Lapeer, Michigan, has recently imposed a six-month moratorium on new marijuana business applications. This decision, effective immediately, was made during the City Commission meeting on Tuesday, following a recommendation by City Manager Mike Womack. The pause is intended to allow time for revising local ordinances concerning zoning and the enforcement of violations.
In 2018, Lapeer authorized six marijuana dispensaries for adults 21 and older to purchase both medical and recreational marijuana products. However, the city did not set a limit on the number of marijuana cultivation and processing businesses, leading to the current operation of seven such facilities.
The move comes in response to persistent complaints from residents, neighboring businesses, and visitors about the pervasive marijuana odor emanating from several grow facilities, notably the SDRK Grow LLC facility, previously the Lapeer Grain Co. site.
These concerns were echoed by the Lapeer Planning Commission, which recently urged the City Commission to reassess its ordinances. They highlighted the problematic location of marijuana businesses, particularly their proximity to other commercial entities. Most of these businesses are concentrated east of Court Street on Genesee Street/Imlay City Road and on Saginaw and Court streets south of the Canadian National Railroad tracks.
The idea of capping the number of cultivation operations in Lapeer was raised at the City Commission meeting. Commissioner Stefan Brady suggested aligning the number of grow facilities with the number of dispensaries, proposing a limit of six. This suggestion is yet to be formally considered or adopted.
In the meantime, efforts to address the odor issue are underway. Andy Shango, owner of the SDRK grow facility, is actively working on solutions. His facility, which received its permanent occupancy permit last fall, is collaborating with Kapala Heating & Air Conditioning to repair air leaks in large filtration equipment outside its two 6,000-square-foot grow operations. Shango has invested over $8 million in the site, including building renovations and equipment, and plans to spend approximately $1 million on a backup generator system. He emphasizes his commitment to being a responsible community member and resolving the odor issue.
The City has yet to issue citations for the odor problem, preferring to give businesses the opportunity to address the issue voluntarily. City Manager Womack highlighted the importance of working collaboratively with businesses to find solutions rather than rushing to punitive measures. However, he noted that some marijuana businesses might not be taking necessary steps to control the odor, and the City is prepared to enforce laws if required.
Lapeer's ordinances, particularly Ordinance 69.5, stipulate that operations should not cause nuisances like odors detectable beyond property boundaries. The definition of a nuisance in the zoning ordinance covers a range of disturbances, including odors, and the City is obligated to ensure compliance.
Operation of an authorized establishment shall not, either directly or indirectly, cause or create any noise, dust, vibration, glare, fumes or odors constituting a nuisance and also detectable to human senses beyond the boundaries of the property on which the facility is operated.
This development reflects Lapeer's ongoing efforts to balance the growth of its marijuana industry with community standards and concerns.
In a unique show of support for the Detroit Lions during their playoff game against the Tampa Bay Buccaneers, Michigan's own Pleasantrees cannabis company has launched a series of eye-catching billboards. These billboards, placed strategically along Interstate 75, are not only rallying the local community but also subtly highlighting Michigan's progressive stance on marijuana usage compared to Florida's more restricted approach.
The billboards feature bold statements like "Tampa Bay Smokes Hemp. Let's Go Detroit," drawing attention to the fact that Florida permits only medical marijuana use, whereas Michigan allows recreational use for those over 21. This initiative by Pleasantrees, headquartered in Mount Clemens, is a clever blend of sports enthusiasm and cannabis culture.
Bryan Wickersham, President of Pleasantrees, explains that the billboards aim to unite the Michigan cannabis industry and its community in a light-hearted manner, leveraging common industry terms. "With the Lions fever gripping everyone, it seemed a natural fit to find a way to support our team," Wickersham commented.
The idea for these billboards was conceived ahead of the Lions' playoff game against the Los Angeles Rams on January 14th. The messages have been crafted to be cheeky yet respectful, avoiding legal complications and specific names. For instance, an earlier billboard targeting the Los Angeles game read, "Los Angeles Smokes Mids. Let's Go Detroit," a playful jab at California's mid-grade cannabis.
Wickersham notes that while not everyone may grasp the humor (he mentions even his mother queried about the meaning of 'mids'), these billboards spark conversations around cannabis, helping to destigmatize and normalize it. The choice of hemp in the Tampa Bay billboards is a nod to the legal definition of hemp products, which contain 0.3% or less THC, commonly used in states without recreational marijuana legalization.
In Michigan's burgeoning $3 billion cannabis industry, differentiating oneself through advertising is a significant challenge. Traditional advertising avenues like TV and radio are largely inaccessible to cannabis companies due to federal regulations, as marijuana remains illegal at the federal level.
Billboards have emerged as a viable alternative. They offer a legal loophole, arguing that drivers are predominantly over 16, with a significant proportion being over 21. Pleasantrees was among the first to successfully employ this strategy, inspiring other companies to follow suit.
