Four cannabis businesses have initiated legal action against the city of Detroit in federal court, seeking to halt any measures that could delay the launch of their $15 million marijuana processing facility. The companies argue that without the ability to operate as intended, they face imminent financial disaster.
The legal challenge stems from the city's retraction of previously granted approval for the facility, located close to a school, which the businesses contend violates their due process rights under the Fourteenth Amendment. This action followed substantial investments made by the companies, based on city assurances and the issuance of special land use permits for marijuana processing and transportation.
In their court filing, the companies—Cannabis Professional Design LLC, MB City Transportation LLC, HZ Detroit Holdings 1 LLC, and HZ Detroit Holdings 2—request a preliminary injunction to permit the opening and operation of their facility. They disclose investments nearing $1.89 million, part of the facility's estimated $15 million construction value, arguing this amount could lead to their financial collapse if the facility remains closed.
The motion emphasizes the critical nature of the injunction, suggesting even temporary operation could significantly improve their financial standing. The companies have yet to generate revenue from the facility, highlighting the potential for a single month's production to cover a substantial portion of their expenses.
In response, the city of Detroit has urged the court to reject the injunction, arguing the companies have not demonstrated a risk of "irreparable injury" and suggesting that the facility's proximity to a school could harm students.
However, the companies counter this by referencing approval letters from the city that confirmed the facility's operation would not negatively impact the community. They also noted investments in infrastructure improvements, including a second-floor construction and the installation of specialized machinery.
The legal battle began with a state court lawsuit in November, later escalated to federal court, over the city's revocation of permits granted over two years. These permits were essential for the facility's operation but were invalidated in October when the city reclassified the land as a "drug-free zone" due to its proximity to a nearby school.
The city's later filings revealed that the revocation occurred after it recognized the school's proximity to the proposed facility—a detail missed during initial reviews due to the school's industrial-looking appearance and location in a zone typically not permitting educational institutions.
This dispute highlights the complex interplay between cannabis business operations, municipal regulations, and community safety concerns, particularly regarding proximity to schools and the enforcement of "drug-free zones."
A court session for the ongoing case against four individuals from Battle Creek, accused of a robbery at a marijuana store in Camden on January 31st, has been postponed to February 28th.
The suspects, identified on February 2nd as 19-year-old Dontay Dequan Banks, 23-year-old Treshaun Omeirr Boykins, 18-year-old Milton Tyier Hudson, and 18-year-old Jeremiah Javon Smith, face multiple charges. These include breaking and entering with the intention of theft, conspiracy to commit breaking and entering, receiving and concealing stolen goods, fleeing police in the third degree, and resisting arrest.
During their arraignment on February 2nd in the 2B District Court, held via video link from Hillsdale County Jail, each suspect was formally charged and assigned a court-appointed attorney.
The incident unfolded in the early hours of January 31st, prompting a response from the Michigan State Police to an alarm at The Pinnacle Emporium, located at 421 S. Main St., Camden. Upon arrival, officers discovered the four men and an accompanying juvenile in a white 2018 Kia parked outside the premises.
When police attempted an arrest, the suspects fled, leading to a high-speed pursuit that stretched from Michigan into Ohio, then west into Indiana, with speeds exceeding 100 mph. The chase concluded in southern Branch County, Michigan, where a precision immobilization technique (PIT maneuver) was executed to stop the vehicle just south of Calhoun County.
After the vehicle was stopped, all four suspects attempted to flee on foot but were quickly apprehended by the police. The juvenile involved was released to his parents, while the adults were initially taken to the Branch County Jail before being transferred to Hillsdale County Jail.
In court, Judge Megan Stiverson highlighted Hillsdale County Court's new Community Corrections Program, labeling the defendants as "low-risk" for future court appearances, noting their lack of prior criminal records. Consequently, Stiverson granted each a personal recognizance bond, mandating their compliance with the Community Corrections Program's supervision.
If convicted of the charges, each suspect faces a potential sentence of up to 10 years in prison.
Agrify Corporation (NASDAQ: AGFY), a leading provider of state-of-the-art cultivation and extraction solutions in the cannabis sector, has recently announced a substantial collaboration with Denver Cole Labs, a prominent New Jersey-based cannabis operator. This partnership, valued at an estimated $500,000, entails the provision of an all-encompassing Turnkey Ethanol Extraction and Lab Equipment Package to Denver Cole Labs.
Included in this package is a selection of cutting-edge technology designed to bolster Denver Cole's production efficiency. Among the advanced equipment provided are the C-15 Centrifuge Ethanol Extractor, a Solvent Recovery System, and a Decarboxylation Package. To ensure the safety and integrity of the product manufacturing process, Denver Cole has also chosen to incorporate Precision Extraction's C1D1 Extraction Booth. Further enhancing operational excellence, Denver Cole will employ Agrify's EliteLab software, which facilitates superior distillation control and optimizes overall operations.
Raymond Chang, the CEO and Chairman of Agrify, shared his excitement about the new partnership, underscoring the confidence that cannabis operators have in Agrify's innovative technology and expertise, particularly within competitive landscapes. He pointed out that the system is engineered to consistently yield high-quality ethanol extracts.
Agrify's involvement with Denver Cole Labs extends beyond mere equipment supply. The company has played a crucial role in the selection of appropriate equipment in compliance with New Jersey's stringent regulations. Agrify will also provide ongoing support in the preparation of construction documents and compliance services, further ensuring the success of Denver Cole's operations.
Denver Cole Labs is not only operational in New Jersey but also holds processing and cultivation licenses in Michigan and is actively exploring expansion possibilities in Illinois and other regions.
