Residents of Lima Township, Michigan, are currently embroiled in a legal battle against the township's trustees, alleging that the trustees actively obstructed the opening of a cannabis dispensary, thereby infringing on their constitutional rights. The group, Citizens of Lima for Cannabis, argues in their lawsuit that their 14th Amendment rights were violated by the trustees' refusal to engage with their proposals and initiatives over a period of three years.
According to a memorandum filed in federal court, the township's motion to dismiss the lawsuit overlooks the valid 14th Amendment claims raised by the residents. The plaintiffs contend that despite their efforts and compliance with Michigan's legal requirements for opening a dispensary, the trustees never formally addressed their initiative. The situation escalated when the group successfully gathered sufficient signatures to place their initiative on the May 2024 ballot, only to face further opposition as the trustees allegedly instructed their attorney to prevent the initiative's inclusion on the ballot.
The lawsuit, initiated in March by Citizens of Lima for Cannabis, points to a pattern of behavior by the trustees aimed at hindering the establishment of any cannabis dispensary in the area. The complaint highlights the support from the community and several local entrepreneurs and developers, including Andrew Sereno, CEO of Michigan-based Glacier Cannabis. Despite this backing, the trustees have reportedly thwarted the initiative, causing the community to miss out on estimated tax revenues of $28,000 to $59,000, based on financial data from other Michigan municipalities since 2021.
The township defended its actions in early April, seeking to have the lawsuit dismissed by arguing the claims were rooted in state law and only insinuated federal constitutional violations, thus questioning the federal court's jurisdiction over the matter. In response, the Citizens of Lima for Cannabis detailed in their brief a clear violation of Section 1983 of the U.S. Code, which pertains to civil rights infringements, by alleging that the trustees deliberately denied them the opportunity to discuss their proposal at public meetings.
Moreover, the residents' group suggests that if the federal court rules in favor of the township, they should be permitted to amend their complaint to include an additional Section 1983 claim. This would assert that the trustees not only failed to vote on the proposed ordinance but also actively blocked the initiative from the ballot, further violating the residents' rights.
As the case progresses, a spokesperson for the residents has confirmed they are awaiting a decision from the court on this pressing issue.
Detroit is gearing up to host its first NFL Draft, attracting an estimated 400,000 sports enthusiasts to the city. In conjunction with this major sports event, the 313 Draft Party is set to take place on April 25-26th in downtown Detroit. Although it is not officially part of the NFL Draft festivities, the party highlights the growing acceptance and incorporation of cannabis into mainstream events.
The event, open to adults 21 and over with valid ID, is a celebration of both sports and cannabis culture, situated conveniently across from Comerica Park at 70 E. Elizabeth St. Over two days, attendees will experience a blend of local food, live music, and promotional giveaways, all within the vibrant atmosphere of this significant sports milestone.
The 313 Draft Party features several attractions:
The event will also include a diverse selection of local food trucks and a DJ to keep the energy high throughout the day. Promotional giveaways and special offers from cannabis brands such as Chill Medicated, Kiva's Lost Farm, Gold Crown, and Breeze Canna will add to the festive atmosphere.
JARS Cannabis emphasizes the event's commitment to safety, adhering to local regulations that prohibit the sale of alcohol and the consumption of cannabis on site. This ensures a secure environment for all participants, reinforcing the event's role in showcasing the progressive integration of cannabis into cultural and public events.
The Bad Axe Planning Commission recently held a public hearing on April 24th to discuss zoning related to a proposed cannabis ordinance, generating a mixture of support and opposition among residents. The meeting took place at Bad Axe City Hall, following an earlier session held by the Bad Axe City Council where the community first voiced their concerns.
At the latest hearing, residents expressed varied opinions on whether cannabis establishments should be allowed within the city. Proponents like Megan Mellas emphasized the potential benefits, arguing that approved establishments would provide safe, regulated access to cannabis both for recreational and medicinal purposes. Mellas highlighted the educational opportunities such facilities could offer on responsible usage and noted the economic growth, education enhancements, and cultural impacts they could bring. Additionally, she pointed out that legal sales locations would help undercut the illegal market.
Brock McCellan also supported the ordinance, reminding attendees that cannabis is already legal statewide. He argued that the community would benefit from regulated access points within the city rather than forcing residents to seek alternatives elsewhere.
In contrast, opposition came from residents like Luke Deming, who expressed concerns over increased access to cannabis and the potential for abuse. Deming criticized the notion of promoting such businesses in a community already tackling drug issues.
During the meeting, Bad Axe City Manager Rebecca Bachman clarified that the commission was not voting but rather discussing potential zoning implications and preparing recommendations for the Bad Axe City Council. Planning Commission member Jesse Klaska raised concerns about the proximity of proposed retail locations to residential areas, particularly apartments in the downtown area.
The discussion also covered operational concerns. Police Chief Shawn Webber was present to address regulatory questions, emphasizing that consumption of recreational cannabis would be restricted to private residences and explaining that any public complaints would be handled by the state's Cannabis Regulatory Agency.
The session concluded with an acknowledgment that the proposal would undergo further review by the city attorney before potentially being included on the agenda for a final vote by the city council in May.
