In a recent development in Branch County, Michigan, Raymond Root III, a 46-year-old man from Springfield, has entered a no contest plea to charges of operating a vehicle under the influence of marijuana, resulting in serious injury. This incident, stemming from a collision on April 7th on Marshall Street near Taylor in Coldwater, has brought to light the complexities surrounding marijuana use and driving safety.
Root was apprehended on August 31st by Coldwater police following investigations that linked the presence of THC, the psychoactive compound in marijuana, in his bloodstream at the time of the accident. This discovery was made following tests conducted by the Michigan State Police labs.
The case, presided over by Circuit Judge Bill O'Grady in the Branch County Circuit Court, saw Root admitting to his continued use of marijuana, even after the arrest. He disclosed to the court that his last usage was a mere couple of days before the hearing. Root, who had previously been qualified for medical marijuana, expressed his view of not considering legalized marijuana as a drug.
In response, Judge O'Grady commented on Root's continued marijuana use despite the gravity of the situation, pointing out the implications it has on his character. The judge's remarks underscored the legal and ethical considerations surrounding marijuana consumption, especially in relation to operating vehicles.
Prosecutor Zack Stempien, acknowledging Root's plea, agreed to a cap on jail time, proposing a maximum of six months. This agreement will be finalized when Root is sentenced on February 19th. Concurrent charges against Root were also dismissed as part of the plea arrangement.
The consequences Root faces extend beyond incarceration. He is expected to undergo probation, participate in rehabilitative programs, and bear the financial responsibilities associated with the prosecution, including fines, costs, and government reimbursement for emergency responses linked to the accident.
The seriousness of the incident is further highlighted by the injuries sustained by the other party involved in the crash, a 60-year-old woman. She suffered a fractured vertebra, necessitating extensive surgeries. At the scene of the accident, police noted Root's impaired state, though no alcohol was detected. His uncooperative demeanor led to the issuance of a search warrant, which resulted in a blood draw at ProMedica Coldwater Regional Hospital, confirming the presence of THC.
This case brings to the forefront the ongoing discussions about the legal and societal implications of marijuana use, particularly concerning driving and public safety. It serves as a reminder of the responsibilities and consequences associated with marijuana consumption, especially when it intersects with the operation of motor vehicles.
In a significant legal development, Milan, Michigan's administration has upheld its marijuana dispensary permit awarding process in court. The Washtenaw County Trial Court, under Judge Julia Owdziej, ruled in favor of the city, resolving a dispute initiated by a cannabis company, HQP Retail II, LLC, which operates as Hayat. The company had contested the allocation of the city's exclusive two dispensary permits, alleging procedural discrepancies.
On December 8th, Judge Owdziej endorsed the city's approach by granting Milan's motion for summary disposition. This decision effectively dismissed the legal challenge brought forth by Birmingham-based HQP Retail II, LLC, in July. The contention revolved around the company's claim that the permit allocation process, as conducted by Milan City Council on July 5th, was flawed, particularly in the scoring of applications.
City Administrator Jim Lancaster, addressing the ordinance's goals, emphasized that the selection process was strategically designed to integrate the best-fit models into Milan's economic development plans. The city, opening its doors to the marijuana industry in 2022 for the first time, introduced a point system to objectively assess and select two proposals that best aligned with the city's criteria.
Under these regulations, preference was given to proposals targeting development of vacant or blighted properties and those suggesting mixed-use structures combining commercial or residential spaces. Lancaster noted, "We received four commendable proposals, but the ordinance limited us to select only two based on our point system."
The permits were ultimately awarded to Oz Cannabis and Green Ink 420. Oz Cannabis proposed to renovate a coin-operated laundromat and car wash at 1132 Dexter Street. Green Ink 420 planned a strip mall-style development with commercial spaces and apartments adjacent to Love's Travel Stop on Plank Road.