Agrify's reputation in the cannabis industry is bolstered by its Vertical Farming Units (VFUs) and an extensive range of extraction products, including systems for hydrocarbon, ethanol, and solventless extractions. These innovations aim at maximizing both the quantity and quality of cannabis concentrates.
This partnership, detailed in a recent press release, marks a significant step in Agrify's commitment to advancing cannabis production technology and aiding operators in the industry to meet and exceed high standards of product quality and regulatory compliance.
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Six years after Michigan voters endorsed the legalization of recreational marijuana in 2018, Chesterfield Township has marked a significant milestone with the opening of its first recreational cannabis store. This development comes after a complex journey of local opposition, public petitions, and legislative hurdles, reflecting the broader challenges many Michigan communities have faced in integrating legal marijuana into their locales.
Chesterfield Township initially opted out of participating in the recreational cannabis market, mirroring the actions of numerous other Michigan communities wary of the implications. However, a determined petition drive in 2022 successfully brought the issue back to the township's voters, who in turn showed robust support for recreational cannabis with 57% in favor. This vote compelled the township to craft an ordinance to regulate the operation of marijuana businesses, culminating in the opening of the first store on February 19th.
Marcel Kattula, Director of Operations for Jars Cannabis, the township's inaugural recreational weed store, shared insights into the extensive preparatory work that preceded the opening. "It has been a process," Kattula remarked, highlighting the intricate logistics and coordination with the city that spanned several months, alongside the construction and setup efforts to ensure the store was ready for business. The store's launch, despite being minimally marketed, attracted considerable customer interest, a testament to the community's anticipation and support.
The store's establishment not only signifies a turning point for Chesterfield Township but also serves as a testament to the evolving attitudes towards marijuana in Michigan. The journey to this point was fraught with political debates, legal challenges, and a clear demand from the populace for access to recreational cannabis. This narrative is not unique to Chesterfield Township; nearby Warren, for example, continues to grapple with its stance on recreational cannabis, indicative of the ongoing discussions and deliberations at the municipal level across the state.
Jars Cannabis aims to offer a customer experience aligned with the expectations of the Chesterfield community. Unlike traditional retail models, the store emphasizes personalized service, with staff members greeting customers, understanding their needs, and recommending products accordingly. This approach reflects a broader trend in the cannabis industry towards creating a more informed and customer-centric retail environment.
As Chesterfield Township and other Michigan communities navigate the complexities of integrating recreational marijuana, the experiences of early adopters like Jars Cannabis may offer valuable lessons in balancing regulation, community expectations, and business innovation.
Early on Monday morning, a break-in occurred at the Aim High Meds marijuana dispensary in Tekonsha Township, Calhoun County, triggering an urgent call for public assistance to identify the culprits. Just before 5:30 a.m., the establishment's alarm system was activated, alerting local law enforcement to the incident. Upon arriving at the scene, deputies from the Calhoun County Sheriff's Office discovered signs of forced entry and noted that various items had been stolen from the business.
Investigation efforts were aided by surveillance footage, which revealed four masked individuals as the primary suspects in this burglary. These individuals were seen departing the scene in a red Kia SUV, last observed heading northbound on Interstate 69. The authorities are now seeking assistance from the community to track down these suspects and recover the stolen property.
The Calhoun County Sheriff's Department is urging anyone with information related to this crime, the whereabouts of the suspects, or the location of the red Kia SUV to come forward. Members of the public can contact the Calhoun County Sheriff's Office directly at 269-781-0880 or provide anonymous tips through Silent Observer at 269-964-3888. This collaborative effort between law enforcement and the community aims to ensure the swift apprehension of the perpetrators and the reinforcement of safety and security within the local area.
In the lead-up to the February election, Caro, Michigan, finds itself at a pivotal moment regarding the future of its marijuana industry. A local ballot committee has initiated a proposal to significantly expand the city's marijuana business licenses, aiming to stimulate economic growth within the community.
The heart of this initiative is to amend the existing marijuana ordinance to allow for a dramatic increase in the number of licenses issued for adult-use marijuana growers and processors. Specifically, the proposal seeks to expand the number of grower licenses from the current limit of two to a capacious thirty. Additionally, it introduces the possibility for businesses to obtain up to five Class C licenses.
The Michigan Adult Use Marijuana Act delineates three classes of cultivation licenses, with Class C being the focal point of this proposal. A Class C license authorizes the cultivation of up to 1,500 marijuana plants for medicinal purposes and up to 2,000 plants for recreational use. Presently, Caro hosts two Class C grower licenses and two dispensaries, Spark Cannabis and Premier Cannabis, contributing to the local marijuana landscape.
Representatives from the existing dispensaries, such as Premier Cannabis, have expressed optimism about the proposed changes. They believe that increasing the number of licenses will not only benefit small businesses by providing a broader range of local products but also enhance the community's access to these offerings without directly affecting the current dispensaries' operations.
The proposed ordinance is detailed as follows:
"The City of Caro is considering an 'Adult-Use Marihuana Establishments Ordinance' that would escalate the number of adult-use marihuana Class C grower licenses from two to thirty and processor licenses from two to eight. It also proposes the introduction of up to two excess adult-use marihuana grower licenses and empowers the city to oversee these establishments."
Given the nature of this being a proposed initiated ordinance, city officials have refrained from commenting on the matter. The community will have the opportunity to cast their votes on this transformative proposal in the upcoming election on February 27th, potentially setting a new course for Caro's economic and cultural landscape in relation to the marijuana industry.
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