Grown Rogue International Inc. has recently enhanced its stake in its Michigan operations by increasing its ownership from 52.2% to 80%. The company executed this expansion through two key transactions, totaling a value of $2.8 million.
The financial structure of the deal included an upfront cash payment of $200,000, with the remaining $2.6 million covered through sellers' notes, repayable over four years. This acquisition targets the company's subsidiary, Golden Harvests, LLC, which oversees its Michigan facilities. These facilities boast an 80,000 square foot space, of which approximately 15,000 square feet is dedicated to the flowering of cannabis.
Further details of the transaction reveal a complex structure of ownership and investment. Grown Rogue's related entity, Canopy Management, LLC, currently holds a 60% interest in Golden Harvests. Notably, Canopy itself is 87% owned by Grown Rogue indirectly. As part of the agreement, Grown Rogue acquired the remaining minority interest in Canopy for $800,000. This payment plan includes a 20% down payment in cash and subsequent monthly payments over a four-year period at an interest rate of 5.2% per annum.
Additionally, Grown Rogue purchased a 20% minority stake in Golden Harvests directly for $2 million, agreeing to minimum quarterly cash payments across four years. This strategic move places Golden Harvests at a valuation of $10 million, reflecting its significant market potential. The company plans to fund these payments using its existing cash reserves and through cash generated from ongoing operations.
Moreover, Grown Rogue retains the option to acquire the final 20% of Golden Harvests, ensuring future control is based on fair market evaluations. It's noteworthy that Dave Pleitner, an insider at Grown Rogue, holds the minority interest in Golden Harvests, and certain directors of the company possess 8% interest in Canopy.
CEO Obie Strickler emphasized the strategic importance of Michigan to Grown Rogue, noting the state as a pivotal market where the company first demonstrated its operational capabilities beyond its original base in Oregon. He expressed enthusiasm about the increased ownership and discussed potential plans to further develop and maximize the facility's additional 25,000 square feet of space.
In response to these developments, Grown Rogue's shares saw an 8.9% increase so far today, trading at $0.71 per share, illustrating positive investor sentiment following the announcement of the expansion.
In recent findings by a Michigan-based cannabis testing laboratory, alarming concerns have been raised about the safety and transparency of cannabis oil used in vape pens and edibles. Josh Swider, CEO and co-founder of Infinite Chemical Analysis Lab, reported that more than a third of the tested products contained harmful substances not disclosed by the manufacturers. These include diluting agents like MCT oil, synthetically altered cannabis oils, and prohibited pesticides.
Swider, whose company operates labs in both Jackson, Michigan, and San Diego, California, emphasized the severity of these findings. He highlighted that unsuspecting consumers are likely unaware they are inhaling or ingesting products that may not be as pure or safe as claimed. Such transparency issues are concerning, particularly when the substances involved include synthetically converted THC oil, which is the psychoactive component in cannabis responsible for its high effects.
The impetus for these tests originated from a Michigan group dedicated to cannabis safety, which remains unnamed. They commissioned Swider's lab to develop specific tests to detect these substances, revealing significant issues with product purity and labeling in the industry. The presence of MCT oil, a common carrier oil derived from coconut oil, was notably contentious. While generally recognized as safe for food, its inhalation poses potential health risks. This has led to its ban in inhalable cannabis products in several states, including Colorado, especially following the outbreak of vaping-related lung diseases in 2019.
The synthetic conversion of CBD to THC, another process detected in the tests, is akin to pharmaceutical manufacturing and remains controversial. While not explicitly labeled as unsafe, the lack of definitive safety data makes it a risky inclusion in consumer products, according to Swider.
Leoni Township in Jackson County, Michigan, is set to enhance its fire safety capabilities with a new firetruck funded by cannabis tax revenue. The township's Board of Trustees has approved the purchase of a 2000-gallon tanker truck from Rosenbauer Fire Apparatus, utilizing $842,000 from the Marijuana Excise Tax funds. This decision aligns with the Board's intent to use the tax funds for the benefit of the entire community, as emphasized in the township's recent spring newsletter.
Leoni Township, which hosts the highest number of marijuana dispensaries in Jackson County with ten licensed facilities, collected over $590,000 in cannabis tax revenue in 2023 alone. This substantial sum, derived from state treasury records, marks a significant contribution to local public funding.
The township's ability to fund the firetruck purchase without a public millage represents a notable shift in local financial strategy, offering a cost-effective solution by avoiding additional fees and interest. Mike Jester, the Leoni Township Administrator, highlighted the benefits of this approach, noting the long-term savings and the avoidance of direct financial requests to the public.
The new truck, expected to be delivered in May 2025, is slightly smaller than the units acquired in 2017 but represents a substantial upgrade over the existing 65-foot ladder truck, which is nearing the end of its operational life. According to Scott Grajewski, Public Safety Director for Blackman-Leoni Township, while the current ladder truck remains functional, its future reliability is uncertain. The addition of the new truck is anticipated to significantly boost the township's and the broader county's fire response capabilities, particularly given the frequency with which Leoni Township assists neighboring areas with large fires.
This investment not only underscores the township's commitment to enhancing public safety infrastructure but also demonstrates the tangible benefits of cannabis tax revenues in supporting critical local services.
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