HQP, which ranked third in the scoring process, proposed a new building on 800 Dexter Street near Dollar General, featuring a cannabis shop with an additional drive-thru style restaurant. Despite their proposal, HQP alleged irregularities in the review process and accused the city of violating Michigan's marijuana regulations and the state Open Meetings Act through undisclosed meetings that allegedly skewed the scoring in favor of their competitors. The city refuted these claims, stating the scoring process was individually handled by the city administrator, and as such, the Open Meetings Act did not apply.
Judge Owdziej's ruling dismissed HQP's motions and closed the case, validating the city's procedural integrity. Looking ahead, Lancaster shared that both Oz and Green Ink are advancing through the necessary approvals to commence their projects. Oz Cannabis has already received planning commission approval and is progressing towards construction. Green Ink is expected to present its plans to the commission soon, with significant progress anticipated on both sites during the 2024 construction season.
In a significant development, four prosperous communities in the metro Detroit area—Grosse Pointe Park, Keego Harbor, Rochester, and Birmingham—recently voted against allowing recreational marijuana sales. This outcome represents a notable setback for advocates of recreational marijuana in Michigan, who argue that access to legal cannabis remains limited, especially in the outer suburbs of Detroit. Despite Michigan legalizing recreational marijuana in 2018, a mere fraction of its municipalities, less than 10% according to the latest figures from the state's Cannabis Regulatory Agency, permit recreational marijuana businesses.
Denise Pollicella, founder of Cannabis Attorneys of Michigan, highlighted a stark division in attitudes towards cannabis between wealthier metro Detroit communities and those facing economic challenges. Affluent areas often oppose cannabis businesses, citing a lack of necessity for the economic and tax benefits these enterprises could bring. This contrasts sharply with less affluent communities, where older, sometimes blighted, buildings and distressed areas might benefit from the revitalization that cannabis businesses could offer.
Grosse Pointe Park Mayor Michele Hodges commented post-election, noting that their community feels self-sufficient without cannabis businesses. Hodges emphasized that cannabis products are readily accessible in their area, including through delivery services, suggesting a perceived lack of need for local dispensaries.
The reluctance of some communities to allow cannabis sales is partly influenced by legal concerns. As Pollicella pointed out, cities like Detroit have faced numerous lawsuits while establishing their recreational marijuana ordinances. These legal challenges can cause significant delays; in Detroit's case, they postponed the start of recreational marijuana sales for years. Even after overcoming these hurdles, Detroit continues to grapple with litigation, such as a recent lawsuit concerning the location of a marijuana facility near a school.
Pollicella observed that fear of litigation is a major deterrent for municipalities considering the legalization of recreational marijuana businesses. However, she noted that this trend is diminishing and suggested ways to avoid legal complications, such as not imposing a cap on the number of available licenses.
The decision to opt out of recreational marijuana commerce has fiscal implications. Over 1,300 Michigan communities that have chosen not to allow these businesses are consequently not receiving tax revenue from marijuana sales, which is levied at 10%. In the fiscal year 2023, this tax generated a substantial $266.2 million, marking a near 50% increase from the previous year. This revenue is distributed among the communities and counties hosting dispensaries, Michigan's school aid fund for K-12 education, and the state's transportation fund.
An inquiry into how communities with legal recreational marijuana sales utilize their tax revenue revealed diverse approaches. Hazel Park, an early adopter of recreational marijuana sales, directs its revenue towards pension obligations. In contrast, cities like Ferndale, Hamtramck, Inkster, Lake Orion, and Coldwater channel the funds into their general budgets, supporting various municipal services including police, fire, and parks and recreation.
For some municipalities, the revenue is a welcome boost. The city of Wayne, for instance, found the additional $207,364 from four dispensaries earlier this year beneficial for its financially distressed general fund. Similarly, Madison Heights uses the revenue to fund general services, with added benefits from property investments increasing the taxable value and hence the tax revenue.
In Center Line, Macomb County, the new revenue source has enabled the city to undertake community projects without raising taxes, such as improvements in recreational parks, municipal complexes, and library facilities. The Village of Oxford has utilized its share of the revenue to expand its police force, enhancing community safety.