Nationally, out-of-home advertising, which includes billboards and posters, is a growing sector. According to the Out of Home Advertising Association of America, the revenue in this sector reached $6.5 billion in the first three quarters of 2023. While cannabis companies contribute only about 1% to this national revenue, in Michigan, they account for roughly 7% of the estimated $154 million spent on such advertisements in 2023.
Wickersham emphasizes their approach to billboard advertising as distinct, aiming not for direct promotion but rather to create emotional connections and community engagement.
Pleasantrees has been innovative in its market presence beyond billboards. The company, established in 2018, has repurposed the famous Gibraltar Trade Center, a recognizable landmark in Macomb County, into a processing facility and dispensary. They also operate cultivation facilities and dispensaries in various Michigan locations.
As for the future, Ryan Wood, the creative director of Pleasantrees, hints that this won't be their last venture into event-driven advertising. Although cautious not to jinx the outcome of the upcoming game, plans for post-victory billboards are already on the drawing board, with ideas like "Green Bay smokes cheese," a playful reference to subpar marijuana, being considered.
Ann Arbor has recently welcomed a new player in its cannabis market with the opening of Crave Cannabis. Located at 3860 Research Park Drive, the dispensary began operations in November and is already making strides with ambitious plans to introduce a marijuana consumption lounge to the city. This initiative follows the Ann Arbor Planning Commission's approval in September 2022 and the city's 2019 establishment of regulations permitting such lounges.
Michigan joins a growing list of over ten states in the U.S. that have legalized marijuana consumption lounges and cafes. These venues provide a legal public space for cannabis users, a significant step in the evolving landscape of marijuana use and culture.
Despite facing construction delays, Lamar Jarbo, the owner of Crave Cannabis, is optimistic about the lounge's opening in the coming months. He emphasizes the company's dedication to realizing this goal. The lounge is envisioned as a space where patrons can enjoy Crave Cannabis products in a relaxed environment. However, it's important to note that purchases of cannabis products will not be possible within the lounge itself.
Jarbo's vision for the lounge extends beyond just a space for relaxation and consumption. He plans to equip the lounge with multiple TV screens, some linked to PlayStations, a rentable podcast station, and even a golf simulator. The facility will also offer private rooms and lockers for personal storage, along with bongs and hookahs for use.
The lounge is not just envisioned as a chill-out spot but as a versatile venue suitable for private parties and events like comedy shows. Jarbo sees it as a place that can adapt to various social gatherings and entertainment needs.
The opening of the consumption lounge represents the second phase of Crave Cannabis's business plan. Since its inception, the dispensary has garnered attention for its extensive product range. Jarbo takes pride in the customer excitement generated by their diverse and potent product offerings, which include over 100 strains of cannabis flower, pre-rolls, topicals, concentrates, vaporizers, and edibles like THC-infused "potcorn."
Jarbo stresses the dispensary's commitment to offering unique and cutting-edge products. Crave Cannabis's District Manager, Philip Bunge, echoes this sentiment, highlighting their continuous search for new and high-quality items. To attract new customers, the dispensary currently offers a 50% discount for first-time visitors.
As Crave Cannabis evolves, Jarbo looks forward to deepening relationships with customers, especially with the introduction of the consumption lounge. He anticipates that the lounge will provide valuable insights into customer preferences and feedback, further shaping the dispensary's offerings and services.
The Michigan marijuana market experienced unprecedented growth in 2023, setting new sales records and significantly impacting state revenue. According to the latest data from Michigan's Cannabis Regulatory Agency (CRA), the state's legal marijuana retailers sold over $3 billion worth of cannabis products, marking a significant increase from the previous year.
In December alone, Michigan witnessed its strongest sales month ever, with licensed businesses achieving $279.9 million in total sales. This figure surpasses the previous monthly record of $276.7 million set in July. The cumulative sales for 2023, encompassing both adult-use and medical purchases, reached a staggering $3,057,161,285.85. This represents a substantial growth of about one-third more than the 2022 annual total of $2.29 billion.
The lion's share of 2023's sales came from recreational marijuana, which increasingly dominated the market as the year progressed. In December, adult-use retailers accounted for approximately 99 percent of all legal cannabis sales, totaling $276.7 million, while medical marijuana dispensaries contributed a mere $3.2 million.
Remarkably, the state's annual marijuana sales equate to about $305 per Michigan resident. It's important to note that this figure includes sales to non-resident customers. The 2023 sales figure even surpasses the gross domestic product of 51 countries, illustrating the massive scale of Michigan's cannabis market.
State officials highlighted a 49 percent increase in tax revenue from legal marijuana compared to the previous year, surpassing revenue generated from alcohol sales. Michigan's marijuana market benefits from one of the nation's lowest excise tax rates at 10 percent, in addition to a 6 percent state sales tax. In October 2023, marijuana excise tax alone generated $52.4 million in tax revenue.
