging in charity work and collaborating with local organizations like the Rotary Club. Jordan Felix, General Manager of LIV Cannabis, described the diverse clientele they serve: "It can be the 21-year-old who just had a birthday or the 70-year-old who's never been in a dispensary. It's a wide demographic and we're trying to be inclusive. I think the reception has been great."
As Michigan's cannabis industry flourishes, it continues to provoke mixed reactions within communities, reflecting a complex landscape of economic benefits and societal concerns.
In Metro Detroit, from densely populated areas like Detroit to smaller communities such as Utica and Mount Clemens, the proliferation of cannabis dispensaries has sparked diverse opinions. In Macomb County, the growing number of dispensaries is advertised on numerous billboards, a sight that has not gone unnoticed by residents.
Jackie Rottmann, a local resident, expressed her dissatisfaction, noting, "I think it's really a bad thing. I don't think it's really something we need on every corner." This sentiment contrasts sharply with the views of others like Joyce Dixon from Mount Clemens, who sees the dispensaries as beneficial. "It feels like more business helps the community," Dixon stated.
Neighborhood responses vary significantly. In Clinton Township, community leaders have responded to public opinion by prohibiting dispensaries. "Residents of this community did not want and voted not to have any marijuana facility in the township so they can't buy it here," explained Bob Cannon, the township supervisor. This decision also extended to limiting billboard advertisements within the community.
In contrast, Detroit seems to embrace the economic opportunities presented by the cannabis industry. Councilwoman Mary Waters highlighted the positive impact of cannabis businesses in revitalizing buildings, creating jobs, and enhancing the local tax revenue. Waters emphasized the importance of strategic location planning for dispensaries to align with community values, particularly concerning proximity to schools and churches.
Noise and traffic issues are also part of the community feedback. Paul Gutleber, who lives adjacent to a dispensary, likened the situation to "a drag strip every day," pointing out the less desirable effects of having a dispensary nearby.
The state of Michigan now boasts over 700 retail cannabis stores, a number supported by industry advocates like Matthew Abel, who argues that the market should dictate the number of operational dispensaries. Abel cited significant financial contributions to local government coffers from licensing fees, with Detroit and Wayne County receiving substantial sums.
Despite the economic advantages, the sentiment is not universally positive. Rottmann acknowledges the job creation from the cannabis industry, which totals approximately 46,000 full-time positions in Michigan, but remains skeptical about the overall benefit to society, remarking on the omnipresence of cannabis advertising.
The dialogue around cannabis in Michigan showcases a balance between economic incentives and community values, underscoring the need for careful regulation and thoughtful integration of cannabis businesses into the fabric of local communities.
In an era where environmental sustainability is not just desired but demanded, the cannabis industry stands at a crossroads. Known for its therapeutic benefits and increasingly liberalized around the world, the cannabis sector also faces significant scrutiny over its environmental footprint. One major area where this industry can take a transformative step forward is in its packaging practices.
The cannabis industry, while innovative in its products and applications, often relies on conventional packaging materials that are far from eco-friendly. Plastics, which are commonly used, are not only non-biodegradable but also contribute significantly to global pollution. The pressing need to reduce this environmental burden has led to a call for more sustainable practices within the industry.
Hemp offers a compelling solution to these environmental challenges. As a cousin of the cannabis plant, hemp is biodegradable and can be engineered to be as durable and childproof as traditional plastics. This makes it an ideal candidate for developing sustainable packaging solutions. Furthermore, hemp-based packaging aligns with the ethos of the cannabis industry, which is rooted in health and wellness.
Despite the clear environmental benefits, the adoption of hemp packaging in the cannabis industry faces economic hurdles. Currently, sustainable packaging options, including those made from hemp, tend to be more expensive than traditional materials. This cost differential can deter cannabis companies, especially in a competitive market where price sensitivity among consumers remains high.
For instance, if a cannabis product with hemp-based packaging costs more, consumers may opt for a cheaper alternative, despite their professed preferences for sustainability. Brands like Dutch Touch Genetics and Wyld have started integrating sustainable practices, using reusable glass jars and fully compostable paper-based packaging, but these are exceptions rather than the norm.
For the cannabis industry to lead in sustainability, particularly in packaging, a multifaceted approach is needed:
Consumer Education: Informing consumers about the benefits of sustainable packaging and how it contributes to a healthier planet may encourage more individuals to choose products that are slightly more expensive but environmentally friendly.
Regulatory Incentives: Governments could offer incentives to companies that switch to sustainable packaging, making it a more financially viable option.
Industry Collaboration: Companies within the cannabis industry could collaborate to share the costs and innovations associated with sustainable packaging.
Research and Development: Continued investment in improving the cost-effectiveness and performance of hemp packaging materials is essential.
The cannabis industry has the potential to be at the forefront of sustainable packaging innovations. By embracing hemp-based solutions, the industry can significantly reduce its environmental impact while setting a standard for others to follow. It's time for the sector to revisit its roots—not just as a business but as a sustainable practice that contributes positively to the planet.
The cannabis industry in Michigan could experience significant financial relief if the federal government proceeds with a proposed reclassification of cannabis as a less hazardous substance. Currently classified as a Schedule I drug, alongside substances like heroin and LSD, cannabis might soon be shifted to Schedule III, which is subject to less stringent regulations.
Raul Molina, the Chief Operations Officer at Mint Cannabis, highlighted that nearly 40% of industry profits are consumed by the so-called 280E tax, a burden that could be alleviated by the reclassification. The 280E tax, only applicable to Schedule I and II substances, severely limits the deductions businesses can claim, essentially taxing gross income rather than net.
"Rescheduling cannabis would be an incredible advancement, greatly benefiting the industry," Molina stated. He pointed out that the change would not only reduce taxes but also allow businesses to claim deductions common in other industries, such as rent and utilities, which are currently disallowed under the 280E tax provisions.
The economic impact in Michigan could be particularly notable. According to Molina, despite high demand for cannabis in Michigan, profit margins remain tight due to an oversupply. "The removal of the 280E tax wouldn't likely lead to higher prices for consumers but would enhance profit margins for producers," he explained.
The proposal for reclassification by the Drug Enforcement Administration (DEA) is currently under review by the White House Office of Management and Budget. It must also undergo a public comment period and a review by an administrative judge, indicating that any changes could still be some time away.
This potential shift could mean significant operational savings for cannabis businesses and, consequently, lower costs for consumers in Michigan, fostering a more robust and financially sustainable industry.
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