However, not all communities see a significant impact from this revenue stream. Lincoln Park's City Manager James Krizan noted that for them, the revenue from marijuana sales, although helpful, represents only a small portion of their total budget and is not transformative.
This diverse array of responses from Michigan communities underscores the complex interplay between economic interests, legal considerations, and community values in the ongoing debate over recreational marijuana. While some see it as a promising source of revenue and revitalization, others remain cautious, weighing potential benefits against concerns about community character and legal challenges.
In the heart of Bay City, the once thriving Diamond Cannabis store, a venture of Southfield-based Emerald Bay Provisioning, stands empty. Opened in late 2021 at 816 Washington Avenue, this marijuana retailer was initially met with positive customer feedback. However, in a stark turn of events, it has become emblematic of a growing concern in Michigan's $3 billion marijuana industry: businesses abruptly closing, leaving a trail of unpaid debts and legal complications.
Diamond Cannabis, initially backed by investors Michael Yaldo, Omar Salah, and Ramia Kirma (the latter no longer associated as per a 2023 lawsuit), showed early signs of success. But by mid-November 2023, the store was deserted, with only remnants of its past - a ladder, some boards, and rolling paper stickers on windows - hinting at its former life. The neighboring businesses noticed the exit during the summer, marking a silent end to what was once a bustling retail space.
This closure isn't an isolated incident in Bay City, where Diamond Cannabis joined a list of eleven other marijuana retailers that have ceased operations, according to the Cannabis Regulatory Agency (CRA). The issues came to a head with the filing of three lawsuits between December 2022 and June 2023, seeking over $1 million in unpaid debts, including nearly $50,000 in unpaid invoices. Moreover, CRA complaints in March and April alleged the business misrepresented THC potency, made unreported sales, and failed to maintain necessary video surveillance records.
One notable lawsuit was filed by JIS, operating the cannabis brand Bowhouse, known for "Michigan grown craft cannabis." Represented by attorney Jacob Kahn, the lawsuit details how Diamond Cannabis, after finding Bowhouse on the online marketplace Leaflink, ordered nearly $30,000 worth of products but failed to pay upon delivery. Despite a consent agreement for monthly installments, the payments ceased after the first installment, leading to a default judgment by the court.
Diamond Cannabis' story reflects a broader trend in Michigan's marijuana market. Nearly 14% of the state's marijuana retailers have closed or not renewed licenses since December 2019. This has resulted in numerous businesses grappling with unpaid debts, a challenge highlighted by attorneys Denise Policella of Cannabis Attorneys of Michigan and others. Policella emphasizes the cascading effect of these financial troubles, particularly on smaller businesses.
The CRA has recognized this growing issue and is considering rules to deny licenses or renewals to businesses with civil judgments or court orders related to unpaid debts. This move aims to ensure financial responsibility within the industry.
The root of these challenges, according to Patrick Frakes of RAIR, lies in the market's unexpected evolution. RAIR, which operates a grow facility and retail shops, has experienced the problem firsthand, with $218,000 in past due invoices at one point. Frakes points to "price compression" and market saturation as primary factors driving down prices and putting strain on businesses.
Collecting outstanding debts remains a significant hurdle, as evidenced by the experiences of attorney Kahn and his clients. Even with court judgments in hand, recouping losses from businesses like Diamond Cannabis, which shut down without assets or apparent funds, proves daunting.
Diamond Cannabis' rapid rise and fall serve as a cautionary tale in Michigan's burgeoning marijuana market, highlighting the need for more stringent financial practices and regulatory oversight to ensure stability and fairness in this evolving industry.
In Lapeer, Michigan, a debate is intensifying over the proliferation of marijuana facilities in the city. Currently, Lapeer hosts six licensed dispensaries offering both medical and recreational marijuana to those 21 and older. However, there is no cap on the number of marijuana cultivation and processing facilities in the city, which has led to growing concerns among local residents and officials.
The Lapeer Planning Commission recently chose to postpone a decision on a special land use application by a Livonia entrepreneur aiming to construct an 11,480-square-foot recreational marijuana cultivation facility on W. Genesee Street. The location's suitability for a major commercial corridor and the applicant's ability to control marijuana odors were key points of contention.