Despite this remarkable growth, Michigan's annual marijuana sales have yet to reach the peak of $3.1 to $3.2 billion anticipated by some market analysts. Michigan's legal adult-use marijuana sales commenced in 2019 following voter approval in 2018.
Consumer preferences in December leaned heavily towards flower products, which constituted about 45 percent of total sales. Vape cartridges, inhalable concentrates, edibles, shake and trim, and other concentrates followed in popularity.
The state continues to see a steady influx of new business license applications, with 90 received and 71 approved in December alone. By the end of 2023, Michigan had 2,170 licensed cannabis businesses in the adult-use market, primarily growers, alongside 751 retailers, 250 processors, and other entities.
A survey of adult-use licensees revealed a plurality from high-income households, with 188 reporting annual incomes of $200,000 or more. In a significant move towards equity, the CRA launched a social equity grant program, allocating $1 million to support eligible marijuana businesses in education, business needs, or community reinvestment.
Interestingly, the average cost of marijuana in Michigan has remained at record lows, with an ounce of adult-use cannabis costing around $98, a significant decrease from $180 in December 2021. Additionally, policy changes have been implemented, including the end of pre-employment marijuana testing for most government employees and new laws facilitating trade between state-licensed marijuana businesses and tribal cannabis entities. Legislative efforts are also underway to legalize psychedelic plants and fungi for non-commercial purposes.
This growth trajectory of Michigan's marijuana market underscores the evolving landscape of cannabis sales and regulation, promising continued expansion and economic impact in the years to come.
In a recent development at the Bad Axe City Council meeting on January 16th, City Manager Rebecca Bachman presented the first draft of the recreational marijuana ordinance. While the ordinance was not initially listed on the meeting's agenda due to timing constraints, it was nonetheless shared with council members for review and discussion during the final board comments.
Bachman explained the absence of the ordinance from the agenda, stating, "I did not get it in time to put it on this agenda as it would not have given you enough time to look at it. It will be on the very next meeting, and now you have plenty of time to look through it." This draft, prepared by the city attorneys, is slated for a detailed discussion at the council's next meeting on February 5th.
The forthcoming meeting will primarily focus on deliberating the contents of the ordinance, providing council members an opportunity to propose amendments. Bachman highlighted that the current draft primarily addresses operational regulations, leaving the zoning aspects for future discussions.
Should the council find no significant need for amendments, the ordinance could potentially be voted on as early as the February 5th meeting. Following council approval, the ordinance would then be forwarded to the Bad Axe Planning Commission to establish zoning regulations for marijuana facilities.
Despite a slight delay, Bachman reassured that the process is progressing smoothly and remains on track with the projected four- to six-month timeline for final approval. She expressed optimism about the ordinance's approval, which would allow interested parties to begin applying for licenses.
Bad Axe Police Chief Shawn Webber, in a previous report, noted the economic benefits of such facilities. Specifically, he mentioned that two types of recreational facilities, namely 'retailers' and 'micro-businesses,' could generate substantial revenue for the city. Based on data from 2022-2023, the city anticipates an average revenue of $51,841 per license, a figure that has risen since the legalization of recreational marijuana in Michigan.
In a recent city council meeting in Harbor Springs, Michigan, a significant topic of discussion emerged regarding the potential introduction of a recreational marijuana dispensary in the city. City Manager Victor Sinadinoski briefed the council on a letter from Ypsilanti attorney Anderson Grandstaff, who is advocating on behalf of an unnamed client for a citizen's ballot initiative to allow a recreational marijuana outlet in Harbor Springs.
The attorney's approach involves a proposed ordinance that would permit a single marijuana retail establishment within the city, subject to annual license renewal. This initiative would involve a detailed application process, including a scoring system for selecting a licensee, an application fee cap of $4,900, a required distance of at least 1,000 feet from schools, and the consideration of a community benefits program to support individuals adversely affected by past marijuana laws.
Currently, Harbor Springs City Code explicitly prohibits the operation of any marijuana establishments within its limits. To place this ordinance on the ballot, proponents would need to gather signatures from 25% of the city's eligible voters.
During the public comment section of the meeting, several residents, including Allison Larson, expressed opposition to the idea. Larson emphasized the availability of marijuana in nearby Petoskey and expressed concerns about the potential negative impact on Harbor Springs' community quality. She also noted that similar efforts by Grandstaff had been initiated in other Michigan towns like Coldwater and Howell.
Mayor Matthew Bugera acknowledged that the only immediate advantage of such an ordinance would be financial benefits from the state. Resident Kathy Motschall suggested that if there is genuine interest in pursuing this initiative, the attorney and his client should focus on signature gathering, leaving the city to address the matter if it gains sufficient traction.
Marinda Miller also voiced her opposition, expressing her alarm at the ease of introducing marijuana into the community and raising concerns about issues like fentanyl in the area.
As of now, the Harbor Springs City Council has not moved forward with any decision, maintaining the status quo while the debate on this contentious issue continues among its residents.
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