Commissioner Anne Schenck suggested that the Commission should consider advising the Lapeer City Commission to limit the number of grow facilities in the area, highlighting the issue's impact on local residents. The City Commission holds the authority to establish such limits and regulations.
The decision to allow up to six recreational dispensaries followed Michigan's 2018 referendum, but no restrictions were placed on cultivation and processing operations. Currently, approximately ten facilities grow both medical and recreational marijuana, with around half a dozen processing facilities in Lapeer.
Local concerns were voiced during the meeting's public comment period. Resident Jose Gonzales noted the high concentration of marijuana facilities along Imlay City Road, expressing surprise at the city's direction. Lapeer attorney Tim Denney also raised concerns about odor issues, suggesting the city was becoming overwhelmed by marijuana fumes.
Richard Swaine, the applicant for the new grow facility, assured that his proposed building would adhere to all regulations. However, his plans have been delayed due to complications in securing a utility easement, causing his permit and site plan applications to expire.
Jennell RaCosta, Chairwoman of the Lapeer Planning Commission, noted that previous operators also promised odor control, yet the issue persists. The Commission deferred the special land use request for further review and to allow Swaine to provide evidence of effective odor mitigation.
City Manager Mike Womack acknowledged the odor complaints, particularly from three grow facilities, and is working with various city departments to address the issue. He emphasized that a resolution would likely involve ordinance adjustments.
The Lapeer Planning Commission meets monthly, and the situation remains a significant topic for local governance and community discussion.
In Menominee, Michigan, the incoming mayor, Casey Hoffman, has initiated a bold move against two local cannabis dispensaries, Rize and The Fire Station. These dispensaries are currently embroiled in a legal battle with the city over its marijuana business regulations. Hoffman, who is poised to take office shortly, has publicly urged these establishments to withdraw their lawsuits aimed at reinstating the city's original marijuana ordinance.
Hoffman's letter sharply criticizes the ongoing legal actions of Rize and The Fire Station, with one lawsuit seeking to revert to the limited-permit ordinance and another alleging corruption and conspiracy by city officials and other companies in modifying the rules. Hoffman's blunt message to these companies: "This conduct is beneath the dignity of Rize and The Fire Station. Kindly knock it off."
Responding to these remarks, Mike Cox, the attorney for Rize, defended their stance. Cox conveyed that Rize is not opposed to competition, provided the rules are equitable for all. He criticized the city council for allegedly diluting ethics rules to benefit their associates, bypassing the citizens' right to vote on marijuana policy, and creating biased regulations to favor certain companies, thereby violating state law.
Hoffman labeled the dispensaries' claims as politically motivated. He criticized the involvement of external cannabis companies in local politics and their accusations of unethical behavior among city council members without substantial evidence. He also mentioned the use of outside protestors by these companies to spread misinformation in Menominee.
The recent marijuana ordinance, which prevented a ballot initiative regarding the permit limit from reaching voters, was another point of contention. Hoffman expressed regret that Menominee citizens were not given a chance to vote on the number of dispensaries they desired, leading to an unregulated market with a potential influx of dispensaries.
The Menominee city council will soon see new faces, with Cheryl Haupt and Steve Fifarek defeating incumbents in their respective wards. Haupt, in response to Hoffman's comments about campaign funding by a company connected to The Fire Station, clarified that she was unaware of such efforts until she received a campaign mailer. Haupt also shared her view that the city should compromise on the number of dispensaries, based on a nearly evenly split public vote from three years ago regarding the presence of marijuana businesses in Menominee.
Hoffman, concerned about potential future lawsuits from other companies like Lume, Higher Love, and Nirvana, emphasized that while these companies are no different from Rize and The Fire Station, they are presently bound by a settlement agreement reached earlier this year.
With Hoffman, Fifarek, and Haupt set to assume office soon, Menominee awaits the outcomes of these contentious issues, with legal hearings for the lawsuits involving Rize and The Fire Station scheduled into the next year.
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